AIDS WILL CHANGE THE WORLD'S ECONOMY, AND DRASTICALLY.

Surgeon General Koop and former White House Chief of Staff Donald Regan said fighting AIDS with anything more than condoms and dirty pictures given to school children was "cost-prohibitive." Now, the Everest-high cost of fighting AIDS is going to transform the economies of virtually every nation on Earth. It will be spent, because there is no choice but to spend it.

�ITill How to reverse the economic policy blunders that led to 'Irangate'

QUARTERLY CONTENTS • An international financial blow-out: ECONOMIC the real story behind 'Irangate' • The technology-driver of the new economic upsurge: REPORT the. forty- year Mars-colonization project

• The explosive impact of AIDS on the world economy

EIR Ouarterly Economic Report Make check or money order payable to: First 51,000 annual subscriptron Executive Intelligence Review 5250 single issue. P.O. Box 17390 Quarter Washington, D.C. 20041·0390 1987 Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke. Nancy Spannaus. Webster Tarpley. From the Editor Christopher White. Warren Hamerman. William Wertz. Gerald Rose. Mel Klenetsky. Antony Papert. Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Circulation Manager: Joseph Jennings As this number of EIR goes to press, President and Nancy Reagan INTELLIGENCE DlRECI'ORS: have arrived in Venice, where the President and Treasury Secretary Africa: Douglas DeGroot. Mary Lalevee Agriculture: Marcia Merry James Baker III are scheduled to take part in what is called a "sum­ Asia: Linda de Hoyos Counterintelligence : Jeffrey Steinberg. mit" meeting of various governments. Leading circles in Western Paul Goldstein Europe expect the Venice meeting to be a worldwide catastrophe, "a Economics: David Goldman European Economics: William Engdahl. point of no return_" Laurent Murawiec The President arrived in Venice at the lowest point in his political Europe: Vivian Freyre Zoakos lbero-America: Robyn Quijano. Dennis Small career. He has cost the United States the confidence of our allies with Law: Edward Spannaus his pushing for a "zero option" agreement with Soviet leader Mikhail Medicine: John Grauerholz. M.D. Middle East: Thierry Lalevee Gorbachov_ On pages 41-43, we report on how the "zero option" Soviet Union and Eastern Europe: winds from Washington have almost completely pushed West Ger­ Rachel Douglas. Konstantin George Special Projects: Mark Burdman many into the Soviet camp of "neutrals." The "zero option" is a United States: Kathleen Klenetsky disaster worse than Munich 1938_ INTERNATIONAL BUREAUS: The economic and monetary policies coming out of Washington Bangkok: Pakdee and Sophie Tanapura Bogolli: Javier Almario are sheer insanity; see the report on Volcker's departure, on page 4, Bonn: George Gregory. Rainer Apel and articles on the steel industry, shipping, farming, and regional Chicago: Paul Greenberg Copenhagen: Poul Rasmussen banks. Houston: Harley Schlanger Abroad, the "Project Democracy" bunch operating as a parallel Lima: Sara Madueno Los Angeles: Theadore Andromidtls government in Washington, is turning one of our most loyal allies, Mexico City: Josejina Menendez the Philippines, into the colony of one of Wall Street's most drug­ Milan: Marco Fanini New Delhi: Susan Maitra tainted "investment" finns (pages 46-48). Paris: Christine Bierre Rio de Janeiro: Silvia Palacios Now let's talk about the kind of cultural warfare which can avert Rome: Leonardo Servadio. Stefania Sacchi the fall into Soviet slavery. It begins with our Feature, in which Stockholm: William Jones United Nations: Douglas DeGroot presidential candidate Lyndon LaRouche warns against preemptive Washington. D.C.: Nicholas F. Benton "giveaways" to the Soviet Union, and evokes the "Pearl Harbor" Wiesbaden: Philip Golub. Garan Haglund spirit of an American citizenry under the conditions of an impending financial crash (page 32).

EIRIExecutive Intelligent·, Review (ISSN 0273�314) is Second, the Science & Technology section discusses a new mil­ published weekly (50 issues) exapt for the second week' itary threat, radio-frequency weapons, being developed by the So­ ofJuly and last week ofDecember by New Solidarity International Press Service P.O. Box 65178. Washing/on. viets now: a challenge the West has to meet through a crash program DC 20035 (202) 785-1347 EIIIYJfIHII HHtiII_rs: Executive Intelligence Review that will also help a true economic recovery and open the path for a Nachrichtenagentur GmbH. Postfach 2308. DoIzheimerstrasse 166.0-6200 Wiesbaden. Federal Republic cure to the most dreaded diseases, such as AIDS. ofOennany Tel: (06121) 8840. Executive Directors: Anno HeUenbroich. Third, the whole world knows that EIR and Lyndon LaRouche Michael Liebig pioneered the political fight for the AIDS testing policy President I" DeIlllllUt: E1R. Rosenvaengels Aile 20. 2100 Copenhagen OE. Tel. (01) 42-IS-OO Reagan partially adopted on May 31 (page 62). Finally, the battle I" Mexk,,: EIR. Francisco Dlas Covarrubias S4 A-3 Colonia San Rafael. Mexico OF. Tel: 705-1295. against malthusianism raging in Peru (page 14) goes to the core of a JtI/HIIf .lIIm:riptio" fIIles: O.T.O. Research Corpondion. new, just world economic order, as we have long identified it. Takeuchi Bldg . 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo 160. Tel: (03) 208-7821.• Copyright CI 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in pan without permission strictly prohibited. Second-class postage paid at Washington D.C .• and at an additional mailing offices. 3 months-SI25. 6 months-$225. I year-$396. Single iss�10 Academic library rate: 5245 per year PoItmaster: Send all address ch nges 10 E1R. P.O. Box: 17390. WashinglOll. D.C. 20041-0390.a (202) 785-1347 -

TIillContents

Interviews Departments Economics

15 Monsignor Augusto 6 Africa Report 4 Paul Volcker leaves the Vargas Alzamora Africans move on the debt front. sinking ship The secretary general of the He decided not to be on hand for Peruvian Bishops' Conference 20 Report from Italy the recriminations, when the refutes the malthusians' Austerity menus to prevail in foreign credit of the United States population-control policy. Venice? collapses.

Book Reviews 56 From New Delhi 7 The debt moratorium option is thrashed out in India joins the race for new 49 The Soviet Army between materials. Venezuela the Prussian General Staff No longer is it the well-behaved and Dostoevsky's madness 57 Report from Paris debtor, boasting of its special status. Laurent Murawiec reviews The French take leadership against Soviet Military by E.S. Williams, terror. and Le chef de I'Armee Rouge, 9 British economy is Tories' Mikail Toukhatchevski by Pierre Achilles heel 58 Andean Report Fervacque. Narco coup brewing in Colombia. 11 Sound the alarm: U.S. shipyards have zero 59 Report from Rio merchant vessel orders Project Democracy gang in Marcia Merry reports on the crisis Brasilia. Science & Technology condition of a U.S. shipping and shipbuilding industry that has been 24 West must couIiter Soviet 72 Editorial entirely dependent on military radio-frequency weapons Ambassador Richard Burt: a orders that are no longer enough. Jonathan Tennenbaum reports on Soviet asset. the most critical threat which the 14 Peru's bishops rip lies of West must now meet from Soviet the neo-malthusian Marshal Nikolai Ogarkov's AIDSUpdate 'population lobby' technological war build-up. . 22 WHO announces plan for 17 Currency Rates 27 Soviet strategic radio­ Uganda frequency and other 18 Steel standoff shows policy assault weapons: a primer 62 Reagan sides with LaRouche on AIDS testing impasse By Warren J. Hamerman.

68 Senate approves AIDS 19 Banking testing for immigrants Termination with extreme prejudice. 68 Kennedy introduces AIDS education bill 21 Agriculture Judge stays foreclosure actions. 70 Soldier with AIDS faces court martial 22 Business Briefs •

Volume 14 Number 24, June 12, 1987

Feature International National

38 Ogarkov uses Cessna 62 Reagan sides with shock to shake up defense LaRouche on AIDS testing ministry His first major policy statement on The light plane's unimpeded AIDS is an important first step, if progress to Moscow can only aid only that, toward an effective the progress of the Red Army policy for dealing with the AIDS marshal's pre-war mobilization. disaster. Documentation:Who is Dmitri Memorial Day, 1987: Veterans of Foreign Wars at a Timofeyevich Yazov? 64 Elliott Abrams disgraces ceremony in Virginia. Many commit the elementary blunder of ignoring the effects of a "financial Pearl himself; Will Shultz be Harbor" shock upon the internal politicalprocesses of 41 Kohl capitulates, endorses next? the U.S.A.-and other relevant nations. zero option The man EIR has exposed as a kingpin in the Contra cover-up is 32 The power of the U.S.A. 42 The 'Republikaner' exposed on the witness stand as has yet to be seen Party-Moscow's new "either incompetent . . . or a liar." Presidential candidate Lyndon fifth column in West LaRouche takes on the Germany 66 Eye on Washington dangerously incorrect view, Oil rep warns of Persian Gulf recently expressed by the 45 The Soviets play the cutoff. prominent Italian industrialist 'Canada card' Carlo De Benedetti , that the 46 Philippines: behind the 67 Elephants & Donkeys United States will be replaced by Cory magic Gore hits the campaign trail-in the Soviet Union as the world's Moscow. dominant economic power: "I 47 Wall Street firm owns intend to become the next Jaime Ongpin 68 Congressional Closeup President of the United States . . . . Under those conditions­ 52 New book on mission to presuming you had not already 70 National News the Slavs lifts veil from the given irreversible concessions to true East Moscow before then-the financial disaster which Sr. De Benedetti The 'Third Rome' mystics in Correction: foresees will be conquered, and Moscow cannot be pleased with Last week's issue the world will move rapidly into the Schiller Institute's release of incorrectly reported the date of the the greatest scientific, Prof. JiN Maria Veselfs Venice summit ("Global financial technological, and economic Grideranno Ie pietre (The Stones crisis predicted for October," page growth in the history of mankind." Shall Cry Out), revolving around 6); it should have read June 8-10. the figures of the sainted brothers Cyril and Methodius.

53 Schiller Institute fetes third birthday

55 Soviets 'offer' to broker debt crisis

60 International Intelligence .. �TIillEconomics

PaulVolcker leaves the sinkingship

by David Goldman

For two years, Federal Reserve officialspoint out, Fed chair­ Since the retirement last year of Federal Reserve Gover­ man Paul Volcker issued regular warnings that the United nor Henry Wallich, Paul Volcker has been America's con­ States could not continue to live on the foreign capital inflows nection to the Bank for International Settlements group of that have made the United States the world's biggest debtor central banks, which now provide the only source of external nation. Instead, he demanded, Congress and the administra­ financing for the United States. In effect, he solicited the tion would have to take draconian austerity measures to re­ foreign loans which propped up the fading credit of the U. S. duce federal spending. In the few days before his June 2 government, and, at the point at which he could do no more , decision to refuse a third term in office, Volcker apparently he left office. determined that this President would not take such draconian measures-leastof all in an election year. He decided not to The two governments be on hand for the recriminations, when the foreign creditof Whatever his personal motives for leaving, Volcker re­ the United States collapsed. mains the casualty of the civil war among two governments At theInternational Monetary Fund, the Federal Reserve, in Washington. Having usurped the Congress's power to and leading Wall Street investment firms, Volcker's depar­ create currency, the major American banks have constituted ture left senior officials thunderstruck; Volcker himself had a second government. That is true not merely in the technical told friends only days earlier that he fully intended to accept sense, i.e., that their combined offshore operations create a third term. In effect, the on-the-ground commander had money at will, a privilege reserved for governments; they announced that the battle was lost before it was joined. also built the parallel intelligence community, whose mach­ The true turningpoint came May 29, when the New York inations have come to the surface in the Iranian arms affair. Federal Reserve Bank's foreign exchange chief Sam Cross Both governments face bankruptcy, as a result of this told a press conference that the volume of central banks' usurpation. America's industrialand agricultural tax base has foreign exchange intervention-roughly $34 billion during declined such that the federal governmentcan neither tax nor the three months to April 30-equalled the U.S. trade deficit borrowits minimum spending requirements at home , largely for that period. Foreign private lending to the United States thanks to the monetary policy Volcker introduced after taking shrank during the second half of 1986, and disappeared dur­ office in 1979. The offshore operations of the major banks, ing 1987. America's entire foreigndeficit , and two-thirds of meanwhile, typified by (but hardly limited to) the Third thefederal budget deficit, were financed this year to date by World's $1 trillion debt, have left them insolvent as well. the printing-presses of foreign central banks, as they pur­ Now, one government will become the other's receiver chased with their own currency, unwanted dollars in the in bankruptcy. Volcker sought a mandate from the White foreign-exchange market, and reinvested those dollars in U.S. House to become this receiver, and did not get it. Doubtless, Treasury securities. "That is the point where you have to stop the White House had preferred to keep Volcker in office, to extrapolating," warned a senior Federal Reserve staffer. "That "reassure a nervous financial world," as a New York Times is obviously not sustainable for the long haul." editorial wrote-but on condition that he not do to the Re-

4 Economics EIR June 12, 1987 • publicans in 1988, what he did to the Democrats in 1980: But Volcker determined, Washington sources empha­ plunge the economy into depression on the eve of presidential size, that Treasury Secretary James Baker III had failed to elections.It was this lukewarm invitation to limited authority obtain the required commitments from the Europeans and that Volcker snubbed, in favor of whatever position in the Japanese to maintain support for the dollar after the Venice high six figures he takes at a Wall Street investment house. summit.As Rohatyn had warned in the same speech, "There Citibank's $3 billion addition to loan loss reserves, forced is no purely American solution to any of our major economic the question of who bankrupts whom. The writing-down of problems. The U.S. cannot afford a recession that would Third World loans would force the elected government to drive our deficitsto more than $300 billionand possibly cause bail out the parallel government, either directly, or by guar­ a crash in the value of the dollar as well as in the stock and anteeing the repayment of Third World debt traded in a pro­ bond markets. The result could be massive domestic and jected "secondary market." To assume the bad debts of the international banking defaults, a world recession and politi­ banks, the elected government would have to sacrifice its cal instability in large parts of the globe.Avoiding such a own credit.That is what Volcker demanded: drastic reduc­ scenario, if possible, would involve a delicate combination tions in both defense and social spending, at the direction of of coordinated domestic and international efforts: The U.S. America's creditors. As EIR reported ("President Reagan would cut its deficit with new taxes and expenditure reduc­ dives into the budget trap," May 22, 1987), a faction in tions ...[w hile] to avoid a collapse of the dollar, Japan and Congress now wants the equivalent of a bankruptcy trustee Europe would stimulate growth, cut taxes, increase spend­ for the federal government: automatic sequestration of spend­ ing." ing above the Gramm-Rudman-Hollings targets , and the ap­ In summary, Volcker could neither force the administra­ pointment of a special commission to determine long-term tion to take the bitter medicine before presidential elections, budget cuts. nor could he count on America's allies continuing to extend The creditors' committee would consist of America's the exposure of their banking systems, in the face of a global foreign creditors, represented by the International Monetary financial disaster. Fund, and the investment-banking cartel which markets the debt-paper of the U.S. Treasury. Lazard Freres' Felix Ro­ Why Greenspan? hatyn, who set the precedent for such trusteeship with the Federal Reserve chairman-designate Alan Greenspan got "Municipal Assistance Corporation" which ruled New York the job from a White House which wanted a free-market after its 1974 bankruptcy, set forth the terms of such trust­ ideologue who is also a loyal RepUblican. A well-informed eeship in a recent speech. Washington source adds that Greenspan accepted the posi­ "The U.S.today is headed for a financial and economic tion, which the more astute Volcker spumed, only because crisis just as New York City was 15 years ago," Rohatyn he is power-hungryenough to ignore the danger he is walking said."What appeared to be only a possibility fiveor six years into. Since his tenure as President Gerald Ford's economic ago became a probability more recently, and has now become adviser, Greenspan has been a favorite position-paper-drafter a virtual certainty.The only real questions are when and how. and committee chairman, tending toward the Henry Kissin­ In addition, when the crisis occurs, it will entail, quite pos­ ger wing of the party. His principal qualification has been sibly, a worldwide recession.The facts are that the U.S.has that he is a clever man with no strong views about anything. been gUilty of the most irresponsible fiscal behavior in its He has a sharp tongue, however; at a private Swiss monetary history for the last seven years. American fiscal folly, cou­ conference last year, he ridiculed the administration's so­ pled with our inability to coordinate economic policies with called economic recovery. He has also gone on record rec­ Europe and Japan, have created an ever-increasing world­ ommending a level of 120 yen to the dollar as a supposed wide pyramid of debt that cannot withstand a major reces­ cure for the trade deficit. sion." There is no point in speculating what Greenspan might What should be done? Rohatyn protests that we "have do in office;he is there, precisely because he may be caused committed $2 trillion for a defense program of dubious values to do almost anything. The White House has neither the ...been unwilling to limit ...Socia l Security and Medi­ intellectual nor moral courage to do what is necessary, name­ care ...and that, in an act of ultimate financialcowar dice, ly, to put the parallel government into receivership, through we have attempted to pass on to our children the cost of this a general banking reorganization. In principle, President behaviorby borrowing from tomorrow instead of taxing to­ Reagan wants a constitutional amendment for a balanced day." budget, and Treasury Secretary Baker wants increased Inter­ His recommendations are identical to those of the Inter­ national Monetary Fund surveillance of the American and national Monetary Fund staff, namely, spending cuts and tax other economies.In practice, the President and his circle do increases in the United States, combined with monetary and not wish to throw the election 18 months in advance. That fiscal expansion abroad, to continue financing a reduced left only the choice of a mediocrity for Federal Reserve chair­ American deficit. man, who will act on behalf of whatever forces prevail.

EIR June 12, 1987 Economics 5 Mrica Report by Mary Lalevee

Africans move on the debt front tions on us, which led to the progres­ Ivory Coast shows debt crisis far graver than some realized, by sive contraction of our economy. And yet, we were obliged to pay them back declaring it can no longer service its foreign debt. everything on the due date, otherwise we would have no more aid from them. The economy was not developing, children were dying of malnutrition. We discovered that we could not solve On May 28, one of the most pros­ "North." Mitterrand said that he would the problems in this way. We think perous nations in Africa, the Ivory raise the issue at the Venice summit, that with the cooperation of the Zam­ Coast, told creditors that it was no and there are reports that the French bian people, we must do more than longer able to service its externaldebt. government will make a major pro­ survive, we hope to revive our econ­ With a per capita average annual in­ posal on African debt at the July meet­ omy, with our own resources, our own come of $7 10, compared to Zaire's ing of the United Nations Committee sweat." $120 or Kenya's $340, the country on Trade and Development (UNC­ Kaunda warmly praised French had long been regarded in internation­ TAD) meeting in Geneva. Premier Chirac' s approach to Africa's al banking circles as an example of The French daily Le Figaro de­ economic problems, saying, "Jacques how an African country should devel­ scribed Ivory Coast as "the richest Af­ Chirac's approach is simply marvel­ op itself, concentrating on producing rican country, the leading world pro­ ous. If the great powers who are in the agricultural commodities (in this case ducer of cocoa, and third largest pro­ IMF thought like J. Chirac , many Af­ coffee, cocoa, and palm oil), upgrad­ ducer of coffee." Cultivation and pro­ rican countries would return to the ing agriculture, and reducing the role cessing of coffee is the main source of IMF. And Chirac talks about econom­ and number of state-run enterprises. income for about one-half of all Ivo­ ics, not politics." For all its orthodox behavior, the rians, and it employs more than 2.5 The prime minister of Congo, former French colony has not been million people. The Ivory Coast is now Ange Edouard Pongoi, strongly criti­ spared the economic fate of poorer Af­ the third-largest producer of coffee in cized the IMF in a recent declaration ric an nations such as Zambia and the world, after Brazil and Colombia. to the AFP news service. He stressed Zaire, which, faced with mounting The Ivory Coast became the world's the "negative consequences on the so­ debts and reduced revenues due to largest producer of cocoa in 1978, cial level of the discipline imposed by falling commodity prices, have finally doubling its production of cocoa beans the IMF on the indebted countries, and rejected yet further demands for aus­ between 1970 and 1979. The drastic the reschedulings that only delay a real terity measures from international fi­ fall in the prices of these two com­ solution to the problem." He said that nancial institutions like the Interna­ modities, with coffee falling by 20%, the "problem of African debt must be tional Monetary Fund. has meant a loss of 13 billion francs in approached and dealt with in a differ­ Ivory Coast, led by veteran Presi­ export revenue since the beginning of ent way." dent Houphouet Boigny, President this year. The country's externaldebt , Despite all the evidence that IMF since independence in 1960 , has pur­ estimated at $8 billion, has been re­ "medicine" tends to kill the patient, sued pro-Western pragmatic policies peatedly rescheduled since 1984. the Ugandan governmenthas just im­ over the last three decades, remaining A source involved in negotiations plemented a series of drastic austerity a firm ally of France. The govern­ on African debt reported that other Af­ measures, dictated by the IMF. A ment's announcement of its inability rican countrieswould follow the moves "currency reform" involving the issu­ to pay external debts was met with of Zaire, Zambia, and Ivory Coast ing of new currency, included a 30% some surprise. French President Mit­ against the IMF. "The IMF is no long­ tax on all exchanges of old currency terrand said that knowing the sense of er a myth. I told you the thing was for new. The currency was devalued "civic duty" felt by President Hou­ going to blow up. The countries just by 400%, gasoline prices were dou­ phouet Boigny, and his commitment don't have the money to pay." bled, and the prices of basic goods to abide by the country's obligations, In an interview with the French were increased. There was "near­ the announcement meant that the debt daily Liberation, Zambian President chaos" in the capital, Kampala, as the situation in Africa was "far graver" Kenneth Kaunda explained that "the measures were implemented, accord­ than yet realized in the countries of the IMF had imposed very harsh condi- ing to a UPI wire on May 18.

6 Economics EIR June 12, 1987 The debt moratorium option is thrashed out in Venezuela by Cynthia Rush

In the space of just two months, the nation of Venezuela has would mean a savings of only $250 million, and credit lines undergone a dramatic transformation. No longer is it the well­ would not be re-established for financingimports ." Azpurua behaved debtor, boasting of its special status among other made these statements after returning from a trip to Japan, "less fortunate" Ibero-American neighbors, and promising to where he unsuccessfully attempted to place Venezuelan gov­ honorably meet its obligations to foreign creditors . Its oper­ ernmentbonds on the Tokyo market. The Japanese told him ative foreign reserves have dropped to an all-time low as a that they would accept the bonds only when the appropriate result of the decline in oil prices; inflation this year is expect­ international agencies had restored the country's triple-A ed to top 30%, and popular unrest over declining living stan­ credit rating. dards, high prices, and scarcity of basic food staples, has Even with no promises of new credit, both the finance already led to violent protests in several cities. minister and the central bank demand that the nation adhere At the highest levels of government, political parties, to the onerous terms of the February 1986 refinancingagree­ labor, and business circles, a heated and public debate is now ment signed with foreign creditors . Venezuela paid $6 billion occurring over whether the nation should declare a morato­ in debt service in 1986, and must pay almost $5 billion in rium on its $38 billion foreign debt, and if so, when. This is 1987, as per that accord. Since 1984 , Venezuela has made the topic which has dominated the headlines in all ofthe daily debt payments of over $20 billion, and, at most, it has re­ press since early May, and more so since May II, when a ceived $2 billion in new credits during that same period. As reporter from the Caracas daily El Nacionalleaked the con­ one press commentator put it, "Manuel Azpurua hasn't said tents of a confidential Venezuelan central bank reportreveal­ where he will findthe $5 billion with which we must pay our ing the depth of the nation's crisis. public and private debt for 1987." The report documented that Venezuela's reserves have Because Venezuela also renounced its rights to jurisdic­ dropped to the critical level of $3.6 billion, "below the level tion and immunity from embargo in that 1986 refinancing advisable to meet pressing payments including a minimum accord, its foreign creditors have the right to seize govern­ period of three months of imports." If the "tendency toward ment assets abroad, should operative foreign reserves drop deficits persists," the document warns, "operative reserves to below $2 billion, the level at which debt payment would will approximate the levels set for non-compliance, accord­ become impossible. ing to the refinancing agreement, of $2 billion, a situation which could be reached by the third quarter of 1987." 'Sue the banks' In the face of declining reserves, and a growing fiscal But even Henry Kissinger's worn threat of "making a deficit, the central bank rejected the idea of a moratorium, horrible example" of those debtors who don't behave, isn't however. "Although [moratorium] would bring an immedi­ having much effect. Not only is Azpurua's voice becoming ate advantage in accounting terms," the central bank stated, an increasingly isolated one; there are rumors that he may it would close Venezuela's doors to new credits and endanger soon be out of a job, as leaders from within the ruling Acci6n its foreign trade . The document proposed as alternatives Democnitica (AD), the opposition Copei, and labor and busi­ making liquid Venezuela's "non-operative" reserves, that is, ness representatives question a policy that so overtly violates sell offits gold reserves, which still provide some backing national sovereignty and threatens to unleash greater political for the national currency, the bolivar, or impose harsher and economic instability. domestic austerity while "resorting to foreign financing." On May 28 , AD president and party patriarch Gonzalo Finance Minister Manuel Azpurua shares the central Barrios, demanded that Venezuela sue foreign banks for bank's view on debt moratorium. In a May 28 meeting with "damages and harm to the nation ....They lent to us, and reporters , Azpurua insisted, "Declaring a debt moratorium incited us to bribery, corruption, and definitely, drew us away

EIR June 12, 1987 Economics 7 fromthe true perspective of development." Barrios asserted desire to sell more oil to Brazil, and extended a personal that a portionof Venezuela's debt, in the range of $12 billion, invitation to President Jose Sarney to visit Venezuela in the is actually illegitimate, because it was lent to public entities near future . Lusinchi- will soon to travel to Mexico at the in violation of strict juridical norms, a fact of which the banks invitation of President Miguel de la Madrid, where the debt were perfectly conscious. issue will undoubtedly be discussed. Armando Sanchez Bueno, president of the finance com­ mission of Venezuela's lower house and a leader of AD, told Enter Project Democracy the daily Universal on May 31, that the private banks have What remains to be seen on the domestic level is whether been unnecessarily inflexible with Venezuela "because the anyone inside or outside the governmentwill put forward and government has not wanted to link its economic programs to economic program for the development of Venezuela's in­ the schemes of the International Monetary Fund ....If we dustry and its integration with the rest of the continent. Out­ had accepted [the IMF] ...we would have had to open side of the Venezuelan Labor Party , which supports the debt ourselves up to a regime of free [unrestricted] imports, which reorganization and development proposals of U.S. presiden­ would harm the growth of our industry, and we would also tial candidate Lyndon LaRouche, no one has yet come for­ have the regime of free [unregulated] prices, which the Fund ward with a coherent programmatic alternative. demands as a basic requirement." The absence of a serious programmatic debate, has en­ Sanchez Bueno ruled out the possibility of a debtors' couraged the friends of the U. S.-based Project Democracy cartel, but favorably discussed the idea of establishing a fixed apparatus, whose sordid activities in the Iran-Contra scandal percentage of export income for payment of debt, along the are under such furious attack. In Caracas, associates of Pe­ lines of what Peru's President Alan Garcia has done . "I think ruvian Hernando de Soto, whose Lima-based Institute for that here we could seek a formula, because even the banks of Liberty and Democracy is heavily financed by Project De­ the industrialized nations have realized that the developing mocracy, have surfaced to propose thatVenezuela generate countries cannot pay their debt," Sanchez said. foreign exchange by becoming a Hong Kong-style tourist The leader of the opposition Copei' s parliamentary fac­ paradise, where such activities as drug-trafficking and mon­ tion, Abd6n Vivas Teran, was more explicit. On May 31, he ey-laundering can go on unchecked in the name of "free called on the government to declare a full debt moratorium enterprise. " and also impose strict exchange controls to stem growing On June 2, the daily EI Universal, linked politically to capital flight. Godofredo Gonzalez, Copei's president, Project Democracy networks in the country, argued edito­ charged that Azp6rua was "obsessed" with paying the debt, rially against a debt moratorium, and proposed instead that adding, "The debt should be paid, not by sacrificing the Venezuela embrace tourism to guarantee economic growth. country, but under conditions which permit us to pay and to Venezuela "should activate hotel construction and tourist cover our economic needs." sites, and facilitate investment by foreigners in this area, who The chorus of voices demanding a change in debt policy have more experience than we do in how to attract tourism. has become so loud that the executive committee of AD has In the extreme case, we could sell more oil. Less serious asked Azpurua to appear at their next meeting on June 8, to would be OPEC's protest than the consequence of a morato­ explain "contradictions" in his statements and policy. It was rium," EI Universal stated. rumoredthat at that meeting, Azpurua would be ousted. Ugo Fonseca Biso, president of the newly created Vene­ President Jaime Lusinchi publicly asserts his confidence zuelan Institute for Liberty and Democracy, shares EI Uni­ in his finance minister, but one of the President's closest and versal's view. Fonseca Biso is hoping to become the next most trustedadvisers , Umberto Celli, recently stated public­ president of the national industrial association, from which ly, "What we have to do is strongly and categorically tell the post he hopes to impose these anti-capitalist policies. banks that we can pay neither capital nor interest this year, Venezuela's population is not going to sit around much and perhapsnot in the following years either." longer to see what the nation's leaders decide to do, however Lusinchi's governmentis also indicating that it will seek For the first quarter of 1987, inflation reached 9.3%, with greater cooperation and discussion with other Ibero-Ameri­ price increases of 2.8% for April alone. In an effort to control can debtors , especially if the banks insist on maintaining a the inflationary spiral and stem popular protest, the govern­ hard line. ment announced a general wage increase of between 20% Priorto departing on an officialvisit to Brazil on May 30, and 30% on May 1, and imposeda 12O-day price freeze. But Foreign Minister Sim6n Alberto Consalvi, told reporters , with no plan for reactivating the economy, these measures "We are all convinced that, in the medium term, the countries have proved ineffectual. Prices for such essential items as of Latin America will have to develop a common [debt] milk, meat, chicken, and sugar have shot up, causing severe position, so that their negotiating power can be truly effec­ shortages, hoarding, and speculation. A recentstudy showed tive. . . ." In .Brazil, Consalvi discussed increasing bilateral that the average Venezuelan now consumes less than 1 kilo trade between the two countries, emphasizing Venezuela's of meat per month.

8 Economics EIR June 12, 1987 Speaking later in the day, Mrs. Thatcher blasted Kin­ nock's pronouncements as "a deferise policy of the white flag. He seemed to accept defeat, invasion and occupation. The British people under a Labour Government would then British economy is have to rely on guerrilla resistance to the enemy army of occupation. " Tories' Achilles heel "No one would ever attack the Soviet Union," Mrs. Thatcher went on. "We know too much from the past. The United States would never be subject to a conventional at­ by Mark Burdman tack. It is Western Europe that is subject to conventional attack. The fight leading up to Britain's June II national elections "What deters that is nuclear weapons. It is no use people has given Prime Minister Margaret Thatcher the opportunity saying Europe will not be subject to conventional attack to stress, in the most outspoken terms, her commitment to because all experience indicates otherwise . the defense of the West against Soviet aggression. At the "All experienceindica tes too that it was not the resistance same time, however, the Conservative Party 's fa ilure to deal movements that made those countries free. It was the United in a serious way with the economic catastrophe facing Great States and United Kingdom armed fo rces which after bloody Britain, is undercutting her ability, assuming she gets back battles released those countries and liberated them once into power, to carry through on her own defense commit­ again." ments. However, in the U.K., the most recent Defense White As the month of June began, forecasts began to circulate Paper commits Britain to real defense-spending cuts in the in Britain that Mrs. Thatcher would be denied an outright next three years and to cutbacks in military-related research majority, and that Britain could be faced, after June 11, with and development. At the same time, the consensus among either a weak coalition government of some sort, or a "hung the Whitehall defense-policy establishment, is to cut back on Parliament," in which the monarchy might be obliged to British "commitments" on the global strategic plane. The intervene to resolve the situation. Treasury and City of London cost-accounting fanatics are Moscow made no bones that it is irate at Mrs . Thatcher, having a fieldday , pressing the notion of "budgetary limits" for her unswerving commitment to nuclear deterrence, dur­ upon defense planners. ing her March 28-April I visit to the U.S.S.R. One tangible sign of this discontent is that Mrs . Thatcher has had to carry Kinnock calls for 'industrial revival' out her election campaign under the heaviest security guard The paradox here has not escaped Soviet asset Kinnock. in British electoral history. She has been the target of assas­ Appearing on BBC's "Panorama" show June I, Kinnock sination threats from such "irregular warfare" assets of Mos­ attacked the Tories for undermining Britain's manufacturing cow as the Irish Republican Army and agents of Colonel industry, insisting, "We cannot do without manufacturing." Qaddafi's Libya, while Iran's Ayatollah Khomeini has pro­ He called for an "industrial revival" and advised Britain to voked a nasty diplomatic brawl with Britain, by abducting "take the example of Japan," where "high standards of edu­ and beating a young British diplomat in Teheran . cation" predominate. Of course, there is a monumental sleight of hand involved The 'policy of the white Bag' here, since Britain's economic collapse is in great part attrib­ Mrs. Thatcher was at her best on May 28, when she utable to Labour's own deindustrialization policies. For most responded to Labour leader Neil Kinnock's latest outrage on of the 1963-79 period, the Labour Party formed Britain's defense questions. Kinnock, who closely follows his wife governments. Especially during the premierships of Soviet Glenys's commitment to the Campaign for Nuclear Disar­ fellow traveler Harold (today Lord) Wilson, Labour's sup­ mament (CND) policy of unilateral Western nuclear disar­ port for the "Permissive Society" was what first destroyed mament, told a London press conference early that day, that Britain, replacing British industrial. commitment (such as it Britain need not fear a Soviet military occupation: "The effort was), with an economy based on services, "leisure," and to dominate, whether by invasion, or by some kind of incur­ other components of a rentier-financier's paradise. sion, is a militarily unfeasible proposition," declared Kin­ Mrs. Thatcher did nothing to reverse this. On the contra­ nock. "That has been the case for some considerable time, ry , for her, "privatization" has become an almost mystical and remainsthe case. It isn't a question of being complacent cure for everything. In reality, it has opened up what remains about it, it is a question of facing the reality, the possibility of British industrial and infrastructlU"al assets to takeover by of such a condition arising." the investment houses, like N .M. Rothschilds, Warburg, and Kinnock cited the example of Afghanistan, as a model others. for how Soviet occupiers cannot pacify a country! Worse yet, the Tories have painted disaster as recovery.

EIR June 12, 1987 Economics 9 The pre-election days saw article after article in the pro-Tory health measures" dealing with AIDS, which included reject­ press, painting Britain as being in the middle of an economic ing declaring AIDS a "communicable disease," and has in­ boom, growing by leaps and bounds, surpassing other na­ stead endorsed the "safe sex/condoms" approach of Health tions of Europe, etc. Secretary Norman Fowler. This is a serious comedown, in a country which was considering emergency health measures Symptoms of devastation for AIDS back in October-November 1986. Obviously, the • The North-South divide: Insofar as there is a "boom" fiscal-austerity "budget-balancer" fanatics have won out. in Britain, it is restricted to the giant growth in and around • The inner cities: Britain's inner cities have become so the City of London, of financial services and real estate, since violent and lawless, that milkmen, postmen, doctors, am­ the Oct. 27 , 1986 "Big Bang" deregulation of the City. This bulance crews, welfare workers, and others who normally has given an aura of "prosperity" to southern Britain, while work there, have branded them "no-go areas" and are often the northern parts of the U.K. are devolving into conditions refusing to enter, and police are increasingly at risk. This that are likened by British analysts to a new "dark age." applies to such cities as London, Birmingham, Bristol, and • The collapse of transport infrastructure: Anyone who Liverpool. has had the recent experience of traveling via the British rail • The random spread of violence: British media are in­ system can testify to the miserable state ofthe railways. Well­ creasingly filled withaccounts of murders , rapes, child abuse, traveled Britons compare the roads in many parts of the U. K. etc., of unimaginable brutality and horror. to pothole-ridden New York City . • The collapse of science: A number of scientific lob­ • The spread of AIDS: This is the real "time bomb" in bying organizations have been created, such as the new "Save Britain. As many as 1 ()(),OOOBr itons may already be infected; British Science," which warn that the combined effects of the health care system is already seriously overtaxed. By funding cutbacks and the "brain drain" of scientists leaving agreement of all the three main electoral parties-Tory, La­ Britain, are causing the worst crisis for science in Britain in bour, and Liberal-Social Democratic Alliance-the issue has this century . been almost totally dropped from the campaign. In the midst • The collapse of heavy industry: Whether it be steel, of this silence, the Hous� of Commons Select Committee on auto, or shipbuilding, one increasingly has to speak in the Social Services put out a report opposing all forms of "public grammatical past tense.

CONSOLTING ARBORIST We buy and sell Available to Assist in earthmoving and construction

The planning and development of equipment of all types. Import wooded sites throughout the continental and export worldwide. United States as well as The development of urban and Please contact us 1IIl1iil:1G��suburban planting areas and when buying or selling. The planning of individual homes subdivisions or industrial parks "\ � R R � l]J]) ENTERPRISES LTD. cEt UIPMEN EQ T SALES f: I R tA � For further information and availability Phone 403-452-0606 please contact Perry Crawford III Telex 0374 2883 (Telsec ed) Crawford Tree and Landscape Services 16641-114 Ave. 8530 West Calumet Road Milwaukee, Wisconsin 53224 Edmonton, Alberta T5M3P9 Canada

10 Economics EIR June 12, 1987 Sound the alarm : u.S. shipyards have zero merchant vessel orders

by Marcia Merry

In testimony before a public hearing May 18, the head of completed a major overhaul contract for the Coast Guard, but Bethlehem Steel's shipyard division, David H. Klinges, lost a bid for a Navy contract to build a new line of DDG-5 1 warnedthat , although the shipbuilding industry "is well char­ guided-missile destroyers. For the fiscal year ending March acterized as highly cyclical in nature, the cycles continue to 29, the company is expected to post losses of $40 million. plumb new depths with the current depression in the industry Table 1 presents the decline in merchant ship orders, and approaching bottom for the commerically oriented." reliance on Navy construction, that now characterizes the The director of Todd Shipyards Corporation said that V. S. shipbuilding industry.The five-year Navy plan for fis­ there is "an untenable financial climate for the nation's ship­ cal years 1987-91, includes 106 new ships and 20 conver­ yards in the years ahead." Within two weeks of this testimony sions, acquisitions, and activations. Overall, in constant V.S. by Hans K. Schaefer, who also serves as chairman of the dollars , work completed this year by the shipbuilding indus­ board of directors of the Shipbuilders Council of America, try is expected to decline at least 3%. Todd Shipyards announced it was considering sale of the Figure 1 shows that, as the number of new orders for company, or various types of restructuring. On May 28, ships (l ,000 gross tons and over) went down, total tonnage company officials announced that its revolving credit agree­ capacity constructed has declined dramatically. Yards are ment was in technical default, negotiations were under way lobbying and bidding intensely for fishing vessels, down to with its lenders, and Brown Brothers , Harriman and Co. had garbage scows. been appointed to investigate corporate alternatives. Figure 2 shows the decrease in manpower employed in Todd is one of the top yards in the country , that just the industry in the last several years. Major names in V.S. ship construction have closed down whole yards. In 1986, General Dynamics shut down its entire facility in Quincy, Massachusetts for lack of work. TABLE 1 Decline of new shipbuilding contracts and de­ liveries for U.S. merchant and naval vessels, 1978-87 FIGURE 1 Merchant vessels building or on order in Year Merchant vessels Naval vessels U.S. shipyards, Jan. 1, 1986 New contracts Deliveries New contracts Deliveries (Ships of 1,000 gross tons and ov�r)

1978 30 19 25 120 Number of ships Gross tons 6,000 1979 21 21 13 1980 7 23 11 100 Gross tons in thousands 5,OQO 1981 9 22 28 26 80 4,000 1982 3 17 28 18 / of ships 3,000 1983 4 15 27 21 60 1984 5 5 11 31 40 2,000 1985 0 3 11 35 20 1986 0 16 23 1987 ? 4- ? 27* 0 1975 76 77 78 79 80 81 82 83 84 ·85 86 87-

·Estimated • Forecast Source: Shipbuilders Council of America. Source: Maritime Administration

EIR June 12, 1987 Economics 11 •

held a series of public hearings this spring on aspects of the FIGURE 2 dangerous status of the U.S. flag fleet, the shipbuilding in­ U.S. shipbuilding industry workload dustry, and its suppliers. proJection, Oct. 1, 1986* The picture shown clearly to this panel is that shipyards Active shipbuilding base summation have reoriented to a situation in which the Navy is de facto Number of yards = 22 the sole customer for American yards. The federal budgetary constaints on the Pentagon have resulted in a policy of "low­ 200,000 Production workers cost fleet" strictures that have pressured shipyards beyond 180,000 financial tolerance, since there is no compensating cash flow frommerchant fleet contructi on. 160,000 In recent years of declining trade , there developed what 140,000 is wrongly called an "over-supply" of shipping capacity, 120,000 which had to be "excessed," to use the terminology fo stered " . - by the International Monetary Fund-dominated policies of ...... _ ...... -. ., 100,000 . _ ... . -. Total employment disinvestment in world productive capacity. Serviceable ships 80,000 have been scrapped or mothballed; new ships were not or­ dered. 60,000 In 1973, then-Secretaryof State Henry Kissinger initiated 40,000 FIrm construction the killer phase of this general process. He negotiated a ship­ ping protocolwith the Soviet Union (partof the famous grain deal), in which Russian ships were given the right to go into any U.S. portsand bid for freight(of all kinds, not just grain) 88 90 91 92 1982 83 84 85 86 87 89 at any low-cost rate. Because of numerous Russian bottoms returninghome empty from Cuba, the Soviets easily charged 'Navy projection: FY 1987 Five-Year Shipbuilding Plan Source: Maritime Administration next to nothing for freight, and undercut the independent U.S. freight lines, which in tum, could hardly survive, let alone expand and augment their fleets. The crisis over marine fleet construction and capacity In addition, under these circumstances, there started up now confronting the nation has been taken up by the so-called new, commodity cartel-backed lines, such as Overseas Ship­ Bennett Commission, named after Rep. Charles E. Bennett ping Group (OSG), which is nominally a U.S.-flagli ne, but (D-Fla.), and which included six other experts representing which was begunaround 1973 by the Fribourgs of Continen­ shippers, labor, and shipyards. This group, whose firstreport tal Grain Co., and the Recanati family, identified in a 1986 to the President and Congress is due in September 1987, has Israeli government report as acting to subvert the Israeli banking system_ OSG and such operations have been in­ volved in infamous swindles-such as the windfall profits made by OSG carrying grain to Russia under Kissinger's .grain deal. OSG and similar firms are operated without any regard for the well being ofthe maritime industrial base of the United States. Under these circumstances, independent U.S. shipping lines, and U.S. shipyards alike have become less and less competitive, and less and less numerous. Japa­ nese and Korean shipyards forged ahead on modem ship­ building techniques and gained a dominant market share of merchant vessel contruction. Even a veteran shipping innovator like Malcom McLean, who blazed a trail for containerizationin the 1960s with Sea­ Land, and then in 1978 bought U.S. Lines, in an attempt to create the most modem containerized fleet in the world, has had to succumb to the disaster of shipping and shipbuilding now at hand in the United States. Earlier this year, U.S. Lines declaredbankrupcty , andas of March, McLean put up for auction, 12 "econships" -each of which can carry 2,240

12 Economics EIR June 12, 1987 •

construction fromwhich 1,136 ships were delviered. Also, during this period, 42,542 vessels were repaired and re­ Wo rld Wa r mobilization conditioned, aggregating over 300 million deadweight II tons. This is an interesting figure when you realize that the total world fleet today aggregates some 656.3 million Speaking at the May 18 Bennett Commission hearing, deadweight tons. David H. Klinges, president of the Marine Construction .What is Bethlehem's capability today?To effect even Group, Bethlehem Steel Corp., Bethlehem, Pennsylva­ a small percentage of what was accomplished some 40 nia, compared the performance capabilityof his yards in odd years ago, I regret to say that is far beyond our present World War II, with the de-mobilized state they are in at resources ....Modem ships do not lend themselves to present: the "Rosy the Rivetter" processes of the Second World War .... Fortunately for the United States, Congress enacted the Bethlehem's marine operations have dramatically Merchant Marine Act of 1936, which was designed to contracted during the recent past. At the outset of the rebuild the merchant marine and the shipyard mobilization Reagan administration, some 12,000 workers were em­ base. To meet the requirements of the Merchant Marine ployed in some seven Bethlehem yards. Today, the 2,000 Act, a long-range shipbuilding program was initiated in remaining are employed in three yards, one in Maryland 1938. and two in Texas. Some erroneously believe that when Contracts for 50 merchant vessels were placed that yards are inactivated, they are mothballed but still remain year to initiate a lO-year program anticipating the con­ as a national security asset. Let me disabuse anyone of struction of 50 vessels a year. From this base, the program this line of thinking with a recitation of what happenedto grew in 1939 to 150 ships per year and further to 200ships our five shut-down operations. a year in August 1940. Clearly, the running start that the When Bethlehem management concluded that the lev­ American shipyards got on the most ambitious shipbuild­ el of ship repair work was inadequate to support our five ing program in history saved this nation fromlikely mili­ repair yards, every effort was expended to sell these yards tary defeat. The vessels built under this program supported as ongoing concernsto others, principally small business­ our forces abroad in the face of the devastating U-boat es, in an effort to preserVe the jobs of the yard personnel. packs encountered in the early years of the war. But one of our yards was sold to a competitor who shut This program permitted Bethlehem to enter World down his own yard in the area and moved into our better War II operating 10 shipyards which provided the base of facility. Another yard was sold to . another organization facilities, manpower and technical resources to expand which has successfully operated the facility on a non­ the number of yards to 16-10 repair yardsand 6 for new union basis.

containers. These are the most modem container ships ever In the United States, the only thing keeping the shipbuild­ built. ing industrial base going at all has been the "600-shipNavy" U. S. fleet tonnage has been "excessed" in great numbers, program, now in its sixth year. And that is now not enough. and not merely "de-flagged" to another country . At the same Without evaluating the military adequacy of the proposal time, the fleets of NATO allies are shrinking. British-owned here, the point to be made is that the military-industrialbase and registered commercial vessels fell from 15.7 million of the country has shrunkto the point of shutdown. dead weight tons at the end of calendar 1985 to 8.2 million Logistics experts concur that illthe postwar period, if dwt in 1986. In 1978, just eight years ago, the British fleet Allied economies had grown at or near their potential, by consisted of 1 ,229 vessels aggregating 46.8 million dwt. now there should be a nuclear merchant marine, rapidly haul­ The West German flag fleet fell from 429 vessels to 344 ing and distributing goods around th� globe. Jumbo, nuclear­ ships during 1986, and fell in gross registered tonnage from driven "mother ships" of well over the 50,OOO-ton class could 4.4 million to 3.3 million dwt. speed point to point, from which smaller distributor vessels On the other hand, the United States is now a flag-of­ could serve coastal and inter-island ports. The technologies convenience for tankers owned by such commodity cartel have existed for this for some time, only the wrong-headed companies as British Petroleum, and registered in Kuwait. national and international policies have obstructedthis course.

EIR June 12, 1987 Economics 1 3 Peru's bishops rip lies of the neo-malthusian 'population lobby'

On May I, the Catholic Bishops Conference of Peru placed In this year's Plenary Assembly, We, the Bishops of Peru, itself at the center of a national debate over whether "popu­ have viewed with particular concern theso-called Population lation planning" should be introduced into the Peruvian gov­ Policy in the National DevelopmentPlan for 1986- 1990.... ernment's development strategy, with a dramatic call for the The Church declares and preaches the dignity of each government of Alan Garda to reject the pressures of "inter­ person above all, and therefore the sense of responsibility in national neo-malthusian agencies" which insist Peru limit its all areas of life and also in the .procreation of children.... population growth . For that reason, before speaking of methods of family plan­ The Bishops' message came just as the "population lob­ ning, we speak of the sacred value and the defense of life, of by" hoped to secure an image of respectability as "experts" the dignity of persons, of the sanctity and stability of matri­ needed for development planning. At a May 4 press confer­ mony, of the human and Christian sense of sexuality, of ence in Lima, Dr. NafisSadik, the executive director of the responsible fatherhood in all its extensions: before concep­ United Nations Population Fund, announced that, following tion, at conception, and after conception. (Cf. Genesis 2:24 a meeting with President Garcia, the UNPF had decided to and the recent "Instruction Concerning Respect for Nascent give Peru $2.2 million, to help develop a population-control Human Life, and the Dignity of Procreation. ") ... program severe enough to reducethe annual growth rate from What concerns us is a certain view of responsible father­

today's 2.5% to 1.7%. . hood which may disguise systems of state control of the By May 7, the Bishops' message dominated Lima's press . couple's fecundity, and foster the selfishness of spouses. Most damaging to the United Nations program was the Bish­ The international neo-malthusian agencies utilize the ops' denunciation of the population lobby for attempting to Church's terminology as a way of disguising their intentions, slip back into Peruvian policy the economics of scarcity oth­ ideologies, and philosophies. "Responsible fatherhood" must erwise swept aside by Garcia's government. Just as Garda's not be reduced to the so-called "freedom of options regarding Peru has opened"uncharted paths" in rejecting financial pol­ the means to be used." icies which subjected its people to misery, so must the gov­ Before choosing methods, the couple must develop and ernmentnow take the lead in defending Perufrom population be educated as persons. There is no freedom when the ethical policies premisedon the philosophies already rejected in the and moral values involved in making a decision are ig­ financialrealm, the Bishops urged. nored. . . . Before educating/or something, education must The philosophy behind the Bishops' call for a "daring" develop people as persons, becauseonly with full awareness new approach to the "population"question was summarized of one's being as a person, can the human being freely and

simply by the secretary general of the Bishops' Council, consciously choose what he develops/o r . . .. Monsignor Augusto Vargas Alzamora. "Peru'sgreatest wealth It is said that we are many, too many. But the causes are is its people," he explained in an interview with EIR bureau ignored.... The deeper problem has to be located in the chief Sara Madueiioon May 20. ''To tryto reducethe number Peruvian family structure itself, whose stability and integrity of Peruvians born in the future, is to impoverish them fur­ has already been so weakened legally. . . . ther." The freedom of spirit with which the country's foreign debt problem has been addressedat the State level, in every Bishops uphold the sacredness or life way seeking uncharted paths to deal with it, without surren­ The/ollowing are excerpts/rom the Message o/ the Bishops dering national sovereignty, is very laudable. But, we believe o/ Peru, issued May 1, 1987: that the dignity and integrity of Peru must likewise be de-

14 Economics EIR June 12, 1987 fended against population policies inspired by the same phi­ economic crisis expresses itself in situations of extreme pov­ losophies and plans which pushed our Fatherland into its erty , misery, malnutrition, disease, and death, above all in currenteconomic difficulties, endangering the sovereign in­ the least favored sectors. We are also conscious of the an­ dependence which we are fully entitled to as our right to guish that it means for so many couples, to have more chil­ freedom of personal and collective conscience. dren than they can care for and educate properly. But we What makes men and peoples great, are the moral and cannot be silent when the substantial worth of the person, , ethical values that dignify them. The philosophies of popu­ through matrimony or the family, is at stake. Progress cannot lation policies that subtly have been imposed upon us, destroy come from sacrificingthe spiritual dimension of the human those values and are a serious matter of conscience for the being. We will not have advanced at all by having more , if Church on our continent and especially for us in Peru. we are less as persons. A society cannot measure itself in The Church, those of us entrusted by the Lord to be terms of gross national product, nor in material well-being. pastors in this portion of His Kingdom, is conscious of the It is necessary to maintain its human and spiritual val­ hard reality in which many of our people's families live. The ues ....

Interview: Monsignor Augusto Vargas Alzamora

'Peru's greatest wealth is its people'

Monsignor Vargas is a bishop and secretary general of the of Peruvians, because he undervalues us as creative human Peruvian Bishops' Conference. beings, by saying that we are poor and always will be, and that the future holds nothing but misery for us? EIR: Can you comment on the rather suspicious "charita­ Monsignor Vargas: I think that there is certainly a prejudice ble" attitude of the United Nations, with the announcement there against our race, because calling those three statements of the executive director of the fund for population activities, a myth dismisses popular wisdom too hastily. Obviously, Mrs. NafisSa dik, of a $2.2 million donation to Peru, to help when our popular wisdom speaks of every child arriving with the population policy? his bread under his arm, it means a child conceived in a home Monsignor Vargas: It honestly seems to me that this atti­ where there is love, which has-since the great majority of tude is hardly charitable, because Peru is in much greater Peru's population is Catholic-God's blessing. The means need of help to make its impoverished population more pro­ of living will hardly be lacking if one has really acted con­ ductive. To try to reduce the number of Peruvians bornin the scientiously, no matter how many children there are in a future , is to impoverish them further, because Peru's greatest home. That saying reflects this popular wisdom; thus, for us, wealth is its people. It seems to me that the United Nations it is not a myth. has too mal thus ian a view of Peru and of the world. Unfor­ As for Peru having no natural resources, it seems to me tunately, the U.N. has the experience India lived through, that this contradicts that great wise; man Raimondi, who said and we all know how they operated there. We would not want precisely the opposite. [Raimondi was an Italian scientist their Indian experience to be repeated here in Peru. who explored Peru in the 19th century, and said of its great wealth of natural resources, "Peru is a beggar sitting on a EIR: In the joint press conference given here in Lima re­ mound of gold. "-ed.] One coul

EIR . �une 12, 1987 Economics 15 To say that our country is not underpopulated, to say that standpointthat the hunger of the Peruvian people comes first, this is a myth , is also undoubtedly to fall into the same error, and the debt comes later. Do you not think, Monsignor, that because we see that there are many areas in Peru , such as the a population-control policy at this point rather contradicts jungle, where popUlation density is extremely low; there are this ethical principle, since it would imply that hunger is many uninhabited places there. Peru's coast, with its recover­ fought not only throughdevelopm ent, but by eliminating the able deserts, and the mountains, with their terraces for culti­ possibility of more eaters beingborn ? vation which are being wasted, have great expanses which Monsignor Vargas: At least one gets that impression, be­ could feed many people, so that more people can live , and cause formulating this population policy in the terms it is live from their labor, without begging for alms. beingfo rmulated, that a limit must be put on growth, that a ceiling be set which cannot besu rpassed, suggests that human EIR: The Global 2000Report, published by the Carter gov­ life is of less interest than the economy. To fightsuch an idea ernmentin 1980, used the same malthusian arguments as the is precisely why untriedsolutions to the foreign debt problem Club of Rome , to assert that there are "limits to growth" and have been sought. Thus, we say in our document that we support the statement that the world is overpopulated, and wish not to be dragged into the samephilos ophy which threw that we must not have a population of 6 billion human beings the country into the oppressive debt which it suffers from by the year 2000 . as there would be at the natural rate of today, and that instead we endeavor boldl y to seek new paths, growth. Therefore . it recommends eliminating 2 billion peo­ solutions for dealing with the demands of our future popula­ ple so that the total population by that date doesnot exceed 4 tion-which really will not be excessive-instead of think­ billion. Monsignor, do you think that the sudden "charity" of ing that so many of us will no longer be able to live in the the U. N. toward our country follows more from their desire country. We would like to have a much more honest formu­ to make sure Peru sacrifices its quota of human lives to the lation, much more opento life's possibilities, and also much sinister plans of "Global 2000"? more opento the improvement of living conditions in Peru. Monsignor Vargas: I think that there is a genocidal basis for those theses. It is genocide, moreover, against the unborn, EIR: Monsignor, with respect to the philosophies which against the most innocent, against the defenseless. Such thes­ threw our country into the shameful misery which IMF con­ es are unnecessary; they are theses in which, as a conse­ ditions cornered us into, would you allow me to read a para­ quence of Original Sin, man makes himself the arbiter of graph from a bookby one of the leading theoreticians of these God's works. To admit this, would be to admit that Godhas philosophies, BertrandRuss ell? On page 273 of his book The made a mistake, because when God created man, and said Prospects of Industrial Civilization, written around 1923, he "be fru itful, and multiply, and replenish the Earth," he knew said: perfectly well that the world's population at the moment of "Socialism, especially international socialism. is only Creation, would have to continue growing. To say that growth possible as a stable system if the population is stationary or will be such that people may no longer live. that the land is nearly so. A slow increase might be coped with by improve­ too sterile to support and feed the people who will exist ments in agricultural methods, but a rapid increase must in according to the geometric projection of population growth, the end reduce the whole population to penury . . . the white is to say that God made a mistake, that he did things wrong. population of the world will soon cease to increase. The And even though these men may not put it this way , funda­ Asiatic races will be longer, and the negroes still longer. mentally, in practice, they are saying: "Let's go ahead, be­ before their birth rate falls sufficientlyto make their numbers cause God didn't take our calculations into account; we must stable without help of war and pestilence .... Until that make up for this miscalculation of the Creation." That is why happens, the benefits aimed at by socialism can only be they propose these totally genocidal plans, and fundamental­ partially realized, and the less prolific races will have to ly contradictGod , and keep the world fromre ceiving God's defend themselves against the more prolific by methods which protection, which it so needs. are disgusting even if they are necessary." Russell also specifies the goal sought by applying those EIR: Let's talk about the document recently issued by the methods. In his 1951 Science and Societyhe says: Plenary Assembly of Peruvian Bishops, regarding the con­ "If a Black Death could spreadthroughout the world once cern they have shown over the so-called population policy. in every generation, survivors could procreate freely without The document says that just as Peru has sought uncharted making the world too full ....The state of affairs might be paths in dealing with its foreign debt without surrendering somewhat unpleasant, but what of it? . . The present urban national sovereignty, so it must also seek uncharted paths to and industrial centers will have become derelict, and their address these population matters. The reference is clear, in inhabitants, if still alive, will have reverted to the peasant that when Peru rejected the IMF's conditions, and adopted hardships of their medieval ancestors." the sovereign and patriotic position of limiting foreign debt Let's see what one ofRusse ll's modemfol lowers, former payments to 10% of its earnings, it did so from the ethical U.S. Undersecretary of State George Ball, says in an inter-

16 Economics EIR June 12, 1987 view from June 30, 1981: Ball: We must "halt the unrestricted growth of industry Currency Rates in the Third World. It is more than many of those countries are able to administer. It creates political instability." The dollar in deutschemarks Q: "Are you saying the problem is overpopulation?" New York 18te�IIxIDa Ball: "Yes, the overpopulation of the Third World is in itself the most important strategic issue today confrontingthe 2.11 United States. Immediately, this is especially true in Latin America ...." 2.00 These statements were made a while ago, but their mes­ 1.90 sage is quite current. Do they not make you think that this highly publicized campaign for Third World birth control 1.80 ... responds to these philosophical statements, which the IMF � r- r- also responds to? 1 .70

Monsignor Vargas: I agree completely. These quotes say 41 14 4121 4128 SIS Sill S/ 19 5/26 612 precisely, in a certain sense, that there is genuine racism in in yen these philosophic assertions. They undervalue the races of Thedollar New York lale afternoon fixing the so-called underdeveloped countries. In this regard, I have said many times that the distinction should be made, that we 170 are materially underdeveloped, but spiritually, possibly it is the powerful who are underdeveloped, because they live off 160 of matter, solely from the economic resourcesthey take from others. ISO This has been shown in the way they are dealing with the forelgn debt issue. That is why the document issued by the I - .- � Justitia et Pax Commission of the Holy See, fell like a bombshell on these plans, since it says: Beware ! Responsi­ 1311 41 14 4121 4128 515 5/12 5/ 19 5/26 612 bility lies not only with the debtor countries, but also with the creditor countries. And when we know, as we know, that The British pound in dollars they are arbitrarily raising interest rates on a debt that came New \"ork lale afternoon fixlnll about under different interest conditions, one realizes that what they want is that we never manage to pay the debt. And 1.78 when we simultaneously learnof the maneuvers of the pow­ �-- 1.60 -� "' ers of world commerce, to impose the lowest prices on the raw materials of our poor and underdeveloped countries, I.SO there is a convergence ofinterests determining that we never escape from the economic slavery of the developed countries. lAO Then, recalling that quotation of Russell that you read to me, where he insists on the need for a disease comparable to 1.38 the Black Plague, referring concretely to Africa and to the 41 14 4121 4128 SIS Sl12 5/19 5/26 612 black race; and when the population growth of the underde­ The dollar in Swiss francs veloped countries is seen as a threat to the developed coun­ Ne ..· Vork lale afternoon fixinll tries, then one understands that, yes, they want a plan for : i birth control, but birth control applied primarily to the poor 1.80 countries, under the pretext that they are not going to have the means to live. 1.70 They say, as that last quotation of the formerU.S. under­ secretary of state said, that if we have industries, and we 1.60 continue growing, we are not going to be able to manage them. This is an undervaluation of the human beings who I.SO � live in the so-called underdeveloped countries, and we must 1"",,,- ./ therefore offer our protest. We do not accept this. This is the 1.40 4114 4121 4128 515 Sill Sl I9 5/26 612 mistaken philosophy which we bishops have warnedwe can­ not follow as the basis for a population plan.

EIR June 12, 1987 Economics 17 That is exactly the policy the industry has been pushing since the Carter administration reviewed the future prospects of the industry in the late 1970s. What was new about the industry's proposals, was the Steel standoff demand that the governmentnoW act to implement them. The industry is demanding that the V.S. taxpayer, via the offices shows policy impasse of the federal government, pick up the tab for the destruction of what remains of this core industrial capability. The big nut on this account is the industry'S pension obligations to its by Chris White workforce. Last year, the Chapter 11 bankruptcy of the LTV Corp. blew out the government's Pension BenefitGuarantee Much has been made of the steel industry's announcement, Corporation. The bankruptcy reorganization permitted the at the annual convention of the American Iron and Steel company to off-load its pension and related obligations onto Institute (AISl), of a program for the permanent reduction of the taxpayer. Since Wheeling-Pittsburgh had done the same V.S. steelmaking capacity by between 30% and 40%. in 1985, some viewed that adopted route as the pattern to The policy was the fe ature of the keynote speech of follow. However the federal teat had run dry even while the Thomas C. Graham, the president of V.S Steel , the steel­ piglets from the industry were scrambling to make it back to making division of VSX Corporation, and also the chairman mama. of the American Iron and Steel Institute. A year later, the government has come up with no policy. The industry claims that capacity should be eliminated to The industry, as an industry , is on the verge of overall bank­ match the plateau which V.S. domestic steel consumption ruptcy, delayed by VSX Corp. six-month lockout and .pro­ has declined to in recent years, that is, a level of about 100 duction shutdown, but nonetheless, that is the reality of the million tons per year, of which approximately 25% is made industry as a whole. up of imported steel. Graham reported that total steel imports What was the government's answer to the industry's de­ over the last three years actually comprise 35% of domestic mands? It was the subject of a speech by Labor Secretary and consumption of the metal . He demands enforcing govern­ Trilateral Commission member Bill Brock, even while the ment import guidelines, which would knock 15% out of the AISI conference was going on. Brock told the industry that total import volume, and eliminating capacity. "Closed fa­ he was really sorry , but the V. S.!g overnment could not permit cilities," he says, "should be quickly razed to guard against itself to violate the fundamentals of the "free enterprise" subsequent revival which would add to capacity. " approach on which its economic policy rests. He said that Shocking as this perspective may be, it nonetheless hap­ these matters should be left to the workings of the market. pens to be the policy the steel industry embraced at the end In other words, the government has no policy. There has of the 1960s, with the closure of flagship plants in Buffalo been in existence, for almost a year now, a cabinet-level, and other locations, and went hog-wild with during the Carter interagency working group, elaborating governmental op­ administration. tions to deal with the bankruptcy of the steel industry. Orig­ Behind Graham's analysis stands the ugly reality that inally established when Donald Regan was White House steelmaking, by basic oxygen furnace, has been reduced to chief of staff, the task force's mandate was to figureout how about 30% of the level of total consumption, that another to reduce the cost to the federal government of the bankruptcy 30% is made up of small-scale shops operating electric arc of the industry . That body, as of yet, has made no report or furnaces, and the rest is imports. Where Graham and others recommendation which the government has had the courage at AISI speak of an existent 140 million tons per annum of to make public. domestic steelmaking capacity, they in fact grossly exagger­ Leaks from the body, nearly a year ago, espoused the ate. A study, presented in ElR's Quarterly Economic Report same view that Graham presented at the AISI conference: in June of 1985, showed that present V.S. capacity is prob­ Reduce V.S capacity by 30-50%. Since there is no way the ably in the range of 80 million tons, of which the large-scale government can "cheapen" the cost of the bankruptcy of the basic oxygen component comprises less than 50 million. If industry without walking away from the industry's accumu­ one applies Graham's demands to those figures, one comes lated pension obligations altogether, the decision, ifleftwith­ up with an industry which would function in the range of 40- in the guidelines on which the commission was established, 60 million tons of output per year. This level would be reached is a relatively simple "either, or." by eliminating most of the remaining large-scale production However, much more is involved, under present depres­ facilities in the country, with the exception, perhaps of plants sion conditions: The future of the steel industry is the future like Inland's relatively new integrated facilities in the Chi­ of the economy as a whole. The impasse on the steel industry cago area, in favor of small-scale production based on the is therefore a good indicator of the fight proceeding on eco­ electric arc mini-mill. nomic policy as a whole.

18 Economics ElK June 12, 1987 Banking by John Hoefle

Termination with extreme prejudice Unlike Citicorp, they cannot afford to The Justice Department is preparing to sweep up bankers in write off even a portionof these loans. Over the past two years, Texas, to make way for the Wall Street "giants." RepublicBank has sold or swapped about $80 million of its Ibero-Ameri­ can loans. MCorp, in the past year, has sold about $50 million in Mexican and Brazilian loans. Governmentdebt in Brazil and Mexico is selling for 55¢ to 65¢ on the dollar, while private debt sells from 5¢ to 85¢, accordingto loan A federal grand jury in Dallas has a single year since the Depression. brokers. subpoenaed the financial records of Texas, Oklahoma, Colorado, and The year 1987 marks the start of 300 savings and loan executives, real Louisiana together accounted for 61 % interstate banking and branch banking estate developers, and brokers who of all 1986 bank failures. Houston in Texas. But even the money-center dealt with no fe wer than 100 Texas alone accounted for 13% of all U.S. banks, eager to get a foothold in Tex­ S&Ls. An FBI spokesman described bank failures. as, have been leery of buying troubled it as "one of the largest S&L investi­ During the first week of June, Texas banks. Chemical Bank of New gations in history. " United Bank of Austin and First State York acquired Texas Commerce While oil-belt S&Ls are in worse Bank of Frisco became the 28th and Bancsharesof Houston, but the actual condition than any others, the unprec­ 29th banks to fail in Texas in 1987, purchase price will be determined by edented harassment of financial exec­ and brought the total to 84 nationally. the performance ofTCB over the next utives indicates how grimly the finan­ Both were state banks. UB had assets fiveyears , and TCB shareholders had cial crisis is being prepared. of $207 million. No bids were re­ to eat several hundred million dollars The bankruptcy of the Federal ceived for a purchase and assumption worth of bad loans, in the form of a Savings and Loan Insurance Corpo­ transaction, but MBank Austin agreed separate, self-liquidating bank. ration, which will cost the federal to pay the FDIC $300,000 to assume First Interstate of Los Angeles has government somewhere between $50 UB's insured deposits, and to pur­ announced a similarly structured ac­ billion and $100 billion to straighten chase other assets of the failed bank quisition of Allied Bancshares. out, may emerge as the decisive test for $5 1.2 million. To prevent out-of-state takeover, for the federal budget. If the federal "The majority oflosses arose from RepublicBank and InterFirst decided government picks up that sort of tab liberal and ill-advised loans to a vari­ to merge, combining two troubled under present circumstances, it en­ ety of commercial and real estate bor­ banks into one bank a little too big for dangers its own credit. rowers in the Austin area and to bank all but the largestmoney-center banks The problem is that S&Ls are at insiders and their related interests," to swallow. the center of the Republican political according to the State Banking De­ Only MCorp and First City Ban­ base. It appears that the banking mafia partment. corp, of the top six, have remained as in the Republican administration, The First State Bank of Frisco, with they were going into this year. First headed at Justice by White, Weld scion assets of $40. 1 million, was closed City is frantically seeking a buyer, with William Weld, has begun a vicious due to "substantial losses on loans to no takers so far. soften{ng-up operation to preempt op­ out-of-area borrowers and to principal Themoney-center banks are wait­ position to the kind of measures Wall shareholders and their associates," the ing for a scavenger's meal at the ex­ Street will recommend: parceling out FDIC said. pense of Texas interests. The Justice the insolvent commercial and savings Citicorp's $3 billion addition to Department's heavy artillery appar­ institutions, at zero equity, and with loan-loss reserves in May also puts ently intends to soften any possible federal subsidies, to Citibank et al . pressure on Texas commercial banks. resistance. It wouldn't be the firsttime Between Jan. I and May 28, Tex­ The top five Texas banks (MCorp, Re­ that the Justice Department of the as had already had 27 bank failures, public, InterFirst, Texas Commerce, United States, populated with fellows compared to a record 26 failures in all First City) have about $2 billion in like Weld, acted on behalf of purely of 1986, the most failures in a state in loans to lbero-American countries. private interests.

EIR June 12, 1987 Economics 19 Report from Italy by Liliana Celani

Austerity menus to prevail in Venice? t economic potential of the African On the eve of the June 8-10 summit, there seemed to be little population . . . since AIDS has hit some African countries upon which prospect of action on the key issue-a break with the IMF . industrial countries depend for their raw material resources both econom­ ically and militarily." ' Pressures to find an alternative to How beautiful is Venice this time cern at the summit, say Italian media, International Monetary Fund condi­ of the year, with its special atmo­ will be to win support from the West­ tionalities in Venice came from a sphere of decadence," opened the ern allies for intervention in the Per­ num�r of African and Ibero-Ameri­ comedy of a young Italian writer which sian Gulf. Italy and Spain have been can governments, including an urgent dealt with the influence the Serenissi­ invited to take responsibility in the message from II Ibero-American ma has had on Italian politics since it Mediterranean while the U.S. Sixth debtor countries sent to Premier Fan­ managed to destroy the Renaissance. Fleet moves to the Gulf. fani, asking him to include the issue The description seems to fitthe atmo­ Reactions to this long-overdue of debt reorganization on the Venice sphere one can breathe in Venice, a proposal have unfortunately not been agenda. The oQly concrete reaction to few days before the opening of the very positive on the Italian side. For­ this message came from French Pre­ "Big Seven" summit on the island of eign Minister Giulio Andreotti, a mier Jacques Chirac, who called for a San Giorgio. friend of Colonel Qaddafi , demanded "Marshall Plan" to finance those con­ Since no alternative to the finan­ a U.N. decision on this matter, and cretedevelopment projects which have cial crash, the debt problem, and the Premier Fanfani, head of the Italian been blocked by the IMF condition­ New Yalta deal appearing in the back­ caretaker government, said, "We are alities so long , and from Japan's Prime ground of the discussions has been not Marines" during his visit to Otta­ Minister Yasuhiro Nakasone, who presented yet by the protagonists, with wa and Washington to prepare the committed himself to finance such a the exception of the French and Japa­ summit, which Italy chairs this year. Marshall Plan with $30 billion over nese Premiers Chirac and Nakasone, One week before the summit, three years. the Italian press is devoting most of its however, two "hot issues" have been Otherwise the discussion on the Venice summit reports to the "party discussed in the Italian press which are debt problem is typical of those who life" in Venice. Long articles describe precisely the ones posed by Demo­ pretend not to see the coming financial the colors Nancy Reagan chose for the cratic presidential candidate Lyndon crash, with daily interviews in Cor­ walls in the villa she and her 800-per­ LaRouche: AIDS and the debt prob­ riere della Seraand other Italian dail­ son "court" will occupy in the Veneto lem. ies of Wall Street experts or Italian (the region surrounding Venice), or "AIDS will be the top issue at the Keynesian economists, who propose George Shultz, who will play golf with Venice summit," wrote the Italian dai­ to "strengthen the role of the IMF and an Italian nobleman. ly 1/ Giornaleon June I, finally rec­ the World Bank," although they admit The biggest reception, in Palazzo ognizing the connection between the that these financial institutions fa iled Grassi, will be offered to the Big Sev­ AIDS epidemic in Africa and the debt in their task and are considered as the en by FIAT industrialist Gianni Ag­ problem: "It is known that one of the main obstacle to development in less­ nelli, who seems to be the only one top issues at the summit will be the developed countries. who can afford it, since Premier social economic situation of the sub­ If this line prevails in Venice , Amintore Fanfani and President Fran­ Saharan African countries due to their events will confirm what Olivetti head cesco Cossiga emphasized that a strict debt, with its repercussions on the Carlo De Benedetti, representing the austerity budget was to govern the economic perspectives in the West. A old Venetian family fo ndi around As­ summit, including a fixed menu with plan will be examined to relieve these sicurazioni Generali insu rance, said Veneto specialties. countries of part of their debt to the May 29 at a Rotary Club event in Flor­ Even President Reagan, despite the governments and reschedule the debt ence: that the United States will be big talk about his five years of recov­ to banks. In this context, the devastat­ replaced by Eastern and Western Eu­ ery, was adamant about cutting the ing effect of AIDS can be seen. The rope together as the biggest economic costs for his entourage. His main con- epidemic is threatening to reduce the power in the world.

20 Economics EIR June 12, 1987 Agriculture by Marcia Merry

Judge stays foreclosure actions down and poverty among farmers.The The FmHA is administering thefarm shutdown, asforeclosures Harkin-Gephardt "Family Farm" bill asserts that farms will be most viable grow to a record size during the "Reagan recovery." if national food output is drastically reduced and the public made to pay more for scarce food to guarantee a parity price to farmers. Another group On June 3, Federal Judge Bruce M. notice to this large pool of borrowers ." sharing the same outlook, the Land Van Sickle ordered the Farmers Home The new order affects about 29% of Stewardship Foundation, promotes the Administration to re-notify 78,000 the FmHA's 267,000 borrower-farm­ concept that farms should consist of u. S. farmers ofthe agency's intention ers. small holdings, producing only for lo­ to foreclose or force a settlement. This The business of FmHA-to lend cal needs, and that farmers must reo­ order augments a ruling of the judge to farmers so they can stay in opera­ rient to "spiritual" values. Without a in May, which halted foreclosure ac­ tion producing food-has ground to a blush for the similarity to Hitler's Blut tions by the FmHA, charging that the halt in many states, because by spring­ und Boden-blood and soil-doc­ agency has denied Fifth Amendment time, the FmHA had already run out trine, the "Land Stewardship" activ­ and due process to these farmers, who of loan funds supposed to last until the ists speak of the special relationship had originally been notifiedin 1985 of beginning of the next year. betweenthe farmerand his land-even the intention of the FmHA to take "ad­ The biggest agriculture lender of if he does not own it, but conserves it verse" action against them. The all, the Farm Credit System, is in the for future use. judge's order halts immediate foreclo­ same position. The FCS holds about This romanticism does not cover sure of 13,000far mers, and stays pro­ one-third of the national agricultural the fact that in Iowa, the heart of the ceedings against another 65 ,000. debt, or a total of $65 billion. Special farmbelt, for example, many farm Earlier in the litigation, which be­ proposals are pending before Con­ towns are half ghost-towns, because gan in 1983 when farmers filed a class gress for a massive bailout for the sys­ there is no trade for the stores and ser­ action suit in NorthDakota, Judge Van tem, or else many of its district banks vices as farms go under. Iowa's sec­ Sickle imposed a moratorium on fore­ and lending agencies will be in bank­ retary of agriculture reported in the closures for two years. ruptcy by fall. first week in June that the state had Farms went out of operation at a The combined inventory of fore­ "turned the comer." The "proof' was rate of about 1,200 a week over the closed farmland from the FmHA and a study released by Iowa State Uni­ last year. Most ofthese are in the mid­ Farm Credit System has grown to a versity, based on a handful of re­ size range of over $50,000 gross in­ size exceeding that of the state of sponses to a questionnaire mailed to come a year, which comprises the core Rhode Island. The entities have begun 5,000 farmers. Only 25% of those re­ 400,000 farms, out of a national total selective sell-off to raise funds, and ceiving it responded, and only 25% of of 2 million, that account for most of also to oblige certain special financial those answered the questions and were the nation's food supply and export interests in the market with hot cash, analyzed. The results: Half of Iowa's potential. for land deals. farms are in a strongposition; 24% are The Farmers Home Administra­ In the face of this destabilization in "stable" financial condition; 15% tion holds approximately 15% of the of the farm sector, Congress has only are weak; 11% are in crisis. national farm debt, and has served as conducted hearings, but taken no Nationally, these bogus analyses the lender oflast resort. Now, in thou­ emergency action. Certain measures are lulling policymakers and the pub­ sands of cases, as the Van Sicklejudg­ are contemplated with the Farm Credit lic alike into believing the situation ment shows, the FmHA is administer­ System, to avert a multibillion-dollar can be ignored. But the potential for ing the farm shutdown. Van Sickle crash of the national debt structure. food shortfalls, for example, milk ra­ said, "Renotification [of bankruptcy But the national security requirement tioning when schools open, and ra4i­ or forced settlement] of these borrow­ to preserve farms, farmers , and food cal meat price rises, will soon enough ers will burden FmHA' s operation and supplies, has not been addressed. present the truth to those who chose to budget, but this burden is outweighed Worst of all, are the groups that ignore the consequences of farm fail­ by the benefitof providing . . . sound advocate accommodating to the shut- ures.

EIR June 1 2, 1 987 Economics 21 Business Briefs

InternationalCredit two Moscow state banks and the leading "Our space station will certainly boost German bank will not beconfined to prepar­ overall U. S. competitiveness and produc­ Kissinger peddles his ing for joint ventures, but will set up work­ tivity, and will create an estimated 20,000 ing groups to develop new forms of financ­ to 25,000 jobs around the country," he debt scheme in Brazil ing cooperation, and will give advice on added. "When indirect employment is in­ banking practice at an early stage of a given cluded, tbe job figure will rise to about Henry Kissinger will be in Sao Paulo, Bra­ joint-venture concept. Joint advertising and, 50,000 to 60,000.... I believe it will be zil, on June 23, to meet with businessmen at a later date, the founding of a joint con­ one of the soundest investments our nation and speak on the Third World debt problem. sulting company, are envisioned. will ever make. " The same businessmen are now calling on Jiirgen Sengera, member of the execu­ the government to reverse its decree limiting tive board ofthe Westdeutsche Landesbank, price increases to 80% of inflation, and de­ said May 30 that Soviet negotiators have The Debt Bomb manding an economic plan that will reduce recently reacted more positively toWestern the public deficit and "restore confidence," initiatives on joint economic ventures and BIS's former head before business begins to invest in the coun­ have even given up insisting that such ven­ try again . He will meet with President Jose tures operate only in third markets to earn attacks debt policy Sarney and Finance Minister Luiz Carlos foreign currency. Sengera said he still sees Bresser. problems to be solved, such as the transfer The former chairman of the Bank for Inter­ On May 24, Kissinger released to the of profits, taxation, and the labor law to be national Settlements (BIS) has attacked the Washington Post an updated version of his applied, but said that he was greatly satisfied debt policy of the Western banking com­ plan for restructuring Ibero-America's debt: with the progress. munity, SIS included-a policyhe was most Capitalize interestpayments and ram through adamant in defending while head of the bank. the old debt-for-equity scam. Fritz Leutwiler, now chairman of the If this is not done , Kissinger writes, Bra­ major Swiss industrial group, BBC, told the zil's "internalcrisis will worsen, and popul­ NASA annual meeting of its shareholders, "How ist, anti-market, anti-U .S. forces will be shall developing lands come back into de­ dangerously strengthened ....Of course, Space station key velopment, when industrial countries erect the most radical and most market-oriented protectionist barriers against developing solution would be to face facts head-on: some to future: Fletcher countries' shrinking export trade and when debtors owe more than they can ever hope all their export earnings is used up in debt to pay or service. Such candor would en­ "A space station is the key to our future in service? . . Isn't it high time we in the in­ courage creditors to convert their Latin space," wrote NASA director James Fletch­ dustrial countries consider the economic, American debt into securities." er in the Washington Times May 29. "If we social, and political consequences of such want to return to the Moon orgo to Mars, it policies?" will be much moreeconomical and produc­ Only a few years ago, Leutwiler told an tive to leave from a base already in space interviewer that even countries whose "mar­ Banking than from Earth." ginal" populationswould fall into starvation Fletcher argued, "Although the ultimate and death if the foreign debt continued to be Deutsche Bank signs objective of our space station is to serve as paid-would have to continue paying their a gateway to the Moon or Mars, its most foreign debt. deal with Soviets significant near-term feature , essential to its utility for science, commerce, and technol­ West Germany's Deutsche Bank, together ogy, is that it will be permanently occu­ Corporate Strategy with the Soviet State Bank and its subsidiary pied." for foreign trade , will bring together and Fletcher argued that the space station Maxwell drops bid advise firms and organizations from both would act as a repair center for satellites, countries interested in joint ventures in a observatories, and private space piatforms. for Harcourt Brace working group, according to an agreement "The space station's microgravity environ­ which Deutsche Bank signed in Moscow ment will enable scientists to make new dis­ London magnate Robert Maxwell withdrew May 21. The agreement, which is valid for coveries in materials research and in life his bid to take over Harcourt Brace Jovanov­ a year, follows a Soviet trend to place rela­ sciences," in addition to other primary re­ ich publishers on May 28. According to a tions with Western banks on a contractual search, such as the production of "pure bio­ report published in the Times of London: basis. logical crystals necessaryfor the identifica­ "The move has made Mr. Jovanovich, son The projects to be implemented by the tion of basic molecular structure. of a Polish coal miner, one of the few busi-

22 Economics EIR June 12, 1987 Briefly

• UGANDAN President Museveni announced May 15 a 400% devalua­ nessmen to have thwarted Mr. Maxwell." from "slim" disease (severe weight loss, in­ tion of the currency and a currency The Czech-born Maxwell is the owner dicating AIDS). Between 12% and 15% of reform that would require people ex­ of Britain's Mirror newspaper chain. He is 3,000 Ugandan blood samples tested in changing their old currency for new also the leading British member of the Club Britain have beenseropo sitive; extrapolated to pay a 30% tax. Gas prices were of Rome . His Pergamon Press publishes all to the Ugandan population, this would mean doubled. The prices of basic goods Club of Rome writings, as well as writings half a million HIV carriers in the country. like flour and oil have gone up, with of Soviet and Bulgarian leaders. In 1986 surveys, tests of 100 patients at the price of sugar rising 300%. In Jovanovich angrily rejected Maxwell's two hospitals in Kampala showed 27% and exchange for these measures, the IMF $2 billion bid to take over his U.S. publish­ 30% seropositive, and 14% of pregnant is to grant Uganda loans totaling $76 ing company, calling him "unfit to control women at a prenatal clinic were seroposi­ million. Widespread unrest is already the largest textbook, scientific,and medical tive. In a 1987 test, the percentage of preg­ reported. publisher in the United States." nant women infected had almost doubled'4o In his brief opposing the Maxwell bid, 24% . • DANIEL G. AMSTUTZ re­ Jovanovich had cited the suspicious nature signed as undersecretary of agricul­ of the Liechtenstein-based trust which over­ ture for internationalaff airs and com­ sees Maxwell's fortune; Maxwell's pro-so­ modity programs May 28. The res­ cialist views; and Maxwell's alleged apolo­ Finance ignation will take effect Aug. I. Am­ gy for the Soviet shoot-down of the Korean stutz gave no explanation for his res­ Airlines 007 jet in 1983. ignation except that it was "time to Jovanovich summed up: "Mr. Maxwell Colombian troubles move on." Prior to taking his post, has money, but not enough. He has ambi­ mount, project canceled Amstutz spent25 years at the invest­ tion, but no standing. He ought to be sent ment branch of Cargill. packing to Liechtenstein." The debt of the South American nation of The Financial Times of London com­ Colombia will rise to $15.5 billion by the • THE KRA CANAL Committee ments that it is not yet clear whether Max­ end of 1987, and its debt service will amount of the Thai parliament will make a well's decision "amounted to retreat or sur­ to 45% of its total exportreven ues. In 1986, tour of the world's major canals for render." its debt service amounted to 37% of total two months beginning in July. Thai­ exportearnin gs. land has committed itself to building Colombia has maintained a "good boy" a canal through the Isthmus of Kra, record with international creditors, paying relieving the crowded Strait of Ma­ AIDS all its debts without even renegotiating the lacca. terms. It has little to show for the effort, WHO announces however. This policy has placed the country • ALAN GREENSPAN, the re­ in the unenviable position of currently pay­ placement for Paul Volcker at the plan for Uganda ing much higher interest than any other Ibe­ Federal Reserve, believes that the ro-American country. dollar has bottomed out, the Wall The World Health Organization has just an­ The country has recently sent three mis­ Street Journal reported on June 4. nounced a $6 million six-year program to sions abroad, to the United States, Britain, "Many other analysts, however, ar­ fight AIDS in Uganda. The program com­ and Japan, to seek $5 billion in new credits gue that the new Fed chief won't be bines public information and education with to finance its development through 1990. so lucky. They believe the dollar may screening and protection of the blood sup­ But the government of President Virgi­ drop to 120 yen or below before it ply, epidemiological studies, and improve­ lio Barco recently announced that it was stabilizes. " ment of laboratory facilities. The plan also selling its 50% share in the huge Cerrejon includes screening of donated blood. coal mining project in the northeast. Once • BANK OF BOSTON has an­ The WHO has not made clear how it hailed as a wise investment of several billion nounced it is adding $300 million to expectsan expenditureof a mere $1 million dollars by the country's creditors, Cerrejon its loan-lossreserve following the lead a year to have any real impact. The country was to be the world's largest coal mine proj ­ of Citicorp, Chase Manhattan, and is one of the worst affected by AIDS, with ect, producing entirely for export-i.e., to SecuritiesPa cific. This will raiseBank 1,138 officially reported cases since 1983, earn foreign exchange to meet foreign debt of Boston's reserves for Third World the highest reported number in Africa, cer­ service. debt to $430 million, or 36% of its tainly a vast underestiment. A report by the But the project has suffered irreparably exposure. ThirdWorld debts amount War on Want organization states that in Rakai from a collapse of coal prices. Colombia to about 5% of the bank'stotal loans province alone, in southwest Uganda, more therefore cannot refinance $1.5 billion that and leases. than 2,500 people are thought to have died comes due shortly.

EIR June 12, 1987 Economics 23 �ITillScience &: Technology

West must COt1nter Soviet radio-frequencywea pons Jonathan Te nnenbaum reports on the most critical threat which the West must now meetJro m Soviet MarshalNik olai Ogarkov's technological war build-up.

Soviet Marshal Nikolai Ogarkov has integrated a new, awe­ destroyed a few minutes before warning of the Warsaw Pact some typeof weapon into his plan for all-out war against the attack, then Western defense will practically cease to exist. United States and its allies: radio-frequency (RF) anti-per­ RF weapons are not limited to spetsnaz applications, sonnel weapons. While most Western observers have yet to however, but are part of a general technological revolution put two plus two together and grasp the dramatic implications in all fields of warfighting. RF weapons are one part of a of RF technology in the hands of an Ogarkov, Lyndon La­ strategic concept known as "technological attrition," the cru­ Rouche launched an emergency call in late May for an "SDI­ cial concept in Ogarkov's plan to defeat Westerncivili zation. like mobilization" in the West, to develop RF weapons and At present, the Soviet war economy is gearing up to effective countermeasures against such weapons. produce entirely new generations of the most awesome weap­ Using preciselycontrolled pulses of electromagnetic en­ ons man has ever known. These new types of weapons pos­ ergy, RF weapons can knock out the brain, nervous system, sess such devastating destructive power, that Ogarkov and and other organs of any person within range of the output Gorbachov could demonstratively scrap a large part of their beam. Ogarkov plans to use them as a crucial capability for present nuclear missile fleet, and then tum around to launch Soviet spetsnaz (special designated forces) units operating in a successful surprise attack against the West. That is the real the West. Secretly assembled and hidden in advance of hos­ significance of the Soviet perestroika (transformation) cam­ tilities, in TIR trucks, in civilian aircraft, in residential and paign, which stupid Western observers often describe as a commercial buildings adjoining or overlooking military fa­ "liberalization move" ! cilities, and in other locations, RF weapons will be deployed by spetsnaz operatives to knock out NATO command centers . How do RF weapons work? and key bases, minutes before the launching of an all-out first While details of Soviet RF weaponry have never been strikeby the Warsaw Pact. The goal of these tightly coordi­ published in the West, and many of the relevant research nated spetsnaz attacks, in which RF weapons will be used areas are classified, the basic scientific principles behind together with advanced chemical weapons and miniaturized these devices are simple enough. nuclear devices, is to guarantee that no organized resistance Until the advent of the SOl, most weapons of war relied can be mounted to the Soviet invasion of Western Europe on mechanical force and shock (e.g., the impact of a bullet, and other strategic areas. The principle is frighteningly sim­ the explosion of a shell or bomb) for their destructive effects. ple: If the brains of a few thousand NATO personnel are The main exception to this has been chemical and biological

24 Science & Technology EIR June 12, 1987 weapons, which use negligible amounts of energy, and whose Tuning into living cells effectiveness depends on highly specific physiological ef­ When most people hear about radio-frequency weapons, fects upon the targeted forces. Exemplary are the powerful they tend automatically to think of victims being "cooked" in nerve gases, extremely minute quantities of which, absorbed the fashion of a microwave oven. Although some recent by the skin (for example) and lodging in the synapses of the technologies (gyrotrons and similar devices) actually make it central nervous system, can paralyze and kill a soldier within possible to generate powerful enough bursts of microwaves minutes. For a variety of reasons, however, chemical and to produce these gross kinds of effects on a battlefield, the biological weapons are difficult to "aim" in such a way that most dangerous kinds of RF weapons produce no heating at only the chosen targets are knocked out, and no undesirable all. The typical power densities required to induce biological effects are produced for the forces deploying these weapons. effects are on the order of hundredths of a watt or less per The laser and particle beam weapons developed by the square centimeter of tissue area. This is a power density Soviets and the United States in their respective "SOls," comparable to an ordinary househokl light bulb at the dis­ already make a giant step beyond the "bullets and bombs" of tance of half a meter. even the atomic age. These are weapons which deliver their The effects of RF weaponsare based on the circumstance, energy with the speed of light, but which also rely, in large that a living cell differs from a mere dead mass of molecules part, on being able to "tune" that energy in precise ways by a very special type of coherent organization, which is which ensure penetration and destruction of the target. mediated by what appear to be weak electromagnetic effects. Like lasers, RF anti-personnel weapons produce beams If this electromagnetic organization is systematically dis­ of electromagnetic energy traveling with the speed of light. turbed, the cell will malfunction or die. We might think of But, unlike the laser weapons of the SOl, their target of the effect as an instantaneous "electromagnetic poison." preferenceis the human nervous system, especially the brain. While most people are aware that the activity of the ner­ Their effects depend on a little-publicized, but fundamental vous system involves tiny electrical pulses, many are una­ area of biology: resonant action of electromagnetic pulses on ware that all processes in living tissue are electromagnetic in living tissue. character, from the chemical reactionsto the systems of elec­ Although living cells are sensitive to nearly all forms of tromagnetic oscillations which "organize" processes in var­ radiation, the particular types of anti-personnel weapon we ious parts of the cell into a coherent whole. In fact, living are discussing here operate in the electromagnetic wave­ tissue possesses a frequency spectrum, analogous to the spec­ length range between long-wave radio and radar, and micro­ tra of individual atoms and molecules, but much more com­ waves-that is, from hundreds of meters down to fractions plicated. RF weapons depend on detailed knowledge of the of a millimeter. spectra of various types of tissue under various conditions. Technology for producing radiation in this range has been standard since the breakthroughs in radio and radar during Induced transparency the Second World War. However, the type of signal most Primitive organisms like bacteria are so exceedingly sen­ suitable for biological effects differs substantially from what sitive to electromagnetic radiation in their environment, that is commonly used in communication, navigation, radar and it is nearly impossible to conduct a biophysical experiment so forth . The typical RF anti-personnel weapon produces which does not introduce large "artifacts" produced by the "shaped" pulses involving several different frequencies at the impact of the laboratory electronics on the experimental sub­ same time. The reason for this lies in the peculiarities of ject. Higher organisms have evolved their own electromag­ biological systems, which are "tuned" in a fundamentally netic "screening," to shield their tissues from changes in the different way than radio receivers and television sets. outside radiation environment. Although informed military scientists have long been The best shielded of all organs in all living organisms aware of the possibilities of tuned RF pulses, very little dis­ known to biologists, is the human brain. This definesa crucial cussion of them has appeared, until recently, in the public problem for RF weapons: how to get their signal "in" to the domain. However, the 1987 issue of the U.S. Defense De­ brain and other targeted tissues. partment's Soviet MilitaryPower warnedof a massive Soviet Here, a phenomenon known as "self-induced transpar­ research and development effort in RF weaponry. Under the ency" becomes decisive: Contrary to everyday concepts of title, "The Zap Gap," the March issue of the popular U.S. the hardness and opacity of materials, it is possible to design magazine Atlantic Monthly quoted a number of leading mil­ electromagnetic pulses able to easily pass through any given itary experts describing Soviet RF work. Most recently, the material medium. The properly shaped pulse propagates by German newspaper Die Welt broke the story on its front page, organizing the medium to reproduce the pulse within itself; warning that RF weapons capable of neutralizing thousands in other words, the material is momtntarily made to become of troops on a battlefieldwhile leaving their equipment func­ transparent for the specificform of action applied. tional, are "closer to realization than the SDI." Thus, a series of short, carefully shaped pulses can not

EIR June 12, 1987 Science & Technology 25 only penetrate the natural organic shielding of the body, but technology will not be limited to anti-personnel applications. can get through heavy walls and even metal shielding as well, With the vast increase in available power and precision in unless such shielding is specially "tuned" to block the precise tuning, made possible by breakthroughs in superconductivity frequencies used. With the proper choice of the frequency and other areas, it will shortly become feasible to construct combination and the right "phase relationships" between the pulsed electromagnetic weapons capable of destroying air­ various frequencies, the energy absorbed into the body can craft, tanks, bridges, and other heavy structures. be "steered" to focus in a specific region inside the body. What means of defense are available against RF weap­ While a large variety of physiological alterations can thereby ons? be obtained, the central nervous system presents itself as a Properly shaped electromagnetic pulses can penetrate into most favorable target for anti-personnel applications-be­ buildings and even into a tank . The theoretical possibility of cause of its exceptional sensitivity and because of the instant protection exists, using a screening arrangement known as a debilitating effects produced. "Faraday cage," a dense net of conducting material surround­ ing the area to be defended. However, to be effective, the What do RF weapons look like? Faraday cage would have to bedesig ned and tuned with prior An RF weapon must contain a power source, a generator knowledge of the frequencies and pulse shapes employed in of the basic signal, amplifiers, calibration equipment, an the attack. Recent development of high-temperature super­ antenna system, and a small computer. For "close-in" appli­ conducting materials may permit more effective types of cations such as spetsnaz, where the device would be located screens to be constructed. within a few thousand meters at most from the target area, Since the "close-in" spetsnaz type of RF weapon operates the entire unit could be fit into a single TIR truck. This also mostly in "line-of-sight," massive physical barriers such as a provides a good camouflage, since hundreds of thousands of few meters of moist earth, can be an effective screen against such trucks travel around Europe and the U.S. every day. A these weapons. However, a weU ..planned surprise attack could truckcarrying an RF weapon would look like any other truck, utilize pre-calculated reflection and diffraction of the signal, from the outside. Although such a device is easy to detect as well as obvious secondary "antennas" and waveguides once in operation (too late!), use of camouflage and delaying provided by electrical wiring, piping, ventilation, etc. to final assembly until shortly before use, would make these reach even into underground bunkers. weapons difficult-though not impossible-to locate prior Better screening would beprovided by speciallydesig ned to attack. Another potential spetsnaz deployment mode would electromagnetic fields, "controlled environments" around key be in a medium-sized commercial aircraft flying within line­ areas, which would constitute a kind of immunization against of-sight of the target area. the biological effects of RF weapons. Such screens would RF weapons are obviously not restricted to spetsnaz-type depend on extensive scientific research, and are not now deployments . They revolutionize many domains of battle­ available in the West. The best Glefensewe now possess is to fieldwarfare in the same way as the SOl transforms strategic locate and destroy the RF devices before they can be used. warfighting. The most powerful sorts of RF weapons involve the focusing of entire arrays of antennae, deployed in differ­ Anew SDI ent locations, to "sweep out" a huge target area. Given the Understood in their full strategic and tactical implica­ opportunity to deploy large structures in space (which the tions, RF weapons constitute fully as dramatic a revolution Soviets now possess, thanks to their new heavy launch ve­ in warfare as the antimissile beam weapons of the SOL Also hicle and their space station), it becomes possible to target like the SOl, their development involves crucial areas of areas on the Earth from space. science, particularly biology and electromagnetic theory, and "Close-in" anti-personnel RF weapons can be built with promises to bring remarkable "spin-offs" in many civilian essentially "off-the-shelf' technology. However, an entirely areas. The ability to focus tuned electromagnetic energy any­ new dimension of RF weaponry becomes possible on the where in the body, and to trigger specificbiological processes basis of the new high-temperature superconducting mate­ with such tuned pulses, opens up a new era in the treatment rials, MHO pulsed power systems and ultra-high-power mi­ of disease. Crucial experiments have already proven that RF crowave sources (gyrotrons and beam-plasma devices)-all pulse technology can cure cancers, accelerate tissue growth areas of intense research and development in the U.S.S.R. and the healing of wounds, and stimulate the immune system On the basis of such technologies, electromagnetic weapons to eliminate otherwise fatal infections. become possible which make an ICBM missile look like a Lyndon LaRouche's call for an "SOl-like" mobilization minor threat: We are talking about weapons which could wipe in the West, to develop RF weapons and countermeasures out the populations of towns and cities anywhere on the against them, might also be part of the solution to AIDS . Earth, instantaneously, from thousands of miles out in space. That is just one more urgent reason for launching a Western Moreover, the use of advanced electromagnetic beam crash program in this area-right now !

26 Science & Technology EIR June 1 2, 1987 Soviet strategic radio-frequency and other assault weapons : a primer

by Warren J. Hamerman

The following "primer" has been prepared to complement in RF weaponry. The March 1987 issue of Atlantic Monthly the May 26, 1987 statement of Lyndon H. LaRouche, Jr. magazine contained an article, quoting various experts in entitled "The next Soviet ' Sputnik': strategic radio-frequency popular language on RF weapons under the title of "The Zap assault weapons" (EIR , June 5, 1987, page 37). This is by Gap." One year earlier, the Feb. 15, 1986 EIR Special Report no means conceived to be the last word on the subject, but is entitled "An emergency war plan to fight AIDS and other rather intended as a guide to those who may wish to explore pandemics," reported on this capability in a special section the area further, as a result of LaRouche's focusing attention on the Pushchino Frank Soviet Institute of Physiology and on its strategic implications. Anyone interested in countering Biophysics. a potential Russian assault on the West or in finding the most What has the Pentagon said about Soviet RF weap­ advanced biophysics research track to stop AIDS must foster ons? this area of science. Soviet MilitaryPower (1987) warns: 'The U.S.S.R. has What are the radio frequencies? conducted research in the use of strong radio-frequency sig­ The Radio-Frequency Electromagnetic-or RFEM-end nals that have the potential to interfere with or destroy critical of the spectrum is characterized by the longer wavelengths electronic components of ballistic missile warheads or satel­ and smaller frequencies. It includes long radio waves mea­ lites. The Soviets could test a ground-based radio-frequency sured in meters, short waves measured in centimeters, and weapon capable of damaging satellites in the 1990s .... microwaves measured in millimeters and below. The in vac­ Recent Soviet developments in radio-frequency generation uo wavelengths in this region range from 0.003 all the way devices could enable them to build weapons to degrade or up to 1,000 meters. Thus, the significance of this end of the destroy electronics or cause disorientation of personnel. They spectrum, especially the millimeter microwaves, is that the have generated single pulses with peak power exceeding one wavelengths approximate the physical dimensions of the hu­ gigawatt and repetitive pulses over 100megawatts ." man body. Biological tissues and organelles and whole bod­ How is the Soviet war machine organized tofo rce such ies are of the same dimension as the wavelengths involved. scientific breakthroughs in areas involving "new physical Formally speaking, RFEM include waves that range in fre­ principles"? quency from greater than 0 up to 1012 Hz. Therefore , the The Soviets are on a full-scale scientific-military war frequencies associated with the human voice-through all its footing, which means that they pour resources into advancing "registers"-fall within this region. The biological effects of their technological-scientific capabilities in general, so that RFEM have been extensively studied on both sides of the various weapons applications can literally be pulled "off the Iron Curtain in the frequency range from 3 X 105 to 10" Hz. laboratory shelf' as military exigencies require. This is the Unlike ionizing radiation, RFEM must be specifiedin terms way we used to do things here. This is the essence of the of carrier frequency, modulation, electric-fieldand magtet­ Ogarkov War Plan, which differs from a Western-style war ic-field strengths (or power density when applicable), and mobilization only in that the Russians do not worry about zone of radiation. transferring their capabilities in depth into their civilian econ­ What are radio-frequency weapons? omy. Their military-scientific command structure is tightly Radio-frequency or RF weapons are any weapons which centralized so that breakthroughs in one of their programs shoot or send out pulses (p) or continuous waves (cw) in the can be quickly and efficiently propagated through other areas. RFEM end of the electromagnetic spectrum. The 1987 edi­ Thus, unlike in the West during peacetime, they closely tion of Soviet Military Power, published by the Pentagon coordinate developments and goals across the following pro­ warnedof a massive Soviet research and development effort grams-particle accelerator physics, SDII ASAT, space ex-

EIR June 12, 1987 Science & Technology 27 ploration and rocketry physics, plasma physics/fusion, and is why we believe that we must launch a crash multibillion­ bio-electromagnetic field effects. dollar program for a Biological Strategic Defense Initiative, What types of technological capability do they have or BSDI. Nuclear Magnetic Resonance (NMR) instruments, on the front burner? for example, rest on these principles. They can "see" inside The Soviets have a massive capability in particle-physics a human body and distinguish between healthy cells and cells accelerators. For approximately 15 years they have had a so­ that are part of tumors or are infected by viruses, without a called "Super Collider," or a multi-teravolt accelerator, on a surgeon having to cut into the individual! Since the AIDS par with that at CERN (Centre Europen de Recherches Nu­ viruses, for example, findsanctuary in the brain, NMR may c1eaires, Geneva). For a little over a decade they have led the prove essential as a non-invasive spectroscopy. field in the development of "oversized" gyrotrons, or what Even more fundamentally, it is known that the AIDS we call in the West a "cross-fieldklystron ," which are instru­ virus "infects" the DNA of a host cell's chromosome. Sup­ ments originally developed for fu sion research to generate pose that we wanted the nucleus' own "genome" or "genetic pulsed microwaves and other waves in the radio-frequency message" to eject the virus message during the process of range. Their fusion energy and plasma physics programs are mitosis. To accomplish such a task, we would want to first top-notch. In the electromagnetic pulse (EMP) field the So­ detect or "tune into" the combined signals. Then we would viets have gyrotrons which have achieved three to six orders wish to "detune" the unwanted sources of part of the signal of magnitude higher output than the West. Soviet particle in the overall process. While such a goal is barely a dream beam capability, from proton and neutron particle beams, to today, there are sufficient experimental results for us to be more exotic particle beams, is as good as anywhere in the encouraged if we pursued such an experimental path inten­ world. sively. What would be the short list of immediate scientific­ By analogy, much of what must be done in such work on technological commitments of the Soviet military build­ the cellular level, has already been done on a much larger up? scale with phased-array super-sophisticated radars . There are 1) Radio-frequency weapons. 2) Particle beam weapons also many encouraging experiments which show that such of all sorts. 3) Anti-satellite and SDI weapons of all sorts. 4) instruments may be able to cure otherwise incurable diseases. Weapons and technologies to interfere or "blow out" com­ Some of the latest technological frontiers in optical biophys­ puters and communications and neutralize Western "smart ics research on both sides ofthe Iron Curtain are outlined in weapons" over large areas; for instance, EMP effects can be a special chapter in the EIR Quarterly Economic Report, First achieved by blowing holes in the ionosphere or so-called Quarter 1987. Most people are miseducated into believing "chip guns" which can hone in and destroy the silicon-chip that only the electrical component (E) of a wave carries pow­ circuitry in all modernized smart weapons and vehicles on er. Actually the magnetic component (H) of a wave carries land, sea, air, and space. 5) Anti-personnel weapons which power as well. Like most advanced scientific capabilities, can be "broadcast" against specific individuals or a large the technological applications ofthe research can be for either number of individuals in a given area; these weapons can be civilian or military purposes, depending upon government "tuned" either to kill, maim, or affect various emotional and direction. thought-pattern states. Is the idea of an advanced radio-frequency instrument These technologies all rest on a firmscientific base which to "cook"people as if they were in some sort of microwave includes the following notable capabilities: a) accelerators, oven? b) antennae, c) electromagnetic field theory, and d) materials No. Of course, there is no dispute that there will be development, such as "high-temperature" superconducting "thermal effects" at high power densities over, say, 100mW/ ceramics. There is strong evidence that the Soviets, for ex­ cm2• However, the really advanced work occurs at low power ample, have utilized high-temperature superconductorsin the densities, for example, at less than IO mW/cm2• The more construction of gyrotrons (cross-fieldklystrons) for over five advanced researchers all operate from the principle that "ther­ years. A gyrotron is a "short-wave microwave generator" mal" or heating effects are not what's important about this and the Soviet power output in these is anywhere from three capability. to six orders of magnitude higher than that achieved in the What is the scientific basis of these technologies? West. The mathematical geometries employed are associated Is the idea of a radio-frequency instrument to essen­ with the work of Gauss and Riemann on elliptical functions tially "electrocute" a target? and differential geometry and not the linear algebras and Not at all. There is a vast potential of utilizing such statistics of Newton and Boltzmann. In other words, while. instruments for diagnosing diseases through what is called the velocity, phase, and rotational components of several nonlinear biological spectroscopy, or optical biophysics. We waves are calculated separately, they can be integrated as a are going to have to gear up this area of science massively if single elliptical wave geometry inside the biological object. we are going to conquer AIDS and cancer, for example. That This is "frequency fine tuning" and not scalar "calorie count-

28 Science & Technology EIR June 12, 1987 ing." The general scientific principle is as follows. Electro­ wavelengths-from ten-millionths of a millimeter to several magnetic pulsed waves can generate "acoustical shock­ kilometers." He committed his institute to unraveling the waves" inside biological organisms. What is critical is that secrets of radiation phenomena in the biosphere: "Only a few the power is delivered in "pulsed" rather than continuous of the invisible radiations are known to us at present. We wave (cw) form. The right "mixture" of frequencies can have hardly begun to realize their diversity and the scrappy couple into natural physiologic frequencies and resonances. nature and inadequacy of our knowledge of the radiations The Soviets have conducted extensive experiments to deter­ which surround us and pass through us in the biosphere, and mine which "species-specific" and "tissue-specific" reso­ to understand their basic role in the processes going on around nances are most efficient. us, a role which is difficultto comprehend by minds accus­ Is there a single specific "magic frequency," so to tomed to other conceptions of the universe." speak? Vernadskii directed the State Radium Institute from its No. There is a mixture of frequencies. You can separate founding in 1926 to 1938; in 1934 he created and became someone who is truly knowledgeable about electromagnetic president of the Soviet Commission for the Study of Heavy phenomena in biological systems from a novice with one Water and oversaw the construction of a cyclotron at the simple test. If the person thinks of electromagnetic wave Radium Institute. In 1940 he became director and coordinator propagation in terms of one single frequency bathing an ob­ of the Soviet wartime crash effort to develop a Russian nu­ ject, or a linear wave radiation in a single plane, then he is a clear bomb. (V.1. Vernadskii, 1926, The Biosphere. First novice. If the person thinks in terms of generating an "ellipt­ and Second Essays, Nauchno-Teckhn. Izd., Leningrad.) ical wave" inside the target(s) he is onto the right area. The But isn't Soviet biology backward? concept is to do wave-mixing inside the biological object by The West has maintained the illusion that Soviet biology generating a series of in-phase/out-of-phase relationships at is "crude" and "unsophisticated" primarily because of the a mixture of frequencies. The entire power deposited on the Lysenko Affair. The Russians have helpedto propagate this surface area of the object or objects is then absorbed and can fairy tale, in part as a way to camouflage their actual capabil­ be focused or concentrated at one or two focal points inside ity. In areas such as the 1950s, 1960s, and 1970s technologies the target. The net effect of mixing frequencies inside the of molecular biology instrumentation, the Soviets have lagged object and moving the focal point to certain areas allows for behind the West. However, in the biotechnologies of the precision fine-tuning on specific organs or organelles of the 1990s and 21st century, this is not true. In the "hard science" body. The Soviets are the masters of wave mixing and mul­ areas of biophysics, bioelectromagnetics, and optical bio­ tiple-frequencyeffects. physics, Russian scientists have field-leading capabilities, When did the Soviets commit themselves to develop­ even if they lack certain well-known instrumentation-pro­ ing this capability of controlling living processes through duction capabilities. ''mixing'' electromagnetic radiations? What are the biological effects of RFEM? Six decades ago ! In 1926 the great Russian scientist Vla­ There are three basic types of effects: 1) thermal effects dimir I. Vernadskii returned from exile at Marie Curie's from high-energy microwaves, which are relatively the le.ast Radium Institute in Paris to take over the post of Director of efficient; 2) So-called ELF or Extremely Low-Frequency the State Radium Institute in Leningrad, which was essen­ effects which result from lower-powered radio waves at low tially created around him. Vernadskii lists as the scientists frequencies; 3) Nonlinear effects which result from geomet­ who most influenced his own outlook B. Riemann, Louis ric wave-mixing inside the biological object. A comprehen­ Pasteur, and the Curies. The Curies had intensively studied sive review exists in the public domain by the National Coun­ the work of Louis Pasteur on "molecular dissymmetry" and cil on Radiation Protection and Measurements (NCRP), is­ credit him for being instrumental in their discovery and elab­ sued on April 2, 1986. They report extensively on biological oration of radiation phenomena. In the mid- 1920s, the bril­ effects researched in the following domains: macromolecular liant success of the experimental work of Russian biophysi­ and cellular effects including cell transformations, tumor cist Gurwitsch in discovering the phenomena of "mitogenic cells, and cellular genetics; chromosomal and mutagenic ef­ radiation" no doubt had a major effect on Soviet commitment fects; carcinogenesis; effects on reproduction, growth, and to this area. development; effects on immune and hematopoieticsyst ems; How did Vernadskii view the relationship between effects on endocrine system; effects on cardiovascular func­ electromagnetic radiation and living phenomena? tions; interactions with the blood-brain barrier; interactions This is the subject of his life's work. However, there is a with the nervous system; clinical investigations; laboratory short answer to the question. In his 1926 inaugural address exposure investigations; cataractogenesis; and thermoregu­ to the Leningrad State Radium Institute later published under latory responses. the title The Biosphere. Vernadskii stated: "We are surround­ Do the Russians have the technological capability to ed and penetrated, at all times and in all places, by eternally use radio-frequency assault weapons against Western changing, combining, and opposing radiations of different Europe right now?

EIR June 12, 1987 Science & Technology 29 ONE man in this picture has called for mandatory universal AIDS testing in 1985 ... SAVE LIVES Make Him President

Weekly EIR Audio Reports Cassettes • News Analysis Reports • Exclusive Interviews Treason $250/Year In America from Aaron Burr to Averell Haniman Make checks payable to: EIR News Service, P. o. Box 17390 610 pages; published by New Benjamin Franklin House. Wa shington, D.C. 2004 1-0390 New York. Order from: Ben Franklin Booksellers. Inc . . Attn : Press 27 South King St. . Leesburg. V A 22075. $11. 95 plus shipping ($1. 50 for first book. .50 for each additional MasterCard and Visa Accepted. book). Bulk rates available.

30 Science & Technology EIR June 12, 1987 Absolutely and emphatically yes. What is a radio-frequency "chip gun"? RF transmitters can be tuned to bum out the silicon chip integrated circuits that provide the basis of the electronic Down To "brains" of all so-called modem "smart weapons." At the right frequency, the chips themselves act as miniaturized receiving antennae. Furthermore , at certain frequencies the " atmosphere is quite transparent to RF. As with other aspects The Wire? of the SOl, there is essentially what physicists call a "zero time of flight characteristic ." Moreover, there is less resis­ tance from the air with RF than with lasers and particle Call for a quote on beams. What would a "chip gun" be used for? In regular warfare , they can be used for strategic or tac­ tical purposes, either offensively or defensively. For in­ BELDEN COOPER qu�lity wire stance, they could be used to blind reconnaissance satellites INDUSTRIES and cable. or neutralize the super-sophisticated electronic battle man­ agement systems such as the E-3 Sentry AWACS and other more advanced systems. Long-range versions of "chip guns" Shielded and unshielded would be used as anti-aircraft weapons to knock out the • cable for computers computer systems of super-sophisticated F- 16 aircraft and - instrumentation and control other systems. Or, as part of the SOl, they could be used to createan entire defense zone behind a kind of "electromag­ - electrical and electrical systems netic wall." The objective would be to sweep whole regions _ plenums - fiber optics and disable the "electromagnetic brains" of any military hard­ We Go to Great Lengths ware which flew, drove, sailed, or marched into the zone. To Service Your Wire Needs. Can such weapons be used at long range? Generally speaking, the smaller the device, the shorter 5crYice15 WhatWe 'reAbout Asingle source the range. A lot of power is required to transmit over five electronics distributor stocking more than miles. Nonetheless, one should not forget that the standard 100 of components hardware, test for long-range radars is to send a signal out several light prime lines years into space and bounce it back to receive a "clean" signal test equipment, and control devices for in­ in return. Astrophysicists do routine radio-frequency probes dustrial and commercial application. into deep space. In addition to deployments of RF in regular warfare, Write or Call Today for a how would RF deployment fit into the Soviet ''spetsnaz'' Free 500 Page Catalogue! or irregular warfare commitment? One or several medium-sized trucks, with characteristic antennae built into the design of the truck, so that they are not visible, could "broadcast" to directed targets or over an entire area. A swept beam of pulses could also be transmitted from several helicopters or aircraft. Gyrotrons are rather big, but can fit in trucks or aircraft. There also exist smaller varieties of electromagnetic weapons which can be hand­ INDUSTRIAL ELECTRONICS carriedas individual anti-personnel weapons to stun, maim, or kill. 100 N. Main Have RF weapons ever been used in warfare situa­ Dept. E tions? Evansville, IN 4n11 It is well established that the Soviets bombarded the U . S. embassy in Moscow with microwaves over several years. It U.S. Wats 800-457 -3520 is believed that such devices may have been used against the Ind. Wats 800-742-3670 Chinese in the late 196Os. Otherwise, their use in other mil­ Local 812-425-7201 itary conflicts, as well as sabotage of U.S. missile launches, Fax 812-465-4069 has been hypothesized.

EIR June 12, 1987 Science & Technology 31 TIillFeature

The power of the US.A has yet to be seen by Lyndon H. LaRouche, Jr.

According to Corriere della Sera. Italy's prominent industrialist and financial spokesman Carlo De Benedetti told a Rotary Club audience in the last week of May. that the United States will be replaced by the Soviet Union as the world's dominant economic power. This typifies a view which is spreading rapidly around the world today, a dangerously incorrect view which tends to lead the world as a whole into virtual slavery under domination of Moscow's "Third Rome" world-empire. Some of the facts which Corriere cites Sr. De Benedetti as listing are, taken by themselves, true . The so-called "Reagan economic recovery" has been pure myth. The continued collapse of the U. S. agriculture, industry, energy production, and foreign trade balances, especially since the Reagan blunders of 1982, have brought the United States to the brink of the biggest internationalfinancial collapse in history . So far, it is seen as unlikely that the United States will tolerate anything at the June 8-10 Venice meeting of governmentswhich might contribute to solving this financialcatastrophe . Sr. De Benedetti is an outstanding international figure, of great personal inftu­ ence and resources. His views may be better infonned than those of many, but the views Corriere attributes to him are becoming commonplace around the world. That view is, that President Reagan's continuation of what are essentially the same economic and monetary policies introduced under President Jimmy Carter is re­ ducing the United States rapidly to the status of a second-rate world power, and potentially a third-rate one. Sr. De Benedetti's characterization of the current trends in the economic situation, is predominantly a sound one. It is the strategic perspective he projects, which is dangerously in error. I cite his views as typical of those who base such a mistaken strategic estimate upon partial facts which are correct in themselves. The approximate accuracy of his financial assessment of the current situation has the importance of showing more clearly that the dangerous errors of his opinion arise from something aside from those financial analyses. Sr. De Benedetti is gUilty of one of the most

32 Feature EIR June 12, 1987 sea'-ch�anJ�ecurrentl y under ,way in politics could sweep LaRouche into the White House. and overcom the crisis which Sr. De Benedetti (inset)foresees. LaRouche is shown here at the National Press Club in April 1986,following the victory ofi two of his associates in the lllinois Democratic primary. elementary kinds of blunders in simple logic, a "fallacy of blind follies of statesmen, bankers, d political parties, which composition. " brought about an unnecessary Grea Depression, the rise of Sr. De Benedetti, and many tending to share his view, . fascism, and the inevitability of Wo Id War II. commit the elementary blunder of ignoring the effects of a Europe must view its leaders of today as like characters "financial Pearl Harbor" shock upon the internal political in a tragedy upon a stage, and see those leaders, with few processes of the U.S.A.-and other relevant nations. exceptions, as repeating the same inds of tragic folly their They fail to reckon with the fact that the mounting of a grandfathers and great-grandfathers committed during the popular hatred against current policies of OECD nations, firsthalf of this century. must naturally prompt governments to resume traditional, Among all leading U . S. public ygures, I am outstanding more or less "Hamiltonian" policies of mobilization of vast in my impassioned desire for the so�ereignties of all nations, amounts of new government-generated credit and investment the developing ones, Japan, and WesternEurope , most em­ tax-incentives, to resume accelerating rates of scientific and phatically. I am perhaps the only leatlingU.S. candidate who technological progress in expanding the scale and increasing understands WesternEurope and the aspirations of develop­ the productivity of OECD and developing nations. ing nations. Yet, it is not the imag i of that Western Europe . The danger is, that the spread of misguided strategic which I love which I see stalking from Stockholm to Rome estimates, such as those of Sr. De Benedetti, will prompt the to Madrid today. governmentsof OECD nations to make the kinds of preemp­ Among so-called leaders, I see, with precious few excep­ tive concessions to Moscow, which would confront the next tions, the stink of cowards dying plany times before their President of the United States with a more or less irreversible death. I see a Hungarian whore, a orned with the election­ process of consolidation of Soviet global strategic suprema­ campaign symbols of her goddess, that Whore of Babylon, cy. Ishtar, featured by news-media as typifying the character of The so-called "zero option," excessive economic support a national election-campaign in my tielovedItaly. I see among for Marshal Nikolai Ogarkov's perestroika restructuring of all but a few outstanding figures in each nation, leaders in­ the Russian empire for launching of general war, and the flamed by a coward's passion to destroy WesternEuropean growing danger of "Finlandization" of Central Europe, are civilization in an abominable act of existentialist mass sui­ typical of the foolish concessions which might, unnecessar­ cide. ily, lead quickly to Moscow's world-rule for a long time to Unlike these leading cowards, I see a Westerncivil ization come. soon rising to its greatest triumphs since the Golden Renais­ , The danger is, that exaggerated pessimism, such as that sance. I say to governments, peoples, and leaders of Western expressed by Sr. De Benedetti, might lead nations to repeat civilization: "Stop playing like do , med characters in some the kinds of errors which Europe committed during the 20 Aeschylean tragedy ! See that the danger to our nations is that years following World War I. Europe, in particular, should fault which lies in yourselves. Grasp the punctum saliens! look back to the 1920s and 1930s, and see again the stubborn Resume those values, typified by the spirit of Nicolaus of

EJR June 12, 1987 Feature 33 Cusa, Leonardo da Vinci, Louis XI, Prussia's GreatElector, world will move rapidly into the greatest scientific, techno­ and the other great authors of our civilization's past triumphs. logical, and economic growth in the history of mankind . Cease your existentialist's orgy of self-pity, and Neronic This is no blind braggadocio. The political instrume' pleasure-seekingof the moment! See what magnificentthings and scientific means to bring that about are immediately at lie within the reach of our hands to build! Act accordingly, hand. The opportunities are within our immediate reach to­ before it is too late to do so!" day. The problem is, that the leaders of institutions, so far, I intend to become the next Presidentof the United States. have lacked the knowledge and political will to seize these Unless I were to be eliminated physically, probablyon Mos­ magnificentopport unities. cow's orders , very soon, it is probable, if not certain, that the The key problem which prevents European and devel­ crises now erupting will have brought about by early 1988 oping nations' leaders of vision from seizing such opportun­ that sea-change in political moods which would sweep me ities, is that the position of the U.S.A. and its government is into the White House in January 1989. Under those condi­ still the dominant one, and that will remain inescapably the tions-presuming you had not already given irreversible global reality for two decades or more to come, unless Mos­ concessions to Moscow before then-the financial disaster cow's world domination were established during the medi­ which Sr. De Benedetti foresees will be conquered, and the um-term period immediately ahead. For these reasons, who occupies the office of President of the United States deter­ mines the fate of the world-for better, or for worse, and no wishful denial of that fact can make the fact itself disappear.

Sixtylour-year-old economist Lyndon LaRouche is the Mastering the economic catastrophe leadingfigureof a pro-U.S. Constitution cu"ent with­ in the U.S. Democratic Party, and is a candidate fo r Although recent economic and monetary policy-trends have been mass-murderously monstrous in their effects, the the party's 1988 U.S. presidential nomination. Ac­ cording to U.S. published polls, he has the second­ cause of the problem can be removed with a simple signature, highest popular recognition, fo llowing Rev. Jesse on the appropriate piece of paper, by the President of the Jackson, among the Democratic Party'scurrent list of United States. The policies which are ruining us, and the candidates. rotten financial system now collapsing upon our heads, can both be eliminated by a single act of the U.S. government­ Since late 1984, his enemies, prodded by the Soviet government's offi cials and leading Soviet government since, if the U. S. government acts in the proper way, the rest news media, have fo reseen his potential fo r winning of most of the world will follow quickly. From the standpoint of the internal situation of the United the 1988 Democratic presidential nomination as so significant, that an unprecedented series of news-me­ States, our economic and financial problems are no greater dia and legal harassments has been conducted against than those faced by President George Washington and Trea­ LaRouche and hisfr iends, not only inside the U.S., but sury Secretary Alexander Hamilton in 1789. Within the course internationally. of the administrations of President George Washington, Sec­ Immediately fo llowing President Reagan's March retary Hamilton's reforms of national credit, banking, and economic policy had transformed the U.S.A. into the most 23, 1983 announcement of the U.S. Strategic Defense Initiative, LaRouche was designated by the highest potent economy on earth, per capita, the combined output of levels of the Soviet government as the single personal­ U.S. farms and industries per capita rivaling the productivity ityMoscow hates andfears most passionately, world­ of Europe's leading industrial power of that period, France. wide, today.The fe rocityof Soviet attackson the Dem­ In 1938, the U.S. economy was still in the ruins of the ocratic candidate fa r exceeds that directed against any 1930s Great Depression. With an economic mobilization single personality in recent decades, and includes the begun during 1940, within approximately three years, the strongest pressures on both Western governmentsand United States had achieved the greatest growth in economic others fo r the elimination of LaRouche in one way or power since the 186Os, a rate of growth never matched since. another. In 1961-63, under President John F. Kennedy, a United States According to the Soviet government, it bases this plunged into a deep recession by the failed economic policies hatred chiefly on its belief that the Democratic candi­ of the Eisenhower administration, took the Moon mission off date is not only a leading sponsor, but a leading de­ the drawing boards of the Eisenhower administration, and, signer of the new U.S. strategic doctrine. by aid of investment tax-credit incentives, achieved high The statement published here was released by the rates of general economic growth and technological progress, until the Johnson administration began to destroy this growth candidate on May 31. It heralds a fu ll treatment, in EIR's next issue, of the historical issues posed in the during 1966-67. Since 1966, when the U.S. followed Britain's Prime 1988 U.S. presidential campaign. Minister Harold Wilson in leading Western civilization down the road to chaos, the OECD nations have been led by the

34 Feature EIR June 12, 1987 United States through a succession of ever-worse policy­ lem of financialins olvency is fully under control. changes in monetary and economic affairs . Man, in the form In the meantime, rather than permitting a chaotic finan­ of governments led by the United States, created the present cial collapse to occur, which would collapse agriculture, disasters, and man, in the form of governments led by the industry, and trade past the breaking-point, we must freeze U. S. as primus inter pares. must correct these terrible errors , and reorganize the insolvent financial assets. We shall let the and lead the way out of this mess, once again. stock exchanges collapse to the lowest levels they might The power to create a currency, to establish banking reach, but we shall employ the regulatory powers of sover­ systems, to regulate the quantities and prices of new credit eign governments, to hold the essential local and major bank­ created, to shape taxation policies to foster or destroy pro­ ing institutions as solid as a rock against the wild storms in ductive employment in agriculture, infrastructure, and in­ the markets for resale of negotiable securities-it is the new dustry, lies in the hands of sovereign nations' governments, issues of industrial securities which must be solid as a rock, and nowhere else. Sovereign governmentshave the power to together with bond issues of agencies of governmeqt and regulate and promote international and domestic trade, to set utilities for purposes of infrastructural development. tariffs , and to join with other governments in destroying or We shall allow the stubborn speculators, the gamblers, creating-in an instant-entire international monetary sys­ much freedom to dash their own financial brains out in sec­ tems. ondary speCUlative markets; but, into the realm of financing The U.S. government, employing such powers awarded new economic growth, we shall not allow their scheming to to the President and Congress by our federal Constitution, intrude. has the power to create $500 billion, or $1 trillion, new credit The measures I have just brieflydescrib ed, are known to today-virtually on a moment's notice. That governmenthas many leading bankers and persons similarly situated. I have the power to order banks not to collapse, no matter how great reason to believe that Sr. De Benedetti understands these the difficultiesof those financial institutions. The U.S. gov­ more or less as well as key Swiss and London bankers, or ernment can set prime interest-rates, on selected categories leading circles within the Club of Paris. At present, the mea­ of borrowing, at between 1% and 2% per annum, ensuring a sures I have indicated are the only available alternatives to preferential flow of newly-created credit into: agriculture; chaos. industrial growth; agro-industrial exports; and improvement The problem is not that many in Sr. De Benedetti's strata of such basic economic infrastructure as water-management, do not know these alternatives, and do not know these alter­ improvements of forests and lands, production and distribu­ natives would be successful ones. The problem is that they, tion of energy, improvements of railways, highways, ports, so far, choose to ride with the collapsing old financial order, sanitation, educational and health facilities. rather than build the new one. Sr. De Benedetti's gloomy By legislating very advantageous investment tax-credit forecast would be an accurate one, if it could be assumed that incentives, for investment in technologically progressive, the world's governmentsand leading bankers would combine capital-intensive work-places for industrial and agricultural forces to defend the existing financial order to the bitter end. operatives, the growth of national wealth and per capita Some of them would even prefer to risk Soviet slavery or household incomes, can accelerate to levels of between 3% nuclear Armageddon, rather than give up the presently col­ and 5% growth per annum, rather easily. lapsing financial order. Whether Sr. De Benedetti would go To save essential banking institutions, and to balance that far, I do not know; I do know that that sort of global national governmental budgets, all that is necessary is to holocaust is the implied consequence of the view which Car­ increase the levels of quality employment in high-technology riere della Sera has reported. work-places sufficiently. Some bad financial paper must be The possibility of recovery from this disaster lies, there­ written off the books entirely. Other, poor financial paper, fore , in the hands of some U. S. President who has the knowl­ must be heavily discounted. Interest earnings on all non­ edge and courage to take on the task of a "Hamiltonian" performing financial paper must be ended. Nonetheless, we reorganization of the Westernworld 's financial system. Un­ shall save the core of personal and business deposits, and less such a President is elected, or perhaps President Reagan shall maintain the functioning, and ultimately independent awakened to undertake this dramatic change in his own pol­ solvency of essential banking institutions. icies, Western civilization's prospects then-but only then­ The financial reorganization is elementary . The problem become as gloomy as Sr. De Benedetti has forecast this past today, is that per capita physical output and consumption is week. collapsing throughout the IMF system as a whole, whereas the indebtedness per capita is skyrocketing. This dual picture The greatest technological boom in history is the classical "John Law financialbubble ." We must arrest The irony of the present international economic disaster, the growth of per capita indebtedness, while expanding the is that during the past 40 years, the world has been piling up per capita physical output and income at an accelerating rate. the crucial scientificand technological breakthroughs which Once the per capita physical output has increased by a margin could unleash the greatest growth in productivity in the ex­ of approximately $1 trillion annually, worldwide, the prob- istence of mankind. We have presently in our hands the

EIR June 12, 1987 Feature 35 Mastering the • econolDlc catastrophe: three precedents

From the standpoint of the internal situation of the United States, our economic andfinancial problems are no greater than those fa ced by President George Washington and TreasurySecretary Alexander Hamilton in 1789. Within the course of the administrations of President George Washington, Secretary Hamilton's reforms of national credit, banking, and economic policy had transformed the U.S.A. into the most potent economy on earth, per capita, the combined output of u.s. fa rms and industries per capita rivaling the productivity of Europe's leading industrial power of that period, France. (In the picture: Washington after the 1783 victoryat Yorktown, with his aides, the Marquis de Lafay ette, and Alexander Hamilton . Painting by Charles Wilson Peale at the State House in Annapolis .)

crude, firstforms ofnew technologies which can increase the developed an adequate advancetl industrial base designed to production and consumption of the world's population by produce these scientific prototypes on a large scale, Italy about 20 times, percapita , over the coming 50 years. would have become rapidly one of the leading technological Since Sr. De Benedetti is Italian, and since Olivetti and powers of the world. l FIAT are near the center of such potentials in Italy today, let For example, Italy produced during the early 1930s, the us emphasize a small fraction of Italy's labor-force, perhaps fastest propeller-driven plane eyer flown then or since-a about 50,000 persons, which is situated within the main­ remarkable design with built-in appreciation of transonic and stream of these new scientificbreakthroughs in such areas as supersonic principles in the construction of its propeller sys­ aerospace systems and superconductortechnolo gies. tem. Today, some of the aerospace designs coming out of In the footsteps of Leonardo da Vinci, there was within Italy, are among the most brilliant available. Yet, Italy man­ Italy, around such centers as Naples, Milan, and Turin, a ufactured only a few prototypes, or a few dozen of these very advanced, if small scientificcapability which has distin­ designs in the past, never developing the quality and scale of guished itself in such matters as applications of principles of industrial base needed to transform the economy at large. hydrodynamics to electrodynamics and aerospace. This in­ Today, again, Italy has such possibilities. These hang by cluded the 18th-century collaborators of Benjamin Franklin, a fragile economic thread , much of this depending upon a circles tied to the Oratorians and to Carnot's and Monge's delicate balance of machine-t I vendors to firms such as Ecole Polytechnique , and a circle including Betti and Beltra­ FIAT. mi closely tied to BernhardRiemann and Gauss's Goettingen Today, a similar, if somewhat better picture exists in the University. As the history of ltaly's leading part in aeronau­ advanced sectors of research and industry in the Federal tics during the 1920s and early 1930s shows, had Italy ever Republic of Germany. Britain is on the edge of the abyss

36 Feature EIR June 12, 1987 In J938, the U.S. economy was still in the ruins of the J930s Great Depression. With an economic mobilizatioh begun during J940, within approximately three years, the United States had achieved t e greatest growth in economic power since the 1860s, a rate of growth never matched since. (In the picture: President Franklin D. Roosevelt's annual message to Congress in J94J: "I also ask this Congress fo r authori7.and fo r fu nds sufficient to manufa cture additIOnal munitions and war supplies of many kinds, to be turned over to those nations which a e now in actual war with aggressor nations.")

In J96J-63 , under Bresident John F. Kennedy, a United States plunged into a deep recession by the fa iied economic policies of the Eisenhower administration, took the Moon mission off the drawing boards of the Eisenhower administration, and, by aid of investment tax-credit incentives, achieved high rates of general economic growth and technological progTiess, until the Johnson administration began to destroy this growth during J966-67. (J1 the picture: President Kennedy, Vice President Johnson, and astronaut John Gle n inspect the Friendship 7 in J963.)

with its potentials. France is a bit better situated, but the most It is a matter ofelement ary calculation to show, that such important possibilities have also a relatively fragile exis­ technological advances, over the coming 40 to 50 years, tence. Japan is best situated, and the U.S. next. mean an increase of the average income and productive pow­ In science, we are simultaneously at a different sort of ers of labor probably 20 times the lev�ls possible with today's edge. With advances in superconductors, we can increase the technologies in use. All so-called limits to natural resources efficiencyof energetic processes such as controlled plasmas vanish, with these presently emergi g technologies. and electrodynamic pulses by factors of between 100 and In particular, these technologies mean that mankind can 1,000 . We have in sight the means to progress from giant establish largely self-sustaining colo�ies on Mars, beginning installations producing a gigawatt of energy-output, at 40 ,000 about A.D. 2027. These colonies will contain populations to 70,000 kw per square meter, to smaller units producing about the size of a medium-sized cit on �arth today, and the terawatts of output at energy-densities 10 or more times as technologies now being developed will permit flights be­ great. tween Earth and Mars as shortas two days. The task of statesmen is to comJj)ine the necessary mea- With related applications of Riemannian approaches to I hydroelectrodynamics, we are at the beginning of the world's sures of sweeping financial reorgan·zation with mobilizing greatest scientific breakthroughs, in optical biophysics. We full-scale development and use of the new technologies. If I are moving toward digital computer modules which will be do become President of the United States in 1989-if cow­ able to perform parallel processing functions in the range of ards do not give the future to Moscow during the coming 16 teraflops per second. We are moving toward optical-analogi months-the United States will lead the world in the greatest digital hybrid types of computers which will perform explicit era of economic progress in the his ory of mankind. Then, solutions to nonlinear functions no digital computer could during two generations, we shall no only change the world, solve. but begin to change the Solar System.

EIR June 12, 1987 Feature 37 Ogarkov uses Cessna shock to shake up defense ministry

by Konstantin George

On Saturday, May 30, the Soviet Politburo held an extraor­ headed the Air Defense Forces, one of the fiveservices of the dinary meeting, as TASS reported, to "hear a reportfrom the Soviet military, since 1978, was the only one of the five defense ministry on the violation of Soviet airspace." The whose appointment predated late 1984. That was when Mar­ Politburo meeting, using 19-year-old Matthias Rust's May shal Ogarkov directed the reorganization of the Soviet Armed 28 Cessna flightfrom Helsinki to Red Square as the pretext, Forces into a structure of wartime High Commands, and forced the resignation of the nearly 76-year-old defense min­ subordinate Theater of War commands. ister, Marshal Sergei Sokolov, and the dismissal of Soviet Moscow's use of the affair should not, however, lead one Air Defense Forces commander-in-chief, 64-year-old Air to conclude that the affair itself was staged by Moscow. As Marshal Aleksandr Koldunov. one European-based watcher of Soviet affairs stressed to That the incident was only a pretext is clear. When the EIR, the Russians would "never arrange anything that in­ Cessna landed in Red Square, Marshal Sokolov was not even volves such a tremendous loss of face to themselves, or do in the U.S.S.R., but in East Berlin, sitting next to Mikhail anything to make themselves into the laughingstock of the Gorbachov at the Warsaw Pactsummit . Either Sokolov knew world." nothing about what happened, or if he did, his "wrong deci­ sion" was taken in consultation and agreement with Comrade A defense minister in the Ogarkov mold Gorbachov . So, if Sokolov were "guilty" of anything, Gor­ The new defense minister named by the Politburo, the bachov was equally guilty, and should also have submitted 64-year-old Army General Dmitri Timofeyevich Yazov, is his resignation to the Politburo! in the mold of Ogarkov, whose guiding hand is evident The sensational incident, which created global headlines throughout Yazov's career. and shock waves inside the Soviet Union, has ushered in a Under Ogarkov's 1984 reorganization, only the best of selective purge of the Soviet military leadership which fits Soviet generals received important posts. The High Com­ Soviet pre-war requirements. The intent is to restructure the mand Far East was created in March 1979, as a precursor to Soviet military leadership, as well as command and control, the wholesale reorganization of 1984, when an overall war­ to conform to the dictates of Marshal Nikolai Ogarkov, Rus­ time High Command was established, together with High sia's wartime commander in chief, deputy chairman of the Command West, High Command South, and High Com­ National Defense Council, and architect of the Soviet war mand Southwest. The High Command Far East's new boss plan and the current perestroika(restructuring) sweeping the was Army General Ivan Moiseyevich Tretyak, a World War Soviet economy and institutions. II combat hero. Yazov, who himself joined the Red Army in The victims thus far, Sokolov and Koldunov, were due 1941 and saw over three years of combat in the war, was to be removed in any case. With the Cessna affair, the time­ transferred in mid- 1984 to serve under Tretyak as command­ table was moved up. Marshal Sokolov, who became defense er of the all-important Far East Military District. minister in December 1984 after the death of Dmitri U stinov , The Soviet Union contains 16 military districts, and four was always seen as a transitional figure. Koldunov, who "groups offorces" exist, as the Soviet troops stationed in East

38 International EIR June 12, 1987 Germany and Eastern Europe are called. The mainland part minister slots (two yet to be named: the successors to Kol­ of the Far East Military District faces Manchuria, China, dunov and Yazov), including all five heads of military ser­ while Sakhalin Island and the Kurile Islands are but a stone's vices; in one of the three and Yazov), including all five heads throw from the northernmost Japanese island of Hokkaido. of military services; in one of the three first deputy defense This military district has wartime responsibilities against Ja­ minister spots, and now, there is a newdefense minister. pan and/or China. Only the Group of Soviet Forces in Ger­ We will focus on the changes to date in the defense many (i.e., East Germany) disposes of more combat divi­ ministry. The appointees who come from the Ground Forces, sions, tanks, and combat aircraft than the Far East Military five of the eight new deputy defense ministers (now four District. given Yazov's promotion), the firstdeputy defense minister, The careers of Yazov and Tretyak have been closely and Defense Minister Yazov all share a common background: intertwined during the past 11 years , a time-frame beginning years of front-line combat experiellce as NCOs and junior with Marshal Ogarkov's last months as firstdeputy chief of officers in World War II. All have recently held important staffof the Soviet Armed Forces in 1976, before his rise to fieldcommand positions, such as commander in chief of the chief of the general staff in January 1977. As we will now Group of Soviet Forces in Germany; or commander in chief see, Ogarkov had handpicked Yazov by no later than Febru­ of Ogarkov' s wartime high commands. Deputy defense min­ ary 1976 as a Soviet general destined for high-level respon­ isters belonging to this category include: sibilities. Army General Vladimir Govorov. 1980-1984, com­ In February 1976, major Soviet military maneuvers under mander in chief of the High Command Far East: since late conditions of winter mountain warfare , were held in the Tran­ 1984, a deputy defense minister; since July 1986, deputy scaucasus Military District, embracing Georgia, Armenia, defense minister in charge of civil defense. and Azerbaijan. The exercises were reviewed on the scene Army General Yuri Maksimov. Late 1984-July 1985, by then-Defense Minister Andrei Grechko, and then-First commander in chief of the wartime High Command South; Deputy Chief of the General Staff Nikolai Ogarkov. EIR since July 1985, deputy defense minister and commander in reported in its July 1985 "Global Showdown" special report, chief of the Strategic Rocket Forces. in a sub-section titled, "The Blitzkrieg Commanders-A Army General Ivan Tretyak. Late 1984-July 1986, Profile," how Ogarkov, impressed by the brilliance exhibited commander in chief of the High Command Far East; since in the maneuvers by Motorized Rifle Division commander July 1986, deputy defense minister, officially in charge of Boris Pyankov, selected Pyankov for immediate posting to the Main Inspectorate, but, among otherthin gs, has a special the General Staff Academy. Later, Pyankov distinguished role at the defense ministry for Soviet operations in Afghan­ himself in Afghanistan, and in 1983 was named commander istan, South Asia, and the Middle East. of the crack, spearhead Third Shock Army at Magdeburg in Both Army General Yevgeni Ivanovsky, commander East Germany. in chief of the Ground Forces since January 1985, and Army In the February 1976 Transcaucasus maneuvers, the bril­ General Pyotr Lushev, first deputy defense minister since liance of another commanding officercaught the eye of Ogar­ July 1986, had served as commander in chief of the Groupof kov, then General-Major Dmitri Yazov, who commanded an Soviet Forces in Germany (GSFG). Army during the maneuvers. Shortly thereafter, in 1976, Since mid-1986, the signs of a coming transformation of Yazov was promoted to general-lieutenant, and appointed the defense ministry were evident in a resurfacing of the first deputy commander of the Far East Military District, Tretyak-Yazov combination. In July 1986, Tretyak was serving under the district's new commander, Tretyak. As we transferredto Moscow to become a deputy defense minister, saw earlier, Ogarkov, in 1984, was to choose the same Tre­ and in February 1987, Yazov was also called from the Far tyak -Yazov combination as the key combat forces' com­ East, to become deputy defense minister in charge of person­ manders for the Far East. nel. Technically speaking, either one would have served Ogarkov's purpose as defense minister, but here, racial con­ Command changes under Gorbachov siderations entered the picture. Ivan; Moiseyevich Tretyak, a The process of purging the Soviet military by forced Ukrainian with some Jewish ancestry, could never become retirement, to reorganize it in conformity with the dictates of defense minister in the Russian-dominated Soviet empire. the Ogarkov War Plan, began in late 1984-early 1985, when One can add here that there has been a singularpattern , the Gorbachov succession was assured. The scope of the since mid-1986, of transferring officers of armygeneral rank personnel changes is staggering. The dismissals of Sokolov from fieldcommands under the High Command Far East, to and Koldunov, are but the final pre-war phase of command high posts in the defense ministry. Besides the cases of Tre­ changes and reorganization of command and control. tyak and Yazov, recently, the commander of the Trans-baikal From late 1984 to the present, changes at the commander Military District, Stanislav Postnilov, who was promoted level have occurred in 13 of the 20 military districts and to army general on Nov. 4, 1986, was brought to Moscow groups of forces; in all four Soviet fleets, the Northern, Bal­ and named first deputy commander in chief of the Soviet tic, Black Sea, and Pacific; in 8 of the 11 deputy defense Ground Forces.

EIR June 12, 1987 International 39 Who is Dmitri December 1980 to mid- 1984: Commander of the Cen­ tral Asian Military District. Timofeyevich Yaz ov? Mid- 1984 to early 1987: Commander of the Far East Military District. Born:Nov . 8, 1923 February 1987-May 29, 1�87: deputy defense minis­ Entered the Soviet military after the Nazi invasion in ter in charge of personnel . 1941. Saw over three years of combat in World War II as May 30, 1987: Named defense minister. a platoon and company commander. A half-page laudatory featlue on Yazov's battle-com­ 1956: Graduated from the Frunze Military Academy. mand abilities printed in the military daily KrasnayaZvezda 1967: Graduated from the General Staff Academy. (Red Star), on April 13, 1985, described him: 1967-72: Commanded a regiment, and later a motor- "Army General Yazov can still recite by heart many ized rifledivisi on, in the Leningrad Military District. articles of the regulations, especiallythose concerningthe 1972-76: Commanded an army in the Transcaucasus duties of a company commander. Perhaps they were re­ Military District. membered so well, because they were not picked up on 1976-79: First deputy commander of the Far East Mil­ the fly,but suffered and assimilated in the trenches, in that itary District. time that smelled of gunpowder, when carrying out or 1979-80: Commander of the Central Groupof Forces, failing to carry out a regulation meant victory or defeat, the Soviet armed forces in Czechoslovakia. life or death."

Command and control reorganization Estonia is part of the Baltic Military District, and the Russian What's on the agenda now? Some of the answers are territory bordering it is part of the Leningrad Military Dis­ provided by the May 30 extraordinary Politburo meeting. As trict. In the 1981 reorganization of the Soviet Air Defense TASS reported that day, "The Politburoadopted a resolution Forces, the Air Defense Forces of the military districts of the to strengthen the leadership of the defense ministry," and, Western U.S.S.R. (including the Baltic and Leningrad Mil­ "underlined anew, the cardinal significance of the task of itary Districts) were removed from the Air Defense Forces decisively raising the level of combat readiness and discipline and reassigned to the military district commands. in the Armed Forces [and] ...of leading the troops in a Here we come to the interesting command and control qualifiedmanner ." questions. We know that Soviet radar picked up the Cessna In short, there will be quite a shake-up occurring in the crossing the Estonian coast. We can assume here that the Soviet defense ministry . information was promptlytransmitted to Baltic MilitaryDis­ There will also be quite a shake-up in the Soviet Air trict headquarters. But, did the Baltic Military District HQ Defense Forces. The Politburo denounced the "unpardonable then inform the Leningrad Military District HQ, and/orthe carelessness and indecisiveness" shown by the Air Defense Air Defense Command in Moscow? If so, what was the time Forces, citing the "lack of military deployments to protect lag? While the Cessna was "hugging" the Military District the country's air space," and a "lack of vigilance and disci­ boundary, how good was the coordination between the Baltic pline." The Politburo declared that the Soviet Armed Forces and Leningrad HQs, and between both and Moscow? must always be in a position to repulse "any type of attack Once the Cessna made it safely past the Baltic and Len­ upon the sovereignty of the Soviet state ." It announced that ingrad district hurdles, given the lack of Soviet low-altitude Soviet state prosecutors had begun an investigation of all the radar inland until the general area around Moscow, how long circumstances surrounding the "violation of Soviet air space," was the plane lost to Soviet observation and tracking? How including the "conduct by those persons responsible in this did the defense ministry function during this time-frame? situation. " Many, many more questions like this could be posed. What is clear is that "snafus"were exhibited in the chain The intriguing flight route of the Cessna of command. What is equally clear is that Westernelectronic The Cessna's flight pattern provides some clues to the monitoring facilities now have a rich harvest of intercepted investigation and potential changes in command and control. Soviet military command communications to siftthrough and The young Hamburg pilot Rust entered Soviet airspace over analyze. the Estonian coast, close to the Estonian border with the And, we can certainlyexpect a lot more changes in Russia Russian Republic, and for the firstleg of the flight overland, as the Ogarkov's perestroika evolves, with ever-increasing more or less "hugged" the Estonian-Russian republic border. momentum.

40 International EIR June 12, 1987 themselves as "partners for security," he said. Bonn On the other hand, the Kohl decision has whipped up the "Moscow Faction" in the CDU to new cries of "betrayal l" and new demands for an accommodation with the Soviet Union. Bernhard Friedmann, the CDU parliamentarian who is a top advocate of the reunification and neutralization of Kohl capitulates, Gennany, charged at the session of the party's Bonn parlia­ mentary group on June 2, that all ofthe proposed zero-option endorses zero option agreements mean the sell-out of Gennany by the United States, and that hence the Bonn government should adopt "a course of Gennan interests first ." by SusanWe lsh Voices of opposition West Gennan Chancellor Helmut Kohl on June I ended The only consistent opposition to the zero-option deal has months of vacillation, and agreed to accept a U.S.-Soviet come from the Patriots for Gennanyparty, whose chainnan, "double-zero option" agreement, eliminating from Europe Helga Zepp-LaRouche, campaigned against it during recent nuclear missiles with a range greater than 300 miles. The state elections in Rhineland-Palatinate. Franz-Josef Strauss, decision, which was approved on June 4 by the Bonn parlia­ chainnan of the Christian Social Union, the Bavarian coun­ ment, was the result of heavy-handed pressure by both the terpart of Kohl's CDU, has occasionally sounded sober notes Soviet Union and the U.S. State Department, including a of warning-:-interspersed with hopeful remarks about Gor­ high-profile lobbying effort on the part of U . S. Ambassador bachov's alleged glasnost (openness). Following Kohl's ca­ Richard Burt. As State Department spokesman Charles Red­ pitulation, Strauss warned, "The whole thing naturally means man told journalists: "If we interpret the reports that our a decoupling of America from Europe." Referring to those ambassador to Bonn, Richard Burt,is sending us, in the right who supported the government decision with reluctance, he way, the broad majority of the West Gennan population is said, "I belong to the 'regretably' people." for speedy talks on the proposals made by Gorbachov. . . . Within the Gennan military, there exists an understand­ After all, only a small minority has expressed concern about ing that the double-zero option will leave Europe more vul­ the double-zero option." nerable to annihilation, and will make war more likely, not Indeed, it was more than a "small minority" that had less. The inspector-general of the Gennan Anned Forces, reservations about the withdrawal of U.S. nuclear missiles Adm. Dieter Wellershoff, addressed more than 450 generals, from Europe , leaving the continent vulnerable before vastly admirals, and senior Anny officers in the city of Oldenburg superior Warsaw Pact conventional forces. But opposition to June 3, explaining the fraud of Gorbachov's alleged desire the superpower deal was stifled, as the Greens and the terror­ for peace. "The final document of the recent Warsaw Pact ists took to the streets, rioting "in protest against the war­ summit has not changed a jot in Soviet military theory," he mongers ," and the media hastened to blame electoral defeats said. The Soviet Union's armed forces follow the same ag­ for Kohl's Christian Democratic Union (CDU) on the party's gressive principles as ever: failure to endorse the disarmament plan. Kohl's coalition • War, including nuclear war, remains the focus of So­ partner, the Free Democratic Party, blackmailed the CDU viet strategic policy, and armaments are designed for that; with the threat of allying with the opposition Social Demo­ • Soviet military strategy is based on offensive combat crats, should the government failto endorse the zero option. operations, with the aim of carrying and winning the war on Some sources in the CDU believe that the turning point the enemy's own territory; in the debate came when the British government announced • A denuclearized Europe would make it a much easier on May 14 that it was supporting the "double-zero" proposal. prey for the Soviet military machine, given the dispropor­ Now, of the major European powers, only France is opposing tionate conventional might of the Warsaw Pact; Gorbachov's "peace" plan. • The Soviet armaments program for conventional In West Gennany, the official line is appeasementof the weapons has not slowed down, but has even been accelerat­ superpoweracross the eastern border. Echoing the propagan­ ed, and the Warsaw Pact has secured all its options for mili­ da of the Social Democrats and the Greens, President Richard tary offensive in all categories of weaponry . von Weizsacker, who is planning to meet Gorbachov in Mos­ "There is no such thing as a non-nuclear defense of Eu­ cow on July 6, said in his keynote address to the Anny rope, without the troops and nuclear umbrella of the United Commanders Congress on June 2, that the Gennan armed States," warned Wellershoff. "The denuclearization of Eu­ forces should have a more "defensive" outlook, rather than rope will rather increase the threat of war." an "offensive fixationon the other side as an enemy." In the Unfortunately, the U.S. administration itself has appar­ age of nuclear weapons, East and West should rather see ently "forgotten" this basic strategic reality.

EIR June 1 2, 1987 International 41 ' The 'Repuhlikaner' Party Moscow s new fifth column in We st Gennany by RainerApel

A new right-wing-radical party, the "Republikaner" (REP) Schonhuber, was attractive for members of the neo-Nazi has been boosted by the media in West Germany as the "new National Democratic Party (NPD, founded in 1964). One of conservativechallenge tothe politicalestablishment in Bonn. " the members of the NPD's inner core , Harald Neubauer, What is this party, whose chairman, Franz SchOnhuber, joined the REP and promptly became general-secretary and said on May 23, 1987, at a political rally in West Berlin: press spokesman. He stands for the national-neutralist wing "The key to the German Question lies in Moscow" -and of the NPD, which is anti-Westernbut ready to cut a strategic called for reunification of the two German states under a deal on Germany with the Soviets. Neubauer once was among status of military and political neutrality? the editors of the neo-Nazi weekly, Nationalzeitung, pub­ SchOnhuber said that the Germans would be "fair partners lished by Dr. Gerhard Frey. The newspaper, sold in about of the Americans, but only as long as this goes along with 100,000 copies, is listed in the Bonn government's annual Germaninter ests. " This language resembles the policy which securityreport as the leading Neo-Nazi mouthpiece. once led to the pact of August 1939 between Hitler and Stalin, At the end of 1985, the REP was said to already have which was directedagainst the three Western powers, France, about3, 000 members, mostly in the southern state of Bavar­ England, and United States. The underlying ideology of this ia, preparing for the October 1986 state elections there. For pact was what is known in the history of 20th century German a party with such unveiled neo-Nazi connections, this rapid politicsas "National Bolshevism." growth was not possible without benevolence from a higher The REP was established at the end of 1983, as an oper­ level. ation to revive exactly this ideology of National Bolshevism It has been said that SchOnhuber and Neubauer have in German politics within the framework of imminent U.S. "sensitive files" on most of the conservative politicians in military disengagement fromEurope . In 1982, Franz Schon­ West Germany, provingthat many of them "were Nazis, but huber, ex-journalist at Bavarian state radio, published his always covered that up." book, Ich war dabei (I Was One of Them), praising the It is most noteworthy, indeed, that the German Christian alleged spirit of fairness and European comradeship among Democrats have never put real energy into the fight against the members of the Waffen-SS. Schonhuber served that or­ the REP. Was it the REP's "secret files," that blackmailed ganization in France, as an instructor for new Waffen-SS the German Christian Democrats into tolerating the rise of recruits fromthe occupied territories in the West. SchOnhuber's party? And-was there also an unsavory As soon as SchOnhuber's book was out at the bookstores, gentlemen's agreement, to the effect that the Christian Dem­ none other than the Swiss-based financierof Nazi networks ocrats would not fight the REP, as long as the REP went in Europe, banker Fran�ois Genoud, recommended it as a against the Patriots for Germany? "must." The book sold 250,000 copies in a politicalcl imate that Counterorganizing the Patriots was dominated by the heated debate on those "Hitler Diar­ The Patriots for Germany, initiated by Helga Zepp­ ies," which Stern magazine (publisher: a former official of LaRouche and other leading German citizens, had captured the Goebbels wartime propaganda apparatus in Italy, Henri attention on Oct. 15, 1985 with advertisements in the major Nannen) launched with falsified documents from East Ger­ national press, calling for: 1) no to decoupling from the many in early 1983. United States,and no to a Social Democratic-Green coalition The hoax behind the "diaries" was blown, but the debate· in Bonn; 2) full cooperation with the American Strategic it launched revived the dormant scene of old and new Nazis, Defense Initiative; 3) a just treaty of peace for Germany in and when SchOnhuber founded the REP end of 1983, his all of its parts, in order that the German peoplemay exercise venturefe ll on fertile ground. self-determination in national sovereignty; 4) a policy of The REP of the former member of the Waffen-SS, Franz economic growth and opening of the German economy to a

42 International EIR June 12, 1987 New World Economic Order and industrialization of the tion, because of his close links to the NATO intelligence underdeveloped sector; 5) a cultural renaissance based on the department. Bornin 1916, he served the German Wehrmacht foundations of German classical culture. as a naval combat pilot and then as a submarine commander Schonhuber began a campaign of massive counterorgan­ until he was taken prisoner of war shortly before the end of izing against the Patriots for Germany at the end of 1985, the war. Poser joined the newly formed West German armed giving the REP the misleading propaganda earmark of being forces as a naval captain in 1956, wbrking out of an office at a Bewegung patriotischer Deutscher (movement of patriotic the just-established ministry of defense in Bonn. Germans). A good deal of confusion was spread among vot­ Serving as a military attache at the West German embas­ ers about where the dividing lines actually were between the sies in Japan and Korea between 1957 and 1963, Poser spe­ REP and the Patriots. cialized on questions of defense and :geopolitics in the Pacific And in the summer of 1986, the REP stole the Patriots' and the Far East. Back in Bonn, GiinterPoser was in charge slogan AIDS bedroht uns aile (AIDS threatens all of us), of military intelligence at the West German ministry of de­ beginning a high-profile campaign for compulsory testing fense from 1964 to 1969, and moved to NATO's headquar­ and registration of the population on AIDS, and quarantine ters in Brussels, to head its department of intelligence, with for all infected persons. This was, however, mingled with special emphasis on intelligence ma1ters concerningthe War­ the REP's racist campaign against foreigners living in, or saw Pact, until his early retirement in 1973. traveling into West Germany. Since then, Poser has been working as a defense consult­ Already from late- 1985 on, the REP was transformed ant for the South Africans, the Japanese, the Chinese, and into an openly right-wing-radical party organization, a pro­ the South Koreans. He apparently joined the REP on the cess during which part of the leadership was purged. SchOn­ condition that he would be made vice-chairman of the party, huber managed to oust the two vice-chairmen Handlos and and chairman Franz Schonhuber accepted. Voigt, who left the party soon after. The party was now under Before entering the REP, Gunter Poser had been in polit­ the firm control of Schonhuber and Neubauer, appealing ical contact with U.S. Gen. Daniel Graham and others from more directly to the more extreme right wing of the German the High Frontier group, and in that function was engaged in political spectrum. direct counterorganizing against LaRouche's growing pro­ There were also plenty of funds suddenly available. The SDI impact upon German military-industrial layers. REP was putting up about 90,000 posters during the Bavarian With Poser, a special aspect of the geopolitical lobby at election campaign, an affairthat posed many questions as to NATO, a leading representative of the staunch opposition to sources of funds, because such a venture required an esti­ LaRouche and the SDI among military layers in the West, mated campaign chest of at least 2 million deutschemarks. entered the REP operation. On election day, Oct. 12, the REP won 3% statewide in Also the case of the second prominent conservative to Bavaria, and in some regions in East Bavaria even 7% or join the REP, Emil Schlee, points to dirty operations against more . This put the REP up front, for the media, as the leading the LaRouche current in German pqlitics. Schlee originally right-wing party in the political landscape of West Germany, joined the Patriots for Germany during their founding phase and provided the party with an official campaign reimburse­ and tried to gain a leading post in the new movement. ment of 1.3 million deutschemarks. This refunding helped But when it came to the point of forming a real party the REP to get rid, at least from the public, of nasty questions structure for election campaign purposes, Schlee reasoned about its funds, as it had just become a "rich party." Franz that the Patriots ought to continue as a movement, rather than Schonhuber himself informed the public (the media, that is) become a political party. Recognizilg that there was no ma­ that the REP was "without debts," and rumors were leaked jority among the Patriots for his views, Schlee and his tiny that the party had even assembled a war-chest of about 4 minority group split. In April 1987, he joined the REP-to million deutschemarks "from membership dues and dona­ become the second vice-chairman of that party. Having stat­ tions. " ed a commitment (perhaps false from the start) in 1985 to The REP did not run in the national elections of Jan. 25, work with the Patriots to defend Germany against the danger 1987, but concentrated on "consolidating" its funds and of decoupling, and against the Soviet Union, Schlee works membership. Certainly, this meant that another transforma­ openly for the other side now, the Kremlin and the decou­ tion of the party structure was already in preparation. The pIers. second transformation of the REP occurred a few days after The REP and its current leaders are the Kremlin's new the national elections of Jan. 25, when two prominent con­ and dangerous fifth column in West German politics, fu nc­ servatives-RearAdm . (ret.) Gunter Poser and Emil Schlee­ tioning as the main transmission belt now for organizing entered the party. Germans into seekijg an accommodation with Moscow. To root this treasonous group out of German politics, the Patriots The case of Gunter Poser for Germany have issued a declaration of political war against The person of Gunter Poser deserves very special atten- the REP.

EIR June 12, 1987 International 43 Make Norway part of the SDI!

Now is the time for Norway, with its unique geographical position and membership in NATO, to play a decisive role in the defense of the Free World.

Norway actively partaking in the Strategic Oefense Initiative (SOl) would stabilize the strategic situation in Europe for a considerable time. Building the Norwegian part of the SOl also leads to unimagined economical spin-offs - in itself the best defense.

We, Norwegian patriots, invite you to actively lobby to make Norway part of the SOl.

Geir Arne Hanssen Arne Roen 0yvind Hogsnes T -E Thomassen System consultant, Hermod Christensen A/S Electronics engineer Solheimsvik, Norway network Oslo, Norway Tensberg, Norway Oslo, Norway Wilhelm Schreiider Eldar Hareide Einar Braastad Fjell-Heisen, Ole Haugan Hareid, Norway Oslo, Norway Tromse , Norway A/S Kunstbetong When in TromslJ, Faberg, Norway Klaus Sivertsgird A. H. Strandene see the town from above - by the Cable Car! Oslo, Norway Engineer, Oslo, Norway

44 International EIR June 12, 1987 Reykjavik trip of Soviet Foreign Minister Eduard Shevard­ nadze to Ottawa last October. Shevardnadze not only signed a new wheat agreement, but suggested to Clark some 25 separate joint ventures with Canadian oil and gas companies. The Soviets play Naturally enough, the joint ventures primarily related to the Canadian north, and led an enthuisiastic Clark to tell the press the 'Canada card' that "the Arctic is our [Canadian and Soviet] common heri­ tage and our common vision." Immediately following the discussions, Canada reacti­ by Joseph Brewda vated a Canadian-Soviet cultural and exchange accord that had been suspended following the Soviet invasion of Af­ The Soviet foreign ministry is currently surfacing longstand­ ghanistan. (A similar accord was renewed in the United States ing assets within the Canadian ministry of externalaffairs , as last year, through the efforts of U. S. -based Soviet agent part of an elaborate scheme to disrupt U. S. -Canadian military Armand Hammer, as one of the prices for the Reykjavik arrangements through a contrived sovereignty dispute. The summit.) Among the joint projects agreed to between Canada Soviet gameplan first became public on April 22, when Ex­ and the U. S. S.R are joint satellite monitoring of Arctic ice ternal Affairs Minister Joe Clark made an astonishing speech flows, mineral resource mapping, and study of the curious before a Vancouver audience, in which he accused the U.S. atmospheric electromagnetic phenomenon known as the government of violating Canada's sovereignty by deploying • NorthernLights . All of these studies have direct and indirect Navy and Coast Guard vessels into its extreme northern military importance. Canada is even considering launching waters. These Arctic waters are claimed by Canada, but are its commercial satellites from Soviet facilities. considered to be international by the United States. The particular network within the external affairs minis­ The prime Soviet objective in the affair remarks is not try which is pushing for aU. S. -Canadian break dates back to only to hinder NATO submarine and antisubmarine warfare the 1930s, when former Canadian Prime Minister Lester deployment. The Soviet press has been violently denouncing Pearson first got his start in government. Pearson has since Canada's agreement with the United States to build an ad­ become notorious for protecting or promoting numerous in­ vanced 52-station Northern Warning System to replace the dividuals in that ministry, who were believed to have been outmoded Distance Early Warning, or DEW line, possibly controlled by Soviet agents Kim Philby and Donald Maclean. including a space-based system. The agreement has pro­ One protege of Pearson , however, was long-time Prime Min­ voked Moscow's wrath because of its significance for the ister Pierre Elliott Trudeau, whose overt support of Soviet first generation of the Strategic Defense Initiative. strategic objectives continues to be a threat to NorthAmeri ca. Just how brazen Moscow's assets in Ottawa have become It was Trudeau, under the cover of the doctrine of "multi­ is indicated by testimony Clark made in April before the culturalism," who funded and promoted diverse terrorist or­ House of Commons' National Defense Committee, on a mil­ ganizations, which remain a critical "environmental support itary proposal to build lO nuclear submarines. Canada cur­ base" for Soviet spetsnaz (irregular warfare , terrorist) capa­ rently hasno nuclear-powered submarines, and therefore , no bilities. capability to patrol under the Arctic ice against Soviet sub­ Not surprisingly, two of the strongest advocates of re­ marines. Clark gave his endorsement to the plan, but for moving NATO from the Arctic are Lester Pearson's son, reasons directly contrary to the proposal's sponsors. Clark Jeffrey Pearson, who was the Canadian ambassador to Mos­ declared, "In terms of the threat to our sovereingty in the cow under Trudeau, and the Bronfman family, which first north, on this day in April 1987, the larger threat comes from funded Trudeau's political campaigns. The Montreal-based our friends, the United States." Charles Bronfman, and his U.S.-based brother Edgar, have The minister's pontifications over alleged U. S. military been to Moscow several times in past months, negotiating violations of Canadian waters have been dutily copied by the business deals in exchange for political concessions by the "opposition," including the social-democratic New Demo­ West. cratic Party , which has called for mining the Canadian Arctic The Bronfmans are central to a current effort to ban EIR against U. S. submarines. The more fruity among this collec­ in Canada, based on alleged violations of Canada's "hate tion have long advocated abandoning the north altogether, statues." Timed with Clark's effortto drive a wedge between on behalf of some "Eskimo nation" or seal and whale para­ Washington and Ottawa, the Bronfman-allied Canadian dise. Broadcasting Corporation carried a lengthy slander of Lyn­ don LaRouche. This CBC attack was based on a report re­ The Shevardnadze trip cently issued by the Canadian B'nai B'rith , modeled on ear­ The triggering incident for Clark's remarkable statements lier slanders penned by the U.S.-based Anti-Defamation is not found in any U.S. naval deployment, but the post- League (see International Intelligence, pp. 60-6 1).

EIR June 12, 1987 International 45 Philippines : behind the COI}f magic by Linda de Hoyos

Election fraud is not unusual in many countries in the world, "some fraud" had occurred. including the United States. But very rarely is the victim of The evidence to be presented by the Grand Alliance adds fraud able to prove beyond doubt that fraud occurred, or if it to the exposure of the Aquino fovernment as a dictatorship did, that it would have altered the outcome of the elections. imposed on the Philippines by t e international banks and the However, the Grand Alliance for Democracy in the Philip­ International Monetary Fund dirty work compliments of pines, the opposition slate of nationalist leaders opposed to the U.S. embassy (see article next page). 1 President Corazon Aquino, has now obtained precisely such The week after the electio s, Maurice "Hank" Green­ devastating evidence. berg, of the American Insurance Group, arrived in Manila In the May 11 elections for the new Philippines Senate, with a shopping list for Filipino assets. On the scene are the Grand Alliance slate had been expected to gain at least 8 representatives of Citicorp, Cob Cola, Manufacturers Han­ out of 24 seats, given the national stature of its candidates. over, and Caltech. Greenberg ,1 a close associate of Central But in the Namfrel "quick count" vote and in the tallies of the Bank chief Jose Fernandez, who was installed at that post government election commission Comelec, the GAD has under Marcos at the behest IMF, is also a leading figure won only 2-3 seats . As one American observer in Manila put in the U.S.-U.S.S.R. Trade il. The plan of Finance it: "The only time we ever see government candidates getting 111�f'"''"' Investment Notes (PINs) 98% of the vote is in the East bloc." of Citibank, who played The Grand Alliance, led by Vicente "Teng" Puyat and on the Philippines' $28 former Defense Minister Juan Ponce Enrile, charged fraud in calls for the bankers to trade the immediate aftermath of the vote, when presidential press npT'fnrrn ng assets-with no in­ spokesman Teodoro Benigno announced that Cory had won is, development. by a "landslide." This report went out to the press, even is selling off some 125 state­ though no votes had yet been counted. "It must be that Cory up the two leading sub- magic," Benigno crowed. Now we know what he meant. On May 29, two computer workers with Namfrel began to grow suspicious of the pat­ terns emerging from the Namfrel electoral printout, and de­ cided to have a look at the program. To their shock, they fo und that the computer had been programmed to give a total of 10,000 votes-over and above any votes actually tallied­ in each district to each administration candidate. In sum, this gave each administration candidate a floorvote of 2 million votes nationwide! The program was locked in the computer under the cod­ ename: "MAGIC." The Namfrel program explains the persistent reports that more votes were counted in districts throughout the country than registered voters. For example, in Ziga, 150,000 votes were tallied in the May 11 elections; there are only 110,000 voters in the district. According to columnist Luis Beltran, writing in the Manila Star, in Lanao, Mindanao, a stronghold of the Grand Alliance, there were 40% more votes than vot­ ers. "Is it possible," asks Beltran, "that Cory had no idea of the depth of political degradation" to which her administra­ tion has sunk? By the end of May , even Aquino admitted that

46 International EIR June 12, 1987 The brazen Ongpin-Fernandez fire sale of Philippine as­ The lead investment bank on the new Ongpin-authored PINS? sets is causing a stir even within the Aquino cabinet. On April Allen and Co. , of course. 23, National Economic and Development Agency director Bosworth's employment raises immediate issues of con­ Solita Monsod wrote a letter, only now released, questioning flictof interest. Was Bosworth, during his tenure as ambas­ the method of counting foreign-exchange earnings. Accord­ sador in Manila, actually representing the interests of the ing to a 1972 law instituted in the first year of Marcos's U.S. government, or was he representing the interests of martial law , the Philippines is forbidden to allocateover 20% Allen & Co. , which is now cleaning up on the debt-for-equity of its foreign earnings to debt service. To get around this, schemes of Aquino Finance Minister Ongpin? Fernandez announced in 1984 that receipts fromfore ign loans In 1986, Dope, Inc., the best-selling expose of the $500 would count as new export earnings-effectively raising the billion international narcotics cartel, devoted several pages ceiling on the amount paid to debt service by ballooning the to the unusual story of the Airborne Freight Co. of Seattle, export-earnings figure. Even with this subterfuge, under the Washington, and its subsidiary, Midwest Air. According to agreement worked out by Ongpin, the Philippines will pay U.S. law enforcement sources, Airborne was a major carrier 45% of its bloated export earningsin debt service. of drugs coming in from the Far East. Its subsidiary, Midwest The Grand Alliance for Democracy is the only force in Air, carried two things: time-sensitive checks of the Federal the country putting forward a nationalist program for eco­ Reserve System, which meant its cargoes were not inspected, nomic sovereignty and development-one reason why the and secondly, dope. The owners of Airborne Freight? Allen leading figures ofthe alliance have somehow always been on and Co. the outs, no matter who the United States backed in Malacan­ The Allens also own the Philippines' Benguet Consoli­ ang Palace. The evidence of massive vote fraud which con­ dated Mining Company, the largest gold mining operation in tinues to break in the press, should be taken as a warning by Asia. The New York Times of Feb . 26, 1978 recounted the Mrs. Aquino, that her brutal defeat of the Grand Alliance at story of a notorious crook named Louis Chesler, whom for­ the "polls" May II could well be a Pyrrhic victory. mer U.S. prosecutor Robert Morgenthau called "j ust another bagman for Meyer Lansky." Said the Times, "Charlie Allen was no stranger to Louis Chesler, either. Both men owned significant portions of a development in the Bahamas which was involved in building the Lucayan Beach Hotel and Ca­ sino, a scandal-tainted operation which included . . . a con­ victed stock swindler named Wallace Groves . . . who would be later identifiedby law enforcement sources as yet another Wall Street firm bagman for Meyer Lansky. How a large, well-respected Wall Street investment banking firmbecame involved with such a owns Jaime Ongpin shady bunch of characters . . . tells much about Charlie Al­ len. . . ." Ultimately, the AlIens sold their Cayman Islands Stephen Bosworth has lefthis post as U. S. ambassador to the piece of the Lansky action to themselves-to Benguet Con­ Philippines. Bosworth, it has been announced, will take up a solidated Mining Co. position with the New York investment banking house of Around this time, a young Filipino named Jaime Ongpin Allen and Co. Throughout 1985 and early 1986, Bosworth, had just graduated from Harvard Business School. He was from his U.S. Embassy post in Manila, had been the chief hired by Allen and Co. , and sent back to the Philippines. In orchestrator of the U.S. State Department coup, which over­ 1974, Jaime became Benguet's firstFilipino president. threw President Ferdinand Marcos and installed the govern­ The following interview with Allen and Co. partner Her­ ment of Corazon Aquino. bertAllen was made available to EIR by a source in business Curiously, the Finance Minister of the new "people's in the Far East, and sheds interesting light on the Ongpin­ power" government, Jaime Ongpin, has been owned lock, Bosworth case. It was conducted 1une 1 .. the day after a stock, and barrel throughout his entire adult career, by Bos­ dramatic speechat the Manila Rotary Club by Grand Alliance worth's new employer, Allen and Co. This firm, one of the for Democracy leader Vicente Puyat, which called for the top ten investment banking houses on Wall Street, whose Philippines to follow the "Peruvian solution," to pay only partners Charles and Herbert Allen are worth a combined 10% on foreign debt. minimum of $550 million, achieved great notoriety in the 1960s and 1970s, as the private investment bank of Meyer Q: . . . I don't know whether you got the news over the past Lansky. It looks as if Allen and Co. will more than get their 24 hours, the speech that the leader of the opposition gave in . money out of Ongpin and Bosworth. Now that Ongpin is in Manila? power, he has authored an innovative new scheme, the Phil­ A: I have been traveling. I just came in from Paris. ippine Investment Notes (PINS), to raffle off the chief assets of the Republic of the Philippines to pay the foreign debt. Q: Ok. What he said is, "Look, the Grand Alliance for

EIR June 12, 1987 International 47 Democracy is adopting the Garcia solution. We're going with to go ahead? Because you folks :are pretty much. the Peru model, 10%, that's all we are going to pay." Now, A: On what? what I didn't like about it so much was that he was very specific and concrete on how much of the $2 billion that was Q: On the Philippine Investment Notes. not going to be paid to the banks in the coming period was A: Uh, I, I won't, will not, I don't want to remark on it. going to be spent for education, for energy infrastructure, for this, for that. In other words , it was quite well thought out as Q: Okay, obviously, a major policy statement. A: Okay? A: Ongpin was not involved? Q: No problem, no problem. Letme just ask, in the sense of Q: No ....Apparently this flies very much in the face of the policy that was agreed to , :with the restructuring when what Jimmy Ongpin has been saying. Ongpin and Jobo came here, as far as you know, that's A: Yeah, well, quite frankly, I haven't spoken to Jimmy in what's ... a couple of weeks. A: I know of nothing else other than that.

Q: But you're in pretty regular touch with him, right? Q: Okay. A: Oh, well uh, you know, well I'm in touch with somebody A: Jimmy would tell me if it were changed. in the Philippines, almost daily, yes. Q: Yes, he used to work for you. Q: Yes. Okay , good, because .... A: Yes, he was employed here

Q: Yeah, sure. So I guess you are . .- ...... -. A: And we happen to be very qlose friends.

� i S�k ish � Q: Oh? That's good. SpaQ A: Yeah. like a •! Cliplomat !® •! Q: So you're quite happy with what he and Jobo [Fernandez, : �� �� : Central Bank head] are doing. • • A: They're terrific. • • • • • • Q: They're terrific? • • A: They're terrific. • What oortof-.Hn...,to leem.'oreign hendoome libr.ry bindar. Order either, or • • lang __.. quickly and ellectively .. . Nve t 0'1& by ordering both: • poe I (17 hr.)• • 0 =::::. �n=. .2t=.-:r;;' • Q: Well, you know, with elections, what they're doing is, IUlgned:'�be�/g.=�=::::,��;:; to U.S. em_leo abroad, where Volu.... II: _ale.� 8 cuaattes • ::: ':. ::.�e to converw lluently in 0 11 hr.), manual and 814·p. telCl, $120. • they're screaming, "Jimmy's selling out the Philippines." • ry ':'a 2 • (CT residents add saies tax.) • • That's ... .. �'f.:.�h� TO ORDER BY PHONE, PLEASE CALL Foreign=:-....::.="� Servtce In.tHute·. Progremmatlc • • =rican TOLL·FREE NUMBER: HIC�243-1 234. • A: Contrarily, he's, he's done a great job for them. A great • ��= = • Tho: U.S. c;;::,':J Department ofState ha. _nt u� n�": job. • = � ':''::o ��g ' :J:'::, -: "c"'::::'�::; • • ��:'dof,::'!:::t��·t:= �,::: vr:��:.::� � • ap.ftlah at your own convenience and at dosing card number,e xpi,..tton:.v::.��c:date, and • • Q: So he has your, more or less, your stamp of approval? ��'i.t. of a •• rie. of cal- Y U� :I • YOU� :w" O = Servtce IMutut:.'. Spenllll • aetteoandaccompenylngtextbook. Simpiy _1._--, ,,,,-. Try H A: I think he's done a fantastic job, really. Dedicated man. • . r n c t n • . � � � � �Ot : � �.: I • ==.: :o::.:: �� :.� : � �� �� =. . �:.r�:." � �: • :;o.:.v'"::,� .. rning and .peaking en· learn Spenilh, return It and�:� we'l =refund • • Uh, huh. And you're still pretty much talking to him .ThIe___ your _ ..... pteyer 0100 • Q: _ -.-..... _ ·�'Jcl':��::�Ot����:-� a ." With Ita unique avallable. Write 'or 'rea • " malic" learning method, you .. t catalog. Our • regularly and you have a. . . ::,�:,v:program = ing 15th year . . • I:.�-:c": r::Po��=.t bj., '111I'h A: Well I know, I, I, I talk to the Philippines quite frequent­ The FSI'. Prog,.mmatlcSpenilh Courae Audio-Forum • in voIumel, .hipped in a • • coma. two each �:'�n. " • ly. Okay? • .lI'W'H'aaurn· �mo::a�:37 �. • •• •••••••••••••••••••••••• Q: Because . . okay, well, thanks very much Herb.

48 International ElK June 12, 1987 Book Review

The SovietArm y between the Prussian General Staff and Dostoevsky's madness by Laurent Murawiec

youth organization (7 -9) where much effort is devoted to the The Soviet Military (PoUtical Education,. same aims. Training & Morale) Malchish Kibalshich and the Tale of the Military Secret by E.S. Williams. with chapters by C.N. Donnelly is cited by the author as exemplary for the kind of literature & J.E. Moore; Foreword by Sir Curtis Keeble absorbed at that stage: The Soviet armed forces, in the book's Royal United Services Institute. Defence Studies story, fight a cruel and evil enemy called the "Burzhins," a Series. Macmillan Publishers. London 1987 buzz-word reminiscent of Russian for "bourgeois" (bur­ 203 pages . clothbound. £27.50. zhua). "It is a timeless war, having no beginning and no end in sight. Successive generations of Soviet people go off in turnto fight the ever-pressing Burzhins and in turn are killed defending their homeland. The Burzhins are depicted as tall, Le chef de I'Armee Rouge, Mikall hook-nosed people with pince-nez, wearing morning dress Toukhatchevski and top hats in the style of bankers of a bygone age ....The by Pierre Fervacque Burzhins never win but neither do they lose, so the struggle Paris. 1928 continues. " Our little friend, Russian boy Malchish, will of course This book by Air Commodore (ret.) E.S. Williams, a Soviet die under unspeakable tortures inflicted by the enemy. The Studies Associate at the London Royal United Services In­ Orwellian quality of the eternal struggle is certainly an indi­ stitute for Defence Studies, provides a precious study, given cation of the underlying philosophy and content of Soviet the means available to the Westerngeneral and expertpublic , "education," a Manichean world-outlook. to probe the state of mind of the Russian soldier, and how it Further in the idea-content of Soviet crypto-education, is generated and maintained-a parameter overwhelmingly the author reports from his own experience, having been ignored by the silly "numbers games" which usually pass for shown a schoolchildren's play in a Pioneer Palace, one de­ analysis of the Soviet military capability. signed to illustrate a concept of Creation: "A life-force ... How is the proverbial "Ivan" turned into a soldier? From is responsible for the cyclic renewal of animal and vegetable nursery school, where the under-four-year-old child will be matter.... A drama-group composed of ten-year-olds act[s] familiarized by the omnipresent pictorial representation of out the advent of the life-force on the barren surface of the Russia's demigod, "Lenin," even before reaching kindergar­ earth.... [the] good creatures of the life-force [have] to ten (4-7) where children's books concern less toys and little contend with the bad fairies, the peath-force bent on re­ bears than soldiers and their sons, patriotic heroes and their turn[ing] the planet to its barren stat¢. The representatives of children, boy-heroes and evil enemies of the Motherland. this death-force, symbolizing evil and decay, [are] dressed There, the child and future soldier acquires, if not belief, a very like Burzhins." None of history'S gnostic, manichean predisposition to believe the axioms of his world-outlook. cults could object. Outside the schoolroom, he is under the sway ofthe Oktobrist The Burzhins soon acquire a more defined silhouette,

ElK June 12, 1987 International 49 Williams reports, as Ivan progresses to the eight-year school indoctrinated from the dawn' of childhood, Ivan, who has and its correlate, the Pioneers (9-14). There, the U.S.A., received pre-military training, then goes thtough a lengthy NATO, etc., are named. Thirty-fivemill ion Soviet children, military service (two-threeyears) characterized by drill, drill, that is, every single child in the country, hold membership in and more drill, rather than the acquisition of higher military the Oktobrists and/or the Pioneers, which pick them up at the skills; by slavery in social relations, a complete cut-off from end of school hours, and for the holidays-which leaves either his original milieu (extreme scarcity of leaves) or his precious little influence to members of the family. The "col­ surroundings (barracks consignment), the atrocious bullying lective approach to life" is strengthened, and the solemn oaths of officers, NCOs, and more senior fellow-soldiers. One­ of induction emphasize the "self-less" quality of the young third of his time will be taken in political instruction, with member of Soviet society. At school, for two years, the emphasis on war psychosis, securitypsychosis and the "steel­ student receives military education every week, while every ing of will." As graphically described in Viktor Suvorov's Pioneer Palace (which are to be found in every village, one book The Liberators. a crucial mechanism in Soviet armed of the nicest buildings and best furnished)has at least one ex­ forces is the deliberate fanning of extreme rage and hatred in serviceman whose job it is to school the children in basic the soldiers who, deprived �f any outlet and permissible military crafts (map-reading, reconnaissance, marksman­ object to express their rage, are fit to be unleashed on any ship, first aid, etc.). Field exercises are held, culminating designated enemy, which will have to bear the brunt of pent­ once a year in a all-Union exercise for Pioneers-just as at up rage. In short, "those are thoseyou may hate, and the time the next stage, the Young Communist League (Komsomol) may come when you will get a chance to hit out." an annual pre- or para-military exercise engages more than Ethnic conflict is ever-present, the author notes, and is seven million members. used and fanned by the military leadership as a means of overall social control. Extreme racism with respect to non­ From child to soldier Slavs is prevalent-except for those non-Slav, non-white Having been accepted in the Komsomol, Ivan will also, officerswho fu lly engage in (self-) Russification and become probably, join DOSAAF, the Voluntary Society of Cooper­ part of the imperial elite which the officer corps is, today as ation with the Army, Aviation, and the Fleet, an organization in the Czars' time. responsible for pre-call-up military training, which boasts of The chapter by C.N. Donnelly on the Soviet soldier a membership of 80 million workers and students, compris­ stresses, "The Soviet military system requires the conscript ing 330,000 clubs! Led by a four-star general who has parity to perform simple battlefield tasks which have been learned with the heads of the five armed services, DOSAAF repre­ by constantly repeated drill" but "to be able to perform them sents a formidable pool which will complete the delivery of in any battlefield condition. ' ... [It] does not ...expect militarily trained and ideologically conditioned youth to the initiative or imaginative and constructive actions from its Armed Forces on the day of induction. When Ivan meets his soldiers: it only expects reaction and drill movement. The political officer, the Zampolit, he has already spent 18 years very concept of initiative (inasmuch as it is ever asked of absorbing, rather unconsciously, the tenets of the Russian NCOs and junior officers) is taken to be no more than the liturgy. Important insights are to be gained from Williams's initiation of the correct drill appropriate for the given circum­ book on this matter: It is often claimed in the West that the stances." However, Donnelly notes, his lack of versatility Russian popUlation reacts apathetically and with a boredom "does not necessarily mean that he is a poorer soldier, be­ converging on rejection to the unceasing agitprop poured cause the system to which he belongs does not require ver­ forth by the Party. But the permanent indoctrination, the satility or initiative of him. . . The Soviet soldier is well­ author indicates, does not necessarily concern itself with drilled and has proven extremely resourceful and well able to fostering agreement with the idea-content of Commu.nistpro­ look out for himself in all conditions." In short, the "rigid grams and slogans, but with conforming adhesion. Just as discipline has enabled the Soviet Army to force through an the liturgy of the Russian Orthodox Church does not aim, attack or maintain the structure of a defensive position, de­ contrary to Western churches, to provide a conception of spite horrendous casualties, because it has overcome fear theology and morality, but one of ritual and liturgy, agitprop amongs the soldiers by an even greater fear of execution at aims at, and results in, the state of affairs Williams describes the hands of their own superiors." thus: "a population which, after 65 years of party 'enlight­ Those are precious indicationsof the strengths and weak­ enment,' has come instinctively to believe in its destiny to nesses of the Soviet military. which need to be translated in reform the world [emphasis added] ." operational concepts by Western military planners. Lessons The Zampolit, the current figure of the political commis­ can also be adduced from the Afghanistan war, the "behav­ sar, is instucted by his own handbooks "to indoctrinate his ioral laboratory" for the Soviet army, Williams writes in unit with a spirit of high idealism, diligence and selfless conclusion. The spread of depression and demoralization, devotion to the homeland," and "to indoctrinate personnel crime and drugs, poor discipline, and abysmal living condi­ with a hatred toward the nation's enemies. " Regimented and tions and hygiene has not eroded the fundamentals of "con-

50 International EIR June 12, 1987 tinued, confonning cooperation of the silent majority." Ad­ Fervacque having found him painting the head of an ditionally, "when it comes to military necessity, the KGB atrocious idol, the future Marshal answered: will play for keeps." Thus is the soldier taken care of. The Do not laugh. I have told you that the Slavs are officercorps , he adds, at the higher levels, is purposeful and in want of a new religion. They are being given Marx­ capable, and compares favorably to the relativeslowness and ism; but aspects of that theology are too modern and lack of initiative of middle and lower levels, seized by the toocivil ized. It is possible to mitigate this disagreeable fear of "doing something wrong." The military potential of state by 'returning to our Slavic gods, who were de­ the militarized society that Russia is, is fonnidable, if vul­ prived of their prerogative and strength; nevertheless, nerable. they can soon regain them. There is Daschbog, the god of the Sun; Stribog, the god of the Storm; Wolos, In the mind of Marshal Ogarkov the god of human arts and poetry; and also Pierounn, A much older book, published in 1928 in Paris, affords the god of War and Lightning. For long, I have hes­ an exceptional insight into the mind of one of the creatorsof itated to choosemy particulargod; but afterreflection , this military machine, Marshal Mikhail Tukhachevsky, the I have chosen Pierounn, because once Marxism is hero and favorite of the Red Anny in the Civil War, the war thrust upon Russia, the most devastating wars will be against Poland, and one of the core-group that effectively let loose.... We shall enter chaos and we shall not built the Soviet army. Tukhachevsky may well have been leave it until civilization is reduced to total ruin. executed in the Great Purge of 1938 that exterminated the officercorps , but his legacy of strategic thinking was passed We cannot pretend to know whether Nikolai Ogarkov, on, notably through such figuresas Marshal Georgi Zhukov, in his heart of hearts, is also a worshipper of Pierounn, the and, today, Marshal Nikolai Ogarkov, deputy commander­ god of War and Lightning. What ought to be obvious to the in-chief. Western reader is that he, at any rate, believes in the sacred Fervacque, a French officer taken prisoner by the Ger­ cult of Mother Russia, as the quasi-liturgical language he mans in World War I, spenta long time with Tukhachevsky used in his celebrated September 1983 press briefing on the in a POW fortress, in conditions of enforced personal inti­ shooting down of the KAL-007 airplane indicated. macy seldom afforded to students of the Russian leadership, Further to the contents of the Russian General Staff s military or civilian. His narrative is the flip side of the better­ mind and its ideology, Fervacque reported more of Tuk­ known "Prussian General Staff' quality of cool, calculating hachevsky's ravings: military rationality of the Russian officer. Seriously, it would be good forhumanity were all Tukhachevsky . . . an able soldier, his outlookon books burned, so that we could bathe in the fresh civilization so closely reflected the Asiatic side of spring of ignorance. I even think that this is the sole Bolshevism that to understand the futureof the Russian means of preventing mankind from becoming sterile. Revolution it is worthwhile to examine it. Born in 1892 of a noble family which traced its descent back The hero of the Red Army explained how necessary it to the Counts of Flanders, although his mother was was to have Russia ruled by a new Ivan the Terrible-a an Italian, in character, he was Tartar.... hope that was to be fulfilled even beyond the marshal's By instinct, he was a romantic barbarian who wildest expectations, and at the cost of his own execution: abhorred Western civilization . He had the soul of Then, Moscow will become thecenter of the world Genghis Khan, of Ogdai and of Batu. Autocratic, of barbarians.... If Lenin is able to disencumber superstitious, romantic and ruthless, he loved the open Russia from the old junk of prejudices and de-Wes­ plain lands and the thud of a thousands hooves, and ternize her, I will follow him. But he must raze all to he loathed and fe ared the unromantic orderliness of the ground, and deliberately hurl us back into bar­ civilization. He hated Christianity and Christian cul­ barism. ture becauseit had obliterated paganism and barbarism and had deprived his fellow countrymen of the ecstasy ReadingNikolai Ogarkov's books,their carefully thought­ of the god of war and the glamor of the "carnival of out, systematic outlook bears witness to cool, calculated death." Also he loathed the Jews because they had planning. But while the militarization and regimentation of helped inoculate the Russians with the "plague of civ­ Soviet society is meticulously planned and organized, as ilization" and "the morale of capitalism." Williams's booksho ws, what lurks behind is the wild ravings of "the Horde," as Tukhachevsky fondly called the Red Fervacque recalls how his fellow-prisoner told him: Army. There is plenty of evidence that today's General Staff A demon or a god animates our race. We shall and officer corps have absorbed, with the orientation on make ourselves drunk, because we cannot as yet make offense and strategic surprise, the rest of Tukhachevsky's the world drunk. That will come. legacy.

EIR June 12, 1987 International 51 'Third Rome' Refuted I

New book on mission to the blavs lifts veil from the true East by Fiorella Operto Filipponi

Before a rapt audience of diplomats, professors, and stu­ circles, Professor VeselY's boo� is a highly original conden­ dents, on May 19 at the St. Thomas Pontifical University in sation of many historic and higely topical themes, revolving Rome, known as the "Angelicum," the annual commemora­ around the figures of the saintetlbrothers Cyril and Method­ tion in homage to the Slavic saints Cyril and Methodius was ius. celebrated. The week from May 19 to 24 saw the unfolding Professor Vesely documents succinctly the existence of in Rome, Naples, and other European cities, of the celebra­ an "Eastern" culture which is in no way comparable to the tions in honor of Sts. Cyril and Methodius, events which complex of schemes which w Westerners are used to iden­ concluded, from the Italian side , with a ceremony on May tifying with the term "East." The Apostle Paul, "apostle to 24 at St. Clement's church in Rome, where Cyril is buried. the Gentiles," the apostle to Asia, often resided in the great After words of introduction by the ambassador of Yugo­ city of Thessalonika, where thJ two apostles to the Slavs, the slavia to the Holy See, the celebration at the Angelicum brothers Cyril and Methodius,j were born. From there , after continued with a presentation by Prof. Tomislav Marasovic, being trained in classical culture , the brothers moved out to professor of medieval art history at the University of Split, Christianize the Slavic populations which had settled in Mo­ on "Sacred Architecture of the High Middle Ages on the ravia as a result of the well-known migrations. With neither Eastern Adriatic," illustrated with very interesting slides. language nor alphabet, the Slars were neither a nation nor a The event ended with the presentation, by the Yugoslav am­ people: Cyril and Methodius gave them an alphabet which, bassador to the Vatican and Italian Radio (RAI) director Dr. contrary to what many believe, is not the "Cyrillic" known Altamura, of the new book by Prof. Jii'f Maria Vesely, Gri­ today; in their language, called "glagolitic," the Slavs had deranno Ie pietre (The Stones Shall Cry Out), published by their sacred books. the Schiller Institute a few days earlier. As John Paul II wrote in hisI Slavorum Apostoli, the en­ Eagerly awaited in religious, diplomatic, and scholarly cyclical dedicated to the two m,ssionaries to the Slavs, named by the Pope "Co-Patrons of E�rope"-together with that St. Benedict whose order was not exactly an ally of the Chris­ l tianizing forces of the two bro hers-the work of Christian­ izatiorr of every people goes nand in hand with the revival and development of the noblest qualities of that people, of their great culture, if they hav it, or of the process of acquir­ ing such. That is what Cyril and Methodius did toward the Slavic peoples. And yet, as Ijofessor VeselY's book docu­ ments, along with previous tlooks by this author, such as Scrivere sull' acqua (Writing rn Water,) published by Jaca Books, and II terzo angolo, (The Third Angle,) published by the RAI-part of the Latin clergy strenuously opposed the work of the apostles to the Slavs, and among these particu­ larly the Venetian hierarchy (' the Venetian crows") and the hierarchy of the Order of St. �enedict. Thanks to the religious and cultural work of Cyril and Methodius, there developed above all in Moravia-Father Vesely's birthplace-and lat�r in Macedonia, today Yugo- I slavia, where the disciples ofl the two apostles took refuge Ochrida (Macedonia capital): apse of the church of Hagia Sophia, when they were persecuted br the Byzantines, a current of early 11th century. ideas that gave rise to a "M cedonian renaissance." This

52 International EIR June 12, 1987 Manhattan (New York) Borough President, and Amelia Boynton Robinson, a leader with pr. King of the 1963 civil rights march on Selma, Alabama. SchillerIns titute • The organization's November' 1984 celebrations of fe tes third birthday the 225th birthday of Friedrich Schiller, organized in 40 cities around the world, featured poetry recitations by school-age youth. The Schiller Institute, founded in Virginia (United States) • The Schiller Institute Ibero-AmericanTrade Union in May 1984, and in June of that year in West Germany, Commission was formed and met in September 1985 with was named for the great poet of freedom, Friedrich Schill­ Peru's new President, Alan Garcia. er, whose ideas are key to revitalizing the German-Amer­ • The Institute's Krafft Ehricke Memorial Confer­ ican alliance on behalf of the classical values of the West. ence in May 1985 honored the German rocket scientist At a recent meeting in Stromberg , West Germany, and Schiller Institute member, who along with Wernher celebrating the Institute's third anniversary, founder and von Braun, provided a guiding hand in America's "reach chairman Helga Zepp-LaRouche reviewed the group's for the stars" during the 1960s . achievements. Starting out with a tiny staffof committed • The Schiller Institute's St. Augustine Conference founding members, the Institute is now active in more in Rome, on Nov. 1-3, 1985, set the stage for the Vatican's than 70 countries and has gained considerable influence Extraordinary Synod a few weeks later, where the Pope in the economic, political, cultural-social, and religious and Cardinal Ratzinger asserted the inseparability of eco­ debate worldwide. nomics and morality. • On July 4, 1984, delegates from some 60 nations • The April 1987 Lima (Peru) conference honored of the West attended the First International Conference in the 20th anniversary of Pope Paul VI's encyclical on eco­ Arlington, Virginia. nomic development, Populorum Progressio. • At the second conference in Wiesbaden, September • An international Schiller Institute Agriculture 1984, one hundred Americans marched in as a "Benjamin Commission was founded early in 1987 at a conference in Franklin Brigade." West Germany. • In November 1984 the Institute formulated the new • The Institute has published numerous books, among Declaration of the Inalienable Rights of Man, and orga­ them The Hitler Book. Defend the Atlantic Alliance. Col­ nized a IO,OOO-strong March on Washington on Martin onize Space! St. Augustine. Father of European and Af­ Luther King Day on Jan. 15, 1985, addressed by Ameri­ rican Civilization. and an anthology of works by Schiller ca's foremost black Democrat, the late Hulan Jack, former in English.

produced, among other things, the conception of the temple ic, Pauline conception, the two apostles set up the mission to on a circular groundplan that was later developed by Leonar­ the Slavs according the model of "inculturation" as the Pope do da Vinci, Bramante, and Raphael. puts it, precisely in their tradition, which they developed and The art, the iconography ("the stones") are an integral ennobled. It was this tradition that Byzantium opposed, per­ part of the Cyrillic-Method ian work and influence: Professor secuting the two brothers and their followers and, with the Vesely's book, in fact, opens, after the introduction consist­ proto-Khomeinist movement of iconoclasm, destroying Ma­ ing of the encyclical Slavorum Apostoli. with the chapter, cedonian-Moravian art. "The meaning of the sacred and the beautiful according to But Byzantium was not the only center of opposition to the letter Egregiae Virtu tis and the encyclical Slavorum the work of Cyril and Methodius: Gregory VII, born Hilde­ Apostoli." The two apostles moved along the lines of a unified brand, ordered the abolition of the Slavic liturgy in the 11th conception of fa ith, culture , and art, of an "anti-Darwinian" century, closed the Cyrillic-Methodian monasteries, and de­ philosophy of man in which man "is born the man-artist" ab clared Methodius a heretic. A pillarof the Roman imperial origo. Professor Vesely, a highly respected archeologist, legacy in the Catholic hierarchy, Gregory VII was to be the states that "the myth of Neanderthal man is crumbling," and harbinger of that Europe from the Atlantic to the Urals, that the theory is being affirmed according to which prehistoric "common homeland" under the aegis of a new Roman em­ man produced "sacred art which, together with words and pire, that is today's "Moscow, the Third Rome." music, was a means of communication, a message ." Under­ This brings us to the "theme oftheme s" ofthe book, once standing profoundly this typically classical Socratic, Platon- again, the Moravia so dear to Father Vesely. He documents

EIR June 12, 1987 International 53 ,� ------�, f Sp

54 International EIR June 12, 1987 in return for Soviet aid to the position of the IMF and Western banks in Latin America. There were striking Soviet refer­ ences to this in statements which Gorbachov and Foreign Soviets 'offer' to Minister Shevardnadze made around the early May visit of the Mexican foreign minister to Moscow. Gorbachov de­ broker debt crisis clared that Moscow's aim is "not to disrupt the relations between Mexico and the U. S. ," while Shevardnadze stressed that Russia would "not infringe on whatever legal interests by Konstantin George exist in Latin America." Then on May 16, Pravda reported thatthe Soviet govern­ The Soviet Union has now called for a Tripartite Conference, ment had submitted a memorandum to the United Nations involving the "capitalist countries," the "developing coun­ calling for "restructuring the international monetary and fi­ tries," and the "socialist countries," to work out a solution to nancial system . . . taking into account the interests of all "the international debt crisis." The call was issued in an governments. " interview in the Soviet government newspaper Izvestia on Korolev, in his interview, paints a picture of North-South May 27, by the Deputy Director of the Moscow International conflictto buttress Moscow's "offer" to step in as third-party Institute for InternationalEconomic Affairs" (lMEMO), Ivan "broker." When asked what would occur if a country "de­ Korolev. clares itself bankruptand refuses to pay at all," he replies that The Korolev interview caps a recent series of Soviet inevitably, "all kinds of sanctions will follow ... a full statements and governmentdocumen ts, signaling Moscow's embargo . . . on all types of goods." This would be a tragedy, willingness to enter the international "debt crisis game" as a for "the developing countries are heavily dependent on for­ "broker," where Russia would offer its services to help the eign economic ties. They can't remain in a vacuum ....For International Monetary Fund (1M F) and Westernbanks in the this reason, the debtors do not want and cannot break with debt crisis, in return for sphere-of-influence favors in differ­ the outside world." ent regions of the world. IMEMO's Korolev, while offeringno real solution, does Korolev declared that the debt crisis has reached a "dead accurately portray the debt crisis as being a failure by the end," where the West "in the near future will be forced to West to provide credit for underdeveloped countries to de­ write off a part of the debt." This has "become inevitable," velop and expand their real economies. Korolev even goes but represents only a "temporary relief." He adds that the so far as to correctly draw a link between the West's failure debt "theoretically and practically cannot be repaid," and, to extend credits for development, and, the dominance of notably, that to follow the example of Brazil's suspension of "post-industrial" policies in the advanced capitalist nations. debt payments is "no solution." The Soviet "solution" of­ The following passages are quite revealing as to how sophis­ fered , is a tripartite "international conference on debt and ticated Soviet propaganda on the debt crisis is becoming: other global economic problems." A clever call , it means that "Developing countries receive credits to pay back the Moscow would move in to take an active "crisis manage­ interest on old debt. Practically nothing is left for developing ment" part in crucial policy decisions pertaining to the entire their own economies ....There is no expansion of their developing sector-Asia, Africa, and Ibero-America. domestic markets , meaning that the West can't export their To put the maximum pressure on the West to listen to goods in greater volumes .... such Soviet proposals, Moscow uses its Cuban puppet, Fidel In the West, "key branches of science, technology, in­ Castro, to play Mr. Radical , calling for "total debt morato­ formatics and the service industries" are becoming more and rium." On May 29, two days after Korolev's interview, the more important. He refers to them as the so-called "ecologi­ French Communist Party newspaper, L'Humanite, ran an cally-pure industries." On the other hand, "heavy industry" interview with Castro, where the Cuban leader declared that or "harmful" (i.e., "polluting") industry such as the metal­ "all" Latin American debts should be "written off," as it's lurgical, chemical, part of machine-building, and auto indus­ "economically, arithmetically, and morally not possible to tries, are being transplanted to the developing countries. pay back the debts ." Castro slyly added that "the peace­ Products stemming from the debtor countries naturally are loving Soviet Union is showing great interest in Latin Amer­ priced low, while Western technology and other scientific­ ica." technologi�al and computer-related productsare very expen­ sive to import. 'New Yalta' games All quite true. Speaking of prices, Korolev fails to men­ Moscow is indeed showing great interest, but from the tion what price Moscow is asking: How many developing standpoint of maximizing its global leverage to force geo­ countries will be accorded to the Soviet sphere of influence, political strategic concessions from Washington in the con­ in return for its "third-party" services in crisis-managing the tinual, behind-the-scenes, superpower "regional issues" talks, debt crisis!

EIR June 12, 1987 International 55 From New Delhi by Susan Maitra

India joins the race for new materials ductive at 26°C. Scientists observed a The prime minister has fo rmed a committee to supervise distinct drop in resistance at that tem­ perature, which was double-checked superconductivity research. with the i�verse AC Josephson tun­ neling effect, a diagnostic which has been used by scientists in the United States. India's quest for a superconduct­ ing material at room temperature is On May 31, the government of In­ an Institute of Science in Bangalore, very practical. India is a large nation dia announced the formation of a com­ the · Indian Institute of Technology with woefully little electric power. In­ mittee to coordinate the research on (Madras), and the National Physical dia's future economic success de­ superconducting materials now under Laboratory in Delhi--have reported pends heavily on its ability to supply way in four leading Indian institu­ success. The firstone to announce was abundant electrical power at a high tions. The purpose of the research is BARC, whose scientists claimed that voltage to the most distant parts of the to develop a material which will be they have developed a yttrium-bar­ country. In this area alone, supercon­ superconducting-that is, provide ium-copper compound that becomes ducting mllterialsca n play a vital role. zero resistance to electrical current­ superconducting at a temperature of India also has a fusion program at room temperature. 90- 105°K. aimed at preparing the groundwork for The committee was launched by Scientists at the Indian Institute of future adoption of fusion power tech­ Prime Minister Rajiv Gandhi and will Science, led by Prof. C.N.R. Rao, nology, and for this, development of be headed by Prof. M.G .K. Menon, a published studies documenting their superconducting materials will be es­ particle physicist and scientific advis­ observation of a transition to super­ sential. er to the prime minister. The decision conductivity by lanthanum-based It is too early to predict whether to form such a committee stems from compounds at about 40-500K, and at the yttrium-barium-copper-oxide can the worldwide attention that super­ 85-1000K by yttrium-based com­ be drawn into wire or not, or how good conductivity research work has drawn pounds. In early May, Dr. L.S. Sri­ a carrierof high-voltage electrical cur­ over the last year. Last year's discov­ math, director of the Indian Institute rent it might be. Future developments ery by two scientists at the IBM Zurich of Technology (Madras), reported that will answer these questions. Mean­ Research Laboratories of a rare-earth his institution had developed new al­ while, the Indian program will be tar­ ceramic compound that becomes su­ loys based on rare-earth elements geting the fabrication of high-field perconducting at 30° Kelvin ( - 243° which exhibit zero electrical resis­ magnets using these materials. Celsius) triggered off an interconti­ tance at 95°K. The superconductivity mission is nental race to find new compounds The biggest news was reported on an important challenge. The country's which can become superconducting at May 29 when scientists at the National scientific establishment is in a crisis, higher and higher temperatures. Al­ Physical Laboratory announced they since its domination by a handful of ready a good deal has been achieved, had observed a superconducting tran­ bureaucrats and lack of connection and now scientists claim that com­ sition at + 26°C in some multiphase with the economic and social fabric of pounds can be made which allow elec­ doped yttrium-barium-copper-oxide the country-inshort , its lack of crea­ tric current to pass at no loss at a tem­ compound. The most important test tivity and accountability-has been perature of about 900K. will be to see if the phase identifiedas questioned. To succeed it will be nec­ While the findings of the Western the superconducting phase is a stable essary to encourage scientific ingenu­ scientists and Japanese researchers one. ity, keeping the goal in clear focus. have been well publicized, the Indian The NPL researchers caution that Moreover, Indian industry is lag­ work has not caught the attention of the observation of the transition itself ging far behind. If India wants to ben­ the Western press, though the results does not imply superconductivity at efit from such high-tech research as have been remarkable. All four insti­ room temperature: It only gives a clue superconductivity, it must push indus­ tutions-Bhabha Atomic Research that a phase exists within the multi­ try to a level where the research results Center (BARC) in Bombay, the Indi- phase sample that could be supercon- can become a commercial reality.

56 International EIR June 12, 1987 Report from Paris by Yves Messer

French take leadership against terror FARL's Georges Ibrahim Abdallah Chirac's government is willing to internationalize cooperation and Anis Naccash, and ASALA's Varoujian Garbidjian. The real reason against Moscow's "low-intensity waifare ." is that the Soviet Union seeks to force France to withdraw from the Middle East. The communique, sent the same way as before the September bomb­ ings, threatened a new "hot summer." Although the threat is being taken se­ F rom the March and September The Soviets, who recently offi­ riously, the French police have taken 1986 terrorist acts that threatened cially asked EC officials if they could apart various terrorist networks that France's national security, to Feb . 21, be included in this matter, were not took part in the September bombings 1987, when French police dismantled invited by Pasqua. that killed 15 and injured 250. the Direct Action terrorist group, one While little filtered through the of­ On March 21, when the DST (in­ can say that Gaullist Interior Minister ficial statements, the clear intention ternal security) arrested a pro-Iranian Charles Pasqua took in hand his office was to set up a permanentcooperation Tunisian network led by Fouad Ali most effectively, responding to the war structure of exchanges of information Saleh and Mohamed Mouhajer, this that was declared on France and even (France reportedly presented a 200- made possible the arrests of two Mo­ turning the tables. French police are name list of the most-sought terror­ roccans on April 20 and four Le­ dismantling terrorist networks at the ists) and notably by establishing a "red banese, one Senegalese, and one Al­ unheard-of rate of one or two a month. telex," capable of transmitting pho­ gerian a week later, all of them likely These successes were crowned tos, and which avoids the usually slow involved in the CSPPA attempts. This when, at the personal initiative of diplomatic channels, too slow to deal also led to the discovery, May 26, of Charles Pasqua, Paris became the one­ with internationally coordinated ter­ an arms cache in the Fontainebleau day world-capital of the war on terror­ rorism. forest containing 8.8 kilos of C4 plas­ ism and drugs, on May 28. It was the Pasqua's purpose is clearly to re­ tic explosives, the same material used first time ever that countries like the verse the "low-intensity" warfare by the CSPPA in Paris, and 11.5 kilos United States, Canada, and Japan met which Moscow is waging to under­ of narcotics, made of a mixture of her- with the "Trevi" anti-terrorist study mine Western governments' resis­ 0in morphine and caffeine, typical of ' group of the European Comunity, tance . He had declared during winter the Syrian-controlled Bekaa region made up of officials of West Ger­ 1985 to the Politique Internationale traffickers-proving Iranian-Syrian many , Italy, Belgium, Denmark, review: "In Europe, the U.S.S.R. uti­ cooperation in the CSPPA actions. Great Britain, and France. lizes force, in the East, in order to put This was a result of American-French The European police services had down the independence movements of cooperation, as the United States pro­ already moved to reinforce interna­ its satellite countries; it develops psy­ vided a sophisticated electronic mass­ tional cooperation . Immediately after chological action, in the West, to un­ detector called "Doppler." the discovery of Direct Action docu­ dermine the defense reflexes of the free Another example ofsuccessf ul in­ ments in the Indres-et-Loire region , a countries, notably in fostering pseu­ ternationalcoopera tion, is the French­ confidential meeting was held in mid­ do-pacifist and anti-militarist move­ Spanish moves on the Basque terror May with West German , Italian and ments." group ETA . Right after the Paris sum­ Belgian anti-terrorist officials at Pas­ This meeting was well timed, mit, Pasqua's security undersecretary qua's ministry, where the May 28 starting three days after the latest threat Robert Pandraud flew to Spain with meeting also took place. The ministry by a Mideast terrorist group called high officials of French Foreign and was turned into a fortress as 1 ,800po­ CSPPA (Solidarity Committee for Internal secret services, the DGSE and licemen strengthened the 2,500 al­ Arab and Mid-Eastern Political Pris­ DST, to meet their colleagues Interior ready deployedthoughout the city. The oners), which claimed all the terrorist Minister Jose Barrionuevo, Security U.S. delegation was officially com­ actions that shook France's institu­ Minister Rafael Vera, Guardia Civil posed of Attorney General Edwin tionsin 1986. The official demand was general director Luis Roldan, to pi­ Meese and Ambassador Bramer. that France release three terrorists, oneer the "red telex" system.

EIR June 12, 1987 International 57 Andean Report by Val erie Rush

Narco COUp brewing in Colombia of Cattle Growers (Fedegan). Just a Will the narcos' anti-communist 'commonfront' fool the nation month earlier, public charges had sur­ faced that cattle growers across the into backing their drive for total power? country were selling their ranches­ at phenomenal profit-to drug-traf­ fickers anxious to launder their narco­ dollars and possess growing chunks of C olombia's powerful drug-traf­ Santofimiowent on to demand that Colombian territory. And in good ficking clans are using the spiral of the ruling Liberal Party take a stand company with Lucena Quevedo and violence in the country , which they against that nemesis of the drug-traf­ Fedegan was a clique of labor leaders, created, to catapult themselves into fickers, the U.S.-Colombia Extradi­ headed by UTC federation president power. Kidnapings of businessmen, tion Treaty, which he termed a viola­ Victor Acosta, who have been ac­ murders of priests, massacres of peas­ tion of national sovereignty and crass cused of working jointly for Project ants, and ambushes of police and mil­ propitiation of the United States. Democracy's American Institute for itary patrols, in most cases carried out The senator's unabashed public Free Labor Development (AIFLD), either by drug-addicted street crimi­ sentiment in favor of the drug traffick­ and for the mob. nals or narco-terrorist armies in the ers, while identical to that of the Lib­ The surfacing of the mafia's anti­ countryside, have created a panicked eral national executive (DNL), none­ communist crusade is timed to coin­ environment into which the narcos and theless provoked a hasty disavowal cide with a number of major political their political allies have stepped, from that body of mafiosi. Following attacks on the Colombian armed draped in their best anti-communist a lengthy meeting with presidential forces, assaults designed to drive mil­ rhetoric. adviser Carlos Ossa Escobar, the DNL itary elements horrifiedby the spread­ On May 26, the drug mafia'snot­ publicly declared that the opinions of ing bloodshed into a new version of so-secret partners in the political world individual members on national or in­ the mafia-sponsored paramilitary death gathered to offer themselves as a ternational policy did not commit the squad known as the MAS (Muerte a "common front for national salva­ DNL as a whole. Clearly, the heavy Secuestradores, or Death to Kid­ tion." Leading the pack was Liberal hand of the presidency had squelched napers). Aiding such a scheme Party senator Ernesto Lucena Queve­ that particular bid by the mob to "go which-should it succeed-will ulti­ do , the man who made his reputation pUblic." mately carry the drug mob into power, as the mob front-man who tried to However, that heavy hand has not is the Barco government's own un­ frame the late Justice Minister Rodri­ come down nearly often enough. Not willingness to unleash its armed forces go LaraBonilla for corruption in 1983. a peep was heard when Santofimio's in a full-scale military war on drugs. The frame did not stick, however, and man Lucena Quevedo addressed a May Especially discouraging to anti­ when Lara changed the rules of the Day rally by calling for an end to the drug forces within the military , was game, and began to name the names extradition treaty. Nor has a single the government's disgraceful treat­ of people and companies "above sus­ protest been uttered at the mob's latest ment of its most successful anti-drug picion," the mob killed him. creation, its "common front" against director, police Col . Jaime RamIrez. Lucena Quevedo is also the right­ communism. Lucena Quevedo's RamIrez had been scheduled for pro­ hand man of Liberal Party executive opening remarks to the May 26 gath­ motion to brigadier general when he member Alberto Santofimio Botero, ering of mafiosi odds-and-ends blamed was assassinated by mafia hit-men in the Tolima-based gangster whose po­ the country's ills on the Soviet Union, 1986. His posthumous promotion was litical machine elected cocaine czar and urged the creation of a common denied and, in response to protests Pablo Escobar, now a fugitive from front based "not on resignation, but on from his widow, the defense ministry justice, to the Colombian Congress. action." Also addressing the gathering replied that the anti-drug hero had not Santofimiotriggered a scandal in early was Lucena's Quevedo newest part­ died in combat! If fighting Dope, Inc . June, when he issued a public chal­ ner, Marcelo Torres, a leader of the is no longer definedas combat in Col­ lenge to the Barco governmentto end maoist MOIR. ombia, then Santofimio and Co. will its anti-drug war and spend the money Yet another attending Lucena have no trouble riding into the presi­ instead on eradicating "absolute pov­ Quevedo's fest was Jose Raymundo dency on the next wave of "anti-com­ erty ." Zambrano, the head of the Federation munist" violencia.

58 International EIR June 12, 1987 Report from Rio by Silvia Palacios

Project Democracy gang in Brasilia country over to the foreign creditors . Brazil has its own "secret government" working to undermine Netto's technocrats are now re-taking the finance miniStry under Funaro's economic sovereignty-andguess who's protecting it? successor Bresser. Also forming part of the group around CACB is the National Banking Federation, which orchestrated the re­ T he Brazilian connection to the Ir­ vate Enterprise (CIPE). CIPE is fund­ bellion against a government decree angate scandal has been uncovered by ed by the U.S. Chamber of Commerce to lower the high interest rates stran­ EIR in the operations of a secretive and National Endowment for Democ­ gling the productive sector; and the group aroundthe National Constituent racy-the public front for North's Brazilian Rural Society, headed by Assembly, where a new Brazilian Project Democracy! Flavio Tavares, which in tum shelters Constitution is in the making. The cit­ The links between CACB and the Rural Democratic Union (UDR). ed groupis plotting to write out of the CIPE are overt. In a Feb. 4, 1987 bul­ The UDR functions as a private army new Constitution the state monopolies letin of CIPE, the institute admits to of the latifundists against agrarian re­ over petroleum and other natural re­ having helped sponsor at least two form, and receives financingfrom the sources which are the pillar of Brazil­ seminars in Brazil, which have served fanatical Nazi sect Tradition, Family ian economic sovereignty. both as a channel for the International and Property (TFP). Since the fall of Finance Minister Monetary Fund's "free enterprise" The case of Sen. Roberto Cam­ Dilson Funaro in April, Brazil's anti­ prescriptions, and to recruit followers pos-without question, the leading nationalists have sped up their efforts to Project Democracy. light of the CACB group-is the most to abolish the large state companies. The CIPE bulletin stated that illustrative of the kind of political net­ Their specialtarget is the oil company CACB will direct "explanatory ses­ work that created the Project Democ­ Petrobras, symbol of Brazilian nation­ sions on the legislative process, leg­ racy monstrosity in the first place. alism. Their sponsors are none other islative cycle, organizing program and Campos was Planning Minister in than the "Project Democracy" crowd regulatory lobbying. Since Brazil's 1964-67, an ultra-liberal from the around Col. Oliver North, formerly of Constitution is still in its formative school of Milton Friedman and Fried­ the U.S. National Security Council, process, CACB views these seminars rich von Hayek. Before that, he was a who ran a parallel government to im­ as a timely way to demonstrate the communist from the school of 1920s pose their totalitarian vision of "de­ value of private sector participation in Soviet leader Nikolai Bukharin. In his mocracy" on the world. the legislative process." "anti-communist" conversion, Cam­ According to a report in Jornal do A powerful group has been gath­ posabandoned neither Karl Marx nor Brasil of May 27, a group of ultra­ ering around the institution of the his hatred forthe nation-building pol­ liberals has been secretly meeting to CACB since before the 1986 elec­ icies of the French 17th-century discuss plans for de-nationalizing oil, tions, with an eye to gaining seats in statesman Colbert, often called mer­ in a sumptuous palace in Brasilia made the Constituent Assembly. One im­ cantilism. available by the Confederation of Bra­ portant figure in this group is Con­ In an interview with Playboy, zilian Commercial Associations gressman Afif Domingos, former Campos says: "Best was the interpre­ (CACB). Among the group, to men­ president of the Sao Paulo Commer­ tation of the historic evolution of the tion a few, were Liberal Party deputy cial Association, whose Liberal Party economy . . . that vision of Marx is Afif Domingos, PDS deputy Amaral is closely linked to the Peruvian Insti­ dramatically correct." Attacking Col­ Neto, senator Roberto Campos, and tute for Libertyand Democracy (ILD), bert as an influence which must be representatives of former Finance a key Project Democracy thinktank in destroyed, Campos called mercantil­ Minister DelfimNetto . South America. ism "a residue of colonial traditions As it turnsout , the CACB, chaired Then, of course, there is Con­ from Spanish and Portuguese culture, by businessman Amaury Temporal, is gressman Delfim Netto, admirer of both mercantilist in nature, which the Brazilian arm of Project Democ- . Hitler's finance minister Hj almar stipulate a high level of state interven­ racy's "private enterprise" mouth­ Schacht, who as Brazil's finance min­ tion, of protectionism. This is the un­ piece, the Center for InternationalPri- ister during 1983-84, handed the fortunate tradition of Latin America."

EIR June 12, 1987 International 59 International Intelligence

the deterrent effect of theater nuclear weap­ question of what is to become of Moscow's B'nai B'rith in Canada ons, Rogers replied: "There's no way ... "Islamic card"-the exploitation of Soviet that NATO can ever strengthen its conven­ in 'stop LaRouche' drive Muslims and Islamic networks abroad, for tional forces" to the point that it could make geopolitical advantage. Aliyev was born a up for the loss of the nuclear weapons. Shi'ite Muslim and made his career in the Frank Chalk, chairman of B'nai B'rith of "Within our equation of deterrence, there KGB, before shifting to government and Canada's (BBC) social action committee, must always be the nuclear weapon. Be­ party leadership. He has overseen the de­ has launched a campaign in Canada to cause the Soviets must be faced with the ployment of the U.S.S.R. 's assets through­ counter the growth of support for Lyndon ultimate risk ...that 's the one thing [Mos­ out the Middle East, particularly in funda­ LaRouche, the Baltimore Jewish Times cow 1 fears ." mentalist and terrorist milieux. Igor Belyay­ magazine reported on May 29. BBC is con­ General Wolfgang Altenburg, former ev, a Soviet think-tanker and intelligence trolled by Edgar Bronfman, head of the chief of staff of the German Armed Forces operative specializing in North Africa and World Jewish Congress and magnate of the and now head of the NATO Military Com­ the Middle East, recently penned a two-part Seagrams liquor empire . BBC identifies as mittee, took a similar position, in an inter­ series in the weekly Literaturnaya Gazeta. its target the Party for the Commonwealth! view with the Italian daily Corriere della which attackedthe Khomeini brand of fun­ Parti de la Republique du Canada, which is Sera published June 3. "If we give these damentalism with unusual acidity, and run by LaRouche associates. weapons up," said the general, " ...Ger­ launched a campaign against the exploita­ On May 28, the Canadian Broadcasting many would become a nuclear battlefield. tion of upderground Islamic networks in the Company (CBC) featured a 20-minute spe­ Not only Germans are worried by this." Soviet Union, by "foreign secret services." cial entitled "Who's Behind the Common­ Cruise missiles will never make up for wealth Party of Canada." The broadcast Pershing lIs, he said, and the "double zero centered on an interview with Arthur Heiss, option" will "reduce the deterrence" level. former director of the Canadian Anti-Defa­ New Zealand passes mation League of B'nai B'rith. Heiss re­ nuclear-Jree-zone plan cently formed a new organization, legally separate from the the tax-exempt ADL, Soviet 'Muslim card' New Zealand's parliament on June 4 passed solely to run operations against LaRouche the New Zealand Nuclear-Free-Zone pro­ without compromising the ADL's status as boss vanishes posal, a bill that bans nuclear weapons from a charity . New Zealand. A key plank in the platform The CBC, a government-owned"crown Geidar Aliyev , the Soviet Politburo member of the governing Labour Party, the move corporation," is directed by Jean Louis Gag­ and firstdeputy prime minister, droppedfrom Sunday Times tears up a host of security relationships in non, who was recruited into wartime British sight in early May. The of the area. It passed over the objections of the intelligence from the Quebec Communist London relayed reports on May 24, that Ali­ United States and Australia. Party , by Donald Maclean, who subse­ yev had suffered a heart attack on May 10 quently "defected" to the Soviet Union. This or 11. Afterdiplomatic meetings with dele­ The bill makes it the responsibility of ADL-CBC combination is precisely the same gations from Ethiopia, in March, and Yu­ the prime minister to approve or disapprove group now denouncing the use of the Cana­ goslavia, in mid-April, Aliyev was last seen visits to New Zealand, based on the convic­ dian Arctic by U.S. submarines (see article, atop the Lenin mausoleum in Red Square , tion that the ships or aircraft of the other page 45). reviewing the May Day parade . country do not carry nuclear weapons. On May 14, Izvestia published a reso­ "This is a watershed piece of legisla­ lution of the Communist Party's Central tion," Prime Minister David Lange told par­ commanders Committee Party Control Committee, on liament. "This government is proud that for NATO "serious shortcomings" in the training of the firsttime in 40 years, New Zealand has oppose zero-option deal skilled workers and in vocational education made a fundamental reassessment of what in general-defined as a priority for eco­ constitutes our security. " General Bernard Rogers, outgoing NATO nomic and military manpower programs­ Following the vote , Labour members of Supreme Allied Commander for Europe in Aliyev's native republic, Azerbaijan. The parliament sent out invitations to a party to (SACEUR), attacked the zero-option plan minutes of recent Politburo meetings have celebrate their success. "I guess Neville for withdrawing nuclear missiles from Eu­ criticized other areas where he has had par­ Chamberlain had some drinks when he came rope , in an interview on the McNeil-lehrer ticularresponsibility, such as retail trade and back fromEurope before the Second World News Hour television program June 1. transportation. War and talked of peacein his time," quipped Asked how much NATO would have to The possibility of a shift in Aliyev's opposition National Party leader Jim Bol­ strengthen its conventional forces to equal powerbears close watching, in view of the ger. "I don't doubt they toasted the success

60 International EIR June 12, 1987 Briefly

• RICHARD BURT, the U.S. am­ of that venture." He noted that "the Labour arepushing their tuning up to A = 450 cycles bassador to the Federal Republic of Party can sing the red flag this evening," per second. Classical tuning, used by the Germany, invited a delegation of because no matter what they thought they early 19th-century composers, set C at 256 prominent members of the Green were doing, "they just sold out New Zea­ cycles, placing A at 427-432. This effort to Party for lunch at the embassy May land." achieve a "brilliant" tone distorts the point 29. The Green delegation included at which singers shift from one register to Otto Schily, AlfredMechtersheimer, the next, ruining voices and making it im­ and PetraKelly . Burt surprised guests possible to perform classical works as the with the disclosure that he has known Mexico's PA N in violent composer intended. Petra since the two went to the same "We are working today with the highest clashes with police college in the United States. tuning in music history," Domingo said. "And the singing pitch is getting higher and The National Action Party (PAN), the in­ • REVEREND MOON'S Profes­ higher ....I'm lucky I built my register surgent grouping of Nazi-communists and sors' World P4:ace Academy will be with care." drug traffickers supported from the United holding an international meeting in States by the fundraising empire of "Project Manila, on the subject of China, in Democracy"and Carl "Spitz" Channell, has August. gone on a rampage against the Mexican state . Soviets attack Va tican According to the Mexico City daily Excel­ • WHY DID Observer/Lonrho sior of June 3, there have been three recent on millenary celebration multibillionaire Tiny Rowland pro­ violent incidents between PAN groups and vide bail moneyfor central Guinness­ police, which have left at least one dead and The Communist Party newspaper of Lithu­ gate protagonist Ernest Saunders? a dozen seriously injured. ania, SovetskayaLitva, has charged the Vat­ British sources say: Look at Row­ In Parral , 250 km south of Mexico City, ican with trying to "give a pure political land-Saunders contacts in Switzer­ anti-riot commandos of the judicial police orientation" to the 1988 millennium cele­ land. drove some 20 PANistas out of the mayor's bration of the Russian Orthodox Church, office, which they had seized on June 1. A and with "falsifying the events concerning • REPRESENTATIVES of the federal deputy and former PAN mayor were the 1 ,OOO-year celebration." nominally conservative Hanns Seidel beatenand hospitalized, together with seven These outbursts refer to the Pope's em­ Foundation in Munich have just com­ other PANistas. phasis on the Westernizing role of Saints pleted a trip to Moscow. In Ciudad Juarez, PANista Hernandez Cyril and Methodius, who brought Christi­ Grijalva died from blows received during a anity to the Slavs, and on the tendencies in • JULIO FEO, special adviser to confrontation with municipal police, over the Ukrainian Church that support the West­ Spain's Prime Minister Felipe Gon­ the PAN's demand for the firingof the may­ em doctrine of the Filioque, the essential zaIez and Spanish intimate of lran­ or, who is a member of the PRI, Mexico's difference between WesternChristianity and gate participant Michael Ledeen, has traditional ruling party. the mystical tradition ofthe EasternChur ch. announced that he is leaving his job, Finally, in the capital of Chihuahua, the These Ukrainian currents were crushed by citing "personal reasons. " president of the PAN 's municipal commit­ Muscovy shortly beforethe fall of Constan­ tee occupied the governor's office and at­ tinople in 1453. • PUGWASH CONFERENCE tacked police sent to oust them. The upcoming celebrations signify the officials spent one week in Poland, union of the political and religious leader­ from May 20-27, for strategic meet­ ship of the Soviet Union, under the Russian ings on East-West affairs. Te nor complains of Orthodox doctrine that Moscow is destined to become the "Third Rome." • CARLOS LEHDER, the Co­ high orchestral tunings Meanwhile, the Soviet embassy in Bonn lombian narcoticskingpin facing trial held a reception at the end of May for lead­ in Miami, is seeking to invoke the "We singers are having a terrible time be­ ing Church figuresfrom West Germany, to example of Maj.-Gen. (ret.) Richard cause of the high tuning we have to work tell them about the preparations for the mil­ Secord in refusing to tum over infor­ with," says world-famous tenor Placido lennary celebration. Soviet diplomat Gen­ mation about his offshore bank ac­ Domingo, in an interview to the German nadi Yelisaryev said that "religion and the counts. He is being fined $500 aday daily Die Welt published June 1. churches in the U.S.S.R. play a very impor­ for contempt of court for refusing the Domingo was referring to the fact that tant role in the blossoming of the Socialist information. many opera houses in Europe, for example, Motherland. "

ElK June 12, 1987 International 61 �TIillNational

Reagan sides with LaRouche on AIDS testing by Kathleen Klenetsky

President Reagan took an important first step toward formu­ of marriage licenses, it might prevent at least some babies lating an effective policy for dealing with the AIDS disaster, from being born with AIDS." by calling for a vastly expanded program of "routine" HIV Reagan appealed to AIDS carriers and others to recognize testing May 31, in his firstmajor policy statement devoted the "moral obligation not to endanger others ." If a person has exclusively to the AIDS epidemic. reason to believe that he or she may be a carrier, "that person Speaking on the eve of the third international AIDS con­ has a moral duty to be tested for AIDS ," he said. "Human ference in Washington, the President warned that the disease decency requires it. And the reason is very simple. Innocent is "surreptitiously spreading throughout our population," since people are being infected by this virus, and some of them are most infected individuals don't know they carry the virus. going to acquire AIDS and die." Because of this deadly lack of knowledge, he said, testing Vice-President George Bush signed on to the President's must be significantly expanded: "It's time we knew exactly policy in an address the next day to the opening session of what we are facing." the international AIDS COl :rence. "AIDS is spreading and Reagan delivered his speech to a $lO,OOO-per-plate killing in every cornl:r of the world," he said. "It does not Washington fundraiser sponsored by the American Medical discriminate . It j, an equal opportunity merchant of death .... Foundation for AIDS Research (AMFAR), a group headed Ultimately, we must protect those who do not have the dis­ by Liz Taylor and financedby Soviet agent Armand Hammer. ease. Thus, we have made the decicion that there must be Reagan drew boos-and some applause-from his audience more testing." when he announced that he has decided on the following measures: LaRouche policy wins out On the federal level, the President disclosed that he had By firmly endorsing widespread AIDS testing, the Pres­ requested the Health and Human Services Department to add ident has resolved the bitter factional battle that has been the AIDS virus to the list of contagious diseases for which raging within his administration over how to deal with AIDS. immigrants and aliens seeking permanent residence in the That battle has pitted a vocal group, led by Surgeon General United States can be denied entry. He said that he has also C. Everett Koop, HHS representatives, and the Centers for asked the Department of Justice to "plan for testing of all Disease Control, which has promoted sex education and con­ federal prisoners ," and that, in addition, he has requested a dom use, against Secretary of Education William Bennett review "of other federal responsibilities, such as veterans and his allies, who have urged mandatory testing to stem the hospitals, to see if testing might beappropriate in these areas ." epidemic's wildfire spread. Reagan also said he wants to encourage the states to Reagan's embrace of testing also means that he has effec­ expand their AIDS testing, to include routine testing for those tively adopted, at least in part, the approach to AIDS advo­ who seek marriage licenses and for those who visit sexually cated by EIR founder Lyndon H. LaRouche. LaRouche was transmitted disease or drug-abuse clinics, and to require test­ the first prominent political leader in the United States to ing for prisoners. identify mandatory AIDS testing as a crucial component in "Not only will testing give us more information on which the battle against the disease. to make decisions," the President declared, "but in the case In formally declaring his candidacy for the 1988 presi-

62 National EIR June 1 2 , 1987 dential nomination on Oct . 4, 1985, LaRouche identified homosexuals demonstrated against his policy near the White AIDS as the leading threat to the continued survival of the House. Sixty-four protestors were arrestedby police wearing American-and world-population, and called for the im­ rubber gloves for protection. mediate implementation of public health measures, including Moreover, EIR has received information suggesting that testing, as the first line of defense against the epidemic's the CDC is quietly lobbying state governments to reject Rea­ onslaught. LaRouche was promptly labeled a "fascist" who gan's proposal for expanded testing. The state of Virginia wanted to "lock up homosexuals in concentration camps," has already announced that it will reject the President's ad­ by various liberals. vice. LaRouche's policy prescriptions were subsequently in­ Nevertheless, as AIDS spreads ,into the non-high risk corporated into Proposition 64, a referendum urging the ap­ popUlations, popular demand for mandatory testing and other plication of standard public-health measures to the AIDS public-health measures to stop the dis¢ase is growing by leaps crisis, which appeared on the ballotin Californialast Novem­ and bounds. A recent ABC poll showed that 90% of Ameri­ ber. Prop 64, or the "PANIC" initiative , as it was known, cans support some form of mandatory testing. As President was defeated by a lavishly funded campaign of lies and slan­ Reagan's domestic policy adviser, Gary Bauer, told the June ders orchestrated by AMFAR -the same group before which 1 Wall Street Journal: "Not only has a consensus developed Reagan unveiled his pro-testing policies May 31. During the in this administration on this idea of routine testing, but I months preceding the November vote, AMFAR president think a consensus is building in the medical community, too. Dr. Mervyn Silverman had issued one denunciation upon Six months ago this might have been considered a right-wing another against Prop 64, charging that its backers were ex­ position, but that's changed." tremists and that mandatory testing and related measures The AIDS issue has also come to dominate the 1988 were unnecessary . presidential elections-a development predicted by La­ For the President to choose AMFAR as the forum for Rouche in 1985. As a campaign issue, AIDS is "like molten declaring his support for expanded AIDS testing is political­ lava, very hot and out of control ," Democratic pollster Peter ly-as well as medically-significant. Hart told the June 1 issue of USA Today . AIDS has rapidly If the President really wants to stop AIDS, his next step become "an important, second-rank issue , just behind the must be to adopt the rest of LaRouche's policy: a national economy and ahead of foreign policy." commitment, amply funded, to a "Biological Strategic De­ Democratic presidential candidate Bruce Babbitt told the fe nse Initiative," which will explore the frontiers of science same newspaper that the AIDS issue has become "very in­ to develop new treatment and ultimately, a cure , for the virus. tense. With a large group, it's the number-one issue. I hear In his speech to AMFAR, Reagan congratulated his admin­ about it as much in Phoenix as in New York." According to istration for planning to spend $1 billion next year on AIDS . California pollster Charles Rund, "By this time next year, But this is woefully inadequate to the task at hand, especially there will probably be 100 ,000 cases nationally, and every­ given that only $4 13 million of this figure will be allocated one's going to know someone who's been touched by it. That to research. forces it into the mainstream." "It's as emotional as abortion, and it's still unfolding," says Bob Goodman, a GOP consult­ Controversy ant. "When the three hospital workers got it from handling Predictably, Reagan's speech has enraged the homosex­ blood, it was a real bombshell in terms of propelling the ual lobby and the ACLU types, who have insisted, against issue. People said it wouldn't happen that way." all reason, that mandatory testing, contact-tracing, and other The May 31 London Sunday Times made a similar as­ tried-and-true methods for stemming epidemics cannot be sessment: "There is now strong pressure for some degree of permitted in the case of AIDS, because they infringe on compulsory AIDS testing," in the United States, as "public privacy and civil liberties. fears have ...increased ." "I find it very distressing that the administration has Revelations coming out of the international AIDS con­ reached a conclusion that is contrary to the best public-health ference that nearly one, in 30 American males between the thinking in this country," Kristine Gebbie, chairman of the ages of 20 and 50 are carrying the virus, are sure to magnify AIDS Task Force for the Association of State and Territorial those fears , and spur the movement toward testing and related Health Officers complained to the June 1 Washington Post. public-health measures. "I am very concerned that they're using 'routine' to mean Reagan's shift to endorsement of testing will have inter­ 'mandatory,' and I really object to the lack of informed con­ national ramifications. AIDS was already slated to be a top sent." Jeffrey Levi, executive director of the National Gay agenda item at the Venice summit June 8-10, and the Presi­ and Lesbian Task Force, termed the President's speech a dent's May 31 speech guarantees that mandatory testing will "typical Reagan administration response. Instead of showing be debated there. Should the leaders ,of the other major in­ leadership and demonstrating how this epidemic can really dustrial nations agree that widespread testing must be imple­ be contained, he's following the simple path." mented, the outlines of a potentially wJinning strategy against The day after the President spoke, a large contingent of AIDS will begin to emerge.

EIR June 12, 1987 National 63 Iran-Contra Scandal

Elliott Abrams disgraces himself; Will Shultz be next? by Joseph Brewda

Assistant Secretary of State for Inter-American Affairs Elliott committee. Abrams claimed that the Restricted Interagency Abrams in the first week of June virtually assured himself of Group (RIG) which he chaired, which included Lt. Col. becoming the latest victim of the Irangate cleanout of U . S. Oliver North, and which has been repeatedly identifiedas the intelligence, �y his outrageously lying testimony before coordinating agency of U.S. aid to the Contras, had nothing congressional Iran-Contra hearings. Abrams, who has played to do with aid to the Contras. Abrams made this assertion a key role in coordinating military aid to the Contras and despite the fact that RIG had beencreated by his predecessor, related incompetent policies since 1981, protested that he Thomas Enders, precisely for this purpose. knew nothing of U.S. government operations in Central This is the same character who had earlier admitted that America. In fact, any astute reader of even the EasternEstab­ he solicited $10 million in contributions from the Sultan of lishment press would know far more than the assistant sec­ Brunei foraid to the Contrast but swore that he had mistak­ retary professed to know. enly given the Sultan the wrong Swiss bank account number. Abrams's sworn testimony followed by one week that of thus leading to the otherwise inexplicable loss of the funds. Lewis Tambs, the former U.S. ambassador to Colombia and When a C- 123 cargo plane piloted by former CIA oper­ Costa Rica, who credibly reported that Abrams had ordered ative William Sawyer was shot down over Nicaragua on Oct. various actions which the ambitious assistant secretary now 5 carrying military supplies, leading to the capture of U.S. claims he never heard of. mercenary Eugene Hasenfus, Abrams heatedly denied the Earlier this year, Democratic presidential candidate U . S. governmenthad any role in the Contra supply operation. LaRouche called for Abrams's resignation as a crucial first Later, it emerged, the Restricted Interagency Group, which step in cleaning "Project Democracy" out of the Reagan Abrams chaired, oversaw the U.S. governmenteffort to con­ administration-that is, the "parallel government" that car­ ceal the U.S. sponsorship of the Hasenfus flight. ried out the foreign policy disasters which have been only In his testimony, Abrams confessed that he had misled partially revealed by the Iran-Contra scandal. LaRouche Congress about the U.S. effort to supply the Contras in his commissioned an EIR Special Report, "Project Democracy: earlier statements on the cargo plane crash, but insisted that The 'parallel government' behind the Iran-Contra affair," he had been himself misled by North. published last March, which fully documented Abrams's Abrams also insisted that he simply had no idea that U. S. role. officials were involved in helping with Gen. Richard Se­ The comprehensive report details how the 39-year-old cord's air strip in Costa Rica, used for such flights as Has­ had been installed in his present post by his influential moth­ enfus's. While confessing that such aid "would have been er-in-Iaw, Midge Decter, director of the neo-conservative illegal," Abrams lamely claimed that the air strip, which he Committee for the Free World, precisely to carry out the asserted he was not involved with, "had been presented to disastrous policies which he now feigns ignorance of. me as a private affair." Contradicting the earlier testimony of Abrams bold-faced lying and insolent behavior before Ambassador Tambs, Abrams insisted that "at no time what­ Congress, now offers President Reagan the welcome oppor­ soever" had he instructed Tambs to help the Contras open a tunity to dump him. Since George Shultz has leaped to "Southern Front" against Nicaragua. But former CIA station Abrams' defense in the wake of his embarrassment before chief in Costa Rica, Jose Fernandez, corroborated the Tambs the committee, Shultz has tied his own star to Abrams. Pres­ testimony that Abrams was completely on top of the opera­ ident Reagan ought to take the opportunity to fireShult z, too. tion. In his testimony, Abrams spewed out one lie after another Faced with such dubious assertions, an irate Rep. Lee before a startled, and increasingly enraged, congressional Hamilton commented, "We cannot advance United States

64 National EIR June 12, 1987 interests if public officials who testify before the Congress which he could funnel payments to North . This effort oc­ resortto legalisms, wordgam es, claim ignorance aboutthings curred during the same period that Hakim and Gen. Richard they either knew or should know about, and at critical points, Secord were attempting to open up a new channel to the tell Congress things that are not true ." Iranian government. Congressman Jack Brooks (D-Tex.) told Abrams, "You're either extremely incompetent or ...you 're still deceiving Liman interferes us with semantics ...I wonder if you can survive as assistant Predictably, Arthur Liman, the chief counsel of the joint secretaryof state." Senate-House hearings, took a dim view of Hakim's testi­ Abrams cynically responded: "Fortunately ...I don't mony, seeking to do all that he could to discredit the testi­ work for you. I work for George Shultz and he seems pretty mony. The reasons for Liman's efforts are not surprising. satisfied with the job I've done for him. That makes me very Liman, a decades-long cohort of Zucker, had been installed happy and proud." in his present post precisely to cover up for Zucker and his But the same George Shultz had earlier joined Abrams in associates' real operations. lying that the U. S. government had not overseen the cargo Zucker, Hakim's Swiss-based attorney, was the attorney plane shot down over Nicaragua. of record for every single Swiss account used to divert funds to the Contras or to manage arms sales to Iran. Moreover, More trouble for North and Zucker Zucker was not simply an attorney andbag man, but directed Abrams is not the only one to fear for his career as a result the NSC-sanctioned shipping firmsre sponsible for delivering of testimony before the committee in early June. Among the Israeli, Soviet, and Polish arms to the Contras and to the more interesting developments of the same week was the Iranians. Despite this role, Zucker's name has been largely testimony of Iranian-born gun-smuggler Albert Hakim, who censored from the press, and the hearings, over the last sev­ reopened subjects which had been buried by the administra­ eral months. tion, Congress, and the press. Also not so surprising, the fact that Zucker and chief Directly addressing one of tile crucial features of the counsel Liman were attorneys for RobertVesco and his no­ lrangate deals, Hakim reported that the secret hostage nego­ torious Investors Overseas Services during the same period, tiations conducted last October, were conducted with the has been largely ignored. Another attorney for Vesco at the November election in mind. Oliver North "wanted to gain time, Kenneth Bialkin, is currentlythe counsel to Saudi arms­ the release of the hostages to enhance the position of the merchant Adnan Khashoggi, who dealt with North and Hak­ President" before the elections, Hakim reported. "The prime im in supplying Iran. Vesco has gone on to become the objective at the time was to support the President . . . or the cocaine-smuggling kingpin of Havana. with a heavy involve­ Republicans in the elections." Hostage David Jacobsen was ment in supplying arms to both the Contras and their alleged freed by Iran two days prior to the election, in pursuit of the opponents in the Sandinista government. Northscheme . Early on in the Irangate scandal, evidence had emerged The Intelligence Oversight Board that Carl Russell "Spitz" Channell, the homosexual conser­ Outside of the useful cleaning out of social democratic vative fundraiser who laundered National Security Council riff-raff fromthe administration like Abrams , one of the key fu nds to the Contras, had also laundered funds to U.S. Re­ tasks of the committee's investigation, and the more impor­ publican congressional campaigns. Channell has since plead­ tant investigation of Independent Counsel Lawrence Walsh, ed guilty to violating tax laws in pursuit of the NSC schemes. is to address the role of the Intelligence Oversight Board, This is not the only way in which the NSC interfered in which so far has remained untouched. Founded by Presiden­ the elections. EIR has documented that the NSC and the tial Executive Order 12334 on Dec . 4, 1981, the three-man Channell group systematically attempted to undercut fund­ lOB , popularly known as "the three blind mice," is mandated raising for politicalefforts associated with Democratic pres­ to review covert intelligence operations, like North's NSC idential contender LaRouche, and conspired against this pub­ Iran-Contra scheme, for possible illegalities. It was the lOB , lication, to a significantdegree because of its opposition to according to published reports, that on two separate occa­ the administration's Iran and Contra policies. sions provided legal "findings" in response to requests from Moreover, Hakim reported that he had set up a $200,000 Lieutenant Colonel North that legitimized the NSC's Iran­ private fund for Lt. Col. Oliver North, who has largely been Contra program. portrayed in the press as a dumb but patriotic officer. Earlier, In his comments on Elliott Abrams's lies, Rep. Lee Ham­ Contra leader Adolfo Calerohad testifiedthat he had funneled ilton emphasized that the reason for the hearings was "to North $90,000 in blank travelers checks. make the Constitution of the United States work." Such an Meanwhile, congressional witness David M. Lewis re­ admirable intent demands that the committee's next target be ported that he had been appr9ached by Hakim's attorney, the Intelligence Oversight Board, which has made such ob­ Willard Zucker, to find a U.S. real estate company through scenities as Elliott Abrams possible in this administration.

EIR June 12, 1987 National 65 Eye on Washington by Nicholas F. Benton

world oil glut, about 65%, is held by tronauts. Persian Gulf producers, and even cur­ "Next year, the Soviets embark on rent natural trends toward increased the first of a series of four missions to consumption worldwide will push Mars which are scheduled to return a Diplomat blames P. R.C. OPEC to over 80% of its production sample from its surface before the tum capacity within three to five years. of the century. Their space budget, problems on growth "The cushion of supply between greater than the combined costs of our Gaston Sigur, assistant secretary of today's glut and tomorrow's danger­ civilian and Defense Department space state for East Asian and Pacificaffairs , ously tight markets amounts to only activities, has been rising 15% a year, blamed domestic problems in the Peo­ about 4-6 million barrels a day," he and a very large proportion of their ple's Republic of China on "too-rapid said, and any disruption in current de­ program is devoted to military purpos­ development, rather than too-slow liveries immediately causes the cur­ es. They have been conducting their growth," during a speech before the rent cushion to vanish. Given Japan's own SDI for years. The Soviets have National Council for U.S.-China and West Germany's great depen­ never lost track of the fact that space Trade here June 4. He said, nonethe­ dence on Persian Gulf oil, he said, any is the high ground." less, that "u .S. interests are served by disruption "would threaten great eco­ the P.R.C.'s continued commitment nomic damage. Japanese and Euro­ Laxalt settles to economic modernization, internal pean buyers would rush to buy oil reform , and expanded negotiations wherever they could find it. Prices libel suit with foreign countries under the so­ would rise rapidly everywhere. More Former Sen. Paul Laxalt, a probable called 'open door' policy." oil would go onto the spot market. candidate for the Republican presi­ While he noted heightened ten­ Supplies would be restricted to other dential nomination, announced an out­ sions between China and India on the countries, and the United States would feel the effects of the disruption along of-court settlement of his libel suit disputed Himalayan border, Chinese against the McClatchy newspapers at irritation over what they term "resur­ with Japan and Europe." a press conference here June 4, de­ gent Japanese nationalism," and on­ claring the joint statement agreed to going Sino-Soviet relations aimed at by the two sides "a complete vindica­ reducing tensions between those two Warning of Soviet tion" of his four-year-long legal fight countries, he said he felt that the against C.K. McClatchy, the publish­ P.R.C. is "carving out an independent mobilization for space er of the Sacramento Bee. path," and will "not repeat the errors Thomas G. Pownall, chairman and The Bee published an article inti­ of the 1 950s , when it aligned itself CEO of MartinMarietta Corp., warned mating that Laxalt was involved in totally with the Soviet camp." of the massive Soviet build-up in skimming profits from a gambling space, and called for the United States house his family owned in Nevada. Oil rep warns of to "restart the engine" of its space pro­ Laxalt claimed the Bee spent millions gram to regain leadership in the inter­ of dollars trying to substantiate its sto­ Persian Gulf cutoff national space race. ry, and if it had been able to , it would The president of the American Petro­ Speaking before the Space Busi­ not have approached him with the of­ leum Institute debunked any notion ness Roundtable here June 4, Pownall fer of a settlement. that protection of the Persian Gulf sea noted: "When we look to see how the However, at the conclusion of the lanes was not in U.S. interests, at a Soviets are doing, we find they cur­ press conference, copies of a state­ press conference here June 4. Charles rently have a space station in orbit, are ment by McClatchy were handed out Di Bona noted that while only 6% of developing a space shuttle, that they at the door to Laxalt's office, in which oil consumed by the United States launch four to five times asmany pay­ the publisher said he stood by his orig­ comes directly from the Gulf, the level loads as we do each year, and possess inal story. is over 1 million barrels per day, high­ far heavier liftcapacity than the United This is not the first time Mc­ er than at the time of the Great Oil States. Soviet cosmonauts have logged Clatchy, a Democrat, has been sued Hoax of 1973. more than 4,200 man-days in space­ for libel for publishing articles with He said the majority of the current almost three times as many as our as- highly charged political implications.

66 National EIR June 1 2, 1987 Elephants & Donkeys by Kathleen Klenetsky

Cuomo too Democratic field. The June 1 New York Times reported that fonner Virginia courts the Russians governorChuck Robb, one of Nunn's Gore isn't the only presidential hope­ biggest boosters, is telling people that ful courting Moscow. New York's Nunn is "clearly moving closer" to a Mario Cuomo, whose activity in the fonnal declaration. One Democratic race seems to increase every time he "insider" told the: Times that Nunn is claims not to be running, embraced "40% in right now." the lie of Soviet glasnost (openness) Nunn is expected to be nudged to­ Gore hits the campaign in a May 28 commencement address ward a declaration at a fundraiser trail-in Moscow to Johns Hopkins University School sponsored by the Democratic Leader­ of Advanced International Studies. ship Council June 8. Nunn and Robb, AnnandHammer 's favorite presiden­ There is an "unprecedented con­ who helped create the "centrist" poli­ tial candidate, Sen. Albert Gore (D­ vergence" of U.S. and Soviet inter­ cy grouping, will be the guests ofhon­ Tenn.), was off to Moscow in early ests, the New York governorcla imed, or at the event, which will be hosted June to avail himself of the advice and and this holds out the possibility of by Democratic Party kingmaker Bob approbation of Soviet officials. He met ending the cold war and the nuclear Strauss, and his pal Dwayne Andreas, with Anatoli Dobrynin, fonner Soviet arms race. the man slated to inherit Annand ambassador to the United States and "For the first time in 40 years," Hammer's mantle as the Soviets' best­ now Central Committee Secretary for Cuomo said, "we face the awesome loved "capitalist." International Relations, on May 28. possibility that Soviet history, our own The Times notesthat the reception Pravda A report on the session history, and the demands of world his­ will offer Nunn a key opportunity to quoted Gore, "Today as never before, tory have conspired to offer us an meet party moneybags. new political thinking is required" on opening to the beginning of the end of both sides to stop the arms race-a this period of constant hostility and fonnulation which led one wag to incipient violence." Celeste inherits wonder whether Gore isn' t short-hand By "convergence," he apparently Hart's zipper problem for Gorbachov. means American willingness to sub­ be Gore promised the Soviets, ac­ mit to Russian domination. While Gary Hart may out of the Demo­ Pravda's cording to report, that the paying lip service to the need for the cratic race, but the "zipper factor" is need to improve Soviet�American re­ United States to maintain its military still with us. Ohio's Gov. Dick Ce­ lations would take "a prominent place strength, Cuomo denounced the Rea­ leste, it seems, has been carrying on a in the U.S. election campaign." gan administration for thinking about lively extramarital love life. 3 Cleveland While in Moscow, Gore also de­ abandoning the so-called narrow According to the June Plain Dealer, livered an address to the seventh con­ interpretation of the Anti-Ballistic Celeste has had at least gress of the International Physicians Missile Treaty. "We cannot insist that three adulterous affairs in the past dec­ ade. Neither Celeste nor his wife Dag­ for the Prevention of Nuclear War, other nations comply with arms-con­ which receives lavish funding from trol agreements that we seek to rein­ mar denied the report; and the gover­ Hammer. terpret to our own benefit," he said. nor told a hastily called press confer­ The speech no doubt pleased his Cuomo did not mention the fact that ence afterthe report appeared, that his Soviet hosts. A fanatic opponent of the Soviets have repeatedly violated personal lifet was no one's business, and that he wouldn't let it affect his the U.S. Strategic Defense Initiative, the treaty and are vigorously pursuing Gore told his audience that the phe� a strategic defense of their own. decision about whether to toss his hat nomenon of "technological and hu­ into the presidential ring. man error" supposedly evidenced in But Celeste's advisers are known the penetration of Soviet air defenses Seven dwarves, plus to be worried that the womanizing is­ by the 19-year-old West Gennanpilot sue will doom his candidacy even be­ Nunn? Mathias Rust; the Chernobyl nuclear fore it's declared-especially since plant disaster; andthe Challenger space Senator Sam Nunn (D-Ga.) is on the Celeste is still tainted by the Marvin shuttle disaster, demonstrated that the verge of making up his mind whether Warner bankscandal which erupted in SDI was a dangerous chimera. to become the eighth dwarf in the Ohio in 1985.

EIR June 12, 1987 National 67 Congressional Closeup by Ronald Kokinda

Senate approves AIDS that there is no cap? Send the bill." terial remains." testing for immigrants Senator Brock Adams(D- Wash.), Hecht pointed out that such a tech­ By an overwhelming 96-0 vote, the who also voted against the firstHelms nological solution would end the div­ Senate acted on June 2 to add the AIDS amendment, said he had "no philo­ isive national conflict over where to virus to the list of dangerous conta­ sophic objection to testing these bury high-level waste. Energy and gious diseases for which immigrants groups, but I do have a practical prob­ Natural Resources chairman Sen. to the United States are tested. lem." "Given limited resources," Ad­ Bennett Johnston (D-La.) recently of­ The vote was on an amendment to ams said he wanted to test higher-risk fered to pay $150 million per year to a the FY87 Supplemental Appropria­ groups first. state which accepted such waste. tions bill, sponsored by Sen. Jesse Although Democrats are sensitive Helms (R-N.C.). On May 21, a simi­ on the)reprocessing issue because the lar amendment offered by Helms, Carterad ministration ended this tech­ which also mandated AIDS testing by Technology could solve nology, Hecht hopes to get hearings states for marriage licenses, had been nuclear waste problem in Johnston's committee. defeated 63-32. Senator Chic Hecht (R-Nev.) intro­ The measure directs the President duced S. 1211 on May 15, the "Nucle­ to act by Aug. 31 to begin testing, ar Waste Reprocessing Study Act of including those illegal immigrants ap­ 1987, " in an attempt to reassert a tech­ Kennedy introduces plying for legal status under the im­ nological alternative to burying the AIDS education bill migration reform program. Testing nation's nuclear wastes. Senator Ted Kennedy (D-Mass.), positive for the AIDS virus will now "My bill would give the National chairman ofthe Labor and Human Re­ be grounds for exclusion from the Academy of Sciences until October sources Committee, introduced S. country. 1989 to report to the Congress on the 1220 on May 15, the "AIDS Educa­ "The people of the United States economic and environmental feasibil­ tion, Information, Risk Reduction, will hold this Congress responsible if ity of a reprocessing program in the Prevention, Treatment, Care, and Re­ we don't do something about it," U.S. ," Hecht said. "In the past, it has search Act." Helms said. been argued that reprocessing was too Kennedy promised on May 15 that Sen. John Danforth (R-Mo.) said expensive. But this was before we he and Rep. Henry Waxman (D-Cal­ that the testing provision was "beyond started to add up the bills for deep if.), who has jurisdiction as chairman dispute." He had voted against the geologic disposal of nuclear waste. of the Health subcommittee in the earlier Helms amendment. This approach is likely to cost our cit­ House, would shortly introduce a sec­ Cost had emerged as the major izens more than $30 billion ....In ond bill on AIDS testing, expected to stumbling block to a broader testing comparison, I am willing to bet that emphasize voluntary testing and strict program, in the May 21 debate. Sen. the pricetag on reprocessing will turn confidentiality. Pete Wilson (R-Calif.) who voted out to be veryreasonable ." This second bill, however, has not against Helms, objected to testing of Besides saving money, Hecht said been introduced, and those who stress marriage licenses applicants for AIDS it would "allow the country to recon­ civil rights for AIDS victims and re­ unless the applicant bore the cost. sider an opportunity to make fuller and ject public health measures, are com­ Senator Danforth asked whether more efficient use of our limited en­ ing under pressure to consider testing spending to meet the AIDS threat ergy resources." "I have recently re­ measures. Not only has the Senate ap­ would be open-ended . "How can we turned from a trip to Europe," Hecht proved testing for immigrants, but an say that we are not concerned about said, "where I saw first-hand a suc­ amendment mandating AIDS tests for the cost?" he asked. "Is there an un­ cessful French program able to re­ immigrants and those seeking mar­ limited claim on the health care dol­ move so much of the dangerous plu­ riage licenses, sponsored by Sen. Jesse lar? Is it absolutely unlimited? Is the tonium from the spent fuel, that only Helms (R-N.C.), was supported by position of the Congress of the U.S. one ten-millionth -of the original ma- nine Democratic senators, including

68 National EIR June 12, 1987 Senate Majority Leader Robert Byrd ate and H.R. 25 14 in the House, the administration request for $9 13.5 mil­ (D-W.V.), and Lloyd Bentsen (D­ proposed moratorium would apply lion in assistance to Turkey, the House Tex.), David Boren (D-Okla.), James only if the takeover attempt "is fi­ Foreign Affairs Committee cut this to Exon (D-Neb.), Wendell Ford (D­ nanced by a loan, a borrowing, or some $569.5 million, of which $490 million Ky.), Ernest Hollings (D-S.C.), Har­ other form of debt." It would not af­ is military assistance, a freeze at FY87 ryReid (D-Nev.), Jay Rockefeller (D­ fect takeovers which are not hostile levels. The committee has refused to W.V.), and Richard Shelby (D-Ala.). and have been approved by the direc­ abandon its so-called traditional 7 to One senator suggested that Ken­ tors of the American corporation. 10 ratio in military assistance to Greece nedy would have to now negotiate with Senate Banking Committee and Turkey. the White House on testing. Chairman Sen. William Proxmire (D­ An amendment by Reps. William Kennedy described S. 1220 as a Wis.) had scheduled hearings to ex­ Broomfield (R-Mich.) and Gus Ya­ bill which would "educate all Ameri­ amine the attempted takeover of Bur­ tron (D-Pa.) furtherrestricts the use of cans about AIDS risks and enable them lington, but the takeover artists re­ U.S.-supplied military hardware on to make informed choices to protect fused to come. "I think the arrogance Cyprus, and the Post Office and Civil themselves; develop care and treat­ of these people is going to make it Service Committee passed H.J. Res. ment networks for people with AIDS easier to sell" legislation, Sanford said. 132, commemorating April 24 as a that are more economical and appro­ "I think once again in history in­ day of national mourningfor the Turk­ priate; and accelerate the search for vestment bankers and their allies are ish massacre of 1.5 million Armeni­ AIDS vaccines and cures by putting galloping wild and out of control," ans during World War I. federal funds to work faster." Kenne­ Sanford said. "In the 1920s, this same Turkey has suspended the ratifi­ dy said federal spending in these areas crowd of people pretty well wrecked cation process oq J . S. use of bases on would double in FY88 to $900 mil­ America. Now again they are getting its territory. lion. out of hand. They are wrecking the The House cuts in foreign assis­ The bill would also set up a nation­ economy. They are destroying com­ tance are included in a bill which is al AIDS coordinator in the National munities. They have and are abolish­ $500 million over the budget previ­ Institutes of Health, and an AIDS ad­ ingjobs all across the nation. They are ously passed. The Senate's budget is visory board whose composition changing the great enterprise of equity another $550 million below the House would have to include an AIDS-in­ to one of debt, contrary to the tradi­ level. Republicans on the committee fected person. Any AIDS research tions of the United States. They are have offered an alternativebudget cut­ funding request would have to be re­ weakening the corporate world by ting $465 million from African devel­ sponded to within six months. substituting debt for equity, moderni­ opment and various U. N. programs , zation, and the capacity for research. and putting the money into assistance Our total national capacity for com­ for countries that have U.S. bases. petitiveness is at risk because of this While the Foreigri Affairs Committee Moratorium proposed kind of greed. And for what?" has markedup the bill, Democrats are on hostile takeovers hesitating to take the bill to the House Spurred by a foreign hostile takeover floor. attempt against Burlington Industries, The budget-cutting at Turkey's Sen. Terry Sanford (D-N.C.) and Rep. Congress cuts expense came under fire by Rep. Jim Howard Coble (R-N.C.) have intro­ arms aid to Turkey Courter (R-N.J.), who also com­ duced the Hostile Foreign Takeover Turkey, a NATO ally which is in­ plained on May 27 that the State De­ Moratorium Act, to halt such takeover creasingly hard-pressed by the Soviet partment is cozying up to the Bulgar­ attempts for six months while the Union, is being given shabby treat­ ian regime, which is being accused of Congress considers a more permanent ment by the U.S. Congress. genocide against a half-million Turks solution. Despite Turkey's military mod­ in Bulgaria, while Turkey is being rel­ Introduced as S. 1264 in the Sen- ernization program, and a Reagan atively ignored.

EIR June 12, 1987 National 69 National News

only by the inherent reluctance of demo­ was in Israel to initiate a lawsuit against cratic peoples to provide for the common Amiram Nir, an adviser to Foreign Minister interest, but also by the disregard within Shimon Peres, who had charged that Ledeen Meese refuses testimony some circles of the moral bonds and shared had pocketed money from the arms-for-hos­ values which united us in the past." tages deal with Iran . Ledeen said that by on Contras' drug ties Referring to the leaders who mobilized blowing his role in the deal , Nir did "a dis­ Attorney GeneralEdw in Meese has refused the United States and Britain to fight the service to me, and all American Jews. The to give testimony on illegal drug ties be­ Nazis, Weinberger said, "Our continued CIA thinksthat I am a spy. " tween the Contras and their backers, accord­ survival will depend on whether we will be Israeli sources further report that U. S. ing to press reports. Meese apparently re­ granted such leadership in the future, and Attorney Joseph Di Genova, who prose­ fused a request of the House Judiciary Sub­ whether we will recognize and follow it in cuted the Jonathan Pollard spy case, is now committee on Narcotics Abuse and Control, time. " investigating Ledeen's role in the affair. Le­ which was seeking to probe the Contras' This was Weinberger's third trip to Eu­ deen's likely role in deploying Pollard and role in drug trafficking, because it would rope in three weeks. He had attended the other agents on behalf of the deals arranged jeopardize the ongoing Contra hearings. NATO Nuclear Planning Group meeting in between then-Secretary of State Alexander The story emerged when Rep. Charles Norway, then the NATO defense ministers' Haig and Israeli Defense Minister Ariel Rangel (D-N . Y .) said that Meese had re­ meeting in Brussels. Following his London Sharon, is the focus of the investigation. fused to allow Drug Enforcement Adminis­ speech, he went to France, to meet with Haig and Sharon had arrangedfor leaks tration officialsto take part in a private brief­ Saudi Defense Minister Prince Sultan. of U.S. intelligence to Israel, through such ing to his committee. Rep. Lee Hamilton channels as the Pollard network. These (D-Ind. ), chairman of the Irangate hearings, channels remained open after Haig left of­ wrote a letter saying that such testimony fice, and after the deals were canceled due should create no problems for the Irangate to the 1982 Israeli invasion of Lebanon, hearings, contrary to Meese's concerns. Soldier with AIDS leading U.S. investigators to wonder just whom Ledeen was working for. faces court martial AU. S. Army private faces court martial charges for having sex with others while Weinberger hits knowingly carrying the AIDS virus, the Army disclosed on June 3. An Army President lobbies for isolationist spirit spokesman said it was the firsttime that such Defense Secretary Caspar Weinberger, a case had been brought to court, in either constitutional convention civilian or military proceedings. speaking in London on June 3, cautioned President Reagan has promised to send a Pfc . Adrian Morris is charged with ag­ against complacency and isolationist senti­ letter to the California state legislature, gravated assault, sodomy, and "conduct of ments within the NATO alliance, and warned backing a bill which would mandate a con­ a nature to bring discredit upon the armed that the Westernworld today needs the qual­ stitutional convention, and may personally forces." The victims include one female and ity of leadership which characterized the Al­ visit his home state to lobby for it, according one male soldier. If convicted of all counts, lied war against Hitler. Weinberger was ad­ to Sacramento sources. The President backs Morriswould face maximum penalties of 17 dressing the English-Speaking Union, on the the drive to pass a constitutional amendment years in military prison, dishonorable dis­ 40th anniversary of the Marshall Plan. mandating a balanced fe deral budget. charge, reduction in rank, and total forfei­ "Complacency has taken its toll on our The bill, Assembly Joint Resolution 8, ture of pay and allowances. alliance," he said. "Today we face threats was drafted by Assemblyman Tom Mc­ from within, and they stem paradoxically Clintock(R- Thousand Oaks), with help from from the very democratic spirit that defines Lew Uhler, chairman of the National Tax our nations. Limitation Committee. Hearings are sched­ "It would be terribly naive, and worse, uled for July I. If passed, it would make given the bloodshed we have suffered in this Michael Ledeen: 'They Californiathe 33rd state to call for a consti­ century, to believe that free peoples can dis­ tutional convention, one short of the 34 re­ engage themselves from the world arena. think I am a spy' quired to assemble a convention. "Unfortunately, democracies seem to Michael Ledeen, the professed fascist and Partsof the old-line Reagan machine are lose interest very quickly in the complicated protagonist in the Irangate affair, is under outraged at the President's support for the and harsh world outside of domestic af­ investigation for being a "Pollard number­ effort to rewrite the Constitution. A spokes­ fairs .... two," Ledeen confided to an Israeli friend man for the Eagle Forum. an activist group "Today our alliance is challenged not during a recent trip to that country. Ledeen run by Phyllis Schafly, said May 29, "We

70 National EIR June 12, 1987 Briefly

• THE NEW FEDERAUST, are very disappointed" that the President has O'Connor, who has also blasted Gov. America's newest national-circula­ chosen to endorse the convention. Reagan Mario Cuomo and former Democratic vice­ tion weekly newspaper, released its was "neutral on the issue" until early this presidential candidate Geraldine Ferraro for first issue on June 8. The paper is year, when he suddenly climbed aboard the "pro-choice" stands on the issue, accused intended to fill the gap left by the New Solidarity, bandwagon. Eagle Forum members have Moynihan of ducking the subject by using forced closing of been lobbying against the convention idea "the kind of language a totalitarian govern­ whose publisher was placed in invol­ in state legislatures. ment would use to deceive, confuse, and untary bankruptcy on April 21. The New Federalist The Daughters of the American Revo­ stultify us. " chose as its slogan a lution passed a resolution in April urging The attack appeared in O'Connor's quotation from Benjamin Franklin: membersto take up the cudgels against the weekly column in Catholic New York, the "Whoever would overthrow the lib­ constitutional convention, on the grounds archdiocesan newspaper. O'Connor did not erty of a nation must begin by sub­ that Lloyd Cutler's Committee on the Con­ name Moynihan, but his target was clear. duing the freenessof speech." stitutional System, a "powerful group of eli­ Moynihan was quoted by the New York Post tists," wants to use it to ram through a Eu­ June 2, saying that the archbishop's attack • HENRY KISSINGER has been ropean-style parliamentary system. was sparked by a statement Moynihan made asked to chair a congressional panel on Jan. 22, in which he claimed he was monitoring activities in Central opposed to abortion, but "will not impose America. The panel was established my moral beliefs on others." O'Connor wrote last fall; its mission is to monitor and that he did not want "to damage [Moyni­ report to Congress on any negotia­ Kemp raises issue han's] political career," or his chances for tions involving the U.S. artd Nicara­ reelection. gua or other co,!-ntries in the region. of loans to U.S.S.R. It is not yet known whether Kissinger A bipartisan group of congressmen, led by will accept the assignment. Rep. Jack Kemp (R-N.Y.), have asked President Reagan to discuss at the Venice • THE ADMINISTRATION no­ summit of OECD leaders the security prob­ FBI said to probe tified Congress May 29 that it intends lems posed by large Western cash loans to to sell 1,600 Maverick air-to-ground the Soviet Union. The congressmen stated, Wedtech-PTL link missiles, valued at $360 million, to in a letter to the President dated June 2, that FBI agents are reportedly investigating the Saudi Arabia. The move is seen as a nearly $4 billion in cash has been loaned to possibility of a link between the Bakker­ setback for the Zionist lobby. Oppo­ the Soviets by Western banks in the past PTL scandal and the bribery and influence­ sition is expected to be intense. year alone, and charged that Western capital peddling scandal surrounding Wedtech, the flowshave allowed the Soviets to divert hard­ Bronx, New York-based defense contractor • NEW YORl{,'S Mayor Ed Koch currency revenues "to finance aggression which grew phenomenally after various called on June 2 for AIDS tests for all abroad, and oppression and the military middle-level administration officials went foreign tourists and businessmen en­ buildup at home." to work for it. tering the United States. Koch said Kemp called this "the tip ofthe iceberg" FBI agents recently attempted to ques­ he feared that an influx of foreign of a larger security problem, warning that tion Jessica Hahn, Jim Bakker's bed-mate, AIDS victims seeking treatment in the Soviet Union "is preparing to enter the about payments she received and Wedtech. the U.S. would spread the disease. Eurobond market, which is also an untied Law enforcement sources said investigators He also said he was asking the city's loan market, thereby tapping American pen­ were checking into whether some of the five district attorneys to study Gov. sion funds, insurance companies, and other money paid Hahn to keep quiet about her Mario Cuomo's proposal to make it a corporations . " affair with the TV evangelist originated with crime to knowingly spread the virus. Wedtech and was passed through the Rev. Aimee Cortese, a PTL board member. • PAT ROBERTSON announced Cortese is the sister of U.s. Rep. Robert on June 5 that he was laying off 500 Garcia, now being investigated in connec­ employees at his Christian Broad­ Cardinal attacks tion with the Wedtech bribery case. casting Network, as a result of the Investigators reportedly think that Wed­ scandal surrounding PTL televangel­ Moynihan on abortion tech founder John Mariotta, a born-again ists. Contributions to his television Cardinal John O'Connor, the archbishop of Christian, gave company money to Ms. network have dropped by 50% since New York, has opened fire on Sen. Daniel Cortese, pastor of Cross Road Tabernaclein the scandal broke, he said. Jim Bak­ Patrick Moynihan (D-N.Y.), accusing him the Bronx. Sources close to the case specu­ ker of PTL was a protege of Robert­ of "newspeak" to disguise his stance on lated that Hahn may have received as much son. abortion. as $20,000 from Cortese.

EIR June 12, 1987 National 71 Editorial

Ambassador Richard Burt: a Soviet asset

At the time of Richard Burt's nomination for U.S. ambas­ There is irony in this particular political menagerie. sador to the Federal Republic of Germany, this publication Old Nazis and old Communists, F�ois Genoud, Ahmed campaigned vigorously against his confirmation by the Huber, and the local KGB , are digging up from the PQlit-­ U.S. Senate . At that time, we demanded an investigation ical graveyard, the old camaraderie and spirit of the. 1939 into his role in promoting the Moscow-controlled Green Hitler-Stalin Pact, and call it the Republikaner Partei. Party of West Germany; his relationship with convicted They then get the U.S. am�assador, Richard 8urt, to KGB spy ArneTreholt of Norway; his role in the so-called invest it with legitimacy. Essentially. the Republilatner, "Chalet" espionage scandal while he was still working for which has been the recipient of financial donations from the New York Times. Project Democracy's "Spitz" Channell, makes the Nazi Our warnings were not heeded. The light of publicity argument that the ties of alliance between the United States was never shed on these seedy aspects of Richard Burt's and the Federal Republic be dissolved and replaced by ties life, and so he became the Ambassador of the United of alliance with Russia. States to Bonn. Those in the Senate, the U.S. intelligence This is what Ambassador Burt, and his friend Korn­ services, and law enforcement agencies who allowed Burt's blum, are , essentially endorsing. They are doing so with nomination to go through, are now responsible for the the active encouragement of Secretary of State George mess he is creating in the Federal Republic of Germany. Shultz, whose commitment to the cause of the illegal, Burt and his close collaborator and subordinate, John "parallel government" of Project Democracy has been Kornblum, who represents the U.S.A. in Berlin, have displayed in the form of support for Assistant Secretary extended invitations to representatives of a "National Bol­ for Latin American Affairs Elliott Abrams, the single most shevik" fringe party, the Republikaner Partei, to grace responsible person-after Robert Vesco-for the spread with their presence the official reception honoring Presi­ of anti-Americanism in Central America. dent Reagan's visit to the divided city of Berlin. The Shultz himself, acting like the high priest of betrayal , intention of that invitation was to provide a cloak of legit­ is going around the world, making speeches to interna­ imacy to an important, Moscow-controlled political op­ tional audiences, to the effect that the United States can eration which has been assigned the task of selling to no longer dispense with its international leadership re­ traditional, conservative political layers of West Ger­ sponsibilities, and that "others" should take up the "bur­ many, the idea of decoupling from the United States. den." This is what we warned of when we campaigned Richard Burt and John Kornblumstand exposed as the against Richard Burt'snomination as ambassador to West principal backers of a key Soviet intelligence operation Germany. against the Western alliance, the Nazi-communist Repub­ Since then, we have had the Reykjavik summit, the likaner Party . The Republikaner are, simply, "Moscow's steady unfolding of the Irangate clean-up, and the publi­ Fifth Column" in the Federal Republic. That Munich­ cation of EIR's "Project Democracy" report. Now , centered operatioq is a den of enemy operations, deployed whoever wants to reverse what's gone wrong with U. S. by the Russians, who, in this instance, are cooperating policy, must join with us incleaning up the State Depart­ with two leaders of the Nazi International secretly behind ment nest of Project Democracy. Shultz has stuck what he the founding and funding of the Republikaner Partei: Fran­ has of a neck out to defend his "sensational" assistant �ois Genoud, the Swiss literary executor of Adolf Hitler secretary, the perjurer and bullying juvenile delinquent and Martin Bormann, and his life-long collaborator, Elliott Abrams. If that's the way he wants it, we should Ahmed Huber. make sure that's the way he gets it.

72 National EIR June 12, 1987 Now with 'Iran-gate,' you can't afford to wait for the best intelligence EIR can prpvide--��ediately. The economy is teetering at . the brink, and even the larg­ est American banks are shaking at their fo undations. We alert you to the key developments to watch closely, and transmit 10-20 concise and to-the-point bulletins twice a week, including periodic reviews of debt, terror­ Alert ism, and drugs. The "Alert" now puts special emphasis on economic developments. It reaches you by First Class mail twice a week (or more often, when the situation is hot). For Europe and the Middle East, the Confidential Alert Bulletin appears once a week in the fo rm of a one-page Alert telex message.

In the U. S.: Confidential Alert annual subscription $3,500. In Europe: Confidential Telex Alert annual subscription OM 12,000, includes Quarterly Economic Report Strategic Alert Newsletter (by mail) annual subscription OM 6,000 Alert Make checks payable to: EIR News Service P.o. Box 17390, Washington, D.C. 20041-0390 In Europe: EIR Nachrichtenagentur GmbH. Postfach 2308, Jl. 1 an+ Ootzheimerstr. 166, 0-6200 Wiesbaden, F.R.G.

------�

I would like to subscribe to 1 Executive Intelligence Review for 1 1 Executive o 1 year 0 6 months 0 3 months 1 1 Intelligence I enclose $ _____ check or money order 1 I Please charge my 0 MasterCard 0 Visa 1 Review Card No. ____ Exp. date _____ 1 Signature ______u.s.. Canada and Mexico only 1 1 year ...... 1 $396 Name ______6 months ...... $225 1

3 months ...... $125 Company ______

Foreign Rates Phone ( Central America. West Indies. Venezuela I Address ______and Colombia: 1 ':Ir. $450, 6 mo. $245, 1 3 mo. $135 1 City ------South America: . $470 , 6 mo. $255, 1 yr 1 State ______Zip ___ _ 3 mo. $140. I I Make checks payable to EIR News Service Inc .. Europe. Middle East. Africa: 1 yr. DM 1400, P.O. Box 17390. Washington. D.C. 2004 1- 6 mo. DM 750, 3 mo. DM 420. Payable in '1 0390. In Europe : EIR Nachrichtenagentur deutschemarks or other European currencies. 1 GmbH. Postfach 2308. Ootzheimerstrasse 166. I 62 Wiesbaden. Federal Republic of Germany. Asia and Oceania: 1 yr. $550, 6 mo. $300, 1 telephone (06121) 8840. 3 mo. $150. 1 ______------AIDS pandemic On May 31, I 987 President Ronald Reagan called for mass testing for AIDS. The media and political candidates have reversed them­ selves and now admit AIDS is the major issue in the 1988 presi­ dential campaign . Lyndon H. LaRouche, Jr. wrote in EIR in September 1985: "It is now becoming clear, that during the period of the 1986, 1987 , and 1988 election campaigns in the United States and Western Europe , the hottest political issue will be the spread of a new global pandemic more deadly than the bubonic plague: Acquired Immune De ficiency Syndrome (AIDS) . Governments, political parties, and or candidates wj}} rise fall , on the basis of a spreading, and entirely justified popular panic directed against those politicians and gov­ ernments which attempt either to cover up the spread of this pan­ demic, or to use the immoral and fraudulent pretext of 'homosexuals'

civil rights ' as a pretext for blocking urgently needed measures of quarantine and prevention ."

The Russians EIR called the shots on Gorbachov' s moves to tum the Soviet economy into a powerful war machine, while the West was dis­ mantling its economy .

Read what we said in September 1985: "The battle forthe ' in ­ troduction of the achievements of scientific and technological prog­ re ss' has been the watchword of every principal pronouncement, resolution, interv ention and personnel shake-up of Gorbachqy 's re gime since he came in last March . It is an absolute requirement of the war economy doctrine, laid down by Marshal Nikolai Ogarkov and his predecessors in the Soviet high command."

The economy We wrote in March 1985: "During the time period in which the much touted U . S . 'recovery ' was not happening, the United States was sucking the, world as a whole into the vortex of a Second Great

Depression , and in the process, thanks primarily to Paul Vo1cker, the United States wa§ bankrupting itself. " Volcker is now out, and the man who has been nominated to take over the Fed-Alan Greenspan-has admitted that there never

, w as a "Reagan recovery . "

EIR: Knowledge is leadership.