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$14.95 plus $1.50 postage and handling for first copy, $.50 each additional copy. Visa or Mastercharge accepted. Founder and Contributing Editor: Lvndon H. LaRouche. Jr. Editor-in-chief: CrilOn Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke. Nancy Spannaus. Webster Tarpley. Christopher White. Warren Hamerman. From the Editor William Wertz. Gerald Rose. Mel Klenetsky. Antony Papert. Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Director of Press Services: Christina Huth F or several weeks, EIR's centerfold (pages 36-37) has been devot­ INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot. Mary Lalevee ed to a graphic display or strategic map that highlights one of our Agriculture: Marcia Merry major stories, or gives an overview of news developments. This Asia: Linda de Hovos Counterintelligence: Jeffrey Steinberg. week's centerfold sets the safety standards of the Western nuclear Paul Goldstein energy industry (under renewed assault, ironically, from the Soviets' Economics: David Goldman European Economics: William Engdahl. "Green" and "peacenik" friends), against the obsolete technologies Laurent Murawiec used in the Soviet Union. The top nuclear-safety experts were inter­ Europe: Vivian Freyre Zoakos Ibero-America: Robyn Quijano. Dennis Small viewed for our exclusive coverage of the Chernobyldisaster (starting Law: Edward SpanTlflus page 34). Medicine: John Grauerholz. M.D. Middle East: Thierrv Lalevee We propose that you read the Science & Technology section Soviet Union and E�stem Europe: together with the article on the Stalin-style purges being conducted Rachel Douglas. Konstantin George Special Projects: Mark Burdman now in the U. S. S.R. (page 44). There is no doubt that the Soviet United States: Kathleen Klenetsky "accident" at Chernobyl results, ultimately, from the same callous INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura disregard for human life and irrational zeal to.wipe out Western, Bogota: Javier Almario Jud�o-Christian civilization that is channeling every aspect of the Bonn: George Gregory. Rainer Apel Chicago: Paul Greenberg Soviet economy into a war machine capable-or so Gorbachov and Copenhagen: Poul Rasmussen his friends hope-of SUbjugating the West within this decade. Houston: Harley Schlanger Lima: Sarq Madueiio In the face of this, the leadership of the non-communist "ad­ Los Angeles: Theodore Andromidas vanced" sector has just rolled over and played dead. Despite the Mexico City: Josefina Menendez Milan: Marco Fanini useful services that the Tokyo Summit of May �-6 performed in the New Delhi: Susan Maitra fight against terrorism, and on the matter of nuclear safety, the Paris: Christine Bierre Rio de Janeiro: Silvia Palacios economic policies it adopted are a disaster, dicCated by the Interna­ Rome: Leonardo Servadio. Stefania Sacchi tional Monetary Fund and the oligarchical creditors of the overin­ Stockholm: William Jones United Nations: Douglas DeGroot debted U. S. economy (page 4). Washington. D.C.: Nicholas F. Benton. The U. S. tax package (page being shepherded through Con­ Susan Kokinda 60) Wiesbaden: Philip Golub. Goran Haglund gress with the administration's blessings, coheres with the Gratnm­ Rudman budget we reported on last week. It is-a measure that will EIRIExecUlive Intelligence Revie ..... IISSN 0273�314) is published weekly 150 issues) except for the second week not just destroy the economy, but wreck our natjonal security. of July and first week of January by New Solidarity International Press Service 16/2 K St. N. W .. Suite 300. In this landscape, I draw your attention to what might be the Washington. D.C. 20006 (202) 955-5930 Distributed by Caucus Distributors. Inc. greatest peril of all to humanity: the unfolding ecological holocaust European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH. Postfach 2308. in Brazil (page 11) and its implications for the whole continent. Dotzheimerstrasse 166. 0-6200 Wiesbaden. Federal Republic of Germany Clearly, a new quality of leadership is required if the United Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. Michael Liebig States and the West are to survive. For that reason, we devote this 1n Denmark: EIR. Haderslevgade 26. 1671 Copenhagen (01) week's Feature (page 22) to Lyndon LaRouche and the candidates 31-09-08

In Mexico: EIR. Francisco mas Covarrubias ·54 A-3 movement associated with him, which has not been stopped by an Colonia San Rafael. Mexico OF. Tel: 705-1295. estimated 8,000 slander articles in the U. S. ptess since March 18 Japan subSCription sale.: O.T.O. Research Corpnration. Takeuchi Bldg .• 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo alone, and massive extortion of LaRouche supporters by the Dope 160. Tel: (03) 208-7821.

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Interviews Economics

32 Carl Oglesby 4 Tokyo summit: World The former SDS leader insists. that leaders abdicate to IMF LaRouci}e 'has never been a The TQkyo Economic Declaration .Marxist' adopted by the world's leaders is an agreement to mutually 'enforce , the vellY policies that have driven the Western economies to the Departments brink �f ruin.

17 Africa Rewrt 6 Text of the Tokyo Nigeria fights to solve crisis. Economic Declaration

50 Northern Flank 9 Cooperating to avert disaster Norway turns socialist. Excerpts from a speech delivered 51 Report from Bonn by Hiroshi Uchida, head of the Ministry of International Trade & Kohl missed a great opportunity. Industry, on March 13,in Tokyo. ,

52 Report from Paris 10 Currency Rates Patriot, engineer, entrepreneur. 11 New disease epidemics in 53 Report from Rome Brazil show water and Italian scientific tradition revived. sanitation collapse

54 Datelhle Mexico 14 Israd: Dirty banker The PRI and economic policy. Recanati gets unusual mesSflge 55 Andean Report Debt-for-equity urged in 15 Pere,: 'Economic progress Venezuela. is the key'

56 New Delhi 16 Agri�ulture: Swiss cartel Six AIDS cases turn up in Tamil poisons U.S. dairy cows Nadu. 18 Foreign Exchange 57 Middle East Report Dollar slide continues after The new countdown has begun. summit.

. 72 Editorial 19 Labor in Focus laRouche and the Civil Rights P-9 strike: labor's nightmare. Commission 20 Busi*ess Briefs

, Volume 13 Number 20. May 16. 1986

Science & Technology International National .

44 Russia under the new 60 Tax reform: Merrill Lynch Stalin: blood and trials rides Buffalo Bill

46 Political cards reshuffled 62 Delta explosion: another in Thailand accident?, ! 1 48 India: Police clean up 63 NBC: fri�nd of Moscow, Golden Temple, again terrorists Mikhail Gorbachov, the Soviet leader (left) faces off against the U. S. nuclear plant, Enrico Fenni2 in Mich­ igan (right). With their whole economy geared up for 49 Herr Genscher's message 64 Democrats scurry in 'all war and world domination in this decade. the Soviets for A ad directions' fall far, far short of the strict Western nuclear safety � standards like those enforced at the Fenni plant-and don't seem to care. S8 International Intelligence 6S Judiciary: Media gets license to'lie-for now 34 The Soviet disaster: accident-or ·war push? Feature 66 Eye on Washington 36. Western safety standards TaiwaIi. braces for the Solarz make nuclear the safest 22 The LaRouche treatment. phenomenon in American energy around, 67 Kissinger Watch politics Cruising Ea$t with the doges of 37 Chernobyl: an archaic Editor-in-chief Criton Zoakos the future. reactor design discusses the "reality-oriented" LaRouche movement, as opposed 39 What the experts say 68 Congressional Closeup to the "perception-oriented" M. Interviews with: Joseph Democratic National Committee Hendrie, fonner chainnan. U.S. le�dership. .. 70 National News Nuclear Regulatory Commission. Sue Gagner, Public-affairs officer 2S Returns for NDPC-backed for the Nuclear Regulatory candidates in Texas, Correction�The final point of Commission. Paul North, Indiana, and Ohio Defense Sedretary Weinberger's Manager of Nuclear Reactor primaries six-point doctrine was cut off due Research and Technology for to a paste-up error, in an article on EG&G Idaho at the Department of page 61 of our last issue. The Energy's Idaho National .26 Lyndon LaRouche on paragraph in question should have Walter Engineering Laboratory. national television read: "6) Fi�aily, the commitment Loewenstein, deputy director of From an interview on CNN's of U.S.forqes to combat should the nuclear power division. "Evans and Novak" program aired be a last resOrt-only after Electric Power Research Institute dn May 3. diplomatic, political, and (EPRI) iri Palo Alto, Calif. economic and other efforts have Richard Wilson, Mallinckrodt 30 Meese Justice Dept. backs been made to protect our vital Professor of Physics. Harvard liberals, organized crime interests. " University; chaired Nuclear Regulatory Commission-sponsored to 'get LaRouche' study group of the American Physical Society on "Radiological Consequences of Severe Nuclear Accidents." Petr IJeckmann, professor of electrical engineering, University of Colorado at Boulder. • �TIillEconomics

Tokyo summit: Worl(j I leaders abdicate to IMF

by David Goldman

The Tokyo Economic Declaration adopted by the seven heads In fact, the summit merely rubber-stamped the decisions of state and government on May 6, will spell disaster not of the IMF's Executive Board after its meeting April II. IMF only to the economic, but also the strategic interests of the Managing Director Jacques de Larosiere said that "we have West, if implemented as poACY in the next 12 months. De­ been asked to work on a set of indicators that would help us spite the useful services that the Tokyo Summit performed in assess. . .the differenteconotpic policies of the membership the fight against terrorism, and on the matter of nuclear safe­ at large, and to use those indicators ...to assess the progress ty, the economic policies which it adopted are a disaster. toward a more sustainable pttem, and if there are deviations, Whether or not the "surveillance " regime ratified by the to talk to the countries in question. " heads of state can function in its own terms, is irrelevant. The Here is what the Summit Communique proposes: point is that the world's leaders agreed to mutually reinforce I) A receivers' committee of creditors for the United the policies which have already taken the West beyond the States economy: The seven leaders "reaffirmthe undertaking brink of financial crisis and strategic rout: austerity budgets, • at the 1982 Versailles Summit to cooperate with the IMF in dismantling of heavy industry, looting of the economies of strengthening multilateral suryeillance... " the developing world, breaking up the agricult\lral sector, But the principal target of the IMF, over three years, has and fraudulent accounting in the face of a global banking been America's budget deficit:"'-i.e., the impact ofiMF cred­ crisis. it policies on America's tax base. The IMF spent the past The "performance criteria " which shall measure the sev­ three years demanding cuts ip the U. S. defense budget, as en nations' success are now in preparation at the Washingtpn well as social programs. The creditors' cartel headed by the headquarters of the InternationalMonetary Fund, the formal IMF has been lendingthe Unifed States $150 billion per year representative of the global creditors' cartel. The Internation­ to financeboth the externalan � internaldeficits. Between the al Monetary Fund and its elder sister, the Swiss-based Bank April 11 meetings of the International Monetary Fund, and for International Settlements, imposed the post-1979 aus.ter­ the Tokyo summit, the creditors threatened to withdraw such ity regime which collapsed prices and volume of world trade. financing, causing the dollar's price to collapse on currency World trade continues below 1980 levels; except for the markets. Under this threat, President Ronald Reagan has bloating of American imports, a sign of American distress, agreed to strengthen IMF "sQrveillance, " i.e., receivership not "recovery, " world trade has fallen without interruption at the hands of America's cre4itors. since 1980. Yet the same IMF policies which substituted 2) Uniform commitment tio budget slashing: "It remains ballooning global debt for expanding world trade, are sup­ essential to maintain. firm control of public spending . . . posed to avert trade war and chaos in the currency markets. excessive fiscaldeficits [to bel progressively [reduced]. " They will do no such thing: The ratificationof these policies As noted, the IMF's principal target has been America's at Tokyo will bring about a wave of national bankruptcies in defense budget, especially the Strategic Defense Initiative the in4ustrial world, beginning with the United States. and associated NA SA prograTs. In the wake of the failureof

4 Economics EIR May 16, 1986 four successive space-launches, further spending reductions the United States-is not at issue. lfhe Japanese, in fact, in the areas specifiedby the IMF amount to �nihlteral Amer­ rapidly affirmed that they have no ihtention of pulling the ican disarmament. plug on U.S. government debt mark!ets.In fact, Japan has 3) Continued drift away from raditional smokestack in­ less motivation to disrupt the U.S.qllTency, and more mo­ dustries and into the post-industnal economics of yuppie­ tivation to stabilize it, than any other nation on earth. dom: ". .. effective structural adjustment policies . . .ad­ The Japanese account for about �me-third of America's aptation of industrial structure and expansion of trade and current-account financingrequireme dts.The likely source of foreign direct in,vestment. a run against the dollar, and dollar-denominated securities, " 4) Complete and total abandonment of the decimated arises from the financialcartel which provides the other two­ developing sector: "The pursuit of these policies by the in­ thirds Of the requirement, namely, what we have otherwise dustrialized countries will help the developing countries in called "Dope, Im:." , so far as it strengthens the world economy." As we reported at year-end, the' United States in 1983 The collapse of oil prices since November 1985 has left derived $80 billion believed to stem' from narcotics traffic, several of the most important debtors, namely Mexico, Ni­ flight capital, tax evasion, and other illicit sources, in the geria, Indonesia, and Venezuela, in desperate condition.The estimate of Federal Reserve and Commerce Department spe­ summit's failure even to mention the ratchet collapse of the cialists.American corporations raised at least $30 billion in . developing world's payments capacity represents a de factfJ so-called Eurobonds, i.e., unregistered bearer securities sold decision to plunge the world into financial disaster. to numbered Swiss bank accounts, via U.S. corporations' 5) Endorsement of the ridiculous "Baker Plan " for han­ shell-subsidiaries in the Netherlands Antilles.The Eurobond dling the Third World debt crisis: "We reaffirmthe continued market was formed initially to accOlnmodate international importance of the case"by-case approach to internationaldebt hot money that demanded anonymity above all else, and has problems.We welcome the progress made in developing the grown to an annual issue volume of $150 billion, while in­

cooperative debt strategy, in particular building Oft the United ternationalbank lending has reduced to a trickle. States' initiative." In addition to the $30 billion itt Eurobonds, America 6) Increased private looting and debt-for-equity robbery obtained $50 billion from parties unknown, that is, through of the Third World: "Private financial flows will continue to· so-called "errors and omissions " in the balance of payments play a major role in providing for their development needs." data: inflowsfrom sources who took pains not to be reported. 7) Elimination of what is left of world agriculture: "We It happens that the American team which negotiated the note with concernthat a situation now exists of global struc- summit accord are bankers who speqialize in managing the . tural surplus for some important agricultural products.... investment of dirty money in the United States.Former Trea­ Action is needed to redirect policies and adjust the structure sury Secretary Donald Regan, as EIR reported April 25, of agricultural production." pushed America into the Eurobond popl, in a 1978 agreement with Credit Suisse, the giant Swiss �bank. Regan's job, as U.S. national bankruptcy White House chief of staff, is to sell 'various schemes to the There is only one difference between the Tokyo declara­ President. He left behind at Treas"" a banker whom he tion, and previous agreements to the same effect: It is one brought into his old firm, Merrill Ly�ch, in 1978, Assistant thing to paddle in the wrong direction when several miles Secretary for International Affairs David C.Mulford. Mul­ away from the falls.It is another thing, when one is only a ford negotiated the September 1985 "proup of 5" deal which dozen yards away. produced the dollar's collapse on intqlJlationalmarkets. The During the week ended April 25, the value of long-term p!esent treasury secretary, James Balcer III, is in agreement u.S.Treasury securities fell by an all-time record 7%, sup­ with Regan and Mulford. , posedly on speculation that the Japanese would reduce their By no coincidence, the banking crowd at the White House previous$50 billion annual rate of purchases of U. S. govern­ and Treasury. has been cheerleading the dollar's fall on inter­ ment debt. This was associated with fears, voiced most national markets, while demanding Ibudgetary austerity to strongly by Federal Reserve chairman Paul Volcker, that the please America's creditors. Despite Federal Reserve chair­ U.S.dollar would fall uncontrollaply, leading rapidly to fi­ man Volcker's repeated warnings of:a dollar crash and out­ nancial breakdown. Supposedly, these events on the financial flows of foreign capital from American markets, Regan and markets spurred the leaders to take measures to calm inter­ Mulford have persuaded the President that the dollar's fall is national currency markets, and make the dollar's decline good for American exports. controllable. In fact, the Dope, Inc.bankers who run the Treasury have Both the premises and the conclusions of the above ac­ locked the United States into a vicious cycle, in which the count, repeated through the international media, are entirely threat (or reality) of capital t!utflowsfrom American markets

false. Japan's $50 billion of investments of u.S. Treasury forces additional massive reductions I in U.S. expenditures, securities-corresponding to that nation's trade surplus with with emphasis on military and space programs.

ElK May 16, 1986 Economics 5 look to the medium and long¢r term, and to have regard to Documentation .the interrelatedand structural tharacter of current problems.

4 We stress the need to imph:�ment effective structural ad­ justment policies in all countlJies across the whole range of Text of the Tokyo economic activities to promote growth, employment and the integration of domestic econopties into the world economy. Economic Declaration Such policies include technological innovation, adaptation of industrial structure and exp,nsion of trade and foreign Follow,ing is the text of the Declaration issued on May 6. .direct investment. . " . 1986 by the leaders of the United States. Japan. West Ger­ 5 many. Britain. France. 1taly and Canada at the' conclusion In each of our own countries, it remains essential to main­ tain a firmcontrol of public spending within an appropriate of their three-day meeting: medium-term framework of fi$cal and monetary policies. In some of our countries there continue to be excessive fiscal 1 We, the heads of state or government of seven major in­ deficits which the govenment$ concerned areresolved pro- . dustrialized countries and the representativesof the European gressively to reduce. Community, meeting in Tokyo for the Twelfth Economic (; Since our last meeting, we �ave had some success in the Summit, have reviewed developments in the world economy creation of new jobs to meet a(lditions to the labor force, but since our meeting in Bonn a year ago, and have reaffirmed unemployment remains exce$sively high in many of our our continuing d�termination to work together to sustain and countries. Non-inflationary gtowth remains the biggest sin­ improve the prosperity and well-being'of the peoples of our gle contributor to the limitationand reduction ofunemploy­ own countries, to support the developing countries in their ment, but it peeds to be reinfo(ced by policies which encour­ efforts to promote their economic growth and prosperity, and age job creation, particularly in new and high-technology to improve the functioning of the world monetary and trading industries, and in small busine;sses. systems. 7 At the same time, it is important that there should be close 2 Developments since our last meeting reflect the effective­ and continuous coordination Of economic policy among the ness of the policies to which we have committed ourselves at seven summit countries. We welcome the recent examples successive economic summits in recent years. The econo­ of improved coordination among the Group of Five finance mies of the industrialized countries are now in their fourth ministers and central bankers ,' which have helped to change year of expansion. In all our countries, the rate of inflation the patternof exchange rates and to "lower interest rates on an has been declining. With the continuing pursuit of prudent orderly and non-inflationary basis. We agree, however, that fiscal and monetary policies, this has permitted a substantial additional measures should be taken to ensurethat procedures lowering of interest rates. There has been a significant shift for effective coordination of international economic policy in the pattern of exchange rates which better reflects funda­ are strengthened further. To �is end, the heads of state or mental economic conditions. For the industrialized coun­ government: tries, and indeed for the world economy, the recent decline • Agree to form a new Group of Seven financeministers , in oil prices will help to sustain non-inflationary growth and including Italy and Canada, which will work together more to increase the volume of world trade, despite the difficulties closely and mOre frequently in the periodsbetween the annual which it creates for certain oil-producing countries. Overall, summit meetings; these developments offer brighter prospects for, and enhance • Request the seven finance ministers to review their confidence in, the future of the world economy. individual economic objectives and forecasts collectively at 3 However, the world economy still faces a number of diffi­ least once a year, using the indicators specified below , with cult challenges which could impair sustainability of growth. a particular view to examining' their mutual compatibility. Among these are high unemployment, large domestic and With the representatives of the European Community: externalimbalan ces, uncertainty about the future behavior of • State that the purposes of improved coordination should exchange rates, persistent protectionist pressures,continuing explicitly include promoting non-inflationary economic difficulties of many developing countries and severe debt growth, strengthening market-oriented incentives for em­ problems for some, and uncertainty about medium-term I ployment and productive invtstment, opening the interna- prospects for the levels of energy prices. If large imbalances tional trading and investment system, and fostering greater and other distortions areallowed to persist for too long, they stability in exchange rates: will present an increasing threat to world economic growth • Reaffirm the undertaking at the 1982 Versailles Sum­ and to the open multilateral trading system. We cannot afford mit to cooperate with the IMF in strengthening multilateral to relax our efforts. In formulating our policies, we need to surveillance, particularly among the countries whose curren- .

-6 Economics EIR May 16, 1986 cies constitute the SDR, and request that, in conducting such antee agency. surveillance and in conjunction with the managing director 10 We reaffirmth continued imporfianceof the case-by-case of the IMF, their individual economic forecasts should be � approach to international debt problems. We welcome the reviewed, taking into account indicators such as GNP growth progress made. in developing the cqoperative debt strategy, rates, inflation rates, interest rates, unemployment rates, fis­ in particular building on the United States initiative. The role cal deficit ratios, current account and trade balances, mone­ of the international financial institutions, including the mul­ tary growth rates, reserves, and exchange rates: tilateral development banks, will c�tinue to be central, and • Invite the financeministers and central bankers in con­ we welcome moves for closer cooperation among these in­ ducting multilateral surveillance to make their best efforts to stitutions, and particularly between the IMF and the World reach an understanding on appropriate remedial measures Bank. Sound adjustment programs: will also need resumed whenever there are significant deviations from anintended commercial bank lending, flexibili�in rescheduling debt �d course and recommend that remedial efforts focus first and appropriate access to export credits. foremost on underlying policy fundamentals., while reaffirm­ ing the 1983 Williamsburg Commitment to intervene in ex­ II We welcome the improvement which has occurredin the change markets when to do so would be helpful. food sitution in Africa. Nonetheless a number. of African The heads of state or government: countries continue to need emergency aid, and we stand ready • Request the Group of Five financeministers to include to assist. More generally, we contin�e to recognize the high Canada and Italy in their meetings whenever the management priority to be given to meeting the n�ds of Africa.Measures or the improvement of �he internationalmonetary system and identifiedin the report on aid to Afriql adopted and forwarded related economic policy measures are to be discussed and to us by our foreign ministers should be steadily implement­ dealt with; ed. Assistance should focus in partictJlaron the medium- and • Invite finance ministers to report progress at the next long-term economic development of these countries.In this economic summit meeting. connection we attach great importance to continued cooper­ These improvements in coordination should be accom­ ation through the special facility for Sub- Saharan African panied by similar efforts within the Group of Ten. countries, early implementation of the newly established structural adjustment facility of the· IMF and the use of the 8 The pursuit of these policies by the industrialized countries will help the developing countries insofar as it strengthens IDA. We intend to participate actively in the forthcoming the world economy, creates conditions for lower interest United Nations Special Session on Africa to lay the founda­ rates, generates the possibility of increased financialflows to tion for the region's long-term development. I the developing countries, promotes transfer of technology, 12 The open multilateral trading sy*m is one of the keys to and improves access to the markets of the industrialized the efficiency and expansion of tQe world economy. We countries. At the same time, developing countries, particu­ reaffirmour commitment to halting and reversing protection­ larly debtor aountries, can fitthemselves to play a fuller part ism, and to.reducing and dismantlit1g tr�de restrictions. We in the world economy by adopting effective structural ad­ support the strengthening of the sY$tem and functioning of justment policies, coupled with measures to mobilize domes­ the GATT, its adaptation to new dev�lopments in world trade tic savings, to encourage the repatriation of capital, to im­ and 10 the international economiq environment, and the prove the environment for foreign investment, and to pro­ bringing of new issues under interpational discipline. The mote more open trading policies.In this connection, noting new round should, inter alia, address the issues of trade in in particular the difficult situation facing those countries highly services and trade-related aspects of i�tellectual propertyrights dependent on exports of primary commodities, we agree to and foreign direct investment. Furtqer liberalization of trade continue to support their efforts for further processing of their is, we believe, of no less import�nce for the developing products and for diversifying their economies, and to take countries than for ourselves, and we are fully committed to. account of their export needs in formulating our own trade the preparatory process in the GATT with a view to the early and domestic policies. launching of the new round of multilateral trade negotiations. 9 Private financialflows will continue to play a major part in We shall work at the September ministerial meeting to make providing for their development needs.We reaffirmour will­ decisive progres� in this direction. . I ingness to maintain and, where appropriate, expand official 13 We note with concernthat a situation of global structural financialflows, both bilateral and multilateral, to developing surplus now exists for some importantagricultural products, countries.In this connection, we attach great importance to arising partlyfrom technological improvements, partly from an early and substantial eighth replenishment of the Interna­ changes in the world market situati�n, and partly fromlong­ tional Development Association (IDA) and to a general cap­ standing policies of domestic subsidy and protection of ag­ ital increase of the World Bank when appropriate.We look riculture in all our countries.This harms the economies of for progress in activating the multilateral investment guar- certain developing countries and i� likely to aggravate the

ElK May 16, 1986 Economics 7 risk of wider protectionist pressures. This is a problem which pean Space Agency (E SA). We stress the importance for we all share and can be dealt with only in cooperation with genuine partnership and appropriate exchange of informa­ each other. We all recognize the importance of agriculture to . tion, experience and technologies among the participating the well-being of rural communities, but we are agreed that, states. We also note with satisfaction the results of the sym­ when there are surpluses, action is needed to redirect policies posium on neuroscience and e,hics, hosted by .the Federal and adjust structure of agricultural production in the light of Republic of Germany, and we �ppreciate the decision of the ' world demand. We recognize the importance of understand­ Canadian government to host the next meeting. ing these issues and express our determination to give full support to the work of the OECD in this field. 16 We reaffirm our responsibility, shared with other govern- . 14 Bearing in mind that the recent oil price decline owes ments, to preserve the natural environment, and continue to much to the cooperative energy policies which we have pur­ attach importance to internationalcooperation in the effective sued during the past decade, we recognize the need for con­ prevention and control of pollution and natural resources· tinuity of policies for achieving long-term energy market management. In this regard, we take note of the work of the stability and security of supply. We note that the current oil environmental experts on the iQIProvement and harmoniza­ market situation enables countries which wish to do so to tion of the techniques and practices of environmental mea­ increase stock levels. surement, and ask them to report as soon as possible. We also recognize the need to streagthen cooperation with de­ 15 We reaffirmthe importance of science and technology for veloping countries in the area o� the environment. the dynamic growth of the world economy and take note, with appreciation, of the final report of the Working Group on Technology, Growth and Employment. We welcome the 17 We have agreed to meet again in 1987 and have accepted progress made by the United States manned space program the invitation of the president Qf the Council of the Italian and the progress made by the autonomous work of the Euro- government to meet in Italy.

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8 Economics EIR May 16, 1986 J Japanese View. about the collapse of the internation� financial system, which A eventually would lead to the collaPte of the world economy. If this scenario of world econo�ic disaster an unwarrant­ ed concern? Would that it were ...i. The U. S. economy has an o'lerwhelming weight and responsibility, the policies of whi4 have greatly influenced the economy of the world. Hovev�r, it is not blessed with immortality and cannot be sustaine� without the cooperation . . of other nations. . i. The major problem currently f,*ced by the United States is the reduction of budgetary and trape deficits. Howver, even if these deficits were successfully r�duced for the time being through strong U. S. government action or the large-scale cooperation of other governments" the result would still be .Coo erating, to ' p only the treatment of the symptorns of the emergency patient and not the basic rebuilding of the ipatient's physical make­ . avert disaster up. As long as this basic make-up ofthe U. S. economy is not revised, the same problem it faceS today could once ag�in Presented here are excerpts fr om a speech delivered by Hi� arise. ! roshi Uchida, head of the Ministry of International Trade Productivity is a general measure of the capacity to raise and Industry, at the Yomiuri Symposium on the International the living standard of the people and is especially a measure Economy '86, held March 13, in Tokyo. of the competitive strength of the United States in the world's The speech, entitled "International Cooperation toAvert markets. However, the rate of incr�ase of industrial produc­ Disaster," reflects on the state of the actual economy of the tivity has been falling off from year to year. If the growth United States and the relation of the advanced to the under­ rate of productivity'continues to be low for a long time, a developed sector. The Yomiuri symposium, which fe atured great drop in American competitiye strength could not be ., European and American speakers, was designated as a mes­ avoided. sage to the Tokyo summit May 4-6 of leaders of the OECD The problem of American pro4uctivity is widely recog­ nations. nized as being rooted in such basic: factors as capital, labor, managerial strength, and labor-ma;agement relations. If the As we approach the 21 st century, we are very fortunate that United States wishes to reduce its; trade deficit, it ought to the intelligence of humankind has worked to rebuild the world . devote special efforts to the impro"ement of these factors at economy in the last half of the 20th century from the ruins the same time that it requests other ations to cooperate. The ' p caused by the many mistakes of the first half, and that we disadvantages of low productivity; growth rat� and loss of have been able to sustain that rare condition in human history, competitive strength increase the likelihood of seeking easy peace and prospertty for 40 postwar years. However, it can solutions, such as buttressing the ll"0tective walls for indus­ also be said that we have arrived at the present while post­ tries that have lost their competi veness and shutting out ' ti poning the reforms necessary to break away from old systems products o f other countries from the American market. If and the. proper responses to new technology, reforms and would seem that the Unite'd Statesi should use every means - responses that were achieved in the past by such violent available to increase productiyity .• means as revolution or war. We must now face up to these Another Cause of the trade im�alance is the creation of difficult problems confronting us and boldly deal with cavities or "hollowing" in America,hindu stry; that is, Amer­ them.... ican manufacturers have moved m�jor portions of their pro­ At present, the United States, WesternEurope, and Japan duction to locations abroad instea of investing within their dI together account for two-thirds of the. world's total produc­ own country to improve producti..rity. We can say that the tion. They �re therefore indeed the three main pillars sup­ strong dollar has also contributed tpthis trend in addition to pOrting the economy of the world and willy-nilly shoulder its the problems of productivity in the: United States. It would fate. If one of the economies of the three fails through mis­ be logical to assume that the blame for increases in imports taken management, the interrelationship among the three due to such cavities in American industry ought to be,accept­ would deteriorate and cause the spread of protectionism and ed by the Americans themselves :instead of their blaming ; the stoppage of the organic functioning of the free trading other countries. system. If this chaotic condition arises, the developing na­ However, we see in actual.praqtice a different response, tions, which bear cumulative debts, would lose their export A specific example is the result of the agreement reached by markets. causing them to refuse to honor their debts and bring the five-nation finance ministers conference on Sept. 22,

EIR May 16, 1986 Economics 9 /

1985. The high value of the dollar was reduced and the yen became higher. In the. field of electronics, this caused the Japanese electronic products imported into the United States Currency Ra�es to rise in price by 5 to over 12%. The complaint voiced over the several past years by Americans that the yen was too low had thus been greatly resolved, and the price differenti�1 The dollar in deutschemarks between Japanese and American products was greatly re­ duced. American products had now been placed at an advan­ tage, and a breathing spell was provided which the American 2.58 industry had wanted and which should have allowed the renewal of equipment or the reorganization that the industry 2.40 needed. However, with the rise in price of Japanese electron­ - f1 2.30 � " ic products, the American products also rose in price, almost ...- as though the Americans were sliding their prices along with I 2.20'r-J the Japanese. The result of this trend is clear: In spite of the ! \ - determined efforts of the Japanese government and the cen­ I""'- 2.101 tral bank to attain a high yen currency exchange rate, Amer­ 3/19 3/26 4/2 4/9 I 4/16 4/23 4/30 5/7 ican products seem to have merely ridden on the Japanese The dollar in yen price escalator, so that the price differential was not much New York late afternoon fixing different from the time before the yen exchange rate changed. I The advantage American products could have had was for­ 200 I feited by the Americans themselves. The profits accruing: from the increased price of these 190 i American products could be used to improve quality and' implement other production reforms. Bpt if this is not done 180 -- and the profits are merely distributed as dividends, then all ", - the sacrificemade by Japan to achieve a high yen value would 170 � l'\...... only result in raising prices for the American comsumer, and � 160 the trade gap between the United States and Japan would not . 3/19 3/26 4/2 4/9 4/16 4/23 4/30 5/7 be affected. . . . The dollar francs There is another matter that would cause serious damage in Swiss New York Iate..ner- tbiDg to the world economy if it is mismanaged. That is the cumft­ lative debts of the developing nations that has risen to $850 2.20· I billion by the end of 1984. The fact is that the problem is merely being postponed by delaying loan payments and pro­ 2.10 viding additional loans. An objective view of the problem shows that the principal ; 2.00) - has hardly been paid, and the major portion of the interest is I / being paid in formality only through additional loans from 1.90 J r\,-. the creditor nations. There seems to be no clear outlook for r--J "'- relief, let alone discovering a basic solution. Because this 1.80 "'" � '" huge cumulative debt of the developing nations remains on 3/19 3/26 412 4/9 4/16 4/23 4/30 5/7 the books, the debtor nations cannot carry out drastic eco­ The British pound in dollars nomic reconstruction policies, the creditor nations on the New York late afternoon fixing other hand cannot extend long-term loans .to the debtor na­ I - tions for economic reconstruction, and a constant threat of 1.58 ...J--""'" impending instability hangs over the international financial � J- system.... 1.40 No one can deny that the world economy cannot grow 1.30 adequately without the growth of the developing nations. Has

not the time come for us to consider some drastic policies 1.20

that can shelve the present book values of loans, notwith­ I

standing past history, and make the developing nations im­ 1.10

plement new and sound economic policies and help expand 3/19 3/26 4/2 4/9 4/16 4/23 4/30 5/7 the world economy?

10 Economics EIR May 16, 1986 Biological Holocaust Report

New disease epidemics in Brazil show water and sanitation collapse by John Grauerholz. M.D.

A series of catastrophic events is occurring in South and In addition to crop losses, watenationing was imposed Central America as the inevitable consequence of the col­ in 52 cities, and electricity was rationed in 554 cities and lapse of water management and sanitary infrastructure. Un­ towns. Most of the hydroelectric dams in the industrial area less major interventions are made into this situation quickly, around Sao Paulo were operating at 15-20% of normal ca­ these catastrophes will have worldwide impact. pacity. The Uruguay River, in fact, 4lried up. A total of 730 Water is essential to life. The human body is approxi­ municipalities werehlfected, with 31 under emergency con­ mately 70% water and while the average human can survive ditions due to "public calamity." for weeks, and sometimes months, without food, total're­ In the northeast, the traditionaI dtbughtarea, rainfall this striction of water will lead to death within one week. Besides year was 353% above normal. Most crops, roads, and bridges physiological requirements for consumption of water, water were swept away, and hundreds of people were killed. The , is essential for numerous hygienic functions, including wash­ only infrastructure that remained standing was the new rail­ of ing the body and garments and assisting in the sanitary roadbuilt between Gran Carajas and 5aoI Luis. disposal of solid and liquid wastes. To a great extent, the growth and development of civilized societies has been pred­ Disease strikes icated on the development of infrastructure and institutions The role of the International Monetary Fund and World designed to separate what we eat from what we excrete. Bank in aggravating conditions that allow for the spread of Conversely, when such institutions and infrastructure dete­ disease, was highlighted by the recent reportthat more than riorate under cultural and economic collapse, the result has 200 ,000 settlers in the Brazilian Amazon have been struck been epidemics of disease which accompany the' extinction by a highly virulent form of malarial These settlers are part of that society. of a $500 million World Bank project to tear down the rain­ The situation in Brazil illustrates all of the interrelate� forest and have 500,000 settlers cultivate it by "appropriate factors in the water-sanitation equation. Brazil has been suf­ technologies." As expected, the project has collapsed and fering an ecological holocaqst of major proportions due to pandemics are spreading. No health o� sanitary facilities were the biggest drought in the history of the country, concentrated built. The disease threatens to spread to Brazil's populated in the south, and the worst flooding in 50 years in the north­ areas as sick or discouraged S'ettlerscarry it back to the cities. east. In the south, where two-thirds of Brazil's,food is pro­ When these refugees arrive they;will swell the growing duced, over 50% of the summer crops were destroyed in the "marginal zones" of the major cities; such as Rio de Janeiro states of Sao Paulo, Parana, Santa Catarina, and Rio Grande and Sao Paulo. These marginal zonc:ls have become charac­ de SuI. Over half-million head of cattle died of dehydration teristic of all urban areas in the developing sector and are and Hunger, and over $6 billion of production was lost. characterized by high densities of population living under According to the Gazeta Mercantil of Jan. 23, 1986, the conditions of total lack of water, sanitary, and medical infra­ CFP company, which finances agriculture, projected that structure. As of 1983, 60 million of Brazil's urban dwellers farmers in the south would lose an estimated 10 million tons (67%) had no sanitation, and 13 million (14%) lacked safe of grains, including soy, com, beans, cotton, and rice. Pro­ water. For rural dwellers, 18 million (47%) had no safe water; jections at that time predicted losses of up to 70% of the com while 1983 figures for sanitation were not available, in 1970, crop and 80% of the bean crop. The situation, which had 33 million (76%) lacked it. become critical by the beginning of February, has been ame­ Typical of the conditions in these zones is the current liorated by winter rains since early April, but 50-60% of the outbreak of Dengue fever in Rio deJaneiro, which has af­ summer crops were lost, and the total loss in food production fected over 20,000 people. Dengue, an infectious tropical will be about 30%. disease, manifested by pains in the joints and back, fever,

EIR May 16, 1986 Economics II and rash, originated in Africa. The Brazilian Dengue fever death? The best solution, of ¢ourse, is comprehensive pri­ epidemic is centered in the Baixada Fluminense, a sprawling mary health care, defined at tbe World Health Organization slum and industrial center populated by over I million people conference held at Alma Ata in 1978.... The goal set at on the outskirts of Rio. Few of the houses have water or Alma Ata is above reproach, yet its very scope makes it sewer connections. unattainable because of the cost and numbers of trained per­ The state health secretary said the Novo Iguacu epidemic sonnel required. Indeed, the '% rld Bank has estimated that is "just the tip of the iceberg," because the disease is "knock­ it would cost billions of- dollars to provide minimal , basic ing on the door" of Rio and will spread to other cities. Dengue (not comprehensive) health s6vices by the year 2000 to all has spread to Guarulhos, a similar slum located at the edge the poor in developing countries." of Sao Paulo at the point where trucks enter from Rio. The Warren's proposal is a series of limited "high-yield," most fearsome aspect of Dengue is that it is spread by the "cost-effective" interventions ;which leave the basic under­ mosquito, Aedes aegypti, the same variety of mosquito which lying problems undisturbed but would produce transient re­ carries urban yellow fever. The director of the Rio State ductions in major diseases susceptible to relatively low-cost Superintendency of Medical Campaigns, Pelagio Parigot , measures. Warren comments: "Proper sanitation and clean calculated that it would take five years to eradicate the mos­ water make a substantial diffetencein the amount of disease quito. Fumigation with Malathion began in January, after in an area, but the financial investment is enormous. The four years in which mosquito control activities had been success of such projects also :depends on rigorous mainte­ suspended in Brazil because of IMF asuterity conditionali­ nance and alteration of engrained cultural habits." Indeed, ties. but the payoffof such an investment would be the conversion of continents, such as Africa ot Brazil, which are now breed­ Sabotage of water infrastructure ing grounds for pandemic diseases, into major economic To appreciate the fact that these are not just unfortunate, powers-something viewed by the WHO, and their Soviet but unforeseeable, developments, it is necessary to know hosts.at Alma Ata, as less than desirable. some of the history of approaches to the problems of water The basic premise underlying the WHO approaj.::h is that and sanitation in areas such as Brazil by such organizations the populations of the developing countries are, in them­ as the WHO (World Health Organization). On Nov. 10, selves, undesirable, and anything that would materially im­ 1980, the United Nations inaugurated the InternationalWater prove their existence, and thus increase their numbers, is Supply and Sanitation Decade (1981 -90) with the supposed anathema. There is little doubt that, historically, good water goal of providing readily accessible, safe, reliable commu­ and sewer systems have preserved and extended more lives nity sanitation and water supply by 1990. At that time, it was than all the physicians who have populated this planet. Thus conservatively estimated that 1.5 billion people lacked access the emphasis on "Clean your Clwn latrine" sanitation, in the to safe water. This coincided with the adoption of "Health guise of primary health care, is a way of ensuring that the for All by the Year 2000"by the World Health Assembly (the major water management projects needed to actually deal directing authority of WHO). This goal was to be achieved with the disease and famine ral1l1pantin the developing sector by "primary health care," as defined by the 1978 WHO con­ will not come into existence. ference at Alma Ata in the U. S. S.R. Since water supply and The Brazilian situation brings all of the issues of water sanitation are, by WHO and Unicef definition, a component supply, sanitation, water-relat�d diseases, lack of agriculture of "primary health care" (minimal low-cost medical interven­ water-management practices, desertification, and weather tions), this meant that the same low-technology, non-capital­ disruption together into one infernal cauldron which has the intensive approach would be used, i.e. , no major capital potential to ultimately degrade a great deal10f the biosphere investment in water or sanitary infrastructure would be made. existing way beyond the borders of Brazil, or even South As a result, 2.5-3 billion people now lack access to safe America. water. As much of a farce as "primary health care" is, the real Destruction of the rain-forest story is that, as far back as 1979, experts at the Rockefeller Brazil produces close to 30% of its energy from biomass, Foundation had decided that even this pathetic crust was too and several countries such as Peru, Bolivia, and Ecuador expensive to throw to all the beggars, and advocated "selec­ have similar ratios. The resu� of these insane "appropriate tive primary health care." In a paper presented at a meeting technology" policies imposed by the U.N.-IMF-World Bank on Health and Population in Developing Countries, co-spon­ technocrats is the ecological holocaust taking place in Brazil sored by the Ford Foundation at the notorious Bellagio Study right now. and Conference Center, Kenneth Warren, M.D. , of the The Amazon High (pressure) represents the world's cru­ Rockefeller Foundation, said: "What can be done to help cial weather moderator, and controls the rest of the world's alleviate a nearly unbroken cycle of exposure, disability and weather systems. A "high" weather system like Brazil's es-

12 Economics EIR May 16, 1986 sentially pumps gigantic amounts of water vapor up, like an all of the nutrients have been exhausted and they have to . inverted funnel (vortex), and circulates it around the world. move to another hilltop, a mile or two away. The rain-forest· The Amazon rain-forest is a very efficient"vapor-producing " can quickly reclaim this small plot of land by creeping vines. machine, that sends gigantic amounts of humidity up into the With extensive slash-and-burn agriculture, however, the rain­ atmosphere. The High, then, functions as a "steam engine, " forest cannot possibly reclaim the land. When one of the that drives the other major weather systems in the world. The European nobles, who happen to own most of the land in energy produced by this heat exchange is, immense. One Brazil and Venezuela, decides to turn his piece of the rain­ small hurricane hitting the coast of Florida expends more forest into pasture land for cattle, thousands of hectares of \ energy than the United States produces in a year. forest will be burnt at once. ; The Amazon High has shifted, and collapsed in size as a After five years, at most, the soil nutrients will be ex-. result of the destruction of part of this "vapor machine," the hausted, and the nobleman goes offand burns another few Amazon. Thermodynamically speaking, there has been an thousand acres of forest for his c�ttle. The original area, entropic collapseof the system, so that the energy throughput however, is still receiving several feet of water a year, and has been I,?wered. The Amazonirain-fOl:est has been de­ every mineral is leached out until all that is left is laterite, an stroyed for the purposeof using wood, charcoal, and biomass aluminum-silicon oxide that can support no vegetable life, for energy, slash-and-burn agricultural methods, and the and is harder than brick when it dries. This is how millions burning of rain-forest for the creation of pastures for large of hectares of desert have been cre_ted. Moreover, what is cattle ranches owned by the European nobility. happening in many areas in Brazil 'i� that these deserts are The holocaust did not occur suddenly. Over the past 15 acquiring a "life of their own," and spreading to still�existing years or so, the summer season has become drier and drier. rain-forest in a way similar to the' spread of the Sahel in .In areas whereit used to rain 3-5 feet of water a year, only a Africa. few inches are falling now. The famous falls of IguazlJhave A second major method of turning lush rain-forest into so little water now, that one can walk from one end to the desertis cutting down wood to make e:harcoal,and cultivation other. This is equivalent to Niagara Falls drying up. Con­ of sugar cane to make gasohol and bagasse. In this case the versely, areas such as the northeast, that used to have regular nutrients are taken away with the tr¢esand the cane, so that droughts, are drowning in rains pouring two to three times , again, nutrients are not replaced in the forest economy. The the normal amount of water. hypocritical charcoal companies can plant as many trees as Giant deserts are developing in areas where 10 years ago they want, to replace those they ha�e cut, but as they well there was lush jungle. Minimally several million hectares know, those trees will not grow because there are no minerals have become desertified in the last few years, but the actual and nutrients to feed on. Most impbrtant, it was a specific number is not known, and has probably been increasing ex­ order of the IMF to Brazil that has fdrced that counmy to rely ponentially. - on charcoal to produce steel. Brazil produces very little coke, The reason rain-forest becomes a desert quickly is that so that it has to importit , utilizing p¢cious foreign exchange the volume of rainfall, amounting to several feet per year, which the IMF wants used to pay debt. . leaches out all of the nutrients in the ground. The rain-forest, therefore., lives "offthe air. " In the United States, a forest is Reversing the biological collapse differentiated "horizontally." As one enters the forest, small Even if the destruction of the ram-forest is stopped right shrubs are encountered, then small trees, then tall trees. Pine now, it will take many years, possibly decades, for the weath­ trees will dominate certain areas, while maple and oak trees er system to return to "normal " again, if we simply allow will dominate other areas. "nature" to do the job. The best means to increase energy A rain-forest is completely different. The differentiation throughput in the biosphere is with ;massive agro-industrial is "vertjcal." There are five canopies of trees, each one with development and enormous utilization of energy inputs, in its own specializations. The forest floor is very clean, no the form of electricity, chemicals (fertilizers), and machinery leaves, or rotting trunks, such as · one finds in an American (tractors, etc.). The crash development of nuclear power is forest. Every nutrient is recycled immediately in a rain-for­ imperative for bothjndustrial production and to make,up for est, before it is washed away. If a Il(af falls, insects and shortfalls in hydroelectricity production caused by drought. bacteria that live in a symbiotic relationship with the tree Key to any attempt to deal with the situation in Brazil, or roots, will consume it immediately and recycle nutrients re­ Africa, or other similar areas in thei developing sector, will quired for growth back up the canopy. Therefore it is correct be construction of large-scale sanitation infrastructure, and to say the rain-forest "lives in the air. " comprehensive insect eradication programs, requiring the Under primitive slash-and-burn agriculture methods, a enormous financial investment which the IMF, the World . tribe of Indians will move into a spot, burn a small area in a Health Organization, the World Bank, the Rockefeller Foun­ hilltop and cultjvate it for two years, three at the most, before dation, and others findso distressing ..

EIR May 16, 1986 Economics 13 ! • i caine-derived revenues of one �ose Stroh, a Colombian drug Israel ' trafficker living in Miami. ' In any case, brother HarrY-who fashions himself "an old-style aristocrat, standing above certain kinds of things," according to one Israeli insid�r-is evidently on to some­ thing. Several months back, }Ve have learned, he wrote a semi-autobiographical account, available still only in He­ brew, attacking Raphael for hll/Vingruined the Recanati fam­ Dirtyba nker Recanati ily and the family banks, or fubds, the latter th� crime of all crimes among such clans. H� angrily laid claim to the gets un1-lsual message patrimony of father Leon R�anati, the founder of Israel Discount Bank during the 193Qs, and essentially accused his by Mark Burdman brother of being a usurper and 11fraud ! 1 Political wars and slanders . Political fireworks began to go off in Israel, as the late April/ One of our sources in Jeru$alem reports thata "renewed early-May holiday lull came to an end. The national banking storm of horror and protest" h�s broken out in Israel against scandal kicked off by the release on April 20 of a special the Discount Bank chief and against the chairman of Bank parliamentary commission report excoriating the heads of Leumi, Ernest Japhet, himself also a ·scion of an old conti­ Israel's major banks fo; having engineered a collapse of bank nental European family. Pressure is mounting among politi­ sh�s in October 1983, took some dramatic new turnsduring cal layers, bank depositors, and the press, for carrying out the working week beginning Sunday, May 4. the Bejski Commission deman�s that Japhet and Recanati be On May 7, Harry Recanati, one scion of the centuries­ prevented from practicing ban�ing for life. old Recanati family of Salonika and Venice, placed an ad­ The two culprits, however, arereportedly attempting every vertisement in the mass Hebrew-language daily Haaretz, trick in the book to stay on the jqb, up to and including making bitterly attacking his brother, Raphael, chairman of Israel the threat that Israel's economy would be collapsed by tile Discount Bank, whose forced removal from banking activi­ international banks if they we�e removed. During the week ties for life, has been demanded by the special parliamentary, of May 4, they met once with lsraeli Premier Shimon Peres, commission headed by Supreme Court Judge Moshe Bejski. who has remained publicly Ilium on their fate. An Israeli Brother Harry, himself a banker (anchored in the Geneva, Cabinet subcommittee formed! over the May 3-4 weekend, Switzerland-based Ralli Bank), charged that the Recanati with the aim of studying how ito implement the Bejski rec­ name had been "stained" by Raphael's banking practices. ommendations, is reportedly advising nothing more than a Going further, Harry pointed to the "hundreds of millions of slap on the wrist to the bank chiefs, or, alternatively, that the dollars" Raphael had stashed in various accounts and assets government simply implement the banking reforms suggest­ abroad, and called on his wayward brother to dispense these ed by Bejksi, but stay away from all matters of "personali- millions to the many people that he had robbed! ties. " Rarely is the intra-family "dirty laundry" of a prominent This position is less mysterious, given that the subcom­ European-Levantine family hung out so starkly for all to see. mittee head, Finance Minister Moshe Nissim, is a member The Recanatis are not small fry: They are one of the families of the Israeli Liberal Party, whose leaders have close political listed in the officialbook of the European aristocracy, the so­ or personal relations with Japhet and Recanati. called "Gotha." They have been up to many peculiar shenan­ A� documented in EIR ' s Special Report on Ariel Sharon and the Israeli Mafia igans, for centuries, including sponsorship of the mystical­ .' Bank Lfumi and Discount Bank are gnostic Cabbala among demoralized Jews in the 13th century central to the financial apparatus that patronizes Ariel Shar­ in Spain. on, Israel's current Minister of Industry and Trade. Hitting Brother Raphael has developed a particularly nasty pe­ at Japhet-Recanati, is hitting a� a very sensitive raw nerve. digree, that goes beyond even the allegations of insider trad­ Hence, it is not surprising to hear of a new pattern of ing and illegally regulating the prices of bank shares, as violent slanders against EIR foimder Lyndon LaRouche that documented in the Bejski report-and these allegations are have been published, since the mid-April period, in certain hardly mild. A Jerusalem source fold this correspondent on Israeli newspapers, particularly those with known links to May 8, "There's enough in that report to bury Bank Leumi either the same Soviet intelligence services that have struck and Discount Bank for a long time. We are staggered at the a geopolitical deal with Sharon, or to the organized crime number of laws broken." front, the Anti-Defamation Leajgue of B ' nai B ' rith. The slan­ Moreover, the Israeli Discount Bank's New York branch der pattern coincided with the Ithree and a half week trip to was recently discovered to have laundered $200,000 in co-' Israel of ADL national associa1le director Abe Foxman.

14 Economics EIR May 16, 1986 Peres: The economic situation could threaten the stability in these countries. In the absence of internal stability, there could be instability in the region. , i Q: We also know about the difficult economic situation in Syria. Could it have repercussions on the Middle East? Peres: Economic Peres: Syria is more in the Soviet orbit. The Syrians, as far as I know, have only $50 million in foreign currency re­ serves. The GNP dropped last year by 10%. There was ne�­ progress is the key ative growth in their balance of payments. The Syrians have started rationing electricity, in Damascus. It is a really tragic On April 21, Israeli Prime Minister Shimon Peres was inter­ situation.... viewed by four reporters from the Jerusalem Post, Israel's leading English-language daily. The interview, under the Q: Could it influence Syria toward war? title: "Peres: Key M.E. Problem is Economics/Prime Minis­ Peres: Anything could. But I think Syria is worried abol/t ter Fears Violent Arab Collapse," covered the entirety of page what happened in Libya. . I thiqk the Syrians are now 5, in the Post's April 23 edition. EIR here reprints excerpts very worried. from that interview, beginning with a question about what " I Peres plans to do on the subject of Israel's relations to Jordan Q: There is a tendency on your part now to focus on this and the Palestinians, "What are your plans?" economic problem, which is a threat to the Arab countries. l But perhaps this is also because there is no possibility now of Peres: My plans are mainly in the field of quiet diploma­ making a breakthrough towards peace? cy: ..'. And I am engaged in quiet diplomacy. I don't think Peres: True. But this [the prime min�ster's "Marshall Plan"] I should give details. And a new, very interesting dimension is also a political breakthrough .... The Americans have has been added. I know that it has encountered a lot of started working to implement the plan. They have contacted skepticism among us, but I am used to this. That is the all the Middle East states concerned. They are going forward economic development plan for the Middle East. . . . I have with a lot of energy. I have so far tal�ed about the plan with heard encouraging responses from all sides. two or three European leaders, whose reactions were enthu­ I believe that the most critical problem [in the Middle siastic. I have talked with Helmut Kotil and with Italian Prime East] today is the economic problem. There is a real danger Minister Bettino Craxi. I will talk a�out it with Mitterrand that it will cause the collapse of a number of states. and Chirac, and with British Prime MinisterThatcher. I bave Look at the economic situation of Jordan. It is really already talked with the Japanese. It .is not good if it [is re­ worrying. Jordan has close to half-a-million workers living garded] as an Israeli plan. It is best p�e. sented as a European- abroad. That is the main source of income, some $1 billion American-Japanese plan. per year. The host countries are beginning to send them (Later in the interview, Peres is a�ked about the econom­ home, or they are stopping sending money home. They used ic-policy debate within Israel, some qf the background to his to get oil cheaply. Now they don't. They used to export their firing of Finance Minister Modai in April, and about charges agricultural produce. That has declined. Tourism has fallen that he has selectively favored certain sectors, like construc­ off. It has been a bad year. Foreign currency reserves have tion, as a favor to industrial Intere�ts linked to his Labor dropped to a dangerous level of $400 million. Party.) One Egyptian told me that Egypt is threatened by the danger of becoming another Bangladesh. Egypt had a GNP Peres: Conceptually, growth means ... that every year of $39 billion. But this has just fallen by $4-5 billion. This is 40,000-50,000 youngsters join the economy. Growth must dramatic. This includes losses from workers abroad, a drop make places of work for them. Tht:lre is no economy that in revenue from the Suez Canal, the drop in tourism, the doesn't plan years ahead. Then there �s the problem of givilfg decreased revenue from oil. And Egypt is not being allowed credit to the productive sector. . . . ,(here is need to give the to carry out its agricultural development plans. The canal that productive sector credit to enable it tq function [at acceptable was to have passed through Sudan has been stopped because rates of interest]. Nobody can pay '60-70% interest. It is of the civil war. ...The situation is really unbearable. And madness .... I believe that without aid , the stability of these countries will In general. economics is not a mechanical matter, ... be endangered. not a matter of two plus two is four. If that was all, anyone could put together an economic plan,and implement it. The Q: Could the economic threat endanger the pea<:etreaty with problem is how to take several groups of people and to get Egypt? them to \\ork together to make a coalition ....

EIR May 16, 1986 Economics 15 I gy. The distillation process d�s not remove the heptachlor. Agriculture So the heptachlor-contamina�d "Funk's G" continued into the mash process. and contardinated the animal feed. The Valley Feeds company should not have let this hap­ pen. But the}nternational giant Ciba-Geigy should not have Swiss cartel poisons been disposing of their seed com in this fashion, knowing that there are hundr(!ds of cash-strapped farm supply com­ U. S. dairy cows panies where a slip-up might occur. Ciba-Geigy has refused to admit any connection to the by MarciaMeny disaster, in a classic, high-hartded manner. This is typical of the functioning of the foreign, oligarchy-controlled seed, . food processing, and commo�ity companies coming t� doin­ In all the national media coverage of the animal feed disaster inate the U. S. farm and food !fctor. Funk Seeds Internation­ in the Arkansas region this year, in which feed containing the al, run by Ciba-Geigy out Qf its original headquarters in pesticide heptachlor was wrongly fed to dozens of dairy herds Bloomington, claims that a ce�ain "Midwesternbroke r" was and some other livestock, no attention was focused on the responsible for dumping this !' treated seed grain in such an origin of the contamination-Ciba-Geigy, the Swiss phar­ irresponsible wa . ' y maceutical cartel, which "should have known better. " As or five years ago, the �wo Swiss chemical cartels­ It takes at least two years for the heptachlor to work itself Ciba Geigy and Sandoz-alope controlled most of the U. S. out of the animal's system, but it shows up right away in the sorghum and alfalfa seed supplies. Between 1968 and 1978, milk produced. Dairy farmers with affected herds have not large companies-including $os.1 prominently, the Europe- been indemnified properly, and dairy farmers across three . an oligarchy-run names, suchias Shell, Cargill, Sandoz, and states face a forced shutdown, even faster than the general Ciba-Geigy-bought 30 niajqr seed companies. depression would cause. A 30-year seed sales rep�sentative for one of the few Ciba-Geigy, and a few other oligarchy-controlled Euro­ remaining independent U. S. �eed companies, Pioneer Hy­ pean giants, like the Swiss company Sandoz, or Royal Dutch brids, said this kind of careleSs disposing of the "Funk's G" ! Shell, have, in recent years, been buying into a monopoly should not have happened in the proper course of the seed position in the U. S. seed supply business. Ciba-Geigy owns trade. the former American company, Funk Seeds International, After Food and Drug Adm,nistration (FDA) officialscon­ whose hybrid seed com-treated with heptachlor-was the firmed in early March that Valley Feeds was selling the hep­ source of the contamination. tachlor-tainted mash, they clo�ed the plant and tracked down The chain of events went like this. In 1985. a local . where the contaminated feed went. Valley Feeds had approx­ independent feed supply company, Valley Feeds of Van Bur­ imately 300 customers, and three barge loads of the contam- '

en, Arkansas, was buying cheap grain for its ethanol still. inated feed were involved. , Valley Feeds, and similar feed suppliers, have started up such At one point, more than 80 dairy herds were quarantined, side-lines in order to get extra income from the gasoline over several states, including :Oklahoma. Missouri, and Ar­ additive to try to stay solvent. After the ethanol is distilled kansas. Dairy products proc�ssed from this milk were re­ out of the grain batch, the leftovergrain mash is sold as cattle called. Beef products, possibly from this area, were sampled feed-a nutritious mix. At some point, discount seed grain for possible contamination. the heptachlor lodges in the i was offered to Valley Feeds, for use in the still . animal's fat cells, and takes Up to two years to flush out, Seed grain is permitted by government regulation, to be , meantime tainting her milk. treated with heptachlor-one of the few agricultural uses still The total amount needed tp indemnify the affected farms allowed in the United States, since heptachlor has been banned is in the range of $4-6 million. As of April, onlY'$95,000was for general agriCUltural u� since 1978, aftersome tests showed in the federal indemnificatiorlfund. Congressional authori­ it was carcinogenic to animals. By law, all seed grain treated zation is needed for more. with pesticides that might be toxic is dyed a bright red to Eighteen of the dairy farqlers, who are members of the prevent accidental livestock poisoning. Seed companies that Mid-Am section of Associated Milk Producers, Inc. (AMPI), ' have leftover seed stock each year arrange to sell it the next report that during February they marketed $125,000 worth season in a "discount blend," or dispose of it in a land fill, or of milk. If it takes only two y�'ars for the heptachlor levels to take measures to make certain it stays out of the food chain. drop to below tolerance, their total income loss will over $1 .5 If the seed is planted, germinated and grown, the heptachlor million, for just the 18 faniJ.er$. The April 25 Mid-Am news­ is gone. letter said, "Having to dump their milk, not being able to sell ' The seed grain bought by Valley Feeds was "Funk'sG"­ their contaminated cattle, and being threatened with lawsuits the com hybrid brand of Funk Seeds International, the by animal welfarists, the dairymen have no income; nor do Bloomington, Illinois company wholly owned by Ciba-Gei- they have hope for any for m�ths."

16 Economics EIR May 16, 1986 Mrica Report by MaryLalevee

Nigeria fights to solve crisis New York beginning on June 12. The The current talks with thelMF are evidence of Nigeria's talks with the IMF taking place now desperate determination to finda solution to its economic crisis. are evidence of Nigeria's desperate determination to find a solution to its economic crisis, but there is hardly a chance that the . IMF will change its line on calls for a devaluation. For the Babangida government to accept that now, would mean flmajor loss of face T alks.are being held in the Nigerian projected income of $8 billion, com­ and popularity for tilemilitary regime. capital of Lagos in the first week of pared to $25 billion in 1980. Nigerians arealready suffering the May, between officials from the World At the end of February, the gov­ effectsof the austerity program: Bread Bank and the International Monetary ernment was forced to freeze import is scarce, with the price of flour in the Fund and Nigerian Finance Minister licenses altogether, and one business­ shops at twice the official price. A bag Chu Okongwu. Following several man was quoted in the Financial Times of salt used to co�t N7, now it costs months of public debate on whether or saying, "I have written this year off. I N20. A bottle of gtoundnutoil, which not to accept IMF conditions for a $2 will just close my eyes and keep used to cost N7, now costs N25. billion standby credit, which included going." Nigerian industry depends on The one chance for Nigeria to es­ a large-scale devaluation of its curren­ imports of spare parts and raw mate­ cape from this ecoMmic crunch, with cy, the naira, Nigeria officiallyreject­ rials to keep producing, and even with the resulting drastic austerity, would ed IMF demands in December 1985. higher import levels last year, it was be to link up with jOther debtor coun­ In the 1986 budget, announced on only operating at an average capacty tries, not only in Africa but also in Jan. 1, the Nigerian head of state, of 20%. Latin America. Organizationof Afri­ Genera Babangida, announced that Nigeria is attempting to resched­ can Unity chairman and Senegal's Nigeria was imposing a 30% ceiling ule its medium- and long-term exter­ President Abdou l>ioufs call for an on the ' percentage of export revenue nal debts, estimated at $4-7 billion, urgent conference :o'n African debt is that would be used for repayment of owed to a group of Western nations still on the agenda; .and OAU sources debt service. While the 30% figure is (the "Paris Club") and private banks have said that a d4bt conference will still high, it compared with a level of (the "London Club"). Several days of be "far more irqportant" than the 44% of export revenue which would talks with Paris Club representatives planned U.N. em4rgency session on othe�ise have been used to pay debt in Paris ended on April 26, but the Africa, to take pl�ce May 27-3 1 il.l service. General Babangida also an­ Paris Club is insisting that Nigeria first New York. No date has been set for nounced a'severe austerity budget, agree to a deal with the IMF as a pre­ the debt conference, but it could well cutting public sector spending, cutting condition to rescheduling. Earlier talks take place before t�e summer. government employees, drastic cuts at the end of Marctt in London with The weekly African Concord re­ in imports, and the banning of certain the London Club had led to an'agree­ ported in its issue 4ated March 13 that imports such as some food products ment by the commercial banks to grant "the radical Latin American bloc, (Norway for instance is suffering the a 9O-day moratorium on repayments headed by Brazil aitd Peru, could well annual loss of $250 million of exports of principal. Okongwu met the steer­ be joinedby Nigeria, which in its pres­ of stockfish to Nigeria, banned in Jan- ing committee of the London Club on ent circumstanc�sl could feel it has . uary). April 22 to resume discussions, and nothing to lose by unilaterally declar­ Nigeria's economic problems have the London Club insisted that the out­ ing a debt ceiling.�' In a recent inter­ worsened month by month this year: come of Nigeria's meeting with the view, President iSabangida, when The dramatic fall in the price of oil, IMF and World Bank should be made asked whether he would consider co­ which accounts fof 97% of Nigeria's available to them. operating with Bqzil and Peru, said exports, has meant that Nigeria's in­ Keeping up the pressure, the Lon­ the situation in Lat�n America was dif­ come this year might be as low as $5 don Club is sending a delegation to ferent, but he did not rule out cooper­ billion or even less. The budget was Lagos for further talks with Okong­ ation "If that's something commonly based on an already-low estimate of wu, and major talks are scheduled for acceptable to all thOse involved."

EIR May 16, 1986 Economics 17 Foreign Exchange by David Goldman

Dollar slide continues after summit sions," i.je., untraceable reflows of It is not Japanese investments, but dirty money, that threatens narcotics �nd other criminal revenues, the dollar. it is hard to tell what the underworld's currency �dvisers are saying. How­ ever, the United States borrows over $30 billion a year in the Eurobond market, largely from numbered Swi'ss bank accounts which hide the income of what we call "Dope, Inc." T he U.S. dollar fell to 164.30 yen receivership is emerging to be an old­ A subtle shift away from dollar May 8, yet another postwar record low fashioned foreign-exchange crisis, in paper has been under way in the Eu­ against the Japanese currency, and which the falling currency forces the robond market for weeks, as the hold­ swung wildly on European markets, monetary authorities into ever-more­ ers of those Swiss bank accounts shy in the wake of the May 6 declaration bitter austerity measures. away from the dollar. This is particu­ of heads of state and government at In the fortnight preceding the sum­ larly marked in the Floating Rate Note Tokyo. It appears that the foreign-ex­ mit, most financial press and com­ market, ile., long-term bonds whose change markets will re-stage the re­ mentators speculated that the Japa­ interest rate varies according to the sponse to the April 10-11 International nese would cease to invest in U. S . current LOndon dollarinterest rate . For Monetary Fund meetings, which pre­ Treasury securities at a $50 billion an­ overseas 'investors, floating-rate se­ pared theTokyo summit, namely, push nual rate , following the 35% decline curities r�present the purest form of the dollar down a further ratchet. The ofthe dollar. Fears of a Japanese with­ . dollar inVestment. Fixed-rate securi­ IMF meetings, which made clear that drawal from U.S. markets were sup­ ties may appreciatewhen interest rates the U.S. had no intention of support­ posedly behind the 7% fall in the value fall, and therefore may have an addi­ ing the dollar on the foreign-exchange of U.S. long-term government secu­ tional speculative value, since con­ markets, and that the Germans and rities during the week ended April 25. ventional wisdom associates the fall­ Japanese had even less intention of In reality, the Japanese have less ing dollat with lower interest rates. inflating their economies to help the intention of withdrawing support for But floating-rate securities lose their dollar's supposed fundamentals. This the dollar, and dollar markets, than worth along with the falling dollar. amounted to an agreement to force the anyone else in the world. The same During the first quarter of 1986, dollar down further. institutions that invest in dollar secu­ the issuance of Eurodollar floating-rate The West Germans and Japanese rities are tied to industrial firms who notes fell to about $6 billion, or rough­ were reluctant to accept the inane pol­ exportmanufactures to the U. S. They ly half of the average quarterly level icy guidelines demanded by the Trea­ dread a dollar collapse, a point u"nder­ for 1985; Salomon Brothers com­ sury Department, i.e., the "locomo­ scored in repeated public statements mented oln Aptil 29, "In particular, tive theory" circulated in 1978 by the by Prime Minister Nakasone, for ob­ U.S. banking institutions shied away Carteradministra tion, the last time the vious reasons. from the ' primary market, as credit dollar was in deep trouble. According In fact, the leading Japanese se­ considerations forced their debt to to this, other countries should pump curities houses have given strong as­ trade at substantially depressed levels their economies full of hot air, along surances that they will continue to bid in the secpndary area." with the U. S. , to help stabilize curren­ for U.S. Treasury securities. That is, the Swiss bank accounts cies. The consequences of the Tokyo The actual source of problems for did not want dollar paper, and least of agreement will hurt them just as bad­ U.S. securities markets lies not in Ja­ all did they want the long-term paper ly. pan's $50 billion per annum contri­ of U.S. banks, given the state of the As noted elsewhere in this issue, bution to the financing of the $150 U.S. banking system. These are shots the Tokyo communique screens but billion U.S. <;urrent-account deficit, over the Treasury's bow, from Amer­ thinly a repetition of this perverse but to the $80 billion in international ica's primary creditors . America is agreement. More than that, it makes a hot money which finances most of the dependent on inflowsof dirty money, matter of international policy, the re­ rest of it. and the o'l"ners of dirty money are sit­ ceivership of the United States at the Since $50 billion of the $150 bil­ ting at the head of the table at the cred­ hands of its creditors. The form of this lion shows up in "errors and omis- itors' committee.

18 Economics EIR May 16, 1986 by Marianna We rtz j Labor in Focus !

P-9 strike: labor's nightmare a major injury; for 1986, the company The strike of United Food and Commercial Workers Local P-9 in projects that 36% of the Austin plant's Austin, Minnesota is more than a bitter labor struggle. workers will be disabled due to injury. Ultimately, the I issue confronting trade unions todaYi is the same that confronted those who started trade unions and fought to win union wages and working conditions for the whole work force at the end of the 1930s. Then, too, the question was posed in T he strike of United Food and Com­ concession bargaining, conceding the the context of a pie too small to go mercial Workers Local P-9 in Austin, severe nature of the economic crisis. around, necessitating "sacrifice"from Minnesota entered its ninth month in This is the AFL-CIO's current strate­ workers lucky enol!lgh to have jobs. May, further from settlement than gy, under the mis-leadership of Trila­ Then, too, commurlists and populists ever. The strike, by more than 1,000 teral Commission agent Lane Kirk­ swarmed around abd, indeed, often Hormel Meat Co. workers, has be­ land. The P-9 strike �tands for an end led strikes, with their own ends. come the cause celebre among radical to concessions, replacing conciliation , The union movement won, to the trade unions and the left, attracting with simple militancy. As Ray Rog­ extent that it forgejd an alliance be­ attention like flies from tt).e same ers, the professional agitator whom P- tween labor and in�ustry based on a groups that buzzed around farm work­ 9 hired to run its "corporate cam­ shared commitment to save the nation ers organizer Cesar Chavez at the paign," says, "You can create a mo­ from the threat pos¢d by fascist take- height of his nationwide boycott. ment in history, so people can tum to , over of Europe, and an equal commit­ Among those vying for control of the Austin and say, 'That's where they ment to making America a proud in­ strike are Jesse Jackson's Rainbow turned back the onslaught against the dustrial nation following World War ,,, Coalition, and FBI-controlled neo­ labor movement. II. Nazi networks involved in radical farm The second, more long-term is­ It took battles, most far bloodier layers in the Midwest. sue, is what degr�e of control national than what P-9 has faced, to forge that In an action indicative of the bit­ unionleadership should exercise over alliance. terness of the strike, on May 6 Local local affiliates. Kirkland wants more Today's unionsj mere skeletal re­ P-9 filedsuit in federal courtin Wash­ top-down control; P-9 wants indepen­ mains of the unions forged in the bat­ ington, D.C., seeking $13 million and dence of action. Both issues will be on tles of the 1930s and ' 40s, must finda an injunction to prevent the interna­ the table at the August executive board similar solution, shunning both the tional union from seizing control of meeting of the AFL-CIO, when Kirk­ Jesse Jackson-style empty militancy the local by placing it into receiver­ land will unveil his plan for coping and Lane Kirkland's capitulationism. ship. In mid-March, after seven des­ with the ongoing collapse of Ameri­ That solution lies s�ngularly with the perate months of the strike, UFCW can trade unions. political movement growing daily InternationalPresident William Wynn The P-9 strike also epitomizes the around the LaRouche presidential ordered the strikehalted , saying, "The real nature of the depression in this campaign and its hundreds of associ­ strike is called off as of now," and country. The strike is not only over a ated candidates. threatening receivership for the local. wage level of $10.69 per hour, itself It has been reliably reported that Forty dollars a week of strike benefits hardly a living wage. It is over wheth­ Jim Guyette voted for Lyndon La­ were also cut. er Hormel will spend the capital to Rouche for President in 1980. A man This strike has become the symbol reduce safety hazards in the plant, with the intelligen� to do that surely of two key issues facing the labor something they are unwilling to do in can muster sufficieQt courageto act on movement in the United States, faced face of cutthroat competitionfrom such his' better instincts now, to stop the P- with a decline in the organized work non-union shops as Armand Ham­ 9 struggie from btlcoming the play­ force from l-in-3, 30 years ago, to mer's Iowa Beef. P-9 President Jim thing of the Trilateral-run liberals. This under 20%-I -in-5-today. Guyette calls the "flagship" plant a strike could be the (allying point for a The first issue is whether labor ne­ "walking infirmary." In 1985, over real battle against the phony alterna­ gotiations should be oriented to one-third of the workers were offwi th tives posed by Kirkland and Jackson.

EIR May 16, 1986 Economics 19 . \J.; BusinessBrlefs

Agricuhure ciation of Utilities in Frankfurt said that finn'sAtlantic City casino one night in No­ "several hundred thousand jobs woUld be vember '1982. After losing about$300, 000, Cattle industry: give affected." With a 36% share of the nuclear the unidentifiedcustomer was given the ap­ power sector in the country's total energy proximately $800,000 balance of his ac­ surplus cows to Europe supply, the future of a good portion of count in Iqer bills. 162,000 utility workers and about the same Scheduled to testify before a federal number of workers in the nuclear-building grand jury in Newark in May are the other­ The beef-cattle industry wants President industry would be in severejeopar dy. wise unidentified"important marketing em­ Reagan to donate surplus American dairy Not counted in this estimate are thou­ ployee", of Golden Nugget's Atlantic City cattle and beefto Europeans affectedby the . sands of workersof the nuclear engineering casino; lthe . casino's president, D. Boone . Soviet nuclear accident, according to UPI. and servicing sector, whose future and in­ Waysori; and Golden Nugget Chainnanarid "We have dairy cows running out of our come depends on the investment of several Presideit Stephen A. Wynn. ears as a result of the dairy extennination billion deutschmarks per year in nuclear program," Donald Butler, president of the powergeneration. National Cattlemen's Association, said on Nevertheless, the Gennan labor move­ May 7. In the new government herd termi­ ment continues to supportsuch an alliance'. nation program, approximately 10% of the Franz Steinkuehler, acting vice-chainnanof Drug traffic national dairy inventory will be eliminat­ the GennanMetal Workers Federation, said ed-supposedly to eliminate "surpluses." in an interview with Neue Hannoversche Dea� & CO. emerges Explaining his request to the President, Presse on May 6 that he "would not princi­ Butler said that giving dairy cows and dairy pally rule out a red-green government coa­ from bankruptcy beefto people whose animals may have been lition for Bonn in 1987." harmed by radioactive fallout "not only dis­ He addedthat the labormovement should Deak & Co. emerged in early May from poses of the meat without doing further not reject the Greens as a partner "just be­ Chapter:II bankruptcy-law proceedings un­ damage to the beef industry, it allows the cause they are anti-industrialist in their out­ der the ' control of an Australian financial American peopleto visibly expresstheir hu­ looks." Steinkuehler is a prominent member servicescompany . manitarianism in a meaningful way." of the laborcommission of the Gennan So­ Under tenns of a court-approved reor­ "By donating it to the areas affected by cial Democrats. One ofthe Metal Workers' ganization plan, Deak & Co. has become a the Chemobyl nucleardisaster, we can avoid national executives, Horst Janssen, attend­ subsidiaryof DeakIntemational , Inc., whose filling government warehouses with dairy ed the February convention of the Green chief businesses are retail foreign cu�ncy beef, and by donating live program dairy Party as a guest speaker. and pr¢cious metal sales, travelers chec�s cows, we can avoid overloading the packing and overseas remittances in foreIgn curren­ industrywith so many additional cattle com­ cies, and a foreign co1\eclion service for ing to market . ., busineSlSes. Nicholas Deak, the gold . and foreign­ Money Laundering exchange trader, was forced to close two units of his finn, Deak-Perreta, in Noveni­ Casino employee ber 1984 when the President's Commission on Organized Crime revealed his ties to Co­ European Labor under investigation lombiail drug-trafficker Eduardo Orozco. who rrioved approximately $97 million Red/Green alliance An employee of Golden Nugget, Inc. 's At­ through the Deak-Perera New York City lantic City casino-hotel is currently the tar­ branch in the early 1980s. Deak's officers will cost jobs get of a federal grand jury investigation con­ managed to forget to file any reports on the cerning a possible $800,000 money-laun­ cash deposits. A Social Democratic Party(SPD) and Green dering scheme involving personsconvicted Arkadi Kuhlmann. fonnerly executive Party coalition controlling the Bonn govern­ of drugtrafficking and money laundering in vice-president of Deak & Co. ·s Canadian ment would kill at least 250,000 jobs, ac­ April, according to documentsthe company operati(ms, has been named president and cording to private estimates among the Ger­ filedwith the Securities and Exchange Com­ chief e�ecutive 'officerof Deak Internation­ man utilities. mission. al. Mr. Kuhlmann. 38-years-old, succeeded Asked by EJR on their evaluation of the A Golden Nugget spokesman said in the a Singapore lawyer. Chan Cher Boon, who effects the realization of the anti-nuclear ' filing that the grand jury investigation "ap­ was brieflythe head of Deak & Co. while he policy of the SPD and the Greens would parently stems" from a customer who de­ tried to�put together a takeover plan, which have, a spokesman for the National Asso- posited $1 � I milIion in sma1\ bills at th!! later was rejectedby creditors..

20 Economics EIR May 16, 1986 Bf:iefly

• PRESIDENT REAGAN, was asked at an early May press confer­ ence about a dCiadline for companies, especially oil firms,to get out of Lib­ Martin Properties Ltd., a Brisbane, contacts that would enable them to reinte­ ya; he replied� "Yes, we have told Australia, concern with interests in stock grate into the "legal" business world as those that have a share in oil firms in ilOd commodity trading, insurance, and real quickly as possible. Libya . . . tha( they are to dispose of estate, has bought a 75% stake in Deak In­ their holdings by June 30. ternational for $12 million. Steel • SELA, the Latin American Eco­ nomic System� says that steel exports Union attacks threat from Brazil, Mexico, and Venezuela Free Enterprise to national security are down 16% from 1984 levels be­ cause of U.S. protectionism. All three Colombian drug dealers nations have bCen forced to sign vol­ The United Steelworkers union charged on untary steel qUota agreements with bid for respectability May I that the decline of the U.S. steel the United States. industry-particularly its capacity to pro­ Carlos Tulio Gomez, a mafiosoawaiting ex­ duce steel plate-has significantly weak­ • FIRST BOSTON Corp. has been tradition to the United States, gave a press ened the country's national defense posture. charged by the SEC with illegally conference in early May in which he said The union released federal studies trading on inside information in the that all the "big cheese" of the. Colombian showing that U.S. steel makers no longer stockand options of client firmCigna mafia are ready and willing to hand them­ have the capacity to produce enough steel Corporation. First Boston has agreed selves over to the national authorities. but plate to meet national nee�s in the event of to give up profitsof $ 132 ,000and pay not to the United States. military mobilization. The press conference a fine of $264�000 to avoid trial, and The criminals pledge to bring with them in Bethlehem, Pennslyvania, was publi­ has also agreed to review its so-called all their money and set up companies that cized in a full-page ad in the Washington China Wall security procedures. will in a short period of time create a mini­ Post headlined "Steel Mayday!" The ad said Meanwhile, the Bank has issued an that while 27,000 people worked Bethle­ mum of 500,000 jobs. They say tm:y want order threaten�ng to fireany employ­ II, to hold dialogue like that held with former hem's mills during World War today there ee who discus/ies the case with out­ President AlfonsoLopez Michelsen and the are only 4,100 steelworkers there. Since siders. attorney general in ·Panama in 1984. They 1983, the industry's overall steelmaking ca­ also said that they will hand over all their pacity has dropped by 15%. This was the • AR�ENnNA decreed on May 7 cocaine . laboratories because, "We don't third news conference held by the union as that an 8.5% "emergency" wage in­ need them anymore. since we have made all part of its "Communities in Distress" cam­ crease go immediately into effect for the money we want and now we want to be paign, and featured Rep. Don Ritter (R-Pa.),­ private workets and 5% for state em­ normal citizens. serious in our businesses and 50 community representatives. ployees. The announcement came and meeting all the legal norms." In confirmation of the steelworkers union after reports Qn May 6 were issued . Tulio Gomez says that they intend to claims, government statistics released in that inflation had risen 4.7% in Feb­ prove that they had nothing to do with the early May showed that unemployment re­ ruary, making a total inflation of murder of Justice Minister Rodrigo Lara mained high in the first quarter of 1986. with 14.8% so far Jhis year. The national Bonilla in 1984. and wfll answer to all particular weakness in the industrial eco­ trade-union, the CGT, rejected the charges against them pending in the courts. nomic sectors of oil, gas, and manufactur­ increase, but said it would not break . Tulio Gomez is not himself a "big cheese." ing. off talks with the government. but is believed to be a front-man for the The rise in jobh�ssness between January capos . and February-from 6.7% to 7.3%-was • JAMAICAN PRIME Minister According to the Colombian daily 5 pm the sharpestincrease in six years . It dropped Edward Seaga, with elections ap­ of May 7 , the consensus among Colombian in March only to 7.2%. White House proaching, -h� staged a public spat government officials is that the mafia pro­ spokesman Larry Speakescommented, "We with the IMF. Seaga, who has imple­ posal elaborated by Tulio Gomez is a straw expect a continued steady downward trend mented IMF ,rders to turn Jamaica in the wind to see how the presidential can­ in the unemployment rate. " The Govern- . over to drug trafficking,'now rejects didates Virgilio Barco (Liberal Party) and ment Accounting Qffice also released a re­ IMF recommendations as wrong· Alvaro Gomez Hurtado (Conservative Par­ port the same week showing that more than "after long ye ars of essential ' but ty) respond. Should either prove favorable I million workers lost their jobs in 1983 and · painful adjustments. " He added, in any way, the capos would go into ac­ 1984 because their companies either went however, that 'he had a "contingency tion-presumablypouring money and other out of business or fired workers; two-thirds . plan" ready in case the IMF insist on . such into their last-minute campaigns and of the job losses were among larger firms in their policies . vote-buying. and beginning the process of the manufacturing sector.

EIR May 16, 1986 Economics 21 1I 1 j TIillFeature J

The LaRouche -/ phenomenon in

" American politics j by Criton Zoakos

The May 3-6 primary elections in Texas, Ohio, and Indiana produced a patternof votes for candidates associated with Lyndon H. LaRbuche, Jr. which was identical to that which was initially seen at the Illinois March J8 primaries, which originally brought the LaRouche candidates' movement to national prominence: The La­ Rouche candidates command a consistent average 2lS% of the Democratic vote. In . some individual races, the' pro-LaRouche vote g�s above 50%, as in the now- celebrated races for Illinois lieutenant governor �d secretary of state, won by LaRouche-affiliated Mark Fairchild and Janice HLt. In many other individual races, the pro-LaRouche vote may go up to 43%, wbile in a few others down to 6- 7%. The average for all races in which LaRouche clindidateshave run, so far this year, is about 25% of the Democratic vote . . The important difference between the May 3-6 primaries in Texas, Ohio, and Indiana, on the one hand, and the March 18 Illinoi� election, is that after Illinois, the LaRouche candidates-and their voters-were �ubjected to an unprecedented stream ofabuse, slander, and intimidation, originating in some verypowerful and influentialquarters . One politician in Austin, Texa�, said: "LaRouche sustained a full frontal assault in Texas, and it didn't slow him down at all." Reactions at higher levels of the anti-LaRouche camp bordered closer to hys­ teria after May 6, than they had been during the earlier, Illinois primary. The reason was that the LaRouche vote held its own dc;spite Paul Kirk's Democratic National Committee's extraordinary efforts to iQtidtidate voters . In all instances,

LaRouche candidates. spent, on the average, betwee, n $50 and $100 intheir cam- paigns. In all instances, they faced massive hostili1!Yfrom the media and most of the established party leadership. In most instances� they ran against incumbents. For every one dollar spent by LaRouche candidate!;, there were between $1,000 and $5,000 spent by their opponents. In the cases 9f Texas and Ohio, large-scale vote fraud and vote stealing was observed and documented. The fact that the 25% average for LaRouche candidates held even under:these circumstances, demon­ strated that the, not-yet-expressed, pro-LaRouche potential inside the Democratic Party may run well above 50%.

22 Feature EIR May 16, 1986 Lyndon LaRouche, the only declared 1988 presidential candidate, meets the press at the National Press Club on April 9, 1986 in Washington D.C.

This has created a situation in American politics which, ac­ While the old Democratic establishment is hell-bent on ' cording to a dedicated enemy of Mr. LaRouche, "has not this suicidal course, the Republican Party establishment is , existed in American politicsin the last 200years ." displaying a premature smugness. A successful LaRouche After the results were in, on May 7, Terry Michael, the onslaught against the entrenched ultra-iiberal Democratic p(Css spokesman of the Democratic National Committee, Party establishment does not necessarily mean gains in votes proclaimed to the press that the DNC policy to contain La­ for Republican candidates. Mr. Fahrenkopf must, surely, Rouche had "worked." As proof, he cited the allegation that know that it was the traditional Democratic Party voting base "no LaRouche candidate won any 'significant' races, as they of blue-collar workers and farmers Who voted President Rea­ had done in Illinois." The DNC, thus implicitly stating that gan into office, because their party's liberal establishment it is happy with a LaRouche vote just below 50%, has ac­ had disenfranchisedth em. This same voting base-which is knowledged that LaRouche is its "main opposition." The the decisive factor in American politics-is now viewing the chairman of the Republican National Committee, Frank Fah­ anti-LaRouche mobilization of the DNC, as another drive to renkopf, had a different interpretation-he pointed out that disenfranchise them. during the primaries, so far, more Republicans went to the Also, this same voting base, is profoundly disillusioned polls than in the past, and fe wer Democrats. He further added, with the domestic economic policies of the Republican "While the Democrats are campaigning to stop the LaRouche administration. They are the millions who werenever touched candidates in their ranks, the Republicans will be going out by the fake "Reagan recovery." All they see in the D�C's campaigning for their candidates. " anti-LaRouche antics is the DNC'sand the Liberal Establish­ Mr. Fahrenkopfs observation was just a little bit closer ment's commitme�t to leave thept defenseless against the to reality than Michael's, yet not too close: It is a fact, that "structural reform" of the economy, started by President Jim­ since March 18, the only campaigning that the old Demo­ my Carter and continuing unabated under President Ronald cratic Party establishment has done, has been against La­ Reagan. Rouche rather than the Republican incumbents or chal­ The "LaRouche phenomenon," a mass movement of some lengers. In fact, the Democratic National Committee went one thousand citizen-candidates,. cannot be defeatep by its on record to state that those LaRouche candidates who have rivals, unless it is understood. And it cannot be understood, already won positions for the November Democratic party except in its own terms. Trying to understand it within the ballots-there are five for U.S. Congress, so far-will not frame of reference of its rivals is fruitless labor. To defeat it, only not receive any official Democratic Party support, but one has to understand it. To understand it, one must accept the DNC will advise voters to vote for their Republican op­ its terms of analysis. To accept its terms is to be defeated by ponents. it.

ElK May 16, 1986 Feature 23 I ,j. The "secret," so to speak, of the "LaRouche phenome­ scheduled from May 3 to Jun� 2. With a new infusion of non," is that it is based on the reality-orientation. as distinct money from Pamela Harrimanl the DNC, under Paul Kirk, from a "perception orientation" toward which media and set up a mass mailing operati�n, a phone bank, and a few politicians are geared, of the most crucial, blue collar-labor­ additional paraphernalia, to la*nch a "voter education cam­ minority constitUency of the U.S. population. To illustrate paign" against LaRouche. Thelprincipal "educational mate­ the point: A "perception-oriented" person is the one who, rial" was a hysterical, libellou$ "informational packet" pro­ having been run over by an automobile, will not realize what vided by the Anti-Defamation ,�eague, aD' outfit run by Mr. happened to him until he watches his misfortune on the eve­ Kenneth Bialkin, the lawyer of internationaldrug dealer Rob­ ning television news. The contrary type, the reality-oriente(i ert Vesco. Most of the anti-LaRouche "educational material" person, on the other hand, is one who expects an honest pay was written by two journalistsbf the magazine High Times. for an honest day's work, expects his tax dollars to buy him the offic�al advocate of drug le$alization. the commensurate public services such as schooling for his These scurrilous materials were mailed out to all Demo­ kids, sanitation for his town, and defense for his country. cratic Party state chai�en, an�the mailings were followed The reality-oriented person, is, as a rule, engaged in the . . up by lengthy phone calls fro�Washington , purporting to ' task of raising a family; by means of work, and, as a rule, . devise strategies, of sorts, to htop LaRouche." A certain belongs in the blue collar-farmer-minority constituency. No percentage of state chairmenr�sponded, among whom were · amount of newspaper, radio and TV, and government asser­ James Ruvolo of Ohio and �obert Slagle of Texas. The tions of an "economic recovery" will convince him that his ap�ropri�te number of newspa'; r and television outlets was . .. by enhsted 10 the self-appointed task of raising a family is not in jeopardy effort to ' "ed cate the voters against. La­ prevailing economic policies. Rouche." An unprecedented a ount of mudslinging was cjtr­ The strategic mistake of the anti-LaRouche opposition in ried out from coast to coast. Mrl. LaRouche was called names the media and political establishment so far has been, to try from "neo-Nazi" to "Soviet KGB agent," to a "snake which and stop LaRouche's influence in this layer of "reality-ori­ eats its tail," (this from Max Leiner of the New York Post), ented" people, by means of a propaganda campaign, i.e., by to anti-Semite, to new Hitler, new Lenin, and so forth . means of dominating the "perception game." No doubt, Thoughtful citizens, subjected /to this excessive overdose of LaRouche opponent& can dominate the "perception game." hysterical mudslinging, walked away with the conviction that They are discovering that this has no effect on LaRouche's the great variety of wild slander themes cancelled each other voting base. The voters vote against the perception game out. The average citizen's conclusion, invariably, was: "Mr. itself, not for or against any particular perception per se. LaRouche certainlyhas some fo� veryupset ." Those "folks," Following Illinois, the media made the mistake of igno�­ it turnedout , had never enjoyeejleither the confidence, or the ing the solid 20-40% vote average for LaRouche-associated sympathy of the average citizen. So the centrally disseminat­ candidates, and instead, focussed almost exclusively on the ed anti-LaRouche slander campaign, in its original form , impressive Fairchild-Hart victory. The media called it a fluke; fizzled, some time toward the end of April. Paul Kirk and the Democratic National Committee called it Locally, as with Slagle in Texas and Ruvolo in Ohio, a a fluke; Adlai Stevenson III called it a fluke; had they tried to great deal oflocal money, and locally modified slanders were understand the consistency of the 20-40% voting average of mobilized against LaRouche candidates. Characteristic was LaRouche associated candidates, they would not have con­ the San Antonio, Texas campaign for county chairman. One sideredit "a fluke." week beforeelection day, chairman Slagle arrivedthere , held a press conference, and deno�nced LaRouche for having It was no fluke once argued, in one of his books, that Aristotle and Philip of Then, as Adlai Stevenson, heir of the oldest political Macedon, in the fourth century B.C., had reached a certain name in the state of Illinois, drifted out of the Democratic political understanding with the Persian Imperial court of the Party, which he once considered a family heirloom, and into time. Convinced of his audience's unease with matters of oblivion, the Democratic National Committee, in conjunc­ detail of classical scholarship, �arty chairman Slagle, pomp­ tion with the Anti-Defamation League and the National ously boasted that "only those Texas Democrats who were Broadcasting Corporation-the combination commonly crazy enough to believe that Aristotle and Philip had a deal known as the Public Relations departmeritof "Dope, Inc."-:­ with the Persians, would vote (or the LaRouche candidate." resolved on a massive slander campaign against both Lyndon This ludicrous display had a fineending : 38% of the Demo­ LaRouche, the only, so far, officially declared Presidential crats of San Antonio's Bexat County voted to elect La­ candidate for 1988, and the candidates movement associated Rouche-endorsed Don V arella as-their county chairman. He with him. came first in a fieldof four candidates. LaRouche detractors, it turned out, devised a gameplan One can safely conclude that Bob Slagle is not more to "stop LaRouche" at the second tier of the primary elections popular in Texas than Aristotle.

24 Feature EIR May 16, 1986 Returns fo r NDpe-backed candidates in Te xas , Indiana, and Ohio primaries

The returns listed below were the most complete available as 1;897 (35%); Hood, Mike Chamberlain: 847 (43%); Mont­ of May 10 on the results of the Democratic primaries held gomery, Ty Cobb: 2,630 (46%); Fort Bend, Birchel Size­ May 3-6. They extend a trend first evident in the March 18 more: 906 (19%); Brazoria, Lee W�n: 2,548 (3 1 %); Wil­ Democratic primary in Illinois: Candidates associated with liamson, James Stiba: 1,092 (29%); Liberty, Maude Rush­ Lyndon LaRouche command more than 25% of the Demo­ ing: 1,519 (21 %); Walker, Jewel Strunk: 373 (10%); Gal­ cratic primary vote, while the overall vote is falling from veston, Kirk Weis: 1,692 (14.2%); Ector, Anne. Brucker: 25%-33%. Not ' only has Democratic National ,Committee 1,526 (33%); Midla!ld, Robert Pollard: 594 (38%); Dallas, chairman Paul Kirk failed to stop the LaRouche "phenome­ Coleen Gibson: 6,870 (19.3%); Travis, John Day: 7,737 non," but this movement is growing. (21 %); Gregg, Roy Tucker: 1,877 P3%); Hill, Gaylen Au­ In the only statewide contests in which, NDPC-backe,d ten: 724 (22%); Harris, Claude Jones: 5.6%. '. , candidates participated in these states-Cowling for Agri­ culture Commissioner in Texas, Scott for Senate in Ohio, Ohio and lreyfor Senate in Indiana-a cumulative total of 380,000 Running for U.S. Senate against incumbent John Glenn, votes were cast for them. Noel Cowling's total of 182,000 Don Scott polled 96,909 (12.53%). i against a nationally known opponent, who received enor­ For Congress: 1st CD, D. Ma�Arthur Douglas: 2,696 mous financial support, is impressive. But no less so is Don (12.53%) against Democratic incumbent Luken; 3rd CD, Scott against John Glenn in Ohio, and Georgia Irey's result Henry Darrel Wilson: 1,096 (3.94%) against Democratic in Indiana is nearly twice the previous highest percentage incumbent Hall; 4th CD, Clem Crl\tty: 19,282 (100%) (un­ received by an NOPe-backed candidate in a primary contest opposed); 5th CD, Gerald Buchman (GOP): 3,678 (7.8%) for nomination to the 'Senate. against Latta-(R); 8th CD, Peter Scquller: 4,266 (22%); 10th CD, Bill Palmer: 5,825 (21.79%); 11th CD, Alan Arthur: 2,620 (7. 86%) against Democratic incumbent Eckart; 13th Texas CD, Robert Steward: 2,563 (7.6%� against Democratic in­ For Agriculture Commissioner, Noel Cowling polled cumbent Pease; 14th CD,.or. Kenqeth Parker: 647 (1.32%) 182,39 1 or 18.5% against incumbent Hightower. against Democratic incumbent Sei�rling; 16th CD, Cullen In congressional races, in the 5th CD, Greg Witherspoon Meyer: 5,431 (42%); 18th CD, Mike Palmer: 5,334 (10%) received 912 votes, or 6.7% against the incumbent Bryant. against Democratic incumbent Apptegate; 19th CD, George In the 6th CD, Leonard Rinaldo was credited with 6,150 Barabas: 1 ,726 (4%) against Democratic incumbent Feighan; (15%). In the 7th CD, unopposed candidate Harry Kniffin 20th CD, Les Polgar: 2,57 I (6%) against Democratic incum­ 8th CD, won the Democratic nomination to Congress. In the bent Oakar. , Harley Schlanger got 2,321, 26.4%. In the 12th CD, Eliza­ Total votes: 67,000 for Congress; 96,909 for Senate; beth Arnoldreceived 1,234, 10. 1 %, against House Majority grand total of 162,909: leader Jim Wright. In the 18th CD, Dorothy Stephens re­ ceived 1 ,695 or 8.8% against Democratic inc�mbent Mickey Indiana Leland. In the 21st CD, Terry Lowry received 2,315, or For U.S. Senate, NOPe-backed candidate Georgia Irey 7.5%. Susan Director, unoppposed candidate, won the nom­ polled 96,043 (32%) against Jill Lopg, who won the Demo­ ination in the 22nd CD. In the 24th CD, Gardell Morehead cratic nomination with 202,709 out of a total vote of 298,752. got 1,438 or 6.8% against Democratic incumbent Frost. In For Congress, the outcomes wefF: lst CD, Sandy Smith: the 25th CD, Curtis Perry received 985 (5.6%) against Dem­ 2,743 (5%) against Democratic incpmbent Sharp; 3rd CD, ocratic incumbent Andrews. In the 26th CD, Clyde Riddle Gerry Bollinger: 5,100 (16%); 4th CD, Carolyn Williams: ran in the Republican primary against Armey and received 7,424 (32%) (three-way race); 6th CD, Doug Smith: 2,819 5.6%. In the 27th CD, Ken Rich won 8,078 (13%) against (II %); 8th to, Willie Taylor: 5,888 (1 1 %) against Demo­ Democratic incumbent Ortiz. cratic incumbent McCloskey; 9th CD, Ron Bettag: 2,021 In Texas county-chair races, LaRouche candidates fared (8%) against Democratic incumbent Hamilton (three-way); as follows: Bexar, Don Varella: 16,332 (38%) (run-off); EI 10th CD, Benson Skelton: 1,237 (5%) against Democratic Paso, Ray Winn: 5,485 (23.8%); Matagorda, Robert Smith: incumbent Jacobs in a three-way race.

EIR May 16, 1986 Feature 25 primaries"-I don't know if �hey'd do it then, but they say that -"if you win two more Itimaries, that is, in perception, then, of course, nobody can dbject to our coming out openly and working together with yoh. "

Novak: Let me ask you again your tactical goals. You were Lyndon LaRouche on running a lot of Democrats f(j)r Congress against solidly en­ trenched conservative RepUblicans, a couple in Texas, a cou­ national television ple in Illinois. Your people arrgoing to get the nominations. But you have no chance to win the elections. LaRouche: Not necessarilyJ That's a mistake. That's the Excerpts fo llow fr om the transcript of Lyndon LaRouche's same mistake the news medi� made in ignoring what was a interview on CNN's "Evans and Novak" program aired on clearly indicated success of at least partof the slate in Illinois. May 3. The interviewers were columnists Rowland Evans and Robert Novak. Novak: All right. But the prpbabilities are , and I think you can recognize, probabilities llre that you won't be defeating Evans: My firstquestion is this, sir. Is your long-range plan entrenched Republicans. Wh�t is the- to absorb or take over the Democratic Party and become the LaRouche: No, I don't think that's true. I don't thinkthat's leader of that-make your political mark as the leader of the true at all. existing Democratic Party? LaRouche: In a sense, with a qualification that I don't see Novak: Just by winning the ;nomination do you get a foot­ it as being particularlyme , or people immediately associated hold in the Democratic Party? with me, but a coalition of the kinds of forces which used to LaRouche: Yes, you do. Ste, people confuse the Demo­ run the Democratic Party before this 1968-72 period. cratic Party with the DNC-�hich has some good people-

Novak: Mr. LaRouche, you told my partnerthat you would Novak: That's the Democratic National Committee. like to take over the Democratic Party. Now I'm sure you LaRouche: Right. Which is bompletely divorced from real­ realize that that's not really possible in the short run; maybe ity in terms of the rank and fil¢. There is no Democratic Party in the long run, who knows. But in the short run, what are organiiation any more to speak of, at least not nationally. you trying to do? You're running hundreds of candidates all The Democratic voters are disenfranchised by the Democrat­ over the country. What is your short-term goal? ic National Comqlittee. The Democratic voters voted for LaRouche: Well I think that we're in a serious crisis. I don't Reagan in large part during t�e last elections. And the voters think that reasoning from past experience will work in this who voted for Reagan from t1i1e Democratic side are the type period. I think people who are trying to run trend analysis, a of voters, plus others, who w�uld tend to vote for candidates ! fundamental mistake-we're in a banking crisis. We have a associated with me, particulatly as they see the Reagan eco­ coverup of the degree of our financial economic crisis in the nomic policy becoming a totlilfailure . United States. But people out there, the majority of our peo­ : i ple, are feeling the effects of reality, contrary to what we're Evans: Mr. LaRouche, you have targeted specifically Jim getting in most of the news media. And we are going to face Wright, the Democratic Hou�e of Representatives majority some very tough decisions. We need a new combination leader. The Texas primary is this weekend, it is Saturday. unlike the liberal domination of the Congress today, and What do you expect to do ag�inst Jim Wright? Can you give ' certain parts of the Executive branch as well-a new com­ me an estimate? bination of political forces which gives the President of the LaRouche: No idea. This is a grassroots campaign, and the United States new options for decision-making to deal with idea is generally to get as many grassroots representatives the kinds of crises we face. elected as possible, that's the'. objective. We're not targeting Jim Wright in particular. Novak: But there are no combinations at this point willing to coalesce with you , isn't that correct? Evans: You are targeting, as I understand it, Senator Glenn LaRouche: Not really. Behind the scenes it's quite differ­ of Ohio, and the Ohio prim� is on May 6. Are you planning ent. to remove him from the nomination? I LaRouche: I would hope so. Novak: Like who? LaRouche: Oh I wouldn't name names, because they asked Evans: Why? not to be named. But there are many people coming to our LaRouche: He's a terrible w;imp, and he allowed himself to back door, who are saying, "Well, if you win two more , become entangled with this Warnerfinancia l operation in the

26 Feature EIR May 16, 1986 state of Ohio, and has allowed himself, while he's been good on their campaign, it was indicated that candidates associated on a number of issues, on most issues he's allowed himself with me were going to take election victories, probably in to be dragged along with bad policies. this primary period. The candidates pictually to a certain de­ gree were riding the coattails of the, influence of the move­ Evans: I thought he was one of the Marine Corps flying ment, rather than their putting the movement behind them. heroes of World War II, and that he was one of our firstmen The voters who voted for them kne what they were voting �. in space and was a hero. You call him a wimp? for. LaRouche: I would hope he had stayed in the space program ' where he was not a wimp. In politics, he's a wimp. Novak: Mr. LaRouche, I want to ask you something that's always puzzled me about you. I've r�ad about you for years. Evans: In California, the primary of California is I believe And you started out in politics on the far left, with the Stu­ on June 3rd. You have tl;lTgeted Senator Cranston, who is dents for a Democratic Society, und'trthe name of Lyn Mar­ showing enormous power to get himself reelected and re­ cus, I believe. You were in the Columbia University protest elected out there in California. Why Cranston? movement. LaRouche: Well Cranston, I have a certain admiration for LaRouche: 1968. the man as intelligent, knowledgeable. But his policies, par­ ticularly his left-wing leaning policies, are a danger to the Novak: 1968. What caused you, aQ.d I guess you wouldn't United States. object to being called a part of th� right win� right now, . would you? Evans: So take these three-Wright in Texas, a moderate LaRouche: Well, it depends on what they mean by that. As conservative, ...John Glenn in Ohio, certainly not a liberal. a conservative American, as opposep to the European use of

Cranston in California, a liberal. Now I don't find, I don't the word conservative, I would accept that. I'm a constitu­ finda congealing synthesis here that tells me anything about tional traditionalist. what you are really after. Why are these three being shot­ Democratic policy? Novak: All right, did you have a change in your whole LaRouche: Well you've singled them out, not I. But you philosophy, was there some revelati�n? What happened? can't characterize my approach to politics by singling out �aRouche: No it was just-well, first,of all, the left-wing only three among many people we would be perfectly happy thing is exaggerated. That's where : the problem starts . We to displace. You've got to go from my positive standpoint. went into-we actually slid into SOS not by intent, but as a I'm concernedwith two things. I'm concerned with the col­ matter of tactics. Because we were determined, a group of lapse of �estern civilization, which has two aspects. One, friends of mine and I, were determined to combat the New an economic and moral collapse, particularly of the United Left on its home terrain. And to 4eal with the entire left States, as a result of bad policies. And of economic policies problem-because many good people were beingdrawn into toward the developing countries in particular, which is im­ the anti-war movement. There were....-these were people who moral in the extreme. I'm also concerned aboutthe strategic were being drawn into this counter�cultural process which defense of Western civilization, again where we're weak. SDS was part of. Therefore we said, let's get in there, since - And it's how politicians stand on these two issues that con­ I thought the Vietnam War was a travesty .. For somewhat cernme . We do not have representation ofthe interests ofthe different reasons than the Leftdid , bQt nonetheless a travesty. United States in the Congress. We may have people who are Let's get in there , let's represent a positive policy on the elected to represent us, but they have not represented the Vietnam War question, and let's win people away from what interests of the United States in the Congress, and we've got I considered and what we considerfld at that point a terrible to have people who do represent those interests. thing.

Novak: Mr. LaRouche, a great triumph so farpolitically in Novak: You know there are some people who claim that your movement has been the nomination in the Democratic even today you are an agent of the ;KGB, that they support Party of a Secretary of State and Lieutenant Governor. You've your operation. And as you know as a student of Bolshevik gotten a lot more attention since that has happened. But I find history, the Bolsheviks and their intelligence apparatus have that you spent very little money on those campaigns, less supported supposedly right-wing grOlUpS. The famous Trostin than $1,000. Can't we say that the people voted for your in Russia- candidates because they didn't know who they were? LaRouche: Or Francois Genoud, tile headof the Nazi Inter­ LaRouche: No. That's-that was something in Illinois national in Switzerland is a good example. which-a self-consoling media and liberal myth. The point is, you had this case of, as you are well-acquainted with, J. Novak: All right. Are you part of that tradition? Michael McKeon's survey. He gave the evidence before that LaRouche: No. There are people,;apart from idiots in the he had last June, before these candidates had spent a nickel street, all the people who out of ign\j)rance and paranoia will

EIR May 16, 1986 Feature 27 suspect that. But there are people like Robert Moss and so I was concerned. forth who spread that nonsense. They ought to know better, because they have enough access to intelligence to know what Evans: You have said recently . . . "Something has broken ' the Soviets really think about me. The Soviets consider me, loose in the American political ' ess," indicating that you're perhaps with some exaggeration, the intellectual author of going to find what that is and xploit it and fix it ..� at has the SDI. And they have screamed about. that. broken loose in the American litical process? , EI LaRouche: Well, for the pa�t 20 years, ,increasingly, the Evans: That's the Strategic Defense Initiative, yes. American population has bee� retreating into personal rec­ LaRouche: And not without reason, but they may exagger­ reational foxholes. The television-watching habits and the ate my influence somewhat on that, being Soviets. They content of television program�, the way in which sports ac­ consider me the most dangerous individual not in a govern­ tivities, habits, are used by the: popUlation, indicate a retreat ment position in the world today, from their stand�int. from reality into narrow concerns with immediate personal life and recreation. : Evans: You mentioned Robert Moss, who with Arnaud de ...Wha t's happened is .:.. they went into a foxhole. Borchgrave wrote a famous book called The Sp ike . You are Because they couldn't cope w�h the reality. They said, I'm not sympathetic to Robert Moss, correct? too small to deal with these larger realities, I'm going to take ' LaRouche: Neither one of them. care of my family, I'm going to get by. I'm going to maintain my career, I'll put up with wqatever I have to put up witb. Evans: Or de Borchgrave. Somebody oegan putting han4 grenades in those foxholes. LaRouche: Well, de Borchgrave is easier. Well, de Borch­ The collapse of the economy; t�ey could no longer believe in grave is the fellow who's come under suspicion- the illusion of the so-called Re�an economic recovery. Then, along came things like AIDS . ?\nd the American people are Evans: He's now the publisher of the Washington Times. terrified-ofAIDS . And that thing is gonna bust loose wildly LaRouche: He's the fellow that comes under suspicion of very soon. being your Soviet, right-wing, conservative Soviet agent, because of what he did-all his whole life history is of that Novak: Mr. LaRouche, I' d li�e to ask you another question type. He actually has been, and Moss has been, agents of that has always puzzled me ..; . Norman Bailey, who is the Soviets disinformation. Even though they were the authors former National Security Council official, said that you run of The Sp ike. . . . a pretty good intelligence oper$ion round the world, that you have good information. If I hjad the money which I don't Evans: Very brutally, very frontally, were you ever a Marx­ have, could I go in to you and �ay you money to get intelli­ ist in your own opinion? Ever? gence information from your organization? LaRouche: I don't know. LaRouche: Well, we don't db it that way. What we 00- we will sometimes cooperate lvith government agencies in Evans: All right, let me ask it this way. Are you today a terms of discussing things that We're looking into and they're Marxist? looking into. We will accept �hat we might call leaks from LaRouche: I am an expert on Marx, but I would not be government agencies, and we \vill follow those leaks up to considered a Marxist. see where they lead. But most of our intelligence is in the form of published-we're in t�e publication business. Evans: At what point did you change from the I don't know to no? And what chru;lged you? Novak: You're not providing private intelligence as a profit- LaRouche: Oh, I would say in the 1950s. making operation? . LaRouche: That's not the nathre of the operation I'm asso­ Evans: In the '50s. This has nothing to do with the Vietnam ciated with. It's-we're in the publishing business . . War. It was Eisenhower administration, it was what? LaRouche: No, no. I became involved with the Socialist Novak: I was 'reading one of your publications, The Execu­ Workers Party , a Trotskyist organization. tive [IntelligenceJ Review. and there was a lot of interesting information. I found it interesti*g. But then I findother things Evans: Right, which is not a right-wing party. in it that I finddifficult to unde�tand: For example, Assistant LaRouche: No, hardly. But largely because of my opposi­ Secretary of State Alan Wallis, you say was a strong advocate tion to what we called McCarthyism in that period. Then in of Hitler's racial theories. 1954 I had a chance to see the leadership of the Socialist LaRouche: He still is, he's a �pulation nut. Workers Party at somewhat close range, and saw something which I abhorred� And that was the end, essentially, as far as Novak: He's a monetarist, isn't he?

28 Feature EIR May 16, 1986 J I

LaRouche: Both, both. He is actually probably one of the to tell me if that's accurate 01' in�curate, but how does it most dangerous men in tenns of influencing Secretary S\lultz's make you feel, that your movemedt is the target of this vast policy on economics. kind of federal investigation. It must be based on something. LaRouche: It's based on the same thing that the Reagan Novak: But he had no connection with Adolf Hitler. administration's-many officials i� the Reagan administra­ LaRouche: No, no, but-you know, there was a big fraud tion went to prison for doing. exactly what the peopleinvolved committed in part in the Nuremberg trials, is that while we in steering this so-called investigatlon did. That's a political single out some Nazis who were in most part gUilty of what enemy ... they were charged with and justly sentenced, we covered up 1 the large number of people who had been sympathetic with Evans: Nixon administration, you mean? the Nazis and their philosophy in this country, Britain, and LaRouche: That's right. But this i� exactly what it is. There elsewhere, during the 1920s and 1930s. We had people in are complicit elements of the U.S. government involved in the United States who were just as fanatically racist, just as this. T\lis.is a political enemies op¢ration, a Cointelpro, it's fanatically eugenicist, as Hitler was. There were people who a fraud from beginning to end. An� I think that some people admired Hitler and publicly so, prominent figures, because in the federal government today, �y. go to prison as a result of Hitler's racial policies. And Wallis represents that, not the of this. Nazi tradition, but that Am.erican tradition. Evans: Bob, have you ever tried tb pick up a piece of mer­ Novak: Mr.LaRou che, one of your pet peeves is that Cruef­ cury from a flat surface; I felt �t way interviewing La­ one of the most powerful men in America, Chief of Staff of Rouche. He is hard to pin down; y,s, he says maybe it's the the White House .... Democratic Party is the target, he'4 1ike to take that over and' LaRouche: I think. ' he's rubbed. out on Nancy Reagan, too . use itto run his own program, but What is your program? It's hard to �et details from him; I thoughthe exuded a confidence Novak: Donald Regan. And you say that Donald Regan and a sense of himself that surprise4 me a little bit. He wasn't supports operations strategically decisive for the Soviet Union, . bombastic or nasty, but I came out of it wondering how much ' and contrary to the most vital strategic interests of the United Ileamed. States. How is that possible? Novak: You know, Rowland, th� politicians say that the· LaRouche: Well, there are several things involved. Donald victoriesfor the LaRouche candidates in Illinois were a fluke, Regan, as you know, was a Democratic-lean�ng fellow until but that's a little bit like whistling past the graveyard. Be­ Reagan appeared [0 be winning. And then he became a Rea­ cause I think they're scared to delM of Lyndon LaRouche, gan treasury secretary by adjustment in his position. But in and the reason is, there are a lot of worried people-there's 1978, he was the chainnan of Merrill Lynch as you know. farmers in Iowa, oil roughnecks in Texas, who just don't And during that period, Merrill Lynch, under the new elim­ know what the future is going to bring. And when he talks ination of transparency of foreign banking practices in the about people watching television! too .much caught up in United States, entered into an agreement with an internation­ leisure, he's going to catch a re!lponsive note with some al finn, White Weld-Credit Suisse, to set up what became people.... probably today the largest foreign drug money-laundering operation into the United States. Evans: And clearly he thinks the' process, certainly in the Democratic Party, and I think this1would be the Republican Novak: So when you're talking about contrary to U.S. in­ Party too, is breaking down; he thinks that it's broken down terests, you'retalking about drugs. to the point that somebody like hiin with an organizational genius perhaps, can begin to put it back together in a different Evans: Let me quickly, with one minute left, Mr. La­ way, pick up pieces. He's got 700�r 800candidat es, Rouch­ Rouche. Your movement is under investigation right now, ites or Rouchies as they call 'em, running forvarious offices sir, by the FBI, Federal Elections Commission, the IRS, we around the country, even as low as county executive com­ know the tax collector, the Secret Service. All probing your mittee. Now, ifhe ...we 'll know after this election whether operations. There is an affidavit that has been released from he's succeeded. the federal district court in Boston by the U.S. attorney, Novak: ...I think the problem for Mr. LaRouche is cred­ William F. Weld- ibility on some of.his assertions. We didn't get to have time LaRouche: That was not known as an affidavit, that was a to get into many of them, but when he says that Don Regan representation. is serving the strategic interests of the Sovie� Union because of his connections with the drug trtffic-it's a little hard for Evans: -representation saying that there is an "extensive me and you to believe and I think ifs a little hard for Ameri­ nation-wide pattern"of credit-card fraud. I'm not asking you cans to believe ....

EIR May 16, 1986 Feature 29 . Meese Justice Dept backs li1)erals, organized crime to ' get LaRouche'

Democratic presidential candidate Lyndon H. LaRouche, Washington Post. ' Jr. , replied to an editorial in the April 30, 1986 edition of the By contrast, in the cases of Walter Moncfule's and Ger­ ultraliberal Washington Post: "The lead articles published in· aldine Ferraro's campaigns, there were massive violations of the April 13 New York Times, the April 19 Washington Post, federal election law. Mondale' � campaign was let offwith a and today' s Washington Post editorial, are an integral partof slap on the wrist, and the inve�tigation aborted. The strong the same kind of government-backed 'political enemies' op­ case against Ferraro, for falsified reporting, was dropped. eration which sent several high-level members of the Nixon The 18-months harassment of �aRouche and persons asso- ' administration to prison." . ciated with him, is a purely pQlitical operation, which the As LaRouche charges, court records show that there is a Boston crowd has been running in collusion with a mob­ Justice Department-sanctioned "political enemies" operation linked bank in New Jersey. Cpurt records show, that the against LaRouche, like the "Watergate" operations for which Boston office of the V.S. Department of Justice, has been memb,ers of the Nixon administration were sent to prison. working in collaboration with; forces linked to organized Legal transactions .prove that V.S. Attorney General Edwin crime, in an 18-months effort tp make the federal courts an ' Meese has been induced to sanction the continuation of this, accomplice in what is nothing �ut the type of "political ene­ so far. The New York Timesand Washington Post are acting, mies" operation of which the Nixon administration was ac­ not merely as liberal newspapers, but as witting co-conspir­ cused. ators in this unlawful operation. Attorney General Edwin M�ese' s gUilty part in the oper­ So far, investigation shows no evidence of improper use ation, . has been conducting a c�ver-up in favor of the noto­ of credit cards by the LaRouche campaign organizations. riously corrupt V.S. Attorney, William Weld; who is at the During the period ofthe campaign, there were' fewer charge­ center of the government's role in this plot. Weld has been backs than is standard for comparable types of merchants' exposed by the Nationa.l lAw Journal (June 13, 1983), and sales by credit-card transaction. However, despite the small his, actions have been severely denounced by higher federal percentage ofcharge-back -s during the campaign, there were courts. Weld is notorious for co'Veringup major drug-money­ several serious kinds of irregularities perpetratedagainst the laundering by leading New England banks with which Weld's campaign's finances. This included acts of attempted extor­ family has an intimate busines$ connection. Weld is noto­ tion against contributors by some officials of banks, and rious in Massachusetts for his aqions, later denounced by the included astonishing recklessness by a company responsible higher courts, in using the V . S. Attorney's office forpartisan for issuing credit-card payment authorizations. purposes, against Boston Dem�ratic Mayor Kevin White. The major problem with the LaRouche campaign's fi­ In the present case, Weld's offiqe has repeatedly lied, on the nances came at the end of the campaign, when a mob-linked legal record, and has been caught in one instance of outright New Jersey bank, First Fidelity, stole approximately $200,000 perjury, as well as collaborating with a mob-linked New of campaign funds, a violation of its contract which the bank's Jersey bank tied to ResortsIntemation al. officialsclaim ed was triggered by the Boston FBI office. This Directly involved in the operation with Weld, is Federal action effectively shut down the campaign's process of re­ Election Commission General Counsel Charles Steele, a long­ paymentof loans to the campaign. Since then, methods which standing crony of Weld's. Steele became associated with are either outright extortion, or which, in other instances, Weld at Harvard, and has been a booster of Weld's political border upon extortion, have been used to elicit false state­ ambitions since. In addition to Weld and Steele, accomplices ments from intimidated contributors to the campaign. Since include the cited, mobclinked first Fidelity Bank of New then, hundreds of thousands · of documents have been pre­ Jersey, and also Maryland state Attorney General Steven sented to the Boston grand jury over a period of 18 months, Sachs, the organized-crime-link�d Anti-Defamation League, and yet the Boston office still claims to lack evidence in NBC-TV News, and sundry others. The center of the opera­ r support of the charges leaked to .the New Yo k Times and tion is a pattern of continuing acts of extortion perpetrated

30 Feature EIR May 16, 1,986 against persons and business organizations targeted as sus­ pected of association with LaRouche. This "Cointelpro" op­ First Fidelityad rhits eration also includes manipulation of credit-card accounts by banking institutions and others . ties to criminalelements In the case of the Times item, the Times cautiously limits itself to repeating falsehoods "leaked" from the Boston office On May 7, First Fidelity Bank in New Jersey informed of U.S. Attorney William Wold. The Times also had facts lawyers for The LaRouche Campaign 'and Independent showing that the charges published were false, and knew that Democrats for LaRouche that they would withdraw Weld's office had violated federal rules of procedure in leak­ claims that the bank was libeled by a particular sen­ ing such false charges; the Times suppresses those facts. In tence in a leaflet issued by IDL. The leaflet, headlined the case of the Post item, the Post went way beyond the "Major New Jersey Bank Caught in Grand Larceny!" falsehoods issued by a perjured assistant U . S. attorney, and stated, "an expose will be issued" tying First Fidelity then, in the April 30 editorial, declared itself openly an ac­ Bank "to criminal elements opposing the 'war on drugs' complice in an operation which could, potentially, send of­ policy of LaRouche and Reagan. "Not 24 hours earlier, ficialsof the U. S. governmentto federal prison. IDL lawyer Mark Malone had del?Osed Benson Apple, The heaviest of the visible political pressure pushing this former loan officer at the bank's $outh Jersey branch, dirty operation, is coming from Justin Finger and other offi­ regarding $22 million in loans to one Richard Mamar­ cials of the organized-crime linked Anti-Defamation League ella, who deployed the funds for � mob-connected in­ (ADL). According to court decision, the ADL is an organi­ surance scam. Apple admitted in his' deposition that zation linked to wanted racketeer and drug-pusher Robert even obvious procedures-obtaining references and Vesco. Also, according to carefully cross-checked docu­ financial statements-were neg�cted in issuing the ments received by the international newsweekly Executive first $8 million, and furthermore, that every one of Intelligence Review, the ADL is allied politically with the Mamarella's fraudulent loan requests was approved by narco-terrorist organization which claimed credit for the as­ South Jersey branch President John Petrycki, who is sassination of India's Prime Minister Indira Gandhi. These an officialof First Fidelity Bancorporation. and related actions by the ADLare in massive violation of its IRS tax-exempt status, but, so far, the IRS refuses to act published articles as a drug-lobbyist prior to his employment ' against ADL, as the FEC engaged in a politically motivated by NBC, and NBC's Pat Lynch. cover-up of massive federal election violations by both Wal­ These facts, documented in great detail both in court ter F. Mondale and Geraldine Ferraro. records, and in evidence of the quality of legal evidence, Visibly. the leading accomplice of the crime-linked ADL must prompt every intelligent citizen to ask: "What is the is the TV News division of NBC, which helped to set up the reason for so massive an attempted frame-up? Why are gov­ credit-card hoax. NBC took these actions in intimate collab­ ernment officialsat high levels, cOinplicit in such activities, oration with terrorist-linked drug-lobbying �ircles, with which which could, potentially, land each and all of them in federal NBC-TV News has been openly allied for several years. prison, sooner or later?"

During 1982, NBC-TV News worked closely with the The overwhelming evidence is. that LaRouche's U.S. I Chicago officeof the ADL and with the Chicago drug-lobby military policies, his proposalsfor reform of the international organization, High Times, in a campaign of extortion and banking system, and his fight against the international drug­ corruptinfluen ce, in which NBC and others used extortionist traffic, are the motives behind the �ttempted frame-ups and methods to shut down a previously successful anti-drug ed­ the libelous news-media campaign. Whenever election cam­ ucational campaign in Illinois. It is notable, that during 1982, paigns appear, which threaten to increase the in.,uence of and again during 1984, NBC worked with a former FBI LaRouche's policies on these three issues" the liberal news­ agent, the ADL's Abbot Rosen, and with one John Foster media have conducted coordinated libel campaigns against "Chip" Berlet of the violence-prone , drug-promoting Yip­ him and his associates. Just as the cuttentcampaign by NBC­ pies. Berlet, a former activist in Cord Meyer's and Tom TV, theNew York Times, and the Washington Post, is a direct Braden's CIA front, the National Student Association (NSA), response to the results of the recent Illinois Democratic pri- was fqrmerly the leader of the drug lobby and the gay lobby mary. .' within NSA. In addition to his connections to the ADL, NBC­ The coordinated activities of the FEC's Charles Steele, TV News, the Yippies, and High Times. Berlet also operates of Steele's Boston crony, William Weld, and the mob-linked ' under the cover of a drug-lobby front calling itself the Mid­ First Fidelity Bank, were all a direct part of a response to west Research Bureau. NBC and the ADL worked closely LaRouche's 1984 presidential campaign. The present esca­ with another drug-lobbyist, terrorist-linked Dennis King of lation of that operation, with contin�ed sanction by Attorney New York City, a confederate of Berler's. Berler's visible General Edwin Meese, is a direct result of the Illinois pri­ collaborators at NBC, have been Mark Nykanen, who wrote mary.

EIR May 16, 1986 Feature 31 Interview: Carl Oglesby

Fonner SDS leader insists that LaRouche 'has never been a Marxist'

What fo llows is an on-the-record interview fo r EIR of the Q: This is an important point because Mr. LaRouche. says ''famed'' 1960s leader of Students fo r a Democratic Society that his detractors todayare the same people he was fighting (SDS), Carl Olgesby, interviewed by Herb Quinde. back in the 196Os. He recently had a letter published in the New York Times A: I am not going to debate it. NCLC and Lyn Marcus had stating that, contrary to published reports, Lyndon Lac nothing to do with SDS. For the media to treat it as though it Rouche was not part of SDS, but infact destroyed it. Olgesby were an offshoot of SDS instead of a disinformation project is now a Cambridge, Massachusetts-based "writer." Olges­ targeting SDS, is a bloody shame for people to mis-remem­ by is the author of The War Between the Yankees and the ber. I was in a position to \

intelligence community. . . particular question, which is whether it makes sense to think of the Marcus/LaRouche, Labor Party/PLlN'CLC formation Q: You sent a letter to the New York Times on LaRouche. as authentic partsof the New L�ftand SDS, or on the contrary ' Why? as organized effortsto frustrate, confuse, disrupt, arid destroy A: As an SDSer I wanted to set the record straight that PL the New Left. [Progressive Labor Party] and NCLC [National Caucus of Labor Committees] whatever they were had nothing to do Q: Do you think LaRouche was coming from the right, left, with SDS as such. or center? A: None of those. I have learnednot to use those categories. Q: Many say that Lyndon LaRouche was responsible for the I was never a leftist. I was never a rightist. I was not a centrist . destruction of SDS. Is that your assessment? in the sense that I was namby-pamby, hugging to the middle A: I think that NCLC was negative toward the democratic road. I was a centrist in t.he sense of Zen. I have always left , the spontaneous left, and had as it purpose the destruc­ thought that this country works best when it has a broad tion of the so-called "Movement." central consensus. I could always understand conservatives. ' I felt good about the conservatives I knew when I was grow­ Q: By "Movement" you are speaking of the 1960s New ing up. The teachers that I had while in high school were Left? good hard American conservatives cut from a hardwood A: Where New L�ft means that you organize around demo­ oak .... cratic ideals rather than socialist ones. You are concentrating your focus of organization in the community rather than the Q: How do you viewMr. LaRouche, politically? workplace. A: I think that he has been very consistent: I disagree with the mainstream simplicitude at'his expense that tries to paint Q: When you say "democratic left," do you mean Michael him as someone who just finds the direction or trend and Harrington, etc.? adopts whatever rhetorical coloring is convenient. I don't A: I didn't like Harrington then. I didn't like the whole LID think this at all. He has operated in diffe rent arenas because [League for:Industrial Democracy] complex. One of the rea­ different arenas are importantat diff erent times. In the 196Os, sons I found sympathy with SDS was its willingness to have the New Left was the source of an enormous amount of a head-on clash with the LID and to pull itself out of that energy and the focus of a great'number of social issues. organization. Q: Do you think LaRouche wjls Marxist then, that is, what Q: Wasn't SDS a child of the League for Industrial Democ­ the Heritage Foundation says. racy? A: No, I don't think he has ever been a Marxist. I think ' A: Oh yeah. maybe he has been detained by certain metaphors that are

32 Feature EIR May 16, 1986 present in a numberof 19th-century economists besides Marx. As we modernizeand keep faith with tlilemiss ion of technol­ Metaphors of mechanism of rational process of a direction of ogy and science, which I believe is Partof our obligation as a historical movement. I think he is a progressive. modern people, we have to remembei how good it was for our grandfathers to be independent and free-standing. We Q: The left alleges that LaRouche was working for some should always keep that as a value. government agency against SDS. Thepolitics that is authoritanan and introduces paranoid A: I don't know, but I have asked myself that question more fears of our adversaries, I am against. I am in favor of a in terms of PL than in terms of NCLC. politics of non-ideological realism. Like I made a speech at Fort Leavenworth a couple of years ago at the Army General Q: The Heritage Foundation says LaRouche is a left-winger. Staff and Command College where I predicted that because A: I don't know why they call him left. He asked to becalled of this ideological stuff, we were spen�ing way too much of leftwhen he was Lyn Marcus and NCLC positioneditself on our effort against the Soviet and East Europe, and this whole the left. I thought the reason for this, as I have said in my new world of fronts-Latin America, the Middle East, and letter to the New York Times, was to destroythe left. To take Asia, not far behind-were opening , up and we were not up a convenient position from which it would be easy to sow ready. I mean, how many people do weihave working in Arab all typesof confusion and chaos and despair and a good deal cultures? We didn't know enough abo� that partof the world of fear in this naive group of people grouped under the term and it was becoming very important; We had ideological "New Left." Cold War blinders on. We still don't understandthe problems between us and the Japanese. That's tije kind of thing I have Q: Do you think LaRouche was tied to East bloc? beentrying to talk about. A: Oh no. Besides, that is something beyond what an aver­ age citizen could know. I don't think anyone can answer a Q: The "bestand the brightest" have either been one-world­ question like that. For one thing, when you are on the outside, ers or bi-polarists? you don't know anything. When you are on the inside and A: If you know my works, you know .that I have been one of you get that clearance and see what those secrets are like, the few people on the left that has trieq to push an awareness then it is a hall of mirrors and infinite regress. Like Howard of the Trilateral Commission. Hunt said in a different context, but it applies, he says, at a certain level in the intelligence trade, not even the top oper­ Q: An example of how EIR differs ob analysis of strategic ative, knows at last, who he is working for. questions is the case of Nicaragua. TIre country is more of a Jesuit theocracy than a communist stare- Q: Could you be more clear in answering the question? A: You have a pointthere. A: I am trying to answer the question. I am saying the guy [LaRouche] could be a dispatched count�rintelligence agent Q: On the Soviet Union, Gorbachov is more religious than of the National Security Agency. If I had to pick one of those Jerry Falwell will ever be. kinds of things, I would have had with other alphabet soups, A: I agree with you. I spoke on a similar subject at Fort I would have had FBI, CIA. If he is a dispatched counterin­ Leavenworthonce also. telligence agent of an American institution legally operating in this mode , then I would say it was the National Security Q: Mr. Olgesby, are you working for the CIA? Is Cord Agency. Meyer or Tom Braden your control? A: I don't know sometimes. I wonder who is running me. Q: What if Mr. LaRouche is what he says he is? A: Well, that is another possibility as well. The pointI am Q: Again, do you think Mr. LaROlkhe is a Yankee or a . making is that I look at politics in terms of authoritarianism Cowboy? on one side, as a kind of negative value for me. I think A: I think he is an authoritarian. authoritarian systems are bad from an information-theory standpoint. On the other side is the politics of freedom and I Q: Do you think he is an authoritarian because he likes favor the politics of freedom. I would call myself, if forced Plato? to, a libertarian. But most of these terms cover a lot of gar­ A: Yes. If LaRouche were on my side he would like Aris­ bage. I believe the Constitution is divinely inspired. I think totle. I am an Aristotelian. it is one of the great things we have. I believethat democracy is the best of all possible systems. I believe in every citizen's Q: This issue has recently become prominent in the debate right to be independentof politics and party. I think these are inside the Democratic Party. It would be interesting, don't the three classical American virtues and the foundations of you think, if this debate were to make it to the Supreme our strength, constitutionalism or, in other words, republi­ Court? canism and democracy and the sense of independence.... A: You just may get that chance.

EIR May 16, 1986 Feature 33 �JJillScience &: Technology I

The Soviet disaster: accident or war p"4J.sh? : Maljorie Mazel Hecht, managingeditor of Fusion;, reports on how the Sovietsfail to measure up to Wes tem nuclear:safe ty standards.

: In )1979, the Three Mile Island incident provided the occasion Twelve days after the nuFlear accident at Chernobyl, the for the antinuclear movement to spread hysteria and fear Soviets acknowl�ged in a press conference that they had not throughout the American 'population, making preposterous -initially treated the accident _s seriously as they shouldhave , claims about the dangers of nuclear power. Their aim was to and that they had moved t� slowly with the appropri�te shut down'the nuclear power industry in the United States, emergency measures . as a firststep to returning the nation, and the rest of the world, This underestimation of the disaster is fully consistent to a non-industrial society. Despite the fact that the TMI with the Soviets' philosoph� on nuclear safety. Neither the accident was proven to be much less serious than the hyster­ accident itself nor the inapp�opriate response to it could have ical assertions of Greens and the f!1edia, the antinuclear pro­ happened in the United Sta¢s. Although in recent years the paganda successfully slowed the growth of the nuclear in­ Soviets have adopted some lof the standard safety measures dustry, both domestically and for export. practiced by the other nuclear nations, the basic attitude to­ As can be seen in the accompanying articles and inter­ ward nuclear safety expresst/dby the Soviets indicates a stark views on U.S. nuclear safety, nuclear power was the safest disregard for human life. Under the gun of a war mobilization energy around beforeThree Mile Island, and the accident in that mandated vast and speedy increases in'electrical- power, 1979 spurred a series of _upgrades that increased the redun­ the Soviets took shortcuts in nuclear safety . dancy and safeguards in the system, improveClthe training of In part this was because the Soviets lacked th� technolog­ personnel, and fine-tunedthe monitoring of plants. ical skill to build the most a(ivancedtype of plants. Thus, in The Chernobyl accident is a far more serious event than the early 1970s, when it wa$ clearthat the Soviets could not ' Three Mile Island, including loss of life and the release of achieve mass production ofjpressurized water reactors,,they lethal amounts of radiation to the environment. Once again, chose an outmoded but easi¢ to build design for their nuclear the aptinuclear movement here and in Europe is using the power campaign. The water-cooled graphite:..moderated re­ accident to rally thefears of the population to the point where actor at Chernobyl is a 19$0s, design, discontinued in the the Greens can force the shutdown of the nuclear industry. In West except for the produqtion of military plutonium (see West Germany, the Social Democratic Party, led by Willy box, p. 37). The Chernoby�reactor could never be licensed Brandt, is considering a political coalition on this basis, as here, in the United States fOfipower production. Brandt put it; to force the "plutonium generation" to an end. As this report makes clear, however, there is little basis Scoffing at safety for comparison between the Soviets' archaic graphite reactor Perhaps the most astounciling result of Soviet cost�cutting design and the standard light-water reactors found in the was to build reactors that had no containment buildings, United States, West Germany, and other nuclear countries. ' which is the last line of the U.S. "defense-in-depth" mUltiple

34 Science & Technology EIR May 16, 1986 Toole noted, "None of the workers in the Soviet nuclear plants wea� the dosimeters so familiar elsewhere in the world to measure accidental exposure to radiation." Peter Stoler of Time magazine reported that at the Kur­ chatov plant the officials insisted that "the West in general and the U. S. in particular make too great a fetish of nuclear safety. " The Soviets didn't even put out their cigarettes while

walking into the reactor room, he said, and they hung spare _ fuel rods "loosely on the wall like so many salamis." Stoler commented, "Existing Soviet reactors operate without concrete containment vessels because, scientists ex­ plain, such things are unnecessary (though considering the quality of the Soviet concrete work we saw, they would probably be ineffective as well)." A 1979 U. S.-authored review of the Soviet energy sys­ tem notes that the Soviets see redundant safety systems as a burden, quoting one· Soviet source as saying, "An excess of such backup systems, where the need or the reliability is not clearly assured, introduces operations complexity and re­

At a press conference May 6, Soviet offi cials acknowledged that duces overall safety." they had not learned of the disaster earlier because local offi cials did not realize the seriousness of what was happening. Here the After Three Mile Island control room pf a Soviet nuclear plant in Armenian S.S.R. . Did the Soviets get more serious about safety afterThree safety measures to ensure that no radioactive materials are Mile Island? Gordon Hurlbert, former president of Westing­ released from the plant. Unlike reactors in the rest of the house Power Systems and now a nuclear consultant, said that nuclear nations, most Soviet reactors look like ordinary fac­ he thought the answer was yes, although he noted that the tories, with no containment domes. Soviets were "willing to take more risks- than the United The firstpower station to have a containment dome came States." Hurlbert visited the Soviet Union in July 1983 and on line in early 1979 at Novovoronezhskiy, the Soviets' 30th toured several nuclear plants with other members of the World nuclear plant. Energy Congress. At the time, he said, he had "grave doubts" Throughout the early years of their nuclear program, the about their safety program. Soviets portrayed their gross deficienciesin safety as a virtue. When the Soviets explained how their new pressurized Soviet nuclear scientists scoffed at the U. S.nuclea r safety water reactor (PWR) design would have contaiQment build­ systems, calling them unnecessarily redundant and implying ings because of "world opinion," Hurlbert asked them if they that Americans are stupid to waste so much effort and ex­ planned to retrofit all the graphite reactors and the older pense on safety. PWRs. He was told, "No, we're not going to have an acci- At the same time , the Soviets gloated over small incidents dent. " in U. S. power plants, pointing to the superiority of the so­ The Chernobyl reactor had no containment building, he cialist approach. said, although it did have a three-level safety system. Hurl­ · Characteristically, the first TASS news release on the bert noted that the Soviets depend less on computer controls Chernobyl accidentsaid little about the disaster but noted that and more on manual controls, which means that humans "2, 300 accidents, breakdowns, and other faults have been make more of the decisions. He also confirmed that Soviet reported in the United States because of poor quality of re­ nuclear workers routinely do not wear dosimeters to measure actors and other types of equipment, unsatisfactory control radiation levels in the plant. "Their discipline is substantially over technical conditions , and non-observance of safety reg­ inferior" to ours, although their plants are well-monitored, ulations. " he said. Hurlbert said that he had had many occasions over As the Chernobyl disaster has starkly emphasized, the the years to meet with Soviet technical people-the minister Soviets keep their civilian nuclear program a secret. One of and deputy minister of power and electricity, for example. the few revealing looks at the program occurred in 1978, He called them "world class engineers . . . concernedabout when a group of U.S. journalists was allowed to tour several safety and human life." But he noted that one had to under­ Soviet nuclear plants . stand that the Soviets make three kinds of statements,. "one The Americans were astounded at what they saw. For for technical people, one for their own population, and one , example, Washington Post science-reporter Thomas 0' for political reasons."

EIR May 16, 1986 Science & Technology 35 We stern safety standards m

nucleru; the safest energy w-...---.. .. d

This report was adaptedfrom an article by nuclear engineer many levels of protection in case of the worst event (or Jon Gilbertson that appeared in Fusion magazine in Septem­ "design basis accident" as it is aIled) using backup systems, ber 1980. backups to backups, and so forth; hence the term defense in depth. . � , . Critics have tried to claim that Three Mile Island was a "near Specifically, the lines of d fense include: disaster." The evidence proves just the opposite. Post-TMI 1) quality assuranceto gu antee that all componentsand studies show that nuclear. power is even safer than had pre­ equipment in the plant have n manufactured and assem- viously been thought. bl!!dto required design specifi ations; In the words of Edwin Zebroski, head of the Nuclear 2) highly redundant 'and 'verse protective systems de­

Safety Analysis Center in Palo Alto, California: "Assertions signed to prevent abnormal 0 rating conditions;-and . of a narrowly averted catastrophe at TMI have no foundation. 3) engineered safe ty syste s designed to prote<;t against Even if the operators at TMI had continued to misread the the consequences of highly u ikely but potentially danger­ condition of the core for several more hours and melting had ous accidents, such as loss of coolant, equipment failure, 'begun, the addition of water at any subsequent point would human error, sabotage, and sCivere natural disasters such as . have stopped the accident." earthquakes, tornadoes,and floods. The utility-sponsored safety center is part of the Electric Power Research Institute (EPRI) and has done the most com"

prehensive technical investigation of the TMI incident to date I [September 1980] . Zebroski based his statement on the re­ , Multilevel physical bart. iers to contain sult!' of EPRI' s newly released study, "Nuclear Safety After radioactivity 1980. TMI," June . : .Furthermore, the f:PRI,investigation concluded that no dlmage would have occurred to the containment building­ even if the accident had gone 'on unchecked for many hours beyondithe point of melting. Although this conclusion has long been accepted, it is only through an actual incident as at TMI that reactor safety analysts have the opportunity to prove it by comparing their smaller-scale experiments and calculations to full-scale op­ erating results. This, in fact, is what the group at EPRI has done in its analysis of the TMI incident. The actual event and (2) Fuel '_u ___ EPRI's analysis simulating it have proved that in the real world of reactors, the result of an accident is actually much less severe than predicted from various postulated abnormal operating conditions. The design and construction of reactors are based on very conservative .assumptions and calculations about such hypothetical, abnormal operating conditions. (5) Steel oontainlmelnt-_ We can confidently state that nuclear power is the safest energy around. (6) Building snuelo---- All U. S. reactors are designed around a concept called "defense in depth." The design engineers calculate the worst accident that could possibly occur in the plant, design the The schematic of a nuclear reactor containment building shows the six levels of containment barriers to prevent any fission plant so it cannot happen, assume that it happens nonetheless, products fr om escaping: 1) the ft,el pellet.' 2) the fu el rods or and then design the rector safety systems to withstand the tubes; 3) the pressure vessel with lO-inch thick walls; 4) 7{001 effects of the worst-case accident while completely protect­ to lO{oot concrete shielding; 5) 4-inch thick steel shell; and 6) '; ing the public from any danger. The reactor design provides 3 -foot concrete shielding.

36 Science & Technology EIR May 16, .986 thermal energy-a temperature increase. Graphite-mod­ Chernobyl: an archaic erated rea,ctors, therefore , must follow procedures to al­ low for controlled and gradual periodic heating of the reactor design material so that "annealing" of radiation damage can take place in order to prevent a catastrophic temperature rise. The Chernobyl reactor is a Iight-water-cooled, graphite­ There cannot be a meltdown in a graphite reactor be­ moderated, I,OOO-megawatt plant, one of 17 such units cause the graphite will not get hot enough,' even if it is operating in the Soviet Union. The design is vintage 1950s, burning. However, if the graphite catches fire , 'the fire is and was considered inappropriate by Western nuclear con­ dangerous and very difficultto put out. If you pour water structors for development as a civilian power plant. In­ on it, the water attacks the zirconium, opens the casings stead, the West went with the now standard light-water or of the fuel elements, and lets the fissionprod ucts out. pressurized wat

Why graphite? The special characteristic of graphite, which was used in the Manhattan Project bomb research in the 1940s at Argonne National Laboratory, is that it is a good moder­ ator of the rate of nuclear reaction and relatively cheap . The special problem with graphite is that it has a high

chemical affinity for water vapor, carbon dioxide, and Atomics International metals. Physicists refer to the "Wigner effect" to describe In the early years of nuclear power. graphite reactors were used the reaction of graphite under radiation exposure in a re­ fo r research alld producing plutonium. In the I950s. the Western nuclear nations decided not to develop the graphite design for actor. Energy is stored in the graphite crystal lattice in civilian power reactors. Here. a tech11icia11 works on the graphite unstable or metastable concentrations. If this stored ener­ moderated reactor core of the Sodium Reactor Experiment at gy is released suddenly, it causes an enormous release of Atomics International in 1956 .

EIR May 16, 1986 Science & Technology 37 What dangers are involved? There is also an inherent safe� mechanism in the reactor Contrary to the claims of antinuclear groups, reactors are arising from the nuclear physics pf the core. Anything that not atomic bombs; they cannot undergo critical-mass deto­ causes the fuel and coolant to heal up at a given power level nation under any conditions. The enrichment of reactor fuel causes the chain reaction to shu. down. In a water-cooled (that is, concentration of fissionable material) is far lower reactor, such as pressurized water,reactors and boilinS water than in bombs, and hence cannot produce a nuclear explo­ reactors, this is called the negative temperature coefficientof sion. reactivity. In fast breederreactors . j another physical principle Explosions of hydro�en gas or other chemical explosions leads to the same result. are also not possible within the reactor vessel. This was The final feature of defense �n depth is the engineered known before the TMI incident, yet the fraudulent story of safety systems. Here the designenssumes that accident pre­ an impending hydrogen explosion in the TMI reactor vessel vention has failed in spite of everything. He selects the worst was made into scare headlines for days in early April 1979. conceivable accident that is just �n the borderline of being As the Nuclear Regulatory Commission later admitted, it was not possible and designs the plant'to withstand the effects of known at the time of the TMI incident that no free oxygen such an accident and to prevent tUum to the plant personnel was present and, indeed, that no freeoxygen could be pres­ and the surrounding area. ent; thus a hydrogen explosion was impossible. This just-short-of-impossible accident is termed the de­ The main concern in reactor safety, in fact, is the large sign basis accident. Aftertens of thousands of manhours of inventory of radioactive material (mostly fission products) analysis and investigation by hundreds of safety engineers, that builds up in the reactor's fuel rods during operation. The the conclusion is that the design . basis accident for a light goal of the reactor safety' engineer is to make sure that this water reactor (pressurized water or boiling water) is the loss \ , radioactive material is contained and controlled under all of coolant accident (LOCA). . conceivable operating conditions, normal or accidental, and In a LOCA, a massive ruptu� of the primary coolant that only very sm,all quantities areever released to the outside system causes the water to depressurize, followed by rapid environment at any given time. flashing to steam and a blowdown of this steam-water mixture Under normal conditions, the radioactive fission produc�s out of the ruptured pipe. Such a niassiverupture is not con­ remain contained within the fuel material itself and are part sidered possible, even if there �ere an earthquake, since of every fuel pellet. Over the three-year lifetime of the fuel, . reactors are also designed to withstand earthquakes. The the fission products build up to a little over 3% by weight of blowdown of this steam-water mixture would soon cause the the pellets. reactor core to heat up, the fuel ! to melt, and radioactive Radioactive material releases heat along with the radia­ fission products to escape the cdre-if the reactor safety tion; therefore it must be cooled at the same time that it is designer had stopped here. contained. While the reactor is operating, most of the heat in the fuelis produced fromthe fissioning of the fuel that results Multilevel containment batriers from the neutron chain-reaction. After the reactor is shut The safety engineer provides Js many physical contain­ down (that is, after neutron bombardment has stopped), heat ment bamers as necessary to prevent the releaseof dangerous is still produced from the decay of the radioactive fission levels of radioactivity outside the teactor building. The ac­ products. To remove this heat, the fuel must continue to be companying figure (page 36) illustrates these carriers, show­ cooled while the reactor is shut down. ing six levels of containment. The first is the fuel pelletitself, 'made of very hard, close­ Prevention of accidents grained ceramic uranium oxide that traps most of the radio­ The protective system is a specialized electronic/mechan­ active fission products within its . grain boundaries during ical system centralized by a computer that monitors every normal operations. To back this up, the fuel pellets, less than important operating parameter in the reactor-temperature, a half inch in diameter and I inch I�mg, are stacked in sealed flow, pressure, reactivity, and so forth-and is prepared to 12-foot tubes of zirconium alloy. This assembly is called the take control of the plant in a preprogrammed manner if the fuel rod. Under normal operation, !the pellets and tubes will system detects an abnormality. Actions taken by .the protec­ contain nearly all of the radioactiv,e fission products during tive system cannot be overridden manually by the operator. the entire three� to four-year lifetime of the fuel. Once the protective system makes a decision to shut the plant A few of the zirconium alloy tlibes will leak during nor­ down or to reduce the power output, it will carry out the mal operation, so that a very small amount of gaseous fission decision no matter what the plant operators might think. The products will escape into the primary coolant water. The control-rod drives above the reactor vessel drop the rods to primary coolant system is therefore contained in a pressure shut down the reactor or drive them in part way to reduce vessel with walls 10' inches thick and a piping system that power. Control rods absorb neutrons, thereby slowing or acts as the third containment barrier. This barrier will contain stopping the fission chain reaction that is sustained by neutron any radioactive material that escapes the fuel tubes during bombardment. normal operation and also will a�t as the major containment

38 Science & Technology ElK May 16, 1986 i I barrier if an accident damages the fuel rods. This primary that melts through the reactor ve.sel, drops onto the concrete system has several filter systems to filter out any radioactive floor -below, bums its way throu�h more steel and many feet fission products that are released to the coolant and collect of concrete into the gro!lnd b�low, and defies gravity to them for later disposal. emerge in China. Along .the waY, of course, the fiery glob Under the assumed condition that the primary coolant gives off fission products, contiuninating all ground water system containment barrier has been breached in the design and everything else it touches. j basis accident, three more barriers are provided to contain Such a process is scientificallyand physically impossible, any fission productsthat escape from the ruptured pipes. First as should be clear from the preceding discussion. A core is the 7-foot to 1O-foot thick layer of concrete shielding that meltdown could happen only if no cooling water got into the surrounds the reactor vessel and the primary coolant system. reactor core for many hours. TI,le fuel would drip onto the Next is the containment building, which has two barriers: massive steel support structure land perhaps eventually the one is-a sealed steel shell nearly 4 inches thick designed to a vessel bottom. The splattered fuelwould be cooled by contact pressure of 60 'pounds per square inch. Outside this shell is and conduction of the thick steel walls. more than 3 feet of concrete shielding to absorb radiation. These barriers are designed to protect the public in the case of the design basis accident. The incident at ThreeMile Whatthe experts say I�land was similar to what is called a small pipe break in reactor safety terminology, far less severe than the design basis accident. There was never any danger to the public. Radioactive fission products give off heat long after the reactor is shut off and must always be cooled. To assure that Dr. Joseph M. Hendrie: - cooling is always available, engineered safety provides re­ dundant core cooling systems to guarantee that water is al­ It can'thappen here ways available to the reactor core, even under the conditions of the design basis accident. The back-up core cooling sys­ Joseph M. Hendrie. fo rmer chc1irman of the U.S. Nuclear tems are designed to keep the fuel from failing and melting Regulatory Commission. is now a consulting engineer. He under'even these severe circumstances, and if there is failure served on the NRC from 1977 !through mid-1981 . In this or melting, to prevent so-called core meltdown. interview he describes one essential difference between the The firstline ofdefense is, ofcourse , the primary cooling Soviet graphite reactorand lightiwater reactors. system itself. In most loss-of-coolant accidents, as long as the primary pumps (or even one out of the four) keeps running EIR: How would you assess the 's tate of U . S. nuclear safety , and make-up water is continuously supplied, the fuel will compared to Soviet safety systems? continue to be cooled. The make-up water is automatically Hendrie: The U.S. water react9rs are simply incapable of supplied to the primary coolant-sy stem by a set of large tanks producing the sort of gross relea,e that has occurredin Rus­ held at pressures somewhat below normal reactor operating sia. We don't have the flammablesin core that would provide pressure. Thus if a coolant system rupture occurs and the the kind of driving force they ihad there. in the fire. Our pressure drops, these tanks will automatically inject water systems are engineered with mo� extensive safety provisions . into the reactor vessel. and we then encapsulate the wh�le reactorsystem in a very The water make-up system is e�tirely passive. It requires strong and tigJ1t containment structure. no pumps or valves to tum it on. The water in these tanks is After Three Mile Island we �ade a very extensive reas­ borated-a boron salt is dissolved in it that absorbs neutrons sessment of the safety of U. S. pl�nts from all kinds Of stand­ and shuts down thJ reactor completely, if for some reason points and all kinds ofaccidents and found it appropriate to the control rods have not shut it down. upgrade a number of areas. We �ave concentrated attention Under certain hypothetical LOCAs, it is necessary to get on operator training and expertise_lqldon a drive to achieve water into the reactor core faster and at larger volumes than real excellence in operation at ali U . S. plants. This is reflect­ the tanks can supply it. For this purpose there are sets of high­ ed in the industry efforts as wel� as in the regulatory incen- pressure and 'low-p�ssure emergency core cooling pumps tives. J. that automatically tum on when preset pressures in the vessel Furthermore, we undertook after Three Mile Island, a aredetected . The high-pressure pumps are for small ruptures, very extensive upgrading of the ability both on-site and off­ while the low-pressure ones come on during large ruptures, site to take emergency measures in the event of accidents. I which require large volume and flows. - think those provisions are partkularly notable against the The 1979 antinuclear film The China Syndrome built an background of the Russian accident. anti-science myth in the tradition of Mary Shelley's novel Frankenstein. According to this scare story, in the course of EIR: Most of the material writtcn in the 1970s on the Soviet a core meltdown, the molten core forms into a round glob safety question indicates that they are scornful of the Amer-

EIR May 16, 1986 Science & Technology 39 i icans for spending so much money on what they �onsider of thinking. I'm sure there are so,*e upgrades in the recent unnecessarily redundantsafety systems. ones that reflect more recent technology, but they really in Hendrie: I think that may have been the attitude in some many ways are a technology that we ought to have gone quarters earlier on. My impressionis that in the last five, six, beyond. They have positivevoid coefficients- or seven years that therehas been a move in the Soviet Union toward safety standards and arrays of safety systems in the ElK: Can you explain that please.: plants more like the Western standards. Those are reflected, Hendrie: It means that if the power goes up, the reactivity for instance, in the designs of the new- PWR [pressurized goes up, because the water is a poison in that system. When water reactor] line, 1,0000megawatt line, which does have you raise the power and boil a littl!e more water and reduce emergency core cooling systems similar to U. S. designs and the water density in the fuel channels, that's a positive reac­ does.have containment. Or at least the outline drawings I've tivity. That would really panic us. We don't permit machines seen for what they were regarding as their standard 1 ;000- with positive coefficients. megawatt PWR did have a containment on that looked very much like a standard U.S. reinforced concrete prestressed containment. So I think there's been a move in the Soviet Union in the last few yearsfor reactorsafety standards more . Sue Gagner: Safety nearly like those in the Western world. upgrades after T¥I But, of course, these graphite machines arein many ways a design and reactorconcept froman earlier time. I think they • I Regu- have a number of featuresabout them which arenot desirable Sue Gagner is a public affairs ojJi c.,erJo r the Nuclear safe tystandards from a safety standpoint. latoryCommission . She discusses �w U.S. were upgraded aft er Three Mile Islpnd.

EIR: It's curious, given this, that the Soviets claimed in ElK: Can you comment on U.S. inuclear safety standards, some of their publications that the graphite reactor was ac­ in particular how they were upgraded afterThree Mile Island? tually safer thanthe PWR. Gagner: We have a "defense-in-depth" system for nuclear Hendrie: I think in part that grew out of a. concern on the reactors in this country: if one system fails, another system part of the Soviets that was really one of the bases for the would come in. For example, we have the emergency core effort they PUl into the graphite machines: It was a long time cooling system, which would cooi the core in case the pri­ before the Soviets were confident about their ability to fab­ mary system failed. The final bac�-up system is, of course, ricate large pressure vessels of the necessary quality for a the containment, but there is a series of redundancies and large reactor. That's really a central reason why they went systems that back up other system�. into that pressure tube design-to avoid having to fabricate AfterThree Mile Island, there iwas something called the very large size reactorvess els. TMI action plan, and that resultqi in over 6,400 separate Remember that the 44O-megawatt PWR, which has a action items, and about 90percent bf those had been done by substantially smaller pressure vessel, and which has been the end of 1985. their standard in the water reactor line for many years, and the 1 ,OOO-megawatt designs for which the heavy components ElK: What do you mean by action items? were to be produced at the Atommash plant (which has so Gagner: There were different typts of things. Some of them many problems now)-both those designs wereearly 1980s. were equipment changes, some were procedural changes. In 1979, afterThree Mile Island, I talked to a high-level For example, we requiredgreater omphasis on quality assur­ Russian delegation from the Ministry of Electricity. . . . They ance in building and operating plapts, to make sure that the showed me a set of drawings of their 1,000-megawatt PWR plants were built as designed .... which they said was going to become their standard power Emergency planning has been �gnificantly upgraded since machine. Tha t's the one that had the Western type contain­ Three Mile Island with the requirement of emergency drills, ment on it and the emergency corecooling systems. But that's evacuation planning, and notification of local and state offi­ 1979. We had been making big pressurevess els since the late cials. The training of personnel, particularly control room 1960s. So, I thinktha t's the reason that they went to graphite. operators, has been upgraded. The number of resident in­ spectors, started before Three Mile Island, was increased. ElK: So you think that they built the graphite reactors be­ Now there is a resident inspector at �very operating plant who cause they did not have the technological sophistication t� works at the plant as his primary dpty station. build PWRs? Hendrie: I don't know. These graphite machines, even the ElK: What is the NRC's budget for safety tests? one at Chemobyl, was finished quite recently. They never­ Gagner: Our budget on research� proposed for the next fis­ theless are a design and a concept that is really late '50s sort cal year, is $113.5 million.

40 Science & Technology ElK May 16, 1986 ,EIR: ' Has it been at that level, or higher? translated into use by the nuclear iqdustry? Gagner: The researchbudget has been decreasing. In fiscal North: The data that we provide has been used by them in a year 1986, it was $207 million. We would like to spend as variety of calculations. But it is p(imarily produced for the

• much in 1987 as we did in 1986, but our budget is being cut, Nuclear Regulatory Commission-reitherdirectly to enhance along with the overall budget decreases, and we do have to engineering understanding of the �havior of the systems or put emphasis on inspection and enforcement of plans. indirectly by allowing confidence ill the terms of the predic­ tive capability of the computer codes.

PaulNorth : experiments EIR: Was LOFT thedevice used ip the experiment showing that a reactor could actually stand jup much better than pre­ in nuclearsaf ety viously predicted in a major accident? North: You may be referring to e?Cperiments on the opera­ tion of the emergency core cooling system in the event of a Paul North is the manager of Nuclear Reactor Research and very large break in one of thecoo�ing pipes. LOFT did run Technology fo r EG&G Idaho at the Department of Energy's some experiments along that line llnd they were very, very Idaho National Engineering Laboratory(INEL ). 'He discuss� instructive. In terms of calculating; the behavior ofa reactor es the nuclear safe ty experimental work that he has been under those circumstances, when ypu do safety calculations, involved with fo r the past 10 years. you make what are called conservative assumptions. That means you assume things that make matters worse in order EIR: Can you describe the nuclear safety projects at INEL? to make very sure that the analyses, if they indicate safe North: A'substantial program in safety has been going on behavior, are indeed indicating a safe system. for a greatmany years. There are two major research areas at There was some uncertainty on just how much conserv­ s-the ow 'EG&G, ' ldaho. One relates to thermal hydraulic, A atism there was in those calculations, and without going into of cooling fluids within the reactor and the energy transfer all of the details, when a large b�ak was run in LOFT, it associated with those flows. We have operated a number of turned out that the emergency core cooling systems func­ experimentalpro jects, two of them being the Semiscale proj­ tioned very much better and that t� peak temperatures were ectand the LOFT [loss of fluid test] project, which is aimeq significantly lower than would have been predicted by the: at getting a great deal of actual physical data concerningthe conservative kind of analysis thati is generally used in that during a wide . operation of emergency core cooling systems approach. ' range of transients. The second area is the developing and'testing of computer EIR: Were these projects conceiv4d afterThree Mile Island, codes, which are designed to predict the behavior of full­ or had they been ongoing before 1979? scale reactor plants. It is through the comparison of those North: The system was in progre s in the early '70s and in pfedictivecapabilities with the experimentsy stem resultsthat $ fact even before that, but it reall jelled in the days of the we learnof possible deficiencies in our modeling capability y hearings on the ECC-emergency core cooling. Back in ,and make improvements, so that we build confidencethat we about 1972 there were big congressionalhearings on whether can predict the fu ll-scale plant behavior in transient condi­ those ECC systems would be effective. I think that was quite tions-transient means that conditions are varying with time influential on the research that was undertaken in the United and usually implies that things are not normal. States in the following decade. LOFrand Semiscale both did experiments that were related to th� TMI kind of transient. , EIR! ' Was the LOFTpro ject an actual reactor? North: It was a 50-megawatt thermal pressurized water re­ actor with a great many scale features ....It tested some of ElK: Are there other safety projecltsat INEL? the major flows in the transfer interaction that took place in ' North: The other major area where we have done reactor the transients. The other facility, Semiscale, is literally that­ safety research is in the region of the fuel itself, again in a roughly scaled facility. It has an electrically heated core nonnormal conditions. . . . There is another facility here on rather than a nuclear core, and was in the most recent version a standby condition, the PBS, whi¢h stands for Power Burst a 2-megawatt electrically heated core. The heights in the Facility, referring to the ability to raise the power ,quickly. system were full heights, so it was a rather long and slender That has been used to do a wide range of experiments on fuel. system. It has run a great many experiments and we have It simulated the conditions to some degree in the Three Mile learned a great deal out of that system. Both facilities have Island accident and itCiamagedthe fuel. . given us a lot in terms of thermal hydraulic behavior and Also, under the international Program in LOFT, the last reactor transients. experiment was'one in which a large fuel module was raised to very high temperatures and damaged. It was the last ex­ EIR: How is the data that you get from these experiments periment in the system; the reason is obvious-we burnedup

EIR May 16, 1986 Science & Technology 41 the center fuel module in the core, very deliberately and in a my rough calculations. They pr¢sumably thought it was very controlled way. Then we shut the thing d�wn, recovered, unlikely that you would get that at any one time. I suspect and we gained a lot of information on fission product release there was some operator error atlowing that to happen. and transport as a result ....The international community The main difference here is that our plants have the big was very pleased that we were able to conduct the experiment pressure vessel that contains tht hydrogen. At one time our . and able to get data that would shed light on the subject. pressure vessels were heavily criticized; the question was, would the pressure vessel fail ¢atastrophically. The people who 15 years ago were arguing that it could . . . are now arguing that it can't, having seen the new information on Richard Wilson: vessel tests. . . . But the second thing that we have, surrounding the whole No lethal leaks reactor vessel, is a containment vessel, which will handle even in a meltdown 200pounds pressure per square inch. It is sufficienUylarge , . a huge volume, so that the pressure [from the chemical re­ Richard Wilson is Mallinckrodt Professor of Physics at Har­ action] will already be reduced and diluted from the volume. vard University. He chaired the Nuclear Regulatory Com­ That can hopefully contain eve�thing. And if a fire begins, mission-sponsored study group of the American Physical you would soon exhaust all the oxygen so that it would self­ Society on "Radiological Consequences of Severe Nuclear extinguish. Accidents," which released a report in February 1985 . Here The crucial thing about our reactors then, is will that he discusses what happened at Chernobyl's graphite reactor containment vessel hold in an accident, and for how long? and compares this to a worst-case accident in a U.S. pres­ The "how long" gives you time �o do all sorts of things-for surized water reactor. example, findinga way of boiling water inside to cool things down, to reduce the pressure, and to get some standard things EIR: What do you see as the major differences betweenthe . going. The worst moment, according to all the things we u. S. and Soviet approaches to nuclear safety? calculate, is if yo� have a meltdown of the reactor that melts Wilson: There are two things one should comment on. First­ through the reactor vessel at ttje time that it's still at high Iy, a crucial thing is the different type of reactor the Soviets pressure. You get all this moltFn fuel, 400 tons of it, and have. They have a pressure tube reactor with 1,100 or so some molten iron and whatnot, fill dumped into the contaill,­ independent pressure tubes inside a big 5 ,OOO-or-so-ton char­ ment vessel af the same time. And that is much more pressure coal matrix. They regarded that as fairly good fromthe point than the 200 pounds per square inch; we're talking about of view of safety, because the whole thing can't get out of several hundred pounds. It will heat up the air very rapidly, control at one time. However, their pressure tubes have a and the question is how high. very large amount of zirconium on them, and the reactor has Fortunately, we don't haye; as many energy sources as a very large amount of graphite. If they get out of control, the Russians do. We don't havelthe uranium-carbon reaction and if they are starved of coolant, then they get two very and not as much zirconium. The maximum we think that · important exothermic chemical reactions that are worse than could possibly go is about 60 or 70 pounds per square inch, any we get in our plants by quite a' bit. and our containment vessels will hold 150 to 200pounds per First is the zirconium-water reaction, meaning hydrogen square inch. That means that at the critical moment-when and zirconium oxide. This also happened at Three Mile Is­ all the fuel is molten, when all the aerosols are being re­ land, but Chernobyl has more than fivetimes as much. The leased-that the containment vessel will hold. There will be second reaction is the uranium oxide and carbon reaction, several tons of aerosols released in the vessel, some of them meaning uranium-carbon, carbon monoxide, which is also radioactive. They will all be initially produced at the smallest exothermic. So both of those would heat the thing up, and size, a tenth of a micron. If they were produced in a dilute then the hydrogen gas and carbon monoxide gas would put area, out in the air, they woul

42 Science & Technology EIR May 16, 1986 maybe 8 hours, maybe 16 hours, maybe four days, or: possi­ EPRI's general statement [on the accident] 1 think cer­ bly never, the containment vessel .may crack open. Some tainly points out one of the major differences between safety critics will then say, "but you don't have containment." But, measures employed most widely in the United States-the yes you have: you have it for the crucial period for forcing presence of containment. This means a substantial structure the settlingof the aerosols. with 5-foot-thick containment walls and steel liners .

EIR: What has been the general role of the EPRI Safety . Analysis Center, in particularsin ce TMI? The crucial thing about our reactors Loewenstein: There were a couple of very important reports and guidelines that emerged from TML The firstone was the then, will that containment is Kemeny Report. Then there were two major reports for the vessel hold in an accident, andJor Nuclear Regulatory Commission. These required a number how long? The "how long " giVes of things, involving modifications in plants, training, and hardware, which were generally imglemented throughout the you time to do all sorts ojth ings. country. FOr example, one of the tliings that EPRI did, was to develop basic hardware to enable you to see what was going on in the plant. There was al$o an extensive program

testing the natureof the release valves, providing insights on EIR: So, if there is a crack in containment after that crucial how to make them operate more rel�ably. point,you are saying that the radioactivity released would be There are multimillion dollar expenditures every yearby greatly lessened? the industry and by the Nuclear Re�ulatory Commission to Wilson: A lot of the radioactivity will be unavailable for develop the safety procedures and hardware to make plants release; not all of it-you never get all of anything any­ function more safely. where-butyou will be down by enough of a factor to make it safe . You wouldn't even bother to evacuate anybody .... I am hoping, and expectingto beinvited to visit the Soviet Dr. Petr Beckmann: Why Union ....They have that American bone man in there , who will probably be. able to save a fair fraction of the ill did it take 36 hours? people. We call the lethal dose of radiation 500 roentgens. \ You can give a whole body dose of 1 ,000 roentgens and save Petr Beckmann is a professor of electrical engineering at the three-quartersof the people. That's been done, because peo­ Universityof Colorado at Boulder. He came to the university ple have been cured of leukemia that way. You kill the leu­ in 1963 as a visiting lecturerfrom the CzechoslovakAcademy kemia with that high dose, replacetheir marrow, replace their of Sciences. and he did not return :to Czechoslovakia. The blood, and three-quarters of them survive, and that's quite author of nine books! he publishes a pronuclear monthly remarkable. newsletter Access to Energy. He comments here on how the accident reflects the defects of Soviet culture. which places human life at low priority. Wal ter Loewenstein: Containment is key EIR: Can you comment on the concept of Soviet nuclear safety? Beckmann: The Soviets have a full-fledged civil defense Walter Loewenstein. is deputydirector of the nuclear power system in place, with shelters, instructions on radibactivity, division at the Electric Power Research Institute (EPRI) in chemicals, evacuation plans, etc. Yet it took them 36 hours

Palo Alto. Calif.• with 30 years' experience in nuclear de­ to put the system that's alreadyin place, to put it in operation. velopment and nuclear safety. EPRI's statement on U.S. In 36 hours, you understand that what endangers people versus Soviet nuclear safe ty stressed the limited redundancy is the dose. The dose is directly proportional to the time that of Soviet back-up power systems and the limited oversight of you spendthere: roentgensper hours:times the hours. Inthose qualitychecks and operator training. 36 hours, probably hundreds of people will die a death that was definitely avoidable. That means it's not just that they EIR: Was there a change in Soviet nuclear safety practices don't care about human life-whiQh they don't-it means after Three Mile Island? that the system is so bureaucratic thatit can't even use what's Loewenstein: I really don't know if there was a change .... at its disposal. That system will work for war, because it' s The obvious point is that they have a very large reactor with meant for war. It will not work for another emergency be­ what appearsto beno containment, which is quite a departure cause some bureaucrat failed to think, whieh is the job of fromthe nonnal practice in the Western world. bureaucrats.

EIR May 16, 1986 Science & Technology 43 Russia under the new Stalin: blood and trials

by KonstantinGeor ge

At the beginning of this year, EIR had alertedour readers that of the extra investment of n1en and supplies required for a new phase of the mass Soviet purges under Mikhail Gor­ repairs. I bachov-the new Stalin-was beginning, and that this phase Shortly before the Cherndbyl disaster, solid indications would witness' a continual series of bloody show trials and began to surface in the Sovie� media, that those responsible death sentences, under the banner of "anti-corruption." We for recklessly ignoring material and equipment standards in were right on the mark. Blood is indeed flowingin the Soviet order to formally meet quota deadlines, would soon trejoin­ Empire. ing the ranks of purge victims; being deemed as guilty as any

The Chernobyl disaster adds a further dimension to our laggards. It is quite revealing that two such articles were forecast, in that it will serve to increase'the fury of the purge explicitly devoted to the "mess" at the Cherhobyl site, where drive in the Soviet Union. the saine sloppy and incompetent construction standards ap­ Till now, the purge was more or less strictly focused on plied. to the first four reactorS already built, were being re­ removing those functionaries responsible for failing to meet applied to meet artificiallyshortened construction schedules· assigned output quotas. When the quota however is fetish­ for the fifth and sixth reactors. ized, an e{ldemicproblem of another sortappears , and reach­ The first article appeared in the March 18 edition of the . es horrendouspropor tions. It becomes especially aggravated Ukrainian Pravda. i when those who fail to meet assigned, artificiallyset quotas, The real biting blast theDi surfaced on March 27 in the are indiscriminately punished, without sorting out the rea­ journal of the Ukrainian Writers' Association, Literaturna sons-and the actual blame. The purge produces the phe­ Ukraina. The article, covering half of the front page, was nomenon en mas�e of functionaries who will "deliver" the drafted by one Luba Kovalevska, a resident of the town of assigned quota, by hook or by crook. "By crook" here means, Pripyat, the largest town nearlthe reactor site. to cite but one endemic example, that projects are completed The front,-page article by Kovalevska began with lauda­ "on time" with heavy use of substandard-and hence struc­ tory quotes fromGorbach ov'� 27th Party Congress speech in turally unsafe-materials, which are not returned to sup­ February, where the Soviet general secretary ordered plant pliers-for fear of thereby experiencing a schedule delay, managers and functionaries to incorporate the latest in high and thus losing, at a minimum, one's post. technology in order "to increase efficiency. " The author also It is this near universal application of "cutting comers," cites parallel quotes from speeches by Soviet Politburo mem­ and �'robbing Peter to pay Paul" which is generically respon­ ber and Ukrainian party boss: Vladimir Shcherbitsky. Then sible for Chernobyl, and responsible for many other unsafe comes the stinging broadside against the Cheinobyl nuclear factories and projects in the U.S.S.R. Even if the result is not power plant project as a blatant example of an across-the­ a headline-grabbing disaster like Chernobyl, the economy board failure to meet these guidelines, and a paradigm of a suffers heavily through extremely high rates of equipment project whose structural and $afety standards had gone "out breakdowns, and consequent production loss, to say nothing of control" through the formalistic adherence to quotas and ,

44 International ElK May 16, 1986 deadlines which bore no relation to reality. The following tion 'output, thousands of party, g�vernment, and manage­ excerpted passages from the Liternaturna Ukraina article ment functionaries have been removed' in the purge's first- speak for themselves: relatively bloodless-phase. "Construction work should proceed as an uninterrupted Starting a few months ago, this bloodless phase came to process on the basis of the strictest adherence to construction an abrupt end. technology. But this is exactly what is not happening. The Gorbachov has rediscovered an old favorite of Stalin' s­ problems of the firstreactor were inherited by the second, the the firing squad. For the first time since 1946, when the initial problems of the second by the third, and so on." Kovalevska wave of executions of Nazi war crlminals and wartime col­ then attacks the decision which artificiallyreduced the con­ laborators ended, a woman has �en executed by a firing struction period for the fifthand sixth reactors "from three to squad in the Soviet Union. The woman, 59 years old, was two years," to have the entire project finished by 1988: executed as an example to all women functionaries and man­ "Already in 1985, construction plan targets were not being agers that they would not be exempt from the death penalty fulfilled and the construction workers suffered low morale"; if convicted of serious "corruption" offenses. the decision to move up the deadline, "strained planning and Other recent cases of executions by firing squad include made it harder to obtain supplies when needed. The acceler­ two Soviet diplomats from the Ru!>sian Embassy 'in Kabul, ated schedule threw the whole project into disarray . Rather Afghanistan. The two, one a Russian, the other a Tadjik, than learningfrom problems with the construction of the first who was formerly the justice minister of Tadjikstan, were reactor, managers permitted the problems to become worse. executed afterbeing found guilty of having conducted mas­ This caused indignation among the workers and created a sive black market gold dealings wiQtAfghan rebels. sense of hopelessness in the managers at the plant. "The inability and impossibility of the engineers to or­ The breakup of the 'Cotton Mafia' ganize the work brigades has weakened the ability to demand The biggest single number of arrests in the "anti-corrup­ efforts from the brigades. As workers tried to meet unrealistic tion" drive anywhere in the Soviet Union, has occurred in the goals, it led to a disorganization of the construction and a Central Asian Republic of Uzbekistan. The campaign began total failure of the overall plan. with the roundup in Uzbekistan, of well over 200party and government functionaries belongiOg to the so-called Cotton Mafia,as it's called in the Soviet media. U�bekistan is one of the leading cotton-producing areas in the world. The re­ The purges are a crucialfe ature qf gional and local party and governmentleaders hips, in a prac­ Gorbachov's attempt" to eriforce the tice that began during the Brezhnev period, systematically­ society 's conversion into a war year in, year out-falsified cotton and cotton product pro­ duction figures, reaping a whirlwind of extra State cash hand­ economy. Under the heading a qf outs. The cash was used to finance all kinds of smuggling stamping out "corruption ," and criminal activities, including � bribery system that had thousands qffu nctionaries have nearly all leading figuresin U zbeki�tan "on the take." As we shall see below, hardly any of Uzbekistan's Brezh­ been re moved in the purge'sfirst , nev-era leadership has survived the Gorbachov sweep. The relatively bloodless phase. That former long-time leader of the Uzbekistan party and candi­ date member of the Soviet politburo, Rashidov, only escaped phase has come to an abrupt end. arrest through hisuntimely death iIi 1983. Already, several leading party functionary members of the "Cotton Mafia" have been executed, and more are ex­ "In some cases, materials were substandard ....for ex­ pected to follow. An example of the scope of "Mafia"activ­ ample, 326 tons of spent nuclear fuel from a plant in the ities is indicated by the following information divulged by Volga region were deficient ...[a nd] especially steel and Soviet media . reinforced concrete were always in short supply." Then, Ko­ • The party First Secretary of the Bukhara region, who valevska says that "the sickness of the construction system" had been a full member of the Soviet Central Committee, cited at Chernobyl, is "unfortunately typical." Her prophetic was arrested for having accumulated a total of 3.5 million conclusion: rubles in bribes. In the home of one local party secretary from "The impossibility and unwillingness of engineering the Bukhara region arrested, were' found 18 million rubles workers to organize teamwork resulted in lowered standards. and 200kilograms (5,280 troy oz.) of gold. The failures will be repaid over the decades to come." • The entire apparatus of Uzbekistan's interior ministry The purges are a crucial fe ature of Gorbachov's attempt has been purged for co-participation and cover-up of the to enforce the society'S conversion into a war economy run­ wide-ranging Mafiaacti vities. Thirty-seven members of the ning at fu ll steam. Under the heading of stamping out "cor­ interior ministry are under house arrest, and four department ruption" and bureaucratic impediments to increased produc- heads are in jail awaiting trial. The interior minister himself,

1 EIR May 16, 1986 International 45 and his deputy, have managed to avoid certain death sen­ tences by preemptively committing suicide. Asia The scope of the Gorbachov purges in Uzbekistan has exceeded anything witnessed in Central Asia, even under Stalin. When the Uzbekistan Party Congress ended in early February, only 34 of the 177 full Central Committee mem­ bers in Uzbekistan survived the sweep. The Republic of Uzbekistan was also removed from even the nominal trap­ pings of "home rule" on local matters . The newly elected Uzbekistan Politburo contains only 6 Uzbeks among its 13 members, with the majority now consisting of 6 Russians and 1 RussifiedKazakh . A similar total elimination of the old Brezhnev-era lead­ Political cards, ership "Mafias" has occurred in every other Central Asian Muslim Republic. The show-trials spotlight will soon move to Moscow. reshuffled in Thailand Last Christmas, Gorbachov convened a special meeting of the Moscow City Party to expel Viktor Grishin, Moscow by Sophie Tanapura party boss since June 1967, from both his key Moscow post, and from the Soviet Politburo. Since Grishin's expulsion, t over 130 Moscow functionaries and managers have been The dissolution of the parliameI1tby the government ofPrime arrested and will soon appear in a big "anti-corruption"show Minister Prem Tinsulanonda 011 the night of May 1 realJy trial. Other spectacular show trials are scheduled to start soon came as no surprise to those who have been closely watching in Leningrad, in the Volga industrial and war production Thai politics for the past months. Some politicians with a center of Kuibyshev, and in Kishinev, the capital of the certain foresight had already �en preparing their constitu­ Moldavian Republic (the former Romanian province of Bes­ ency since January for early elections this year. sarabia). After a year and a half of repeated failures of the Prem government to correct tire accelerated course of economic The bloodier secret executions decline that Thailand has taken .since the International Mon­ The "anti-corruption" public trials and publicly reported etary Fund-instigated devaluat�n of the baht in November executions are only the tip of the iceberg of what actually 1984, a majority in the lower House of Representatives was goes in the Soviet Union. Mass executions, which are never reached to defeat a government decree which, if passed, even hinted at publicly, also have been occurring. One es­ would have increased registratibn fees for vehicles powered pecially brutal example of this has just been reported by the by diesel fuel and liquified n�tural gas: Thus challenged, authoritative Swiss defense publication, International De­ Prime Minister Prem had no other choice but to dissolve the fe nse Review, published in Geneva. In October 1985, Mus­ parliament and to call for new t11ections within three months lim Tadjik troops stationed in Afghanistan with the Red Army as a last attempt to reshuffle pothical cards in his favor. contingent there, mutinied. Russian troops were called in to Politicians in Bangkok havd noted that the dissolution of put down the mutiny, and in the ensuing fighting, over 70 the parliament came a little earlier than expected, and will soldiers were killed on both sides. All the hundreds of sur­ create a favorable situation for the Democrat Party, whose viving Tadjik mutineers were then summarily executed. political machine is among th� oldest and the most experi­ The same issue of International Defense Review also enced. Unlike other political forces, the Democrat Party still reports that at the beginning of January, a large explosion remains relatively intact. It is generally expected that Dem­ causedextensive damage at a Soviet missile plant in the town ocrat candidates are likely to sppplant many of the incum­ of Biysk, in Western Siberia. The plant produces the 8,300- bents of the Thai Citizens Pa� (Prachakorn Thai Party of kilometer range SS-N-20 missile, the missile fired by the Communications Minister Sa� Sundaravej) in metropoli­ 25,000-ton Typhoon Class missile submarines, the most tan Bangkok. Deputy Prime Minister ard Democrat Party modem in the Soviet navy and the largest submarines in the Secretary-General Bichai Rattakul has asked General Prem world. As in all cases of military- and defense-related "acci­ to run in the elections under thei banner of the pa�y. If Prime dents" in Russia, a secret investigating commission was con­ Minister Prem decides to make a political come-back with stituted. Mistakes ,and negligence among responsible figures increased legitimacy, it is mooted that he might choose to in such cases almost automatically lead to the imposition of run in Songkhla, his home towq in the south of Thailand. To death sentences for de facto sabotage of critical war produc­ date, Prem has not made his int�ntions clear. tion. On all other political fronts, � major realignment of forces

46 International EIR May 16, 1986 , is taking place amid total disarray reigning in most parties. mole" in the first place. Air Chief Marshal Siddhi enjoys the The Social Action Party (SAP) has been whittled down con­ support of the Thai Coca-Cola kimg, Pong Sarasin, whose siderably with the departure of fornierDeputy Prime Minister son Ken is the major shareholder in Jardine Services (Thai­ Boontheng Thongsawasdi and some 40 dissident members land), a company related to the 1¥tish Dope, Inc. firm of of parliament from the party. An "amnesty" call to the dissi� Jardine Matheson. Siddhi is known to get along very well dents was launched in vain by Air Chief Marshal Siddhi with Henry Kissinger. i Savetsila, currenthead of the SAP. Siddhi is also the deputy Socialist Action dissidents led; by Boontheng Thongsa­ prime minister and foreign minister of the Prem government. wasdi are presently negotiating a merger with the Community The existing riftswithin the SAP were exacerbated when Action Part, (Kitprachakom), newly founded by Boonchu M. R., Kukrit Pramoj launched a virulent attack in the parlia­ Rojanastien. Socialist Action defectors have set a condition ment against the InternationalMonetary Fund and the World Bank in June 1985. The international financial institutions were accused by Kukrit of violating the national sovereignty of Thailand. Kukrit then picked up the fight against IMF­ The issue in the com�ng election is World BanIa stooges such as the prime minister's economic whether an economif development adviser, Dr. Virabhongsa Ramangkura, whom Kukrit la­ beled a "technocratic bitch." The Bangkok EIR office was program will be put together or the first to reveal that in order to please the IMF and World whether the austerity policies qfthe Bank, Dr. Virabhongsa was advised by his economics pro­ IMFlWo rld Bank wiZZ; continue to fessor, Lawrence Klein of the Wharton School, to devalue the baht by 17% on Nov. 2, 1984. By December 1985, bankrup t the country. Boonchu Rojanastien, a founding member of the SAP and former deputy prime minister in charge of economic affairs, tPggered yet ' another political shock wave against the IMF for their affiliationwith the CAP: irklusion of the agricultural when he keynoted an EIR economic conference in Bangkok crop price lifting scheme and prot�tion of national industry on that theme. He did not mince his words. The IMF was in the platform of the party. There lwill also be an attempt to I characterized as "the modem-day Shylock" by Boonchu. form an alliance between the CAP ft"d other political parties That fall, a ferocious fight broke out between Commerce and groups, namely the Siam Dem�racy Party (SDP) led by Minister Kosol Krairiksh (SAP) and Dr. Virabhongsa over Thavich Klinprathum and Col. Phon Rerngprasertvit, the the question of whether or not the government should main­ National ' Democracy Party of fonper Prime Minister Gen. tain the rice price-support program, guaranteeing rice at 3,000 Kriangsak Chamonan, the mass party of dissident Democrat baht per ton. Bangkok Fusion Energy Foundation represent­ Police Capt. Chalerm Y oobamrung, and the group of former ative Pa,kdee Tanapura launched a media campaign in favor Chat TIrai Party MPs led by Col. �arong Kittikachorn. As of the rice support program as stipulated by the Thai Consti­ for the Citizens Party, a new party led by former Deputy tution. In the end, Minister Kosol lost to free-trade advocate Army Commander-in-Chief Gen� Tienchai Sirisamphan, Dr. Virabhongsa, and was subsequently forced to resign from known for crushing the Sept. 9 abottive coup last year, it was the cabinet. However, the free-trade policy of non-interven­ pulled together to consolidate supRort for the military estab- tion of the state drove the price of rice down to approximately .li shment. " 1,700baht per ton, way below production costs resulting in Political insiders say that this qarly election will be one the bankruptcy of many Thai farmers, the traditional base of of the dirtiest ever seen in Thailan

EIR May 16, 1986 International 47 India Since then, their campaigti of killings has numbed the citizens of Punjab. Most recently, the terrorists targeted the Hindu population in Punjab for assassination, with Hindu chauvinist groups arming themselves to carry out reprisals. The Sikh extremists have demonstrated a singular lack of concern for any political issue, including most the still-un­ Police clean up s�ttled major points of the Rajiv-Longowal accord. The Au­ gust 1985 accord, which paved the way for placing the state Golden Te mple, again back into elected hands, called for the transfer of Chandigarh to Punjab in return for a few Prunjabi villages to the neigh­ by Susan Maitra boring state of Haryana, rehabilitating the Sikh army men who deserted their ranks in the �ake of the 1984 army action at the Golden Temple, and a sh�ring of the river waters with On April 30 a large posse of Punjab police entered the Golden neighboring states. Temple, the sanctum sanctorum of the Sikh religion at Am­ As a former parliamentarian who visited Punjab in early ritsar, to evict the pro-Khalistani elements who have been April reported, he was told by s�paratists at the Golden Tem­ once again using the shrine as a base for separatist terrorism. ple that they have no interest in the Punjab accord. They care According to police reports, several leaders slipped out in only for the "Sikh demand" -a separate constitution, a sep­ anticipation of the raid, but 377 people were arrested and arate president, and a separate flag. Their fight, they told sedition cases have been registered against 54. him, is against "Hindu imperial�sm, economist colonization, The decision to enter the Golden Temple again was proof Brahminic ideology, and Bania [trader] exploitation." of Punjab Chief Minister and Akali Dal head Barnala's de­ termination, which had come into question in recent months . The Pakistan hand of apparent inaction in response to mounting terrorist atroci­ When the separat�sts declared the state of "Khalistan" ties. The police action culminated a renewed hands-on effort from the Golden Temple right before the sweep, they called to crack the terrorist menace on the ground in Punjab. The for immediate recognition froW the governments of Great campaign began several months ago with a sealing of the Britain, Canada, the United States, West Germany, and Pak­ border with Pakistan. At the same time, Julio Rebeiro, the istan. The EIR book Deriv�tive Assassination: Who Killed tough former police chief of Bombay, was inducted to take Indira Gandhi? detailed how sections of the first four gov­ over the demoralized and corrupted-and virtually para­ ernments have been aided and abetted the Sikh terrorists lyzed-police force of Punjab. safehoused within their territo�. Many of the ties between The Golden Temple evokes the most personal passion the Khalistanis outside India and the Sikh separatists inside among the Sikhcommunity , and has always called the tune Punjab, Indian sources say, have been successfully severed. of Sikh politics. But the recent move could be expected to In early April, Minister of State: for Internal Security (MSIS) meet some resistance, or at least give rope to opportunist Arun Nehru informed the Parliament that the government politicians to raise their banners. had "clear evidence" of Pakistan involvement in Punjab. The day after the raid, a group of Akali Dal leaders, under Since then the seive-like border with Pakistan has been the banner of the former chief minister, Prakash Singh Bar­ clamped shut-in just a month a number of illegal travelers dal, resigned from the party working committee and from the going both ways were summarily shot. Barnala government. According to Bardal, who makes no The terrorists are not onl y s�fehoused in Pakistan, a report secret of his ambition to become the chief minister once in India Today stated, but also,given intense indoctrination. again, at least 29 assemblymen out of 72 have joined him in As one arrestedterrori st, Gurvinder Singh, stated: "Pakistani protest against the police action. officers would come and talk to us every day and tell us that The dissidents complain that Barnaladid not consult them we had to create Khalistan. We were told that we must make about his plans to raid the Temple. But Barnala had been sure that we kill Hindus only, so that there would be com­ mandated by Sikh community leaders assembled in mid­ munal riots in Punjab. They said there must be a complete February to take all necessary steps to recapture the shrine havoc, a bloodbath, because th�t was the only way we would from the extrmemists. get Khalistan." On April 29 a five-member "Panthic committee" had Indian security authorities sought confidential discus­ made a declaration from the Golden Temple establishing sions with their Pakistani counterparts on the evidence gleaned "Khalistan." The "Panthic committee," which controls the from extremists arrested recently of Pakistani aid and s;omfort Sikh congregation, had been taken over by the separatists in to the Khalistan cause. But, Iqdian Foreign Secretary Ven­ an organized coup in January, who then re-occupied the kateswaran told foreign correspondents on April 30, this Golden Temple. A campaign was simultaneously launched initiative was scuffledwhen it was leaked to the press on the to take over many local gurdwaras across the state. Pakistani side.

48 International EIR May 16, 1986 for numerous Iranian and Libyan tJrrOrists; the pro-Libyan Facts Behind Terrorism German-Arab Friendship Associatiqn Was created under:his sponsorship. , Strengthening the American message , only days before his meeting with Assad, Gensche� reportedly received a lengthy report fromthe French foreign ministry detailing how Libya, Iran, and Syria operated as a'''single unit, both in the planning and financing" of tertori�t operations. Genscher Herr Genscher's needn't have been reminded of thes� facts, but the transmis­ sion of such officialdocuments did b�ng additional pressure . message fo r Assad Indicating how much he dislike4- his mission, Genscher apologized to Assad for having expelled Libyan diplomats by ThienyLalevee fromBo nn, insisting, reportedDer Sp iegel, that these actions were not retaliation for Libyan terrorism, but because "the freedom of movement of German diplomats in Tripoli had Though the final resolution on international terrorism from been curtailed." In response, Assad 'promised he would ad­ the Tokyo summit on May 5 singled out Libya as being one vise his pet-terrorists to "concentrate on the fight in the Oc­ of the "states sponsoring terrorism," Syria, too, lias come cupied Territones," a concession fot which the Israelis can under the spotlight. That point was driven home by President , certainly thank Genscher. Reagan, in an interview May 6 shortly before leaving Tokyo, In any case, it is appropriate tha(the warningof possible when he was asked what would happen if other countries­ American' operations against Syda should come from say Syria-were also proven to be involved in international Genscher. Recent inquiries indicate that Syria, like Libya, terrorism. President Reagan replied that they would "receive has used the Russian Occupied Zone of East Berlin to run the same treatment" as Libya. terrorist operations in West Berlin aQd in London. A similar statement from the President shortly before the On May 5, British police officiallyrequested the Syrian April 15 raid on Tripoli, when he warnedthat both Syria and ambassador in London to permit interrogationof some of his Iran could become America's next targets, left Secretary of diplomats. According to British sOufces, there is increasing State George Shultz near apoplexy. Shultz rushed to go on evidence that Nezar Nawaf Mansur Hindawi, arrested on record that there was "no proof' directly linking Syria and April 18 for trying to blow up an EI Al plane out of London's Iran to terrorist acts similar to Libya. UnofficialWhite House , Heathrow Airport, was working with Syrian diplomats. He sources were even quoted that Reagan had made the state­ was in any case carrying a Syrian pa�sport, and according to ment because he had been "pushed too far" by the journalists Israeli sources, his bomb may havd been fabricated in the he was meeting with. Syrian embassy. On May"6, West German, police-who had So far, Shultz personally has said nothing more about also arrested Hindawi's brother, A�ed Nawaf Mansur Hazi, " Reagan's May 6 comment on Syria. Even so, on May 5, a on April I8-arrested two of Hazi's associates, Fayez Saa­ State Departmerit official made public a call to Damascus to hanweh and Farouk Salameh, and charged them with a March "get rid of Abu Nidal." "The Syrian government is aware of 29 bombing in West Berlin. Their ,interrogations revealed our concernabout its involvement in international terrorism, that the explosives may have come from the Syrian embassy including the presence within Syria and within Syrian-con­ in East Berlin. Hasi was found to ,hav� been involved in trolled Lebanese territories of bases and personnel belonging 5 plannIng the April 1;K>mbing of West Berlin's "La. Belle" to th,e Abu Nidal organization," read the statement. discotheque. On April 20, Italy expelled thret Syrian diplomats from Genscher delivers U.S. warnings to Syria , Rome, in a clear warning that the net was �losing around Syrian President Hafez aI-Assad, meeting on May 2 in Damascus. In an operation with the U.S. Drug Enforcement Belgrade (Yugoslavia) with West German Foreign Minister Administration; Italian police dismantled a'large heroin­ Hans-Dietrich Genscher, was warnedto expect both the State smuggling network coming directly from Syria through dip­ Department and Reagan's declarations. Much to his displea­ lomatic cars, arresting 20 Italians, Egyptians, and Lebanese. sure , Genscher was bearing an American ultimatum to Syria However, the Syrian embassy was ;the headquarters of the to immediately drop any connections to international terror­ operation, as in the similar case of Ii heroin-smuggling net­ ists operating in the West, and moreover, he warne� Assad work in Spain last November, in which several Syrian dip­ against any further actions against Jordan's King Hussein­ lomats were also exposed and expelled. Syria exports hashish a message timed to coincide with Assad's visit to Jordan on and heroin to finance its terrorist operations abroad in the May 5. same way Iran and Libya use their oil-export revenues to Up to the April 14 U.S. raid on Libya, Genscher had finance theirs. Hitting at the Middle Eastern drug networks played a key role in turning West Germany into a safehouse is a clear requisite in the fight against terrorism.

EIR May 16, 1986 International 49 , ' .

. - .." .

Northern Flank by Goran Haglund

turns socialist ' N()rway , the Soviet ' naval bases on the Kola ",.WUhthe iesignation of the conservatives, the partyof Soviet spy Peninsula. : Tfeholt has been charged with the defense of Norway . According to the new informa­ tion, contained in the just-released Norwegian edition of The Military Balance magazine, published by the . ' Norwegian Atlantic Committee, the Failing to ram his austerity package Labor Party leaders until his arrest in Soviets have secretly stationed anoth­ through .parliament, Premier Kaare , 1984 as a top Soviet KGB spy. er marine-infantry brigadeon the Nor- Will,

cialist International , Mrs. Brundt­ package a vote of confidence for the Typhoon class are reportedly , sta­ land's Arbeiderpartiet, has never non-socialist government co�ition, tioned, cariying long-range nuclear­ clearly distanced itself from the activ­ Norwegian military commanders re­ tipped missiles that can reach targets ities of convicted spy Arne Treholt, leased new information about the in the United States from their firing " who was a prominent representative strengthand tasks of Soviet forces near positions anywhere in the Barents Sea, ,. of the new generation of Nor:wegian Norway, including a first-ever mapof including upder the Arcticice-cap .

56 ' International EIR May 16, 1986 Report from Bonn by RainerApel

Kohl missed a great opportunity ruled by Christian Democrats, also The fa cts of the Chernobylaccident speak against the Soviet took such measures. lobby in West Germany . ChancellorKohl and his Christian Democratic leadership let all of this happen, without intervening. The public rage against this scare cam­ paign was highe�t among the farmers, With the next national elections West." many of whom listed income losses of only seven months ahead, Germany's There is no doubt that Kohl's own up to 50%, due tbthe drop of sales of Chancellor Helmut Kohl should be · party base in the Christian Democratic fresh agricultural products. more than concerned about his popu­ Party was waiting for the chancellor, It is estimateidthat German farm­ larity. The latest opinion polls show a who is also their party chairman, to ers lost some 10 to 20 million deutsch­ meager41 pointsfor him, but 53 points move, But Kohl missed the big chance, marks total incorpeper day during the for Johannes Rau, the Social Demo­ and lost the game tothe media and the first phase of �ificial anti-nuclear crats' candidatefor chancellor in 1987. opposition, which took all efforts to hysteria. ' . The Chernobyl disaster discredit­ re-interpret the Chernobylcase into an Thefarmers f,vere obviously wait­ ed all of Moscow's political co-think­ issue of mere anti-nuclear hysteria. ing for Kohl to c�me out in defense of ers in Germany, such as the ' Social Especially the farmers were hit by their income intctests. The chancellor Democrat� (SPD) and the appeasers the anti-nuclear hysteria which was could have restotedhis own shattered I . inside Kohl's Christian Democrats whipped up by the media and the So­ image among fanners , who are up in (CDU). The facts on the catastrophe, cial Democrats.· SPD party chairman arms against Bodo because of the gov­ and the way the Soviet authorities Willy Brandt took the lead on this ernment's disinterest in the bad in­ handled the case, offered a great op­ campaign on May 3, when he said at come situation irlthe agricultural sec-' portunity to Kohl to launch a counter­ an election rally in Hanover-the tor anyway. Kohl's failure to defend offensive against the political opposi­ Lower Saxon capital-that "Cherno­ the farmers agaipst the SPD-Ied hys­ tion. byl proved we must get out of the plu­ teria campaign IS certain to cost qis He could have made the Cherno­ tonium' cycle economy and of nuclear Christian Demodrats additional votes . . byl accident a case-study of Gorba­ power in general." . in the farming seftor, now. chov's cynicism and untrustworthi­ The party heads of the different All of this .will undermine the ness. Kohl could have capitalized po- SPD sections followed suit, stating that chances of Kohl's Christian Demo- . . litically on the affair, at a clear dis­ a Social Democratic Bonn govern­ crats to win the sijiteelections in Low­ tance from the appeasers. He could ment in 1987 would make sure Ger­ er Saxony on June 15, which can be have denounced the Social Democrats many got "out of nuclear power as considered quasilprimariesfor the na­ and the GreenParty for their revealing soon as possible." The SPD-Green tional elet:tionsof Jan. 25 , 1987. With silence on the Chernobyl affair. governmentof the state of Hesse, led Kohl's popularity down to the record Discrediting the Greens, and their by Social Democrat Holger Bomer, low of 41 points, he is not certain to SPD partners , would not have been even marched ahead with officialbans survive June 15. The party will rather even difficult. The Greens exposed on the sale of agricultural products, leave Kohl, like! the proverbial rats themselves as Soviet agents by con­ alleging, "All fresh milk, salad, and jumping from � sinking ship, and doning Moscow's obscene, lying be­ vegetables are susceptible to the ra­ look for another 'Christian Democrat havior in the aftermath of the accident. dioactive fall-out from Chernobyl." for chancellor ca8didate. Why? "We didn't want to join the anti­ The Hesse Ministry of Environmental The political tradition in West Soviet campaign," said a Green Party Affairs, led by Green Party member Germany does notallow such "chang­ spokesman in Bonn May 5. Aftercon­ Joschka Fischer, sent out its "surveil­ ing of horses" mid-stream in the pre­ tacting the Soviet embassy for private lance teams," harassing the con­ election race, however. It would even talks when the accident was reported, sumers with scare stories of "intoxi­ accelerate the decline of the Christian the Greens announced a renewed cam­ cated food." Democrats, improving the chances of paign against "the main political tar­ To make the case worse, the other the Spcial Democrats to win the na­ get, which is nuclear power in the state governments, including those tional elections iii 1987.

EIR May 16, 1986 International 51 'Report from Paris by Laurent Rosenfeld

Patriot, engineer, entrepreneur the "offshor� agreements" ofthe Mat� "In order tofly well , an aircraftfirsthas ' to be beautiful."- shall Plan, tb aid the rebirth of Eun)­ Marcel Dassault. pean industry). By 1956. he had become powerful enough to bUildentirely at his own risk ' the Mirage-IU, the first interceptorable to flyat (and above) Mach 2. Another novelty of the Mirage-III was its delta, On April 18, French aeronautical back to what was to make him famous: wings-a d�sign copied by all major engineer and entrepreneur ,Marcel designing and building aircraft. The aircraft makers because of its flying Dassault died, at the age of 94-a fig­ creation of an Air Ministry induced qualities at ,upersonic speeds� More ure one might have labeled, based on him to sell his estate to build another ilian 1,400,Qf these planes were sold his last years, as an eccentric billion­ aircraft company. He thus created one in more than 30 countries. On a Mi­ aire who sometimes used his fortune of the first commercjal twin-engine rage-III, Jacqueline Auriol, the French in �d ways. Yet, Marcel Dassault planes, as well as other models. The President'� c!aughter, became the first could be seen -as the most important Popular Front in 1936 nationalized his woman to p+ss the sound barrier; she European innovator-in aircraft design company, but he stayed on as an "ad­ later set a reQord of 2,738 kmlh,which and construction in the last 40 years. viser," an� designed several fighter­ held for mOre than 20 years. The To cite only one plane which made interceptors, the Blocb- 150, Bloch- French strat�gic bomber, the Mirage­ him world-famous, his Mirage-III has and Bloch-220, which had some IV, is derivjed from the same basic 200, ' ' been one of the most successf. ul jet success in the firstphase of World War design. fightersof the recent period. II, and a public transportation quadri­ Dassault, designed many other air­ Dassault was an engineering ge­ motor, the Languedoc- 161. The lat­ craft whose names are still niaking nius, a bold entrepreneur, and Ii ter's prototype was ready just before news-the Jaguar (in collaboration staunch French patriot. His work, for the Frenchdefeat in 1940. When Bloch with the Britjsh), the Etendard and the 60 years, has been a locomotive for refused to deliver the plans to the Luf­ Super-Etendard aero-naval fighter- European and world aeronautical twaffe and to collaborate with Nazi ,bombers, the Dassault-Breguet�At� progress, and remains an example for Germany's engineers, he was deport­ lantique recQnnaissance plane, the Al­ future generations. ed to Buchenwald. pha-Jet traitiing plane, and several ci­ Born in 1892 in Paris, Marcel Surviving the death camp, Bloch vilian airpla,Oes: the Mystere-20, the, Bloch (his real name), was the son of converted to Catholicism just after the Falcon, and �he Mercure. a Jewish doctor who had left Alsace Liberation and assumed the name he Close to! 1,000 of the Mirage Fl afterthe Prussians annexed that prov­ had carried in his episodic Resistance (derived from the first European ver­ ince in the wake of the Franco-Prus­ activities, Dassault, and created a new tical take�ffaircraft, .the Balzac) have sian War of 1870. After graduating as comp;my with that name. While the been sold. Today, the Mirage 2000, an electrical engineer, Bloch became German aeronautical engineers, ear­ although not matching planes like the intrigued by airplanes in World War lier the best in Europe and perhaps in F- 16, remains one of the top three I. In 1916, he designed a new model the world, were either forbidden to fighters in tbe world. After disagree­ of propellor, the Helice-Eclair, fitted work on armaments or went to work ment betwecm various countries in Eu­ for two aircraft of the period, the for the United States or the Soviet �ope (espeqially France and Great Caudron-G3 and the Farman F-40. He Union, he became the man of Euro­ Britain), Dassault has offered the Ra­ then designed a two-seat fighterinter­ pean ,aeronautical progress. He de­ fale fighter, whose first prototype is ceptor, the SEA-4, of which 1,000 signed the first European jet-engine due to fly in May. Even though his were ordered by the French army in aircraft after the war, the Ouragan, company was nationalized for the sec­ December 1917. With the end of which flew at Mach 0.75 (1949). Soon ond time by:the Mitterrand regime in World War I, however, that order was after, he built the M ystere IV, the first 1981-82, D�ssault took up a new chal­ canceled, forcing Marcel Bloch to end European 'aircraft ever to pass the lenge: he designed the Hermes project his career as a aeronautical engineer sound barrier; the United States bought of hypersonic space glider, a kind of . for about 20 years. 240 of them in 1954, and to offered mini-shuttle that France wants to build In the 1930s, however, he came them to the French Army (as part of with its European partners.

52 International EIR May 16, 1986 Report from Rome by Liliana Celani

Italian scientific tradition revived gation of air s�ock waves in water. or "From Leonardo da Vinci to hypersonic flight: Italy's the other way $'Schiller Institute that How the Guidonia school was not the conferencd by saying, "I think I Italy's participation in the U. S. Stra­ at all built by fascism, but was the speakfor everybody in this room when tegic Defense Initiative will only be outcome of a long tradition of.scien­ I say that what we discussed must now fruitful if this scientific tradition is re­ tificbreakthroughs going back to Leo­ become goveritment policy. Cooper­ vived. nardo da Vinci's hydrodynamic stud­ ation between, Italy and the United Particularly impressive to every­ ies in the Renaissance, and particu­ States on the $01 must be based on body, since Ferri and his projects are larly the Italian collaborators of the this scientific foundation. We Should much more known in the United States German 19th-century scientist Bern­ not look at it Il!l an attempt to sell the than in Italy, was the moment when hard Riemann, was made clear by Colosseum to 1heAmerica ns, and we Prof. Bernardino Lattanzi, one of the Giuseppe Filipponi, director of the should not misinterpret � economic first researchers at the Guidonia school Fusion Energy Foundation in Italy, and spin-offs as money coming into the in the 1930s, gave his "eyewitness re­ by Dino de Paoli, who spoke on Leo­ industrialists' �kets from U.S. con­ port" on the scientific breakthroughs nardo da Vinci and Riemann's net­ tracts. Only through a university re­ in Guidonia. He explained that when works in Italy. The Guidonia break­ form , and building scientific labora­ it was inaugurated by Gen. Gaetano throughs resulted from Leonardo da tories like Betti's, Brioschi's, or the Arturo Crocco in 1936, Guidonia in­ Vinci's superior method, which al­ ones in Guidonia, will we be able to cluded "one building for the radio, one lowed experimentation on the propa- really contribute to the SOl research."

EIR May 16, 1986 International 53 1 I Dateline Mexico by Hector Apolinar

The PRI and economic policy to take on the basis of the consultation. The partydoes not like the pro-IMF dictatorship of the However, thaJ day will never come, "economic cabinet," but will it do anything about it? because the hearings were cancelled under pressures from the treasury sec­ retary and his agents in the House, such as Dep. luis Orci Gancara. who represent the viewpoint ofthe creditor T he Revolutionary Institutional ey to go to the movies?" The situation banks within the national political ap­ Party (PRI), Mexico's dominant par­ has &llowed gains by the anti-govern­ paratus. i • . . ty, will convene an emergency meet­ ment parties led by the alliance of the In fact, g�ing in exactly the op­ ing of its national, regional, and local National Action Party (PAN) (the for­ posite direction. late last year the trea­ leaders of the whole country, with the mer Nazi party of Mexico), and the sury departmeint presented a bill to set aim of discussing the grave economic Unified Socialist Party (PSUM), the up dollar accqunts inside the national crisis Mexico is undergoing, and 'to former Communist Party of Mexico. banking syst�m, which would be propose an alternativeeconomic pol­ In addition, me financial policy has agmnst the lalV because of exchange icy to the one being implemented by turned into a political dictatorship controls. However, despite the seri­ the so-called economic cabinet of. which extends not only over the "gov­ ous irregularit�es which were commit­ President Miguel de la Madrid. erning" party (sic) but also over the ted, the House was convened for an The meeting will take place on legislative branch of the federal gov­ extraordinary : series of sessions in May 22-24 in Mexico City, and ac­ ernment. The PRI majority in the March only tOlapprove the bill to open cording to information received by House and Senate of Mexican has no dollar accouIl/:s-even though some EIR . the PRI will criticize the current power to censurethe actions taken by PRI congresspten were against the economic policy which is based on the economic cabinet, which is under measure. paying the foreign debt at the cost of the Executive branch of the govern­ Such goiags-on have produced sacrificingthe n�tional economy, and ment. Moreover, these economic cab­ rumblings of discontent inside the PRI will propose as an alternative that inet officials are not and never have against the �forementioned cabinet Mexico dedicate only 25% of its ex­ been party officials. , members and the pro-International port revenues to foreign debt pay­ The extreme case of this process Monetary Fuqd stance of the govern­ ment. of dictatorship was manifested during ment. Privat�ly and in public, the The PRI leaders. led by the party a forum of consultation and analysis President of 'Mexico has been pre­ chairman, Adolfo Lugo Verduzco (a on the foreign debt convened by the sented with a teplacement of that eco­ man very close to Miguel de la Ma­ House of Deputies last November. The nomic policy �y another which WQuid drid), have constantly clashed with the first consultation sessions resulted in stimulate economic growth, and views of the economic cabinet mem­ an across-the-board rejection.. of the hence. a reph"cement of the officials bers, the "troika" headed by Treasury debt payment policy of the govern­ which have been carrying it out. Secretary Jesus Silva Herzog, Budget ment by civic groups, and organiza­ If the PRI comes up with an alter­ and Planning Secretary Carlos Salinas tions of industrialists, farmers, econ­ native policy �o the present one, we de Gortari, and Miguel Mancera, omists, and so forth. The consensus will probably :see the sun set on the ' presidctnt of Central Bank, who de­ was that Mexico should put a ceiling power of Jesus Silva Herzog and Car­ mand that the party leaders and gov­ on the debt payments, as is being· done los Salinas de Gortari . That, in turn, ernmentbow to the policy of financial by the government of Alan' Garcia in would eliminate them from the heated and economic shrinkage. Peru. contention fo( President of Mexico This has produced an enormous Only two hearings were held and when the next six-year term comes up discontent among the ranks of peas­ then they were abruptly suspended, for election, in 1988. ants, workers, and the middle class without explanation. According to If instead,'the PRI backs down as who are active inside the PRI. One what the organizers of the sessions had it has up to qow, then Mexico will electoral official of the party privately announced, the results were supposed enter a period of economic and social commented, "What are . we going to to be presented to President de la Ma­ chaos. And the PRI will have sealed tell our members if they have no mon- drid, who would decide what actions its own doom .•

54 International ElK May 16, 1986 Andean Report by Jaime Ramirez

Debt-for-equity urged in Venezuela only ask if the Dew proposal of Fede­ The president oJ Venezuela' s Chamber oJ Commerce pushes camaras president Rafael Marcial Kissinger's asset-grabbing "solution ." Garmendia was i inspired by the pres­ tigious advisers of Goldman Sachs & Co, since it is nearly identical to Kis­ singer's 1983 Vail, Colorado "rec­ ommendations. " As their premise for the proposed denationalization of the Venezuelan ' We shouldn't waste time in This last petition is neither new economy, these representatives of the seeing how the foreign debt was ac­ nor original to Fedecamaras. In fact, nation's business community demand quired, how it was invested, or how it it appears very similar to an earlier the restitution of "economic guaran­ was refinanced. It is a debt that we proposal by the so-called Roraima tees," that is, th,:: return of the law of have to pay, and we should do it on Group. It was also proposed by Henry the jungle of free-market economics, the basis of work." This statement, Kissinger at an infamous meeting in eliminating laws which regulate prices, made April 22 by Rafael Marcial Gar­ Vail, Colorado in August 1983. And wages, monopolies, and lay-offs . mendia, president of Venezuela's Fe­ since then it has been ceaselessly re­ About the $35 billion in Venezue­ decamaras (Federation of Chambers peated by men like Oscar Echevarria, lan flight capital over the past few of Commerce), raises anew the debt­ the Cuban-Venezuelan economic ad­ years, as denollnced by the recent for-equity scenario which, in the case viser to Fedecamaras, who has sug­ statement of the Wenezuela bishops on of Venezuela, means nothing less than gested that the country pay its debt by unemployment, the Fedecamaras selling off its oil resources to pay its handing over to its creditors property document has nothing to say. Instead, debt. from basic industry and nationalized the cause of upemployment is ex­ On March 21, Fedecamaras 'pre­ businesses. plained as "popljilation growth." This \ sented Venezuelan President Jaime What must be asked is, whether Malthusian argqment is truly absurd Lusinchi with a document containing the proposal issued by Fedecamaras' in a country lil�e Venezuela, whose proposalson how to deal with the joint president was formulated in consulta­ vast natural res urces are still largely � , crisis of the nation's pressing foreign tion with the organization's member­ unexplored and jwhose extensive ter­ debt and the fall in oil income. The ship, or whether it was a decision tak­ ritory remains �o be conquered. proposals included: en solely by the gang at the top, as The document indicts as another l) "Use the capacity of oil produc-, occurred in mid- 1984. cause of unemployment "the obsta­ tion ruthlessly"; that is, 'auction off At that time, some of the leaders cles, licenses, fteedoms, and unnec­ Venezuela's oil "without imposing of Fedecamaras circulated a proposal essary controls !bat tum Venezuelans limits on how much to export." urging that the New York investment into dispirited and unproductive citi­ 2) "Pay the debt at discount"; that house Goldman Sachs & Co. advise zens." is, repurchase the foreign debt at be- Venezuela's private debtors in their The implied, "solution" to unem­ , low face value, as some Venezuelan negotiations with international credi­ ployment being Offered here was more businessmen have been speculatively tors. The proposal was motivated with fully explained during a visit to Ven­ doing with the preferential dollars of­ the statement that Goldman Sachs & ezuela by the P¢ruvian expert on the fe red by the government. Co. "have at their disposal the talent "informal economy," Fernando de 3) "Open the doors to foreign in­ of such members of its advisory board Soto. It means legitimizing a vast pool vestment, eliminating the controls im­ as Henry Kissinger, Robert Mc­ of underemployed, while the interna­ posed by the Foreign Investment Su­ Namara, and Henry J. Fowler, with tional bankers take over the country's perintendency . " whom all the international business productive weal�h. Instead of highly 4) And the last and most impor­ ventures of the company can consult." skilled and well,paid jobs, the infor­ tant: "Capitalize the debt, proposing WQen it first appeared , the 1984 mal economy encourages the prolif­ that the creditor banks acquire stocks proposal was discovered to be unfa­ eration of street ,vendors, smugglers, in state property determined accessi­ miliar to approximately 99% of the chimney sweeps, and, of course, drug ble to foreign investment." members of Fedecamaras. One can traffickers.

EIR May 16, 1986 International 55 1 j 1 Report from New Delhi by Susan Maitra

. , Six AIDS cases turn up in Tamil Nadu samples were referred to the ICMR in A systematic surveillance effo rt has turned up thefirst indication Delhi, whidh in turn referred them to of the deadly virus in India. the U.S.National Institute of Health, where six of the cases were verifiedas positive for the AID S infection. The thitd aspect of the national strategy is liP educational drive aimed most at mobilizing medical personnel On April 29, Union Health Minis­ parts of the country. A separate cell and alerting the general public. ter Mohsina Kidwai told the Parlia­ was being established in the Director­ As Dr. �amalingaswami recently ment that nation-wide surveillance ate-General of Health Services to work pointed outl an important part of the studies initiated by the Indian Council in close coordination with the national, overall stra1!egy is the fact that ICMR of Medical Research (ICMR) had task force headquartered at ICMR. scientists h$ve made AID S a "thrust identified six women in the southern Detection of the six cases in Tamil area" for i\esearch.Indian medical state of Tamil Nadu who have been Nadu was the result of an aggressive professionais are collaborating with infected by the AID S virus. The wom­ program adopted 'by Indian medical their U . S.aPd European counterparts en, known for promiscuous hetero­ authorities in October 1985, when the to develop t�e most effective methods sexual behavior, tested positive for the ICMR set up a national task force on for testing ·and identification of the antibodies to the AID S virus, a sign the AID S threat, headed by ICMR di­ disease, as �ell as analysis and under­ that the virus has made an appearance. rector V. Ramalingaswami. standing of �s properties, etiology, and Mrs.Kidwai also announced that A three-level strategy devised at potentialantidote. India will soon be­ instructions had been issued to stop that time put a surveillance system into ginmanufadturing test kits, havewhich the import of blood and blood prod­ motion through the medical colleges so far been! imported, for use in the ucts without certification of freedom and medical professions to produce surveillancd centers. from AID S contamination. regular reportsfor the central task force Newspaper reports from Madras At the meeting of the National De­ on any condition which ,resembled indicate thai the surveillance team in velopment Council on the same day to AID S from differentparts of the coun­ the state will now be taking up a larg­ consider the government's new edu­ try. This system will be expanded now er-scale screening program there. If cation policy, Prime Minister Rajiv to include 25 centers. this is now !also done in centers such Ghandi drew the attention of the as­ The second level of the strategy as Bombay" �alcutta, and Delhi, doc­ sembled representatives of all the states involves establishment of a laboratory tors say, it is quite possible that more to the AID S threat, and exhorted them testing capability initially centered in cases will c�me to light.Also, accord­ to exercise extreme care and take all the National Institution of Virology ing to the satnereports, a special effort steps needed to apprehend and deal (NIV) in Pune and the Christian Med­ is now und�rway to trace· the possible with the 'problem immediately. ical College .at Vellore, and later ex­ sources wh�ch brought this infection As Minister Kidwai emphasized, tending to other institutions. into India. , I the situation in Tamil Nadu is under A serological survey for AID S an­ The Indian effort is being coordi- close surveillance. Whether the in­ tibodies was begun by early 1986 nated in the!'subcontinent with a simi­ fected women are actually carrying the among members of the "high-risk" lar national'task force set up in Ban­ virus or whether any or all of them will groups-homosexuals, drug users, gladesh by the Institute of Post-Grad­ actually succumb to the disease is not prostitutes, blood doners, hemophil­ uate Medical Research there, headed yet known. iacs, etc. This work, initiated in Mad­ by Prof. N:. Islam. The Indian task Mrs. Kidwai reported to the leg­ ras, led to the recent detection of the force keeps' itself abreast of develop­ islators that the' ICMR had already es­ six cases. ment in the rest bf Asia, in particular. tablished AID S surveillance centers in In Tamil Nadu, blood samples To date, the olJly cases identified in seven cities-Pune, Vellore, New were collected from 600 persons. Of the region 'were in Bangkok, Thai­ Delhi, Delhi, Srinagar, Madras, and the 126 samples subjected to intensive land, invoivlng five foreigners and two Calcutta-and that the number would examination at the Christian Medical Thais who had been in close contact ,be immediately increased to cover all Colleges, II tested positive. These with the foreigners.

56 International EIR May 16, 1986 by Omar a1 Mon�ser Middle -East Report · II

The new countdown has begun age a raid may provoke, but has seri­ Cornered, Qaddafi is reportedly increasing his daily intake of ous worries about its aftermath. After drugs, but has promised that his "prestige" will be avenged. the April 15 raid, it took three days for the Revolutionary Command to reas­ , sess its control over the army and quell local rebellions. IMoreover, the army refused to mobili�e during the air raid. According to !British intelligence T hebegiMing of May brought bad dispatching on April 30 two high-Iev­ sources, as earlYias April 9, fivedays news for Libya's Muammar Qaddafi . el ministers to convey its moral sup­ after the West B�rlin terrorist bomb­ On May 3, his month-long �fforts to port, Foreign Minister Ali Akhbar Ve­ ing that led to the U. S. raids, the Lib­ forcethe ArabLeague to denounce the layati and minister for the Pasdaran, yan leaders, togdther with KGB Gen . apart . After several Mohsen Rafigh-Dust. Mikhail Bakov, had made a contin­ United States, fell I J days of sessions among Arab foreign From Fez to Tokyq, a new cqunt- gency plan in ca$e of American retal­ ministers, a new consensus emerged: down has begun. Libya is expected to iation. Reportedly, the plan included No Arab country was willing to de- retaliate spectacularly against the security nieasur�s for East bloc per­ nounce the United States or to even United States and its allies. Already · sonnel, as well � the special 4eploy­ moot retaliations in Libya's defense. on May 6, Qaddafi called for a general ment of East �erman and Czech As a last-minute face-saving op- Jihad (holy war) against the West. troops, together with members of the eration, Qaddafi announced that if an WAile swallowing one diplomatic de­ Revolutionary ¢ommittees, at key Arab summit were convened in Fez feat after the other, the Libyans have infrastructure sites to prevent a ,coup. (Morocco), he could not attend for se- held meetings with their terrorist There was no c�up, but this deploy­ curity reasons; the summit would have friends, and they are expecting Syria ment proved unableto prevent a mili-. be held in Tripoli. This irked Libya's and Iran to pitch in. tary revolt. ! Moroccan partners , who signed an On April 27 , Col. Abu Bakr Yunis Abu Bakr Y'unis was reportedly "Arabo-Africim unity pact" with Lib- Jabr Ali, Libya's chief of staff; met the only Libyan 6f any standing to ex­ ya only last year. Then, on May 5, the with Abu Musa and Ahmed Jibril as ert influence on .n army getting more seven heads of government at the To- well as a few of their underlings, Abu and more restles� at the Revolutionary kyo summit voted a resolution against Khaled al Urnlah, Abu Majdi, and Fadl Committees' ins�nity. It proved not to international terrorism which singled Sharah Fines. Meanwhile, terrorist be enough. In l�e April, Qaddafi re­ out Libya. Qaddafi 's hopes that some �bu Nidal was announcing retalia­ called to Tripoli Col. Abdel l:Iafiz of the European countries would veto ,ftions against the U. S. governmentand Messaoud, the g�vernorof the Fezzan such a statement, were dashed. . Ii .�ome American figures ..The very fact region and milit�ry commander of the MuammarQaddafi has been ostra-;/ tthat Abu Bakr Yunis chaired the con­ Sebha military base. Messaoud was cized, and he knows it. ·His friends can ferences pointed up the Libyan mood. put in charge of ¢Organizing the army , be counted on .the fingers of one / Usually such gatherings are run by both to overcome the failures shown hand-Syria, Iran , and the U.S.S.R. Libya's number-two, Maj. Abdelsa­ during the Ametican raid, and to de­ The support giy�nSO-dle Libyan reso- lam Jalloud. By sending a lower rank­ fuse any threat of rebellion-meaning lutions - at the Fez conference by AI- ing member of the Revolutionary wide-scale execution of potential op- geria and South Yemen can hardly Command, Qaddaficonveyed his rage ponents. : comfort Libya. Algeria deliberately that the Palestinian radicals were not In charge of deploying the Libyan .did it to annoy Morocco, while South doing enough to "defend the Jamari­ army in Chad for several years, Mes­ Yemen's support meant little else than yaah. " saoud at least hl1s a· military record, that Moscow had told Aden to do so. Whatever form the new Libyan contrary to the other Libyan leaders. ! Even Libya's closest friends look terror takes, Tripoli has little doubt But Messaoud may himself have some like summer soldiers. Syria spoke loud that it will lead to more American re- second thought� about the task; his I and clear in support of Libya, but from prisals, and is trying to guess what predecessor, Col. Hassan Skhal; was Damascus; it didn't bother to send means will beused by the United States assassinated las� Novemb�r by Qad­ anyone from the foreign ministry to next time. Qaddafi cares little about dafi, who consi ered him a potential 4; ,Fez. Only Iran made the gesture of the human casualties or material dam- rival. • I

EIR May 16, 1986 International 57 International Intelligence"

rail guns and to other prematurelosses in the London AIDS conference Soviets threaten firepower of an ABM system ," he stated, hears of 'nightmare' SDI 'countermeasures' concluding: "The material , scientific, and technical potentialities of the U.S.S.R. are strong enough to parry any U . S. challenge, "New AIDS nightmare," headlined the May Soviet analyst Vasily Morozov said in an SOl included." Daily Ex ress, 7 London p repOrting on a May article from Novosti news service in early In tru�, one nuclear-powered xcray las­ 6 conference on AIDS there at which British May that Soviet "responses" to President er system ¢ould knock out the entire Soviet government expert Dr. Philip Mortimer Reagan's Strategic Defense Initiative (SOl) ICBM fleefin a matter of minutes. warned that AIDS would be killing 5,000 . could include decoy weapons, submarine­ people a year in Britain by the year 1990, launched ballistic missiles, and cruise mis­ and that this death toll will be as high as siles . Morozov said that if the SOl went s(¥!ks tribunal casualties from traffic accidents. ahead, the Soviet Union would not be bound AJe Should present trends continue unabat­ by the 1972 ABM treaty or the SALT-II in Wa 14h eim case ed, or worsen, Dr. Mortimer warned, Brit­ accord limiting numbers of ICBMs. ain itself could be depopulated by the next MOfozov said: "In this case, the The Ameri¢an Jewish Committee on May 6 century. U.S.S.R. will have broader opportunities to called for �stabli�hment of an international While he and other doctors .warned of use its ICBMs in massive retaliation, mak­ tribunal to :examine Kurt Waldheim's role worldwide and .national-British calamities ing it more difficult for an American space­ as a German officer during World War II. Waldheim 'is accused by the AJC of war from AIDS spread, from the publized ac­ based ABM system to detect and. intercept counts, none went beyond recommenda­ them." crimes on behalf of the Nazis. tions that homosexual activity be limited, The Soviets have never paid any atten­ A Committee statement said that the tri­ that people abstain from promiscuous sex, tion to either treaty, are already engaged in bunal wo�ld �'pursue justice·, not ven­ aDl� that drug addicts use clean intravenous .massive new missile deployments , and are geance, and it could wen provide an impor­ needles. ahead of the United States in SOl-type re­ tant vehiclq for uncovering the full truth of search and development. this sad chapter." He stated: "Deployment of relatively Waldh�m, former U.N. s,cretary gen­ riot in So. Korea cheap 'decoys' equipped with a simplified eral, fell short of winning an absolute ma­ 3,000 control system and witho\lt warheads is a jority in A�stria's presidential elections re­ after student's death simple and effectivecountermeasure":'-'-but cently, gaiding 49.6% of the vote. SDI systems now under development will The AJC, headed by Edgar Bronfman, About 3,000 students clashed with riot po­ be able to detect these, and some systems, called on ACistrian voters to "carefully weigh lice-in Seoul, South Korea during memorial which effect a "mass kill," will not even the damagiag historic and international im­ services for a student who died after setting have to. plications oftheir votes . " himself afire in an anti-government demon­ He also said that many other options were stration. Calling Kim Se-jin, 21, who died open, including building up the potential of May 3, "a martyr for democracy," the &tu­ weapons which current defensive systems Shultz.� to curtail dents staged a series of demonstrations on are not J:apableof intercepting. "Such offen­ U.S. camp",s. sive weapons include submarine ballistic aid to Philippines Police said that one policeman was killed missiles launched on flattra je<;tories ...as and three others were injured when an anti­ well as cruise mislliles of different basing U.S, Secretary of State George Shultz said riot vehicle burst into flames after being hit modes. Not one of the space weapons now Washingto, would not give more than $500 by gasoline bombs during the student dem­ being 'developed in the U.S. can reliably million to C;:orazon Aquino's government in onstration at the state-run Seoul University detect and intercept low-flying small cruise the Philipp.nes this year. He blamed the campus. missiles," he said. "For this reason, a mas­ Gramni-Rutlman bill and budget restraints At least 500gasoline bombs were used sive deployment of such relatively cheap for ttie inability of the United States to pro­ by the protesters during the clash. No stu­ missiles may be very effective against SOl." vide more aid, calling cuts in planned aid dent casualties were reported, Morozov said the Soviets could also seek "much too ;deep and not in the interest of South Korean opposition leaders , with to wear out a space-based defense system by national security." the clear help of the U . S. State Department, launching ICBMs that would force it into Yet, h� supported the International have proclaimed it . their goal to make the early action. "This will also lead to the dis­ Monetary �und (IMF), which has put mas­ country into "another Philippines. " �harge of x-ray lasers and electromagnetic sive pressure on the Filipino economy, say-

58 International EIR May 16, 1986 Bniefly

• U.S. SP.\CE setbacks have thrown into disarray Indian plans to expand badly-needed telephone and television facilities, sources have told EIR . The Delta rocket mishap, the failure of a Titan rocket, and the ing: "The big thing is what people do them­ "Especially important is the treatment Shuttle tragedy mean a delay of at selves. We support your efforts to resolve the book gives to certain gnostic networks least two year$ in launching India's outstanding financial problems and to en­ coordinated from Bulgaria and represented next :satellite, tbe Insat I-C. It was ,hance economic development." This appar­ in Colombia by the Universal Christian planned for launch in September 1986 ently meant, capitulate to IMF conditional­ Gnostic Church. Members of that so-called by a U.S. Deltarocket. Also India's ities and destroy your economy . He urged 'church"-aniong them Oscar Jimenez, the second astronaut was scheduled to the Philippines to open up to "private in­ lawyer Arturo Cortes Cadena and Jose Vi­ travel on a C/ulilenger mission in vestment." cente Marquez, the gnostic church's 'bish­ September. West German Foreign Minister Hans­ ep"-"were implicated in the abduction of Dietrich Genscher, who met with Philip­ which I was the victim on July 26, 1984� ... • PANAMA: has asked the U.N. pines leader Corazon Aquino in Manila May "On that occasion . . . I was subjected Economic and Social Commission to 7, advertised promises of economic and fi­ to psychological procedures indistinguish­ pay more "attention to {he situation nancial aid to the Philippines regime. Aqui­ able from brainwashing. The gnostics' ob­ of transit countries on the operations no told Genscher she welcomed this support jective to break my loyalty to the anti-drug routes for dru$ shipments," not just becausethe Bonn governmenthad "showed cause failed, thanks to the world-wide mo­ the situation of drug-producingcoun­ the flag against Marcos" when her rebel bilization of the Anti-Drug Coalitions to ob­ tries . On May 8, Panamanian gov­ forces; at tile direction of the U.S. State tain my freedom. I recuperated from these ernmentofficial LeondardoKam told Department, ousted the elected President in abuses in the hospital of the Univerity of the U.N. authorities: "In the struggle February. Genscher's ministry was among Valle, in Cali, Colombia. against the organized crime of illicit the first to recognize Aquino as the new "Crimes such as these, and many others drug traffic, P�ama has dismantled President, even before Marcos had re­ committed by the narcotics mafias and their clandestine laboratories, has taken signed. peons of all sorts, are given in the new edi­ energetic actions against banking en­ tion of Dope In c. the kind of treatment so tities used fori 'laundering' money, that in a not so distant future, these enemies has confiscate� shipments of ethyl­ ene .ether, and :has captured and bro­ Colombian drug-fighter of the human race will receive .their due pun- ishment." ken up national and foreigQ.gan gs. " welcomes new Dope, Inc. ITALIANi POLICE Patricia Londono, a leader of the National Mexico, Uruguay make • raided sev­ Anti-Drug Coalition of Colombia, was kid­ eral Libyan Cf'rganizations in early napped in 1984 by thugs linked to the drug joint statement on debt May, and ord�red more than 20 Lib­ mafias,.following several months of harass­ yans found to be in Rome illegally to ment and threats . She issued the following The Presidents of Mexico and Uruguay is­ leave the counby, police sources said statement on May 6: sued a joint communique at the end of Uru- , May 8. Officers from from the aliens "I am very happy to leam that a second guayan President Julio Sanguinetti's official office and intelligence F>r8Qch raided English edition of the book Dope, Inc. has visit to Mexico in early May. The statement an organization called " Appealfor Is­ just come off the press. This book reveals signed by Sanguinetti and Mexico's Miguel lam" that helped illegal North Afri­ who organized and directed the infamous de la Madrid expressed theii "great concern" can immigrants and was believed to narcotics business from its origins until to� that no progress had been made toward a be financed by Libya. The police day, how this international emporium works, solution to the problem of lbero-American raided a radioistation in another area and what are its political and strategic di­ nations' foreign debt. of Rome believed to be financed by mensions ..... They warn that the policies of "adjust­ Libya. She stated that she was particularly ment"-brutal austerity-proposed by in­ pleased that the book had been published on ternational financial institutions are 'iinade­ • NARCO-tERRORISTS in the second anniversary of the death of Rod­ quate," limiting lbero-America's growth Peru, presumed to be Sendero Lu­ rigo Lara Bonilla, who, as Colombia's Jus­ capacity and creating seriOIJS political and minoso guerrillas, killed a rear-ad­ tice Minister, who was murdered by the drug economic risks . miral of the Peruvian navy, Carlos mafia. She relates how he told her and her The statement proposes adjusting debt Ponce Canes�, in a grenade attack friends, "I've known what it is like to be service to the real capacity of the developing on May 5. He. is the highest-ranking �eatened, therefore I give my complete nations to pay, maintaining an adequate military offici$!to have died since the . solidarity to you and I offer you my com­ growth rate, effective financing mecha­ beginningof g�errilla warfare in Peru. plete willingness to cooperate and help." nisms, and a reduction in interest rates.

EIR May 16, 1986 International 59 Tax refonn: Merrill Lynch rides Buffalo Bill

by David Goldman

Sen. Robert Packwood (R-Oreg.) has emerged as the unfor­ erated-depreciation advantages of real-estate investments un- . . : tunate frontman for a conspiracy to crash American real­ der the 1981 tax code. estate and securities values, and permit overseas hot money The result is a massive overbuilding, leading to a 25% to buy up �e pieces at pennies on the dollar. The Senate nation-wide vacancy rate for commercial real estate, a 15% Finance Committee's new tax legislation, unanimously passed reductionin commercial construction levels between March out of committee on May 7, proposes to shift$100 billi on in . 1985 and March 1986, and a loan-delinquency rate in co�­ personal taxes onto business taxes, over the next five years. mercial real.estate in the rang¢ of 20%, by EIR's own calcu- . The maximum tax rate would be reduced from 50% to 27%, I atlons. I' and the government would pay for this by throwing out the Particularly in states hit h�d by collapsing oil prices, the Investment Tax Credit, accelerated depreciation for real-es­ real-estate disaster already thrtatens to bring down the finan­ tate investment, and a host of other deductions. cial system, starting with savings and loanassociations. What That fitsnicely into the Presis:Jent's own ideological bias, the Senateprop oses, and whafwill undoubtedly emerge from as promoted by the "supply-side" presidential candidate, Rep. conference discussions· with the House of Representatives, Jack Kemp (R-N.Y.). Sources close to Kemp acknowledge will make the crash uncontrqllable, by eliminating the tax a good working understanding between Kemp and White breaks that made real-estate speculation attractive in the first House Chief of Staff Donald Regan, former chairman of place. Merrill Lynch securities. The former chief of the thundering The stock-market bu�ble ,runs on the same principles. herd and the former Buffalo Bills quarterback have manipu­ During the past five quarters; U.S. corporations borrowed lated the President into backing an utterly monstrous exercise roughly $120 billion on the bondmarke t, and used almost all in economic sabotage. of it to buy up their own stock, through mergers, acquisitions, Jack Kemp's job is to exude the aura of popular support takeovers, and leveraged buyouts. In other words, corpora­ for "supply-side" tax cuts, and feed the President's own ide­ tions were told by their accountants to issue as much de/;lt as ological weaknesses; Regan's role is to appear as the Presi­ possible, since the interest payments could be written offas dent's biggest sycophant, and force the required policies a business expense; and to use the debt to purchase securities, through the Senate. But the beneficiaries of the tax reform since dividends and capital gains are taxed at a much lower will not be taxpayers, too many of whom will be unemployed rate than straight income. to enjoy lower tax rates, The $100bill ion reduction in the amount of corporate The tax bill will pull the plug on the American banking equity outstanding is the so'rce of the last year's .stock­ system, for reasons which ought to be obvious. The near­ market boom. In contrast, virtually none of the funds bor­ doubling of U.S. indebtedness to the $8.5 trillion level be­ rowed by the corporate secto� got to within hailing distance tween 1980 and the present is largely a function of the 198 1 of a machine tool . The "recovery" took place strictly in the tax code, which told business and individuals t9 borrow as securities markets, while the dconomy's industrial base con- I much as they could, and speculate in real estate and financial tinued to decline. markets. Investors lined up for real-estate deals based on $20 The closing-down of business tax deductions does not in equity for $IOOin debt, "leveraging" the generous accel- have the same immediate, devastating impact that the elimi-

60 National EIR May 16, 1986 nation of accelerated depreciation for real estate implies. ing overseas hot money both a currency and a price advantage . Nonetheless, it signals a narrowing of corporations' field in in buying up bankrupted U.S. assets. which to use tax gimmicks, and the end of the corporate sector's grand plunge into stock speculation.

Real estate and the banking system Savings and loan institutions reported last September that about $32 billion of their $648 billion of mortgage loans is in trouble. Almost all of this is concentrated in commercial real­ estate lending, into which the S&Ls were forced by Paul Volcker's banking deregulation of the early 1980s. The S&Ls took a plunge into high-risk lending, often obtaining 2% or more off the top of the loan as a fee, and used such one-shot income to stave off disaster during 1983, 1984, and 1985. Now the same high-risk loans are failing to earn income, and the crisis has arrived with a vengeance. We obtain a delin­ quency rate on commercial and multi-family residential mortgages of 19%, as of September 1985. How much bank debt is at risk? The value of commercial real e�tate may be calculated as follows: Approximately 1.5 billion square feet of prime office buildings exist in the 24 top market areas surveyed by the Office Network. At $22 per square foot average rent, their income-production capacity is $33 billion annually. According to a Price Waterhouse for­ mula of $.855 in rent for every $10 of property, we can NSIPS/SluartLewis estimate a market value in the major market areas of about Voleker speaking at the Societyfo r International Development. $386 billion. That corresponds roughly to the existing num­ bers for outstanding commercial mortgages. Vo lcker won't deny A bad-loan rate of 15% to 20% translates into a $57 tei he'd legalize dope $77 billion loss for the banking system. However, the current vacancy rate of 25% suggests that the loss will escalate , to Federal Reserve chairman Paul Volcker refused to deny $96 billion. that he supported the legalization of drugs i·n develop­ The bad news is that nearly $100 billion of bad real-estate ing-sector countries before a shocked audience at the debt was on bankers' books by the end of last year. Even annual meeting of the Society for International Devel­ worse news is that the Packwood tax plan will devalue most opment in Washington, D.C. on May 8. After deliv­ commercial real estate by about 40%. That translates into an ering a half-hour diatribe against the evils of "nation­ additional loss of at least $154 billion. The present losses alism" in the name of "painful adjustment, competition plus future loan losses we can anticipate-as a matter of pure and free markets," VoIcker was questioned by EIR's · arithmetic-are more than $250 billion, divided about equal­ correspondent "The 1986 report of the Inter-American ly between savings institutions and commercial banks. This Dialogue, headed by Sol Linowitz , and including the is sufficientto wipe out the entire banking system. likes of McGeorge Bundy, Robert McNamara, and According to a Price Waterhouse study published in July Cyrus Vance, in supporting the Baker Plan, has called 1985, when tax reform was still a leer in Don Regan's eye, for the selective legalization of drugs in certain devel­ eliminating accelerated depreciation tax-benefitswould wipe oping-sector countries. Do you support that ·policy?" out 40% of the value of an 80%-debt-based real-estate trans­ Volcker threw his arms up. 'That's way out of my action, the most typical case for commercial deals. league. I don't want to get into that," VoIcker stum­ That is what the tax disaster will set in motion. Who bled. "But do you denounce the policy or not?" our stands to benefit? Donald Regan's Merrill Lynch became a reporter insisted. "I would have to do an awful lot of leading conduit for international dirtymoney seeking havens thinking about it," VoIcker, clearly embarrassed, said. in the United States, as EIR reported in our April 25 cover "Then that means you would consider it," our reporter story . $500 billion in global narcotics traffic is already about retorted. "I just don't want to get into that. Next ques­ two-fifths of world trade . Under cnish conditions, it can buy tion," VoIcker stammered. A majority of the audience what it wants. Regan and his old Merrill Lynch associate of over 300 were representatives of Third World coun­ tries. Cable Network News filmed the exchange. David C. Mulford, now the treasury 's assistant secretary for international affairs , are also talking down the dollar-giv-

EIR May 16, 1986 National 61 estimate depended upon tbe shifting of certain Shuttle loads to expendable-launch vehicles. After the Titan accident, it was announced that the Titan Delta explosion: is expected to be grounded fo r from 6 to 12 months. The earliest date being given for !another Shuttle flight is July another accident? 1987. At the time of the Titan crash, the Air Force was not characterizing the situation a$ a crisis. But, with the Delta accident, the situation has clearly developed into one of na­ by CarolWhite tional emergency. There are plans in the works for upgrading the nation's The explosion of a Delta rocket, on May 3, was the fourth in space program. The Air Force,plans to procure 13 additional the series of highly improbable disasters which have occurred Tital 34D-7 boosters. The fieldlal1nch capability of Vanden­ to U.S. launches into space this year. berg Air Force Base in California is to be expanded. And Of the 177 Deltas launched before the May 3 failure, the NASA is requesting a replaaement Shuttle orbiter, which previous 43 in a row were successful. The program in all had could be ready as early as 1989. only II previous failures, which meant that the program had According to estimates made before the latest accident a proven reliability, with a 95% launch success rate. Indeed, by Air Force spokesman Maj. Gen. Donald J. Kutyna, who the odds against the sequence of four explosions are calcu­ directs the USAF Space Systems, and Command, Control lated at greater than 10,000:1. and Communications, the defl:lnseprogram could be back on Under the circumstances, the hypothesis that sabotage li�e no earlier than 1995. Now, the situation has changed for has played a part in these accidents is now being investigated. the worse. Even so, without firm evidence about how the rockets were Whether or not there was jClirect sabotage to some or all destroyed, whether by accident or plan, NASA is considering of the four rockets, the space! program itself has been con­ postponing the next NASA launch of anAtlas Centaur rocket, sistently sabotaged by the cost-cutting policies which have planned to occur on May 22. been imposed upon NASA. Were the program operating as The April 18 failure of a Titan 3D rocket was reportedly it should, the likelihood of four such accidents would be caused by an explosion of one of its two solid fuel booster discounted. But, of course, under present circumstances, rockets. The first Titan accident, last August, was presum­ with the attrition of trained personnel (not least the forced ably caused by a turbo-pump failure. NASA reports that the resignation of former NASA head James Beggs), it is possi­ Delta failure may have been triggered by an electrical short­ ble that the accidents reflectthe destruction of U. S. capabil­ circuit. The rocket's first-stage engine shut offtwo and one­ ities to mount an effective space program. More to the point, half minutes early, throwing the rocket out of control. It was the budget constraints mean that there is no redundancy. By then exploded by NASA. making cost-reduction a priority, we have eliminated the According to William Russelr, Delta project manager at redundancies and backup systems which would have allowed NASA's Goddard Space Flight Center, data beamed.down us flexibility, even in the face of deliberate sabotage. from the speeding rocket indicated a sharp drop of voltage Under present circumstances, it is overdue that acting from the engine's battery, which took place 71 seconds after head of NASA, William Grabam, is finally to be replaced. launch. Just before the shutdown, another spike 6f about the James Fletcher has been approved by the Senate to resume same amplitude was observed, which occurred for about 14 the position which he held in NASA during the '70s. What is or 15 milliseconds. Russell told reporters that sabotage has outrageous is the role of the New York Times, and the media not been ruled out. .w hich followed their lead, in lying that Fletcher mismanaged On May 4, White House Chief of Staff Donald Regan NASA's funds by deliberately under-representing costs. This told the press the possibility of sabotage is being officially is part of a more general campaign to demoralize the Ameri­ considered, and, according to one NASA source, described can popUlation about the nation's future in space. Some TV the failure as "if someone had thrown a switch." commentators have even gone so far as to denounce NASA NASA disclaims any evidence of radio interference with as a mere public relatio.ns sham since the days of the Apollo the Delta. Any inadvertent activation ofthe Titan range safety program. , system on the failed booster has also been ruled out. What is needed now is fiI1nleadership to put the NASA The nation's space program is now seriously threatened. program back on track. This ¢an only be accomplished if it Only three Deltas are left in NASA's inventory, along with is understood that the presently reduced NASA inventory is three Atlas Centaurs. Even before this latest accident, Avia· a national emergency. Whether or not the recent spate of tion Week was warningthat , without a crash program to build accidents are the result of Soviet sabotage, any attempt to a fourthSpace Shuttle orbiter, at least 45 Defense Department spread demoralization about the space program is sabotage Shuttle loads would be backed up for launch by 1992. This of the nation's defense effort.

62 National EIR May 16, 1986 tween Eastern and Western coverage of such issues as the Strategic Defense Initiative. Obviously, since the Soviets aren't going to adopt a pro-Westernposition on these issues, what Alerdinck is really working for is to have the Western NBC: fri end of media become even more of an outlet for Soviet propaganda . . This became apparent at a conferency which Alerdinck Moscow, terrorists held in New York May 2. Co-sponsored by the New York University Center for War, Peace, and the News Media­ whose board of directors includes such anti-SDI luminaries by Kathleen Klenetsky as McGeorge Bundy, Hans Bethe, an� Kostas Tsipis-the meeting brought together NBC's Larry Grossman, David Jf an award for "Treason in Journalism" exists, the National Shipler of the New York Times. Leol)id Kravchenko, first BroadcastingCorporation more than earned it May 5, when deputy chairman of the Soviet State Committee for Televi­ the "NBC Nightly News" broadcast an interview with Abul sion and Radio, and Vladimir Lomelko, the chief Soviet Abbas , in which the international terrorist vowed to bring Foreign Ministry spokesman, among others, to discuss how terroristviolence to American soil. to end Western press"distortions" of SQviet society, the most In the course of the interview, Abbas told NBC Corre­ appropriate ways for journalistsEast a1)d. West to cover arms spondent HenryChamp that President Reagan"has now placed control, and so forth . himself as enemy No. I," and,threatened: "We ...have to Not one representative from the U�S. side criticized the respond against America in America itself." Sovietdelegates, when they launched into venomous attacks Worse than NBC's decision to provide Abbas-who is against the sm, or when they insisted, as Lome1ko did at the wanted by the. United States and other Western nations for press conference, that the real "disaster' is not the Chernobyl mastermindingthe Achille Laurohi jacking-with a national accident, but continued U.S. underground nuclear testing! forum to air his threats, was the agreement the network made Instead, the Americans leveled one criticism after ariother at not to reveal his whereabouts. their own country. For example, the. Times' Shipler, claiming This drew an immediate condemnation from the Reagan that "Soviet society has changed im�ensely since Stalin's administration�and even from some media. Robert Oakley, time," blasted American textbooks for failing to portray the head of the State Department's counterterror unit, called the supposedly positive changes that have taken place. interview "reprehensible" and added: "When news organi­ NBC's Grossman not only particip�ted in one of the con­ \ zations make arrangements to keep secret the whereabouts of ference's major panels, but also appe�ed at a press confer­ a terrorist suspect in exchange for an interview, they are ence, where he came to the defense of the Soviet handling of saying: 'We've become his accomplice in order to give him the Chernobyl disaster. This was not unusual, according to

pUblicity. ' " Alerdinck's executive director Gerd luge. Ruge said that But NBC's executives were unfazed. Lawrence Gross­ NBC "has been involved with the Alerdinck process from the man, president of NBC News, said he was "dismayed" by beginning." Although Alerdinck works with the other major the criticism, while his deputy, Timothy Russert, a former U.S. networks, "NBC has by far bee� the most involved," top aide to Sen. Daniel Patrick Moynihan (D-N. Y.), accused Ruge said. NBC "would like to do some major things with media critics of "competitive envy." the Soviet Union. NBC is looking fOf more direct contact NBC's decision to protect Abbas is in keeping with the with the Soviet Union." network's standard practice. Of the three major American Ruge said the two individuals at �BC most involved in broadcasting networks, NBC has been the most brazen in its the Moscow back-channel are Grossman and his deputy, contempt for U.S. national security. It has also been the John Angotti. Grossman is one of four members of the U.S. network with the closest ties to the Soviet Union. As EIR board of the Alerdinck Foundation. Angotti belongs to AI­ documented in its Oct. 16, 1984 issue, NBC reached an erdinck's East/West Media Board, a�istinction he shares agreement with Moscow several years ago, to work with the with G. Yuskevitchus, vice-president qf Soviet TV. Soviet Union to "change the perceptions of the American Although the Soviet delegates lied: about the Chernobyl population about the Soviet Union," as one of the parties incident, claiming that Moscow had fulfilledits international involved in the negotiations put it. responsibilities, and accusing the We�t of fomenting "anti­ One channel being used to that end is the Alerdinck Foun­ Soviet hysteria" and "disinformationl" their behavior did dation, a Netherlands-based entity with close ties to the So­ nothing to dissuade Alerdinck's WesterJ!l sponsors from going viet hierarchy, which has sponsored several conferences on ahead with plans for further "dialogues," Ruge privately dis­ East-West media relations, one of which took place in Mos­ closed that Alerdinck has scheduled a conference to work out cow last year. Established by Dutch moneybags Frans Lur­ television co-production schemes, where NBC is expected to vink, Alerdinck's stated aim is to promote convergence be- be heavily represented.

EIR May 16, 1986 National 63 • In Atlanta, DNC Chairman Kirk was elated with what he called "the peaceful and upbeat nature" of the Democratic Policy Commission meeting. There was "scarcely a ripple of dissent" in the gathering-�ust the way Kirk says he likes things, even if less than h�lf the elected members of the Democrats scurry in Policy Commission bothered to show up. The meeting was supposed to begin drawing up a detailed policy agenda for all 'directions' Democratic candidates for national office. Task force leaders presented the commission with draft reports that generated "little discussion or feedbaciq,"according to reports. by Nicholas F. Benton Kirk hailed the lack of "special interests" at the meeting, implying that the party would no longer be "pressured" by The fractured Democratic Party scurried off into four or five the demands of its constituency base, and he seemed partic­ different directions in early May, depending on whether you ularly pleased that he was introduced to speak by Georgia count walking out of the party altogether, as' former Illinois Gov. Joe Frank Harris, a con$ervative Democrat who in 1984 Sen. Adlai Stevenson did. snubbed the Mondale-Ferrarb ticket. The other four directions included: 1) a trade union-based Although their task was itb draw up a policy document, "New Directions" amalgam of McGovern-eraholdovers pro­ the Policy Commission's chairman, former Utah Gov. Scott testing the right-leaning trends in the party which gathered in Matheson, said the group was determined, in the name of Washington D.C. on May 3-4; 2) the "Democratic Policy unity, "not to get involved in! current issues on the legislative Commission," which met in Atlanta the same weekend under agenda in Washington," sucH as the Gramm-Rudman budget, the leadership of Democratic National Committee chairman or the radical Packwood tax reform . "It is not our business," Paul Kirk for another contentless display of party "unity"; 3) Matheson said. the "Coalition for a New Democratic Majority," which gave • Virginia's Governor R;obb told the right-leaning Coa­ its Henry M. Jackson Friend of Freedom A ward to former lition for a Democratic Majority that the Democratic Party Virginia Gov. Charles Robb May 6, and 4) the "Populist "must adopt a strong and assertive foreign policy" as he Forum," which convened in Washington on May 9, a group­ received that group's ScoopiJackson award. Robb, married ing of radical libertarian elements. into the Lyndon Johnson family and reportedly backed by the • In Washington, 10 trade unions spent $50,000 to gather Washington Post's Katharine Graham as a presidential hope­ about 1 ,000 liberal Democrats to protest what they feel is a fu l, said that the party "has to abandon the neo-isolationism "shift to the right" in the party. Bringing together the unions that has dominated the party kince the McGovernnomination with old feminist, homosexual, anti-nuclear, environmental­ in 1972." Ben Wattenberg, :chairman of the Coalition, and ist and related "special interest" groups that arose under the head ofthe American Enterpnse Institute, praised Robb who, 1972 McGovernparty reforms, the "New Directions" group he said, with Sen. Sam Nunn (D-Ga.) and Rep. Les Aspin heard from Jesse Jackson and Michael Harrington, co-chair­ (D-Wisc.), are "three major figures who are sounding the man of the Democratic Socialists for America. Jackson com­ most like" the late Scoop Jackson on foreign policy. Despite plained that "the Democratic Party is producing schizophren­ this pro-defense posturing, Nunn and Aspin are calling for ic leaders who want to look like John Kennedy with hair decoupling the U. S. from W �stern Europe and slashing fund­ flowingto the leftand ac;tlike Ronald Reagan with behavior ing for the SDI in Congress.' flowingto the right." • The "New Populist F0rum" in Washington, D.C. on Anne Lewis, national director of Americans for Demo­ May 9 drew from both parties, rang;ing from Texas Agricul­ cratic Action, a vintage ultra-liberal organization, warned tural Commissioner Jim Hightower on one side, to right-wing against what she saw as the party's growing neglect of mi­ zealot Rep. Newt Gingrich (R-Ga.) on the other. Hightower norities, feminists, and organized labor by saying, "History is the founder of the operation,'which is based on simplistic tell us that no political party moves forward by penalizing its "little guy versus the big interests" rhetoric. A particularly most consistent supporters." "One Republican Party is more noxious figureto anyone wh6 recalls how he metamorphosed than enough," asserted Harrington. "We are all profoundly from a mousy Ralph Nader ·'raider" into a Will Rogers cari­ disturbed by the rightward drift of the Democratic Party." cature, complete with cowboy hat, boots, and a twang, High- The United Auto Workers, the International Association , tower has become a driving force for a bi-partisan reactionary of Machinists and Communication Workers Union were the movement that has former Heritage Foundation operative key among the 10 unions that pitched in to sponsor the event, Paul Weyrich tinkering behind it. It encompasses the "sun­ which drew fewer than 1,000 at the same time that evangelist belt realist Democrats" like Colorado's Sen. Gary Hart and Billy Graham was drawing over 20,000 to a differentarea of Gov. Richard Lamm, and, on. the Republican side , TV evan- the same convention center. gelist Pat Robertson.

64 National EIR May 16, 1986 Judiciruy present Court is badly divided on ques.ions of libel law and there is a growing coalition among the .fustices to overturnor substantially modify the precedent set inNew York Times v. Sullivan. The Hepps case produced a dissenting opinion signed by four Justices which characterized the majority view as a "blueprint for character assassination. " The dissent, authored by Associate Justice John Paul Stevens, notes the extraordi­ nary burden which Mr. Hepps, a private figureplaintif f, must Media gets license carry when the media defendant shields his sources. The crux of the newspaper's allegations against Hepps were based on to lie-for now a supposed relationship between Hepps, his corporation, and . a third party. Stevens wrote , "[ t ]he truth or falsity of that statement depends on the character and conduct of that third by Sanford Roberts party-amatter which the jury may well have resolved against the plaintiffs on the ground that they c�uld not disprove the Last month's Supreme Court decision in the case of Phila­ allegation on which they bore the burdt$ of proof." delphia Newspapers v. Hepps provoked a justifiably outraged The dissent emphatically asserts thatprivate figure plain­ reaction from many persons who believe that the courts have tiffs should not have to prove falsity tei recover damages in become too deferential to the rights and privileges of this defamation cases. In a rnore subtle �y, the opinion also nation's news media. In the Hepps case, the Court ruled that contends that public figureplaintiffs shduld not have to prove private figures in defamation suits must shoulder the burden falsity either. In a footnote tucked away near the end of the of proving the falsity of allegations made against them. This opinion, Stevens claims, "{i]f the issue were properly before burden of proof has been shouldered by public figures, i.e., us, I would be inclined to the view that public figures should public officialsor persons who have otherwise attained prom­ not bear the burden of disproving the v�racity of accusations inence in public affairs , since the 1964 landmark Supreme made against them with 'actual malice' as the New York Court ruling in New York Times v. Sullivan. Times Court used that term." The importance of the burden of proof in defamation If the Hepps dissenters want an opportunity to overturn cases can be seep in the factual circumstances of the Hepps or modify the New York Times doctri�e, they have an im­ case itself. In Hepps, the principal stockholder of a chain of mediate chance before them. Attorneys forDemocratic pres­ stores and t,he corporation itself sued the Philadelphia In­ idential candidate, Lyndon H. LaRouche, Jr. , are preparing quirer for alleging connections between Mr. Hepps, his cor­ a petition to the Supreme Court to review Mr. LaRouche's Poration, and certain figures allegedly tied toorganized crime. libel suit against the National Broadcasting Company. In the The chief sources of these allegations were federal agents early part of 1984, NBC broadcast two �efamatory programs whom the Inquirer refused to identify under the Pennsylvania accusing Mr. LaRouche of plotting to assassinate President shielO law, a law which allows journalists to "shield" their Carter and other criminal acts . NBC principally relied upon sources from public disclosure and makes a libel plaintiff's sources which it refused to disclose during the course of the ability to prove falsity an exercise in futility. trial. : Under the common law , once a plaintiff demonstrated The trial court judge, James Cacheris, refused LaRouche that a statement was legally defamatory, the burden of proof motions to disclose the sources or precllflethis evidence from shifted to the defendant to prove the truth of his or her allt'!­ being presented. Based upon the taintep and prejudicial evi-. gations. This common-law principle governedthe American dence submitted, the jury ruled that none of the allegations law of libel until the New York Times v. Sullivan decision just were proven false by convincing clarity. This verdict was two decades ago. In that case, the Court decided that libel rendered despite the fact that NBC had not offered one piece suits were encroaching on protected First Amendment inter­ of competent evidence to support theit:truth defense. They ests and shifted the burden to the plaintiff to prove falsity. didn't have to, since under New York Times. the entire burden Further, the New York Times Court ruled the plaintiffmust was on the plaintiff. also prove something called "actual malice," that is the jour" The Hepps dissenters may findsupport for a case involv­ nalist knew the contested allegation was false or acted with ing confidential sources from the majprity side. Associate reckless disregard for the truth , a standard of proof which Justice Sandra Day O'Connor's majority opinion specifically virtually wiped out successful public-figure libel suits. held that the issue of confidential sou�ces, the heart of the While the moral outrage provoked by the Hepps case is LaRouche appeal , was not appropriate�y before the Court in understandable and appropriate , it is 'also short -sighted. The Hepps and is left open for another day. �f the Supreme Court Hepps ruling, when viewed in tandem with other recent Su­ accepts the LaRouche petition , the case will be orally argued preme Court decisions in the libel area, demonstrates that the next autumn.

EIR May 16, 1986 National 65 Eye on Washington · by Nicholas F. Benton

package" to the P.R.C., which, while . He confessed that he "didn't get ev­ it would not significantly enhance the erything l1e wanted" out of the discus­ P. R. C. 's military balance with the So­ sion, but went along with it. viet Union, would represent a tip in their favor in the narrowFormosa Strait Kickirig our friends that separatesTaiwan from the Chinese mainland by less than 100miles . in the teeth This pending $500 million arms The relevant question was put to So­ sale would enhance China's F-8, a larz by Rep. DOn Burton (R-Ind.), Taiwan braces for the twin-engined, delta-wing, high-alti- "Why, since the so-called human­ Solarz treatment tude interceptor, and would include rights violations in Taiwan are not airborne radar,navigation equipment, nearly as! egregious as those in the Another U . S. economic and strategic a heads-up display, mission comput­ P.R.C., shouldn't it be more of a ally in the Asian theater has been tar- er, air-data computer and data bus, priority to pass a resolution condemn­ geted by Rep. Stephen Solarz (D- and would give the P.R.C. the capa­ ing the p.R.C. 'srecord, than to harass , N.Y.) for the same treatment of har- bilities of 50 all-weather, day-night Taiwan? i assment and intimidation that has al- modifiedF-8s . Solari said that resolutions have ready caused the fall of the govern- All U.S. allies in the region fierce­ limited wwer, but that they do bear ment of the Philippines and is closing ly oppose the sale, including Japan, more we�l)ton our allies than on our in on the same achievement for South South Korea, the ASEAN nations, enemies. Korea. and, of course, Taiwan. "Exa�tly the point," Burton re­ Solarz's chief political backers are In addition, since this would rep- plied, "aqd because of this policy, we Syrian-mafiafa milies based in Brook- resent a security threat to Taiwan, are findiQg ourselves with fe wer and lyn with tes to the Soviet KGB . On American business confidence in Tai­ fewer allies. We kick them in the teeth, May 7,_Solarz announced that he, in wan would be undermined. Taiwan is and let th� totalitarian regimes go un­ collaboration with liberal Republican the U.S.'s sixth-largest trading part­ touched." Jim Leach of Iowa, has introduced a ner, engaged in $22 billion of two­ "I ha�pen to believe that the more House Concurrent Resolution de- way sales last year. This has helped demOcratj.c a governmentis , the more manding "human rights" -namely, fuel the so-called economic tniracle in stable it i$," Solarz replied. the legalization of opposition par- Taiwan which has seen the tiny island Repr�sentative Toby Roth (R­ ties-in Taiwan. enjoy annual growth rates close to Wisc.) then chimed in, noting that the Currently, while independents are 10%. most stable government in the world allowed to run for public officein Tai - It is vital to the U.S. farm sector, is the m st totalitarian-namel q . y, the wan and there are independent news- for example, that Taiwan consumes Soviet Union. , papers which criticize government moresoybean and cornper capita from Solari exposed his true disdain for policy, new political parties are not the United States than any. other nation democrady, when he denegrated the allowed because in almost every case, in the world. , pro-Marcbs demonstrations that have serious opposition to the ruling gov- Siljander said that he tried to block been occ\irring in the Philippines by . ernment has been run by agents-of- the arms deal to the P.R.C. by intro­ saying they were the protests of people influence of the People's Republic of ducing two resolutions into Congress, attending � shoe-sales convention, who China. one calling for stopping the sale alto- were up�t that they had lost their . This is a security question for this gether, and the other calling for giving number-dne client. tiny island, given that P .R.C. officials Taiwan an equivalent arms package to , Finally,Roth pointed out that the are on record repeatedly stating that a· balance out the effect. new Solarz-Leach resolution against military invasion of Taiwan is "not out He said he had dropped his legis- Taiwan was completely politically of the question" for them. lation after a visit from the State De- motivated, since Congress had al­ Rep. Mark Siljander (R-Mich.) partrnent, which provided him with ready futty expressed its concern for testifiedat the hearing, raising in par- "classifiedinforma tion," that, he said, human rights in that country in a res­ ticular concern about the anticipated satisfied him that Taiwan's security olution passed as part of the Foreign sale of an "avionics modernization would not be undermined by the· deal. Aid Authorization Act last July. ,

66 National EIR May 16, 1986 Kissinger Watch by M.T.Upharsin

As the exhibition began on May 3, the would-be "grand strategists" in the Fiat magnate said: United States who would hope to see "Futurism is the only Italian cul­ the United States; adopt "Venetian tural movement that spread in this methods" in the conduct of its foreign ce�tury, and it is the art and poetry of policyand intelligenceevaluatio ns. motion and of technology." Sr. Agnelli's mistruths, haif­ truths, and obfuscations hide one sim­ Resurrecting the doges Cruising East with the ple fact. As Italian author Fiorella Op­ Whether play-acting or not, there was doges of the future erto documents in an article soon to be also a considerable; revival of the role published in the cultural journal Ma­ of the Venetian "Doge"during thedays What future is there for Henry Kissin­ chiavellico. "futurism" was a Russian of Kissinger's stay. The "Doge," his­ ger and his ilk? concoction in the first place, which torically, was the primus inter pares That question might have arisen was exported into the West in the early in plotting strategy!and governing, on during the weekend of May 2-4, among decades in this century, and which be­ behalf of the Venetian oligarchical those with the dubious privilege of came the rage in those Italian philo­ families. witnessing events at the newly re­ sophical, ideological, and artistic cir­ Agnelli's La Stampa daily report­ stored Palazzo Grassi and environs in cles which produced the intelligentsia ed on May 4, for example, that Kissin­ the ancient and decadent city of Ven­ of Mussolinian fascism. FOljour short­ ger was consulting with Italian Presi­ ice. er purposes here, futurism could be dent Cossiga, on "the situation in the As the London Economist of the seen as the mother-ideology of both Mediterranean." During this encoun­ week of May 3 put it, "everybody who Bolshevism and Nazism; today, its ter, and throughout the events of May is anybody-from the Rothschilds and mother is, indeed, "Mother Russia," 2-3, Cossiga "asslilmed for the mo­ the Aga Khan to Mr Henry Kissinger and whether consciously or not, that ment the role of the Doge" of Venice. and Europe's more decorative roy­ was what Kissinger and the jet-set no­ As for Agnelli himself: the Econ­ als," was gathering in Venice during bility with him were consecrating, as omist, in its account of his activities in these days. The occasion was the re­ they sailed down Venice's waters on Venice, writes, that there is a growing opening of a restored Palazzo Grassi, the lavishly decked-out Orient Ex­ sense among Vene�ans that "Mr. Ag­ an erstwhile plotting place for the press boat, on the night of. May 2, to nelli, already enthJ;oned in the upper Venetian oligarchy, which had re­ inaugurate the events of the coming left-hand comer 0$ Italy as a sort of cently been purchased for $15 million days. Grand Duke of Piedmont, wants to by Kissinger intimate Gianni Agnelli Indeed, for Henry Kissinger, the usurp the Doge's throne, vacant since of the Fiat Corporation in Turin. whole experience was more a return 1797. Venice need$ a new Doge, or at Sr. Agnelli, notes the Economist, to "the roots," than a trip into "the least a business-like manager." wants to tuin the Palazzo into a "cul­ future ." Kissinger's whole geopoliti­ The article is entitled, "Rebirth of tural and technological centre." His cal ideology was concocted in Venice, Venice." Indeed, efforts are under­ first escapade, co-funded by his Fiat among the old families of the mis­ way once again; to: make this city the and by the United Technologies Cor­ named Venice Republic. Venice be­ center of strategic I intrigue. EIR has poration, is a new exhibition on "Fu­ came the center of intrigue, assassi­ learnedthat from Sept. 14-21, Venice turism and Futurists." Judging from nation, chicanery, double-dealing, will be the site of Ii giant "European this event, the "future" of Kissinger, etc . -the kinds of practices that Kis­ Peoples" conference, featuring partic­ Agnelli, and the "more decorative singer has become notorious for, al­ ipation of many nations of EasternEu­ royals" is to take the world back in beit practicing them in a much cruder rope. The director of that conference time to some of the darkest moment of way than his ancestors. for Italy's Veneto Region (where this and other centuries, or, forward In his Harvard doctoral thesis, A Venice is located) $pent a week in the into a world of Soviet imperial rule. World Restored. written in the 1950s, Soviet Union duriqg the last days of Before the event, Agnelli had told Kissinger more or less admits this, in April and the first days of May, coor­ the Italian weekly Panorama. that his praise for the Venice-manipulated dinating arrangements with Soviet "futurism" was the movement that 1815 Congress of Vienna. Similarly academies and institutions for this would, uniquely, link East and West. today, Kissinger is one among many event.

EIR May 16, 1986 National 67 Congressional Closeup by Kathleen Klenetsky

' Military reform' measure highest ranking military officer. The administration's proposal to wins unanimous approval • Establish a procurement czar sell $3�4 million of much-needed de­ The U.S. Senate May 7 endorsed the with sweeping powers over Pentagon fensive: weaponry to a staunch ally of most sweeping reorganization of the acquisition policy. the United States was vetoed in the defense establishment since the end of • Grant significantly enhanced Senate May 6 by a vote of 73-22. The World War II. authority to military theater com­ House followed suit the next day, vot­ Sponsored chiefly by Senate manders, by, among other things, giv­ ing 356-62 against the package. ArmedServices Committee chairman ing them a voice, throughthe new vice­ "By this action, the Congress has Barry Goldwater (R-Ariz.) and Sen. chairman, in draft budget recommen­ endangered our long-standing secu­ Sam Nunn (D-Ga.), the measure won dations and decisions on weapons pro­ rity ties to Saudi Arabia, called into by a vote of 95-0, qespite harsh criti­ curement. question the validity of U . S. security cism from present and former military • Eliminate approximately commitments to its friends, and un­ leaders. 18,000 Defense Department employ­ dermined U.S. interests and policy Senate li.berals were besides them­ ees. throughout the Middle East," the sel ves with joy over the bill's passage. Supporters claim . the measure White House declared in a statement Senate Minority Leader Robert Byrd would, in Goldwater's words, remedy issued May 7. (D-W. Va.) referred to the bill as problems "that have plagued our na­ President Reagan has already "landmark legislation. " tional defense for decades." vowed to fightCongr ess's rejection of Goldwater, who, for as-yet-un­ But critics contend that it repre­ the sale. "The President will not allow known reasons, somehow got hooked sents the same kind of "systems anal­ this to happen," White House spokes­ into backing an unmitigated assault on ysis" approach to warfighting advo­ man LarrySpeakes told reporters May the U.S. military, called the bill "The cated by former Defense Secretary 7, confirmingthat Reagan would veto only ...thing I've done in the Senate Robert McNamara, a system which the disilpproval resolution and work that's worth a damn." owes far more to cost-accounting actively to sustain the veto. Closely paralleling legislation methodology than to the science of In disapproving the sale-claim­ which passed the House last year, and strategic doctrine. ing that Saudi Arabia is a threat to the recommendations of the Presi­ This point was hammered home Israel, and supports terrorism-Con­ dent's Biue Ribbon Commission on by syndicated columnists Evans and gress chose to tum a deaf ear to the Defense Management (the Packard Novak, who, in a March 7 column, urgent warnings emanating from the Commission), the Nunn-Goldwater excoriated Goldwater for making an administration and other sources, that bill would do the following: alliance with "the heirs of his nemesis denying Saudi Arabia these defensive • Emasculate the Joint Chief of of over 20 years ago, Robert S. weapo�s would go a long way to des­ Staff. The bill designates the JCS McNamara. . . . Although the reform tabilizing one of the few remaining chairman as the "principal military ad­ debate is ostensibly about how the de­ moderate states in the Arab world. viser to the President, the national se­ fense establishment should be run, it In a Washington Post commentary curity adviser and the secretary of de­ actually is an inquest on how the mil­ May 7,:National Security Adviser John fense." The chairman would no longer itary have run it." Poindex.ter emphasized the necessity be required to have unanimous agree­ for the United States to provide Saudi ment among the heads of the four ser­ . Arabia 'with the support-military and vices who comprise the JCS before politic�l-it requires to continue its making a recommendation to the Pres­ cruciail stabilizing, role in the region. ident, and would have the authority to SaUdi sale rejected "Oar interests require that we help state his position on any issue, wheth­ by both houses the Saudis meet their legitimate secu­ er or not the four service chiefs agree For the first time in history, the Con­ rity needs in the face of growing re­ with him. The legislation also creates gress has rejected a weapons sale to a gional threats," wrote Poindexter. a position of vice-chairman, and des­ foreign count.ry-in this case, to Sau­ "Completion of the sale at this time ignates him as the nation's second di Arabia. . . . provides a clear and important

68 National EIR May 16, 1986 political demonstration of U.S. com­ restored in the House-Senate confer­ boys pay more than 5¢ on the dollar­ mitment to Saudi self-defense. It helps ence, one Congressional insider be­ or they wo.n't come �n and "rescue" deter Iran from expanding the Gulf lieves that the Pentagon "will be damn local banks! war, bolsters the resolveof other Arab lucky if it escapes with only $30 bil­ A whole contingent oHarge mon­ moderates, and diminishes the possi­ lion in reductions." ey-center banks sen� representatives bility thatU.S. troops may eventually to the hearings to b�lster Volcker's have to be\ used to protect our interests blackmail. I in the Persian Gulf. " For example , Hans Angefmueller, vice chairman of Citicorp, told the Volcker promotes panel that certain "disincentives" must bank buy-up bill be removed from the bill, namely, Federal Reserve chairman Paul limitations on expan$ion rights in a House committee gouges Volcker has thrown his considerable new state and a built-iPpref erence for $3S billion from Pentagon weight behind legislation that would bids from an in-state ihstitution, in or­ The House Budget Committee ap- permit big money-center banks to der to attract takeover bids from the - proved a $994 billion budget for gobble up troubled financial institu­ large banks. FY 1987 on May 8 that would chop tions, particularlyin the economically­ The proposed legislation, call� military spending by a whopping $35 depressed oil-producing states. the "Regulators Bill, "get big banks to buy up smaller ones 'and keep them billion, and hike taxes by $13 billion. Known as the "Regulators Bill," .- The budget passed the Democrat­ the measure expands the Omnibus operating. ic-dom
nated panel on a vote of 21- Banking Act of 1982, which permits 11, on straight party lines. acquisitions across state lines of failed The proposal allocates $285 bil­ banks with assets of $500· million or lion to the Pentagon, $35 billion less more, to allow for the buy-up of such than the President's request, and $16 banks with assets over $250 million. Deaver hearings set . billion less than the budget which the Testifying before a House Bank­ before a House p ..nel Senate passed the previous week. In ing subcommittee May 7, Volcker Former Deputy White House Chief of effect, it would freeze military spend­ came to the assistance of his cronies Staff Michael Deaver. embroiled in a ing, with no allowance for inflation. in the New York banking community, controversy for his lolbbying activities Pentagon spokesman Bob Sims by urging that the legislation be passed for the Canadian g�vernment, has told reporters that Secretary of De­ intact. agreed to testify on tne issue before a fe nse Caspar Weinberger believes the The whole pointof thebill , he said, House panel, probably on May 16. defense cuts contained in the Budget is to make it easier for big banks to Deaver will appear before the Committee proposal "would destroy buy troubled banks in other states, and House Energy and Commerce Sub­ ' the recent and impressive momentum that adding restrictions, as some committee on Oversi�ht and Investi­ we have made in rearming America members of Congress and state bank­ gation, which will tate testimony on by squandering part of the dollars in­ ing supervisors have urged, woulll . May '12 from General �ccountingOf­ vested in defense in the past five discourage big banks from doing so. fice officials, who are �xpected to rec­ years." "Out-of-state purchasers of failed ommend a Justice Department crimi­ During the final day before the or very troubled institutions will sim­ nal investigation.of Deaver. vote, Democrats on the committee beat ply not be available, or available only The subcommittc;e, headed by back Republican-sponsored amend­ at very heavy cost to the Federal De­ Rep. John Dingell (I)-Mich.), is in­ ments to increase the money for the posit Insurance Corp., unless the ac­ vestigating allegatiotjs that Deaver military, one of which would have quired banks can be operated profita� may have violated federal ethics laws brought up the defense spending level bly in highly competitive markets," by representing the United States as a to that approved by the Senate. said Volcker. government official aPd Canada as a Although some of the cuts may be In other words, don't make the big private lobbyist on the acid-rain issue.

EIR May 16, 1986 National 69 I. i I NationalNews

same slate with followers of Lyndon H. Friedman of the United Auto Workers. LaRouche, the National Democratic Policy Hart : is also being promoted by Paul Committee (NOPe) candidates Mark Fair­ Weyrich; the Benedictine-linked founder of NASA postpones child and Janice Hart,who won the Demo­ the American "�ew Right," claiming that cratic primary nominations for lieutenant Senator Hart is the only candidate on the Centaur launch governor and secretary of state, respective­ scene capable of reflecting the deep desire The National Aeronautics and Space ly. of the blue-collar electorate for a resurrec­ Administration (NASA) announced shortly Howlett is the son of popular former Il­ tion of fundamentalJudeo-Christian values. after the Delta rocket explosion on May 3 linois secretary of state _M ichael Howlett, Weypch made this bizarre claim in a that it is postponing "for approximately four - who won four statewide elections by wide Washington Post commentary May 4, in weeks" the launch of an Atlas Centaur rock­ margins. Spirgel is the only survivor of four which he attacked free-market economics, et, whose engines are similar in design to ' Democrats elected to the DuPage County criticize4 the "new right" social agenda for the Delta rocket that failed, and is made by board in 1974 in the aftermathof Watergate. being toq shallow, and asserted that the Per­ the same company, Rocketdyne . She is described by colleagues as "not a son who!can buck the established party bu­ "The delay will provide time to review mainstream Democrat," as someone who reaucracY and revive "cultural conserva­ the manufacture, handling, transportation, "works for herself. " tism" will win the presidency in 1988. and assembly history of the Atlas Centaur Acknowledging that he had "lost some Weyrich. was clearly attempting to think up vehicle and its spacecraft to insure that all ground" since the LaRouche/NDPe victo­ an alterDfltive to Lyndon LaRouche. items critical to a successful launch have ries, Stevenson said that it "won't happen Weypch points to an article by William been thoroughly analyzed prior to a cow­ again." The outcome of Stevenson 's lawsuit Lind as woof of his contention. Hart's major mitment to launch," a NASA spokesman to change Illinois electoral laws and to ex­ aide on ;military issues, and co-author of said. tend the filing deadline to August is still in Hart's niew book promoting "military re­ Only three Atlas Centaurs are left in doubt, but a ruling on the suit is expected in form," Lind is an avowed monarchist, who NASA's inventory, along with threeDeltas . mid-May. claims tIiat the German classic poetand his­ . The Shuttle, Delta, and Titan programs are torian Fnedrich Schiller, who championed all grounded for accident investigations and, the Amdrican Revolution, was a precursor with the temporary grounding of the Atlas to the proto-Nazi philosopher Friedrich Centaur, the United States has no major sat­ Nietzscbe. ellite launchers on flight-ready status. i The Atlas Centaur's payload is to be an Gary Hart positioning Air Force-Navy communications satellite built by TRW called FleetSatCom F-6. as 'front runner' Sen. Gary Hart (D-Colo.), liberal Demo­ , crat-cum-conservative, is clearly position­ Teller and Bundy ing himself to be the "Democratic front-run­ . ner" for the 1986 presidential nomination. on Russian ABM efforts In addition to his new book on military re­ At a conference on high technology and war Stevenson begins form , which has gotten reams of publicity sponsored by the New York Academy of in the major press, he Will be giving a series Sciences on May 8, American physicist Ed­ independent campaign . of speeches on strategic policy at George­ ward Teller and former National Security Vowing to make Jane Spirgel a "household town University throughout the month of Council head McGeorge Bundy polarized a word," Adlai Stevenson formally kicked off May. group of leading scientists and political . his Illinois campaign as an "independent" Also, his think-tank, the Center for a scholars. candidate for governor, even though courts New Democracy, is awash with various "The Soviets have been working on this have not yet determined the legality of such projects and seminars, ranging from one on [strategic defense] system for at least 20 a candidacy, and announced his two new military reform, to one on international trade , years," Teller said. "To assume that we are running mates: Du Page County board­ and includes a series of upcoming seminars necessarily ahead is unjustified, and, in my member Jane Spirgel for secretary of state on the "New American Community," the opinion, completely wrong." and Cook. County Associate Judge Michael first of which /will take place in Detroit on McGeorge Bundy, unofficially known Howlett, Jr. for the lieutenant-governor slot. May 19. Speakers will include, among oth­ as the "\lead" of the Eastern Establishment Stevenson recently withdrew from the ers, Robert Lawrence of the Brookings In­ and currently a professor at New York Uni­ Democratic ticket to avoid running on the stitution and Barry Bluestone and Stanley versity, countered that U . S. technology was

70 National EIR May 16, 1986 ahead in many areas including computers, tions intelligence activities. Prior to his ap­ radar, propulsion, electro-optical systems, pointment as U. S. ambassador to West Ger­ • ARMAND HAMMER, the bil­ guidance systems, and software . "Fearing many, Burt was a reporter for the New York lionaireoil mal,.was asked athis 88th the Soviets obsessively is something we've · Times and leaked extensive details about a birthdayparty his opinion of the Lib­ done before and we should not do it in this highly classified operational intelligence . yan bombing by the United States.· case," Bundy said. satellite system. The octagen an replied: "I won't . Bundy did concede that the Soviets had Burt's disclosure clearly violated the a$ knowuntil I'mjinRussia on May 15." built an anti-ballistic missile system to pro­ Comint statute, but Secretaryof State George tect Moscow, but added, "I know of no one Schultz defended Burt by saying that the • THE JUSTICE Department has who thinks that's impenetrable." government official who leaked the infor­ found no foun�ation for mation was at fault-not Burt. charges that large numbers! of Nicaraguan rebels and private Anlerican supporters were involved in gu�nning and drugtraf­ Leading liberal media ficking, department officilils slilid on Anti-terrorist head . May 6. A seniPc official , who asked under investigation not to be identiWied, said agents of the Federal Burea of Investi�ation had The Washington Post, New York Times, ties M-19 to narcotics � conducted intetviews in several states Newswetk, Washington Times, and Time . Robert Oakley, U.S. head of counter-terror­ and Costa Ric. and had been unable magazine may be the first news media to be ism for the State Department, testifying at to verify the allegations. prosecuted under a 1950 statute prohibiting hearings on terrorism before the Senate For­ disclosure of classified information. eign Relations Committee on May 6, stated Ii • C�� CHARGES will not CIA Director William Casey told the that the United States now has irrefutable be filed againstiGeraldine Ferraro and Washington Post that he discussed the pos­ proof that the M-19 terrorists who stormed her husband, Jphn Zaccaro, the Jus­ sibility of criminal prosecution with Deputy the Judicial Palace in Bogota, Colombia last tice Department concluded in early Attorney-General D. Lowell Jensen at a Jus­ November were paid to do so by the cocaine May after a I ngthy investigation. tice Department meeting on May 2. Casey traffickers, and that the escalation of terror­ F Department swkesman John Russell cited the Post and Newsweek for reporting ism in Colombia is completely a function of said: "We havd closed the case as far on U.S. intercepts of messages between the cocaine-traffickers' anger over extraditions as taking any criminal action. But it's Libyan People's Bureau in East Berlin and to the United States . beingreferred our civil division for Libyan authorities in Tripoli. He did not This is the first time that a U.S. official ., them to take a Jook at it ....I don't specify the stories that led him to consider has claimed to have proof that narco-traf­ know what theY'll decide." prosecution of the other three. fickers were behind the storming of the Pal­ The administrationis planning to invoke ace, which claimed over 100 lives, and is section 798 of Title 18 of the U.S. Code, the flatly contradictory of the claims of FBI Di­ • CONGR�SMAN William E. "Comint statute ," which prohibits the pub­ rectorWill iam Webster that there is no con­ Dannemeyer's United Families lishing of classified information about U . S. nection between terrorism and narco-traf­ Foundation haj; sent out a direct-mail communications intelligence activities ficking. questionnai,e }titled "AIDS Aware­ dealing with ciphers and codes. The 1950 In response to a question from Sen. 'ness Project," \Ising mailing lists pur­ law prohibits "knowingly and willfully" dis­ Richard G .. Lugar (R-Ind.), Oakley said: chased for thejpurpose, according to closing classified information about "com­ "We discovered, after the fact, very sol­ an aide. The �er asks various ques­ munications intelligence activities of the id evidence that the people who carried out tions about ho,+,AIDS victims should U.S. or any foreign government." the attack against the Palace of Justice were be handled, rupis accompanied by a The maximum penalty is I 0 years in paid $5 million by one of the chief narcotics fund-raising pitch, saying the results prisonand a $10,000fine . Casey also warned groups down there for the precise purpose of the survey will be released to the the Washington Post not to publish a story of destroying the legal records and intimi­ public, Congr�ss, etc. The flyer con­ they were currently working on . dating the judges so that there wouldn't be cludes: "AIDS could become the In a related story , the Richard Burt file any more extradition." deadliest di�e4lse in the history of may well be reopened as the Reagan admin­ He added that this is "one example of mankind. So please return your sur­ istration considers the prosecution of news where you get the peculiar combination of. vey today with a generous contribu­ organizations that have leaked classified in­ narcotics trafficking, terrorism and extradi­ tion of whatever you can afford ." formation derived from U.S. communica- tion."

EIR May 16, 1986 National 71 Editorial

LaRouche and the Civil Rights Commission

Before there existed the Civil Rights Commission, there slanderers of Mr. LaRouche, Irving Suall, Dennis King, was the Civil Rights Movement of the 196Os, which and John Rees-the latter �ay Anytus, Meletus, and ultimately produced legislation making the existence of Lycon. the Civil Rights Commission possible. And before there As a result of the "hearing," the Commissioners' existed a Civil Rights Movement, there existed a Bill instructed their staff to "continue monitoring the activ­ of Rights and a First Amendment of the Constitution of ities of the LaRouche orgapizations, and to recom­ the United States) of America, which made the Civil mend, not later than June 2, �'whether or not the Com­ Rights Movement of the 1960s possible. Before, there mission has any jurisdiction over the matter, and wheth­ existed either a Bill of Rights or a Constitution of the er or not the Comm\ssion shok.tld take any action against . United States, there existed a very , very protracted Mr. LaRouche." struggle of humankind against the tyranny of the arbi­ We have two observatiol1s: FIrst, the Commission trary politiCal power of the oligarchy. It was this pro­ has failed, continuously overthe recent years � to safe­ tracted struggle of mankind which, ultimately, made guard, affirm or otherwise prptect the civil rights of Mr. . possible the existence of the United States, its Consti­ LaRouche and his friends. ybt, his political movement tution, its Bill of Rights, its Civil Rights Movement, in the American Republic ils,by a long margin, the and its Commission on Civil Rights. most vilified, attacked, oppr�ssed and persecuted of all The centuries-old struggle against the arbitrary existing legitimate political; movements. There is, in power of the oligarchy, always and invariably, took the federal courts, the accumula4ed evidence of 20 years of form of the struggle to be free to express views contrary abuse of powerby the FBI and associated entities against

to -prevailing opinion I Indeed, tyranny is directly de­ Lyndon LaRouche. There is:Other massive evidence of rived from the oligarchy's ability, in most pre-U .S. powerful financial groups, i�cluding the dope running societies, to dominate and shape "prevailing opinion." Bank of Boston and the organized crime-linked First The essence ofthe First Amendment is located in guar­ Fidelity Bank of New Jersey � stealing outright hundreds anteeing the freedom to express views not merely con­ of thousands of dollars of political contributions of trary to "prevailing opinion," but views which are being LaRouche supporters; there lare massive illegalities of put forward for the explicit and articulated purpose of disenfranchisement, ostraciSm, vote stealing and what serving society's Common Good. The matter has been not, against the LaRouche l110vement over the years . best argued in the great Milton 's Areopagitica . We urge The task of the U. S. Civil Rights Commission is to the U.S. Commission on Civil Rights, to master the act to prevent such abuses.! Instead, it chose to hear arguments and the spirit of Milton's Areopagitica, to wild, hysterical slanders an4 fabrications of three per­ better serve the Republic in their appointed task. sons known to be stringerS: in the FBI's exercise of This, in the context of an action which the Com­ abuse of power, Suall, King, and Rees. All 'three are or mission took on May 9. 1986, which is cohtrary to its have been on the payroll of the same FBI which is about mandate , in violation of its own explicit rules, and in - to be indicted along with Jaokie Presser. The Commis­ wanton defiance of the Constitution of the United States. sion 's mandate is to protect Ci viI Rights from the abuse i We refer to a "hearing" the Commission held, on and the arrogance of power, the power which fears any whether it should take action against Lyndon H. La­ and all challenges to "prevai;ling opinion." Rouche , Jr. and organizations associated with him. The And one reminder to the Commission: A:D. 1986 hearing consisted of presentations by three notorious is not 399 B.C.

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