TRAVESTY! ATrue Crime Story

The full, unexpurgated story of the du Pont kidnap case!

Read, in their own words:

• How the kidnappers-members of the criminal Cult Awareness Network- plotted to seduce, kidnap, drug, and, if necessary, kill du Pont heir Lewis du Pont Smith, to stop his association with political leader Lyndon LaRouche; then went scot-free in the same judicial system that condemned LaRouche to life in prison.

• How Ollie North's Vietnam tentmate, a Loudoun County, Va. deputy sheriff, was at the center of a near-miss assassination of LaRouche by sharpshooters during a 400-man paramilitary raid.

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1-800-453-4108 1-703-777-3661 Shipping and handling charges: Add $4 for the first book and $.50 phone (toll free) or for each additional book. Virginia residents add 4.5% sales tax. We accept MasterCard, Visa, American Express, and Discover. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Melvin Klenetsky, Antony From theAssociate Editor Pape'rt, Gerald Rose, Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, Webster Tarpley, Carol White, Christopher White Senior Editor: Nora Hamerman Helga Zepp LaRouche,the founder of the Schiller Institute,became Associate Editor: Susan Welsh Managing Editors: John Sigerson. widely known as "the Silk Road lady,"during her 1994campaign for Ronald Kokinda election to the German Bundestag. In a Sept. 22, 1994 television Science and Technology: Carol White broadcast,she said: "We need economic integration of the Eurasian Special Projects: Mark Burdman Book Editor: Katherine Notley continent. For example, the construction of a land-bridge along the Advertising Director: Marsha Freeman old Silk Road,as far as China and South and Southeast Asia." Circulation Manager: Stanley Ezrol In our Feature, you will find an exclusive report on the interven­ INTELLIGENCE DIRECTORS: Agriculture: Marcia Merry tion by "the Silk Road lady,"during a recent conference in Beijing on Asia and Africa: Linda de Hoyos the New Euro-Asia Continental Bridge. Mrs. LaRouche first visited Counterintelligence: Jeffrey Steinberg, Paul Goldstein China in 1971, during the Cultural Revolution.We publish her com­ Economics: Christopher White mentary on the amazing changes that have taken place during the European Economics: William Engdahl Ibero-America: Robyn Quijano, Dennis Small intervening 25 years, and on China's potential role in "taking the Law: Edward Spannaus cause of humanity forward,"on p. 48. Russia and Eastern Europe: Rachel Douglas, Konstantin George The views presented by the Schiller Institute delegation found a United States: Kathleen Klenetsky strong resonance among many of the speakers from China-and were INTERNATIONAL BUREAUS: sharply repudiated by the British representatives in attendance. Bogota: Jose Restrepo Bonn: George Gregory, Rainer Apel Is the British oligarchy upset,that the ideas of Lyndon and Helga Buenos Aires: Gerardo Teran LaRouche are being presented to a nation of 1.5 billion people,one­ Caracas: David Ramonet Copenhagen: Poul Rasmussen fifth of the human race? You bet they are. A counterattack is now Houston: Harley Schlanger Lima: Sara Maduefio under way in Australia, among other places, where a renewed cam­ Mexico City: Hugo LOpez Ochoa paign of slander has been launched against LaRouche.We shall have Milan: Leonardo Servadio New Delhi: Susan Maitra a report on this next week. Paris: Christine Bierre Not coincidentally, LaRouche's advice to Australians, in a May Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson 1993 speech,was that they play a leading role in developing China. Washington, D.C.: William Jones "The great challenge of this period," he said, "is to bring the Confu­ Wiesbaden: Goran Haglund cian heritage of China to its proper realization.. .. Australia must

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Departments Investigation Feature

6 Report from Bonn 56 Israel's patriots vs. The dangers of inaction. Harvard's racists Lyndon H. LaRouche, Jr. on the 7 Andean Report subject of Daniel Goldhagen's Peru doubles its debt. highly publicized book, Hitler's Willing Executioners: Ordinary 80 Editorial Germans and the Holocaust. It's never too late. 59 The British fraud behind Harvard's Goldhagen Photo credits: Cover, Pages 11, 21, provocation Schiller Institute founder Helga Zepp LaRouche (sec­ 24, 27, 49, 50, Schiller Institute. A documentary report by Anton ond from left) and Mary Burdman (right) visit a fann­ Pages 29, 31, EIRNS/John Chaitkin. ing village in Hebei Province, China. May 1996. Sigerson. Page ??, Courtesy of Lianyungang Eurasia Land-Bridge 10 Beijing promotes Grand Working Office.Page 57 (Rabin), Design for Eurasian 74, EIRNS/Stuart Lewis; Page 57 progress (Goldhagen), J.D. Sloan. Page 60, On May 7-9, over 460 experts and Bundesbildstelle. Page 65 Economics leading officials from 34 countries (Kissinger), EIRNS/Scott gathered in Beijing, China, to Thompson. Page 65 (Harriman), participate in an historic 4 Cargill issues free trade EIRNS. International Symposium for edict, as cupboards go bare Development of the Regions along Former Cargill executive Daniel the Euro-Asia Continental Bridge. Amstutz lies that the world food crisis is "a temporary aberration," 13 Conference in Bejing: and proclaims: "It would be a mistake to use the current situation toward a new 'continental as an excuse to mandate bridge era' for Eurasia multilateral, intergovernmental There was a "clash of cultures": stockpiling of food products." between the policy of economic development and peace, on the one side, and, on the other, the British 8 Business Briefs Empire's geopolitical machinations to prevent the creation of a flourishing Eurasian continental bridge.

18 Secure peace through common development By Song Jian, State Councillor of the People's Republic of China, chairman of the State Science and Technology Commission, and chairman of the State Environmental Protection Commission. Volume 23, Number 25, June 14, 1996

International National

20 China must play by 'free 52 Yeltsin goes for broke in 72 LaRouche sets the tone for trade' rules pre-election scramble Democratic victory By Sir Leon Brittan, vice president Elections are lost and won in the Having won nearly 600,000 votes of the European Commission. provinces, and there, the President during the Presidential primaries, is well aware, he needs the support despite a media blackout of his 22 The start of a new of the military-industrial complex. candidacy, LaRouche moves to the economic era for a new But, buying an election is next phase of his campaign: expensive. "roasting" the fascists who are civilization demanding budget cuts that will By Rui Zingwen, chairman of the lead to the certain death of their China Development and Promotion 54 International Intelligence poor, sick, and elderly constituents. Commission of the New Euro-Asia Continental Bridge. 75 What does the senator from 28 Iran: an east-west strategic Mississippi have to Hyde? Corrections: In EIR, May 24, the bridge A profile of Trent Lott. article on p. 21, "The Queen's By A. Broujerdi, Deputy Minister 'Honorary Knights' in America," of Foreign Affairs of Iran. 77 Scalia feeds frenzy over contained errors respecting British Supreme Court 'gay rights' honorary titles, of putative U.S. ruling 31 Building the Silk Road citizens, which had been supplied land-bridge by British official sources. By Helga Zepp LaRouche, Continuing inquiry has developed 78 National News president of the Schiller Institute in information from higher authorities. Germany and the chairman of the Gen. Colin Powell is actually a Schiller Institute Board of Directors Knight Commander of the Order of in the United States. the Bath, making him the third highest knight in the United States, 33 Tennenbaum presents just below Presidents Reagan and LaRouche's economics Bush (and above Henry Kissinger). Caspar Weinberger is a Knight 34 History of the new Grand Cross of the British Empire. In the same issue, on p. 25, continental bridge footnotes 2 and 3 were reversed. By economist Ma Hong.

36 Provincial leaders and infrastructure experts endorse the 'New Silk Road' Draft papers by Chinese contributors to the conference.

48 China 25 years later A personal report by Schiller Institute founder Helga Zepp LaRouche. �TIillEconomics

Cargillissues freetrade edict, as cupboardsgo bare

by Marcia Merry Baker

As the 1996 northernlatitude crop year proceeds with a much­ the prominent companies have, as well as their interconnec­ damaged U.S. June winter wheat harvest (and no "miracle tions to mostly London-serving financial and political control crops" anywhere else), the need for emergency measures to networks. (See especially our Special Report, "The Sun Never aid domestic food supplies, including in the United States, Sets on the New British Empire," EIR, May 24, 1996.) becomes clearer every day. U.S. grain stocks are now at their To protect their image, even farm state Republican con­ lowest since World War II. For 12 months, the European gressmen are breaking ranks with Conservative Revolution Union has taken repeated actions to protect grain for domestic anti-government dogma, and have called for national inter­ use. Japan has augmented its rice reserve. Import-dependent vention to aid farmers and food. Sen. Larry Pressler (R-S.D.), nations are seeing scarce grain prices soar out of reach. On challenged for his seat this fall by Rep. Tim Johnson (D), has June 6, Bulgaria declared a national bread emergency, as the come out for anti-trust action against the meat cartel compa­ agriculture minister resigned. nies that are underpaying cattlemen for beef. Senate Agricul­ Limited measures have been taken by the Clinton admin­ ture Committee Chairman Richard Lugar (R-Ind.) held hear­ istration. On May 30, Agriculture Secretary Dan Glickman ings May 15 and June 5 on commodities speculation in the asked the White House for permission to release 48 million grain belt. bushels of government-held grain reserves, to distribute as cattle feed relief to farmers hit by drought, high feed-grain Cargill: 'No to national food sovereignty' costs, and low prices for their beef. Cattlemen are getting . Lest the idea of emergency measures catch on, as food the same beef price now as in 1977, because of systematic becomes more expensive, scarce, and tainted, commodities underpayment by the meat cartel (IBP, Cargill, ConAgra, and cartel top gun Daniel Amstutz fired off against any and all National Beef) which controls 87% of U.S. beef slaughter. types of national food sovereignty initiatives, however small The irony is, that the only reason there are any government and meek. stockpiles on hand, is because they are "leftovers"from a past On June 3, Amstutz, a former Cargill executive, and now era of strategic food reserves policy. The new "Free Market President and CEO of the North American Export Grain Asso­ Transition" seven-year national farm law specificallyfor bids ciation, Inc. (NAEGA), gave the principal speech, after Secre­ government food reserves, in deference to the food cartel tary Glickman, at an Agriculture Department event on "U.S. which preens itself as the "free market forces." Forum for the World Food Summit." The World Food Sum­ June 7 was the release date for a set of recommendations mit is being hosted by the UN in November, in Rome, ar­ and a report from a USDA-commissioned Committee on Con­ ranged by the UN Food and Agriculture Organization (FAO), centration in Agriculture (formed in February 1996), on how and intended as a heads-of-state gathering on world food to deal with the unprecedented degree of monopoly control shortages. by a few large processing and trade firmsin grains, oils, meat, Amstutz, who spoke on "Trade and World Food Secu­ dairy, sweeteners, flour,baked goods, fruits, and vegetables. rity." held forth on the theme that governmentaction by either EIR, in several issues over the past year, has documented the United States, or any other nation, must be outlawed when the percentages of control over different food commodities it comes to food; instead, "private" interests, and the "mar-

4 Economics EIR June 14, 1996 kets" must have full freedom to operate in any way that they (GATT) Uruguary Round of world agriculture free trade choose, in production and trade of food commodities-even talks. Now, Amstutz heads NAEGA, which represents Car­ for international food relief. "The World Food Summit will gill, ADM, Continental, Louis Dreyfus, and the other major be held at a time when global supply balances are tight," he grain and oilseed exporters. said. "It would be a mistake for the United States or other countries to view this as anything other than a temporary Corn belt razed by deregulation, speculation aberration. It would be a mistake to use the current situation The results of the kind of free market deregulation de­ as an excuse to mandate multilateral, intergovernmental manded by Cargill, and sanctioned in the new U.S. "Free stockpiling of food products. If incentives are permitted to Market Transition" farm law, are to be seen in wild specula­ exist, markets will provide the wherewithal, not only for the tion hitting the markets and the grain belt. Spring spikes in production of sufficient supplies to meet current demand, but wheat prices on the Chicago Board of Trade, and Kansas City also to finance the carrying of reserves by the private sector. Board of Trade have prompted disciplinary investigations of And if any countries desire to secure reserves for aid-related abuses of "volatility." Com speculation is even wilder, with purposes, the private sector can provide the service today for July being a bulls-eye month. the organization and management of any reserve program that It is an "open" rumor that the cartel grain-processing com­ may be desired. NAEGA is ready to assist in this process. panies (Cargill, ADM, Tate & Lyle, and CPC, all of them There is neither need nor reason for the involvement of gov­ under federal anti-trust investigation since 1995) will demand ernmental bureaucracies in such undertakings." to take delivery on the July com futures contracts they hold. They will thus suction up all the com around, and will be Demands new free trade 'round' in 1999 positioned to hoard, speculate, and make a killing off strato­ Amstutz began his speech with the following demands spheric price rises. Over the past 24 months, vast amounts of for even more free trade for the food cartel interests than they private, "smart" money in the London circuits have flowed now exert. into all kinds of controlling positions in the world food chain, "The United States should insist that the next multilateral and in production lines of other strategic commodities (fuels, trade round does in fact begin in 1999, as stipulated in the metals, minerals, gold, etc.). Marrakech Declaration that signaled the conclusion of the The background is that the U.S. com harvest period is Uruguay Round .... September-November, and com stocks are running down so "The United States should insist that some of the matters low, relative to use, that as of mid-summer, the United States to be addressed in the next trade round include: will be effectively out of stock. ". The continued rollback of all export subsidies and Another part of the July picture is the potential for be­ their eventual elimination .... tween $800 million and $1 billion in losses in Midwest farms, ". The elimination of State Trading Enterprises (also re­ local elevators, and so forth, as a result of farmers' inability ferred to as single desk export/import monopolies) .... to meet delivery on com contracts, due in July, called "hedge­ ". The rollback and eventual elimination of high import to-arrive contracts" (HTAs); these are derivatives-type deals tariffs instituted during the 'tariffication' process of the Uru­ that farmers were snookered into. They are now hit by "sui­ guay Round. cide spreads" in prices, and they can neither produce the com, ". Overall expansion of market access and the elimina­ nor pay up. tion of barriers created by unscientific/arbitrary sanitary and Lugar's Agriculture Committee held hearings on these phytosanitary regulations. [By this, he means any safe food new HTA contracts on May 15 and on June 5. The conclusion? regulation that the cartels object to-ed.] "We are aggressively investigating," said John E. Tull, Jr., ". The eventual elimination of green boxes and boxes of acting head of the Commodities Futures Trading Commis­ all other colors that provide national exemption from trade sion, the very agency whose past laissez-faire policies in the liberalizing agreements. 1980s under chairman Wendy (Mrs. Phil) Gramm (now on "The United States should commit to a goal of eliminating the board of IBP cartel meat company) opened the way for all areas of government control and manipulation of prices HT A hijinks. Tull says HT As may be illegal, and "participants that impede theproduction and economic flowof food prod­ may have committed fraud in the marketing" of HTA con­ ucts from the farm to the market." tracts. He advised HTA "participants" (farmers, elevators) Who is Amstutz to issue edicts? As they say, there is "to try to resolve their differences among themselves," and no such thing as an "ex"-Cargill official. Cargill, a private he said that the CFfCwill carefully monitor the coming expir­ company based in Minnesota, is the world's largest grain ations of grain futures contracts, especially the July com con­ trader. During his time with Cargill, Amstutz worked in the tract. Cargill Tradax office in Europe, at the hub of commodities Different advice comes from some of the Midwestern trade. From 1983-87, Amstutz was U.S. assistant secretary of local press. The Lincoln, Nebraska Star Journal advised on agriculture, after which, he served as George Bush's U.S. May 29: "Assume the crash position, please, because a train representative to the General Agreement on Tariffsand Trade wreck is coming in the July com futures contract."

EIR June 14, 1996 Economics 5 Reportfrom Bonn by Rainer Apel

The dangers of inaction The German governmentdid little Germany's hesitation to push big economic cooperation projects to try to change the situation, sticking with the neo-conservative dogma: with Russia is shortsighted and risky. "What the market can't achieve, the state won't achieve either." But with­ out explicit governmentbacking, con­ ditions would not develop that would A report published for the govern­ many are down to roughly 25% of allow the flourishingof trade between ment in late May, documented that in what they were in the late 1980s, and Russia and Germany. 1995, German investments in Russia this very directly has to do with the The money which German banks have fallen below those in Slovakia. IMF and the free market prophets who have failed to invest in Russia over the Rumors here have it that the drop is have advised the Russian govern­ last five years, and which is now hur­ continuing this year, because of a hesi­ ments since 1990. riedly being transferred to Moscow to tation to have more than a minimal About two years ago, a senior So­ bolster Yeltsin's reelection, could presence in Russia, before its Presi­ cial Democratic politician from the have been better made as a German dential elections. eastern state of Saxony told this author donation for joint infrastructural de­ This wait-and-see approach, of that the Russian disinterest in harvest­ velopment projects. For example, it speculating whether the Communist ers and other machinery, which the So­ could have been donated to launch a candidate Gennadi Zyuganov will win viets had been buying from Saxony for high-speed rail line between Berlin over incumbent Boris Yeltsin, and will more than 40 years, could be traced and Moscow, which has been much­ return to a state-controlled economy, back to the role of the Harvard-type, discussed recently, and even called certainly has the support of many Rus­ Anglo-American advisers. He said that "important" in numerous public sia experts and the banks in the West, these advisers told the Russian govern­ speeches by both German Chancellor but it is counterproductive. Worse, a ment that it was a "big waste" to spend Helmut Kohl and Russian President hefty DM 5 billion (roughly $3.1 bil­ money for capital goods from the West Yeltsin. The project, which would be lion) has been promised in the last (predominantly from Germany), or to the main artery of transcontinental Eu­ weeks to Yeltsin to help him cover invest in a national industry. The inter­ ropean transport between East and some long-overdue bills and pay­ national free market could supply Rus­ West, would also promote the devel­ checks to select sections of the elector­ sia with all its needed goods more opment of industrial and urban centers ate. This money just papers over holes cheaply than nationally produced along its 2,000 km length. in the Russian budget, created by the goods, and the "savings" could go into It is certainly true that, for geopo­ insistence of the International Mone­ such "safe bets" as western financial litical reasons, Russian elites tend to tary Fund and the western creditor markets, said the advisers. oppose a direct rail connection with banks, on budget "consolidation" The same source also confirmed the West, fearing it might one day be through cuts. that the billions of deutschemarks used to invade Russia. But it is even The money would have gone to which the Russian Armed Forces re­ more true that without such a rail link, much better use had it been put into ceived from mid-1990 to mid-1994, to the Russian heartland will never see projects for infrastructural, industrial, cover the expenses of Soviet troop genuine economic development, and and agricultural development, which withdrawal from eastern Germany, will remain chronically underdevel­ would increase the productivity of the had mostly never arrived in the hands oped. Moreover, such a rail link would Russian workforce, and thereby, the of the soldiers, nor in Russia, but had consolidate an atmosphere of trust and tax revenue base of the government. been deposited in such financial oases mutual cooperation between Russians Improved industrial and agricul­ as Luxembourg. and West Europeans, and in the pro­ tural productivity would have resulted Meanwhile, eastern German com­ cess of completion, this rail line would in increased Russian orders for indus­ panies and traditional suppliers to the alleviate Russians' unreal geopolitical trial machinery, transport technolog­ Soviet farm sector, such as Saxony's fears. The Russians are, naturally, cau­ ies, harvesting equipment, engines, Landtechnik, or Deutsche Waggon­ tious; but, the German wait-and-see and other products which the Soviets bau (the main producer of Soviet roll­ approach is shortsighted: The very used to order from East Germany be­ ing stock), ran into deep trouble, when risks that the Germans claim they want fore 1989. Russian orders from Ger- they lost their markets in the East. to avoid, they will only create.

6 Economics EIR June 14, 1996 AndeanReport by SaraMadueno

Peru doubles its debt Regarding the so-called 50% debt Peru is submitting to the IMF and London's imperial interests as reduction under the Brady Plan, this applies only to the principal, and will its social woes, and its debts to the banks, grow. reach, under the best of circumstances, only $2.2 billion. That means that Peru will still be left with a debt of more than $7.8 billion, which it will have to "honor" with an initial payment of Under the headline "IMF Calls the for the remainder of the century. Such between $3 and $3.5 billion. The bulk Tune for Fujimori," the May 23 issue precautionary action by these oligar­ of that initial payment will, of course, of the London Times published an un­ chical interests occurs at a time when come from Peru's intensified privati­ usual, 14-page supplement recom­ the international financial system, zation program. The rest of the debt mending that British investors take eaten away by the speculative cancer will be paid in "comfortable" annual control of "Peru's vast mineral of derivatives and similar fictionalin­ quotas of $900 million to $1 billion, wealth," as they did during the 19th struments, is on the verge of collapse. for the next 20 years. In other words, century, the golden age of British im­ To guarantee Peru's continued co­ on an initial debt of $4.4 billion, the perialism. The publication of the operation, International Monetary banks will receive $3.5 billion up Times report coincided with the sign­ Fund (IMF) Managing Director Mi­ front, and another $1 billion a year for ing in Lima of the contract between chel Camdessus was just in Peru, the duration. the government of President Alberto where he advised Fujimori in no un­ The announcement of the Camisea Fujimori and the Anglo-Dutch Shell­ certain terms that continued "restruc­ contract and the signing of the Brady Mobil consortium for exploitation of turing" of the economy, "reform" of Plan, presented as proof of investor the Camisea natural gas deposit. Lo­ social programs, and an intensifiedpri­ confidencein Peru, is also intended for cated near the southeastern city of vatization campaign, were the condi­ dometic use to calm the growing pro­ Cuzco, the Camisea deposit is esti­ tions for Fund "assistance." Failure to tests, both in Lima and nationwide, mated to contain on the order of 10.8 privatize the state oil company Petro­ against Fujimori' s IMF-imposed give­ trillion cubic feet of gas. peru, in particular, Camdessus empha­ away program. The government's The contract represents outra­ sized at a press conference, would trig­ neo-liberal economic program is a geous submission by the Peruvian ger an "interruption" of IMF support. thoroughgoing fiasco,which will only government to purely speculative London propaganda over the so­ succeed in aggravating the poverty, British interests, not unlike the heyday called Peruvian "miracle" occurs at and desperation, of the Peruvian peo­ of the 19th century when Britain ex­ the same time that a final agreement ple. In the first half of 1996, not only ploited Peru's guano deposits on the was announced between Peru and its has the GNP fallen by 0. 1 %, according country's offshore islands. Not only bank creditors over signing a Brady to officialfigur es, but inflation hasalso did Peru accept all of Shell-Mobil's Plan for refinancingthe debt to private begun to take offagain, and no amount demands regarding taxation and repa­ banks which Peru froze back in the of credit restrictions or monetary triation of profits, but it also accepted 1980s. The creditor banks, headed by tricks will stop it. the fact that, despite the contract's ref­ Citicorp, could not have struck a better The rise in prices, primarily in erence to "investment," it really does deal. In the first place, Peru acknowl­ food, is wreaking havoc with the popu­ not guarantee any effective invest­ edged a debt with the private banks lation's buying power, and promises ment by these companies in Peru. The totalling more than $10 billion; even only worse things to come, if one con­ deal establishes that only in 1999, after former Finance Minister Carlos Bolo­ siders the fact that 60% of Peru's food the "corresponding market studies" gna (whom no one could accuse of be­ needs are currently imported. Agricul­ are completed, will these companies ing anti-banker) estimated the figure tural and industrial production for the decide whether or not to invest the $3 at $8 billion. That is, through this new domestic market are on the verge of billion they have promised. Brady agreement, Peru has agreed to disappearing. And darkening the pic­ In other words, the only thing the add to a debt, whose principal at the ture is the fact that, as hunger spreads contract really guarantees is that Brit­ end of the '80s was $4.4 billion, an­ throughout thepopUlation, Peru could ain's House of Windsor will control other $5.6 billion in interest and late once again face the nightmare of re­ these important natural gas deposits fees. Double the initial debt! vived Shining Path narco-terrorism.

EIR June 14, 1996 Economics 7 BusinessBriefs

Poland Foundation, on whose board sits many of the ters-their job is police the budget-but any "liberal" politicians who sponsored the capacity to provide strategic macroeco­ Economy reaches shock therapy policies, such as former Fi­ nomic leadership from the Finance Ministry the breaking-point nance Minister Leszek Balcerowicz. (More is extremely limited. So we are working very details on Soros's antics are in Interna­ rapidly to tryto correct that-not just to live tional Intelligence.) with it." The devastation of the Polish economy that "The good news here," he said, "is that has been caused by the International Mone­ there is more resistance to some of those neo­ tary Fund "shock therapy" policies of the liberal assumptions, and it is more broad­ past several years, has entered a dangerous South Africa based than it was perhaps a year ago.. .. new phase. Leading Polish political figures Contrary to the accepted common wisdom, think that the situation is reaching a break­ Fightunder way over no economy has managed to grow, get out ing-point, with the limits being reached, of of war-time ruin, colonial backwardness, or the population's ability to tolerate the contin­ control of CentralBank serious economic trouble following the reci­ uing decline in living standards and demo­ pes that are being advocated to the Third World or to the former Soviet world cur­ graphic collapse. The battle over South Africa's economic rently." Recently released officialstatistics show policy has escalated. On May 27, Sam Shi­ that, for the first time since World War II, Iowa, general secretary of the Congress of Poland last year experienced negative popu­ South African Trade Unions (Cosatu), ap­ lation growth. Simultaneously, the number parently threatened to mobilize his union ap­ of marriages has collapsed, to the point that paratus to push for direct government con­ Infrastructure there were fewer marriages in Poland last trol of the independent Central Bank. year, than there were in Austria, a country Although the details are not reflectedin May China to launch Yangtze with one-fifth Poland's population. The ba­ 28 wire reports, economists from the Stan­ sic reason for this is economic: Young Poles dard Bank and South African universities in­ River development plan cannot afford the necessities that go along sisted that Shilowa be put in his place by with marriage. Sixty percent of married cou­ President Nelson Mandela upon Mandela's A meeting in Shanghai this summer of the ples in the 22-34 age-range live with their return from Germany. governors of the seven provinces in the parents, because they cannot independently Shilowa and his assistant Zwelinzima Yangtze River region (Jiangsu, Anhui, Hu­ afford housing. Vavi complained that their business counter­ bei, Jiangxi, Sichuan, Yunnai, and Qinhai), Last year, construction of new apart­ parts in negotiations on a labor pact treated will kick off the grandest regional develop­ ments reached the lowest level since World them as though they were stupid. "They ment plan in the recent decade, the Chinese War II. Simultaneously, there is a precipi­ thought we would easily swallow Thatcher­ paper Singtao reported from Hongkong in tous collapse in sectors such as shipbuilding, ite positions ....They did not contend with May. The plan is officially termed the Yang­ steel, coal mining, machine tools. The last us being able to put before them a well-re­ tze River Grand Development, and the meet­ industry was so advanced only two decades searched, coherent document. We are not ing could be as significantas the conference ago, that Poland was even exporting ma­ partners, we are opposing parties. If anyone on the new Eurasia land-bridge held in chine tools to the United States. There is also thinks we can kiss and hug, then they are Beijing in May. an emigration by many of the country's best wrong," Shilowa said. The Yangtze River region is given prior­ scientists, as spending for science by the On May 21, a South African source ex­ ity out of four economic regions outlined in governmenthas dropped from around 2% of plained to EIR that economic policymaking a supplement to the Ninth Five-Year Plan. net national income to around 0.5%. The ag­ has been effectively taken out of the hands The other three are the Pearl River Delta of ricultural sector is being undermined by of the African National Congress-led gov­ SoutheasternChina; the Bohai Bay region of "free trade" policies, through which low­ ernment: "All the macroeconomic model­ northeastern China, headed by Beijing; and priced foreign imports are undercutting do­ ling capacities have been shifted exclusively Tianjin. The Eurasia land-bridge region mestic production. to the Central Bank. ... So now we've got stands alone as the biggest but most underde­ What makes matters more dangerous, is some ANC ministers in place in the Finance veloped in the country. the grip on Polish economic policy of specu­ Ministry, the Trade Ministry, and so on, but Meanwhile, a new, 4,000-megawatt nu­ lator George Soros, and his spiderweb of there are virtually no economists in those clear power station on the Yangtze River is foundations and "academic" institutions. As places. The Finance Ministry, their job is ba­ under study by the China National Nuclear he himself boasts in published writings, it sically accounting." This shift, he said, was Industry Corp. and the Ministry of Power In­ was Soros who first brought shock-therapy accomplished prior to April 1994, when dustry.The plant would be built in Maozi­ fanatic Jeffrey Sachs of Harvard into Poland, Mandela came in: "We're pretty sure this shan in easternJiangxi province, and would back in 1988. The Polish branch of the inter­ was deliberate .. ..The plan was to monopo­ have four generating units, two to be in­ national pro-drug-Iegalization Soros Foun­ lize macroeconomic modelling capacities in stalled during 2001-05, Xinhua news dations is the Warsaw-based Stefan Batory the Central Bank. So you allow ANC minis- agency reported.

8 Economics EIR June 14, 1996 Briefly

SUDAN signed cooperation agree­ ments with Iraq on May 26, according to the Iraqi newspaper Jumhouriya. Agriculture Monetary Fund in the spread of disease. And three days before, Sudan and In the context of new and reemerging Iran agreed to expand cooperation in Business leadersdemand diseases, "it is frightening to see, that the oil, trade, technology, and construc­ WHO according to its own statements, has tion, according to the Iranian news no global plan to deal with this threat." Is the second GreenRevolution agency IRNA. WHO fit to deal with a new epidemic of the kind of the Ebola virus? The answer is The urgent need for a second "Green Revo­ CHINESE quarantine officershave clearly, "No," say the authors. They note that lution," to dramatically increase food pro­ burned five boxes of beef in the city in the last six months, the British Medical duction, was the demand of nearly all speak­ of Shenzhen, in order to stop British Journal has published a series of articlesre­ ers at a conference of the International beef from coming into the country, vealing WHO corruption, inefficiency, and Fertilizers Association in Berlin in May, Xinhua news agency reported on May mismanagement. Agra-Europe reported on May 28. 31. "The province's quarantine sta­ "Twenty-fiveyears ago the WHO led the If the world wants to fight hunger, agri­ tions will further strengthen controls international campaign to eliminate small­ culture has to be intensified,and all policies ...to prevent Mad Cow disease com­ pox. This was one of the biggest successes inhibiting food production, such as ecologi­ ing into China," the agency added. cal regulations and set-aside programs, have of the 20th century. However, today the WHO has stopped its campaigns to wipe out to be dropped, Mr. Thomaschewski of the NIR KANTOR, a former assistant diseases and instead has turnedinto an orga­ German industrial firm BASF demanded. vice president in the compliance de­ nization of conferences and study groups." The key to upgrading production is the in­ partment at Bankers Trust Securities, In the new WHO budget, expenditures crease of fertilizer input, better seeds, and was arrested on May 29, charged with for cOJ;lferences will be increased by 73%, greater mechanization, he said. illegally trading shares of at least nine while those for fighting diseases will be cut Speakers pointed to the fact, that input companies in 1994. Compliance of­ by 64%. of fertilizers is in general much too low. In ficers are assigned the task of moni­ Africa, it is 21 kilograms per hectare on aver­ toring employees to make sure such age, imd 52 kg/ha in South America, com­ illegal trading does not occur. pared to 189 kg/ha in the European Union. In Germany developing countries, only crops for export, BERLIN'S public debt, which was such as coffee, are regularly fertilized. How Standard of living DM 21.2 billion (roughly $13 billion) important fertilizers are, is being demon­ in 1991, will more than triple by 1999, strated in Russia, speakers said, where the fallsbelow 1980 level if present trends continue, the Berlin grain harvest declined from170 million tons, accounting officesaid on May 29, the to 63 million tons, mainly for lack of fertil­ The purchasing power of the average Ger­ Berliner Zeitung reported. The trend ization. man worker has fallen below the level of is attributed to loss of productive jobs 1980, according to a report by the Berlin­ and the wave of speculation and fi­ based Institute for Economic Research, the nancial fraud since reunification. SiiddeutscheZeitung reported on May 30. At Health the end of 1995, purchasing power had fallen JAPANESE banks announced on to within 3% of the level of 1980, and since May 24-27 their worst losses since New institutionneeded then, tax increases, price inflation,and other World War II, for the fiscal year end­ increasing expenses have reduced the aver­ ing March 31, due to massive write­ to fightdisease age consumer market basket below what it offs of bad loans. The II largest was more than 15 years ago. banks' losses were $13.8 billion, al­ The World Health Organization is unfit to The decline began in 1990, when the most entirely in loans to Japan's spec­ fulfill its task of fighting the global reemer­ government decided to increase the tax bur­ ulative real estate bubble of the gence of diseases and has to be replaced by a den on the working population in order to, in 1980s, engineered by then-U.S. Trea­ new international institution, Paul Dietrich, part, pay the illegitimate East German state sury Secretary Donald Regan. president of the Institute for International debt and the costs of increasing joblessness. Health and Development in Washington, Unemployment rose at staggering rates be­ ZIMBABWE'S Health Minister D.C., and Voldemar Ermakov, professor for cause of the government-promoteddeindus­ Timothy Stamps said that AIDS will internationalhealth at the Russian Academy trialization of eastern Germany, which has have killed altogether 270,000 people for Advanced Medical Studies, wrote in the killed no less than 80% of the industrial jobs by the end of this year, Associated Swiss daily Neue Zurcher Zeitun8 on May there in the last five years. Press reported on May 24. Unicef es­ 23. However valid their specific criticisms The news comes before the latest timates that by the year 2000, there of the WHO, the authors fail to mention the planned Bonn budget cuts in unemployment will be a half-million AIDS orphans, bigger picture of growing poverty, and the benefits,social welfare, and health care have 5% of the population. role of institutions such as the International gone into effect.

EIR June 14, 1996 Economics 9 TIillFeature

Beijing promotes Grand Designfor Eumsianprogress

by JonathanTen nenbaum

On May 7-9, over 460 experts and leading officials from 34 countries gathered in Beijing, China, to participate in an historic InternationalSym posium on Economic Development of the Regions along the New Euro-Asia Continental Bridge. The subject of the symposium was a grand strategy for developing the entire Eurasian landmass, by means of an integrated, transcontinental network of modem transport, energy, water, and communications infrastructure. Beij ing's hosting of the confer­ ence reflecteda major strategic policy thrust of the Chinese government,to promote economic development along the "New Silk Road" formed by the newly estab­ lished Eurasian Continental Bridge rail lines connecting the Pacificcoast of China with the Atlantic coast of Europe. Among the prominent guest speakers at the conference was Helga Zepp LaRouche, founder of the Schiller Institute and wife of U.S. Democratic Presiden­ tial pre-candidate Lyndon LaRouche-himself the chief proponent, internation­ ally, of the kinds of infrastructure-centered development policies, that were high­ lighted at the Beijing meeting. Following the symposium, Mrs. Zepp LaRouche was hosted as international leader of the Schiller Institute, at a series of seminars, lectures, and private meetings, including a memorable tour of one of China's most important high-technology projects. We feature here exclusive coverage of the Euro-Asian Continental Bridge symposium, with texts, maps, and selected excerpts from several of the most nota­ ble papers. There is also an article by Mrs. Zepp LaRouche, reporting her personal impressions of the great changes which have occurred in China since she last visited that country, as a young journalist, 25 years ago.

Two policy alternatives This is material of strategic importance-an importance which is underlined, perversely, by the fact that the major Westernpr ess has not published a single word about the Beijing symposium! Studying the materials in this package, the reader may well understand why. As the London-centered financial system reels and

10 Feature EIR June 14, 1996 i *Jmml&isl��I1im'�iJf 96' BEIJING INTERNATIONAL SYMPOSIUM 00 ECONOMIC DEVELOPMENT OF THE REGIONS ALONG THE NEW EURO'ASIA CONTINENTAL BRIDGE

The genie is out of the bottle: The convergence between Lyndon LaRouche 's policies, and the Beijing government's drive fo r a "New Silk Road" development program, caused great consternation among British representatives at the Beijing symposium on the New Euro-Asia Continental Bridge.

lurches at the brink of total disintegration, the fateful choice tion infrastructure. between only two, alternative policy courses, confronts the The obvious convergence between LaRouche's policies, world's nations with ever greater urgency: Either there will on the one side, and the significant momentum behind the emerge a cooperation among leading powers, to carry out a "New Silk Road" thrust in China and some other nations, on bankruptcy reorganization of the world monetary and finan­ the other, evidently caused great discomfort among British cial system, and rebuild the world economy on the basis of representatives. In speech after speech, leading officialsfrom large-scale infrastructure projects; or the collapse of the fi­ China's provinces proudly spoke of the impressive range of nancial system, under conditions of Nazi-like austerity, will infrastructure construction projects, already completed or in plunge humanity into a genocidal "Dark Age," during which progress in the regions along the new Eurasian Continental the human population would be reduced from its present Bridge. Indeed, large parts of China nowadays present the nearly 6 billion, to 100 million or less. astonished visitor with the image of a single, gigantic con­ As Lyndon LaRouche has emphasized, the chance for struction site, where railroads, roads, factories, and apartment preventing such a holocaust, rests mainly with the United complexes are springing up overnight. This, of course, is a States, Russia, and China. These three are the only world nightmare for all those British-style racists, who-like the powers that have an intrinsic common interest, as well as the perpetrators of the Club of Rome's "Limits to Growth" ability, acting in concert, to impose a financial reorganization hoax-hoped that the specter of industrialization of the against the opposition of a still-powerful British Empire. "Third World" had been buried once and for all. Indeed, look­ Helga Zepp LaRouche placed this issue squarely on the ing at China's "New Silk Road" strategy together with what table, in her presentation to a spellbound audience at the Helga Zepp LaRouche placed on the table in Beijing, London Beijing symposium. She emphasized Lyndon LaRouche's must be terrifiedthat "the genie is out of the bottle." Hence strategic plan for financial reorganization and establishment the thundering silence of the British-influencedin ternational of "Hamiltonian national banking" methods, as well as his media establishment, on the subject of the recent conference. global economic reconstruction program, which from 1988 The Euro-Asian Bridge symposium revealed some of the on has been centered on the "Productive Triangle" concep­ strengths, but also some of the important weaknesses, of tion: To develop Eurasia by means of an array of "dense China's strategic policy. infrastructure corridors," combining high-speed rail and mag­ On the one side, especially since 1993, China has refused netic levitation, nuclear power and other modern energy sys­ to give in to demands for the kinds of radical deregulation tems, waterways, water management systems, and advanced and privatization policies, by means of which the friends of communications networks, together with health and educa- Margaret Thatcher and Henry Kissinger have "successfully"

EIR June 14, 1996 Feature 11 The chief Eurasian Continental Bridge rail lines

iii•• (New DeIhl)·

!flf§lj( KEY) (the First Continental - ___ 1R-;I:;:I!iIiii'f Bridge)

--- jg=;I:;:I!iIiii'f (the Sorond Continental Brida.)

ill!1&X*�m/J'�� (Sketch Map of Euro - Asian Continental Bridges)

Courtesy of Gao Zhengang, Editor, "A Study on the Strategic Significance of the New Euro-Asia Continental Bridge: Jinan, 1996.

destroyed the former Soviet Union and most of the developing Africa, Ibero-America, the former Soviet Union, and so on? nations. The stubborn insistence of China's leadership on While Beijing insists on maintaining the economic sover­ maintaining China's economic sovereignty, is the most obvi­ eignty of China, it abstains from attacking the supranational ous cause for Sir Leon Brittan's public fit of infantile rage, institution and policies that are destroying the sovereignty of during the Beijing symposium. Chinese leaders have repeat­ most other nations. And yet, what could be more dangerous to edly emphasized: With its 1.2 billion population, and an un­ China's national security, than a potential civil war in Russia, broken historical and cultural tradition going back over 4,000 made possible by the continued toleration of the IMF's so­ years, China is not going to take orders from anybody. called reform policies? These paradoxes bear on the axiomat­ It is relevant to note, that Lyndon LaRouche's analysis of ics of foreign policy: the axiomatics of Chinese leaders' per­ the collapse function of the world financial system, has been ception of the workings of the world outside China. the subject of numerous articles in leading Chinese economic The Chinese government's promotion of the "New Silk journals. LaRouche's work is being closely studied. Road" strategy for Eurasian development is more than laud­ On the other hand, one must ask, how is it possible, that able. It is a crucial contribution to the potential for mankind such puffed-up bullies as Sir Leon Brittan-or London's fa­ to survive the present crisis. However, the "New Silk Road" vorite asset, Sir Henry Kissinger-could continue to be re­ will not work, unless the deeper axiomatic issues are re­ ceived in Beijing as "great friends of China"? Why does solved-issues which bear upon the prospects for the United Beijing go out of its way to maintain overtly friendlyrelati ons States, Russia, China, and other countries, which wish true with the International Monetary Fund and World Bank, whose development as sovereign nations, to establish a common policies are largely responsible for destroying the nations of basis for action in the immediate period ahead.

12 Feature EIR June 14, 1996 Conference in Bejing: toward a new 'continentalbri dge era' for Eurasia by Mary Burdman

A committed group of national leaders of China, Iran, and One book distributed to the participants, on the history of other nations along the Eurasian Continental Bridge, from the Euro-Asian continental bridge, even refers to "the 'can­ Asia to Europe, presented their vision of a new, "continental tata' of the continental bridge" (see box). bridge era" in human history and development, at the Interna­ There were some 60 papers presented at the symposium, tional Symposium on Economic Development of the Regions many with high-level technical content, by governmentoffi­ along the New Euro-Asia Continental Bridge, held in Beijing cials, representatives of railroad and energy ministries and May 7-9. The meeting was organized by the State Science international organizations, shipping companies, and other and Technology Commission, the State Planning Commis­ institutions, providing detailed information on the currentand sion, and Ministry of Foreign Trade and Economic Coopera­ potential infrastructure development of the continental tion of the People's Republic of China. It was the result of bridge. One session was dedicated to projects for reclaiming two years' effort by its organizers, to promote development desert areas, water management, and other measures to im­ of the "Silk Road" railroad connecting Asia and Europe. The prove the terrain through which the railroad passes-which United Nations Development Program, World Bank, Euro­ borders some of the greatest deserts and highest mountains pean Commission, and Asian Developm< m Bank, were on Earth. among the co-organizers. During the conference, Prime Minister Li Peng an­ The symposium agenda was "the linkage between East nounced to a selected group of delegates, that the new railway and West," epitomized by the September 1990 "historic con­ linking Asia and Europe, is the "new Silk Road for the twenty­ nection of the railway between China and the former Soviet firstcentury," and that the Chinese government hada "cooper­ Union." Yet, there was a "clash of cultures" at the conference, ative attitude" to development and cooperation among the between the policy of economic development and peace, on nations along the railroad. the one side, and, on the other, the British Empire's geopoliti­ Iranian Deputy Minister of Foreign Affairs A. Broujerdi, cal machinations to prevent the creation of a flourishingEur­ in his speech, proudly announced that his nation was about asian continental bridge-a British policy that has launched to celebrate the opening of the "Iron-Silk Route" railroad two world wars in this century. (Mashhad-Sarakhs-Tajan), built over the mountains between This was not the "clash of civilizations" of ArnoldToyn­ Iran and Turkmenistan. Many Chinese national and provin­ bee, Bernard Lewis, and Samuel Huntington-that British cial officials spoke at the conference, emphasizing the eco­ imperial fabrication which is an attempt to "divide and con­ nomic achievements of their areas, and how the continental quer" the very nations committed to building the Eurasian bridge will foster greater development. continental bridge. The clash of cultures in Beijing, was that between the policies of the nation-builders and the imperial Demands of 'the Empah' deconstructionists. However, the imperialists also made their presence felt. The national leaders addressing the conference presented Vice-President of the European Commission Sir Leon Brit­ a vision they have worked hard to realize since 1985, when the tan, a co-chairman of the symposium, delivered a rude dia­ railroad into northernXin jiang, which made the connection to tribe, announcing that China and all other nations along the Central Asia and Europe possible, was built. The concept of continental bridge must comply with the demands of "the a "continental bridge," put forward by the Chinese organizers market"-i.e., the current world financialsy stem totteringon of the symposium, is to actually create new, man-designed, the brink of collapse-and "international obligations" -the economic regions, enabling mankind to bring human society demands of various supranational institutions such as the Eu­ and civilization to the 80% of the Earth's surface now too ropean Commission, United Nations, and World Bank. If not, desolate for such development. Using the most advanced he warned, "the market" will see to it, that the project will technologies, including the maglev train and nuclear energy, fail. To add insult, he then, at the opening ceremony of a all regions of Europe and Asia, Africa, and the Americas, can conference on Eurasian railroad development, demanded that be brought into the "continental bridge era." China toe the imperial line on the World Trade Organization

EIR June 14, 1996 Feature 13 and the free market-issues not on the agenda. Another Brit­ With the rapid development of modem science and technol­ ish delegate was Nicholas MacLean, of the Union of Indus­ ogy, "the construction and opening of the New Eurasian Con­ trial and Employers Confederations of Europe and the British tinental Bridge will once more brighten the Silk Road, which Royal Society for Asian Affairs. In the old "Great Game" had once made great contribution to the spreading of ancient tradition of British manipulation, MacLean told how he had civilization and traditional friendship," he said. Since, as the "travelled the silk route," and gave a speech calling for the Chinese proverb holds, "Everything is difficult at its begin­ Eurasian nations to tum to roads, air routes-i.e., everything ning," cooperation is necessary-but, he stressed, there must except railroads-and emphasizing the importance of be adherence to certain principles, especially respect for na­ "prices" in determining use of the Silk Road. tional sovereignty, and achieving common economic devel­ There were other anomalies at the symposium. One was opment as the way to resolve international problems. With a the lack, outside of presentations by the delegates of the Schil­ "strategic view focusing on the future," and "economic devel­ ler Institute, of discussion of the imminent collapse of the opment as the first priority," the continental bridge nations current world financialsyst em-although there is certainly a should seek "common ground, while reserving differences, group, among China's highest-level officialsand economists, and common development as priority when handling the is­ aware of the dangers represented by the "financial AIDS" of sues between countries," Minister Song said. "A thousand­ the current system, including the disaster in Mexico and the mile journey starts from the first step," which is the purpose Barings Bank debacle. of this symposium, he said. At the beginning of the twenty­ A second anomaly was the lack of representation of Rus­ firstcentury, "we should revitalize the Silk Road which stands sia, a nation obviously indispensable to the development of for the essence of opening-up, civilization, evolution, and Eurasia. There is no question of the importance both Russia friendship. " and China accord to their mutual relations, especially after In his speech to the conference plenum, Rui Xingwen, the state visit of President Yeltsin to China April 23-26. This chairman of the China Development and Promotion Commis­ visit, Russian officialsannounced, consolidated Russian-Chi­ sion of the New Euro"Asia Continental Bridge, stated: "Obvi­ nese relations "within the framework of constructive partner­ ously, continental bridge transportation is just unfolding, and ship." During President Y eltsin' s visit, the leaders of five its rise will initiate a great revolution in the history of the countries-Russia, China, Kazakhstan, Kyrgyzstan, and Ta­ world's communications and push forward the world's com­ jikistan-met in Shanghai, to sign the historic, first-ever munications and transportation into a new stage. . .. It is agreement on military confidencein the border areas in Asia. imaginable that the future human society will neither be hin­ That there were no speakers from Russia at the Beijing dered by oceans, nor be frustrated by severe cold, altitude, or symposium, although the invitation had listed a deputy prime desolation any more ....People can take advanced civiliza­ minister of Russia as among the four honorary chairmen, can tion and prosperity to the vast, backward land-locked regions only be attributed to the current intense and very uncertain ...to form new environments for the existence and develop­ political situation within Russia. ment of human society."

The 'continental bridge era' Zepp LaRouche: man's universal quality Building continental bridges, will take humankind into a To these ideas, Schiller Institute founder Helga Zepp new era of development, independent of seacoasts, rivers, or LaRouche brought the principle, that the unique potential of other natural transport modes. "The continental bridge trans­ human creative reason can take mankind to the level on which portation that is referred to now, is none other than the interna­ any conflict can be resolved. Mrs. Zepp LaRouche led her tional through-transport which takes the railway as its chief institute's delegation of Dr. Jonathan Tennenbaum and this means, and containers as its medium, combines various author, to the conference. Mrs. Zepp LaRouche and Dr. Ten­ modes of transportation, such as ocean shipping, aviation, nenbaum, were invited speakers at two of the three, day-long highway, river transport, and pipelines, runs across a conti­ workshop sessions held by the conference on May 8. The still­ nent, and links up the sea with the land 'pervading the whole much-too-influential "balance of power" politics and "clash way,' " states the Study on StrategicSignificance of the New of civilizations" propaganda, is nothing other than an intelli­ Euro-Asian Continental Bridge. The authors, a group of gence operation, Mrs. Zepp LaRouche said. "There is no such prominent Chinese officials and economists, endorse the use contradiction among world cultures, that cannot be overcome. of modem transport, particularly the magnetic levitation To the contrary, it is the characteristic of man, which differen­ (maglev) train, with the potential to run at 500 km an hour. tiates him from all other living beings, that he possesses the In his keynote speech May 7, Minister Song Jian, State unique quality of creative reason. This is the universal quality Councillor of China and chairman of the State Science and which unites all men, and allows man to findthe ever-higher Technology Commission, emphasized the 2,000-year-long levels, on which conflictscan be solved. In China, this philos­ history of the Silk Road connecting Europe, Africa, and Asia. ophy has been well known since the contribution of the great

14 Feature EIR June 14, 1996 universal thinker Confucius." GNP, which gives a monstrously distorted picture of eco­ She described how her husband, American economist nomic reality. Instead, he said, we must use the criteria pro­ Lyndon LaRouche, "based on this thinking ...proposed an vided by the science of physical economy. Economic plan­ economic program, the foundation-stone of which is that only ning must be based on "density functions." The most the global reconstruction of the world economy can create a advanced technologies must be used to build basic economic way out of the present crisis ....The strategic reality affecting infrastructure in the most concentrated way, in the "corridors" every region, is the fact that the presently hegemonic financial along the continental bridges. The gigantic scale of infrastruc­ system is in the end-phase, before its collapse." She outlined ture investments required today, he said, can only be achieved how a new world economic system could be organized by through the use of "Hamiltonian" modes of productive credit­ sovereign national goverments. "We have to decide," she con­ generation by sovereign nation-states. cluded, "how we ourselves want to be regarded by future generations." Do we leave them greed and chaos, or do we The Iron-Silk Road face humanity'S crisis of existence, with all that is great and Another remarkable intervention, was the speech by Iran­ noble, "to win out of it the inspiration for a new renaissance?" ian Deputy Minister of Foreign Affairs A. Broujerdi, announ­ In his presentation on economic planning, Dr. Tennen­ cing the May 14 opening of the Mashhad-Sarakhs-Tajan rail­ baum said, that it is essential to discard calculations based on way, which he described as "this grand project of the century."

Strengthening the cooperation with the hinterland and making a good job of the "cantata " by the line of the 'The Cantataof Continental Bridge There is a close relationship of interdependence be­ theContinental Bridge' tween the port and the hinterland, and between the bridge­ head and the economic zone along the line of the Continen­ Th efollowing excerptfrom the book A Study on the Strate­ tal Bridge. The bridgehead serves as a "door," while the gic Significance of The New Euro-Asian Continental economic zone, as a "backyard," or "base." Therefore, the Bridge, edited by Gao Zehngang,deputy mayor of the port authorities of Rizhao City have set up the principle of city of Rizhao in Shandong province, indicates the level "setting feet in the city, serving the hinterland, developing on which Chinese offi cials are thinking, to develop their in cooperation and sharing the development and prosper­ nation. Mayor Gao not only refe rs to the relations between ity," and have taken the creation of a fine environment of city andhinte rland development as a "cantata, " but also service as a measure of great strategic significance. For says, that to develop his cityinto a world-class port on the this reason, the following points are stressed: scale of the great port cities of Europe, it is required to To strengthen the consciousness of serviceby emanci­ free the population from peasant-like thinking, epitomized pating the mind in the Chinese expression, "Do not let the wholesome wa­ Efforts have to be made to lead the whole city in break­ ter flow into others ' fields. " ing away from the conservative, localistic idea featured by * * * "do not let the wholesome water flowinto others' fields," To do a good job in effecting "the 'cantata ' of the Conti­ and in adopting a concept of viewing the situation as a nental Bridge, " fe atured by the strengthening of the eco­ whole featured by the idea of "the bridgehead and its hin­ nomic cooperationbetween the bridgehead and the Conti­ terland share the same boat," so that every citizen can fu lly nental Bridge zone realize that the city will not be able to fulfillits supposed The relationship between the bridgehead and the Con­ role as the bridgehead and a port city, if they view the tinental Bridge economic zone is one of mutual promotion matter only from the angle of the city itself, and that only and common development and prosperity, as the bridge­ by cooperating with the hinterland, will it be possible to head serves as the "dragon head," "display window," and compete in both the domestic and world markets and tum, "pivot," while the economic zone serves as the "back­ at the earliest date, the great potential held by the city as yard," "basis," and "backing force." That is why the "Con­ the easternbridgehead of the the New Continental Bridge tinental Bridge cantata" should be made a good job fea­ into actual productivity. And thus, the continuous emanci­ tured by the further strengthening of the economic pation of the mind, and strengthening of the consciousness cooperation of the bridgehead with the Continental of serving, will lay an ideological basis for further expand­ Bridge zone .... ing the hinterland and enhancing regional cooperation ....

EIR June 14, 1996 Feature 15 Main land routes of the silk trade, circa 1100 A.D.

Source: The Silk Road on Land and Sea, China Pictorial Publishing Co.

The "Iron-Silk Route," Minister Broujerdi emphasized, was mitment of individual states and their international partners." the result of the collaborative work of nations, not interna­ During the conference, official representatives of Mongo­ tional agencies. It "was finished by our experts and with the lia, Kazakhstan, and the Democratic People's Republic of help of the brotherly country of Turkmenistan, without any Korea, announced their ongoing, or planned, cooperation international assistance," he said. "We have now constucted with the continental bridge. Kazakhstan and China, among the missing link in Euro-Asian railway network." He took th� many other agreements, have agreed to joint use of the Chi­ opportunity, "to express our appreciation for the cooperation nese Pacificport ofLianyungang, a great benefitto landlocked of the government of China in constructing segments of the Kazakhstan. Razdak Sandalkhan, minister of infrastructure railway network, to make possible the first running of a train development of Mongolia, said his nation is "interested in ... from Lianyungang port to Tashkent in November 1995. The connecting to the New Euro-Asian Continental Bridge. Jong nations of the region and the world will now see the fruits of U Kim, chairman of North Korea's Committee for Promotion collective and regional effortfor greater economic prosperity of External Economic Cooperation, said that, "by beginning, and well-being." we are already halfway there." North Korea, he said, "will Plenum speakers included Ling Syargei, deputy prime actively cooperate with the Eurasian Bridge plan." minister of the Republic of Belarus, who emphasized The impact of the Schiller Institute presence was made "achievements in establishing a market economy," and inte­ clear on the last day of the conference. In the final general gration of Belarus with the "European transport corridor," meeting, reports were given on the three programs of the day from Germany and Poland, to Belarus. Mr. Yongjian, United before. The rapporteur on the "Trade and Economic Coopera­ Nations Under Secretary-General for Development Support tion" workshop told the assembled 400 delegates: "We had and Management Services, stated that, for the nations of Eu­ many helpful suggestions on the conference ....One was that rope, Central Asia, and other countries belonging to the Com­ there should be more contributions by women. It was the munity ofIndependent States (CIS), and East Asia, "the basic sense of the leaders of our workshop, that the best contribu­ need is the construction of the New Euro-Asian Continental tions were by women. These included by the president of Bridge." He noted that "the United Nations can act as a facili­ the Schiller Institute, and the director of the Development tator and communicator, but it cannot substitute for the com- Research Center of the State Council."

16 Feature EIR June 14, 1996 Sir Leon's diatribe in March. The speech of Sir Leon Brittan, the representative of the However, it should be noted, that Asian nations, espe­ European Commission, to the conference plenum, was outra­ cially the Republic of Korea, put building the Eurasian rail­ geous. Sir Leon has had previous conflicts with the Chinese road on the agenda in Bangkok. government. In March 1994, during a visit to Beijing in his It is possible, that Sir Leon's offensive behavior caused role as then-EC Trade Commissioner, he demanded that reactions among China's government leaders as well. The China comply with the British Empire's free-trade (looting) Beijing symposium, the invitation announced, had been policies in order to join the future World Trade Organization scheduled to take place in the Great Hall of the People, "the (WTO), something China has refused to do. Sir Leon was most important center of political, economic, cultural, and then subjected to a frosty public reprimand by Mme. Wu Yi, diplomatic activities in P.R. China." While there is no ques­ China's minister of foreign trade, when she noted at a joint tion of the view of the Chinese government,as to the strategic press conference, that Sir Leon was acting as a "native of the importance of the continental bridge, it is possible that the United Kingdom," when he threatened that the entire Euro­ symposium was moved to the Beijing International Conven- pean Community would retaliate for any attempts by China to "discriminate" against trade with Britain. At issue were British machinations against Beijing in its Crown Colony of Hongkong. Sir Leon was incensed; the press conference was Thecon ference was the scene of a shut down. "clash of cultures " between the At the continental bridge symposium, Sir Leon retorted policy of economic development and to Minister Song Jiang's principles of national sovereignty and common development, with the demand that the interna­ peace, on the one side, and, on the tional private sector be in charge. "It is clearly important to other, the British Empire's ensure that infrastructure planning is soundly market-based. geopolitical machinations to prevent ... The critical mass of funding cannot be based on govern­ ment contributions .... the creation of aflourishing "To put it bluntly, demand to use a land-bridge between Eurasian continental bridge-a Europe and Asia will only be high if certain political condi­ British policy that has launched two tions are met: ...there must be stability and a prospect of continued peace, there must be sound independent economic world wars in this century. structures that allow transporters and economic operators to get on with their business free of the fear of arbitrary or discriminatorygovernment attention. Only ifthese conditions are met will foreseeable demand for use of a bridge grow tion Center, in reaction to the unacceptable rudeness of the to a level where the necessary capital can be attracted," he European Commission's representative. threatened. He then proceeded, yet again, to raise the issue of But the British imperialists got their comeuppance. Not the WTO, claiming that "Chinese negotiations for the WTO only were Helga Zepp LaRouche and Jonathan Tennenbaum are not, I fear, a subject for optimism today .... WTO is able to place Lyndon LaRouche's name and policies before a rules-based organization, and we cannot engineer China the conference, but delegate Mary Burdman also spoke from membership on false terms." Sir Leon, the guest of the Chi­ the floor in one workshop, on the political battle in the West­ nese government, went on menacingly: "If China were a especially the United States-between the nation-builders, WTO member, then the prospects for continued economic and the free-trade looters. She said that, while she is always liberalization and development would be surer and a land­ impressed, on coming to China, with the commitment of its bridge would be more attractive as a result" (emphasis added). people and leaders to national economic development, never­ Sir Leon's behavior angered conference participants from theless the people of China and Asia, in order to understand Europe and Asia. The European Commission, and Sir Leon the current world situation, must also understand that there directly, had acted, more than once, to delay the symposium, are two, opposing traditions in the West. One, is the American which was rescheduled several times since late 1994. His System tradition that built the United States, Germany,Japan, motivation could be accounted for by the desire of his imperi­ Russia, into industrial powers, and was the inspiration for Dr. alist circles to hold first the Asia-Europe Meeting, designed Sun Yat-sen. Lyndon LaRouche is now the leader of this by the EC, at least, on the theme of Europe and Asia without tradition. Opposing this is the oligarchical, free-trade policy, Eurasian development (see EIR, March 22, p. 52). Sir Leon centered in the City of London, which has, among other began his speech by noting that the Beijing conference "has things, utterly destroyed the economy of Russia. Britain's come to fruition at ex,actly the right time, just eight weeks MacLean, who was in the workshop audience, turned red, at after the historic Asia-Europe summit meeting" in Bangkok these words, and was barely able to maintain his aplomb.

EIR June 14, 1996 Feature 17 brighten the silk road, which had once made great contribu­ tions to the spread of the ancient civilization and traditional friendship, and will offer new opportunities and provide a Secure peace through strong base for the expansion of economic cooperation, trade relations, and technical exchanges among the countries along mm the bridge. co on development Today, we gather in Beijing to discuss the regional eco­ by Song Jian nomic development along the new Eurasian continental bridge, to seek new channels and forms of cooperation on economy, trade, and technology between Europe and Asia, to The fo llowing is the speech at the opening ceremony at the shoulder the task created by our predecessors, and to make International Symposium on Economic Development of the our contribution to the mutual prosperity of Europe and Asia. Regions along the New Euro-Asia Continental Bridge (May 7-9) in Beijing, by Mr. Song Jian, State Councillor of the Some principles People 's Republic of China, chairman of the State Science Now, the regional economic development along the new and Technology Commission, and chairman of the State Envi­ Eurasian continental bridge is faced with good opportunities. ronmental Protection Commission. The Euro-Asia summit meeting held this March in Bangkok reflects the common wishes and requirements of Eurasian Mr. Co-Chairmen, distinguished delegates, ladies and gentle­ countries to establish a new type of partnership in facing up men, I am honored, as the chairman of this symposium, to to the twenty-first century, as well as to strengthen dialogue, announce the opening of the International Symposium on deepen economic relations, and expand cooperation in order Regional Economic Development along the New Eurasian to adapt to the historical trend. However, the development Continental Bridge. I would like to take this opportunity to along the new Eurasian continental bridge is still at a primary sincerely thank Your Excellency Mr. Leon Brittan, Mr. Jing stage, and there are some problems and issues caused by eco­ Yongjian, Mr. Ling Syargei, and Mr. James Gustave Speth nomic and non-economic factors yet to be solved. As men­ for your support and co-chairing of this conference. At the tioned by a Chinese proverb, "Everything is difficult at its same time, I would like to extend my warm welcome and beginning," we need cooperation of all countries and regions sincere greetings to all participants attending the symposium. along the bridge and the internationalcommunities to address We have a long history of economic and trade cooperation these issues and to solve these problems. In this respect, we as well as cultural exchanges between Europe and Asia. Dat­ advocate some principles as follows: ing back to over 2,000 years ago, during the Hanwu Emper­ • Identify economic development as the firstpriority and or's reign in the Han dynasty, when the only land transporta­ respect national differences. Different countries along the tion corridor, namely, the Silk Road, was opened, which bridge possess different features of geography, cultural tradi­ connected Europe, Africa, and Asia, groups of commercial tion, religious belief, and customs, and have different political "camel forces" crossed mountains and traveled in areas and economic systems at different levels of development. amidst China, Central Asia, West Asia, South Asia, Europe, We advocate sticking to the principles of seeking common and North Africa, and spread the seeds of civilization and ground, while reserving differences and common develop­ friendship among the countries along the road. With the revo­ ment as a priority when handling the issues between countries, lution of the traditional international transportation pattern, so that the dynamics and prospective future of the regional resulting from the rapid development of modem science and economic development along the new Eurasian continental technology and international trade, which expedited the ex­ bridge can be secured. press, highly efficient, and reliable multicontinental system • Adhere to the principle of reciprocal benefit, comple­ of integrated transportation taking shape, and hence, pushed mentarities, and common development. The countries along the civilization of mankind into a new stage, the world is the new Eurasian continental bridge have their own advan­ becoming small and the distance between east and west is tages with complementary characteristics in the formation becoming shorter and shorter. and development of the land bridge economy. Europe pos­ The brand-new era for the people in every country has sesses developed economy, advanced technology, and suffi­ come, in terms of cultural exchanges, trade, and economic cient capital, while Asia has seen fast and dynamic develop­ and technical cooperation between one another. On Sept. 12, ment of its economy in the recent couple of years, marked with 1990, the historic connection of the railway between China large markets as well as high investment returns. Therefore, it and the former Soviet Union was accomplished at Alataw is possible for the countries and regions along the bridge to Pass, which marked the completion of the new comprehen­ carry out bilateral or multilateral economic and trade coopera­ sive transportation line connecting the Pacific and the Atlan­ tion to achieve mutual benefits. tic, and crossing Europe and Asia. The construction and open­ • Adhere to the development strategy of facing up to ing of the new Eurasian continental bridge will once more the future and development in sequence. The new Eurasian

18 Feature EIR June 14, 1996 continental bridge goes across the midwest part of China, construction of railway infrastructure and the strengthening Central Asia, and West Asia, and at the current stage it is of the coordination concerning the mechanism, management, necessary to strengthen the coordination on the operation and and services of the multinational railways. Furthermore, th� management of the land transportation channel already con­ multinational network incorporating telecommunications, nected. I hope that the countries along the bridge take a strate­ highways, civil aviation, pipelines, and ports in accordance gic view focusing on the future and take a down-to-earth with railroad transportation, should be set up accordingly, attitude for partial implementation. thus to make full use of the efficiency and effectiveness of the transportation. Comprehensive planning • Secondly, to strengthen policymaking and coordina­ The Chinese governmentattaches great importance to the tion on the improvement of the investment and trade environ- good opportunities resulting from the development of the new Eurasian continental bridge, and is willing to expand Eurasian economic cooperation, and secure the peace, stability, and At the threshold of the twenty-jirst prosperity of Europe-Asia and the world as a whole. The century, we should revitalize the Chinese government has mapped out a series of measures and taken actions to push the development, opening-up, and SilkRoad, whose essence stands construction of the China section along the new Eurasian fo r opening-up, civilization, continental bridge in recent years. With respect to the soft evolution, andfriendship. environment, China has projected the guidelines for the devel­ opment patternof the cities and towns along the bridge; com­ pleted the remote-sensing research on the 4,131 kilometer­ long and 200 kilometer-wide area in China along the bridge, ment. The new Eurasian continental bridge should not be and conducted initial analyses on natural resources and envi­ regarded merely as a transportation line, but also an important ronment; placed the sustainable development of the area of tie linking the commodities flow, technical exchanges, cul­ China along the bridge on the priority list of the China Agenda tural communication, and the friendship between the people 21; in 1996, the Chinese government incorporated the con­ of Euro-Asia. It is necessary to carry out the pre-feasibility struction of the Eurasian Continental Bridge Economic Zone studies on the managerial system of transportation, the cus­ into the Ninth Five-Year Plan and the Outline of the 2010 toms, and trade, as well as investment risks and intellectual Long-Term Development Target, in order to make planning property, so as to facilitate the bilateral or multilateral cooper­ comprehensive and to quicken the development pace. ation and coordination. With respect to the hardware construction, China has suc­ • Thirdly, to carry out activities of poverty alleviation, cessively completed the construction of some double-track­ focusing on improving the environment and tapping man­ ing railways, the expansion and rehabilitation of relevant har­ power resources. The central part of the new Eurasian conti­ bors, and the construction of Euro-Asia optical cable nental bridge is endowed with rich resources and has large communications engineering in the China part, and other ma­ potentials for development. But the eco-environment is frag­ jor infrastructurepro jects. The high-level highway from Lia­ ile and some people are still very poor. The construction and nyungang to HurgoslXijiangis under construction. The grad­ development of the continental bridge provides the new op­ ual perfection of such major infrastructure will play its portunities of employment for these people which are condu­ positive role in the course of the regional economic develop­ cive to poverty eradication. Farsighted politicians and entre­ ment along the new Eurasian continental bridge. preneurs will also be paid offfrom this cause. Ladies and gentlemen, I believe, in the near future, with Aim to reach agreement the further development of the regional economy along the "A thousand-mile journey starts from the firststep ." This new Eurasian continental bridge, and through the concerted conference is a good beginning. I would like to suggest that efforts made by the peoples of each country and the interna­ discussion concerningthe following issues will be conducted tional communities, a dynamic economic corridor along the at this conference so as to reach consensus and make deci­ new Eurasian continental bridge, supported by the large- and sions, and thus enable the conference to be fruitful and pro­ medium-sized cities alongside it, will take shape. The corridor ductive. will be outstandingly characterized by the integration of the • Firstly, to conduct study on the measures to quicken east and the west, two-way development, mutual promotion, the construction of infrastructure facilities in which railways and common development. At the threshold of the forthcom­ are emphasized. The precondition for the formation and de­ ing twenty-first century, we should revitalize the Silk Road, velopment of the New Eurasian Continental Bridge Eco­ whose essence stands for opening-up, civilization, evolution, nomic Zone is the smooth operation of the railway, while the and friendship. target is to secure the safety, punctuality, and swiftness of the I wish the conference great success, and sincerely hope transportation lines, and this can be reached through the fast that every delegate will enjoy your stay in Beijing.

EIR June 14, 1996 Feature 19 for the connections which this symposium is setting out to build. It is therefore not by accident thatthe Bangkok meeting referred in positive terms to both the concept of multicountry economic development strategies within the Asia region, for example, in the Mekong region, and the need to study the China must play by prospects for land connections between the two ends of our continent. 'free trade' rules The political will is there. But what needs to be done? This symposium is rightly focusing on three issues: how to by Sir LeonBrittan build the necessary infrastructure, how to provide a frame­ work for cooperation and to ensure sustainable development among all the partners along the continental bridge. The fo llowing remarks by the Rt. Bon. Sir Leon Brittan, vice president of the European Commission, were delivered in Infrastructure Beijing, on May 7 under the title, "Economic Development Turning first to infrastructure, it is clearly important to along the Euro-Asia Continental Bridge. " ensure that infrastructure planning is soundly market-based. We in governmentmust ensure that businessmen are brought The European Commission is pleased to be able to support into our planning process fromthe start, so that the infrastruc­ this important symposium, and I am grateful to our chairman, ture we build is the right infrastructure. This need not rule out Mr. Song Jian, for inviting me to take part. The task of creating pump-priming contributions from central government, but an adequate infrastructure for cooperation between Asia and the critical mass of funding cannot be based on government Europe is indeed immense. At the end of the century of space contributions. As we are discovering in Europe, where we are travel and space age telecommunications, it is perhaps ironic trying on a smaller scale to build Trans-European Networks, that we are struggling to recreate something of the land-based we cannot escape the market, but must rather work with it. connection that existed 500 years ago. But if we can recreate This emphatically does not mean that big projects are them, with the full benefitsof moderntechnology, the stimu­ impossible. Already in Asia, as in Europe, Build-Operate­ lus to growth and well-being in China and in the European Transfer contracts are a familiar tool. They are particularly Union will more than justify our efforts. suited to transport links, where user fees can generate the necessary revenue during the initial operating period to attract Asia-Europe cooperation private funding for even dauntingly large projects of the sort This symposium has been carefully planned over a long that this symposium must address. The problem will not be period. But like all the best projects, it has come to fruitionat the techniques, but the prospects for a healthy rate of usage. exactly the right time, just eight weeks after the historic Asia Europe Meeting [ASEM] that was held in Bangkok in March. A framework for cooperation Heads of state and government from China, the European And that brings me to the second point-the need for a Commission, the European Union member states, and a large sound legal frameworkfor inter-regional cooperation. To put number of other East Asian countries met to give their per­ it bluntly, demand to use a land-bridge between Europe and sonal commitment to the strengthening of ties between our Asia will only be high if certain political conditions are met: two regions. There must be peace along the land-bridge, there must be The dialogue in Bangkok was concrete and constructive. stability and a prospect of continued peace, there must be We have agreed a forward program: There will be not only sound independent economic structures that allow transport­ further meetings at the highest level, but a wide range of ers and economic operators to get on with their business free follow-up actions to be implemented in the interim by minis­ of the fear of arbitrary or discriminatory government atten­ ters and senior officials. Unlike APEC [Asia Pacific Eco­ tion. Only if these conditions are met will foreseeable demand nomic Cooperation forum], which concentrates on economic for use of a bridge grow to a level where the necessary capital issues, ASEM deliberately covered both economic and politi­ can be attracted. cal issues, and follow-up will be the responsibility both of On this score, the picture so far is mixed. I would pay economic and of foreign ministers. tribute to the great strides made by the governmentof China, What is the relevance of the Bangkok platform to the by the countries of easternEurope, and by many of the inde­ objectives of this conference? I am not suggesting that every pendent states which grew out of the former Soviet Union. country along the continental bridge must participate in Their governments are tacklingwith courage and determina­ ASEM, if ASEM is to be useful. But the fact that countries at tion a Herculean task of economic reform and regeneration. both ends of the bridge are turning theirattention at the highest This is necessarily a long-term exercise, with ups and downs level to closer cooperation suggests that there is a real need along the way. In the industrialized countries, we have found

20 Feature EIR June 14, 1996 it helpful to make a common front against protectionist pres­ sures from special interests by joining together in interna­ tional commitments to sustain open economic policy. That is the real value of membership of the World Trade Organiza­ tion, or of the OECD [Organization for Economic Coopera­ tion and Development]. That is why I have favored consis­ tently in my role as vice president of the European Commission, the fastest possible negotiations for Chinese membership of the WTO, for example, or of easternEuropean accession to the OECD. Chinese negotiations for the WTO are not, I fear, a subject for optimism today. Very few observers believe that the pros­ pects of an early breakthrough in talks are great. I continue to believe that China wants to be in the WTO as much as we want China to be a member. But WTO is a rules-based organi­ zation and we cannot engineer China membership on false ' terms. There is good will on both sides, but we must look carefully at the details of the deal. What the WTO members need from a new applicant is a clear indication of the appli­ cant's commitment to accept the rules of the WTO, all the rules. European Commission Vice President Sir Leon Brittan arrogantly demands that "certain political conditions " be met, as a Once that is clear, there is very wide discretion for the preconditionfor supportfor the Euro-Asia Continental Bridge: WTO to allow transitional periods, which can be substantial, namely, that Britishfree-traders run the show. in which a new member can adapt its economy to the require­ ments of WTO. We certainly need a substantial down-pay­ ment of commitments by China at the moment of entry, com­ As this conference is taking place in China, I venture to bined with an agreed timetable to meet these commitments remind the audience how important a liberal and least-cost during the transitional period. But the changes that this pro­ telecom network is to support not only a vibrant national cess will require are in China's interest, and are not a series industry, but also for all our countries' efficiency on world­ of one-sided concessions being sought by foreign interests at wide markets. the expense of the Chinese people. If this is accepted on both Indeed, telecommunication is a key part of the land-bridge sides, I believe we ought to be able to do a deal on this basis. we must build. As you all will know by now, we failed to It is often put to me, that in fact China does not need to conclude the negotiations. join WTO at all costs, because the process of economic reform For Europe, this was a surprise and a disappointment. is irreversible and will continue in future, irrespective of We had consulted closely at the political level with the U.S., WTO membership. That may be, but the governments of Japan, Canada, and other trading partners. I was pretty sure western Europe have themselves found that it is not always that others would share Europe's unambiguous conclusion easy to sustain the right policy trends, in the absence of inter­ that the offers on the table for telecommunications were national obligations. Nor is it easy to get credit for domestic enough to close the deal, even if we would continue to work reforms if they are not bound internationally. And I think that for improvements of those offers in the years ahead. The U.S. in the development of a land-bridge, the absence of certainty administration decided at the last minute that the offers on for the future and the absence of international recognition for the table were inadequate, and that the talks would have to Chinese reform would be real handicaps. If China were a continue into next year before a successful conclusion could WTO member, then the prospects for continued economic be envisaged. We have managed to save what was on the liberalization and development would be surer and a land­ table, at least for the moment, because we have set ourselves bridge would be more attractive as a result. a new deadline of next February and agreed that we will all In case anyone in this room believes that to advise mem­ seek to improve the position by then. bership of the WTO is to advise perfection, let me add that the I take this as a worrying sign that the momentum of multi­ picture of WTO progress in recent months is at best patchy, lateral liberalization may be dropping. I would also draw the particularly in the transport and infrastructure sector. Last broader lesson that rules are needed and are difficultto draw week I was in Geneva with the ministers of the European up where many countries are involved and vested interests member states, so that we could be on the spot to finalize, are great. For a land-bridge to work, the rules must be in place successfully as I thought, the WTO negotiations to liberalize before the prospectus is issued. And among those rules must worldwide provision of basic telecommunications. be the most liberal rules possible for access by transport opera-

EIR June 14, 1996 Feature 21 tors to a land-bridge network, and a guarantee that those will­ ing to operate over the network will have pay a reasonable but not an exorbitant fee to those who run the network, particu­ larly because those running the network are likely to be the The start of a new commercial companies that build the network rather than the governments of the states along the line .... economic era for As part of its new policy toward Asia, the European Com­ mission has developed a long-term strategy for our relation­ ship with China. This was deliberately called a long-term a new civilization strategy, in order to take account of temporary hiccups which by Rui Zingwen have occurred in China's rush toward the future and which may well continue to occur in the coming years. The basic premise of our strategy is that China has taken major, positive, A report by Mr. Rui Xing wen, chairman of the China Develop­ and irreversible steps to alter its economy and society, and ment and Promotion Commission of the New Euro-Asia Con­ that Europe must cooperate with China in its continue'd devel­ tinental Bridge, to the plenum of the InternationalSym posium opment. ... on Economic Development of the Regions along the New In conclusion, I believe that we are at a critical moment Euro-Asia Continental Bridge, on May 7. in discussion of the land-bridge project. If we can make it marketable, if we can clearly demonstrate that the legal frame­ Respected chairman and vice chairmen, distinguished guests work for economic activity along the land-bridge is in place and friends, ladies and gentlemen, the InternationalSy mpo­ and that the prospects for sustained growth are real, then I sium of Economic Cooperation in the Regions along the New believe the project will become a reality. Euro-Asia Continental Bridge has been opened successfully Mr. Chairman, I would wish you and your colleagues here in Beijing. The theme of the symposium is to accelerate the every success in the discussions ahead. I will look forward to economic development and cooperation in the regions along studying closely the results of this important symposium. the new Euro-Asia continental bridge, as we are on the thresh­ old of the twenty-firstcent ury. The convening of the sympo­ sium raises the curtain on the economic development and cooperation in the regions along the new Euro-Asia continen­ tal bridge. The symposium is also an important event of Euro­ TheSc ience of Asia economic development and cooperation following the Bangkok Euro-Asian Summit, on March 1, 1996. Leaders of China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan Christian signed the Agreement on Strengthening Military Trust along the border areas on April 26, in Shanghai, which will also have Economy a positive impact on the symposium and the development of the regions along the land-bridge. On behalf of the China Andother Development and Promotion Commission of the New Euro­ prison writingsby Asia Continental Bridge, I would like to express my warmest Lyndon H. laRouche,Jr. congratulations to the opening of the symposium .... My topic is: Start the new economic era of the continental Includes bridge for a new human civilization, which falls in four parts. In Defense of Common Sense, Project A, and TheScience of I. Start the new economic era Christian Economy, of the continental bridge three ground-breaking essays written by laRouche after The economic development and cooperation in the re­ he became a political prisoner of the Bush administration gions along the new Euro-Asia continental bridge is an inevi­ on Jan. 27, 1989. table trend and result of the land-bridge economic law. It will, $15 on the one hand, develop with the development of world's

Order from: land-bridge economy, and, on the other hand, powerfully push Ben Franklin Booksellers, Inc. the world's land-bridge economy forward. To ll free (800) 453-4108 (703) 777-3661 fax (703) 777-8287 The land-bridge economy, based on the emergence and

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22 Feature EIR June 14, 1996 existence and development faced by human society, usher of transcontinental energy, transport, and communications human society into a new era, i.e., an economic era of the networks, and improvement and enhancement of the regional continental bridge. environment. All these aspeCts will help the land-bridge econ­ The term "continental bridge" is a figurativeone. It should omy become prosperous; hence, human society will enter be defined as a new, modem, transcontinental, and interna­ into a new era-the continental bridge era, which is the third tional ocean-land corridor,which connects ocean transporta­ development era of human society. tion with land transportation directly by means of railways, Ever since human existence, there have been two periods as well as highways, aviation, ocean shipping, water trans­ in terms of development activities. First, people availed them­ port, and pipeline transportation, and is equipped with fiber selves of the conveniences of rivers and lived there, genera­ optics communications facilities. It is developed on the basis tion after generation; thus, the ancient civilizations of the of various kinds of advanced transport facilities, which are Yellow River and the Nile River were created. This was the brought up by modem industrial civilization, and science and natural economic period, from the primitive to the commodity technology, and is a combination and unity of various kinds economic period. After that, there was the industrial period, of advanced transportation facilities. With the rapid advance­ especially the great industrial times which is dominated by ment of science and technology since the 1950s, man's ability the commodity economy. When the steam locomotive and to utilize nature, create inventions, etc., has been largely in­ the electric motor were invented, oceans became the main creased. The development and utilization of microelectronics, channel to exchange commodities among the continents. Man nuclear energy, biotechnology, and so on, enhanced produc­ started to gather along the seashore, and he built cities, espe­ tion quality. The distance between people is also sharply nar­ cially where rivers empty into the sea. That was the start of rowed, by means of both the manufacturing of high-speed, modem civilization. spacious, and high-capacity means of transportation, such as Up to now, 60% of the world's population lives in areas locomotives, cars, airplanes, and ships, and the emergence of along rivers and near seas, which only accounts for 19.2% of pipeline transportation and fiberoptics communications. The the total land, now the prosperous and developed regions. We invention of container transportation, like glue, conglomer­ call the previous period "rivers economy time," while the ated the above-mentioned various transportation means into latter can be regarded as "seashore economy time." Mean­ a unified one, and thus, enabled the formation of the land­ while, some serious social and economic problems crop up: bridge communications and transportation system. 1) the resources in the developed regions along seashores Following the internationalization,grouping, and region­ become exhausted, while the popUlation is still growing at an alization of the world's economy, and the integration of econ­ exceeding speed; omy and technology, internationaland transcontinental trans­ 2) the economic gaps between the developed coastal cities portation, besides connection via oceans, requires more and the underdeveloped land-locked cities become wider and access directly toward land. This calls for a new process that wider; and links continents with oceans, and can combine production, 3) owing to the shriveling of markets and the deterioration circulation, markets, and consumption to achieve better effi­ of the ecological environment, people's existence space and ciency. Thus, continental-bridge and land-bridge transporta­ the development of civilization are threatened. tion come into being, e.g., the America continental bridge in However, the emergence of the land-bridge brings about the 1950s, the Euro-Asia continental bridge from Nakhodka not only hope for us, but also a new concept, i.e., the coming to West Europe via Siberia, and the current new Euro-Asia of the land-bridge economy time. People could take the ad­ continental bridge, which draws worldwide attention. vantages of communications of the land-bridge, to convey Now, some countries are considering establishing a Euro­ advanced civilization and prosperity to the vast, backward, Asia-Africa continental bridge across South Asia, Southeast landlocked regions, to develop the undeveloped or underde­ Asia, and West Asia, ending in Europe and Africa, and the veloped areas taking up 80.8% of the total land area, and to Euro-Asia-America continental bridge, by means of building exploit new development areas, discover new materials, make a dam or tunnel across the Bering Strait. new cultivation, and form new environments for the existence It is imaginable, that futurehuman society will neither be and development of human society. hindered by oceans, nor be frustratedby severe cold, altitude, There is an old saying in China: "Pan Gu (creator of the and desolation any longer. Transcontinental high-speed trains universe in Chinese mythology) separated heaven and earth." and expressways will circle the globe, and bring unprece­ Undoubtedly, the construction of the land-bridge is a great dented new opportunities for existence, development, and project, inheriting the "Pan Gu separated heaven and earth." prosperity to human society. It will further promote the reci­ It takes a long time for the "land-bridge economy time" to procity and cooperation of the regional economy, integration come into being. For example, it took thousands of years for and opening of the market system, joint development and the "rivers economy time" to come into being, hundreds of comprehensive utilization of resources, development and years for the "seashore economy time." Therefore, it will take sharing of science and technology, construction and operation at least a couple of centuries for the "land-bridge economy

EIR June 14, 1996 Feature 23 China 's next generation. "It is imaginable, " says Rui Zingwen, "that fu ture human society will neither be hindered by oceans, nor be frustrated by severe cold, altitude, and desolation any longer. Transcontinental high­ speed trainsand expressways will circle the globe, and bring unprecedented new opportunities fo r existence, development, and prosperity to human society."

time" to come into being. Mencius, an ancient Chinese philos­ namely, the northern one, the middle one, and the southern opher, said: "One only becomes modest aftertravel afar, and one, can join the European railway networks and reach becomes humble upon climbing high." If we walk forward Europe. consistently, our goals will finalIybe reached. The great mis­ The northern route: connecting Aktogay in Kazakhstan, sion to promote the economic development and cooperation or Bishkek in Kyrgyzstan, northward via Siberian railways of the regions along the new Euro-Asia continental bridge and onward to West Europe and North Europe. and construct a comprehensively prosperous international The middle route: starting from Kazakhstan via Russia, economic corridor across Europe and Asia, will have the pos­ Belarus, Ukraine, Slovakia, Hungary, Austria, Switzerland, sibilities and potentials to become the pioneer toward the third transship from Germany and France to the ports of the English era, i.e., the land-bridge time, and to promote the world's Channel. Or it can go south from Aktogay, Kazakhstan, along land-bridge economic development. the border of Kyrgyzstan, through Tashkent, Uzbekistan and Ashkhabad, Turkmenistan, west to Krasnovodsk, via the Cas­ II. Construct a comprehensively pian Sea to Baku, Azerbaijan, then to Tbilisi, Georgia, the prosperous international economic Black Sea, Varna in Bulgaria, Romania, Hungary, thus reach­ corridor across Europe and Asia ing the Central European countries. Regional economic development and cooperation is a The southern route: starting from Ashkhabad, Turkmeni­ trend of the world economy. The new Euro-Asia continental stan, south down into Iran, then from Mashhad go west via bridge economic region, starting east from Lianyungang and Teheran, Tabriz, to Turkey, through the Strait of Bosporus, Rizhao port in China, ending west in Rotterdam, the Nether­ and via Bulgaria and Yugoslavia, reaches Central Europe, lands, with a total length of 10,900 kilometers across Europe West Europe, and South Europe. It can even go south, and and Asia, is a new international economic region, connected reach the Middle East and North Africa via Turkey. by the giant international corridor. To the east, it links up In view of the above, the Euro-Asian continental bridge with Northeast Asia and Southeast Asia, through numerous links up more than 40 countries and regions: China, East seaports in China, and can further connect with the western Asia, Central Asia, West Asia, the Middle East, Russia, East coastal cities of the U.S.A.; to the west, after track-transfer at Europe, Middle Europe, South Europe, and West Europe. the Alataw pass, in Xinjiang, China, it joins the Central Asian This accounts for 22% of alI the countries of the world, and railway network in the border station in Kazakhstan, extends covers 39.7 million square kilometers, equivalent to 26.6% westward further to Aktogay, and from there, via three routes, of the total land area, with a population of2.2 billion, amount-

24 Feature EIR June 14, 1996 ing to 36% of world population. countries and regions are facing new challenges and new cri­ The most distinct characteristic of the region of the new ses. Therefore, cooperation based upon defending state Euro-Asia land-bridge, is that it links, from east to the west, sovereignty is the basic objective required for both sides to the Pacific andAtlantic economic centers, which fundamen­ achieve mutual benefits.... tally belong to the developed region, but lack space capacity and natural resources. III. The strategic plan of China's Except for some countries, most countries located in the construction of the new Euro-Asia vast, long, and narrow middle region belong to the least-de­ continental bridge economic corridor veloped or underdeveloped region, especially the mid-west The Chinese governmentwill always be positive on con­ part of China, Central Asia, West Asia, the Middle East, and structing, exploiting, and utilizing the new Euro-Asia conti­ South Asia. These regions are stricken with inconvenient nental bridge, and also on forwarding the cooperation transportation and bad natural environment, yet they are rich between Asia and Europe by the bridge .... in land capacity, resources, including all the natural resources The Proposal for the Ninth Five-Year Plan and the Long­ needed by human society, and thus have good prospects and Term Targets for the Year 2010, was raised at the fifthsessi on great potential for development and for becoming suitable of the 14th CCP's [Chinese Communist Party] congress in places for a flourishinghuman society ....Energy resources September 1995; the Outline for the Ninth Five-Year Plan are also abundant in this region ....We can call it the home of National Economic and Social Development, also for the of energy resources of the world. Because of this characteris­ 2010s Long-Term Targets, was passed at the fourth session tic, the new Euro-Asia land-bridge region has a very strong of the Eighth Peoples' Congress in March 1996. These two nature of interdependence and advantage complementarity, papers formed the grand blueprint of China's socialist mod­ which foretells a promising future of cooperation. ernization structure for going beyond this century .... Asia and Europe have a long history of economic and For realizing the great plan, the Chinese governmenthas cultural exchanges and cooperation. Two thousand years ago, made the corresponding policies and measures, in which the the ancient Silk Road linked the two continents. Economic government mapped out plans to develop several economic cooperation and cultural exchanges along the ancient Silk circles or corridors, depending on the main city and traffic Road had a great impact, not only on the splendid ancient road. The circles and corridors include: the corridor of the civilization achieved by human society, but also on the forma­ Yangtze River delta and area along the river, with Shanghai tion of modem civilization. Up to now, it is still one of the as a key city; the economic zone of the southwest coastal area, most important spiritual ties that links Asia and Europe. The mainly in the Pearl River delta and southeast of Fujian; the new Euro-Asia continental bridge is developed on the basis Bohai coastal economic circle, mainly formed by the Liao­ of these ties, and therefore is also called the Modem Silk dong peninsula, Shandong peninsula, Beij ing, Tianjin, and Road. It will be bound to play a more important role in promot­ Hebei province; and the corridor tied by the Euro-Asia bridge, ing the modem Euro-Asia economic and cultural exchanges Jingjiu railway, and the other main railways. and cooperation, and in enhancing the development of mod­ For solving the imbalance of development between the em Euro-Asia civilization. east and central-west of China, it has been pointed out in With the achievement of modem science and technology, the Proposal and Outline, that the government should adopt and the dreadful lessons learntfrom the two world wars, hu­ powerful measures to support the development of the mid­ man society has acknowledged interdependence as a common western underdeveloped areas, the ethnic areas, and the pov­ discipline from which it shall not depart. Promotion of Euro­ erty-stricken areas .... Asia economic cooperation and expansion of Euro-Asia eco­ The new Euro-Asia bridge is continuous over 4,131 kilo­ nomic exchanges, is not only the need of the least-developed meters in China. It connects 10 administrative regions in the and underdeveloped countries and regions, but also the need east and midwest of China ....The region is very important of developed countries and regions. On one hand, develop­ for Chinese social and economic development. ... ment of least-developed and underdeveloped countries and Since the founding of the People's Republic of China, regions mainly depends on self-reliance, but also requires the governmenthas invested substantively and improved the capital and technical support from developed countries and infrastructure conditions along the continental bridge. The regions. On the other hand, developed countries and regions total length of the rail along this bridge is 30% of the overall require the development of the least-developed and underde­ railway across China .... There are 16 large and medium­ veloped countries and regions to be the supplementary aid to sized cities, half of the total number of that of the country, their self-adjustment to recover from crisis, avoid stagnation, with the civic population of over 1 million .... Ever since and maintain prosperity. 1949, the Chinese governmenthas put emphasis on the layout At the present time, the least-developed and underde­ of industrial sectors along the bridge, and has already set up veloped countries and regions are facing great exploitation, a group of main industrial enterprises which are playing an construction, and development, whereas the developed important role in national economy ....

EIR June 14, 1996 Feature 25 The China section of the bridge is the cradle of Chinese make Urumqi the center of international finance, commerce nationality. The nothern riverof the Chinese people, the Yel­ and trade, industry, and agriculture in the west of China, and low River, runs parallel to the bridge .... foster the development and prosperity of the market of Due to historical reasons, generally speaking, although China's west and central Asia; the area along the bridge is endowed with rich resources and • develop Lianyungang, the east end of the new Euro­ saw great social and economic development, the economic Asia bridge, into an international container pivot port with level still lags behind ....Therefore, the opening and devel­ some functionsof a free port, and also identify special access opment of this area has received the attention of the Chinese to the sea for inland countries. At the same time, to establish government, and relevant policies and measures have been the ports along theeast coastal area (including Tianjin, Qing­ adopted and implemented. The whole line of the new Euro­ dao, Shanghai, Ningbo, Guangzhou, and Shenzhen, etc.) as Asia continental bridge was connected in 1990 and put into the entrance and exit connecting the hinterland of Euro-Asia operation for international usein 1992. Subsequently, the area and the Pacificre gion; along the bridge was decided for opening to the outside in • construct the pipelines of oil and gas connecting East 1993, and, in 1994, the Chinese government determined to and Central Asia and establish the petrochemical industry regard the opening and development of the region along the corridor, in accordance with needs and requirements; bridge as the practical action for China to actually implement • develop tourism of the new Silk Road, tap the potentials the decision reached at the United Nations Environment and of the culture of Yellow River and western regions, and foster Development Conference (1992), and it put related activities the development of tertiary sectors; on the list of the firstpriority projects of the "White Paper for • implement the policy of supporting the development of China Agenda 21-Population, Environment and Develop­ midwest regions in the area along the bridge as a top priority ment in the Twenty-First Century of China," and recently, in in accordance with the construction emphasis of the gov­ 1995, identifiedand determined to set up the China New Euro­ ernment; Asia Continental Bridge economic corridor. • accord foreign enterprisesnational treatmentstatus. The strategic policies and special measures made by the We believe that through the hard work of the Chinese Chinese government show that the area along the continental people, the golden area will soon be developed, and we will bridge has great potential and prospects for development. We take our best efforts to contributeto the prosperity and devel­ are confident that the further development of the "Interna­ opment of the Euro-Asia economic corridor. We warmly wel­ tional Steel Corridor," which crosses China's east-middle­ come friends from every country of the world, and friends west part and opens toward both the west and the east, will fromthe circle of real estate, finance, and enterprises to jointly become the new growth corridor of China's economy, and develop the area. We will take positive attitudes toward coop­ will develop into an internationaland outward-oriented corri­ eration. dor of transportation and economy. Hence, we will take such measures as follows: IV. Suggestions on the promotion of economic • adopt and implement the opening-up policies in the cooperation in the regions along the new Euro­ region along the bridge as implemented by the coastal areas, Asia continental bridge and continue to set up various kinds of development zones Promoting the economic development and cooperation in and bonded zones; the region along the new Euro-Asia continental bridge re­ • experiment on the model of setting up natural resources quires the joint effortof the two continents. It falls within the development zones. To set up resources and resources-pro­ line of the Euro-Asia Bangkok meeting, and will be further cessing enterprises according to the requirements of a high supportedby the European and Asian countries and the inter­ starting point and integration with the world. To facilitate the national organizations concerned, with more and more con­ industrialization and urbanization of the area along the bridge; crete actions and steps coming forthwith. To our gratefulness, • use foreign funds to set up a China West Part Agricul­ before this conference, many countries and international or­ tural Cooperation and Development Zone, and to establish a ganizations carried out in-depth researches on expansion of Euro-Asia Agricultural Products Wholesale Trading Center; the continental bridge, removal of obstacles in continental • set up several economic development zones along the bridge transportation, and regional economic development. bridge based on centered cities, taking into account transpor­ Many good suggestions and proposals were made and some tation, resources, and geographical location. For example, the agreements have already been endorsed after bilateral and Huaihai Economic Zone is based on Xuzhou, the Zhongyuan multilateral negotiations. Some are as follows: Economic Zone is based on Zhengzhou (including the north • In October 1994, the ministers of railway (or transpor­ part of Hubei province), the Guanzhong Economic Zone is tation) from China, Russia, and the five countries of Central based on Xilan (including the northwest of Sichuan province), Asia attended the multilateral conference in Beijing. The mi­ the Northwest Economic Zone is based on Lanzhou, and the nutes were written and the project of "Development of the West Economic Zone is based on Urumqi, and etc. And to International Railway Artery Passing through Y ouyi Pass-

26 Feature EIR June 14, 1996 Schiller Institute representatives (right to left) Helga Zepp LaRouche, Jonathan Tennenbaum, and Mary Burdman tour the Nuclear Technology Institute of Qinghua University, where the firstChinese High Temperature Reactor is being built. Here, a project leader explains the construction of another project, a reactor fo r room heating and desalination applications.

Alataw Pass on the Border of China" was approved. Transit Transport Cooperation proposed; • In September 1995, the governments of the People's • In November 1995, UNCTAD conducted a "Central Republic of China and Kazakhstan jointly endorsed "The Asia ExternalTrade and Transit Transport Initiative" techni­ Contract on Development of Loading, Unloading, and Trans­ cal meeting in Ankara, where the issue of a Euro-Asia corridor porting the Transit Goods of Kazakhstan via Lianyun Port." was again discussed; • The Industrial Ministry of Japan entrusted its Engineer­ • Recently, many international organizations put for­ ing Consulting Firm Association with studying the develop­ ward some related projects, such as UNESCAP [UN Eco­ ment of the new Euro-Asia continental bridge. The associa­ nomic and Social Council for Asia and the Pacific] with the tion proposed a cooperation plan known as the "Twenty-First project of a New Iron Silk Route, ADB [Asian Development Century Silk Route." The Japan Federation of Economic Or­ Bank] with the project of an Asian Expressway, and the GIF ganizations has decided to take the development of the regions [Global Infrastructure Fund of Japan's Mitsubishi Research along the new Euro-Asia continental bridge as an important Institute] with the EAITS [Euro-Asia Terrestrial Transport international cooperation project. System] project. • In 1995, the European Union Commission determined • Not long ago, the President of Korea proposed the plan its strategy toward the Asia-Pacificarea and its new strategy of Euro-Asian railway network at the Euro-Asia meeting in toward China. Organizations concerned have proposed a Bangkok, and was praised by many heads of countries con­ Euro-Caucasus-Asia Transportation Corridor project. cerned. • In September 1994, on the 49th session of the UN As­ All these sound development activities and initiatives sembly, the UN secretary general presented a report on "Tran­ clearly indicate the great potential of economic development sit Transport Systems in the Newly Independent and Develop­ and cooperation within the new Euro-Asian continental ing Landlocked States in Central Asia and Their Transit bridge region. We can highly expect, after this international Developing Neighbors: Current Situation and Proposals for symposium, the Euro-Asian continental bridge regional eco­ Future Action." nomic development and cooperation will achieve rapid prog­ • In June 1995, the Second Meeting of Governmental ress .... Experts from Landlocked and Transit Developing Countries Hand in hand, let us march together and develop a flour­ and Representatives of Donor Countries and Financial and ishing Euro-Asian international economic region, reach a Development Institutions, was held by UNCTAD [UN Con­ splendid future of human society. May the flowerof coopera­ ference on Trade and Development] in New York, with the tion, friendship, peacefulness, development, and prosperity Proposals for the Development of a Global Framework for be ever-blooming, be everlasting!

EIR June 14, 1996 Feature 27 tory. They have since time immemorial enjoyed strong bonqs of amity that have withstood the test of time and the ordeals and tribulations of the past decades. Iran warmly welcomc;d the independence of the republics by embarking on an all­ Iran:an east-west out and relentless effort to expand mutually beneficial and reinforcing political, commercial, economic, cultural, tour­ strategic bridge ist, oil, and marine relations. To thi s end, and for greater regional solidarity, Iran welcomed the joining of these coun­ tries to the Economic Cooperation Organization by A. Broujerdi (ECO) as new members, and proposed the establishment of the Cas­ pian Sea Economic Cooperation Organization (CSECO), The fo llowing is a speech by Mr. Broujerdi, DeputyMinister comprising Russia, Iran, Azerbaijan, Kazakhstan, and Turk­ of Foreign Affairs of Iran, on May 7. menistan. They have all agreed in principle with this new cooperation scheme, and the final formalities are currently In the name of God, the compassionate, the merciful: Mr. under way. Chairman, distinguished participants, dear guests, may I start by expressing my appreciation to the organizers of this sym­ Euro-Asian rail hookup completed posium for holding this important gathering. In the wake of The geopolitical advantage of the Islamic Republic of the Soviet Union's dissolution, and pofitical and economic Iran, its position as a regional and continental linking bridge developments in the latter part of the 1980s, the new indepen­ between the Central Asian countries and the open sea, have dent Central Asian republics became the focus of interna­ made the linkage of its railway system with the railway tional attention. This was due to a number of reasons, includ­ network of the new republics and Russia a reality. This new ing the immense economic potentials, fer1li.le plains, and railway linkage will greatly facilitate transport of goods and mines, in these repUblics. The republics have come under trade between Central Asia and destinations in other parts the spotlight of international firms from the East and the of the world, and contributes to better understanding of the West, and over the past two years, have been witness to culture, religion, and history of these nations. Construction maj or investments by large multinational corporations. With of the 300-kilometer Mashhad-Sarakhs-Tajan railway, the breakup of the Soviet Union and the formation of the which complements the 700-kilometer-Iong Bafq-Bandar new republics, good opportunities became available. Two Abbas railroad, has been finally materialized. This railway internationalphenomena occurred. First, the Islamic Repub­ network will be inaugurated on May 14, 1996, before heads lic of Iran became the hub of global economic and political of state and dignitaries of more than 30 countries. relations of Central Asia and the Caucasus. This role of a This grand project of the century, that was dubbed by linking hub has its roots in Iran's geographical location, as ESCAP [UN Economic and Social Commission for Asia well as its pragmatic foreign policy. and the Pacific] as the Iron Silk Route, was finished by All Central Asian republics, except Georgia, are land­ our experts and with the help of the brotherly country of locked, and should pass through Iran for direct and indirect Turkmenistan without any international assistance. We have economic connections with the rest of the world. Those now constructed the missing link in the Euro-Asian rail­ countries that see economic ties with the republics of Central way network. Asia and the Caucasus have no alternative but to use the With the operation of this railway, Lianyungang port in land and air routes of Iran, China, and Russia. Among these east China will be connected to Bandar Abbas at the Persian countries, Iran and China enjoy, uniquely, a very advanta­ Gulf via the cities of Urumqi, Almaty [formerly Alma-Ata], geous position. Tashkent, Sarakhs, Mashhad, and Teheran, providing access China borders a part of Central Asia in Kazakhstan, to the open seas for land-locked Central Asia nations, on Kyrgyzstan, and Tajikistan, and has various land and air one side, and linking this railroad to Rotterdam via Teheran, routes to Central Asia. Iran also borders the region of Central Istanbul, and Europe, on the other side. Asia and the Caucasus, and its land and sea routes are linked I should seize this opportunity to express our apprecia­ to Central Asia, the Caucasus, and Russia. An international tion for the cooperation of the government of China in study on Iran's connection routes to Central Asia would be constructing segments of the railway network to make possi­ very constructive. ble the first running of a train from Lianyungang port to The emergence of these new republics brought about Tashkent in November 1995. The nations of the region and great cooperative relationships with the Islamic Republic of the world will now see the fruits of collective and regional Iran. In addition to geographical contiguity with the Central effort for greater economic prosperity and well-being. The Asian countries and the Caucasus, the two sides have many length of this railway reaches 2,750 kilometers, as out­ things in common, including shared faith, culture, and his- lined below:

28 Feature EIR June 14, 1996 Central Asian rail link to Persian Gulf port is now complete

R A N

Existing main rail lines

-- Newly completed rail line

EIR June 14, 1996 Feature 29 Bandar Abbas-Teheran 1,500 kilometers ished products, and technology between west and south Asia. Teheran-Mashhad 950 kilometers With this new development, cooperation between the two Mashhad-Sarakhs 170 kilometers regional groupings of ECO and ASEAN [the Association Sarakhs-Tajan (Turkmenistan) 130 kilometers of Southeast Asian Nations], and China, will be of special importance, as it will consolidate economic and political Implementation of this project is of international eco­ independence, and will help restore the cultural identity of nomic significance and can provide the best and safest trans­ Central Asian people. portation and transit routes to the CIS states, particularly in Central Asia, and China. Starting in Xi'an, China, this route Other projects planned will revive the historical Silk Road, that has been called the As I have explained in my presentation, Iran has always East-West bridge. The Silk Road had been in existence 1,800 occupied an important strategic position for its location as years. This ancient route was the most important trade and a continental bridge between Asia, Africa, and Europe. The travel road in the past centuries, with a travel distance of revival of the Silk Road will enhance this advantageous 8,000 kilometers. A branch of this road began in Xi' an, position. In addition to this project, the Islamic Republic of crossed the Pamir Plains, and passed through Marv, Samar­ Iran plans to implement other important railway and road kand, and BaUch in Transoxania. This route contributed to projects to enhance its strategic capacity. Among these pro­ consolidation of trade and cultural interaction among the jects, mention can be made of the grand Kerman-Mashhad nations on its path. Railway. With this project completed along the Iran-Pakistan Mr. Chairman, linking of the Silk Road land connections border, the distance of rail travel from Sarakhs to Bandar from Central Asia to the Persian Gulf and the Indian Ocean Abbas will be reduced from 2,750 kilometers to 1,850 kilo­ in the south and west, to China and the Pacificcoast in north meters, which is 900 kilometers shorter. and east, and subsequent connection of sea routes from the Excellency, it has become possible once again for Iran Persian Gulf and Indian Ocean to ports in Canton [Guang­ to benefit fromnew communication possibilities and histori­ zhou], Shanghai, and Lianyungang via the Malacca Strait, cal and cultural bonds, to promote amicable relationships will create a new cycle of exchanges of raw materials, fin- and consolidate economic, technical, and spiritual ties with a vast part of Asia and the Far East. The road network from Central Asia to China, and shipping lanes from the Indian Ocean to the Pacific, herald a prosperous future and greater friendly and fraternal relationships among nations of the region. In this very connection, we have had constructive LaRouche talks with Bangladesh, India, and the Philippines. These countries will use this transit route for transport of their goods to be traded beyond their region. Campaign As you are all aware, economic development of any region depends, most importantly, on its communication and Is On the trade routes. I want to seize this opportunity to state our support and appreciation for the constructive decision at the Internet! ASEAN Summit in Bangkok in March 1996 to construct the Singapore-Thailand railroad, which complements the Lyndon LaRouche's Democratic presidential pri­ historical Silk Road. It is indeed a good step for the develop­ mary campaign has established a World Wide ment of countries in the region. When this grand project is Web site on the Internet. The "home page" brings materialized, the railway network of Singapore and Malaysia you recent policy statements by the candidate as will be linked to Thailand and China, and will pave the well as a brief biographical resume. way for much greater commerce and economic exchanges between the member countries of ASEAN, China, Iran, and 1l.i;ji4iU the LaRouche pageon the Internet: the Commonwealth of lndependent States. It will also impart fresh momentum to commerce and industry, promotion of http://www.clark.netllarouche/welcome.html tourism, and cultural and technological exchanges, and will 1l.I;jiitl!U the campaign by electronic mail: ultimately lead to the creation of a powerful trade and indus­ trial bloc. [email protected] To conclude, I want to thank the organizers of this sym­ posium and wish them success and happiness. I should also Paid for by Committee to Reverse the Accelerating Global Economic and Strategic Crisis: A LaRouche Exploratory Committee. express my sincere appreciation to the government and peo­ ple of China for their warm hospitality.

30 Feature EIR June 14, 1996 can author put into circulation a "thesis" about the coming "clash of civilizations," namely that supposedly unbridge­ able differences between the differentcult ures of the world, would cause the launching of new waves of military con­ Building theSilk flicts. It were tragic, if we were to fall for such nonsense, which is nothing more than an intelligence operation, fed by Road land-bridge geopolitical motives. There is no such contradiction among world cultures, that cannot be overcome. To the contrary, by Helga Zepp LaRouche it is the characteristic of man, which differentiates him from all other living beings, that he possesses the unique quality Mrs. LaRouche is the president of the Schiller Institute in of creative reason. This is the universal quality which unites Germany and the chairman of the Schiller Institute Board all men, and allows man to find the ever-higher levels, on of Directors in the United States. Her speech, delivered on which conflicts can be solved. In China, this philosophy has May 8, was titled: "Building the Silk Road Land-Bridge: The been well known since the contribution of the great universal Basisfor the Mutual SecurityInterests of Asia and Europe. " thinker Confucius. Based on this thinking, American economist Lyndon Although the opening of the east-west European borders in LaRouche proposed an economic program, the foundation­ 1989 brought to an end, irreversibly, the postwar order de­ stone of which is that only the global reconstruction of the fined by the Yalta agreement, and the world, since the end world economy can create a way out of the present crisis. of the Soviet Union, is no longer definedby bipolar constella­ The development of the Eurasian land-bridge, and the inte­ tions, the old ideas of "balance of power" politics are, unfor­ gration of the Eurasian continent, must play the central role tunately, still having an effect in many places. This school in this program. of thought considers a nation's "interests" to be defined by LaRouche made the firstproposal in this direction, in a such criteria as the struggle for control of resources, and press conference in Berlin in October 1988, and it was "spheres of influence." In recent years, a well-known Ameri- shortly thereafterpre sented to the U.S. public in a nationally

The Schiller Institute's Eurasia Rail Plan

EIR June 14, 1996 Feature 31 broadcast television show. In November 1989, after the Ber­ At the same time, only this form of economic cooperation, lin Wall had fallen, LaRouche proposed a program for the in the interests of all participating nations, can represent the "Productive Triangle," in which he defined the guidelines basis for a durable peace for the twenty-first � century. Th. for East-West cooperation, in the development of western concept is: "Peace through Development." Europe. The essential concept, was to use the industrial and The central aspect of this program, is an Eurasian network technological potential of the economic region, defined by of high-speed trains for transport of persons and goods, in the cities of Paris-Berlin-Vienna, via a system of "corridors," which the three main lines indicated on the map, connect for the development of all Eurasia. most of approximately 60 big cities with each other. This The opening of the land-bridge between China and the infrastructural integration will mean an enormous increase of CIS [Community of Independent States] nations in 1992, the economic efficiency of the connected economic area of represented a first important breakthrough. Since then, a more than 1 billion people living alongside these lines. In number of conferences and pUblications on this theme, in connection with this rail network, internal waterways must China and other countries, shows that the impulse to over­ be modernized and extended. The construction of new ports come the economic crisis in this way is very much alive. A will lay the foundation for a dramatic expansion of maritime few years later, European Commission President Jacques trade, the which can be anticipated, given the expected growth Delors presented a similar plan, named for him. This is, of the population of the Pacific-Indian Ocean Basins, in the however, restricted to Europe, and, because of the "logic" coming century. At the same time, long-delayed water pro­ of the Maastricht Treaty, has not even begun to be realized. jects, like the regulation of rivers and flood control, must Any competent economic consideration, must start from be realized. the point that already today, three-fourths of the world's Production of electricity should be central for the neces­ population, 4.4 billion people, live in Eurasia, and that, given sary production and distribution of energy, which should first normal "development," without catastrophe, that population occur in the main "corridors." To make possible, in all of will grow to 7-10 billion. Eurasia, an electricity consumption for households and indus­ If, in the next years, we are to prevent seismic economic try on the level of the industrial states, there is a deficitof over and demographic collapses, it would be urgently required 5,000 gigawatts, fivetimes today's capacities. to overcome the current underdevelopment of vast parts of It is important, that the governments of the nations of the former Soviet Union, China, India, South and Southeast Eurasia, first cometo agreement on a unified plan, since,only Asia, in basic infrastructure (water supply, modem transport in this way, can the optimal development of the region be networks, energy production and distribution). realized. If such a Eurasian Grand Design exists, then any We can already see what would be the consequence of partial realization in its construction, brings not only direct not following such a policy of economic development: As national benefit,but at the same time, is a step toward realizing is well known, easternEurope and the republics of the former the Grand Design to shape our world in the 21st century. Soviet Union, have committed themselves to the path of As the infrastructure program sketched here represents the privatization of public enterprises and the unlimited free preconditions for economic and agricultural development, market economy. After five years, the industrial and agricul­ but is not immediately profitable,but is rather oriented toward tural capacities of those countries have shrunk, in some the common well-being, the right to generate credit must be areas, by 50%. In Russia alone, in the recent period, the brought back under the control of sovereign governments. population has fallen at a rate of 1 million per year, while Through appropriate legislation, national banks must be able national and ethnic tensions in the area of the former Come­ to generate credit lines for these projects, which must be con states have increased dangerously, above all, because oriented in their scope, to the requirements of productive of drastically worsened living conditons. workplaces and the workforces employed in these great pro­ jects. As these credits are related to future production, wealth Grand design for peace through development is being created, and they are not inflationary. They are even We propose, therefore, a totally different path. The gov­ anti-inflationary; on the one side, the unproductive costs of ernmentsof Eurasia should agree on an integrated infrastruc­ unemployment are eliminated, and, secondly, the real costs to ture program, which connects the industrial centers of Europe the economy, due to the lack of infrastructure, are eliminated. and Asia with the population centers in South and Southeast The national banks issue credit through regional banks, Asia, through "development corridors." The development of to the firms which work for the various projects. It can be those main axes of traffic, through Great Projects for infra­ historically documented, that the resulting tax revenues, in structure in transport, energy, water, and communications, is the westerncountries, have always been, ultimately, bigger the precondition, to lay the groundwork for the industrial than the credits issued in the firstpla ce. development of the Eurasian land-mass, and can thus become As the realization of infrastucture projects of this magni­ the motor for overcoming the world economic crisis. tude-in China alone, 100,000 kilometers of new rail lines,

32 Feature EIR June 14, 1996 1 million kilometers of modem roads, and several thousand must use the emergency powers of the Presidency, and put kilometers of new waterways are needed-will require all the U.S. Federal Reserve into bankruptcy receivership, and available industrial capacities of the participating nations, under the supervision of the U.S. Treasury. According to and, as new capacities have to be created, the different coun­ Paragraph 1 of the U.S. Constitution, the President can obtain tries should work in a division of labor, and thereby balance the right from Congress to issue, in the tradition of the late existing three-way trade flows through so-called clearing­ President Franklin Roosevelt, several trillion dollars worth houses. A newly founded Eurasian Development Bank could of credit for financing well-definedinfrastructure projects to take over this task. overcome economic depression. The administrations of This conference in Beijing is taking place in an extraordi­ George Washington and James Monroe are precedents for narily important historic context. The strategic reality affect­ establishing a National Bank. ing every region, is the fact that the presently hegemonic At the same time, the President must convene an emer­ financialsystem is in the end-phase, before its collapse. If this gency monetary policy meeting, of the principal nation-state system, bankrupted through decades-long mistaken eco­ powers, for the purpose of establishing a new international nomic and financial policy, is not reorganized through an monetary system, based on stabilized parities of currencies, orderly bankruptcy procedure, and replacedby a new system, to the purpose of fostering a global revival and expansion of the entire planet is threatened with a new dark age, best com­ agricultural and industrial production, based upon capital­ pared to the collapse of civilization in the fourteenth century. intensive, energy-intensive modes of investment, in scientific The threatening global collapse, can be compared to the col­ and technological progress. lapse of earlier dynasties. Ultimately, any solution for the crisis, must include a cen­ The Renaissance ahead of us tral aspect: that the American President, as leader of the cur­ These problems cannot be solved at this conference, but rently most influential nation, pursue this reorganization. He we can and must consider how the economic reconstruction

applies also to the choice of technologies for infrastructure development. Tennenbaum stressed the importance of Tennenbaum presents building chains of new, nuclear-powered industrial cities LaRouche's economics along the Eurasian bridges, emphasizing the role of the High Temperature Reactor (HTR) technology. We also need to develop high-density, automated freight transport Schiller Institute representative Dr. Jonathan Tennen­ systems based on magnetic levitation, he said. baum, in his presentation to the international symposium, Tennenbaum attacked the Thatcherite policies of in­ called for the creation of a system of infrastructure devel­ discriminant privatization as "irresponsible and danger­ opment corridors from the Atlantic to the Pacific. He ous." The gigantic scale of infrastructure investments re­ stressed that in planning Eurasian land-bridge develop­ quired today, can only be achieved through the use of ment going into the 21st century, we must discard "GNP" "Hamiltonian" modes of productive credit-generation by and related statistical methods which-especially given sovereign nation-states. The fact is, that large-scale invest­ the huge speculative "bubble" in the world economy to­ ments in basic infrastructure-withemph asis on increas­ day-give a monstrously distorted picture of economic ing levels of technology-are the most profitable form of reality. Instead, we must use the criteria provided by the investment which exists for a national economy as a whole. science of physical economy. Well-designed investments of this type will be paid back Tennenbaum presented the concept of "density func­ many times over, by the resulting expansion of the tax tions," illustrating them by a comparison of the United base. Multilateral trade agreements, with emphasis on the States, West Germany, and Japan (before the present de­ development and sharing of advanced technology, will pression) in terms of per-capita and per-square-kilometer play a crucial role in development of the Eurasian "infra­ energy requirements. By concentrating on combined de­ structure corridors," providing favorable conditions for velopment of basic economic infrastructure within the tapping the capabilities of the military-industrial complex 100-150 kilometer-wide corridors defined by the "Eur­ in the former U.S.S.R., for example. But to clear the way asian bridges," we obtain the relatively greatest rate of for this, we urgently require a reorganization of the pres­ increase in the physical productivity of the Eurasian econ­ ently bankrupt world monetary and financialsystem, Ten­ omy as a whole. The same criterion of "density fu nctions" nenbaum concluded.

EIR June 14, 1996 Feature 33 should look, under the much more favorable conditions of a new financial system. If we look to the future optimisti­ cally, and begin from the assumption that the renaissance connected to the development of the New Silk Road will History ofthe new be successful, in the next 50 years, thousands of new cities, with 300,000 to I million people each, will have to be built. continentalbridge Many of these cities should be nuplexes, in which inherently safe HTR [high-temperature reactor] nuclear plants produce by Ma Hong electricity and process heat for regional industry and agri­ culture. As these cities are planned, completely new and concep­ Thefollowing introduction to the book, A Study on the Strate­ tualized in their entirety, the whole infrastructure can be gic Significance of the New Euro-Asian Continental Bridge, built underground, in modular form. City-building is not was written by one of China 's most fa mous economists. only oriented to potential expansion, but also so that the best traditions of the cultural diversity of Eurasia, can be An epoch-making choice expressed in their architecture. Many of these new cities While the Northern Xinjiang Railway was under con­ should be "science cities," which serve multidisciplinary, struction, I put forward a proposal in 1985 that the Northern fundamental research and teaching. Xinjiang Railway connect the New Euro-Asian Continental In the Renaissance ahead of us, the thinking that, through Bridge. At a symposium on economic development of the non-proliferation treaties, so-called "dual use technologies" zones around the New Euro-Asian Continental Bridge, I pre­ will be kept from the majority of the world's people, will dicted that, "This Bridge would not only be a railway for be an issue of the past. We can only positively create the transportation, but also an economic belt that would have future of the one human species, if we think at least as bright prospects, greatly promote commodities circulation, modernly, as Nicolaus of Cusa, the founder of natural sci­ and converge and blend east-west economic development." ence, thought in the fifteenth century. This great universal The past ten years saw the realization of our long-cherished thinker was convinced that every scientific invention was ideal, for a series of major events were recorded in the annals so precious for all humanity, that all nations must have of the Euro-Asian Continental Bridge. immediate access to it, so that no one's development would • On Sept. 12, 1990, our Northern Xinjiang Railway con­ be held back. He proposed a "science pool," in which all nected the Tuxi Railway of the former U.S.S.R., which discoveries should be collected for universal benefit. The marked completion of the 11kilometer-long New Euro-Asian new science cities in Eurasia could realize this ideal. Continental Bridge. CPC General Secretary Jiang Zemin cut If we meet the historic challenge before us, then let us the ribbon at the opening ceremony. remember that growing markets and growing purchasing • On Dec. 1, 1992, the New Euro-Asian Continental power for all, are in the interests of all involved, because the Bridge was opened to containerized transit traffic,marking the source of general wealth, is not the possession of raw materi­ start of trial operations of the Euro-Asian Continental Bridge. als and the right to "buy cheap, sell dear." The only source of • During the 11 years from 1985 to 1996, our enormous wealth is the creative reason of the individual, which enables investments were put in for renovation of railways in connec­ each to make new discoveries, and therefore to make scientific tion with the Euro-Asian Continental Bridge. The 2,OOO-plus and technological progress. The resulting increase in produc­ kilometer-long Lanzhou-Xinjiang Railway was double­ tivity of the workforce is what creates wealth. tracked and the 500 kilometer-long Baoji-Zhongwei Railway We have to decide, how we ourselves want to be regarded started operations .. .. by future generations. Do we wish that they look upon us • In 1994, Premier Li Peng visited four Central Asian with contempt, because we did not leave behind anything countries. During his visit, Premier Li Peng and leaders of the but an "every man for himself' society, the manifestations four countries reached a consensus of opinion with regard to of limitless personal greed, and a world in chaos? Or, do connecting the New Euro-Asian Continental Bridge and con­ we want that our grandchildren and great-grandchildren, structing a modem Silk Road. proudly and lovingly remember us, because in the face of • With the Houma-Yueshan Railway completed on Nov. humanity'S crisis of existence, we brought together every­ 20, 1994, a newtransportation artery ofthe Rizhao-Xi'an Rail­ thing that universal history has brought about that is great way came into existence that runs parallel with the Longhai and noble, to win out of it the inspiration for a new renais­ Railway. Thus, a railway artery in parallel with the easternpart sance? Then, perhaps, our next generations will say about of the New Euro-Asian Continental Bridge, with Rizhao and us: Yes, they were like the people of the Italian Renaissance Lianyungang as terminuses, came into existence. On Dec. 26, and the Sung dynasty. Yes, perhaps they will even say, they 1994, the Houma-Yueshan Railway started trial operations. even were a little better. • From Oct. 26 to Oct. 28, 1994, a meeting was held in

34 Feature EIR June 14, 1996 Beijing attended by ministers of railway transportation from term peace and stability .... seven countries concerned. At the meeting, Minutes of Talks As the world is approaching toward the twenty-firstcen­ on Developing InternationalRailway Passenger and Freight tury, developing relations between Asia and Europe are ne­ Transportation were signed, that paved the way for transporta­ cessitated by world peace and economic development. In Oc­ tion by the New Euro-Asian Continental Bridge. On Sept. 8, tober 1994, Singaporean Prime Minister Goh Chok Tong 1995, railway experts from the seven countries concerned proposed convening a meeting for Asian and European heads signed an agreement on opening the Alataw Pass-Druzhba of state to discuss cooperation between Asia and Europe, and (Friendship) internationalpassa ge. received positive responses. After serious preparations for • In 1995, the first and second phaseof the world's great­ a year, the first Asia-Europe Meeting was just convened in est ecological systems engineering-three northern shelter Bangkok, Thailand, March 1-2, 1996, which was attended by forest belts-were brought to completion. These forest belts leaders fromseven Asian countries, China, Japan, R.O.K., 15 prevent 10% of moving deserts and 40% of loess erosion, European Union countries and the European Council. Chi­ which created favorable conditions for the railway artery that nese Premier Li Peng attended the grand meeting and deliv­ passes through northwesternChina. ered an important speech at the meeting. The meeting will • In 1995, the laying of the Chinese section ofEuro-Asian serve as an important bridge for promoting cooperation be­ telecommunications cable was completed. tween Asia and Europe, usher in a new epoch of Euro-Asia • In July 1995, the State Scientific and Technological cooperation, greatly promote economic and prosperity be­ Commission, the State Planning Commission, and the Minis­ tween Asia and Europe, and provide a historical opportunity try of Foreign Trade and Economic Cooperation formally ap­ for developing the New Euro-Asian Continental Bridge. With proved in a document, Rizhao of Shandong Province and Lia­ more than a decade's efforts made, the Chinese section of the nyungang of Jiangsu Province as the easternterminus of the New Euro-Asian Continental Bridge has entered a new stage New Euro-Asian Continental Bridge. as whole, and developing the zones around the Euro-Asian • In January 1996, the Xi'an-Baoji Expressway was Continental Bridge is getting in gear .... opened to traffic,and the first phaseof electrifying the Houma­ I am firmly convinced that with long-term efforts made Yueshan Railway was completed, which was a key construc­ before and beyond 2000, the New Euro-Asian Continental tion project in the Eighth Five-Year Plan (1985-1990). The Bridge will become an internationaleconomic and trade corri­ railway has started trial operations. dor, that will have the glory the Silk Road enjoyed in an­ In recent years, the CPC Central Committee and the State cient times. Council have adopted a series of strategic measures to promote developing and opening the New Euro-Asian Continental Bridge. In the international arena,they proposed that a modem Silk Road be jointly constructed and exchanges between Eu­ Maglevfo r thefuture rope and Asia be expanded. They received positive responses from thecountries concerned.Domestica lly, the FifthPlenary Session of the Fourteenth CPC Central Committee ranked the The authors of A Study on the Strategic Significance of Euro-Asian Continental Bridge economic zones as one of five the New Euro-Asian Continental Bridge, advocate the economic zones for key construction and development, fol­ use of the most advanced technologies to build the New lowing the inclusion of [the statement] "zones around the Chi­ Euro-Asian Continental Bridge economy, including nese section of the New Euro-Asian Continental Bridge will magnetic levitation (maglev). Here is the relevant develop sustainedly" in "China Program of Priority Projects passage: on Agenda 21." In May 1996, the two State Commissions and the Ministry aforementioned will jointly sponsor an Interna­ The modernizationand rapidity of transport means will tional Symposium on Economic Development of Zones give an unestimable impetus to the continental-bridge around the New Euro-Asian Continental Bridge. transportation. The rapid progress in science and tech­ That large-scale development and opening up of the nology promotes the modernization and rapidity of all zones around the Euro-Asian Continental Bridge have been the transport means, including the railway, automo­ placed on the agenda of our times, is of strategic significance biles, airplanes, and ships. Particularly, the success in in transforming the situation, in which the vast central plain the trial operation of the magnetic suspension train and westernand northernChina are relatively lagging behind which travels at a speed of over 500 km per hour, will in development and opening, in promoting sustained and usher in a new era for railway transportation. It will coordinated development of southern and northern China, exert an unmeasurable promotion on the continental­ eastern and central and western China, narrowing gaps in bridge transportation which takes railway as its chief economic development between different regions, enhancing means .... solidarity between nationalities and in maintaining long-

EIR June 14, 1996 Feature 35 Provincial leaders and infrastructure experts endorse the 'New Silk Road'

In the course of the Beijing conference, over 60 technical cities and between different regions. And through this main papers were presented by Chinese andforeign experts, cover­ axis, one economic network after another, centering on cities ing a wide variety of economic, technological and environ­ and radiating to vast surrounding areas, will be formed .... mental questions related to development along the Eurasian The opening of the North American Continental Bridge Continental Bridge. To give our readers an idea of the flavor played a decisive role in the development of Midwestern of the discussion, and the rangeof topics included, we present North Americaand the revival of the American and Japanese below, with minor editing, and subheads added, excerptsfrom economies; the construction and operation of the first Eur­ draft papers given by Chinese contributors to the conference. asian Continental Bridge brought about the emergence of The complete proceedings are expected to be published, later, more than 60 industrial and mining cities along the route. by the organizers of the conference. This Continental Bridge of today connects in the East with the NortheasternAs ian Economic Rim, which is composed of Japan, Korea and China, passes through Middle and Western Joining with theEuropean Asia, which are endowed with rich mineral resources, and joins in the west to the Central European Region, which is Triangle formed by triangle of Paris, Berlin, and Vienna .... A city is the production, circulation, science, technology, Gui Lintao contributed a paper on "Cities along the finance,and information center in a given region, and is there­ Bridge Join Hands in Building the Modem Silk Road. " Gui fore the accumulating place and source of radiation of ad­ Lintao is a member of the standing committee of the Shaanxi vanced productivity. The survival and development pace of Provincial Commission of CPC, secretaryof the Xi ' an Munic­ the urban area have to be sustained by communication and ipal Committee, and president of the Long Hai Lan Xin Econ­ transportation networks. But the easy accessibility of the net­ omy Promotion Council. works of communication and transportation depend on city development for the furnishingof supplies of energy. At pres­ ...Both the Asian and European continents were the birth­ ent, the global economy has entered a stage featuring city­ places of world ancient civilizations, having made indelible centered development. And the urbanization process will be contributions to the spread of human civilization, science, and greatly quickened. It is estimated that by the end of the century cultures. During the course of 1,400 years, from 138 B.C., the urban population globally will surpass that of the rural when Qian set out on his trek to the WesternRegions, to A.D. popUlation, reaching 51.6% (the developing countries will 1388, when gunpowder was introduced to Europe, the "Silk reach 45.8%); and China will have 40% of its population Road" had all the while been the link between Oriental civili­ living in cities .... zation and Occidental civilization. It made the economy and If you take a bird's eye view over the map of Asia and culture of Middle Asia, West Asia, and even East Asia and Europe, you will see that the New Continental Bridge looks parts of Europe achieve unprecedented prosperity .... just like a brilliantand eye-catching necklace, linking up 100- The development of economy and society reveals such a odd cities scattered around the Eurasian continents and the fact: the concentration of population, production and ex­ surrounding towns in their thousands, as though they were change, namely the development of cities, without exception pearls. The substance of the Continental Bridge economy in depends on natural rivers, lakes, seas and ports, as well as question is the construction of a Continental Bridge transpor­ man-made communication corridors like land routes and wa­ tation systems-based industrial chain, to bring about a sound ter routes. For example, the opening of the ancient "Silk cycle of urban and regional economy and its speedy develop­ Road" once caused one new city after another to be set up in ment. In the end, an economy corridor of powerful cohesive the Western Regions, whereas the opening of the modem force and radiative force will be formed, which takes the Continental Bridge marks the beginning of the era of common Continental Bridge as the main axis, the large and medium development of urban and regional economy. The steel and cities along the bridge as props, and the multitude of small iron artery greatly reduces the distances between different cities as net knots. . .. The economy corridor will further

36 Feature EIR June 14, 1996 Chinese provinces along the new Eurasian Continental Bridge, with major rail connections

Courtesy of the Organizing Committee for the International Symposium on Economic Development of the Regions Along the Euro-Asia Continental Bridge.

promote the mingling of the economy and culture of the two distinctive differences in social and economic development continents, and in particular accelerate the process of industri­ still exist between the Eastern, Middle, and Western areas. alization and urbanization of the Middle Asia and Midwestern For example, among 66 million poverty-stricken people in region of the Chinese section, and form new city rims or China, 80% live in the Western area and about 80% of the city belts, thereby speeding up the economic takeoff of the rural labor in Western China is engaged in agriculture .... underdeveloped regions and realizing a coordinated develop­ The only way to narrow the difference between inland areas ment of the regional economy. and developed areas is to develop in-depth processing and Judging from the development in different areas along the high-tech industry in the inland areas with their abundant Eurasia Continental Bridge, the cities in the western part of resources, to promote continuous industrial growth, instead the bridge, such as Rotterdam, Paris, Bonn, Minsk, Moscow, of sticking to the traditional model of supplying natural re­ and Kiev, have marched into the advanced industrial society, sources and primary products. The important way to solve the whereas the areas in West Asia, Middle Asia, and East Asia unbalanced development between different areas is to rely on are still in the process of industrialization and urbanization. the railway line and bring the role of the central city into Even in the Chinese section of the New Continental Bridge, full play by amassing technology and manpower, which is

EIR June 14, 1996 Feature 37 significantfor the development of small towns as well as the Beijing and Tianjin, the two municipalities, can be the brain creation of a sound environment for the development in poor of the Bohai Bay Rim Region; and Liaoning and Shandong regions .... Peninsula can be the two wings of the bird; Hebei Province is The effective policy to rule the west of China in Chinese the bird' s body, and Shanxi Province, the most important base history is to immigrate labor from East into the West and for coal, can be said to be the tail of the bird. Now, the two depend on the transportation line to promote the economic wings have been flying, and the tail has been raised, while the growth in the West. In the Qin and Han dynasties, three im­ bird' s body, Hebei Province, urgently needs to have a strong portant policies, such as the renovation of water conservation muscle and full-fledgedimpressive stature. This raises a new projects, the immigration oflabor forces into the border areas, requirement to the economic development of Hebei Prov­ and the construction of transportation facilities were imple­ ince .... mented for the development of the economy in the West. In China, Hebei Province has the excellent conditions and For example, in the Han Dynasty, Emperor Wudi once sent unique character as well as rare opportunity to construct a 720,000 people from northeast China to the northwest border bridgehead group of the Asia-Europe Continental Bridge. areas. Since the People's Republic of China was founded, the First, Hebei Province has an excellent port condition. Lo­ Chinese government has also launched immigration pro­ cated in the northeast part of Hebei Province, Qinhuangdao grams three times, in the 1950s, the 1960s, and the 1970s, Port, since it was opened as a trade port in 1898, has been which enabled a large number of demobilized officials and operating nearly 100 years. Now the port has 53 berths, among soldiers, young students, government officials, and profes­ them one has the capacity of 100,000 tons, and the port has sionals from coastal and inland areas, to join the economic cargo-handling capacity near O.l billion tons yearly, next only construction in the West. As a result, the Xinjiang railway to Shanghai Port ....For the port there are three main chan­ line has been built up and a number of outposts, buried deep nels with water depths more than 13.5 meters, through which under the desert along the ancient Silk Road, are now shining 50,000-ton cargo ships can go smoothly; another main chan­ like dazzling pearls along the Continental Bridge. nel with a water depth of 16.5 m, through which 100,000- ton cargo ships can pass, is under construction. Therefore its handling capacity can meet the full requirements of third- and The 'flying bird' of forth-generation container transport in the world .... Jingtang Port, which is only 65 nautical miles from Qin­ the Bohai Bay Rim huangdao Port ....Here, Dr. Sun Yat-sen, the forerunner of the democratic revolution of China, proposed to construct Th e People 's Government of Hebei Province presented the "Large Port in Northern China" in his "General Plan for a paper on "Constructing the Hebei Bridgehead Group to National Reconstruction" written in 1919. He said this [port] Promote Prosperity in the Regions along the Continental should be equal to America's New York in size; it would be Bridge. " the passageway for world trade, and a supply and distribution area, which would be larger than that of New York. Finally, The main tasks marching toward the twenty-firstcentury for the port would connect Asia and Europe into a whole. After the whole of mankind are two, i.e., peace and development. foundation of the new China, the concerneddepartments sent A good number of learned people and economic experts in experts several times to do investigations, and experts from the world predict that the focus of economic growth in the Germany, Britain, France, Austria, Japan, and so on also have world is shifting towards the Asia-Pacific Region, and this come on inspection early ....All deemed that here is an ideal prediction has been verified by the economic development site for constructing a deepwater port. On Aug. 10, 1989, the tendency of recent years. While the Northeast Asia Region port began to be built formally; in July 1993, Tangshan City which surrounds Bohai Bay is the most brisk region in eco­ signed an agreement formally for jointly constructing the port nomic development, the upsurging region of economic devel­ with Beijing Municipality, and the port was named "Jingtang opment in the near future in China will be centralized in the Port." The port will be the biggest one in scale of the construc­ Bohai Bay Rim Region .... tion in China; the first phase of the project, including eight At the end of the nineteenth century and the beginning of berths with a capacity of 15,000 tons each, was essentially the twentieth century, the Bohai Bay Rim Region had been finishedat the end of 1995 ....According to the plan, by the one of the regions which initially received advanced Western end of this century, [the port's] handling capacity surpass 12 productive forces. Entering into the twenty-first century, on million tons yearly; in 2010 it will reach 22.1 million tons, the basis of the past combination and cooperation, the Bohai and by 2020, 36 million tons per year. Meanwhile, Jingtang Bay Rim Region is showing its new position to all people in Port is planning to build a large deepwater berth in Caofeidian the world .... Port. Caofeidian is located 30 nautical miles southwest of From its geographic position and its functions in the Bohai Jingtang Port .... Bay Rim Region, if the whole region is taken as a flyingbird, Huanghua Port, which is located in the eastern part of

38 Feature EIR June 14, 1996 A Chinese view of the Northern, Middle, and Southern routes of the Eurasian Bridges

o I�

Courtesy of the Organizing Committee for the International Symposium on Economic Development of the Regions Along the Euro·Asia Continental Bridge.

Hebei Province, was certifiedof ficiallyin 1993 to be the spe­ The three ports mentioned above, together with Tianjin cial port site for Shenmu coal. At the moment, the port area Port, compose the oriental bridgehead group of the Euro­ is under construction. The Shenmu-Huanghua Railway has Asian Continental Bridge .... been already listed in the Ninth Five-Year Plan and the long­ Taking Qinhuangdao Port and its neighbor, Jingtang Port, range program of 2010 of the national economy and social as a starting point, one route is to go along the Da-Qin Railway development; it goes via Dongsheng to reach Baotou, con­ to Ulan Bator, in the People's Republic of Mongolia, via the necting there with the railways of Beijing-Baotou and Bao­ cities of Beijing, Datong, and Erlianhaote, and then further tou-Lanzhou. Along with the construction of the port and enter into Russia to be connected with the Siberian Asia­ routes and the need for economic development, Huanghua Europe Continental Bridge. The whole length of this conti­ Port already has the condition to become one part ofthe Orien­ nental bridge is 1 1,200 kIn from Qinhuangdao Port of Hebei tal Hebei Bridgehead Group of the New Asia-Europe Conti­ Province, China, to Rotterdam Port, Holland. nental Bridge. Another one is to go to Alashankou along Da-Qin Rail-

EIR June 14, 1996 Feature 39 Schematic of Eurasian Continental Bridge connections to Chinese harbors via Hebei province

•••• �ah.. """ 1lIIIIIour Alar Mounlaln Pass IIiItI'l $� a-.tam WAASZAWS

frlJ.:It ��:fk�mlijl*rsm���1E A SKElCH OF HEBEl PROVINCIAL tllltt.'kl*; MAP Raih\1l,y in PL1nnins CLUSJERDED BRIDGE TOWERS LINK. TO THE EURASIA CONTINENT BRIOOE

Courtesy of the People's Government of Hebei Province.

way, via the cities of Beijing, Baotou, Wuwei, to be connected with the new Euro-Asian Continental Bridge, and then via 'Set up a Continental Bridge Alkdouka, Kazakhstan; Ufa, Russia; Minsk, Belarus; War­ Development Bank' saw, Poland; Berlin, Germany; to reach Rotterdam Port. The whole length of this continental bridge is 10,700 kIn.... Song Fa-tang 's paper was entitled, "Strengthen Eco­ It is worth mentioning that we should have the world in nomic Cooperation Among the Countries and Areas of the view and the future in view. . . . Hebei Province will also New Euro-Asian Continental Bridge Zone and Promote the encounter an unprecedented development opportunity, Economic Development of Shandong Province. " Song Fa­ brought by the construction of the Bering Strait Submarine tang is vice-secretaryof Shandong Provincial PartyCommit­ Tunnel. The narrowest location of the Bering Strait between tee and managing vice-governorof Shandong Province. Chukchi, Russia and the North American Alaska Peninsula, is only 85 kIn wide. Already in 1905, the "Cross Alaska­ The New Euro-Asian Continental Bridge Zone (NEACBZ) Siberia Railway Company" was set up by Russia and lays a very good foundation for establishing a new type of America. In 1986, a tentative plan for establishing a Bering companion relations and for developing regional cooperation. Strait Undersea Tunnel was put forward. After that,in 1992, The Chinese government has already appointed the Rizhao 1993, and 1996 three successive international meetings have Port of Shandong Province as the eastern bridgehead of the been held especially to discuss this issue. As soon as the NEACB .... Bering Strait Tunnel is finished, the U.S.A., Russia, China, Shandong is in the easternpart of China, bordering on the and some Asian countries will be connected together. So, sea. It is a big economic province of China, located at the east the Qinhuangdao Port, Jingtang Port, and Huanghua Port of point of the new Euro-Asian Continental Bridge and facing Hebei Province will be one ofthe nearest ports of China from the Korean Peninsula and the Japanese Islands across the west exit of the tunnel, and it, also, will become one of bridge­ sea. Shandong's resources are abundant, and railways and heads connected with the Asian and North American Conti­ highways radiate in all directions. There are many seaports in nental Bridge. Shandong. Rizhao Port, the continental bridgehead, is very

40 Feature EIR June 14, 1996 wide and the water is deep enough. One kilometer away from ince has made investment in this field and set up a training the coastline, the natural water depth is 13 meters .... The organization in Rizhao to train qualified personnel for the opening of the new Euro-Asian Continental Bridge makes sake of serving for the exploitation of labor resources along the nature of Rizhao City change greatly: changing from an the continental bridge line. We imagine that through the joint ordinary port city into the pivot city of land and sea, which efforts of all sides, we shall develop this organization into connects Europe in the west and Asia and the Pacific Ocean an international personnel training base, which will keep its area in the east. ...Rizhao has favorable conditions (that are foothold in China, but will be geared to the needs of Asia and rarely found elsewhere in the world) to build a large deepwa­ Europe, in order to better serve the regional cooperation of ter port and maritime industry. We can build an international the NEACBZ. container transshipment center here .. ..Seize the opportunity to build an ore wharf of the scale of 150,000-200,000 tons, and open as quickly as possible sea lines from Rizhao to Eurasia needs 'development poles' South Korea and to Japan. At the same time, we shall set up a bridgehead opening-and-developing experimental district The paper by Hou Chen Yi, vice-mayor of the People 's in Rizhao City, delineating a certain area which will include Municipal Governmentof Jiaozuo, was entitled, "A Primary the seaport, and giving it favorable policies similar to those Analysis of the Role of Jiaozuo in the Economic Development of the special economic districts. We shall also select certain of the Regions along the Euro-Asia Continental Bridge. " regional central cities in the Continental Bridge area to set up "Special Continental Bridge Districts" for the sake of giving With the construction emphasis of China advancing from the impetus to the growth of the bridgehead economy area and east to west, a new development patternof the national econ­ the Continental Bridge Economic Belt. .... omy has formed. The "four modernizations" drive of the [Our proposals are:] country started with the prosperity of Eastern parts brought • Complete as quickly as possible the construction of the about by the "open to the outside world" policy, and will only necessary infrastructure networks that tally with the needs of be fully fulfilled with the opening up, developing, and soaring the NEACBZ. The main line skeleton of the new Continental of the Western parts. But from the prosperity of the East to Bridge railway has already been completed; the immediate the economic soaring of the West, the transitional zone in the thing for us to do now is speed up the necessary adjuncts for center takes an important part. That is to say, the development the skeleton. We should have the spirit of "j oint construction, and soaring of the West will rely on a highly developed cen­ joint ownership, and joint responsibility ," complete the neces­ tral, transitional zone. And the key step for the central part sary constructions in railway, highway, communication, and of China to develop quickly is to concentrate development pipelines .... emphasis on a few cities of relatively sound foundation, i.e., • Set up a continental bridge development bank to to foster several "developing poles" or to break through at a strengthen the ability of circulating capital for the economic few points ....By having a bird's view of the map of China, cooperation of the NEACBZ. The Chinese part of the new you will findthat Jiaozuo is right at the juncture of the East Euro-Asian Continental Bridge is mostly located in those ar­ and the West, the South and the North, right at the center of eas of our country still awaiting development. Both the con­ the Longhai and Lanxin new economic zone along the new struction of infrastructure and the economic construction Euro-Asia Continental Bridge. The superior geographic posi­ along the continental bridge line need to be speeded up and tion provides Jiaozuo with the practical possibility of acting need a great amount of investment. In order to make Europe, as a linkage between the South and the North, and between Asia, and the Pacific area join in the economic operation of the East and the West. But to tum the possibility into a reality, the NEACBZ more effectively, we may consider setting up a Jiaozuo should have a sound economic basis for introducing, continental bridge development bank, whose special function digesting, absorbing, and spreading advanced technology and is to be responsible for the economic development of the management skills .... NEACBZ and establish bank branches in the important cities From the viewpoint of its communicational conditions, along the continental bridge, using a new financial system to Jiaozuo is located at the juncture of the two large economic promote the opening, development, and joint cooperation of zones to the East and West, at the boundary of Henan with the NEACBZ. Shanxi. Five railways extend across the region. They are the • Found a continental bridge internationalcenter for the Beij ing to Guangzhou Railway, the Jiaozuo to Liuzhi Rail­ training of qualifiedpersonnel to promote the exploitation of way, the Jiaozuo to Xinkiang Railway, the Jiaozuo to Taiyuan labor resources. The labor resources along the continental Railway, and the Houma to Yueshan Railway. The National bridge line are abundant. ... We should help the people in No. 207 and No. 107 highways and seven interprovincial these areas to master the skills of developing production and highways connect Jiaozuo with the surrounding regions. strengthen cooperation in such respects as education ex­ From the viewpoint of its development potential, Jiaozuo is change and vocational training. Currently, Shandong Prov- one the three important members of the "Middle Golden Tri-

EIR June 14, 1996 Feature 41 Eastern end of the new Eurasian Continental Bridge

......

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Courtesy of Gao Zhengang, Editor, "A Study on the Strategic Significance of the New Euro-Asia Continental Bridge," Jinan, 1996.

angle" mapped by the provincial governmentof Henan. Nu­ raw coal in 1995 hit more than 10 million tons and the yearly merous experts have come to a common understanding since export volume of its anthracite accounts for one-fourth of that the proposal of Prof. Fei Xiaotong was put forward, that the of the whole country ....The region is rich in both superficial Middle Golden Triangle shall be the Dragon Head of Henan 's and groundwater resources. The Yellow River, Danhe River, economy, the central pivot of the economic corridor along the and Qinhe River run across the region. The total available New Euro-Asia Continental Bridge and the relay station of water reserves amount to 2.83 billion cubic meters, 884 cubic the hot economic spot on its way shifting to the West. At meters per capita ....The verified reserves of limestone hit present, key national projects like the Key Water Control 0.3 billion tons, those of bauxite amount to 50 million tons. Project of Xiaolangdi, Qinbei Power Plant, and the Water Both of them are essential raw materials for the aluminum Transferring Project from the South to the North are under industry ....The reserves of bauxite in nearby Luoyang and construction in or near the region, with an enormous amount SanmenxIa reach 0.3 billion tons .... of investment pouring in a very short period . Since the beginning of economic reform and implementa­ . . . Basic industries like energy and raw materials have tion of the opening-up policy in China, Jiaozuo has focused long been known as the "bottleneck" industries and will re­ its efforts on the development of power, coal, chemical, and main one of the major factors that restrain a quick develop­ aluminum industries to make its resource advantages yield ment of the national economy in the Ninth Five Year Period well. By attracting investments through various channels, and an even longer period after that. The immense area of Jiaozuo has launched a batch of large enterprises influential Central and Western China is rich in natural resources and both at home and abroad. And a base for energy and heavy has a great potential in exploiting and utilizing these natural chemical industries is taking shape .... resources. To transform the resource advantage into an eco­ The vast region of Central and Western China is rich in nomic advantage, is the only practical way of vitalizing the arable land resources. But the land resources remain insuffi­ economy of the Central and Western parts of China ....Jiao­ ciently developed and of poor productivity .... So it is of zuo is also rich in natural resources ....Jiaozuo is one of the prime importance to accelerate agricultural development and earlier developed bases of anthracite in China ....Output of help the rural economy thrive. In this respect, the Jiaozuo

42 Feature EIR June 14, 1996 region has successful experiences and practices for other re­ instance, in the section of the countries of CIS, there is a gions in Central and Western China to learnfrom .... It has 1,520 mm-wide gauge, but in China and European nations, a long history of agricultural development and a tradition of there is a 1,435 mm standard gauge. The gauge difference intensive and meticulous farming .... In 1995, the average makes the trains on either end of the bridge unable to pass output per mu [1 hectare=15 mu] reached 476 kilograms ... through it directly. Two transshipments are needed, thus among the four counties north of the Yellow River, where wasting time, raising the loading and unloading expenses, one mu of land can produce one ton of grain, three are under and increasing the risk of damage to or loss of goods. In Jiaozuo jurisdiction ....A new strategic plan, however, has this sense, the gauge difference can be regarded as the key been worked out recently for the further development of agri­ element in slowing down the high-speed transportation abil­ culture and the rural economy, based on a new and high start­ ity of the NECB. For this reason, it is the main task of the ing point. Jiaozuo will accelerate the speed of industrializing organization of the NECBRT to construct a new main line the rural economy and integration of urban and rural areas. in the countries of the CIS to standardize the gauge and ...It is targeted to establish a comprehensive exemplary area finally to realize direct passage from one end of the bridge of agriculture for the nation, integrating high technology and to the other. bio-ecology with high efficiency, and to set up a base for 2. To unify customs inspection. The NECB passes processing and export of farm products and by-products, a through many countries,and every country has its own rules base for earning foreign currency, so as to provide Henan and for customs inspection. ... After unification, no matter other regions along the Continental Bridge more and better where the goods are transported, they will not be re-inspected experiences. by other nations once they have been inspected by one of the member nations of the NECB organization. In this way, time can be saved, and transportation expenses reduced. Organizing railway transportation 3. To unify transportation expenses .... 4. To unify settlement of payments. As the NECB runs "On the Organization of the New Eurasian Continental through many different countries, it would be very difficult Bridge Railway Transportation, " was submitted by the Eur­ for the goods' owners to pay freight [charges] separately to asian Continental Bridge International Transportation and individual countries-more expenses may be charged and Trade Co. Ltd. Research and Development Center. unnecessary disputes may occur. It would be preferable if the goods' owners could pay the whole transportation charge Since the connection was completed in 1990, the New Eur­ through a unified settlement center, which would assign the asian Continental Bridge (the NECB) has become the most deserved part of the charge to each nation .... popular topic concerned with Eurasian cooperation. In Janu­ 5. To coordinate the different aspects of the transporta­ ary 1996 seven nations, including China, Kazakhstan, Japan, tion system. and South Korea, signed an agreement to increase the volume The NECB is a system in which railway transportation of the goods transported through Druzhba-Alataw Pass on is only one significant part. To develop a whole system, the basis of cooperation and mutual benefit. At the Asia­ other fields are needed, such as modernized storehouses, Europe Summit Meeting, at the beginning of March, this linkups between sea and railroad transportation, statistical topic was again widely mentioned by the conference partici­ information about the transported goods, retrieval of empty pants. containers, and modernized tracking services, etc. Just as a We think, that in order to take advantage of the Continen­ conductor is needed in an orchestra, without a powerful, tal Bridge's convenience and safety for railway transporta­ highly efficient coordinating institution, it would be hard to tion, and to make it a significantbreakthrough for Eurasian coordinate each subsystem's operation .... cooperation and a Eurasian economic corridor in reality 6. To unify arbitration. In the process of carrying goods worthy of its name, we must quickly build an organization through the NECB, it is inevitable that economic disputes of the New Eurasian Continental Bridge Railway Transporta­ will occur between the goods' owners and carriers,typically tion (abbreviated as NECBRT) ....Led by an international when goods are damaged or lost. ...If im arbitration institu­ organization with participation by the railway transportation tion is set up, all lawsuits ' and claims can be presented to it departments and/or major Eurasian enterprises, especially for settlement, and proper rights can be safeguarded. those from along the line, this organization should be a 7. To arrange and utilize funding. The differences in transnational coordinating institution which accords with speed and gauge are the main factors limiting the rapid international practice. Only on this basis, can a series of development and standardization of the NECBRT. The dif­ organized measures be adopted. ferent facilities and conditions in each section cause the (Proposed measures:) speed differences. For example, in the sections of China and 1. To standardize the gauge. For historical reasons, there Central Asian nations there exist substandard sections, which exist different gauges in each section of the NECB. For require technical transformation. As for the unification of

EIR June 14, 1996 Feature 43 gauge, a new main line is needed to go through the countries According to the national railway network plan, total rail of the CIS. It can have two routes: one is northward from kilometers in China will be 65-70,000 by the year 2000. Th� Kazakhstan, via Russia and Belarus, linking up with Euro­ rail line technical improvements related to the [Eurasian pean railways in Warsaw, Poland; the other is southward Bridge] corridor are as follows: from Kazakhstan, via Uzbekistan and Turkmenistan, ending • Double-tracking ofthe Xuzhou-Lianyungang Railway. in Iran. The construction of the new main line needs a large Part of the line, 254.4 km long, has been double-tracked, and investment. ...For this reason, a transnational development the entire length will be completed soon. bank should be established by the international community • Technical improvement of the Baoji-Lanzhou Line. and nations along the bridge. On the basic principle that This 503 km-long line has very bad geographic conditions. whoever invests benefits, the bank would raise funds from The present loading rate at Tianshui station is very high, the international community for the construction of the which forms a bottleneck for the Northwestern areas. As a NECB and technical transformation of the basic facilities, main artery between the West and the East, it is necessary to and finally, under a properly formulated plan, construct a extend its capacity to 45 million tons by 2000; the Baoji­ high-speed railway in the Asian section, to achieve the rapid Zhongwei Railway has been constructed as a channel to share development of Eurasian railway transportation. part of the volume. • Doubling the Houma-Yueshan-Xinxing-Heze-Shijiu Railway Network planning along • Electrification of the Baotou-Lanzhou Railway • Electrification of the Gantang-Wuwei Railway the continental bridge • Reconstruction of the Lanzhou-Xining Railway • Reconstruction of the Nanjiang Railway A paper on "Multimodal TransportNetwork Planning in On the south-north axis lines, the main improvements are the Regions along the Euro-Asia Continental Bridge, " was as follows. submitted by Mao Bao Hua, Yuan Zheng Zhou, and Shen Fei, • Electrification of the existing Beijing-Shanghai (Jin­ Department of Transportation and Management Engineer­ ghu) Railway and construction of a high-speed line. The pres­ ing, Northern fiaotong University, Beijing, and by Zhu fun ent loading rate on the existing Jinghu Railway has been satu­ Feng, Institute of Comprehensive Transportation, National rated, especially in the section between Xuzhou and Bengbu. Planning Committee of the P.R.C. The excerpts below are Simultaneously with its electrification,it is necessary to build mainly from the section on railroad construction. a high-speed passenger railway, to increase the carrying ca­ pacity of the Jinghu corridor as well as the absorption of After the successful linkage between the Beijiang Railway of the bridge. China and the Tuxi Railway of Kazakhstan, a new Euro-Asia • Electrificationof the Beijing-Guangzhou Railway Continental Bridge has been formed. The regions related with • Double-tracking the Jiaozhi Railway the Continental Bridge include 4,100 km of railway lines in • Construction of the Beijing-Jiulong Railway: This rail­ China, and include 11 provinces, 411 cities and counties, 220 way greatly improves the transport between south and north, million population .... directly to Hongkong. As an East-West corridor, the Longhai-Lanxin Railway • Construction of the Xian-N anjing Railway from Lianyungang of Jiangsu Province to Alashankou ofXin­ • Construction of the Baotou-Xian Railway. This rail­ jiang Autonomous Region, links many other railways. Eight way, 914 km long, provides connection with Inner Mogolia, railways South and seven railways North of the corridor are North Xianxi and Middle-China. available. These 15 railway lines connect most of China. • Xian-Ankan Railway .... However, there still exist problems in the corridor, such as • Xingyi-Changxing Railway. As a regional rail line, it the following: plays an important role in the economic promotion of North 1.1.1. Baoji-Tianshul section is a single line of lower Jiansu. After 2000, it is also necessary to perfect the rail corri­ standards. Maximum speed in parts of the section is only 45 dor. For example, it may take various seaports as nodes to kmlhour, which limits the capacity of the whole line. construct a coastal railway such as the Longkou-Weifang­ 1.1.2. The utilization on some of the line and related mar­ Linyi line, the Suide-Liulin-Xuzhou line, the Lanzhou-Y ang­ shalling stations have exceeded 90%. The Yanzhou-Shijiu pingguan line, the Xining-Chengdu line, the Alashankou-Jin­ line, a single line, is near saturation in capacity. ghe-Buole-Yining line, the Wusu-Aletai line, the Xining­ 1.1.3. The Ciyao-Bengbti line has touched its saturation Zhangye line, etc. From a long-term point of view, it is neces­ point, which would affect the absorption of the bridge in sary to build the Zhongwei- Taiyuan line, the Shang-Lanzhou Southeastern areas. line, the Geermu-Kuerle line, the Ledun-Beidun line, etc. The 1.1.4. Westernlines have greater unit operational cost. .. total length will amount to 100,000- 140,000 km .... [which] has affected the operational profits.... On pipelines, it is necessary to construct the Wuwei-Lan-

44 Feature EIR June 14, 1996 zhou-Baoji-Chengdu-Zhongqing pipeline and the Baoji-Luo­ to Chicago. Canadian Pacific Rail System, another railway yang pipeline for end-product oil. After 2000, we should build company ofNorth America, also engages in transportthrough the Akesu-Kuerle-Tulufan line, the Wulumuqi-Yumen-Lan­ the continental bridge of North America. The railway mileage zhou-Baoji-Xian-Luoyang line and Luoyang-Nanyang line of the CP Rail System runs is about 11,850 km.The service for crude oil transport; and the Jining-Luoyang- Xiangfan line, railways are as follows: Port of Vancouver to Toronto and Luoyang-Pingdingshan line and Zibuo-Jinan-Xuzhou line for Montreal, running time 70 hours and 110 hours respectively. end-product oil transport. The coal pipelines technique must · ..Each year about 200,000 TEUs are transported. also be emphasized. The COSCO Group has opened the shipping route from China to the East Coast of America, once a week. We have also opened up sea routes from China to Long Beach and Container transport Oakland [California] . China to Seattle and Vancouver [oper­ ates with] one voyage each week, using large container liners.

The Science Research Center of the casco Group con­ · ..The world's largest containership, of 5,250 TEU s, will be tributed a paper, "On Container Transportation of the operated on this sea route this year ....The cargo transported casco Group and the New Euro-Asia Continental Bridge. " is mainly, consumer goods used in the continent of North America. Those goods are transferred by the continental ...Along with the development of the national economy and bridge door-to-door through an international,intermodal con­ the increase of foreign trade, container transportation has be­ tainer system. come an important part of China's national traffic.... In the 2. The Trans-Siberia Euro-Asia Continental Bridge links fiveyears of the end of this century, on the basis of container­ up the Far East region of Russia and Europe ....This conti­ ized traffic in China, we are going to do the following: The nental bridge makes favorable geographical conditions, international container shipping industry will be the focal speeds up the turnover of ships and trains, and greatly in­ point of development. The containership fleet will be opti­ creases the traffic efficiency. The container transport by this mized and enlarged. The infrastructure construction of central continental bridge developed steadily and is highly praised seaports and the ports along the main shipping routes will by transfer companies and customers of other countries. The be sped up. The container distribution systems of railroad, traffic of this continental bridge started in 1967. For the rea­ waterway and highway are going to be established and im­ sons of management, only 511 TEUs were transported during proved .... the years 1967 to 1970. In September 1970, Japan and the ...The COS CO Group, the largest shipping enterprise in U.S.S.R. held negotiations and reached an agreement on de­ China, has applied the world's most advanced technologies veloping transport between Japan and West Europe by the in shipping, international logistics, and information process­ Trans-Siberia Euro-Asia Continental Bridge .... Although ing, to keep in step with world advanced science and technol­ the traffic on the Trans-Siberia Continental Bridge fluctuated, ogy, in developing the ocean shipping industry of China .... enormous profits were gained by the bridge transport. . .. The amount of container ships owned by COS CO Group is . According to relevant documents, income is US $130 million in the second place in the world. The COS CO containership from transports of 70,000 TEUs each year from Japanese fleet operates 156 ships of total capacity 174,000 TEUs ports to the city of Brest (at the Polish-Russia border) via the [trailer equivalent units, the equivalent of a 20-foot trailer­ Port of Vladivostok and the Trans-Siberia continental bridge. ed.] .... As a transnational shipping corporation, COSCO · ..According to estimations, as many as 300,000 TEUs will fullyutilizes the continental bridge in its business .... be transported each year by 2000. A continental bridge is a bridge of transcontinental inter­ The container traffic on the Trans-Siberia Continental modal traffic,usually from coast to coast to form international Bridge is mainly transport between Japan and Europe, or Ja­ intermodal transportation. pan and Near East Asia (Iran, Afghanistan). . .. The time The main continental bridges in the world are the fol­ period of transportation is about 35 days .... lowing: 3. The New Euro-Asia Continental Bridge ....It has been 1. The continental bridge of North America transcrosses a key problem for world transport industry and customers to from the East Coast to the West Coast. In the United States find out and open up a new continental bridge between Asia and Canada there are several railways which transcross from and Europe. The realistic New Euro-Asia Continental Bridge the PacificCoast to the Atlantic Coast. The distance between is as following: The bridgeheads at one end are the Port of the two coasts is 4,500 km. Every day the Burlington North­ Rizhao, Port of Lianyungang, Port of Shanghai in East China, ern Railroad Co. of America sends out eight double-stack and Port of Guangzhou and Port of Shenzhen in South China; container trains from the Port of Seattle. The number of con­ the bridgeheads on the other end, are ports along East coast of tainers transported by train each year is about 300,000 the Atlantic Ocean, Black Sea, and the Mediterranean Sea .... TEUs ... [The continental bridge] can speed up the traffic: The characteristics of the new Euro-Asia continental 100 hours from Seattle to New York, 62 hours from Seattle bridge are as follows:

EIR June 14, 1996 Feature 45 Sketch of the 'Trans-Asia-Europe Optical Cable Trunk System'

From paper of Wang Hongjian, Ministry of Post and Telecommunications of China.

a) There are a lot of bridgeheads at the two ends of the tions of the Ministry of Posts and Telecommunications of continental bridge .... China, presented a paper on "The Trans-Asia-Europe Op ti­ b) ...Because the New Euro-Asia Continental Bridge cal Cable Trunk System. " attracts cargo sources from a large area and has a broad hinter­ land, so, in the future, there will beplenty of containers .... The proposal to construct a Trans-Asia-Europe overland c) The regions along the continental bridge are rich in optical cable trunk system was first made by the Ministry resources .... of Posts and Telecommunications of China. The system d) ...The New Euro-Asia Continental Bridge is 3,000 km starts from Shanghai, China in the East and terminates in shorter than the Trans-Siberia Continental Bridge .... Frankfurt (Main), Germany in the West. It shall go through e) A favorable natural condition and mild climate. The Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, Turkmen­ East and West bridgeheads are all ice-free ports, so that cargo istan, Iran, Turkey, Ukraine, Poland, Azerbaijan, Georgia, handling can operate all the year round .... Armenia, Belarus, Romania, Hungary, Austria, Pakistan, and f) According to the forecasts, the traffic volume may be Afghanistan. It serves 20 countries in all, measuring some 70,000-80,000 TEUs every year under normal conditions. So 27,000 km in total length. it is possible to launch a through train each day from both the When it comes into being, it will be the world's longest East and West terminals .... terrestrial cable system. Proposal of the project: With the rapid growth in inter­ national economic relations since China's reform and open­ Fiber optics communications ing policy, a serious shortage of facilities for international communications has long been felt, as the overseas telephone Wang Hongjian, director of the International Engineer­ traffic in China has been increasing at a rate of over 30%

ing Division at the Directorate General of Telecommunica- annually at the beginning of the 1990s ... .

46 Feature EIR June 14, 1996 Communications with European countries have greatly system as well as the system as a whole; any outstanding grown in volume, but, hitherto, transmission has had to use problems are to be solved. satellite. Compared with satellite transmission, optic fiber Some countries, such as China, Turkey, and Germany, cables have the advantages of much larger capacity, less etc., have almost finished the construction of their segments. time delay, and better quality in transmission; especially in It is expected that the cable system of main route will be view of the prospective development of various information completed and ready to start operation by April 1997. services in the twenty-first century .... Therefore, the Ministry of P&T of China made the pro­ posal for the project of the Trans-Asia-Europe Optical Fiber Oil and gas pipelines Cable (TAE) System. Many telecommunications carriers in Asia and Europe expressed their great interest in such a A paper on "Strategic Thoughts on Constructing an Asian project and responded to the proposal. Oil and Gas Continental Bridge (A OGCB)" was submitted At a TAE project seminar held in September 1992 in by Li Dai of the Commission fo r Integrated Survey of Natural Beijing, the representatives from fiveCentral Asia countries Resources, Chinese Academy of Sciences, Beijing. at firstexpressed their interest to join the project and believed that this is the best way for them to communicate directly The Asia Oil and Gas Continental Bridge (AOGCB), linking with other countries. up the Middle East oil-gas resources and the Far East market, Germany, Poland, and Ukraine also expressed their inter­ will become an important route of international oil and gas est in such a project, with a view that the rapid economic trade, which to some extent will replace the shipping route development occurred in Asia, especially in China .... between the Middle East and Far East. ... In April 1993, the Agreement on the Construction and The AOGCB would join the most plentiful oil and gas Organization of the Trans-Asia-Europe Optical Fiber Cable resources and the main oil-gas import area in the world .... System was signed by representatives of the eight countries The Caspian Sea, surrounded by Russia, Kazakhstan, taking part in the construction of the cable system, at a Turkmenistan, Azerbaijan, Iran, probably ranks third, follow­ meeting held in Urumqi in China, and the project was for­ ing the Persian Gulf and Siberia, in richness in petroleum and mally started. natural gas ....The internationalcooperation of the AOGCB In January 1994, Turkey and Iran joined TAE as parties. will be very helpful for these countries to exploit their re­ They called this project a "Silk Road," since the cable line sources and participate in the oil and gas international in West Asia follows generally a route of the ancient silk trade .... road ... The Chinese petroleum shortage is an increasingly big The technology and service of the circuit: All of the problem in the future. Most of the main oil fields in eastern cables are buried or ducted at least 1 meter deep. Restoration China are exhausted .... The AOGCB would promote the has been established at each segment for the safety of the import of ...oil and gas and exploitation of the westernChina whole system. oil fields.. .. The petroleum reserve along the AOGCB is The number of fibers in a cable is 18, 24, 30, or 48, as about 40% of China's reserves, especially in Northwest the volumes of capacity are differentin each segment. Most China ... of the transmission stations will install the advanced SDH The AOGCB would realize the plan of building a pipe­ 622 megabits per second or SDH 2.5 gigabit per second line from Xinjiang to Eastern China .... If the AOGCB is transmission equipment. It means that 7,500 to 30,000 cir­ set up, the freight volume to Japan and Korea would reach cuits can be passed through one pair of fibers. at least 30 million tons, which is one-sixth of their petro­ The TAE system can provide high-quality digital circuits leum import. for the transmission of voice, data, fax, graphics, and other The AOGCB would be a multifunctional economic sys­ kinds of information .... tem. [As an] international petroleum and gas conveyance Progress in construction: The construction of the cable system, this oil and gas pipeline of about 4,000 km in length system may be divided into three stages, as follows: would be an important thoroughfarefor Middle Asian coun­ 1. The preparatory stage (September 1 992-June tries, providing connection to the sea once the pipelines are 1994) .... connected to those of Eastern China, Xinjiang Province and 2. The construction stage (June 1994-January 1997): the Middle Asian countries. Next, we would connect to the during which the signatory countries are to construct their Middle East pipeline and link up the Middle East resources respective cable segments, to complete the installation of with the Far East market. Once the Asia Petroleum Continen­ equipment, and, as necessary, to conclude agreements re­ tal Bridge is built, the distance between petroleum resources garding maintenance, border division, etc. and Japan and Korea would be shortened by some thousands 3. Check and acceptance stage (January 1997-March of kilometers. Chinese ports would become the starting-point 1997): Tests will be conducted on every segment of the of international petroleum trade in the Asia-Pacific area.

EIR June 14, 1996 Feature 47 China 25 years later A personal report on this vastnat ion's op timismand will to develop, by Schiller Institute fo under HelgaZepp LaRouche.

It should not be surprising, that the picture that Western "stud­ by Lyndon LaRouche, several provincial governors said ex­ ies" and media reports paint about China, has little to do with plicitly, that the aim of this program was not only the infra­ the real historical processes going on in this country, whose structural integration of Eurasia, but also that the inner and culture is one of the cradles of humanity. Twenty-five years western regions of China had first to be brought to the eco­ aftermy first visit, I have just visited the People's Republic nomic level of the developed east of the country, and then to of China for the second time. I believe that the comparison of a world level. This thought alone represents the exact opposite the situation, then and now, says more about the reality of to that of the Gang of Four. the situation in the "Middle Kingdom," where one-fifth of Beyond the economic component, the chairman of the humanity lives, than all the widespread reports about China. symposium, State Councillor Song Jian, emphasized the When I firstvisited China in summer 1971, the Cultural great, civilizing effect which the building of the Silk Road Revolution was in full swing. The Gang of Four dominated has represented for the development of humanity for 2,000 politics, the Red Guards had done everything possible to years. According to Song Jian, when the first land corridor drown China's ancient cultural heritage in red paint, and the connected Europe, Africa, and Asia, during the reign of Em­ intellectuals were considered "class enemies" who had to be peror Han Wu of the Han dynasty, when commercial camel re-educated through physical labor in the countryside or in transport crossed the mountains and travelled across China, cadre schools. Among the strongest of my impressions, were and Central, South, and West Asia, to Europe and North Af­ the progapanda and the revolutionary Beijing Operas which rica, these contacts laid the seeds of civilization and friendship were blasting from ever-present loudspeakers. along the Silk Road. According to Song Jian, the new Conti­ China, which Leibniz called, with Europe, one of the two nental Bridge, also, should not be regarded only as a transport poles of civilization, lived through one of the darkest chapters line, but also as an important connection for the exchange of of its 5,OOO-year history. As a young journalist, I was one of goods and technology, cultural communication, and friend­ the firstWestern visitors who could visit China afteryears of ships among the peoples of Euro-Asia. isolation. When I just now returnedto Beijing at the beginning The worth of this kind of political approach, cannot be of May, to participate in the International Symposium on overestimated. The contrast to the evil geopolitical theses Economic Development of the Regions Along the New Eur­ of Samuel Huntington, about the alleged "looming clash of asian Continental Bridge, I felt, during the first days, like a civilizations," is obvious. Huntington today is on the spiritUal traveller in a time machine. Beijing was hardly recognizable. level of the Cultural Revolution: "Let the foreign devils kill Of course, I had been hearing and reading numerous reports each other!" was the rallying cry then; now, it is today the about the impressive development of China, but only this essence of his "study." personal comparison enabled me to findthe expression which these reports omitted: There is no country in the world, which British sabotage efforts has seen such a dramatic change in the past 25 years, not Despite the effort from the side of the British faction, only in vast parts of the country, in economic terms, but also through the European Commission, and especially Sir Leon psychologically! Brittan, to delay and sabotage this symposium, and finally, The comparison to Germany between 1945-70 struck me. when all these tactics failed, to force the programmatic per­ Even if China is, certainly, still governedby communist struc­ spective of the Continental Bridge into the vise of British free­ tures, fear and paranoia in the popUlation had given place to trade politics, by, at least, integrating it into the framework of a kind of calm optimism, and a very different dimension of the the March Asia-Europe Meeting in Bangkok, this conference culture of the country, besides communism, became evident. represents an historical breakthrough. The enormous optimism and the will to develop, alone, Now, with the establishment of the New Eurasian Conti­ which were expressed by the Chinese side at the symposium, nental Bridge, the issue is on the table, and, at least, ratified were impressive. While the title of the conference already as governmentpolicy by the governmentof China: this, which contains the concept of "development corridors," as proposed might be called the project of the twentieth century, which

48 Feature EIR June 14, 1996 Helga Zepp LaRouche addresses professors and students during her second visit to China, in May 1996. "There is no country in the world, " she writes, "which has seen such a dramatic change in the past 25 years, not only in vast parts of the country, in economic terms, but also psychologically! "

the British-dominated oligarchical faction has already started Continental Bridge its state policy. This year, the government two world wars to prevent. Since the times of French Foreign integrated the expansion of the Continental Bridge into the Minister Gabriel Hanotaux, Georg von Siemens, Count Ninth Five-Year Plan of National and Economic and Social Sergei Witte of Russia, and Dr. Sun Yat-sen, the father of Development, and the Long-Term Targets for the Year 2010. modern China, at the turn of the twentieth century, it is clear that the econorruc and cultural integration of the Eurasian Rich culture, complex history continent is the decisive step needed to overcome the oligar­ But, is not China ruled by the last important communist chical system and its imperialist and colonialist variations. dictatorship? Does not China represent the biggest military The geopoliticians around Karl Haushofer, Neville Stuart threat of the future? Did not Lester Brown, of the W orldwatch Chamberlain, and Halford Mackinder, have, since that period, Institute, recently say, that the earth's food chain is threated been painfully aware of the danger that successful national by so many Chinese? economic cooperation, on the basis of community of princi­ Perhaps the picture becomes clearer, if one takes the fo l­ ple, would render British balance-of-power political manipu­ lowing into consideration: Like Germany, China is a country lation ineffectual, and make the British empire irrelevant. The with a very rich culture, and very complex history. Some of potential for such cooperation was demonstrated through the these problems are, so to speak, home-grown, i.e., they result construction of the Berlin-Baghdad Railroad and the railroad from Chinese or German philosophical tendencies; others are from Paris to Vladivostok. the result of universal conflicts of history. Yet, if you study Edward VII used all his evil energies, first as Prince of universal history, in its entirety, it emerges that the only thing Wales, and later as king, to destroy this potential cooperation, that matters, is whether the axioms that underlie the thinking through the anti-German Entente Cordiale, and later the and direction of politics, are such which characterize a devel­ Triple Entente, the Russo-Japanese War, and wars in the oping society, or a society destined to destruction. Balkans, until, finally,the chessboard had been set up for the Even if it perhaps shocks the reader: From this standpoint, First World War. The larger portion of the tragedies of the one can only draw one conclusion from the lack of cultural twentieth century, including two world wars, were the result optirrusmin the United States today, as compared to 30 years of these British policies. ago, and the lemming-like tendency towards self-destruction Now, at the end of this century, China is the country of the Europeans: The West, the United States and Europe, which, more than any other, has made the expansion of the but also Russia, are on a course that is taking them to their

EIR June 14, 1996 Feature 49 Beijing, and from these cities I was able to make a number of excursions into neighboring areas. I visited some industries and workshops, housing areas for workers, some of the then­ famous children's palaces, several villages, schools, kinder­ gartens, and performances of the revolutionary Beijing Opera. In many personal discussions, people reported to me,­ many of them older people, especially in Shanghai, who spoke German or English-about their experiences and the conditions which had existed before the foundation of the People's Republic, and the improvements which had taken place since then. At times, an old man or woman telling me this, would have tears in their eyes. The streets in the cities were dominated by huge numbers of bicycles, rickshaws, but few cars. The apartments in work­ ers' housing areas, with one or two rooms, had to shelter families of three generations. Many houses in the countryside had dirt floors, and were heated by ovens, which extended from the kitchen to the bed. Usually there was no electricity or running water. Today, the cities such as Beijing or Shanghai give the impression of a huge construction site. There is already a large number of modem buildings, business centers, banks, and housing areas. During rush hour, there are traffic jams no smaller than in other big cities of the world. The number of cars is the same as bicycles, and many of the roads in and between the cities have been expanded, and, in some parts, they are comparable to modern highways in Europe. Invest­ ment in agriculture during the past years has led to sometimes impressive increases of producti vity. Also in the countryside, roads are being built everywhere. New villages with much Helga Zepp LaRouche in Beijing; the lion is supposed to drive better houses have been built, which now, often, have central away evil spirits. heating and running water. But, perhaps the most telling difference, is the changed psychology of the population. They express a calm determina­ own deconstruction. China, on the other side, is developing tion to go forward, and a will to never again let such cata­ itself in a direction, that is striving to build, and to overcome strophic events happen, as did during the Cultural Revolution. backwardness, and which even has the potential to enable The experience of the extreme deconstruction of those 10 China to, once again in its long history, make a universal con­ years, has brought about a shock which could perhaps be tribution. compared to the experience of the collapse in Germany in The 10 years ofthe Cultural Revolution, one part of which 1945. One should add, that there are Chinese intellectuals I experienced in the summer and autumn of 1971, was a time today who compare the rule of the Gang of Four with the of waves of open denunciations, kidnappings, and lasting ter­ "Gang of the FUhrer" of the Nazis. However, while Germany, ror against intellectuals, "pessimists," "Party enemies," and through the policies of "re-education," was not allowed to "reactionary elements," who wanted to "institutionalize capi­ find the way back to the roots of its own positive culture, talism" in China. the German classics, but rather had Anglo-American values First Mao personally, and then the Gang of Four, had forced upon them by diktat, at least part of the Chinese elite given free rein to the Red Guards, the radicalized Maoist have found their way to the more profound foundations of youth, to go after the alleged dissidents and class enemies. Chinese culture. Confucian thought is reflected in many polit­ Art treasures from the old China, and foreign representatives ical examples. of world literature, were considered equally reactionary, and often fell victim to blind destruction. Sending scientists and The Confucian concept of 'Ii' highly qualifiedworkers to work camps and the countryside, Confucius (born 551 B.C. in the southwest of today's meant an immense waste of productive resources. Shandong Province) himselflived in a time ofprofound social At the time, I visted Shanghai, Qingdao, Tianjin, and change. He opposed the despotism and arbitrariness of his

50 Feature EIR June 14, 1996 time, with a moral teaching whose highest aim was a recon­ against the negative effects of free trade. struction of society out of chaos. For Confucius, the society Representatives of this elite are convinced that a society of his time had left the right track, and was without Dao in which every individual is only running after material (path). The destruction of the previously valid rules of human values and only wants to maximize his personal benefit, will society, the attack on traditional authority from below, and lose control over civilization. One asks, what should the the decay of order; all this Confucius tried to work against. meaning of civilization be, in the coming century? If the He thought that there is correspondence between cosmic and presently dominant philosophy of the West would simply human order, a conception which is coherent with Platonic be expanded worldwide, humanity falls into catastrophe. natural law. "It was Heaven which brought about the moral Therefore, there is consideration of how to re-define the forces, which are in me," he said. notion of wealth, from the standpoint of common well-being, The idea of correspondence between cosmic and earthly and also, how a new international system of law and a new order became a lasting foundation of political culture in parliamentary system can be created. China. Representatives of this elite, are convinced that some­ A central notion of Confucianism was Ii, which demanded thing must urgently be done to change the course of the that one had to fulfill the place one has in society. Acting world and that a new civilization has to be created, which according to Ii, is a precondition for the ordering of the social will allow a real dialogue between the cultures of East and cosmos. It also means that society should not allow any break West for their mutual benefit. China is ready to bring into between past and present; it is the expression of being human, this dialogue, the entire wealth of its old classical culture, of cultured humanity. of which not least is the beauty of its art, which is of such "The virtuous man knows his duties, the lower order only value for society. sees his own advantage." In conclusion, I want to say, that my travel to China 25 For Confucius and Confucianism, therefore, the position years later is among my most rewarding experiences. Schiller of the individual depended on the grade of his or her moral and Leibniz would agree with me when I say: If it is China perfection. As for Nicolaus of Cusa, it was not birth or family that thus takes the cause of humanity forward, so be it! relations that determined rank in society, but rather morality and way of life. In addition, every individual has to perfect himself morally through the acquisition of knowledge. The moral quality, ren, which means humanity, or "love of man," defines a whole scale of behavior. Ren and Ii also give man the duty to take care of the well-being of his own Toward a New people. Confucius demanded that morality and power form a unity. These thoughts, which can only be sketched here, put Council of Florence Confucius among the highest order in the history of human­ 'On the Peace of Faith' and ist thought. Other Works by Nicolaus of Cusa

Mencius versus Mo-zi The Schiller Institute has Mencius, born about 100 years later, who developed released this new book of Confucius' ideas further, led the fight against the ideology translations of seminal writings of the 15th-century Roman of Mo-zi (Micius), and of Mohism, which is named after Catholic Cardinal Nicolaus of him. This is the idea that every individual is only trying to Cusa, who, through his work maximize his own benefits, including at the cost of others. and writings, contributed more than anyone else to the According to Mencius, the orientation to "benefits" was launching of the European preventing the unity of society. Mencius was deeply con­ Golden Renaissance. The title of vinced that the world could be brought into order, only on the book, Toward a New Council of Florence, expresses our the basis of Confucian values. Like his teacher, Mencius' purpose in publishing it: to thinking was also characterized by deep cultural optimism. spark a new Renaissance today.

The nature of man is good, therefore also the world can • 12 works published for the become good. first time in English There is no doubt, that there is a real elite in China, • New translations of 3 important works which is thinking about the problems confronting the world $15 plus $3.50 shipping and handling today, on the basis of this philosophy. On the basis of Confu­ cian and neo-Confucian thinking, both the nation's own Schiller Institute, Inc. P. o. Box 20244 Washington, D.C. 20041-0244 history and the problems of the world are considered. Thus ph one: 202-544-7018 Mencius' rejection of Mo-zi represents a point of departure

EIR June 14, 1996 Feature 51 �ITillIntemational

Yeltsin goes fo r broke in pre-election scramble

by Konstantin George and RachelDo uglas

Before the first round of Russia's Presidential elections on ing to Moscow sources, Yeltsin has promised the MIC and the June 16, Boris Yeltsin is on a spending spree, supplemented regional bosses a significant share of central power, ifhe wins. with othermanipulations, to secure victory over the "popular­ Some of the latter expressed support for him at a May 16 meet­ patriotic bloc's" candidate, Gennadi Zyuganov, head of the ing in the Ural city of Yekaterinburg, which drew over 1,000 Communist Party ofthe Russian Federation (CPRF). The Rus­ businessmen and regional leaders from all over Russia. During sian President arrived at campaign destinations, such as Arkh­ May, regional bosses such as Yekaterinburg' s Eduard Rossel angelsk on May 24, saying things like, "I've come with full and Boris Nemtsov ofNizhny Novgorod, publicly called Zyu­ pockets." Y eltsin' s final sprint tookoff with his high-publicity ganov "stupid" and unworthy to become President. May 27 proclamation of the "end" of the war in Chechnya. Yeltsin's next stunt was the May 17 gathering in Moscow In a decree on May 13, Yeltsin restored financing to the of the 11 other heads of state of the Community of Indepen­ military-industrial complex (MIC), ravaged by nearly five dent States, who endorsed him and told the press what a years of "shock therapy" prescribed by the InternationalMon­ "disaster" a Zyuganov victory would be. Armenia's President etary Fund (IMF). The government must transfer 2.8 trillion Levon Ter-Petrosyan went so far as to say that should Zyuga­ rubles to MIC enterprises, to fund state weapons and equip­ nov win, the CIS would "no longer exist the next day." The ment orders. Yeltsin also ordered the government to pay MIC message was clear: Anyone who, like most Russians, really firmsby May 31, the 6 trillion rubles owed them by the state wants a smooth reintegration of the former Soviet republics since 1994. Armaments Minister Zinovi Pak announced a tri­ with Russia, should vote Yeltsin. pling of Russian arms exports, from $3 billion to over $10 bil­ lion annually by the year 2000. The Chechnya stunt Yeltsin is desperate for institutional support from the MIC; A priority for Yeltsin was to lead the Russian population this defines his short-term, political purpose. There has been to believe he had ended the war in Chechnya. First, he signed a behind-the-scenes battle between the MIC, and the energy, a decree ending conscription into the Armed Forces by the metals and raw materials sector, which, being oriented to ex­ year 2000. The popularity of such a measure stems from the ports, is the main beneficiary (in nominal financial-profit fact that some 4,000 Russian soldiers have been killed in terms) of the IMF plundering policy, at the expense of the rest Chechnya, not to mention the deaths caused by brutal prac­ of the Russian economy and the majority of the population. tices in the Army. The decree stipulated that from now on, Yeltsin has support from top Russian banks and affiliated no conscript would be forced to serve in Chechnya or other firms,plus the top and middle layers of biznismeny. Banks con­ "conflict zones." The promise of an all-volunteer Army is a trol the Russian news media, which have been churning out costly one that Yeltsin will not have to fulfill: By the year publicity for Yeltsin as the only "real leader" for Russia. 2000, that would be his successor's problem. But the Russian nouveaux riches are, chiefly, a Moscow Yeltsin's May 27 meeting with Chechen rebel leader oligarchy. Elections are lost and won in the provinces, where Zelimkhan Yandarbiyev in Moscow, to agree on a cease-fire the MIC can open doors for the incumbent President. Accord- as of May 31, also took advantage of the calendar.The cease-

52 International EIR June 14, 1996 fire might hold till the elections, but a pause in the fighting is pean and Russian economists trained by the Mont Pelerin desirable for the rebels, too. They need a breathing space to Society in the 1980s, to implement "shock therapy" in the rest, regroup, and resupply. The rural areas could use a hiatus, Soviet bloc, if they could take power. The Czech Republic to plant and harvest the next supply of foodstuffs for the under Klaus is often cited as a success, in contrast to Russia's population and guerrilla forces. The rebels and their civilian havoc, but his coalition fell one vote shy of a parliamentary support infrastructure took heavy pounding from Russian air majority, while the Social Democratic Party quadrupled its and artillery bombardment throughout the spring. vote by campaigning against "shock therapy." Social Demo­ Yeltsin's visit to Chechnya on May 28, when he pro­ cratic leader Milos Zeman hit Klaus's failure to deal with claimed the victory of Russian forces "over the Jokhar Du­ declining health care and falling wages for Czech workers, dayev rebels," was pure electioneering. In a village 20 km and charged that there was corruption during the privatization north of Grozny, Yeltsin boasted, "Here I am in Chechnya, of state industries. The Financial Times of London lamented [and] not a shot has been fired." Perhaps he wasn't told, that that Klaus's "rapid economic reforms" would likely be "sus­ there has been no fighting in this area. pended indefinitely." Prospects for peace to continue after the elections are In Russia, the incompatibility of IMF demands with the anything but bright. The political future of Chechnya was not country's survival is highlighted in the economic platform of even discussed during the two days of Moscow negotiations. Zyuganov's bloc. "Our position is that we are not going to A Russian draft document providing Chechnya with "the break relations with the IMF," economist Tatyana Koryagina largest possible degree of autonomy within the Russian Fed­ said at a May 28 press conference to unveil the bloc's pro­ eration," is supposed to be signed, according to a May 29 gram, but the Russian people "have to know the essence of announcement from its author, ex-Deputy Premier Sergei the secret part of the talks between Mr. Yeltsin and Mr. Cher­ Shakhray, by Moscow and the Moscow-installed Chechen nomyrdin and the IMF .... If the IMF insists ... on IMF government of Doku Zavgayev. That ensures a resumption control of key indicators of the Russian economy and near of fighting. total renunciation of governmentcontrol of natural monopo­ lies, notably railway transport, all these aspects, considering How will bills be paid? the secrecy of talks, will be included in the agenda." Buying an election is expensive, and the bill will have to Departing from a Russian habit of seeing the country's be paid after the vote. Yeltsin has attempted to pay back wages crisis as in absolute contrast to prosperity elsewhere in the to the workforce, and back pensions owed. He has also raised world, Koryagina situated it within the crisis of "world eco­ wages and pensions. In a decree on May 27, he increased nomic science" and the Western economies. A participant minimum monthly pensions by 50%. with Lyndon LaRouche at the April 24 Russian Free Eco­ On May 16, Finance Minister Panskov warned ofa disas­ nomic Society round table on this question (see EIR, May ter in state finances during the second half of 1996. He re­ 31), Koryagina added, "That's why we have established close ported that state revenues for the firsthalf were coming in at contact with scholars from various countries and schools in only 40% of the level originally estimated, while the Presi­ order to try to understand . . . how representatives of the dent's decrees had increased state spending 41 % above the school of monetarists try to explain their fiasco.... The fail­ first-of-the-yearestimat es. In a letter to Prime Minister Viktor ure of Margaret Thatcher's economic policy and Reagan's Chernomyrdin on May 27, Economics Minister Yevgeni underscores the importance for scholars in Westerncountries Yasin concurred, saying that Russia faces a "complete col­ to look for the optimum options of how to use the idea of state lapse" of state financesafter June. economic regulation in their countries." The Zyuganov program calls for measures to stimulate National survival versus IMF domestic demand, "firstand foremost, to revitalize mass pur­ A Yeltsin victory is far from a foregone conclusion, as a chasing power; organize the relaunching of shut -down indus­ by-election in St. Petersburg and results fromeastern Europe tries; modernizeproducti on; defend domestic goods produc­ serve to remind. St. PetersbtIrg Mayor Anatoli Sobchak, the ers." It anticipates state intervention to build "modern person in Russia's second largest city most identified with productive infrastructure-construction of roads, ports, mod­ "reforms," lost his June 2 reelection bid to ex-Deputy Mayor ernization of the means of transportation, communications, Vladimir Yakovlev. Although Yakovlev had support from etc.," and a "Russian State Bank for Reconstruction and De­ non-communists like Grigori Yavlinsky's Yabloko party and velopment," to generate domestic credit "exclusively for Moscow Mayor Yuri Luzhkov, Sobchak had tried to scare long-term capital investments, with the controlling share­ voters by labelling Yakovlev "communist." It didn't work. holding being in the hands of the state." The same day, in the Czech Republic, IMF darling, Prime There remains a high level of concernamong Zyuganov­ Minister Vaclav Klaus suffered a setback in parliamentary linked, as well as other opposition circles, that Yeltsin' s team elections. Klaus, together with most of Yegor Gaidar' s 1992- might still resort to "the force option," and cancel elections if 93 Russian government, belonged to a clique of East Euro- his defeat in the second round appeared to be imminent.

EIR June 14, 1996 International 53 InternationalInteffig ence

must returnto the scientificallybased tuning attack on Lee Kuan Yew is both very useful Nazi-lover Genoud of middle C=256 Hz, which corresponds to and precisely targeted. Lee Kuan Yew has finds Nazi-style exit a concert A between 427 and 432 Hz. The courted Beijing for the British Empire, both current tuning of orchestras ranges from through the advocacy of the "special eco­ "standard pitch" of A=440, to as high as The Italian daily Corriere della Sera re­ nomic zones," and as the honorary chairman ported fromLausanne, Switzerland on June A=450 in some theaters. of the new Confucian Society in Beijing. His 2 that Fran�ois Genoud, 81, called in one The conference was held at the Casa distorted view of Confucianism is actually Mr. Schar, head of the Swiss "right-to-die," Verdi, a retirement home for musicians en­ Taoist and Legalist, giving backing to a mys­ Kevorkian-style organization "Exit," to ad­ dowed by Italy's great operatic composer tical "Asian Way," while demanding an oli­ Giuseppe Verdi, who fought for the C=256 minister to him 10 grams of a white powder, garchical form of government as "appro­ tuning over a century ago. which brought about his death. The Milan priate" for Asians. Soprano Antonella Banaudi, who has daily says that Genoud was "convinced that studied at Carlo Bergonzi's Academy for a lucid mind cannot surrender to a collapsing Verdian Voices, showed how the higher body," and so he wanted to be "assisted" pitch affects the singing voice adversely, by Bad court ruling fa vors in dying. singing the, same arias at C=256 and at a As in life, so in death, Genoud promoted CA P in Ve nezuela higher pitch. Organist and conductor Arturo Nazi policies, in this case, euthanasia. Back Sacchetti, physicist Bruno Barosi, and the in the early 1980s, the Lausanne banker was Venezuela's Supreme Court found former Schiller Institute's Verdi expert, Liliana very angry about EIR 's exposes of his role President Carlos Andres Perez guilty of cor­ Celani, addressed the gathering. at the center of the global Nazi/Soviet terror ruption, but cleared him of embezzlement LaRouche sent a written message to the apparatus, and his promotion of Middle East charges, and granted a reduced sentence of conference. The Schiller Institute's cam­ terrorist and fundamentalistmovements. only 28 months of confinement on May 30. paign has gained the endorsement of world­ Because prisoners over 70 years old in renowned opera singers, such as Placido Venezuela are not jailed, he will continue Domingo, Carlo Bergonzi, and Piero Cap­ to serve his time under house arrest. Be­ Schiller music manual pucilli. cause he has been detained for two years debuts in Italian already, the court's decision means that CAP, as he is nicknamed, will walk free on Canto e Diapason, the Italian edition of A Ta iwan leader hits Sept. 19. The most damaging ruling by the Manual on the Rudiments of Tuning and court, was the decision to reduce his sen­ Registration published by the Schiller Insti­ the nail on the head tence to below three years. Any sentence tute in 1992 in the United States, was pre­ longer than three years, in Venezuela, car­ sented to the public at a conference in Milan, Taiwan President Lee Teng-hui denounced ries with it a prohibition of all further Italy, on May 29. Singapore's Lee Kuan Yew in a recent involvement in politics. The Italian book was published by Casa Newsweek interview. Lee said that the "Con­ Thus, Perez, one of most evil narco­ Editrice Musicale Carrara of Bergamo. De­ fucianism" of Singapore is "Confucianism democrats to afflict the Western Hemi­ spite a small first run, the book is expected distorted by politicians." He denounced the sphere throughout the last 40 years, already to be available in major music bookstores, effort by Lee Kuan Yew to define an "Asian announced, in a press conference at his and to quickly saturate the music profession. Way" that exempts Asians from universal mansion on May 30: "In September, I will On June 9, the manual was presented in principles. "Lee Kuan Yew doesn't know go to the streets, and start visiting all Vene­ Rome at a conference sponsored by the classical Chinese thinking," he said. "Chi­ zuelans to continue my fight. . . . What is Schiller Institute and the Pontifical Institute nese thinking is very humanistic, not just established from this day forward is my for Sacred Music. feudalistic, as it was in the imperial era.. ..I return to Venezuelan politics." Privately, The manual was written at the urging of don't think there are distinctly Asian values. sources report, CAP has said that he is coun­ Lyndon H. LaRouche, Jr., who contributed There are human values. Confucianism has ting on the jacobin operations of retired Lt. the introductory chapters, in order to cata­ been distorted by politicians. Now Singa­ Col. Hugo Chavez-a stooge of Fidel Cas­ lyze an internationalcampaign to save Clas­ pore has adopted this distortion." tro and his Sao Paulo Forum-to create the sical music by re-establishing the connec­ Lee Teng-hui also said he believed Jiang conditions for his own return to power. CAP tion between art and science. It urges Zemin, the President of the government in argued that Venezuela will be "burning up" abandoning the modern practice of arbi­ Beijing, is "quite reasonable," and that he in four months when he is free, and at the trarily raising the pitch of musical perfor­ believes they can work together. point of civil war, so he can then promote mance in defianceof the nature of the human While Lee Teng-hui has played a role in himself as the only leader with the stature singing voice. The manual shows why music the British efforts to destabilize China, the required to stop Chavez.

54 International EIR June 14, 1996 Briefly

COLOMBIAN narco-President Er­ nesto Samper Pizano, confidentof ex­ oneration in a congressional investi­ CAP has a few obstacles yet in his way, Eastern Europe. . .. Now is the time for gation for his drug ties, is trying to such as the fact that his Democratic Action the rapid implementation of harm reduction form a "national unity government" party threw him out two years ago, for cor­ programs, such as methadone maintenance, that can "put the scandal behind us," ruption. Some Venezuelan congressmen, education, and needle exchanges." Bogota papers reported May 31. The who have been running their own investiga­ Harm reduction advocates, in their ef­ only problem is, no one wants to be tion into CAP, promised that further charges forts to mold public opinion, "must counter associated with such a government. might be brought against him, now that he the efforts of the U.S. government and the has finally been found guilty. United Nations international drug control SINN FEIN, the Irish nationalist program to enlist former communist coun­ party, received 15% of the votes and tries in a global war on drugs," Grund bra­ elected 17 delegates to peace talks zenly advises. u. s. helps fu nd Soros scheduled for June 10, out of 110 in all. This represents a 50% increase in op erations in Poland Sinn Fein's showing compared to the Dope lobby encounters 1992 election. Sinn Fein campaigned The officialbrochure of Poland's Stefan Ba­ on the slogan, "Vote for Peace." tory Foundation, the Wa rsaw-based Polish vocalfo es in Australia branch of the international Soros Founda­ TWO NEPHEWS of Syrian dicta­ tions, lists a number of institutions and foun­ The appearance of Prof. David Penington, tor Hafez Assad, the sons of Rifaat dations that "co-finance" their operations in the chairman of Victorian Premier Jeff Ken­ Assad, who oversees the Syria-Leba­ the country. One of these listed, to the tune nett's Drug Advisory Council, on May 31 non drug networks, were arrested of some $13,000, is the American Embassy before a joint session of the parliament of after a hit-and-run accident in Syria in Warsaw. Although the amount is small, Victoria, Australia, to argue for decriminali­ that injured two motorcyclists. They the symbolic significance of U.S. official zing marijuana, was extraordinary: No one were driving a bulletproof Cadillac support is great. except a parliamentarian has ever, for any with Texas license plates, the Inter­ As EIR reported in a recent cover-story, reason, addressed such a joint session of the national Herald Tr ibune reported the Hungarian-American speculator George state parliament. The purposeof the address June 1. Soros is financing drug legalization in the was to "get out the vote" for decriminaliza­ United States and elsewhere through such tion, which is expected to come up for a vote THE IRANIAN Majlis, or parlia­ foundations. by mid- to late June. ment, reelected Ali Akbar Neteq­ The Stefan Batory Foundation board While Penington was inside brain­ Nouri as speaker after parliamentary contains most of the gang who have run the washing legislators, a boisterous counter­ elections, the Financial Ti mes re­ "shock therapy" atrocities in the country, in­ rally was conducted outside by Lyndon ported June 4. He is a member of the cluding former Finance Minister Leszek LaRouche's Australian cothinkers in the conservative Assembly of Combat­ Balcerowicz. Balcerowicz has his own foun­ Citizens Electoral Councils. CEC National ant Clergy. The key issue continues dation, on economic policy, located a couple Secretary Craig Isherwood was interviewed to be economic policy,and resistance of hundred yards away from the Batory by the Associated Press, SBS Radio and among conservatives to the reforms Foundation. SBS TV, the Herald Sun newspaper, and of Iranian President Hashemi Raf­ The spring 1996 edition of Open Society Channel 1's "Today Tonight" (evening sanjani. News, the newsletter of Soros's New York­ news) TV show. "Today Tonight" inter­ based Open Society Institute, has an article spersed Penington's speech to the parlia­ A BRAZILIAN military delega­ entitled "Drug Policy Alternatives," by ment with footage of the CEC's demonstra­ tion, linked to the Workers Party Jean-Paul Grund, described as "an interna­ tion, including the chants and singing. All (PT), traveled to Cuba on May 29 to tionally recognized expert in the field of major evening TV news shows ran coverage spend a week. drug policy research." Grund pushes "harm of the rally. reduction" as the preferred policy at a time Both the Catholic archbishop of Mel­ SIR DAVID HANNAY, former of vastly increasing drug usage throughout bourne, Sir Frank Little, and the Uniting British ambassador to the UN and one the former communist sector, writing that Church of Australia (the Anglicans and of three top British operatives who, this approach seeks to "limit the damage to some others combined into one church) re­ according to the London Guardian, society and drug users" caused by drug use, leased their endorsement of the Penington sabotaged U.S. operations in Bosnia, "instead of trying to wipe it out." At this Report. However, the CEC found few parish has now taken up a new assignment point in time, he says, the notion of "harm priests or pastors of the Catholic or Uniting as Britain's Special Representative reduction ...is beginning to enter the pub­ Church in agreement with these officialpo­ in Cyprus. lic debate on drug policy in Central and sitions.

EIR June 14, 1996 International 55 �ITmInvestigation

Israel's patriotsvs . Harvard's racists

by Lyndon H. LaRouche, Jr.

Wherever reference is made to the widely circulated new holocaust, but, for those of us in western Europe and North book of Harvard University deconstructionist Daniel Gold­ America, the victimization of the Jews made the deepest im­ hagen, I the former teachers and parents of America's "Gener­ pression. ation X" should blush. That author's current mind-set sug­ The impact of this upon the mind of many Jewish victims gests, that during an earlier phase of his protracted and survivors alike, was described with clinical precision, adolescence, not only might he have insisted on wearing skis and compassionate great sadness, by the psychologist Bruno to regular hockey practice, but launched a graffiticampaign, Bettelheim. In contrast to Dr. Bettelheim, the head of Brit­ denouncing the other players as "Nazis," for wearing skates. ain's psychological-warfare teams, Dr. John Rawlings Rees Such, in effect, is the view of Goldhagen' s book which tends of the London Tavistock center, the employer of Sigmund to be shared among most of the book's visible reviewers, in and Anna Freud, and of Melanie Klein, gloated over the London and elsewhere. kinds of mental disorders which are more readily induced The book's sponsorship has but one redeeming feature. in minds disoriented by such horrors. Like a shocking mass-murder, the pedigree of those who pub­ Rees' actual and de facto agents within Jewry (such lished this bit of trash, warns us of the propensity for most as the "deconstructionist" Frankurt School of existentialists disgusting crimes among the residents of a neighborhood one Adorno, Arendt, and Heidegger), exploited the shock to the would prefer to ignore. If he lacked all else, Goldhagen has Jewish conscience in evil fashion. Those deconstructionists a pedigree: that of the Tavistock-like frauds of the cronies have played a leading part in creating a second, post-Nazi Theodor Adorno, Hannah Arendt, and Arendt's former lover, holocaust, a torment of the mind, among the post-1945, the Nazi philosopher Martin Heidegger. surviving Jewry of western Europe and the Americas. Gold­ What the Adolf Hitler's Nazi regime did to Europe's hagen is a product of that sordid tradition. Jewry, during approximately a dozen years of slave-labor camps and kindred actions, is perhaps the most hideous Heidegger's 'Holocaust' crime-wave seen since Aztec rule within Mexico. The shock It is relevant to what I write here, that, since my adoles­ was worse for all of us who were veterans of World War cence, a large portion of my closest friendsand collaborators II, because, unlike the Aztecs, pre-Hitler Germany and Aus­ have been Jewish. At times, I had been mistaken for Jewish tria had been civilized nations. The Jewish victims of Hitler's myself, and experienced in areas of the U.S.A. where anti­ regime were a minority among the many victims of the Nazi semitism flourished even during the post-war 1940s and 1950s, thus, the hot blast of real-life anti-semitism. I have shared, at that close range, the shock of what many reference 1. Daniel Goldhagen, Hitler's Willing Executioners: Ordinary Germans and the Holocaust (New York: Alfred Knopf, 1996). A project ofthe Havard today as "the holocaust." I also shared, thus, the experience University Minda (nee Bronfman) de Gunzburg Center for European Studies. of a deep division which emerged within post-war Jewry,

56 Investigation EIR June 14, 1996 Assassinated Israeli Prime Minister Yitzhak Rabin, in Washington, Oct. 25, I 995, for the Jerusalem 3000 celebration. Inset: Daniel Jonah Goldhagen. As a result of the evil done by the assets of Britain 's Tavistock Institute, says LaRouche, world Jewryhas been divided between those who defend Jewry in terms of the achievements of "2,000 years of survival, " and those poor wretches who defineJewry as virtually a mere predicate of a dozen monstrous years of Nazi persecution.

world wide. Since the evil done by such assets of Tavistock time to scrap the popular U.S. tabloid caricature: a "Zionist as Adorno and Arendt, world Jewry has been divided be­ fanatic" having tantrums in Brooklyn, or a nerd in a Harvard tween those, of the pre-Hitler tradition, who defend Jewry niche. Focus, instead, upon a living, breathing Jew, such as in terms of the achievements of "2,000 years of survival," one among Shimon Peres's circles, a patriot of the republic in opposition to those poor wretches who define Jewry as of Israel, who is applying the heritage of 2,000 years of virtually a mere predicate of Hitler's evil: a dozen monstrous "Jewish Survival" (the tradition of Moses Mendelssohn, for years of Nazi persecution. example), to relations with non-Jews of to day's Middle East That axiomatic division, is key to understanding the and wider world. circumstances leading into the assassination of Israel's mar­ That said, focus upon the left-wing, atheist roots of ADL­ tyred Prime Minister Yitzhak Rabin, the circumstances of style, "neo-conservative" Zionism inside the U.S.A. today. a campaign of trans-Atlantic hate, which had targetted him Although forms of actual or nominally Jewish religious from Anti-Defamation League-linked circles inside Daniel "fundamentalism," shading into some wildly deranged cults, Goldhagen's United States. Goldhagen's book has placed serve more readily as topics for tabloid and TV ·sensational­ its author, next to the grubby, right-wing thugs of the Anti­ ism, it should be Kristol clear, that the hard-core of today's Defamation League (ADL), such as Abe Foxman: on the right-wing Jewish fanatics, is drawn from rabidly non-reli­ wrong side of that division within Jewish opinion today. gious, political Jews, such as those formerly based at Jay Rabin's survivor, Prime Minister Shimon Peres, under­ Lovestone's and William Gomberg's old "Communist Inter­ scored the relevant issues of the post-Hitler world, during national Opposition" nest, at David Dubinsky's ILGWU the May, 1996 election campaign. He stated then, as many headuarters in New York City.2 of us have shared that view over the past score years, or more, that the time has come to cease to think of Israel as 2. Jay Lovestone was recruited, while a student social-democrat at the City merely a place of refuge for Jews fleeing memories of the College of New York, into the U.S.A.'s "underground" Communist Party of Nazi atrocities. It is long past the time to begin to think of the early 1920s, and rose, under the patronage of then-Soviet dictator N. Bukharin, to become head of the Communist Party U.S.A. during the period Israel as a nation, with long-term interests in finding peace, immediately preceding Stalin's coup against Bukharin. Lovestone became prosperity, and security, within the community of nations then a leading figure of the so-called right-wing opposition within the Com­ of, chiefly, Israel's Arab neighbors. In other words, it is past munist International, closely associated with Germany's Thalheimer, et al.

EIR June 14, 1996 Investigation 57 As J. Edgar Hoover grew older, the core of the U.S.A.'s Europe as a whole, too. formerly left-wing,Jewish atheists, typifiedand led by veter­ We see in the instances of the "Contract with America" ans of the Lovestone-centered, rent-a-spook profession, were set, and such governors as Mass,achusetts' Weld, New Jer­ regrouped around entities such as Commentary magazine. sey's WhitIl).an,J;> ennsylvania'& Ridge, and California's Wil­ Such was the transition of devotees of Bukharin and Trotsky, son, a heartless mass-killing, done through means of the from among leftists of this type into the neo-fascist, "Cone same kinds of austerity policies for which Nazi officials and tract with America" movement. professionals were condemned during the post-war Nurem­ Similar were the shifts from left to right, feeding into berg trials. Now, in the wake of Robert McNamara's and the growth of the Nazi Party of post-Versailles Germany's Henry Kissinger's diplomatic apocalypse in Indo-China, and 1920s and 1930s. If we know by whom Nazism was fostered, the subsequent rise of the Mont Pelerin Society's influence, know the inner history of the rise of Nazism within pre­ we are confronted today by the rapid rise-outof the Bushes, Hitler, post-Versailles Germany, we understand the old inti­ so to speak-of the same quality of "conservative" move­ macy of Adorno, Arendt, and Heidegger yesterday, and the ments which fed into the rise of Mussolini, Hitler, and Third origins of the pathetic Daniel Goldhagen and his backers Republic France's Pierre Laval, during the 1920s and 1930s. today. In effect, what Goldhagen is attempting to persuade Consider thus, the perverted mind of that neo-conserva­ himself in his book, might be summed up: "You could call tive Jew who has rejected 2,000 years of Jewish survival me a fascist, if I were not Jewish." In his time, Mussolini within predominantly Christian and Islamic cultures. For devotee Vladimir Jabotinsky was not so evasive. The backers that right-winger of the von Hayek and von Mises genie, of Goldhagen's book have significant motives for insisting, the urgent thing is to insist, as hysterically as possible, that that the crimes of Hitler were not a product of his being it was not Hitler's conservatism which made him evil. As selected (by, among other New Yorkers, President George Goldhagen does, that right-winger seeks to shift the blame Bush's father) to be a Nazi dictator. For them, Nazism is for Hitler's crimes, away from Nazism, to nothing more not the cause of the crime; the cause of Hitle(' s crime, for than the "deconstructed" fact, that Hitler was a German, that C Goldhagen, is that he was of a German "racial" extraction. Hitler was a representative of tha mixed breed of Slavs, Heinrich Heine wrote about it, in his attacks upon Kant Germanic tribes, Celts, and others, which call themselves and Hegel, Philosophy and Religion In Germany. The com­ Germans today. Otherwise, without such lies as those of bination of the disgusting little Corsican aristocrat, Napoleon Goldhagen, the cry of "Never Again!" would haunt the Buonoparte, and Metternich's even more evil, mass (sexual) present-day conservatives among Goldhagen's sponsors. Congress of Vienna, plunged both Russia-occupied France The crux of the issue of Goldhagen's book, is this. The and post-Carlsbad Decrees Germany into a morass of deep murderous effects of the neo-conservative's monetarist aus­ cultural pessimism, into the decadent Romanticism of the terity policies today, are following that same pathway to Madame de Stael and her Saint-Simonist cronies, and of Auschwitz crimes which was trodden by the Nazis of the Franz Liszt, Arthur Schopenhauer, F.K. Savigny, and of the 1930s. cronies Jacob Burckhardt, Richard Wagner, and Friedrich "I In a futile effort to deny their own Nazi-like proclivities, am the anti-Christ" Nietzsche. The most nearly comparable two fallacies are employed by deconstructionists such as present-day experience, is the 1960s agony of the "Baby Goldhagen. First, their hysterical insistence, that any attempt Boomers" generation, or the worse conditions coming to the to include the Slavic and other victims of Hitler's extermina­ surface in IMF-Iooted eastern Europe and the former Soviet tion squads and death-camps among the list of victims, is "to Union today, and throughout post-"Desert Storm" western belittle Jewish suffering in the Holocaust," and, thus, prima facie, an "anti-semitic" act. That is the firstof the fallacies of composition used by Goldhagen, the ADL thugs, et al. Sec­ During the early 1930s, Lovestone was deeply involved in an international ond, they insist upon the lie, that the cause of these crimes intelligence operation which interfaced with both the Soviet and U.S. State Department intel1igence channels, among others, an operation which contin­ was not the Nazi derivative of Nietzscqe' s and Heidegger's ued under the rubric of the International Rescue Committee. In New York deconstructionist dogma, but is �p epiphenomenon of purely City, he operated out of the organization of David Dubinsky's International mythical "German blood." So, Goldhagen et al. imply, that it Ladies' Garment Workers' Union (ILGWU), where he was associated with is not Nazism which is evil, but rather, being a member of the such fellow alumni of CCNY as Gomberg. The Anglo-American intelligence "German race" ! community's cover, Freedom House, serving as the base for spook Leo Cherne, is an outgrowth of Cherne's connections to Lovestone. Lovestone's Thus, it could be suggested, plausibly, that if such a de­ intelligence operations inside organized labor, inside and outside the U.S.A., ranged racialist as Hitler, were a "Generation X" protege of were closely associated with such scurrilous figures of the U.S. intel1igence Harvard's Minda de Gunzburg Center, today, he might be community as the FBI's J. Edgar Hoover and the CIA's James J. Angleton. another Daniel Goldhagen. The following report gives the Gomberg's career took him to service under British intel1igence officialEric reader a flavor of the author and his patrons. It is a relevant Trist's operations targetting trade-union operations for sundry union-busting operations. Lovestone and Cherneepitomize the center of dirty, ADL-linked, report on the Metternicheandecadence of our times, that such right-wing operations inside the labor movement internationally. hoaxes as Goldhagen's are all too widely tolerated today.

58 Investigation EIR June 14, 1996 The Britishfrau d behind Harvard's Goldhagenpr ovocation by Anton Chaitkin

This report is divided into the following sections: the United States. 1. Preface: Neither the book, nor Harvard,are American By investigating the sponsorship of the Goldhagen provo­ 2. Meeting with Goldhagen cation, we are better enabled to see through some other false, 3. Official story: Why Germany pays Goldhagen's salary "American"disgu ises, as well; how Britain's policy of auster­ 4. What does Germany say about this? ity and deindustrialization is carried out against the world's 5. Guido Goldman versus Nahum Goldmann nations by Harvard's Prof. Jeffrey Sachs and his cohorts; and 6. The Brits dance on JFK's grave: Lord Harlech, Harri­ how the U.S. Democratic Party is directed against the outlook man, Kissinger of Franklin Roosevelt and John F. Kennedy. 7. British Empire war against the nation-state Meanwhile, the financing of the Goldhagen book itself 8. That Nazi money behind the book: Is it "atonement"? unearths within Germany strong traces of the original Lon­ don-New York-German apparatus which sponsored Nazism, whose exposure will be embarrassing to thepresent British 1. Preface: Neither the book, nor policy domination of Germany. Harvard, are American 2. Meeting with Goldhagen This is a report from an ongoing investigation into the actual origins of a literary dirty trick. The 1996 book Hitler's This author met with Daniel Goldhagen on May 17, near Willing Executioners: Ordinary Germansand the Holocaust, Goldhagen's office at the Minda de Gunzburg Center for Eu­ by Harvard University Assistant Professor Daniel 1. Gold­ ropean Studies at Harvard. The meeting was arrangedafter a hagen, is an incitement to ethnic and religious hatred and message was left with Professor Goldhagen, stating that the international destabilization. The book alleges, absurdly, that author's father, Jacob Chaitkin, had been an anti-Nazi strate­ the Nazi mass murder of Jews stemmed from the supposed gist employed in the 1930s by Jewish leader Nahum Gold­ intrinsic anti-Semitism of Christianity, from the supposed in­ mann and his associates. Nahum was the father of Guido trinsic anti-Semitism of the German nation and people, and Goldman, who now heads the German studies program at the indeed, from "nationalism" in general. de Gunzburg Center and who pays Goldhagen his salary. Goldhagen denounces as "anti-Semites" those Germans The discussion lasted a half-hour. Goldhagen is about 35 who resisted Hitler, as well as those 18th- and 19th-century years old, and has been affiliated with Harvard University as Germans who sought the emancipation of the Jews. an undergraduate, graduate student, and associate professor. In the second half of the book, he cites case after case of That is, his only adult activity has been under the direction of Nazi shootings of helpless, terrorized civilians. The method Harvard personnel. is to bludgeon the reader with the record of such gruesome He was asked, regarding the implications of his book, crimes, so that the reader suspends his reasoning and accepts where we go from here, with respect to Germany? Goldhagen the outrageous "explanation" of these crimes which Gold­ said that Germany today, is a different country. It poses no hagen offers in the firstpart of the book. real problem. This is a stance which he now takes in public Such a blatant anti-German provocation, in an American­ forums, and on media interviews. That this contradicts the authored book, leads to the suspicion that it is intended to entire thesis of his book does not bother him. Perhaps it is bring on a German reaction against America, or a reaction thoughtthat he can thus not be reproached for his work, it is against Jews. It turns out, not surprisingly, that the book is "only history"; that he is not biased against Germany. not American at all; rather, it is one project from a center of What would he have done, had he been in charge of the British intelligence projects, a center organized at Harvard as Nuremberg trials? Would he have conducted a general inquiry part of a scandalous fraud perpetrated by British geopoliti­ into the whole Nazi phenomenon, including its origins? This cians and their agents, a fraud against Germany and against would have led to some shock, concerningWestern sponsor-

EIR June 14, 1996 Investigation 59 President John F. Kennedy with German Chancellor Konrad Adenauerin Washington, December 1961. Kennedy 's British enemies, from a nest at lfarvard, sponsored the Goldhagen provocation against the u. s. -German fr iendship.

ship for Hitler. Goldhagen said no, he would have imposed country; Ohlendorf was simply blinded by the anti-Semitism, stiffer sentences, and put more defendants on trial. But there which, according to Goldhagen, arose from the historical was, he thought, a sufficientin quiry. mind of the German people. A discussion then followed concerning the thesis Gold­ In the book, Goldhagen writes that the Nazi Party "was hagen wrote in 1982 for his bachelor of arts degree, entitled founded as the German Workers' Party in Munich on Jan. 5, "The 'Humanist' As a Mass Murderer: the Mind and Deeds 1919.. .. The 29-year-old Adolf Hitler, who, after having of SS General Otto Ohlendorf." Ohlendorf had ordered the served as a corporal in the war, was living in Munich, gravi­ shooting of tens of thousands of Jews, and the essay's title tated to it in September of that year as its seventh member. naturally appears to be an irony, pointing to an exposure of He soon was put in charge of the party's propaganda." Ohlendorf s false pretension to being a "humanist." But the The statement, that Hitler "gravitated to" the Nazi Party, essay text repeats the use of the word humanist, without quote is a clear error. Hitler was assigned to the party as a political marks. Goldhagen claims that Ohlendorf was in fact a human­ intelligence agent of the Nordic cultist Gen. Erich Luden­ ist and his only real failing was his anti-Semitism. Goldhagen dorff, who had a close affinity to Britain's rulers. Hitler offi­ describes Ohlendorf as a highly committed Nazi, a strongly cially continued in his army intelligence position until after ideological Nazi. becoming chief of the party's propaganda. This error in Gold­ In the Harvard encounter, Goldhagen was asked, how hagen's book is significant because it reflects an ignorance could he call a Nazi mass murderer a humanist? The Nazis of, or unwillingness to report, anything about the history of rained contempt upon the humanist tradition, which is the Nazism which does not fitwit h the "sociological" propaganda precious heart and soul of our civilization. What ofthe Renais­ line against Germany. sance artist Albrecht DUrer, the poet of freedom Friedrich Asked about this error, Goldhagen seemed startled, and Schiller, the German Christian philosopher Gottfried Leibniz, asserted that the story of Hitler's assignment is not true. He or his follower the German Jewish philosopher Moses Men­ was told that the main historical sources, of the type he would delssohn? Mendelssohn criticized attempts to coerce Jews findaccepta ble, tell the story that way. He then said that, even into converting to Christianity; but he also wrote in German, so, Hitler still "gravitated to the Nazi Party." and urged Jews to learn and speak the beautiful German lan­ It is surprising, Goldhagen was told, that there is no refer­ guage, and to participate fully in German society. And wasn't ence in his book to eugenics. The British pseudo-science of Nahum Goldmann a humanist? eugenics, or "race-purification," has had its most important Goldhagen vaguely assented that there was something American center right there at Harvard since the beginning of known historically as "humanism," that this might have the 20th century. Hitler's race laws were written by Ernst something to do with Germany. But he insisted that Ohlendorf Rudin, an employee of this movement. And the movement was in that tradition, a decent man who sought the best for his continues fomenting race hatred and persecution through

60 Investigation EIR June 14, 1996 such Harvard channels as Prof. James Q. Wilson and his Harvard Yard. An official brochure of the Center is printed Aryan-race-style genetics posing as criminology; and Prof. each year and is available to visitors at the center. The bro­ Richard J. Herrnstein's Ku Klux Klan-line book, The Bell chure says that the Center, "organized within the Harvard Curve. Goldhagen said that this "racist thinking, such as with Faculty ... was established in 1969 to promote the study Herrnstein," goes far back in American and British tradition, of Europe." but it is "irrelevant-eugenics is not Nazism." The brochure further explains: "In 1989, through gener­ He was asked if he is familiar with the paper entitled ous endowment by the family of Minda de Gunzburg, the "Empires or Nations?" presented last year by the director of Center moved into its present quarters in the renovated the de Gunzburg Center, Charles S. Maier (see below for Adolphus Busch Hall." In fact (as one learns froma privately a discussion of this paper). Goldhagen answered that he is printed book, available only as a display item in the Center's familiar with it. And does he agree with its point, that the lobby), the Center took on the name "de Gunzburg" in 1989, empire is to be preferred to the nation-state? After all, empires upon the receipt of construction money. The Center provides have been known as reactionary, and even bad for the Jews. no explanation of the identity of Minda de Gunzburg or her And isn't Israel a nation-state? Goldhagen replied that "the family. Upon investigation, she turns outto have been Baron­ nation-state is not good, but for now, what's the alternative?" ess Aileen "Minda" Bronfman de Gunzburg, who died in Has the German government reacted adversely to his 1985 at the age of 60. Her father was Sam Bronfman, the book? No, he replied. But might the German governmentstop founder of Seagram's liquors and a 50-50 partner with the paying his salary, as the controversy grows? To this question, British Whisky trust. Her brother Edgar Bronfman is head of Goldhagen said, "They wouldn't dare." the World Jewish Congress and a chief funder of the Anti­ Goldhagen would say nothing about the origin of his Defamation League. Her husband, the French Baron Alain de book, or who suggested he write it, except that it had "occur­ Gunzburg, has been a high official of the Seagram's liquor red to him in the early 1980s that the Holocaust had never interests since 1971, and is a member of the 1001 Club, an been dealt with in this way" by anyone else, and so he has elite gathering of the aristocracy and moneyocracy of Europe been working on this book since then. who support the power and policies of the British monarchy. When this author turnedthe discussion to Shell Oil, Mon­ The official Center brochure also reports, "The Program tagu Norman, Averell Harriman, and Prescott Bush (George for the Study of Germany and Europe [was] established at the Bush's father), and the relationship between such Hitler­ Center in 1990 by a ten-year grant from the German govern­ sponsors and the German Krupps, whose bloody money fi­ ment." Another brochure, specificallyabout this German gov­ nanced Goldhagen' s book, he announced that time was press­ ernment-financed program within the Center, says that "pro­ ing, and politely ended the meeting. grams have also been established [by the German government]in the United States at the University of Califor­ nia and at Georgetown University, and in the United Kingdom 3. Official story: Why Germany at the University of Birmingham." There is no further expla­ nation of the nature or origin of this grant. pays Goldhagen's salary From discussions with the director of Georgetown Univer­ sity's companion program, it was determined that the German The dust jacket of Hitler's Willing Executioners says that government pays Daniel Goldhagen's salary. A spokesman "Daniel Jonah Goldhagen is Assistant Professor of Govern­ for the North American office ofthe Deutsche Akademischer ment and Social Studies at Harvard University and an Associ­ Austauschdienst (DAAD, or German Academic Exchange ate of Harvard's Minda de Gunzburg Center for European Service) in New York City, told EIR that the DAAD receives Studies. His doctoral dissertation, which is the basis for this the money from the German Foreign Service, and passes it to book, was awarded the American Political Science Associa­ Guido Goldman, who pays it to Daniel Goldhagen. tion's 1994 Gabriel A. Almond Award for the best disserta­ tion in the field of comparative politics." Go1dhagen, in the book's acknowledgments, writes: "My 4. What does Germany research was aided by grants from the Fulbright program, the Krupp Foundation, and the Minda de Gunzburg Center for say about this? European Studies at Harvard University and its Program for the Study of Germany and Europe. The Whiting Foundation, The German Foreign Office publishedin 1996, through the Littauer Foundation, and the Simon Wiesentha1 Center in the German Information Center in New York City, a report Los Angeles also provided financialassi stance. To all of these entitled "The Transatlantic Challenge: German Contributions institutions, I am grateful." He calls the de Gunzburg Center to the German-American Partnership in the Cultural and Pub­ his "intellectual home." There is no further description, in the lic Relations Spheres; a Report by the Coordinator of German­ book, of the de Gunzburg Center. American Cooperation in the Fields of Intersocietal Rela" The Center is at 27 Kirkland Street, across the street from tions, Cultural and Information Policy, Professor Werner

EIR June 14, 1996 Investigation 61 Wiedenfeld." The report begins, "It remains of vital impor­ In the 1984 alumni book, Goldman accounts for theorigin tance to a united Germany to maintain the closest possible of the Center, which was soon to house Daniel Goldhagen, in relations to the United States, for this partnership' constitutes the following terms: a maj or investment in the future." It goes on to say, "It would "Since graduating, I have stayed pretty much in the same be a dangerous mistake to think that the rich tradition of Ger­ orbit: based at Harvard but with extensive travel, primarily man-American solidarity no longer needs public support be­ to Europe. After a year in Germany, I returned to complete cause it has become self-sustaining ....[We seek] an intense graduate studies-as slowly as possible !-in the Harvard exchange at all levels of society, which will allow · personal Government Department, finally completing a dissertation experience to make up for a lack of information and dispel under thedirection of Henry Kissinger just as he departed for stereotypes. " Washington [in 1969 to become national security chief]. With The specific program which pays Goldhagen for his bi­ Kissinger, I had launched the German Research Program at zarre contribution to "German-American solidarity" and "dis­ Harvard in 1967. That subsequently grew into West European pelling stereotypes," is explained thusly: "As a result of dis­ Studies in 1969 and then the Center for European Studies cussions with the presidents ofleading American universities, some years after. This enterprise ...is now the biggest of its the Federal Chancellor undertook an initiative in 1988 to fos­ kind in the United States." ter and intensify German-American scholarly exchange. This Goldman goes on to say, "In 1971-72 I chaired an Ameri­ initiative ... aims to inform prominent young Americans can group that conducted negotiations with the government about Germany so they may become involved in the German­ of the Federal Republic of Germany, leading to the establish­ U.S. dialogue established by the generation before them. ment of the German Marshall Fund on the 25th anniversary "[Among the initiatives in 1988 were the] Centers for of George Marshall's historic Harvard speech ...which had German and European Studies. announced ...[what] came to be known as the Marshall Plan. "Three top American universities [Harvard, the Univer­ This German expression of gratitude for U.S. aid in the post­ sity of California, and Georgetown] ...have each been re­ war period was unprecedented both in its magnitude (150 ceiving 1.5 million marks annually since 1990 to develop million deutschemarks) and in its trust, for it assigned all centers for German and European studies and will continue responsibility for disbursement to an entirely American [sic] to do so until the year 2000. The respective agreements were group and created a truly American [sic] foundation, which I signed in Washington on Nov. 1, 1990." briefly headed until a full-time president was named." The report explains that a certain "McCloy Academic This "German Marshall Fund," with Goldman its current Scholarship Program" is funded jointly by Germany and the board chairman, has in fact merely usurped the name of the United States. It is Guido Goldman who heads both the Ger­ U.S. aid program which put Europe on its feet after World man Studies program at Harvard's de Gunzburg Center, and War II. The fundworks as an adjunct to the British and allied this McCloy program. The German government report says, banking oligarchy, creating cadres and propaganda for world "Each year the McCloy Academic Scholarship program of­ government,economic globalization, environmentalism, and fers the opportunity for up to 10 highly qualified German British-agent journalism. graduate students ... to study for two years at the John F. We learnmore by consulting a profileof Guido Goldman, Kennedy School of Governmentat Harvard University." which the Boston Globe published on April 4, 1976. Excerpts Oh, that Kennedy name certainly opens doors around the from the Globe article follow, in which one may observe world! And one might naturally infer, from the above infor­ the gulf between the father's humanistic self-identity and the mation, that Guido Goldman and the Harvard apparatus under son's immersion in the squalid aristocratic jet set: scrutiny here, have some pleasing, positive relationship to the "It is said around Harvard that Guido Goldman knows ev­ legacy of the progressive American President and martyr. The eryone. truth is otherwise, and disturbingly so. "That is not precisely true. But Goldman does know more of the powerful, the rich and the famous than your average governmentinstructor. 5. Guido Goldman versus "He knows the Rockefellers, the Harrimans, the Kissing­ ers, ambassadors, internationalbankers, and political leaders Nahum Goldmann on both sides of the Atlantic. "He shuttles between New York and Washington, Paris In the 1984 book which Harvard published to celebrate and Bonn, the way other professors commute between Cam­ its 1959 graduates (on their 25th graduation anniversary), bridge and Newton [two Boston suburbs]. Guido Goldman is listed as Director, Harvard Center for Eu­ "He has a private, bright red push-button phone on his ropean Studies; that is, the'Cent�r before it was re-christened desk next to the standard Harvard model because he makes "de Gunzburg." Goldman is described as "Treasurer, U.S. so many long -distance calls that he hates to waste time dialing. Committee for the International Institute for Strategic Stud­ "He entertains elegantly in a spacious bachelor apartment ies," the think-tank for British military intelligence. filled with those pieces of his ...metal sculpture collection

62 Investigation EIR June 14, 1996 that are not on loan to ...the Museum of Modem Art.... has endured over the years. . ..' [Reliable Harvard sources "A few years ago he was the key American figurein nego­ report that Kissinger has been so close to Guido Goldman that tiating a $60 million gift from theGerman governmentto set whenever Henry would go to New York City, he would stay up the German Marshall Fund of the United States. In 1974 at Guido's bachelor apartment there-AHC.] he was instrumental in getting a $2 million endowment from " 'If I went to Washington [to take up a foreign policy the Krupp Foundation for a professorial chair and fellowships position, in 15 years or so] I would want to go in a senior at Harvard. capacity. I don't believe very much in learningon the job. A " ...Goldman readily admits that his family connec­ lot of what went wrong in the 1960s was that very young guys tions-he is the son of Nahum Goldmann, world-famous Zi­ with no perspective were running things.' [Is this a dig at onist leader of the 1930' sand ' 40s, founder and still president Kennedy?-AHC] of theWorld Jewish Congress-and his background opened "Right now Goldman's time and energy are stretched to doors for him that would have been been closed to others." the limit ...[including] entertaining or going out almost ev- Nahum Goldmann was replaced as World Jewish Con­ ery night. ..." gress president in 1978 by the degenerate British Empire bil­ Thus, to summarize, Guido Goldman's family back­ lionaire Edgar Bronfman; Nahum Goldmann died in 1982. ground and father's reputation, and his family relationship to The Globe profileof Guido Goldman continues: the painful process of German reparations for the Holocaust, " 'I want to be frank,' he says. 'IfI were John Smith who were usurped by new sponsors at Harvard, to be used for had learned high school German and had a letter of recom­ purposes opposed to the objectives of his fa ther, or those of mendation from some obscure professor, I wouldn't have got­ his father's valued strategic partner, Konrad Adenauer. ten very far .... [Because of my father,] I knew half of the German cabinet on a firstname basis. "But the[$60 million] gift was made, he points out, 'not 6. The Brits dance on JFK's grave: because they loved me' but because the German government was looking for a way to commemorate the 25th anniversary Lord Harlech, Harriman, Kissinger of the Marshall Plan and to help build an enlightened Ameri­ can attitude toward Europe. We get closer to seeing who is ultimately responsible " ...Goldman points out that his own ability to negotiate for these fraudulent "German studies," by reviewing what large money deals pales in comparison with the accomplish­ happened at Harvard, in the de facto British coup d'etat ments of his father, who got well in excess of 50 billion marks against America associated with the 1963 assassination of (about $11.4 billion) in reparations for Jews from the German John F. Kennedy. governmentafter the war." In 1964, plans were under way to use the murdered Presi­ Indeed, Nahum Goldmann had an excellent relationship dent's name to cover for a British geopolitical center at Har­ with Konrad Adenauer; he considered Adenauer and Franklin vard, a center that would oppose and destroy everything posi­ Roosevelt the two greatest leaders he had met. tive JFK stood for. In 1966, Harvard announced the creation "[Guido] Goldman was born in Zurich in 1937 but the of the "John F. Kennedy School of Government," to be built family moved to New York two years later .... It was, he around the core of a new "Institute of Politics." The new JFK remembers, a pleasant and privileged childhood, rich in Euro­ School was described as a transformation and enhancement pean culture, music and the arts, and spiced by a steady stream of Harvard's existing Graduate School of Public Administra­ of famous people who came by to talk with his father. tion, founded in 1935. The former school was underwritten "[Goldman went to a private school] ...and 'was always by Lucius N. Littauer, a Jewish glove manufacturer who had thinking up money-making schemes. Everyone thought I'd been convicted of smuggling jewelry and wanted a good name be a businessman.' for himself. (Littauer destroyed his personal papers, but we "He entered Harvard in 1955 .... have an account of his politics, and the history of the Harvard "Aftergetting his degree in 1959, Goldman took fiveyears operation, fromthe JFK School of Government's own official out to travel and dabble a bit in international banking before history, published by Harper and Row in 1986.) returning to Harvard for his graduate degrees. He wrote his Littauer had been a U.S. congressman from New York Ph.D. thesis on the influenceof theGerman iron industry on from 1897 to 1907. He was very close to Teddy Roosevelt, the foreign policy after 1918. The research led to a friendship fanatically Anglophile President, and worked as TR's Con­ with Berthold Beitz, chairman of the board of the Krupp Foun­ gressional floormanager. But Littauer despised the adminis­ dation, and that led, eventually, to the Krupp gift to Har­ tration of TR's anti-royalist cousin, Franklin D. Roosevelt; vard .... and the purpose of the conservative school, for which Har­ "According to faculty club gossip, Goldman is 'close to vard's Anglophile blueblood managers used Littauer's Henry Kissinger' and 'Henry's protege.' Goldman smiles at money, was to train futurehigh-level career bureaucrats who that. 'I don't see him that often,' Goldman says. 'I see Nancy could "avoid the mistakes made by the New Deal," as the JFK more than Henry. But I know him quite well. Our relationship School of Government's self-history puts it. (Littauer's Foun-

EIR June 14, 1996 Investigation 63 dation also helped fund the writing of the Goldhagen book.) the publications. In the post-Kennedy era, a "Senior Advisory Committee" • C. Douglas Dillon, former treasury secretary who led was established to guide the transformation of Harvard's the faction opposed to Kennedy's dirgistic nationalism from teaching about government, in its new JFK School home, within the Kennedy administration. His father, banker Clar­ and to run the new Institute of Politics. The school's official ence Dillon, had created the German Steel Trust for Fritz history says this committee "took its duties seriously"; the Thyssen, to whom Averell Harriman and Prescott Bush trans­ photographs of certain key committee members are displayed mitted funds to put Hitler into power. prominently in the history book. The committee, which in • Otis Chandler, Harrimanite publisher of the Los effect founded and guided the politics of the JFK School, Angeles Times. consisted of: • Sen. John Sherman Cooper, former adviser to Secretary • W. Averell Harriman, committee chairman; former of State Dean Acheson; Cooper revised the judiciary of Ba­ partner of Montagu Norman in the Nazificationof Germany; varia after World War II. controller of the foreign, security, and military policies of the • Columbia College dean David B. Truman, former staff Truman administration. member of the British Intelligence-dominated Strategic Bom­ • 4th Baron Harlech (David Ormsby-Gore). At the time bing Survey. he co-founded the Kennedy School of Government,Lord Har­ • Sen. Henry Jackson. lech was Tory Party deputy leader of the British House of • Jacqueline Kennedy, the President's widow, who was Lords. Later, while supervising Harvard politics, Lord Har­ said to be very close to Lord Harlech. lech simultaneously served (beginning 1979) as chairman of the Royal Institute of International Affairs (RIIA), otherwise Others involved with the British takeover known as Chatham House, the home base ofthe British intelli­ The slain President' s brother Robert, who had played a gence services. The RIIA continued the Dark Ages imperial role in the startup of the JFK School, and might have been policy associated with Lord Harlech's maternal great-grand­ expected to strongly influence the course of Harvard, was father, Prime Minister Lord Salisbury. Lord Harlech had been himself assassinated on June 4, 1968, while running for Pres­ British ambassador to Washington during the Kennedy Presi­ ident. dency. (Lord Harlech's father, the 3rd Baron, had been a Richard E. Neustadt, founding director of the Institute of leader of the Arab Bureau of British intelligence.) Politics and founding associate dean of the JFK School, was Lord Harlech continued to dominate the Advisory Com­ an "associate member" of the faculty of Oxford University, mittee supervising Harvard's politics until his death in 1985. England, from 1965 to 1967, during the startup of the JFK In his person, Lord Harlech represented the very political School. Neustadt had earlier taught at Oxford (1961-62), forces most anxious to reverse John Kennedy's nationalist, while he was an adviser to President Kennedy. Later, Neustadt dirigist policies, and to eliminate even the memory of those was chairman of the Democratic Platform Committee for the ideas from the minds of America's younger generation. disastrous 1972 Convention. It was there that the party jetti­ • Robert A. Lovett, partner of Averell Harriman and soned JFK's pro-industrialism and threw off its traditional Prescott Bush at Brown Brothers Harriman investment bank, links to labor unions and racial minorities in favor of New and former U.S. secretary of defense under Truman and Harri­ Age priorities. man. Lovett had submitted the "Establishment" list of nomin­ Donald K. Price, while serving as founding Dean of the ees from which JFK picked his cabinet, giving Kennedy the JFK School until 1977, was a trustee of the Rhodes Trust. In mostly hostile gang that opposed his policies and covered up 1985-86, he taught at Oxford University, England. Price had his murder. been a top assistant to Robert A. Lovett when Lovett was U.S. • Michael V. Forrestal, executive secretary of the "Senior secretary of defense. Advisory Committee," former assistant to Averell Harriman As the JFK School commenced in 1966-67, Henry A. at the U.S. Embassy in Moscow. Forrestal's father, Defense Kissinger was a professor of government (he is listed in the Secretary James Forrestal, had fallen out of favor with Harri­ founding brochure of the Institute of Politics as one of the man, then had allegedly committed suicide. Harriman put first 17 "Faculty Associates of the Institute"). In 1982, Kissinger George Marshall, and then Harriman's partner Robert Lovett, delivered an infamous speech at Britain's Chatham House, in Forrestal' s place as U.S. defense secretary. Michael Forres­ then chaired by his old Harvard chum Lord Harlech, declaring tal was loyal to Harriman and hostile to his own father' s stand­ that he had been more loyal to Britain than to the U.S. govern­ point. ment when he had been secretary of state. Kissinger was spon­ • Katharine Graham, owner of the Washington Post and sored at Harvard by McGeorge Bundy, who was Harvard Newsweek. Mrs. Graham's husband Philip had been a close College dean before he served as President Kennedy's na­ JFK friend and adviser. Mrs. Graham (the daughter of reac­ tional security chief. Bundy presided over the coverup of tionary RepUblicans who editorially supported the Hitler re­ JFK's assassination, and treacherously reversed Kennedy's gime) despised John Kennedy, and her husband lefther. After withdrawal from Vietnam. her husband was found shot to death, she seized control of One of Kissinger' s proteges was Graham T. Allison, who,

64 Investigation EIR June 14, 1996 The late Averell Harriman, in October 1982 (right); Harriman chaired a British-directed committee of Kennedy 's poweifulfoes who set up the fa lse-flag "JFK School of Government." Left: Henry Kissinger keynotes the "American Spectator" dinner in Washington, May 16, 1996. Kissinger took the torch from Britain 's Lord Harlech, and swindled the German governmentinto financingGoldhagen.

just after studying for two years at Oxford, became "Special came director of the Institute of Politics at the JFK School of Assistant (Studies)" to the Institute of Politics, at the startup Government, serving in that capacity until January 1990. of Harvard's JFK School. Allison later became dean of the Lady Williams is an Affiliate of the de Gunzburg Center (we JFK School, and personally organized the internationalinit ia­ shall explore some other colleagues of Goldhagen at the Cen­ tives by his own protege, Jeffrey Sachs, whereby the South ter, below). She is a professor of Electoral Politics at the JFK American, Russian, and eastern European national economies School, and is the director of Harvard University's "Project have been brutally impoverished. Liberty," which trains leaders of "emerging democracies in In recent decades, Allison has been a central figure in the Central and EasternEurope ." British-Harrimanite management of the Democratic Party, She was formerly the general secretary and chairman of including his work as a military and intelligence adviser to the Fabian Society. She was Britain's Secretary of State for Jimmy Carter, and to StansfieldTurner at the CIA, and as the Education and Science during 1976-79. She co-founded and "Democrat" within the Reagan-Bush military apparatus. was firstpr esident of the British Social Democratic Party. Her Barney Frank, now a congressman (and an acknowledged father, George Edward Gordon Catlin, founded the America homosexual), was "Special Assistant (Student Program)" to and British Commonwealth Association, and authored The the Institute of Politics at the startup of the JFK School. Foundations of Anglo-Saxony (1941) and Anglo-American Sir Eric Roll was among the teaching "Fellows" of the In­ Union as Nucleus of World Federation (1945). stitute of Politics in residence at the JFK School at the time of Harvard's John F. Kennedy School of Governmentused its startup under Lord Harlech and Harriman. Roll had for­ Kennedy's name to promulgate doctrines directly contrary to merly been Britain's Permanent Under Secretary of State for President Kennedy's objectives. For example, why does the economic affairs and Britain's executive director of the Inter­ "JFK School" not promote the investment tax credit, a Moon­ national Monetary Fund (IMF). He went from Harvard to be­ Mars space project, the issuance of Treasury notes instead of come chairman of S.G. Warburg investment bank in London. Federal Reserve notes, and a massive government research program in nuclear energy development? Why not teach a The British director of Harvard's institute course in how to face down and defeat the corporate represen­ After Lord Harlech's death in 1985, his place on the Se­ tatives of J.P. Morgan, so students could do as JFK did against nior Advisory Committee was assumed by Shirley Williams, U.S. Steel's anti-labor, anti-American, anti-industrial own­ a member of Britain's House of Lords; she remains on the ers? Instead, the so-called JFK School teaches submission to committee today. In December 1988, following the election London, deindustrialization, the surrender of labor's rights of George Bush to the U.S. Presidency, Lady Williams be- ("labor flexibility"), crushing the poor ("welfare reform"),

EIR June 14, 1996 Investigation 65 and the alleged inevitability of ethnic conflict. mus University, Rotterdam, and at the University of Leyden, The policy choices, as well as the key personnel, found in Netherlands, was in residence at the de Gunzburg Center as a the events of 1966, lead toward the Goldhagen book as well "visiting scholar" in 1994-95. The de Gunzburg Center's as to other racist and British-imperialist features of Har­ 1994-95 brochure expl.ained, "Lehning is currently engaged vard's work. in a project, provisionally entitled 'Citizenship, Federalism, • Stanley Hoffman, Goldhagen's coach for the disserta­ and Secession.' The object is to locate the right to secede in tion and book, was a professor of governmentand one of the the broader context of contemporary political theory. The 17 "Faculty Associates of the Institute" alongside Kissinger objective will be to try to look for a coherent political theory at the founding of the Institute of Politics. that formulates the conditions under which secession might • James Q. Wilson was an associate professor of govern­ be justified." ment, and another of the original 17 "Faculty Associates of Michal Federowicz, a sociologist from the Polish Acad­ the Institute." Wilson is famed for his combination of eugen­ emy of Sciences, was another visiting scholar, who focuses ics and fascistic criminology. on the "transformation of the economy of East and Central • Roger D. Fisher, professor of law, was another of the European countries. He has directed a series of field studies original 17 "Faculty Associates of the Institute." Fisher now concerning enterprise performance in cooperation with ... runs "conflict resolution" sessions to legitimize and train the Soros Foundation, and the United Nations Research Insti­ guerrilla leaders seeking to destroy the nations of Ibero­ tute for Social Development." The Soros Foundation is cur­ America. rently campaigning throughout eastern Europe for the legal­ ization of narcotics, and for the destruction of all political forces that would attempt to protect national economies in the 7. British Empire war against dirigist fashion of Abraham Lincoln, Franklin Roosevelt, and John F. Kennedy. the nation-state The Brit who made Goldhagen a star Daniel Goldhagen's anti-German, racist provocation is Let us sum up the imperial dirty operations at the de Gunz­ not an anomaly, but is quite representative of Harvard's de burg Center, by examining the work of two professors, Gary Gunzburg Center and its German government-financed Pro­ Marks (not regularly at Harvard, but an important visitor), gram for the Study of Germany and Europe. Goldhagen him­ and Charles S. Maier, director of the Center. self, of Harvard's Department of Government(assi stant pro­ Gary Marks is a British gentleman. He now teaches at the fessor of government and social studies), is a member of the University of North Carolina; he is a fellow of the Center for Steering Committee of the Program for the Study of Germany Advanced Study in the Behavioral Sciences at Stanford, and and Europe, and Goldhagen is a director of the journal Ger­ will be there next year writing a book with Seymour Martin man Politics and Society, put out by the German government­ Lipset. He also works as a referee, or screener, of manuscripts financedprogram at the three U.S. universities. for British, Canadian, and U.S. institutions and publishers. Prof. Seyla Benhabib, also of Harvard's Department of Marks is quite important to our story. In 1994, he was Government, is Goldhagen's colleague in residence at the chairman of the "awards committee" for the American Politi­ de Gunzburg Center and Goldhagen's fellow member of the cal Science Association. Marks chose Daniel Goldhagen's Steering Committee of the German government-financedpro­ work to receive the Gabriel A. Almond award as the year's gram. Professor Benhabib (bornin Istanbul, 1950), who "con­ best dissertation in the field of comparative politics, thereby centrates her research on Germany," is one of the Center's launching Goldhagen toward fame: The thus-honored disser­ core personnel. Since 1986 she has been editor in chief of tation was the basis for the book Hitler's Willing Execution­ Praxis International, the officialorgan of the group that has ers, which was published soon afterward. In a telephone inter­ controlled Serbia and organized and instigated Serbian mass view, EIR asked Professor Marks if he agreed with murder against its Balkan neighbors. This criminal leadership Goldhagen's hypothesis. He answered only, "It was closely group was trained by Britain's Tavistock psychiatric institute, reasoned." in whose methods Professor Benhabib is a specialist. EIR In 1991, Marks himself delivered a paper at Harvard's de exposed this operation in 1993, naming Seyla Benhabib as Gunzburg Center-his curriculum vitae lists that paper's title one of the perpetrators (see EIR, Feb. 12, 1993). as "European Integration and the Disintegration of the State." After 1992, Benhabib and the Serbians closed Praxis and While no paper of that exact title is said to be available in the opened a "successor journal" called Constellations: An Inter­ filesof the de Gunzburg Center, there is, in their files,a 1991 national Journal of Critical and Democratic Theory. She is paper by Marks, entitled "Structural Policy, European Inte­ co-author of the 1993 MIT book, Max Horkheimer: a Reeval­ gration, and the State." uation, and, as of 1994, she was "currently finishing" a book In this 1991 working draft, Marks raises the questions: entitled The Reluctant Modernismof Hannah Arendt. How might the development of the European Community be Percy B. Lehning, a professor of government at the Eras- able to change "established structures of political authority"?

66 Investigation EIR June 14, 1996 How could a "decline of the state in western Europe" be state structures?" brought about? How could nation-states' "monopoly oflegiti­ Marks includes in the draft a table (see Table 1) entitled, mate coercion ...and privileged position as the interlocutor "Typology of Political Orders in WesternEuropean Develop­ of domestic interests in international relations" be broken? ment." It shows the way things were under the "Feudal Marks answers by bringing out "the role of subnational gov­ Order," how they have been in recent centuries in the "State ernmentsin the European Community which raise the possi­ Order," and how they are going to be in the "Post-State bility that the state may be outflankedfrom above and below Order." The latter glorious future, no surprise, turnsout to be by the creation of new policy networks linking the [European] a repeat of feudalism. Commission directly to subnational governments" (emphasis According to this British gentleman, who made Gold­ in the original). hagen famous, the ending of aristocratic feudalism was a mis­ Marks aims to show how the system of European nation­ take, a ripoff. Marks writes: "Modem states were created by states can be successfully destroyed, not to be replaced by a monarchs who had to struggle for predominance ...[against] strong united Europe, but by chaotic, impossibly ambiguous disparate baronies. [The monarchs were looking to] expand relationships among international authorities, weakened na­ their armies, exact more resources from their subject popula­ tions, and seceded or semi-seceded subnational regions. This tions, develop new and more efficientadministrations for this strategy "involves the mobilization of subnational govern­ purpose, and findadditional resources to undermine or repress ments." Marks writes: "The Commission [as opposed to the the popular resistances that all the above engendered ....If member European states] ...is solely responsible for allocat­ some other institutional mix available under the particular ing a sizeable portion of total spending for structural policy circumstances of European feudalism [had been] better suited ...accounting for around one-quarter of the EC's total bud­ to the creation of larger and better-equipped armies and the get. ... capacity to fund them at short notice it is quite likely (though "The Commission has developed a set of technocratic not of course provable) that the modem state would never criteria for determining whether a particular region is eligible have been established." for structural funding that increases their administrative au­ Marks concludes by noting that something might go tonomy by insulating them [from] member-state dominated wrong, that "it is possible to imagine a potential reimposition negotiations in the Council of Ministers .... of centralized state structure in the effort of some govern­ "The Commission is shifting ...[to being] an active par­ ments to defend their 'sovereignty' by framing issues in ticipant in framingand monitoring regional development pro­ sharply nationalistic terms." grams. [The EC' s structural funds are less and less being used to] support individual projects proposed by member states." The Empire does a striptease Marks points to Spain and Italy as two success stories, Finally, let us look at the work of Charles S. Maier, direc­ and to Germany and Ireland as more problematically unitary tor of the de Gunzburg Center for European Studies, Krupp states. Marks gloats that "the implicit principle of member Foundation Professor of European Studies at Harvard, and state monopoly of aggregation of territorial interests within chairman of Harvard's Committee on Degrees in Social Stud­ their boundaries has been breached ....For the first time, it ies. Professor Maier's paper "Empires or Nations? 1918, [now] makes sense to conceive of European integration as a 1945, 1989 ..." is to be found in the de Gunzburg files. In two-pronged process in which member states are outflanked this draft paper, Maier shows himself to be an enemy of human on the one side by the transfer of authority to the EC and on freedom and dignity, a hater of America, and a worshipper of the other by incentives for newly assertive and politically the British Empire in all its degraded immorality. meaningful regional bodies. The Maier paper provides a chilling context for evaluating "This development has its corollary in the cross-national the purpose of the Goldhagen book. The current objective of mobilization of regional governments and regionally based British (and by adoption, Harvard) policy is to impose savage interest groups intent on gaining direct access to decision austerity and poverty on nations. A pertinent model for this making at the EC level. The Commission speaks (and proffers would be the regime of Hj almar Schacht, Hitler's economic financial aid) directly to territorially organized groups ... czar, who smashed labor by recycling the workforce into low­ [which] demand direct access to the EC over the heads of their wage, labor-intensive brutality while gearing up for a sense­ member state governments.. ..Pan-European associations of less war. Back in the 1930s, the Schacht-Hitler regime was regional and local governments ...are now consulted by the applauded as "economically responsible" by the New York Commission on matters of structural policy. For its part, the Times, the Washington Post, and other "respectable" outlets. Commission has opened officesand is directly represented in Now Maier argues that "market forces alone" cannot "assure several regions. Local and regional governmentsserve as the transnational stability." That is, that persuasion alone cannot new interlocutors of the Commission, a role that challenges successfully impose the IMF austerity program, that ulti­ the traditional monopoly of national governmentsto mediate mately the power of "empire" will have to be brought to between domestic and internationalaff airs ....Are we seeing bear-civilized notions of equality and self-government be the emergence of a ...new political order displacing national damned.

EIR June 14, 1996 Investigation 67 TABLE 1 Gary Marks's outline for a return to feudalism

Feudal order State order Post-state order

Constituent units Multiple, overlapping Limited number Multiple, overlapping kingdoms, fiefdoms, of territorially states, intemational duchies, city-states, differentiated states organizations principalities, etc., and subnational alongside universalist church governments

Principles of integration Multiple nested Exclusive, Multiple nested secular obligations territorially identities: some mix alongside defined of local, regional, transnational identities, national, and loyalty to church intensified in supranational many cases by identification of state with nation

Decisional locus Multiple, autonomous Singular, Multiple, intersecting spheres of secular and hierarchical and dispersed ecumenical competence structure of reflecting shifting alongside traditional decision making competences among rights and immunities within each state diverse levels of reflecting decision making principles of sovereignty and in many cases national community

Source: From a 1991 paper by Gary Marks on ·Structural Policy, European Integration, and the State." Marks titled his table, "Typology of Political Orders in West­ ern European Development."

Thus, the Goldhagen book, by turningthe historical focus ping with cynicism, ''usually claim that the political institu­ away from fascism as a policy choice by powerfulmen, would tions of modem nation states are based upon the representa­ obscure for today' s citizens the menace of the same ominous tion of individuals according to civic ground rules ...[based policy, now being applied by the same British geopolitical upon] civic equality and shared participatory rights (at least forces which sponsored Hitler. for the dominant ethnic community)." Maier, director of the Center which Goldhagen calls his "Empires are different," Maier explains. "By empire I "intellectual home," discusses the "settlement" of the world's refer to a form of territorial organization that groups different political affairs, through "a set of international transactions, nations or ethnic communities around a sovereign center whether consensual or imposed by force, that keeps interstate which possesses preponderant resources of power and/or conflict short of war, or a balance of power that guarantees a wealth. Whereas a nation usually claims to represent its citi­ sort of peaceful equilibrium." zens according to principles of equality, an empire is hierar­ Maier writes that the empires' "Vienna settlement pre­ chic. It frankly envisages that one political community must served peace from 1815 until the wars of 1853 to 1870," remain the major initiator of policies and coordinator of eco­ relying on "a consensus among agrarian elites, represented nomic activity ....The key to successful imperial control or by British Tories, Austrian, French, Russian and Prussian coordination rests upon the shared stake of leadership for the statesmen, who took it for granted that traditional aristocra­ elites in each· territorial component. Empires are projects of cies were the natural governorsof society." But "the British," rule in which provincial elites feel they comprise part of the Maier points out, "opted out of counter-revolutionary en­ ruling class of the structure as a whole. Empires ...are efforts forcement" of the "landlord order," that is, Britain's aristoc­ at transnational linkage within a hierarchy of peoples." racy was to be of the "modem" type, not feudal agrarian, but In imperial economics, "High value-added production merchant bankers. takes place at the 'center'; low value-added production takes According to Maier, the world order is now no longer places at the 'periphery'; the imperial organization tends to safely preserved and balanced between Soviet repression and throw a political bridge over the flows of products, invest­ the West. In this situation, Maier compares the usefulness of ments, profits, and labor. This pattern thus tends to corrode nations and empires, and explains why the empire is to be the fixed territorial location of productive process and legal preferred over the nation-state. jurisdiction; it de-territorializes, or, to use today's jargon, The "architects and defenders" of nations, he writes, drip- 'globalizes.' "

68 Investigation EIR June 14, 1996 Not equality, but deviance enterprise, [including] the post-Darwinian doctrines of bio­ A few sentences later in the Maier piece, is an extraordi­ logical competition .. ..For the larger [countries] ...the tran­ narily unguarded explanation for the rationale of the bestial sition to empire was already inherent in their national devel­ empire: "So far as society is concerned, nations value equal­ opment. Consolidating the national state meant reworking de ity; empires come to terms with stratification. They can be facto subjection within their frontiers, even as the new na­ opulent for some and rewarding for many even as they impose tional school systems inculcated the alleged equality of citi­ subjection on others. In returnfor encroaching inequality they zenship. Peasant communities at the edge had usually been allow wider choices of lifestyle and limit the stigma of devi­ poor, but now these peripheral peoples-Celts or coloreds, ance. They are cultivated and cosmopolitan; they offer splen­ Sicilians, Poles, westernSlavs-were pulled into the national did opportunities for bureaucrats and those who can lend their vortex, taught the national language, bred to serve as domestic rhetoric to the hierarchic project. ... servants, or recruited to forge the heavy metal which their "The thesis of this paper is that despite public rhetoric and new rulers were using to become united, rich and powerful." ideology, empires or imperial systems have proven indispens­ The Anglophile professor here demonstrates precisely the able at each critical effort at 20th-century stabilization. Our mind-set of the 1970s "Weatherman" terrorist leader Mark statesmen repeatedly appeal to nations, but fall back on em­ Rudd, spewing out rhetoric against the steel mills that gave a pires. In those intervals when imperial coordination has col­ good living to American workers. lapsed ... stabilization has proved precarious and Maier continues in the vein of "nation-states turnednatu­ ephemeral." rally into empires," but allows that nations "subscribed to Maier differentiates "empire"-i.e., the British, though ideologies of uniform civic identity and equality (with caveats they are not invoked by name-from mere territorial rule: "It for women, children, people of color, the propertyless, the must be understood that the patterns of empire, which have illiterate, and the feeble minded). Empires did not." proved so recurrently compelling, were not the formalized After World WarI, Maier contends, "nation-states as such colonial domains that were divested after 1945 ....Empire, ...proved inadequate to the economic tasks of postwar recon­

as used here, refers to the differentiation and hierarchization struction .... A pluralist system of formally equal sovereign of the world economy and cultural systems-not just the states could not stabilize a high-employment economy that frameworkof formal rule." He then goes on to claim that the normally responded to transnational parameters and signals." "United States has been an imperial power, albeit one that in Maier now describes the heart of British, and Harvard, the developed world, at least, did not have to rely on coer­ economics. Good old imperial inequality was what the world cive domination." needed to overcome the mess national sovereignty had cre­ He adopts a snarling, cyncial tone toward the United ated: "Hobson has suggested, with some acuteness, that the States: "States like to claim that they are nations even when 'taproot' of imperial projects involved income inequality at they governfa r-flungimperial nations." home. Income ineqUality allowed elites to accumulate savings Maier writes that in the 1850s to 1870s, there was a for which they sought safe, overseas outlets. Conversely ... "world-historical controversy over nationalism or confeder­ imperial organization helped employers to stabilize income alism, and nationalism won" -in "Italy, Germany, the Amer­ inequality within their home territories, not so much perhaps ican Civil War, the victory of the Mexican liberals, of the by developing low-wage competition offshore (e.g., Indian outer Daimyo over the Shogunate, etc." cotton workers), as by making the gold convertibility of inter­ He then deceitfully serves up together the British-spon­ national currencies the criterion of economic maturity." sored aristocratic gang which overthrew the republican na­ tionalists, all mixed up with the Lincoln-allied forces they 'Cyberspace and jaded travellers' overthrew, attempting to show that the nation-state does not Maier concludes this 1995 paper by discussing the new and now cannot exist. "A new class coalition emerged behind world order. Today, "the size of sovereign political units re­ these victories: a melding oflanded aristocrats, hitherto domi­ mains irrelevant so long as they permit free trade and capital nant in national government,with 'bourgeois' representatives movements. And obviously if economic or market forces of industry, of the bureaucracy and the learned possession alone can assure transnational stability, prospects in the West [sic]. This was the new coalition within the modem Conserva­ are more cheering than if they cannot." But Maier doesn't tive and Liberal parties in Britain ...it was the coalition that think the market, unaided by the power of empire, can enforce put an end to reconstruction in the United States ...or that anything. "Speaking personally, I am doubtful."After all, we the Meiji oligarchs soldered together. The men who made the have to deal with human beings who unfortunately tend to re-energized nation states of the latter 19th century collec­ resist oppression and starvation, or as he puts it, tend to resist tively represented wealth, technology, expansive energy, as "a painful and still unfinished transition to new industries, well as ancestry." unfamiliar principles of labor stratification, and new geo­ Oozing hatred of the United States and its nation-state graphical distributions of economic power. allies, Maier goes on, perhaps referring to Harvard itself: "We live in the twilight of territoriality, whether as chil­ "Contemporary science furnished analogues for the national dren in cyberspace or jaded travellers in the airport archipel-

EIR June 14, 1996 Investigation 69 ago. So it is not clear how principles of territorial organization Fried. Krupp. By testamentary disposition [Alfried]provided can or shall be reconnected with political and economic regu­ for the 'conversion of the firm into a corporation, ownership lation. All we can say now is that ...it would be shortsighted of which will be vested in a Foundation reflecting the Krupp to deny the role of imperial organization as an underpinning tradition of serving the public benefit.' of market growth and even of so-call market democracy. Civil "Upon his death on July 30, 1967, his entire assets passed society and markets alone did not assure the stabilization of to the Foundation established by him, which entered into ac­ Western democratic societies after 1945. Nor did self-suffi­ tivity on Jan. 1, 1968 .... cient nation-states. They seem increasingly unlikely to do so "Chairman and chief executive member of the Board of after 1989." Trustees of the Foundation from the beginning of its activity has been Prof. Dr ....Berthold Beitz. "Today the Alfried Krupp von Bohlen und Halbach-Stif­ 8. That Nazi money behind tung is the principal shareholder of Fried. Krupp AG Hoesch-Krupp." the book: Is it 'atonement'? Among the projects of the Krupp Foundation are, in the "science" category, a "Lexicon ofBioethics ofGorres-Gesell­ We have seen that the German governmenthas been pay­ schaft (since 1993)," that is, a modem-day continuation of ing Daniel Goldhagen's salary while he wrote a book attack­ the fascist eugenics movement; and, in the "education and ing the religion, culture, and historical existence of the Ger­ training" category, Daniel Goldhagen's work. And, among man people. Equally interesting is the fact that the Krupp lesser Harvard projects, Laura Ginsburg, travel grant for writ­ Foundation, representing the wealth accumulated by produc­ ing on "Spain's Gay Rights Movement"; Nani Clow, travel ers of Hitler' s munitions, paid Goldhagen to write that specific grant for research on "Physics, Psychics and Spiritualism in book. Now, the suggestion has been made, perhaps naively, Late-Victorian England: Sir Oliver Lodge and the Psychical that the Krupps, by financing Goldhagen' s provocation, may Researchers"; and Angelia Means, research fellowship, be "atoning" for what they did during World War II. But, "Postnational Political Theory: Relocating the Public since Goldhagen thanks the Krupp Foundation for helping Sphere." financehis book, and nowhere reproaches Krupp or any other Other Krupp education projects include the McCloy political or financial entity with guilt for the Holocaust, this scholarship program of Guido Goldman; "Training in Ger­ would appear to be transferring the blame, rather than many for junior executives in Brazilian industry (since atonement. 1977)"; "Centre for training industrial foremen in Brazil Goldhagen explains on pages 4-6 of his book, that his (1980 to 1988)"; and projects for Russia, Poland, and China. target is neither the Nazis, nor those who brought the Nazis The Krupp Foundation board includes Karl Otto Pohl, to power or built their war machine, but the "perpetrators" of former chairman of the German central bank (Bundesbank); the Holocaust-by which he means mainly Germany as a and Johannes Rau, the British-aligned governor of the Ger­ nation, culture, and people: man state of North Rhine-Westphalia, whose post-industrial "Explaining the Holocaust is the central intellectual prob­ policies helped demolish the once-great steel industry of the lem for understanding Germany during the Nazi period. All Ruhr. the other problems combined are comparatively simple. How the Nazis came to power, how they suppressed the left, how Britain's own Nazis they revived the economy [sic], how the state was structured Berthold Beitz, the founder and longtime chairman of and functioned, how they made and waged war are all more the Krupp Foundation, was an important Nazi functionary or less ordinary, 'normal' events, easily enough understood. in Nazi-occupied Poland during World War II. He was not ...Until now, the perpetrators ...excepting the Nazi leader­ punished for what the Nazis did there, because he was a Nazi­ ship itself, have received little concerted attention .... The British joint agent, in a very sensitive position. This is the commission of the Holocaust was primarily a German under­ story of Beitz's agentry: taking. Non-Germans were not essential to the perpetration The Royal Dutch Shell company, combining the British of the genocide." and Netherlands monarchies, was led from 1912 until 1939 The Nazis' rise to power, war-making, etc. are "easily by Shell founder Sir Henri Deterding. Shell chief Deterding'S enough understood," according to Goldhagen. An inquiry notoriety as a supporter of Hitler was second only to that of into this Krupp Foundation, helps us to understand that which Montagu Norman; Shell was said to have contributed $60 Goldhagen fails to explain about the Nazis' sponsors. A cur­ million to the German Nazi Party. In September 1939, when rent brochure from the foundation tells us: Britain declared war on Germany, a representative of Rocke­ "The non-profitAlfried Krupp von Bohlen und Halbach­ feller's Standard Oil president William S. Farish flewto En­ Stiftung [foundation] is the bequest of ...Alfried Krupp von gland, where he worked out an agreement with Royal Dutch Bohlen und Halbach, the last sole proprietor of the firm of Shell for the continuation of the Standard Oil cartel with the

70 Investigation EIR June 14, 1996 Nazi chemical and munitions firmIG Farben, despite the war, ism that aided human civilization, should be suppressed to­ and even if the United States would enter the war. The Stan­ day. It is in any case a disgrace, that the money Krupp gained dard Oil representative then flewto the Netherlands on a Brit­ from building Hitler's war machine, was used to support a ish Royal Air Force bomber to close the deal with IG Farben. race-hater such as Goldhagen. Sir Henri Deterding died that year inside Nazi Germany. The real post-World War II relationships at Krupp are The IG Farben-Standard Oil cartel owned and operated best illustrated by the curious episode beginning Nov. 11, the Auschwitz concentration camp in Poland, using slave 1962, involving the Krupp, Churchill, and Harriman families. Jews who were murdered after making artificialgasoline for Winston Churchill II (grandson of the former prime min­ Hitler. Another part of the Nazis' fuel from Poland was sup­ ister, son of Pamela Digby Churchill, and later the stepson plied by the Shell Oil Company's German subsidiary, from of Averell Harriman), went on an adventurous nine-month, their Polish operations. Beitz, a Shell employee, ran Shell­ around-the-world tour in a light airplane with Arnold von Germany's Galician oil fieldsfrom 1939 to 1944. Bohlen, Dl�phew of Krupp family head Alfried Krupp von After the war, Beitz came under the sponsorship of the Bohlen und Halbach. The two comrades, Churchill and British within occupied Germany. He was made deputy chair­ Krupp, formerly leaders of the Oxford Ski Club, visited many man of insurance operations within the British zone in 1946. colonial and former colonial countries, impressing on the co­ During 1949-53, Beitz was director general of an insurance lonial natives everywhere that Churchill and Krupp are company, and then was thrust into the position of Bevollmiich­ united, and are to be saluted together. tigter, the prime potentiary or de facto boss, over the Krupp This, then, is the real identity of the "Krupps," who deter­ interests in Germany. Beitz was sponsored by the British, mined that the old Nazi money should finance Daniel Gold­ who, after having ensnared the United States and Russia in hagen's attack against Germany. the Cold War, ran some of their dirty dealings with the East It should also be noted that the Fritz Thyssen Foundation bloc through Beitz. Konrad Adenauer attacked some of these is to be found working side by side with the German govern­ Beitz operations. ment- financedGerman studies program, not at Harvard, but at Beitz was also a leader of the restored Friedrich Flick the University of California. This is named after the infamous interests. Flick had been a partner of Averell Harriman and Fritz Thyssen, who wrote the book I Paid Hitler. What is Prescott Bush in Poland, and, after serving three years of a not in Thyssen's book, is the criminal operation of Bank of Nuremberg sentence for using slave labor, Flick came back England GovernorMontagu Norman, and his partners A ver­ as a billionaire. ell Harriman and Prescott Bush, in organizing Thyssen's fi­ nancing of the Nazi Party; neither is the legal action of Presi­ Krupp and eugenics dent Franklin D. Roosevelt, shutting down the Norman­ From early in the 20th century, the Krupp family helped Harriman-Bush-Thyssen Nazi bank in New York in October organize the eugenics movement, a British intelligence pro­ 1942. (See Webster Tarpley and Anton Chaitkin, George ject run jointly with Arthur Balfour's Psychical Research So­ Bush: The Unauthorized Biography, Washington, EIR, 1992, ciety. The British author Paul Weindling writes, in "The for a full account of the Thyssen case.) Rockefeller Foundation and German Biomedical Sciencs, Then there is the Carl Duisberg Society, which, according 1920- 1 940," in the book Science, Politics and the Public to the above-cited report of German Foreign Office, is in­ Good (London: Macmillan Press, 1988): volved in German-American exchange programs jointly fi­ The Psychiatric Institute in Munich "had initially been nanced by the Duisberg Society and the German government. endowed with 11 million marks, contributed by Gustav Krupp A representative of the society's affiliate in New York told von Bohlen und Halbach [head of the Krupp steel and arms EIR that this involves exchanges with congressmen, teachers, family] and James Loeb [Paul Warburg's brother-in-law], an and students. Carl Duisberg was the boss of the Bayer chemi­ expatriate American of the Kuhn-Loeb banking family." This cal company in the early 20th century. Duisberg and Erich institute was the original offshoot of the British eugenics, or von Ludendorff together created the IG Farben cartel, under race purification movement inside Germany. With the addi­ the strict internationalfinancial rule of Montagu Norman, and tion of Rockefeller Foundation support, the Psychiatric Insti­ the joint control of Shell and Rockefeller, with Bayer at its tute's Nazi chief ErnstRudin went on to write Hitler' s race center. Duisberg said he modelled the cartel on the Rockefel­ laws and organized the Nazi regime's killing squads. ler trust. Back during World War I, Duisberg asked the Ger­ The Krupp enterprise, famous from a century earlier as man Army to get him slave workers from Belgium, but the a great German steelmaker, supported Hitler, and certainly affair created such a scandal that it was quickly terminated. played a maj or role in building the Nazi war machine. The The world, and the Jews, were not so lucky with the cartel in Krupps were not as central the players that British agents World War II. Thyssen, the IG Farben bosses, Schacht, etc. were in organiz­ We may conclude that real "atonement" would involve a ing the Nazi state. But the British have worked to ensure that simple apology-and closing down the British Empire for the only good side of Krupp, the pre-World War I industrial- good.

EIR June 14, 1996 Investigation 71 �TIillNationa1

LaRouche sets the tone fo r Democratic victory

by Mel Klenetsky

As the Democratic Party Presidential primary season came to state or federal government." a close on June 4, candidate Lyndon LaRouche set the stage LaRouche and his supporters represent the most out­ for the next phase of his campaign, leading up to the August spoken wing of the Democratic Party in their effortsto expose Democratic National Convention. With nearly 600,000 votes the Nazi-like brutality of the Conservative Revolution, in or­ under his belt-a substantial return,whose significance far ex­ der to foster an understanding among the voting electorate of ceeds the numbers themselves, given the mediablackout of his the necessity to defeat the Gingrich minions in their Congres­ campaign-LaRouche defined the rallying cry for his cam­ sional bids in the November general election. paign following the primaries. "We have to roast some fascists, and save the marshmallows for the barbecues," he said. Fowler in violation of Voting Rights Act LaRouche has targetted the policies of House Speaker LaRouche has been in a pitched battle with Democratic Newt Gingrich's (R-Ga.) "Conservative Revolution" for the Party National Chairman Donald Fowler and the Harold past year and a half, and specifically the welfare reform pro­ Ickes-Anne Lewis wing of the Democratic Party, both, be­ posals of Gov. Tom Ridge of Pennsylvania, since that state's cause of Fowler' s efforts to prevent LaRouche delegates from primary in April. LaRouche, in setting a standard for rallying being seated at the late-August Democratic National Conven­ the population against the Contract with America, hopes to tion, and, because of the dangerous, apolitical, low-profile dramatically shift the disastrous current Democratic Presi­ reelection strategy that campaign adviser Dick Morris, Ickes, dential reelection strategy, laid out by Democratic National and Fowler have sold to the President. Committee Chairman Don Fowler. LaRouche, on May 12, issued a call for the resignation LaRouche has described Ridge's welfare reform policies, of Fowler. "The issue," LaRouche stated, "goes beyond the which would eliminate medical assistance for 220,000 poor, outrageously immoral, repeated, lying attacks which Mr. as Nazi policies. In May, LaRouche's Pennsylvania head­ Fowler has made upon both me and those voters which have quarters drafted a petition to impeach Governor Ridge for supported my candidacy ....It is relevant to this matter, that Nuremberg crimes against humanity. On June 4, over 150 Mr. Fowler's immoral and otherwise outrageous misconduct supporters rallied in front of the Pennsylvania State Capitol in in office has been prompted chiefly by the pressure on him Harrisburg. During lobbying after the rally, these LaRouche and the National Committee, from a certain wealthy, right­ supporters and anti-Ridge activists met, personally, with wing circle whose economic and social policies would be more than 20 legislators and visited more than 125 legisla­ more suited to the associates of House Speaker Newt Gingrich tive offices. than the party of Franklin Roosevelt, John Kennedy, and LaRouche has called for similar campaigns against all Bill Clinton." governors and other elected officials who advocate radical LaRouche sees the Fowler group as responsible for cost-cutting and life-threatening cuts, from William Weld in "throwing" the 1994 Congressional elections, allowing the Massachusetts to Pete Wilson in California."They should be Gingrich Republicans to gain a majority in the House for the impeached, and repudiated at every level," LaRouche said. first time in decades. "We cannot allow Nazism in this form, or its echoes, in our On June 6, LaRouche warnedthe State Democratic Exec-

72 National EIR June 14, 1996 utive Committee of Texas, in response to a decree to the TABLE 1 committee from Fowler not to seat LaRouche delegates at the LaRouche election results in 1996 Democratic state convention on June 7, that such a decision is in direct primaries and flagrant violation of federal law. "The decision by the Temporary Credentials Committee of the Texas Democratic Total votes Party, to exclude from the state convention duly elected dele­ Total #ot cast in Percent ot votes tor Democratic Date ot gates pledged to Presidential candidate Lyndon LaRouche," State vote LaRouche primary primary LaRouche said, "if adopted by the State Democratic Execu­ Alabama 4.0% 11,173 280, 173 June 4 tive Committee, would be in flagrantviolation of the Voting Arkansas 6.6% 20,669 315,503 May 21 Rights Act. ...The DNC chairman does not have the lawful California 7.0% 162,656 2,339,843 March 26 authority to deprive voters of their rights." Colorado 11.2% 5,978 53,523 March 5 District of Columbia 1.5% 391 26,079 May 7 Vital issues are ignored Delaware 9.6% 1,038 10,813 Feb. 24 Illinois 1.8% 14,300 779,907 March 1 9 For months, LaRouche has warned that the low-profile Kentucky 7.3% 20,013 272,899 May 28 Fowler-Morris-Ickes reelection strategy will backfire, espe­ Louisiana 11.7% 18,150 152,703 March 12 cially if the problems of the economy are not addressed. All Maine 2.7% 715 25,815 March 5 four of LaRouche's half-hour national television addresses Maryland 4.4% 12,71 0 288,864 March 5 Massachusetts 3.4% 5,212 126,971 March 5 have emphasized the dangerous international financial crisis Mississippi 7.6% 7,007 92,197 March 12 that the world faces. Nebraska 11.2% 10,255 91 ,627 May 14 In his April 18 broadcast on CBS, LaRouche pointed to­ New Hampshire 0.5% 363 80,667 Feb. 20 ward the dangerous hyperbolic growth of speculative finan­ New Jersey 5.2% 12,794 246,048 June 4 cial instruments, such as derivatives, as the source of immi­ North Carolina 7.2% 40,936 572, 160 May 7 North Dakota 34.5% 547 1,586 Feb. 27 nent disintegration in the international markets. "The Ohio 8.3% 63,677 771 ,842 March 19 international monetary and financial system is bankrupt," Oklahoma 12.7% 46,392 366,735 March 12 stated LaRouche, and the only solution is for relevant govern­ Pennsylvania 8.2% 58,761 718,372 April 23 ments of the world to put the international monetary system Rhode Island 4.8% 392 7,938 March 5 into financialreceivership and bankruptcy reorganization, to Texas 3.1% 28,258 91 1 ,548 March 12 Vermont 2.3% 699 30,929 March 5 prevent social chaos and ensure stability. "The central issue Washington' 1.4% 4,61 1 324,61 5 May 7 facing the President of the United States," said LaRouche, "is West Virginia 13.8% 41 ,240 298,218 May 14 to put the Federal Reserve into bankruptcy reorganization." Totals 6.4% 588,937 9,187,577 In his June 2 Fox TV broadcast, LaRouche again called 'For State of Washington, totals are sum of Democratic plus Nonaffiliated for putting the internationalmonetary system, including the primary ballots cast for Democratic candidates. Federal Reserve System, into bankruptcy reorganization for the purposes of saving the U.S. and world economy. This especially includes Russia, which has entered a phase of grave Finally, the failure of the Clinton reelection campaign to social and political crises because of International Monetary attack the politically motivated operations of tainted special Fund (IMF) shock-therapy policies, LaRouche said. prosecutor Kenneth Starr's Whitewater investigations, has led to a serious vulnerability. On June 5, Gingrich, according Democrats must retake Congress to news reports, in the aftermathof the convictions of Arkan­ LaRouche has repeatedly emphasized that the way to sas Gov. Jim Guy Tucker and Whitewater partners James and guarantee Clinton's reelection, and ensure that he could act Susan McDougal, told his staff that Clinton will be facing effectively in his second term, would be to go for a clean many new scandals, which will help unseat him. The latest, Democratic sweep of Congress. Fowler's strategy runs Gingrich said, is a malicious accusation about Ron Brown, counter to such an approach. First, Fowler's continued insen­ namely, that the report of his death in Croatia was delayed by sitivity to issues affecting the African-American community, the White House, so papers in his officecould be shredded. such as timely funding for voter registration drives, have hurt Ted Van Dyk, an adviser to Paul Tsongas's 1992 Presi­ Congressional and Presidential reelection efforts, especially dential campaign, in an op-ed in the Wall Street Journal, in the South. Second, Ickes, Morris, and Fowler's insistence suggested "thinking the unthinkable" at the Democratic Con­ that there has been real growth in the economy, is as insane vention, namely, dumping Clinton as the party's Presidential now as it was in the 1994 Congressional elections, when the standard-bearer if the scandals get out of hand. In an interview Democrats' failure to address reality resulted in a Gingrich with "EIR Talks" on June 6, LaRouche indicated that there has windfall. "This idea of real growth," LaRouche remarked, "is been a proposal circulating to make Al Gore the Presidential patently silly. If there were real growth in the economy, we candidate and Clinton the vice presidential candidate. wouldn't be facing a worsening budget crisis on the federal, LaRouche characterized this proposal as absurd, and a sure state, and local levels." way of losing the election for the Democrats.

EIR June 14, 1996 National 73 ocratic Party in the 1996 elections, and join with Perot in forming a third party. "The time has come to begin building alliances outside of the Democratic Party where our tradi­ tional political partners-white liberals in particular-have abandoned us," she wrote. "Needless to say, the Republican Party offersno alternatives.. ..I believe the potential for such a new alliance lies with the popUlist 'white center,' otherwise known as the 'Perot voter.' "

The media blackout of LaRouche LaRouche campaigned through a series of personal ap­ pearances and four nationwide prime-time, half-hour televi­ sion spots. His vote totals represent a hard core of support, given the media blackout, which few other candidates in the Democratic and Republican parties, Clinton and Dole ex­ cepted, can match. He personally campaigned in 15 of the 26 primary states in which he was on the ballot, speaking before campaign rallies of hundreds of supporters in many of the states. A study by the Center for Media and Public Affairs for the period of Jan. 1 to March 26, the date of the California primary, demonstrates the extent of the blackout against LaRouche. Five hundred and seventy-three stories on the pri­ maries appeared on the three major national television net­ works during this period. Not one of them covered LaRouche. CBS, ABC, and NBC each had 5-6.5 hours of media time dedicated to the primaries. LaRouche was not mentioned in any of this coverage. Dole received 41 minutes of this coverage; Buchanan 36; A demonstration by supporters of Lyndon LaRouche at the State Forbes and Alexander had 18 minutes each; and Doman, Capitol in Harrisburg, Pennsylvania, on June 4, protesting Gramm, Lugar, Keyes, and Morry Taylor each had mi­ medical cuts by Gov. Tom Ridge. At the microphone is LaRouche 15 spokesman Philip Valenti. nutes. Taylor, a political unknown from Illinois, received cov­ erage, while LaRouche was almost entirely blacked out. LaRouche was barely covered at all in the print media. There The failure ofFowlerto secure the African-American vote was almost no mention in the national print media, for exam­ has led to a vulnerability in the general election from Ross ple, of the 162,000 votes that he got in the California primary. Perot's third-party efforts. Perot's Reform Party, an out­ In spite of this lack of media recognition, with many voters growth of his United We Stand organization, will be on the unaware that LaRouche was even on the. ballot, LaRouche ballot in 35 states, according to Russel Varney, national coor­ secured 586,000 votes in 26 primaries, giving him vote returns dinator of the Reform Party. The name of the Presidential mostly in the 7-14% range. He came in with 34.5% in North candidate of the Reform Party will also appear on the ballot, Dakota, his highest. as an independent (not a party), in 15 states. So, the Reform LaRouche's returns,in many states, bested Pat Buchanan, Party candidate will appear on the ballot in 50 states. On Steve Forbes, Lamar Alexander, and many of the other so­ June 1, pro-euthanasia former Colorado Gov. Richard Lamm called traditional candidates. LaRouche bested Buchanan in keynoted the inaugural convention of the California branch North Carolina; Forbes in Louisiana, North Carolina, Ohio, of Perot's Reform Party, and told newsmen that he may be and Oklahoma; Gramm in California, Illinois, Maine, Mary­ available to run for President as the party's candidate. land, Massachusetts, Mississippi, Oklahoma, Texas, and Ver­ To secure ballot positions in all of the states, Perot's Re­ mont; and Alexander in California, Louisiana, Ohio, Okla­ form Party established alliances with Lenora Fulani of the homa, Mississippi, and Texas. New Alliance Party, the Wisconsin-based New Party, and the LaRouche's returns, given the media blackout, show a Green Party U.S.A. level of support which should make Clinton and his advisers In an op-ed in the April 4 Cleveland Call and Post, the take heed of LaRouche's strategy for the elections, given largest-circulation African-American newspaper in the coun­ LaRouche's warnings and the recent slippage that the Morris­ try, Fulani called on African-Americans to abandon the Dem- Ickes-Fowler approach has encountered.

74 National EIR June 14, 1996 Profile: Trent Lott

What does the senator from Mississippi have to Hyde? by Mark Sonnenblick

After havingpushed Majority Leader Robert Dole out of the (HSSI). The contract had already been awarded to the low Senate, Mississippi Republican Sen. Trent Lott is likely to bidder, but Lott got NASA's Inspector General's Office to grab control of the Senate on June 11. If the Republicans were disqualify the two lowest bidders. The grand jury found: to retain control of Congress after the November elections, "Jerry Hlass, former director of NSTL [Space Center], admit­ the fate of the nation could well be, to a significant degree, in ted that he was under a lot of pressure from Lott. He would not Lott's hands. be more specific.. ..David Anderson, NSTL Pricing Analyst, Lott is a tool of the British Crown's Mont Pelerin Soci­ testified that: ...NST L Director Hlass was constantly under ety, which aims to destroy Constitutional government and pressure fromLot t's chief of staff, Tom Anderson." (Ander­ to impose radical austerity, in the interest of international son is said to be Lott' s choice for command of the Senate's financial speculators. When a congressional aide in 1971, staff.) Lott was selected by Mont Pelerin member Rep. Phil Crane On April 4, 1984, Isadore O. Hyde created a full-time (R-Ill.) and current Heritage Foundation president and Mont "public relations" job for Mrs. lona Lott, Trent's 71-year-old Pelerin Society officer Edwin Feulner, to be one of a half­ mother, who was then receiving Social Security and working dozen free-market demagogues they would bring into Con­ four hours per day, minimum wage, at a federally funded gress. His election was financed by the American Conserva­ senior center job. She was kept on Hyde's payroll until Aug. tive Union's Larry Pratt, who considers himself the spiritual 25, 1988. "Lott's services to HSSI were minimum and mean­ father of the radical militias. This crowd backed Lott at ingless," and she only worked half the hours paid, the grand every step. jury found. "Isadore Hyde leased a 1985 LTD for Lott' s sole Were Clinton re-elected without taking back the Con­ use. This car replaced Lott's 1956 Chevy ... [and she] kept gress from Lott and Gingrich, he would likely be impeached, this vehicle for her personal use until November 1988." on the flimsiest of pretexts. Even a failed impeachment Mrs. Lott told the grand jury that Hyde received $966,000 trial would discredit and cripple the Presidency-a prime in Small Business Administration loans from 1980 to 1985. objective of the British imperialists and their Confederates. SBA official Robert Funchess testified that he asked Hyde But Lott's unbounded lust for power might still be con­ why lona Lott was on his payroll. The answer, as recorded in strained. He has far more damaging skeletons hanging in an Internal Revenue Service (IRS) memo summarizing the his closet than anything the media has come up with against grand jury findings: "Hyde said that she needed ajob, that she Bill or Hillary Clinton. Not only does he have an ugly could open doors that would not be opened otherwise, and segregationist past, but his corrupt business dealings have that she was his connection to Washington as she could talk brought him close to a federal indictment. to Congressman Lott when he [Hyde] could not reach the Congressman. " Taking care of Mama Mrs. Lott told an IRS interviewer in 1989, according to Only an accommodating U.S. Attorney and the senator's his notes, "during [Lott's 1988 Senate] campaign, Mr. Hyde incredible ability to intimidate investigators, prevented Lott worked hard .... Hyde told [Mrs. Lott] that Hyde owed from being indicted on fraud and tax evasion charges such as [Trent] because Lott helped him get an SBA loan." In public, those that landed his business associate, Isadore O. Hyde, she and her son remembered nothing. in prison. NASA investigator John Batson discovered that Hyde A grand jury found that during 1983, then-Congressman "authorized the use offederal funds received under the NASA Lott successfully pressured NASA to grant a $5 million con­ contract for the direct benefit of Congressman Lott's cam­ tract to provide security guards for the Stennis Space Center paign activities." Batson also found, as reported by Bill at Bay St. Louis, Mississippi, to Hyde Security Services, Inc. Minor-the only Mississippi writer with the courage to report

EIR June 14, 1996 National 75 embarrassing news about Lott-"Hyde, who became active Does Lott wear sheets? in Republican politics, furnished then-Congressman Lott a On the night of Sept. 29, 1962, Trent Lott was a cheer­ building in Moss Point to use as his campaign headquarters leader at the stadium where Mississippi Gov. Ross Barnett in 1986 without any charge. And the building had been pur­ roused 46,000 people into a frenzy against the federal court­ chased by Hyde out of the Trans-Atlantic World Service ac­ ordered integration of the University of Mississippi. The next count," a dummy company set up by Hyde. "Two checks day, as African-American student James Meredith sought to totalling $4,500 drawn on Hyde's Trans-Atlantic account enroll, mobs overran the campus; two people were killed and were made as contributions to the Capital Foundation of the hundreds wounded. Lott's reflectionson this historic moment Mississippi Republican Party during those years." have never been recorded. His office has no autobiographical Hyde and his wife were indicted by the grand jury on material. An EIR reporter asked a dozen Mississippi politi­ Dec. 18, 1991 on various federal income tax violations and cians, journalists, and political scientists, "What makes Trent conspiracy to defraud NASA. Only after a special assistant Lott tick?" Each laughed and responded, "Nobody's ever U.S. Attorney was sent from Washington in 1993, did they asked that question before." And, as most knew, "Nobody's plead guilty and go to prison. Another grand jury was con­ ever written a biography." vened to look into the Hyde-Lott relationship, but the Hydes But, no one in the state doubts where Lott stands on racial refused to talk. integration. During 1981, he hounded the new Reagan admin­ By January 1988, NASA investigator John T. Batson had istration with letters demanding that it returntax exempt status disclosed to the office of Jackson, Mississippi U.S. Attorney to segregated schools, after 38 such Mississippi schools had George L. Phillips, the facts about the Lott-Hyde relationship. lost their tax exemptions. President Reagan wrote, "I think Batson later told a journalist that he suspected that Phillips we should" on the margin of one such missive. Lott obtained had delayed the case and kept it hushed up long enough for a copy and circulated it to Treasury and Justice Department Lott to be elected senator in November 1988. officials on Dec. 21. Two weeks later, the Reagan administra­ NASA Inspector General William Colvin also ran cover tion restored the tax exemptions. But then, under a storm of for Lott. "Whistleblower" Batson asserts, "In the Spring of protest, an embarrassed Reagan backed off, asserting, "I am 1992, during a site visit to Stennis Space Center, Mr. Colvin opposed with every fiberof my being to discrimination" and personally instructed me to close the HSSI investigation.... blamed Lott for "bad advice." It became obvious to me that the decisions by Mr. Colvin to On May 23, 1982, Minor wrote: "Just when we begin to prevent my participation in interviews, to hinder the service assume that the Citizens' Council, the old white segregation­ of trial subpoenas, and his constant requests for information ist group, is dead and buried in Mississippi, you find out centering around the potential involvement of Senator Lott you're wrong. The old CC lives and breathes, it turns out, in were more than idle curiosity or valid needs to know. It ap­ at least one place in Mississippi: in Carroll County, where the peared very clear, that such behavior could, in substance, organization had a meeting the other night to talk about 'the substantially damage the government's case at trial and suc­ good ole days' when it reigned supreme. And guess who came cessfully hinder or even obstruct related investigations." and was the speaker and honored guest-none other than Batson details how his superiors ordered him "not to con­ Rep. Trent Lott." Minor' s source was a state legislator who tact or participate in a scheduled interview of Mrs. Iona attended the pep rally at the CC's segregated private school. Lott ... ; to delete any reference ...concerning payments to Is Lott committed to segregation? Probably not. The evi­ Senator Trent Lott's mother, the use of federal funds to pay dence is that he is not committed to anything or anyone, except campaign expenses on behalf of Lott, and political contribu­ Trent Lott. When asked about his mission in life, Mississippi tions made by Isadore o. Hyde out of federal contract funds, Lott-watchers agree: "power." including NASA funds ... ; not to cooperate in any manner They also agree that Lott has been too busy gaining power with the FBI and Public Integrity Section." to think about what to do with it when he got it. Mississippi Colvin ordered Batson transferred to California. Batson political scientist Mary Coleman observed, "Lott never exposed Colvin's misdeeds; and Colvin was forced to resign thought this opportunity would present itself ....He doesn't from NASA, Sept. 3, 1994. have the capacity to think." A Lott aide commented, "Over Lott has an amazing capacity to protect himself. The Hyde his career, Mr. Lott has been willing to do just about whatever scandal was a well-kept secret, until Bill Minor and WLBT­ people ask him to do if it is in his power." TV reported on it in 1993. It became known nationally But, on the big issues facing America, which "people" through Jack Anderson's syndicated columns of April 25 and would tell him what to do? There is little doubt it would be May 5, 1994, "Sen. Lott and the NASA Contractor" and the Mont Pelerin Society operatives who picked him up in "Lott's Glass House Fronts on Whitewater." However, none 1971 and paid his way into Congress a year later. Everything of the biographies of Lott published this spring by the news he has done since has cohered with their concept of taking sources Americans depend upon, gave even hints of any of apart the U.S. government andgiving it, piece by piece, to the the skeletons in his closet. most corrupt forces around.

76 National EIR June 14, 1996 homosexuals special rights-as its proponents contend-but it imposes a special disability: that homosexuals can no longer seek passage of a law or ordinance, but must amend the state's Scaliafe eds frenzy Constitution. This disqualificationof a class of persons from the right to seek specific protection of the law "is unprece­ over Supreme Court dented in our jurisprudence." "It is not within our constitutional tradition to enact laws of this sort," the opinion continues. "Central to both the idea 'gay rights' ruling of the rule of law and to our own Constitution's guarantee of equal protection is the principle that government and each by Edward Spannaus of its parts remain open on impartial terms to all who seek its assistance." The U.S. Supreme Court, in a 6-3 ruling issued May 22, struck down the 1992 Colorado "Amendment 2," which barred local Scalia's dissent governments from adopting homosexual anti-discrimination The hysteria around the ruling is being fed by the dissent­ laws. The Supreme Court said that Amendment 2, which was ing opinion written by Associate Justice Antonin Scalia, a response to the proliferation of local laws prohibiting dis­ which was joined by his clone Clarence Thomas, and Chief crimination against homosexuals in jobs, housing, public ac­ Justice William Rehnquist. commodations, etc., denies to homosexuals equal protection Scalia makes much of the factthat the majority ruling never under the U.S. Constitution. once mentioned the Supreme Court's 1986 decision Bowers v. The ruling is being enthusiastically hailed, and vehe­ Hardwick which upheld a Georgia anti-sodomy law, and mently attacked, as "revolutionary" and as a fundamental which correctly held thatthere is no constitutional right to en­ turning point for so-called "gay rights" by the news media. gage in homosexual activity (see EIR, July 18, 1986). "If it is However, the hysteria surroundingthe ruling, especially from constitutionally permissible for a State to make homosexual "conservatives," signifies that those screaming the loudest conduct criminal, surely it is constitutionally permissible for a either haven't read the decision, or are willfully misrepresent­ State to enact other laws merely disfavoring homosexual con­ ing what it says. duct," Scalia wrote. Which is beside the point, because the ma­ In fact, of the six justices who signed the majority opinion, jority ruling clearly does not bar such laws. four are Republican appointees-which may, incidentally, Scalia went out of his way to make his dissent as strident make it hard for Dole and company to attack the ruling as as possible, so as to feed the frenzy surrounding the issue. He a product of "liberal Clinton judges." The four Republican characterized homosexuals as a "politically powerful minor­ appointees who ruled with the majority are David Souter ity" and as "a group which enjoys enormous influence in (Bush), Anthony Kennedy (Reagan), Sandra Day O'Connor American media and politics." (Reagan), and John Paul Stevens (Ford). "The Court has mistaken a KulturkampJfor a fitof spite," Ten days afterthe ruling, a full-page ad ran in the Washing­ wrote Scalia, saying that the Colorado amendment was only ton Times calling for the impeachment of the six "who voted "a modest attempt by seemingly tolerant Coloradans to pre­ to legitimize the homosexual lifestyle." The ad was sponsored serve traditional sexual mores against the efforts of a politi­ by the hitherto-unknown "Loyal Opposition," whose presi­ cally powerful minority to revise those mores through use of dent is listed as Operation Rescue's Randall Terry. the laws." Scalia's dissent also used his typical "democratic" A plain reading shows that the ruling is not an endorse­ argument, that the court should defer to the opinions of the ment of homosexuality: What it says is that the Colorado majority (such as a majority of Colorado voters who adopted measure violates the Equal Protection Clause of the Four­ Amendment 2), and he repeatedly called the ruling "elitist." teenth Amendment, by disqualifying a class of persons from For all of Scalia's appeals to "morality," he told a confer­ the right to obtain legal redress or specific protection of the ence at the Gregorian University in Rome on May 2 that a law. Amendment 2 is so broad and sweeping, said the court, government cannot determine policies according to moral that it bears no rational relationship to any specific objective, principles, unless the majority wants it. Even though he op­ such as protecting the rights of association of other citizens, poses abortion, for example, he argued that states can allow or the liberties of landlords and employers who have personal it if a majority wants to. "I don't know how you can argue on or religious objections to homosexuality. the basis of democratic theory that the governmenthas a moral The ruling said that Amendment 2 "identifies persons by obligation to do something which is opposed by the people," a single trait and then denies them protection across the Scalia contended. board," and said that such a "disqualification of a class of In 1989, Scalia supported the execution of persons as persons from the right to seek specific protection of the law young as age 16, arguing that there is no "national consensus" is unprecedented in our jurisprudence." It does not just deny that this should be considered cruel and unusual punishment.

EIR June 14, 1996 National 77 NationalNews

in 1932 and compare it with America in "His behavior has been unacceptable, and he 1964, you have to say to yourself we did owes the board an apology," Gingrich said. something right during those 30 years.. .. "The control board is the only hope D.C. has Private prison profits They created the world that they set out to to retain home rule ....If the politicians stop create, and you have to admit it was a pretty that control board from succeeding, I think soaring to record highs good one; but it is equally clear that that it puts into doubt the whole issue of home The stocks of the six leading prison privati­ world is no longer the one in which we live." rule." zation companies are soaring above the rest Instead, Eisenach claimed, "It is now The Anti-Defamation League, the racist, of the market because of the "huge demand" very clear ...that that basic thesis about the right-wing hate group, was quick to join the for prison space, both adult and juvenile, ac­ way human beings go about accomplishing public attack against Barry's resistance to cording to market analysts. The stock price large endeavors no longer applies; and that's Nazi economics. ADL regional director Da­ of the largest company, Corrections Corp. of a function of the catalytic effects of informa­ vid C. Friedman sent the mayor a letter, stat­ America, based in Nashville, Tennessee, has tion technology, a consequence of the col­ ing that he was "dismayed and troubled" more than doubled this year. The second lapse in price of knowledge and infor­ about Barry's remarks; that Barry's stance largest company, Wackenhut, based in Coral mation." "inflames tensions"; and that Barry had Gables, Florida, has gained more than 155% made an "inappropriate comparison" to the so far. Both companies have made multimil­ original Nazis. lion-share stock offerings this year. Smaller privatization firms have also done well. BI Inc., a Boulder: Colorado, Barry compares control manufacturer of electronic devices for moni­ toring parolees at home, is up nearly 112%. board to Nazi regime New charges of OSI Stock in Youth Services International Inc., At a June 3 press conference, Washington, of Owings Mills, Maryland, has gained D.C. Mayor Marion Barry blasted the city's fraud in Demjanjuk case about 150%; while Childrens Comprehen­ Financial Control Board for demanding that Public Defender Michael G. Dane has filed sive Services Inc. of Murfreesboro, Tennes­ he oust his longtime friend, Human Services new charges that the U.S. Department of Jus­ see, has more than tripled for the year; and Director Vernon Hawkins,by comparing the tice (DOJ) committed fraud upon the court, Esmor Correctional Services Inc. of Mel­ board to Nazi Germany. Barry called the in presenting its case against John Demj an­ ville, New York, has more than doubled. board's action "absolutely anti-democratic, juk, the Cleveland Plain Dealer reported The gains racked up by these prison pri­ anti-American, un-American ....It reminds May 15. Demjanj uk, a retired Ukrainian­ vateers compare with increases of slightly me of what happened in Germany during the American auto worker, was falsely accused more than 11% in the Dow Jones Industrial period when citizens were abrogated-their by the Office of Special Investigations Average, and just over 9% for the Standard rights were abrogated-in a totalitarian kind (OS I), of being the infamous "Ivan the Terri­ and Poors 500 during the same period. of state." ble" of the Nazi concentration camp at Although he back-tracked later, under Treblinka-despite massive evidence in immense pressure, at the time, Barry insisted government hands, proving his innocence. that the board's measures went beyond race, On May 14, in a court appearance in and were against the interests of all D.C. citi­ Cleveland, where the DOJ is still attempting Foundation futurist: zens. Barry had conceded to many of the to strip Demjanjuk of his citizenship, Dane board's earlier demands, and agreed in Feb­ charged that the government had withheld 'Forget about progress' ruary to eliminate 10,000 workers from the additional exculpatory evidence-this time, The assumptions about human beings which city payroll, in the budget that is to be re­ from both the Appellate Court and the Fed­ led to the tremendous increase in America's leased this month. The Department of Hu­ eral District Court. The Sixth Circuit Court power and influence-fromwhat it had been man Services, which has been under contin­ of Appeals ruled in 1993 that the DOJ had in the early 1930s, to what it had become by ued attack by the Control Board, provides committed fraud upon the court. The addi­ the early 1960s-no longer apply. That was public health programs, psychiatric ser­ tional evidence includes OSI interviews in the message of Jeffrey Eisenach, the presi­ vices, and other help for the city's neediest 1980 and 1992 with Jakob Reimer, a man dent of the misnamed Progress and Freedom residents, and also administers Medicaid. accused of being the paymaster at the SS Foundation, during his opening remarks at a House Speaker Newt Gingrich (R-Ga.), training camp at Trawniki. Despite repeated forum in Washington on June 4. who spearheads the Conservative Revolu­ requests by Demjanjuk for all exculpatory The forum, sponsored by the foundation, tion's Congressional drive to impose Nazi evidence, beginning in 1977, the Reimer was entitled "Dynamic Environmentalism policies on the United States, threatened the documents were never released. for the 21st Century: Progress in Developing next day that, unless Barry retracts his com­ Dane's motion was filed as soon as Dis­ a New Vision for Environmental Policy." paring the board to a Nazi dictatorship, Con­ trict Judge Paul R. Matia, the current presid­ Eisenach declared, "If you look at America gress would abolish the city government! ing judge in the Demjanjuk matter, lifted a

78 National EIR June 14, 1996 Briefly

BOB DOLE and Newt Gingrich filed a bill June 4, to push President Clinton into rapidly expanding NATO into eastern Europe. Despite secrecy order on the Reimer documents, the Immigration must be halted, Lamm said: "some Russian objections," Dole contents of which are still not publicly "America's first duty is to its own poor." said, "our governmentshould cooper­ known. "We believe that this matter is very Larnm then demanded that Social Security ate with a democratic Russia ...but significant and bears directly on the extent and Medicare be slashed-measures which not by denying NATO membership of the government's fraud," Dane told re­ he calls "compassionate austerity." for European democracies." porters. Lamm stuck to his old pitch, urging war The crux of the current OSI claim that by the Baby Boomers against the generation THE MEDICAL profession must Demjanjuk should be denaturalized, is that of the Depression and World War II. He at­ stop protecting patients from "wrong­ he was at Trawniki, and he should be kicked tacked Franklin Roosevelt's New Deal, and ful life," the New York Times decreed out of the country, regardless of the DOJ's raved that we would be guilty of "genera­ June 2. In a front-page story, head­ misconduct. J. Douglas Wilson, a DOJ ap­ tional malpractice" if we don't stop lined "Ignoring 'Right to Die,' Medi­ pellate attorney, lied to the press that the "thoughtlessly consuming ... our children cal Community Is Being Sued," the Trawniki ID card, which purports to prove and grandchildren's resources." Times rallied behind lawsuits filed that Demjanjuk was at the camp in 1942, against doctors and hospitals, for try­ is "as good as gold. It's probably the most ing to save their patients' lives. De­ examined document of the 20th century, and manding tougher laws against such no one's laid a glove on it all that time." interference, the Times promoted the Several years ago, however, Ver Spiegel CFC ban has opened up euthanasia arguments of the Hastings magazine published detailed evidence, ob­ Foundation and Choice in Dying. tained from German government experts, massive black market that the card was almost certainly a forgery. The lunatic ban on chlorofluorocarbons THE WHITE HOUSE has asked The photo of Demjanjuk on the alleged ID (CFCs), imposed by the genocidal environ­ for a review of the Space Shuttle pro­ card was not taken until years after World mentalist movement, has predictably fos­ gram, focussing on the issue of safety. War II, and the card contains egregious tered a massive, international black market Current budget targets would reduce grammatical errors as well. in freon, the CFC-based refrigerant pre­ funding for Shuttle operations by viously employed in cooling and air condi­ nearly $1 billion per year. President tioning systems worldwide. Clinton's science adviser, John Gib­ With U.S. production of freon already bons, says that the goal of the review shut down, the domestic price of a 30-lb. is "to ensure that our efforts to im­ Nazi Richard Lamm may container has jumped from $15 in 1993, to prove and streamline the Space Shut­ almost $600 today; it is expected to reach tle program do not inadvertently cre­ head Reform Party ticket triple that amount by the end of the summer. ate unacceptable risk." Former Colorado Gov. Richard D. Lamm, With a huge demand continuing, a very lu­ the notorious advocate of cannibalism and crative black market has sprung up across NAFTA'S OWN REPORT says it euthanasia, keynoted the inaugural conven­ the United States, especially centered on is driving down wages in the United tion of the California branch of Ross Perot's ports of entry. The Justice Department has States, Mexico, and Canada. Accord­ Reform Party on June 1. Lamm told news­ set up special task forces, drawing added ing to a preliminary report by the men that he may be available to run for U.S. manpower from the Environmental Protec­ North American Free Trade Agree­ President as the party's candidate, instead of tion Agency, Customs, the IRS, the Com­ ment's Commission on Labor Coop­ Perot himself. merce Department, and local police, to crack eration, the number of workers in all During the late 1970s, Lamm emerged as down on smuggling operations which never three countries with a full-time, per­ a rabid public spokesman for the discredited should have existed in the firstplace. manent job is declining-as part­ British eugenics and euthanasia policies em­ Keith Prager, of the U.S. Customs office time jobs and the demand for tempo­ braced by Hitler's Nazi Germany. Larnm's in Miami, told the Fort Lauderdale Sentinel rary or contract workers increase. deliberately provocative statements then May 28, "We are talking about tens of mil­ took the form of the Nietzschean "revolu­ lions of dollars at stake in excise tax and THE CONGRESSIONAL Budget tionary" proposal, that the "younger genera­ illicit profits; [and with] that kind of money Officeis arguing that the Federal Na­ tion" wants older people to die "like autumn at stake, people are going to risk arrest to tional Mortgage Association and the leaves," so they would not consume "our take some of it offthe top." Tom Watts-Fitz­ Federal Home Loan Mortgage Corp. limited resources." gerald, a Miami federal prosecutor who spe­ are no longer needed: "Improving ac­ The 60-year-old former governor told cializes in environmental cases, told the Sen­ cess to mortgage finance may have the California convention that the welcome tinel that "any time you set up an economic been a social benefitworth paying for inscribed on the Statue of Liberty ("Give me shortage, you make smuggling an attractive in the past. It is now available without your tired, your poor, your huddled masses option. That sounds a lot like what happened subsidy from fully private firms." yearning to breathe free ...") is "wrong." historically with Prohibition."

EIR June 14, 1996 National 79 Editorial

It's never too late

The election of Benjamin Netanyahu to be prime minis­ and New York Mayor Rudolph Giuliani. ter of Israel can only be understood in the context of This incident foreshadowed the later assassination how the British have orchestrated events to sabotage of Prime Minister Rabin; during the same period, Israeli President Clinton's peace initiative in the Middle East. government representatives were being routinely mis­ The sabotage escalated dramatically with the murder of treated when they attended religious services in New Yitzhak Rabin on Nov. 4 of last year. Three months York. later, a terror wave was launched against Israel by Arab In July 1995, Rabin responded to the diktat by 1,000 extremists, which culminated in the firing of Katyusha Orthodox rabbis, who, meeting in New York City, in­ rockets from Lebanese territory. Finally, there was Is­ structed Israeli soldiers not to obey orders for them to raeli military retaliation against the civilian population withdraw from bases or settlements on the West Bank. of Lebanon. In short, a political disaster. At the time, Rabin attacked this outrage, saying: "1 hear Prime Minister Rabin was by no means the only strange calls from a group of rabbis from the United target of the British-inspired terror wave. The British States, for whom the name ayatollahs is perhaps better have acted in furtherance of their global, imperialistic suited than rabbis." strategy; and, they have found willing collaborators On Nov. 5, eulogizing Prime Minister Rabin, Pales­ within both Arab and Jewish groups. This created the tine Liberation Organization Chairman Yasser Arafat conditions in which Netanyahu was able to win a bare said that, together, he and Rabin were making "the majority of the votes in the recent Israeli election. peace of the brave ....So this loss is not only a loss for A major role in this cabal, has been played by the the Israelis and the Palestinians, but the whole world." Anti-Defamation League (ADL) of B'nai B'rith. This More recently, Arafat denounced Arab terrorist groups is not at all surprising when we remember that the ADL for deliberately intervening into the Israeli election by was created by the B'nai B'rith in order to run such dirty attempting to discredit Prime Minister Shimon Peres. operations; and that the B'nai B'rith, while nominally The defeat of Peres has been another blow to the Jewish, is itself one of the many Masonic organizations peace process. While the conservative Jewish extrem­ created by the British when Lord Palmers ton was prime ists in the United States played a decisive role in this, minister, in the 1840s. the ostensibly liberal Anti-Defamation League is part On May 26, the week before the election, the Wash­ of the same operation. ington Post carried a feature on the Israeli elections in The assigned task of all these British-run groups, is its Sunday magazine. It described an incident which the defeat of President Clinton in this year' s Presidential occurred on May 21, 1995, well before the assassination election. To accomplish this, they are working to de­ of Rabin. At that time, a left-wingmember of the Israeli stroy the Democratic Party from within, undermining Knesset (parliament) and member of Israeli cabinet, its viability. These treacherous pawns of the House of Shulamit Aloni, was physically attacked during a meet­ Windsor will do everything in their power to get rid ing of the American Jewish community which took of the LaRouche wing of the Democratic Party, which place in New York City. At issue was the Israeli peace stands in their way. policy, which was opposed by the ADL-led forces and A lesson to be learned from the defeat of the Israeli other conservative groups. Labor Party, is the danger of pulling one's punches­ The individual who brutally attacked Aloni, Jack R. whether in a combat situation or an election campaign. Avital, was a well-known leader of New York's Jewish Be it the nation of Israel or the Democratic Party in the community. After brutally hitting Aloni in the stomach, United States, there is no room for compromise when it A vital was allowed to lead a march of 30,000 Jews up comes to defeating British operations intended to de­ Fifth Avenue, along with the official Israeli delegation stroy one's nation.

80 National EIR June 14, 1996 SEE LAROUCHE ON CAB L E TV

Al l programs are The LaRouche Connection unless otherwise noted. ALASKA ILLINOIS NEW YORK .WEBSTER-G RC Ch. 12 • ANCHORAGE-ACTV Ch. 44 • CHICAGO-CATN Ch. 21 • ALBANY-Ch. 18 Wednesdays-9 :30 p.m. • Wednesdays-9 p.m. Schiller Hotline-2 1 Tuesdays-5 p.m. YONKERS-Ch. 37 , Fridays-6 p.m. • BRONX-BronxNet Ch. 70 Fndays-4 p.m. " ARIZONA • YORKTOWN-Ch. 34 • PHOENIX-Dimension Ch. 22 The LaRouche Connection Saturdays-6 p.m. • Thu rsdays-3 p.m. Thursdays-3 p.m. Tues., June 18-1 0 p.m. BROOKHAVEN (E. Suffolk) • SCOTISDALE-TCI Ch. 28 INDIANA TCI-Ch. 1 or Ch. 99 OREGON • Mondays-6 p.m. • INDIANAPOLlS-p.a. Ch. Wednesdays-5 p.m. PORTLAND-Access • BROOKLYN • TUCSON-Access American Cablevision Tuesdays-6 p.m. (Ch. 27) Mondays-5 pm (Ch. 61 ) Mon.-5:30 p.m, Fri.-l l p.m. Cablevision (BCAT)-Ch. 67 Thursdays-3 p.m. (Ch. 33) Tuesdays-l pm (Ch. 63) • SOUTH BEND-Ch. 31 Time-Warner B/Q-Ch. 34 TEXAS (call station for times) CALIFORNIA Thursdays-l 0 p.m. • AUSTIN-ACTV Ch. 10 & 16 • BUFFALO-BCAM Ch. 18 (call station for times) • E. SAN FERNANDO-Ch. 25 KENTUCKY Tuesdays-l l p.m. • • LOUISVILLE-TKR Ch. 18 DALLAS- A ccess Ch . 23 - B Saturdays-8:30 p.m. • HUDSON VALLEY-Ch . 6 • LANC.lPALM DALE-Ch. 3 Wednesdays-5 p.m. . Sun.-8 p.m.; Thurs.-9 p.m. 2nd Sunday monthly-l .30 p.m . • EL PASO-Paragon Sundays-l :30 p.m. Ch. 15 LOUISIANA • I LlON-TIW Ch. 10 Thursdays-l0:30 p.m. • MARIN COUNTY-Ch. 31 • NEW ORLEANS-Cox Ch. 8 Fndays-3 p.m. & 10 p.m. • Tuesdays-5 p.m. HOUSTON-PAC Mondays-l l p.m. .ITHACA-Pegasys-Ch. 57 Mon.-5 p.m.; Fri.-12 Noon • MODESTO-Access Ch. 5 . MARYLAND Mon. & Weds -8 .05 p.m. Fridays-3 p.m. : VIRGINIA • BALTI MORE-BCAC Ch. 42 Saturdays-4.35 p.m. Ch. 57 • ORANGE COUNTY- Ch. 3 · ARLINGTON-, ACT Ch 33 Mondays-9 p.m. • MANHATIAN-MNN Ch. 34 Fridays-evening Sun.-l pm; M0!1.-;-6:30 pm • BALTIMORE COUNTY- Sun., Jun. 23-9 a.m. • PASADENA-Ch. 56 Tuesdays-12 Midnight Comcast Cablevision-Ch.60 • MONTVALE/MAHWAH-Ch. 14 _ Tuesdays-2 & 6 p.m. Wednesdays-1 2 Noon · 2 n d T ues., monthl y- 9 p.m. W e d nes d ays-5'3. 0 p.m. • SACRAMENTO-Ch. 18 · CHESTERFIELD COUNTY- • MONTG OMERY-MCTV Ch. 49 • NASSAU-Ch. 25 2nd & 4th Weds.-l0 p.m. Comcast-Ch.6 Weds.-l pm; Fri.-8 :30 pm Last Fri., monthly-4:00 p.m. • SAN FRANCISCO-Ch. 53 Tuesdays-5 p.m. • PRINCE GEORGES COUNTY- • OSSINING-Continental Fridays-6:30 p.m. • FAIR FAX-FCAC Ch. 10 PGCTV Ch. 15 Southern Westchester Ch. 19 • SANTA ANA-Ch. 53 Tuesdays-1 2 Noon Thursdays-9 :30 p.m. Rockland County Ch. 26 . Tuesdays-6 :30 p.m. Thurs.-7 pm, Sat.-l0 am • WEST HOWARD COUNTY- 1st & 3rd Sundays-4 p.m. • STA. CLARITAlTUJUNGA • LOUDOUN COUNTY-Ch. 3 Comcast Cablevision-Ch. 6 • POUGHKEEPSIE-Ch. 28 King VideoCable-Ch. 20 Saturdays-9 p.m. Daily-l0:30 a.m. & 4:30 p.m. 1st & 2nd Fridays-4 :30 p.m. Wednesdays-7 :30 p.m. • MANASSAS-Jones Ch. • QUEENS-QPTV Ch. 56 64 • W. SAN FERNANDO-Ch. 27 MICHIGAN Saturdays-12 Noon (call station for times) Wednesdays-6 :30 p.m. • TRENTON-TCI Ch . 44 • RICHMOND-Conti Ch. 38 . • RIVERHEAD Wednesdays-2 .30 p.m. (call station for times) COLORADO Peconic Bay TV-Ch. 27 • ROANOKE-Cox Ch. 9 • DENVER-DCTV Ch. 57 MINNESOTA Thursdays-12 Midnight • Wednesdays-2 p.�. ·Sat.-4 p.m.; Mon.-6 p.m. EDEN PRAIRIE-Ch. 33 1st & 2nd Fridays-4 p.m. • YORKTOWN-Conti Ch. 38 CONNECTICUT Wed.-5:30 pm; Sun.-3 :30 pm • ROCHESTER-G RC Ch 15 • MINNEAPOLIS-MTN Ch. 32 Mondays-4 p.m • BETHEUDANBURY/RIDGEFIELD Fri.-l 1 p.m.; Sun.-l a.m. Fndays-7 :30 p.m. i Comcast-Ch. 23 • ROCKLAND-P A Ch 27 WASHINGTON • MINNEAPOLIS (NW Suburbs) • Wednesdays-l0 p.m. Wednesdays- : 0 p m. KING COUNTY-TCI Ch. 29 Northwest Comm. TV-Ch. 33 5 3 : • NEWTOWN/NEW MILFORD • SCHENECTADY-P.A. Ch. 11 Th u rsdays-l0 :30 a.m. Mon.-7 pm; Tues.-7 am, 2 pm • Charter-Ch.21 Mondays-l0 p.m. SNOHOMISH COUNTY • ST. LOUIS PARK-Ch. 33 Thursdays-9 :30 p.m. • STATE N ISL.-CTV Ch. 24 Viacom Cable-Ch. 29 Fnday through Monday a.m. (call station for times) DISTRICT OF COLUMBIA Wed.-l 1 p.m.; Sat.-8 3 p.m., 11 p.m., 7 a.m. • SUFFOLK, L.I.-Ch. 25 • SPOKANE-Cox Ch. 25 • WASHINGTON-DCTV Ch. 25 • ST. PAUL-Ch. 33 2nd & 4th Mondays-l 0 p.m. Tuesdays-6 p.m. Sundays-12 Noon Mondays-8 p.m. • SYRACUSE-Adelphia Ch. 3 • TRI-CITIES-TCI Ch. 13 IDAHO MISSOURI Fridays-4 p.m. Mon.-l l :30 am, Wed.-6 pm, • MOSCOW-Ch. 37 • ST. LOUIS-Ch. 22 • SYRACUSE (Suburbs) Thurs.-8:30 pm (Check Readerboard) Wednesdays-5 p.m, Time-Warner Cable-Ch, 12 WISCONSIN Saturdays-9 p.m. .WAUSAU-Ch. l0 • UTICA-Harron Ch. 3 (call station for times) Thursdays-6 :30 p.m. If you are interested in getting these programs on your local cable TV station, please call eharles Notley at (703) 777-9451, Ext. 322. For more information, VISit our Internet HomePage at http://www.axsamer.org/ -Iarouche

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