A TOTAt WAR STRATEGY AGAINST PEKING by Gen. Teng Chieh

IIAII we need do is to understand how to make the most of our strengths to attack the enemy's weaknesses. Then we can snatch victory out of the jaws of defeat. The Chinese Communist Party is extremely weak, just like a paper tiger-one poke and you �ould pierce it through. All the masses on the mainland are opposed to communism." -Gen. Teng Chieh

This amazing little book by one of the top leaders of Taiwan ' s Kuomintang party, published by Chinese Flag Monthly in December 1988, charted the course for the Ch inese students' revolution that erupted just a few months later. Preface by Lyndon H. LaRouche , Jr.

Exclusive U.S. distributor: $5.99 (plus $1.50 postage and Ben Franklin Booksellers handling for,first book, $.50 for 27 South King St. each additional book). Virginia Leesburg, VA 22075 residents add 4%% tax. (703) 777-3661 Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman From the Editor Managing Editors: John Sigerson and Susan Welsh Editorial Board: Warren Hamerman. Melvin Klenetsky. Antony Papert. Gerald Rose. Alan Salisbury. Edward Spannaus. Nancy Spannaus. Webster Tarpley. William Wertz. Carol White. Christopher White s usual, I'm going to make a few suggestions about how to read Science and Technology: Carol White A Special Services: Richard Freeman this issue. (I'll try to hold back on adjectives, but it's not easy _) Start Book Editor: Katherine Notley out on page 4 with Lyndon LaRouche's incisive comments on the Advertising Director: Marsha Freeman Circulation Manager: Joseph Jennings state of the economy, in a congressional candidate's statement he

INTELLIGENCE DIRECTORS: made from his prison cell, despite the severe impact made on his Africa: Mary Lalevee health by the mistreatment he is receiving in the Rochester federal Agriculture: Marcia Merry Asia: Linda de Hoyos penitentiary . Counterintelligence: Jeffrey Steinberg. I think you will want to compare that immediately with the report Paul Goldstein Economics: Christopher White starting on page 62, about the international outcry that is growing European Economics: William Engdahl. louder and louder over the incarceration of America's most famous Laurent Murawiec lbero-America: Robyn Quijano. Dennis Small political prisoner. Accompanying that is the news, as of Sept. 29, Law: Edward Spannaus of the treachery being committed against LaRouche's associate Mi­ Medicine: John Grauerholz. M.D. Middle East: Thierry Lalevee chael Billington in a Virginia trial. Soviet Union and Eastern Europe: Rachel Douglas. Konstantin George The core of the strategic situation is taken up on page 36 by Special Projects: Mark Burdman Gabriele Liebig from our Wiesbaden bureau, reporting on what Edu­ United States: Kathleen Klenetsky ard Shevardnadze said at the United Nations-unprecedented thug­ INTERNATIONAL BUREAUS: gery against our West German ally and against independence move­ Bangkok: Pakdee and Sophie Tanapura Bogota: Javier Almario ments in Eastern Europe. So committed are the major news media Bonn: George Gregory. Rainer Apel Copenhagen: Poul Rasmussen to promoting the mirage of glasnost, that as of this writing, the U_S. Houston: Harley Schlanger press has blacked out these portions of the Soviet foreign minister's Lima: Sara Madueiio Mexico City: Hugo LOpez Ochoa. Josefina tirade-a tirade for which the Wyoming talks clearly gave the green Menendez light (see also the articles on pages 58-61). Milan: Marco Fanini New Delhi: Susan Maitra TheFeature, with contributions by Carol White and Brian Lantz, Paris: Christine Bierre reveals some results of research for a forthcoming EIR book on Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio. Stefania Sacchi Satanism, its powerful sponsors and its present extent. The book Stockholm: Michael Ericson promises to be as history-making as the 1978 Dope, Inc- book-also Washington, D.C.: William Jones Wiesbaden: Goran Haglund written at LaRouche's suggestion-which fearlessly named the top sponsors of the drug scourge. In Science & Technology, we let the EIRfExecutive Intelligence Review (ISSN 0273--6314) is published weekly (50 issues) except for the second week experts speak out in defense of crucial technologies needed to protect of July and last week of December by EIR News Service and expand the food supply, under assault from the "Swampthing" Inc .. P.O. Box 17390. Washington. DC 20041-0390 (202) 457-8840 faction. European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH. Postfach 2308. Finally, as you read, I would urge you to act. Write to President Dotzheimerstrasse 166. 0-6200 Wiesbaden. Federal Republic of Gennany Barco in Bogota, Colombia, voicing your support for his war on Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. Michael Liebig drugs-let him know the legalizers here, as well as there, don't In Denmark: EIR. Rosenvaengets Aile 20. 2100 Copenhagen speak for the majority. Write to President Bush and demand freedom OE. Tel. (01) 42-15-00 In Muico: EIR. Francisco Dfaz Covarrubias 54 A-3 and justice for Lyndon LaRouche_ And get a friend to become a Colonia San Rafael. Mexico OF. Tel: 705-1295. subscriber to EIR_ The strongest weapon for the good is the truth, Japan subscription sales: O.T.O. Research Corporation. Takeuchi Bldg .• 1-34·12 Takatanobaba. ShIDJuku-Ku. Tokyo EIR. 160. Tel: (03) 208-7821. and you can't know the truth without reading

Copyright © 1989 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly . prohibited. Second-class postage paId at Washington D.C.. and at an additional mailing offices. 3 months-$125. 6 months-$225. I year-$396. Single issue-$IO Postmaster: Send all address changes to EIR. P.O. Box 17390. Washington. D.C. 20041-0390. TIillContents

Interviews Departments Economics

23 Theodore Labuza 14 Report from Bonn 4 'We need a crash now,' The president of the Califomia­ An 18-year wait to buy a car. says Lyndon LaRouche based Institute for Food The U;S. congressional candidate Technologies discusses food 54 From New Delhi and economist says we are locked irradiation technologies. Devi Lal brings his show to town. into an irreversible deflationary spiral. since the junk bond market 55 Dateline Mexico collapsed Sept. 15. Book Reviews Drug legalizers and casinos. 6 Brady Plan unravels as 26 Satan's helpers: Nazi 72 Editorial central banks bash the doctors in America Educating Americans. dollar Journey Into Madness. Medical A report from the IMF annual Torture and the Mind Controllers. meeting in Washington, D.C. by Gordon Thomas; A Father. a Science & Technology Son and the CIA. by Harvey 8 Brazil faces financial panic: Weinstein; and The Search for the 20 Jeremy Rifkin's crazies time to exercise Manchurian Candidate. the CIA attack your children's milk sovereignty! and Mind Control: The Secret The environmentalist. anti-people History of the Behavioral Sciences. crowd are hitting both the 10 Currency Rates by John Marks. consumers and producers of this vital food product. 11 Debt burden decimates real U.S. production 21 The facts on bovine growth hormone 12 Retail sales chains primed By Dr. Thomas Jukes. for disaster

23 Food irradiation would 15 Banking greatly benefit Latin Banking on debts. America An interview with Theodore 16 Agriculture Labuza. Moscow pulls Yeutter's strings.

17 Domestic Credit Real estate could go the way of junk.

18 Business Briefs •

Volume 16 Number 40, October 6, 1989

Feature International National

36 Moscow delivers 'pre-war' 58 Wyoming talks launch threat to West Germany open season on SDI Shevardnadze obviously cleared his Killing the Strategic Defense assault on our leading NATO ally, Initiative is the main target of with the Bush administration. Soviet strategy, no matter what kind of agreements are reached at 38 Dope, Inc. steps up its the bargaining table. assault on Colombia's Barco 60 CIA, KGB agree to bash Victims of the counterculture at a 1981 New York City U.S. allies demonstration calling for legalized dope. This was 41 Schiller Institute rallies The Rand Corporation in California no sociological phenomenon-it was deliberately hosted a most unusual meeting planned. defense of Lebanon at Paris between the intelligence services of meeting the superpowers. 26 Satan's helpers: Nazi Documentation: Greetings to the doctors in America conference from Lebanon's Prime 62 LaRouche still in mortal Carol White and Brian Lantz trace Minister Gen. Michel Aoun, and the history of the world intelligence messages sent by the participants to danger at Rochester services' experimentation with President Bush, Lyndon LaRouche, 'medical prison' thought control through mind­ and other notables. The outcry from elected officials, bending drugs. medical professionals, and other 44 Ukrainians seek to legalize leading citizens continues to pour into the Bush White House from 34 From MK-Ultra their church around the world. brainwashing to the Documentation: From a speech by American Family Solidamosc leader Adam Michnik. 64 Billington forced to stand Foundation trial with hostile lawyer Part I in a series: 30 years of 46 A Russian Orthodox 'nyet' A nationally known activist in the menticide. to Uniates LaRouche movement is deprived of his Sixth Amendment right to 47 Crisis not ended in Soviet counsel, in an incredible trial in Transcaucasus Virginia.

48 Mystery surrounds Niger 67 Eye on Washington air explosion Egypt presents Nile development plan. 49 Beijing leaders revert to true nature 68 Congressional Closeup

50 Federation for a 70 National News Democratic China sees models in de Gaulle, Solidarnosc

52 Afghanistan: Is there light at the end of the tunnel?

56 International Intelligence �TIillEconomics

'We need a crash now,' says Lyndon LaRouche

by John Sigerson

In a campaign statement issued Sept. 24, Lyndon LaRouche, • Behind the precariousness of U.S. financialmarkets is physical economist and candidate for U.S. Congress in Vir­ an industrial sector that is showing serious signs of [invento­ ginia's Tenth District, said that he has substantial points of ry] glut." agreement with an analysis of the teetering U.S. financial system appearing in that day's Washington Post. The analy­ Not one, but many crashes sis, authored by business page writer Eliot Janeway, declared "Mr. Janeway, of course," LaRouche commented, "ech­ that "the economy is drowning in debt," and cited the follow­ oes what I said earlier just a few days ago, concerning the ing reasons why: present crisis which broke out the weekend before this past • " 'Productive' bank loans to operating businesses are Friday [Sept. 22] , in the leveraged buyout/junk bond area. I falling, because banks are too nervous to lend except to the indicated that this crisis must not be viewed as an ordinary blue-chip companies .... This never happens when the stock market crisis, but as rather a general spiral of deflation economy is enjoying a vigorous expansion." which will produce many crises along its way--one, proba­ • "The reservoir of uninvested cash (which economists bly, although not certainly, in October, and certainly not refer to as idle 'liquidity') is enormous and growing rapidly." later, perhaps, than March. • "To deal with this sort of sagging economy, [pro-Nazi "I think there's an 80% chance we'll have a major finan­ economist John Maynard] Keynes prescribed government cial market crash type of crisis during October, probably spending. But this remedy won't work in today's debt-ridden plus or minus the tenth of that month," LaRouche predicted. economy ....Keynes never anticipated today's paradox, "That's about a 75-80% likelihood at this point; and if not as he would have seen it, of a high deficit at high interest then, certainly a 95% likelihood, by March. That's about the rates pumping purchasing power out of the economy. But way it stands now. contrary to the assurance of supply-siders, that's what's hap­ "But the essential thing to be emphasized is not the timing pening." of the crash; that's not the crucial thing, though it's a very • "Global 'hot money' is not only confusing the statistics important development. The crucial thing: We are now that relate capital to its productive uses, but it is adding to locked in to what is under present policy an irreversible, the instability of the already precarious U. S. banking sector. accelerating deflationarysp iral. Which means that the whole No one knows exactly how big this pot of fast-traveling thing is coming down. And Janeway has some very useful money is, but foreign-exchange transactions, now running in things to say on that subject. the trillions, dwarf measures of basic economic activity. . . . "I want to add to that, at this point, we need a crash, The banks are among the biggest gamblers in this global because there seems to be no other way of accomplishing overnight crapshoot. And they plan on hair-thin margins. If what is necessary. The American people have been stuck the Federal Reserve, and the central banks acting with it, into the idiocy of believing in the administra.tive services succeed in bringing down the exchange rate of the dollar, the economy orientation, and into an environmentalist orienta­ U.S. banks could lose $4 billion in a tick of the transaction tion, so-called, as opposed to the commitment to investment screen." in scientific and technologi�al improvement in goods-pro-

4 Economics EIR October 6, 1989 • duction, which was our policy prior to the second half of the 196Os. "Now, until we get rid of this insanity, which has domi­ nated the thinking of the United States for, now, about 20 years, and get back to the kind of economic policy thinking, say of the first halfof the 1960s, this country, and the world, is not going to make it. Until we understand that we must have a system in which loans flow preferentially to investment in physical goods-production and basic economic infrastruc­ ture , and less preferentially to speculative investments in real estate, finance and so forth , and that the basic rates-prime rates-for investment in the economy must be between 1% and 2% at the baseline, in order to have a healthy economy­ until we get back to that, we are not going to get out of this mess. "We are going into, presently, an economic New Dark Age like that of the middle of the fourteenth century," the candidate continued. "Until we come out of the nonsense which dominates, not only the thinking of Washington poli­ cymakers, but the thinking of a disoriented majority of the average citizens out there, until they are crushed, and crying for a return to the production of the food , the other necessar­ ies, and of the water systems, transportation, and so forth which they need to exist, to get us back to sanity, this country isn't going to make it, nor is most of the rest of the world. 'Therefore , it's a horrible price to pay, the Great Depres­ Lyndon H. LaRouche. Jr.. candidate for Cong ress from Virginia. sion now coming on; but we're going to pay it, until we come to our senses. Don't blame the people in Washington alone, or even the bankers in New York. Blame the majority of the for what they call "growth ," which is nothing but growth of American people, who have come to accept and put up with values based on leverage of usury ,.these nations are going to this nonsense, this belief in the post-industrial society, which be forced to the point-by sheer contraction of the physical is the root of our present problem." basis-that they will either chang, their ways or be de- stroyed. Moral economics "The thing to emphasize is, as I'v1 e said before , that the Drawing on his own breakthroughs in formulating the problem here lies not only at the top--not only with the "LaRouche-Riemann economic model" of physical econo­ people who will use, say, Milton Frie man, as an apologist­ my, LaRouche put the question of debt into its proper per­ but the problem lies with all those m ny citizens who accept spective. "What a high rate of usurious debt service does, is this post-industrial, usury, etc. moael: that many citizens ultimately to derive debt service from the value, the money accept those values implicitly, and that they are just as im­ value, of physical production to the point of actually lowering moral as the swine on top who are poing the looting. And purchases of physical production and thus discontinuing it's the little citizens, who believe this nonsense, who are physical production. The result is that the spiraling of debt going to get the kick in the head, just as well as the fe llows service and of leveraged capital values based on usurious on the top--even more so. And, as I've said earlier, they forms of debt service, depresses the economy, and ultimately must look into themselves, and realize that what they take as the shortage of available cash flowthrough physical produc­ common sense, is their immorality, and their acts of self­ tion as a source of additional debt service causes the balloon­ destruction. They would tend to reject our criticism, and say, ing effect, which causes the crisis. 'Well, look, you may believe that, !:lut I don't accept it, and "Now, it's on these grounds-for scientific as well as none of my friends would agree witli you. All of my friends moral reasons-that usury is outlawed as a practice in all would agree with me.' Well, they and all of their friends, on civilized, moral society. And in that sense, because the Unit­ this point, are being immoral. And i they can't change their ed States and its brother nations, and others, have become ideas, and cannot correct these fallacious ideas, then, to the usurious in their practice, and have heedlessly destroyed extent that their ideas are influential , then this society is going physical capacity of infrastructure, agriculture, and industry, to be crushed, and will continued t, be crushed, until they and physical distribution of goods, of course, in the search correct those fo olish ideas."

EIR October 6, 1989 Economics 5 IMF-World Bank Conference Report

Brady Plan unravels as central banks bash the dollar by Eric Rosso

As the International MonetaryFund ends its three-day annual about the process and theneed for balance," according to one meeting (Sept. 26-28) in Washington, it is clear that the U.S. participant. "We'll be damned if we're going to be jerked economy is inserious trouble and that one ofthe pillars ofthe around by these countries anymore," one senior banker com­ Bush economic policy-the Brady Plan for debt reduction­ mented. "I look at Venezuela and I get super-pissed," was stands on quicksand with nearly all the banks and govern­ another colorful comment. "It's the beginning of the end of ments. Moreover, thetwo showcase items of the Brady Plan, the Brady Plan," said a senior New York banker. the debt reduction agreement with Mexico and the assistance On Sept. 25 , Chase Manhattan chairman Willard Butcher plan to the Philippines, are tarnishingfas t. voiced doubts that Mexico would win as much new money The IMF meeting and the meeting of the Group of Seven from its banks as it needs. He ripped the "debt forgiveness" leading industrial nations, which immediately preceded it, element of the Brady scheme. "The siren call of debt forgive­ under the outward show of harmony, were characterized by ness will be paid for by an unavailability of new money," unheard-of volatility and acrimony. Reportedly, at onepoint said Butcher. "Debt forgiveness and new money are incom­ Treasury Secretary Nicholas Brady and West German Bun­ patible." He complained that the Brady Plan had created desbank President Karl-Otto Poehl clashed in public while "an increased expectation of debt reduction and decreased leaving a meeting of the Group of Seven. willingness to meet commitments" by debtors. Just a week The week began on a sour note for Treasury Secretary before, Chase Manhattan had, following Morgan's lead, sur­ Nicholas Brady when Lewis Preston, the chairman of J.P. prised the markets by boosting its loan loss reserves by $1.5 Morgan, announced that the bank was going to raise its loan billion to 46% of its LDC (least developed countries) debt. loss reserves on Third World debt by $2 billion to 100%, The real question broached was "Who's going to pay?" or as basically declaring that for every dollar lent to the developing one newspaper headline put it, "Whose Pound of Flesh?" sector, they would have to have a dollar added to their re­ "The banks must be prepared to bleed," said Deutsche Bank's serves. This was taken as a signal that Morgan was jettisoning chairman Alfred Herrhausen, a man with his own debt reduc­ its Third World debt, and would not be taking part in the tion plan. But the banks have clearly said, "Not us!" plan of the Treasury Secretary to reduce the debt of these President Bush tried to come to hisTreasury Secretary's countries. assistance by holding a White House reception for two dozen The Brady Plan, which had been somewhat tentatively chairmen of the world's largest non-American banks on the launched earlier this year, was premised on the idea that first day of the IMF meeting. There, he was to "strongly the commercial banks, the holders of the Third World debt, endorse just how badly he feels the Brady Plan is needed." would be willing to accept a significantreduction of the debt But the European and Japanese bankers, although somewhat on their books at the same time that they would lend new less exposed in LDC debt than their American counterparts, money to the debtor countries in order to assist them in imple­ were not especially enamored of the Brady proposal. One menting their IMF-ordered austerity programs. Although the LDC specialist commented that Brady was "offering forgive­ plan envisioned a major role for the IMF, it was contingent ness on obligations which he doesn't own." Their objections on the willingness of the banks to accept a loss on the book centered on the attempt by the government to pressure the value of their debt. But . . . commercial bankers on the issue of debt reduction, and the refusal of the IMF to agree to a reductiondebt of the develop­ 'Beginning of the end' ing sector to the IMF. On Friday, Sept. 22, Brady and Federal Reserve chair­ Among the Germans, Commerzbank chairman Walter man Alan Greenspan had a two-hour luncheon with a battery Seipp noted that "symmetry of sacrifice"was lacking, saying of bank executive officersto rally their support. The luncheon he believed "the IMF and the World Bank should share in turned into a free-for-all with "some yelling and screaming debt reduction," and Hypobank chairman Eberhard Otto

6 Economics EIR October 6, 1989 Martini said there could only be equality of interest between down the value of the overinflated U.S. dollar. This was lenders and debtors if there were "no pressure from the gov­ in accordance with decisions taken at the Group of Seven ernmental side." Commerzbank is said to be studying the meeting, where Brady and Greenspan apparently were criti­ Mexican agreement closely, but Seipp indicated that new cized for their attempts tomaintain advantageous interest rate money was hardly likely to be given to Mexico. differentials, helping to keep the dollar high. The U.S. was British Chancellor of the Exchequer Nigel Lawson proba­ also cited as a major cause of "disequilibrium." The commu­ bly expressed the views of U.K. bankers most succinctly nique issued after the G-7 weekend meeting emphasized that when he said in a press conference on Sept. 27, that he didn't the dollar had risen to levels "inconsistent with longer run think it would be useful to "twist the arms of the commercial economic fundamentals" and that a rise of the dollar above bankers." current levels or an "excessive" decline could "adversely Later in the week, when President Bush gave his speech affectprospects for the world economy. " The U. S. was also to the IMF plenary session, he returnedto the need for com­ urged to meet the Gramm-Rudman deficittarg ets. mercial bank support of the Brady Plan. "Commercial banks On Monday, Sept. 25, a concerted effort by the central have a special role in making this process work and must banks of the industrialized countries in Asia and Europe be­ follow through on efforts made with Mexico and the Philip­ gan to push down the value of the dollar. It fe ll during five pines, and broaden their efforts with other countries." A consecutive days of central bank intervention, meeting con­ similar appeal was made later in the meeting by IMF Manag­ siderable market resistance. The undecided question is ing Director Michel Camdessus, which elicited the caustic whether the dollar will keep its low value without the contin­ comment from Lloyd's Bank chairman Sir Jeremy Morse, ued intervention of the central banks. If the dollar maintains that "sometimes we object to being lectured." its buoyancy on the internationalmarkets in spite of the inter­ ventions, it is suspected that the West Germans or the Japa­ Japan demurs nese will be forced to raise their interest rates as an alternative Even the Japanese, long the most loyal supporters of the to continued intervention. If this were to occur, there could United States in monetary questions, were not so forthcom­ be a flight of capital from the United States to the higher ing with their support-but for differentreason s. The Japa­ interest rates and a subsequent, perhaps permanent, collapse nese, who would like to double IMF quotas and thereby their of the U.S. dollar-a development which could cause insu­ influence in the IMF, were expecting the U.S. to back their perable difficultiesfor the Federal Reserve. demands. A doubling of the Fund's quota would make Japan The fall in the dollar helped precipitate a fall in pound the Fund's second-largest donor. This has been opposed by sterling, in spite of efforts of the Bank of England to support the British, who now occupy the number-two spot and by the their currency. The fall in the pound may also require a IMF bureaucracy. The United States has been the biggest raising of the interest rates in Great Britain. Events subse­ opponent of quota increases for domestic fiscal reasons, quent to the very rancorous G-7 and IMF meetings could which annoys the Japanese. At a joint press conference on serve rather quickly to plunge the world into a full-blown Sept. 26, the Japanese Finance Minister Ryutaro Hashimoto depression. and Bank of Japan Governor Satoshi Sumita warned that Brazilian Finance Minister Mailson de Nobrega warned disappointment over Japan's effort to raise its IMF quota early in the week that if international bankers didn't show could have an adverse impact on the willingness of Japanese more "comprehension" of the problems facing Brazil, they politicians to give increased financial support to the Brady could be faced in the coming elections with "the taking of Plan. Other Japanese said simply that they feel the U.S. has power by radical groups," groups perhaps less interested in stabbed them in the back. coming to terms with the IMF conditionalities (see page 8). The growingopposition to the Brady Plan is also in under­ The sub-Saharan countries of Africa were put on notice by mining the deals touted as the Brady Plan's "successes," the Managing Director Michel Camdessus that there would the Mexican deal and the arrangement with the Philippines. be no let-up for them of the murderous IMF austerity policies, When senior Mexican officialsheld a meeting with 250 bank­ policies which, he insisted, they must learn to live with. ers to present their country's debt-term sheet on Sept. 26, However things may unfold, the world has entered a new they met with a deafening silence. One British banker bravely phase of economic disorder. The failure of the IMF to attain asked what the consequences would be if there were insuffi­ a quota increase will cripple their efforts to keep the bankrupt cient collateral . Sir Kit McMahon, chairman of Midland monetary system afloat. The collapse of the Brady Plan will Bank, one of Mexico's major U.K. creditors, said "It's not mean that Third World countries, if they are to survive, will in our minds to start lending again to Mexico." have to start taking matters into their own hands. And the manner in which the Bush administration has succeeded in Bring down the dollar alienating almost all its allies, indicates that the U. S. econo­ The three-day IMF meeting also saw the start of major my will be subject to a battering the likes of which it has not moves by the industrialized sector's central banks to bring yet seen.

EIR October 6, 1989 Economics 7 Brazil faces financial panic: time to exercise sovereignty! by Lorenzo Carrasco

Finance Minister Mailson da N6brega's appeal for mercy to significant cost to the National Treasury, of course-con­ Brazil's creditor banks during his presentation to the Council sumption would be constrained, dollar speculation on the on Foreign Relations in New York Sept. 22, confirms how black market would cease, and consequently, inflationary out of touch with reality he is regarding the international pressures would lessen. But reality ignored such monetarist economic situation, on the verge of the worst crash in recent prescriptions, and precisely the opposite occurred. Even in history. The September deal to suspend interest payments the very first month of the Summer Plan, inflation reached that the country struck with the private banks is a measure 6%, triggering a new inflationary wave, this time more accel­ which, while necessary, is by itself inadequate to contain the erated than previously. Three months later, in June, inflation imminent threat of a hyperinflationary explosion. What is reached 24%. necessary is that the Samey government, even with only At that point, Minister da N6brega still clung to his illu­ six months left to govern, take immediate and sovereign sions, ordering a new interest rate hike again intended to measures to halt the continued bloodletting of the nation's "contain inflation," at least long enough to reach the Nov. wealth, to the benefit of international usury which has no 15 elections. But these calculations too flopped: Inflation in national allegiance and respects no borders. August was 32%, in September 35%, and predictions for Under the current monetarist presumptions which guide October are hitting 40%. public financesin Brazil, the economic team headed by Min­ The explanation for this failure is both obvious and ele­ ister da N6brega has nothing leftto offer in trying to halt the mentary. Interest rates primarily influencethe internal debt­ explosive internal situation. To insist on the current policy in particular, the debt in federal, state, and municipal bonds. of high interest rates as an anti-inflationstrategy is like trying The bulk of the internal debt, which is largely short-term, to put out a fire with high-octane gasoline. Consumed by the turns overdaily on the speculative overnight markets. flames of unrestrained hyperinflation, the country would lose Given this fact, the worst of all possible scenarios occur­ what remnants of political stability it is presently clinging to , red: High interest rates diverted resources from the produc­ and its presidential elections of Nov. 15 would be seriously tive sectors of the economy while inflation rates shrunk endangered. Perhaps this is the intended blackmail of the wages. This process ended up enriching that 2% ofthe Brazil­ bankers and speculators , to force the country to reinitiate ians who invest in the overnight market and, with the fabu­ interest payments on the foreign debt. lous profits that market has yielded in recent months, unleashed an unprecedented wave of consumerism. A Schachtian illusion During June, July, and August, the National Treasury Until now , Minister da N6brega--encouragedby former paid out in interest on its bonds the equivalent of $5 billion, ministers Delfim Netto, Ernane Galveas, and Mario Hen­ representing 1 % of the GNP. In August alone, with a real rique Simonsen-has believed that a policy of high interest interest rate of 4.5%, $2.6 billion was paid out. It is conserva­ rates, like that imposed by German Economics Minister tively estimated that by the end of 1989, the Treasury will Hjalmar Schacht during the early years of Adolf Hitler, could have disbursed $16 billion in interest on government paper be the solution for ke�ping monthly inflation rates under alone. This means that to tum over $50 billion in bonds­ control. Based on this premise, the government launched the equivalent to 12.5% of the GNP-the government will be so-called "Summer Plan" in early 1989 with an interest rate paying 4.5% of the GNP! shock. As can be seen in Figure I-showing the real interest To give some idea of the speed with which these Treasury rates above inflation that the government offered its bond obligations are growing, one need only look at the first six holders-the Central Bank suddenly raised the real interest months of the year during which these payments increased rate to 13.51 % in March, precisely when it was believed that 39. 1 % over the same period of 1988. Already by August, all economic prices were frozen or stable. the real increase was 89.8% with regard to the government's The arguments of the monetarist horde rest upon the accumulated costs of the first seven months of 1988. claim that if interest rates well above inflation are paid-at The way the Treasury has managed to meet payment on

8 Economics EIR October 6, 1989 these interest charges is through another insane maneuver­ coming up in the next few weeks, with inflation threatening the issuance of more notes and bonds-which is obviously to reach 40%, and the nominal overnight interest rates sur­ having repercussions in the form of an increased volume of passing 50% a month. internal indebtedness. The most serious aspect of this infernal process is that in This process can be seen in Figure 2. The public sector's just a few short months, it has managed to produce a massive liquid debt-which is the sum of the foreign and internal transfer of resources fromthe productive sectors to the specu­ debts-is increasing due to the growth of the internal debt. lative financialsectors . The aggregate of wages this year will In the first trimester of 1989 alone, this rose 35.6% with fall from 38% of the GNP to 32%; a 6% loss with respect to respect to finalresults of last year. In this we can observe a last year, according to the labor minister himself. phase change. For the firsttime , the internal debt-at $92.1 This demonstrates why a mere suspension of interest pay­ billion-surpasses the volume of the public sector's foreign ments on the foreign debt, and the accumulation of foreign debt, a tendency which can only worsen. Until now, the exchange reserves to avoid an exchange crisis such as that internal debthad been growing in proportion to interest pay­ which toppled Argentina's Raul Alfonsin, is insufficient to ments on the foreign debt, since to honor its foreign debt avoid a hyperinflationaryexplosion . If the governmentinsi sts obligations, the governmenthas bought dollars from export­ on raising the real interest rate with the argument that this ers by issuing treasury notes and bonds. However, the cumu­ will "cool out" the consumerist wave that it itself triggered lative volume of internal debthas become a cancer that has by offering outrageous profits on the overnightmarket, it will begun to metastasize. only be creating conditions of political instabilty and social One limit to this process is the government's increasing injustice that could lead to outbreaks worse than those recent- difficulty in findingbuyers for its notes, despite the granting 1y witnessed in Argentina and Venezuela. of ever greater discounts in the auctions of its Financial Trea­ sury Bonds (LFTs). One test of fire will be the LFT auctions

FIGURE 2 FIGURE 1 Public sector liquid debt in Brazil Real interest rates for Brazilian 180 treasury bonds (LFTs) (inflation-adjusted rates)

14 160

12

10 140

8 1? .!!l 120 6 '15 "0 i '0 4 U) ! r::: GI 100 1ii ,g ... 2 :s , §. 0 � 80

-2

-4 60

-6

40 -8 O�----'------r----�-----'----�r-

1986 1987 1988 1989 1985 1986 1987 1988 1989

Source: Central Bank of Brazil. Source: Central Bank of Brazil.

EIR October 6, 1989 Economics 9 The solution: a shock of sovereignty The dynamic of the crisis itself shows, albeit negatively, Currency Rates what solution must be sought. As we can see, the country is channeling some $16 billion into speculative investments The dollar in deutschemarks this year. The solution is simple: to direct the flow of these New York late afternoon fixin� resources instead into productive investments in real eco­ nomic infrastructure, as was described by economist Lyndon 2.00 EIR LaRouche in of Sept. 8, and extensively detailed in his � � Ii-/' ..... ""iiiiOr--.... Operation Juarez proposal. 1.90 r .... The government should drastically reform the national financial and banking system, with the primary purpose of 1.80 isolating government paper, which must then be protected from the speculative oscillations of the markets and exchange 1.70 rates of foreign currencies. Immediately, the government 1.60 should propose an arrangement with its treasury bond hold­ 819 8/16 8/23 8/� 9/6 9/13 9/20 9/27 ers, to set a date after which the accumulation of interest is suspended. With the backing of the national Congress, the The dollar in yen government has the prerogative of buying back these bonds New York late afternoon fixin� with new debt instruments, setting fixed interest rates and longer repayment deadlines. ISO - -- This task would be simpler than it appears, since 80% of ..... '-"""" 140 � - � the market for government paperis concentrated in the hands I"'" of private banks, non-financialcompa nies, and financialbro­ 130 kers, who should understand that this is the only possible­ not to mention patriotic-way out of the current crisis. 120 These new governmentdebt instruments could be viewed by the companies as discountable assets. This is especially 110 important for those private companies which, because of the 8/9 8116 8/23 8/30 9/6 9/13 9/20 9/27 current characteristics of the financial markets, protect their The British pound in dollars operating capital from the ravages of inflation by keeping New York late afternoon fixing them on the overnightmarket s. Thus, for example, Mercedes Benz which currently turnsover several million dollars a day 1.90 on the overnight market, would be able to discount the new bonds once it is demonstrated that the money would be invest­ 1.80 ed in the company's own expansion. For this new system to function, it is clear that the Central 1.70 Bank, which until now has functioned as an agent of private 1.60I-\. creditor interests-both domestic and foreign-and not as - � - � .- an agent of the National Treasury, must be re-nationalized. ....� - 1.50 " .... - As part of this reorganization, the country must reestablish a 8/9 8/16 8123 8/30 9/6 9/13 9/20 9/27 system of issuing credit based on gold reserves, which would restore confidence in, and independence to, credit destined The dollar in Swiss francs for productive use. This measure would also increase the New York late afternoon fixing value of gold production; most gold stocks today are fleeing the country as contraband under the auspices of powerful 1.80 international groups. 1.70 - .-. If these measures were to be backed up by a Supreme - - "..." Court review of the constitutionality of the country's foreign r--'w "" 1.60 V debt contracts with the international banks, as was recently proposed by members of the national congress's Mixed Com­ I.SO mission to Audit the Debt, this would constitute the necessary "shock of sovereignty" to enable the country to keep its dis­ 1.40 tance from the rapidly approaching international financial 819 8/16 8/23 8/30 9/6 9/13 9/20 9/27 crash.

10 Economics EIR October 6, 1989 go down in the record books as the worst ever for the oilfield service industry-worse than '86 or '87." J. Steven Larkin, executive vice president of the Houston-based Petroleum Equipment Suppliers Association, expects bad times to con­ Debt burden decimates tinue. "Everybody agrees that at some point this market will tum around. But I'll bet you can't find anybody that will real U.S. production hazard a guess when that point will be." Larkin said that 60% or more of the oilfield service industry's sales originate overseas, as the drilling rig count for the U.S. continues to by Richard Freeman hover around 900, compared to tlu! average of close to 2,500 rigs working each day from 1977 to 1986. The National Association for Manufacturing Technology, formerly known as the National Machine Tool Builders As­ Declining trade sociation, has announced that orders for U. S. -made machine The industrial contraction skewered trade. Imports of tools, at $226 million for August, were down 33% from the industrial supplies and capital goods fell sharply in both June level of August 1988. The "spin-masters" of the media and and July. As a result, total imports shrank by 2.5% in July, the machine tool association tried to make the data look good to $38.3 billion, after a 3.1 % drop in June. Outgoing ship­ by noting that machine tool orders had at least risen from the ments of manufactured goods also declined in July, combin­ previous month of July's level. ing with lower agricultural exports to lower U.S. exports to Machine tools are the machines that produce other ma­ $30.7 billion in July. The U.S. trade deficit "fell" to $7.6 chines, the most critical sector of the economy, upon which billion in July. The government crowed over this "smaller" economic expansion and capital formation are based. Hence, amount, a deficit still larger than most countries run in a year. while the machine tool sector is minuscule-at $3.0 billion But not only will this deficitnot stay long below $10 billion a in annual sales it is but .06% of Gross National Product-its month, this "trade turnaround" comes fromfal ling industrial contraction gives a direct reading of how the usurious debt activity. bubble leeches out life from the economy. Finally, the labor force cannot buy basic necessities, like As EIR reported in our Sept. 8 issue, the total debt of houses and cars. Housing statistics released in September U.S. business swelled nearly fivefoldin 16 years, from about showed that housing starts, after rising 7.4% in June and $1 trillion in 1973 to $4.85 trillion in the firstquarter of 1989. 1.3% in July, fell back 5% in August to 1.35 million starts Though officialfigures cannot be obtained, a best estimate is on an annualized basis. For the first eight months of 1988, that .the annual interest service charge on this debt rose, for new home production is 11% below 1988 levels-which are business, from close to $85 billion in 1973 to $450 billion in 10% below 1987's. Real unemployment in the construction the firstquarter of 1989. industry lingers at 20-25%. Auto dealers discounted heavily The U.S. Department of Commerce does publish a fig­ to get rid of 1989 models. In August, autos sold at a 8.3 ure, from its internal sources, that nets out the difference million annualized rate. But in September, the minute the between what business pays out on its borrowings over what discounts were taken off, sales fell to a 7 million annualized it earnson its holdings. This "net interest" in 1973 was $22.5 level. Production usually closely follows sales. billion; by 1987, the last year for which figuresare published, For the whole U.S. economy, inventories of unsold it had grown to $98.6 billion. What is startling is the compari­ goods are piling up. In July, the ratio of inventories to sales son of the net interest a corporation paid and its retained rose to 1.54, a 2 and a half year high, before easing off in earnings or retained profits. In 1973, business retained earn­ August. Even this depressed level of consumer production ings were 158% the size of net interest; in 1987, only 28%. wholly depends on credit. Consumer borrowing, represent­ Thus in 1973, there were $1. 58 in retained profits for each ed by consumer installment credit, rose $2-5 billion per mon­ dollar a business paid in net interest; in 1987, only 28¢ in th between February and June. In July, consumers paid off retained profits were available to cover every dollar cost in $280 million more than they borrowed, and the shock wave net interest. The resulting cash squeeze shows up partly in of collapse in the physical economy amplified. In August, a the slash in real capital formation. brief respite occurred; consumers borrowed again, but the The oilfield service industry, which is a gauge of all U. S. economy still went downward. energy production, has also been devastated. Out of 106 But as consumer borrowing buys less and less, and as publicly held oilfield service firms operating in 1981, at the credit costs more and more, consumers will borrow less. height of the oil-drilling boom, 42 have been liquidated, At this point, several retail stores, already on the verge of sold, or have discontinued oilfieldservice-related operations. bankruptcy, shut down, more construction companies fold, Matthew R. Simmons, president of the Houston consulting and the shock front in the physical economy takes over to the firm, Simmons and Co. International, said that 1989 "will extent that the U.S. economy closes in on itself.

EIR October 6, 1989 Economics 11 had provided in July 1988, for Campeau's leveraged takeover of Federated Department Stores. Campeau's difficulties underline the fact that the largestcomponent of HLTs are not the junk bonds, but short- and medium-term loans, provided by money center banks and investment houses, such as Man­ ufacturers Hanover, CS First Boston, and Citibank.

Finance runs wild Until the Campeau default sparked the junk bond col­ Retail sales chains lapse, banks and investment houses were willing to extend financing for HLTs, no matter how shaky the junk deal primed for disaster appeared, because they were guaranteed an up-frontfee for simply arranging the financing. In fact, Morgan Stanley is now in court, attempting to collect fees from John B. Cole­ by Anthony K. Wikrent man and Co. for merely intending to arrange a financing package. In the case of Campeau, CS First Boston may have The problems with Campeau Canadian corp. , the retail store taken a major hit in the bonds: it holds, which are now selling empire built on junk bond financing, are just a foretaste of for one-quarter of their face value, but collected over $200 what is to come for the entire retail trade and its suppliers, million in fees as Campeau's adviser and underwriter. As an ongoing analysis by EIR shows. the Wall Street Journalput it modestly, Campeau Canadian EIR has compiled a list of over 50 companies with financ­ Corp. was "First Boston's most lucrative client of the ing structures based on junk bonds and junk loans. Of these, decade." 12 companies are in the retail trade , and account for well over But financingis only a service to a company, and should one-tenth of the nation's total retail sales. The list includes the not become the basis of its entireopera tions. Once a company nation's two largest grocery chains, Safeway and Kroger, is forced to carry the levels of debt that are routine in HLTs, the two largest convenience store chains, 7 -Eleven and Circle the orientation of the management is shaped by the need to K, and the company that operates the largest department store meet the demands of the company's creditors, rather than its in the world, R.H. Macy and Corp. Campeau's Corp. 's two clients. In a book being privately circulated on Capitol Hill, department store chains in the United States-Allied Stores entitled The Japan That Can Say No-TheNew U.S.lJapan and Federated Deptartment Stores-are also on the list. Relations Card, Akio Morita, the highly respected founder Taken together, in 1987 the 12 companies on our list of Japan's premier consumer electronics firm, Sony, warns accounted for 12.8% of total retail sales, and fivecompanies that the function of money "should not be to enrich banks and on the list accounted for 16.3% of all retail food sales. EIR securities companies, but to smooth the path of production." is also studying the financial posture of Sears Roebuck to A former vice president of Allied Department Stores, determine if it should be added to the list, which would boost Herbert Wittkin, says the same thing. "The important part of the list's share of total U.S. retail sales to nearly 20%. a business is products and service," Wittkin stresses. "But The essential problem is that these companies are being what's happened is, the supportside of the business has taken crushed under a gigantic load of debt. In many instances, the over. The banks have made debt fashionable. They have company's interest expenses exceed its operating income. made a workable, sensible, attractive approach out of This was the case for Campeau's Allied chain, where the cost lunacy!" of servicing the debt in 1988 exceeded operating income of Other companies in trouble have not been bought out, $192.5 million, by $58.8 million. Almost all the companies but have taken on large debts to make themselves less attrac­ on our list have interest expenses that are 70-80% of operating tive as takeover targets, such as the nation's second largest income, if not more. supermarket chain, Kroger. In 1988, the largest HLT special­ These unstable financingstructures are the result of what ist firm, Kohlberg, Kravis and Roberts, moved in on Kroger. the financial wizards call "highly leveraged transactions" KKR had already pirated off with the nation's largest chain, (HLTs), more popularly known as leveraged buy-outs. A Safeway, in August 1986 by means of a $5.336 billion HLT. major component of HLTs are the notorious junk bonds­ Safeway's debt had rocketed upward overnight,and the chain low-grade , high-risk bonds yielding high interest rates to the lost more money in the last 17 weeks of 1986 than it had investor. The entire junk bond market for which began to made in the first35 weeks of that year, before KKR had taken blow out on Sept. 13, when it became known that Campeau control. Kroger's management, understandably, had no de­ would be unable to meet a $40 1 million loan repayment to sire to have their company suffer Safeway's fate , and in First Boston Corp. on Sept. 15. The loan repayment was for October 1988 it fought back by quadrupling the company's the unpaid portion of a $1. 15 billion bridge loan First Boston long-term debt, from $986.8 million, to $4 .725 billion,

12 Economics EIR October 6, 1989 smashing Kroger's net worth from $1.134 billion to negative erated will go into an intense promotional mode, take a huge $2.679 billion. Now Kroger is selling offparts of its opera­ markdown, and try to blow all the merchandise out the door tions in an attempt to buy down its unmanageable debt. as soon as it comes in, to raise the cash right away they need to guarantee their purchases of merchandise for Christmas. Big companies in big trouble And this is a terrible concern for the other retailers." Thus, The two largest convenience store chains, 7-Eleven and leveraged retailers already operating with razor thin profit Circle K, are also choking on debt. Southland Corp., the margins may find themselves hurled into a price war that operator and franchisor of 7-Eleven and half-owner of Citgo could sink them in red ink, and replicate the Campeaudefault Petroleum, is in particularly bad shape, even with annual dozens of times over. sales approaching $8 billion. In December 1987 Southland But even without the "last straw" of such a price war, was bought up by JT Acquisition Corp., a front for the retailers are now facing a collapse in Americans' discretion­ Thompson family. Interest expenses have leaped from $75 .2 ary income. Recent statistics show that retail inventories are million in 1986, to almost $200 million, while operating beginning to bloat, as consumers back off from assuming income has dropped from $319 million to around $200 mil­ new debt obligations. Elliot Janeway authored major signal lion. The result: Whereas Southland posted a net income of pieces in the Washington Post on Sept. 24, entitled "A Defla­ $200.4 million in 1986, it posted a $149.7 million loss in tion Wave? Awash in Money, the Economy is Drowning in 1987, and a $216.2 million loss in 1988. Debt," and in the New York Times Sept. 17, entitled "The And then there's the flagshipof department stores, Ma­ Inventory Mess-Caution: A Price DeflationIs Under Way." cy's, whose Herald Square store in New York City is the Collapsing sales in Long Island, for example, is what has largest in the world. The parent company, R.H. Macy and caused KKR's Seaman's Furniture, the nation's second Co. , which does business in New Jersey, Georgia, and Cali­ largest furniture retailer, to run into debt difficulty. And the fornia as well, acquired Macy's in a buy-out in July 1986, owner of a Boston area office furniture company told the dumping over $2 billion in debt on the retailer. While opera­ Boston Globe on Sept. 23, "Activity is slow and slower, the ting income has increased over one-fifth, based on steadily worst that I've seen in my 17 years in the business." rising sales, interest expenses have increased fivefold. The result: Net income of $189.3 million in 1985 and $205 .6 Effectof blowing out one-fifth of retail million in 1986, has been replaced by a net loss of $13.8 Because the effects of the economic collapse in physical million in 1987. production have been papered over by floating layer after But the largest detonator could very well be the largest layer of debt, we have now reached the point where the retailer: Sears Roebuck, with total revenues of $50.25 1 bil­ failure of one company in the retail sector will initiate a chain lion, of which $30.256 billion are from its 824 retail outlets reaction of failures among other companies burdened with and 2,303 catalogue offices, is now consuming over half its excessive debt, and working with operating income to debt operating income for debt service. Officials at Sears refuse service ratios considered disastrous 20 years ago. to comment, but a retail trade analyst said that Sears over­ Think of it this way: One-tenth to one-fifthof the nation's stretched itself in its purchases of Dean Witter Reynolds and distribution chain to the consumer is about to be blasted into Coldwell Banker. Sears has already begun to spin off parts financialoblivion . This is the system that distributes the very of its subsidiaries; in January it sold offits All State insurance basic necessities of sustaining human existence--clothing group. and food. If a 1929-30-style chain of collapse were to hit the retail sector, the disruption in distribution of food and Trigger for deflationary collapse? clothing would begin to approximate that of a low-level nu­ The financial wizards who have created this lunacy are clear war. And then there would the shock effect on unem­ heaving sighs of relief, since Olympia and York, the Canadi­ ployment, where an industry with a highly disproportionate an hot money real estate operation of the Reichmann broth­ share of the workforce, compared to physical production, ers, came to Campeau's rescue on Sept. 18 with an emergen­ would be shut down, laying off hundreds of thousands of cy infusion of $250 million, calming the raging storm in workers . Just imagine every 7-Eleven across the country the junk bond market. But retail analysts who are trying to shutting its doors . The shock effect, both economically and calculate the toxicity of the fallout, are terrified that some­ psychologically, would make the 1930s Great Depression thing much worse may have been set into motion. The Olym­ seem like a fairy tale of prosperity. pia and York bailout will only meet Campeau's immediate Sound outlandish? Consider this: The week when Olym­ debt obligations, particularly to its suppliers, which does pia and York moved in with $250 million to bail out Cam­ little to ensure that Allied and Federated will be able to order peau, it suddenly cut off negotiations to buy out a prime piece more merchandise, as little as a month from now. of real estate in Chicago for $1 billion. The seller was Sears, 'There is only one answer," according to Kurt Barnard, and it was trying to sell its corporate headquarters, Sears ofthe BarnardRetail Marketing Newsletter. "Allied and Fed- Tower.

EIR October 6, 1989 Economics 13 Report from Bonn by Rainer Apel

An IS-year wait to buy a car tomobiles produced in the G.D.R. He East German refugees tell why they escapedfrom the Communist had ord�red his new car in late 1973, and finally received it in 1989! system, where basic necessities are unavailable. This is only part of the problem; the roads are in such bad condition, that professional drivers may ruin the shock absorbers of their cars within By the end of September, more than ports, so if the harvest is bad, nothing half a year. Getting new shocks is no 30,000 refugees from Communist will be done to improve the situation. easy operation. To take the car to a East Germany had arrived in West There are food imports, but these repair shop is a risk, because it may Germany. From the end of May are used as "cash crops" for re-export take weeks or months to get it back. through the first days of September, to third countries, to bring in hard for­ But at least the licensed auto shop can when the Hungarian governmentlifted eign currencies. A refugee of about 30 get a supply of shock absorbers­ border controls for the transit to Aus­ years of age, who formerly worked as eventually. tria, some 5,000 such refugees, and a sailor for the East German merchant But as a private person, one has to after the opening of the borders, more marine, reported the following: "We go to the black market for spare parts. than 25,000 took the escape route to picked up a lot of bananas, mainly As the cab driver reported, he got an the West. from Ecuador, but also from other essential part for his brake system The refugees are fleeing from a countries. These were shipped to Ber­ from one of the Polish "tourists" enter­ worsening political situation and a lin, part of the cargo also to Prague or ing East Germany with a store of spare collapse of large sections of the econ­ Budapest. But in our own stores, you parts-but he had to pay seven times omy in the German Democratic Re­ would never find bananas, and if at the usual price for it. public (G.D.R.). Although East Ger­ all, a kilogram would cost around 5 The Pole may very well have got­ many is one of the 12 largest industri­ [G.D.R.J marks ." ten the part from a licensed import al economies in the world, the situa­ In West Germany, a kilogram of store in Poland. An underground mar­ tion there is very reminiscent of what bananas from Ecuador would cost ket for spare parts of all sorts exists in one would find in a Third World 1 .99 deutschemarks. The price differ­ Eastern Europe. It is also used by country. ence is even larger, if one compares many industrial companies in the EIR talked to refugees who had just the 900- 1,000 G.D.R. marks net in­ G.D.R., which otherwise would not arrived in West Germany and are come an East German worker earns be able to produce, because the suppl­ lodged in one of the various temporary per month, to the DM 1,500 net in­ ies are not available in the official five­ encampments set up all over the coun­ come of a worker in West Germany. year-plan system. try . It becomes clear that the economic The ex-sa ilor said that most of the Except for the military-related and political reasons for their emigra­ imported goods are not used to supply sectors of the economy which supply tion go together; the system of political the G.D.R. population, but end up in the Soviet military machine, the rul­ repression and economic undersupply West German food stores. "The fruit ing Socialist Unity Party (SED) shows is one and the same. cans you see in your stores-I am sure no intention of improving the situ­ A young woman of 23 years, who they are from us," he said. ation. had worked in a grocery store in the It is the same with furniture. Many Eventhe private belongings which city of Goerlitz, said she grew tired of West German homes are filled with the refugees left behind serve the "standing in a store where there was chairs, tables, beds, and shelves from SED's "economy." Since a refugee is almost nothing to sell." There were IKEA-manufactured in the G.D.R., a "criminal" under the G.D.R. penal "apples, but no bananas, maybe some the raw material coming from Fin­ code, his belongings fall to the state cherries ...mostly cabbage, carrots , land. In East Germany, people have and are re-sold. The chair a refugee and cucumbers for sale," she said. to wait several years to acquire a new was sitting on a few weeks ago, may Even cucumbers grew scarce this desk or chair of modem design. thus end up with a family that hasn't year, because a disease wiped out A former cab driver from the East been able to buy one. With 30,000 much of the harvest. In the East Ger­ German city of Magdeburg reported refugees already having left for the man five-year-plan economy, there is that one has to wait up to 18 years, to West now, this makes roughly 30,000 no contingency for extra food im- get one of the three main low-cost au- chairs, right?

14 Economics EIR October 6, 1989 Banking by William Engdahl

Banking on debts Reagan-Bush administration's policy Some little noticed aspects of those Third World loans are hinted is not easy. But some rough calcula­ tions give an idea. Before the debt cri­ at in a 1986 report . sis, U.S. farm hports to Ibero-Amer­ ican nations were their fastest growing market, increasing almost 20% annu­ ally. In 1981 U. S. farm exports to all With the recent news that J.P. of the debt crisis on the U.S. developing countries were just short Morgan & Co., the United States' economy." of $17 billion. lbero-America was the third largest commercial bank, had set But the second step was never tak­ third largest U. S. food export market aside $2 billion more in a special con­ en. The October 1982 "Reagan eco­ at that time, surpassed only by West­ tingency reserve for expected losses nomic recovery" was manipulation to ern Europe and Japan. The Soviet in its Third World lending, the incred­ prop up the banks at the expense of Union was trailing behind. After the ible Third World debt tragedy opened the rest of the world. 1982 debt crisis, the IMF demanded a new chapter. Morgan is now 100% Does that mean that for seven or debtor countries slash all imports in clear of future losses from its lending more years, we have been misled as order to secure debt service to Citi­ to developing nations. Citibank, the to what the real point of the whole debt bank and friends. Today they have largest U.S. lender in absolute sums, crisis has been? "It is now becoming plunged more than 33%, and far be­ with only a paltry 25% reserve set­ clear," our study continues, "that ad­ low exports to Russia. aside, is rumored to be ill-prepared ministration policies have gone above In addition, U.S. industrial ex­ to absorb future loan losses from that and beyond what was neededfo r pro­ ports of machinery and other capital sector. tecting the money center banks from goods to the economies of Ibero­ But what nobody is willing to dis­ insoLvency." That's putting things America, have collapsed since the cuss is why the tenacious New York mildly. Instead of looking to the na­ one-sided Reagan-Bush debt strategy money center banks have held on to tional interest in maintaining export was implemented. Ibero-American their ludicrous claims on their debts. markets for U.S. industry and indus­ debtors generated 50% of their trade This is the subject of our short dis­ trial jobs, the Reagan-Bush adminis­ surpluses demanded by the IMF to pay course. tration since 1982 has concentrated on debt service to the creditor banks by I came across a report prepared by helping the large money center banks slashing purchases of U. S. industrial the staff of the Congressional Joint such as Citicorp, Chase Manhattan, exports. One estimate puts U.S. job Economic Committee back in May, and Morgan to "improve their profit­ losses at 2 million industrial jobs since 1986. The study has been convenient- ability . " Yes, "the administration's 1982 because of this looney policy. 1y buried, but I think some of its com­ management of the debt crisis has, in But the big banks kept booming. ments warrant better treatment. Its ti­ effect, rewarded the institutions that With ruthless irony, it is the pow­ tle is, "The Impact of the Latin Ameri­ played a major role in precipitating the erful Citicorp, the largest U.S. lender can Debt Crisis on the U . S. crisis and penalized those sectors of to lbero-America, which is now the Economy." the U.S. economy that had played no subject of growing rumors and worri­ This study notes the clear point role in causing the debt crisis." es. Citibank has forced the present di­ that in its near-panic response to the The report details that the only sastrous policy onto Washington since 1982 "Third World debt crisis," the beneficiaries of the administration's 1982. Now Citibank is in the most Reagan administration dumped its handling of the Third World debt cri­ dangerous position. It leads the list of Milton Friedman-Adam Smith "free sis have been bank stockholders. It domestic banks exposed to leveraged market" fundamentalism and moved notes that "bank profits have grown buy-out debt, it has a huge portfolio to prevent a collapse of the U. S. bank­ steadily since the onset ofthe debt cri­ of loans tied to the shaky mortgage ing system. That being so, what then? sis. Between 1982 and 1984, after­ markets, and it is finding country after "The decision to intervene and avert a tax income rose by $167 million at country simply unable to pay more on financial collapse was only a first Citicorp, $99 million at Chase Man­ the fraudulent debts . Perhaps it's time step," say our staff investigators . hattan and $144 million at Morgan for the concept of "national interest" "The second step should have been to Guaranty." to once again include more than a few consider-and minimize-the impact Calculating the costs of the New York banks.

EIR October 6, 1989 Economics IS •

Agriculture by Marcia Merry

Moscow pulls Yeutter's strings more, when we don't get paid a fair price for our output now? The USDA The agriculture secretary is junking the set-aside fo lly, but don't will not touch the issue offarm prices. The group of grain cartel companies expect American eaters to benefit. that control 90% of the world grain trade (Cargill, Bunge, Louis Dreyfus, Archer-Daniels-Midland, Ferruzzi, In August, Agriculture Secretary that would make the Bush administra­ Garnac/Andre, Continental) is delib­ Clayton Yeutter made a sharp about­ tion look bad. But Yeutter is trying to erately suppressing grain prices. If face, and started making sounds about cajole more grain production for next such a fairy tale as "the laws of supply putting more acreage into production, year. and demand" actually prevailed right producing more grain next year, and In September, Yeutter announced now, farm grain prices would be astro­ rebuilding depleted food stocks. a change in the acreage formula for nomical. ' For years, Yeutter promoted just wheat growers, permitting them to During World War II, when feder­ the opposite. He backed the scarce plant more acres in 1990 than usually al officials wanted to increase food food policies dictated by the interna­ allowed by the USDA programs. This output, they decreed that parityprices tional commodities cartel which domi­ is a change fromMay , when Yeutter must be p!lidby any and all grain deal­ nate the U.S. Department of Agricul­ called for a 5% wheat land set-aside. ers-a move which Yeutter and his ture. Millions of acres were locked up By Sept. 30, Yeutter is required cartel backersabhor. into the Conservation Reserve Pro­ by law to announce the 1990 USDA Therefore , there should be no pre­ gram, and also set aside each year by plans for U. S. feed grains acreage. He sumption that Yeutter can get any re­ order of the annual U. S. Department may also try to induce more pro­ sults when he waves his magic wand of Agriculture Commodities program. duction. and calls for more grain to be pro­ With the impact of the 1988 "kill­ The fingerpulling the ring in Yeu­ duced. er drought," followed by continuing tter's nose comes from Moscow. Al­ Congress likewise has been con­ adverse weather, a food shortage cri­ though recent headlines say there is tent only to "study" the problem and sis has been created-obvious even "uncertainty" about how much and hold hearings about shortages. On for the USDA to see. As of harvest when the Soviets will be buying grain Sept. 26, a hearing was held by the period in the northernlatitude s, world again, this is just propaganda for the House Agriculture Subcommittee on "carry-over" of grains-the differ­ gUllible. The food riots in Russia wheat, soybeans, and feedgrains. ence between what is consumed and make clear that the Soviet Union ex­ Subcommittee chairman Dan Glick­ the excess-has dropped to merely 60 pects food imports fromthe West as a man (D-Kan.) insisted that regarding days or less of grain use. That is the matter of political tribute. The strate­ the grain stocks shortages, "It's no "red alert" level. This fall's harvest gic issue is that the food isn't there. cause for panic . . . but it is cause for marks the third year in a row in which USDA officials are bowing and caution." , grain consumption is more than annu­ scraping to meet expected Soviet de­ Likewise, Congress has done al grain production. In some com­ mands. Yeutter has repeatedly an­ nothing about the dairy shortages ex­ modities, soybeans for example, the nounced that the USDA will imple­ cept express "concern." On May 16, U.S. has effectively none in stock­ ment food output policies that will House Agriculture Committee chair­ pile. Milk output is running behind meet all food aid and export commit­ man Kika de la Garza(D- Tex.) issued need. And staple grains, wheat and ments. Ray Nightingale, Agriculture a press reilease to offically recognize com, are not much better. Department food needs analyst, said, shortages affecting dairy products in A new report from the World "The U. S. could increase production the school lunch programs. He said, Health Organization estimates that tremendously. Canada could too. Eu­ "The Deputy Secretary of Agricul­ 1.3 billion people are suffering from rope could, too." ture, Jack Parnall, has confirmed that malnourishment and related diseases. However, the flowof grain is not due to reduced surplus production of In the face of this situation, Secre­ like a water tap that you can tum on dairy goods there will be far less milk tary Yeutter has not brought out the and off. and other dairy products to distribute blaring trumpets nor made any media The firstresponse of many farmers to school districts for use in lunch pro­ fanfare about producing more food; is: How can we be expected to produce grams across the nation. "

16 Economics EIR October 6, 1989 Domestic Credit by Steve Parsons

Real estate could go the way of junk with huge debt payments amid falling Parts of the u.s. real estate liabilities are becoming just as cash flow. The bellwether home real estate unpayable as Third World debt. market in metropolitan New York is also falling apart. From 1982-88, the T he failure of Canadian financier liam Seidman indirectly warned that market went through a stupendous Robert Campeau to meet debt pay­ the combination of rising non-per­ speculative price surge. The median ment deadlines on Sept. 15 heralded forming loans-which banks admit to sales price increased 160%, from the derailing of the junk bond/lever­ only well after the loans stop produc­ $70,500 to $183 ,500. A two-bedroom aged buy-out roller-coaster. Now, ing income-and the sudden soften­ Manhattan condominium has gone with the almost simultaneous default ing of real estate markets could spell from $220,200 to $476,000. Now, of the Dallas-based Lomas Financial a disaster for commercial banks and this housing is beyond the reach of Corp. , an even more terrifying specter the grossly underfunded bank insur­ even yuppies, let alone most families. looms before the fast-buck specula­ ance fund. This is particularly true for On Long Island, homes listed for tors and big banks: the detonation of the Northeast, where the market is on sale are up 30% over last year, while the huge real estate bubble. the verge of falling apart and where actual sales are down 15%. Sellers On Sept. 1, Lomas defaulted on the bulk of FDIC-insured savings throughout the region are already tak­ $145 million in notes, immediately banks are located. ing 10-20% cuts in their prices. "The triggering a cross-default on $1.45 Average and median prices of New York area is simply tapped out in billion of senior debt. Lomas finally homes and commercial property terms of income and buying power," filed for bankruptcy on Sept. 25, sus­ throughout the nation have generally said one regional economist. pending indefinitely payments on been falling for more than a year. A recent study by Lomas and Net­ $2.1 billion in debt held by 47 unse­ Most realtors blame overbuilding and tleton showed that homebuilding in cured lenders, led by Chase Manhat­ a speculative demand-push that has each of the past II quarters has been tan and the Bank of New York. Lo­ doubled and tripled prices in the last lower than in the same quarter of the mas, which until this spring had been ten years. Half-heartedly, they main­ preceding year. The fall in the second the largest mortgage banker in the tain that things will eventually tum quarter of this year occurred despite United States, has stopped dividend around as they always have. lower mortgage rates. New home payments, and reported a loss of But there is a huge difference. sales were down 8% in the second $282.4 million for its just-ended fiscal Real estate and construction down­ quarter, and down 5% in the first half year. turns in the recent past have primarily of the year. In the first half of 1989, The Lomas debacle coincides with been caused by credit crunches. The residential building permits were three major New York banks writing current downturn is due to prices and down 6.3%. In Hampton Roads, Vir­ off $4 billion in bad Third World debt. rents outstripping the ability of debt­ ginia, building permits plunged Among them was Lomas' chief credi­ ridden consumers and businesses to 20.7%. tor, Chase Manhattan. Unlike with the pay. All of this sets the stage for what other banks, a chunk of Chase's write­ One of the most ominous signs for City of London economist Stephen offs was for non-performing Arizona commercial real estate is that lever­ Lewis recently forecast. "I think that real estate investments. Now Chase is aged purchases of New York City of­ mortgage-backed securities will be getting hit by Texas real estate. fice buildings are blowing out. One the next shock," said Lewis. "This is It is no secret that Texas and other firm, Broadway Management Co., a $400-500 billion market where Citi­ Sunbelt real estate has been sour for has lost control of about a dozen prop­ corp and Salomon Brothers play a several years. But so far, banks have erties because it is unable to meet debt leading role." written off only a relative smattering payments, because vacancies are ris­ Lewis is right on the mark. On of bad real estate debt. Furthermore , ing and property values falling. Sept. 27 , the General Accounting Of­ real estate markets in almost every Broadway is one ofa number ofhighly fice told Congress that the Federal part of the nation are softening. leveraged companies that bought ev­ Housing Association insurance fund, On Sept. 19, Federal Deposit In­ erything in sight at a time when prices which guarantees mortgages, lost a re­ surance Corporation chairman Wil- were soaring, and are now getting hit cord $4.2 billion in 1988.

EIR October 6, 1989 Economics 17 Business Briefs

The Debt Bomb temberin New Delhi. that the function of money "should not be to JAIDO, ajoint stock company with capital enrich banks and securities companies, but to IMF rejects Third provided by about 100private companies in smooth the path of production. " The Globe re­ Japan and the Overseas Economic Coopera­ ports that the book "isn't a pleasant read," World conference tion Fund of the Japanese government, was probably because it is right on the mark. set up in April to promote direct investment in Americans have apparently forgotten just The International Monetary Fundhas in effect developing countries. It will invest an average what it was they taught the Japanese about run­ rej ected the proposal made by India, Egypt, of 200 million yen each in about 100 projects ning asucr;:essfuleconomy 40years ago, Mori­ and several other countries for an international under consideration. ta writes. In Japan, "We ...plan and develop conferenceon the Third World debt, the Unit­ Japan also announced Sept. 26 in Wash­ our busi�ss strategies 10 years ahead, while ed News of India pressservice reported from ington, D.C. that it will give the World Bank AmericaIl-s seem to be concerned only with Washington,D.C. $300 millionover the next three years to train profits 10 minutes fromnow ." Asked about the proposal at his press con­ people in poor countries to help their nations Morita is especiallycritical ofU .S. invest- . ference Sept. 22, IMF managing directorMi­ develop. "Japan is now preparedto contribute ment houses, which "actually buy and sell chel Camdessus said, "This is not the forum to a total of about $300million . . . fora special stocks in huge numbers in an attemptto max­ discuss such a proposal ." The debt problem, fundin the bank," ForeignMinister Hashimo­ imize profits.... For [Americans] the name he said, would be discussed by the 152 countr­ to told the annual meeting of the International of the game is nothing but quick profits. Entre­ ies at the on-going World Bank-IMF meeting. Monetary Fund and World Bank. preneurs and investors alike do not leave their Moreover, he added, the IMF and World Bank The Special Fund for Policy and Human money in long-term projects. . . . The Ameri­ arebusy working on a program to deal with the Resources Development is designed to pro­ can econc;>my is . . . without substance." debt problem. vide technical assistance for developing coun­ The Globe quotes an anonymous former On Sept. 25 , during the IMF conference in triesand to help develop human resourcesthat U.S. go�rnment official admitting, in refer­ Washington, Camdessus menacingly stated, could take the responsibility for formulating ence to �e wave of leveraged buy-outs, "I "The countries which are in arrears in their and implementing development policy , the of­ think that much of the recent hostile takeover dues to the IMF denounce themselves." ficials said. "It is important that developing activity, as well as the LBOs, have been little Camdessus was referring to a numberof coun­ countries make their governments' adminis­ more thab economic racketeering which, for tries, like Peru , who have not paid their debts trativesystem moreefficient and improve their the most part, managed to steer clear of out­ to the IMF. Camdessus indicated that thereare capacityin formulation and implementation of right illegality, although we probably haven't a number of measures which could be taken their development policies," Hashimoto was heard the last of that story, yet." against such countries: I) they could be de­ quoted by Reuters. The ao-authorof the bookis ShintaroIshi­ prived of the benefits of the quota increase; 2) hara, now the third most popular politician in they could be cut off from technical assistance; Japan's �iberaI Democratic Party . or 3) the IMF could issue a declarationof non­ cooperation. Investment

Sony founder blasts Health Third World Development U.S. financial policy Crisis hits one-fifth Japan will create Akio Morita, the founder of Japan's consumer of world population thousands of new jobs electronics firmSony , has co-authored a book criticizing U.S. financial and investment p0- One-fifthofthewor ld's population is suffering Japan will create more than20, 000 new jobs licies, the Boston Globe reportedon Sept. 24 . from severe health problems, the World and generate morethan 2 trillion yen worth of Entitled TheJapanThat Can SayNo--The Health Organization announced Sept. 24 in its economic development benefits through joint New U.S.lJapan Relations Card, the book is annual "Report on World Health." ventures in developing nations over the next receiving much attention in the U.S. Con­ In Southeast Asia, some 500million pro­ five years, according to a plan unveiled at a gress, even though the English translation of ple-40% of the population-suffer from meeting between representatives of the Japan the book is not yet publicly available. malnutrition and disease. In sub-Saharan Afri­ International Development Organization Morita says that Americans make money ca, 160 million peoplesuffer from some of the (JAIOO) and the Confederation of Engineer­ by "simply moving money back and forth most serious diseases known to man, including ing Industries (CEI) ofindia, held during Sep- through mergers and acquisitions," and argues AIDS, lJlIliaria,and parasitic diseases. Almost

18 Economics EIR October 6, 1989 Briefly

25% of the populations of South and Central year, the Paris-Lyons train carried 17 million • WASHINGTON is "absolutely America are diseased, as are the populations riders,giving revenues of$681 million, for net obsessed with fear that the markets of North Africaand theMiddle East. Some 46 eamings of over $100million. might spook, and send the economy million infants worldwideare not fullyimmu­ France now leads the world in high-speed into a tailspin," writes Mark Melcher nized against the six major fatal childhooddis­ train technology, and hopes to soon win a in the Prudential-Bache Securities eases-polio, tetanus, measles, diptheria, South Korean contract to build a high-speed strategy letter. "There is a profound pertussis, and tuberculosis-which kill 2.8 train between Seoul and Pusan. Officials in concern that if a recession comes, it million childrenannually and disable 3 million Canada are looking at a link from Torontoto could be an utter disaster because of more. Montreal, and Florida is studying a link be­ the high amount of private and public Symptomatic of the problem, Abdel-Qa­ tween Miami and Tampa. debt outstanding. " darQaddoura, the speakerof the Syrian Parlia­ ment, told Reuters Sept. 26 that one-third of • EIGHT EUROPEAN nations­ the Arab world faces starvation. He said that Switzerland, Luxembourg, Sweden, the Arab world will need 49 million tons of Airlines Iceland, West Germany, Norway, wheat, for example, but will only produce 28 Denmark, and France-have higher million tons. Qaddoura proposedthat the Arab U.S. admits planes per capita income than the U. S., the oil-producing countries use their petrodollars World Bank announced Sept. 22. to upgrade agriculture. 'might be' unsafe Switzerland leads the world at $20,130 per person, the U.S. has a In what may bethe understatement of the year, dismal $14,080, and Japan has U . S. Secretary of Transportation Samuel $12,480, but grew 22.2% between Transportation Skinner warnedthat airlines saddled with high 1984 and 1988. loads of debt might not be ableto afford proper France unveils maintenance, particularly of older aircraft. • THOUSANDS of children who The implication is that such airlines might be live on the streets of Cochabamba, world's fastest train unsafe to fly.The past year has seen a record one of Bolivia's major cities, smoke number of airplane crashes. cigarettes laced with cocaine paste to The world's fastest train, known as the TGV In a speech to the International Aviation relieve hunger, the Washington Post Atlantique, traveled from Paris to LeMans, Club on Sept. 20, Skinner said that the U.S. reported Sept. 18. Bolivia is touted France at over 186 miles perhour. A spokes­ governmentwas veryconcerned aboutthe re­ by Harvard economist Jeffrey Sachs man for Compagnie Generale d'Electricite, cent wave of foreign acquisitions of U.S. air­ as the "success story" for his shock which built the train, told the Sept. 21 New lines. "When a foreign airline is willing to con­ economic program. York Times that it would eventually bebrought tribute a large shareof the equity capital in re­ up to its designed speed of 360kilometers an turnfor a relativelysmall percentageof the vo­ • U.S. HOMEBUILDING in each hour, or 223 mph, once riders were accus­ ting stock, we need to examine all aspects of of the past II quarters has been lower tomed to the speed. control," Skinner said. "What doesthe foreign than in the same quarter of the pre­ The Atlantique weighs 490 tons, and uses airline think it is buying?" ceding year, a study by the Lomas three 1,5OO-horsepower three-phase electric Skinner's remarksreferred to a law limit­ and Nettleton realty company re­ motors, which have 40% more power than ing foreign ownership of aU. S. airline to less ports . The fall in the second quarter France's eight-year old Paris-Lyons train, than 25%. So far this year,British Airways has of 1989 occurred despite lower mort­ which has a top speed of16 7 mph. Though the agreed to a purchase a 15% stake in United gage rates. Atlantique's ticket prices will besome 5-47% Airlines; Swissair has reacheda deal with Del­ higher than currenttrain prices, a ticket on the ta Air Lines; Scandinavian Airline System is • JAPANESE BANKS may sell Atlantique from Paris to Nantes will cost buying into Texas Air; and Northwest Airlines some U.S. assets, Toru Kusukawa, $49 .08 to $6 1.38, depending on the time of has been bought by a group led by Italy's Al­ deputy president of Fuj i Bank Ltd., day, comparedto $90.00for an airline ticket. fred Checchi for $3.65 billion. The Checchi said on Sept. 19. Because of new in­ The Societe Nationale des Chemins de group included KLM Royal Dutch Airlines ternational rules on reserves sched­ Fer, the state railroad company, has invested and Elders IXL Ltd. of Australia, which to­ uled to take effect in the 1990s, Japa­ $3 billion in new track and equipment for the gether contributed $480 million out of $700 nese banks "might have to sell some Atlantique. The company says it will be able million of equity financing (direct purchases portion of the assets" they have ac­ to eam back the money within a decade by at­ of ownership stock), but receivedonly a 20% quired in the U.S. tracting 22 million passengers a year. Last voting interest.

EIR October 6, 1989 Economics 19 �TImScience & Technology

Jeremy Rjfkin's crazies attack your children's milk Marcia Merry proves how the environmentalist, anti-people crowd are hitting both the consumers and producers qfthis vitalJood product.

The unfolding events in the case of the bovine growth hor­ the herds, the number of cows, and the amounts of milk mone (bGH, or the "more milk hormone"), show that the involved have not been made known. The tests are being campaign of the radical environmentalists to prevent its use conducted by private companies, in limited on-farm situa­ stems from their hatred of people, of population growth, and tions. According to the FDA timetable, bGH could be avail­ of science. What has happened in recent weeks is that an able for general use by early 1990 or by 1991. elaborate social engineering operation is under way in which Because of the costs involved in administering bGH, and it is said that "public opinion" opposes consumption of dairy the costs of the increased feed a more productive cow may products from cows that have received the "more milk" need, most average dairy farmers cannot at present afford the growth hormone. In fact, an "aura" of public fear over the option of bGH. Dairymen are getting only about $12 per hun­ hormone has been contrived by selective TV appearances, dred pounds (cwt) of their milk, when their minimum costs press conferences, and media hype by an anti-technology are about $14 per cwt, and the parity price, or fair price, for gang, which does not want the supplies of milk or other basic milk from the farm is $22 per cwt. foods to be expanded in the world, but instead wants less However, there is an urgent need for more milk. If food and fe wer people. emergency measures were taken to phase in parity prices, What is bovine growth hormone? BGH is a protein that build up herds, and give the farmer the means to decide is produced naturally in the pituitary gland of cattle. The whether bGH is useful for his animal husbandry plans, then substance performs various metabolic functions, including there could be a dramatic increase in milk supplies, from regulating a cow's milk output. A few years ago, scientists both the use of bGH and from simple herd expansion. were able to isolate this substance, whose technical name is To kill this potential, "pu1;>lic opinion" operations have bovine somatotropin (BST); and then researchers succeeded been launched against both the general consuming public in creating genetically altered bacteria to produce bGH on a and the dairy-producing farmer. The consumer is told that scale for commercial use. For all practical purposes, the milk from cows receiving the hormone is harmful. Farmers "synthetic" hormone, and the hormone from the milk cow's have been told that only the big operators with several thou­ pituitary gland are identical. When selected doses of bGH sand cows in their "milk factoryherds" will be able to afford are given to a cow, her milk output may increase from 20% bGH, and that federal approval ofbGH will drive the family­ to over 35%, depending on what phase of her lactation she run dairy farm out of existence. is in. The Food and Drug Administration has approved it for In August, Jeremy Rifkin, head of the Washington-based general use, pending the completion of fieldtests now under Center for Economic Trends, sent a threatening letter to the way. Approximately 100 herds have been involved in using large supermarket chains and others, warningthat there would the hormone. For evaluation reasons, the exact location of be public hysteria if the stores sold dairy products fromherds

20 Science & Technology EIR October 6, 1989 receiving the bovine growth hormone. Rifkinthen appeared population growth. He uses specious arguments and plays on national network television with scare stories about the on irrational fears and bogeymen: "If you interfere in dangers of milk from cows receiving bGH. He cited as evi­ Mother Nature, who knows where it may end?" Rifkin is dence baseless assertions from a report prepared by Dr. Sam­ one element in a grouping of anti-technology fanatics who uel S. Epstein, from Chicago. Typical was the claim that bo­ are committed to drastic population reduction and want vine somatotropin could potentially be absorbed from milk no advances in food production to derail their agenda. For into the bloodstream, particularly in infants, and produce example, a cohort of Rifkin's, Daniel S. Greenberg, who "hormonal and allergic effects." works out of Washington, D.C., wrote against the use of Five major supermarket chains then announced they bGH in the Sacramento Bee. "In the perverse uses of would not handle dairy products from milk from bGH herds. science, it would be difficult to s'}rpass the creation of a Also, Ben and Jerry's Homemade Ice Cream-whose "un­ man-made hormone that induces cows to produce more adulterated" product caters to the "thirtysomething"crowd 's milk, a commodity whose surpluses fill storage caves and cravings for designer foods, announced they would not only drain treasuries in the United States and many European shun bGH-connected milk, but they would carry an ad on nations." The latter claim that there is overproduction is their ice cream cartons, proclaiming "Save Family Farms !" a straight lie. However, Greenberg makes his real point The timing of this Rifkin anti-bGH campaign before by asking, "A relevant question, of course, is who needs schools opened was key . There is a national and international more milk, even if it's a bit cheaper?" shortage of milk, which became very visible when schools opened in September. Rifkin's campaign for "pure milk" was designed to divert attention from the fact that depleted herds need to be built up, dairymen and other farmers need emergency assistance, and growing, healthy children need milk. The U.S. Department of Agriculture, as of this fall, has The facts on bovine cut off the distribution of all federal stocks of cheese to school lunch programs. For the first time since 1974, there is none to give out. The USDA has discontinued supplying growth hormone dried milk powder to the WIC-Women, Infants and Chil­ by Thomas H. Jukes dren-program. There is none to give out. Local dairy­ processing plants are scranlbling to get enough raw milk for fresh, fluid milk supplies for schools. In one instance, at Dr. Thomas H. Jukes is a professor-in-residence in biophys­ Johanna Farms in New Jersey, milk was brought by tank ics and nutritional sciences at the Universityof California at truck from Washington State, a practice which guarantees Berkeley. An earlier contribution refuting the cancer scare that milk arrives "stale," no matter how carefully it is around the growth regulator alar in apples. "Consumers handled. Union publishes bad science on good apples." appeared in In May, House Agriculture Committee Chairman Kika our May 15. 1989 issue. de la Garza (D-Tex.) released a statement saying, "The Deputy Secretary of Agriculture Jack Parnall has confirmed Recent allegations by Samuel Epstein about purported dan­ that due to reduced surplus production of dairy goods there gers of administering bovine growth hormones (bGH) to 2 will be far less milk and other dairy products to distribute to dairy cattle1 • have been adequately rebutted by the Food 5 school districts for use in lunch programs across the nation." and Drug Administration (FDAf·4• • There are some obvious De la Garza pledged "Our continuing support of the school biochemical facts that Epstein has not mentioned, in addition lunch program as a way of ensuring that youngsters receive to those listed by the FDA. proper nutrition during their early school years." The result First, the ingestion of "foreign" proteins (proteins of non­ of the pledge? Nothing. An estimated 12 million children human origin) is implied by Epstein to be generically danger­ 2 from low income families are potentially suffering the loss ous because of differences in amino acid sequences. But the of this high-protein food. main proteins of cow's milk are casein and lactalbumin, both of which are different in their amino acid sequences from the What is Jeremy Rifkin? corresponding patterns in humans! Rifkin has specialized over the years in attacking The amino acid sequences of bovine and human lactal­ 6 technological advances, not just in agriCUlture, but also in bumin differ by about 23% . Bovine and sheep kappa defense and in energy production. Last spring, he lashed caseins differ by 19%. Human and bovine kappa caseins 6 out against the threat of limitless energy from "cold differ even more widely .7 because of their greater evolu­ fusion," because it would raise living standards and cause tionary divergence, as shown by the "molecular evolution-

EIR October 6, 1989 Science & Technology 21 ary clock." Yet these "foreign proteins," which are present which in milk is set at a maximum of 1.5 parts per million in in bovine fluid milk at levels of about 1% and 2.5% are milk fat by the FDA) "do not provide convincing evidence among the most important and best-tolerated proteins in that PCBs induce liver cancer ,,,10 and studies by the Michigan the human food supply, and the amounts ingested are Department of Public Health showed no health effect in hu­ greater by several orders of magnitude than any possible mans. Dioxin is a potent animal carcinogen, but the only traces of bGH in milk. Since bGH is produced naturally effect found in humans exposed to high levels of dioxin is a by cows, most of the allegations made by Epstein apply skin rash, "chloracne. "II In any case, there is no evidence also to market milk from untreated cows, and the allega­ that the levels of these four substances in milk are likely to tions have no scientific basis. be increased by bGH. Second, the "alien methionyl terminal residue" in bGH The amounts of pesticides encountered in foods, includ­ is viewed with alarm by Epstein. All proteins start with a ing milk, are so small that they are insignificant in compari­ methionine terminal residue, and this is normally removed son with naturally occurring toxicants, as explained at length 8 by a special enzyme during protein synthesis • So there is in various publications by B�N. Ames et al. (for example, nothing to make us feel xenophobic about a terminal methio­ Science 236, 27 1: 1987). Is Epstein attempting by tortuous nyl residue. arguments, to play on the public fear of pesticides as a device My next point is a reminder that genetic selection of to arouse suspicions of bGH. If so, the target of his arguments cattle for high milk production, as practiced for many years, is milk, not bGH. was, in effect, selecting cattle that secreted higher levels of Fifth, Epstein alleges that bGH will increase the level of bGH. This is how the Holstein-Friesian breed (now known infectious disease in cattle, so that antibiotics will be used as Holsteins) came into being, in contrast with beef cattle, for treatment, so that there will be "increased" levels of anti­ such as Herefords, with low milk production. The use of biotics in milk, so that antibiotic resistance will be induced bGH is an acceleration of this familiar genetic practice, "in the general popUlation." The use of antibiotics in dairy rather than a strange innovation calculated by Epstein to cattle is in penicillin treatment of mastitis. This use is arouse "America's new timorousness" that contrasts so followed by a withdrawal period, only because a few people abruptly with this nation's adventurous spirit prior to the are allergically sensitive to penicillin, not because "antibiotic 1960s.9 resistance will be induced in the general population." So, this imagined "domino effect" of an imagined train of events The cancer argument, revisited is something that won't happen! Fourth, Epstein deplores the negative energy balance in­ Rather than dilate upon the other pessimistic forebodings duced by "biosynthetic milk hormones," but he simultane­ listed by Epstein, a general comment is in order: If bGH is ously notes that this normally occurs in the rising phase of as bad as he claims, it will never get off the ground, because lactation. This is well known in dairy husbandry. The Hol­ it will never be successful enough to reach the market place stein breed, in particular, normally draws on body reserves, at all. including bone calcium, during lactation. Epstein views this An innovation in the food supply should by all means be negative energy balance with horror and he claims that this thoroughly examined and criticized before being introduced. normal biorhythm will, when (allegedly) prolonged by bGH, But Epstein's exaggerations and fantasies do not contribute be "associated with increased stress, susceptibility to infec­ usefully to such an examination. tious disease and measurable changes in the composition of Notes milk." Also, Epstein2 claims that "the fat and milk of cattle 1. Epstein, S., July 27, 1989, "Growth HonnonesWould Endanger are contaminated with a wide range of carcinogens including Milk," Los Angeles Times. 2. Epstein, S., "Potential Public Health Hazards of Biosynthetic pesticides such as heptachlor epoxide and dieldrin, and xeno­ Milk Honnones", MS sent to FDA Commissioner F.E. Young, July biotics such as PCBs and tetrachlordibenzo dioxin" and that 19, 1989. such contaminants are "likely" to be increased by bGH. But 3. Guest, G. B., letter to Los Angeles Times. Aug. 1, 1989. on page 8 in the same treatise he says that no information is 4. Aikman, B., Talk Paper, FDA T89-50, August 4, 1989. available on these "concerns." This approach seems like 5. Cannon, H.C., FDA, letter to Congressman Peter Smith, Aug. 4, 1989. scare-mongering, but let us examine the allegations further. 6. Dayhoff, M., Atlas of Protein Sequence and Structure. 1972 and (a) If "the fat and milk of cattle are contaminated with a 1978. wide range of carcinogens" then milk would not be fit to 7. Brignon, G. et aI., FEBS letters 188 48 (1985). drink. 8. Watson, J.D. et aI . , Molecular Biology of the Gene. third edition, (b) The pesticides and "xenobiotics" listed above are not 1987, p. 411. 9. Fairlie, H., "America's Fear of Living ," The New Republic 1989, known to be human carcinogens. The pesticides he names reprinted in the Sacramento Bee. Forum, p. 1, April 23, 1989. have been banned, and therefore are not used. The only 10. Report by Drill, Friess, Hays, Loomis and Shafter Inc., cited carcinogenic responses to them have been in special strains by EPA in report on PCBs, Sept. 1, 1983. of mice and rats . Animal studies with PCBs (the content of 11. Science editorial, June 24, 1983.

22 Science & Technology EIR October 6, 1989 Interview: Theodore Labuza

Food irradiationwould greatly benefitLati n America Mr. Labuza. the president of the California-based Institute and harvested, especially in the are highly contami- fo r Food Technologies. was interviewed in Bogota. Colom­ nated with a lot of spoiling bacteria. if you try to make bia. in December 1988. The interview. conducted by Javier a food with that spoiling bacteria, in process of making Almario. was kindly made available to EIR by the editors of food commercially, you have a potential that the food may 21 st Century Science & Technology. spoil faster, and the potential for food poisoning. Now we can offer. the spice industry can offer,to the food-processing Q: You said that the communications media are not covering industry sources of spices that are free of micro-organisms. the food technology process in an appropriate way. Do you Those are the two major areas in which that technology consider the campaigns against nitrates and food irradiation has been approved. The third area is for reduction of trichinae as nonsense? in pork. In the United States, the U.S. Department of Agri­ Labuza: You know, the media need to sell their products, culture does not inspect hogs for trichinosis. They rely on and articles about how safe the food supply is, don't get great the consumer cooking the food up to certain temperatures reviews versus an article that says here is a problem. Articles that kill the trichinae, or freezing the pork which makes it about problems are more readable articles. What we are try­ dryer and tougher. With irradiation, you can cook pork to a ing to do, through the Institute for Food Technologies, and rare temperature and have a juicier product, not a dry product. through a communicators program, is to supply to the media Again, the level of radiation is low. . . . background information. so that, when something comes up ...for example, when somebody gives a speech and says Q: What is the future of that technology in the U. S. ? that when you eat irradiated food , you'll become radioactive Labuza: Of irradiation technology? I think the future of that and die, we hope that the media would have some other well­ technology in the U.S. is dead. documented background scientific material, so that when they write an article on that person talking about that, maybe Q: Why? they will also present a different viewpoint based on what Labuza: Because there are too many activIties that are the scientist thinks about that area. We are not trying to say against that technology. There is a coalition against food that the media should not write the article. What we want is irradiation. This is one of the strongest activist groups. They that if someone is talking about the murderous food industry , are totally opposed to food irradiation �ecause they think that the media also report some scientific facts that probably that if they eat irradiated food, they will bdcome radioactive and person does not know. die. So, they trick the supermarkets who are trying to sell irradiated fruits, for example, and the scare the consumers. Q: Do you think food irradiation is safe? Whenever a company has proposed to put a food irradiation Labuza: Yes, absolutely. Food irradiation is very safe for facility-if you build a new facility, f course, you have to the purposes that have been approved, that is, the low-dose go to the local government and get permission to build a radiation for extending the shelf life of fruits and vegetables, building and you present your plans-then the coalition which would be a major benefitto Latin American countries, group goes to the town council meetings and makes the point which produce many fruits which decay very rapidly. If these that now you have radioactivity in )lour garden, and tells fruits are irradiated, [the Latin American countries] can trans­ the people of the neighborhood that the facility is going to port them and sell them in foreign countries, and get some explode like Three Mile Island. That opinion, of course, is balances of trade. Irradiation of spices is safe. It is done in wrong. They argue that at some point, you have to transport the United States. In fact, that helps to make other foods the radiation source to the facility , and there are some possi­ safer. The irradiated spices are not the spices people use at bilities that an accident could happen and the environment home, but the ones used at the industrial level. There, the would be contaminated. major concern is that many spices, the way they are grown One example of this was the National Food Association, I EIR October 6, 1989 SCier & Technology 2J which is a national laboratory sponsored by the food compa­ vere and we only are going to solve it in about 10 years if we nies. One of its laboratories is out in California. About a year begin our effortsnow . and a half ago, they wanted to build a test radiation facility there so that they could make studies for the food companies, Q: What is the role that food technology could have to solve and the local government did not allow them to do that, the problems that the severe droughtthe U. S. and other coun­ because those kinds of stories were being told. tries have suffered? Labuza: In the short term there is nothing that science and Q: Why do Americans believe more in these hysterical ac­ food technology could do to solve the drought. The short­ tivists than in the scientists? Is not the United States the most term solution is to try to get the raw materials for food indu­ advanced country in science and technology? stries from another part of the world. The second thing we Labuza: The reason is human nature. The way it is pre­ can do, and we are doing it in the U.S.A., we have done a sented. I give another, better reason: the level of understand­ lot of research in that area, is the engineering or whatever ing of science, and there are a lot of studies that have been it is called, is to design and study the storage facilities of published, the level of understanding of science by young commodity articles like grains, building the proper kind of children, people in high schools, adults, has dramatically silos, so that you can store grains for longer periods of time, gone down over the last 20 years. That is because less and so that in periods of shortage you will have the grain available less science and less and less mathematics have been taught for the market place. in the elementary schools and the high schools. If one does The third area of research, and probably the most excit­ not have the feeling for the understanding of science, one ing, which will not solve the problems of this specific cannot consider science as a help for mankind. Instead one drought, but will increase the ability to grow plants in areas considers science as something strange, something that is where there is less rainfall, is genetic engineering and hydro­ unknown, something that is scary; unless you have a back­ metrical manipulation of plants to make them drought re-sis­ ground in science, it's easy to be scared of that kind of tant and be able to grow in areas or in periods in which they technology. I am afraid for the United States from that stand­ could not grow before . There is some work on that in Israel point. Scientists will have a very hard time convincing people and in Arizona where plants have been developed that can of some kinds of new technology and the directions we would grow in desert areas. You can virtually convert that area into like to go into. a plantation and the plants can grow with less water. I think that is the kind of thing we are going to need. Q: What is happening with U.S. education? Labuza: I don't know. I don't think education schools are Q: Why do you think food irradiation has better prospects teaching teachers to be science teachers. We have to revive in South American countries, like Colombia, than in the education. Somebody should start teaching teachers. There U.S.A.? is a tremendous math hysteria. People have an aversity to Labuza: Well, you still don't have the kind of activist math. I have met some secretaries to whom I can show simply groups opposed to that technology that we have in the United how to use a calculator and they become afraid of using that States, and you should take advantage of that. calculator, and in order to divide, they prefer dividing by hand and don't understand what I am doing. Our education Q: What is the cost of a food irradiation facility? system needs a kind of boost. I think the National Science Labuza: I do not know what the cost is. The cost is not Foundation has recently gotten some money fromCongress much higher, let us say, than putting up a [medical] steriliza­ to try to put science and math teaching back in schools. We tion plant. The key thing is that the demand for fresh products should begin in elementary schools. If we put science and is going up, fruits and vegetables, and people are willing to math only at the high school level, when we try to teach them pay a premium price. For example, in Minneapolis in winter they will have become phobic to mathematics. By the time time you will probably pay a dollar for a kiwi from New they will be in high school, they will not like to learnmathe­ Zealand. In Californiawe also grow kiwis, and near the end matics. of the harvest season you can buy 12 kiwis for a dollar. But If we are talking about food technologies, I think the they are not of the quality of the kiwis from New Zealand. people in the activist groups, and in the media, who deal with People are willing to pay extra for exotic fruits if they have that, don't have the science background. They think that food good quality. If you pick up papayas and mangos, by the technology is only a matter of cooking and they think that time they reach the supermarkets in the United States, de­ adding some chemicals to food is only economics and not pending on what part of the United States, the quality is very basic science. That is part of our problem and the Institute poor, the flavor is not there, because of damage, rotting , for Food Technology is getting the people in Washington to mold, spoiling, or whatever. Irradiation, low doses of radia­ understand that food science is a science. It was recently tion, will slow down that process, extending shelf life and that food science has been considered in the list of the U.S. making these kinds of exotic fruits available in many mar­ Department of Agriculture. The problem of education is se- kets. People want to be able to take the product home, espe-

24 Science & Technology EIR October 6, 1989 cially in developed countries, and put it in a refrigerator. There are a number of groups in the United States that feel They are not going to eat it the next day because they shop and think that we have to go back to the old ways, that science once a week or whatever, so they want it to have a longer is degrading our moral philosophy, adding poison to food , shelf life once the food gets into the home. That means 40- and we are going to die, that science is producing cancer. 45 days of shelf life from the time of harvesting to the con­ They tend to forget to look at the statistics and look at what sumer. One of the best examples of that, even in the United mankind ate in the old days, and the fact that they lived States, is strawberries. You pick strawberries, you put them maybe 35-40 years , and that they died so much of food in a basket and put them in a refrigerator, and in three days, poisoning. You know, when you give them those numbers the basket is moldy. A small dose of radiation makes them they just ignore them. When you are an anti-science person last for about three weeks. Then you have something that the it is easy to ignore whatever you want to ignore and only consumers are willing to pay for .... believe what you want to believe in. And I think that is one of our real problems. Q: Do you think there is an artificial interest among these groups against science? Q: What do they want? A new Dark Age? Labuza: Oh yes. There are a lot of groups against science. Labuza: Ha, ha. I think so. I think so.

the Dec . 30 Federal Register, the Food and Drug Admin­ A beneficialte chnology istration published a detailed rebuttal to every objection raised to the FDA's ruling that permits food irradiation poisoned by theanti- nukes use for fresh pork , disinfestation of produce, and growth There seems to be no end to the lies the anti-nuclear move­ inhibition (such as sprouts in onions). The FDA denied ment invents about food irradiation-and the numbers of requests for hearings on these objections, stating after a people who will fall for them. review of each objection, "A hearing will not be granted The propaganda has reached new depths of deception on the basis of mere allegations or general descriptions of in New Jersey, a state that has pioneered in the develop­ positions and contentions." ment of low-level irradiation to kill insects and bacteria. Food irradiation is the most researched food process If New Jersey legislators do not stop the proposed two­ in man's history. The studies began during World War year moratorium on food irradiation, the Garden State II, when researchers were looking for ways to supply will go on record opposing science and supporting the lies battlefield troops with wholesome, tasty food . Today ,

of the well-funded anti = nuclear movement. The morato­ more than 40 years of research and thousands of studies rium was an ill-conceived compromise proposed by the later, the technology has the full weight of the internation­ State Health Department. Although the department itself al scientific community attesting to the safety and whole­ has ruled irradiated foods to be safe and wholesome, it someness of the product. feared that without such a compromise the anti-nuclear Food irradiation at low doses can prolong the shelf life lobby would succeed in achieving a permanent ban on the of fruits and vegetables, kill the parasitical trichina worm technology. in pork and the bacteria salmonella in chicken, disinfest The professional anti-nuclear activists in New Jersey fruits and grains afterharve st, and delay sprouting in pota­ have no concernfor truth. Typical of their propaganda is toes and onions. At higher doses, irradiation can sterilize a leaflet against food irradiation adorned with a cartoon foods, enabling them to be stored at room-temperature of a wicked witch, saying, "Eat it my pretty little guinea indefinitely. (This is what astronauts eat in space.) pig," as she force feeds children. Various leaflets suggest Although the United States has led the world in pion­ that irradiated food will "poison" people, that it is a plot eering the research, it now lags behind in the use of the on the part of greedyindustria lists, that animals and peo­ technology. While the relatively affluent U.S. consumer ple have been harmed by eating it. can continue the lUXUry of believing environmentalist Using the logic of the anti-food-irradiation lobby, propaganda, reason must prevail in developing countries, which claims that "unique radiolytic products" are pro­ which have starving or semi-starving populations and crop duced by irradiation, the New Jersey state legislature losses of up to 60%. should also ban cooked foods as well as canned foods It is not too late for New Jersey to wake up. All it will (which are heat processed), because the radiolytic prod­ take is one or two legislators who are more worriedabout ucts found are the same in all cases! the disease, starvation, and grinding poverty that accom­ The antinukes have had their arguments refuted time pany a new dark age , than they are about votes from the after time by scientists and state and federal agencies. In environmentalist lobby .-Marjorie Mazel Hecht

EIR October 6, 1989 Science & Technology 25 TIillFeature

Satan's helpers: Nazi doctors! in America by Carol White and Brian Lantz

While u.s. Central Intelligence Agency involvement in experiments with mind­ altering drugs in the 1950s and early 1960s was made public in the Rockefeller Commission hearings in 1975, public knowledge of the CIA's MK-Ultra program has remained superficial. If a new Satanic Dark Age is to be prevented, every citizen has a right-and duty-to know the full scope of the secret government's effort to "blow their minds. " The problem is that not only was the Rockefeller Commission's report itself a coverup, but its emphasis upon abuses by U.S. intelligence agencies, by its very nature, eliminated the crucial role of Britain's Tavistock Institute. The paradigm shift which has occurred in the West-to introduce the "Aquarian" values of the "New Age"-was manufactured by the social engineers ofTavistock , at the behest of an Anglo-Saxon oligarchical grouping which not only set itself above nations, but against the Judeo-Christian traditions of Western civilization as well. Tavistock played a crucial role during the Sec(md World War in Anglo-Soviet intelligence operations which ran out of a secret group sometimes called the British Occult Bureau. The Bureau included occultists-such as Aleister Crowley and Dennis Wheatley-astrologers, along with intelligence professionals. They maintained contact with Heinrich Himmler's astrologer, as well as with occultists in Hitler's immediate circle. In the postwar period, Tavistock ran a number of psychological profiles not only of political leaders and would-be leaders, but of entire populations. It was also involved in intensive studies of brainwashing. A leader in this field was the psychiatrist R.D. Laing, who worked out of Tavistock. It was he who first stated the doctrine that insanity was a form of social revolt of a higher consciousness than so-called normal behavior; this formed the basis for recruitment to the terrorist Baader-Meinhof Gang in Germany in the 1960s and 1970s, and similar groups elsewhere, from among patients in mental institutions. This notwithstanding, the role of the Allen DulJes wing ofthe U. S. intelligence

26 Feature EIR October 6, 1989 Lefuo right: R.D. Laing, Tavistock psychiatrist who promoted insanity as a higher form of consciousness; Zakk Wy lde, guitarist for Satanist rock star Ozzy Osbourne, in'a March 1989 concert in Sweden (rock was developed as a brainwashing technique); and a typical product of the intelligence services' evil workings, at a New York "pot parade."

community in fostering the spread of Tavistock methods focus more particularly on the activities of one of the most throughout the United States, and in the creation of the count­ evil of the CIA brainwashers, a Dr. Ewen Cameron , but they erculture, should be told and retold. Three new books offer a chilling account of the ability of the "secret government" to utilize the services of psychiatrists and other social scien­ tists, as well as members of the medical profession in general , Journey Into Madness, Medical Torture in the service of aims that can best be described as violations and the Mind Controllers of the Nuremberg War Crimes Statutes. The first, Searchfor by Gordon Thomas a Manchurian Candidate by John Marks, is actually a re­ Bantam Press, New York, 1989 issue; the second, A Father, a Son and the CIA by Harvey 398 pages, paperbound, .$2 1.95 Weinstein, was released in 1988, as was Journey Into Mad­ ness, Medical Torture and the Mind Controllers by Gordon Thomas. Marks's account appeared first and is the broadest in A Father, a Son and the CIA scope. He details the prehistory of the MK-Ultra project­ by Harvey Weinstein best known for disseminating the hallucinogenic drug LSD James Lorimer & Company, Toronto, 1988 to an unwitting population of young people-and traces the 265 pages, hardbound, $24.95 Canadian dollars attempts by the wartime Office of Strategic Services (OSS), and then by the CIA, to find the "philosopher's stone" of brainwashing, the magic elixir which would give them total control over an unwitting subject. LSD was only one of the drugs in their pharmacopoeia, which included amphet­ The Search for the ManchurianCandidate , amines, truth serums, standard narcotics, cocaine, and barbi­ the CIA and Mind Control: The Secret turates. Historyof the Behavioral Sciences The efffort to create a "Manchurian candidate" who could by John Marks Dell Publishing Company, New York, be made to act at the behest of his CIA controllers, encom­ 1979, reprinted August passed more than merely experimentation with drugs or hyp­ ' 1988 264 pages, paperbound, $4.95 nosis, and included the use of various psychological tech­ niques to make the victim malleable. Weinstein and Thomas

EIR October 6, 1989 Feature 27 also provide the broader context. Dr. Cameron's specialty by the enemy. All of these goals made the possibilities of was to reduce his victims to a state of infantile regression as psychological control attractive to the intelligence communi­ a prelude to the attempt to reprogram the hapless individual. ty; but it is a serious distortionto view such projects narrowly Weinstein's book has an additional merit, because it is the as "CIA" activities. poignant story of how his own family was grievously injured The truth is that figures such as Allen Dulles, W. Averell by Cameron and the CIA. Harriman, Victor Rothschild, Margaret Mead, her husband The story which these books tell is given a historical Gregory Bateson, and Aldous Huxley were at the center setting, but as the authors indicate, while the particular proj­ of deception operations' run by the British, with American ects which they describe areno longer ongoing, there is every cooperation, from the . Second World War on. Ostensibly reason to believe that they have been replaced by others the wartime black operations were intended to lower enemy equally evil, if different. morale; in reality they were directed against the underground When President Nixon fired CIA chief Richard Helms at operations of Gen. Charles de Gaulle and resistance fighters the beginning of his second administration, one phase of the in the occupied countries, and in Germany itself. Anglo­ CIA's mind-control project came to an end as well. While American intelligence operations were intended to sow the many of the files were deliberately destroyed, author John seeds which would shape the postwar world in a direction Marks was given 16,000 pages of documents released by the which would be agreeable to a certain section of the European CIA according to the mandate of the Freedom of Information and American oligarchies. Act. Names and other information were blacked out, but Winston Churchill was determined that any republican despite this, through cross-referencing and interviews with sentiments expressed by Franklin Roosevelt-as quoted by some of the participants in the project, he was able to piece his son Elliot Roosevelt-or represented by some of the together a part of the story. "wildmen" in the OSS, would "die a-borning." His aim, which was all too well realized, was to preserve the British What was MK-Ultra? Empire, even if in the form of a Commonwealth, and sup­ The CIA-sponsored LSD experiments of the 1950s and press republican tendencies wherever. 1960s did not "go out of control ." Nor were the likes of Allen The rock-drug-counterculture was not an accidental cre­ Dulles and Richard Helms waging a patriotic war against the ation spun off from the MK-Ultra project, as these three brainwashing tools of communism. books contend: It was the MK-Ultra project. All else was Where all three books fall short is in their treatment of either a pretext or a sideline. This is documented in the mate­ MK-Ultra and associated programs as creations of the spy rial cited by Weinstein, Thomas, and Marks. Nor did the community itself, in their attribution of self-motivation and CIA act alone. British intelligence was a full participant self-direction to the CIA. In this sense, despite the excellent through the Tavistock Institute, which ran social profiles on detailed accounts in each of the books, they amount to disin­ the Nazis and on various national cultures during and after the formation, perhaps despite the best efforts of their authors. war, and which supplied the personnel who in all probability The CIA's first defense of its various projects to develop brainwashed Rudolph Hess. the art of brainwashing, was the claim that the devices which they were exploring-the drugs, shock treatment, etc.­ Allen Dulles and MK-Ultra were already known and used by the Soviets and Chinese, MK-Ultra, practically understood, may be said to have and were being studied by the Nazis before them. Marks, had its beginning when Allen W. Dulles met with Carl Jung however, shows that early on, Western intelligence had at the Harvard University Tercentenary Conference in 1936. learned through debriefings, that the Soviets and Chinese Jung at that time was president of the International Medical were using brutal, but relatively standard and unsophisticat­ Society of Psychotherapy, headquartered in Zurich. This was ed, interrogation techniques, which involved placing prison­ the beginning of a close collaboration between spymaster ers in solitary confinement, preventing them from sleeping, Dulles and Jung, whose occultist theories of racial memory humiliating them and so on. The rationale for continuing were the psychiatric equivalent of Nazi ideology. MK-Ultra became: Suppose in the future the communists During World War II, Allen Dulles was deployed to develop these tools, we must be prepared to defend our­ Berne, Switzerland as part of the American Legation. Dulles selves. Obviously, the appeal of having one's own Manchu­ was chief of the OSS mission there, and made no secret about rian candidate was great ! it. During those war years , Dulles was shaping policy for In the three books, there are accounts of how members the postwar era. Among his preoccupations, according to of the intelligence community-from the Second World War favorable biographers, were the methods used in what later on-were involved in the search for ways to play the spy became known as "brainwashing," an interest said to have game more effectively: how to force information from the been piqued by the 1937 and 1938 forced confessions in the enemy, how to control one's own agent, and how to prevent Moscow purge trials. one's own agent from spilling the beans if he or she is caught During the war years in Switzerland, Dulles renewed his

28 Feature EIR October 6, 1989 contact with Carl Jung. He also maintained contact with a ents. John Lennon of the Beatles took a three-week LSD group of American psychiatrists including the later infamous "trip" which reduced him to walking on all fours. His brain mind butcher Dr. Ewen Cameron of McGill University. Al­ was so "fried" that he lost the capacity to hallucinate while len Dulles also made the friendship of leading chemists of on the drug. the Sandoz drug and chemical company, including Dr. Albett According to Barbara Honegger, in her 1989 book Octo­ Hoffman, the creator of LSD. ber Surprise, the Bureau of Prisons Federal Medical Center Dulles's contact with American psychiatrists was in Rochester Minnesota has done "rehabilitation" research, through the Military Mobilization Committee of the Ameri­ using a drug called haloperidol, reportedly used by the KGB can Psychiatric Association. Dr. Cameron, whom Dulles to destroy memory. would meet personally after the war, joined the committee In November 1953, CIA experimenters decided to test shortly after Pearl Harbor. Thompson describes Dulles role LSD on scientists who were working at the Army Chemical in Journey into Madness, as follows: Corps' Special Operations Division (SOD) at Fort Detrick, "While Allen Dulles brilliantly manipulated firstthe Ger­ in Frederick, Maryland. Presumably the choice of subject man generals and then Admiral Canaris' s Abwehr from his was dictated by the fact that the Army scientists were working office in Switzerland, he had received invaluable insights in a relatedfie ld, and had a high security clearance. On Nov. into the..enemy's mentality from Dr. Cameron and other psy­ 18, 1953 a group was invited to a log cabin mountain retreat chiatrists who were members of an ultra-secret committee in western Maryland, ostensibly for a three-day seminar to meeting regularly in the offices of the American Psychiatric brainstorm together on biological weapons. One LSD sub­ Association in Washington to assess the changing attitudes ject, Dr. Frank Olson became seriously deranged as a result of Germany and its leaders. Dr. Cameron's insights into the of the experience and committed suicide. The affair was German mentality made it easier for Dulles to have manipu­ covered up for two decades and the testing went on. lated Himmler's Gestapo toward overthrowing Hitler, and A similar case occurred in 1953, when Harold Blauer, a helped him to use German liberals to spread hysteria among professional tennis player who was suffering from depres­ the population. Dr. Cameron had synthesized the techniques sion, was asked to volunteer for a new "treatment." This in documents like Mass Hysteria in a War Situation. Some "treatment" was underwritten by the Army's Chemical Cen­ of Dr. Cameron's suggestions had struck Dulles as original ter, which supplied hired psychiatrists working at the New and far-reaching-such as his proposal that after the war each York State Psychiatric Institute to test various derivatives of s�rviving German over the age of 12 should receive a short the hallucinogen mescaline for toxicity. Blauer was coerced course of electroshock treatment to burn out any remaining into continuing with the project, despite his objections that vestige of Nazism." the tests were making him ill. He died of convulsions during the last test to which he was subjected. LSD CIA money was conduited through the Geschichte Foun­ LSD was discovered by Dr. Albert Hoffman, the Swiss dation and the Josiah Macy Foundation for various of these chemist, on April 16, 1943 . He was making a witch's brew research projects. Student volunteers were "turned on" to of the fungus ergot, which attacks rye. For centuries, the drugs through their teachers. Harvard University, from power of its toxic by-products to drive men mad was well which Timothy Leary came, was a leader in the effort, and known. Reportedly he was studying ergot's effects on blood the Veterans Hospital at Palo Alto, California recruited circulation. In any event he accidentally ingested the d-lyser­ counterculture hero Ken Kesey in 1960. In 1963, John len­ gic acid diethlylamide (LSD) which he had refinedand found non was slipped LSD several times. Finally, he began to use that with a dose as small as 11100,000 of an ounce he was it deliberately, and modeled his trips according to a script thrown into a quasi-psychotic state. written by Leary. By 1965, it was impossible to function as By 1953, the drug was in circulation among the intelli­ a rock star without being high on LSD, as John Phillips, gence and psychiatric community, all of whom were them­ founder of the Mamas and Papas, wrote in his autobiography. selves "tripping." It was also being administered to unwitting victims, in order to study how they would react. Dr. Ewen Cameron At Lexington, Kentucky, prisoners were given the drugs While many psychiatrists were involved in aspects of the of their choice if they allowed themselves to be used as test CIA's brainwashing program, Dr. Donald Ewen Cameron subjects in the psychedelic experi!pents. Seven men were was one of those who actually anticipated the practises of kept on LSD for a continuous 77 days. No followup studies Nazi doctors in Germany and CIA doctors in the postwar exist about the effects upon them, but counterculture writer period. While Huxley, Mead, and Bateson were responsible Hunter Thompson described a three-day "trip" as creating a for creating the policies that gave birth to the rock-drug count­ feeling that one's brain was boiling away in the sun, with erculture Cameron was a hard-core brainwasher. ' ones nerves wrapping around enormous barbed wire forts, He was simultaneously president of the World, Ameri­ and the remaining faculties reduced to their reptilian anteced- can, and Canadian psychiatric societies, and he created the

EIR October 6, 1989 Feature 29 prestigious Allan Institute in Montreal-financed by the Institute and its American counterparts to destroy German Rockefellers-where he pioneered in using combinations of culture-as typified by Friedrich Schiller and Ludwig van drugs, sleep therapy and electroshock in experiments on his Beethoven-which prepared the way for the more ambitious unwitting patients. Ironically, many of his victims paid for "New Age" project of the counterculture. their "treatment." They were in most cases not psychotic Cameron participated in a team effort which included to begin with, although many ended up hopelessly so after leading Tavistock profiler and brainwasher John Rawlings undergoing Cameron's "treatment." Despite his fascist views Rees, as well as three Sqviet psychologists and Britain's Lord on eugenics and racial purification, Cameron did not discrim­ Moran, Winston Churchill's private physician. Allen Dulles inate in his choice of victim, such that one was the wife of a had his own slant on ·the matter. He wanted Cameron to Canadian parliamentarian, another a successful businessman physically examine Hess, because he believed the man stand­ and so on. ing trial was a substitute provided by the British. Donald Ewen Cameron was born in Bridge of Allan, Seven months before he went to Nuremberg, Cameron Scotland, in 190 I. He was the son of a Presbyterian minister, wrote a paper which established his credentials: It was enti­ and received a diploma in psychological medicine in 1925. tled, "The Social Reorganization of Germany." In it, he ex­ He trained at the Royal Mental Hospital in Glasgow, under amined the interaction between the culture of Germany and Sir David Henderson, who had himself been taught by the character patterns of individuals. His thesis focused on Adolph Meyer. While he is not identifiedwith the Tavistock the need for a major "transformation of the existing cultural Institute, a number of articles that he wrote, particularly those organization in the postwar period." He talked about the need profilingthe German population, fall directly within the orbit for status, worship of order, regimentation, authoritarian of work sponsored by Tavistock. In 1926, he left for America leadership, and fear of other countries which typified, ac­ to work with Meyer at the Phipps Clinic at Johns Hopkins cording to him, German culture. Hospital in Baltimore, where Cameron held the Henderson Cameron particularly targeted German youth for attack. research scholarship in psychiatry . He then moved on to the He speculated that 30 years thence, those who had been Burghoelzli Clinic in Switzerland, where he studied under adolescents during the Third Reich, would represent the Hans W. Meier, the successor of Eugen Bleuler. Also in greatest threat to world peace. In later papers he suggested Switzerland was A.T. Mathers, from Manitoba, Canada who that all adolescents be given a sample of his shock-regression attracted Cameron to emigrate to Manitoba, in the 1920s. It therapy as a way of reprogramming them. is questionable why Cameron would have chosen such an out-of-the-way location, unless he wished freedom to do The counterculture in embryo human experimentation on the immigrant population of Man­ Six weeks after returning from Nuremberg he wrote a itoba. One would assume that he had some contact with the paper, "Nuremberg and Its Significance," in which he con­ Jung circle in Switzerland, but this is not documented. cluded: "It is not simply against future conspiracies of evil In 1936, he moved to Massachusetts, where he became men which we have to guard ourselves but it is against our­ director of the research division at Worcester State Hospital, selves, against weaknesses and faults in our own social or�er, and from 1939 to 1943 he was a professor of neurology and in our own ways of living against which we have to be on psychiatry at Albany Medical College in Albany, New York continual guard." and at the Russell Sage School of Nursing, which was also At this time he began the development of a series of in the Albany area. In 1943, he was invited to McGill Univer­ concepts which would become more familiar in the writings sity in Montreal , and received a grant from the Rockefeller of Dr. Benjamin Spock and in the development of the new - Foundation and other sources of funding to found the Allan idea of the validity of 'a youth culture, which would be im­ Memorial Institute. mune to the values and guidance of the adult world. In a 1946 paper, "Frontiers of Social Psychiatry ," Cam­ The Nuremberg trials eron concluded that social psychiatry must contribute to de­ Ironically-since he violated every one of the humanitar­ Veloping methods of social control over its citizens in order ian precepts established there-Cameron was directly in­ to direct "the transmission of attitudes, beliefs , and ways volved in giving testimony at the Nuremberg trials. He was of managing life." He wrote: "We now recognize that the one of three North American psychiatrists invited in 1945 , transmission to children, and also to people at all ages of to evaluate the sanity of Rudolph Hess. beliefs, attitudes, and customs which produce unnecessary The choice of Cameron for such a prestigious assignment anxiety, guilt, feelings of inadequacy and hostility, must was obviously not fortuitous, because he was already in­ come to an end as a matter of public health and individual volved in t.heAnglo-So viet project to destroy German classi­ well-being. We have recognized that many of these damag­ cal culture, by pretending that Hitler and the Nazi Party were ing ways of being are transmitted by parents who themselves an outgrowth of the Prussian republicantra dition, rather than suffer from them. We also recognize the part played by social an attack against it. It was the operation by the Tavistock institutions interested in perpetuating themselves." In this

30 Feature EIR October 6, 1989 paper he noted · that children have "certain psychological Cameron described this as "depatterning," which was to rights" which include the right "to protection against indoctri­ be followed by reprogramming when Cameron fe lt that his nation with damaging, outmoded attitudes, against the im­ patient had sufficiently regressed. This was done by playing plantation of taboos and inhibitions" by their parents. " a tape with one message repetitively for up to 16 ho�rs a day . "All of us have seen the transmission down the genera­ He would firstplay a negative message, and then after several tions of insecurity, chronic anxiety, frigidity, feelings of weeks, he would substitute a "positive" command. He kept inad�quacy. We have at present no means whatsoever of one person in what he c\llled "psychic-driving" for as long stopping this. It could be stopped, however, by remodelling as 101 days. This work was contracted and paid for by the and expanding our present concepts of suitability for mar­ CIA, which was interested in its application in reprogram­ riage, of quarantine of individuals suffering from diseases ming individuals. likely to spread to others." In "Life is for the Living," pub­ lished in 1948, Cameron wrote about those influenced by the Applications to the counterculture Nazis: "If we can succeed in inventing means of changing Cameron's studies of the use of taped messages, com­ their attitudes and beliefs , we shall findour selves in posses­ bined with sensory deprivation, the use of drugs and so on, sion of measures which, if wisely used, may be employed in on his patient-victims occurred in the 1950s. Patients were freeing ourselves from attitudes and beliefs in other fields forced to hear these messages, which were played to them which have greatly contributed to the instability of our period through earphones which they could not remove. Cameron by their propensity for holding up progress." further refined his technique by introducing headphones so Cameron became an American citizen in 1942. In 1964, that the voices would appear to be coming from inside the he left Montreal and returned to Albany, where he became patient's head. He then developed filtered recordings which the director of the Psychiatry and Aging Research Laboratory would emphasize ultra high or low sounds at extremes in at the Veterans Administration Hospital and at Albany Medi­ volume . He would space the sounds, repeat them, use ech­ cal College. oes, and ultimately multiply a voice, to add weight to the message. Cameron experimented with echo effects, and dif­ Cameron's method ferent use of sound-tracks which certainly predated modem Electroconvulsive shock therapy was developed in Italy recording techniques. It is not a great stretch of the imagina­ under the fascist Mussolini regime. In 1938 Dr. Ugo Cerletti tion to suppose that the use of subliminal messages now applied the first electroshock treatment to a mentally ill pa­ found on rock-music records is a technique adapted from tient, Umberto Castelli. It was used extensively in the post­ Cameron's work. It should be noted here that Cameron was war period, before the development of tranquilizers, but nor­ all too successful in reducing his victims to a regressed state . mally shocks would be given only a few times per week at 110 volts. Aldous Huxley and MK-Ultra Cameron used a method developed in England, the Page­ The Esalen Institute at Big Sur, California, was built up Russell method, which called for the daily administering of during the 1960s by Michael Murphy, on a property owned a series of shocks to a patient: an initial one-second shock, by his family. Esalen has been a center for the dissemination followed by five to nine additional shocks, administered of psychedelics, New Age philosophy, and "humanist" psy­ while the patient was in seizure. chology into the general culture. Author Murphycredits Al­ Cameron upped the voltage to 150 volts and increased dous Huxley with being a prime catalyst in encouraging him the number of applications of the shock treatment from one to launch the institute. Gregory Bateson, Huxley, Ken Kes­ to two or three times per day. He coupled the administration ey, Timothy Leary, Alan Watts, Allen Ginzburg, Fritz PerIs, of the shocks with sleep therapy, induced by forcing the Abraham Maslow, and other gurus were frequent lecturers patient to ingest heavy doses of drugs. Typically, patients there. Charles Manson was known to have visited Esalen, suffered amnesia (sometimes permanently) and at least for a which was also frequented by his victims Sharon Tate and while would lose the ability to control their bodily functions. Abigail Folger. Aldous Huxley's vision of a drug-sodden In some cases, he induced so great a regression in the patient New Age, in which the population is completely manipulated that the ability to speak was lost. One patient was finally by social-science controllers, was laid out in his book Brave lobotomized, and others were so damaged that they ended New World. their lives in state institutions for the hopelessly insane. Despite the worrying degree to which that vision has Cameron also used sensory deprivation by isolating pa­ been realized, Huxley's role in MK-Ultra has generally been tients, generally for a 35-day period, but once for as long as hidden behind a cultivated academic and religious patina, 65 days. Normally, an individual could only sustain sensory even though his advocacy of hallucinogenic drugs is ac­ deprivation for a one-to-two day period, and student volun­ knowledged. Huxley was closely connected to Capt. Albert teers were never kept against their will or for longer than six Hubbard, who was an important operative for the OSS during days, for fear of doing them irreparable psychic damage. the Second W orId War.

EIR October 6, 1989 Feature 31 Captain Alfred Hubbard funded through a CIA cut-out, the Society for the Study of Alfred Hubbard in fact was the person who made the Human Ecology, the same society funding Dr. Cameron's mescaline available to Huxley for his second mescaline brain butchery and electroshock therapy-often combined "trip." Prior to the Japanese attack on Pearl Har.bor, Hubbard with drugs-at McGill University. It was Osmond who in was responsible for an extremely sensitive covert operation 1957 coined the term "psychedelics," meaning "mind mani­ that involved smuggling weapons and war materiel to Great festing." His purpose, shared with Huxley, was to replace Britain via Vancouver, British Columbia, including destroy­ the term psychotomimetic, which implied experimentally in­ ers and airplanes. While living in Vancouver, Hubbard be­ duced psychosis. Osmond and Aaranson co-authored an an­ came a Canadian citizen as part of his cover for the OSS, and thology entitled Psychedelics. according to his own report, he personally handled several million dollars, filtered by the OSS through the American After MK-Ultra consulate to finance Icovert operations in Europe. By the 1970s, LSD was a fixed part of Western "youth By 1951 Hubbard was a millionaire, having invested culture" and the CIA was ready to move onto the formation in uranium mines. That same year, Captain Hubbard was of Satanic cults. This was run out of the CIA Office of Re­ reportedly introduced to LSD by Dr. Ronald Sandison of search and Development (ORD), but the CIA men introduced Great Britain. Dr. Sandison would establish the first LSD themselves as researchers from the Scientific Engineering clinic open to the public in 1953, using low-dose techniques. Institute. Clairvoyants and astrologers were hired. In May of Sandison's approach would be replicated throughout Europe 1971 there were three astrologers on the payroll. Among in the next few years . Hubbard became an enthusiast for other things their job was forecasting. LSD, writing about his mystical experiences. In 1951, he At the same time, Operation Often was launched to go began buying vast quantities of LSD, which he introduced deeper into demonology. The CIA behaviorists hired Sybil into the elite social circles in which he traveled. He Leek, a Houston sorceress, and they gave a grant to the maintained close contact with the CIA, which closely moni­ University of South Carolina to establish a course in sorcery. tored all LSD supplies. Two hundred and fity students enrolled. The scientists of Hubbard become deputy chief of security at the Los Ve­ Operation Often studied carefully the results of classes devot­ gas Tropicana Hotel. He was a close friend of FBI director ed to "fertility rites and initiation rites and raising the dead." J. Edgar Hoover and engaged in undercover work for a num­ At Harvard, students and faculty concentrated their atten­ ber of governmentagenci es, including the Federal Narcotics tion on the Process Church of the Final Judgment, a Satanic Bureau and the Food and Drug Administration, both of which group to which was connected former Boston U.S. Attorney were assisting the CIA's drug programs. John Markham, prosecutor in two trials against Lyndon La­ Rouche. In an earlier phase, the CIA had studied the suscepti­ Dr. Humphrey Osmond bility of students who were undergoing sensory deprivation, In the 1950s, Dr. Humphrey Osmond was a young British to occultist propaganda, and they found that some became psychiatrist working with mescaline at WeyburnHospital in occultists and remained so. Saskatchewan, Canada. Osmond's work in Saskatchewan By the end of the decade, the emphasis shifted to depro­ ran parallel to Dr. Cameron's in Montreal and Hubbard's in gramming. By this time a proliferation of occult groups and Vancouver. While Osmond denied CIA sponsorship, he did kook groups had sprung up. Some used drugs, others preyed not deny that the CIA closely monitored his work with the upon young people who had been through the drug culture mentally ill. In 1952 Osmond had drawn attention to the and were looking for moorings. structural similarity between the mescaline and adrenaline The same psychiatrists who had pioneered the MK-Ultra molecules, implying that schizophrenia might be a form of project, and their students, now became employed by groups self-intoxication caused by the body mistakenly producing such as the American Family Foundation (AFF). A case in its own hallucinogenic compounds. That work had attracted point is Dr. Louis Jolyon West, who participated in MK­ the attention of Huxley, and in 1953, Osmond flew to Los Ultra-funded research at the University of Oklahoma, ac­ Angeles with a supply of mescaline. It was from him that cording to Senate testimony. Huxley first sampled the drug. In the 1950s, Dr. Osmond worked with Alfred Hubbard Dr. Jolly West to set up alcoholism programs using high-dose LSD therapy, West is sometimes laughed off as an MK- Ultra researcher an approach Hubbard "pioneered.'� The same idea was then who couldn't shoot straight. Attempting to chemically pro­ applied to juvenile delinquents, narcotics addicts, and the duce the state of a bull elephant in rut, Jolly injected it with mentally ill. a huge dose of LSD-25. The poor beast fell into a stupor and Osmond left Canada in 1963 and joined a group of re­ died. searchers at the Princeton Neuropsychiatric Institute. There Huxley's friend Dr. West was the head ofthe Department Osmond worked with Bernard Aaranson, whose studies were of Psychiatry at the University of Oklahoma during the 1950s

32 Feature EIR October 6, 1989 and early 19608, doing research on LSD hypnosis and "the suggestible state. This process, which he called abreaction, psychology of dissociated states" for the CIA. Huxley was frequently resulted in shaking the soldiers free from obses­ quite helpful to him. Huxley suggested to Dr. West during sions which they had developed as a result of battle strain. an MK-Ultra experiment that West hypnotize his subjects He sought a theoretical basis for this in the work of the Soviet prior to administering LSD in order to give them "post-hyp­ behaviorist psychologist Ivan Pavlov. ' notic suggestions aimed at orienting the drug-induced experi­ Pavlov had observed that when dogs were severely ence in some desired direction." stressed they would frequently forget recently learned skills, Such work is of particular interest given that in 1964 Dr. but they would easily pick up new habits. Sargant generalized West took part in the coverup of the Kennedy assassination. that sensory overload of the brain would similarly render a West was called upon by the government to examine Jack human highly suggestible. This led him to study primitive Ruby, whom West declared to be in a "paranoid state mani­ ceremonies such as voodoo, which would place participants fested by delusions, visual and auditory hallucinations, and in a trance-like state. suicidal impulses." West said that Ruby wasn't faking be­ His studies of brainwashing techniques involved travels cause a faker would have asserted that he was indeed mentally to Haiti and Africa, where he developed parallels between ill, while Ruby insisted that he was healthy. primitive witchcraft ceremonies and rock music festivals, During the "summer of love" in 1967, West rented an which he described in his books. He also looked at fundamen­ apartment in the Haight-Ashbury district of San Francisco to talist religious ceremonies from the same perspective. In his study the "hippies," certainly a by-product of his work. book Battle fo r the Mind, he developed various examples. After moving to Los Angeles, Dr. West became chairman Underscoring the message with a picture of the Beatles bear­ of the department of psychiatry at the University of California ing the caption "Beatle Possession," he writes: "Any method at Los Angeles and director of its Neuropsychiatric Institute. which induces states of excitement leading to a suitable de­ In the 1970s West becameinfamous for his plans to create a gree of exhaustion and consequent alteration in brain function "Center for the Study and Reduction of Violence." Backed can work miracles on its own." to the h�lt by Gov. Ronald Reagan, he proposed a Brave New Sargant concluded his book with an honest admission of World monitoring system for criminals and those predicted his repudiation of the truth of Christianity (or Judaism). For to engage in violent behavior, including "pre-delinquent him there is no natural law; all truth is relative, and the gods children." (not God) are the creation of man. Today he is a leading member of the American Family He writes: "Perhaps we must therefore conclude that it is Foundation. Most recently, these same psychiatrists and so­ man who has created the gods and made them in his image, cial scientists have been running cover for Satanists by deny­ reflecting his varying imaginings, aspirations and fears , just ing the existence of Satanic child abuse. The FBI's "expert" as he, and not some mysterious fate or necessity or abstract on cults, Kenneth Lanning, is notorious in this regard for his historical dynamic, has created his varying political creeds statement that "more people have been killed in the name of and moral codes. And yet we need faith . Christ than in the name of Satan." "Without faith of some sort living becomes extraordinari­ ly difficult. We do not live by reason alone and we have to Satanists take all sorts of people and assumptions on trust. We need The ideology of these brainwashers is truly Satanic. They confidence in ourselves, in the value of the work we do , in believe themselves to be above good and evil. They would certain people and standards. We cannot, or most of us can­ reduce every man, woman, and child to the condition of a not, forever be doubting and questioning and withholding beast to be conditioned. It is not that they reject the truth that finaljudgm ent on everything and everyone. Most of us quite every human being has an immortal soul, but they would evidently need the support of some general religious, politi­ knowingly destroy that soul. Surely, whether or not they cal or social framework of faith, however bizarre or danger­ consciously submit their being to Satan, these men are truly ous a particular belief-system may be. . . . his instruments. "In the future , the conquest and control of man's mind is Dr. William Sargant, a British psychiatrist with Tavis­ going to be a far more important matter for us than all the tock, was an associate of Cameron. He claimed to disagree development of bigger and better nuclear weapons, and it is with some of the more brutal aspects of Cameron's treatment essential that we learn all we can about how the brain works of patients, yet he himself had pioneered during and after the and how human beings can be psychologically Second World War, a series of seminal studies on brainwash­ coerced ...." ing. His firstwork involved shell-shocked troops . He would The exposure of how the secret governmenthas and con­ give them "truth serums" and then force them to relive trau­ tinues to dabble in mind control is extremely valuable, and matic experiences. each of the three books should be read. They are painful He found that if they were sufficiently agitated, a period but they are informative, bearing in mind the limitations in of calm would fo llow, during which they would be in a viewpoint mentioned above.

EIR October 6, 1989 Feature 33 30 Ye ars of Menticide : Part I

From MK-Ultra brainwas.hing to the American Family Foundation In 1956, a young Air Force major named Dr. Louis Jolyon One of the "therapeutic" approaches taken by the ARC West published an article in the American Journal of Psychi­ toward their patients, was the encouragement of participation atrywith the unambiguous title, "Brainwashing." Dr. West's in cults. credentials in that burgeoning fieldwere impressive. As one In 1956, Davis was moving on to bigger and better of the experimental researchers at the Air Force Office of things-a post as chief rabbi at the Indianapolis Hebrew Scientific Research, he was part of a team of psychiatrists Congregation, the largest Reform synagogue in the state. His carrying out experiments with LSD-25 and other drugs, un­ work as a community-based patron of mind-bending cults der the patronage of the CIA. His most recent claim to fame would continue to grow. had been his killing of an elephant with a massive dose of Indianapolis is a city whose social welfare and communi­ LSD, a feat he reportedly documented with photographs that ty health structure is dominated by the Eli Lilly Corporation, he carried around with him. which at the time was a key element ofthe secret MK-Ultra The nature of West's activities back then was known to work, providing LSD to the CIA out of its pharmaceutical only a handful of people in the most secret corridors of the labs. Davis immediately became a fixture of the"ecumenical U.S. and British governments. For most of his colleagues, activist" community there, becoming an intimate collabora­ West was a medical doctor, working in Oklahoma City at tor of the Episcopal Bishop Paul Moore. Moore would later the Veterans Administration hospital and holding consulting move on to the Episcopal Cathedral of St. John the Divine positions with the University of Oklahoma and the city gov­ in New York City, wherehe would emerge as a major patron ernment of Oklahoma City. Only 20 years later, when con­ of the New Age movement, hosting such outfits as the Lucis gressional investigators discovered the existence of MK-Ul­ Trust, Gaia, and the Temple of Understanding (see EIR , Feb. tra and other mind-control projects, would West's actual 10, 1989, "The Lucis Trust: Satanism and the new world covert career be revealed. And even then, the story would be order"). far from complete. Today, "Jolly" West is as involved as ever in the covert side of mind control. Jonestown, and other projects At about the same time that Dr. West was stalking ele­ One of the most infamous projects on which Davis and phants in the jungles of Oklahoma, Rabbi Maurice Davis was Moore teamed up during their stay in Indianapolis was the finishingup a five-yearstay in Lexington, Kentucky, where, sponsorship of the career of cult leader Rev. Jim Jones and in addition to running a Reform Jewish congregation, he was his People's Temple. Not only did Davis personally intercede a chaplain with the U.S. Public Health Service Hospital for with the city governmentto have Jones installed on the city's drug addicts. The Addiction Research Center (ARC) at Lex­ Public Housing Commission; Davis also got Jones his first ington, run by Dr. Harris Isbell, was at the time one of the church building. main recipients of covert MK-Ultra funds to carry out large­ Dr. West and Rabbi Davis never abandoned their secret scale brainwashing and mind-control experiments on the cap­ MK-Ultra work. By the mid-1970s, their paths crossed, as tive population. Through his chaplain's post at the facility, both men became fixturesin a nationwide network ostensibly Davis was reportedly a key player in the MK-Ultra work that committed to helping families to rescue their children who went on at Lexington. According to one of Dr. Isbell's staff had been recruited into religious cults. If the 1950s was the doctors, Sherman Kieffer, Davis was a bridge between the decade in which brainwashing was the buzzword in the secret community and the hospital wards, where "patients" were back rooms of the Anglo-American intelligence community, treated to heavy doses of drugs, interspersed with electro­ the 1970s was the decade in which brainwashing became a shock and induced sleep: "Rabbi Davis as chaplain func­ subject of near-soap opera fascination among the general tioned as a representative of the outside world, projecting the public. Between the 1974 kidnaping and brainwashing of outside world as 'warm and caring.' " heiress Patty Hearst by the terrorist Symbionese Liberation

34 Feature EIR October 6, 1989 Army and the 1978 mass suicides of the People's Temple in covert projects, underscores the point that the "anti-cult" Jonestown, Guyana, parents all over America were worrying networks were a continuation of the very same experiments. whether their son or daughter would be next. AFF and CAN adopted the euphemistic term "depro­ In the immediate aftermath of Jonestown, the very medi­ gramming" to describe their activities. Ironically, the term cal experimenters, psychiatric shock-troops, and comm�nity "deprogramming" likely derives from one of the most primi­ mental health operators who had crafted the fineart of brain­ tive and brutal forms of brainwashing developed under the washing in the 1950s and had fathered the counterculture and MK-Ultra funding umbrella, "depatterning." the proliferation of irrationalist cults in the 1960s, surfaced Developed at the Allan Memorial Institute in Montreal, a nationwide series of organizations bearing such alluring Canada by Dr. Ewen Cameron, an intimate collaborator of titles as the American Family Foundation (AFF), the Cult Tavistock Institute brainwashers Dr. John Rawlings Rees Awareness Network (CAN), Citizens Engaged in Reuniting and Dr. William Sargant, "depatterning" initially involved Families (CERF), and the InternationalFoundation for Indi­ the use of drugs, sleep therapy, electro-convulsive shock vidual Freedom (IFIF). treatments, and sensory deprivation torture to break patients It appears that the same secret government funding con­ of their behavior patternsand beliefs. Cameron's efforts were duits that had been used to fuel the MK-Ultra effortswere back so heavy-handed and so incompetent that the CIA wound up at it ;:tgain, funding the army oferstwhile "anti-cult" networks . paying out millions of dollars to victims of his "depatterning" Back in the mid-1950s, an Air Force lieutenant colonel named lab to cover up the full horror story . Other more "reasonable" James Monroe, on loan to the CIA, had set up the Society for brainwashers, like Sargant, argued in books bearing such the Study of Human Ecology in New York City as the principal titles as Battlefor the Mind and The Mind Possessed, that the money conduit for the scores of hospital- and university-based same results could be achieved by replicating the process of drug experiments conducted under MK-Ultra. religious conversions-without having to get into the kinds By the 1970s, the money-laundering infrastructure had of heavy drug and electro-shock techniques that have only been built up around a handful of tax exempt "philanthropic" limited applications in an institutional setting. family foundations. When AFF got offthe ground in 1979, To prove that point, under AFF and CAN, armies of its principal patrons were the small New York City-based kidnapers were sent out into the field to profile both the Bodman Foundation and the Scaife Family Foundation. ·By distraught parents and the cult recruits. Operating under what the early 1980s, the Anti-Defamation League of B'nai one longtime deprogrammer characterized as a "license to B'rith, longtime sponsors of Rabbi Davis, had gotten into kidnap" from witting local, state, and federal law enforce­ the act as well. The Swig Foundation of San Francisco, run ment agencies, these kidnaping teams operated with impuni­ by ADL national committeeman Marvin Swig, joined the ty from coast to coast throughout much of the 1980s. elite list of AFF contributors. Given this new phase of the covert mind control war, a The Bodman Foundation counted among its small list of certain degree of operational control apparently was shifted recipients some of the key centers of New Age and occult from the CIA to the FBI. The FBI's Training Academy at activity, including the Cathedral of St. John the Divine of Quantico, Virginia established a fulltime staff of behavioral Bishop Paul Moore, the Temple of Understanding, and the scientists. And at the nearby University of Virginia, an Insti­ Henry Street Settlement House. Leo Cherne's International tute of Law, Psychiatry , and Public Policy began receiving Rescue Committee, a longstanding covert arm of the social funds of the Criminal Justice Institute, to set up as a reservoir democratic wing of the CIA, also enjoyed Bodman's largesse. of professional forensic psychiatric personnel, many veter­ The Scaife Foundation, run by Richard Mellon Scaife, ans of the MK-Ultra wars (see article, page 64, for the story is another well-known covertconduit ofspecial funds, linked of how this institute figures in an attempt to subject Michael to the Project Democracy apparatus. During the heyday of Billington, an associate of Lyndon LaRouche who is current­ MK-Ultra, another heir of the Mellon family fortune, Billy ly on trial in Virginia as a political dissident, to Soviet-style Mellon Hitchcock, had been a major funder of LSD experi­ psychiatric abuses). mentation and manufacturing. Up until last year, Dr. Park Elliot Deitz, formerly of the MK-Ultra-linked Maclean Hospital and the Bridgewater License to kidnap State Institution for the Criminally Insane in Massachusetts, In the post-Jonestown climate, the American Family was the chief guru at the institute. Deitz was apparently a Foundation, with "Jolly" West on its board of directors, and liaison between the FBI and the CAN and AFF. In at least the Cult Awareness Network, linked to Rabbi Davis, became one instance, CAN-sponsored kidnaper-deprogrammer Ken clearinghouses for a nationwide network of kidnapers , target­ Connor was deployed through Deitz in an arm 's-length oper­ ing members of what are in some cases genuinely dangerous ation run for Quantico. cults for kidnapings and brainwashing. The fact that these Part II will take up the question of why the American dangerous cults, such as the Unification Church, Scientolo­ Family Foundation really hates LaRouche, and how it has gy, and EST, were all outgrowths of MK-Ultra and related deployed against his political movement.

EIR October 6, 1989 Feature 35 Moscow delivers 'pre-war' threat to We st Gennany

by Gabriele Liebig

Eduard Shevardnadze, the "peace-loving" Soviet Foreign to make Western Europe-andespe cially West Germany­ Minister, delivered an astonishingly warlike tirade to the cringe in fear, while the Unite<:( States is still inundated with United Nations General Assembly on Sept. 26, warning of its cynical babblings of "peace." the rebirth of "Nazism" and "revanchism" in West Germany, In the view of one member of the Baltic opposition with and promising the direst of consequences for those nationalist whom EIR spoke, Shevard�adze's assault on the nationalist movements within the Soviet empire which would dare assert movements within the Soviet Union are even more ominous their independence, or for anyone who would dare support than the infamous Soviet COmJilunistParty Central Commit­ them. tee declaration of Aug. 26, which warned that the "very Shevardnadze's threats-completely blacked out of the existence" of the Baltic nations was now at risk. The Baltic news media in the United States-ran in part: "Fascism is leader noted with some bittemess, that "When the Soviet the ugliest and most extreme form of nationalism. German tanks roll into the Baltic, people are supposed to think that Nazism marched under the flag of revanchism. Since the this is happening in the name ofpeace and better East-West forces of revanchism are now again becoming active and are relations. " seeking to alter and destroy the post-warrealities of Europe, it is our duty to warn all those who wittingly or unwittingly Pre-arranged with Washington are giving encouragement to those forces." That evening, One entirely overlooked aspect of Shevardnadze' s invec­ Shevardnadze held a discussion with French Foreign Minis­ tive, was that it clearly had been worked out in advance with ter Roland Dumas, to whom he observed that recent state­ the approval of the Bush administration. U.S. Secretary of ments by West German politicians betray "undertones from State James Baker III admitted that "the German question" the era preceding the Second World War." had been on the agenda at his meetings just before with Shevardnadze's tone was still more threatening toward Shevardnadze at Jackson Hole, Wyoming, even though they the opposition movements in the Baltic nations of Latvia, had agreed to keep the proceedings secret. In the portion Lithuania, and Estonia. "The ship of our world has not yet of Shevardnadze's U.N. speech dealing with Germany, he traversed these dangerous waters . New threats are approach­ explicitly referred to the meeting he had held with Bush just ing, which could capsize it." The dangers he cited were a few days before: "The advance of the revanchism move­ the violent forces of a self-serving nationalism, which is ment is dangerous and is hostile to the march toward peace threatening the physical survival of entire nations. "Those which President Bush spoke about yesterday," he said. who want to live well at the expense of others, do not realize Moreover, the Soviet foreign minister prefaced his tirade that their own existence is at risk." against an alleged rebirth of Gennan"fascism" and "revanch­ What is the purpose of this attack on "revanchism"? Quite ism," with an invocation to the Three Powers of the Yalta simply, the Kremlin wants to nip in the bud, any thoughts in Treaty-the United States, Gteat Britain, and the Soviet the West of giving support to opposition movements within Union. With this, he was indireqtly referring to today's "New East Germany or in the rest of the East bloc. Its plan is Yalta," the condominium of the superpowers in Washington

36 International EIR October 6, 1989 and Moscow, whose effectiveness, unfortunately, is being Nazarkin, the Soviet negotiator in Geneva, who stated that demonstrated by the policies of the administration in Wash­ Moscow continues to regard the SDl and START as linked ington. problems. While Baker had the discretion not to blab in public about • The Russians also announced (for the umpteenth time) a joint U.S.-Soviet policy on the "German question," he did the dismantling of their Krasnoyarsk radar station. But this let it be known in a television interview on "Face the Nation," is merely one of 11 phased-array radar installations, all of that the BaIts for their part should expect no support from the which are in violation of the ABM treaty. United States. Baltic opposition figuresare already speaking • The statement of both sides' intention to drastically of a sharp change of policy in Washington. For example, the reduce their arsenals of chemical weapons, even if it were chairman of Lithuania's Sajudis opposition movement was actually carried out, has little strategic significance, since this not received at the White House during his recent U.S. visit. is chefly a matter of disposing of aging, outmoded stockpiles. Many BaIts now fear that, under pressure from Moscow, the • Of the series of bilateral agreements concluded in Wy­ passivity which Western governments have shown hereto­ oming, one is particularly noteworthy: an agreement con­ fore toward their struggles, is now changing into outright cerning visits to the United States of Soviet legal and psychi­ hostility. atric experts. The months-long visits by these delegations One forther indication of the existence of far-reaching must be seen in connection with U.S.-Soviet coordination in agreements between Washington and Moscow on this ques­ dealing with Western opponents of the superpower condo­ tion, is the worse than pitiful amount of economic aid which minium; the most prominent of those opponents in the United the U.S. government has given to the new Polish gov­ States is the economist and former U.S. presidential candi­ ernment. date, Lyndon LaRouche.

Selling out Western Europe CIA sees Europe as the enemy It is an open secret, that the superpower condominium, On Sept. 19, William Webster, director of the U.S. Cen­ with its wretched INF treaty , has begun the process of U.S. tral Intelligence Agency, delivered a speech before the W orId nuclear disengagement from Western Europe. Indeed, the Affairs Council in Los Angeles (see article, p. 58), which top agenda item in Wyoming was the continuation of this caused the French daily Le Figaro to observe that Bush's decoupling of Western Europe from the United States. Re­ advisers are clearly saying that "the essential conflict is no gardless of what most news media chose to focus on, all other longer with the Soviet Union, but ratherwith Tokyo and with topics and results of that meeting were of tertiary importance, 'Fortress Europe.' " in comparison to the announcement that both sides desired The CIA chiefs declaration was so brash, that even the to ensure that the Vienna talks on conventional disarmament Realpolitik experts around former West German Chancellor in Europe are concluded within the next sixmonths . The chief Helmut Schmidt can't stomach it. "This is wishful thinking," issue in Vienna is a stepwise withdrawal of foreign troops said a close aide to Schmidt. "Tremendous changes could from Europe-i .e., the pullout of the U.S. troops. soon occur in the East, which would have dramatic conse­ This will also be the actual theme of the planned summit quences. This will force thinking aboutthe relationship with meeting between Bush and Mikhail Gorbachov next spring. Moscow all over again. There is an overwhelming feeling And the main topic of a "European summit meeting" a la among those who have taken a close look at the Soviet Union , Reykjavik which the Soviets have repeatedly proposed for that the whole gamble of perestroika is about to fail, and sometime next year, would be nothing but this: a Europe there can be nothing done about it. Things are doing down entirely under Soviet domination. the drain in the Soviet Union. It's that simple." All the other resolutions and agreements made at Jackson But while these "realists" murmur their warnings, offi­ Hole are relatively insignificant, or at least, are nothing new: cials in West Germany's capital Bonn are acting, if anything, • For the purpose of achieving 50% disarmament, a veri­ worse than their Washington counterparts. In the federal par­ fiablecatalog of fixedintercontinental missiles is to be assem­ liament, the opposition Social Democratic Party has stepped bled. Of course, the era of mobile ICBMs already began up its campaign against low-flying NATO air maneuvers, some time ago; indeed, it began in the Soviet Union much arguing that the noise they produce is damaging the environ­ earlier than in the United States, which only now is construct­ ment. Meanwhile, Foreign Minister Hans-Dietrich Genscher ing its firstmobile MX and Midgetman missiles. hastily announced a pilgrimage to Moscow; the Christian • A great fanfare was given to the Soviet "concession," Socialist governor of Bavaria has demanded an end to all that the termination of the United States' Strategic Defense public debate about the possibility of German reunification; Initiative program would no longer be made a precondition and the ruling Christian Democratic leaderhip, while ex­ for the conclusion of a START agreement. This has been pressing concern over Shevardnadze's tirade, has decided under discussion behind the scenes for some time, but any "not to make it into a state incident." In other words, official idea of a "concession" was quickly contradicted by Yuri Bonn is cringing before the "peace-loving" Soviets.

EIR October 6, 1989 International 37 Dope, Inc. steps up its assault on Colombia's Barco by Jose Restrepo

Dope, Inc. has stepped up its drive to force the Colombian Every call for "dialogue" with the drug lords has been government of Virgilio Barco to surrender to the cocaine amplifiedthroughout the U.S. media, and every one is a page lords who have been slaughtering the Colombian people and taken straight from the script written by the drug kingpins. spreading mind-destroying drugs to the world's youth. For In an interview published in mid-September by the Spanish the first time, drug legalization became an official plank in magazine Interviu, Medellin Cartel chieftainGonzalo Rodri­ the platform of a leading candidate for the presidency in guez Gacha admits that the cartel launched its bloody offen­ Colombia; and for the first time, a South American govern­ sive to force the government into the negotiations Samper is ment went on public record calling for legalization of drugs. now demanding. "In Colombia they have dialogued with Both of these events occurred on Sept. 25, three days before everyone except us ....What we want is to dialogue, what President Barco traveled to to the United States to seek sup­ we want is peace. We want nothing more ....At this point port for the war on drugs. it is up to the government, to propose what is to be done," On Sept. 25, Ernesto Samper Pizano, a presidential can­ didate in Colombia's ruling Liberal Party, called for drug U.S. media traitors love,it legalization, as an alternativeto the courageous fightBarco 's Larco Cox's appeasement plan was applauded by left­ government has put up since the mafia murdered front-run­ liberal Washington Post columnist William Raspberry, who ning presidential contender Luis Galan in August. On the suggests that market forces-not morality-should deter­ same day, the foreign minister of neighboring Peru, which mine national drug policy. That same argument has been used to back Colombia's efforts to stamp out the narcotics actively defended by the right-wing liberal economist Milton traffickers, went before the United Nations to argue for sur­ Friedman, and of course by Samper. render to the drug pushers. Interviewed in Colombia's La Republica on Sept. 25 , Peruvian Foreign Minister Guillermo Larco Cox suggest­ Samper asserted that "if repressive action" against the drug ed the "decriminalization" of drug use, arguing that "social cartels fails, "the road left is legalization of drugs." Samper and economic considerations" made the outright eradication chose the moment of President Barco's departure for the U.S. of coca crops in his country unfeasible. Peru's ambassador to demand a meeting of Liberal. congressmen to formulate a to Washington Cesar Atala also told a Senate Governmental new policy on the war on drugs. He told the RCN radio Affairs committee that the U.S. should buy up Peru's coca station that one needn't "blindly" follow government policy crop as a cheaper alternativeto trying to stop the traffickers. simply by virtue of being a member of the Liberal Party. Ernesto Samper Pizano, whose chances to become Co­ The Samper coup attempt was timed with Justice Minister lombia's next President were boosted when Galan died, owes Monica de Greiff's resignation, announced upon her return his political career to the big money-center banks that keep from the United States. She said, "I am going to collaborate afloat from the profits on laundering the fabulous profits of with ErnestoSamper Pizano in his campaign." Samper called the drug trade, and to the U.S. Eastern Establishment media on the Liberal Party to issue a' statement of solidarity with who speak for those banks. In the Carter era, Samper was De Greiff. invited to the U.S. by the State Department to argue for the On Sept. 26, De Greiff told the daily EI Tiempo, she "economic" benefits of legalizing drugs-until exposure by opposed the extradition of drug traffickers, which is the key Lyndon LaRouche's political movement forced the Carter issue in Barco's anti-drug war. In the Justice Ministry, she folks to put that policy on the back burner. Now Samper said, "All of us were aware that it wasn't a popular measure. is invoking a full-scale revolt by the Liberal Party against Philosophically, the majority of the ministers did not like the President Barco. idea of Colombians being tried abroad ....Extradition has

38 International EIR October 6, 1989 been the most difficult measure. . . And it is possible that abIes" themselves. EI Espectador writes, "The government part of the violence that has been generated has been because has not dared to entrust [Congress] with its emergency legis­ of the extradition. " lation on the drug trade, perhaps because of this business of De Greiff also confessed to EI Tiempo that, like Samper the visas and their protagonists. [Their names] were already Pizano, she believes in dialogue with the traffickers: "The known. The government feared a self-interested rebellion. governmentsaid that it will not dialogue, but one must wait There is no Congress. Why insist?" and see how things develop. I don't believe that the decisions When President Barco presented an executive decree to of a government should be absolute, because situations are permit the naming of military mayors to those municipalities always changing. The President has said that dialogue is which required it, the Congress opposed his measure and impossible. Suddenly, later, the question changes. Further­ forced it to be overturned. It was the president of the Chamber more, in Colombia wars have almost never ended, because of Deputies, Norberto Morales Ballesteros, who told the in . nearly all of them arrangements were made. . . . In the press Sept. 23 that he has received several calls from Cartel United States, they asked me about extradition, and I told chieftains Pablo Escobar and Gonzalo Rodriguez Gacha, urg­ them it was unpopular, that it was not going to solve the ing his intervention to force a government-mafia dialogue. problem of drug trafficking." Morales said, "Many feel that some day the war has to end, whether it is won or not. I believe that [dialogue] is an expedi­ The bankers' blessing tious road, a door that has been opened. We will see if some­ Samper Pizano is getting the blessing of the u. S. Eastern one wants to enter. " Establishment bankers' controlledme dia, known for promot­ Sen. Juan Slebi Slebi, whose visa was canceled by the ing "recreational" drugs. The Los Angeles Times on Sept. U.S. embassy, said Sept. 21 that "the inclusion of my name 15 had a lengthy article drooling over the "courageous and on the black list could be the result of my public position patriotic" candidacy of Samper. The paper painted Samper regarding the drug trafficking problem: that the only way to as "anti-drug," and made no mention of his decade-long attenuate the business and lower the pressure is by legalizing advocacy of drug legalization, but did report his opposition consumption, as indicated by a British economic magazine," to extradition. The Sunday New York Times of Sept. 24 show­ The Economist. cased Samper as a popular anti-drug figure with an "interna­ tional solution" to the drug problem. Again, it did not report The war goes on that his proffered solution is legalization. On Sept. 29, the Despite the pressures, President Barco has remained sin­ New York Times devoted ample coverage to De Greiff, but gle-minded in his commitment to winning the war the mafia ran only a tiny paragraph on Barco's meeting with President started. The National Narcotics Council has already allocated Bush to seek more support for his anti-drug offensive. 180 of 375 planes seized from narcotics traffickers to the The U. S. pUblicity does not seem to be helping Samper's Colombian armed forces and national police force. Thou­ electoral chances inside Colombia. According to a poll pub­ sands of troops have been deployed onto the streets of major lished by the pro-Samper magazine Semana of Sept. 25, cities to protect banks, movie theaters, supermarkets, official 38-4 1 % of Colombian voters back candidate Cesar Gaviria buildings, and other mafia targets from an escalating series Trujillo, successor to the martyred Luis Carlos Galan. The of bombings directed increasingly, according to military au­ poll gives Samper only 15-18%. thorities, at "civilian targets." Colombian and Venezuelan Perhaps hoping to cash in on a "popular" issue, Samper military officers spent three days in the city of Cartagena has joined his voice in solidarity with a group of congress­ Sept. 23-25 to study joint plans for security and for fighting men-including rival presidential candidate Alberto San­ narco-terrorism along their common border. tofimio Botero-who, it has just been revealed, have had On the eve of his departure for the United States to ad­ their entrance visas to the United States canceled because of dress the U.N. General Assembly and meet with President suspected drug ties. Samper's protest, like those of the taint­ Bush, Barco vowed that his government "will never give in ed politicians named, is that the State Department's action to the pressures of the narco-terrorists." He said that the constitutes an "imperialist" violation of Colombia's "nation­ drastic measures he has dictated against the drug cartels are al sovereignty." fully supported by the Colombians and have also received However, the National Congress is far from a popular unprecedented international solidarity. Barco said that dur­ institution in Colombia these days. The anti-drug daily EI ing his speech to the U.N., he would stress the global aspects Espectador devoted its lead editorial Sept. 26 to the growing of the battle against the drug trade, including the need for: a suspicion that Colombia's sovereignty is being violated by a war against drug consumption in the advanced sector; a war Congress largely in league with the drug mafia.The editorial against drug money laundering in the advanced sector; and a notes that the U. S. diplomatic black list was drawn up months war against the uncontrolled export of chemicals and other earlier, but the targeted congressmen are only now howling products used in the production of cocaine, as well as against against "Yankee imperialism," in tandem with the "extradit- the uncontrolled export of weapons.

EIR October 6, 1989 International 39 The Barco government has not been as clear-cut in its cused of having full prior knowledge of alleged military ties policy toward the narco-terrorist guerrilla groups. On Sept. to paramilitary/drug trafficking networks. The Colombian 26, Colombia signed a long-debated peace accord with the Communist Party, the Sampernetwor ks, and circles around M-19, the same terrorists who in November 1985 murdered the Conservative Party's Pastrana are all pushing this scandal half the Supreme Court and gutted the country's Justice Pal­ scenario, in hope of forcing the President's resignation and ace on orders of the drug cartels. That day, the M-19 pub­ ending his anti-drug offensive. Their joint campaign is neatly lished a full-page paid advertisement in the daily El Tiempo, represented by Clara Lopez Obregon, a Communist politi­ urging dialogue with the drug mafia and elaborating a cian and niece of Samper' s mentor, former President Alfonso detailed agenda on how to accomplish this. While the M-19 LOpez Michelsen, who wrote in the Latin American-wide covers itself by calling for an end to the drug trade, "because magazine Vision that "Nazi paramilitarism" has corruptedthe of the damage it causes to the health and dignity of man," its Colombian armed forces, and is responsible for the violence proposals are the same as the drug cartels. Point C of its wracking the country. agenda urges "suspension of all extradition requests. Amnes­ The "Nazi" charges are the ultimate cynical trick in the ty for those who comply with the commitments stemming bag of those who demand that Colombia sit down and come from this negotiation." to terms with the drug cartels without firing a further shot. By their logic, no one should have ever opposed Adolf Hitler's Dope, Inc. 's lobbyists genocidal pretensions to power. After all, would it not have Working right alongside the legalization advocates are been simpler, since wars always end with peace talks, to the doom-sayers and the anti-military crowd. On Sept. 11, have proceeded directly to the negotiating table with the the daily La Prensa published the statements of a supposed Nazis? The analogy is not stretched: The cocaine cartels former member of Colombian army intelligence, insisting against whom the Barco government, and the majority of that "it will take billions of dollars and more than a decade Colombia's people, are arrayed in the present war, share to remove the threat posed by the drug traffickers ." Next to Hitler's values and methods down to the last detail. And these statements, La Prensa reported that "the government those bankers , controlled media, and sleazy politicians who increased the military expense budget in 1990 by 17% [which promote "dialogue" with them today, are no different from will] limit increases in expenditures on schools, hospitals the collaborationists and appeasers of the Nazi era. and other public works." La Prensa is owned by former President Misael Pastrana (Conservative Party) who has per­ sisted in arguing the impossibility of a successful war against drugs, and who has led his party into vociferous opposition to the government's policy, a treasonous posture under war­ CONSULTING time conditions. Claims that military corruption is responsible for the drug ARBORIST trade are not only coming from the Colombian Communist Available to Assist in Party and its media hirelings, like journalist Jorge Child, but from within the government. Attorney General Alfonso The planning and development of Gomez Mendez, married to M-19 sympathizer Patricia Lara, wooded sites throughout the continental has told the press that "it is not for lack of military might that '. United States as well as :;- • the big narcotics traffickershave not been able to be captured, or that they have an undefeatable army. It is because they The development of urban and have informants in the army and police that warnthem ahead ."""•• - suburban planting areas and of time when operations are going to be executed." Communist infiltrator Ricardo Gomez Mazuera, a former The planning of individual military intelligence officer, claimed at a press conference in homes subdivisions or Brazil Sept. 26 that "about 80% of the [Colombian] police industrial parks are linked to the drug trade," and that the anti-drug offensive was therefore doomed to failure. He also accused both the army and police of clandestine killings of leftists, criminals, For further information and availability and homosexuals. Before his flight from Colombia, Gomez please contact Perry Crawford III Mazuera-denounced by the Colombian Defense Ministry as "a mercenary of disinformation"-left his statement of Crawford Tree and Landscape Services accusations with the Attorney General , who is expected to 8530 West Calumet Road conduct a formal investigation of the charges. Milwaukee, Wisconsin 53224 Gomez Mazuera' s charges are designed to feed a growing campaign to undermine President Barco, who is being ac-

40 International EIR October 6, 1989 Schiller Institute rallies defense of Lebanon at Paris meeting by Christine Schier

"Stopping Genocide in Lebanon-A Strategy to Fight the The theme of Soviet-American deals over the Middle American-Soviet Condominium" was the theme of a confer­ East was further elaborated by Philip Golub, director of the ence held by Executive Intelligence Review and the Schiller Middle East Insider newsletter. "As ironic as it may be, Institute in Paris, France on Sept. 21. More than 150 people American and Soviet priorities are identical, notwithstanding gathered at the Centre Chaillot to hear Lebanese, French, problems of competition, because both superpowers want to and American speakers denounce American appeasement of avoid reaching a nuclear level of escalation, while giving the Syrian occupier, and defend the cause of a free Lebanon, diplomatic priority to Teheran and Damascus, at the expense enjoying freedom of conscience and cooperation among all of other Middle Eastern nations and peoples." its different communities. The American governmentapproved ofHafez al Assad's The conference filled a vacuum leftby other French polit­ coup d'etat in November 1970 and its policy has not really ical forces who, although defending the sovereignty of Leba­ changed since, Golub explained. The expected worsening non, have not attempted to transform their protests into a of Soviet-American relations over the next few years will mass mobilization or direct popular support. probably lead to a major war in the Middle East. In that light, Among the attendees were many religious and political the resistance of the Lebanese people today is all the more leaders, including Monsignor Harfouche, vicar of the Maro­ justified. nite Patriarchate in France, and Father Riquet, an eminent What does Assad really hope to accomplish in Lebanon? defender of human rights, as well as representatives from the Bassam al Hachem, professor at the Social Sciences Institute Lebanese Sunnite and Shi'ite Muslim communities. Speech­ of the University of Lebanon, answered this question. "He es ranged from the internationalsetting behind the occupation did not come in order to fight Israel-he could have gone to of Lebanon, to an analysis of the internal Lebanese situation the Golan for that. He did not come to defend the Palestinian and the contribution of France toward ensuring peace. revolution-he was one of their hangmen. And he certainly did not come to preserve the freedom of Lebanon. No, he 'Kissinger doctrine' is to blame occupied the country to 'divide and reign.' " First, he at­ Jacques Cheminade, president of the French Schiller In­ tacked the Sunnites who opposed his regime, then he divided stitute, showed how the disaster had been brought to a head the Christians-the carrot for those in the North and the stick by a combination of Syrian ambitions, fanatic Islamic funda­ to those in the Shouf region south of Beirut. He is the one mentalism, and Israeli fears. But over and above these more who has fomented the inter-Musliim conflicts, supporting visible elements, the ultimate blame is to be laid on the Shi'ites and Druzes against Sunnites, then supporting the Soviet-American condominium and the "Kissinger doctrine" Shi' ite Amal movement against the Druze leader Walid Jum­ with its Metternichean concept of balance of forces. On the blatt. regional level, Hafez al Assad, that "small-time Metternich" Professor al Hachem explained that Hafez al Assad is whom Kissinger so admires, is called upon to enforce the obsessed by the smallness of his community in Syria-the condominium. "As an independent nation-state based on Alawites account for only 12.5% of the Syrian population. freedom of conscience and of speech, Lebanon is therefore Assad seeks in a Greater Syria the means to break the internal naturally hostile to a regional and worldwide New Yalta, isolation of his community. At the same time, he tries to which explains why it is being attacked." Cheminade called attack the different Sunnite communities by mounting an upon all Frenchmen to defend Lebanon with the same tenaci­ "axis of minorities" all along the crescent from Pakistan to ty as does the Lebanese peasant in refusing to give up his the Mediterranean. That is why he supported Iran against fields. Sunnite Iraq.

EIR October 6, 1989 International 41 During the discussion period, a participant pointed to Middle East. Although France still has a special responsibili­ the parallel of Henry Kissinger's policy toward the world's ty toward Lebanon, she at least partially reneged in the 1970s largest heroin producer, Communist China, and the way in and 1980s. which Assad transformed Lebanon's Bekaa Valley into mari­ The Parisian intelligentsia totally misunderstood the na­ juana and poppy fields. ture of the conflict: pro-Palestinian and pro-Muslim, they thought they were witnessing a "class struggle" and a "libera­ Create a Second Lebanese Republic tion of the Palestinian people." This misconception paralyzed Antoine Sfeir, editor-in-chief of Cahiers de ['Orient, the necessary initiatives, even more so since French intellec­ stressed in his speech that Lebanon has always been a "trou­ tuals were still sufferingfrom the trauma and the guilt of the blemaker" in the region, in that it is the only state which Algerian war. On top of that, when the oil crisis broke out, honors democracy and freedom of religion and of speech. a premium was placed on relations with oil-producing countr­ Prime Minister Michel Aoun himself, a man of the people ies, often to the detriment of Lebanon. and the armed forces, is also a "troublemaker." His message Since then, in the recent peribd, French policy has some­ is simple: All foreign troops must get out of Lebanon. And what shifted , even though the means employed, such as the yet, this "simplistic" message creates trouble for the Leba­ sending of the fleetto the Mediteh-anean, are not really equal nese oligarchy, the political caste, and even the hierarchy of to the tasks. However, France has found herself relatively the Maronite Church. isolated on the Lebanese issue. When the governmentasked Now, thanks to General Aoun, there is again the possibili­ for emergency action by the United Nations Security Coun­ ty of building a true Lebanese nation. We are going to create cil, when French Foreign Minister Roland Dumas denounced a Second Lebanese Republic, Sfeir declared. It will be built the Kissinger doctrine, neither the American administration by all those "children of the war" who identify themselves nor the European Community (EC) supported them. The first and foremost as "Lebanese." The fight will be tough, truth is that all other European cquntries followed the United warned Sfeir. For a long time, the Christians neglected the States, playing the Syrian card. Muslims and gave up trying to "Lebanize" them. "The time In this way, France has had to retreat from her former has come to build one single indivisible nation. . . . We have position and toe the line. Under American pressure, the sear­ taken too much advantage of cheap Palestinian manpower, ch for a solution was again entrusted to the Group of Three we have let the only democracy in the Arab-Muslim world (Marocco, Algeria, and Saudi A�bia) from the Arab League. sink into anarchy. " Although the Group of Three had originally imposed the A lively debate broke out between Professor al Hachem withdrawal of all Syrian troops as a precondition to any agree­ and Mr. Sfeir. Hachem maintained that it was now up to ment or cease-fire, they have nqw withdrawn this precondi­ the Lebanese Islamic community to recognize the separation tion, under pressure from Washington. between civil and religious society, while Sfeir argued that The participants supported 'sending a harshly worded the Lebanese Christians had not "organized," or "Leba­ message to President George aush, asking him to change nized," the Muslims over the years, and that the Christian policy, and another to French President Fran�ois Mitterrand, community firsthad to wake up. These differences dissolved thanking him for his help and aslqing himto intervene in order in the room and at the podium when homage was paid to to have the EC countries withdli"aw their ambassadors from those Shi'ites and Sunnis who, like Nazem el Kaderi, have Damascus and to put an end to e�onomic aid for Syria. defended the constitutional state at their own risk and peril . Mrs. Marianna Wertz, the wife of William Wertz, one Samir Daher, president of the International Peace and of Lyndon LaRouche' s imprison�d collaborators, testifiedon Human Rights Union, definedthe conditions for peace in the the battle led by her American friends on behalf of Lebanon Middle East. The Lebanese Army, in his words, is the last and human rights. She described the physical and spiritual legitimate resort for resisting the Syrian occupying force, and torture Mr. LaRouche is subje�ted to , but also asked the is therefore a rallying point. From the U.S.S.R., Lebanon public not to judge the Ameri¢an people on the basis of expects a minimum of sincerity when it speaks of "popular its government. "America will twake up before long. The liberation"; and from the U.S., it expects that it act as the American people, committed to just causes, will not tolerate "leader of the free world." Kissinger's policy has spelled a bad governement forever. In America, the fight is on to nothing but disaster; he "carried over into the Lebanon the obtain freedom for Mr. LaRouche. We firmly intend to win Israeli-Egyptian conflict," and as Cardinal de Retz stated, it and at the same time to help you to win the battle for the "For great issues, there can be no small steps." Daher ex­ freedom of Lebanon." pressed confidence that the Lebanese can work things out Toward the end of the conference, a filmmade by leba­ among themselves: In war, he said, there are never two win­ nese students on the Syrians' atrpcities in Beirut was shown. ners but, without this consensus, there may well be two Finally, homage was paid to all the victims of the Lebanese losers. war, and the memory of Marie�Madeleine Fourcade, great Gen. Georges Lavernhe, former technical adviser to the World War II French Resistance leader who had so passion­ Lebanese government, described the role of France in the ately supported Lebanon, was invoked.

42 International EIR October 6, 1989 To Lebanese Prime Minister Gen. Michel Aoun: Documentation Gathered in Paris on September 21, at a Schiller Institute conference in support of a free and sovereign Lebanon, we wish to express, General Aoun, our full support forthe war of liberation you are waging against all armies occupying The conference "Stopping Genocide in Lebanon-A Strategy your country. We salute your patriotism and your immense to Fight the American-Soviet Condominium" held in Paris. courage, that quality of military men which General de Gaul­ France on Sept. 21. received the fo llowing message of greet­ le called "character." Through your actions and your un­ ing from General Aoun: selfish struggle, hope and the will to fight have been awak­ ened in your people. You remind other nations of the world, Lebanon is living through a martyrdom. In the free zones as especially France, of those great moments in the past when in the occupied territories, the Lebanese people, equally but they were called upon to take up arms to defend national in different ways, suffer under the yoke of the Syrian occupa­ integrity. May your courage also inspire today's politicians, tion force. Whether it be in the name of an Anschluss or by so often devoid of ideals and purpose! tmg pretext ofits own security at the expense of neighbouring territory,this Nazi regime is perpetrating massacres in Leba­ To Selim Hoss. Muslim Prime Minister of Lebanon: non. It unfortunately enjoys the support of more than one Gathered in Paris . . . we ask you to denounce the exac­ country that claims to defend human rights and human tions of the Syrian occupation forces who are acting against freedom. all the communities in Lebanon. Undoubtedly the liberated zone with itsChristian majori­ We are aware of the courage such an attitude would de­ · ty has had to endure the most, but the totality of the Lebanese mand of you. We hope you will demonstrate that courage. peopleare victims of this martyrdom. As I address the message to you, a Muslim Lebanese To Franfois Mitterrand. President of France and of the Eu­ parliamentarian has just been assassinated by bullets from ropean Council: the Assad regime. This regime is striving to eliminate all Gathered in Paris on September 21 at a conference orga­ independent personalities, since in all Syrian-occupied re­ nized by the Schiller Institute in support of a free and sover­ gions, these independent voices are the only means by which eign Lebanon, we would first like to thank you personally the Lebanese can vote for a Lebanon of freedom, of unity for your efforts and those of your foreign minister. and of the future. However, deeply outraged by the attitude of the Syrian We appreciate your efforts made in the service of that occupier in Lebanon, we feel that a greater firmness toward Lebanon which we all defend. Mr. Hafez al Assad, on your part and on the part of the -Michel Aoun, Prime Minister of Lebanon member countries of the EEC , is politically indispensable. We would also ask you to intervene on behalf of an Participants in the conferenceunanimousl y adopted and sent immediate suspension of economic aid to Syria from France the fo llowing messages: and from the member countries of the EEC , and for the withdrawal of their ambassadors in Damascus, until such To President George Bush: time as the Syrian troops have withdrawn from Lebanon, in We the undersigned, gathered in Paris this 21st of Sep­ parallel with the other occupants of this country. tember at a Schiller Institute conference devoted to defending the sovereignty of the Lebanese people, are shocked by the To Lyndon H. LaRouche. Jr.: systematic backing you give to Syrian policy in the region. Gathered together in Paris, this 21st of September, at a How can a nation like the United States, born of a war for conference organized by the Schiller Institute in defense of independence and liberation, support such a tyranny as Hafez a freeand sovereign Lebanon, we wish to convey our testimo­ al Assad's, well known for its barbarity? How can a nation ny offriendship and our moral supportto Lyndon LaRouche, like yours support a drug-trafficking country that is slowly held prisoner in Rochester, Minnesota. killing your own youth? How can a nation like yours support We salute the terrible risks run by all those fighting for a country that is complicit in hostage taking and in terrorist the liberation of oppressed peoples, for justice and against acts that destroy your own airplanes in the skies? any violation of any nation's sovereignty. We are in a good Is America, the beacon of liberty for all oppressed peo­ position to understand the price exacted for challenging es­ ples, dead? In the name of the historical America, of the tablished powers, and especially that of the present Soviet­ America founded upon its declaration of the inalienable American condominium and its mastermind in the U.S., rights of man, we call upon you, President Bush, to change Henry Kissinger. policy. We call upon you to use all your power in order to Standing firm in the fight we are waging in spite Qf the free Lebanon from all foreign occupation forces, that this martYrdom of our nation, we share your suffering and know nation might restore its freedom and sovereignty. that you, also, remain steadfast in a combat that joins ours.

EIR October 6, 1989 International 43 This year has already seen the biggest mass organizing for the legal restoration of the Ukrainian Church since its banning in 1946. On May 16, a Ukrainian Catholic clerical Ukrainians seek to delegation, including bishops F. Kurchaba, S. Dmyterko, and P. Vasylyk, went to Moscow, bringing a petition, legalize their church addressed to Gorbachov, for the legalization of the Ukrainian Catholic Church. As Gorbachov was in China, the delegation requested to meet Gorbachov's close ally, number two in by Oksana Polischyk terms of state protocol, Vice President Anatoli Lukyanov. Lukyanov refused to meet, sending instead low-level Su­ Very often a single case tells more about bow vicious police­ preme Soviet functionaries and a representative of the Soviet state repression can be than giving statistics. Ukrainian Cath­ Ministry for Religious Affairs, Valeriy Vespanov, to meet olic priest Mikhaylo Havryliv was sent to Chernobyl, as a with the delegation. All appeals fell on deaf ears. At the same punishment, to clear contaminated radioactive debris. His time, repressions of Ukrainian Catholic priests and believers "crime" was that he served as a Ukrainian Catholic priest, increased. openly celebrating the sacraments according to his faith. This The next protest took the form of a very publicized hunger punishment occurred under Mikhail Gorbachov, while the strike in Moscow organized by the Committee for Defense West was praising the birth of so-called glasnost and peres­ of the Ukrainian Catholic Church, with the goal of bringing troika. Whether under Khrushchov, Brezhnev, or today un­ public attention to the plight of their Church. The hunger der Gorbachov, such punishment typifies the cruelty and strike was timed with the late May opening session of the barbarism of Moscow towards Ukrainian Catholics and their newly elected Soviet parliament'. deeply held faith . The Sept. 8 founding of the Ukrainian National Move­ Despite years of the most brutal KGB police and militia ment for Restructuring, Rukh (see EIR , Sept. 21, 1986, repression, which continues to the present day, over 150,000 "Ukrainian freedom movement gathers strength, backed by Ukrainian Catholic faithful turnedout to celebrate the rnoleb­ Polish Solidarnosc")has accelerated the mass campaign for en (devotional mass) in the city of Lviv Sept. 17. The date legalization. One of Rukh's leaders is the head of the Com­ chosen for this huge anti-Moscow protest, demanding legal mittee for Defense of the Ukrainian Catholic Church, Ivan status for the Ukrainian Catholic Church, outlawed by Stalin Hel-known in the Ukraine as the "Ukrainian Lech Walesa." in 1946, was not accidental. It was the 50th anniversary of In 1987, he was released after 15 years incarceration, where the Soviet invasion of Poland, afterthe Hitler-Stalin Pact, an he was often beaten and tortured. On many occasions he was invasion which began the Soviet occupation of the Western denied even the meager daily prison foodration, and forced Ukraine. to stand outdoors half-naked in sub-zero temperatures. To- The Synod of Ukrainian Catholic Bishops is about to convene in Rome. Their agenda: To elaborate a strategy to pressure the Gorbachov regime into legalizing their church. The Ukrainian Catholic Church of the Eastern Rite (also called the Uniate Church), with some 5 million believers, is 'You admire the largest underground church in the world. Banned by Sta­ lin in 1946, the church continues, despite brutal repression Gorbachov too much' against illegal clandestine services. Today many Ukrainian Catholic priests have emerged from the underground to hold " ... It is your great mistake, the fascination with public masses, running the risk of having services broken up [Hollywood] stars , stars, stars, stars. When someone by police and being detained. becomes a star, he can blind people. We must be cau­ The question of legalization will soon come to a head. tious. Stalin was also applauded (in the West). You According to Nikolai Lunkov, Soviet ambassador to Italy, admire Gorbachov too much. Nobody should be ad­ Mikhail Gorbachov is to meet Pope John Paul II when he mired like that. Only God. visits Italy at the end of November. The Vatican confirmed "We see ...very real changes ....I rejoice at in the firstweek of September that Gorbachov had expressed these changes, but I am afraid they may not last long. interest in meeting the Pope to review Soviet-Vatican rela­ As long as you have a one-party government, there is tions. The Ukrainian Catholic Church, as well as Catholic a danger of dictatorship. Stalinism is dormant, but it is Lithuania and Latvia, with a Catholic minority, are expected not dead." to be high on the meeting's agenda. The Pope has often -Cardinal Vincentas Sladkevicus, as quoted in sent messages to Gorbachov expressing his desire that the the Washington Post, Feb. 4, 1989. Ukrainian Catholic Church be allowed legal status.

44 International EIR October 6, 1989 day, as a leader of Rukh, he is fighting not only for the legalization of the Ukrainian Catholic Church, but for the Documentation creation of a mass Christian Democratic movement whose platform would include the restoration of an independent Ukrainian Orthodox Church for the Orthodox believers who comprise 80% of the Ukraine's population. Michnik calls fo r Forbidding silence from Moscow anti-bolshevik front So far Gorbachov has not said a word. The only answer the Ukrainian Catholics have received from the Soviet gov­ ernmenthas been more and more repression. The fo llowing are excerpts fr om a translation fr om Polish The other answer to the Ukrainians' appeal came from of the speech by Adam Michnik, a leading spokesman fo r the Russian Orthodox Metropolitan Filaret of Kiev, who in Poland's Solidarnosc movement, delivered before the fo und­ an interview with Radianska Ukra ina warnedthat the "conse­ ing congress of the Popular Movement in Ukraine fo r Peres­ quences" of legalizing the Ukrainian Catholic Church would troika (Rukh) in Kiev on Sept. 8. be "undesirable." "The Ukrainian Catholics have negative attitudes towards the Russian Orthodox Church, which they We are experiencing together the end of the totalitarian sys­ call unholy, even the church of Satan, whose hierarchs they tem, the end of Stalinist communism. I bring you greetings disrespect and whose liturgies they counsel others not to from Poland on behalf of Solidarnosc and the deputies of attend. And this is the case when the Ukrainian Catholic the Polish Sejm. We are listening to your congress and are Church is not legalized. Can you imagine what will happen overjoyed and moved as we observe your national rebirth . when it is legalized?" Behind us lies a great stock of common history, both Furthermore, the Metropolitan lied, "On the territory of good and bad, but common. Today we ask, what has always Ukraine, there are other religions in addition to the Russian marred our coexistence? And we believe the time has come Orthodox Church, and among them, is Catholicism. Those to call this evil by its real name: chauvinism. You as Ukraini­ who call themselves Catholics may attend Catholic churches. ans and we as Poles know the face of Great Russian chauvin­ Those who live in the faith of their forefathers, the Orthodox ism, which over the centuries has stifled our national cul­ faith, can attend Orthodox liturgies." tures. We know how much harm it has brought to the Rus­ Indeed, when the Metropolitan says anyone can worship sians themselves. No nation can be happy if it degrades and in a "Catholic Church"-this may sound totally "logical" to oppresses other nations. Hatred between nations is called people in the West. The facts, however, tear this argument chauvinism. Distinctions are made between the chauvinism to shreds. The only legal Catholic churches in the Ukraine are of great and powerful nations and that of the weak and subju­ in the Carpatho-Ukraine, bordering on Hungary and Poland. gated, but it is an illm;ss in both cases. Let us renounce it! These very few churches serve the Ukraine's tiny Polish and Let us, as Poles, drive chauvinism from Polish hearts, and Hungarian minorities. They are physically inaccessible to you, as Ukrainians, from Ukrainian hearts. nearly all Ukrainian Catholics, and in the Hungarian case, I represent Solidarnosc, the Solidarnoscthat is striving to services are in a totally alien, non-Slavic language. build democracy on traditions of understanding and struggle In the meantime, the Ukrainians have not given up, as against totalitarian ideologies. We draw from Christian tradi­ proven by the 150,OOO-strong march under the blue and yel­ tions, from the freedom-loving aspirations of the Polish intel­ low national flag in Lviv on Sept 17. Like the Church of ligentsia, and from the resistance of the Polish countryside Poland, the church in Ukraine is seen by many Ukrainians to collectivization; and above all, from the striking struggle as part of their national and cultural identity. of Polish workers ....The Church has taught us that each As Ivan Hel put it: "Stalin destroyed the people physical­ of us must reject the totalitarian assault on our conscience ly, Shcherbitsky spiritually." Shcherbitsky, the Ukrainian and answer only to God. And, thanks to this, we are free, party boss and "Brezhnev relic" is gone now, having been and as one free nation we wish to build our alliances with "retired" at the September Plenum. Gorbachov's mask will other free nations, as an equal among equals .... either have to fall or he will have to give in to at least some We are glad that now, on this historic day, at this solemn of the Ukrainian Catholics' demands. His meeting with the moment for Ukraine and for all of Europe, there are Poles in Pope will be the test. Legalizing the Ukrainian Catholic this hall. We are glad that at this time of national rebirth­ Church would mean opening up for Moscow another can for which you paid the price of camps, trials, suffering, pain, of worms: Ukrainian Orthodox, of whom several tens of and the death of the best sons of this land-Solidarnosc is millions, are waiting in the wings to break the Russian Ortho­ with you, Poland is with you. May fortune be with you ! May dox grip and press for their own Autocephalous Orthodox God give you strength ! Long live a democratic, just, free Church. Ukraine !

EIR October 6, 1989 International 45 his antipathy toward the Unia�s': their pivotal role in the nationalist movements which are demanding independence from Soviet rule. "In the Baltic countries and the Ukraine, and in Belorussia, too, the Catholic Church is closely con­ nected with national culture," he said. "Sometimes this as­ A Russian Orthodox sumes a nationalist character. Churches should resist this ....Nationalist tendencies still exist in the Ukraine. 'nyet' to Uniates And in practice, many Uniatesi are not against Moscow as a center of the Orthodox Church but against Moscow as a political center. " by Kathleen Klenetsky Soviet maneuvers Amidst hints that Moscow may be prepared to legalize the Filaret's candid interview comesjust as the pace of Vati­ outlawed Ukrainian Catholic Church, a leading spokesman can-Soviet diplomacy has markedly quickened. It was re­ for the Russian Orthodox Church (ROC) has delivered a cently announced that Mikhail Gorbachov will meet with the scathing attack against the Uniate churches in the East bloc, Pope in Rome this November. According to several sources, . virtuallydemanding that the Vatican agree to their continued the subject of the legalization of the Byzantine rite will defi­ suppression as a condition for the continuation of the Catho­ nitely be on the agenda, and, according to one individual lic-Orthodox dialogue. familiar with preparations for the meeting, "will certainly be Metropolitan Filaret, head of the ExternalRelations De­ one of the Pontiff s top two priorities." partment of the Russian Orthodox Church's Moscow Patri­ The Ukrainian Catholic Church's leader in exile, Cardi­ archate, and one of the Soviet Union's leading purveyors of nal Lubachivsky, disclosed Sept. 21 that the ,Vatican had the lie that it wants nothing but peace with the West, told a set discussion of the banned church as a condition for the U.S.-based Catholic newspaper that the Byzantine rite meeting. church must never be recognized as legitimate. A week later, the KGB 's Fyodor Burlatsky, chainnan of In an interview published in the Sept. 24 National Catho­ the Supreme Soviet's subcommittee on humanitarian mat­ lic Register. Filaret, who serves as metropolitan of Kiev, the ters, announced that the SupremeSo viet will consider legal­ capital of the Ukraine, voiced adamant opposition to any izing the Ukrainian Church next year. loosening of the brutal repression which Josef Stalin The issue of the Ukrainian church is also expected to unleashed against the Ukrainian Catholic Church in 1946. dominate the next meeting between the Vatican's Council Stalin declared the church illegal, and demanded that its for Promoting Christian Unity and Russian OrthodoxChurch members join the ROC. Since that time, it has been forced representatives, which is scheduled to take place sometime to function underground. in October. "The Uniate tradition," Filaret claimed, "was created un­ Filaret's seeming dissension fromthe officialSoviet state der abnormal conditions-not as the product of a dialogue declaration of war on the Byzantine churches may be partof with God, but as an act against this dialogue. For this reason, a Soviet "soft cop/hard cop" operation, which seeks to extract it will never, never be a constructive factor ....Unia tism as many concessions from the Vatican as possible, in ex­ will never be abridge between East and West. It will always change for some easy promises from Moscow to lessen the be the precipice which separates us." persecution ofthe Byzantine c�urches. It has been suggested The most significant aspect of Filaret's remarks was his by some observers that Gorbachov may be willing to at least attempt to draw a fundamental distinction between the Ro­ grant the appearance of legalizing the Uniates, in order to man Catholic Church, and the Uniate churches. The latter, defuse the mounting pressures for political and economic while using a liturgy different from that used by the Roman independence in the Ukraine and other parts of the empire. Church, nevertheless recognize the Pope as their spiritual Filaret concluded his interview by suggesting that the leader, and are doctrinally in accord with Rome. Pope, if he does succeed in arranging his long-wished-for Filaret declared that while there is room for the Roman trip to the centers of the Uniate churches in the East, should Catholic Church to exist in the Soviet Union, this is absolute­ come to Moscow as well. "We would like John Paul II to ly not true for the Uniates. "We are not against the Catholic come when the time is ripe," aaid Filaret. "And we cannot Church," and "we accept [the Pope] by our own judgment see how he can visit Lithuania. Belorussia, and the Ukraine and freewill ," Filaret asserted. "But Uniatism, however you without going to Moscow, the Orthodox capital." By con­ may choose to interpret it, represents an act of proselytism vincing the Pope to visit Moscow, the Russian Orthodox by the Western Church in the East. This is what angers the Church is hoping to bolster its side in its ongoing contest Russian Church." with the Patriarchate of Constantinople for the position of Filaret made little attempt to disguise the reasons for true representative of Orthodoxy in the East.

46 International EIR October 6, 1989 bloody guerrilla war against Moscow in that mountainous Muslim republic-where hundreds ofthousands of Azerbai­ janis have, since 1988, acquired arms-and other, unpredict­ able consequences. How long Gorbachov can postpone deploying troops Crisis not ended in without entailing major political consequences for himself, is questionable. The disruption of Transcaucasian rail service Soviet ltanscaucasus has already passed the blockade stage. The Soviet govern­ ment daily Izvestia of Sept. 28 reported that a rail bridge in Azerbaijan, near Karabakh, had been blown up. Guerrilla by Konstantin George war is already beginning. The U.S.S.R. Interior Troops, which Gorbachov placed under his personal control before On Sept. 27, two days after an ultimatum from Soviet leader the September Central Committee Plenum, are being mobi­ Mikhail Gorbachov to the Central Asian republic of Azerbai­ lized for such a contingency. Timed with Gorbachov's Sept. jan to end its blockade of Armenia, or else force would be 25 ultimatum, an entire elite division of Interior Troops, employed, Soviet radio proclaimed the "end" to Azerbaijan's composed of "special units," (recruited from ex-Army Air­ four-week rail blockade of the neighboring republic. Soviet borne and Afghan War special forces veterans) were flown radio announced that "the firsttrains have arrivedin Armenia into Azerbaijan's Karabakh region, where many Armenians after Azerbaijan lifted the blockade." It thus appeared, on live. The troops had arrived from Uzbekistan's Fergana Val­ the surface, that Gorbachov's ultimatum had succeeded, and ley, where they had been sent in June to quell the Uzbek that the crisis between the two ethnic groups in the Transcau­ pogroms against Meshketian Turks. casus was beginning to wind down. Surface appearances are The urgency of the situation in Armenia and Azerbaijan almost always deceptive, and this case was no exception. was underscored by Interior Ministry Gen. Vladimir Yegor­ The Soviet announcement was at best a half-truth, and ov, in a Moscow press conference on Sept. 26. He stressed the smell of a statement designed to win political capital for that even though the "firsttrains" had arrived in Armenia, no Gorbachov, while covering up an actual worsening of the food and no fuel were getting through. Yegorov warned that crisis, was already evident in the very next sentence of the if the blockade were not totally lifted, then "the forces of the broadcast: "However, several freight trains are missing, in­ state" would be employed to break the blockade. cluding one with food," and most cargoes are still being airlifted. Military grows impatient Armenia depends on rail lines that run through Azerbai­ Soviet military impatience over Gorbachov's tough jan for 85% of its supplies, and the blockade, which termi­ words but do-nothing stance toward the blockade and nation­ nated shipments of fuel, food, raw materials, and construc­ al unrest in general, is very high. Defense Minister Dmitri tion materials, had brought all of Armenia's transport and Yazov in his speech to the Central Committee Plenum Sept. auto traffic to a halt, shut down most industry, and stopped 20, warned that "nationalist and extremist forces" are not all post-earthquake reconstruction work. In short, in the first only active throughout the Soviet Union, where he singled case ever where one Soviet republic blockaded another one, out the Baltic republics and the Transcaucasus, but had begun Armenia's economy was crippled. Armenia is totally depen­ "to findan echo" within the Armed Forces itself. He demand­ dent on Azerbaijan for fuel. ed that "a stinging rebuff' be given to these forces. On Sept. 27, the "first trains," seven to be precise, did The Transcaucasian theater is but one of many crisis arrive in Armenia, in an Armenia where no civilian motor arenas troubling Moscow. In October, the Baltic Popular transportoperates because there is no gasoline or diesel fuel. Fronts will hold congresses, and renew their campaign for The trains brought desperately needed building materials, wide-ranging autonomy and future independence. The next machinery, paper, and coal for winter heating (winters are round of mass strikes in the Ukraine and Russia will pr�bably severein Armenia); other shipments arrivedwith food . Azer­ begin also in October. In the other Warsaw Pact satellite baijan did not end the blockade, but changed tactics to "con­ states, the economic-political crises in Poland, Hungary and fine" the blockade to fuel. Everything that reached Armenia East Germany, will also heavily intensify as winter comes got no further than the train station, where the supplies were on. unloaded, to sit and rot, awaiting, due to the absence of fuel, Gorbachov's preemptive strike at the September plenum, non-existent motor transport. ousting three Politburo opponents, has given him a short­ Moscow's grandiose announcement that the blockade term political stability. However, the current emergency in had been "lifted," got Gorbachov off the hook, temporarily, the Transcaucasus, and the inevitable October upheavals, in that he was not compelled to use the military . against the will provoke new and bitter rounds in the power struggle Azerbaijanis, which would have certainly precipitated a raging in the Soviet leadership.

EIR October 6, 1989 International 47 Palestinians element associated with the Syrian-sponsored rejectionist front. Moreover, the region has also seen the rapid spread in the last two years of Hezbollah Shi'ite cells from West Africa, especially from Sierra Leone, Senegal, and Ivory Coast, into the Central African Republic, Gabon, Mystery surrounds and Cameroon. Besides the creation of a clandestine infrastructure, the Niger air explosion growth of the Hezbollah is also part of a broader political design. Iranian leaders have assessed that, in coming years, they could fillthe political vacuum in many countries which, by ThierryLalevee like Senegal two years ago� are confronted with a social and economic crisis. In the final analysis, the growth of the One hundred seventy passengers were killed on Sept. 19 Hezbollah is a direct political challenge to the longstanding when the DC-tO operated by the French company UTA ex­ relationship between the African countries and France, in ploded above the Tenere Desert between Chad and Niger. particular . Yet, this event, which rivals the Dec . 21, 1988 bombing Investigations are narrowing on the Hezbollah networks aboard Pan American Flight t03 over Lockerbie, England, as having provided the logistics for the bombings, and further which killed 270 people, has drawn little attention. In the questions are being raised about the origins of the Semtex, United States, it was secondary news, overshadowed by and about which terror organization sponsored the operations news of a U.S. Air Boeing 737 which skidded into the East and on whose behalf. Several reports are already circulating River at New York's LaGuardia Airport. Was the Niger linking the bomb to the cells of the PFLP-General Command bombing played down just because it happened in Central of Ahmed Jibril, which was supposedly dismantled last win­ Africa, with most of the passengers being black Africans; or, ter in West Germany, just prior to the Lockerbie bombing. was it because it might raise embarrassing questions? One unconfirmed hypothesis suggests that the same kind of More than a week afterit occurred, it has become evident portable radio-tape recorder was used, as that used for the that, however difficult the actual police and intelligence in­ Lockerbie bombing and previously found in the PFLP-GC's vestigations will be , the main issue in finding the culprits safehouse in Germany. will be a matter of political will-especially the political will Yet, such a modusop era1!diimplicates not only the PFL­ to point the accusing finger not at someostensibly "indepen­ P-GC, but also such well-known explosives experts as the dent" terrorist organization, but at the state or states which May 15 group of Abu Ibrahim. The latter group, no longer sponsored it. Indeed, just as the mystery of Lockerbie has operationally independent, hilSjo ined a pool which is vari­ remained unsolved so far, because of Washington's reluc­ ously used either by the PFLP-GC or the Abu Nidal organi­ tance to name either Syria or Iran , that is very "likely the zation. reason why the Niger crash has not made headlines outside A look at recent events in Lebanon also shows further of France. Coming just a few days before the summit between integration among these gro�ps. Over this past summer, a Soviet Foreign Minister Eduard Shevardnadze and U. S. Sec­ series of meetings took place, resulting in the establishment retary of State James Baker III in Wyoming, U.S. agencies of a broad coalition in Lebanon which sees Hezbollah, Amal , were not eager to start denouncing any state which just hap­ Jibril, and Abu Nidal operating jointly in the south, with the pened to be Moscow's ally. last two organizations sharing training camps. Such coopera­ Cynics, or "realists" as they are sometimes known, add tion makes it most unlikely . for Hezbollah cells to decide that because of the high level of tension between Washington independently, somewhere in West Africa, to order the kill­ and Paris over the Middle East, and Lebanon in particular, ing of 170 passengers. As one French officialwas quoted in some American officialsconsidered that the bombing as Paris the Paris daily Le Figaro Sept 22, such a move is an "act of "paying the price of its adventures" in the region. war, sponsored by a state." But which state? Le Figaro on Sept. 27 gave part of Hezbollah implicated the answer in its headline, "Syria's Shadow." But, not only Preliminary and scattered investigations are nonetheless Syria, but also Iran would h�ve most likely involved in such pointing in a definite direction. UT-772 was blown up by a an operation. The precise motivefor the bombing, however, to-kilogram charge of Semtex explosive, loaded onto the remains unclear. It could have been an act of retaliation plane at its point of departure, Congo-Brazzaville. Though against France's policy in Lebanon against Syria. Some have officials in Congo claim that each piece of luggage was indicated that the targets may have been two passengers in­ checked twice before departure , Congo's Maya Maya airport volved in a large arms sale 110 the Lebanese Christians; but is known for its lax security-especially since no less than this may be a mere convergence of events, since it is rare that the personal guard of the Congolese President includes many an entire plane is blown up just for two passengers.

48 International EIR October 6, 1989 The new assault It should not be surprising, then, to find that despite the last decade of "reform" and the "opening of the door," carried out by Deng Xiaoping, once the Communist Party leadership feels itself under the slightest threat, it reverts hysterically to its true nature and carries out the repression of intellectuals and a policy of stifling the mind-all in the name of the "four Beijing leaders cardinal principles" of the Maoist Revolution. As the vice minister of Education, He Dongchang, stated, a "screen" revert to true nature must be placed over China's windows to the world, to keep the "flies and worms" of Western ideas from infesting the country. by Linda de Hoyos Accordingly, steps reminiscent of the Cultural Revolu­ tion are now being taken: In his Memoirs of a Chinese Revolutionary, the great fighter • Cuts in student enrollment. University enrollment for for a "new China," Dr. Sun Yat-sen, wages a bitter polemic this academic year will be reduced by 30,000.Most of these against the 2000-year-old theory ofFu-kueh on "the difficulty cuts are in the fieldsof science and technology, and especially of action and the easiness of knowledge." "The theory of Fu­ in the Beijing universities. The government is also cutting kueh is my enemy," Sun Yat-sen states in his preface on the back on subsidies to students. Students seeking university "Causes of China 's Stagnation," "a thousand times more pow­ education will first have to go through a training period, erful than the authority of the Manchu dynasty. The power of lasting as long as a year, with the People's Liberation Army. the Manchus could achieve only the killing of our bodies, but • A new crusade against books was launched at the Na­ it could not deprive us of our will." In reality, as Dr. Sun tional People's Congress July 6, a month afterthe Tiananmen proceeds to develop by examples in the next 100 pages of his massacre, by Xinkiang representative Seypydin Aizezi, who memoirs, it is knowledge that is difficult;once the knowledge decried "a non-theoretical, nonsocial, and nonethical ideo­ has been attained, then action is easy. "Mind is the beginning logical trend [that] has spread unchecked within literary and of everything that happens in the world." art circles. Books are written without regard to the social Dr. Sun's struggleon behalf ofknow ledge and truth is but benefits of the proletariat. Bookstalls on the streets have one indication that the Maoist Revolution was not the great become bastions spreading bourgeois liberalization ....All reform of the "old China," but a counterrevolutionarythrow­ this is a new expression of class struggle under the new back aimed at the destruction of Sun Yat-sen's republicanism situation. However, fearing that they might commit the leftist and ideas for economic construction (see EIR , Sept. 1, 1989, mistake of taking class struggle as the key link , many com­ "Sun Yat-sen's program and China's development today.") rades let the situation develop, and the term 'struggle' has Nowhere was this more explicit than in the orgy of self­ almost disappeared from our vocabulary. " destruction known as the Great Proletarian Cultural Revolu­ Books and magazines are being ripped off the shelves. tion, led by Mao Zedong from 1966-76. The crushing of the The search is thorough, as this July 25 report shows: "In "Hundred Flowers Campaign" in 1957-in which intellectu­ Hefei, Anhui province, an inspection of 208 private book­ als who were promised freedom of thought and expression stalls and 18 book wholesale departments has found 5,300 were then ruthlessly repressed-was the dress rehearsal for books advocating violence and 57,000 books in violation of the Cultural Revolution, in which the nation's universities the state publication regulations." were completely shut down and intellectuals were killed, • Purges and expUlsion to the countryside. On Aug. 22, tortured, driven into isolated countryside areas to perform Politburo member Song Ping declared that the Communist the hardest manual labor, or driven to suicide. Party has been forced to carry out a purge down to the "grass The Cultural Revolution conjured up one of the worst roots" in order to cleanse the party of "bourgeois liberaliza­ eras of Chinese history, the Ch' in dynasty, whose legalist tion." Song Ping indicated that the purged cadre would get philosophers introduced book-burning to China. As Simon the same treatment as their predecessors during the Cultural Leys points out in his book Broken Images, Han Fei-tzu, the Revolution-return to the countryside. Song Ping stated: "I theoretician of the legalist school, wrote, "The people must would like to talk a little more about the system of cadre not fall into the way of prizing knowledge, which would participation in labor. This is an effective measure that can lead them to neglect agricultural production. A people which help a cadre maintain the flesh-and-blood ties between cadre despises knowledge stays ignorant, and in that state of igno­ and masses." An order has already been transmitted that all rance it remains immune to outside influences, which is national-level Communist Party cadre who graduated from altogether to the advantage of the State's security." This was college after 1985 are to be transferred to low-level jobs in precisely Mao's prescription for the Cultural Revolution. the provinces for at least one year.

EIR October 6, 1989 International 49 Conference Report

Fe deration for a Democratic China sees models in de Gaulle, Solidarnosc by Mary Burdman

The challenges facing the new Federation for a Democratic utterly to build the infrastructureChina 's huge economy must China, founded at a conference of 170 persons on the week­ have in order to develop; Without such an infrastructure pro­ end of Sept. 22-24 in Paris, are very great. The leadership of gram, proposed by Sun Yat-sen in 1910, and currently by the FDC are all exiles who fled the People's Republic of U.S. economist Lyndon LaRouche, China will not survive. China for their lives in the wake of the June 4 massacre of many thousands of Chinese in Beijing, and are "wanted The strategic fight criminals" accused of treason for attempting to overthrow The leaders of the FDC have demonstrated that they un­ the P.R.C. government. Yet they have succeeded in creating derstand the strategic aspects of their fight fordemocracy in the foundation for a government-in-exile for China--onethat China, by challenging the poliH of the U.S. government of is determined to win the fightto rule China in the near term. maintaining its present relationship with China at any cost. This is the first time since the Communist Party took power As Chinese leader Deng Xiaoping said on June 16 to the new in China 40 years ago--on Oct. I, 1949-that any such leadership he had promoted in the wake of the Tiananmen major opposition group has been created, and the first time massacre, there is a "great Qlina-U.S.-Russia triangle of since the work of Dr. Sun Yat-sen, the founder of modem world power," and the U.S. is unwilling to do anything to China, 90 years ago, that a group representing Chinese break up that triangle. At the first public meeting of the throughout the world has been founded. conference, held at the Sorbonne University in Paris Sept. The newly elected leadership ofthe FDC-president Yan 21, representatives of political.partiesor other organizations J iaqui, who was a director of the Academy of Social Sciences of every major nation except the U.S.-France, Britain, in Bejing; student leader Wuer Kaixi; and Secretary-General West Germany, Italy, Poland (there were four representa­ Wan Runnan, who founded one of China's most successful tives of Solidarnosc), Hong Kong, Taiwan, and Japan­ independent companies-has chosen important examples for spoke in support of the FDC. its goal of establishing democracy in China: the late President Both Wuer Kaixi and FDC "eminence grise" Chen Yizhi, Charles de Gaulle of France and the Solidarnosc movement, a former senior adviser to deposed CP head Zhao Ziyang, which has just set up a governmentin Poland. For this reason, have denounced Henry Kissinger, the architect of the U.S. the claim of the Beijing government, that this small group "China Card," for his betrayal of China. At a press confer­ represents a challenge to their power, is quite justified. ence on Sept. 24, Wan Runnan respondedto the Wall Street As Yan Jiaqui emphasized in his speech to the founding Journal's question, if U.S.-Beijing relations pose a problem conference, the movement will only be effective if it goes for the FDC, by warningthat U. S. policy is not only utterly back to China and works inside China, as Solidarnosc did immoral, it is doomedto failure: "We understand the attitude in Poland. Simply by its determination to end the brutal of the United States. They are acting in their interests. We dictatorship of the Communist Party in China, which is in­ understand that a stable China is of interest for the U.S. But sanely committed to holding power, the FDC is committing China cannot be stable. The Tiananmen massacre has caused treason against the People's Republic. an upheaval in the history of China. A stable, democratic But, as the Federation has proclaimed that the "21 st cen­ China would serve the interests of the U.S. far better. We tury will be the century of democracy in China," the FDC hope the U.S. will understand this soon. The U.S. must leaders must take up another challenge, expressed by Solidar­ decide for itself, but the government must think about the nosc leader Lech Wales a when he proclaimed that Poland consequences of its actions." needs "something better than capitalism" to meet its econom­ France is playing a critical role by not only offering asy­ ic crisis. With the West as well as the Communist bloc crip­ lum to the exiles, but also allowing them to organize-in the pled by economic crisis, only something superior to the "mar­ face of bitter complaints from the Beijing governmentabout ket forces" capitalism being shoved down Poland's throat interference in Chinese affairs and violations of diplomatic will save China. Ten years offree-market reforms have failed relations. FDC president Yan Jiaqui expressed the profound

50 International EIR October 6, 1989 gratitude of the exiles to the government and people of France-and his recognition of one reason why they are Statement of Ownership supporting the movement-at the final press conference Sept. 24. "France is the birthplace of democracy and liberty," he said. "We know that tomorrow, the Chinese press will U.S. Postal Service STATEMENT OF OWNERSHIP, MANAGEMENT attack us, and that we will be denounced by Li Pengo But I AND CIRCULATION will advise him to study the creation of the Fourth and Fifth Required by 39 U.S.c. 3685 Republics. It was in London, between 1940 and 1945 , that

General de Gaulle sowed the seeds of the Fifth Republic. I I A. Title of Publication: Executive Intelligence Review hope that the attitude of the governmentand people of France lB. Publication No.: 027363 14 will influencethe attitude of the rest of the world." 2. Date of Filing: September 27. 1989

3. Frequency of Issue: Weekly except for the second week of July and the last A constitution for China week of December 3A. No. of Issues Published Annually: 50 To create a democratic China, Yan Jiaqui told the found­ 3B. Annual Subscription Price: $396 ing conference, the movement must go back and organize 4. Complete Mailing Address of Known Offi ce of Publication: 1625 T St.. NW inside China. The FDC has two instruments to do this: It is #625; Washington D.C. 20006 founding a publication, to which all and any member of the 5. Complete Mailing Address of the Headquarters or General Business Offi ces of the Publisher: T federation can contribute, which will be circulating through­ 1625 St.. NW #625, Washington D.C. 20006 6. Full Names and Complete Addresses of Publisher, Editor. and Managing out China in the next few years. And, faced with the tremen­ Editor dous discord inside the Communist Party and in China, the Publisher: ElR News Service, Inc. ; 1625 T St. NW #625; Washington, D.C. 20006 Federation must now write a constitution for its future gov­ Editors: Nora Hamerman, P.O. Box 17390, Washington, D.C. 2004 1 -0390 ernment, because this is the only way that China can achieve Managing Editor: John Sigerson and Susan Welsh, P.O. Box 17390,Wa shington, D.C. 2004 1 -0390 real stability, as the U. S. and European nations have. But this 7. Owner: New Solidarity International Press Service, c/o EIRNS P.O. Box must be a constitution for China, developed by the Chinese 17390, Washington, D.C. 2004 1 -0390; Nancy Spannaus, 1625 T St. NW themselves, if it is to succeed. It must go beyond laws and #625; Washington, D.C. 20006; Nora Hamerman, 1625 T St. NW #625; Washington, D.C. 20006 rules. This has never been done before in China, Yan said: 8. Known Bondholders. Mortgagees. and Other Security Holders Owning or Neither the Communist Party , the Kuomintang, nor the oppo­ Holding I Percent or More of Total Amount of Bonds. Mortgages or Other sition in Taiwan have created good constitutions. Securities: None. 9. For Completion by Nonprofit Organizations Authorized to Mail at Special The new constitution must enforce the end of the one­ Rates: Not Applicable. party system in China. The development of democracy will 10. Extent and Nature of Circulation be a long-term process, Yan said, because there has been 5,000 years of despotism in China. Sun Yat-sen attempted Average No. Copies Actual No. Copies Each Issue During of Single Issue to create a democratic government, but he did not succeed Preceding 12 Published Nearest for very long. Democracy must be based on "inalienable Months to Filing Date A. Total No. Copies rights" protected by the constitution. China has been through Printed 11,966 12.000 wars, violence, and conspiracies; to break this cycle, the B. Paid Circulation I. Sales Through Chinese must study the French constitution, which works on Dealers and the basis of all political parties. One fundamental principle Carriers, Street Vendors and is that the army must be a national institution and not a Counter Sales 3.105 4.345 political instrument. 2. Mail Subscriptions 6,3 18 6.777 C. Total Paid Circulation 9.423 11.122 The issue facing the Chinese is how to establish the rights D. Free Distribution by of state and rights of the citizen, and to determine what are Mail , Carrier or Other Means, Samples, the origins of the right of the state. Complimentary, and In its manifesto, issued Sept. 24, the FDC stated that Other Free Copies 1.602 542 E. Total Distribution 11.025 11.664 history had given birth to its movement, and proposed "The F. Copies Not guarantee of the fundamental and unalienable rights of man: Distributed I. Office Use. This means to live and to develop oneself, the pursuit of Left Over, happiness, of the dignity of man and his security. These Unaccounted, Spoiled After rights are the cornerstone of a modem and civilized society, Printing 94 1 336 the absolute and necessary condition of a democratic 2. Return From News Agents o o policy .... Every citizen has the right to dispose of the O. Total 11,966 materials and the fruit of his work ....The Federation for 12.000 a Democratic China is convinced that the days of absolutism II. I certify that the statements made by me above are correct and complete. are numbered. The creation of a democratic China and the NORA HAMERMAN, Editor. rebirth of the Chinese nation are close at hand."

EIR October 6, 1989 International 51 Mghanistan: Is there light at the end of the tunnel? by Susan Maitra

General Aslam Beg, Pakistan's Chief of Army Staff, told where the senior minister and mother of the prime minister reporters in Islamabad Sept. 13 that there should be direct represented Pakistan-is at the ¢ore of Pakistan's approach. talks between the Afghan Mujahiddin and Kabul's Peoples Chaotic as it is, the AIG repr¢sents a large chunk of the Democratic Party of Afghanistan (PDPA) regime once the Afghan political spectrum, of thie eight million refugees cre­ Soviet Union has persuaded Afghan leader Dr. NajibuIIah ated by the Soviet invasion. Ainy attempt to bypass it, or

"and some others" to step down. Certain diplomatic moves preempt it must fail. I were under way, he indicated, and those would soon bring The prime minister also told Reuters that her government "good news." was encouraging the AIG to br�aden its base, including the Afghanistan was only one of several burningtopics can­ mujahiddin based in Iran and local commanders in Afghani­ didly addressed by the Army Chief during the unprecedented stan, to make public its internal �nd external policies, and to two-and-one half-hour meeting with the press. But, taken act cohesively, as a matter of urgency. together with what Prime Minister Benazir Bhutto told Reu­ On Sept. 21 a Pakistan Foreign Officespokesman denied ters several days later, Beg's forthright discussion of Afghan­ that a visa had been issued to Zahir Shah for a visit to Pakistan istan marks a new determination by the Pakistan government in October. "Zahir Shah has nolapproached us for a visa," to take up the reins on Afghanistan and chart out an indepen­ the spokesman said. "We have no information on his travel dent path. plans." Significantly, Pakistan's highest authorities chose to I speak out at a time when the so-calIed Zahir Shah option was A typical superpower 'solution' being blown into center stage by the Western media forthe According to one Pakistani · analyst, the so-calIed Zahir umpteenth time in the past ten years, folIowing reports of a Shah option is a typical superpQwer-initiated "solution" that high-ranking American diplomat's meeting in Rome with the has little to do with realities on the ground. The monarch, exiled monarch. who is widely credited with having laid the groundwork for the Communists' takeover of Afghanistan in the first place, Benazir: 'AIG best framework' is rejected by a majority of the Il1embers of the Interim Gov­ On Sept. 19 Prime Minister Bhutto told Reuters that talk ernment. Having declined to involve himself in the fight of the return of the deposed Afghan king was "premature," for Afghanistan all these years. Zahir Shah has little moral and reiterated Pakistan's support for the AIG (the Afghani­ authority. Moreover, his longs�nding ties to tribal groups in stan Interim Government, the multi-party resistance front northern Pakistan and his related refusal to recognize the based in Pakistan), warts and all. "Some people feel that the Durrand Line demarcating AfglIanistan and Pakistan, must AIG has perhaps not lived up to the exaggerated expectations raise serious questions for Islamabad. that were held at the time of the Soviet withdrawal and are "If the Americans and Russ�ans think they can put Zahir thinking of alternatives," Bhutto said. "But as far as we in Shah back in there, and thereby 'fix' the Afghan situation, Pakistan are concerned, that is premature and the AIG is the they are sorely deluded," stated one knowledgeable observer. best framework with which to proceed for the time being. To Whether or not Zahir Shah em¢rges as an element in some talk of King Zahir Shah at this time would be a bit pre­ kind of political settlement in Afghanistan is another ques­ mature." tion-that the exiled monarch .s not himself "the solution" Prime Minister Bhutto's insistence on the primacy ofthe could hardly be more plain. Diplomats, it seems, are only Interim Government as the political vehicle for a settle­ now trying to elicit a statement of support for the AIG from ment-underscored by Mrs. Nusrat Bhutto' s calI for recogni­ Zahir Shah, apparently the firststep in the scheme to implant tion of the body at the just-concluded Non-Aligned summit, him into the crisis! But given tile disarray of the AIG, quite

52 International EIR October 6, 1989 apart from the general antipathy toward him, the old king to maneuver, has to ultimately lose," he said. himself may well decline to climb aboard. General Beg added that he had studied the Afghan prob­ Reportedly, Pakistani Foreign Minister Yaqub Khan has lem intensely for the past eight years, and cited the final sounded out the Saudi princes on the matter, and, though it stages of the negotiations that produced the Geneva Accords is officially denied, Pakistan Foreign Office leaks say Khan as an example of how not to handle a problem. At the time, has had a talk with Zahir Shah as well. But as some commen­ he said, the government, the Foreign Office, and the Army tators noted, the Saudis themselves are now openly question­ all seemed to be pulling in different directions. ing the capability of the AIG. Iran has already gone on record opposing the return of the king, charging it is a Western plot A few imponderables to create the impression that the Afghan resistance is now Welcome as it is, the Pakistani initiative is beset with an Islamic government. Latest reports are that the Indian imponderables. Whether the initiative enjoys the genuine diplomats, among the Afghan monarch's promoters, are in support of the U.S. is moot. The sovereign interest of erst­ Iran for talks with the Iran-based majahiddin. while allies has not counted for much in the face of superpow­ er compulsions thus far. Washington's recent abrupt decision A realistic approach to channel military aid to the field commanders inside Af­ The diplomatic flurry does represent a break from the ghanistan instead of through the AIG must have caused dis­ ritual endorsement of "the military option"-a euphemism quiet in Islamabad. According to one source, it provoked for the military overthrow of the Kabul regime-that has nightmares of a Vietnam-type process being unleashed in the covered over a yawning policy vacuum for the past ten Pakistan-Afghanistan theater. months. Arguably precious political capital has been lost in There is little doubt, in any case, that the Washington­ the meantime. authored miscalculation as to the Najibullah regime's staying General Beg's unprecedented press meeting was clearly power, and the faulty assumptions about the level of Soviet aimed, among other things, at retaking the political high aid to Kabul, following the pullout, have resulted in a serious ground. As such, it serves to put the Zahir Shah flap into loss of ground for the resistance. Pakistani commentators perspective. "Let the people of Afghanistan determine their have scored the drift, arguing that bad American policy has future destiny without any outside interference," is the way held sway only by virtue of Pakistan's default. General Beg put it. "There is no point talking about the Zahir The new initiative will test the claims of the Najibullah Shah option or any other option; it is for the Afghan people regime to political stability and viability, and the actual inten­ to decide their future, and if they want Zahir Shah or anyone tions of its Soviet backers as well. In the past several months else, that is their concern." the Kabul regime claims to have made agreements with sev­ Beg's call for talks between the PDPA and the Mujahid­ eral hundred local resistance commanders, ending their din is actually a call to restart the dialogue tentatively begun fightingand bringing them into the "National Reconciliation" more than a year ago when the Kremlin's stated willingness process. Indian journalists fresh from Kabul report that ev­ to dump Najibullah led to two meetings between AIG and erything is coming back to normal in major cities, universi­ PDPA representatives, first in Saudi Arabia and then in Is­ ties and schools are open, and shops are doing brisk business. lamabad. Beg had a hand in pressing the Soviets into opening Some 400,000ref ugees, Kabul claims, have already returned direct talks with the Mujahiddin at that time. From August to their country. Dr. Najibullah, it is claimed, is the great 1988, when President Zia ul-Haq was killed, through the peacemaker-in the words of Indian commentator Bhabani November elections that brought the PPP to power, it was Sen Gupta, the one Afghan leader who can be negotiated General Beg, together with the then-caretaker President Ghu­ with with confidence. lam Ishaq Khan, who was in charge of Afghanistan policy. The recall of the Kremlin's "wunderkind," Yuri Voront­ General Beg scored the Soviets' subsequent decision to sov, the deputy foreign minister assigned as ambassador to continue backing Najib as "as bad a decision as the 1979 Afghanistan during the critical Geneva Accord period, has intervention in Afghanistan." Now, Beg told reporters, he been taken as another signal of Moscow's confidencein Dr. had reason to believe the Soviets may again be willing to Najibullah . But that remains to be seen. It could as well dump Najibullah in the interest of working out a political mean that Moscow is shiftingits priority in Afghanistan from settlement. defense of the Kabul governmentto elsewhere . Reorganiza­ Why? Ultimately, Beg insisted, the Kabul regime's posi­ tion of the PDPA might require someone with different skills tion is untenable. Acknowledging that the Jalalabad attack than those of the Count. was a mistake, precisely because with it the mujahiddin had If Gen. Aslam Beg is right, perhaps the new ambassador abandoned their winning strategy of strangulation of the to Afghanistan, B.N. Postohov, will be drawing less on his cities, Beg said that Kabul's '!fortress strategy" could buy experience as ambassador to Denmark and more on his in­ time. But he is convinced, he said, that it is ultimately a nings as the Soviet Communist Party's Komsomol organizer losing strategy. "A force that is denied space and has no room in the days ahead.

EIR October 6, 1989 International 53 From New Delhi by Susan Maitra

Devi Lal brings his show to town litically potent in Haryana, did not The birthday bash was big, but the opposition is still fa r from even go to his father's birthday bash, reports say. looking like an alternative to Prime Minister Gandhi. It would be unfair, however, to say that Devi Lal's political activities are wholly centered around his fami­ ly. Brouglit up as a congress member, On Sept. 25 a rising star on India's self as a serious contender for higher as most Hindi belt opposition leaders , opposition political horizon, Devi posts. were and are , Devi Lal has brought to Lal , celebrated his 75th birthday in For a while V.P. Singh, the for­ the fore a number of politicians, at style. At the New Delhi Boat Club, mer chief minister of Uttar Pradesh­ least three of whom became chief the traditional venue for all sorts of the most populous state and known ministers.·All three left him over the demonstrations in the heart of the cap­ for producing prime ministers-and years, and only recentlyone , Rao Bir­ ital, at least 300,000 people, along finance minister in the first cabinet of endra Singh, has returned to the fold. with most of the opposition leaders, India's current prime minister, Rajiv In 1979, while Devi Lal was Haryana assembled to wish Devi Lal a happy Gandhi, held sway within the opposi­ chief minister, one of his proteges, birthday. tion's leadership ranks, after his part­ Bhajan Lal, musteredthe support of a Devi Lal, a Jat leader (a communi­ ing of the ways with the Congress (I). majority of the state assemblymen to ty of farmers in northern India noted But Singh's hesitant postures led him dethrone him. Three years later, the for their aggressiveness), does not cel­ nowhere. The hard-core opposition drama was reenacted; the main actors ebrate this annual event in such a leaders in the Hindi belt-Chandras­ were again Bhajan Lal and Devi Lai. grand fashion normally. But this year, hekhar in Bihar and Aj it Singh in Uttar In 1985 Devi Lal set up the Harya­ there is a general election around the Pradesh-were busy cutting each oth­ na Sangharsh Samiti, with mass sup­ comer. In the absence of any opposi­ er down to size. port in the state. This organization tion leader who can garnersupport of Seeing his chance, the wily Jat helped him the most in reviving his all the others, Devi Lal is considered leader made friends stay at the center political life . a rising star. of the stage, however small it may be. The Boat Club show was impres­ This is highly' unusual since Devi That is not to say that Devi Lal is sive-what the locals call a realtama­ Lal is chief minister from Haryana, a leading a resurgentopposit ion, or has sha, an entertaining farce. Devi Lal's small state tucked in between Delhi become acceptable to the masses of volunteer force, dressed in green and Punjab, and thought unlikely to India-or even to his newly cultivated shirts and green trousers, behaved deliver a leader who would be accept­ friends. He has his hands full in his well that day, to everyone's relief. able to the rest of India. But, things little state. Typically for Indian poli­ The opposition leaders were elated at have gone rather well for the J at leader tics, Devi Lal's sons also rose in the the show of people's stength. Ramak­ lately. state political scene and are engaged rishna Hegde, the former Karnataka Devi Lal' s finest hour came in in a bitter war against each other. state chief minister, whose star began June 1987, when under his leadership Last October, Devi Lal astounded to wane when New Delhi exposed his the Lok Dal (B) swept into power in all when he resigned from the chief involvement in illegal wiretapping, the Haryana state Assembly elections. ministership, ostensibly to play a gave the battlecry to fight the Con­ The ruling Congress (I) Party was greater role in national politics. The gress (I) as a united opposition in the nearly wiped out, making Haryana the real story was that Lal' s decision came coming elections. only state in the Hindi belt to come about after sharp differences with his Devi Lal, who had earlier said he under non-Congress (I) rule. eldest son, Om Prakash Chauthala, would like to see "a farmer's son" sit­ The victory was sweet revenge for who now has a major power base in ting in the prime minister's chair, Devi Lai. His aggressive and popular Haryana. refrained from voicing such thoughts campaign humbled two of his prote­ Lal was persuaded to withdraw his publicly OIl this auspicious occasion. ges, Bansi Lal and Bhajan Lal-both resignation, and it is now clear that Tamashas notwithstanding, the oppo­ chief ministers of Haryana earlier, he has accommodated his eldest son. sition is still a long way from looking who had betrayed Devi Lai. Devi Lal, This has made his younger son, Ranjit like an alternativegovernment to Raj­ a farmer's son, began to position him- Singh, most unhappy. Singh, also po- iv Gandhi's.

54 International EIR October 6, 1989 Dateline Mexico by Jacobo Frontoni

Drug legalizers and casinos which, after noting the political, eco­ The campaign to permit casinos here has been revived, nomic, and social ravages of the drug trade, goes on to lament the cost of combined with an offensive to legalize drugs. government battles against the mafia. La lornada lies, "There is no indica­ tion of a victory of the authorities over the criminal drug organizations, at least in the short term .... Given Prominent Mexican figures, includ­ store casino gambling; this is the same these circumstances, one cannot dis­ ing Ambassador to Beijing Jorge Edu­ mafia that brought Meyer Lansky and miss proposals such as that formulated ardo Navarrete and certain leading Bugsy Siegel's drug-trafficking net­ at the beginning of this month by the newspaper publishers, have joined the works into Mexico in the firstplace . British weekly Economist ....Nei­ international campaign to legalize On Sept. 20, also in El Universal, ther is it prudent to dismiss a priori drugs. This campaign is now being journalistPablo Palomino denounced its proposals stemming from ethical combined with another, long-stand­ those who "seek the installation of ca­ positions of principle." ing drive to promote the legalization sinos . . . under the pretext of 'the On Sept. 26, Granados Chapa of casinos in Mexico. Casinos have great source of foreign exchange they wrote, "It appears both improper and been banned since 1936, when nation­ would represent.' As is known, such contradictory, but the proposal to de­ alist Lazaro Cardenas was President an argument is a fallacy, since with criminalize drugs as the only means of Mexico. the authorization of such installations of combatting its abuse and the crimi­ Not accidentally, both campaigns . . . the entrance of the mafiawould nality that accompanies it should mer­ coincide with recent official declara­ be almost immediate. Gambling and it discussion and attention, above all tions by the Salinas de Gortari govern­ drugs are indissolubly united .... when an institution as above suspicion ment that flight capital that returns to Further, a casino easily encourages as the British weekly Economist as­ Mexico will not be investigated as to 'money laundering.' " sumes responsibility for formulating its origin, and that it is in any case Antonio Haas, one of Mexico's it." There is, says Granados, "a grow­ "extremely difficult" to prevent the most longstanding advocates of the ing tendency toward legalization of laundering of drug money through the restoration of casinos, has now come certain drugs under certain Mexican banking system. out proposing drug legalization. In an circumstances .... From this new Although their campaign is cer­ article published in the magazine Sem­ view of consumption, one can pro­ tainly not new, the promoters of casi­ ana, Haas says that "the war of exter­ ceed to a new perspective regarding no legalization have re-taken the of­ mination against the drug trade de­ the trade." fensive. On Sept. 17, El Universal clared by Presidents Bush and Barco Such talk is not limited to journal­ journalist Juan Bustillos charged that , ...is going to accomplish very lit­ istic mouthpieces for the drug lobby. "the effort to install a dog-racing track tle." Haas concludes that "simultane­ Mexico's ambassador to China and at the port of Acapulco is more than ous legalization worldwide and distri­ former assistant secretary of foreign firstmeets the eye. . . . Carlos Lavia­ bution of drugs by governments offer relations Jorge Eduardo Navarrete, in da, who formally appears to be the the only solution." an article published in the magazine interested party in this business . . . On Sept. 24, the daily La lorna­ Tiempo of Sept. 14, declared that the represents just the tip of the da, run by Miguel Angel Granados possibility of "controlled drug legal­ iceberg ....It is the Televisa consor­ Chapa os Chapa, reproduced an arti­ ization" was "admirably reviewed"by tium which is-or may be-behind cle from the London Economist of the Economist. Navarrete asserts: "In this promotion." Bustillos warnedthat Sept. 2, which unabashedly proposed my opinion, the response [to the drug "these centers . . . are in reality being the legalization . of drugs (see EIR , problem] ... should combine in converted into huge laundries of ill­ Sept. 15, 1989, "Bankers back drug some form elements of decriminaliza­ gotten wealth." mafia by issuing demands for drug le­ tion of [drug] use, control over sup­ The Televisa media empire, creat­ galization"). La lornada accompan­ ply, and a multilateral battle against ed by former President Miguel Ale­ ies the Economist piece, described by illegal traffickingin drugs ....How­ man, is working . hand-in-glove with the Mexican daily as "serious and wel­ ever, a well-balanced focus is not, for the hotel and tourism "industry" to re- l-argued," with its own editorial the moment, politically viable."

EIR October 6, 1989 International 55 International Intelligence

"refuted slanderous attacks by certain peo­ positIOn and rejected the Arab League's Yugoslavia crisis ple on his views following China's quelling plan, lashing out at Syria for its refusal to at boiling point of counter-revolutionary rebellion," during withdraw its 33,000 troops immediately and his interview with CNN's Newsmaker Sat­ insisting that this be at the top of the agenda urday program. The Post reports on allega­ when Christian parliamentary deputies meet The political crisis in Yugoslavia is rapidly tions appearing in the Sept. 15 Wall Street in talks il).the Saudi mountain resort of Taif worsening as the Yugoslav federal Commu­ Journal concerning Kissinger's business Sept. 30. Aoun said that he only accepted nist Party Central Committee and Yugoslav links with China which, the Post maintains, the Arab League-mediated peace under "in­ federal political leadership began holding "have sparked quite a controversy in the ternational pressure," and added that "I re­ emergency sessions on Sept. 26 in Belgrade U.S." served the right to use any means to achieve in response to plans by the leadership in the The London Times reports in its Diary the liberation of Lebanon." As for the peace northwestern province of Slovenia to assert column Sept. 20 that "The reputation of plan, Aoun said, "It is blocked." its right to secede from the federation. Henry Kissinger suddenly appears rather Pope John Paul II appealed to Muslims A meeting of the Slovenian Parliament tarnished." The entry cites Kissinger's state­ to save Lebanonin an unprecedented apos­ scheduled for Sept. 27 is expected to ratify ment on ABC News in June opposing any tolic letter to the Secretary General of the recommendations by the province's consti­ sanctions against China, and reports that Islamic Gonference, dated Sept. 7 and made tutional commission asserting the republic's "other news organizations have since been public S¢pt. 26. "May God find us, both right to secede, to associate with another investigating the business activities of Hen­ Muslims and Christians, together at the bed­ state, and to use the armed forces in the ry Kissinger" and Kissinger Associates, and side of our Lebanese brethren as they lie republic as it sees fit. "they have established that he has substan­ wounded in spirit and in body," the Pope The Yugoslav collective presidency tial interests in China." The Times quotes said, calling for an end "to what must truly threatened "grave consequences" should Kissinger's "outrage" that anyone could as­ be called the massacre of an entire people Slovenia proceed, in a statement issued sume that any "commercial consideration" . . . a country now on the road to total Sept. 26. Slovenian leader Stanovnik could affect "the judgments that I expressed destruction ....The disappearance of Leb­ charged that the Belgrade federal authorities publicly," but notes that ABC said it would anon would undoubtedly be one of the have launched a "war of nerves" with Slov­ not have used him, had it known of his com­ world's greatest tragedies. Its preservation enia, warned that any use of force against mercial ties. is one of the most urgent and noble tasks Slovenia by Belgrade would be counterpro­ which the world is called to take up in our ductive, and said he hoped that "reason day." The Pope asserted that Lebanon must would prevail." Another Slovenian spokes­ be freed "of every occupying force." man launched what BBC characterized Arab League adopts Sept. 26 as an "extremely strong rebuttal" Syrian plan fo r Lebanon to Belgrade, and said the mood in Slovenia is defiant. The Arab League's mediators of the Leba­ Israelijournal warns B BC reported that there is growing spec­ nese crisis apparently adopted Syria's de­ ulation in the country about a "possible use mands for greater power-sharing with the of Soviet military threat of force" by the central authorities to rein in Islamic population in Lebanon, according the Slovenians. to the Christian Science Monitor Sept. 27. The Israeli journal Defence Up date echoed Arab League troubleshooter Lakhdar Li­ EIR 's "Global Showdown" analysis of the brahimi had announced that the five-mem­ threat of lhe new Soviet post-nuclear offen­ Communist Chinese rush bercommittee had ordered an end to Syria's sive doctrine, in its latest edition. blockade of Christian-controlled ports and The introduction to the first part of a to Kissinger's defense an opening of Beirut Airport on Sept. 22. series on Soviet Airborne Forces reads, According to the Monitor, only with "Following the Intermediate Nuclear Forces The news agency of Communist China, greater power-sharing would Syrian forces (lNF) agreement of 1987, under which long­ Xinhua, is defending former Secretary of stage a withdrawal from the Beirut area back and medium-range weapons are to be with­ State Henry Kissinger against conflict ofin­ to the easternBekaa Valley, phased in over drawn from Central Europe, the Soviets terest allegations that his public support for two years. The only apparent concession of have initiated what they call the 'Post Nucle­ the Chinese government is influencedby his the Syrian occupiers has been to lift the ar' operational concept, currently being im­ business interests in China, the South China blockade of the portof Beirut, which suppl­ plemented throughout the Soviet armed Morning Post reported Sept. 18. ies Christians. forces, followed by the Warsaw Pact countr­ The People's Republic of China's news Lebanese Christian Prime Minister Gen. ies. The cutback of forces announced by agency reportedly said that Kissinger had Michel Aoun on Sept. 27 reversed his earlier Gorbachov in his widely publicized United

56 International EIR October 6, 1989 Briefly

• POPE JOHN PAUL II called for an international"war on drugs" while on a Sept. 23-24 trip to Tuscany, Ita­ Nations speech in December 1988 is actual­ melite nuns there to move outside the imme­ Iy, and said that national and interna­ ly just one part of that new concept." diate environs of the former concentration tional organizations had "to put the "The 'Post Nuclear' operational con­ camp. brakes on the growth of the drug mar­ cept," the article says, "has not eliminated Glemp launched a counter-offensive ket." The Pope said that a spotlight the offensive doctrine prevailing for over against the ADL in an interview with the should be placed upon those who make illicit financial gain from traf- three decades. On the contrary, the new con­ sUddeutsche zeitung Sept. 28. Addressing . cept advocates a surprise attack, Blitzkrieg the phony character of the debate and ficking. style, to overwhelm NATO forces before charges of "intrinsic anti-Semitism in the they can actually deploy ....The Soviets Polish mind," Glemp declared, "If a Jewish • NORWAY reported that the So­ seem to have reached a point at which they musician in an orchestra plays wrong and viets have added an Akula-class sub­ consider combined ground and air assault you tell him, 'You played wrong,' some peo­ marine to their northern fleet. "The operations as the linchpin for future offen­ ple might already charge you with anti-Se­ Soviets are upgrading the quality and sive moves against Central Europe. While mitism for that. . . . We want the Jews to firepower of the northern fleet all the the Soviet airborne forces have received understand us [Poles 1, especially the Jews time, and there is little sign of disar­ some coverage in the We sternpress and pro­ in America, who are not understanding the mament in that area," said Col. Gul­ fe ssional media, the operational ideas be­ situation but are talking a lot." low Gjeseth of Norway's Defense hind them have remained relatively un­ Command Sept. 23. known, and only in recent NATO exercises has rear zone defense received the attention • DAN QUAYLE, the U.S. Vice it merits." Singapore prime minister President, said that "Anybody who thinks you ought to hamper, rewrite, warns of Soviet arms or modify the U.S.-Japan Security Treaty is wrong," during a visit to the Agreement on Auschwitz Singapore's Prime Minister Lee Kuan Ye w air bases on the Japanese island of emphasized that "Soviet armaments have Hokkaido Sept. 23. convent reached not decreased," in an interview with The Nation of Bangkok, published Sept. 20. • ROME has a new political party Polish Cardinal Glemp has agreed that the In responseto the Thai reporter's asser­ for its upcoming municipal elections Carmelite convent abutting the former tion that "Thailand is now no longer afraid on Oct. 29 and 30. "Pensionati-Lib­ Auschwitz concentration camp should be of Soviet expansion; we don't think it is a erta per LaRouche," a retired per­ moved as soon as possible, Sir Sigmund threat any more," Lee responded that, grant­ sons' party, will field 230 candidates Sternberg, chairman of the International ed, "It's no longer the same threat. If you and will demand the freeing of Lyn­ Council for Christians and Jews, announced are a Soviet marshal of the Red Army, you don LaRouche from prison, along Sept. 21. The controversy, fomented by the know day-by-day that if ever you go to war with the implementation of La­ drug- and mob-linked Anti-Defamation against NATO, the Poles and Hungarians Rouche's economic policies. League (ADL), had threatened to split the may not be dependable. The East Germans new Solidarity government of Poland. may well be on the other side. Who knows • THE ANTI-DEFAMATION Sternberg said that Glemp agreed to re­ whether the Czech people are more depend­ League will give its Distinguished locate the convent in a letter drafted at a able than their leaders? Definitelythe Roma­ Statesman A ward to Mexican Presi­ meeting with Jewish leaders in London nians are not dependable. So the position dent Carlos Salinas de Gortari , "in Sept. 20 . Glemp stated in the letter that he has already altered. recognition of his spirit of dynamic will implement the 1987 agreement to move "But that does not mean the Soviet leadership, which is necessary for the the convent. "Auschwitz should never be a Union has become a weak power. Its mili­ coming decade." place of controversy. There has been a great tary capability is enormous. If it can't solve deal of ill feelings and misunderstanding its economic problems whilst it has got this • THE IRISH Republican Army which we would like to clear up," he wrote. tremendous military power, it may find a claimed responsibility Sept. 22 for a Polish Prime Minister Tadeusz Mazowiecki way to solve their economic problems terrorist attack on a Royal Marines has invited Sternbergand other Jewish offi­ through pressures these forces can apply. base in southeastern England which cials to Poland to discuss the issue. We must hope that Gorbachov killed II and wounded 8-more cas­ The Vatican, in an attempt to ease the succeeds. . . . In case he doesn't and some­ ualties than any attack ever launched controversy, had stated on Sept. 19 that it body else takes over while they still have a by the IRA on a military installation would help fund an interfaith center near military preponderance, it not a trouble-free inside Britain. Auschwitz, which would permit the Car- world. Think about it."

EIR October 6, 1989 International 57 �TIillNational

Wyoming talks launch open season on SDI by Leo Scanlon

In the week following the Wyoming meeting between Secre­ and military dimensions of Soviet policy, and treats our allies tary of State James Baker and Soviet Foreign Minister Eduard as the new threat. Shevardnadze, events have shown that killing the Strategic After it was announced atthe Wyoming ministerial meet­ Defense Initiative is the main target of Soviet strategy, no ing, that the Soviet negotia�rs had agreed to drop their de­ matter what kind of agreements are reached at the bargaining mand that the issue of SDI testing be settled before any table. It remains to be seen just how far the Bush administra­ progress could occur at the START negotiations, opponents tion is willing to gamble with the program, which is rapidly of the SOl opened full throttle in their campaign to down­ losing support in the Congress. grade the program, and immobilize it through budget cuts. Ironically, the so-called "breakthrough" achieved in Wy­ The first shot was fired by National S�urity Adviser oming is setting the stage for further congressional attacks Brent Scowcroft, an enemy of the SDI since it was announced on the funding and strategy behind the SOl, the new military in 1983, who told NBC's "Meet The Press" that talks on the doctrine which President Reagan proposed in 1983 to apply SDI would be conducted on a separate track from other arms new physical principles to render nuclear weapons "impotent control issues, and would oocupy a lower priority. He added and obsolete." The SOl was the best thing Reagan did, and that it should be no surprise that the Bush administration it is about to be offered up in the service of keeping Gorba­ would do this, noting that at *e end of the Reagan administra­ chov in power, as the Soviets continue their own military tion, commitment to the program was "quite different than buildup. at the beginning." The intellectual author of the SOl was former Democratic Then, the liberal New York Times announced that the presidential candidate Lyndon LaRouche, who had made it administration was abando�ng the SOl as a major element the centerpiece of his political campaigns for over a year of strategy, and predicted that the administration would be before Reagan's 1983 announcement. LaRouche recently forced to accept major cuts in the program as a condition for warned, in the April 14, 1989 issue of EIR , that under the a budget agreement. Sen. Sam Nunn (D-Ga.), early in the combination of the worldwide food crisis, the Soviet leaders' week, had characterized the SOl as a "perishable com­ desperation in the face of their internal economic crisis, the modity." AIDS pandemic, and the biggest financialcrash of the centu­ The Times analysis was contradicted at once by Pentagon ry , a renewed commitment to the SDI is "an integral, indis­ spokesman Pete Williams, wboinsist ed that the congression­ pensable feature of any solution to these crises." Yet with al support for the program '�had not weakened" as much as LaRouche having been railroaded to political imprisonment, the Times believed, and indicated that the administration is the SDI, too, is now on a fast track to oblivion. looking to a series of upcoming budget votes to restore the The dangers facing the SOl, and other strategic programs bulk of the DoD proposal. He added that the possibility of in the administration's defense budget, have been compound­ an administration veto would figure in the final arbitration of ed by the just released new edition of the Pentagon annual the issue. report Soviet MilitaryPower, which downplays the technical Despite the optimistic assessment, and very strong words

58 National EIR October 6, 1989 on the subject from the secretary of def�nse himself, the the efforts of four "threat" categories in those areas: the War­ budget is expected to settle on a funding figure which will saw Pact, Non-U.S. NATO, Japan, and "Others." represent a drop in real funding for the SDI-the firstin the The matter is put bluntly: "It is ironic that, although the program's history. Soviet Union constitutes the greatest threat to U.S. security, Ironically , the Soviet "concession" in Wyoming will do the greatest challenge to the U.S. technology and industrial more to tie up the SOl than any bargaining strategy. Having base will almost certainly come from the United States' own removed the SOl as an issue in the START talks, the Soviets allies." The report reasons that economic development of have eliminated its value as a "club" in the negotiations, and European, Japanese and Third World allies, to the extent that lowered its stock in the Congress. it displaces U. S. preeminence, will be athreat to the "West's system of collective security. " Real concession made by State Department Many foreign analysts have already concluded that the The entire story of a "concession" in Wyoming is likely United States has committed itself to an economic relation­ little more than showmanship by James Baker, another foe of ship with the Soviet Union which views the traditional allies strategic defense. Several days after the Baker-Shevardnadze as potential enemies. An indication of the gratuitous nasti­ meeting ended, Yuri Nazarkin, the chief Soviet negotiator at ness which infects U. S. policy circles is the firstever listing the START arms control talks in Geneva, reported that his of Panama among the nations categorized as "Soviet Client delegation would not budge an inch on the question oflinkage States. " to SDI. Nazarkintold reporters that he wanted to discuss with The most remarkable feature of this edition is the cover­ Americans "in a pragmatic way" what work could and could age of Soviet military capabilities which has vanished: not be permitted in the U. S. program. According to the Lon­ • The 1987 version contained a discussion of the training don Dai/y Telegraph, "Mr. Nazarkin said that, in the Soviet and doctrine which shapes the deployment of Soviet spetsnaz view, certain tests of space weapons could be allowed, but (special) forces; the current edition does not even list the only those connected with research. He stressedthat , despite word in the ind�x. the new Soviet position under which a Star Wars agreement • The 1987 version featured the only operational ABM was no longer a precondition, the Soviet side still upheld the system in the world-

EIR October 6, 1989 National 59 world forces finda common approach and a common way to prevent terrorism and protect all human beings." Meanwhile, Literaturnaya Cazeta South America ana­ lyst Vladimir Vessensky attended the conference to provide the other "humanitarian" c�ver for the event: combatting international narcotics cartels. A self-professed expert on South American narco-terrorist organizations, Vessensky of­ fered Soviet intelligence assistance to the Bush administra­ tion's recently proclaimed war on drugs, participants report. Vessensky even plans to co-author a book on narco-terrorism CIA, KGB agree with Rand terroristexpert and conference participant Robert Kupperman, these same U.S. attendees state. to bash u. s. allies Indicating the importancethat the White House placed on the gathering, U. S. participants included former CIA director William Colby, who is now back at the agency as an adviser by Joseph Brewda to CIA director William Webster; former covert-operations specialist Miles Copeland; and former CIA deputy director One day after the conclusion of the Wyoming discussions Ray Cline. Both Copeland and Cline have remained top U.S. between U.S. Secretary of State Baker and Soviet Foreign intelligence hands, whatever their formal ties to the CIA may Minister Shevardnadze, a little publicized conference began now be. Both have been close to President Bush for at least at Rand corporation headquarters in Santa Monica, Califor­ two decades. nia. The participants at the Sept. 25-30 conference were The conference itself was sponsored by the Washington, exclusively retired senior officialsof the U.S. Central Intelli­ D.C.-based Center for Stra�gic and International Studies gence Agency and the Soviet KGB . The topic of their closed­ "Terrorism Committee," throughits front organization, "The door event, according to U.S. participants, was joint CIA/ Search for a Common Groupd." Cline runs the Terrorism KGB operations against international terrorists and interna­ Committee; former Cline aid!! John Marks directs the Search tional narcotics-traffickingorganizati ons. for a Common Ground. No minor affair, Terrorism Commit­ While the exact results of the Wyoming and California tee members include former CIA director Richard Helms, discussions are not known at this time, both events were former National Security Adviser Zbigniew Brzezinski, for­ intended to further the appeasement process begun at the mer U.S. Army Chief of St�ff Gen. Edward Meyer, long­ 1986 Reykjavik summit. Observers note that the CIA/KGB time CIA propagandist Walter Laqueur, and Rand specialist conference may have led to secret agreements to mutually Robert Kupperman, whose finn hosted the event. support the post-Reykjavik U.S.-Soviet deals, even against traditional U. S. allies. The Santa Monica conference appears Economic warfare to culminate a series of secret meetings between the two Although the reported ag�nda of the conference centered intelligence services begun in 1987, where broad-based joint on a combined war against terrorism and narco-terrorism, operations were discussed under the cover of combatting some Western European ob�ervers feel that a more likely narcotics and terrorism. subject of discussion was battering U. S. allies in Europe and Those who know the murderous record of Soviet intelli­ the Third World through economic and financial warfare. gence, will not be pleased to learn that theKGB has expressed That this was a key agenda topic, some say, was indicated enthusiasm over the California meeting, in comments made by a strikingly unusual speechmade by CIA director William by its participants to the U. S. Armed Forces publication Stars Webster on Sept. 20, shortly before both the Wyoming and and Stripes. "This is the first time that former senior officials Californiadiscussions . of the KGB and CIA have met in a public policy forum," In his address before the World Affairs Council of Los gushed Soviet delegation leader Igor Belyaev, political ob­ Angeles, Webster asserted that the agency would be shifting server for the semi-official KGB mouthpiece Literaturnaya its strategic focus away from East-West military issues, since Cazeta. "This is a real opportunity for an exchange of views the Cold War is now allegedly over. Instead the agency would and for the development of a new approach in the internation­ refocus its attention on economic matters, since "intelligence al arena," he added. on economic developments has never been more important." Former KGB counterterrorism chief Valentin Zvezden­ Having established that theme, the U.S. intelligence chief kov articulated one of the two primary public-relations for­ asserted, "Our political and military allies are also our eco­ mulations used to justify the proposed pact, in his comments nomic competitors," and ominously stated, "The national to the same publication: "The terrorism mafia is pooling its security implications of a com.petitor's ability to create, cap­ resources." Consequently, he intoned, "It is time that the ture, or control markets of the future are very significant."

60 National EIR October 6, 1989 Lest the audience misunderstand the target of his address, as a formal agenda item at the Baker/Shevardnadze meeting Webster explicitly labeled "Japanese and European surplus in Moscow that May. capital" as "creating some potential risks." In a threatening allusion to Third World nations' considering debt moratoria And drugs on their unpayable debt, the CIA director also asserted that While terrorism has been the main pretext used to justify "along with the globalization of international finance has joint CIA/KGB operations, the narcotics plague has also been come the greater use of the financial system by governments an issue seized upon by both powers as a public relations and groups whose objectives threaten our national security." basis for ever-expanding collaboration. This ploy goes as far back as 1987, and was also initiated by Moscow. Earlier preparations: terrorism According to U.S. State Department spokesmen, the idea Although the Santa Monica intelligence-planning confer­ that U.S. and Soviet intelligence services could assist each ence is a dramatic development, it is not the firstdiscuss ion of other in combatting drugs first began in 1987. That year, its type to have taken place since the Reykjavik appeasement Canadian embassy officials in Moscow were startled when process began. Some say that Soviet dictator Mikhail Gorba­ they were abruptly contacted by officials of the Soviet For­ chov firstproposed the pooling of the resources of the KGB eign Ministry with information regarding a narcotics ring and CIA himself, back in December 1988. The pretext for active in both the U.S.S.R. and Canada. Breaking all prece­ the proposal was the terrorist bombing of Pan Am Flight dents, S$>viet officials warned Canadian authorities that the 103 over Lockerbie, Scotland that month. This pooling of Soviet freighter Buktarma was carrying fivetons of Afghan resources would be popularly justifiedby a humanitarian war hashish from the Soviet port of Murmansk to the Canadian against terrorism. port of Montreal. Royal Canadian Mounted Police officers According to London Sunday Mail correspondent Wil­ promptly flew to Moscow to exchange narcotics intelligence liam Lowther, Gorbachov's December initiative met with a with Soviet Customs authorities on the ring. A multi-million favorable response. Lowther reported in a April 7, 1989 dollar Montreal ring was busted as a result. Later that year, column that "preliminary talks were held between the Ameri­ Soviet officialstipped off British police authorities to another cans and the Russians in Moscow, and CIA bosses decided narcotics ring, to the delight of the pro-detente British press. to consult with British intelligence-their chief allies-in Responding to this unexpected offer of assistance, U.S. London." After noting British intelligence enthusiasm over Assistant Secretary of State for Narcotics Matters Barbara the Soviet offer, Lowther further projected, "Intelligence Wrobloski, and former Drug Enforcement Administration officials from the three services may meet to plan actual joint chief John Lawn, traveled to Moscow in April 1988, to hold operations as early as June" 1989. talks with their counterparts on intelligence exchanges. One of the first public responses to the Gorbachov De­ Then in January 1989, Secretary of State Baker and Sovi­ cember 1988 offer was that made by CIA director Webster et Foreign Minister Shevardnadze signed a Memorandum in an exclusive interview published in U.S.A . Today on Jan. of Understanding at their Paris meeting which provided for 12, 1989. Asked ifhe believed that Soviet intelligence would government cooperation on the chemical analysis of seized share information with the United States regarding the Lock­ narcotics. The midwife for that agreement, former U. S. Am­ erbie Pan Am bombing, Webster stated: "I would guess they bassador to Bulgaria Melvyn Levitzky, himself no stranger would. It's a view that I have held that conflicts with many to the intelligence world, has now replaced Wrobloski as the who have thought that the Soviet Union was monolithically State Department's top narcotics officer. Since that time, responsible for terrorism.... We 've had intimations of a expanding U.S. -So viet intelligence-sharing on narcotics desire of the Soviets to work in the world arena to reduce the trafficking has been a formal agenda item at every Baker/ threat of terrorism." Shevardnadze meeting, according to State Department An unprecedented January meeting between U.S. Am­ spokesmen, including at Wyoming. bassador to Moscow Jack Matlock and then KGB chief Vla­ As in the related case of Soviet responsibility for much dimir Kryuchkov, shortly following Webster's press inter­ of internationalterrori sm, the U. S. governmenthas suspend­ view, furthered the process, some analysts note. That same ed all reference to Warsaw Pact involvement in the narcotics January, Cline's "Search for a Common Ground" held its trade, as the negotiations have proceeded. firstCIA/KGB meeting in Moscow, to discuss collaboration In March of 1989, the State Department issued an Inter­ against international terrorism and narco-terrorism. national Narcotics Strategy Report which flatly lied, "There Then in March 1989, Secretary of State Baker and Soviet is no evidence of any current involvement of Bulgarian gov­ Foreign Minister Shevardnadze raised the discussion to a ernment, government agencies in drug trafficking." That state-to-state level at their Vienna, Austria meeting. U.S. same month the executive director of the U.N. Fund for Drug administration spokesmen report that intelligence agency Abuse Control, Giuseppe di Gennaro, traveled to Bulgaria collaboration in a program of measures against terrorism was to ludicrously laud "Bulgaria in her struggle against illegal first formally discussed at that meeting. The topic continued traffickingof narcotics."

EIR October 6, 1989 National 61 LaRouche still in mortal danger at Rochester 'medical' prison

Warren 1. Hamerman, national coordinator of the legal de­ There is a tendency for institutional people, such as those fe nse team fo rfo rmer U.S. presidential candidateand politi­ in the prison system, or especially in government, to join cal prisoner Lyndon LaRouche, issued the fo llowing state­ ranks and rally their employees to cover up for embarrassing ment on Sept. 30 concerning !.aRouche' s medical statusfo l­ facts by saying that nothing but the standard procedure was lowing what can only be classifiedas an attempt to murder followed. This is based on a general untruth, because the him under the pretext of a medical treatment. (See EIR, Sept. prison system is not composed entirely of senior citizens. 29, fo r a chronology of what was done to the 67-year-old Therefore, if the senior citizens in the prison system are statesman.) treated exactly the same way as 20- and 30-year-olds, there is a basic problem in the policy of standard heavy labor. The purpose of this report is to update my bulletin of Sept. 16, 1989, on the status of Lyndon H,. LaRouche, Jr. , and to *** dispel rumors or any misleading interpretationsof his person­ The fo llowing is a small selection of the thousands of al situation at the Rochester Federal Medical Center. telegrams and letters which have arrived at the offi ces of Lyndon LaRouche has continued to suffer serious fatigue President George Bush and U.S. Attorney General Richard and muscular pain as result of cumulative over-exertion. His Thornburghby concernedcitkens around the world protest­ current status is that his medical condition is being examined, ing the cruel mistreatment of LaRouche. (Messages are di­ with respect to the previous report of the events which occur­ rected to President Bush unless otherwise noted.) red between Sept. 11 and Sept. 15, 1989, before and after his surgical procedure. We received news from different people about the severe It should be emphasized that there was no problem with judgment against Mr. Lyndon LaRouche, an American poli­ the medical personnel at the Mayo Clinic, as opposed to the tician who is well known in many parts of the world. Bureau of Prisons. All of the facts in that statement are true. Since the punishment with life-long imprisonment is in The problem in his mistreatment was that the Bureau of democratic countries never given in case of somebody who Prisons used strong cathartic medication and compelled Mr. is not able to pay money back, this whole matter creates the LaRouche to heavy labor while that medication was being impression to people in other countries that political reasons, administered before and after his surgical procedure. This and not only crimes are responsible for the severe judgment. caused a dysentery-like condition for Mr. LaRouche prior to After the news we got today about an operation he had to the procedure, a condition which lasted for nearly 48 hours. undergo because of a polyposis in the rectum, he was not The prison system also compelled him to resume heavy labor allowed to rest a day before the operation and also not after to the point of virtual collapse only hours after the surgical the operation was finished, but was forced always to work procedure. This in fact was contrary to the Mayo Clinic's eight hours. medical request for his preparation. If this is really true, we as members of the World Federa­ The inmate is a senior citizen who has been compelled to tion of Doctors who Respect Human Life have to protest in do heavy labor characteristically done by people who are 20- case of a patient who is 67 years old, because such a treatment 40 years old. This has caused persisting muscular pain and would be against all medical and human rules. fatigue. While Mr. LaRouche's current status is that he is Since we cannot think, that such things are corresponding being medically examined, there is a very clear pattern of with your worldwide battle for human rights-for which someone in the prison system trying to break him down physi­ we are very thankful-we beg you, dear Mr. President, to cally and accelerate his demise. In plain language: This is an investigate this case and to stop if possible such violations of attempt to murder him by a process not unsimilar to that Human Rights, if they really should have happened .... which occurred in Nazi concentration camps or other prisons Dr. Med. Siegfried Ernst, President of the Europaische which have intended to physically wear down a Arzteaktion and Vice President of the World Federation of prisoner .... Doctors Who Respect Human Life, VIm, West Germany

62 National EIR October 6, 1989 Dr. Med. Georg Goetz, Vice President of the Euro­ country, if it were not for a severe human case, and a case of paische Arzteaktion, Augsburg, West Germany violation of the most fundamental right of every person, the right to life. Mr. LaRouche is 67 years old, and has been *** forced to carry pots and pans and to work in a jail kitchen "I am outraged to learnthat Mr. Lyndon LaRouche, im­ after an intestine operation. At this age, such efforts can tum prisoned in Rochester, Minnesota, was reportedlyforced to a to be fatal. full work schedule until shortly before undergoing a surgical As a singer, I do not know much about politics, but from procedure and alreadyduring the night afterwards. And this the many Verdi operas I sang in the thirty years of my career, despite considerable physical weakness due to a liquid-only I know that human life and justice are worth defending. I call diet and heavy laxatives he received in preparation of the on you, Mr. President, to put an end to this mistreatment procedure. towards Mr. LaRouche and to reaffirm your committment to I urge you to immediately take steps in order to end this life and justice. inhuman treatment that without any doubt jeopardizes the Best regards, life of the 67-years-old man. Otherwise the world will hold Fedora Barbieri the government of the U.S. responsible for any conse­ Mezzosoprano, Florence, Italy quences. Dr. Adam, National Chairman of the organization Pro *** Vita-Movement for the Human Right to Life, Austria I wish to call upon you to investigate the injustice done Dr. N aef-Hofmann, Vice President " J a zum Leben, " Sec­ to Lyndon LaRouche in Rochester, Minnesota. Rectify it. I tion Zurich, Switzerland earnestly request that you give an immediate presidential Prof. -Dr. Nieboer, Prof. of Procedural and Penal Law, pardon to Lyndon LaRouche and to his six associates. May Criminal and Forensic Psychiatry, Catholic University, Til­ all the world admire your rightness, praise our nation and all burg, The Netherlands we Americans be proud of our good strong President Bush. God bless America! *** Rev. Andrew Bonet As medical professionals we wish to register our strong Pastor of the Shrine of Fatima & St. Cajetan Brooksville, exception to the treatment Mr. LaRouche has received at the Florida Federal Medical Center at Rochester, Minnesota .... We especiallyob ject to medical and surgical, diagnostic *** and therapeutic procedures being used as a pretext for coer­ To all the people of the United States who believe in cive mistreatment of an individual in custody. This episode freedom and justice and the rule of law. It is of great concern is an affront to the medical profession in particular, as well to those of us here in Australia that we see the criminalabuse as civilized standards of behavior. We fail to see where of your most courageous patriot, Lyndon LaRouche. The maintainence of relations with the Soviet Union requires us railroad conviction in a Virginia court alone was beyond to emulate the brutality for which they have become so noto­ belief. But now to learnof the medical abuse and subsequent rious. outrages in a Minnesota prison of this just man is more fitting Dr. Jacques Riviere, physician, Bethune, France for the Soviet police state rather than the land of Ben Frank­ Dr. Jean-Alain Scemama, dentist, Paris, France lin, Washington, and Lincoln. Dr. Rougemont, physician, professor, chairman of Phy­ The legal people who have had the courage to support sicians Against Nuclear War, Bourg-en-Bresse, France the Friend of the Court petition need to be commended in an Colette Crassier, nurse, Ville d' Auray, France age of amoral career watching. As the socialist governments Marie-Helene Touboul, dentist, Chaumont-en-Vexin, of Australia undermine our freedoms, we look to your repub­ France lic to be a light shining forth for liberty and the dignity of man in God's image. I believe it was one of your great *** statesmen who said: "We must hang together gentlemen, or I was informed that Mr. Lyndon LaRouche, whom I else we will surely hang separately." know as the initiator of the international campaign to lower John Koehler opera pitch according to Giuseppe Verdi's will in order to Executive Officer, Citizens ElectoralCoun cil, Australia preserve belcanto, is being mistreated in the Rochester De­ tention Center. I am one of the hundreds of opera stars who *** endorsed the Schiller Institute's initiative to go back to We wish to appeal for your intervention in the case of Verdi's pitch, and you may have heard me sing in records. Lyndon LaRouche and associates jailed this year on charges I can assure you, Mr. President, that I would have never of fraud and corruption which appear to bear little relation to meddled with political affairs, particularly not in another fact. For a man of such standing and of such age (he is in his

EIR October 6, 1989 National 63 ,� that Gettings had to con nue to "re presen(: Billington . He also declared that Bil ington was fully competent to t , stand trial. jBillington forced to stand Thus, Billington is n w being de prived of his Sixth/'! Amendment right to cou sel, since Getti�gs, has t>ecome lrialwi th hostile lawye r openly hostile to his clien , to the point of arguin� num�r- . ous times in open court. in concert with; the prosecu­ �(fhael Billington, a nationally known activist in the tion-and in the media, at his client shoul d be declared ,political n o was forced mentally incompetent, an insane. movement of Ly d n LaRouche, to beginhis trial on charges of "securities fraud"in the Com­ Qlonwealth ofVirginia on Sept. 28, even though his own Soviet-style abuse 0 psyclliatry , attorney has, Bi l n t n charged, "tak n therole of It was on Sep . 18, ter Billington decided 'that he as l i g o e on t an adversary." wanted a jury trial, that Billington's attorney Gettings Asserting his constitutional rights a jury trial and a raised the issue of s c o p tence to stand to hi� clifnt' m e tri8I� lawyer of his own choosing, and not to be subjected to Gettings was seeking to, �ithdraw from the case, he said, continuing "psychiatric examinations" as demanded by because Billington did not agree with him on' ha:ving'a, both the prosecution and his own lawyer, Billington filed bench trial , in which the dge would decide 0/:1his innp,­ an emergency pro se motion in the Roanoke County Cir­ cence or guilt, inst ad f a jury. Billington, Getting� e t . cuit in Salem, Virginia 25 (see last claimed, was not f his own free will." Court on Sept. week's acting " for the f4Utext) . ProsecutorJohn R ss 11immediately a ]JJR u 1 de!JWided psr­ �illington is one of 16 persons indicted in Virginia in chiatric exam, which w ordered by Judge' We<;kstein. ,.Fe bru ary 1987 as part of a national effort by the "Get But, when the first exam certified Billingtotl to be sane, LaRouche" forc . alr a y convicted on Russell and Gettings secoqd 'one, by "an task e He was e d simi­ de�anded a lar in a frameup trial in federal court, along expert in cults," Judge Wec st n acquiesc�, with the charges with k ei '.4Rouche and fiveothers , and has been a politicalprison­ proviso that Billington cJdd objectto the e�arnination if i d Ver since J alluary . t involved so-calle cultlleprogramming." Billington was forced to file pro se, that is, on his own Prosecutor Russell c ose the University of Virginia behalf, without a lawyer, because he was being denied I i t Psychi try , and Public Po licy as the nst tu e of Law, the right to counsel choice. S pt 20, h had of the second am. its Y of his On e . e location e This institute brags in fired attorney Brian Gettings, but the Court refused to own annual report about i s " S!Tong" relationship with the that fact. Attorne , General's Office and the FBI.... <. recognize Commonwealth On Sept. 25, Billington was taken to the University Both of these offices are intimately involved in the "Get Ins it te Psychiatry,Law and Pl!blic LaRouche" hich provoked of Virginia t u for Policy strikefor ce, !he prosecutions psychiatric exam n on, refusedto te ­ against illington . [or i ati but submit to in r B rogation. In addition, the dire tor of the Institute, Richard J. Then, aftera hearingon Billing s mo­ Bonnie, the of the several-hour ton' is self-descri ed "granddad" marijuana tion 26, Weckstein ruled leg lizat on a, ' ovement which LaRouche and Sept. Roanoke Judge Clifford a i movement,

60s) to have been jailed with hard labour fo r so many years pornographers, drug dealers, Satan-worshippers, ruthless in­ is inexplicable to us-and bewildering. Your great Republic ternationalists, etc., etc .-h�s been trapped by his enemies has always ranked high among the nations in dispensing and "had the book thrown at rim" in court. Yet he has every justice at home and abroad. Your Constitution has been a mark of being a true patriot-and a gentleman. Even the model for many in this respect-yet never to my knowledge, charges brought against him Iby liberals and leftists (he him­ has a Court in New Zealand (which has no Constitution) self espouses the Christian p,rinciples which made America handed down such a sentence for such a "crime"--even if great) were heavily wei�hted against him. He was the person had been guilty of it (which LaRouche wasn't). fo redoomed because governrental agencies themselves had Even a convicted spy-and there is nothing lower than that­ closed down the firm charged with repaying his investors. or a rapist or multiple murderer would probably get offwith And a savage campaign of +lification in the media had re­ far less. But Mr. LaRouche, because he has been brash duced his credit rating almost to nil. enough to expose and oppose in his publications people who PLease do order a re-trial bfthis man, under normal tradi­ are real enemies to the American way of life--Communists, tional procedures, where prbjudice can have nothing to do

64 National EIR October 6, 1989 Billington went directly up against in the late 1970s .. , continuing bis representation. 'But' when Bi1liflgton cited these facts to Judge Judge Weckstein concluded the h aring with two ruh . !Weckstein, the judge ordered him to go ahead the ings: first, that there was not "one ota or scintilla of ; with anyway. This left Billington with no alterna­ evidence" that Billington was incom tent; and second; examination live 'but to file his pro se motion, while exercising his that be would not allow Billington to ire a new attorney. cOllstitutional right to cooperate in the psychiatric ex- Billington was thereforeforced to gin jury selection ' " . not ammatlon. and trial, with Gettings as his attorne . While Gettings is '! ':it: ;:}i � attempting to appear proper in his be is representation, Who's set up? , also appearing on local televisionh �egularclient.ly, making During the course of the 26, Judge chargeslhat he been "set up" by I hearing Sept. has Weckstein he ard testimony on both the issue of Bi1ling­ This coverage , plus the extensiv . coverage of Ge t. and on a motion by Get­ tings's original chargethat Billi gton •• as "incompeten. t()n;smental competence, new n tl' tings to withdraw from the case. has significantly pois ned the environ ent in this smllll, o , , Dr. Steven Hoge of Institute testified that he could one· newspaper town. In ddition , Bil� ngton s beingpr e­ the a l i ,n6t make an evaluation of Billington, since thedefen dant vented by the local sheriff from bot� normal telephone had refused to cooperate . Prosecutor Russell asked Hoge access and visits from paralegals, and ' s thus restricted to '} 'lif an individual had made a decision manifestly not in contact with his hostile attorney, and . s assistant. "'h his self-interest, but for a higher purpose ," would you Billington 's only recourse , ac ording to Judge 'Chi:\llenge his compe ence? Hoge said he would want to Weckstein, is to submit on-the-reco objections wben t eX)�mine the ·individual further. At this point, Russell Gettings does not do what he wants. changedh is tune , and argued that Billington was compe- So far, Billington has entered tw* such objection�. , te �t'to s�nd trial, and that he was essentially trying to The first is tbat Gettings refused to e a motion for a , m:nipulate the court by firing Gettings. He asserted that change of venue, despite the flurry of amaging publi�'itf" Billington could not be represented by Attorney' John on the eve of trial . The jury was ch sen in only 'a. fe w " Flannery,whom he �ad hired tile week before, because hours . The is that Gettings has efused to take any.!!! second of alleged conflicts ofinterest. action to provide Billington adequate ccess to paralegal!" Th e other part of the hearing with Gettings 's beJp, despite his continuous requests Access of parale­ dealt renresent a.tion of Billington . Gettings's own attorney, gals has been upheld as a right of the accused, in recent Harvey Cohen, argued that Gettings should be allowed to federal courtdeci sions. from the case on the ' grounds of a "complete At present, Billingt n appears t be stymied fro �':� withdraw o , ;�� �akd()wnof all communications" with Billington. stopping the farcical proceeding wit appeals to higher ·'Gettings then to declare that he believed that he state courts, or federal court, because ose courtsre quire , rose tfl ''iJW� "set up" in bis representation of Billington, and that a verdict prior to accepting a case forre view. • Billirigton was actingas a "tool of the organization." Get­ At present, Judge Weckstein, pros cutor Russell, and tings then went on to implythat a message received from attorn ey Gettings all seem to be rus ing to get suth a ",Lyndo n LaRo uche concerning treating him "charitably" verdict, with the maximum efforts t that it ensure 'is was a threat (!), which made him feel uncomfortable in "guilty. " �,

with the verdict--or the sentence (which seems to be unac­ Rouche, 66 years old, be treated in prison in conformity with countably severe). He has been in jail 231 days now. If he the humanitarian standards and care that his age demands. stays there it may well cost him his life-by direct assassina­ Imprisoned after a trial only two mobths long in circum­ tion if by no other means. (You would be aware of the possi­ stances which several internationalju ri�ts consider to be sim­ bilities here). . . . ilar to those of the famous "Dreyfus kffair," Mr. Lyndon M.V. Thorn (Mr.) LaRouche has the right to be treated within the strict terms Secretary , Coalition of Concerned Citizens, New that the law guarantees him, with due attention to his being Zealand in his sixties. I appreciate Your Excellency's attending to this. *** Francisco Kuster Dear Attorney General: Federal Deputy, Brazil In the name of all nations' joint effort to guarantee human rights, I request of Your Excellency that Mr. Lyndon La- ***

EIR October 6, 1989 National 65 As a member of the National Congress of the Federative organizations of violating human rights. Now, your country Republic of Brazil, I feel deeply perturbed by the inhuman appears to be persecuting combatants of Marxism, narco­ treatment and by the forced labor regime to which Mr. Lyn­ terrorism, and internationalusury . don LaRouche has been subjected in the Rochester, Minneso­ May God permit, that through His Blessed Mother, the ta, federal prison, a torture treatment appropriate to the worst Holy Virgin Mary, you be illuminated, Mr. President, so tyrannies and the most bloody dictatorships, which violates that you may stimulate and ¢ncourage the strengthening of the most cherished principles of dignity and human rights Western civilization; so that you will not be called upon which were consecrated in your country's own Constitution, to be the executioner of moral values, thus destroying that 200 years ago. freedom of mankind attained at such a high cost to Christian I anticipate, Mr. President, that Mr. LaRouche's situa­ civilization. tion be immediately changed for the benefit of the prestige With all good wishes for a successful term in office, and of the United States and of its government. for your Nation, we remain, Jose Carlos Saboia Sincerely yours, Federal Deputy, Brazil Reverend Father Luis Moises Jardin Jorge Cesar Quadro, president, Prolatin *** Buenos Aires, Argentina, Abundant information, provided by important world per- sonalities relating to the violation of human rights in your *** country, has reached us here in Argentina. As Argentine We, the undersigned, are citizens and legislators of Mexi- citizens and as Catholics, allow us to call your attention to co, members of the LII Legislature of the State of Sonora, this fact, given that your country asserts leadership among Mexico. We areactive in our country's democratic and politi­ the nations of the world. cal life, and thus, we are persons with a profound conviction It has always been Soviet terrorism and the communist about the importance for the world of a growing adherence nations which systematically violated the fundanientai prin­ to respect for human rights. ciples defended by our Faith. As we enter the third millenni­ For those reasons we view with much concern the case um of Christianity, civilization must approach a greater hu­ of the North Americanpolitic:al leader Lyndon H. LaRouche manism. Yet it is your country, and your judicial system, and his associates, who, according to reportsfrom the Comis­ which is persecuting political opponents, in true Soviet sion to Investigate Human Right Violations, and in the opin­ fashion. ion of a group of more than 400 prominent American attor­ We are gravely concernedabout the systematic violation neys led by your nation's former Attorney General Ramsey of fundamental rights suffered by Mr. Lyndon LaRouche and Clark, have suffered violations of their fundamentalrights to his associate Michael Billington. We have been informed be triedin an impartialmanner , in accordance with applicable that Mr. LaRouche, 67 years old, is forced to work long criminal law . hours at the federal prison at Rochester, Minnesota, a threat Those of us who sign this letter, do not all share the same to his physical well-being. We have always considered Mr. beliefs , or the political or pbilosophicalperspectives of Mr. LaRouche as one of your country's best ambassadors; he is LaRouche and his co-defendants. However, we share the an American patriot, who has rekindled in us the hope we common conviction that the rights of all sincere fighters for had lost in your country's leadership. You cannot be unaware social justice must be respe¢ted throughout the world, and that LaRouche supported us during the Malvinas crisis, and that all aggression against their rights of expression, by the that his clearly anti-Marxist policies have served to direct use of tainted judicial processes, must be avoided. many Hispano-American youth away from that ideological Therefore, we appeal to your nation's long tradition of plague and toward the aspirations for freedomexpressed by political democracy and equality, in order that the civil and Alexander Hamilton and other of your nation's revolutionary political rights of Mr. LaRouche and his associates are not heroes. Just as Pope John Paul II has done, LaRouche has trampled upon and their right to a fair trial is respected. denounced that crime against the civilized world-the slav­ Rep. Cecilia Soto G. (PARM) ery which narcoterrorism would impose on us. Rep. Adalberto Rosas Lopez (PAN) Therefore, in that bastion of the struggleagainst Marxist Rep. Irene Gaxiola Mendivil (PPS) tyranny, and in that indefatigable enemy of the drug counter­ Rep. Prisciliano Melendrez (PAN) culture, we can only find a committed American patriot, Rep. Guadalupe R. de Bazan (PAN) a friend to Argentina, who is now jailed and subjected to Rep. Juan Ceballos Ayala (PRI) violations which go against the most fundamental norms of Rep. Leonel Arguelles Mendez (PRI) a civilized nation. Rep. Quinardo Melendrez Montijo (PAN) Because our country fought against Marxist terrorism, Rep. A. Mendoza De LaLama (PFCRN) we were accused by your country and other international Rep. Raul Vaderrrain Otero(PRI)

66 National EIR October 6, 1989 Eye on Washington by Nicholas F. Benton

Egypt presents Nile development plan Uganda, and Rwanda and Burundi; 2) An ambitious project to expand the river's hydroelectric a limited awareness of the seriousness of the impending watershortage crisis potential was presented on Capitol Hill . in the area; and, 3) the need for a major influxof foreign aid to realize the huge Dr. Boutros Ghali, the Egyptian sible as long as the Marxist regime in potential of the project, with the $80 Minister of State for Foreign Affairs, Ethiopia was not willing to partici­ billion in foreign debt owed by the gave a compelling presentation here pate. Since 85% of the Nile's water Nile countries being a major impedi­ Sept. 25, on the need and potential for originates in Ethiopia, any real prog­ ment now to such aid. canal and related water infrastructure ress toward improving its yield poten­ Of the three, he said, the most in­ development in the nine African na­ tial was not possible without the coop­ tractible problem is the political insta­ tions that rely on the Nile River. eration of that country. bility, although the recent decision of Ghali addressed a meeting of the Ghali has traveled to the Ethiopian Ethiopia to enter into the development Global Water Policy and Technology capital of Addis Ababa 11 times to talks is a hopeful sign. Summits on Capitol Hill. The meet­ seek cooperation, and finally succeed­ Another species of problem was ings are organized by the Global Strat­ ed when the government there sent a manifested by the outrageous behav­ egy Council and are aimed toward a signal six months ago of its willing­ ior of Senator Gore, who tried to world water development conference, ness to negotiate. In the meantime, "summarize" Ghali's presentation by to be hosted by Egyptian President he said, the U.N. has responded to a twisting its meaning into a polemic Hosni Mubarak in Cairo next request by the participating nations to against population growth and pol­ summer. prepare two reports: a feasibility study luted water. Ghali's vision of an enormous up­ for a network of transport canals, Gore even implied that water is grading of the water and hydroelectric roads, railways, and hydroelectric not a benefit, but actually a bane to yield potential of the Nile was in sharp facilities on the Nile; and a report out­ the Third World, by ranting about the contrast to the zero-growth bleatings lining potential means of collabora­ effect of "water-borne diseases" of his host at the forum, Sen. Albert tion among the nine nations. Both which kill so many people. Gore (D-Tenn.). were completed in September. Dr. Ghali responded by saying, Ghali contended that the nine na­ The collaboration among the nine "We in the Third World do not have tions through which the Nile runs will nations would be based on deriving the lUXUry of choosing between the need to work together to gain an addi­ different benefits from development quantity and quality of our water. At tional 10 billion cubic meters of water of the river. Those nations that need this point, what is vital for our survival per year from the river within the next the additional water most, such as is quantity." 20 years. Egypt, would exchange the water for As to Gore's absurd charge that While the population of Egypt is a returnof hydroelectric power, which "water is the primary source of death projected to almost double from its would benefit the Upper Nile coun­ and disease" in the Third World, Dr. present 52 million by that time, the tries. Ghali countered with some facts. He increase can be met by effective in­ Dr. Ghali said that the potential detailed how his government's rigor­ vestment in canals and related infra­ for improving the infrastructure along ous health and public education cam­ structure, which will enable the par­ the Nile is so great, that a surplus of paign has been highly successful in ticipating nations to sell hydroelectric power could, with the use of new mi­ reducing the incidence of water-borne power to customers as far away as the croprocessing technology, be up for disease in Egypt. European Community. sale to other countries in the Middle By establishing safe water wells Ghali said that efforts have been East, and even in Europe. and small hospitals to dispense medi­ under way to achieve a cooperative He said that the major obstacles cation, and combining these with a approach to development of the Nile to progress in such a visionary plan lO-minute television warning aired since 1980, when the Lagos Plan of include: 1) political instability in the three times daily cautioning against Action was drafted by the Organiza­ region, notably the conflictsin Sudan, drinking from or bathing directly in tion of African Unity. However, he Uganda, and Ethiopia, and conflict the Nile, the incidence of disease has said, significant progress was impos- between the nations of Kenya and dropped dramatically, he said.

EIR October 6, 1989 National 67 congressional Closeup by William Jones

Senate approves $9.4 firstmonths of its existence. President taxable assets as investors sell in order billion for war on drugs Bush, without knowing that his com­ to reap the benefitsof the tax cut. The Senate on Sept. 27 approved, 97- ments were being overheard, com­ But as one opponent of the capital 2, a $9.4 billion budget for the na­ mented that he was "displeased with gains tax, Sen. Bill Bradley (D-N.J.), tion's war on drugs, $1.1 billion more Gephardt. He made it so personal." pointed out in a Washington Post than requested by President Bush for Although more Democrats than ex­ commentary on Sept. 27, if a lot of drug and crime-control efforts for pected sided with the administration investors try to unload their assets im­ FY 1990 which begins Oct. I. on the capital gains issue, thus assur­ mediately to pay less taxes before the The largest single allocation will ing its ultimate passage, the Demo­ rate goes back up, it could lead to a provide $1 billion for prison construc­ cratic congressional leadership had deflation of the real estate markets, tion. Funds are also provided for more used the issue to pick a fight with the sendinghousing values tumbling. law enforcement agents , anti-drug administration-and lost. Budget Di­ programs in schools, local treatment rector Richard Darroan called the and rehabilitation programs, assis­ Democrats' efforts "a kamikaze ap­ tance to state and local law enforce­ proach to national politics." The omptroller says FHA ment efforts, anti-delinquency pro­ House vote is considered a major de­ C grams, Indian and veterans health ser­ feat for the new House leadership of will be $5 billion short vices, and programs for the homeless. House Speaker Thomas Foley (D­ Charles Bowsher, Comptroller Gen­ The plan would be financed by an Wa.) and House Majority leader Rich­ eral of the United States, said that $4- across-the-board 4.3% cut in govern­ ard Gephardt (D-Mo.). 5 billion will be needed over the next ment spending with the exception of The administration's proposal several years to save home mortgage entitlement programs. The cuts will would exclude from taxation 30% of insurance programs that are jeopard­ include $1.3 billion in Pentagon the profit from the sale of stock, real ized by losses, in testimony before a spending. estate, and other assets on transactions Senate Committee on Banking, Hous­ The voting followed weeks of pos­ made in the next two years. At the end ing and Urban Affairs subcommittee turing over who would take political of the two-year period, the top rate Sept. 27. credit for spearheading the drug war. would rise to 28% and all gains would The Federal Housing Administra­ Sen. Robert Dole (R-Kan.) described be indexed for inflation so investors tion, which is administered by the De­ the Democrats' overbidding Bush as would pay no tax on the portion of partment of Housing and Urban De­ "nibbling around the edges." Sen. their profits attributable to general velopment, runs four mortgage insur­ price rises. ance funds. The single-family loan Robert Byrd (D-W . V .) insisted that the Democratic proposal is a major Democrats, calling Bush's pro­ programhad adequate reserves to cov­ expansion and refocusing of the pro­ posal a tax break for the rich, offered er its losses, but losses stemming from gram toward prevention and treatment an alternative that would restore the HUD's co-insurance and other high­ as well as enforcement of drug laws. deductibility of Individual Retirement risk insurance programs cut deeply Accounts. Darman had threatened into already-exhausted reserve funds. that a failure to enact a capital gains Defaults from the co-insurance pro­ tax cut would lead to across-the-board gram, in which the government as­ spending cuts, which would be man­ sumes 80% of the risk of some hous­ Capital gains tax datory under the Gramm-Rudman ing programs and private developers passed by House deficit-reduction law. The Gramm­ the remaining 20%, are estimated to The House passed the capital gains tax Rudman sequestration is scheduled to reach $960 million in 1988, said proposed by President Bush by a vote take effect on Oct. 15 if the govern­ Bowsher. of 239-190 on Sept. 28; 64 Democrats ment hasn't succeeded in reducing the HUD had previously claimed the voted for the proposal. fiscal 1990 budget deficitto $110 bil­ agency sustained a fiscal 1988 loss of Democratic opposition to the tax lion or less. The administration hopes $858 million, but an independent had thrown a monkey wrench in the that a cut in the capital gains tax will audit by the General Accounting Of­ bipartisanship which the administra­ raise governmentrevenue in the short fice and Price Waterhouse-was the tion had attempted to fo ster during the run by stimulating a rapid turnoverof first audit of the FHA in 15 years-

68 National EIR October 6, 1989 found otherwise. According to the tes­ spending for the SOl program since it The revised proposal eliminates timony, the FHA's Mutual Mortgage was launched by President Reagan in two primary benefits forelderly peo­ Insurance Fund, which provides sin­ 1983. ple who suffer long-term illness. It gle-family home mortgage insurance, would restore Medicare-style cover­ saw defaults increase dramatically age, payment of hospital bills for up over the past two years, from 166,000 to 90 days for each time they were in 1987 to 203,000 in 1988. The loan Troops to stay admitted with an illness after paying program, which had $229 billion wor­ in Korea, for now $560, plus a one-time reserve of 60 th of residential mortgage insurance in days. The proposal also retains the A proposal which would have reduced force on Sept. 30, 1988, suffered a prescription drug benefit, which calls the 43,800 U.S. soldiers stationed in $1.4 billion loss that year, reducing for payment of half the cost of the South Korea by 3,000troo ps, was de­ government equity in the program drugs above $600 starting in January feated in the Senate on Sept. 26 by a from more than $3 billion at the start 1991. vote of 65 to 34. The Senate instead of 1988 to $1.8 billion at the end of Though the White House has not called on the administration to "reas­ the year. made any efforts to keep the program, sess" U . S. deployments without aban­ The FHA General Insurance it does oppose its repeal , since any doning the military presence neces­ Fund, which Congress subsidizes an­ revenue surplus from the program is sary to deter aggression by North nually, provided $62 billion of insur­ applied to lower the Federal budget Korea. ance for various projects as of Septem­ deficit. In related action, the Senate re­ ber 1988. It was in deficit at the start fused to delay the closing of 86 mili­ of 1988 and suffered an additional loss tarybas es, recommended by a special of $2.6 billion, bringing its deficit to commission and approved by Con­ $3.1 billion on Sept. 30, 1988. The gress earlier this year, by a vote of 86 FHA Special Risk fund contributed ouse committee speaks to 14. Sen. Sam Nunn (D-Ga.) H another $1.6 billion to the deficit. "I on China, reserves warnedthat a delay could unravel the don't think we're in a free fall," said The House Banking Committee ap­ base-closing agreement. Bowsher. "I think what we,have here proved a resolution on Sept. 27 urging is a program that's in some trouble." the Bush administration to oppose loans to China by international banks . The resolution said loans and other Democrats propose cuts financial aid from international banks Senate rejects SDI in catastrophic insurance to China should be opposed until the funding increase Democrats have been reeling over repressions and reprisals against per­ An effort to restore nearly $300 mil­ their touted Catastrophic Coverage sons connected with the pro-democra­ lion to the $4 billion no-growth level Act as House members are being bom­ cy demonstrations have been ended. of spending for the Strategic Defense barded with calls and letters from out­ On Sept. 26 the Banking Commit­ Initiative was defeated in the Senate raged Medicare recipients who, under tee approved a bill that directs federal on a 66 to 34 vote on Sept. 26. The the bill, would have to pay a surtax regulators to require commercial increase had been recommended by from their Social Security in order to banks to maintain "significantly high­ the Appropriations Committee for in­ financethe fund. er" reserves against their loans to clusion in the $288 billion defense A new formulation, worked out by many lesser developed countries. The spending bill for fiscal year 1990. the House leadership on Sept. 27, committee suggested that regulators Two months ago the Senate au­ leaves intact only reimbursement pay­ be given flexibility to assign favorable thorized up to $4.6 billion for the SOl, ments for prescription drugs, and risk ratings to credits extended as part while the House has approved $3.1 some health benefits forthe poor. This of a rescheduling package under the billion for FY1 990. The Senate vote remaining coverage would be fi­ Brady Plan. Presumably, banks not indicates that a House-Senate confer­ nanced by the existing flatfee of $4 a participating in the Brady Plan would ence on the Defense Authorization bill month paid by all Medicare benefici­ have to maintain higher loan-loss re­ is likely to approve the firstcutback in aries. serves than those that do not.

EIR October 6, 1989 National 69 NationalNews

Kathy Wolfe, Nancy Spannaus, Mark Cal­ types-'well, we reexamined the exigen­ ney, and Paul Gallagher-who originally cies in the light of the possible contingencies faced numerous felony and misdemeanor and have adjusted our estimates to reflect Leaflet catalogues counts, had already had their charges re­ the economic potentialities' "-and report­ duced to a single misdemeanor "conspira­ ed that everyAir Forcegeneral he confront­ crimes of ADL cy" count. The charges were dismissed by ed with the problem concurred that the order A leafletexposing the role of the Anti-Defa­ Justice Stephen Crane at the request of pros­ to stop telling the truth about the magnitude mation League (ADL) as an arm of the inter­ ecutor Dawn Cardi. of the Soviet threat has been the single most national drug lobby and a witting asset of Cardi attempted to place the blame for frustrating featureof the past two years . the Soviet KGB, was released in several the decision to dismiss on Judge Crane's "Wei know what the Soviets are doing, million copies on Sept. 24 by the National decision to sever four other LaRouche asso­ the Soviets know what they are doing, and Democratic Policy Committee (NDPC) , a ciates, who just completed trial, thus creat­ know th,t we know it; the only people who political action committee linked to jailed ing an impossible cost burden to the state. don't know what is going on are the Ameri­ statesman Lyndon laRouche. Of the four, one was acquitted and three can public," the speaker said. Another offi­ Among the charges leveled against the were convicted on one or more counts. cial pointed out that it is the essence of the ADL are that it is a financial and covert "My only regrets are that Attorney Gen­ communist system that motivations arecon­ political support conduit for drug legaliza­ eral Robert Abrams's office was not forced cealed, and all evaluations of Gorbachov tion advocates; that it is linked to the drug to admit what political claptrap the whole are incompetent that fail to start from that mafia,including to fugitive financierRobert indictment was," said Nancy Spannaus, one premise and then look at the real rate of Vesco, Medellin Cartel leader Carlos Lehd­ of the individuals whose indictment was dis­ military buildup. The measure passed with er Rivas, and the late mob kingpin Meyer missed and a candidate for U.S. Senate in loud acclamation. Lansky; that it supports Satanic cults Virginia, "and that the judge's ruling out of through a nationwide campaign to block leg­ relevant political evidence offered by the islation that would increase penalties defense, led to the convictions of three de­ against Satanic-related crimes; that it is in­ fendants on four counts. This was a totally volved with brainwashing and mind-control political trial, which went so far as to argue Admiral calls glasnost groups including the American Family that the 'conspiracy' involved actually pro­ Foundation; and that it publicly supports the ducing and mailing out.publications! By all an attempt to buy time brutalization of pro-life activists. rights, the state should not only be dismiss­ u.s. Chief of Naval Operations Adm. Car­ In March 1986, a top ADL official, Ir­ ing the charges, but admitting that the whole lisle A.H. Trost warned the Defense Orien­ win Suall , played a major role in a KGB­ affair was a political prosecution ordered by tation Conference Association, a group of directed campaign to blame the assassina­ the 'Get LaRouche' strike force." defense contractors, meeting in San Diego, tion of Swedish Prime Minister Olof Palme California, on Sept. 22 that Soviet leader on associates of LaRouche. In August, Mikhail Gorbachov's glasnost and arms Swedish newspapers revealed that a KGB control policies are an attempt to "buy official in Stockholm had known in advance time," and that the West should therefore be of Palme's imminent murder, and that the Air Force Association cautious in response. ADL and Soviet accusations against La­ According tothe U . S. Army publication Rouche were part of the coverup of that stresses Soviet threat Stars antiStripes of Sept. 24, Admiral Trost crime, the leaflet reports. The National Convention of the Air Force focused his remarks on the subject of "naval Association, the official civilian lobbying arms coatrol ." "I sense a real danger that if organization of the U.S. Air Force, passed the Americanpeople are not fully aware of a resolution on Sept. 20 calling on the Presi­ the consequences, naval arms control might dent and other officials to release to the get caught in a whirlwind of compromise." New York conspiracy American public intelligence about the actu­ Trost noted that reductions in naval forc­ al Soviet military threat. es would seriously jeopardize U . S. security, charges dismissed The measure was motivated by one while doing no more than ridding the Sovi­ New York State dropped charges Sept. 22 speaker who reported that he had attended ets of solneobsolete submarines that would against the last fiveindividuals it had indict­ a classified briefing in which the publicly have to be decommissioned in the near fu­ ed in a grand "conspiracy" case, initiated as available information on the rate of Soviet ture anyway. "It's no bargain when the So­ part of the national "Get LaRouche" sweep tank production was identified as "top se­ viets rid themselves of excess baggage and in the spring of 1987. The five associates of cret." He ridiculed the "gumshoe babble the United States is left with a void in our Lyndon LaRouche-J . Philip Rubinstein, you get when you talk to these security ability to protect our vital interests," he said.

70 National EIR October 6, 1989 Briefly

• JIMMY CARTER declared Sept. 26 that Gorbachov is the most important cause of change in the Trost further warned that seemingly his wife that he had died of a heart attack. 1980s. "Gorbachov is the most popu­ peaceful overtures to the West by Gorba­ According to Acres, "If you care to cross lar person by far that I know about," chov could actually be a ruse that would lead a lender or a judge, the price may be higher Carter told the San Francisco Ex­ the United States and its NATO allies to than expected. If you have health problems aminer. negotiate themselves into a position of and you can't prevail in court, they will use weakness, at a time when the Soviet econo­ poor food and abuse by the prison system to • FOOD FOR PEACE, founded my is faltering under the weight of its huge break you and/or carry out a calculated death by Lyndon LaRouche, will host an military budget. Despite all talk of arms re­ sentence." international conference in Chicago duction, he stressed, the naval arms buildup A second farmer, Carl Peters from Far­ Nov. 4-5 to explore implications of goes on unabated, with the Soviet shipyards well, Minnesota, stood trial before Judge the severe food shortages threatening busily turning out new aircraft carriers and Paul Flora on a foreclosure action last the planet, and discuss how to dra­ submarines. "Mr. Gorbachov may well be spring. In the middle of the case, the judge matically increase food production. using his policy of openness, glasnost, in took it away from the jury and ruled on be­ concert with reductions in military expendi­ half of the bank. Peters was evicted from • THE AMERICAN Psychiatric tures, to buy time and allay Western fears , his farm. He returned to court requesting a Association has voted to oppose the in order to let perestroika put life back in restraining order against the eviction. He readmission of the official Soviet the battered Soviet economy." was held in contempt and sent to Fergus psychiatric association into the Falls Mental Hospital for seven days for ob­ World Psychiatric Association, on servation. the grounds that "the abuse of psychi­ atry for political purposes in the U.S.S.R. has not ended." Psychiatric exams • THE GALILEO LAUNCH ordered for farmers Kissinger to testify scheduled for Oct. 12 aboard the Farm publications are reporting on two cas­ Space Shuttle Atlantis, which is one es in which farmers fightingin court to retain in Hersch libel trial of a series of planetary missions that their property have been ordered by the After a federal judge in Chicago threatened has a plutonium isotope with a heat judge to undergo psychiatric evaluations. to issue a bench warrant against him, Henry conversion system as its energy (For another instance of Soviet-style use of Kissinger has apparently agreed to testify on source, was approved by the White psychiatry in the U.S. judicial system, see Oct. 2, in the libel suit of former Indian House on Sept. 22. article, page 62.) Prime Minister MoraIjiDesai against writer The most egregious case is that of Law­ Seymour Hersh. This will be the first time • ALAN GREENSPAN, the rence Keiswetter, reported in the Aug. 22 ever that Kissinger has been compelled to chairman of the Federal Reserve issue of Acres USA. Keiswetter, a Kansas testify before a court. Board, will go to Moscow on Oct. 7- farmer, was indicted by the Production The case involves a civil suit brought by 11, as methods are being considered Credit Association for "conversion" (selling Desai against Hersh, who charged in his in Moscow to "soak up" the huge "ex­ property pledged as collateral) and fought biography of Kissinger , The Price of Power, cess" of rubles in the Soviet economy the charge in federal district court, firing that Desai had been on the CIA payroll and relative to goods, the London Finan­ two lawyers for conflict of interest in the a key source within the Indian government cial Times reported Sept. 26. process. He ended up arguing pro se (on his providing scurrilous information that under­ own behalf) and was convicted. He mined Prime Minister Indira Gandhi, when • PETER BUFFETT, the 31- appealed to the 10th Circuit Court of Ap­ Kissinger was President Nixon's national year-old son of takeover specialist peals in Denver, and the conviction was security adviser. and Washington Post co-owner War­ overturned. Apart from Hersh's book, the only other ren Buffett, bought a new home in The case was retried in Kansas, and a publication that dared reveal Kissinger's Milwaukee which could tum that city new judge, Patrick Kelly, was assigned. role in the plot against Gandhi is Derivative into "a landmark of the New Age. Kelly immediately ordered Keiswetter to Assassination: Who Killed Indira Gandhi? The Buffets plan to play host to musi­ the Springfield, Missouri prison medical fa­ written by the editors of EIR . cal performances and benefits for cility for evaluation. On June 14, he was As one leading opponent of Henry Kis­ causes such as protecting the envi­ sent there for a 45-day observation period. singer commented, "It appears that with ronment and combatting homeless­ No one could visit or counsel him without events in China, and now the Gandhi story ness," according to the Sept. 25 Wall FBI clearance. surfacing, Kissinger's teflon shield is be­ Street Journal. On June 22, a wire was sent to inform coming badly scratched."

EIR October 6, 1989 National 71 Editorial

Educating Americans

The poorness of U . S. schools in terms of performance, afloat through financial manipulation without regard to breadth of subject matter, and even discipline, com­ the exigencies of supporting the production even of pared to those of other nations has become a timeworn such necessities as food-in other words, they accept theme . Clearly, there is an element of correctness in the myths of the free market. criticisms of the recent Governors Conference on Edu­ The so-called scientific community is equally bank­ cation, that without significant additional funding, talk rupt when it comes to redressing the situation. For of reforms is pretty much illusory; but that is by no example, Nature and Science magazines serve as the means the whole story . self-proclaimed arbiters of acceptable standards of re­ Perhaps the most dangerous statistics are those con­ search. They are fearless when it comes to attacking cerningthe scientificilliteracy of the American popula­ the work and reputation of scientists such as the French tion. While the situation is better in European and Japa­ biologist Benveniste, who challenged accepted notions nese schools, we would contend that the underlying of how allergins-and implicitly the immune system­ problem which is eroding American schools is also function; or the work and reputation of Fleischmann operative in Europe and to a far lesser extent in Japan­ and Pons who seem to have been able to achieve "cold" that is, the growing irrationalism of the population, fusion from simply (although not easily) reproducible which is being fed by the anti-science environmentalist table-top laboratory experiments . movement. These two science magazines of record , one British In the U.S. and in Europe many citizens are now the other American, have both endorsed legalization of willing to accept measures which will destroy the econ­ drugs. Science did it by featuring an article on the omy of their nations, the very means of existence of subject; the more honest Nature did so editorially. the world's population, in their misplaced zeal to pro­ In a nine-page argument replete with 78 footnotes, tect the environment. The level of hysteria being gener­ in the Sept. 1 issue of Science, author Ethan A. Nadel­ ated is such that they are willing to accept frauds like mann sought to develop the false argument that drug the "greenhouse effect" whole-hog. This anti-science trafficking is uncontrollable and in any event that drug climate is the backdrop against which failing school use is a victimless crime. With no basis in fact, he also performance must be judged. claimed that legalizing dl1Jgs would reduce the crime This growing irrationality of large sections of the rate and enhance the quality of urban life through higher population-emphatically not excluding the teachers tax revenues. and parents of school-age children-goes part and par­ He failed to comment on the deteriorated quality of cel with an increasingly hedonistic world view which life for those trapped into drug dependence, particularly ignores consequences in favor of satisfaction in the here young people. Neither here nor in Nature will you find and now, particularly in the two generations which reference to the ample documentation of the irrevers­ have reached maturity over the past 25 years . Without ible metabolic, psychological, and educational damage an adequate causal view of day-to-day reality , there is done to young people who become regular drug abus­ no basis upon which an individual can form a truly ers . The Sept. 7 issue of Nature editorialized at length scientific conception of the universe. The environmen­ on the benefits of drug decriminalization for the United talist movement may be seen as an expression of this States. The magazine commented on the opportunities more fundamental social problem. for synthesizing designer drugs of great variety, and We are on the verge of one of the greatest depres­ argued by analogy to Prohibition, that punitive regula­ sions in human history precisely because the majority tion cannot ultimately succeed. of Americans and citizens of Western Europe accepts There are grave problems in American schools, but the myth that a consumer-oriented economy can be kern they go far beyond the educational institutions per se.

72 National EIR October 6, 1989 -�ITillSpe cial Reports Comprehensive, book-length Project Democracy: The 'Parallel Govern� ment' Behind the Iran-Contra Affair. Order documentation assembled by #87001. $250. EIR's intelligence and researcH Germany's Green Party and Terrorism. The staffs . origin and controlling influences behind this growing neo-Nazi political force. Order #86009. The 'Greenhouse Effect' Hoax : A World Fed­ $150. eralist Plot. Order #89001. $100_ Moscow's Secret Weapon: Ariel Sharon and Global Showdown Escalates. Revised and the Israeli Mafia. Order #86001. $250. abridged edition of the 1987 report, second in The Trilateral Conspiracy Against the U.S. ErR's Global Showdown series. Demonstrates that Constitution: Fact or Fiction? Foreword by Gorbachov's reforms were designed according to Lyndon LaRouche. Order #85019. $100. Marshal Nikolai Ogarkov's war plan for the So­ Economic Breakdown and the Threat of viet conomy. Order #88008. �250. � Global Pandemics. Order #85005. $100. AIDS Global Showdown-Mankind's Total " First two digits of the order number refer to year of publica­ Victory or Total Defeat. #88005. $250. tion.

Electromagnetic Effe ct Weapons: The Tech­ Order from: nology and the Strategic Implications. Order #88003. $150. �TIill News Service The Kalmanowitch Report: Soviet Moles in P.O. Box 17390, Washington, D.C. 20041-0390 the Reagan-Bush Administration. Order Please include order number. Postage and handling in­ #88001. $150. cluded in price.

,------_._---_._--,

, I would like to subscribe to Executive Executive Intelligence Review for .Inte�ence o 1 year 0 6 months 0 3 months

I enclose $ ____ _ check or money order

Review Please charge my 0 MasterCard 0 Visa

Card No. Exp. date ___ _ Canada u.s.. and Mexi co only Signature ______

1 year ...... $396 Name ______6 months ...... $225

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

Fo reign Rate s Phone ( Central America, West Indies , Venezuela , Address ______and Colombia: 1 yr. $450. 6 mo. $245. , $135 , 3 mo. ______City 1 South America: 1 yr. $470. 6 mo. $255, State ______-'-'Zip ___ _ 1 3 mo. $140. 1 Make checks payable to ElR News Service Inc. . , Europe, Middle East, Afti ca: 1 yr. DM 1400, P.O. Box 17390, Washington, D.C. 2004 1- I 6 mo. DM 750. 3 mo. DM 420. Payab le in 0390. In Europe : EIR Nachrichtenagentur 1 deutschemarks or other European currencies . GmbH, Postfach 2308, Dotzheimerstrasse 166. 62 Wiesbaden. Federal Republic of Germany. 1 All other countries: 1 yr. $490, 6 mo. , telephone (06121) 8840. 1

$265, 3 mo. $145 ' ____._ ------' Is America still the land of "liberty and justice for all"? Or, are we heading into a totalitarian police state, like Nazi Germany or Soviet Russia? Read this book, and learn the truth about what happened . to justice in the United States.

U.S.A. vs . Lyndon LaRouche, et al.

GET A . ." bragged the railroading / the frameup and of presidential Lyndon LaRouche.

Judge Albert V. Bryan was the judge who finally accomplished what a federal government "Get LaRouche" Strike Force had been attempting to do since 1983. That task force swung into motion using the resources of the FBI, CIA, IRS, and private agencies, at the instigation of Henry Kissinger, who bragged in the summer of 1984 that "we'll take care of LaRouche after the elections. " The first federal case against LaRouche and his associates, held in Boston before Federal Judge Robert Keeton, backfired on the government. A mistrial was declared, and the jury said they would have acquitted everyone on all charges. But in Alexandria federal court, the "rocket docket" did the job. Judge Bryan hand-picked the jury in less than two hours, excluded all evidence of government harassment, and rushed the defense so rapidly that convictions . were brought in on all counts in less than two months from the indictment. LaRouche was sent to jail for 15 years, on January 27, 1989", a political prisoner. The conviction and impris­ ' onment have provoked protests of outrage from around the world. In this book, you'll see why.

664 pages, illustrated with index: $1 0 suggested contribution Order from: Human Rights Fund, P.O. Box 535, Leesburg, VA 22075 Bulk rates available on request.