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LaRou.che, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Edward Spannaus, Nancy Spannaus, Webster Tarpley, Even if the major media had not kept Americans! in the dark about Carol White, Christopher White President Clinton's stunning announcement of the end of the Anglo­ Science and Technology: Carol White Special Projects: Mark Burdman American "special relationship," many would not grasp the historic Book Editor: Katherine Notley implications of this shift.If you want to really know what the "special Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol relationship" is, look at the cholera epidemic in Rwanda or in . INTELLIGENCE DIRECTORS: Moscow. Agriculture: Marcia Merry Now, cholera could be called the symptomatic disease of the Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, "special relationship." It's not a complex challenge to science in the Paul Goldstein sense of AIDS, or cancer. It comes straight from the hell of the Economics: Christopher White European Economics: William Engdahl looting policies which masquerade as "free trad¢" and have been lbero-America: Robyn Quijano, Dennis Small enforced since the last world war, and especially since the death of Law: Edward Spannaus Russia and Eastern Europe: John F. Kennedy, by American military and economic power, on a Rachel Douglas, Konstantin George United States: Kathleen Klenetsky leash held by British oligarchy. Cholera can be contracted in less 8-10 INTERNATIONAL BUREAUS: than a day, and can kill in hours; thus thousands are dying as Bangkok: Pakdee Tanapura, Sophie Tanapura we write, in refugee camps in and near Rwanda. It can be cured Bogota: Jose Restrepo Bonn: George Gregory, Rainer Apel by off-the-shelf remedies and prevented by straightforward water Copenhagen: Poul Rasmussen management policies. No one should be dying of cholera today. Houston: Harley Schlanger Lima: Sara Madueno Everyone who sees television, or reads the pqnt media, has the Melbourne: Don Veitch image before his mind's eye of the helpless victims of this scourge. Mexico City: Hugo Lopez Ochoa Milan: Leonardo Servadio Now join this image with the strategic overview presented in this New Delhi: Susan Maitra EIR. In Nigeria, the most important sub-Saharan �frican nation save Paris: Christine Bierre Rio de Janeiro: Silvia Palacios South Africa, military and other leaders are fighting to defend their Stockholm: Michael Ericson country's unity and economic development against the International Washington, D.C.: William Jones Wiesbaden: Goran Haglund Monetary Fund and other illegitimate offspring of the Anglo-Ameri­ can "special relationship." In Russia, there are l�aders in industry ElR (ISSN 0273-(314) is published weekly (50 issues) except for the second week of July, and the /ast week of who are determined to save their nation's industrial economy from December by EIR News Service Inc., 3331/2 Pennsylvania Ave., S.E., 2nd F/aor, Washington, DC dismantling by the "free trade" and "shock therapy" criminals. In 20003. (202) 544·7010. For subscriptions: (703) 777- Venezuela, an elderly, patriotic President is stan�ing up to the gen­ 9451. EuropeanH.tulqUlJlf.n: Executive Intelligence Review darmes of the IMF and their drug money-laundering cronies. Nachrichtenagentur GmbH, Postfach 2308, 65013 Wiesbaden; Otto von Guericke Ring 3, 65205 The mass media which project the images of dying people in Wiesbaden-Nordenstadt, Federal Republic of Germany Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, Rwanda want you to believe that national sovereignty must be sur­ Michael Liebig rendered to the Blue Helmets of the United Nations, not just to In D.n"""": EIR, Post Box 2613, 2100 Copenhagen 0E, Tel. 35-43 60 40 deliver aid, but above all, to stop people from helving babies. This In M.xico: ElR, Francisco Dlaz Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. conspiracy for one-world government, the "Ros�mary's Baby" of }apansubscriplionsales: O.T.O. Research Corporation, the special relationship, is still running U.S. p icy on automatic Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, q1 Tokyo 160. Tel: (03) 3208-7821. pilot. Americans can show they are not arrogant British stooges, by Copyright © 1994 EIR News Service. All rights reserved. Reproduction in whole or in part without pennission strictly heeding the total change in course charted by the �atriots of Nigeria, prohibited. Second-class postage paid at Washington D.C., ' and at an additional mailing offices. Russia, and Venezuela. Domestic subscriptions: 3 months-$125, 6 months-$225, I year-$396, Single issue-$lO Postmaster: Send all address changes to ElR, P.O. Box 17390, Washington, D.C. 20041-0390. TIillContents

Interviews National Economy Economics

20 Anatoli Panov 18 Battle rages to save Russian 4 Caldera orders The general director of the industry from shock expropriation of Ordzhonikidze Moscow Machine­ therapy Venezuelan 'banking Tool Factory Share Society, Panov While the fleamarket western mafia' was subjected to an assassination economists like Harvard's Jeffrey Total war has been declared against attempt for his efforts to defend his Sachs cheer "good riddance!" to the the criminals who have been industrial enterprise from the mafia closing of bankrupt industrial firms, suc14ng the life-blood out of the and the de-industrializers. many Russians are ringing the eC°rlomy. alarm bells. Rachel Douglas 29 Adamo Ciroma reports. 6 Why U.S. health care must Nigeria's agriculture minister return to the Hill-Burton explains what's wrong with the 20 Flagship of machine-tool standard International MonetaryFund 's industry struggles to Raising the debate around a policy toward his country, and how survive universal health care policy to a the transitional military government An interview with Anatoli Panov. higher conceptual level: EIR's first plans to revive production. salvo in a major campaign. 24 Panov appeals to FBI 34 Dr. Sam Aluko Documentation: What the 1946 Director Freeh Hill-Burton Act said. A member of Nigeria's newly formed National Economic Intelligence Committee, Dr. Aluko 13 Currency Rates underlines the importance for a Book Reviews developing economy of building 14 U.S. funds' revenge for basic infrastructure. 55 Bertrand Russell was the Pancho Villa 'godfather' of Hiroshima­ 37 AI-Haji Bamanga Tukur bomber James B. Conant 16 Business Briefs Nigeria's minister of industry James B. Conant, Harvard to describes the government's Hiroshima and the Making of the priorities for overcoming the crisis Nuclear Age, by James G. and working toward real Hershberg; and "How Bertrand democracy-not a "democracy" Russell Became an Evil Man," in imposed from outside, which will Fidelio, by Lyndon H. LaRouche, plunge the country into chaos. Jr.

Departments Photo and graphic credits: Cover, pages 27, 37, EIRNS/Lawrence 15 Northern Flank Freeman. Page 10, U.S. Public Anti-environmentalist "backlash" Health Service. Page 12, EIRNSI grows. John Sigerson. Page 20, EIRNSI Rachel Douglas. Page 30, EIRNSI Uwe Friesecke. Page 35, Embassy 47 Australia Dossier of Nigeria. Page 38, Ompadec Kooks push genocide in Cairo. Bulletin. Page 57, Library of Congress. 64 Editorial How to save Africa. Volume 21, Number30, July29, 1994

Feature International National

40 Jordan,Israel advance 50 Stung British counterattack peace through development Clinton over policy shift Historic meetings on the border The official end of the Anglo­ between the two countries show the American "spetial relationship" has potential for a viable peace, but the the British fighting mad-and their enemies of the accord are gearing Hollinger Corp. press empire is up provocations from all sides. churning out reams of yellow journalism against the President. 42 Narco-terrorists plan Documentation: How the A mosque in the Nigerian capital city of Abuja. explosion in Mexico as European press covered President election nears Clinton's shift against Britain, 26 Nigeria faces down IMF to toward Germany. save its national unity 44 The cross that went to the Lawrence Freeman and Uwe Moon 59 Malthusians attack Vatican Friesecke report on a visit to the Father Giovanni Garbolino has an over Cairo Nigerian capital of Abuja, and their extraordinary story to tell about meetings with leaders in and around Cardinal Karol Wojtyla, Edwin 60 Congressioaal Closeup the government. "Buzz" Aldrin, and the Apollo 11 landing on the Moon. 62 National News 29 We deserve respect for what we have done 45 Brazil yields to the An interview with Adamo Ciroma. malthusian lobby Brazil's official document for the 34 'We emphasize the function Cairo '94 depopulation meeting in of production in our September reads as though it could economy' have been written by Henry An interview with Dr. Sam Aluko. Kissinger.

37 'Our priority is to improve 48 International Intelligence our agriculture and industry' An interview with AI-Haji Bamanga Tukur. �ITillEconom.ics

Calderaorders expropriation of Venezuelan'b ankitrtgmafia' by David Ramonet

In an action without precedent in recent Venezuelan history, be confiscated before they are sold off and the money taken the Rafael Caldera government decreed on July 18 the con­ abroad," warned Peiia. I fiscation of assets belonging to several former owners of the One week later, Peiiawas interviewedby journalistDam­ Banco Latino, the number-two bank in the country, which helys Diaz on a popular television show on Channel 2, "Lo was taken over by the government in January. Caldera's de hoy es noticia. " In that interview, Peiiaemphasized: "One decree is precisely what was proposed last February by Vene­ of the things the PLV propo�s is the preventive seizure of zuelan Labor Party (PLV) leader Alejandro Peiia Esclusa, all the personal assets, of all thepatrimony of the ODC ... and represents a declaration of total war against the criminal simply to protect the depositor, because I truly believe that "banking mafia" which had been sucking the life-blood out the direct responsibility that the Banco Latino directors have of the Venezuelan economy. for this fraud must be investigated. Should the media claims Caldera's move has stunned the international banking prove to be the case, that ther, was an illegal operation here, elites, who correctly perceive Caldera's actions as a demon­ that accounts were handled incorrectly, including of the Na­ stration of independence from them and from their "gen­ tional Armed Forces, of the oiilworkers. . . . In other words, darme," the International Monetary Fund. But beyond the our leading institutions are affected. We have here a problem implications of his actions for Venezuela, which had been of national security. " converted by these elites into a premier dirty money laundry Because of this call, the

4 Economics EIR July 29, 1994 was an important partner of the Banco Latino on whose board Debt moratorium? sat Ricardo Cisneros. Roosen is trying to recover some 80 What the creditors most fear is that Caldera will find billion bolivars, before Latino's debtors carry out some "fi­ himself forced to suspend payment on Venezuela's foreign nancial engineering" to transfer their assets to others. Toward debt. Although the President has repeatedly rejected such a this end, the foreign properties of Banco Latino debtors are possibility, the creditors fear that the very circumstances of also currently under investigation. the crisis facing Venezuela will leaye him no alternative. Attorney General Petit da Costa explained in detail the When new Planning Minister Werne� Corrales was asked by mechanisms by which the former owners of Banco Latino a journalistfromEI Globo on July 18 ,about the possibility of gave unsecured multimillion-bolivar loans to individuals declaring a debt moratorium, he responded that, "within the who were afterwards unable to assume legal responsibility range of options, moratorium is obviously not among the for their debts. For example, the company that built the Mare preferred, but no alternativehas been rejected." Mare Hotel received 11 billion bolivars (more than $100 The truth is that Caldera has always been sincere in his million at the time), but neither the hotel nor the land it is proposals, including to the Venezuelan bankers. Since built on is in the name of that company. Instead, it is held by March, his governmenthas sought to achieve currencystabil­ other companies which have no direct obligation to the lend­ ity, a reduction in interest rates, and a reduction of inflation, ing bank. "This kind of behavior shows that the Banco Latino through a Solidarity Pact. It was the bankers which violently operated like a mafia-asPresident Caldera has said-which rejected his efforts, and unleashed fierce financial warfare appropriated billions from its depositors. " against the bolivar, which led to an unprecedented inflation­ ary process. For this reason, Caldera's emergency measures The usury mafia responds were taken. Such actions are intolerable for the international financial This is exactly what Caldera explained to the business mafiosi from whom Banco Latino's former stockholders community at the 50thAnnual Assembly of Fedecamaras on learned their tricks. In fact, even before President Caldera July 12: "Economic progress, for the countries which have ordered the confiscations, the London Financial Times had achieved such, has been obtained by means of harmony be­ dedicated nearly an article a day since late June attacking tween the public and private sectors. Neither Japan nor the Caldera's nationalist measures to protect the economy. The four Asian tigers achieved economic progress solely through day after the Financial Times would publish its protests, the the private sector. Freedom yes, and we feel obliged to guar­ Washington Post would follow suit, whether by editorial or antee it and are prepared to guarantee it. But if no agreement by "news coverage. " Then the international news agencies for harmonyexists, if the will to adopt the indispensablemea­ would distribute these commentaries throughout Venezuela sures required for success does not exist, all effortswill fail." and the rest of the continent, with the intention of creating an aversive climate against Caldera. Threats of coups, civil war One mid-level officialat the World Bank was most direct, The followers of Carlos Andres Perez within the AD in a private conversation, about what the international credi­ party, the Social Christianparty whi¢h Caldera founded and tors are thinking: "It doesn't matter if Rafael Caldera is honest which threw him out, together with the targeted bankers, or not, Venezuela was much better off with Carlos Andres continue to up the pressure by threatening the government Perez." Reminded that Perez is in jail on corruption charges, with a coup d' etat. At the same time, ultraleftists who back and has a long history of dirty business deals, the official former Army colonel Hugo Chavez, leader of the failed coup responded that this has always been the case and always will attempt of Feb. 4, 1992, also denounoed Caldera's measures. be the case. What could not be permitted, however, was that In a press conference, Chavez st:ressedthat "a coup d'etat his free trade economic policies be annulled. "It is not a of the political, economic, or militaryelites could occur here, question of honesty, but a practical matter," he said. or a new insurrection by the middle-level and non-com offi­ The creditors are just as hysterical over the strict ex­ cers, who continue to be very unhappy with what is oc­ change controls which the Venezuelan government is curring. " Chavez has attempted to blackmail President Cal­ applying, which are being regulated "the same way a com­ dera, demanding that he dissolve Congress and convoke a mon credit card is monitored," according to Ivan Pulido National Constituent Assembly. Mora, a member of the Exchange Council. Those who need If Caldera does not agree, insiSts Chavez, the conse­ to buy dollars are registered in a computerized system over­ quence will be street riots of all kinds. If the government seen by technicians of the state oil company PDVSA. In that represses these, warnsChavez, "I ami certainthat the division computer system will be a profile of every dollar purchaser, in the Armed Forces will become evident. One militarygroup including any bank accounts abroad-just as a bank main­ will go out to kill an unarmed and hungry population, but tains a credit history of its card holders-such that only those there is another, not very small group, which will refuse and who need dollars and don't hold any will be allowed to pur­ will go out instead and overthrow the government,or at least chase them. Those who request dollars, but are holding dollar will prevent the destruction of the "Venezuelan people, and accounts abroad, will be obliged to use their own reserves. this will be a setting for civil war."

EIR July 29, 1994 Economics 5 Whyu.s. health care must return to the Hill-Burton standard by Donald MacNay, M.D., Marcia Merry, and the EIR Economics St�ff

In August 1946, a new federal health care law went into such wartime boom towns as Los Angeles, where the "Rosie­ effect, which became known as the "Hill-Burton Program." the-Riveter" phenomenon was born. The national birth rate, It was a nationwide hospital-building program, designed to which had fallen during the 1930s Depression years, shot up provide the necessary number of staffed hospital beds per immediately after the war's end. Between 1946 and 1949 , 1 ,000people throughout the land-regardless of race, color, close to 15 million children were born, in contrast to the four creed, gender, or ability to pay. It was an unprecedented years prior to World War II, when only 10 million were born. move in the history of the United States: Prior to 1946, hospi­ The differing regional and age bracket profiles called for tals had evolved willy-nilly, under differing local circum­ differing numbers and types of equipment, facilities, and stances, and with wide disparities in the quality of facilities. medics, in order to provide the health care required. For The only systematic hospital system which had been in ef­ example, concentrations of obstetrical services were required fect, was that provided for seamen by the surgeon general in Los Angeles. At the same! time, tuberculosis was still and the Public Health Service. taking its toll, and poliomyelitis (from a waterborne virus) The Hill-Burton standards changed all that. Its approach, was claiming more victims. which oUght to be carefully studied today, typifiedthe post­ What seemed obvious to policymakers at the time, was war, do-the-job infrastructure-building approach, and it was the need to wage a peacetime' war against disease, and to highly successful. It is the authors' view that if the same or a provide care wherever it was deeded. The wartime produc­ similar approach were applied today, it could lead the way tion and logistics mobilization! itself had in fact contributed out of the crisis of spiralling health care costs, combined with much to the arsenal of potential peacetime health care ad­ drastic degradation in the quality of care available. vances: new pharmaceuticals, logistics systems, and medical Unfortunately, for many otherwise decent citizens, the techniques. Streptomycin was developed in 1944; blood plas­ issue of the overall health of the population only becomes ma was successfully developed for use in 1940; mobile medi­ a matter of concern during times of war, plague, or other cal care systems wereperfected during that time. catastrophes. The rest of the time, most tend to sink to the level of a local approach, and debates center around account­ Why not universal care? ing questions such as costs. But today's problems are insolu­ In his 1944 State of the Union address, President Franklin ble with such an approach. Going back to look at the context Delano Roosevelt spoke of an "economic bill of rights," in which Hill-Burton was enacted is therefore a useful means including "the right to adequate medical care and the opportu­ of getting back into the right frame of mind to actually crack nity to achieve and enjoy good'health." In 1945, in his Jan. the problem. 6 State of the Union address, the President again spoke of the right to "good medical crure," but he made no specific Start with the population proposals from then until his death in April. Then, on Nov. At the end of World War II, the U.S. population num­ 19 of that year, President Harry Truman sent to Congress a bered about 148 million, and the wartime mobilization posed message on health care legislatibn, proposing that a universal demographic features with obvious significance for health care system be worked out in connection with the Social care planning. Thousands of wounded veterans had to have Security system. But Sen. Robert A. Taft (R-Ohio) led a continuous treatment. There was also a malnutrition prob­ charge to denounce even the idea of universal care as "left­ lem, which had been revealed by the number of youth who wing" and "socialistic." The upshot of the conflict in Wash­ had been turned down by the Armed Services as unfit for ington was that some federal fu nds were granted to states in duty. order to provide care for those unable to afford it; some of The war mobilization accentuated certain regional varia­ that money went to private insurance companies. tions in age and sex population profiles. For example, there Sidestepping all the name�calling and position-taking, were new concentrations of women of child-bearing years in senators Lister Hill (D-Ala.) and Harold Burton (R-Ohio)

6 Economics EIR July 29, 1994 went ahead and introduced their straightforward "Hospital FIGURE 1 Survey and Construction Act." The act became law on Aug. Hospital bed availability, 19�6-91 13, 1946, and had the effect of advancing the facilities and (beds per 100,000 people in the United SUites) mobilization to bring health care improvements to all. The act specified how states were to inventory and add 11 to their existing hospitals to "afford the necessary physical 10 facilities for furnishing adequate hospital, clinic, and similar services to all their people." It spelled out that "such a hospi­ 9 / B�dS in all hospitals tal or addition to a hospital will be made available to all 8 persons residing in the territorial area of the applicant, with­ out discrimination on account of race, creed, or color." The 7 text admittedly also contains the "Jim Crow" separate-but­ 6 equal policy typical of the pre-Civil Rights Act period (see Documentation), and had the effect of inhibiting the full 5 potential of Hill-Burton. But even so, the bill's effect was 4 unprecedented. 3 Beds in community hospitals The impact of the Hill-Burton Act 2 The Hill-Burton Act specifiedthat for general care , there should be made available an average of 4.5 hospital beds per 1,000 people in states, with their local distribution made O �---,---.--�----.---.---,----,---.---. 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 according to intrastate densities of settlement. In particular, , for rural states, the act called for a higher average number of beds per 1,000 people, in order to accommodate people fac­ Sources: U.S. StatisticalAbstracts; HistoricalStatistics of the United States. ing more difficult travel logistics. An average of 5 beds per 1,000 people was called for for those states with a density of 6- 12 people per square mile; 5.5 beds per 1,000 were man­ Williams, assistant surgeon general, �n 1950: dated for states with 6 or fewer people per square mile. "The National Hospital Program �as now been in opera­ These bed ratio standards refer to general-care beds. In tion for three years. It had brought !thout a comprehensive addition, the Hill-Burton Act mandated the provision of addi­ plan showing the location and size of�ospital facilities which tional ratios of beds for such care as tuberculosis, mental are needed in each state. For the firs� time, a definite plan is illness, and chronic disease. being followed by each state in de�rmining the location, The ratios were devised on the basis of a "needs" analysis, size, and type of facility which can b�st meet the hospital and which began by asking what kinds of care medical science health center needs of the people. Hospital construction plans could give as of mid-century, and what kind of bed use this prepared by each state agency andiapproved by the U.S. would mean. In 1946, the physical facilities did not yet exist Public Health Service have been extrqmely valuable in stimu­ on the scale required by existing medical science. A building lating local communities to construFt hospitals and health boom took place, with dramatic results in use of facilities centers. In addition, the program h� resulted in the enact­ and improvements in health. ment of hospital licensure laws in �any states where none Figure 1 shows that in 1946, the United States beds-per- existed previously. The impact of the program on modern 1,000ratio for community hospitals was 3.5-far below the design and construction has been gr�tifying with respect not Hill-Burton standard. In many states, the ratio was far lower. only to hospitals built under the program, but also to those Between 1947 and 1974, through successive congressional built without Federal aid. Improved �ervicesto patients have extensions of Hill-Burton, over $4 billion in federal grants likewise resulted from better plann�d and better designed and loans for construction of general-care hospitals and hospitals. expansion of facilities was distributed, which was expended "A total of 65 ,000 hospital bed�and 250 public health along with another $10.4 billion in state and local funds. The centers are being added to the nation�s health plant by 1,300 results are clear from the graph. projects approved as of June 30, 1959. This represents a total As of the mid-1970s, the nationwide average for beds in expenditure of nearly $1 billion, toward which the Federal community hospitals was at the average Hill-Burton standard contribution will be about $345 mill�on. Approximately300 of 4.5 beds per 1,000people . Many rural areas had access to of these projects are already in opcrration, and 500 of the hospital care for the firsttime . remainder are under construction. ; How the Hill-Burton implementation worked is de­ "In general, hospitals are being �uilt first wherethey are scribed by one. contemporary account, by Dr. Ralph Chester needed most, and usually these are,also in areas of lowest

EIR July 29, 1994 Economics 7 TABLE 1 Changes in rank order of the top ten leading causes of death in the United I States

1900 1950 1990

1. Pneumonia (all forms) and influenza 1. Diseases of the heart 1. Diseases of the heart I 2. Tuberculosis (all forms) 2. Cancer and other malignant tumors 2. Cancer and otljlermalignant tumors 3. Diarrhea, enteritis, and ulceration 3. Intracranial lesions of vascular origin 3. Cerebrovasculllr diseases of the intestines 4. Diseases of the heart 4. Nephritis 4. Accidents (over 50% motor vehicles) 5. Senility (ill-defined and unknown) 5. Accidents, excluding motor vehicles 5. Chronic obstructive pulmonary diseases 6. Intracranial lesions of vascular origin 6. Pneumonia (all forms) and influenza 6. Pneumonia an� influenza 7. Nephritis 7. Tuberculosis (all forms) 7. Diabetes mellids 8. All accidents 8. Premature birth 8. Suicide 9. Cancer and other malignant tumors 9. Diabetes mellitus 9. Homicide and ibgal intervention 10. Diphtheria 10. Motor-vehicle accidents 10. AIDS and other infective and parasitiC diseases

Sources: The United States Public Health Serviee, 1798-1950, by Ralph Chester Williams, M.D., Bethesda, Maryland: Coml'nissioned Officers Association of the Public Health Service, 1951; and Statist/eelAbstract of the United States, 1992. income. General hospital projects predominate in the pro­ treatment, are the cause. The: same Dr. Williams quoted gram. Eighty percent of the total beds added to date are in above gave some specificsof the record use of the new facil­ these facilities. About one-half of the general hospital proj­ ities: ects are new facilities, nearly all of which are located in "In 1949, more than 16 million patients received bed­ towns of less than 10,000 population. These are typically care in hospitals in the United IStates. This was the largest small hospitals of 50 beds or less. number ever recorded. It may seem strange to count the "Increasing attention is being given to other categories of increase of hospital patients as aisign of progress in American hospital facilities, particularly tuberculosis, psychiatric and health. But it is a good sign dlat the attitude of the public chronic units in general hospitals, and to public health toward the hospital has been changed. The people are learn­ centers. Four States (Georgia, Louisiana, Mississippi and ing to tum to it as a place where they can get modem services South Carolina) now have extensive programs for health cen­ that will restore them to health, 6r better still, prevent serious ters , and other States are beginning to develop such pro­ illness. Fifty years ago, people as a rule went to the hospital grams." only as a last resort [before the common availability of anti­ septic and anaesthesia practicesl etc., that were pioneered in Winning the war against disease the last century-ed.]. A gooa statistical measure of the The impact of the Hill-Burton approach is manifest in the recently changed attitude is the ihcrease of birthsin hospitals. mid-century progress in combatting disease. The postwar In 1949, for example, more thah86% of the births occurred expansion of facilities, detection, and treatment, fought the in hospitals; in 1935, the perceritage was only 37% .... final, winning rounds against the "microbes" (infectious dis­ "New services in health departments also contribute to eases from bacteria, viruses, etc.). New efforts were also individual and family health. During 1950, about 15 million launched against chronic diseases, or diseases associated people stepped before X-ray machines and had chest X-ray with a longer-lived population. examinations made. As a result, more cases of tuberculosis Table 1 shows this shift in the U.S. population's disease are being discovered in the early, most curable stages. In the profile. The top killer diseases at the tum of the century were same year, more than 2.5 millioh personsvisi ted localhealth pneumonia and influenza, tuberculosis, and diarrhea and departments to be examined for venereal diseases. As a related diseases. The introduction of water purification, sew­ result, nearly half a million were found to be infected." age treatment, and other sanitation practices, along with new As the infectious diseases were beaten back, the spirit drugs (such as penicillin, which was identified in 1928), of the Hill-Burton approach w's evident in a set of survey opened the prospect of wiping out these diseases. By 1950, hearings in October 1953, called "Health Inquiry," held by the infectious diseases had fallen in rank far below the chronic the Committee on Interstate aDd Foreign Commerce. The diseases-heart disease, cancer, stroke-as causes of death. hearings were divided into sessions to review each of the top From 1946-50, mortality fell by 50% for maternitycas es, five major causes of death, begiqning with heart disease. And appendicitis, and tuberculosis. The availability and use of the the official topic was, "The CatJses, Control, and Remedies facilities, and provision of care of high standards of medical of the Principal Diseases of MlUtkind."

8 Economics EIR July 29, 1994 Documentation I Lister Hill, champion of thepublic goo« I The post-World War II hospital b�ilding boom known What the Hill-Burton Act said as the Hill-Burton Program too its name from the leading sponsors of the enabling ederal legislation on The Hill-Burton Act became law on Aug. 13, 1946, as Public health care: Senators Lister Hill D-Ala.) and Harold Law 725. The officialtitle is "Hospital Survey and Construc­ H. Burton (R-Ohio). These men had collaborated on tion Act," and the entire document is only nine pages in other matters; but soon after the Hill-Burton Act be­ length. The act was an amendment to the Public Health Ser­ came law in August 1946, Burton was appointed to the vice Act, from the 1930s. In brief, Hill-Burton authorized Supreme Court, and his legisl ve activities ceased. grants to the states for surveying the adequacy of their hospi­ Hill served in the U.S. Senate un il 1968. tals and public health centers, and for planning construction Today, a major part of the ti,.S. national archives of additional facilities. The Hill-Burton law was extended in of biomedicine is housed at the ILister Hill Center in several subsequent acts of Congress. The full text of theHill­ Bethesda, Maryland, near Wash;ngton, D.C., in rec­ Burton Act can be found in the public laws volume for the ognition of Senator Hill' s initia�ves for hospitals and 79th Congress, 2nd session, Chapter 958. We have added health care. But in his own timeJ Hill was also known bold sub-headings. as a champion of the Tennessee � alley Authorityelec­ trification project and other common-good public Purpose: physical facilities to furnish care for all the works, and for his foreign policy initiatives to prevent people war. Sec. 601. The purpose of this title is to assist the several Hill was born in 1894 in Montgomery, Alabama, States- the first son of Dr. Luther Leonidas Hill, a surgeon (a) to inventory their existing hospitals (as defined in whose family was active in city politics. Dr. Hill, who section 631 (e», to survey the need for construction of hospi­ still practiced and held regular office hours until his tals, and to develop programs for construction of such public 80s, had studied in England under Lord Joseph List­ and other nonprofit hospitals as will, in conjunction with er-a pioneer of antisepsis. And so, Dr. Hill named existing facilities, afford the necessary physical facilities for his son after his mentor. furnishing adequate hospital, clinic, and similar services to The first successful heart sutPre procedure in U.S. all their people; and practice was performed by Dr. Hill. Lister Hill's two (b) to construct public and other nonprofit hospitals in brothers and two brothers-in-law also became physi­ accordance with such programs." cians in Alabama, but Lister Hill went into public poli­ cy from the start. Standards: number of beds per 1,000 people Hill studied law, did military duty in World War I, Sec. 622. Within six months after the enactment of this and, at the age of 22, began his pUblic service careerby title, the Surgeon General, with the approval of the Federal being appointed president of the Montgomery Board of Hospital Council and the Administrator, shall by general Education in 1917, serving untilrl922. In 1923, he was regulation prescribe- elected to the House of Representatives and served (a) The number of general hospital beds required to pro­ for 14 consecutive years. As cpairman of the House vide adequate hospital services to the people residing in a Military Affairs Committee, het championed the Ten­ State, and the general method or methods by which such beds nessee Valley development pr�ect. He became what shall be distributed among base areas, intermediate areas, colleagues called "a consistent New Dealer." and rural areas: PROVIDED, That for the purposes of this In 1937, Hill declared his candidacy for the Senate, title, the total of such beds for any State shall not exceed four in opposition to a 68-year-old veteran politician, and one-half per thousand population, except that in States Thomas Heflin, an avowed Ku Klux Klan advocate, having less than twelve and more than six persons per square who some expectedto win because of the Klan's resur­ mile the limit shall be fivebeds per thousand population, and gence. With the endorsement Qf President Roosevelt in States having six persons or less per square mile the limit in his pocket, Hill defeated HeHin 88, 000 to 48,000, shall be five and one-half beds per thousand population; but and held his Alabama Senate �at from 1938 through if, in any area (as definedin the regulations) within the State, 1968. Lister Hill died in 1984. ' there are more beds than required by the standards prescribed

EIR July 29, 1994 Economics 9 A typicalmobile chest x­ ray unit used under the Hill-Burton standard to reach people who did not appear at fixed detection sites.

by the Surgeon General, the excess over such standards may hospitals of different classes and in different types of lo- be eliminated in calculating this maximum allowance ." cation ." I Additional beds for tuberculous, mentally ill, and others Universal care (b) The number of beds required to provide adequate (f) That the State plan shall provide for adequate hospital hospital services for tuberculous patients, mental patients, facilities for the people residing I� n a State , without discrimi­ and chronic-disease patients in a State, and the general meth­ nation on account of race, creed, or color, and shall provide od or methods by which such beds shall be distributed for adequate hospital facilities for persons unable to pay throughout the State: PROVIDED, That for the purposes of therefor. Such regulation may I equire that before approval this title the total number of beds for tuberculous patients of any application for a hospital or addition to a hospital is shall not exceed two and one-half times the average annual recommended by a State agency assurance shall be received deaths from tuberculosis in the State over the five-year period by the State from the applicant t�at (I) such hospital or addi­ from 1940-1944, inclusive, the total number of beds for men­ tion to a hospital will be made available to all persons residing tal patients shall not exceed five per thousand population, in the territorial area of the applicant, without discrimination and the total number of beds for chronic-disease patients shall on account of race , creed, or color, but an exception shall be not exceed two per thousand population. made in cases where separate hosital facilities are provided (c) The number of public health centers and the general for separate population groups, if the plan makes equitable method of distribution of such centers throughout the State , provision on the basis of need or facilities and services of which for the purposes of this title, shall not exceed one per like quality for each such group; and (2) there will be made thirty thousand population, except that in States having less available in each such hospital or addition to a hospital a than 12 persons per square mile, it shall not exceed one per reasonable volume of hospital services to persons unable twenty thousand population." to pay therefor, but an excepti0n shall be made if such a requirement is not feasible from a financial standpoint." Special concerns: rural and poor areas (d) The general manner in which the State agency shall Common-sense definitions determine the priority of projects based on the relative need Sec. 631. For the purposes ofI this title- of different sections of the population and of different areas ...(e) the term "hosPital" (except as used in section lacking adequate hospital facilities, giving special consider­ 622 (a) and (b)) includes public health centers and general , ation to hospitals serving rural communities and areas with tuberculosis, mental, chronic diseasel , and other types ofhos­ relatively small financial resources. pitals, and related facilities, sucH as laboratories, out-patient (e) General standards of construction and equipment for departments, nurses' home and training facilities, and central

10 Economics EIR July 29, 1994 service facilities operated in connection with hospitals, but By the late 1960s, the need for 'the TB and polio beds does not include any hospital furnishing primarily domicili­ had all but vanished: The aggressiv¢ lung X-ray detection, ary care; quarantine, and follow-up treatment of the Hill-Burton peri­ (t) the term "public health center" means a publicly od had all but wiped out TB, while th¢ development and mass owned facility for the provision of public health services, use of Dr. Jonas Salk's polio vaccine beginning in 1955 including related facilities such as laboratories, clinics, and had created conditions for wiping (>ut polio. A universal, administrative offices operated in connection with public nationwide vaccination program was begun, in which all health centers; individuals in target age brackets were given the vaccine. In (g) the term "nonprofit hospital" means any hospital 1963, the anti-measles vaccine was developed. owned and operated by a corporation or association, no part If the Hill-Burton approach to health care had been con­ of the net earningsof which inures, or may lawfully inure, to tinued, the 1970s would have seen the total elimination of the benefit of any private shareholder or individual; these infectious diseases, opening up the opportunity to con­ (h) the term "construction" includes construction of new centrate even more effort into basic biomedical researchand buildings, expansion, remodeling, and alteration of existing into early detection and least-cost tlteatment of chronic dis­ buildings, and initial equipment of any such buildings; in­ eases. This was the stated goal of the 1953 Congressional cluding architects' fees, but excluding the cost of off-site "Health Inquiry" hearings, to findthe "Causes, Control, and inmprovements and, except with respect to public health Remedies of the Principal Diseases 0f Mankind." centers, the cost of the acquisition of land; and But the opposite took place. Economicpolicies of "post­ (i) the term "cost of construction" means the amount industrialism" prevailed in the United States. The era of ram­ found by the Surgeon General to be necessary for the con­ pant speculation, junk bonds, derivatives, "Big MAC" -style struction of a project. austerity began. Upkeep and expansion of vital infrastruc­ ture-water, energy, physical health care facilities, public 'Post-industrialism' killed Hill-Burton transit-went into decline. Beginning in the late 1970s, both Take another look at the graph on page 7 of hospital beds the number of general-care beds pet 1,000 people, and spe­ per 1,000 people during this century. It shows clearly that, cialty care beds went into decline. as of the mid- 1970s, there was an abandonment of the Hill­ This deterioration in physical facilities was masked by Burton-style commitment to providing care facilities and continued advances in the "mechanics" of surgical proce­ combatting disease. Although this is now obvious in myriad dures, so that hospital stays and bed use could be shortened, ways, consider just the simple beds-to-people ratios. Begin­ or even eliminated, through outpatient surgery. In the late ning in the late 1970s, there are downward trends both in the 1970s, arthroscopy (joint microsurgery) using fiber optics community (general care) beds ratio and in special-care beds was developed, and at the same time, laporoscopy (abdomi­ (TB, mental illness, etc.) nal microsurgery) was begun, using micro instruments, and, Consider the relative number of special-care beds during more recently, using laser scalpel techniques. the 1940s and 1950s. At that time, the high numbers of Such gains from surgery advanc¢s have indeed been spec­ special-care beds reflected the sanitoria for tuberculosis, the tacular. One orthopedic example: In 1970, a simple knee special polio wards, wartime injuries follow-up, etc. The meniscectomy (removing a damaged cartilage) required open 1946 Hill-Burton Act, besides specifying standards of gener­ surgery and hospitalization of 5-7 days. The successful pro­ al-care bed availability, also specifiedstandards for tubercu­ cedure then resulted in a compromised knee joint, with the losis and other treatment. Altogether, a certain region of the onset of arthritis coming normally :within 10 years. Today, country-for example, southeastern Pennsylvania-might the tom segment of the damaged cartilagecan be selectively expect to make available 4.5 general-care beds per 1,000 removed, leaving the knee to function normally thereafter. population, plus another 4-5 beds, depending on the preva­ The operation (which takes longer than the primitive 1970s lence of TB, the density of the population, and other factors. meniscectomy), can be done on an outpatient basis. Health care planners strove for a dispersed network of com­ But such advances have been islands amid a deepening munity hospitals, with specialties concentrated in larger "re­ sea of cost-benefit-driven degradation of health care. By the gional" and "central" hospitals. 1980s, community hospitals had become de facto "outpa­ In the densely populated fiveboroughs of New York City, tient" centers. By 1990, the number of surgical procedures for example, the 1949 hospital plan, commissioned by Hill­ of all kinds done on an outpatient bl!sis began to exceed those Burton and the New York Committee of Post-War Public done on an inpatient basis; in that year,11 million were done Works, used the following guidelines: for every one million on an outpatient basis and 10.5 million inpatient. people, a network of community hospitals (each with 50-300 Another way to look at this, is that the number of outpa­ beds), plus regional hospitals of about 650 beds each, plus tient visits to community hospitals outnumbered the the days central hospitals with 750-plus beds each. The higher up the of inpatient care provided. As of 1985 , there were about 226 pyramid, the more specialty facilities and staff wereavailable. million outpatient visits to community hospitals (an average

EIR July 29, 1994 Economics 11 Disparity in relative numbers of community hospital beds in the nine U.S. �ensus divisions, 1992 (beds per 1,000 people)

Source: AmericanHospital Association Statistics, 1993-94 Edition.

of one visit per American resident per year), and about 225 hospital care for indigent residents, if the hospital in question million days of stay in a community hospital (one overnight fell below a new state-decreed percentage of use (75-85%). per year per American). Since that time, the outpatient visits This drove many facilities into, insolvency. In addition, a to community hospitals have been almost twice the number large number of specialty-care bedsfor the mentally ill were of days of inpatient care. eliminated by Big MAC-style dtcree in New York, and the patients were turnedout into the street. The 'excess bed' hoax Variations of this campaign t

12 Economics EIR July 29, 1994 general care do not even exist on minimum requirement lev­ els. The map of the nine census areas shows the average number of community beds per thousand population in 1992, Currency Rates ranging from 2.57 in the Pacific zone (as compared to 4.5 under Hill-Burton), to 4.79 in the West North Central states The dollar in deutschemarks (5.5 under Hill-Burton). New York late afternoonfixing Within the states in each census area, there is also a wide disparity of availability of community hospitals. 1.80 During this same time, facilities and logistics for other health care services have also been cut back below levels need­ 1.70 ed for minimum national health security. There now exists ", '- 1.60 an acute shortage of general practitioners for primary care. � - ,-- ! � "" Nationwide administration of standard childhood vaccina­ 1.50 �'" tions is no longer routine, as it used to be under Hill-Burton. ; The cumulative result of this began asserting itself in the 1.40 early 1980s, as increasing crowds of people began to show 611 6/8 6115 6/29 716 7113 7120 up at hospital emergency rooms. The dollar in yen The results of the build-down in health infrastructure New York late afternoonfixing are also evident in the growing spread of AIDS, and in the resurgence of tuberculosis and other diseases. Even if facili­ cl30 ties and treatment patternshad been up to par, mutations and new outcrops of microbes would require new R&D break­ , 120 throughs for successful health care, because continued use of the same antibiotics has reached the outer limits of effective­ lllfl , ness-as shown, for example, by the hantavirus outbreak in - the Southwest over the past year. JlIIl - The most dramatic example, however, is the appearance i of drug-resistant tuberculosis, which is now hitting the Unit­ 90 ed States on an epidemiologically significant scale. As of 611 6/8 6115 6/22 6129 716 7113 7120 1991, according to a survey reported in the February 1994 The British pound in dollars Journalof the American Medical Association. the proportion N ew l'ior kl a te afternoon fI xmg • , of TB cases resistant to standard treatment drugs is now at the 13% level in New York, 6.6% in New Jersey, 4.9% in 1.80 ! Florida, 4.3% in Hawaii, and significant levels in nine other states. In the United States overall, the proportion of drug­ 1.70 resistant TB cases was 3.5%. 1 1.60

'" Recommendations 1.50 As the TB and AIDS prevalence shows, a return to the Hill-Burton method of setting standards for facilities, and 1.40 ' then building them to those standards, is the only way to 611 6/8 6115 6/22 6/29 716 7113 7120 approach the task of restoring health to the nation. The graph The dollar in Swiss francs of specialty hospital beds per 1,000 people should be made New York late afternoonfixing to swing upward over the remainder of the 1990s to reflect construction of special facilities for treating AIDS and TB 1.60 cases. Specialists recommend that separate facilities must be built on a crash basis to handle this caseload-pending 1.SO breakthroughs in treating the HIV virus-because it is medi­ cally undesirable to handle these diseases in proximity to 1.40 general-care facilities. -...... - 1.30 � J; The community general-care bed ratios should be im­ I"- - proved overall, and region-by-region, in order to meet cur­ I rent standards of treatment for each age bracket, as the age 1.20 pyramid profile dictates from place to place. 611 6/8 6115 6/22 6/29, 716 7113 7120

EIR July 29, 1994 Economics 13 overnightmail to Ortiz." The document, in effect a diktat, obtained by the Journal, contained a series of poison pills: Mexican governmentinsur­ ance against any currency ex�hange losses incurred by the mutual funds up to $5 billion; ;a 5% hike (to 20%) of foreign u.s. funds' revenge currency liabilities by Mexican banks; financing of these . measures by the issuing of lopg-term Tesobonos (Mexican fo r Pancho Villa government-issued dollar den�minated bonds); and, finally, a massive Mexican Central Brupkpeso-purchasing spree com­ by Scott Thompson mitted to driving the value ot the peso up to between 3. 15 and 3.21 to the dollar. Armed with insider information on the extent to which the In April 1994, a combine of U.S. mutual funds known as the British and Italian government" were prepared to intervene to Weston Forum sought to rob the Mexican Central Bank to defend the values of the pound and the lira, in September the tune of billions of dollars in reserves, all in the name of 1993, international speculator and Weston Forum player "strengthening the peso" and securing Mexico's fine reputa­ George Soros made a $2 billion killing in 48 hours. tion among internationalinvestors. Some Wall Street observers with a bit of historical insight A strategic leak speculated that the Weston Forum's assault against the Mexi­ Liegey told the Journal th�t his suggestions were a "way can peso might be some kind of revenge for the famous raid to help Mexico." Nothing could have been further from the by an earlier day bandito, Pancho Villa, who crossed into truth. As the result of the ApriJ diktat, which did apparently New Mexico on a similar, albeit less ambitious, looting expe­ result in a multi-billion Tesobono issue, Mexico's dwindling dition. reserves plummeted and investors began shaking in their The Weston story is for sure a tale of some of America's boots and pulling their money out. biggest speculative banditos and how they developed a case When word of the looting venture wound up on the front of collective amnesia when caught in the act of attempted page of the Wall Street Jour�l (Liegey claims that some blackmail and extortion. Mexican government official passed the key documents on to the paper), many key players in the effort began ducking Loot the reserves! for cover. According to the June 14, 1994 account on the front EIR calls to participants in the Forum scheme produced page of the Wall Street Journal, and EIR interviews with a flurry of protests and denials:! spokesmen for some of the mutual funds, last April, a private • Ashmwin Vasan, who �ages three emerging market bank called Weston Group pulled together a multibillion­ portfolios for Oppenheimer Management, said: "My under­ dollar pool of mutual fund capital and tried to impose a diktat standing is that no such group �s the Weston Group was ever on the Mexican government that would have brought $17 formally sanctioned by the investor group as such.. ..Nor billion in new "investment capital" into Mexico, but only have we endorsed any of its recommendations that allegedly after the Mexican Central Bank had been looted blind in a the Weston Forum made to the Mexican Government." move to prop up the peso. • Lincoln Rathnam, managing director at Scudder: "We John Liegey, head of the Weston Group, a New York did not want to be part of the letter to the Mexican govern­ investment bank that last year brokered $5 billion in U.S. ment." Launching into market babble, he continued: "The mutual fund money into peso-securities, created the Weston markets are the message. The medium is the message. In Forum with participation by Fidelity Investments; Trust Co. this case the medium is the market. And the price of your of the West; Scudder, Stevens & Clark; Oppenheimer Man­ securities will tell you exactly Iilowpeople view your policy. agement Corp.; Soros Fund Management; Salomon Broth­ ...We don't need more than that." ers; Nomura Securities International,Inc.; and Liegey's own • Javier Baz, managing director of the Trust Co. of the bank. West: "No, we're not a part of it. Let me give you the sort of According to the Wall Street Journal, Liegey and Fidelity sequence of events. We were invited by John Liegey to attend Investment's Rob Citrone "arrangedtwo important meetings a meeting in Washington with Mexican authorities to just between the forum and Mexican officials.The first,on April explore a number of issues and discuss a number of points of 8 in Washington, D.C., was attended by Guillermo Ortiz, view, and when I got there I be�ame aware of the fact that he Mexico's undersecretary of finance, and two central bank was calling this the Weston Forum .... And, so we never officials. Afterward, Mr. Liegey put together a document went back to any of the next Imeetings.. .. We have no announcing the formation of Weston Forum, which included intention whatsoever of ever sitting down and telling any a list of six 'policy suggestions.' The document was sent by government how it should run ills country."

14 Economics ElK July 29, 1994 N orthem Flank Torbjorn Jerlerup

Anti-environmentalist 'backlash' grows palities, entrepre�eurs in the cooling The LaRouche movement in Sweden is exposing the industry, and others have turned tothe EPA for advice afterhaving run across environmentalist hoaxes, and some are worried. this conflicting iqformation. . . . In a memorandum dlirected to county boards and munidipalities, the EPA is In January and March, Swedish na­ campaign to sell the book The Holes reporting about : the considerations tional radio broadcast two slanderous in the Ozone Scare, published by 21st which are behirid the decisions to "science" programs against the inter­ Century Science Associates, to librar­ phase out" CFCs! national LaRouche movement. They ies, scientists, magazines, and entre­ In Kyla, GlaS wrote that the book claimed that the "right-wing extremist preneurs. This fueled the backlash had some overstatements, but that it party , the European Labor Party, and that the science mafia so fears . At the accurately descri�es the role of natural Lyndon LaRouche" are spreading end of May, the Swedish Schiller In­ emissions of chl�rine and the scien­ "disinformation" about the ozone stitute released a special report, detail­ tificevidence that ultraviolet (UV) ra­ hole, the greenhouse effect, and other ing the international fight against the diation has not illcreased. He pointed environmental issues, in order to gain ecological hoaxsters. out that Mt. Ere11lus lies just 10 kilo­ political influence. This, they said, is At the beginning of June, the press meters from the main ozone research dangerous because it could create a was filled with articles indicating a station in the Antarctic , that this vol­ "backlash" against the "environmen­ dramatic change in the way so-called cano must affectl measurements from tal cause. " ecological issues are viewed. As the that station, an� therefore the mea­ The programs marked a change in debate on the greenhouse effect con­ surements on w�ich the ozone-hole the debate about environmental issues tinued, voices were raised demanding theory is based are useless. He de­ in Sweden. Soon after, articles began that Sweden keep its nuclear power scribed his own c�lculations that prob­ to appear in the usually politically cor­ plants beyond the year 2010. (In ably 50% of the �hlorine from volca­ rect Swedish press over whether the 1980, the governmentdecided that all nos reaches the ozone layer and the ozone hole and greenhouse effect are 12 nuclear reactors had to be shut stratosphere. natural phenomena, or caused by down by that date .) "After detailed studies of The man, as the radical ecologists claim. At the same time, entrepreneurs Holes in the Otone Scare and the A debate on the greenhouse effect be­ manufacturing plastics, encouraged above-mentione4 article countering it gan in the largest daily newspaper, the by the Schiller Institute, attacked the [from Science], l find it extremely im­ liberal Dagens Nyheter. Wibjorn Car­ greenies and the Environmental Pro­ portant that this Hook can be diligently len, a member of the Swedish Royal tection Agency (EPA) for their stupid­ and publicly stu4ied for a debate with Academy of Science, attacked the In­ ity in wanting to abolish the use of those people w�o are arguing that ternationalPanel on Climatic Change, PVC pipes. CFCs are riskiQg natural disaster," part of the U. N. apparatus and chaired The scientific and environmental Glas concluded. , by the Swede Bert Bolin. media began to discuss the arguments The EPA "e�perts" claimed that In the March 10 issue of the British against banning of chlorofluorocar­ the book is "uns�ientific and untrust­ magazine Nature, Bolin responded to bons (CFCs)-a direct result of the worthy." Then they lied about atmo­ this backlash and stated that "a num­ Schiller Institute's campaign. In June, spheric conditioPs in the Antarctic. ber of semipopular articles about cli­ the magazines Ny Teknik (the major They claimed th�t the stratosphere is matic change" had been published by scientific magazine in Sweden), Mil­ situated 10 km ,p in the atmosphere "special interest groups" and scien­ joAktuelit (the magazine of the EPA), and that the volcanic plume, there­ tists who often are "well-known in and Kyla (the magazine ofthe refriger­ fore , could not reach the stratosphere, other areas" but not experts on com­ ation industry of Sweden) reviewed when in fact it lies 5 km above puter-based models. This, he stated, The Holes in the Ozone Scare. The ground-level at both poles. (Mt. Ere­ is of great danger, because poli­ media coverage of the book was sur­ bus is almost J�800 m high, so the cymakers have begun to listen to criti­ prisingly objective. In all three cases, emission certainly reaches the strato­ cisms from such groups. science professor Lars-010f Glas sphere.) The E�A experts concluded LaRouche's friends in Sweden wrote in defense of the book. M i/joAk­ that the forests $.re damaged because had by then successfully initiated a tuellt reported that "several munici- of the increase of UV radiation.

EIR July 29, 1994 Economics 15 BusinessBrief s

Demographics PublicHealth mainofficeofthe new company will bein Mu­ nich, with � office in Beijing. Russian population E. Coli infections Ge�y will also invest DM 500million decline accelerating in EuraSpace, an abbreviation of Eurasian a 'clear danger' Space, including for development of a new generation of launchers . As alanning as the 1993 declines in population E. coli infections are a "clear and presentdan­ According to DASA, EuraSpace is an out­ in Russia were , there was a 12% further rise gertopublic health" and the United States must come of tI1e "long-lasting" cooperation by in the death rate in the first quarter of 1994 immediately implement" currentlyrecognized DASA andJhe Ministry of Astronauticsof the compared to the same quarter one year ago, scientific technology for ensuring food safe­ People'sR�ublic ofChina. Duringthe 1980s , the London Economist reported in mid-July. ty ," an independentpanel of specialistsin gas­ they coll�rated on the DFH-3 communica­ The death rate in Russia is "booming," the troenterology, epidemiology, public health, tions satellitepro ject, withDASA responsible magazine said. There has beena 15% increase food science, and industry and consumer af­ for the antennas and solararrays onthe space­ in deaths by cardiovascular disease in this fairs said in a statement issued at a three-day craft. In September 1993, an agreement was year's first quarter compared to last year; a meeting convened in Washington by the signed to create the joint company. 12 .8% rise in deaths by respiratory diseases; American Gastroenterological Association The firstjoint project willaco be mmunica­ a 17 .9% rise in deaths by infectious diseases; Foundation. tions satellite, with an option for two follow­ a 20% rise in deaths by alcohol poisoning;and The group urged government monitoring on units. The first customer will be the Sino­ a 9% increasein suicides. Reported diphtheria of the nation's slaughterhouse operations. It Satellite ComntunicationsCo. Ltd. ,providing cases are fourtimes higherthan last year. Some also recommendedfood irradiation pasteuriza­ services forthe People's Bankof China. The demographers think the situation will deterio­ tion "as soon as possible," especially for Chinese Aerospace Corp. will assemble and rate yet further, because of an increase in the ground beef. Inadequatelycookedground beef deliver the $inosat- l spacecraft, with DASA­ spread of cancer. is now the major vehicle for transmission of supplied coTnponents . It will belaunched on a The demographic decline in Russia is not the E. coli 0157:H7 disease, which has killed Chinese Long Marchrocket. comparable to any situation seen in western several people in the last two years . Europe in peacetime, a French demographer Escherichiacoli. or E. coli. is a family of told the July 13 Paris daily Le Monde . bacteria found in the intestines and feces of humans and animals. The E. coli 0157:H7 Political Economy strain produces potent toxins that can cause ; food-borne or person-to-person transmitted Real �onomy looted Infrastructure disease after ingestion of very low quantities of the bacteria. Just 69 E. coli organisms of by 'virlual'economy Berlin-Warsaw rail this strain are enough to cause illness, com­ pared with the millions of salmonella organ­ ''Thereal ecpnomy is at the mercyof the virtual link gets funding isms and otherfood-borne mic roorganisms re­ economy," J>rof. lbrahim Warde of the Uni­ quired to cause disease in humans. versity of daIifomiaat Berkeley, wrote in Le The European Investment Bank (Em) has ap­ MondeDip lomatique in mid-July. He warned proved I billion European Currency Units that the "�tronomically" expanding global ($1.3 billion) to fund the modernizationof the "speculative bubble" of derivatives is leading rail link between Berlin and Warsaw , as well Space to "anexplo$ion" ofthe internationalfinancial­ as for highway and energy grid projects in Po­ monetarysystem. Wardeattributed the danger land, in the context of a three-year credit line Germany, China agree on of derivatives to the mythologicalbelief in the agreement signed between Em Chairman power of "artificial intelligence" and the so­ Wolfgang Roth and Polish Finance Minister 'EuraSpace' joint deal called "zero-sum game." Grzegorz Kolodko on July 15. ''The 'manufacturers' ofderivatives rein­ The Emis the "house bank" of the Europe­ DeutscheAerospace (DASA) , the German in­ forcethe myththat, thanks to the mathemati­ an Union, which means the creditline is state­ dustry aerospace consortium, has provided cians that tlley employ, and thanks to hyper­ backed. start-up capital of 7 million deutschemarks performing Fomputer programs , the relations This is the firstrailroad project east of Ger­ ($4.4 million) for a new German-Chinesejoint betweenall �rtsof variablescan beidentified: many that will be co-fundedby the West, and aerospace company, EuraSpace, which was the risks for'the real economy measured with the Berlin-Warsaw track is one of the key founded on July 8 in cooperationwith theChi­ precision, and eliminated," Warde wrote. "In transport corridors in the White Bookplan of nese State Committee for Aerospace and Sci­ the face of the accumulation of uncertainties outgoing European Commission President ence to develop, produce , and marketcommu­ of a financi;:U, political , and economic nature, Jacques Delors. nications and earth observation satellites. The the promise$ of mathematical formulae and of

16 Economics ElK July 29, 1994 • GERMAN governmentdebt ser­ vice payments will rise by 38% to DM 92.6 billion ($58 billion) in fis­ cal year 1995 because ofDM 300bil­ lion in "old East German debt" which artificial intelligence are, whatever one says opment, together with the International will be added to the governmentdebt aboutthem, illusory .. ..A basic principle of Monetary Fund's oppressive policy." total on Jan. 1, 1995, according to the derivatives markets is that it is all a zero­ "Most important," Avvenire wrote, the budget pre ented in Bonn on July sum game: in the domain of 'futures,' options, "seems to us the call not to 'keep entrusting f 14. Debt servJce will be the biggest and swaps, the gains of one person can only monetary rules with world development'; in a budget item. becovered by the losses of the others .... situation in which the application of economic ''The natureof the relationsbetween virtu­ freetrade has meant, for many peoples, noth­ • BUNDES,ANK President Hans al economy (derivatives), financial economy ing less than the implementation of a looted Tietmeyer said on July 11 in Basel (titles), and real economy (production of economy, and at the moment when in the West that the G-I0 meeting of central goodsand services)has beencompletely trans­ (including Italy) forces take power which bankers "disc\lssed derivative prod­ formed by all this. The market for derivatives would like to implement those same 'miracu­ ucts" and "deCided to propose . . . products is times greater than the levels lous' recipes that allowed [former British three measures to limit the consequences exchangedinaperiodof one month on theNew Prime Minister Margaret]Thatcher to destroy of possible m�ket crises," the Italian York StockExchange; it representsmore than the English economic system, the reminder daily Corriere della Sera reported. double the Gross Domestic Product of the coming from the Elysee appears to be most United States. The financier economy, and, opportune." • FIDELITY INVESTMENTS is more serious yet, the realeconomy , findthem­ being probed by the Securities and selves, thereby , at the mercy of the dis-func­ Exchange Commission for insider tionings of the virtual economy." trading, the Jt¥y 13 Washington Post reported. Fid�lity's trading accounts Health for about 12% of the trading on the New York StockExchange. Debt Detection of BSE agent THE RED CROSS causes new concern • has mobi­ Mitterrand calls for lized over I,Qoo medical personnel to spearhead the battle against epi­ relief for Third World The agent which causes Bovine Spongiforme demics in China following fierce Encephalopathie (BSE), which causes a se­ flooding. Gu�gyi and Hunan prov­ French President Fran�ois Mitterrand called vere form of encephalitis among cows which inces are especially threatened. for debt relieffor the ThirdWorld, in a speech leads to death, has been detected by British on North-Southrelations at the Oriental Insti­ scientists in the small intestine of young • GEORGU SOROS'S represen­ tute of Naples University on July 8, the Paris calves, with ahigh probabilitythat it also exists tative in Hongkong, Bill Grossman daily LeMonde reported . in the thymus gland. of Quantum Financial Services, Mitterranddeplored the fact that "the capi­ The discoverythat the BSE agent not only threatened Cllina after the State tal flowfrom Africa to the industrializedcoun­ affects the brain and spine of cows has raised Council ende

EIR July 29, 1994 Economics 17 �TIillNationaiEconom y

Battle rages to save Russian industryfr om shock therapy by Rachel Douglas

The alarms sounded by leaders of Russia's State Duma (par­ good riddance to "loss-making"ienterprises, and that enough liament), military officers, and economists have risen to a such plants have not yet closed.: unison shout: The destruction of Russian industry cannot go On July 5, Deputy Sergei Glazyev, chairman of the Eco­ on! Their consternation crescendoed after June 17, when nomic Policy Committee in the State Duma, charged that the Deputy Economics Minister Yakov Urinson warned that in­ government'sfiscal policies have crippled Russian industry. dustrial output would fall by at least 26% for the first half of If the course of President Boris Yeltsin and Prime Minister 1994 and had plummeted 53% in the month of May alone. Viktor Chernomyrdin continued, Glazyev said at the outset Above and beyond the consequences of these declines of a parliamentary debate on the social and economic situation for the country's ability to recover and grow, the plunge of in the country, "deindustrialization" could reduce Russia to Russian industry is a loaded political question both at home the status of a raw materials ex�rter, a Third World country. and abroad. More and more, politicians as well as industrial Glazyev (a young economiSt who served as Minister for managers speak angrily about foreign and internal attempts Foreign Economic Ties until re$igning from the government to tum Russia into "a colony. " last year) documented his warning with a report that showed On June IS, the London Guardian took note of "a revolt a far more drastic decline in output from technologically spreading through Russia's most powerful lobby, the mili­ developed branches of industry, such as machine-building tary-industrial complex, over heavy cuts in the [defense] and defense, than in mining an4 other raw materials sectors. budget. " There was an unprecedented labor strike at Severo­ Government statistics confirm tJtatmachine-building fell by morsk, headquarters of the Northern Fleet. Some 35 ,000 44% in the first six months of : 1994, as part of the overall aircraft and missile plant workers demonstrated in Novosi­ 26% decline in industry. birsk to protest the dismantling of industry. Vladimir Filip­ Already in May, Glazyev and other Duma leaders, in­ chuk, head of the All-Russian Union of Defense Industry cluding the chairmen of the Wo�k and Social Support and the Workers, hinted about a nationwide strike. At a special con­ Industry, Construction, Transport, and Energy committees, ference held June 21, the union demanded increased funding formed a parliamentary factionlto promote industrial recov­ for military industries. ery and halt the destruction of! Russian industry. In a call Without such an increase (which the budget adopted in titled "On the Critical Situatiolll in the Sphere of Material late June did not provide), one long-time observer in Moscow Production of Russia," they demanded special government­ told EIR , "there will be an extreme social crisis, with maxi­ parliament consultations. "The; world history of economics mum unemployment and social unrest in the defense sector. has not known such destruction" as what is happening in This could soon prove to be a disaster. We have to be on Russia today, they wrote. "Energy units, construction, guard for the worst." mines, factories are coming completely to a halt." . As if oblivious to any danger, advisers to Russia from A special expanded session �f the Russian cabinet, attend­ Harvard Business School and the London School of Econom­ ed by deputies of the State Duma, heads of enterprises, and ics insist that the bankruptcy of major industrial firmsmeans regional leaders, did take place on July 15. Speaking there,

18 National Economy EIR July 29, 1994 Chernomyrdin maintained that the decline of industry was sum game: Yes, output is falling in iMustry, but it must have levelling off, inflationwas under control, and monetary policy "obviously increased in other parts Jf the economy." would "remain moderately tough." Glazyev promptly called Many Russians are no longer elnployed in industry, he for a vote of no confidencein the government-notso much, went on, "but the striking thing is how few of the people who he said, to remove the present government from office, as to left were actually dismissed because there were no jobs for allow deputies to voice criticism and raise problems. them, only 1.5%. Nearly all the others left voluntarily, in Glazyev and his cothinkers refuse to accept the argument many cases, of course, because the wages have become so that to be a modem market economy, Russia should abandon low that they could do better to go tq some other enterprise." manufacturing. What other enterprise? "Industry ha� lost 9% of workers, but finance has gained 7% .... The other place that people go Advice from the mental asylum to, of course, if they leave enterpri�es, is self-employment To abandon production, however, is what Russia's advis­ . . . and you can see [from one of Layard's statistical tables] ers from international financial institutions continue to that the number of people who are �elf-employed increased demand. by 50% [in the firstpart of 1994]. So, !youhave a system where In a paper for last April's World Bank -sponsored Annual basically people are being redeployed, are moving directly Bank Conference on Development Economics, the notorious from one job to another." Prof. JeffreySachs of Harvard (who has served as an adviser Layard did not reveal whether thd "self-employed" counts to the Russian government) discussed "Russia's Struggle those engaged in kuplya-prodazha. " buying and selling" on with Stabilization," as he put it. Sachs showed the shrinkage the street. That is where masses of people-former doctors, of the Russian state budget, both revenues and expenditures, former machinists, teachers, and engineers-have turnedfor during the privatization of industry. Expressed very roughly their subsistence, in every city and tk>wn in Russia. as a percentage of GNP, governmentrevenues are at scarcely In conclusion, the London professor expressed his disdain one-third of their level just fiveyears ago. Apart fromregion­ for industry and for the productive 'skills of human beings: al withholding of tax payments to the Russian center, which "There is a problem which is that the people are still actually Sachs mentions, the plunge in revenues results from the in­ working [at factories] and around on the shop floorwhen there ability of half-strangled industrial enterprises to pay their is nothing for them to do. This slows!down the reorganization taxes-as Russian machine-tool producer Anatoli Panov il­ of the shop floor.. ..They should �, above all, retrained. lustrates in the interview that follows here. And I think I pointed out once before that whereas in Russia But for Sachs, this drastic diminution of centrally deploy­ nearly all workers are trained in skiIiIsbased on physical sci­ able funds is not enough. Russian military industry as a whole ences, in a market economy at least half the people do jobs that must go: "Clearly, a 'strong'[Russian] state should not mean don't require that kind of skill at all,i that require commercial the returnto a Soviet-style militarized state, especially since skills. . . . In Russia training was of good quality, but focused the Soviet military-industrial complex (MIC) played such a on activities based on physics, chemistry, engineering, medi­ central role in bankrupting the economy in the first place. cine, whereas in a market economy! at least half the jobs are Western assistance to support the reinvigoration of the Rus­ based entirely on commercial skillsJ" sian state, which will be crucial for stabilization, makes sense only in a frameworkof . . . scaling back of the MIC. " Dumbing down Sachs's vision of "assistance" to Russia includes, among Please remember Professor Layard's words, as you listen other things, increased borrowing abroad-not for physical to Anatoli Panov in the pages th$t follow. "Commercial economic projects, but for financing the state deficit-and skills" mean the tricks of monetaris� bankers, who in Russia Russia's issuing dollar-denominated bonds, for the same overlap with organized crime. The&- buy from hungry citi­ purpose. zens, for cash, the state-issued vou¢hers for the purchase of The type of extrememonetarism expressed by Sachs, who shares in privatized industrial firm$. Gaining control of an seems to think that a country's primary concernis its currency industrial company, they run it fon the greatest immediate exchange rate, not production or consumption, came to Mos­ profit: not investing in improvements for production, but cow in the person of London School of Economics professor asset-stripping and even-Panov I suspects-dearing the Richard Layard, in June. Unfortunately, he was there for con­ shop floors to rent as office or warepouse space! Is thatwhy sultations with the Chernomyrdingovernment's coordinators Professor Layard wants idle workers off the shop floor, to of economic reform. make way for real estate speculatiOl;.? At a press conference in Moscow on June 15, transcribed Think about what it means, not only for Russia but for a by Federal News Service, Layard addressed what was on world that sorely needs capital goods, for Panov's factory, a many people's minds: the decline in industrial output. "We unit that served not only as factory but also as laboratory and have to recognize that we have no reliable figures on output training center, to be dismantled �d its skilled work force in Russia," said Layard. For Layard, the economy is a zero- dispersed. I

EIR July 29, 1994 �ational Economy 19 Interview: Anatoli Panov

Flagship of machine-tool industryst ruggles to survive Anatoli Alekseyevich Panov, 57, is general director of the the war, despite the enormous cHficulties. Between October Ordzhonikidze Moscow Machine-Tool Factory Share Soci­ and December 1941, the plant's equipment was evacuated to ety. He has worked in the machine-tool industryfo r 36 years, a remote region of the country , but by the spring of 1942, i starting as a worker. He became the plant's chief engineer machine-tool production was re umed. During the war, ZiO at the age of 34 . Panov was elected general director in 1989, provided industry with 6,000 highly productive, reliable ma­ in afour-way contest where he received 87% of the votes of chine tools of various models. the fa ctory's employees. 1mmediately before his election, he was engaged in scientific work. The author of some 800 EIR: What was the importanc� of this factory right after the scientific articles, including over 20 monographs, Panov war? I1 holds the Candidate of Technical Sciences degree. He is also Panov: The factory's role in solving major tasks for the an inventor. national economy grew markedly in the period of postwar During the week of July 11, Anatoli Panov answered reconstruction and thereafter. Z�O began to produce automat­ written questionsfrom EIR . Rachel Douglas, who translated ic transfer lines, transfer machines, and special machine the interview fr om Russian, thanks Natalya Sotina of the tools. Ordzhonikidze Moscow M achine-Tool Factoryfo r her assis­ In January 1946, ZiO producedI its first five transfer ma­ tance with technical terms. chines and, in May of that ye'9" the first automatic transfer line for the Likhachov Factof\Y (ZiL) [one of the Soviet EIR: Please tell us about the history of this factory . What Union's first two large auto plants] . From 1946 on, ZiO was its role in the Soviet economy? supplied these lines, for the mas production of very complex Panov: The Ordzhonikidze Moscow Machine-Tool Factory parts , to practically all brandies of the machine-building (abbreviated Zi�) is one of the leading enterprises of our industry . I machine-building sector. It was founded in the 1930s and began to produce turret lathes. Subsequently, as the output EIR: What was the economic i�pact of your machine tools of turret lathes was gradually increased and it began also to and conveyor lines at that time') How did ZiO machine tools produce multi-spindle automatic lathes and single-spindle compare with their counterparts produced abroad? semiautomatic lathes, never before manufactured in Russia, Panov: Installation of our factbry's products at enterprises the factory became the leading producer in the U.S.S.R. of in various branches of industry yielded a sharp increase in these types of machine tools, which were the most advanced labor productivity and economy of labor power, and made it ones we produced at that time. ZiO supplied its equipment possible to introduce advanced technologies and improve the to machine-building enterprises throughout Russia and the organization of production. At the same time, the factory I U.S.S.R. made a significant step forwar1 in the development of auto- From the ranks of the first generation of ZiO workers , matic and semiautomatic machine tool production: The the 1930s generation, came management, engineering, and 1930s-model machine tools wbre replaced by many new, scientific cadre not only for this factory , but for the entire original, automatic and semiahtomatic lathes, which sub­ machine-tool sector, as well as scientific research institutes. stantially increased our producf�e and technological capabil­ In the very first days of the Great Patriotic War (1941- ities. 45), hundreds of workers , engineers , and managers left the In the postwar years , ZiO developed an array of center­ plant for the front. Most of them perished. Their wives and ing-milling machines and bega� to produce transfer lines for children took their places at the factory . Thanks to this patri­ machining of various rotary-type parts. One of the first of otic upsurge and at the cost of colossal efforts , the factory these lines won the Gold Medal and the Grand Prix at the I was able sharply to increase output during the first months of Brussels World's Fair in 1958. In 1959, the factory produced

20 National Economy EIR July 29, 1994 the U.S.S.R.'s first numerically controlled (NC) semiauto­ numerical control) system, which were delivered to many matic lathe. An analogous semiautomatic lathe, of a smaller countries: the Federal Republic of permany, France, Aus­ standard size, was shown at the Soviet Industrial Exhibition tria, Finland, Sweden, Japan, and qanada. in London in 1961. In 198 1, ZiO was awarded th� international "Golden From the 1950s through the 1970s, ZiO transferred a Mercury" prize for strengthening international trade rela­ number of its production areas to other plants in the U.S. S. R. tions. In December 1982, it receivedjthe Order of the October Production of turret lathes was shiftedto a factory in Alapay­ Revolution for its large contribution to domestic machine­ evsk. Production of two models of semiautomatic hydrodu­ building, particularly the supply to lindustry of highly auto- . plicating lathes moved to a factory in Yeisk. Production of mated metal-cutting equipment. five models of centering-milling machines went to a plant in In addition to the aforementioned metal-cutting equip­ Kostroma. ZiO personnel helped set up the new production ment, ZiO designed and could pr<>auce on order from cus­ on site in each of these cities. tomers: • a CNC special gantry-type �miautomatic lathe and ElK: From what you have said, your factory had more than planer for machining wheel set� with a diameter of a rank-and-file role in the machine-tool sector. 1,400 mm, length of 2,500 mm, and weight of 4,000 kg; Panov: That's right. From the early 1960s on, ZiO helped • a special semiautomatic douple-carriage turning and to train managers, engineers, and skilled workers for new rolling machine for machining rail\\lay-caraxles; machine-tool plants. • center-chucking processing units for machining parts In the 196Os, the factory increased the output of automat­ with a diameter of 630 mm (ov�r the guideways) and ic lines to the level of 42 per year. In the 1970s, it produced 400 mm (over the carriage), and a length of up to 1,800 mm; most of the equipment for the Volga and Kama Automobile • special CNC frontal-type d�uble-spindle lathes for Factories (VAZ and KamAZ), and equipped other important high-precision machining of complex oval-barrel profiled plants: the Minsk Motor Factory (in Belarus), the Lenin piston surfaces, with a diameter frcjlm 60 to 150 mm and a Komsomol Light Automobile Factory in Moscow (AZLK), length of 70-l75 mm; the factory in Taganrog that produces "Kolos" and "Niva" • high precision CNC single-ISpindle double-carriage grain-harvesting combines, and others. center-chucking semiautomatic latlles for machining com­ plex profiled parts with a diameter of 850 mm (over the ElK: Were improvements made during this work? guideways) and 500 mm (over the �arriage) and a length of Panov: Throughout its history, the factory has constantly up to 3,000 mm or more; as well aSl other special equipment worked on this, developing and improving NC machine tools and various consumer goods. and transferlines with semiautomatic hydroduplicating, and I centering-milling machines. Our flexible transfer lines for ElK: What is the situation of the enterprise since the start of machining tube-shaft type parts (diameter less than 250 mm, the so-called market reforms of Yelt$in and Gaidar in January length less than 1,800 mm, weight up to 250 kg) have NC 1992? machine tools and are equipped with two-hand industrial Panov: The situation of the Russian machine-tool industry, robots, also manufactured at ZiO. including our plant, has been deteriorating since the moment The factory has rebuilt its shops several times, making it the market reforms began, and even somewhat earlier. possible to increase the floor space available for production, Skilled machinists have been and are being let go. They to equip the machine shops with new, more productive and go to other organizations and enterprises, to small firms precise equipment, and to install in the assembly shops stands where the pay is rather bigher-in spme cases, several times for testing units and assemblies and means for mechanization higher-than at the factory. At lelast it provides for their of assembly. subsistence. Many former workers from this factory,in their In 1978, ZiO became the leading enterprise in the Mos­ search for a wage on which it would be possible to support a cow production association, the Sergo Ordzhonikidze Ma­ family, quit the machine-tool sector altogether. People can­ chine-Tool Factory. It continued to specialize in production not live today on income fromworlq in production. of transfer lines, transfer machines, and special machine The demand for machine tools andtransfer lines has fall­ tools, for machining both frame parts and rotary-type parts, en, not because they are not needed. but because the custom­ used in serial and mass production at enterprises in our coun­ ers do not have the money to purchase them. Some factories try and abroad. which placed orders for our pr<>aucts, for custom-made equipment that has already been produced by us on order, ElK: Was there demand for ZiO products outside the refuse to take delivery because they lack the money to pay, U.S.S.R.? resulting in big losses for our facto�, because thesespecial, Panov: In the 1970s, our factory mastered many modifica­ highly productive machine tools have to be destroyed. tions of NC machine tools, based on the CNC (computerized Our economic ties have broken �own with many supplier

ElK July 29, 1994 National Economy 21 I think there isa highprobability that, under the pretextqf creating an industrial­ finance company, ourfa ctory will end up as the property qfindividualsjro m thefinancecom panies and commercial banks. In that case,J believe that ZiO will cease toexist as a machine-tool company.

factories, which provide the components and materials for tion-at below market price, as a rule-by working through producing machine tools and transfer lines. Those suppliers individuals or specially created juridically registered firmsas located in Commonwealth of Independent States (CIS) coun­ their proxies), that have come in�o possession of the majority tries have either shut down, are being retooled, or demand of the shares of our share society. payment in freely convertible currencies. EIR: What will happen to the dompany, if events continue EIR: What is your attitude to economic and financial assis­ in this direction? tance from the West today? Panov: I think (although I am dOing everything in my power Panov: Our factory did not depend on assistance from the to prevent this) there is a highi probability that, under the West. I believe that the majority of comparable enterprises, pretext of creating an industrial-financecompany, our factory engaged in production, also did not. In general, it is my view will end up as the property of individuals from the finance that aid, as such, teaches people not to utilize their own companies and commercial banks. In that case, I believe reserves (and ours are not small, even in our half-destroyed that ZiO will cease to exist as a machine-tool company, not and half-looted country today), accustoms them to depen­ because-I emphasize again-it produces unneeded goods, dence, and creates conditions that undermine any striving to but because its new owners are not going to invest their funds raise the technical and technological level using one's own in complex and expensive production processes. They will forces and mind. prefer to free up the shop floors,for the now extraordinarily This is easy to see from an analysis of the structure of our profitable business of warehousing imported goods, as well exports and imports:The country is more and more becoming as for rental as office space to various firms. In light of what a market for the sale of low-quality western goods and a I have said about the unique nature of ZiO, I am absolutely supplier of raw materials and fuel. Genuine aid should be convinced that this is wrong fro"1the standpoint of the nation­ expressed in equal relations of partnership, participation in al interest. joint R&D projects, and complex capital-intensive projects Something else is also clear: Even if a private entrepre­ and so forth, oriented toward opening a market for Russia or neur today wishes to invest money in production, never mind by state orders. a firm such as ours, he cannot dill so without suffering losses due to inflation, exorbitant taxes, the crime wave, and the EIR: What would be the consequences for Russia of the authorities' refusal to abide by the law. Therefore, the state­ complete economic collapse of your firm and the machine­ if it wishes to remain an industrial power--cannotdo without tool sector as a whole? some form of state support to enterprises like ZiO. Panov: Russia would have to pay in gold or freely convert­ Earlier, the government repeatedly assisted the factory ible currencies for machine tools, which would have to be in its development. This was done by leaders such as S. purchased abroad, since Russia cannot exist as an industrially Ordzhonikidze, A. Kosygin, Yu. Andropov, and B. Yeltsin. developed state without machine tools. After the defeat of But now the state, the Executive branch, regards the ma­ fascism, you probably know that Germany made reconstruc­ chine-building sector with indifference--except when it tion of its machine-tool industry the first order of business. comes to collecting taxes. This, is why the privatization of machine building in Russia looks more like its destruction. EIR: Please describe the specific problems confrontingyour This is the picture, by the way, not only for machine building, enterprise during privatization. but for practically all branches ofRussian basic industry. Panov: The situation of our factory regarding privatization is typifiedby growing dependence on the commercial banks, EIR: How do people react to western support for such pro­ which will ultimately tum into total dependence. It is chiefly cesses? these banks, through the so-called voucher auctions (when Panov: Let me tell about what I know, the experience of our banks have the opportunity to purchase ZiO shares for priva­ company. At the dawn of perestroika, before I was elected tization vouchers, which they have acquired from the popula- general director in 1989, factory director Nikolai Chikiryov

22 National Economy EIR July 29, 1994 (an appointee of the Politburo of the Central Committee of But by the end of my firstyear, the factory sharplyincreased the Communist Party of the Soviet Union and the U.S.S.R. output for the first time in 10 or 15 years. While in 1988, Ministry of the Machine-Tool Industry) decided, or soit was Chikiryov had managed to produce only 648 machine tools, announced, to get the enterprise out of an already difficult we produced 725 in 1989. economic situation by attracting "advanced western technol­ After investigating the Homatek affair, I made it clearto ogy ." Chikiryov and a businessman from the German firm R. Lang, who did not want to giye me (as representative Heinemann, Rainer Lang, established a joint enterprise of the co-incorporator) any account of the joint venture's called Homatek, one of the firstin the U.S.S.R. performance, that unequal relations were at an end. From This appeared to be a fine undertaking, to attract foreign that moment on, he and his friends and protectors in the investments. But what really happened? R. Lang turned out U . S . S . R. Ministry of the Machine-Iool Industry launched a to be the director of a little workshop in a small German firm, war of annihilation against me. It was on their initiative that employing only 200people. As one of the incorporators of the Moscow city prosecutorfabricated a criminal case against the joint venture, our plant transferred to it a portion of the me. R. Lang personally gave false, testimony against me to assembly capacity and floor space, while the German side investigators and before the court. He did not even hide his provided only organizational equipment: notebooks, paper hostility and his motives, cynically stating in the presence of clips, folders, tape recorders. ZiO relinquished to Homatek the prosecutor, "Leave the factory and we'll drop the case." its rights to act on the foreign market, conclude contracts and In 1990, they finally managed to get criminal charges filed set prices on exported goods, and establish ties with foreign against me and remove me from work for three years. partners. Without producing a single machine tool, Homatek During those years, the ministry mafiarobbed and bank­ took over all of ZiO's production, with the exception of rupted the enterprise, handing out partsof it to privatebanks electronics and hydraulics. Profits from the sale of machine and commercial firms in exchange for bribes.Nobody both­ tools in the West went to the joint venture. In addition, R. ered about production. They were just thinking about their Lang was buying and reselling in the West obsolete equip­ own enrichment at any price. ment as scrap, but he benefittedfrom tax and other breaks by When I returned to the factory in 1992, I found a horri­ recording it as new. The technological center planned in the fying picture: 649 million rubles of indebtedness on loans joint treaty, Lang intended to transform into a first-classhotel and payments to the state budget. Out of 404 million rubles bringing in 1 million deutschemarks per week, while the of credit extended to the factory for its development, 150 factory's share was DM 1 million per year. million had been passed on to commercial structures and not Thus Homatek flourished and its employees received returned. In 1991, only 400 machine tools were produced, a huge wages, while the factory, on whose labor the joint drop by almost half since 1989. venture was in effect a parasite, was unable to increase its output of machine tools, and its financialsituation was deteri­ EIR: What is the company's condition today? orating. How do you suppose the hundreds and thousands of Panov: There has been a steep decline of productionin Rus­ workers at the factory, who saw this happening before their sian industry during the past four years of new, market eco­ very eyes, came to view this example of capitalist enterprise? nomic conditions, which led to the decline of production at This was not business it all. It was just a deal among ZiO in connection with the reduction of orders for machine thieves, to get rich by looting the property and the labor of tools and transfer lines. The number of people employed at the ZiO workers, between the typical representative of the the factory has fallen by over half (from 4,000 to less than Party and economic nomenklatura, N. Chikiryov, and the 2,000). The number of machine tools and transfer lines pro­ German adventurist R. Lang. I think that there were more duced is down nearly to one-third. influential figures behind Chikiryov, who became fairly Thus we face a serious problem of stabilizing industrial wealthy at the factory's expense. Both were absolutely indif­ production and halting its decline. I believe this could be ferent to the fate of the plant and the people who worked achieved by ceasing to import an unjustified quantity of there. equipment (at least those things we are capable of producing Honest cooperation with foreign companies is another ourselves), price controls on all fonnsof energy (heat, water, question. I hope that we will have a model of such coopera­ fuel, electricity), since the cost of metal, castings, and so tion in our joint projects to produce machine tools for the forth, as well as parts (electric motors, electrical wire, railroad industry, with the Simmons Machine Tool Corp. We hydraulic equipment, etc.) needed for the assembly and are currently negotiating with them. tooling of the plant's products, riSes in proportion to those prices. EIR: In 1989 you were elected director and returnedto your It is possible and even preferable to maintain efficient factory. What did you find? machine-building enterprises through governmentsubsidies, Panov: I found the enterprise in decline. It was many mil­ tax incentives, and state orders. But one way or another, lions in debt. The state plan for production had not been met. support from the state is indispensable. The Executive

EIR July 29, 1994 National Economy 23 as general director. Only two years later was this unlawful conviction overturned by the jlildicial college of the Su­ preme Court of Russia. . . . Panov appeals to In August 1993, when privatization of the company had just begun under my leadership, there was an assassi­ FBI director Freeh nation attempt against me, which I survived by a miracle. I received life-threatening fractures of the skull, ribs, and On July 6. 1994. Anatoli Panov sent the letter excerpted legs. Despite direct government!instructions to investigate below to Louis Freeh. director of the U.S . Federal Bureau this crime, the Ministry of Internal Affairs of Russia did of Investigation. in care of the United States Embassy in not investigate ....This is typical in Russia today. Un­ Moscow. Freeh had just opened an FBI liaison offi ce in like others, I was lucky: I am alive. Moscow (see EIR. July 22. 1994). At the present time, when the company's transforma­ tion into a private one has been completed, the mafia has Dear Mr. Freeh: escalated its pressure again. Orlce again, on an invented The U . S. government'sdetermination to assist Russia pretext, a criminal case against me has been opened and in the struggle against organized crime gives me hope that the Prosecutor's Officeis again preparing to oust me from you will give your attention to this appeal. In any case, I my post without any grounds. I do not exclude, that at have nothing else I can count on. The law enforcement this moment which is so critical for this factory, mafia agencies here in Russia are in effectrefusing to defend my elements may again attempt to eliminate me physically. rights as the lawful head of the largest privatized machine I should add that one of the first plansour company tool plant in Russia, the Ordzhonikidze Moscow Ma­ has, now that privatization has been completed, is to carry chine-tool Factory. . . . out a Russian-American joint project. I ask you, before it On the contrary, law enforcement agencies have be­ is too late, to insist to the competent Russian agencies that haved so as in effectto abet reprisals against me by a mafia they conduct-jointly with the FBI-a thorough investi­ group that includes former leader of the Russia Federation gation of the situation around the application of illegal Committee on Machine-Building A. Ogurtsov, V. Lobu­ measures against me. syev, and V. Golovlyov; this group has been attempting Respectfully, illegally to gain control of the company since 1990. In Anatoli Panov 1990, I was convicted of embezzlement, on charges fabri­ General Director, Ordzhonikidze Moscow Machine­ cated by the Prosecutor's Officeof Moscow, and removed Tool Factory

branch's current policy on the machine-tool industry, and against the productive sector, which is the basic source of tax machine-building as a whole, is leading to a catastrophic revenues. As a taxpayer, the producer today is practically collapse. strangled by the budget control and Executive branch struc­ tures. Taxes due to the state budget equal as much as 50% of EIR: Under these conditions, what are your real possibilities ZiO's profits in a year, for example. To function normally, as director? an industrial enterprise should n�t be taxed more than 25% of Panov: In industry today, virtually everything depends on its profits; the extra 25% goes to maintain a state bureaucratic production infrastructure. But the director still bears full re­ apparatus which has grown huge, especially in the Presi­ sponsibility before the shareholders for the company's per­ dent's apparatus and the Executive branch as a whole, which formance (making a profit, paying taxes, timely issue of today in Russia alone is double the size of what the entire wages, dealing with social problems). The director has to U.S.S.R. had before. answer to the workers, as well, on all problems. People are I believe that the government will have to acknowledge most concernedabout where I will get the money to increase that the "market reform" it carried out, understood as virtual­ their wages, when we have such inflation and a reduction of ly total freedom of not only economic, but also criminal orders and utilized capacity. activity, has caused catastrophic consequences for the coun­ What is to be done? I think we must halt inflation, review try and the absolute majority of its citizens. Shutdown and energy prices, establish tough control over the commercial bankruptcy are now forecast fdr companies which did not banks, reduce interest rates, and introduce a precise system die on their own, but were strangled. I state this with full of regulating wages at enterprises in the state sphere and responsibility, as a person elected to his post in 1989 by the service sector, in order to prevent wage discrimination absolute majority of the factory's employees. I am no "red

24 National Economy EIR July 29, 1994 director," I am not an appointee of the Party economic no­ miracle, thanks to a robust constitution and speedyemergen­ menklatura, and not an agent of the mafia structures. I am cy medical help, that I remained alive. simply trying to remain honorable before the people who Despite the fact that it should not have been hardto catch placed their trust in me. the criminals, since they most probably hid in that same If we go much farther, the last skilled workers and spe­ entryway and the police arrived very promptly, the investi­ cialists in machine-tool construction will join the ranks of the gation has been going on for almost a year, but the attackers unemployed, aggravating the already explosive situation in are still at large. The prosecutor'$ office has done nothing the country. to conduct a speedy or thorough investigation of the attempt on my life. But now, the very same prosecutor's office is EIR: Do you believe that what has happened at companies again fabricating a criminal case �ainst me on another pre­ like ZiO is just the result of spontaneous market relations? text, with the same goal of removing me from my post. [See Panov: I do not think these processes are spontaneous. I box.] believe that, in this instance, a unique machine-tool compa­ President of Russia Boris Yeltsin and the government, ny, whose products were chiefly used for developing the by the way, should know about tIilese intrigues against me, domestic auto industry and agricultural machine-building, since already in August 1993, right after the attack on me, is being liquidated in full consciousness. This will lead to before I even regained consciousness, the workers of ZiO irreparable losses for the development of machine-building appealed to them, demanding a stop to ministry interference in Russia. It will either disappear, or belong to foreign capi­ in personnel questions at Zi�. tal. This means economic, and then political dependence on I cannot exclude, that at present there are practically foreign countries, i.e., the loss of sovereignty. unhindered preparations under WilY for my moral, or even physical, elimination, in circumvention of the law. Those EIR: Your relations with the authorities are no doubt com­ who today are planning my physical destruction know per­ plicated. Do you have enemies? fectly well that no one will stand in their way. Panov: As the first and only elected (not appointed by the Nevertheless, I am an optimist. People support me. I ministry) director of Zi�, I encountered great difficulties in have many devoted supporters a1l1d friends, who cannot be relations with former Minister of the Machine-Tool Industry bought. I think we shall prevail. Nikolai Panichev, who did not want to come to terms with a director other than the candidate he wanted, as things had been for many decades. At first, Panichev triedto sabotage the elections, and when it became clear that he could not prevent them, he personally threatened me. So it continued in 1989, when I was elected and the factory not only fulfilled the state plan, but paid off over 10 million rubles of debt to the state, or one-fourth of the debt accumulated by my predecessors. Panichev didn't care. He and Homatek proceeded with So, Yo u their plan to oust me from the company, exploiting their personal connections in the prosecutor's office.The criminal Wish to case fabricated against me for abuse of office served as the pretext. I had to fight for three years to prove my innocence. Only thanks to the objectivity of the Supreme Court of Russia Leant All About were my labor rights reinstated. But neither Panichev nor the prosecutors were held responsible for their acts. EconoInics? by Lyndon H. LaRouche, Jr. As the privatization of the factory neared completion, Panichev again attempted to remove me, since he needed his A text on elementary mathematical economics, by the man in chargeof the enterprise-someone who would act in world's leading economist. Find out why EIR was right, when everyone else was wrong. the interests not of the company's collective, but of the minis­ try leadership. When all other arguments in the struggle Order from: against me were exhausted, evidently, the last and weightiest EIR P.O. Box 17390 Washington, D.C. 2004 1-0390 one came into play. Or call Ben Franklin Booksellets: (800) 453-410.8 In August 1993, I was attacked in the entryway of the (703) 777-3661 fax: (703) 777-$287 building where I live. I was brutally beaten with iron rods, $9.95 plus $3.50 shipping for first book. $.50 for each suffering numerous fractures of thelegs, ribs, and skull. The addi tional book organizers of the attempt wanted me dead. It was only by a

EIR July 29, 1994 National Economy 25 ITillFeature

Nigeriafa ces,down IMFto save its nationaluni ty by Lawrence Freeman and Uwe Friesecke

Eight months ago, on Nov. 17, 1993, the Nigerian Interim National Government of Chief Ernest Shonekan resigned and Minister of >Defense Gen. Sani Abacha took over as head of state and commander in chief of the Armed Forces. As the current minister of agriculture, Adamo Ciroma, said in an interview and back­ ground discussion with EIR in the Nigerian capital of Abuja on June 30, most observers gave this governmentonly until April or Mal)'of this year before it would collapse. Instead, the governmentis still in power, has outlived the serious attempt to destabilize the country at the beginning of June, and, most importantly, has implemented measures to reverse the economic collapse and has seated a constitu­ tional conference. Because the Abacha governmenthas not given an inch in its fightwith the InternationalMonetary Fund (IMF) , after it abandoned the economic deregulation and restructuring program at the beginning of the year, and because it cleverly outwitted the western sponsors of Chief Abiola in June, it finds itself now confronted with a new round of internaland externalatta cks. The front line of the attack is being run through treacherous parts of the trade unions. Instead of looking at the commitment of the , Abacha government to end the IMF looting of the economy and work out an ailternative of real economic development, the leadership of the National Union of Petroleum and Gas Workers fell into the trap and lent itself to the IMF interests by blindly pushing its members into a strike in support of the claims of Chief Abiola, who declared himself President, was arrested by the governmentand charged with four counts of treason in a federal high court in Abuja on July 6. So far , the strike has not paralyzed the country as intended. But it is clearly aimed at hurting the government's single most important source of revenue and creating chaos in the country. The strike escalated the week of July 11 when the union of the senior staff members of the oil companies joined. A leader ofthe U.S.-funded National Democratic Coalition in Lagos, Iyo Opadokun, explained the purpose of the strike: "We are going to make governing this country virtually impossible."

26 Feature EIR July 29, 1994 Nigerian Minister of IndustryAl- Haji Bamanga Tukur is interviewed by EIR' s Uwe Friesecke (right), in the Nigerian capital city of Abuja . Don't believe what you see on television about the Nigerian leaders: They are courageously upholding their national sovereignty and right to economic development, against the blackmail and threats of the international bankers.

This is exactly what part of the Anglo-American estab­ an article by the Washington Post Service from Addis Ababa, lishment has been calling for, in the pages of the London under the headline, "Clan Rivalri�s Threaten Africa with Economist and the Washington Post over the last several Upheaval ." The article singles out I Nigeria, because of the months. The attack on Nigeria was seriously escalated in the 250 ethnic groups in the country. If Nigeria disintegrates second week of July by pushing Chief Emeka Anyaoku , the under pressures from the West, al� hope for the rest of the secretary general of the British Commonwealth, himself a continent will be lost, and the strat�gic geniuses in the West Nigerian, to use his visit to the country to rebuff the Abacha will have added another African pq1icy-disaster to their list, government and complain about the so-called lack of de­ which already includes Mozambiq e, Liberia, Somalia, An­ mocracy . gola, and Rwanda. Governments in Washington , Bonn, Paris, and London During the first week of July, EIR interviewed govern­ l would be well advised not to interfere in the internal affairs ment ministers , advisers, and mili ary administrators at the of Nigeria. The West has two choices in the current battle state level , about the current situation and future perspective over the country's future . of Nigeria. This material is being made available to EIR It can accept the fact that the Abacha government is a readers beginning with this issue. reflection of the efforts of those forces in the Nigerian elite who are committed to the well-being of the country and who The Abacha government are trying to steer a course of national unity, by which to After the government came to power on Nov. 17, 1993, undo the damage caused during the last nine years . If the General Abacha addressed the country in a national broadcast Abacha government is given a chance , Nigeria could emerge and declared: "Sequel to the resignation of the former Head as an economic giant on the continent and become a pivotal of the Interim National Governm nt, I have had extensive strategic ally of the West to start reversing the trauma of the consultations within the Armed Forces hierarchy and other I economic , social , and political disaster of Africa. well-meaning Nigerians, in a bi to find solutions to the Alternatively, the West can listen to that fanatical faction various political , economic, and s9cial problems which have of, especially, the Anglo-American establishment, which , in engulfed our beloved country and which have made life most the tradition of British nineteenth-century style colonialism, difficult for the ordinary citizen of this nation ....Many tries to exploit frictions inside Nigeria's institutions to para­ have expressed fears about the appdrent returnof the military. lyze and ultimately destroy the country. This policy was Many have talked about the concerbof the internationalcom­ advertised in the International Herald Tribune on July 15 in munity. However, under the prese�t circumstances, the sur- I

EIR July 29 , 1994 Feature 27 vival of our beloved country is far above any other consider­ executive power could the couhtry's driftinto disintegration ation. Nigeria is the only country we have. We must lay a be stopped. Otherwise, it is in�plicable that the key posts in very solid foundation for the growth of democracy. We the current government, like ithe ministers of agriculture, should avoid any ad hoc or temporary solutions. The prob­ industry, water, petroleum, and foreign affairs, were given lems must be addressed firmly, objectively, decisively, and to prominent civilians who had Served the governmentbefore with all sincerity of purpose ....This regime will be firm, and who, in discussions with 'EIR, left no doubt that they humane, and decisive. We will not condone nor tolerate any regarded their job as one of ord�rly transition to a democrati­ act of indiscipline. Any attempt to test our will, will be cally elected government. They all stressed that the collapse decisively dealt with. For the international community, we of the economy and the antics Of the former military govern­ ask that you suspend judgment while we grapple with the ment had destroyed the basis fot credible civilian institutions, onerous task of nation building, reconciliation, and repairs. and that a new beginning, as ex�ressed in Abacha' s broadcast This governmentis a child of necessity, with a strong deter­ of Nov. 18, was needed. mination to restore peace and stability to our country, and on these foundations, enthrone a lasting and true democracy. The transition to democracy Give us a chance to solve our problems in our own ways." On June 27, General Abacha inaugurated a constitutional The decision of the military to take over the government conference of some 370 delegates. About 270 were elected was a reaction to the most severe crisis the country has faced in polls throughout the country, and the rest were appointed since the end of its civil war in 1971. After the machinations by the government. Within tqe next four to five months, of then-Head of State General Babangida, the country in this conference is supposed to deliberate on those political the fall of 1993 was about to break apart. Eight years of a institutions and procedures by which Nigeria can return to a disastrous economic policy, modeled upon the IMF's Struc­ democratically elected government. This task is most diffi­ tural Adjustment Programs, had destroyed living standards cult because of the history of ci�ilian institutions falling into and reversed the process of development started after inde­ ruin, especially at the end of th� second republic in 1983 and pendence on Oct. 1, 1960. Babangida's blatant manipula­ the end of the Babangida regime in 1993. During its 34 years tions of the political process between 1991 and 1993, with of post-independence history, Nigeria was only ruled by the sole purpose of keeping his power, had destroyed the elected government for 10 years. It is therefore justified, if credibility of any form of civilian administration on the state no specific date has yet been set for the conclusion of the and national level , so that it came as a relief when the civilian constitutional conference. Even if some prominent Nigerians governorsof the 30 states were replaced by military adminis­ who are well-known internationallyare not part of the confer­ trators. The interim Shonekan government, which replaced ence, the intention to work out a new solid constitutional Babangida on Aug. 26, 1993, could not even command all framework that preservesthe unity of the nation is very clear State Executive Councils to attend a national meeting, be­ from the fact that some rather controversial figures, such as cause some would simply refuse to come. Numerous sources Umaru Dikko, whom the government, during the regime of confirm the danger of a repeat of the tragedy of the civil war Prime Minister Buhari (1984-85), tried to bring back from of 1967-71. If Chief Abiola, a millionaire from the southwest London forcibly in a crate, and Emaku Ojukwu, the leader of the country, who had been given his wealth by the military of the Biafra secession during the civil war, are today part of during the 1980s and made head of ITT, had taken over the the conference. government in the summer of 1993, some states, especially The Abacha governmentis tryingto steer a most difficult in the east of the country, would have seceded. course among traditional power groups. General Abacha This goes to the heart of the matter. The patriotic elite in himself and prominent ministers, like those of agriculture Nigeria will do everything in its power to prevent the nation and industry, are from the HauSiSaiFulaniand Muslim north; from breaking up. Contrary to the propaganda of incompetent the chief of the general staff and the minister of housing are academics and media in the West-for example, Basil Da­ from the Y oruba southwest, which is predominently Chris­ vidson's Curse of the Nation State-there is a strong idea of tian. The constitutional conference's chairman is Justice nationhood in Nigeria, especially among the military. The Karibe-White from Riverstate in the south, whereas the depu­ preservation of national unity is seen as the precondition for ty chairman is Justice Mamman Nasir, a prominent tradition­ the development of the country. Whenever that is threatened, al leader from the north. the elite, and not just military officers, will decide to use the institution of the 100 ,OOO-strong military to preserve the Battle over economic policy integrity of the state. This is exactly what happened in No­ Very much to the dismay of the IMF, the World Bank, vember of last year. It was not a "generals' clique" as por­ and the international banking community, the first measure trayed in the westernpress, which took power. But there was the Abacha government took with its 1994 budget, was to consensus between the majority of the military leadership and formally suspend the IMF Structural Adjustment Program prominent civilians that only by the military's reassuming and implement dirigistic measures to stop the bleeding of

28 Feature EIR July 29, 1994 the country's currency reserves. The national currency, the neira, was fixed at 22 to the dollar, and only $100 million is Interview: Adamo CirQma allowed to be sold by the central bank every two weeks. Interest rates were brought down from 150% to below 20%. This not only challenges the IMF's shock therapy, but it ends a paradise for greedy bankers, Nigerian and foreign, who had looted the country. Victoria Island in Lagos since 1985 We deselVe respect has probably had one of the highest concentration of banks in the world. Afterthe IMF -dictated deregulation of the banking for what we have done system, Nigeria was notorious for allowing people to open a Mr. Ciroma is Nigeria's minister of agriculture. He was bank with a valid passport and a briefcase, and walk away as ' millionaires a short time later. interviewed on July 1. There is a strong current within the Nigerian elite who repeatedly, after independence, fought the IMF. The last EIR: We see globally signs of the weakening of thecurrent nine years have taught them a bitter lesson again. Most of financialsystem; that the policiesof the International Mone­ the economic achievements during the first 15 years after tary Fund (IMF) and free trade are �eginning to fail. What independence have been eroded or rolled back. Living stan­ effects do you see of the collapse M the present monetary dards have collapsed, the health and education systems are system for Nigeria? severely damaged, and poverty is rampant. Industrial pro­ Ciroma: We are going through twq phases. The firstphase duction has shrunk and thrown workers into the "informal" was acceptance by the Nigerian gojvernment to apply IMF sector. With the ascent to power of General Babangida in policies; that was between 1985 and 1993. In the 1994 bud­ 1985, the doors were opened to the Structural Adjustment get, we have had to introduce some controls in order to Programs that ruined the country. deal with the problems introduced by the IMF policies of The Abacha governmenthas therefore set up a National deregulation. It is clear that while the market forces argu­ Economic Intelligence Committee (NEIC) as the most impor­ ments and deregulation are being held up as ones that allow tant advisory and policy formulation body for the govern­ resources to flow into the right areas, and which arecorrup­ ment. The chairman is the economist Prof. Sam Aluko, who tion-free, the proof, in fact, is somewhat different. The mar­ is well known for his critique of the IMF policy. The commit­ ket deregulated system has a great deal more corruptionthan tee, whose members and advisers represent all walks of the was the case during the previous era of regulation. civilian life of Nigeria, is currently analyzing the state of the Secondly, the free-trade policies, as part of the IMF poli­ economy and reporting quarterly on the implementation of cy, allowed resources in a depressed economy to be applied the 1994 budget. As the following interviews with the com­ to the importation of items which one would not expect to mittee chairman and the ministers show, there is an open see on the shelves, like dog food, cat food, and similar items. debate within the government on how to bring the economy These are sharp contrasts, and nobody can actually defend it. fully back into industrial and agricultural production and Now the new policy, which introduced the fixingof ex­ development, and end the import orientation which was change rates, the fixing of interest rates, has drawn a lot of forced upon the country by the IMF/World Bank. This flakfrom the banking sector. In their words, the policy must government will fight for the completion of a steel plant, a fail. And from the information available to us, they gave the national pipeline system, a liquefied natural gas plant, the policy six months, by which time i� would fail. And this has Elima petrochemical plant, and other industrial projects, the backing of the IMF and the World Bank, whose officials which are all blocked right now, because the World Bank, publicly and gleefully predicted the failure of the Nigerian among others, refuses to make the last part of the financing policy. available. The deregulation policy created in Nigeriaa large number In summary, the majority of the governmentis committed of banking and financial and other :institutions that were in­ to stopping the looting of the country's raw materials and volved not in production, but in moving money from left to people by the IMF free-market economic system. It is debat­ right and getting a cut of it. The island in Lagos was in fact ing how to implement the best strategy for fundamental eco­ nicknamed a "banking island," because of the number of nomic development in the tradition of the aspirations of the banks, one-room, two-room banks, that were flourishing, period right after independence in the 196Os. The IMF and with briefcase-toting individuals wearing suits roaming all most bankers in London and New York see the direction of over the place, talking among themselves, being at seminars the Abacha government as encroaching upon their freedom here, being at dinners and lunches there, but producingnoth­ to loot the former colony, and they just don't like the guide­ ing, except getting cuts from money being moved from left line the NEIC has set: "We don't want the rich to be getting to right. This occurred to such an extent it reached the absur­ richer and the poor to be getting cholera." dity of intra-bank rates reaching up to 150% . It shows you

EIR July 29, 1994 Feature 29 Left to right: Muhammed Sanusi Daggash and Lawal ldris, hosts of the EIR delegation; Nigerian Agriculture Minister Adamo Ciroma; EIR's Lawrence Freeman . Says Mr. Ciroma: "Our own survival, without reliance on others, has been based on the appreciation that we have to fe ed ourselves, and therefo re resources and policies were directed in that direction . "

also the weakness of the system, because nobody can borrow from about 180,000 tons to 40,900 tons, because the prices at that kind of rate to produce. It also tells you that the whole offered in the previous years iere so abysmally low that system was in jeopardy, because this kind of borrowing was farmers went out of cotton prod�ction. Those who remained distress borrowing. It happens that Nigeria's 1994 budget in it last year reaped the bene�, because the prices went has exposed this weakness of the financial system and it is through the ceiling. It is this see-saw development which the bringing about the collapse of many of the finance houses commodity board system originJUy was supposed to avoid, and the banks that have contributed nothing except misery . to stabilize and guarantee the f�er's income. We have been somewhat lu�ky, because growth in the EIR: Nigeria also had imposed upon it the structural adjust­ food sector has increased. But this is not merely due to dereg­ ment programs of the IMF during the 1980s, up until the ulation; it has been the result df consistent application of current government. Could you tell us what the effects of the government investment in agriculture over the years. Since SAP were on Nigerian agriculture? 1978, there has been a realizati that Nigeria's agriculture Ciroma: Well, the first effect of the SAP on agriculture was was lagging behind. It has suffofjred from the oil boom. In to introduce deregulation of the commodities market. It is 1977 , or thereabouts , General O�asanjo introduced what was true that, until the 1980s, the government system marketed called "Operation Feed the N ati , n." It was precisely based commodities at home and abroad , through the commodities on the appreciation that though we now earneda lot of foreign boards. The commodities boards had become truncated and exchange from oil, we had neglected our agriculture and it inefficient, with the result that they survived by paying the was necessary for the nation to febd itself. When the military farmer less than what we could get on the world market. This left the stage, and we came in in 1�79, we adopted a modified was a disincentive which caused a decline in production. version of "Operation Feed the Nation," and we called it the The deregulation argument was that if you abolish the "Green Revolution," and we poJred a considerable amount commodity boards, farmers will be free to sell their produce, . of resources into agriculture in o der to encourage the nation l prices will rise, and production will increase . Once the com­ to feed itself. So it is the accum�lation of these policies that modity boards were abolished, in some cases private banks led to an increase in agricultural production in the middle- rushed to take advantage of this situation , and it's true that in 1980s. some cases, prices went up. But quickly, within a year or I two, the prices came down, because when the farmers re­ EIR: What are the main crops in Nigeria? Is there self­ sponded to the price and produced more , the buyers respond­ sufficiency in food? How much hal ve you generated for ex­ ed to the quantity and bought at lower prices. The result is a port? What are the crops or area I that you would like to see see-saw, as far as production and pricing are concerned . expanded? Last year, for example, cotton production went down Ciroma: Agriculture contributes about 40% of GDP, and

30 Feature EIR July 29, 1994 65-70% of the population is involved in or supported by Ciroma: I think one can look at this issue from a number agriculture. Cotton is one of our major crops. The textile of perspectives. First the policy pe�pective. The countries industry, which is a big employer, was based on protection themselves have got to be organized in Africa, and to have of local fiber--cotton. Cotton used to be exported in large the policy to ensure that they are selIf-sufficient in food, in quantities, but now we have very little to spare for export. spite of whatever natural problems Ithey may face. This is The best-known agricultural product from Nigeria is co­ very, very important, because OUT ; own survival, without coa, and this has been exported consistently over the years. reliance on others, has been based On the appreciation that This is because very little cocoa is consumed locally. It has we have to feed ourselves, and therefore resources and poli­ been one of the most effective contributors from the agricul­ cies were directed in that direction. I tural sector, in terms of foreign exchange. Second, steps have got to be taken to overcome some of Third, Nigeria has the best soil, the best climate, for the the natural problems which affect some of these areas. For production of natural rubber. In the last few years, we have example, there are areas affected by drought or desertifica­ probably been the world leader in natural rubber export. This tion, or attacks by pests such as graSshoppers and locusts. It is an area which we can develop, and increase land under is necessary to try to conserve watbr, not only for human rubber and replant, because quite a number of the plantations consumption but for irrigation. In t�is country, we feel that have aged. Because of these advantages, it is in our interest we have to manage these water resources in such a way that to encourage increased production of rubber. they can supplement what we produce in crops. I believe that We also produce palm oil and palm kernel oil. In food the countries that are susceptible toi drought must look into staples, a large quantity of maize is produced. This crop is how to conserve water and how to geberate irrigation, at least almost universal in its presence. We produce other grains­ to minimize the incidence of these disasters. millet and sorghum. These represent the major grains that The third thing, is having the right political framework are consumed locally. that creates the stability for people to go about producing the In the last five years, because of a special program to food to feed themselves. If you remember, some years ago, encourage the production of casava, we have become the there were certain experimentations in Ethiopia and other world's biggest casava producer. This is used not only for parts of the Hom, which dislocated the production system. food, but to produce Scotch and other products. Some of these instabilities and civil wars disrupta production Almost all the foreign exchange in the past was from system. These are the kind of things which these countries agricultural produce. It is no longer the case now, since oil have to avoid at all costs. came into its own, and, today, about 92-95% of our foreign But, it is sad to say that, in tl1te last few years, these earning is based on petroleum. blowouts and ethnic conflicts have increased; I believemar­ The effort now is to revive some of these commodities ginally because the economies have in fact been so de­ for export, and we are working very hard. We have a new pressed, and that all the aid which was supposed to go to program to promote the production of industry and commodi­ these countries has resulted in net outflows.So that the coun­ ties, such as cotton, rubber, and cocoa, and we are directing tries have been beggared over these periodsand the economic effort at new investment in these areas. stresses have produced social stresses which disturbed the production cycle and created food sijortagesand the addition­ EIR: Are there any pockets or areas of Nigeria that are al instabilities. So this is a cycle wh,ich has to be broken. suffering from lack of food? Or is Nigeria able to feed its population? EIR: Would you see the IMF conditionalities-payment of Ciroma: Well, what I can tell you definitely is that Nigeria debt, deterioration of the terms of trade, forced devaluation is not a rich country. Our caloric intake is just over two-thirds of the currencies-as an impedimerltfor developing the con­ of what the intake is in Europe or the United States. But, ditions for successful agriculture in Africa? throughout the 1980s up to now, while many countries in Ciroma: Certainly. I think that it ;will not do the IMF and Africa have had to go begging for food aid, we are happy World Bank and their backers any harm to eat humble pie. that Nigeria never had the need for food aid from any source. You can produce policies and believe that they must be right and ask some other people to experiment with them. But if EIR: The U.N. Food and Agriculture Organization is right they fa il, you should be good enou� to accept that they have now warning of a new famine crisis in the Hom of Africa failed. Until very recently, there haS been a kind of incompre­ and in eastern Africa. From your Nigerian experience, what hensible obstinacy by the IMF people, as to the correctness would your recommendations be for solving the agricultural of the policies which they prescribt for all countries that are problem for Africa as a whole? What were the mistakes made receiving, or that have become the subject of their assistance. in agriculture and how should agriculture be organized so It is very interesting that every countryreceives the same pre­ that the entire continent can be fed, without going begging to scription; it is not possible for all si¢kness to be treatedby the international institutions? same drug. So, the problems are varied; the prescriptionsare

EIR July 29, 1994 Feature 31 not tailor-made for any one country. The conditionalities are farming? And what is the idea for a change to a more market­ the same and they have produced deteriorated situations for production agriculture, whicl) produces more than for the almost everyone for whom they have been applied. And it is family of the individual farmer? very interesting to see the IMF and World Bank system trying Ciroma: I believe that subsistence agriculture is 90% of to findexamples of where their prescriptions have caused suc­ Nigerian agriculture. There ha,ive been developments in com­ cess. And honestly, if you look at the examples which they mercial agriCUlture, but thesej have been a failure in many have given, they don't stand any test. respects , because the costs of production have been increas­ ing. This is explained by the cost of herbicides, the cost of EIR: Like, for example, Ghana? machinery, the price of seeds; these have been on the increase Ciroma: Ghana and even Nigeria were held up as successes phenomenally. such that cOIl)mercial agriculturalists have of IMF policies. If you ask the Ghanans, they don't believe not been able to break even, anptherefore have tended to pull so. If you ask us, we have just changed the policy. But we out. Right now, we are trying to work out the package of have been subjected also to some pressures and indignities, incentives necessary to make �omrnercialagriculture pay. It and obstructions, and threats, because we have dared to find is only when it pays that it becpmes good business. solutions which we believe may be more appropriate to our The subsistence farmer does not cost his product, with situation. the result that he is losing; as you can see, his condition is not improving because he is nQt getting the right price for his EIR: The United Nations is planning a conference in Cairo, product. There is somebody iin the city who is eating up Egypt-a part of Africa-on Sept. 15; and the purpose of what he produces. But also th� profile of the population that this conference is to reduce the world's population. One of engages in subsistence agricuilture is very interesting. The the arguments given over the years by the malthusians has age is increasing; young people are not going back to the been that food production will always lag behind the repro­ drudgery of farming. The result of this is that it is not a duction of people, and therefore inherently you will have to reliable source of sustenance. And that is why it is necessary reduce the number of people, because agriCUlture cannot now to direct the effort to reneWing our production in agricul­ maintain the pace. Do you see any evidence that that is true? ture by encouraging and making it viable for people to go Ciroma: No, the evidence is to the contrary. India had been into commercial agriCUlture �cause this is the development fffamine area for many, many years and all its problems were of the future. This is where the surpluses can be produced. attributed to the rate of population increase. Since the late 1970s, with the introduction of the "Green Revolution" and EIR: Isn't a precondition for this a development of industry other policies, India has been able not only to feed itself, but in the country, so that gradually the total amount of people to export food. China, in spite of the size of its population, involved in agriculture can be teduced by increasing produc­ has been able to feed itself. So it is not true; there arescientific tivity; enlarging the farms, bu� at the same time not creating advances and other technological developments which, if landless unemployed, but productive industrial workers? applied, could increase production to overcome the increase Doesn't this process go togeth�r as a total development per- of population. spective for the country? I Ciroma: It worked that way in other experiences, and in EIR: It is said often in the West that Africa's problems are every experience I think there will be the need to reduce the because "it is overpopulated." But of course, when you come population on the land. But in �this country, it is not difficult to the continent of Africa, you findit is underpopulated. We to increase the acreage, because the land is still available. have done studies showing that Sudan is rich in its soil and But you need a stronger econo�y, based on agricultural pro­ could potentially feed all of Africa if necessary. Do you see duction, so that your industrial development can become the possibilities for Nigeria, Sudan, and other countriesto be more sustainable. Because whenever the development is able to feed, not only the existing popUlation of Africa, but a based on sustained agriculture, you can see that the change growing population of Africa, in the future , with the right becomes firmer; you can see, the prosperity being spread policies? wider. Ciroma: Definitely. I believe, for example, that we could In a country where 40% of the GDP is being contributed produce more grains than we could possibly consume. Any­ by agriculture, you have to strengthen agriculture first, in one can see the kind of increases that are possible, so long as order to encourage the transformation industries that are you are able to have the right seeds, availability offertilizers, based in processing, and then �ou go to some other areas. machinery to help production. I believe that we should be able to feed more people than Nigeria has-the truth is that EIR: You said there is more land. How big is the average we already feed our neighbors. I think we can do more . farmer's holding? How much more arable land do you think there is in the country? EIR: What percentage of Nigerian agriculture is subsistence Ciroma: The average size of a peasant-farmer's holding is

32 Feature EIR July 29, 1994 I believe that we could produce more grains than we could pdssibly consume. Anyone can see the kind qfincr eases that are possible. so long as you are able to have the right seeds.jertilizers. machinery. We should be qble tofeed more people than Nigeriaas- h the truth is that we alreadyjeed ou� neighbors.

probably 2-3 hectares, whereas we believe that only about is for real, and I believe that the slq:pticswill be disappointed 50-55% of the land area has been put under cultivation. at the end of the day, because then� will be a transitionto civil rule.People like me would not havebeen in the governmentif EIR: What do you think right now is the size a successful we did not believe that the purposeof this military govern­ commercial family farm should be? ment is: 1) to preserve the unity Qf the country; 2) to lead to Ciroma: It depends on what they are producing. Where you civilian rule. We were among the victims of the previous are using irrigation and producing vegetables and similar policy, the non-faithful policy of transition to civil rule, and things, you need less area for viable farming, whereas in the we would not like to see this repeated. We areconvinced that drier parts, you need a larger area. It is difficult to talk about this one is for real. average size in that respect. EIR: Was there a danger last Sqptember-October of chaos EIR: What is the situation with livestock production? How in the country and that the nation would have been broken far is milk and milk-product production developed, and could up? that be expanded to be a reservoir, especially for the nutrition Ciroma: There was a definite danger of chaos; this country needs of children? was shaken to its very foundation. Every Nigerian who was Ciroma: The cattle population is about 33 million or there­ in Nigeria knew that it appeared we were on the verge of about. The cattle is mostly beef. So the amount of milk is disintegration. The general who lNasa member of that gov­ very low. The local dairy provides fresh milk, sour milk, ernment decided to lead the pre�ent military regime and to yogurt for local consumption, but because the yield is low, bring on boardin the governmen� known democrats, people the consumption of these dairy products is on the low side. who have taken partin the transition politics. The consumption of meat is based not just on our own cattle, but neighbors also export their cattle to Nigeria, because EIR: Do you have a message that you want us to carryback Nigerians are better able to afford to eat meat than their to the United States and Europe? neighbors. Ciroma: You know, it used to be theconventional wisdom The livestock breeding is increasingly becoming prob­ for countries to abstain from int�rfering in each others' af­ lematic, because livestock was based on free range. This is fairs, and to believe that the citizens of any country know becoming more and more restricted, as farm acreage in­ best how to solve their problems, The threshold of interven­ creases. We are reaching a point where you oftenhave clash­ tion has been lowered. Especiall)f since the destruction of the es between the animal breeder and the farmer. But there is a Soviet Union, a certain internatiqnal arrogance has risenand policy to try to encourage mixed farming. We are also look­ is widely telling everybody what to do to solve their prob­ ing ahead at this problem, trying to provide grazing reserves, lems. These are people who a¢ so self-sufficient in their trying to ensure that the cattle farmers settle down and grow economy and have little knowle�ge of what other countries their own grass, and look after the cattle in one spot rather are really like. And yet they are dictating to these countries than move over long distances between the wet and dry how to solve their problems. I hope that this phase in interna­ seasons. tional affairs and politics will no� last for too long, because it does too much damage to the worldas a whole. EIR: The present transitional government in Nigeria under We here have experienced a lot of things which the West General Abacha has been criticized in the West for being a has not experienced. And when we choose a path to solve military dictatorship. Yet some of the policies that have come our problems, I think that a certain amount of respect ought out of this government, in terms of exchange controls and to be attached to what we do. I �ink that way there may be interest rates, have helped agriculture and industrial produc­ greater international understanding than can be generated by tion. How do you see the current transitionin Nigeria and the this dictatorial attitude on intervention by force; on use of role of this government? secret service operations; on coercion in the economic sector; Ciroma: There is no doubt that the transition program here and the politicalpart.

EIR July 29, 1994 Feature 33 Interview: Dr. Sam Aluko

'We emphasize thefu nction of production in our economy' Dr. Aluko is a member of Nigeria's newly fo rmed National thinking before and what they now think should happen. Economic Intelligence Committee. So we report this to the head of state. Even the ministers themselves, some of them, don't believe too much in the EIR: Your committee was set up in February to examine workability of the 1994 budget; they don't believe in govern­ the 1994 budget and to look at the Nigerian economy and ment regulation; they say they want the market system to report to the commander in chief. Could you tell us exactly function. We try to make them aware that even though the what your findings were on the Nigerian economy? market is very good, they must know that a country like Aluko: We were set up to monitor the 1994 budget, to ours is very far away from the world market; that the world monitor the economic activities, and advise the head of state market determines the cost of our goods, our exports, and every quarter. But we felt that it was not just enough to determines the costs of our imports. Therefore each country look at the budget without looking at the economy itself. must try to look at itself-this is what we've tried to do So, since we were set up, we have produced two reports to in Nigeria-to see how we can manipulate, manage the the head of state, one in March, the other one just this month resources, so we can increase productivity and grow by this. [June] . But what we have done, really, has been to interact Our members have been quite up to the task because we with various sectors in the economy. As of today we've are brought from various backgrounds. Our secretary general interviewed about 26 to 28 various organizations: trade is a military officer; we have bankers; we have teachers; we unions, manufacturers who sell to Nigeria, bankers, finance have university professors; we have people from extreme houses, manufacturers , motor assembly plants, cement fac­ right to extreme left. But we try to look at the thing together. tories, farmers, even colleagues from at home and abroad. This was in order to have an overview of how the economy EIR: When you are looking at the economy of Nigeria, do is functioning. We tell every one of them that we would you see the difference between ithe productive side of the like to have a dialogue with you on a confidential basis­ economy, as opposed to simply Ithe money-creation side? hide nothing from us; we will hide nothing from you. Aluko: Yes. In fact, this is wha� we have tried to let people As of now , we have become well-informed about the understand. Take the value of tbe naira-a monetarist ap­ structure and performances of the economy. In fact, at times proach is not the same thing as a production approach. We we know more about an industry than do the operators of emphasize the production function, rather than just manipu­ that industry. We know more at times about a ministry than lating the rate of interest, the rate 'of exchange, and the value the minister himself. We have tried in this venture to make of money and just getting paper money, which is not at all people realize the interconnection of the interim measures related to production. This is why we have been trying to and the economy-rather than to look at themselves as an say that the rate of interest should be regulated; the rate of autonomous, separate unit within the economy. exchange should be regulated, and not left to a market Take the bankers, for example. The bankers were saying mechanism over which we have no control. It may even be that the rate of interest, 21 %, was not high enough to gener­ necessary , in some cases, for government and even the ate savings. The rate of exchange, 21-22 naira to the dollar, private sector to subsidize production, such as agriculture, is too low. We tried to make them aware that they must small-scale industries, and even �xports. We say: "Our aim look at the production section of the economy. The producer is really to find out how the massive resources that we that does not make a 20% profit and is borrowing at 22% have in Nigeria in men, materials, and money can really will not go into production. And as a result, production does be garnered and translated into production--of goods and not rise; the national income does not rise; savings do not services for the common good. 'We must also look at the rise. When the rate of exchange is too high, the value of various sectors of the population: we don't want the rich to money falls, then of course productivity will fall, consump­ be getting richer, and the poor to be getting poorer. And tion will fall, and so on. this is what has been happening. There seems to be growing Even though we have not achieved homogeneity, we antagonism between the rich and the poor. The poor are have been able to bridge the gap between what they were hungry so they cannot sleep; the rich are not able to sleep

34 Feature EIR July 29, 1994 because the poor are weak, and so we are all in the system.

EIR: The International Monetary Fund's (IMF) structural adjustment programs represent these type of monetarist poli­ cies that have been imposed on Nigeria. What have been the effects on production? Aluko: We have discovered over the last eight years of structural adjustment in Nigeria that what we have been adjusting has really been the currency, so I call it monetary maladjustment. This sick economic theory talks of economic adjustment in the sense of decreasing the capacity of the economy for the financing of production tools, decreasing production per capita, dependence on foreign imports .... This is what traditionally, or technically, we know as eco­ nomic adjustment. But rather than that, the actual capacity of the economy had been falling since 1986. Many of the industries are producing at very low capacity, because they cannot borrow the money; they cannot import; they cannot even pay wages and salaries. The wages and salaries paid do not even meet the basic needs of the population . All this put together had been having a deleterious effect on the productive capacity of the population . So you have a low naira , but less and less goods and services. So this is why we want to shift away from the structural proponents of the World Bank and IMF and to move into production. tivity is falling, ethnic rivalries conflicts are rising. It EIR: General Abacha is moving in this direction? is much easier today to call out on strike, to call Aluko: I think so. In the two times we've reported to him, workers out in the streets , because are hungry and they he really surprised us by the grasp he had of our reports. are more dissatisfied than 10 or years ago. So, this is We do have some problems, possibly with the minister what is happening in Africa: The burden is increasing; of finance and the central bank, who act as if they are still the ability to pay is diminishing; even resistance to the IMF-rented, who talk of appropriate pricing, appropriate West is growing, because they the local [government] . I rate of interest, appropriate rate of exchange , which is not cooperates Wit'h t h ese agencies as oppressors. The db e t unusual in economic theory . We used to talk about the has increased almost ten times 1980 and 1994, and natural rate of interest, natural rate of exchange, natural rate the ability to pay is diminishing. So you are right to say of employment, natural rate of growth , but it's nothing like that the situation in Africa, in of all the resources, that; you have to manage these things! Things don't happen both man and material , is getti worse. And if we don't themselves. So we say: "Look, resources don't manage your reverse this trend there will be a cataclysm, a collapse. mind please; your mind builds resources ." That's the way The same thing is happening in part of eastern Europe. we must look at ourselves, and look inward and see what So I think really that the world ha� to look back at what we we can do so as to be able to meet the aspirations of our used to call the World Economic prder, the distribution of people, and what they are trying to achieve. wealth and of production capabilities around the world. We have to look at what are the meanJ of enhancing the growth EIR: Could we enlarge our discussion to view the African in the real product of the economy in African countries, continent as a whole? Africa has mostly made the news with particularly in Nigeria. disasters and human tragedies in the recent petiod. Do you think the economic conditions could be changed so that real EIR: Do you think the Lagos P an of Action could be a I economic development could overcome these disasters? reference point for such a discuss;on? Aluko: Yes, in fact this is my hope and the hope of every­ Aluko: Yes. The Lagos Plan of Alctionhas also been modi­ body . I am one of the so-called consultants to the World fied a little by the Economic Comrhissionfor Africa--called Bank and some of its agencies, and I have been to various the alternative to the structural Adjustment program. The African countries-South Africa, east Africa. What is hap­ Lagos Plan of Action was in fact a real antidote to the pening in Nigeria is not as bad as what is happening in most World Bank and the IMF conditidnalities and systems. But other countries as a result of the IMF-World Bank adjustment apparently the Lagos Plan of Actidp has not been sufficiently programs. The condition is getting worse and worse; produc- addressed. My committee is getting a lot of information

EIR July 29 , 1994 Feature 35 from various people-various documents, some of which really recycling from the developed countries back to the seem to be going along the line that we are thinking, which developed countries in terms of Symposia, seminars, receipts would now emphasize real development, not just manipulat­ and so on. Then the experts, iso-called, move around to ing currency and money. advise, to make assessments; we have enough assessments of what is going on. EIR: Would you say that this can be related back to the They should let us do as they did in their own time. I original dreams and visions at the time of independence, remember that when America was developing, for example, the time of John F. Kennedy, Martin Luther King, and the they even went into isolationism; they even refused to join founders of the African nations? the League of Nations; but today they want us to open up Aluko: That's one of the things that has been disastrous; all the economy to compete with America. We can't compete the dreams of the founders of independent African countries with America! We can't compete with the West today. They don't seem to have been realized, because they were looking say we should not subsidize-they should let us look at forward to a dynamic growth of the economy, growth in those areas where subsidy is netessary, where competition human welfare, in education, in health, and the ability to is necessary, where free enterprise is necessary; rather than bridge the gap between the developed and the developing just say we must open up; we mUst commercialize; we must countries. But so far, instead, the gap seems to have been privatize; we must let market economy function. widened. And if we are not careful, it will never be breached. The liberal leaders of the West seem to have lost out. EIR: Lyndon LaRouche, the founder of our magazine, has Their places have been taken by the custodians of the West put forth programs for massive fnfrastructure development, who see themselves as the citadel around which growth in including rail lines from Europe, across Russia into China, the world revolves. And therefore, they have formulated and rail lines down through Italy and then over to the conti­ this idea of "free market," "privatization," "commercializa­ nent of Africa. Do you see that Nigeria and Africa could tion"-all of which are just unrelated to the needs of the benefit from these kinds of projects? economy here. "Retrenchment of workers," "reduction of Aluko: In fact, I think that is one of the major areas where the activities of the state in the economy in their country"­ we can begin to look for solutions. Uyou go through Nigeria, the state has taken almost one-third of the resources-you for example, you will findthat the roads are bad; the electrici­ have to say that state should not be in the system. Before ty is erratic; water does not fl

36 Feature EIR July 29, 1994 Interview: Al-Haji Bamanga Tukur

'Our priorityis to inlprove our agriculture and industry' Mr. Tukur is Nigeria's minister of industry . things remain to be done. We 't get access, maybe, to foreign exchange to get a few parts , so that we can EIR: Before we get into specificallyNi gerian industry , how now get that industry going. It's responsibility to get all did the International Monetary Fund's structural adjustment these to fu nction. programs affect Nigeria over the recent period? There are so many industries operating at a very low Tukur: They affected Nigeria positively in many ways, and capacity . Now they could employ maybe 500 people, or also negatively in others . Positively, in the sense that when 1,000 people; you find out that thely end up employing 50, smaller exports and smaller-scale industries started , there because they do not get access tol raw materials, because was a kind of determination to have self-sufficiency. But they couldn't get access to foreign exchange to buy the raw because of the many structural defects, that which ought to materials to blend in with the material that they can have helped the real structural adjustment to take place , was source. And that alone means opera10C� 'ing1 at a very low level of not in place. So the whole thing really flattened. And then installed capacity. Unemployment goes up; then, of course, naturally, with the fall of prices in the oil economy, the income goes down; normally even ttieguy who sells a tomato hardship really surfaced more than anything else. will now find it very difficult to ell that tomato, simply It's a very good concept, but it has to rest on certain because the guys around who woulU buy his tomato are not structures. I'll give you an example. If a small-scale industry in a buying capacity anymore. It is difficult, unless one really was going to open in a developed country, they would not comes down to earth and finds out 'fhat actually is the prob­ bother about access to that place, because the roads would lem. The problem has to be understood right from the local already exist. They would not worry about electricity . They areas. would not have to think about providing water; it is already there . So their costs can be easily identified. But where these EIR: For the country to develop, you would need certain things do not exist, or only feebly, they are in trouble. Be­ industrial , manufacturing industries. You would need certain cause they will come to be faced with so many unknowns things like electricity and other types of infrastructure. Where immediately, that the project won't be viable. The entrepre­ do those industries stand right now in the Nigerian economy? neur now has to dig wells; oh , the electricity has gone Are you making progress with th�m? Which ones do you down-he has to provide a generator, more spare parts . So want to put the most emphasis on\? Which ones are in the the entire benefit will be lost. And that is what happened. It worst shape, and you want to work �ith? was started wrongly. If it had been started with the provision Tukur: When we came in, firstancl foremost we asked our­ of the infrastructure , I could assure you-they talk about the selves, what do we do? We now ha�e to address ourselves to Asian "Tigers ," do you know why they succeeded? Because the productive sector, because therb is no way that you can most of their infrastructure was in place-power, water, ac­ help revive an economy unless you produce. So, we placed cess, communications. And therefore , a small man can start the emphasis on production. And we predicated that on the an outfit and still assure the manufacturer that he can supply. budget policy of giving 60% of ou I scarce foreign exchange to the manufacturing sector and ag?culture . That is the pro­ EIR: What plans does your ministry have for infrastructure ductive sector. Eighty percent of our people are employed in development in Nigeria, to help with industry and agri­ the agricultural sector. A small in rease in the agricultural culture? sector, in terms of production, meahs a big multiplier factor, �1 Tukur: That is now very important. My charge today is in terms of economy of scale, eve if you have a growth of to revitalize the ailing industries . To really complete the 1 %, meaning that 80% in our socie y is benefitting from that unfinished projects; they are lying all over the place. You 1 % growth . If agriculture grows a large amount of the raw need a huge investment-billions . And therefore , as far as material required by the industries they can be a source for the country is concerned, the economy is concerned, it is at agriculture . zero level . But the projects are maybe 95% completed; a few So we addressed agriculture , to Ipr oduce the raw material;

EIR July 29, 1994 Feature 37 A water project in Edo State . Says Mr. Tukur: "We rested our case on serious addressing these two sectors, agriculture and industry. And we are working flat-out to do this. All those concerns that have been closed, we are op ening them ."

we addressed the processing industries, to increase their ca­ like the World Bank and so on be able to understand. pacity . This means, in effect, that our exposure to hard cur­ It's not that they do not know; can see and they can also rency will be less; at least we can provide a certain amount visit, but they don't want us to get that littleamount so of food or the raw material that the industries require, and at that the bridgehead can be the same time provide more opportunities for employment, which can increase the purchasing power of the communities EIR: What kind of production ity would the steel plant themselves. We rested our case on this-seriously to address have when it is completed? these two sectors, agriculture and industry . And we are work­ Tukur: About 40 million tons. ing flat out to do this. All those concerns that have been And also the aluminum smelter. Everybody knows how closed, we are opening them, like paper mills . Since I've strategic aluminum products are; lmdI this can be completed. come in, I've gotten Jabba Paper Mill open; I've gotten some I can tell you , it is a good invest�ent by all standards. The of the sugar industries open; I've gotten cement companies international community knows about this; it is a viable proj ­ really working and we've increased the capacity utilization. ect; it can be completed; it can reduce the Nigerian export debt. EIR: What is the state of the steel industry in Nigeria? I know there were discussions many years ago about Nigeria EIR: At what stage of completiop is the aluminum plant? becoming a steel producer. There have been some investment Tukur: It's about 62 to 68% doneI . plans for an aluminum production plant. Since these are the heavy industries that are so important for an economy, can EIR: Are there any other simi large industrial projects you tell our readers where Nigeria is in production in these that you are working on in Nigeri1? JI areas? Tukur: I'm working on paper, hich is very strategic. I'm Tukur: For example, the Aj eokuta Steel Plant is about 98% working on the cement complexes which are also very strate­ completed. During your time in Nigeria, I hope you can get gic . We are working on the sugar plants. We need investment a chance to visit these complexes. Unfortunately, they were in these kinds of industries. built in such a way that you hardly can use them until the We chose these areas with the nderstanding [of the inter­ time of completion. This plant can be completed; but the national financial institutions]; it +as not done in isolation or remaining 2% means over 3 or 4 billion naira. It is not really in confrontation with the World ,Bank or IMF. Some were the 2%; it is something else that is required of us, but it is done, in fact, with the African Ddvelopment Bank, which is something we are really required to do. These institutions an outgrowth of the World Bank lanyway, in a way. It runs

38 Feature EIR July 29, 1994 tremendously by the World Bank decisions. But as you go He said to me: "Look, Bamanga, you know very well that along, here is a project, and you start paying before we unless your country is democratic, l we have no business to start producing, and automatically you default in interest deal with you," and so on and so forth. I said: "Yes, very payments, and because you cannot draw down to go ahead, good, you are our colonial masters. Let me ask you one single they know that you cannot grow, because you default; you question. You are dealing with Sau�i Arabia; you are dealing have 200 million to draw down; and you default on 10 mil­ with the Gulf-are they democrati�?" He said to me: "But lion, and they hold you ransom because of that. They cannot you have to protect your source of energy. America must say: Fine, now you are entitled to 200 million. Because you deal with Saudi Arabia; they must deal with the Gulf states, cannot finish; you can also see a good reason why you cannot regardless of whether they are democratic or not in the con­ finish, and therefore you cannot solve this 10 million. You cept and perception of the United S1Iates." cannot meet your obligations. And the project just stops. By So, [I told him] , why cannot yo� understand that ! know, the time you revive it, it becomes 300 million and your I appreciate whatever "democracy" means to you; it means exposure becomes 15-20 million a year. And your working to you what it means to you. Democracy maybe to me is a capital is not there. You cannot borrow. different thing; it may have different meanings to different people.I can see America supporting Algeria. Thisis democ­ EIR: Nigeria is strategically, politically, and economically racy; that's what they decided. I can see Russia, with Yeltsin a very important country for all of Africa, and also for West­ there; it was a parliament, they representedthe people.Well! ern Africa. You have the Economic Community of West So we understand, but sitting where we are sitting, please African States. Are there plans by this group, which Nigeria understand that we know why the shpe pinches. So when you is part of, for regional economic development, regional infra­ do that; when you recognize Yelts�n, stopping the Russian structure projects? parliament; when you tolerate Saqdi Arabia and the Gulf Tukur: We are part and parcel of the West African Econom­ states, regardless of elections, pleas¢ understand that in N ige­ ic Community. We also have many bilateral and multilateral ria we have a problem, a problem that we want to now have arrangements within this sub-region. It is Nigeria's wish and a peaceful, unitedcountry. We do IlIOtwant chaos; we do not prayer that within that sub-sector, we can increase coopera­ want blankets and biscuits because we are fighting: No, save tion and explore things that we can do to particular advantage that! Help us. Don't put sanctions., If you put sanctions on to all sides. us, who suffersmost? The people who you say you want to In many of our conferences, we emphasize that there is a support. lot that can be done, of importance and economic benefit. So leave us alone, by saying to us instead: "Okay, we We should look at a transportation system, even the genera­ understand; as long as you do not trampleon your people by tion and distribution system; this could be highly intensive, doing something that everyone can $ee, depriving them of all which you could do and reap the economy of scale, and at rights, imprisoning them." Nobody can underwrite what is the same time distribute more comprehensively and benefit going on in Rwanda. It's terrible! And this is what will hap­ far more than what we are doing at the moment. pen when you have people who are not educated-the level of education is very low. EIR: When independence came to Nigeria, like many of the We respect very much the system of the individual's right African countries, there was a positive spirit of development. to achieve, to be the best. Let us g() step by step, so that we With freedom and independence was going to be economic can appreciate, as we go along, the, beauty of education, the development, industrialization, after overthrowing the yoke beauty of unity, the beauty of free trade. of colonialism. That has slowed down, to say the least, in Africa, including in Nigeria. What do you think has hap­ EIR: Mr. LaRouche, who is the fOllndingeditor of EIR , has pened along the way to dampen that dream, and what do been campaigning now for nearly ;20 years for a new, just you think we can do now to revive that spirit of industrial economic order--one that would promote the development development for Africa again? of each sovereign country and the development of each indi­ Tukur: We have learned our lessons. But I think that what vidual, each citizen within that sovereign country. Do you is required is an understanding from the developed countries. think that Nigeria could support thesekinds of efforts? Now if we have your understanding, we can do that. I'll give Tukur: Yes, we believe that this is positive; we believe you a good example. You are talking about democracy. Let's really in this cultural background.We must appreciatesover­ look at this country; it is a military-controlled country. I'm eignty of nations. You startfrom individuals: Fingers are not sitting here, I'm a 100% democrat. I do not believe in military equal, you say fine; they all mov4!, but some are shorter, administration as an answer. I know that, because the best some are longer. So if we agree, we start with that. With way possible is for people themselves to decide their future; nations too. This kind of theory s�ys, allow them to jump, it is more natural. and continue increasingly higher as they jump, until a certain I was talking about this to one of my colleagues in Britain. level is reached.

EIR July 29, 1994 Feature 39 �TIillInternational

Jordan, Israel advanee peace throughdevel opment by Dean Andromidas

The current peace negotiations between Jordan and Israel ects outlined in the Gaza-Jeriqho agreements, primarily be­ have brought the question of peace through economic devel­ cause of the obstructionist tac�ics of the World Bank and its opment to the center of the Middle East peace process. In the supporters in the region, has been the biggest obstacle to the first directtalks between the two countries held on their own peace process. territory, which began on July 18 in the desert directly on the border between the two countries, Jordanian and Israeli Ten joint projects prop�sed diplomats and generals met in an air-conditioned tent not far An official Israeli governJllent spokesmen told the Ger­ from the Gulf of Aqaba. Two days later, Israeli Foreign man weekly newspaper Neue' Solidaritiit, "There are three Minister Shimon Peres became the first Israeli to fly into key factors currently under negotiation: first, security; sec­ Jordan in 46 years. At a press conference with Jordanian ond, border demarcation; and third, joint cooperation in the Prime Minister Abdul-Salamal-Majali and U.S. Secretary areas of water, energy, and �cology." He said that once of State Warren Christopher, Peres spoke of the economic normal relations can be established between the two coun­ possibilities that peace will bring, where "farmers replace tries, "the sky is the limit" as to!what can be done economical­ soldiers and greenhouses replace army barracks." ly. According to Israeli government sources and Energy and In contrast, the opponents of peace on both sides struck InfrastructureMinister Moshe �hahal, Israel has proposed no back with the massive bombing of a Jewish community cen­ fewer than 10 joint energy detelopment projects including: ter in Argentina, which left over 20 dead, and riots in the • The construction of canals between the Dead Sea and Gaza Strip. the Red Sea, as well as between the Dead Sea and Mediterra­ Contributing to the opening of direct negotiations be­ nean Sea. The project would bring seawater to the Dead Sea, tween Jordan and Israel was a diplomatic effort by the Clinton which is crucial for the continued exploitation of the sea for administration. According to King Hussein, the United the production of potash and other natural resources by both States promised to cancel nearly $1 billion of Jordan's for­ countries. In addition, an 8oo-megawatthydroelectric power eign debt. Christopher spent one week touring the region, plant could be constructed on ihe canal for power generation where he spoke with Israeli, Palestinian, Jordanian, and Syri­ and water desalination. an leaders in an effort to push the peace process forward. • The integration of the �lectrical power grids among While this breakthrough with Jordan is good news, in Jordan, Israel, and Egypt; order for it to be successfulit must be coupled with a renewed • The development of an integrated oil and gas pipeline drive for regional economic development projects, as origi­ network among Jordan, Israeli and Egypt; nally outlined by Foreign Minister Peres in the agreements • Construction of joint desalination projects utilizing with the Palestine Liberation Organization, and along the gas, oil, and solar energy sources; lines of Lyndon LaRouche's Oasis Plan for Middle East • Joint exploration and Idevelopment of natural re­ peace through economic development. The failure to imme­ sources, particularly oil, gas, and mineral resources; diately begin implementing the economic development proj- • Oil shale utilization for energy production, which

40 International ElK July 29, 1994 would enable joint development of the nearly 20 billion tons killing of Hezbollah leader Abbas Mousawi. of oil shale deposits in the region. In addition, the taking up of residence in Gaza by PLO Other projects under discussion include: Chairman Yasser Arafat has not gone unmarred. On July 17, • Joint development of the Eilat-Aqaba region on the a massive riot at the Eretz border crQssing between Israel and Gulf of Aqaba, including development of each countries' Jordan left two Palestinians dead Ltd over 100 wounded. port and airport facilities. (Problematically, much of this Palestinian police and Israeli soldiers were involved in is being discussed in the narrow and inadequate context of shootouts which left 25 Palestiniap police wounded. The developing tourism.) riots were the result of insane border-crossing procedures • A regional railroad from Istanbul to Cairo. Although which cause many hours in delays for Palestinians traveling at a very preliminary stage, Egypt has recently formally to their jobs in Israel. The procedurtis are said to be the result agreed to participate in the construction of a railroad from of pressures by opponents of the Peace accords within the Cairo, through the Gaza Strip, to Tel Aviv. military and security establishment. • Construction of a road network linking Israel, the Pal­ Within a day of the riot, Hamas,ian Islamic fundamental­ estinian territories, and Jordan, which would establish links ist group which opposes the peace accord, took responsibility between Jordan and the Mediterranean ports . for killing an Israeli soldier in Gaza. Hamas is also accused Although nuclear energy has not been part of the negotia­ of provocations during the Eretz riots. The provocationdrew tions, the LaRouche Oasis Plan, which envisions the con­ a quick response from Nabil Shaath� the Palestinian minister struction of nuclear power plants along such a canal, has been in charge of planning and internatibnal cooperation for the a topic of informal discussion among leading participants in Palestinian National Authority. "We'renow in a peace pro­ the peace process. cess in Gaza and Jericho and no dne is permitted to carry While Jordan's King Hussein and Israeli Prime Minister out military operations, because th�se operations violate the Yitzhak Rabin are to hold their first public meeting on July agreement and thus will hit at the! peace process," Shaath 25 in Washington, a formal peace treaty is not expected to be said. He nonetheless hit at the Isn¢li decisions to close the signed. King Hussein has said that he would not sign a formal Gaza Strip: "Israel has no right to close the Gaza Stripevery peace treaty unless he received approval from Syria, which time a problem arises, and this violates the agreement." has so far refused to engage in direct negotiations with Israel. In the past weeks, the radical stttlers movement has be­ Nonetheless, Jordan and Israel have been holding informal come more and more extreme, as itibecomes more and more as well as formal negotiations for over a year and are said to isolated. While holding poorly .ttended demonstrations have overcome most of the main obstacles that have prevent­ throughout the country, their most Serious actions have been ed the signing of a peace treaty. These obstacles include a an occupation of government-ow�d houses in Hebron by border dispute in the Jordan Valley, the allocation of water radical settlers based in Kyrat Artila, the settlement where from the Yarmuk and Jordan rivers, and the question of Baruch Goldstein, of Hebron massacre infamy, came from. Palestinian refugees who have been living in refugee camps Their activities are shifting rapidlly from the settlements for decades. throughout the territories, to JerusiaIem, where demonstra­ tions are being held at the Dome oflthe Rockmosq ue, which Rejectionists on both sides radical right-wing Jewish groups !refer to as the ''Temple The catastrophic bombing of the Jewish community cen­ Mount," in reference to the site of the ancient second temple. ter in Buenos Aires, Argentina was a dramatic confirmation This is aimed at intersecting the mo�t sensitive political issue that the enemies of peace are active. In support of a statement between Israelis and Palestinians, ithe status of Jerusalem. by Peres charging that the bombing was an attack on the Israel claims Jerusalem as its "undivided and eternal capital," peace accords, Lyndon LaRouche, Jr. , candidate for the U.S. while Palestinians claim Arab East! Jerusalem for theircapi­ Democratic Party presidential nomination, declared in a tal. Its final status must be resolved within five years of �e statement, "I wholeheartedly share the evaluation and senti­ signing of the Gaza-Jericho accordl ment of Israeli Foreign Minister Shimon Peres that the car­ A confrontation is building up over the Dome of the bombing of the Argentine Israelite Mutual Association in Rock. This mosque is Islam's third holiest site, after Mecca Buenos Aires is an attack on the Mideast peace accords." and Medina: The mosque stands dver the rock from which Although Israel and security experts have pointed the the Prophet Mohammed is said to .ave begun his journey to fingerat Iran and the Iranian-backed Hezbollah for the bomb­ heaven. It is feared that the ''TeI1llple Mount" crazies will ing, there has been no confirmation. It is believed that Hez­ attempt a provocation against the site in an effort to create a bollah carried out the bombing in retaliation for recent Israeli regional crisis, if not a new war.Tllese extremistsare known military strikes in southern Lebanon which killed over 20 to enjoy heavy funding from North America, Europe, and Hezbollah guerrillas. In February 1992, the Israeli embassy from circles within Israel associated with Ariel Sharon, archi­ 1982 in Buenos Aires was the target of a massive carbomb that left tect of the disastrous Leban$' warand minister in the over 20 dead, which was said to be in retaliation for the previous Likud government.

EIR July 29, 1994 International 41 Narco-terrorists plan explosidn in Mexico as election nears by Cynthia R. Rush and Carlos Mendez

When the Zapatista National Liberation Anny (EZLN) at­ A coordinated offensive J tacked several municipalities in the southeasternstate of Chi­ Mexico's narco-terrorist apparatus intends to use the apas in Mexico on Jan. 1, 1994, EIR warnedthat this narco­ weeks remaining before Aug. 211 to plan for post-election terrorist offensive constituted a grave national security threat violence, with obvious support 1Irom outside the country as not only to Mexico, but to the United States as well. Today, well. On July 22-24, the Sao Paulo Forum, the umbrella that warningis even more valid, as the EZLN and its collabo­ group of Ibero-America's narcol-terrorist parties set up by rators in the Revolutionary Democratic Party (PRD), as well Fidel Castro and the Cuban Communist Party in 1990, held a as among the rest of the pro-terrorist left, threaten to use the continent-wide conference of center-left mayors in Durango, Aug. 21 presidential election as the trigger for nationwide Mexico to discuss "municipal autonomy." The mayor of Du- I insurgency modeled on the Chiapas events. Official Wash­ rango belongs to the pro-Cardenas (and pro-terrorist) wing ington, which is obsessed with whether to invade Haiti, of the Mexican Workers Party, • and all of Mexico's other would do well to refocus its attention on the far more danger­ pro-EZLN leftist parties were sqheduled to be represented. ous Mexican situation. Cardenas himself was expected t<>be the central figure at the In June of this year the EZLN escalated its offensive conference. against the Mexican government. It firstre jected the govern­ Following this, on Aug. 6-9; the EZLN will convene a ment's peace proposals and then presented President Carlos National Democratic ConventiOll which, under the guise of Salinas de Gortari with a list of unacceptable demands: that launching a "national dialogue Qf progressive forces," will Salinas resign and a transitional government be set up; that further plan the dismemberment df Mexico's national institu­ the EZLN be granted belligerent status; and that a national tions. In attendance will be eveIty extremist element in the constituent assembly be held to rewrite both the national and country, from radical gays to communist splinter groups, to the Chiapas state constitutions. EZLN leader "Sub�Com­ the Marxist Theology of Liberation and its "indigenous" and mander Marcos" warned that rejection of these demands "peasant" offshoots. would lead to a long and bloody civil war. Cuauhtemoc Cardenas told La lomada that the EZLN As if in unison, Marcos and PRD presidential candidate convention "is important becauSe it shows that those who Cuauhtemoc Carctenas also threatened that unless the Aug. took up arms, who found that path the only means by which 21 elections were clean, the population would "rise up" to make themselves heard, todayl say that the solution to the against the state. What they mean by "clean," however, is country's problems will be found in a clean and transparent that the ruling Revolutionary Institutional Party (PRI) must election. This is an important pbsition, and I would hope lose, and hand power over to the opposition; for them, any that the convention, regardless of who participates . . . con­ other result would constitute irrevocable proof of fraud, and tributes to the holding of a clean and credible election." a pretext for unleashing armed conflict. t Cardenas is already telling supporters at electoral rallies Financing subversion that the governmentis preparing to steal the vote just as it did It's no surprise that on July t 1, the EZLN officially in­ in 1988, but that this time things "will be different." At a vited schismatic bishop Samuel! Ruiz of San Crist6bal de rally on July 6, he said that "we are the force with the best las Casas in Chiapas to participate in its convention and to capacity to mobilize ....What comes or doesn't come, continue to serve as "mediator" with the Salinas government. depends on what happens on Aug. 21." According to the Ruiz, a leader of the Theology of Liberation faction of the July 15 Christian Science Monitor, the PRD has rejected an Catholic Church, has for years usixl his base in San Crist6bal official audit of electoral lists, which found 98% accuracy, to organize insurgency with a network of catechists and for­ saying instead that the lists have a 20% corruption factor-a eign priests, and is viewed as tlle chief orchestrator of the claim which can obviously be used to discount any electoral Jan. 1 EZLN assault. result on Aug. 21. On July 11, Gen. Ram6n Mota Sanchez (ret.), president

42 International EIR July 29, 1994 of the congressional defense commission of Mexico's Cham­ Pope's voice is heard ber of Deputies, identified Ruiz as the recipient of foreign Pope John Paul II has also placed considerable pressure "humanitarian" financingwhich was then channeled into sub­ on Samuel Ruiz, and made known that he views Ruiz's versive activities. Mota said that he possesses evidence that activities less than favorably. During a visit to Rome at the the EZLN received financingfrom the Catholic organizations beginning of July-Mexican bishops make such a trip every Adveniat and Misereor, as well as from the Spanish Basque five years-Ruiz met with the pontiffand told the press that narco-terrorist group ETA. Mota said that, according to intel­ the pope was pleased with his work in Chiapas and his ligence reports , there are between 100 and 150 members of efforts to mediate between the EZLN and the government. ETA currently in Mexico. Reality proved otherwise. Ruiz failed to report that the pope Both Mota and fellow PRI congressman Cuauhtemoc only spoke with him for five minutes, compared to a meeting L6pez, who respresents San Cristobal in Chiapas, charged held with his colleagues which lasted for over 30 minutes. that the German charity Adveniat, with an annual budget Moreover, in a July 5 address! to the group of Mexican larger than that of Unesco, has funneled money to the EZLN bishops, the pope chastised Ruiz, although without naming through the Bartolome de las Casas Human Rights Center him directly. "Today more than e�er, Mexico needs peace in Chiapas, run by Samuel Ruiz. "These funds have not with justice, reconciliation, and rejection of every tempta­ been used to help the Indians, but have in large part been tion of violence," he said. "Arm¢d violence is not only a channeled into training, maintaining, and purchasing equip­ mistaken road, but the greatest oIf evils, as the history of ment for the guerrillas," according to press coverage of the recent conflicts sadly demonstrates ." charges. Speaking directly to the Mexican Catholic Church, Pope General Mota's call for an audit of the finances of the John Paul II stated that "while it is legitimate and sometimes San Cristobal diocese was called "pertinent" by Father Luis even necessary for bishops to illuminate all areas of society's Fletes Santana, the vicar of the Mexico City Catholic archdi­ and man's life with the light of; the Gospels, we cannot ocese, who insisted that Ruiz doesn't act in the name of forget, as the Vatican II Council Iteaches, that the mission all Mexican bishops. The general's accusations were also conferred on the church by Christ is not of a political, echoed by Javier Lopez Barragan, bishop of Zacatecas, who economic, or social order, but rather religious and moral. charged that several ecumenical Catholic groups in Europe, Actions or words which are only an expression or ideological particularly in Holland, were financing the Chiapas guerril­ promotion in no way contribute to communion or reconcilia­ las. When asked whether it were possible that Ruiz's diocese tion." The pope called on Mexico's bishops to show "pru­ could have been financing the EZLN, Bishop Lopez Barra­ dence" in their activities-an undisguised allusion to Ruiz. gan, president of the church's Doctrine of the Faith Commis­ "This is a difficulthour, but also a'hopeful one for Mexico," sion, replied, "In this life, anything is possible." the pontiffsaid . "This is a time of profoundnational reconcil­ Ruiz and his defenders responded to these charges by iation, especially among the beloved communities of demanding proof and accusing Mota of slandering him. The Chiapas." government's new peace commissioner, Jorge Madrazo, Ruiz has disregarded the pope's message, however. On who replaced Manuel Camacho Solis, urged Mota to "recon­ July 15, he shared a podium with the EZLN's "Marcos" sider" his charges, which he labeled "adventurist." Madrazo at a seminar on "democracy" held at Mexico's National also stated that "there is nothing to lead us to believe that Autonomous University. Althougb Marcos was speakingby Bishop Samuel Ruiz has participated in actions to arm the video, the two delivered virtually the identical message. EZLN ." Ruiz said that "the armed upriSiing in Chiapas does not But General Mota calmly responded, "I don't have to free the country from social eruption, given the history of give names of organizations. What I said is more than suffi­ injustice in Mexico." He said that this is already manifest cient for all Mexicans to concernourselves with the problem in the growing turbulence in the states of Jalisco, Michoacan, [EZLN's funding] and to try to reach the truth. I have a and Guerrero--three states named by the Salinas govern­ great deal of information, and it is neither false nor slander­ ment as having been penetrated by "armed groups"-but ous." He stressed the importance of "clearing up this matter, that in Chiapas "the topsoil is very thin and less resilient especially in light of the call for the National Democratic because of extreme poverty." Convention, which clearly identifies the EZLN's purpose "Marcos" stated that the EZLN had no desire to impose of destabilizing the country." candidates in the upcoming Aug. 21 elections, but rather On July 12, the president of the lower house's justice "aspires to be an element of warnilngto avoid the imposition commission, Juan Jose Castillo Mota, warnedthat the House of the ruling party and of electorail fraud." According to the intends to fully investigate "the orchestrators of the armed July 18 New York Times, Marcos1 recently told the daily La conflict in Chiapas ...for which it demands that the San Jornada that "there are armed grdups in various parts of the Cristobal diocese explain how it has spent money received country" and that violence would erupt if there is not enough from abroad ." progress in creating a "democratic opening" in Mexico.

EIR July 29, 1994 International 43 to leave on the Moon a limited number of specificallyauthor­ ized items."

The cross that To Cardinal Wojtyla .1 Now starts the second and most extraordinary part of went to the Moon the story. The big Russian cross went to a very special person who had converted to Catholicism, the first to do so by Claudio Celani from the communist world: Jose,b Stalin's daughter Svetla­ na. As for the little cross received from Aldrin, Father Garbolino decided to give it to af person and a nation whom Last month in Rome, we met Father Giovanni Garbolino, a he viewed as having a special mil>sion in Christianity: Karol Roman Catholic missionary who has lived for many years Wojtyla, then archbishop of CI1lcow, and Poland. During in the United States. Father Garbolino came, among other his missionary work, firstin Braztl, then in the United States, religious representatives, to a conference sponsored by EIR and finally in Poland, Garbolino developed a special love on the theme of stopping the U.N. ' s depopulation conference for Poland and "the very singullU" veneration, both private in Cairo in September. He gave us original documentation of and public, of the Polish peoplejfor the Holy Cross," as he a very special event, which we thought useful to offer to EIR explained in a letter on Sept. l5, 1974, after he heard a readers on the anniversary of the firstMoon landing. homily by Wojtyla and decided to donate the little reliquia It is the story of a little cross that went to the Moon, came to him. back, and was given to a cardinal who later became pope. Four years later, in October : 1978, dramatic events led "Honest to God, I do not believe in sorcery, nor in witches, to two conclaves in one year, a{ter the death of Pope Paul talismans, or mascots," says Father Garbolino, "but ! do have VI and of his successor, John Pltul I, only 33 days after his regard and even reverence for signs and symbols." And what election. On Oct. 12, before tlte opening of the second more powerful symbol than "a cross reminding many people conclave, in which Karol Wojtyi}a was to be elected pope, of a God who chose to die on a cross with arms outstretched Father Garbolino wrote the folloWing letter to Avvenire, the to signify His lasting embrace of mankind, whom He so daily of the Italian Bishops Conference: "Why not a Polish strongly wanted to be close to the love of the one Father in Pope? ...The Polish nation, the Polish people demonstrate heaven?" today a compactness, a vitality .· ..which is extraordinary, Originally, the cross was supposed to be lefton the Moon, considering the difficultiescreated by the materialist regime. and it was a big one. It was given to Father Garbolino by a . . . Polish culture has been, and is still now, an excellent Russian student whom he met during his missionary travels 'model' of cross-breeding between Latin and Slavic civiliza­ in 1959, in exchange for one of the many little crosses "bless­ tion (language, costumes, traditi<)ns, etc.). That such a mod­ ed by the pope of Rome," which Father Garbolino carried el of ethnic-spiritual conjugation, could extend and multiply with him. The time came, Garbolino says, when he decided itself . . . is this not the maximum. imperative that the dying to give up that precious object. It was when the Apollo 11 millennium leaves to Humanity� so that she does not die mission was ready to start and bring the first man to the with it, but could finally live inl peace for the centuries to Moon. The idea was "first,to enhance the technical prospect come?" of success of this enterprise (in view of the beneficialimpact Garbolino's letter was publi�hed only on Oct. 18, after it has on the human mind); second, because of the very the election of John Paul II, when the newspaper editors connotation of a 'plus' that the cross has in the area of mathe­ recognized its "singularity." matics, as well as scientificthought ." It remains as a prophetic cr�ning of Garbolino's mis­ Garbolino sent the package containing the Russian cruci­ sionary enthusiasm, closing a voyage which connects faith fix to Col. Edwin E. Aldrin, accompanied by a letter and and science, not only symbolicalJiy. The little cross that went followed by a telegram: "Do not forget the meaningful little to the Moon is today kept, at the desire of Karol Wojtyla, cross." Aldrin not only carried that cross with him, but also in the diocesan museum of CraQOw. another little cross, which he sent Garbolino on Oct. I, 1969, Today, 25 years later, Father Garbolino expresses the a few weeks after his return to the Earth. Accompanying the wish �at EIR and the LaRouche movement be privileged little cross, which had the words "Apollo 11" and "Edwin to publish his story . We feel authorized also to report that Aldrin, Jr." impressed upon it, was a short message: "This Father Garbolino holds the ide� he heard in a speech by crucifixwas flownon board the Apollo 11 spacecraft 'Eagle' Helga Zepp-LaRouche at the Rome EIR conference (see which landed on the Moon July 20, 1969." In another letter, EIR , July 15, 1994, p. 53), as m�riting the broadest support sent two days earlier, Aldrin had written: "I am returning among the population and in tlte Italian Parliament. We you the Russian crucifix . . . which was flown to the lunar hope that his wishes will be as prophetic as they have been surface on July 20, 1969. Regretfully, we were only able in the past.

44 International EIR July 29, 1994 sures imposed by World Bank Pre&ident Robert McNamara, Brazilian Ambassador in Washington Araujo Castro de­ clared: "With 95 million inhabitants, Brazil needs a popula­ tion growth rate in accordance with a complete use of its natural resources and effective occupation of its own territo­ yields to the ry . The attempt to approach this problem from a statistical BraZil standpoint is destined to total fail�re." malthusianlobby Such a foreign policy was p�leled in national eco­ nomic planning. In the Second National Development Plan produced under the 1975 government of Gen. Ernesto by Silvia Palacios Geisel, this policy perspective was ratified. It stated: "Brazil still finds itself an underpopulated country, in relation to Brazil is one of the Ibero-American countries which has the availability of land and othel1 natural resources. As a unconditionally adhered to the malthusian agenda being pre­ sovereign nation, we have the right to adopt a position sented at the United Nations Conference on Population and coherent with this fact of being yet an underpopulatedcoun­ Development, scheduled to be held in Cairo in September. try , that is, of allowing our population to continue to grow The country has thus broken with a foreign policy dating at reasonable rates to fulfill its deyelopment and economic back at least to the 1970s, when Brazil favored population potential. " growth, in defiance of the zero-growth thesis of the Club The current turnaround is in response to the efforts of of Rome and in resistance to foreign interference in matters the bureaucracy at the Foreign Affairs Ministry (Itamaraty) considered the exclusive domain of Brazilian sovereignty. to not contradict the interests of the one-worldist oligarchy. Brazil's new position regarding the upcoming Cairo These bureaucrats believe that it is by this route that they meeting has stirred expectations, given that, in 1991, conclu­ can gain the sympathy of U.N. Secretary General Boutros sive evidence came to light of former U.S. Secretary of Boutros-Ghali, thereby facilitating Brazil's entrance into an State Henry Kissinger's sponsorship of a secret population expanded U.N. Security Council. The fact that such a policy policy for Brazil and other Third World countries. National change implies adherence to an immoral plan of action which Security Study Memorandum 200 (NSSM-200), prepared involves eliminating its own pop�lation doesn't appear to by Kissinger's National Security Council in 1974, identified bother ltamaraty. Brazil as one of 13 countries targeted for drastic reduction of its rate of population growth. A 'culture' of mass sterilizations The surreptitious application of this imperial policy led Despite the fact that the authors of the Brazilian docu­ to the illegal sterilization of more than 20 million women ment for Cairo allege that its content is the result of extensive of childbearing age, according to Health Minister Alceni consultations with all interested parties, the truth is that the Guerra in 1991. Guerra charged that this abrupt decline in document is a fraud, the typical aCQumulation of sociological fertility robbed the country of 30 million inhabitants, which sophisms for promoting abortioOi and mass sterilizations, would have given the country a population of 200 million which are uncritically characterized simply as "reality." by the year 2000. As EIR had warnedin the period leading up to the 1992 The Brazilian position today, as revealed in the docu­ U.N. Conference on Environmen� and Development (Eco- ments and deliberations that precede the Cairo meeting, 92), the concept of sustainable development-the unscien­ represents a surrender to malthusianism and, worse, throws tific notion that development has to be restricted in orderto a smokescreen over the genocide already committed against protect the enviroOiffient and the abused concept of non­ the Brazilian population. renewable resources-was but the entrance way to genocide A very different standard prevailed in 1974, during the against populations considered "undesirable" by malthusian World Population Conference held in Bucharest. The Brazil­ racists. It is this same concept of sustainable development ian representative to that conference, Amb. Miguel Ozorio which shapes the Brazilian positi�n today. Almeida, declared that Brazil would not permit restrictions Brazil's Cairo document is a product of a series of semi­ on its population growth: "Alarm over population growth nars and meetings financed by the U.N. Population Fund, as such, unconnected to the relationship between population which were addressed by some of the more infamous "de­ and national resources, is inadequate and unacceptable. populators." That document admits that the abruptcollapse Countries with morethan 100, 200, and even 300inhabitants of fertility levels in Brazil is due to methods of population per square kilometer exempt themselves from responsibility, control such as forced sterilization, and cynically adds: "The while countries with less than 20 inhabitants per square fertility levels fell drastically andl rapidly, albeit by means kilometer are condemned for their population policy." of distressing procedures, with a predominance of radical In February 1972, in response to the malthusian pres- methods such as sterilization and �bortion carried out under

EIR July 29, 1994 International 45 precarious conditions; there is still a long way to go not the lead in pushing through a bill which will permit the only in the sense of expanding and meeting the demand for Brazilian delegation to arrive in Cairo able to say that steril­ family planning, but also of conquests in terms of women's ization is legal in Brazil. PT's presidential candidate is Luis right to have access to advanced reproductive health meth­ Inacio "Lula" da Silva, currentlyfavored to win the upcom­ ods, that is, to the whole range of modem contraceptive ing presidential election. methods." In a surprising vote June 22, the lower house of Con­ Unable to hide the fact that the sterilizations were carried gress, the Chamber of Deputies, approved a bill for the out with stunning effectiveness-precisely as Kissinger's first time regulating sterilizatiohs in Brazil, and authorizing policy demanded-the document boasts that it was prepared public and private hospitals to perform them. The bill was under the collaboration of a group of demographers and introduced by PT Deputy Eduardo Jorge. The bill is now other "specialists" who did not treat the problem as a foreign before the Senate for ratification. imposition but rather as a "culture" unto itself: "The majority This is not the first time tbe PT has collaborated with of the sterilized women belong to families in which someone Kissinger and his friends to promote sterilization. When was already sterilized, or who had recommendations of fami­ EIR , in 1991, exposed Kissinger's NSSM-200 directive, ly members and friends, and are ready to recommend to other and it became known that upwards of 20 million Brazilian women the so-called culture of sterilizations established by women had been sterilized, it was feminists from the PT [demographer Elsa] Berquo." such as Deputy Benedita da Silva who led the fight in the The current Brazilian position praises the actions of pri­ Congress to neutralize congressional efforts to explicitly vate entities which illegally carried out brutal methods of repudiate Kissinger's sterilization policy. She headed a Par­ birth control, and includes the activities of these genocidal liamentary Investigatory Commission which, while it cen­ entities within the officialdefinition of Brazilian demograph­ sured the foreign agencies engaged in birth control pro­ ic policy. grams, nonetheless concluded Iby recommending a law to The most oft-praised agency is the Family Welfare Soci­ regulate sterilizations. ety (Benfam), the Brazilian branch of the International Planned Parenthood Federation (IPPF), which was directly Diplomacy and perversity responsible for the Brazilian mass sterilizations, especially The immorality of Itamaraty's diplomacy reflects a New in the impoverished northeast. It is no accident that NSSM- Age agenda whose intellectal a4thor is the Frankfurt School. 200 mentioned IPPF, together with the U.N. Population In the document prepared for tairo, homosexuality is pre­ Fund, as the ideal vehicles for carrying out its depopulation sented as not only a legitimate expression of minority groups, policy. but as a positive model for sQciety, a point also heartily Apart from praising the activities of agencies which endorsed by the PT in its program, which advocates legaliz­ make up the creme de La creme of the international malthu­ ing homosexual marriages. sian lobby, such as the Rockefeller Foundation, the Popula­ The party's programs states� "On the positive side, there tion Council, and the Association for Surgical Contracep­ has occurred simultaneously an increase in representative tion, all of which have a presence in Brazil dating back years, politics, with greater participation of diverse sectors of orga­ the Cairo document welcomes new such non-governmental nized civil society, expressed as the increase in the number organizations, in particular the MacArthur Foundation, of non-governmental organizations (NGOs) .. ..In this con­ which heavily finances population control programs. This text, the activities of feminist, black, and homosexual groups foundation has become infamous in Ibero-America as the have gained strength." funder of ecologist movements and for its zeal in promoting Nor is this the firsttime that homosexuality and pedophil­ government measures to reduce the role of the continent's ia have come up in Itamaraty's new values of diplomacy. In armed forces. November 1993, journalistRubem de Azevedo, in an article The document that sums up the Brazilian position argues in Correia Brasiliense, charged, "The U.S. and 21 other that these malthusian policies should now be adopted offi­ countries, among those Brazil, backed granting consultative cially, and no longer sanctioned secretly. For example: "Ef­ status in the U.N.'s Economi¢ and Social Council to the forts to seek a consensus around the normalization of femi­ International Lesbian and Gay Association (lLGA)." He nine sterilization continues to gather supporters among pointed out that the ILGA "is composed of the North Ameri­ congressmen and feminists. In recent years, Brazil has felt can Man Boy Love Asociatioo. (Nambla), which defends a renewed impulse in the direction of defending reproductive homosexual relations of adults with boys .. ..The objective health and the rights derived from that." of Nambla is to grant pedophiles the same rights now granted to homosexuals." Workers Party: malthusian shock troops The "anti-authoritarian" doctrines of the Frankfurt The most loyal ally ofItamaraty in the National Congress School appear to have crystallizbd in a new era at Itamaraty, is the neo-communist Workers Party (PT), which has taken characterizable as androgenous diplomacy.

46 International EIR July 29, 1994 Australia Dossier by BruceJacobs

Kooks push genocide in Cairo owned bookshops and cinemas. Like Australia's extensive population control apparatus was "made Dr. Siedlecky, Rich also played a key role in the United Nations apparatus. in Britain," and is based on racial purity doctrines. According to h�r obituary in the Aus­ tralian Jewish News, Rich "played a prominent role on the executive of the League of Natipns Union." A key organization energizing the Dr. Siedlecky, a board member of the Bolstered by inputs of money and Australian government's mad push FPAA, is also a member of the United personnel train�d in Britain, including for the adoption of radical population Nations Population Fund (UNFPA) several of Bes�t' s disciples, the birth control doctrines at the September and the co-author of Populate and control lobby ie Australia grew rapid­ U.N. conference in Cairo, is the Fam­ Perish: Australian Women's Fight/or ly. In 1929, the Racial Hygiene Asso­ ily Planning Association of Australia. Birth Control. ciation (RHA) sponsored a conference The FPAA has provided key person­ In the latter, Siedlecky traces the on "eugenics," and the 1931-32 RHA nel and much of the ideology behind history of Australia's birth control lob­ annual report rhade clear the associa­ the extensive "family planning," by to Besant, who wrote and published tion's outlook: �'The mental defectives "birth control," and "population con­ in the late 1870s one of the first birth are a great bur�en to society causing trol" lobby here . The FPAA will be control tracts, The Law o/ Population. gloom, fear anp inferiority complex­ part of the Australian government's Wrote Besant: "Those who oppose es. Our societf takes a very definite formal delegation in Cairo and is the birth control are either incapable of stand on that point and openly advo­ government's chief recipient of birth arithmetic else in favour of war, pesti- cates sterilization of the unfit. . . . control funds which, in the 1993-94 1ence and famine as permanent fea­ Our society is definitely pledged along budget, will be $30 million. turesofhuman life."TheLawo/Popu­ lines of human, biological and eu­ A brief look at the history of the lation was republished in Australia genic ideals. A good or bad human FP AA demonstrates it to have been and played a formative role in the Aus­ race does not just happen, it is bred organized in Britain around the fanati­ tralian population control lobby . the same as sheep etc. can be bred." cally anti-Christian "racial purity" The first institution to formally A key early supporter ofthe RHA doctrines of the leader of the Theoso­ embody these ideas in Australia was was Dr. NOI1lfian Haire, Honorary phy cult, Annie Besant (1847- 1943). "The Race Improvement Society," Medical Offic�r of the Malthusian Theosophy (literally "god-knowl­ formed in Sydney in 1926, and re­ League in LoJ¥lon. Melbourne's first edge") was founded in 1875 by the named the "Racial Hygiene Associa­ birth control j;:linic was opened in Russian Madame Blavatsky and taken tion of New South Wales." One of the 1934, sponsored by the Eugenics So­ over after her death by the Briton Be­ key founders of this outfit was Ruby ciety of Australia, two of whose initia­ santo A weird mixture of freemasonry Rich (1880- 1980). According to the tors were Prof. Wilfred Agar, who and Eastern religions, the cult teaches pamphlet "Ruby Rich: Family Plan­ had come from England in 1919, and that there is an ancient secret wisdom ning Pioneer 1888-1988," Rich be­ Dr. Victor Wallace, who had worked which can only be communicated to came a feminist during finishing in England with birth control fanatic the chosen few by the "Ascended school in England and "was influ­ Dr. Marie Stopes. Masters," including Jesus Christ, who enced by the Theosophist beliefs of During th� 1950s, the RHA be­ live in Tibet. The secret knowledge the British birth control campaigner, came an associate member of the new­ is preserved among a special race of Annie Besant." ly formed International Planned Par­ men, whose "racial purity" is all-im­ Rich was adopted into the inner enthood Federation (IPPF), which portant. elite of Besant's cult, becoming "a was firstestabljshed in Bombay, India One of the FPAA's chief propa­ member of this secret spiritual soci­ in 1952 with aq initial grant of £ 5,000 gandists is Dr. Stephana Siedlecky, ety's Co-Masons group." Back in from the British Foundation for Race who in the mid- 1970s was appointed Australia, the Theosophists provided Betterment, �nd whose rent-free as the federal government's first ad­ the logistical and financial support to premises were �rovided by the Eugen­ viser in Family Planning for the Com­ help launch the new movement, ics Society. At the behest of the IPPF, monwealth Department of Health, a through the Theosophy-owned Syd­ the RHA chan$ed its n�e tothe Fam­ position she maintained until 1986. ney radio station 2GB, and cult- ily Planning Association of Australia.

EIR July 29 , 1994 International 47 InternationalIntelligence

Avenue des Champs-Elysees but the French "Details" $uch as securing the water sup­ RussianNa vy still authorities decided against it four months ply for the Croatian population of Biograd, wants Kaliningrad ago, official sources said." a city in the "blue zones" that was cut off The Independent said that this was sup­ several weeks ago throughSerbian sabotage posedto bethe year of celebration of Anglo­ The status of Kaliningrad, site of the strate­ of the water pipeline that used to supply the French relations, with the 90th anniversary U.N. gic Russian naval base in Lithuania, is on region, are not envisioned by the in its of the Anglo-French Entente Cordiale and the Russian Security Council's agenda, re­ agenda for talks with the Croatian govern­ so on, but this has all changed into "bitter­ ported the news agency Interfax on July 14. ment, Jurdana wrote. ness." The French are angered at British Russia considers the base to bean "enclave" opposition to French policy in Rwanda, that it owns. The Council is said to be con­ while the British feel their role in D-Day cernedabout guaranteeing Russian military celebrations was relegatedto a much lower Prosecutors say mafia shipments to the base through Lithuania, place in French minds than the American regional social problems, and the strength bombinlhaimed at pope role: "After Normandy, the Queen is said of Russian forces in the region. to have complained privatelythat President On July 12, Vyacheslav Kostikov, Rus­ Rome prosecdtor Vincenzo Coiro, who has Fran,

48 International EIR July 29, 1994 i Brifdly

• THE ARGENTINE daily Clarin on July 14 headlined its coverage of President Bill Clinton's visit to Ger­ many, "Is the Special Relationship vility" to the United States. Le Monde asked him what role can be with Englanp Breaking?" Goldsmith said that Franco-British ties played by ex-guerrilla Antonio Navarro, should be strengthened, to deal with the new who transformed his M -19 movement into a • THE CARICOM, the 14-mem­ situation. Not only is the U.S.-British spe­ legal political party, but only obtained 3.8% ber association of the English-speak­ cial relationship in trouble, but, he claimed, of the vote in the presidential election. ing Caribbeannatio ns, issued a state­ German Chancellor Helmut Kohl and Samper responded: "I will give him an offi­ ment supporting former Venezuelan French President Franc;ois Mitterrand are cial function, linked to the pacification of President Carlos Andres Perez, who going their separate ways, as the "love affair the country. " is now in jail for corruption. The at the heart of Europe" begins to cool off. Tape-recorded telephone conversations statement ptaised his alleged "noble Explaining this latter process, Goldsmith made public after Samper's election re­ efforts" for peace, democracy, and spoke derisively of Germany: "Germany vealed that the Cali cocaine cartel paid sev­ economic development; it was pub­ needed to go out with a respectable girl on eral million dollars to get Samper elected lished as an advertisement in all the his arm. Afterthe war, France was a respect­ (see EIR's cover story of July 15). Asked Caracas papprson July 14, in an obvi­ able girl. Now that Germany has become about this by Le Monde, Samper replied by ous interverltion against Venezuelan stronger and more powerful and the respect­ denying the authenticity of the tapes, and PresidentRafael Caldera. able girl has become a little older, it's no blaming his electoral opponent,Andres Pas­ longer quite as necessary. " trana: "No sum was paid by the Cali cartel. • A. SOUZHENITSYN is being This argument was advanced by my unfortu­ promoted for the Russian presidency nate adversary, Andres Pastrana. This is the by a growiGg lobby of literary and first time in the history of the country that a political figbres, the German daily Colombia's Samper loser thereby rejects his defeat. That will Frankfurter Allgemeine reported on not prevent me from calmly assuming my meets French leaders July 15. An)ong the novelist's back­ functions on Aug. 7." ers are Yeg(>r Vinogradov, editor in Emesto Samper Pizano, the President-elect chief of Konrinent, and poetYevgeny of Colombia and a leading advocate of drug Yevtushenko. Spokesmen for the legalization, was in Paris for a "private vis­ Successor named to Democratic Russia movement said at it" during the Bastille Day celebrations of a press conftrence that they would be July 14, and viewed the commemorations EU's Jacques Delors willing to nominate Solzhenitsyn as along the Champs-Elysees with other world their candidate. leaders. He is scheduled to take office on Luxembourg's Prime Minister Jacques Aug. 7. Samper was received on July 13 Santer was named president of the European • URUGUAYAN President Luis by President Franc;ois Mitterrand and Prime Commission on'July 15, replacing Jacques Alberto Lacalle announced backing Minister Eduard Balladur. Delors of France , who has pushed a program for a "common position" against In an interview with the daily Le Monde of major infrastructure projects through the abortion at the U.N.'s International on July 16, Samper boasted that he will European Union (EU). The previous candi­ Conference I on Population and De­ bring narco-terrorist guerrilla leaders into date, Belgian PrimeMinister Jean-Luc De­ velopment, I scheduled for Cairo, local and regional power structures. "If ne­ haene, was defeated by a British veto. Egypt in September. Lacalle said he gotiation is useful," he said, "I will resume In France, the business daily Les Echos fully supported the proposal made by it. But the guerrillas have used the talks, and the leftist Liberationboth describeSant­ Argentine President Carlos Menem especially during the last years , to tighten er as "the lowest commondenominator ," as to ali lbero-Americanheads-of -state, their grip. I believe that, in any case, the doesthe Financial Times of London. Italy's to take a stand against abortion. guerrilla movement itself has changed. Ten La Stampa said that "a weak leader at the years ago, we were negotiating with a uni­ top of the EU Commission can only please • THE JAPANESE Defense fied command. Today, the guerrilla move­ London, which has long been hostile to Eu­ Agency's aGnual "White Paper," re­ ment is split into pieces, there is no longer ropean integration." leased on JUly 15, said that Russia any single authority . I count on negotiating In an interview in the Luxembourger still mruptains approximately with the local chiefs ....Obtaining power Wort newspaper on July 14, Santer said that 240,000 ground troops in the Far in the center doesn't interest them any more. he was a Europeanfede ralist, but not a cen­ East, with : massive air and naval They want to win mayoralties, posts in re­ tralist. "The more Europe is decentralized capabilities; and that the "future of gional assemblies. And with the majority the stronger it is," he said. He also made a the Russian military remains uncer­ that I have in Parliament, I can bring about strong case for a Europe builton freetrade­ tain becaus¢ it is linked to political the passage of laws permittingthem to enter which, Reuters noted, is a point likely to and economic instability in Russia. " into local and regional authorities. " make him more acceptable to Britain.

EIR July 29, 1994 International 49 �TIillNational

stung British counterattack Clinton over policyshif t

by Edward Spannaus

While Americans remained ignorant of one of the most im­ nership." When asked by a reporter what would happen to portant developments in U. S. foreign policy in the postwar the old "special relationship" with the U.K., Clinton an­ period, the British escalated attacks on President Clinton, swered that he couldn't pick bdtween the two, because the following his writing-off of the U.S.-British "special rela­ history of the two relationships is different. He said that the tionship" during his visit to Germany. common partnership with Germany is "unique now, because After Clinton's press conference in Bonn on July 11, so many of our challenges are Co Germany's east." Clinton where he announced a new, "unique" German-American declared that the United States �d Germany "have a more partnership, and consigned the old U.S.-U.K. special link to immediate and tangible concern with these issues even than the history books, British reactions ranged from shock and our other friends in Europe. " outrage, to a "stiff upper lip" (see excerpts, following pages). While the London Guardian blurted that Clinton had The special relationship-which has allowed the delapidated "effectively ended" the special relationship with Britain, and British oligarchy to impose its policies of economic looting reduced it to "a mere sentimental tie with the Mother Coun­ and destruction around the world after the British Empire ty," the Washington Post, the biggest paper in the U.S. capi­ expired in World W ar II�onsists basically of yoking Amer­ tal, breathed not a word of these Iilramaticevents . Its coverage ican "brawn" to British "brains." Without it, the whole ga­ was limited to describing Clinton' and Kohl's appetites and meplan for a one-world U.N. dictatorship could blow up, mutual love for food. and sanity, namely peace based on economic development, Of the major dailies, only tht New York Times even men­ would have a chance to succeed. tioned that Clinton had called upon Germany to become the Predictably, the Sunday Telegraph of London launched major partner of the United states with respect to Europe, a new round of scandal-mongering on July 17, with a front­ and indicated that unnamed "American officials" regarded page story accusing Clinton of having used cocaine, and then Britain and France as unable �o play a leadership role in lobbying to have their new allegations brought up in the Europe. That "newspaper of �ord" blacked out the ex­ congressional hearings on Whitewater. The new round of change regarding the U.S.-U.Kf special relationship. Hollinger Corp. scandal-mongering against the presidency The next day, July 12, prior to delivering his speech at has been considered "newsworthy," where the President's the Brandenburg Gate, Clinton met with Kohl and outgoing accomplishments have not. European Commission President Jacques Oelors. At a joint press conference, Clinton stated, "I want to particularly ap­ u.s. media spike the story plaud President Oelors for his I 'White Paper' on jobs and U.S. citizens could learn about the scandals from the growth in the European Unionl ...We talked quite a bit U.S. news media, but they were not informed about the today about how we can furthet develop our cooperation to events which triggered the latest British reactions. generate more jobs and higher incomes." Consider the following: On July 11, Clinton and Germa­ The White Paper, adopted � the European Union heads ny's Chancellor Helmut Kohl held a press conference, at of state at their Corfu summit on June 25, involves 11 Europe­ which Clinton announced the new "German-American part- an-wide infrastructure projects, ,including rail projects virtu-

50 National EIR July 29, 1994 ally identical to those proposed by LaRouche and the Schiller in office, what would his reaction ,be? The aide stated that Institute in their "Paris-Berlin-Vienna Productive Triangle" Faircloth did not tell Pritchard, "I fuvor expanding the hear­ proposal of 1989-90. ings," but he only said that ifcredible evidence were pre­ On July 13, there was absolutely no U.S. coverage of sented, then the hearings ought to be expanded. Clinton's endorsement of the Delors "White Paper" and Clin­ At this point, said the aide, neitherSenator Faircloth nor ton's discussion of generating more jobs and higher incomes. anyone else even knows when the Senate will take up the None. Why? Could it have anything to do with the British Arkansas phase of the Whitewater hearings, since the cur­ hatred of Delors' s infrastructure proposals? rently scheduled hearings are limited to areas in which special Just before the Corfu EU summit, Lord William Rees­ prosecutor Robert Fiske has completed his investigation. Mogg, writing in the Times of London on June 24, denounced That pertains only to the "Washinglon phase" of the investi­ Delors's infrastructure projects as "insane" and warnedthat gation-White House contacts witH regulatoryagenci es, and they would cause a panic on the financial markets . Better the events surrounding the death of White House aide Vin­ to deal with unemployment by "reducing labor costs and cent Foster. rigidities"-i.e., slashing wages and destroying working Meanwhile, the London Economist ran, in its July 9-15 conditions. British Prime Minister John Major subsequently issue, an article listing mysterious deaths and incidents of vetoed the selection of Belgian Prime Minister Jacques De­ violence which have taken place in Arkansas-most of which haene to replace Delors, on the grounds that he was too much were first dug up or concocted by Hollinger's Ambrose Ev­ like Delors, and "represents a tradition of big government." ans-Pritchard. In the week since Clinton's return from Germany, there The Economist begins by discussing the videotapes being was still not a word of coverage on the scuttling of the special circulated by evangelist Jerry Falwell. The Falwell tape "is relationship with Great Britain, or of Clinton's praise for crude and sensationalist," declares tiheEconomist, and "most the Delors Plan. To this writer's knowledge, the Houston people have dismissed it as nonsense." But, continues the Chronicle was unique in even alluding to British concerns City of London weekly: "It is true, nevertheless, that a pecu­ about the decline of their special relationship with the United liar pattern of suicides and violence surrounds people con­ States. nected to the Clintons or their associates," and then the Econ­ omist is off and running with its detailed listing of seven The Brits' Whitewater wars incidents. On the principle, "If you don't like the news, make up The Washington Times reprinted the Economist article your own," back came a new round of scandal-mongering. verbatim in its July 19 issue. On the same day, the editors of Hollinger board member Sir Jimmy Goldsmith sputtered that the Wall Street Journal conducted journalisticcontortions to Clinton had demonstrated "his astounding lack of history, justify rehashing the same list. In a long editorial entitled which is to be added to his astounding lack of wisdom." The "The Falwell Tape," the Journal editors report on the accusa­ lesson that Britain should learn, Goldsmith said, as Washing­ tions of murder made in the tape, and suggest that the accusa­ ton and Bonn "clamber into bed," is that Britain is now tions are "old news" to journalists covering the Arkansas paying the price for its post-Suez-1956 "servility" to the scandals. But "few of us have shared any of this knowledge United States. with readers ," the Journaleditors deadpan, since "we decline A few days later, Hollinger's Sunday Telegraph escalated in the name of responsibility to print what we've heard." the Clinton scandals again, with a front-page story trum­ Then how does the story get circulated? It is left to "less peting charges that Clinton used illegal drugs in the 1970s responsible sources" to publish itl first. Says the Journal, and '80s. It described the allegations as having been made in "the British press has a different approach," citing Evans­ a series of "exclusive interviews" with the Sunday Telegraph. Pritchard and the London Economist. The rest of the editorial Toward the front ofthe article, author (and British intelli­ is devoted to republishing what th� Economist-"surely not gence stringer) Ambrose Evans Pritchard wrote: "Republican a sensationalist sheet"-has already printed, listing the alleg­ Senator Lauch Faircloth, a member of the Banking Commit­ edly curious deaths in Arkansas. tee that later this month will hold hearings into the Whitewa­ "Pondering the string of violen� coincidences," the Jour­ ter property deals involving Mr. and Mrs. Clinton, wants to nal intones, "we feel some duty tp share with readers one expand the narrow scope of the investigation to cover grow­ factor that colors our thinking about the Arkansas connec­ ing allegations about narcotics trafficking and money-laun­ tions. In particular, with drugs does come violence, and also dering in Arkansas in the 1980s." money laundering. And laying asid4!any thought of presiden­ But once again, Pritchard has gotten ahead of himself. tial involvement [perish the thought!], there is a story here EIR learnedfrom the office of Senator Faircloth, a Republi­ worth our attention and yours." Thus the gutter journalism can from North Carolina, that Faircloth is not making any of Ambrose Evans-Pritchard gets laundered throughthe so­ attempt to expand the scope of the upcoming hearings. An respectable Wall Street Journal-the same Wall Street Jour­ aide said that Pritchard had asked the senator if credible nal which refused to let its readers in on one of the biggest evidence were presented that Clinton had used drugs while stories of the decade.

EIR July 29, 1994 National 51 rope and away from the Far East� Mr Clinton made plain that Documentation the U.S. is intent on creating a special relationship with Germany as the dominant force in promoting European union. President Clinton, on the first day of a two-day official visit to Germany, reduced the U.S.'s special relationship with Britain to a mere sentimen�l tie with its mother Coun­ U.S. anti-British shift try . "It is unique in ways that nothing can ever replace be­ aired in European press cause we grew out of them," he said. While he was careful at a neWisconference on the chancel­ lery lawns to stress that U.S. links with Britain and Germany The fo llowing quotes are cited verbatim fr om articles in the were different, he played up the! primacy of the partnership English language press, or translated by EIR staffwhere the with Europe's biggest and most powerful nation. original texts are in German or Italian. Central to this new special rtlationship was how to inte­ grate Europe's "other half'-thf;! reformed central and east From Great Britain European states, and Russia-into new institutions, which • "The Clinton Doctrine," lead editorial, Daily Tele­ would build greater stability afterthe Cold War. graph, London, July 4: ...The U.S. and Germa�y are understood to have Much attention will no doubt be paid to President Clin­ agreed to set up a working party to discuss ways of extending ton's remarks in an exclusive interview in today's Daily Tele­ political and economic security eilstwards-ajo int Ostpolitik graph in which he extols both closer European integration designed to bring countries such as Poland and Hungary and German leadership of the continent. . . . closer to the European Union and, eventually, Nato. For Britain, this realignment may have uncongenial con­ • "Clinton Ends the Affair with Britain," by Murray sequences in the long term, particularly if pressure were to Ritchie, European Editor, Brussels, Glasgow Herald, July mount for her to relinquish her seat on the U.N. Security 13: Council. But it is the comparatively precarious democracies "Nothing will stop us, everything is possible-Berlin is of central and Eastern Europe that will derive most cause free ," President Bill Clinton cried yesterday from the eastern for concern from President Clinton's remarks. His recipe side of the Brandenburg Gate in! Berlin. The phrasing might for continental stability would appear to be a more active not have carried the same ring as John F. Kennedy's "lch bin role for both Germany and Russia-their traditional oppres­ ein Berliner" but the message,· as far as Britain was con­ sors .... cerned, was deadly. Any lingering notion that the United • "Clinton Tells Germans to Be Leaders," Stephen Rob­ Kingdom and the United States still enjoy the so-called spe­ inson, Daily Telegraph, July 12: cial relationship which puts British-American interests first President Bill Clinton has urged Germany to play a strong among equals is fantasy. leadership role in a more closely integrated European Com­ The truth is now unmistakable. Mr Clinton, the best munity and has endorsed Bonn's current drive, which is op­ American political operator since Kennedy, is behaving in posed by Britain, towards a federal Europe .... character by responding to the reality of political power in His effusive comments about Germany were no doubt Europe and identifying himself with it. . . . intended as a courtesy, but his emphasis on the centrality of Of course, there were the usual belated and placatory the German role went far beyond diplomatic niceties. noises from Mr Clinton and White House officialsabout the Relations with Britain have not been easy since Ameri­ effect of the Berlin speech on American relationships with ca's first Oxford-educated President reached the White Britain. And in London the Foreign Office was at pains to House, and British officials can be sensitive to any implied dismiss his words as just another burst of romantic exuber­ snub. During his visit to Britain for the Normandy commem­ ance by a young President. But the truth must hurt John orations Mr Clinton made a point of stressing the ties which Major and other British Atlanticists who still hanker nostalgi­ link Britain and America. But he reserved his major speech cally for the days when the special relationship really existed, on European policy for the French National Assembly .... even in the bizarre On Golden Pond style of the Thatcher­ • "U.S. Cuts British 'Special Link,' "by David Gow, Reagan era .... Guardian, London, July 12: This affair demonstrates with almost hurtful clarity the President Clinton yesterday effectivelyended the United extent of the United Kingdom'$ decline not just as a world States' "special relationship" with Britain, instead offering power-which has been evidentfor half of this century-but Germany a unique partnership with the world's leading pow­ as a European one. ... Like the dead parrot in er in forging a united Europefrom the Atlantic to the Urals. the Monty Python sketch, this is an ex-special relation­ Reflecting a tilt in U.S. foreign policy back towards Eu- ship ....

52 National EIR July 29, 1994 , burgerTor on� d n Red!: Clin! �� ::!b�andbesucbS A sample oJ German pressJrom July 12 and 13,' "Clinton.' Germany No . 1 Partner. V.S. President Expects Responsibilities. Private Meeting with Kohl in the Evening" (Berliner Zeitung); "Clinton's Brandenburg Gate German Visit" (Tagesspiegel); "America-in the Midst oj Berlin" (Berliner Allgemeine Zeitung); "First Visit Bill Clinton Lauds German Va lues" (Handelsblatt); "Clinton: 'We Are on Your Side, Now and Forever. 40,000 ueleo'ralre Bill Clinton in Berlin CallsJor Throwing a Bridge Between East and West" (Berliner Zeitung); "Clinton: Berlin Prepares Enthusiastic ReceptionJor Presidential Couple. First Speech by a V.S. President in the (Tagesspiegel); " 'Nothing Can Hold Vs Back.' The Historic Speech oj President Clinton at the Brandenburg American President aJt er the Fall oJ the Wall in Berlin" (Tagesspiegel); "Berlin Celebrates Clinton: 40,000 in Brandenburg Gate" (Die Welt); "Clinton in Berlin: A Historic Speech" (Bild-Zeitung).

Americans, especially those of Clinton's generation, In Germany show little sympathy for the residual resentment of a success­ • "The Hand Reaches Out and Jhere's Nothing There. ful Germany which surfaces in France and Britain . He knows Reflections in London About the Cranged Relations with Germany is the key to a new, larger, more integrated Europe North America," by Bernhard Hei 'ch, Franlifurter All­ which cannot come about without German political clout and gemeine Zeitung, July 14: r economic assistance .. .. LONDON , July 13. The "specia relationship" between • "Clinton Tour Shows U.S. Loss of Direction," Finan­ Great Britain and the United States ha� not, in reality, always cial Times, London, July 15: been so special. Yet some in LondoJ shrank back in horror In Bonn , Mr. Clinton spoke of "a common partnership when President Clinton now official� declared it a thing of that is unique now because so many of our challenges are just the past, and in the German capital o� Berlin, of all places. to Germany's east." As the most important inspiration for British foreign poli­ The "special relationship" with the U.K. he consigned to cy the architects of the Foreign Office have carved over the the status of a nostalgic curio: "Even though we fought two splendid entrance stairway Psalm 671. . . . More concretely wars with them early in the last century it is unique in ways ...facing the "waiting room of thd ambassadors ," a door that nothing can ever replace because we grew out of them." away from the foreign minister's offi ce, a mural gives the I EIR July 29 , 1994 National 53 mandate to generations of British policy: Britannia stretches mentaries in the leading new$papers. Whatever President her hand acrossthe sea toward " America-the biggest of the Clinton's Berlin remarks mean, there can be no doubt that republics." Through these halls, for some time the feeling the Britons feel stricken in their self-esteem. For decades they has been creeping, that the hand is reaching out, and more have vaunted their direct links to Washington, like teacher's and more, there is nothing there. pets, against the other Europeannation s. · . . After the last world war, Winston Churchill in his The Special Relationship �tween England and America famous Iron Curtain speech of March 1946 in Fulton, Mis­ . . . was much more than a cprnerstone of British foreign souri described the basis upon which the futureof this divided policy. It mirrored the world Qutlook of a nation which felt world could be mastered: "a special relationship between the itself more strongly drawn to�ard its cousins on the other Commonwealth and the United States of America." side of the Atlantic than towantthe European continent. The The Commonwealth today only has a sentimental mean­ traditional affinityto America �ways went hand in hand with ing, and since the collapse of the Iron Curtain, London has the country's security interestsl ... belatedly begun to prepare itself for a future in which the Now Clinton has gone so ;far as to flaunt for German­ "special relationship" is now only history. American relations the term Special Relationship [in text in · . . President Clinton was even a student at Oxford and English] which the English up to now saw as their privilege. has more former Rhodes Scholars among his troops than any ...The Daily Mail, which loves to beat the anti-German predecessor; but . . . Clinton himself cannot forget that the drums, spoke of an "unholy alliance" between Clinton and British Conservatives worked against him during his elector­ Kohl. al campaign against President Bush. "Don't Count on Berlin," reads the headline of a com­ • "Clinton's Berlin Signal," by Heinz Kurtzbach, Berli­ mentary by William Rees-M�gg in the Times .. .. Rees­ ner Zeitung, July IS: Mogg compares Great Britain, :France, and Germany, which · ..Bi ll Clinton has left behind a threefold signal, the all woo the favor of America, with the three Graces .... signal from Berlin. A feeling of injustice, that !the British had won the war, First: The appeal to the Germans not to let the chances but then have to experience 'ow they have fallen further from unity wither, but to courageously use them. That an and further behind their vanquished enemy, reinforces the American says this in the shadow of the Brandenburg Gate resentment. . . . is already meaningful and worth thinking about. For years no constructive ,initiatives have come out of Second: The appeal to young Germans to grasp the compa­ London. . . . Clinton has no� bestowed the [Special Rela­ ny of people of different origins as enriching. This from a man tionship] crown on [Germany] ; Even if his Berlin utterances who is President of a multicultural society (however well or were not seen as a shift in Ame�can foreign policy, but rather less well it may function) also must be thought over .... as a form of courtesy, his appearance has symbolic force. Third: The commitment of the Americans to the transat­ England feels exactly that. lantic community and the directing of this community to the stabilization of democratic beginnings in former eastern and Italy, United States central Europe. It was no accident that Clinton went to the • "July 14: Germans in Paris. The New Season of Eu­ Baltics and Poland before his Germany trip, and it was also rope Opens," by Arturo Pellegrini, II Popolo, daily of the emphatically more than mere polite reverence toward Eu­ Italian Popular Party, Rome, July IS: rope , that the president of the EU Commission [Delors] yes­ London, orphan of the "special link" which she has culti­ terday stood beside Clinton and Kohl in the Reichstag .... vated for half a century with Washington, intends to oppose • "Teutons on the March: After Clinton's Speech, the candidacy of [Jacques] S3!Ilter, whom she sees and not France Wants to Learnto Love Germany." by JiirgAltwe gg. wrongly as a threat to her design for a Europe limited to the FranlifurterAllgemeine Zeitung, July 16: single market. . . . PARIS , July 15. Mitterrand intimate ...Pierre Berger • Houston Chronicle, July 17: commented, "I can only repeat myself. We share with the In his apparent enthusiasm to embrace Germany in per­ Germans a most important part of European culture. We petual partnership, President Clinton has risked throwing were enemies for a long time-but no longer than with the both caution and historical memory to the winds .... English-and now we have learned to know one another. There is puzzlement and hard feeling over this elsewhere And to love each other. " in Europe. It is being read by some as Clinton's de facto • "Grace on the Sidelines. Without Clinton's Help: Eng­ proclamation of Germany as this country's principal ally and land's Anxiety about the German Giant," by Gina Thomas, helpmate in the coming years. For good reason, that makes FranlifurterAllgemeine Zeitung, July 16. many uncomfortable. Agitation rules in England. The tabloid press is a bit The British are expressing particular concern that their less indignant than usual, because the subject hardly suits longstanding "special relation$hip" with this country may be sensationalist headlines, but there is no lack of worried com- nearing an end as the result of the president's remarks ....

54 National EIR July 29, 1994 Book Reviews

Bertrand Russellwas the'g odfather' of Hiroshillla-bolllber James B. Conant by Carol White

Frederick Lindemann (Lord Cherwell), it is not clear to what extent personal contact existed betwe�n Conant and Bertrand James B. Conant, Harvardto Hiroshima and Russell. That they agreed in rinciple on questions such as the Makingthe of Nuclear Age p the direction of the postwar peace dannot be denied, even by James G. Hershberg though at times Conant was constrain¢d to take into consider­ Alfred A. Knopf, New York, 1993 ation the anti-British sentiment among many Americans, in­ 948 pages, hardbound, $35.00 cluding members of the U.S. Senate and House of Represen­ tatives. Moreover, particularly on issues of bomb policy, where the retooled "pacifist" Russell considered favorably the possibility of a preemptive strike against the Soviet Union "How Bertrand Russell Became an at the close of World War II, Conant and Russell had a Evll Man" profound underlying agreement on tM shape which the peace should take. Thus, to identify Bertrand Russell as James by Lyndon H. LaRouche, Jr. Fidelio magaZine, Washington, D.C., Fall 1994 Conant's godfather, is not too great ailiberty on my part. Single copy price $10 I wish here to discuss LaRouche'� article, counterposed to Conant's book. But first it is worth1Il0ting that the Russian scientific community has vehemently repudiated Sudopla­ tov's implications that they were de�endent upon spies for The recent "revelations" by self-avowed KGB agent Pavel the success of the Russian scientifice ffortto produce a bomb . Sudoplatov, in his book Special Tasks: The Memoirs of an On July 12, a group of nuclear physicists published a Unwanted Witness-a Soviet Spymaster, have been the occa­ letter in Izvestia, the Russian government paper, in which sion of renewed interest in the truth of how the Soviets suc­ they denounced Sudoplatov's version of the history of the ceeded so quickly in getting the atomic bomb . Were scientists building of the nuclear bomb in the: U.S.S.R. Sudoplatov such as Robert Oppenheimer and Enrico Fermi slipping them had worked in Soviet foreign intelli�ence and was a close secrets, as Sudoplatov claims? In the July 1 issue of this associate of the chief of Stalin's sedret services, Lavrentii magazine, American statesman Lyndon LaRouche asked, Beria. In his book, Sudoplatov claims that leading American "Of What Is Leo Szilard Guilty?" In his short piece, he scientists shared strategic informatiort with Soviet agents re­ alleged that the atomic bomb was developed not to counter a garding the bomb, without which they could not have suc­ perceived German threat, but as a pretext for the imposition ceeded in building the bomb. of a world federalist governmentunder British control. This the Russian physicists deny. iAccording to their let­ LaRouche followed that up in an article scheduled to ter, they used information from spies in order to exactly appear in the Fall 1994 issue of Fidelio magazine, which has replicate the American device because they were afraid that come to us in a prepublication draft. We also have on hand Stalin would exact brutal retribution should they develop James G. Hershberg's biography of James Conant, the man their own innovative design without immediate success. with direct supervisory responsibility for U.S. government Considering that there can be no doubt of the independence nuclear energy policy during World War II. Much in the of the Soviet development of the hydtogen bomb, the claim Hershberg book confirms LaRouche's contention, although by these scientists should be treated with respect. this was hardly the intention of its author, who appears to be quite sympathetic to Conant. The evil Bertrand Russell While Hershberg documents an ongoing relationship We do know of one occasion when Conant and Russell among Conant, Winston Churchill, and Churchill's deputy definitely did meet, and that was wHen Russell lectured at

EIR July 29 , 1994 National 55 Harvard University in 1940. Viewed from the vantage point secret Interim Committee, which was appointed by President of today, it is hard to imagine the vehemence of the public Truman to debate the use of tbe atomic bomb. Conant sug­ outcry against Russell when he toured the United States in gested that the bomb be dropped on a "vital war plant em­ 1940 . Nonetheless, it is a fact that he was barred from speak­ ploying a large number of workers and closely surrounded ing at New York's City College because of his despicable by workers' homes." This was in fact the basis upon which public flauntingof immorality. Nonetheless, despite the gen­ Hiroshima was chosen as a target. The aim of the choice was eral uproar, in December 1940, the president of Harvard to exterminate as many people as possible, using the factory University, James Conant, invited Russell to deliver the an­ as a cover. After the first euph�ria over the ending of the war nual William James lectures at his university. had subsided, the horrible thing that Conant and all those Conant, like Russell, was a self-avowed libertarian, in responsible had decided to do fame under increasing attack. political if not sexual matters. In May 1943, at the height of On page 284, Hershberg cites private correspondence the war effort, when he himself was fully involved in giving between Conant and one of hi� critics, Reinhold Niebuhr, in political direction to U.S. atomic energy policy, he found March 1946, in which Conant:flaunts the fact that the bomb­ time to write an article for Atlantic Monthly magazine enti­ ings of Hiroshima and Naga$aki were indeed intended to tled: "Wanted: American Radicals." Not surprisingly, Co­ inflict maximum damage upop the civilian population. He nant was a strong supporter of Robert Oppenheimer, who wrote then: i also was a libertarian of the British, Benthamite stripe. The "If the American people ate to be deeply penitentfor the accusation by Sudoplatov that Oppenheimer passed on se­ use of the atomic bomb, why should they not be equally crets to the Soviets during the war does not ring true, but it penitent for the destruction o� Tokyo in the thousand-plane can be made to appear credible not only because of Oppenhei­ raid using the M69 incendiary which occurred a few months mer's past communist associations, but because he too was earlier? (I may say that I wa� as deeply involved with one a British radical of the same stripe as Bertrand Russell, or method of destruction as the �ther. so at least on these two Russell's philosophical progenitor, the mummified Jeremy points I can look at the mattek- impartially.) If we are to be Bentham. penitent for this destruction of�apanese cities by incendiaries Russell, Oppenheimer, Conant-these are the men who and high explosives, we should have to carry over this point participated in shaping a postwar era to be dominated by of view to the whole method of warfare used against the Axis the specter of the unnecessary bombings of Hiroshima and powers ." Nagasaki. It is interesting to contrast two different treatments of this subject, LaRouche's and Hershberg's. LaRouche's argument Today, the world's population has more and more come The trip of the Enola Gay to accept such atrocities as neQessary evils. Fear of the bomb, LaRouche takes offfrom the fact that the bombings oc­ rather than moral qualms, is tbe stock and trade of the world curred despite the fact that the Emperor of Japan was already federalists today, just as fear of hordes of the starving de­ negotiating surrender terms with the Truman administration scending upon the industrial n.tions is used to try to bludgeon through Vatican channels. He begins his articlewith the stark people into accepting genocide in the name of necessary statement: "See in your mind's eye a B-29 bomber aircraft, measures to limit population growth. called the Enola Gay, flying to its hellish appointment, that LaRouche seeks to answ� the question of how it is that horror stricken summer's day in 1945 ." The remainder of such a transformation has occurred over the past 50 years; this piece explains how such an atrocity could have occurred. how it is that the United Stales has been drawn into these Even before the United States was at war, in the summer policies. To do this, he traces the thread from the pre-war of 1941, Conant was given responsibility by President Frank­ decision to develop nuclear \f.'eapons as a means to impose lin Roosevelt for assessing the feasibility of building a weap­ world government as part of the postwar settlement, rather on employing the newly discovered principles of nuclear than from a genuine fear that Germany would develop a fission. Then, as deputy to Vannevar Bush, he took over usable atomic weapon. It is u$eful to consider here a substan­ responsibility for directing the U.S. government's crash ef­ tial quotation from an article by Russell, which LaRouche fort to build that bomb. This effort continued and accelerated, cites in his article. Russell's pieceappeared in the Bulletin of as Hershberg documents, even afterit became clear that Ger­ the Atomic Scientists (Nos. 5 and 6, Sept. I, 1946). It bore many 1) was not itself making a bomb, and 2) would be the title, "The Atomic Bomb Ilndthe Prevention of War": imminently defeated. Japan then became a target of opportu­ "It is entirely clear that there is only one way in which nity on which to demonstrate the efficacy of the bomb. Japan great wars can be permanentl�prevented, and that is the estab­ was to be the instrument of a policy of terrorizing the Soviet lishment of an international governmentwith a monopoly of Union and patriotic forces in the United States and France, serious armed force. When I speak of an internationalgovern­ into accepting the dominance of a world government. ment, I mean one that really governs, not an amiable facade In the summer of 1945 , Conant was a member of the top- like the League of Nations, pr a pretentious sham like the

56 National EIR July 29, 1994 United Nations under its present constitution. An internation­ al government, if it is to be able to preserve peace, must have the only atomic bombs, the only plant for producing them, the only air force, the only battleships, and generally whatever is necessary to make it irresistible. Its atomic staff, its air squadrons, the crews of its battleships, and its infantry regi­ ments must each severally be composed of men of many dif­ ferent nations; there must be no possibility of the development of national feeling in any unit larger than a company. Every member of the international armed force should be carefully trained in loyalty to the international government. 'The internationalauthority must have a monopoly ofura­ nium, and of whatever other raw material may hereafter be found suitable for the manufacture of atomic bombs. It must have a large army of inspectors who must have the right to enter any factory without notice; any attempt to interfere with them or to obstruct their work must be treated as a casus belli. They must be provided with aeroplanes enabling them to dis­ cover whether secret plants are being established in empty regions near either Pole or in the middle of large deserts. "The monopoly of armed force is the most necessary attribute of the international government, but it will, of The evil Bertrand Russell. who urged the use of the atomic bomb course , have to exercise various governmental functions. It to usher in a world fe deralist government will have to decide all disputes between different nations, and will have to possess the right to revise treaties. It will have to be bound by its constitution to intervene by force of known to American and British poli9y-planners. It was not arms against any nation that refuses to submit to the arbitra­ fear of a German bomb , but the destre to shape the peace, tion. Given its monopoly of armed force, such intervention which impelled the shapers of the Manhattan Project for­ will be seldom necessary and quickly successful. I will not ward . A memorandum to himself by Conant (still existing in stay to consider what further powers the internationalgovern­ governmentarc hives), which is cited by Hershberg, substan­ ment might profitably possess, since those that I have men­ tiates the parallelism between Conant and Russell on the tioned would suffice to prevent serious wars . subject of world government. In May 1944 , Conant wrote: "OfI course, for the very 'Peace through power alliances' long run , I'm inclined to think that the pnly hopefor humanity "There is one other method by which, in theory , the peace is an international commission on atomic energy with free of the world could be secured, and that is the supremacy of access to all information and right of!inspection." He elabo­ one nation or one closely allied group of nations. By this rated on this, pointing to a stark choice faced by humanity: method Rome secured the peace of the Mediterranean area "Alternatives: race between nations And in the next warde­ for several centuries. America at this moment, if it were struction of civilization, or a scheme to remove atomic ener­ bellicose and imperialistic, could compel the rest of the world gy from the field of conflict." This became the basis of a to disarm , and establish a worldwide monopoly of American memorandum in which he outlined the structure of what in armed forces. But the country has no wish for such enter­ fact became the International At6mic Energy Agency prises, and in a few years the opportunity will be gone. In the (IAEA), which would start as a cldaringhouse but would near future , a world war, however terrible, would probably rapidly gain policing powers so tha4 "after a decade ," the end in American victory without the destruction of civiliza­ scope of the agreement would be enlarged to "include all tion in the WesternHemi sphere , and American victory would armament inspection and publication� of figures ." no doubt lead to a world government under the hegemony of "If eventually why not at start?" pe wrote. "Perhaps so. the United States-a result which, for my part , I should Might try InternationalCommission on Military Science with welcome with enthusiasm." powers above on atomic powers but powers of inspection and Hershberg cites archival material showing draftsof mem­ publication on all armaments problems and military secrets." oranda by Conant indicating that he shared Russell's views. Hershberg also documents a point otherwise made by The Venetian tendency LaRouche, that the circumstances in Germany which did not Hershberg's book is informative. ror those who are inter­ permit them to launch their own Manhattan Project were well ested in the history of the immediate postwar period, it is

EIR July 29 , 1994 National 57 an extremely worthwhile contribution. However, the real do well to recognize the Briti h Empire as an offshoot of question that must be answered is implicit in the title of earlier Venetian ambitions t resurrect the evil Roman LaRouche's article: "How Bertrand Russell Became an Evil Empire. Man." How, we ask, did the United States of Franklin Roose­ Bertrand Russell was, in ef�ect, born to be evil. To deny velt, which believed itself committed to creating a world the birthright of his heritage, he would have had to break order free of such monstrosities as British colonialism, as with a family tradition which alhed him to an oligarchy which well as Hitler's Nazi party , fall into the trap of postwar nucle­ in tum traces its roots as far ba k as the aristocratic families ar politics? which ran Rome. Just as his gl1{ ndfather secretly supported A partial answer is provided by Henry Kissinger's infa­ the Confederacy during the American Civil War I , so Russell mous May 10, 1982 speech to the Royal Institute of Intema­ hated the United States of Abrapam Lincoln, which still sur- tional Affairs , or Chatham House, in London. Here he admit­ vived in the memories of people alive in 1940. ted that he took directives from the British Foreign Office Russell hated Franklin Roosbvelt, because Roosevelt was rather than his own President, and attacked President Roose­ first and foremost an American President. Russell favored a velt's wartime attacks upon British colonialism. For Kissing­ preemptive nuclear strike against! the Soviet Union in order to er, it was Churchill, not Roosevelt, who laid the guidelines maintain the balance of power i1 Europe, even after Germany for future U.S. policy, and for Churchill it was policy-plan­ was destroyed. His attack on the United States was only more ners such as Bertrand Russell who guided Britain's role in subtle. He worked to subvert it from within, and tum it from attempting to transform the moribund British Empire into a a republican nation to a junio� partner in a vicious Anglo­ controlIing role in what was to become the United Nations. American alliance to rule the 10rld. Roosevelt's expressed But to understand the extent of Kissinger's perfidy it is commitment to the Four Freed0ms epitomized the hopes of I necessary to survey the past 600 years of human history , people everywhere that out of [Norld War II would come a beginning with the Council of Florence, which ushered in peace which would have effectively extended the rights of I the Golden Renaissance under the guidal)ce of the man, as expressed in the U. S. Declaration of Independence groundbreaking philosophical and scientific contributions of and the Bill of Rights of the U S. Constitution, to all man­ Nicolaus ofCusa. It is this which Russell, Churchill, Conant, kind; which would guarantee a f� entury to come of peace and Kissinger, and the like intend to destroy . In this regard, we development. Tragically this hr yet to occur. Toward a New Council of Florence ORebER 'On the Peace of Faith' and �j� Other Works by Nicolaus of eusa Thr ss of The Schiller Institute has just Corruption at th� Highest Leve ls released this new book of J �! translations of seminal writings of Power i� the U.S. of the 15th-century Roman Prepay your order George Bush Catholic Cardinal Nicolaus of of 10 books or more The Unauthorized Cusa, who, through his work l and get 20% off Biography. and writings, contributed more cover price: J;:JR, 1992. than anyone else to the 10 books for $160.00 launching of the European Dope, Inc. Golden Renaissance. The title The Franklin The Book That Drove of the book, TO/varda New Kissinger Crazy. CQ.ver-Up expresses our Council oj Flormce, Third Edition, EIR, 1992. Child Abuse, Satan ism, and purpose in publishing it: to spark 10 books for $128.00 Murder in Nebraska. a new Renaissance today. AWP, I992. 10 booksfor $64.00 • 12 works published for the first time in English Add $9 postage and handling for first 10 books, and $.50 postage • New translations of 3 and handling for each additional k. Make your check or important works money order payable to: t Ben Franklin Book ellers Schiller Institute, Inc. 107 South KingSt. , Leesburg, VA 22075 p.o. Box 660·H Washington, D.C. 20035-6082 phone (703) 777-3661 fax (703 777-8287 phone: 202-544-7018 MasterCard and Visa accepted.

58 National EIR July 29, 1994 we say to you simply: On the issue of;contraception,. you are wrong." Collaborating with CSO is Catholics for a Free Choice Malthusians attack (CFFC), which is rumored to receive funds from the Planned Parenthood-affiliated Alan Guttmacher Institute, and whose Vatican over Cairo president, Frances Kissling, has proposed depriving the Vati­ can of its official status at the United Nations. CFFC has held by Kathleen Klenetsky three press conferences since the beginning of July to defend Cairo and denounce the Vatican. In Rome on July 11, Kis­ sling accused the Vatican of "viciousness" in its comments The Vatican's aggressive campaign against the draftprogram on Cairo, and declared that "the Vadcan cannot be allowed for the United Nations International Conference on Popula­ to set policy for the whole world." tion and Development (ICPD, informally, the Cairo confer­ She strongly endorsed the Cairo program as "one of the ence) has triggered a nasty counterattack. more progressive, balanced, and ethiclll documents on family The public attacks on the Vatican's position which have planning that we have seen in a long time. The Vatican is proliferated over the past several weeks, share several acting as an obstacle to this document." themes, all of them false: There is a grave population crisis, At CFFC's other press conferenqes, spokesman Daniel especially in the developing sector, which requires immedi­ Maguire levelled the absurd charge that concern for "pow­ ate intervention via the spread of contraceptives, steriliza­ er-not embryos or fetuses," is the engine driving the Vati­ tion, and abortion;the Vatican is acting irresponsibly toward can's position on Cairo, while Kisslirtghas claimed, equally this crisis, through its "obstructionist"and "inflexible"oppo­ absurdly, that the Catholic Church fears it will lose money it sition to such measures; and the Vatican is increasingly out now receives from U.S. government aid agencies for relief of step with the vast majority of Catholics on the issues of services if a greater proportion of U.S. foreign aid were to go population policy, contraception, and abortion . to "family planning" (as it would under the Cairo program). International Planned Parenthood Federation Secretary Another flank against the Vatican was opened at a press General Halfdan Mahler signalled that neo-malthusian oper­ conference at U.N. headquarters on July 19, where Nafis ations against the Vatican were going into high gear, with a Sadik, secretary general of the Cairo conference, was pre­ statement in the June 30 Earth Times. Mahler expressed sented with a report produced by an "jnterfaith consultation" "sadness and frustration that the Vatican opposes the Cairo which took place in Belgium in May. draft program .... No religious group ," he thundered, Sponsored by the Chicago-based Park Ridge Center and "should monopolize morality or ethics. People know what is financed by the Ford Foundation and the Pew Global Stew­ best for themselves ....A majority of Catholics in many ardship Initiative-both funders of pro-Cairo, pro-popula­ countries disregard the Vatican's strictures on 'artificial' con­ tion-control efforts-the consultation was attended by theo­ traception. " logians from Protestant, Jewish, Roman Catholic, Buddhist, and other religions. 'Dissident' Catholics denounce pope According to Park Ridge Center's Larry Greenfield, the Right on cue, several groups of dissident Catholics report not only blasts the Vatican for opposing the the Cairo launched high-profileefforts aimed at derailing the Vatican's agenda; it also asserts that religions must play a role in imple­ anti-Cairo effort. menting the Cairo depopulation program. The report insists Catholics Speak Out (CSO), a project of the Maryland­ that the "principle" of freedom fr om religion must be af­ based Quixote Center, is soliciting signatures from Catholics firmed, and criticizes any religion which "interferes" with in the United States, Ibero-America, and Europe for an ad national policymaking on population-related issues. The re­ which it plans to publish in the New York Times shortly before port states that "there is a population crisis, which has to be the Cairo conference opens this September. Titled "An Open addressed by a multifaceted approach" including universal Letter to Pope John Paul II," it slams the Vatican and defends access to contraception, extensive sex education, and global the neo-malthusian lie that the world is overpopulated: "The legalization of abortion, Greenfieldsaid . number of people borninto our human family is straining the Dr. Jose Barzellato, head of population programs for the earth's limited resources, a growing crisis which calls us Ford Foundation, told a journalist !Qat the report is "a very . . . to make effective family planning methods available important" flank in the campaign to keep the Vatican from worldwide. In spite of this crisis, Vatican policy opposes one undermining Cairo, especially since it was signed by several of the most effective means of voluntary family planning: Catholic theologians. Pressure by Roman Catholics who dis­ contraception. . . . Because . . . such opposition severely agree with the pope on contraception 'and abortion is the best worsens our global crisis of population and resources and weapon against the Vatican's "inflexibleposition" on Cairo, because the majority of good Catholics . . . have rejected it, he said.

EIR July 29 , 1994 National 59 congressional Closeup by William Jones and Carl Osgood

McCloskey blasts posal that employers pay 80% of The administration is also at­ British policy on Bosnia workers ' health insurance. Immedi­ tempting to counter a campaign Rep. Frank McCloskey (D-Ind.), an­ ately, on return from the holiday against �e employer mandate by the ticipating that the Bosnian Serbs will break, Senate Majority Leader National Federation of Independent reject the latest partition plan for Bos­ George Mitchell (D-Me.) held a series Business, whose members are mostly nia, called again on June 14 for lifting of closed-door meetings with both small firms with five or fewer work­ the arms embargo against Bosnia. He Democrats and RepUblicans to try to ers. Republicans have said they will also asked that the West provide air pull together two versions of legisla­ not votel for legislation that includes support to the Bosnians "to avert an tion passed by Senate committees. the mandate, and conservative Demo­ ongoing, one-sided bloodbath." In the House, Speaker Thomas crats have expressed reservations "Think of the splendid basic logic Foley (D-Wash.) and Majority Leader about it.:Clinton says he wants Repub­ of the British mandate," McCloskey Richard Gephardt (D-Mo.) are trying lican su�port, but Panetta said that the said ironically. Either "the warring to fashion a single piece of legislation White Hpuseis prepared to push legis­ parties agree to the plan, or it will pull out of separate bills passed by the lation 1!hr0ugh the Democrat-con­ out with no lifting of the arms embar­ Ways and Means Committee and the trolled Congress without them. go or other support for the Bosnians. more liberal Education and Labor "We've :got to get health care reform Why should the Bosnian Serbs dis­ Committee. passed tnd if it has to be done just agree with a British green light to gear The biggest controversy is the so­ by Dembcrats then so be it," Panetta up their killing machine?" called employer mandate, which the said. McCloskey warned that the Bos­ White House says is the best way to nian-Croatian alliance, "a singular cover 39 million uninsured Ameri­ achievement of the Clinton adminis­ cans. The White House has stead­ tration," is "in peril." McCloskey was fastly stuck to its call for a mandate referring to conditions in Mostar, but, at the same time, has indicated a Go� derails striker where Muslims are still being forced willingness to negotiate on how to get replacement measure from their homes by gangs without universal coverage. "What's alive is Senate Qemocrats made a final, futile any intervention from Croatian au­ universal coverage, and to get to uni­ attempt On July 13 to break a Republi­ thorities in the city. If these crimes are versal coverage you have to have can filibluster, which was launched to not stopped, McCloskey warned, "the some kind of mandate . . . whether prevent the "Workplace Fairness Act" Bosnian-Croatian alliance will be it's employer, whether it's employee, from taking effect. This legislation short-lived indeed." whether it's 50-50," White House would make it illegal for employers to Chief of Staff Leon Panetta said on the permantntly replace workers striking CBS News program "Face the Na­ for higber pay and other economic tion" on July 10. benefitsl Health care reform Universal coverage was given Un�r existing legislation, it is il­ at top of debate agenda added support when the National Con­ legal t� replace workers striking As Congress returned from recess on ference of Catholic Bishops came out against unfair labor practices. The July 11, congressional leaders pre­ publicly in favor of it. At the same Clinton ! administration strongly sup­ pared for a heated debate on the Clin­ time, the bishops indicated that they ports thf legislation and has lobbied ton administration's health care re­ could not accept a measure which also hard to �et the necessary votes. Busi­ form legislation. House and Senate funded abortion. On "Face the Na­ ness groups, however, with the Na­ leaders are working to build support tion," Panetta indicated that the ad­ tional Association of Manufacturers for President Clinton's demand for ministration is willing to find an "ap­ in the lead, have been bitterly opposed universal health care . proach that, frankly, provides that to the legislation. One point involves welding to­ choice, allows people to make that de­ A similar bill died in the Senate in gether varying forms of complex re­ cision, doesn't have the government 1992 after two unsuccessful cloture form legislation amid firm opposition necessarily impose one approach or votes. The same bill has, however, to a key part of Clinton's plan-a pro- the other." already 'passed in the House. Union

60 National EIR July 29, 1994 leaders point to the threat of penna­ and arrogance in telling other coun­ who have retired there. There is also nent replacement as the tool success­ tries, particularly Third World coun­ a dispute betwe¢n the two countries fully wielded by management to force tries, how many children they ought regarding the border between Estonia striking Caterpillar workers back to to have?" Hyde pointed to the obvious and Russia. work without a settlement. fallacy in the malthusian argument by The Clinton administration helped asking if we couldn't "direct [our ef­ to mediate agreements between Rus­ forts] toward economic development, sia and Latvia, �nd Russia and Esto­ like trying to teach people how to nia. President Clinton was well re­ farm ," instead of "trying to be the ceived in Riga, Latvia, during his July Malthusians say 'poor great condom dispenser of the uni­ European trip and took the occasion have too many babies' verse." to encourage the Baltic leaders to treat A gaggle of malthusian genocidalists Hyde ripped into the alleged "con­ fairly the Russian minorities re­ made their pitch to the House Foreign cern" of present-day malthusians for maining in their tountries. Affairs Committee in hearings on July the "health of the woman" by quoting 12. Representatives were told that figures presented by Dr. Margaret poor countries are having too many Ogawa of Kenya in the July-August children. issue of Social Justice Review. Fonner World Bank President "Doesn't this disparity in the West's Compromise likely over Barber Conable testified that, while provision of population control de­ 'racial justice' measure poor people benefit from broadly dis­ vices versus simple and cost-effective The White House was working over­ tributed economic growth, growth is medicines foster the impression that time during the lTuly recess to lobby offset because poor people "suffer our main priority is limiting the num­ the Congressional Black Caucus from population growth which reduc­ bers of people in developing countries (CBC) to drop <¥ modify its position es per capita income and erodes the rather than improving their health and on death penalty provisions that are potential for an improved quality of well-being?" Hyde asked. tying up the crim�bill . The House ver­ life." This occurs, he said, because sion of the bill would allow death-row "illiteracy, infant mortality, and lack defendants to contest their sentences of options for women limit real family based on statistics indicating racial in­ choices," not because families choose equity in death · penalty cases. The to have lots of children. Conable also Amendment on Baltics draws Senate version does not contain that complained that "45% of the popula­ outcry from Russian Duma provision. tion in sub-Saharan Africa is under the The Senate introduced an amendment Republican senators are hell-bent age of 15 years." Although "contra­ to the Foreign Operations Appropria­ on pushing throughlegislation which ceptive use is going up quite sharply tions bill on July 13 which would pre­ would leave less leeway for appeals in some parts of Africa," Conable la­ vent the appropriation of any of the on death row, and a half-dozen sena­ mented that that was because of fear funds designated as aid to Russia after tors have threatened to filibusterif the of AIDS , not because of a "newfound Aug. 31, unless all Russian troops measure remains in the final bill. desire to limit family size." have withdrawn fromEstonia and Lat­ In a meeting on July 14, the CBC The malthusians tried to shore up via by that time. Aug. 31 was the date voted to opposethe rule on the crime support for the September population settled on for withdrawal in negotia­ bill if the legislation emerges from conference in Cairo. tions between the parties, but the conference without the "racial justice" Rep. Henry Hyde (R-Ill.) asked amendment raised an outcryfrom the provision. Opposing the rule would the population control advocates how , Russian Parliament. seriously delay a vote on the measure. "in view of the eugenics of the prede­ Although Russian withdrawal The CBC is not united on the issue, cessor organization of Planned Par­ fromLatvia appearsto be proceeding however, and a number of the mem­ enthood," they intended to deal with according to schedule, difficulties bers are prepar�d to support the ad­ the latent racism "underlying the urge have arisen in Estonia because of the ministration. The crime bill has been of the United States, in all its wisdom uncertain status of Russian officers stuck in conference since last spring.

EIR July 29, 1994 National 61 NationalNews

• more, chairman of the Domestic Policy expose North as the drug-runner that he is, Committee. Speaking for Mahony, who announced pte availability of its bumper was unable to attend, was Bishop James stickers: "Defeat Ollie North, that Son-of­ Supreme Court allows McHugh of Camden, New Jersey, who is a-Bush." . also a leader on the Pro-Life Committee. execution stays for habeas The bishops said that a recent poll they The u.s. Supreme Court ruled on June 30 had commissioned showed that 70% of that federal judges can postpone executions Americans support universal coverage, but of convicts who have exhausted their state that if abortion were included in that cover­ California to base risk appeals, to give them a chance to obtain age, it would tum "millions of advocates lawyers for a federal review of their cases, into adversaries of reform legislation." The assessment on fears according to the July 1 New York Times. church, they point out, "is deeply involved A soon-to-be-releasedreport commissioned The 5-4 ruling in a Texas case opens up in health care as a major provider and pur­ by the state of California would base envi­ the possibility of further habeas review for chaser of care and as a community which ronmental fi!;kassessment on public percep­ helps pick up the pieces when our system scores of death row inmates and could prove tion and feat, instead of scientific data. Los to be the turning point in the court'sanalysis fails. We have worked for comprehensive Angeles Ti",es reporter Frank Clifford ob­ of habeas corpus petitions. health care reformfor decades." They urge, tained an advance copy of the 640-page re­ The decision marks a reversal of recent finally, that congressional compromise on port. In a recent article that has appeared in court rulings that had moved to restrict the the bill "not come at the expense of the un­ local papers' throughout the state, he quotes use of habeas petitions: The Texas case sug­ born, the unserved, the undocumented, and John Moore, a former official of the U.S. gests that a new majority has emerged that the uninsured." Environme�tal Protection Agency (EPA) is unwilling to cut back the habeas process and a member of the advisory committee much further. overseeing tlte study: "This is the firstmajor The ruling revolves around a financially project of it!\kind in the country that basical­ indigent man who came within hours of ly owned uf to the fact that totally relying death as two lower federal courts refused a Colin Powell weighs in on experts �d technical data is too narrow stay of execution, in holding that they had an approac�." no jurisdiction over any aspects of the case for Coleman and Wilder The controversial report is supposed to because the man hadn't filed a habeas peti­ Gen. Colin L. Powell, former chairman of provide gui�elines for the California EPA. tion. The man argued that without the stay the Joint Chiefs of Staff under George Bush, Clifford no�s that even some environmen­ of execution, he would die before finding gave $1,000to the independentU . S. Senate talists are "leery." Clifford quotes Lawrie a lawyer to prepare a petition. At the last campaigns of both Republican Marshall Mott, a scientist with the radical ecology minute, the Supreme Courtgranted a stay at Coleman and former Virginia Governor L. lobby Natwral Resources Defense Council, the request of two volunteer lawyers . Douglas Wilder, a Democrat. Coleman, who helpediengineer the alar scare, "There who ran against Wilder for governor in are some sqpishy areas that can make you a 1989, entered the race for the seat held by bit queasy. No doubt about that." Sen. Chuck Robb (D) in order to stop the Republican nominee, Oliver North. Ac­ Bishops urge universal cording to the July 13 issue of the Richmond Times-Dispatch, Powell said in May that he health care, no abortion couldn't support North because of North's Privati�ed Florida school The U. S. Catholic bishops held a press con­ role in the Iran-Contra scandal . ference in Washington, D.C. on July 14 to Meantime, Vice President Al Gore shows poor performance release a letter to the congressional leader­ called Doug Wilder to the White House on The Virginian Pilot on July 14 carried an ship, urging that the finalform of health care July 14, to ask him to drop out of the race. article, "School Privatization Firm Flunks legislation include universal coverage and After the short meeting, Wilder said, "there Test in Florida," referring to the failure of exclude abortion. The Catholic Church in is not a scintilla of a chance that I would not the school privatization firm Education Al­ America operates approximately 10% of all complete the run" for U.S. Senate. Gore ternatives, J,nc. to show positive results. Ac­ health care facilities. said in a statement later, that he wanted "to cording to the Pilot, EAI's flagship South­ The letter is signed by Archbishop Wil­ tell him in person that I hope he will end up pointe EleJillentary School has failed to liam H. Keeler of Baltimore, president of supporting the candidacy of Senator Robb improve ac�demic performance after three ' the National Council of Catholic Bishops; for reelection, as I do." years, reP'jlrted Dade County, Florida, Cardinal Roger Mahony of Los Angeles, In a related development, an indepen­ school officials. Test results at Southpointe chairman of the Pro-Life Activities Com­ dent committee formed by former Demo­ were no different from any of the public mittee; and Bishop John H. Ricard of Balti- cratic primary candidate Nancy Spannaus to schools in the system.

62 National EIR July 29, 1994 • I Bril1ly

• A MAJO_ITV of the Congres­ The superintendent said he likes the A reworded initiative was approved by the sional Black Caucus opposesan inva­ company's teaching program, "but to think elections board. sion of Haiti, the Philadelphia In­ that EAI is the answer to the woes of public • Term limitation: The Coalition for quirer reported on July 17. ''The education is absolutely ludicrous." He said Citizen Empowerment handed in more than black caucus has never voted on the that the test results there should quiet those 32,000 signatures to place an initiative on question of ani invasion, but if put to who contend that privatization is the answer the ballot to limit D.C. politicians to two a vote, memh¢rs on both sides say it to problems with the public school system. consecutive terms. It would not prohibit would lose." The Virginian Pilot lists this as part of non-consecutive terms . The coalition paid an ongoing series of setbacks for EAI: In some of its petitioners 50¢ a name in order • A NEW MOPER POLL shows June, the company admitted it falsely re­ to meet the deadline. that only 1 % df Americans think the ported test scores in Baltimore . The city A third initiative to allow "student-led Nazi Holocau$t did not happen. Last subsequently released its own study show­ prayer in the District's public schools," did year, a Ropell poll released by the ing that EAI had not improved test scores not meet the signaturerequirement to appear AmericanJewish Committee seemed and reported that it would delay expansion on the ballot. Backers of this initiative will to show that 2�% thought so. Howev­ of EAI contracts; also in June, Maryland continue to gather signatures up to the Dec. er, the polling was based on a ques­ state officials concluded that EAI had vio­ 27 deadline to appear on the April ballot if tion that contained a double negative, lated federal requirements for teaching there is a special c�ty council election. therebyskewing the results. learning impaired students. In Hartford, Connecticut, officials have backed off plans • A CLE�LAND federal judge to have EAI run the school system. Instead has issued a �training order against they have called for competitive bids from the school bo� to halt the layoff of several companies, including EAI, to serve 500 ofthe exPected 750 school em­ as a consultant for one year for no guaran­ Dakota lawmakers briefed ployees that had previously been an­ teed fee. on LaRouche forecast nounced. He s�d that if an agreement is not reached"he will impose budget Ron Wieczorek, a leader of the Food for cuts himself. Peace movement in South Dakota, testified on July 11 before a special session of the • FOUR LAiROUCHEDemocrats Riverboat gambling, term state legislature that had been convened to running for Congress in Virginia consider the .state Supreme Court's ban on have received lnotice of their certifi­ limitation on D.C. ballot video gambling. "I want to point your atten­ cation for the November ballot: Matt Two initiatives will likely be on the Novem­ tion to a much larger gambling problem," B. Voorhees,' 1st C.D., is running ber ballot in Washington, D.C., since the Wieczorek said. "One year ago Lyndon against incunilbent Herb Bateman required petition signatures were handed in LaRouche warnedthat the $14 trillion which (R); JerryBer3, 7th C.D., is the only at the July 11 deadline: our nation's banks are gambling in the fi­ challenger to incumbent Tom Bliley • Riverboat gambling: . Meeting the nancial derivatives market was sucking cap­ (R); William C. Jones, in the 8th deadline, after repeated challenges, was an ital out of the producers of our economy and C.D., faces ;incumbent Democrat initiative to permit riverboat gambling. also sucking capital out of transportation, James Moran; and Alan Ogden is run­ Brenda Parker, treasurer of the group back­ energy, and water systems. He urged mea­ ning in Lyndon LaRouche's home ing riverboat gambling, filed more than sures to deflate the bubble. The bubble is district (10th) against incumbent 45,000 signatures toward the required 35% bigger now. LaRouche now proves it Frank Wolf(R) . 16,435. Backers say that riverboat gam­ will inevitably burst, and soon, bringing bling is expected to generate $200 million down our entire financial system in a matter • LOUIS F J\RRAKHAN is a fac­ for the nation's capital and create 15,000 of days ." tor in the New York congressional jobs. Among those whom supporters re­ Wieczorek urged the lawmakers to re­ race, according to the Boston Globe cruited to gather petitions were homeless ject the allure of making up for falling state of July 18. F�an's Nation of Is­ D.C. residents, who were paid up to $1.75 revenues by turning to gambling: "The very lam is backing Eric Adams, a candi­ per name . Games permitted by the initiative same mob-related bankers who speculateon date opposing Congressional Black include, but are not limited to: baccarat, bin­ farm loans and farm commodities here in Caucus member Major Owens, be­ go, craps, keno, poker, roulette, slot ma­ South Dakota, and who are rumored to be cause of Oweqs' s denunciation of the chines, blackjack, and wheel of fortune. financing the high-stakes gambling casinos NOI in the H01Jseof Representatives. The gambling measure has survived two ...such as the friendsof Minneapolis mob Adams called bwens "a hustler" and court challenges. In May, an earlier river­ banker Carl Pohlad, are merelyfr ontmen for said, "FarrakhflIlis not the issue here. boat gambling initiative was thrown out be­ the bigger speculators ...of New York and It's these ab�oned buildings." cause of "inconsistencies in the language." London."

EIR July 29, 1994 National 63 Editorial

How to save Af rica

A first necessary step to reversing genocide in Africa, "estimate," the 1975-2000 popUlation growth is not is to stop the Cairo population conference. The African 90% or even 55%, but only 48%. Academy of Sciences is already on record, in a docu­ The West African nations ,including Nigeria grew ment released last November, opposing the headlong 100% in 1950-75, and will g*ow perhaps by 50% in drive toward making coercive population reduction 1975-2000; Egypt by 85% in 1950-75 and perhaps by into official United Nations policy. 60% in 1975-2000; South Africa by 107% in 1950-75 For the U.N. side, there is Cornell professor David and perhaps by 75% in 1975-2000. Pimentel, who proposes, in effect, to kill 4 out of every The policy reasons for th�s are clear. Beginning 5 people now living, in order to reduce the human race with the 1970s oil and comm04ity hoaxes and currency to 1 billion in the next century. W orldWatch Institute deregulation, the Internation,l Monetary Fund and is more modest, allowing that only l out of 5 individu­ World Bank cut off credit to African countries except als need be eliminated to get population down to 4 to finance exports , demanded and forced currency de­ billion. The U.N. 's offi cially preferred "low scenario" valuations, and stopped econorhicinfrastructure spend­ for collapse, opts for 2 out of 5 and an extended time ing through IMF "adjustment" and "shock therapy" lag into the 22nd century. programs. Many African countries have fewer railroad The fact is that the world is already on the road to a and road miles, fewer hospital beds, and less sanitation disastrous contraction in population. World population and fresh water capacity. today than in 1975; less do­ growth was at its highest in 1965-70. The picture in mestic food crop per capita; and civil wars annihilating Africais stark, as events in Rwanda merely highlight. their people. Somalia's popul,tion has fallen by 10%; There is no such thing as "explosive population" on Rwanda's has fallen by 3-4% in two months . Uganda's that continent, just the reverse. population is 20-30% infected with the fatal AIDS In 1950, as the colonialists of Britain, Belgium, virus . i etc . were losing their grip on their African colonies, A modem electrical pow�r production and trans­ Africa's population was 200 million people. Four times mission system featuring nucl�ar, coal, and hydroelec­ the size of Europe, it had 40% of Europe 's population. tric components, is the primarY parameter of a nation's The newly independent African nations' average popu­ standard of living and labor productivity. Americans lation density was 6-7 persons per square kilometer, produce about 9,500 kilowatt-hours per capita per year; about one-eightieth of some of the European nations Europeans, 8,500; Africans, 1,000- 1,500 . To have a which had subjected them, or one-fifteenth of Europe modem power sector able to dtsign, build, and operate as a whole. both plants and transmission systems, requires a labor In the first25 years of political independence, 1950- force devoted to this of at least 75-100,000 skilled 75, the African nations' combined population grew workers, engineers, and scientists, even for a nation 90% to 385 million: still only an average density of 13 small in area. Many African nations have populations persons per square kilometer. In 1975-2000, according of 10 million or less, and indiustrial work forces of 1 to the projections of international population agencies, million or less: too small to s�port a skilled electrical African population will have grown to 600 million, power sector of the needed siz¢, without large numbers an increase of not 90%, but only 55% in 25 years . of young workers entering thellabor force (rapid popu­ Moreover, these African population figures are scan­ lation growth) and the means to educate and train them dalously inflated. The most stunning example is the through the years of secondary or college-equivalent U.N.'s official population estimate for Nigeria, Afri­ education. ca's most populous country: 124 million. Nigeria's The truth is that Africa qeeds more people. The own 1991 census counted only 88 million people, 30·% world does not need, and should not tolerate, the poli­ less! If this adjustment alone is made to the 2000 A.D. cies represented by the planned conference in Cairo. I

64 National EIR July 29, 1994 SEE LAROUCHE ON CAB L E TV

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