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Executive Intelligence Review, Volume 7, Number 39, October 7

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Executive Intelligence Review, Volume 7, Number 39, October 7 fUr [THIS PAGE IS INTENTIONALLY BLANK] Editor-in-chief: Criton Zoakos Associate Editor: Robyn Quijano Managing Editor: Susan Johnson Art Director : Martha Zoller Circulation Manager: Lana Wolfe Contributing Editors: Lyndon H. LaRouche, Jr. , Christopher Wh ite, Costas Kalimtgis, From the Editor Uwe Parpart, Nancy Spannaus INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot Agriculture: Susan B. Cohen, Bob Ruschman Asia: Daniel Sneider Counterintelligence: Jeff rey Steinberg Economics: David Goldman Energy: William Engdahl Europe: Vivian Zoakos Latin America: Dennis Small Law: Felice Merritt O n Oct. 5 the West German population will go to the polls to elect Middle East: Robert Dreyfuss Military Strategy: Susan Welsh the country's federal parliament. The issues being debated in that Science and Technology: election are of strategic importance for the future of the Atlantic Marsha Freeman Alliance and the world economy. West Germany's crucial role in Soviet Sector: Rachel Douglas determining if there will be war or peace, depression or economic United States: Konstantin George United Nations: Nancy Coker growth, is detailed in our special report this week. We commissioned Webster Tarpley, an American journalist who INTERNATIONAL BUREAUS: Bogota: Carlos Cota Meza has specialized in European affairs most of the last decade, to bring Bonn: George Gregory, you this lively account of the real story behind the candidates and Thierry LeMarc what's at stake in this election. Chicago: Mitchell Hirsch Lately, U.S. foreign policy commentators have begun to smirk Copenhagen: - Vincent Robson Houston: Tim Richardson that, in the wake of the Polish crisis, Helmut Schmidt will be more Mexico City: Josefina Menendez "realistic" and turn toward Washington, away from the detente policy Milan: Muriel Mirak he developed in tandem with the French. Tarpley assesses Schmidt'ss New Delhi: Paul Zykofs ky Paris: Katherine Kanter, past record in depth, and lays out the role of two adverse leaders in Sophie Tanapura Schmidt's Social Democratic Party-British agents-of-influence Willy Rome: Claudio Celani Brandt and Herbert Wehner-along with the role of Schmidt's coali­ Stockholm: Cliffo rd Gaddy Washington D.C.: Laura Chasen, tion partner, the liberal Free Democrats. Susan Kokinda We have another special feature in this issue which takes you (European Economics): Wiesbaden behind the scenes in the Iran-Iraq war. Iraq is fighting for keeps Mark Tritsch and Laurent Murawiec against the fanatical regime of Ayatollah Khomeini. Iraqi President Executive Intelligence Review Saddam Hussein has determined that the economic development (ISSN 0 146-9614) is published weekly by New Solidarity International Press Service plans of Iraq and the rest of the Arab world will be sabotaged if 304 W.58th Street, New York, N. Y. 10019. Khomeini's Islamic fundamentalism and the Muslim Brotherhood In Europe: Campaigner Publications, Deutschl. GmbH. + Co. Vertriebs KG are not destroyed. Postfach 1966, D. 6200 Wiesbaden Middle East editor Robert Dreyfuss and Judith Wyer detail the Copyright I:> 1980 New Solidarity history of the conflict, the French collaboration in Iraq's economic International Press Service All rights reserved. Reproduction in whole or development projects, and how the outbreak of war has collapsed the in part without permission strictly prohibited. deal carefully being constructed between the Carter administration Application to mail at second-class postage rates pending at New York, New York and and the Ayatollah for release of the hostages before the November additional mailing ofJices. election. POSTMASTER: Send address changes to New Solidarity International Press Service, 304 W. 58th St., N. Y., N. Y. 10019 Subscription by mail for the U.S.: 3 months-$125, 6 months-$225, I year-$396, Single issue-$IO TIillContents Departments Economics 4 Editorial 6 A sunset policy for u.s. The American spirit lives basic industry? Two Democratic policy groups 50 Dateline Mexico have put forth opposing programs More than a campus battle for the future of u.s. steel and auto. The Stevenson-Bentsen version would phase them out. 51 Middle East Report Included: interviews with Behind the Turkish coup economist Lester Thurow, the Commerce Department's Fred 60 Congressional Calendar Knickerbocker, and 'revitalizer' Eli Ginzberg. 64 Energy Insider What about nuclear energy? 12 Banking Free banking zone on front burner. 13 Agriculture R&D cuts traded for Carter votes? 14 Gold Price jump not just a scare reflex. 15 International Credit EMS at loggerheads with IMF 16 Trade Review 17 Currency Rates 18 Business Briefs Volume 7 Number 39 October 7, 1980 Special Report International National 36 The Iraqi war to 54 U.S. Army found clean out Khomeini unfit for combat The offensive launched against Why some policymaking circles, Khomeini's Iran by Iraq's Saddam and some of America's top Hussein has caught Washington military officers, are alarmed at and London wholly off guard. It the Carter administration's could not only help stabilize the defense-spending and war-fighting Middle East, but significantly shift doctrines alike. the balance of strategic forces in �nancell.or Helmut Schmidt (r) with party favor ofthe European peace axis. 56 Another crisis and chairman Willy Brandt (I) and the Social another committee Democratic parliamentary leader, Herbert 38 Iraq shatters U.S.-Iran Wehner (c). The slogan: "Responsibility For The Carter administration is Our State." Photo: German Information pact on the hostages setting up both. Center. 40 Franco-Iraqi miliary deals 58 The real winner of 20 The significance of aid Arab economic buildup the debate the West German national elections Contributing Editor Nancy 42 Gromyko issues an Spannaus on the Reagan­ Helmut Schmidt's future policy icy warning Anderson display. choices, and the changing of the Dropping all protocol to reject guard in all the parties, will have a the U.S. "limited" nuclear war 59 Fusion energy bill decisive effect on the future of the doctrine. clears Congress Atlantic Alliance and the world's What the final bill looks like that economic well-being. Webster 43 Shanwar Bhutto on Tarpley relays a full-scale analysis . will expand fusion R&D. Muslim fanatics An exclusive interview on Pakistan 62 National News 24 Catholic bishops and Afghanistan with the son of attack Schmidt Pakistan's greatest leader. 25 Der Spiegel 46 Chopping block for attacks the EAP Polish industry The opponents of heavy capital 34 The philosophies of investment are taking over. An the candidates interview with a Polish correspondent stationed at the Vatican casts further light on how the destabilization occurred. 49 Who's running the Omega 7 threat 52 International Intelligence Editorial The American spirit lives Time was when the world stood in amazement and cratic National Policy Committee, a constituency­ gratefully looked on as American farmers, workers based, policy-formulating institution possessing an and businessmen forged ahead with irresistible intellectual sophistication that has not been seen in spirit to level mountains, carve out waterways, sow American public life since the great "American mighty cities in the wilderness, flood the world with System" economist Henry C. Carey advised Presi­ new and miraculous machines capable of subject­ dent Lincoln on how to lay the foundations for an ing nature to man's rational command. industrialization drive which transformed the Those were the 1880s and 1890s, the teens and U.S.A. into a miracle among nations. twenties, and again, on a smaller scale, the forties and fifties of this century. The world gave this The NDPC study phenomenon a name that stuck: American booster­ On Sept. 26, the NDPC released to the public ism. its first major study, Industrial Revival for the There is, however, something more profound 1980s. a reasoned and aggressive report which to the historical American phenomenon than this puts forward the following perspective: banalized notion of "boosterism." To better under­ First, the policy of all three major presidential stand it, we invite you to reflect upon last week's candidates of discriminating between "sunrise" key developments. and "sunset" industries and committing them­ True, the current business climate is viewed as selves to policies of condemning to death the gloomy. True, Paul Adolph Volcker, the chairman sunset industries (steel, auto, construction, chemi­ of the Federal Reserve, once again jacked up the cals, agriculture) is proven to be a policy of discount rate from II percent to 12 percent and the national suicide which would result in a cata­ prime rates went up correspondingly. True also strophic caving-in of our overall national produc­ that inflation continues to surge ahead. And pro­ tivities not later than 1985. If this policy is ulti­ duction to go down; and unemployment up. Our mately implemented, one can make the deduction own subscribers and clients are increasingly con­ that by the year 2000 our nation's economy would cerned and unnerved about upcoming economic be so transformed as to be unable to sustain a prospects. The war rages in the Persian Gulf and population larger than 75 million persons. the legions of bureaucratic mice are busy in Wash­ Second, the NDPC report outlines a compre­ ington preparing for "emergency controls," hensive set of immediate and intermediate meas­ "emergency allocations," "emergency rationing," ures to get the American economic engine surging and so forth. Should one be "optimistic" or "pes­ forward again, namely: simistic"
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