AIDS is now a threat to everybody Who said it first? EIR did!

On March 2, the New York Times Magazine finally admitted that AIDS could spread outside of the so-called risk populations of homosexuals and drug-users. EIR had the story six months before: that millions of Africans, men, women, and children, had the disease; that AIDS is a disease of economic breakdown, spreading under conditions of overcrowding, lack of sanitation, etc.; that quarantine was mandatory-and that the Soviet Union, in control of the World Health Organization, was playing the principal role in covering up AIDS' nature and spread.

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EIRIExecutive Intelligence Review (ISSN 0273--{j3l4) is the full resources of the Soviet state into drug-running into the West. published weekly (50 issues) except for the second week of July and fir.« week of January by New Solidarity Now, Bundy and friends propose to "legalize" the opium war begun International Press Service St. N. . . Suite 1612 K W 300. Washington. D.C. 20006 (202) 955·5930 by their friends Gvishiani and Andropov. Distributed by Caucus Distributors. Inc. We have all along stated that drug traffic is not a "social prob­ Executive Intelligence Review European Headquarters: Nachrichtenagentur GmbH. Postfach 2308. lem," but a national security issue. You be the judge. Dotzheimerstrasse 166. D·6200 Wiesbaden. Federal Republic of Germany Finally, I call your attention to our Economics lead (page on Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. 4), Michael Liebig the Israeli commission which has called on the country'stop bankers EIR. Haderslevgade 26, 1671 Copenhagen (01) III Dtllnuuk: 31·09·08 to resign for criminal misconduct, and an item (page 40) concerning

III Muko: EIR, Francisco Dfas Cov8lT\Ibias 54 A·3 the arrest of prominent Israeli figures for gun-running to Iran. How Colonia San Rafael, Mexico DF. Tel: 705·1295. O.T.O. these developments are related is spelled out in Special /tIptIII.ubsCriptioll .ales: Research Corporation, EIR's $250 Takatanobaba, Takeuchi Bldg., 1·34-12 Shinjuku-Ku, Tokyo 160. Tel: (03) 208·7821. Report, Moscow's Secret Weapon: Ariel Sharon and the Israeli

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ITillConteDts

Interviews Economics

45 Juan Gabriel Labake 4 IsraeU bankers cited for The persecution of fonner corrupt practices Argentine President Isabel The Bejski Report on banking in Martinez de Peron is discussed by Israel has the drug-connected one of her friends and associates. financi" elite in that country and throughout the world terrified.

Departments 6 Soviets, World Bank, and State'Dept. caught in joint' 11 Dateline Mexico AIDS war on Africa A new presidential frontrunner. 8 The strange business of i2 Medicine the EUropean AIDS: Jenner to the rescue? Industrialists Roundtable

51 Africa Report 10 Currency Rates Libya wins elections in Sudan. 13 Fore'gn Exchange 52 Mother Russia Bundesbank cuts loose from Chauvinists strut in Communist dollar. journal. 14 Energy Insider Report from Rio 53 Oil industry girds for depression. Soviets seek an ally in ,Brazil. 15 Banking Editorial 72 Merrill Lynch under fire. Now, the oil fields . 16 BusiJiess Briefs

Science & Thchnology

18 Hu�n life is 'cost effective' i Part II in Dr. Wolfgang Lillge's series on the life-saving potential of high-quality, high-technology medic$} care . Volume 13 Number 18, May 2, 1986

I .

Feature International National

38 Europe joins u.s. terror 56 Exposed: new moves to cut crackdown, expels Libyans American troops in European actions against Libyan Europe terrorists have picked up, but fall short of what is needed. 58 U.S. policy on terrorism stated 40 Mossad agents busted Testimony by John Whitehead of selling arms to Iran the State Department on April 22 Shown in Ibis official Department of Defense ' illusttation is a single, neutron-bomb powered 1986. x­ ray laser module popped up into space, shooting 41 Gorbachov's secret East !he entire Soviet ballistic missile force in its boost Mossad espionage and phase. Alternatively, Ibis module could sboot German agenda 59 down Ibe 10,000 Soviet warheads at leisure Richard Perle during the 20 minutes it takes them to travel to Mexico moves to stop !heU.SA 42 narcoterror coup 61 NOPe campaigns target . the drug lobby behind the 24 Japanese elite hear liberal Democrats strategic, economic 43 Narcotics mob's agents dimensions of SDI fear LaRouche associates in Colombia 62 Ohio: Candidates ,battle· A report from the Tokyo the dope mafia conference sponsored by the Fusion Energy Foundation and the 47 Trilateral-KGB lobby Schiller Institute. exposed in Spain 63 North Carolina: Croom As Gonzalez readies trip to for Senate hits defense 27 The revolutionary impact Moscow. crisis of the SDI on the growth of the world economy 50 Euthanasia foes try 64 Indiana: Georgia Irey emerges as the Lyndon H. LaRouche, Jr.'s stalling in Holland address to the conference. frontrunner 54 International Intelligence 65 Pennsylvania: LaRouche Dems take the state by Investigation storm

32 Trilateral panel talks up 66 Rainbow Coalition: Jesse legalizing the dope trade vows to run against LaRouche An elite group of bankers and businessmen have recommended legalizing drugs-and they're the 67 Eye on Washington same people who brought you GOP voter base wants LaRouche, Vietnam, the nuclear freeze, etc. too.

68 Congressional Closeup

70 National News

I· �TIillEconomics

Israeli bankers cited for corrupt practices

by MarkBurdman i

The banking centers of London, Geneva, Zurich, and New tices, particularly by Bank L.eumi. York are quaking with terror. An Israeli commission of in­ Should the same ruthlessness applied by Bejski in Israel quiry, headed by a courageous supreme court justice, has be applied by U.S . authorities, many "respectable" figures, issued a report indicting the heads of all the major ISraeli starting with White House Chief of Staff Don Regan and banks for having willfully acted to undermine the Israeli Chase Manhattan's David Rockefeller, may soon findthem­ economy, and has called for their resignation by the middle selves in extraordinary trouble. of May of this year. At the same time, the commission report opensup greater Two of the banking chieftains, Raphael Recanati , chair­ breathing space for the realtzation of the Marshall Plan de­ man of theboard ofIsrael Discount Bank, and ErnestJaphet, velopment of the Middle East proposed by Israeli Prime chairmanof theboard of Bank Leumi and Union Bank, come Minister Shimon Peres. Peres's biggest Israeli factional op­ from centuries-old European families. Although the report ponent on this question is Minister of Trade and Industry does notspecifically mention laundering of drug-related dirty­ Ariel Sharon; as documented in Moscow's Secret Weapon: money as the crime investigated, it does urge Israel's attor­ Ariel Sharon and the Israeli Mafia. a recently-released EIR ney-generalto set up a committee to investigate banks' illegal Special Report, the dirtybanking circles of Recanati , Japhet, activities. and others, are co-extensive with Sharon's internationalsup­ The Commission of Inquiry's 6OO-page report was com­ port. piled by a groupof prominent Israelis under the direction of Peres himself, immediately after the issuance of the re­ SupremeCourt Justice Moshe Bejski, and was released pub­ port, traveled to Paris over the April 22-23 period to speak licly late in the evening of Sunday, April 20. As news of the with the French government, and before the European Parlia­ report spread around the world, sensitive financial centers ment in Strasbourg, to mak� an appeal for European support werequick to react. The April 22 Financial Times of London for his Marshall Plan. commented, "The earthquake which rocked the Israeli bank­ The subject of the Bejski Commission of Inquiry is the ing system late on Sunday evening probably measured a good Israeli bank-share collapse that occurred in October 1983. 8.5 on the Richter scale." The report was an indictment of During that month , shares held by Israeli depositors in the the "financial mores and morality of the nation's leading major banks-Bank Leumi. Discount Bank, Bank Hapoal­ figures," and "nothing quite like" it "has happened before in im, United Mizrahi Bank, and others-collapsed, and the Israel." Israeli shekel plummetted. The Times of London said the banking community in The Bejski Commission was the outgrowth of an inves­ Israel is "in a state of deep shock afterthe publication of the tigation initiated by the Knesset (Parliament) Ethics Com­ devastating findings." mittee, headed by David Libai. Libai is said to be a close The tremors extend way beyond Israel itself. U.S. sources political ally of Peres. say that the constantly expanding corruption scandals in New In simplest terms, the Commission charges the big bank York City are intimately tied to corrupt Israeli banking prac- heads with willfully swindling the Israeli population. It claims

4 Economics ElK May 2, 1986 that the bank chieftains engineered the bank-share collapse Shakespeare, but because they are attempting to turn Israel, of October 1983, by manipulative insider-trading practices, today, into a "New Venice" in the Mediterranean. thatallowed the banks to speculate in foreign cUrrency, buy­ Said one Jerusalemsource, in an April 22 discussion with ing dollars and selling shekels, in some cases by using their EIR: ''The Bejski report will not be pleasant for Raphael special r,elationships with their own branches in major finan­ Recanati, nor for his reputation in. Switzerland. His family cial centers abroad. One bank head, Aharon Meir of the appears on the exclusive aristocracy list of European fami­ NationalReligious Party-linkedUnited Mizrahi Bank, is also lies, the so-called Gotha' list of all the top aristocracy of charged with extensive falsification of documen�; in the Europe. His family is large, and has J;IWly international con­ report's actual wording, "We found irregularities at United nections." Mizrahi Bank which were graver than those found at other banks." Sholom Aleichem's revenge London's Financial Timesreported April 22 that it "calls Despite the efforts of the Anti-Defamation League of in the strongest terms for a bevy of the most senior bankers B'nai B'rith and associated extortion rackets to claim that in the country to be banned from banking for life." anybody who accuses a Jewish-name banker or gangster of On EmestJaphet, the chairman of the board of Bank criminal activities is an "anti-Semite," it is historically the Leumi and Union Bank, the report asserts that his activities case that ever since Moses came down fromMount Sinai and in connection with manipulation of bank shares were "unac­ saw the Hebrews worshipping B8al, thegreatest indictments ceptable in every way from start to finish, and contributed to of Jewish-name gangsters and usurers have come from Jews the crisis of October 1983." Therefore, "Mr. Japhet is not themselves. suitable for his position in Bank Leumi and UJiion Bank, or In modern terms, this is one of the underlying themes in for any other senior position in the Israeli banking system, in the tradition represented by the author and dramatist of the any of its branches here or abroad." It recommends that he last century's eastern European, primarily Polish, "Yiddish resignfrom his post. Renaissance," the great Sholom Aleichem. His plays and On Raphael Recanati, chairman of the board of IDB short stories were aimed at ennobling the Jewish "common Bankholdtng Co., and its subsidiary, Israel Discount Bank, man." It was thetype of Jew portrayedby Sholom Aleicbem, the commission says that he "is not suitable for his position thathas always been despised by the"Hofjuden," or "Court­ in Bank Discount or in IDB, or in any other senior position Jew" bankers. in the Israeli bankin� system, in its brancheshere or abmad." The "revenge of Sholom Aleichem" might be a clue to By April 22, two of the individuals named in the report, the vehemence of the Bejski report. Said a Tel Aviv insider: Bank Hapoalim head Giora Gazit and Bank of Israel Gover­ "You have to understandBejski. The keyto him is not power, norMoshe Mandelbaum, had tendered their resignation. Re­ it's something else.He's of Polish origin, be's one of those canati,' Japhet, and Meir have, by contrast, decided to defy very honest, traditional Polish types." the report's recommendation of resignation.Israeli law, as Another insight into the same mentality is expressed in presently constituted, prevents firing of a bank director, and an April 22 Jerusalem Post op-ed, entitled, "A Sacred Cow to change the law would require a parliamentary action. Not Slaughtered,"written by Post finance reporter Pinhas lan­ only would this take a long time, but these threeall have what dau, in the form of a ''Thank you" letter to the Bejski Com­ is tantamount to paid operatives in the Knesset: Meir among mission: "You . . .got to the heart of the matter: that in a the National Religious Party parliamentarians, and both Ja­ country governed by the rule of law,n o group of people, be phet and Recanati among various parliamentarians of the they bankers, or senior civil servants or whomever, can get Liberal and Herut blocs of the Likud Party. away with selling the public an entire .financial·system based Former Finance Minister Yitzhak Modai, a Liberal, is, on misrepresentation, distortion, lies, breach of trust, and for example, a close ally of Recanati and reported recipient even fraud, and then, after its collapse, maintain that it was of Recanati family "political largesse."It is believed bX more all beyond their control and continue with business as usu­ than one Israeli political observer, that Peres insisted on al .. ..And if, as the optimists among us believe, this great

Modai's sacking earlier in April, precisely to open up the blow against the economic oligarchy that has ruined us, and political climate for release of the Bejski document. on behalf of freedom and its accompanying rewards and The indictment of Recanati will have enormous interna­ punishments, extendsitself throughoutour society,and even tional repercussions. The Recanati family is an ancient to the delinquent political system that holds us in its thrall, "Hofjuden" ("Court Jews') family, based essentially in Sa­ then that, too, will be partly your doing .. ..For the·mo­ lonika, Greece, but with extensive connections in Venice and ment, as we prepare to celebrate the festival of freedom other capitals famous for skullduggery. Recanati family­ [Passover], there is that unmistakable feeling of being at a Venetian sponsorship of projects to revive the mystical�gnos­ turning point, that the moral degeneration at the top has been tic "Cabbala" dates back to the 13th and 16th centuries.The exposed and will beexorcised, however painfulthat may be. Recanatis today might best be termed "merchants of the New You, the genuine representatives of the people, have reas­ Venice," not only representing the cruel usury excoriated by. serted our sovereignty. . .. Thank you:'

EIR May 2, 1986 Economics S Soviets, World Bank, and State Dept. caught in joint AIDS war on Mrica byWarren J. Hamennan

The author is the director oJ EIR's Biological Holocaust Task mitted, that the WHO was deliberately camouflaging the true Force. extent of the AIDS pandemic in Africa: "In Africa, there are 30 hfficially reported AIDS cases, - Incontrovertible evidence exists that high-level Soviet infec­ but the WHO itself, as repeated today by Dr. Assaad [the tious disease experts, key operatives of the u.s. State De­ Soviet-controlled nominal head of the WHO AIDS Task partment,and officialsof the World Bank arejointly encour­ Force] here, -says the number may be one hundred-fold that, aging the rampant spread of AIDS and other lethal diseases and, illsome regions of Afrida, the situation may be in excess in Africa as a means to brutally reduce Black African popu­ of that now in New York City. Assaad said this, and was lation levels. supported by Dr.Mann. M�ybe publicly the WHO chooses The agency through which the Malthusian population­ to downplay the situation somewhat. . . . And, I think they control operation on Africa is being run is the Soviet-con­ are deserving of American [financial] support." trolledWorld Health Organization (WHO) based in Geneva, Bart also admitted that there was a "consensus" at the Switzerland. A two-day conference of potential "financial WHO meeting that there was no evidence for mosquito­ donors" for theW HO's AIDS program began at WHO head­ transmission or other environmental factors stemming from quarters in Geneva on April 21. The,Soviet-controlled Com­ economic collapse and the spread of AIDS in Africaand other municable Diseases Division of the WHO implored several tropical areas.In fact, the meeting denounced the scientists countries-Australia,Austria, Canada, Belgiurn,,Denmark, who have reported on Belle Glade, Florida, an American France, West Germany, Japan, the Netherlands, Norway, town where a large incidence of AIDS among the "non-high­ Sweden, Switzerland, the United Kingdom, and the UnitQd risk" population coincides with abysmal living standards and States-for official donor-money for dealing with AIDS. tropical health conditions, as "kooks." The Soviets are,reportedly, not going to financially contrib­ ute to the event but will merely' "implement" the program Soviet confessions on Africa through Dr. Sergei K. Litvinov's operation in the WHO EIR investigators have receivednew information directly Communicable Diseases Division. A delegation from the from the head of the Europelan Bureau of the WHO located World Bankis also attending. in Copenhagen, Denmark--a Soviet named Dr, Bytchenko. In a 1977 major policy address, then-World Bank presi­ During the course of a receat investigation, Dr. Bytchenko dent Robert McNamara stated: ''There are only two ways of admitted the following: preventing a world with 10 billion inhabitants. Either the "I doubt there will be aily kind of bilateral help by the birth rate drops, or the death rate will rise. There are, of Soviet Republic to African countries to help them on AIDS. course, many ways to make the death rate increase.... For the U.S.S.R., AIDS is nbt a problem.In Africa, yes, the Famine anddisease arethe two oldest. " situation is very alarming, in'Zaire, Uganda, Central African At thejust-concluded Geneva WHO meeting, theUnited Republic. A high percentage of children are infected, be­ States was represented by Dr. Kenneth Bart, of the U.S. cause of poorblood and blood products. Thereis also a severe Agency for International Development (AlP) of the U.S. lack of kits to test for AIDS in Africa. But this problem has State Department,which, in past years,has developed close not come to the Soviet Union, there are almost no AIDS relations with, and has even funded programs of, Soviet cases.So, I doubt very muth the Soviet Republic will do WHO big-cheese Sergei Utvinov. The U.S. State Depart­ anything special in the Africancountries." mentis notoriousfor pursuingthe programknown as "Global During his admission, Dr. Bytchenko lashed out at the 2000,"which is a blueprintfor drasticallyreducing the world's published EIR charges of Sdviet complicity in African gen­ population by 2 billion inhabitants, beginning with black ocide: "I've seen these publications, they arenonsense. This Africans, by the year 2000. type of virus has hardly even reached the U.S.S.R. and the When caught off-guard by an interviewer, Dr. Bart ad- East countries, and when it has, it has come fromAfrica," he

6 Economics EIR May 2, 1986 said."The virus has been unknown to scientists and research­ serious i�une defect.Five of seven others studied. for a ers,and has only recently been isolated." shorter period showed the telltale defect as well. The immu- . One eyewitness in Europe recently overheard officials of nological change "is a strong predictor of the future devel­ the WHO under Soviet control, braggingand chuckling over opment of AIDS," according to the report. the way in which they "carve down " the number of reported Supporting the conclusion that 100% of those infected cases of various diseases, by as much as one-half to two­ will manifest some form of the disease,is another study now thirds in some instances. under way at the New York University School of Medicine. Leading international medical authorities and scientists In results soon to be published on a study of 85 individuals on two continents are fully confirming the charges of EIR's infected-namely, having tested positive to antibody pres'" Biological Holocaust Task Force,that the Soviets have been ence-over the course of five years, the researchers report caught red-handed in the mass murder of millions of Afri­ that an individual not showing any manifestation of the dis­ cans,through encouraging the pandemic spread of AIDS and ease is "an extremely rare occurrence. " . other diseases.There is also a growing consensus among the same medical and scientific circles,to admit that EIR has Universal screening now been right about the causal relationship between widespread It is against this background that leading doctors are be­ economic collapse and the spawning and spread of deadly ginning to echo EIR's call for mandatoryscreening, as the pandemics. Boston Globe of April 4 reportedunder theheadline "Medical The WHO's "Communicable Diseases Division," under Editor Calls for Mandatory AIDS Tests": the Soviet command and control of Dr.Sergei K. Litvinov People at risk for developing Acquired Immune and his associates,is complicit in the African genocide,by Deficiency Syndrome should be made to WldergOblood its suppression offacts,its denial of economic realities. and tests for antibody to the AIDS vinis"to find out who its emphasis on "barefoot medicine." Several world authori­ is infected and who is not," the editor of the New ties have characterized the Soviet-controlled Communicable England Journal of Medicine asserted yesterday."I Diseases Division of WHO as a "malevolent bureaucracy," think there ought to be mandatory testing now," Dr. which has impeded mass vaccination programs in Africa in Arnold S.ReIman said at a Boston meeting on AIDS particular.In fact, leading Soviet authorities of the WHO and public policy sponsored by the American Society have just concluded a meeting on AIDS in Graz, Austria, of Law and Medicine.. . .Relmim urged the federal where these policies were pursued. government to wage "811-out waron this disease" and reminded his audience "that the U.S.ConstitUtion al­ Ten million Africans to die lows restrictions on the activities' of those who are a A just-rel�ased study shows that, of those who are in­ threat to the public health.I'm not suggesting that fected with the AIDS virus,100% develop immune-system [those who test positive for AIDS anti bodies] be quar­ defects which foreshadow full-scale AIDS itself.That is, the antined," ReIman said. "But it seems to me that we disease breaks out in 100% of the infected individuals over have to balance our concern for individual freedom time.Giv en the fact that estimates of the number of Africans and law with our concern for the general wel­ infected with the AIDS virus range between 10 and 30 mil­ fare.... " lion, the implications arestaggering: Over the next fiveyears, more than 10 million Africans will die of AIDS. According to theBoston Globe account, Dr. James Cur­ In the United States,where approximately 2 million in­ ran of the Atlanta-based Centers for Disease Control(CDC), dividuals are acknowledged by federal authorities to be in­ who was also present,objected on the groundsthat screening fected with AIDS,that number of individuals will sufferfrom is "discriminatory" to homosexuals. Curran's statements thedisease itself within the next decade.Since the disease is representedthe standard rationale by which the Atlanta CDC 100% lethal,all those who suffer from the disease will die. has unwholesomely coveredup the AIDS threat,and actually In the new study,nearly all of 22 Danish subjects who deployed itself against the implementation of standardpublic had AIDS antibodies in 198 1, but did not manifest signs of health procedures.The CDC is the domestic American af­ the disease itself at that time, subsequently developed a filiate institution of the World Health Organization. �down of the immune system, according to the April The CDC is not alone in its opposition to the United issue of Annals of Internal Medicine. In a recent Boston States pro�ting its citizens from this deadly menace. The

Globe interview with one of the study's authors,Dr . . James Soviets also agree that the U.S. pqpulation should not be J.Goedert of the National Cancer Institute,Dr. Goedertdrew protecte4! A leading Soviet official at the World Health the conclusion that his study demonstrated that over time Organization privately asserted in April: "Screening the virtually 100% of those infected with AIDS will develop the American populationwould be extremely expensive, costing disease.A team of Danish and U.S.researchers jointly stud­ billions of dollars. It's not necessary to n scree everybody, ied 22 men who had AIDS antibodies in 1981. Eleven of 12 but those who are exposed,should be screened.· At present, infected men followed carefully for 29 months,manifested a screening everybody in the U. S. is 1'I(Jt the correct decision."

ElK May 2, 1986 Economics 7 The strange business of the· European Industrialists Roundtable " by C. Polhem from Brussels

On April 4 in Brussels, Swedish financier and Volvo chair­ The two proposals of the Roundtable presented publicly man Pehr G. Gyllenhammer met with European Economic at Brussels on April 4 are indicative of the game afoot. The Commission President Jacques Delors. The meeting was cu­ study on "Promoting and Financing Large-scale Infrastruc­ rious in a number of ways, even the public portion. The ture," calls for a "new deal between the public and private controversial Swedish businessman was in Brussels in his sectors" involving not only European governments, but, sig­ capacity as chairman of a grouping of some of Europe's best­ nificantly,the supranational 9russels-based EC. The scheme known companies, the so-called Roundtable of European proposes "new financial instrument�" such as tax-exempt Industrialists. bonds, and EC regional development funds. Guarantees would At the press conference following the private discussion be made by the EC treasury. between Gyllenhammer, several other Roundtable heads of A spokesman for Gyllenhammer in Paris told this writer European companies, and Delors, the group released a con­ that the proposal is modeled on various New York "public sultancy report prepared by a Rhode Island firm, Telesis. The authorities." These authorities float bonds, pyramiding debts, report, '.'Promoting and Financing Large-scale Infrastructure soaking taxpayers for billions, to finance bridges and tunnels Projects in Europe," and a second report issued a few days which remain in a condition of seemingly constant disrepair, earlier, "Making Europe Work," were the focus of Gyllen­ although tolls keep climbing, and they have paid for them­ hammer's remarks to the press. He said the studies would selves many times over-a kihd of medieval "robber baron" . form the basis for an "ongoing dialogue" between his system with modem Wall Street trappings. The public as­ Roundtable and the European Community. sumes all· risk, while the pri\rate insider firms take all the That was all. The most significantaspect of the brief press profits. . conference was that nothing was said by anybody. It was a But, a senes of major transportation projects, as envi­ "puff' affair, a "photo opportunity," as the media terms it. sioned by the Gyllenhammet group, includes a rail-tunnel The entire affair became doubly curious when framed linking Scandinavia and continental Europe, a "Balkan Link," against the fact that Mr. Gyllenhammer left Volvo's Goth­ more accurately termed a Bulgarian Connection, between enburg, Sweden headquarters amid a wave of scandals and Austria and Bulgaria. A thiid scheme is a bridge linking chargesof mismanagement. Stockholder criticism of Gyllen­ Sicily with the Italian mainland. The Roundtable wryly calls hammer in Sweden has been on page one since the shadowy the grand scheme "Missing Links." "Fermenta affair," involving Egyptian imposter El Sayed, The "full employment" component of the Roundtable and an insider stock-trading scandal involving Gyllenham­ strategy is described in "Making Europe Work." The proPos­ mer and several cronies, known as the "Leo affair." Business als are wittingly drafted as a cilepression strategy. The report Week of March31 featuredap iece titled, "Volvo's 'Emperor' cites "the vigor of the submerged or black economy" as Faces Rebellion in the Ranks." That article quoted one Lon­ "instructive. " "Black" employment, of course, avoids offi­ don broker, "Gyllenhammer is just a law unto himself, and cial taxes, and also avoids companies having to pay adequate he gets rid of anybody who would get rid of him. " benefits or provide regulated working conditions. The Gyl­ lenhammer/De Benedetti mltfia therefore demands a "re­ Who are the Knights of the Roundtable? drafting of job protection la�!!," institution of labor laws The image cultivated by Gyllenhammer'� Roundtable is "sensitive to the real market,i' "greater geographic mobility a group of Europe'smost dynamic, far-sighted, and success­ in the labor market," and wage slashing, termed, "increased ful entrep�neurs, aided in this by cover stories in such pop­ wage differentials." ular journals as Time and Newsweek. In fact, the group is a In short, like the secretive Mont Pelerin Society of "free tightly knit mafia of stock market manipulators who are sys­ market" economist Milton Friedman, they demand that living tematically targeting European industry for takedown. conditions of the gainfully erUployed industrial workforcebe

8 Economics EIR May 2, 1986 cannibalizedto prop up select multinationals. ics firm Siemens, Wisse Dekker of Philips Industries, and The citation of the "black economy" as a model is not George Besse of France's Renault, all companies with long­ accidental. The April report of the Union Bank of Switzer­ standing involvement in Eastern European markets. land notes, "Although in most of the economic sectors of the These are the core of European multinationals whose industrialized world the period of turbulent growth is over, profits stem fromlooting of state treasuries, as in the case of there appears to be one 'sector' that is enjoying unalloyed Renault, which has lost more than IObillion francs over two prosperity everywhere: the underground economy." The re­ years. Or, they are the corporate-takeover wolves, who in­ port defines the underground economy as both "working stitute mass layoffs and asset stripping of victim companies, black" (legal work which illegally seeks to escape taxes) and as in the case of Olivetti's De Benedetti. "criminal activities such as the production and distribution of illegal drugs." Banker Roberto Calvi wrote a letter The Milanstock 'boom' The spectacular recent rise of shares traded in the once to one Monsignor Hilary qfthe insignificant Milan Bourse is indicative of the Roundtable Vatican askingJor an urgent strategy for Europe, every bit as well as their Schachtian meeting with the Pope to explain labor policies. There is a giant game going on. Most of it is being run top down by three groups, De Benedetti, Agnelli, details oja plot he had uncovered and the Venetian insurance giant Assicurazioni Generali. to destroy thefinancicil base qfthe The affairs of the Roundtable of European Industrialists Vatican. He cited "De Benedetti areas murky as the affairs of its chairman. It was formed in 1983, reportedly after discussions between then-European and others." In a second letter to Community (EC) Industry Commissioner Viscount Etienne Cardinal Palazzini, he implicated Davignon, today chairman of the Belgian royal-family's Vatican Secretary qfState Casaroli. holding company, Societe Generale de Belgique. The official story is that Davignon, author of ttre notorious "Davignon Within days qfthe letters, Calvi Plan ," which collapsed European steel capacity by 'almost was dead. one-third over a six-year period, wanted a group of some of Europe's more "innovative" businessmen to "galvanize Eu­ ropean governments into action on tough industrial policy These companies alsohave morethan casual involvement issues," as one close observer in Brussels put it. So, Davig­ with former U.S. Secretary of State Henry Kissinger. Gyl­ non proposed this to his friend Gyllenhammer. lenhammer was a co-founder of Kissinger Associates in 1982. The composition of the group is far from random. Gyl­ ASEA's Nicolin is a client of Kissinger Associates. Venetian lenhammerimmediately got Umberto Agnelli of Italy's Fiat, financierDe Benedetti is a long-standingintimate of Kissin­ the auto company with extensive Soviet ties and 17% owned ger. So is Agnelli. Merkle's Bosch Foundation is a funder of by Libya's Qaddafi. Carlo De Benedetti, the wheeler-dealer Kissinger's Trilateral Commission work. After Kissinger Venetian financier and chairman of Olivetti. Sir Kenneth Associates' founding, in 1983, Kissinger was personally in­

Durham,head of the Anglo-Dutch food giant Unilever, is volved in organizing his Roundtable 'friends to create a cor- _ alsoon board, as was Ian MacGregor, now head of the British porate "coUDtergang" to President Reagan's M�h 1983 National Coal Board. MacGregor worked closely with Dav­ Strategic Defense Initiative. The resultwas an obScureJoint ignon to destroy British steel capacity, authoring the Lazard venture based in Holland, named Euroventures BV, funded Plan, which called for not only shut-down, but dynamiting by mon�y from Fiat, Olivetti, ASEA, Volvo, Bosch, and of blast furnaces to ensure their retirement. Britain's indus­ others to help "strengthenEurope 's industrialand technolog­ trial rubble heap today is testimony to his savage austerity ical base," but its capitalization was only $30 million. and union-busting approach. Close Gyllenhammer business associate Curt Nicolin, What are they up to? head of ASEA, the Wallenberg Group company, which was The Swiss bankers' daily, Neue ZUrcherZeitung, on April involved in illegal transferof sensitive U . S. electronics tech­ 17 asked, "Is De BeJiedetti primarily Olivetti president or a nology to the U.S.S.R. in 1984, found time to join. Other private financier?" They note the Venetian financier's com­ chums included TrilateralCommission member Hans Merkle plex web of financial holding companies, including Cofide, of Robert Bosch GmbH of Germany, Helmut Maucher of Financial ServicesHolding Company, andltaliana di Servizi Swiss Nestle, and Klaus Liesen, chairman of Ruhrgas of Finanziari. Germany, the heart of the 1982 Soviet gas pipeline battle. De Benedetti, like Gyllenbammer, is up to his ears in Then there is Karlheinz Kaske of the gi�t German electron- . stock-market manipUlations, takeoveroperation s, and �set-

EIR May 2, 1986 Economics. 9 strippingoperat ions. In recentmonths, he has bought Butoni food group and a series of other companies. He is one of the I few in Italy with liquidity in the depressed economy. c urrency �tes , However, as De Benedetti and Agnelli move to grab up major Italian companies, revelationsare coming out in Italian press, unreported elsewhere,that are a potentially explosive The dollar in deutschtmarks indictment of the entire GyllenhammerlDe Benedetti New YtII'III8Ie�IIxIna Roundtable network. On April 13, Panorama, the Milan IT weekly, carried revelations from recently releasedletters of 2.50 i murderedVatican financier Roberto Calvi of Banco Ambro­ ; siano, who was found hanging Freemasonic cult fashion un­ 2.'" der Blackfriars Bridge in London in June 1982. Shortly be­ - 2.38 1 11'"1� fore his death, on June 6, according to Panorama, Calvi � "- ,,- wrotea letter to one Monsignor Hilary of theVatican in which 2.20 V CI the banker asked for an urgent meeting with PopeJohn Paul

II to explain details of a massive plot he had uncovered to 1.10 destroythe financialbase of the Vatican. Calvi, accordingto 3/5 3112 Jl19 Jl16 412 419 4116 4123 the new revelations,explicitly cited "De Benedetti and others The dollar in yen who did and are still trying to grab the assets of Banco Am­ New York late afternoon lixlna brosiano." Accordingto the same Panorama revelation,Cal­ , vi, in a second letter to CardinalPalazzini, implicated Vati­ 200 can Secretary of State Casaroli in the De Benedetti plot.

Within days of the letters, Calvi was dead. 190 The day before, on April 12, Calvi ass�iate Umberto 180 Ortolani, told Europeo magazine that he has detailed reve­ .- ", -- lations regarding "political and financial warfare which has "'" " been fought for years in Italy." Ortolani stated that "a name 170 � for all to recognize-Trilatetal [Commission]" was behind i 160 this warfare and that one purpose was to prevent a feared 3/5 3112 3/19 3/. 412 419 4116 4123 merger of the two great centers of Vatican finance, Calvi's The dollar in Swiss francs Banco Ambrosiano and Carlo Pesenti's financial network. New York 181e ...... 1IxIIII De Benedetti is considered to be "Trilateral" because of 1 his intimate personal friendship with Henry Kissinger and 2.20 other Trilateral Commission members. De Benedetti had an , involvement with Calvi's Banco Ambrosiano as vice chair­ 2.10 man in 1981. There are allegations that he stayed just long , I , enough to set up the Vatican-tied bank for failur;e. 2.00 ' On April 16,' Carlo De Benedetti appeared in Paris to 1/ .

announce plans for a French imitation of hi's Italian financial 1.90 � """'" l\,-. empire. He will buy major Frenchfood industry shares, and � � build a new European motor parts group around a takeover 1.80 ! 315 3/U 3/19 3/16 412 4116 4123 of the French Valeo company. 419 That is interesting, since one demand of the Industrialists' The British pound in dollars 181e.�IIxIna Roundtable is Europe-wide standardization of parts for au­ New York tomobiles and other things, something which could make 1 Valeo enormously profitable. 1.50 - De Benedetti , coming to Paris the day after French Fi­ 1.40 lAi II- nance MinisterBalladur announced plans for sellingoff French � .. state industry,also announced that he has formed yet another 1.38 financialholding company, Ceres, owned by his CIR holding

company in Italy together with Compagnie Financiere de 1.20 Suez, Banque Nationale de Paris, UAP insurance, and Ban­ "

que Worms. "I hope to do in France what I have done in 1.10

Italy," the Venetian financierboasted . That alone should be 315 3112 31·19 3126 412 419 4116 4123 reason enough for an investigation by French authorities.

10 Economics EIR May 2, 1986 " Dateline Mexico by Josefina Menendez

A new presidential frontrunner unions and the political networks of The unveiling of Del Mazo as energy minister was just thefirst of ' his father, governor of Mexico state the bombshells that have got Wall Street veryperturbed. and secretary of agriculture under President AdolfoL6pez Mateos (1958- 64). DelMaz o's father was so close to L6pez Mateos that the President be­ came Alfredo's godfather. The elder DUring the week of April 17-22, a the frontrunner for the presidential Del Mazo supported L6pez Mateos in political earthquake shook Mexico's succession in 1988, which has been the historic ,deeds that moved the power structures and paved the way fought over between the treasury, in­ world: the founding of the Non­ for a realignmentof forces which may terior, and budget secretaries. It may Aligned Movement with Nehru of in­ lead to important changes in the dis­ even herald changes in economic pol­ dia, Sukamo of Indonesia, Nasser of astrous economic programs that have icy, which has up to now toed the In­ Egypt, and Tito of Yugoslavia among been implemented in this country . ternational MonetaryFund line. others. It was also L6pezMate os, fer­ When, the morning of the 17th, it It should be noted thatAlfredo del vently supported � Del Mazo senior, was announced that Secretary of Min­ Mazo himself is a product of banking who nationalized the electrical indus­ ing and Energy Francisco Labastida and financial networks. He was in the try, in those days owned by Mexican Ochoa would be elected goVernor of Cremi Bank, was vice-president of the Light and Power Company, run in , the red-hot state of Sinaloa, the press National Banking Commission, and Mexico by Gen. Maxwell Taylor of went into a tizzy in favor of one can­ on the public-debt administration of Vietnam infamy. didate to assume the importantvacan­ the treasury . He was also adviser to And it was Adolfo L6pez Mateos cy of thisstrategic cabinet post: Mario various semi-public and private firms. who invited the President of France, Ram6n Beteta, head of the state-owned However, before accepting the state Gen. Charles de Gaulle, to Mexico. oil company Pemex, ex-treasury sec­ of Mexico governorship, he ran the De Gaulle for the , first and only time retary, former presidential candidate, Banco Obrero (the labor bank) backed in Mexican history spoke from the and a good company Pemex, ex-trea­ by the top leader of the MexicanCon­ presidential balcony to thousands of sury secretary, former presidential federation of Labor, Fidel Velazquez. Mexicans, offering his support to NOD­ candidate, and a good pal of the inter­ This support, together with that of Alignment and to a new world eco-

national financial community . The trio his friend Miguel de la Madrid, at the nomic order. , , was rounded out by presuming that time a pre-candidate for President of Mexico's creditors see in the Del Beteta would be succeeded at Pemex Mexico, and that of Gustavo Carbajal, Mazo naming and other political by Gustavo Petriccioli, now director then chairman of the ruling PRI party, changes the possibility of a shiftin the of Nafinsa, the state-run finance com­ was what let Del Mazo bring a group country's attitude towiud the foreign pany . His post would go to the current different from the Hank Gonz8lez gang debt problem and the conditions of ambassador to the United States, Jorge then running Mexico state, into that austerity demanded by the interna­ Espinoza de los Reyes. This team, the crucial state in 1981. One of Del Ma­ tional Monetary Fund. As the Wall mediaopined, would march in the front zo's main objectives has been to dis­ Street Journalput it on April 21 , com­ door of the presidential succession in mantle, as far as possible, the param­ menting on the new nominations, 1988. ilitary apparatus set up by Carlos Hank "Pessimists say it will be nearly im­ This script was still being taken for GonzaIez and his predecessorJimenez possiblefor Mexico to implement any grantea by most of the national press Cantu, as their fortress in the state of truly far reaching new economic pr0- on the morning of April 19. But the Mexico. gram. The tapadismo [unveiling of whole costly campaign fell apart a few At that time, Beteta asked for the candidates-ed.] works against such hours later, when President Miguel de governorship of the state of Mexico, drama. Candidates are not supposed la Madrid made his surprise an­ and was rejected by President Jose,L6- to draw any but the most innocent at­ nouncement, that the new energy sec­ pezPortillo and Fidel Velazquez. tention to themselves. . ." In short, retary would be Alfredo del Mazo, Del Mazo is not just a close friend facing an electoral season, they might governor of the state of Mexico. and "compadre" of the President. His hesitate to impose the IMF's de­ The decision turns Del Mazo into main support comes from the labor mands.

ElK May 2, 1986 Economics 11 1I j

Medicine by John Grauerholz, M.D.

AIDS: Jenner to the Rescue?

to reach it. I The Vaccinia research shows there is no shortage of ingenious Two gtioups, one working out of . approaches to disease, ifthe political will exists. die National Institute of Allergy and Infectious Diseases and the National Cancer Institute, and the other out of the biotech firm Oncogen and the Vi- . rology Division of Usamriid in Fred­ erick, Maryland, were able to insert T wo recent articles in Nature mag- Use of live viruses is sometimes the gene forthe outer envelope of the azine (April 10, 1986) describe associatedwith eruption of the disease AIDs virus into a Vaccinia virus and expressionof the envelopegene of the which the vaccine was designed to then get thegene expressed in infected AIDS virus, HTL V -III/LAV, in a re- prevent. This has occurred with the animals. No other AIDS virus genes combinant Vaccinia virus. Vaccinia, oral poliovaccine , which has beenthe wereexpressed in these animals. Sera a poxvirus which used to cause a mild subject of a numberof lawsuits. Use from theseanimals reactedwith AIDS disease of milkmaids called cowpox, of dead virus tends to eliminate this virusenvelbpe prot eins, and sera from was the agent used by the father of problem,but ideally one would like to AIDS patients reacted with the Vac­ immunotherapy, William Jenner, to be able to administeronly that part of cinia product. inoculatepeople against smallpox. The the viruswhich is needed to stimulate While this is a promising avenue termvaccination comes from the name neutralizing · antibody production, in toward developing a vaccine which Vaccinia given to this virus. sufficient quantity to provoke a good may keep I uninfected persons from Smallpox vaccination has been antibodyresponse. being infe¢ted by the AIDS virus, it discontinued on orders from thecom- The ability · of the Vaccinia virus will do nothing for those now infected municable diseases division of the to express up to eight different viral or who will become infected in the WorldHealth Organization , except in antigens creates the potential to im­ meantime.i By its very nature, vacci­ the U.S.S.R., which occupies all the munize against multiple viruses with nation stimulates the immune system. senior positions in that division. one vaccination, without the risk of and evidence is growing that immune Nonetheless, researchers at the labo- getting any of the diseases associated stimulatio� the trigger that activates ratories of the New York State De- with these viruses, since only the an­ AIDS infeCted cells to produce virus partmentof Healthreported years some tigens, and not the whole viruses, ex­ and die. further, development and ago thatthe Vaccinia virus was capa- cept for the Vaccinia virus itself, are testing of 'such a vaccine would re­ ble of beinggenetically engineeiedto used. The advantage of a live virus, quire much larger resources than the express multiple viral antigens. The such as Vaccinia, is productionof suf­ present �sterity policies of the implicationsof this for vaccine devel- ficient antigen to provoke a good an­ administration wouldever allow. And opment areenormo us. . tibody response. In this case one gets who knoWS, maybe the World Health In principle, the idea of vaccina- high production of only the specific Organization would disapprove? tion is to use weakened, or killed, vi- genes insertedinto the Vacciniavirus . The pQint about the Vaccinia re­ ruseS, or parts of viruses, to stimulate For the AIDS virus, a slow acting vi­ search is tttat there is no shortage of the body to make antibodies to a par- ruswhich directlyattacks the immune ingenious, and potentiallyvery effec­ ticular virus. The virus or fragment system,the ability to produce highti­ tive, approaches to AIDS and other which is used is called an antigen. An ters of antibody to the immunogenic diseases, if the political will to con­ . antigen is a chemical, usually a pro- envelope protein, without having to front the problem is present. Jenner tein or a glycoprotein, which stimu- use whole virus, is significant. was attackedby the spokesmanof the tates the immune system to make a One way in which the AIDS virus drug bankers of his day, the British chemical, called an antibody, which evadesthe patient's immune systemis East India; Company's Thomas Mal­ will recognizethe antigen and bind to a very low level of expressionoutside thus, for interfering with God'swill it. H the binding of theantibody to the of cells, so thatby the time antibodies by preventing smallpox. The present antigen kills the virus, or inactivates are present, virus proliferation is far approach afthe Reagan/Regan admin­ it, theantibody is known as a neutral- advanced and the virus is already in­ istration show us that Jenner's adver­ izing antibody. . sidecells , whereantibodies are unable saries are.till with us.

12 Economics EIR May 2, 1986 ForeignEx cbaDge by David Goldman

Bundesbank cuts loose from dollar , of the EurobOnd market dUring the In a drastic reversal of policy, the West Germans jlinwith 'second huf of 1981; that proportion monetary decoupling. feU to64% by Decemberof 19 85. Most of that decline is concentrated in the second half of 1985, that is, the period during which the dollar lost 30% of its value against European currencies. Understandably, major lenders are reluctant to purchase paper in a cw­ rency which is rapidly losing value On T he dollarhas lost 10% against the plea for help in "managing" the dollar the market. The German made hasbeen West Qennan mark since the Interna­ decline. That answer, in the fonn of a the biggest gainer at the dollar's ex­ tional Monetary Fund's Interim Com­ drastic reversalof previous West Ger­ pense;the restis dividedinto 5% shares mittee failed to produce the deal that man policy towardsthe dollar, further for the , pound sterling, the Japanese Treasury Secretary James Baker eroded hopes for a "soft landing" for yen, and the ECU. sought (and is still seeking): a second, the U.S. currency. As matters stand, the ECU is only coordinated reductionof interest rates Bundesbank chairman Karl Otto a bookkeeping device, representing a among all the central banks. Pohl speaking in Rome on April 18, mix of the currencies of BCmembers Although the Japanese followed told press that a "European currency (excluding Britain)., As such, the the Federal Reserve's April 18 drop in issued and controlled by a European emergency of anBCU Eurobondmar ­ the discount rate, the facade of inter­ central bank" should be the final goal ket from scratch hasbeen impressive; national cooperation was shattered at of monetary integration. He made a BCU issues did not exist before tJte the meetingIMP . strong call for Britain to finally join second half of 1984, and now. com­ BadU.S. economic news m:erely the 1979 European Monetary System prise 5% of the total market. confirmedthe trendalready registered which he said would make a "major A Salomon Brothers commentary in the foreign-exchange markets, as a contribution to the political and eco­ of April 18 suggests that a major-Eu­ political perception. nomic integration of Europe." . ropean shift away from thedollar has The warning sign came on April Pohl also praised recent disman­ already widened theyield differential 22, when the Dow-Jones bond market tling of exchange controls in Italy and between U.S. Treasury and corporate index fell a stunning 3%, reportedly "the intention of the French govern­ securities: ''The dramatic widening of due to fears that European and Japa­ ment to liberalize capital move­ yield differentials from Treasuries in nese' investors were oversaturated with ments." the past month has. caused many sec­ dollar paper. Europeanbank sources emphasize tors of the corporate .fUld mortgage That is , probably true: The point that all the above are prerequisite to markets to sell at record percentage has arrived at which fore ign money the Bundesbank's eventual support for yield inducement over . Treasur­ managers must reckonup their curren­ the creation of an actual European ies .... Since late February, yield cy losses in U.S. investments, and Currency Unit currencyEurope for , a spreads of corporates and mortgage$ make the decision to cut futureon es. major part of monetary "decoupling" to Treasuries have increasedby 50-70 Thinking at the Bundesbank ap­ from the dollar. Until now, Bundes­ basis points, placingthem in therange pears to reflect a broader pessimism bank legal objections have been the of 100to 250 basis points." , concerningthe longevity of the bubble major obstacle to European Commu­ This is due to '�a recordvolume of in , the dollar markets. The Bundes­ nity President Jacques Delors' pr0- corporate ' bond issuance in recent bank,was reportedly unwilling to cut posals for a fullECU currency. months, totaling nearly $20 billion in its 3.5% discount rate at the April 24 Previously, the German central March," but more to "a noticeable meeting ofits council, despite the rise bank despised the notion of a unified slackening of Japanese and European of thedeutschemark to its highest lev­ European currency, as a competitorto investorinterest in the U.S. bondmar­ el since April 27, 1981. theU.S. dollar. Thatreflected the long­ ket in the past few months, in contrast In fact, the governorof West Ger­ tenn Atlanticist viewpoint prevailing totheir rather conspicuous presencein many's centralbank had alreadygiven in West German politics. the Treasury and higher-gradecorpo­ his answer tothe American Treasury's U.S. dollar issues' made up 85% rate markets in 1985."

EIR May 2, 1986 Economics 13 I EnergyInsider by. John Hoefle

Oil industry girds for depression The top six Texas banks have an The oil price collapse means that veryfe w of the Texas bank average of 44% of their non-perform­ loans that were alreadya problem last year, will pay anything ing loans set aside as loan-loss re­ this year or next. serves, up from 36% at the end of 1985. That is a disastrous sign: The col­ lapse of oil prices means that very few of the loans that were already a prob­ lem last year, will pay anything this By oil industry standards, Sheikh zation of Petroleum Exporting Coun­ year or next. Yamani's prediction of April 22 that tries (OPEC) oil ministers which con­ But the Texas banks have not had oil prices would take two years to re­ cluded on April 22 produced Ii brief the profits; with which to cover their turn to $28 per barrel must have rally in the oil futures market, but existing piOrtfolio of troubled loans sounded like cockeyed optimism. The prices remain below the $13-per-bar­ with loss reserves, let alone set aside "Seven Sisters" are chopping off both rei level-the point of no return for reserves for new problem loans. capital spending and personnel, on the Alaskan oil, which represents 30% of To incijcate how far out of line the assumption that oil prices will stay de­ all domestic U.S. production. Texas batlks are , the 1985 year-end pressed indefinitely.. However, the non-results of this ratio of loan-loss reserves to total Exxon has adopted a policy of vol­ Geneva meeting, repeating the con­ problem Ipans for U.S. banks as a untary departures and early retire­ . clusion of the last three OPEC meet­ whole waS 53% . ments to reduce its workforce by as ings, point prices down'Vard, toward More disaster news is piling up in much as 10% worldwide. One analyst the single-digit range. reports in tIR 's Houston bureau. More estimates layoffs in the Houston area OPEC ministers failed to reach than 23,000 Houston families walked at 1,500,of a total local workforce of unanimity in their proposal for a new away from their home loans over the 15,000. oil output ceiling. They split 10-3 in past two years, prompting talk among A l�tter from company president favor of a production ceiling of 6:3 mortgagetenders· about getting tough, Randall Meyer reads, "The successful million barrels per day in the third warning that civil suits might be filed adaptation of our strategies and activ­ quarterof 1986, and 17.28 in the final against defaulters. ities to the new business conditions quarter. This is not significantlygreat­ However, this is mostly noise, will unfortunatelyrequire a significant er than OPEC's current official-but since the lenders admit that most peo­ reduction in staff. This has been a widely ignored-ceiling of 16 million ple walk� out because they were painfuldecision, but circumstances el ft barrelsper day. As usual, Iran , Libya, broke. us little choice." and Algeria werethe disse nters.· Home prices in Houston, using Exxon had earlier announced a EIR 's earlier warning that the oil 1979 as a base, were up 57% in 1982, $2.8 billion reductionin planned 1986 price crash could knock 7% off the but dropp¢d to 27% in 1985, that is, capital expenditures. Federal Reserve's industrial produc­ 30% below the 1982 level. Meanwhile, Shell and Exxon have tion index is bearing out, in the two Actual foreclosures jumped from abandoned a $3.8 billion North Sea months of consecutive production de­ 89 in 19811 to 1,829 in 1986, while oil project, blaming lower oil prices. clines reportedby the Federal Reserve posted fo�closures jumped from 400 Analysts said it would be only the for Februaryand March. to 3,097 dpring the same period. first of many. Alex Salmond, energy The disaster in the oil belt� visible Nonetheless, the Office of Man­ economist at the Royal Bank of Scot­ in layoffs and production declines, has agement and Budget has given Con­ land in Edinburgh, told Reuters news not yet shown up in the balance-sheets gress a "very, very preliminary" esti­ service on April 23, "Clearly, if cur­ of Texas banks, whose entire $200 mate that theoil price collapse will cut rentlevels become the basis for future billion deposit base is now in danger. the deficit by $10 billion, through expectations, all new fields will be in However, figures for the banks' higher economic growth-even jeopardy. '" The scheme in question, bad loans as of December 1985 dem­ though the federal government's di­ the Gannet project, is not economical onstrate, once again, that they are in rect loss, in the form of lower windfall at a price of less than $20 per barrel. no shape to withstand the present profit taxes, will be several times the The Geneva meeting of Organi- shock. supposed $avings.

14 ' Economics ElK May 2, 1986 Banking by William Engdahl

Merrill Lynch under fire effect, it is functioning with the risk A new Bank/or International Settlements study scolds about level of a major internationalbank; its certain financial "innovations." competitors have$.1 0 billion of capital or more, and are in enough hot water as matters stand. What is most extraordinary about the BIS pronouncemen� is tha,t the central bank has ' taken the extreme T he Bank for International Settle­ "Under the • securitization • pro­ measure of preaching the dangers of ments has issued an extraordinary re­ cess, as U.S. laws now stand," the collapse from a public pulpit, in the port which hits at Merrill Lynch and London source continued, "firms such midst of the most dangerous financial other international investment banks. as Merrill Lynch, Salomon Bros., or situation in postwar history, in o�r The "central bank for central banks," Citibank have virtually infinite lend­ to abortthe speculative bubble that has based in Basel, Switzerland, entitled ing potential as they are not required runout of control during the past sev­ the report, "Financial Innovations in to hold any contingency reserves by eral years. International Banking." law. " Merrill Lynch is one of the larg­ In addition, the BIS has gone over The study, carried out by Sam est firms involved in this unregulated the head of the U .S. Treasury, whose Cross of the New York Federal Re­ off-balance-sheet practice, according chief banking regulator, the Comp­ serve, warnsthat the process of global to the source. troller of the Currency, recently is­ "financial innovation" transforming Other prominent players under fire sued extremely watered-down guide­ world financial markets in the past from the BIS include Salomon Bros. lines for dealing withthe off-balance­ several years opens a Pandora's Box and Goldman Sachs. sheet monster. which threatens the very control of The international banking system During 1985, Credit Suisse-First ' central banks over monetary policy. has created more than $3 trillionof so­ Boston and Merrill Lynch were, re­ "The financial system," the report called "off-balance-sheet liabilities" spectively, the number-one and num­ declares, risks breakdown in regula­ off the books, that is to say, without ber-two underwriterson the Eurobond tory oversight over the "consolidated reservesof capital in the event ofloss. market. CreditSuisse handled $19 bil­ international operations of non-bank These include such obvious forms of lion of Eurobonds; and MerrillLynch financial" organizations. The report risk-taking as guaranteed note issu­ handled $8 billion. Between them, the criticizes the rapid and concentrated ance facilities, under which the under­ two partners control one-seventh of expansion of such "innovations as in­ writer agrees to buy any paper which the entire market. terest rate swaps, forward rate agree­ its client cannot place among inves­ As noted, Merrill Lynchcontinues ments and Euronote issuance facili- . tors; interest-rate and foreign-ex­ to opeoate in tandem with the Credit ties" by a relatively few large organi­ change swaps, in which the underwri­ Suisse-First Boston combination, as zations producing unhealthy concen­ ter "matches" holders of different cur­ in the case of Spain. Thereis a revolv­ tration of credit risk. rencies, but must stand surety in the ing door between the overseasoffices A well-placed City of London fi­ event that one of them fails to perform; of Merrill Lynch and Credit Suisse. nancial source reports that Merrill and an entire bestiary of guarantees On Jan. 23, 1984, ten top officers, Lynch is a principal target of the new against future interest rate shifts. including three board members, of BIS report warning againstthe excess­ Known as "caps," "collars," and Credit Suisse-First Boston's London es in world financial "innovations." so on, these forward interest rate offices shiftedto MerrillLynch' s Lon­ According to this source, a major tar­ agreements amount to a guarantee of don offices. get of the BIS alarm signal is certain a future interest rate, in return for an The former chairman of Credit

financial conglomerates involved In so­ up-front fee . Suisse-First Boston, Eurobond mar­ called "securitization." Merrill , Lynch'S $1.6 billion of ket "founding father" Michael von The term refers to a practice in market capitalization, impressive by Clemm, recently resigned from the which a financial institution agrees to securities industry standards, is none­ company he helped found, and turned market securities of a borrower with­ theless ttivial compared to that insti­ up shortly afterwards as chief of the out accruing any direct liability. tution's level of risk in the market. In London office of Merrill Lynch.

EIR May 2, 1986 Economics 15 BusjnessBriefs

The 'Recovery' tions against any Americans violating the others lied to the Congress in promising that ban. Treasury Secretary James Baker III, the SpacejShuttle would be "cost effective," Durable goods orders however, granted the U.S. oil companies that safetY.was compromised in the program l "temporary licenses" to operate in Libya. because NASA refused to fixand redesign . go into a tailspin componeits that werefa ulty, etc. As EJR has documented, it was almost Durable goods orders fell 2.5% in March, exclusively budgetary constraints that pre­ following a revised 0.6% fall in February, War on Drugs vented NASA from making decisions on the the U.S. Commerce Department reported basis of sound engineering and design con­ on April 22. Ibero-Americans siderations. Deducting a 42% rise in defense capital The Times accomplished its goal of di­ goods, the decline would have been a dis­ meet to fight drugs verting the hearings, which should have astrous 5.7%. New orders for capital goods concentrated on the real policy questions overall rose 3%, and household durable The Organization of American States (OAS) facing th4 agency and the new administra­ goods order were up 2.1%, but machinery convened a meeting in Rio de Janeiro, Bra­ tor, such 's replacing the Challenger, keep­ orders fe ll by 1.2%, transportation equip- zil on April 22 to organize the fight against ing the space station on schedule, and con­ . ment was down 1.9%, and orders for pri­ the international drug traffic. The confer­ sidering the long-range goats laid oUt re- ' mary metals were down a large 8.7%, the ence was organized in honor of Rodrigo Lara centIy by theNational Commission on Space, lowest monthly volume since May 1983. Bonilla, the Colombian justice minister as­ which inc�uded reviving the program to col­ In ao deadpan admission of what EIR has sassinated by the dope mafia in April 1984. onize the Moon and Mars. been insisting for months, UPI commented: 0 For the first time at any anti-drug con­ Thou$h Sen. Albert Gore, Jr. (0-Tenn.) "Lacklusterperf ormancein the manufactur­ fe rence, the central role of money launder­ and othefli proclaimed that they were "hot­ ing sector, which has not responded notice­ ing .in maintaining the drug trade was dis­ rified"at c'he "revelations," there is no doubt ably to either a dip in interst rates or a col­ cussed. The justice minister of Venezuela, that Fletcher'S nomination will be quickly lapse in oil prices, has led some private Jose Manzo Gonzalez, who presided over confirmed. economists to doubt whether the economy the conference work group on money laun­ ! will grow at the rate Reagan administration dering, said in his speech on April 22 that analysts have predicted." his country wants an effective agreement to come out of the conference. "The biggest Dirty M,oney obstacle to fighting narcotics traffic in our continent is that the economic context is very First Jersey Securities FreeEnterprise bad; there is an enormousfore ign debt, mis­ ery , and hunger. " under investigation Armand Hammer refuses A world summit on the drug trade will i be held in Argentina on May 9. A federal grand jury and a congressional to sell Libyan holdings subcommittee are investigating allegations of stock manipulation and illegal campaign In the aftermath of the U.S. bombing of contributions by First Jersey Securities and Libya, four out of five major U.S. oil com­ Space Exploration its owner, Robert Brennan. The investiga­ panies still doing business in that country tions complement the Security and Ex­ have announced that they intend to sell out New Yo rk Times change Commission's recent moves against the'irassets as quickly as possible. Amerada Brennan and his company, for illegal mark­ Hess Corp., U.S. Steel's Marathon Oil, tries to slam NASA ups on s�ock transfers, and manipulating W. R. Grace & Co. , and Conoco all said stocks to generate profitsfor the firm. that they have begun talks to sell off assets. On the morning of April 23, just hours be­ Brenqan is part of the New Jersey dirty That leaves only Occidental Petrole­ fore Dr. James Fletcher was to face his con­ money-laundering networks that include

um's Armand Hammer, who has refused to firmation hearings as the next head of the First Fidelity Bank, bankers for organized say whether or not he will sell. Hammer is a National Aeronautics and Space Adminis­ crime, arid the Resorts International gam­ long-time Soviet asset, who prides himself tration, the New York Times blasted both bling interests in the state . First Fidelity stole

on his persOnalfriendship with every Soviet NASA and Fletcher for alleged gross mis­ $200,000 in campaign funds fronithe pres­ leader since Vladimir Lenin. Occidental Pe­ management, fraud, and lying to the Con­ idential campaign committee of Lyndon , troleum hashandled as much as 25% of Lib­ gress. LaRouche in 1984, two days before the elec­ yanproduction, in cooperation withthe Lib­ The Times, in a page-one article head­ tion .. yanNational Oil Company. lined "NASA WastedBil lions, Federal Au­ Bremaan received tens of millions of On Jan. 7, President Reagan announced dits Disclose," claimed that internal and ex­ dollars fMm First Fidelity in 1982, to ex­ a ban on ' U.S. business transacti9ns with ternalaudits have found fraudby contractors pand his i operations in the mafia's horse­ Libya, and warnedthat there would be sanc- and NASA management, that Fletcher and racing business.

16 Economics EIR May 2, 1986 Briefly

Brennanhad previouslybeen the propri­ push for repeal of the windfall profits taxon etor of a boiler-room securities business, oil companies, in order to ease the plight of • 'SABOTAGE is something we which got its start in the I 970s by borrowing the states devastated by the world oil-price can't discount," said Major-General $250,000 from one Harold Derber, one of decline. Jack L. Watkins, commander of the thebiggest marijuana importers in the United An "energy" summit was convened on 1st Strategic Aerospace Division, at States. Derber, who used First Jersey to April 15 by Texas Gov . 'Mark White (D), a news conference fo llowing the ex­ launder his drug profits, according to a se­ attended by governorsfrom Oklahoma, New plosion of the y.S. Titan 34D rocket ries of articles in the Philadelphia Inquirer Mexico, Wyoming, Kansas, and North Da­ in California. '(oWe will be looking at April 6-9, 1986, was scheduled to testify in kota. The governors from Oklahoma, New everything ...." he said. 1976 before the SEC about Brennan's activ­ Mexico, Wyoming, Kansas, and North Da­ ities, butinstead was found the night before , kota. The states' plea for assistance was pre­ • UNITED KINGDOM Employ­ with eight bullets in his back-one of which sented to the President at the April 22 meet­ ment Secretary LordYoung on April had his initials carved in it. ing in Washington. 19 released monthly statistics on But GovernorWhite was excluded from Britain's unemployment which re­ the session with the President because, the vealed the largest monthly increase White House said, he's been too "partisan" in the number of jobless since Sep­ on the issue. Texas is by farthe largest U.S. tember 1981: unemployment is now Agriculture oil-producer, pumping nearly one-third of at 3.2 million, or 13.2% of the labor total American crude. force. . New England dairy • TIlE JAPANESE Commission . fanners close up shop has suggested that Japan become an­ GreatPro jects other "import-consuming society," Four hundred and sixty-one farmers in the according to Sen. Jay Rockefeller (D­ New England states have accepted the U. S. Thai parliament W. Va.). Rockefeller said that the Department ofAgriculture's o,ffer to leave commission c8Iled for the Japanese . supports Kra Canal the dairybusin ess. people to spend more, save less, and Sixty-six Massachusetts farmers , who import more goods . "The pressure, produce 19% of the state's milk, and 71 The Thai parliament passed a resolution in the protectionist bills that have been New Hampshirefarmers , who produce 16%, mid-April stating.that a multi-billion-dollar put out [in the U.S. Congress] have will end their businesses. Two of the New project to build a canal through the Isthmus gotten through to Japan's prime min­ of Kra is feasible, and should be imple­ Hampshire farmers are among the state's ister at least," he said. largest producers, with more than 300head mented. each. In Vermont, more than 200 farmers The resolution, based on a study carried • CONGRFSS is investigating will stop milking and sell out. out by a parliamentary commission created charges that TWA is compromising This is part of the USDA program to in July 1985 for that purpose, was directed passenger safety by replacing nearly send 1 million cows and calves to the to the government of Prime Minister Prem 6,000 striking flight attendants with slaughter, in order to remove 12 billion Tinsulanond. The committee heard testi­ inexperienced ' workers. The Inde­ poundsof milk from the 1986 harvest. mony from Pakdee Tanapura of the Fusion pendentFederation of Flight Attend­ Energy Foundation (FEF), members of the. ants, which struck March 7, told a Defense College, engineers, and scientists. House panel on April 1 0 that the new

ou erisis The idea of a Kra Canal was originally workers lack a "minimum level of proposed as early as 1793, and was revived training." A top TWA executive de­ President Reagan still in the 1970s through a study by the Thai Oil nied the charges. The Federal Avia­ Refining Company. The project has re­ tion Authority has concurred with . won't back oil tax ceived its major impetus recently through TWA. the internationalefforts of the FEF and EIR PresidentRonald Reagan, in a meeting with (seeEIR . Sept. 13, 1983). • PIERRE TRUDEAU, fOI'llWr governors and congressmen representing "Experts" fromthe InternationalMone­ Canadian prime minister, arrived in energy-producing states on Apli1 22, main­ tary Fund and World Bank have attempted China for a two-week business visit tainedhis refusal to introduce an oil-import to sabotage the canal ' project, and Henry in mid-April. Trudeau, leading a tariff, on the-grounds that this would violate Kissinger is known to have intervened per­ group of industrialists for talks on the tenets of free-market economics. sonally with the government of Thailand, to business prospects and' now associ­ Rep. Mickey Edwards (R-Okla.) said prevent the realization of the plan, which ated with a top Montreal law firm, the idea of an oil-import tax was discussed, would foster the rapid economic develop­ was expected to meet top economic but "the President, of course, made it clear ment of the Pacific and Indian Oceans' bas­ officials April 16. he doesn'tsupport it ." Instead, he offered to in .

EIR May 2, 1986 Economics 17 �TIillScience &: Technology

A human life, is truly'c ost effective' ' I PartII in Dr. Wo lfgang Lillge's series on the life-saving potential oj high-quality, high-technology medical care.

The firstarticle in this two-part series exposed the fa llacies • A vaccine against hemophilus influenza, the greatest of "cost/benefitanalysis ," as applied to health care by such Gause of childhood infections, including pneumonia and organizations as the congressional Offi ce of Technology As­ meningitis, has been developed and proven effective in in­ sessment. We established that the OTA is using its "economic fants as young as 18 months. Inoculation of all eligible chil­ analysis" to justify its real aim, which is to suppress the dren could prevent 60%of theseinfection s, which are poten­ applications of advanced technology to medical care, as a tially life threatening. means, primarily, of controlling population growth. We be­ • An inexpensive vaccine against hepatitis B has been gan a discussion of the most promising medical technologies, developed from a synthetic protein. This disease effects about which will save millions of dollars in the long term-and � 1 million people in the United States and 250-300 million lives immediately. In this article, that analysis is continued. people worldwide, primarily in the developing sector, where it is believed to be the cause of hundreds of thousands of Vaccines cases of primary liver cancer. Preventive medicine is still one of the most effective­ • and "cost-effective"-ways to prevent disease. This is cer­ A new polio vaccine from killed viruses promises to eliminate the last traces of this disease from the United States tainly the case with vaccination against a broad range of infectious agents. Normally, a single dose of vaccine, once in the next years. In addition, scientists are developing a polio vaccine that can be administered by inhalation and mass- introducedon a mass scale, will cost only a few cents, or at ' 10¢ most a couple of dollars, and will save millions of dollars in produced for about a dose. treatment of diseases which once were the maj or killers of • A breakthrough has occurred in the long effort to de­ mankind. For several infectious diseases, especially viral velop a vaccine against malaria. Scientists have succeeded in diseases, vaccination is the only "treatment, " because so far , reproducing the genetic m�terial that codes for a protein on hardly any drug has been found effective against them. the malaria parasite, thus stimulating the body to produce Recent breakthroughs in vaccine development include: antibodies against the parasite. This genetic material can be • Scientists at the New York State Health Department inserted into bacteria, which will then produce the protein in have developed a technique for genetically altering the Vac­ large quantities. cinia virus, formerly used by William Jenner to inoculate One potentially serious problem in the United States is against smallpox, to express up to eight different antigens, the growth of complacency; as many of the epidemic diseases thus enabling vaccination against eight different diseases with of the past have now virtually disappeared. For example, a single injection . many American children ;p-e no longer vaccinated against • A vaccine against chickenpox, which infects 2-3 mil­ smallpox. But it is necessary to maintain a certain density of lion children a year in the United States, and results in 60- application, in order to prevent a single outbreak of the dis­ 100 deaths, has been developed. ease from spreading,

18 Science & Technology EIR May 2, 1986 The vaccination program against polio during the 1950s virtually wiped out that dreaded disease in the United ' States. Such preventive med­ icineis one of the most effe c­ tive ways to prevent disease. and yet vaccination of chil­ dren is now being curtailed.

' Another case in point is measles. Licensing of a measles an early stage. Doctors agree that early diagnosis has intan­ vaccine in 1964 led to a dramatic decline in cases, and seque­ gible gains. The patient saves innumerable costs, as well as ' lae, in the United States (Figure 1). Rec�nt anti-vaccination time in and out of the hospital trying to get a diagnosis for his propaganda has resulted in the development of a large non­ condition. The cure is less complicated, faster, and less ex­ immune population and major outbreaks of measles. The pensive. disease is spread by infected nose and throat secretions, and In many of the more common medical conditions, only if introduced into susceptible populations under conditions early diagnosis can lead to a cure, whereas later diagnosis of crowding and sanitary breakdown, it can result in devas­ leaves the patient with an incurable medical handicap, and tating epidemics, .with a high fatality rate . leaves the physician with the thankless task of managing a The introduction of the polio vaccine in the mid- 1 950s not only ended one of the most cruel epidemics of this cen­ tury, but could serve as a paradigm today of the way in which FIGURE 1 investm�nts into basic biomedical research will save subse­ Control of a communicable disease quent health dollars. by immunization in the United States At the end of the 1970s, Dr. Hugh Fudenberg of the University of California Medical Center in San Francisco c 700 . made a "cost/benefit" analysis of the research and develop­ Q iO ment that led to the vaccine against polio. He found that the �600 Measles the infinitely greater costs of o costs of basic research-and a. vaccine developing the vaccine and conducting fieldtrial s-came to o8 500 licensed the first seven years that o little more than $4 1 million. But in � 400 polio vaccine was available, the economic benefitsfrom sav­ Q; bills, and lost earningsdue to a. ings in hospital costs, medical 300 disability totaled more than $6 billion! � 51200 The greatest payoff was, of course, the number of lives '" u saved. From the 1920s through 1950s, 1 person out of every '" .9,! 100 100,000died of polio each year in the United States. Individ­ gj ual communities lost up to 1 person out of20 in polio epidem­ � O -LrT-.-r-.'-'-,,-'-r-..-� ics. In many epidemics, IO times as many people were per­ 1912 20 28 36 44 52 60 68 76 84 manently crippled by the polio virus. It is a commonplace in medicine to state that the best cure

for a patient can be assured when the disease is discovered in licensing of a measles vaccine in 1964 led 10 a dral'!1alic decline in cases.

EIR May 2, 1986 Science & Technology 19 ' clinical condition that is irreversible. This is especially true It is clear that the abiliJ�to detect a dise� in an early for cancer, wherein most cases totalcure can only be achieved . stage depepds on our scienti c knowled�e about pathologic when the maligant process is eliminated right at its onset. processes and on the devdo _ m�nt of diagnostic techniques. The only society which would not find this advantageous, is We will now look at some orthese capabilities and analyse the fascist state-the dying societyin which life is expendible the question of why mass sqreening programs are not .in as and no productivefuture exists for the population. widespread use today as they should be. We begin willi the While vaccination is the most effective methodof disease cancer screening programs. : prevention, known as primary prevention, screening pro­ Cervical cancer: Scree�ng for this type of cancer with grams function as secondary methods of prevention. Effec­ the Pap test is perhaps the �ost powerful life-saver in the tive screening has two principal preconditions: Fii'st, the dis­ whole arsenal against canc�. An estimated 20-25 million ' ease itself must be detectable at an early stage; and second, American 'Y0men take the P�p test each year, auriaverage technologies and techniques ha.ve to be available that are cost of $5 pertest . The Pap st detects cancerous or precan­ tt . cheap and efficient, to detect this early stage of the disease. cerous cells taken from theJ cervix, and allows a reliable There are a numberof such techniques available which have staging of several cell formsJW hich indicate a late� tendency been established as highly effective-both in terms of their to develop into a cancer. i cost and their ability to detect disease. About 5-10 cases of dif�erent pre-stages of the disease

plans to purchase a Nuclear MagnetiC Resonance (NMR) How the·bureaucrats are . machine, for example, it haslto make an application t() the . healthcare CON board and establish cOnclusive evidence of "need" sabotaging for such an investment. The definition of "need" involves diverse criteria which are subject to arbitrary interpreta­ The congressional Office of Technology Assessment tion: consistency of the propOsed project with state health (OTA), since its creation in 1972, has played a leading plans, consistency of the project with the institutional role in sabotaging the implementation of advanced medi­ applicant's long-range plan, systemwide effects, financial cal technology, on grounds that it is not "cost-effective." feasibility of the project, access to care, quality of care , Oneprincipal way in which such criteriaare introduced is availability of services and l personnel, construction and

through the so-called Certificate-of-Need (CON) pro­ architecturalconsiderations ,i effects on competition, com­ grams, operated by the different states through a jungle of petence, and character of institutional management, and anti-science bureaucracies. selection of the best alternative means of providing the The OTA's main function, according to its own de­ proposed service. scription, is "to help legislative policymakers anticipate The CON procedure comes on top of the intricate and plan for the consequences of technological changes "premarket approval proce�" from the Food and Drug and to examine the many ways, expecteda nd unexpected, Administration, and this FDA procedure alone is well in which technology affects people's lives." This type of suited to derail or massively delay and raise the costs of "value-free" characterization about "concerns for quality even the safest and most efficient technological develop­ of life" is the code phrase behind which "green" anti­ ment. technology fanatics are allowed to plot their strategies If such ittechnology has managed to sneak throughthe against progress. -These are the same f?rces who think it FDA brushwood, its next hurdle is the CON approval would be better to eliminate the last year in the life of process. And if it jumps over that, one can still not besure every citizen, because statistics show that that year has the that the various third party payers like Blue Cross/Blue highest health-care costs. Shield, HCFA, private insurers, etc., will include it in The OTA has set out to apply costlbenefit approaches their reimbursement policy': A whole new set of review to any emerging new technology. They publish detailed proceduresis set into motion. technology assessment reports whose only purpose is to Here is the OTA's own Javorable description of the discourage industry from investing in the development of certificate-of-need programs: new technologies, and users from purchasing them, by "A major public policyre;sponse to the perceivedprob­ inflating their costs and under-counting their benefits. lem of technology-induced cost inflation has been to at­ Accordingto CON regulations, any device which ex­ tempt restraint of technology diffusion to hospitals. The ceeds a cost of $250,000 becomes automatically subject prime policy instruments have, been State certificate-of­ to review. That means,. if a hospital or private practice need programs.... Al thoUgh CON programs were not

20 Science & Technology EIR May 2, 1986 are discovered in every 1,000 women examined, and in cer­ million to treat all the newly discovered cases of cervical tain high-risk population groups-such as women between cancer, bringing totalcosts of screening and treating to $118.6 the ages of 30 and 4O-the rate may reach 20 cases per million. thousand. ·But the benefits, according to Ross, would exceed the When cervical cancer is discovered early, cure rates are costs ninefold: $998 million saved over the five-yearperiod higher than 90% , and the cost of early surgery varies from in earnings by women whose early cure enabled them to less than $600 to about $1 ,200.In later stages of the disease, return to work, plus $73 million in expensive treatment costs ultimate costs may run as high as $50,000. averted.Thus the total program's benefit would be nearly Dr. W. Ross, Jr. of the U.S. Public Health Service has $1.1 billion! offered a costlbenefit analysis of the Pap cancer test, which As a matter of policy, the bureaucrats of the Office of was presented at a conference of the American Cancer Soci­ Technology Assessment (OTA) come to quite a different ety in 1979, which is still basically valid today. Over a five­ conclusion. They stated, in a case study about the cost effec­ year period, he estimated that it would cost $68 million to tiveness of cervical cancer screening: "The results of the bring the Pap test to as many American women as possible analysis show that the costs of screening for cervical cancer throughgrants to hospitals, clinics, health agencies, andpub­ are always more than the financialsavings of prevented future lic education programs. At the same time, it would cost $50.6 disease, indicating that private insurers have no direct finan­ cial incentive to screen." Obviously they are giving a cost! benefit analysis according to the criteria appropriate to the insurer rather than the patient, or society as a whole. originally intended to constrain the diffusion of medical This is not a naive error. It reflects not only a difference technology. they have been used fo r thatpurpose. To the in analytical method: The OTA is adhering to a worldview extent thatindividual devices had price tags exceeding the that axiomatically does not allow decent health care for established dollar threshold for CON review, new medical everybody. In the fantasy-land of systems analysis, every technologies became subject to CON regulations.... dollarspent for health care isa lost dollar. CON agencies frequentlyplay pivotal roles in determining A different way of analysingthe situation is presented by which institutions may acquire new technologies [Health Dr. Bernhard L. Cohen, in an article in Fusion magazine Technology Case Study 27 on NMR imaging technology, (March-April 1985) adressing the need for spending money September 1984; emphasis added1 ." for disease prevention directly, rather than tryin-g �o figure This language barely conceals the liberal , environ­ out what could besaved. Thisemphasizes the need to develop mentalist wrath against that technological progress ,which technologies with increasingeff ectiveness, i.e., to cover the alone can lead the way out of economic stagnation. The cost to save a human life. He comes to theconclusion that in incompetence ofOTA's and CON's approach to the prob­ the context of a comprehensive cervical cancer. screening lem is so undeniable that the same OTA study had to admit: program, you have tospend $25,000to save one life, which . "The inability of the [CON1 planners to evaluate the is relatively little compared to other screening programs technology [x-ray CT scanner1 constrained its ·diffusion available. Cohen writes that this is not "a study of the value into medical practice more severely than may have been of a humanlif e, which is a moral , philosophical, ethical, and wise. The lack of available evaluative mechanisms and religious question. Rather, it is a matter of collecting obser­ criteria for review made it difficult for planners to dispel vations and performing mathematical transformations on the uncertainty surrounding x-ray CT scann,ing, thereby them, which is a straightforward application of scientific leading to many controversial and. at times. seemingly techniques. " arbitrary decisionson individual CON applications. The Breastcancer: Treatmentof breastcancer in recent years net effect was a loss of credibility by the planners. as has developedto a pointwhere this disease canbe considered evidence of the truly revolutionary nature of x-ray CT .curable, when detected at an early stage. Approximately 85- scanning accumulated over time [emphasis added1 ." 90% of casesfrom this category have a survival rate higher Why, one has to ask, do we afford the luxuryto main­ than the five-yearperiod which is usually considered equiv­ tain agencies which are not only useless, but also danger­ alent to total remission for cancer. Screening programs in­ ous, as they admit themselves to be? Decisions on such clude palpation of lumps by the physician and/or mammog­ vitalquestions as the competent use of high technology in raphywith a high degreeof sensitivity. According to Cohen, health caremust be trustedto peoplewho want to preserve society has to spend $80,000 in screening costs for breast life, unlike our liberal pro-euthanasia congressmen who cancer to save one life. would even have outlawed the introduction of disinfec­ Lung cancer: This is the cancer �ith the highest inci­ tants , in order to protect the "civil rights" of bacteria and dence rate, which has become the most frequent cancer in viruses. men and, at current growth rates, will soon be the most frequent in women. Screening programs so far have relied

EIR May 2, 1986 Science & Technology 21 mostly on chest x-ray controls, but when a lung tumor has of whom will eventually die of it. reached the stage where it becomes visible on the x-ray im­ There are three main screening procedures to detect a age , it is in most cases already inoperable or has metastazised malignant lesion in the colon, before a patient will visit the into other parts of the body. doctor for diagnosis of symptoms: With digital rectal exam­ As discussed in Part I of this series, a new method of ination, about one-sixth of all colon cancers are within reach screening for malignant cells in the sputum, as a marker for of the exploring finger; with sigmoidoscopy, the entire ter­ the existence of a lung tumor in an early stage, has been minal 25 cm of the colon, where about one-half to two-thirds developed, which promises to be as efficient as the Pap test of all cancers are located, can be inspected directly and bi­ is for cervical cancer screening. opsy material can be taken; with a cheap test, the stool can When, in addition, the above-mentioned "photodynamic be tested for occult blood which may have originated from treatment" forearl y-stage lung cancer is established as gen­ an early colon cancer. eral procedure, cost for surgery (opening the chest and excis­ According to Dr. Cohen, the fecal blood test is one of the ing a whole lobe), with all its risks, could be reduced drasti­ cheapest screening methods available in order to save lives. cally. The cost per life saved of $70,000, which Cohen cal­ Cohen writes, "If males over age 55 were given fecal blood culates for lung cancer screening, may be reduced to $25,000 tests to detect cancer of the colon and rectum, the fraction in or less. whom tumors would be found is estimated to be 3 per thou­ Colo-rectal cancer: While colon cancer is not the most sand, and an estimated 20 percent of these would be saved frequent human cancer, it is the most common of the "lethal" by the early detection. Thus a program of testing 10 million cancers. About half a million persons currently alive carry men in this age range should include 3,000victims , of whom the diagnosis of colon cancer, and every year approximately 600 would be saved. A fecal blood test costs $3, and it is 115 ,000 people are discovered to have the disease, over half estimated that collecting and delivering a fecal sample in-

FIGURE 2 How water treatmenJ reduced typhoid deaths

Typhoid deeth rate per 100,000 population

1906 1914

11 cities No treatment in 1906 or in 1914 76.8 74.5 16 cities No treatment in 1906; treatment in 1914 90.5 15.3

Note: Source of water supply for each of the 27 cities was unchanged between NSIPSllerry BelSkY 1906 and 1914.

The most effective of �ll preventive medicine is to guarantee a safe and pure water supply . The United States today, ofcourse, ai b . However, unlike most of the developing sector, has adequate sanitation and high-quality water av la le that water. system is deteriorating in municipalities throughout the COUlltry, as the example of McKeesport, Pennsylvania (pictured here) indicates . The

McKeesport water filtration system has deteriorated to the point wher:e there have been three epidemics of Giardiasis since 1984. - , wa n that more dange ous epidemics could This intestinal disease is not life threatening but such a breach of water safe ty is a rni g r

. th . occur Control of swamp water and insect-borne disease are also essential aspects of public heal

22 Science & Technology EIR May 2, 1986 volves about $3 worth of inconvenience, milking the total "generated retinal reflex image system," is intended primar­ cost $6 per test, or $6 million for the program. Hence an ily for the screening of elementary-school children. It ex­ expenditure of $6 million for the program would save 600 ploits the "red-eye effect" that is caused by the reflectionof lives, at an average cost of $10,000per life saved." light fromthe retina. and is usu;illya nuisance in color portrait A simple digital examination would beeven cheaper, and photography. a proctoscopic examination would cost $30,000per lif e saved. A color photograph of the eyes of thesub ject, taken with The only way to increase the rate of early detection of can­ a normal 35-mm slide film, is examined for defects of the cers, is to massively increase the number of people being lens, cornea, anteriorchamber, or retina. Given the simplic­ examined. ity of the equipmentand the low price for each test (less than 30¢ perperso n), theprocedure could prove very efficient to Screening for non-cancer diseases detect children with eye diseases and provide them with the Pro15ably the easiest and cheapest screening test is for necessary treatment. hypertension, a test which can be carriedout by paramedics (and now there are even automated procedures available). Genetic testing Outside of cancer itself, hypertension is one of those insidi­ Regulartests on newborn infants tospot genetically caused ous diseases which is very widespread and for a long time diseases-the most frequent of which are those involving will not show any symptoms that would cause the patient to lackof anenzyme req!liredin themetabolism of amino acids­ see a doctor. When symptoms have developed" they are often can prevent the development of severe symptoms when a sograve (cardio-vascular complications, kidney failure, etc.) special diet is provided for the child. thatmedical intervention may not be very effective any more. Together with the rapid development of genetic engi­ On the basis of a mass screening program which involves neering (especially the technique of growing monoclonal regularhypertension controls, millions of people with high antibodies), such tests will provide the possibility of definite blood pressure could be detected and given adequate medi­ treatment of such genetic defects, but also the development cation. of whole batteries of tests for diseases which are associated Cohen estimates that the cost per life saved with a hyper­ with genetic markers. Thelatest test that emerged out of this tension control program is $75,000. This is, compared to kind of researchis one that could beused to determine wheth­ other similar kinds of inexpensivetests , a lot of money, i.e., er someone is proneto heartatta cks. The bloodtests spots an there areotber costs to be considered, apart from screening, abnormality in the genes frequeJltly found among those suf­ which arisein the successful treatmentof the disease. One of fering from coronary artery disease, which afflictsabout 30% the main reasonsfor this is that the established treatment with of the population, causing some 500,000deaths annually. anti-hypertensive drugs is based on insufficient knowledge of the etiology of the disease, reflected in the fact that the Why screening is cost etTective cause of 99% of all cases of hypertension is unknown. Thus, Even by current methods for estimating medical costs, hypertension is a prime example of the necessity for further screening compares favorably to the costs of educating a basic biomedical research, which ultimately will lead to a . skilled worker, a corporate executive, a scientist, etc., and massive reduction of the costs perlife saved, based on screen­ with the productive output (based on GNP) per year per ing for hypertensioncontr ol. individual in the United States. We can calculate, based on 1983-85 figuresfrom the U.S. Departmentof Education, that Rescue helicopters it costs $39,000 to educate a skilled blue-collar worker; The development of trauma centers with a parallel oper­ $63,000 to produce an operative with three years of voca­ ation of rescue helicopters has made it possible in highly tional training and a high school diploma; $79,000 for a populated areas to reduce the number of deaths from traffic bachelor's degree; $89,000 for a master's degree, and accidents and other disasters significantly. The success of $129,000 for a Ph.D. If these sums are spent to educate a this is basedprimarily on the speed of transport from the site person, isn't it "worth" spending an equivalent amount of of the accident to the trauma clinic, which is optimally money to keepthat personalive? equipped to save the victims. Dr. Cohen estimates the cost With a systematic program in which all citizens are per life saved for using rescue helicopters to be $65,000- screened simultaneously for all potential illnesses, which a less than must be spentin order so save a life in the hyperten­ new technology like Nuclear Magnetic Resonance particu­ sion control program. larly lends itself to, screening program costs would drop significantly. Also, with the increased use of tecnnologies Screening for eye defects like NMR, the price of such technology would drop consid­ In the last couple of years, Marshall Space Flight Center erably, further cheaping the fixed capital costs, while the in Alabama has developed a photographic test which can . efficient use of such a machine for mass screening would detect ocular abnormalities in many cases. The test, called bring down operating costs.

EIR May 2, 1986 Science & Technology 23 TIillFeature

Japanese elite hear strategic, economic i i d mens ons ofI SDI

by Linda de Hoyos

On April 23, the cabinet of Japanese Prime Minister Yasuhiro Nakasone began a series of ministerial meetings for formal consideration of Japan's strategic partic� ipation in the United States Strategic Defense Initiative. At the first meeting, the Nakasone cabinet heard a report urging cooperation from the third and largest delegation to the United States to survey the sm 'program, which had just come back from Tokyo. The Nakasone cabinet-which has internal disagreements on the SDI-is expected to pass out an affirmative artsweron Japanese participation in the sm. As theNakasone governmentwas sitting downi for its finaldeliberations on the most crucial strategic issue of the latter half of thd 20th century, 180 members of Japan's elite from governmentagenci es, the press, and the top-of-the-line Japanese corporations, were gathered at the Capitol Tokyu Hotel, at a conferencesponsored by the Fusion Energy Foundation and the Schiller Institute. The topic: "The Strategic Defense Initiative: Its Strategic, Economic, and ScientificDimensions ." It is the assessment of many of the Japanese participants at the conference that the FEF-Schiller event will have a "major impact"�positively-in determining the view toward the SDI among Japan's leaders, and in shaping the consensus-making process that could lead to the full strategic commitment from Japan to the SDI. Since 1983-aside from discussions with President Reagan, Secretaryof De­ fense Caspar Weinberger, and SDI program directorLt. -Gen. James Abrahamson, and private briefingsby the Fusion Energy Foundation-Japanese military, gov­ ernment,and business officialshave beentreated to conflictingexplanations of the sm and its feasibility. A concerted effort has been made to present the SDI as the High Frontierprogram of Kinetic Kill Vehicles, which, comparedto beamweapon defense systems, are both grossly inadequate militarilyand costly. The Japanese have also faced constant equivocation coming from both the State Department and Pentagon bureaucracies. Most recently, Assistant Secretary of Defense Richard Perle arrived in Tokyo on the heels of Weinberger's early April trip to Japan. Perle, who operates on behalf of the Israeli Mossad-linked Jewish Institute of National Security Affairs, was caught red-handed by this news

24 Feature EIR May 2, 1986 Lyndon LaRouche visits a high-energy physics laboratory in Tsukuba City, Japan.

NSIPS/Carlos de Hoyos service telling Japanese officialsthat the SDI may not contin­ defense program is "pure disinformation. " The Soviet offen­ ue past 1988. This news had the desired effect, from Perle's sive and defensive military build-up constitutes the gravest , treasonous standpoint, of "chilling" Japan's commitment to threatfrom Russia to Japan since World War II .. the SDI. With this strategic crisis fresh in everyone's niind, Kevin The FEF-Schiller Institute conference went a long way to Zondervan, manager of the Concept Analysis Department of clearingthe air, and giving Japan a full political and scientific the AerospaceCorporation in California, presented a detailed overview of the role that SDI can and must play in bringing overview of what a beam weapons defense system requires humanity into the 21st century . and where the current SDI research stands. The first morn­ As Lyndon LaRouche stated in his speech read at the ing's panel �as concluded by Professor Makoto Momoi, of conference, under conditions in which the populations of the the Yomiuri Research Institute, who issued an urgent call for allied nations are mobilized to solve problems on the frontiers Japan's participationin the SDI. "Every day that Japan does of science associated with th� SDI, "We shall accomplish the not participate in the SDI, is another day lost" in working to desired victory of strategic defense over thermonuclear of­ counter the Soviet threat, he said. "We must make a strategic fense, and shall also solve the principal non-military strategic decision to join the SDI based on the strategic realities that problems of our planet. " The presentations at thecoofer �nce, we face." by American, European, and Japanese representatives proved . The afternoon panel ended with a similar call by Ozeki the point. Tetsuya, of Jiji Press and the Japan Research Institute, this time motivated by the derivative economic benefits of the The strategic crisis SDI. Friedwardt Winterberg of the Desert Research Institute, The two-day conference opened on April 22, by showing Dr. John Cox, a laser specialist from the University of Flor­ that the SDI is required to counter the growing threat from ida, FEF director of researchUwe Henke v. Parp¥t, and FEF the Soviet Union. Col. Molloy Vaughn (USA-ret.) and French European director Jonathan Tennenbaum informed the au­ Army Gen. Revault d' Allonnes (ret.) showed that in both the dience of the economic spin-off potentials of the SDI. The Asian and Euro�an theatres, the Soviets have vastly in­ SDI will not only produce new products and industrial tech­ creased their military capabilities, while those of the United niques. The SDI, explained Winterberg, will create "super­ States and its allies have undergone a steady erosion. In technologies," new arrays of technologies that will allow WesternEurope , Genera}, d'Allonnes informedthe audience, humanity to explore the universe and changt: it in ways we the Soviets are building a first-strike capability. From the cannot imagine now. floor, a leader of Japan's military furthernoted that the Soviet "We are at the verge of the greatest technological revo­ claim that they are not carryingout their own beam weapon lution in mankind's history," LaRouche's speech empha-

EIR May 2, 1986 Feature 25 Euro� sized. As both Tennenbaum and LaRouche pointedout ; this under way in Western and North America since ap­ revolution will produce a l00-fol

26 Feature EIR May 2, 1986 The revolutionary impact of the SDI on the growth of the world economy

by Lyndon H. LaRouche, Jr.

The fo llowing paper was presented to a conference on "The defense must be, not only defense against ballistic and guided Strategic Defense Initiative: Its Military, Economic, arulSci­ missiles. It means also, effective methods of both passive entific Dimensions," cosponsored by the Fusion Energy and active measures of anti-submarine warfare. It means Foundation and the Schiller Institute in Tokyo April22 -23. also, defense against biological and chemical fonns ofstra­ tegic offensive weapons. To solve the problems in each and Twenty-four years ago, Soviet Marshal V. D. Sokolovskii all of these areas of defense, we must apply a certain spectrum wrote his shrewd insight into the flaws of the U. S. ballistic of the most advanced technologies being developed on the missile defense program then being developed. He foresaw, frontiers of scientific work. This requires us to emphasize that high-speed interceptor rockets, and related kinds of so­ three classes of technology which I have tenned :.'primary," called kinetic-energy weapons, could never provide an effec­ and one which I have tenned "auxiliary." tive kind of strategic defense against ballistic and guided The frontiers of physics today, are dominated by the missiles. He foresaw, that only by using what he described exploration and development of threeprimary areas of tech­ as "advanced physics principles," such as laser-weapons, nology. The first, is the mastery of organize

that their systems could be successful, provided computer­ I The attempt to master use of these threeprimary technol­ software problems are solved: If one attempts to develop a ogies requires rapid improvements in the development of computer, to cause rabbits to lay chickens' eggs, and the computer programmers' efforts fail, we should not describe this failureas a computer-software problem. No matter how The increase ojnatio nal income . goodthe computer systems of battle-management might be, a Soviet offense would have at least a three-to-one advantage caused by introducing new . in firepower and mobility over any kinetic-energy approach technologies into the civilian to SDI. It is a matter of physics principles, that a strategic economies, would addJar.greater defense based upon what are called "new physical principles" will have at least a 10-to- l superiority in firepower, mobility, wealth to the nation than the costs and cost, over a ballistic-missile offense. oj strategiC dfifense. Therefore . in speaking of a method of defense against thennonuclear offense, we must limit our attention to the workable fonnsof defense. I shall limit my remarks here, to computer technology. These improvements represent themost indicating the way in which the technologies required for that important of the auxiliary technologies required for effective sort of defense will cause a tenfold or greater increase of the strategic defense. For both military-defense and for produc­ productive powers of labor over the period of approximately tion generally, we require dedicated computer-modules in the coming generation. the megaflop range; this requires a crash program in devel­ When I proposed a strategic defense mobilization, during opment of what is called "parallel processing." Digital com­ 1982, I emphasized to �th my government and friendly puters are inherently defective devices, for treatingthe kiIids relevant institutions outside the United States, that strategic of large-scale non�linear processes associated with use of the

EIR May 2, 1986 Feature 27 o r; Q () '-' () 0 r Q 0 . " & Q c' ,:;" ( 0 0 .� '3 � '-: 0 Q� f' Q * ��! � The first scientist to establish principles fo r the use of firearms was Leonardo da Vinci, who sit­ uatedfirearms in terms of app ly­ ing projective geometry to define fields of fire of offense and de­ fe nse, By examining the effects of improvements in firearms, in terms of the geometry of fields of fire, we see that certain important changes in warfa re occured, but without changing the basic prin­ ciples examined by Leonardo . Shown are some of Leonardo's drawings of bombardment and designs fo r exploding projectiles.

three primary technologies indicated. To overcome this dif­ Any Soviet-launched nuclear war, will begin with a fu ll­ ficulty, we require new species of analog-digital hybrids, scale, first-strike attack against the United States, with si­ incorporating analog modes of solving non-linear functions multaneous attacks upon the friends and allies of the U.S. of differential geometry. At the same time, we must replace This means that strategic defense must be capable of inflicting the now-traditional computer-systems architecture pre­ destruction upon a very high percentile of 3,000 to 5,000 scribed by John von Neumann, adopting new architectures, Soviet missiles and their warhead complements. We must of a sort suited to applications of new types of analog-digital anticipate 3,000 to 5,000 targets for missile defense in the hybrids. launch and boost phase, and must also be prepared to detect I shall refer briefly to the military applications of these and destroy Soviet war-heads from among 30,000 to 50,000 technologies, and then concentrate upon the spill-over of objects detected in the mid-course range of war-head deploy­ these technologies into the world economy generally. ment. Without going into areas of discussion which might be Kinetic-energy weapons are incapable of dealing with the official secrets, I shall identify the best thinking among U.S. problems of the mid-course range. Therefore , theoretically, professionals associated with SDI development. kinetic-energy weapons must be assigned to intercept mis­ Unless the Soviet command were to perceive that the siles in their boost phase. For obvious reasons, this indicates United States lacked the will to honor its European and Pa­ launching of interceptor devices from low-orbiting plat­ cific commitments to defense of its friends, the Soviet com­ forms, such that the entire strategic defense would be easily mand would never engage its own national forces directly in destroyed by existing Soviet technologies, immediately prior a limited "conventional" or "nuclear" assault. Under all other to launch of thermonuclear missiles. For these and other circumstances, a Soviet direct assault on an ally of the United reasons, a kinetic-energy mode of space-based defense is States would occur only as a subsidiary feature of a full-scale unworkable. thermonuclear assault against the United States itself. This is Effective defense against missiles means, chiefly, de­ Soviet military doctrine, and is also the direction of rapid stroying flotillas of missiles and warheads by saturating the current development of Soviet military and related capabili­ "windows" through which their tIjectories must pass, with ties. We may abhor the Soviet motives, but their military such means as x-ray-laser bursts, or by enhanced-radiation doctrine is a highly rational one, in the tradition of 19th­ devices which neutralize warheads by such means as ade­ century German military science. Therefore , knowing Soviet quate densities of neutron fluxes. It requires lasers and so­ doctrineand capabilities, we are able to foresee moreor less called particle-beam weapons, to deal with those missiles exactly the kind of problem which strategic ballistic missile and warheads which are not destroyed in the windows of defense must master. coincident trajectories. The firepower and mobility of such

28 Feature EIR May 2, 1986 defensive weapons is greater, by four to five orders of mag­ of such a defense policy. In general, a few, but not most of nitude, than kinetic weapons. Taking into account combined the militaryfe atures of my proposalwere notoriginal to me. factors, of firepower, mobility, and costs, we can fairly es­ The Soviets have been committed to their own 'version of timate that the defense has a 1 O-to- l , net superiorityover the SDI since 1962, and have made rapidprogress in developing missile offense. such weapons-systems since approximately 1970-7 1. Maj.­ Many techniques for deploying beam-weaponshave been Gen. George Keegan propoSed that the United States develop discussed, including the techniques of strategic defense which a beam-weapon defense program, back during the middle of my associates and I first proposed during 1982. During my the 1970s, The unique featureof my proposal , was my dem­ , discussions with French military officials in 1982, those of­ onstration that such a program could be maintained at vir­ ficials asked me , if it were not true, that what I was really tually no net increase of costs of military expenditure. The proposing, was not any single set of defensive systems, but critical point in my argument, has beenthat the increaseo f rather that I was projecting very high/rates of technological national income caused by introducing new technologies into attrition in defensive systems over the decade ahead. I re­ the civilian economies, would add far greaterwealth to the sponded, that the French military's assessment of my pro­ nation than the costs of strategicde fense expenditures. posal was the correct one. As rapidly as one set of defensive The starting-pointof my economic analysis is not unfa­ weapons-systems is deployed, work will begin, to develop miliar to Japan. My standpoint is broadly identical to that of effective countermeasures against such systems. To over­ such exponents of the American System of political-econo­ come those countermeasures, improved defensive systems my, as Alexander Hamilton, the Careys, andFriedrich List. must be deployed. The basic scientific principles of beam­ My oppOnents among economists therefore labelme either a weapondef ense will remain the same for a long time to come; "mercantilist" or a "neo-mercantilist." The basis for my own but, just as automobiles have changed again and again, with­ contributions to economic science, is the, principles of phys­ out yet replacingthe architecture of the intemal-combustion­ ical economy first developed by Leibniz. My only original engine-powered vehicle, defense means the deployment of contribution to economic science, is my use of the work of new, improved models of defensive systems during each two Bernhard Riemann to solve the problem of correlating mea­ tofive year interval over the decades ahead. surable advances in technology with resulting rates of in­ The case of modem firearms, is a comparable case of crease in the productivity of labor. It was this c.ontribution, technological attrition. The first scientist to establish princi­ which has been at the center of my proposals for a U.S. ples for the use of firearmswas Leonardo da Vinci; the rev­ strategic defense initiative. It is thisconnection , betweenthe olution in warfare based on use of breech-loaded firearms, new technologiesof SDI, and increase of productivity inthe was first proposed by Leibniz. The work of Leonardo and, economy generally, to which I tum your attention. later, Leibniz, situated firearms in terms of applying projec­ In brief, the functional connection betweentechnological tive geometry to define fieldsof fireof offense and defense, progressand productivity, is demonstratedb y comparing the as this doctrinewas elaborated in France over the periodfrom potentialpopulation of so

changing thebasic principles of firearmsin general. Over the progressin an energy-intensive, capital-intensive mode. This coming decades, changes in the designs of particular'kinds means, that the amount of usable energy per-capita and per­ of beam-weapons, will mean changes in the characteristics square-kilometer must be increased; it also means, that the of fieldsof fire, for both the offense and the defense; but, the portion of V\!ork allotted to capital improvements in land and basic principle of design of defensive systems will remain work-places, must increaseas a percentileof totalwork . For generally the same. example: Without development of infrastructure, and with­ out increasing rates of capital investmentper operative, no The economic feasibility of the SDI nation is capable of sustaining technological progress in ag­ Since competent strategic defense requires high rates of riculture and industry. technological attrition, the most critical feature of my 1982 By "economic science," we mean economic science as proposal for a U.S. strategic defense initiative, was my as­ defined initially by Leibniz . Instead of simply "economic sessment of the economic feasibility of sustaining the costs science," we might use the termused to describethe teaching

EIR May 2, 1986 Feature 29 of Leibniz's economic science in German universities during in energy-throughput and teQhnology. Provided that we rec­ the 18th andearly 19th century, "physical economy. " ognize, that building of bas.c economic infrastructure, and It may be recalled, that Leibniz's founding of economic of improvements in land, have the same general significance science was begun with Leibniz's study of the principles of as investments in the machinery, tools, and equipment of heat-powered machinery. Leibniz's principles of physical production, we can readily show that there are four principal economy, introduced to the United States by Benjamin factors correlating with increiaseof the productive powers of FraJJ\din and others, fonn an essential and integral part of labor: what became known as the American System of political­ 1) The amount of produled to control production pro­ operative. . • cesses of such energy-dense characteristics. To define the mathematical principle indispensable to Perhapsthe best way of demonstratingthe impact of SDI measuring "internal org.anization'� of machinery, or of anal­ technologies on the economy, is by considering the applica­ ogous sorts of processes, Leibniz specified his geometrical tion of these technologies to the colonization of the MOon Principle of Least Action. and Mars. Comparison of thehistorical changes in productivities of The establishment of artificial, habitable environments assortednational econom ies, provides us a clearexperimen­ on Mars, and the need for continuously powered flight by talillustration o f the functional interdependencyof increases flotillas, at one-gravity betw�en Earth-orbit and Mars-orbit,

30 Feature EIR. May 2, 1986 \ req uires the technologies of controlled thermonuclear fu s�, A target of not less than 10% of the national labor-force of coherent electromagnetic pulses of very high energy-den­ employed in re levant science and engineering occupations, sity self-focusing effects, and of optical biophysics. It also and a doubling of present percentiles of national incomes requires dedicated types of parallel-processing computers in allotted to capitaf-goods and infrastructure , would be a good the megaflop range. We shall be ireatly advantaged to have choice of targets for the coming JO years. We must shift analog-digital hybrids of the quality indicated. If our planet employment away from emphasis upon non-scientific ser­ undertakes such a colonization program seriously, we could vices and redundant administrative and selling functions, begin colonization of Mars during the third decade' of the moving these percenti les ofthe labor-force into either science coming century ; such a target has already been recommended and engineering, or capital-goods production. This requires by the U.S. National Commission on Space. obvious adjustments in educational policies, and also in pol­ Obviously, if it is fe asible to establish colonies on Mars , icies governingpriori ties in preferential tax-rates and in flows iUs a much easier task to apply the same technologies to such of credit. tasks as developing rich agro-industrial . complexes in the On condition that we inspire our populations, to associate middle of the great deserts of Earth. It is even cheaper, to personal achievement with contributions in these directions, revolutionize the design of new qualities of cities in the more and that we educate our populations to cope with the ·new agreeable climates of Earth; With these technologies, the technologies I have indicated, we shall accomplish the de­ Earth's food-supplies can be produced far more cheaply, sired victory of strategic defense over thermonuclear offense, more abundantly, by energy-intensive industrial-process and shall also solve the principal non-military strategic prob­ methods, aided by applications of optical biophysics. lems of our planet. If we adopt the proper policies, the crea­ The connection between the technologies of an SDI sys­ tive powers of many millions of scientists and individual tem and space-colonization technologies, is so immediate , operatives will do the rest. that the research and development for the one is nearly iden­ tical with that for the other. If we could be certain that such technologies could be caused to spill over rapidly, from the military and. !ipace-engineering fields, into production gen­ erally, we can safely estimate that the productive output of an average operative could be increased by more than tenfold over a period of between one and two generations ahead. In general, we may say, that the firepqwer and mobility which certain technologies contribute to military capacities, corre­ late with the increase of productivities in the civilian domain. Therefore , the central practical question to be cortfronted by governments and industries in connection with SDI, is the question of assuring ourselves that this desired kind of spill­ over of technolo&ies into the civilian domain does occur. Technology is transmitted into production chiefly through improvements in the technology of capital-goods produced. The greater the rate of advance'ment of technology in capital goods produced, and the greater the rate of investment in capital goods per-capita , the greater the rate of increase of productivity generally. Thus, the build-up of the capital­ goods sector, for SDI and space development, is the most efficient mechanism by which such technologies are trans­ mitted directly into the civilian domain. It is merely necessary to build up these new capacities on a scale significantly great­ er than that required for SDI and space requirements, and to cause the excess capacity to spill over rapidly into capital­ goods for civilian production . To ensure that this desired success occurs, we must adopt the policy of increasing greatly the percentiles of employ­ ment devoted to scientific and engineering occupations, while increasing significantly the percentile of national output de­ voted to capital goods productionand infrastructure building.

EIR May 2, 1986 Feature 31 TIilllDvestigatioD

llilateral paneltalkS up legalizing the . dope trade

by Gretchen Small

As lbero-American representativesmeeting in Rio de Janiero of heroin. With "Dope, Inc.'1 running Washington, tuming proposed to crush the drug trade by arresting bankers who the Ibero-American economy into an industrialized cocaine profit from it, in Washington, D.C., a select committee of machine-producing, shippihg, and laundering the procee& those bankers and their supporters, issued a proposal for an from the trade-came easier. While the dopetrade grew, the "alternative" to winning the War on Drugs in the Western International Monetary Fund'moved in to run the economies Hemisphere:Legalize dope. of the region, and the Trilatleralists and Jesuits invited the

The recommendation is contained in the just-released . Cubans and the Soviets to join their "insurgencies" in Central 1986 Report' of the Inter-American Dialogue, a group of America. Cycles of war and 'insurgency in Central America "doncerned citizens" of the Western Hemisphereheaded by are crucial to Global 2000's Population reduction program, Xerox Corporation founder, Sol Linowitz. The Dialogue re­ Carteradministration official s stated, because it is the young, : portl elltitled "Rebuilding Cooperation in the AJpericas," child-hearing-agepopulation that will die. outiines a new phase of warfare against the Hemisphere by Ten years later, the new Linowitz commission again pro­ the international narcotics syndicate, "Dope; Inc." posesminor variations on International Monetary Fund pol­ The cream of America's Liberal Establishment form Li­ icies, urges that Ibero-Amtrica's military institutions be nowitz's "concerned citizens" group, together with the men weakened, and demands that the Soviet Union have a say i.n Who implement policy for the LiberalEstablishment in lbero­ Western Hemisphere affairS; using Central America as a America. They are the same Establishment leaders, including bargaining chip in U.S.-Soviet global negotiations. many from the Trilateral Commission elite policy-making Opening the door to drbg legalization in the Western group, who can be found at the head of the "nuclear freeze" Hemisphere, however, is the key to the whole package. Six movement, opposing President Reagan's Strategic Defense months ago, leaders of the drug lobby in the United States Initiative, because it upsets theirback-channel deals witlithe reported to investigators thty had set out to achieve one Soviet Union. The same names arefound on the list of spon­ objective before the end of the second Reagan administra­ sors of the Global 2000policy promotedby the Carteradmin­ tion, to revive discussion ot drug legalization as a "legiti­ istration, the pian to create a "post-industrial society"which mate" option. Reagan's promise to carryout a War on Drugs reduces the world's projected population by 2 billion by the had destroyed all the advances the druglobby achieved under year 2000. Carter, these sOurces compl�ined. In essentials, the Inter-American Dialogue's recommen­ The key to reversing the I¥lti-drug sentimentwhich swept dations merelyupdate the policies outlined by the Linowitz the United States under ReJgan, dIug-lobby strategists ar­

Commission in 1976, the U.S. group headed by Linowitz gued then, is to present dope as too formidable an enemy to . which drew up the policies carried out by the Carter admin­ beat. Linowitz's 1986 Inter-American Dialogue Report sig­ istration in Latin America. nals that the EasternEstablis�nient elite has decided that now President Jimmy Carter was the first U.S. President to is the time to implement that ,strategy. publicly endorse the decriminalization of marijuana, tocon ­ The DialogUe's Report Ilammers away at how difficult sider such action for cocaine, and to advocatethe legalization defeating the narcotics business will be, until they arrive at

32 Investigation ElK May 2, 1986 theirdesired conclusion. The bottom line on'narcotics for the Dialogue, however, The war against narcotics in the Hemisphere will is profits. be long and difficult. . , . The problem will persist . The argument is an old one. In 1923, British Lord Inch­ for some time to come, and we had best prepare our­ cape , of P&O Steamship, authored a reportfor the League of selves for a long battle. . . . Waging the war on drugs Nations, which argued that the opium trade must be kept costs money. . . . Readiness to explore fresh ap­ legal, in order to "protect the revenues" of the British colo­ proaches, including some not now on the political nies, so that they could continue to meet debt payments to agenda, the British Crown. , "Waging war on drugs cost money," argues the Dialogue, is needed, says the Report. A regional body is proposed, a statement with as much meaning, as, say, the statement, to explore new approaches: Because narcotics is s�h "wearing clothes costs money." The Reportthen continues: a formidable problem, the widest range of alternative More important, it will inevitably resultin the loss approaches must be examined, including selective le­ of jobs, income, and fo reign exchange that the drug galization . It may be useful , for example, to consider trade provides, unless legitimate economic growth policies that distinguish between the damage caused provides a decent alternative. . . . To curtail drugpr0- by the use of narcoticsper se, and the harm that results duction is to destroy the livelihoods of tens of thou­ .from the illegality of drugs. sands of people, to cripple local economies, and to The report acknowledges that legalization could lead to foment political opposition. Moreover, although only at least 60million people using cocaine in the United States, a small fraction of drug profits return, to producing and protests that its members "are well aware of the risks countries in Latin America, the amounts are substan­ of making dangerous drugs available legally, and are not tial fo r strapped economies carrying large burdens of ready ourselves to advocate it." That fig leaf attached, the external debt. In Peru , repatriated drug profits of an report then continues to push legalization. It is a study in estimated $600 million represent 20% of official ex­ sophistry. port earnings [emphasis added] .

Because narcotics are illegal, and because of the Loss of jobs fro�a waron drugs? Cripple the economy? enormous profit to be made from them, crime and For 10 years, Dope, Inc. has seized control of ever larger corruption are inevitably associated with drug chunks of tile lbero-American economies. Money-flows abuse ....Drug addiction is a tragedy for addicts . through Ibero-Americaincreased have withthe cocaineboo m, The illegality of drugs, however, makes the damage but production of realwealth has collapsed to levels of the greater for both the addicts and the societies of the early 1960s,but which today must sustain a much increased Americas. Addicts must deal with criminals, and hence population. Millions more Ibero-Americans are starving than run the risk of death fromcontaminated dru gs. Society ever before. Credits and inputs have ihifted from food pr0- suffers from the crimes committed to finance drug duction, into the ultimate "cash crop," narcotics. Where habits. And Latin America and the United States are governments havesuccessfully raided marijwplapla,ritation s, wracked by the corruption and organized crime as­ such as those in Chihuahua, Mexico, or the enormous co­ sociated with illicit drugs. caine laboratories in the jungles of Peru and Colombia, no colonies of well-to-do peasants have been uncovered, but If selective legalization of drugs could reduce the slave labor camps, where the local populations, including enormous. profits derived from drugtraffi cking, it would young children, have been impressedinto laborfor themafia. deCrease vice and corruption. It might also shift de­ Like the. description of the "tacit alliance" between mand away from the most harmful drugs [emphasis "guerrillas" and the mob, the Inter-American Dialogue's added] . picture of life in a narcotics economy is a lie. To sustain the argument, narco-terrorism, the integrated The jobs that might indeed be lost in a serious war on underworld which threatens civilized life in the Americas, drugs, are their own. Signing the report are the cream of is dismissed briefly. "Drug criminals and anti-government the Eastern Establishment: Trilateral Commission members guerrillas often cooperate with one another. In afew cases," McGeorge Bundy, Robert McNamara, Cyrus Vance, and they state, "the guerrillas themselves are involved in the Elliot Richardson; corporate "leaders" such as · Ralph Dav­ narcotics trade. More typ ically, traffickers and guerrillas idson, chairman of Time, Inc., Ford' FOUIidation President operate in the same regions, distant from national capitals FranklinThomas , mM's Ralph pfeiffer; andpoliticians such and beyond the control of central governments-the com­ as Arizona Gov. Bruce Babbitt and San Antonio, Texas mon enemy against which they are tacitly allied [emphasis Mayor Henry Cisneros. added] ." Thus swept away by the Dialogue's members is "Each member subscribes to the report'soverall content the M- 19's assassination of half of Colombia's supreme and tone, and supports its principal recommendations," states court in November, 1985, on behalf of the cocaine kings. the preface to the report, "except as noted by individual

EIR May 2, 1986 Investigation 33 1

statel,1lents appended to the text." Not one member of the Malvinas, in August 1982, �ith the United States insisting . group objected to the report 's arguments on narcotics. that support for the Internati�nal Monetary Fund be the test ' Represented on the Commission are the top rosters of of any nation 's alliance with the United States. Dope , Inc.'s banking houses: the chairman of Marine Mid- As Ibero-America's elit� considered the effect of U.S. . land Bank, John Petty; Chemical Bank's Terence Canavan; policy upon their historic relations with that nation, La­ co-chairman of First Boston International,Pedro-Pablo Kuc­ Rouche proposed a strategy fCllrlbero- America to both defend zynski, who served as energy and mines Minister in Peru itself, and tip the scales against the Soviet-allied Liberal under Prime Minister Manuel Ulloa in 1980-82. Mexican Establishment within the United States itself. Written in July "industrialist" Augustin Legorreta used to be a banker, until 1982, LaRouche's pamphlet,l Operation Juarez, demonstrat­ Mexican PresidentJose L6pezPortillo nationalized the banks. ed how lbero-America could rapidly become an economic Leading supporters of liberation theology signed the Dia­ and political superpower for Goodwithin the world, by form­ logue's call. Father Xabier Gorostiaga, a Panamanian Jesuit ing a science-driven commol market. Political will and·au­

now working for the Sandinista government in Nicaragua; daciousness, LaRouche argued, are the only ingredientslack- . and the Chase Manhattan bank board member who coor­ ing for such a strategy. dinates the "American Heresy" within the Catholic Church Operation Juarez create4 a powerful counter-faction in from his post as president of Notre Dame University, Theo­ the Americas, which lookecl to LaRouche's forces in the dore Hesburgh. Panania's Catholic Archbishop Marcos United States to help them ck:an Dope , Inc . and the Soviets . Mcgrath also signed the report without qualification. out of the Hemisphere . In 1 �3, the "Linowitz Commission , Latin American representatives On the Commission in­ take two" was hurriedly cre.ted to defend the sway of the . clude men whose careers soared in their countries, because banker's pragmatic "Protestant ethic ," against the threatened of the pro-drug atmosphere in Washington under Carter. outbreak of optimism about lbero-America's potential for . Men like Panama's Nicolas Ardito Barletta, the former Pres­ "greatness. " identof Panama who quit his post in September 1985, rather than defend his nation from the International Monetary Fund: Soviets, yes; national defense, no For more than a decade before , Barletta had overseen the The economic proposals of Rebuilding Cooperation in . operations of Panama's off-shore banking center. Also sign­ the Americas provide an element of humor. After all, there ing is Rodrigo Botero, the Colombian baDker who as finance is a certain irony created when Chicago University's Ni�ky . minister in the presidency of Alfonso L6pez Michelsen cre­ Barletta, or "PPK," as Firs. Boston's co-chair Kuczynski ated the so-called "sinister window" at Colombia' central likes to be called, sign a statementwarning that "democratic banki, which allowed drug money to be deposited, no ques- governments should be helped to overcome their tough eco­ . tions . asked. nomic problems, not taught lessons about particulareconom­ ic orthodoxies. " Counter to the LaRouche plan The debt crisis has not passed, the Dialogue acknowl- . Under the IS-point Anti-Drug War Plan drawn up by edges. Nor have the economies in the region recovered from U.S. presidential candidate Lyndon LaRouche, each of these the depression levels to which paying the debt has reduced men could be arrested and tried, for serving our nations' them. And the Dialogue proposes that a "comprehensive enemies, during time of war. Legalization advocates serve program of inter-American economic cooperation" be drawn as the fifthcolumn within, undermining the fighting morale up, "to restore economic health to the region." of the governments of the region (see box) . Presented as going "beyobd" the Baker Plan, U.S. Trea­ LaRouche's proposals for the Americas were the unspo­ sury Secretary James Baker'� call for a $20 billion increase ken agenda item of the Dialogue-in fact, it!! reason for in lending to the world's debtors , the Dialogue's five-point existence. Linowitz established the Dialogue group in 1983, "comprehensive program" is still one more variation on IMF in an attempt to hold together traditional channels of power austerity. Debt payments and commodity prices have turned between the American blue-bloods of Dope, Inc., and their Ibero-America into a net eXpC)rter of capital, transferring 6% Ibero-American "colonies." The self-assigned task of the of yearly GNP out to the creditors. That capital drain must Dialogue's participants, calling themselves the "moderate be reduced, the Dialogue in!lists, to equal only 3% of GNP andpragmatic leaders" of the continent, was to determine the yearly! $20 billion a yearin new monies areneeded for Ibero­ priorities and options for action by the nations of the hemi­ America alone. Where will such sums come from? Capital­ sphere, so that no patriotic movement could break .the dope izing interest payments , can be called new money, they pro­ bankers' control. pose, as can the value of property titles handed over tolbero­ U.S.-Ibero-American relations had suffered their most America's creditors , in payment, under "debt for equity" profound crisis in decades in 1982. U.S. support for Great schemes. Foreign investmentJ can be called new lending, and Britain's colonialist adventure against Argentina in the Mal­ will increase, as long as "suitable exchange rates" are main­ vinas War, violated U. S. treaty obligationswith its American tained, so foreigners can buy ;Ibero-America up cheap. neighbors . The debt crisis followed immediately upon the Perhaps most entertaininG is the proposal for the "creation

34 Investigation EIR May 2, 1986 of a mutual fund, perhaps under the auspices of the World forces." Bank or IDB [Inter-American Developmen� Bank], �o attract The Dialogue speaks of coordinating a "network" of par­ . flightcapital and other funds forreinve stment in Latin Amer­ ties, trl:Jdeunions , women's groups, students, etc., into a sort ican countries." Some $1 to $2 billion might return a year to of Democratic International, which can counter both "com­ lbero-America, the Dialogue suggests, of the "more than munists and the military establishments." Also praised is the $100 billion" Latin" Americans hold "in assets outside the U.S. State Department's Project Democracy, financedthrough region." the National Endowment forDemocrac y. "Conditions will, and should, be placed on Latin Amer­ Who does the Dialogue work for? Says the-Dialogue, the ican countries in exchange for new financing," the Dialogue Soviet Union's right to interferein WesternHemisphere mat­ states, and governments should join a "standing group" of ters must be institutionalized, and the U. S. -Soviet "talks" on bankers and international financiers, to work out a regional regional matters, first held in 1985, regularized. "We wel­ "consensus" of the " pragmatists accepting the International come the initiative of the current U.S. administration to dis­ Monetary Fund rule. " cuss issues of regional security with leaders of the Soviet The next task of the Dialogue, they report, will be to set Union," the Dialogue states, because it can "help to prevent up a special task force to discuss weakening the military superpower competition from intensifying." They suggest, institutions of Ibero-America, with Central America's mili­ "It is worth exploring whetherdiscussions between the United taries targeted in particular. The task force, to include mili­ States and Cuba might advance the cause of peace. " Believes tary and civilian leaders, will issue "detailed recommenda­ the Linowitz Commission, "Neither country stands to gain tions" on how to "institutionalize civilian control of the ¥IDed from escalating conflict in the region."

du�tion or trafficki�g in drugs, is gUilty of the crime of giving aid and comfort to the enemy in time of war. . . . LaRouche: Prosecute 11) The primary objective of the War on Drugs, is military in nature: to destroy the enemy quasi-state, the advocates of legalization international drug-trafficking interest, by destroying or confiscatingthat qUaSi-state's economic and financial re­ At a March 1985 seminar in Mexico City, EIR firstpre" sources, by disbanding business and political associations sented a 15 -point war plan against narcotics fo r the West­ associatedwith the ding-traffickinginter est, by confiscat- · ern Hemisphere, drawn up by Lyndon LaRouche. Ex­ ing the wealth accumulated through complicity with the cerpts of the War plan relevant to the signers of the lnter­ drug-traffickers' .operations, and by detaining, as "pris­ American Dialogue fo llow. oners of war" or as traitors or spies, all persons aiding the drug-traffickinginter est. . . . 1) What we are fighting, is not only the effects of the use 14) One of the worst problems we continue to face in of these drugs on their victims. The international drug­ combatting drug-trafficking, especiallysince political de­ traffic has become an evil and powerful gQvernment in its velopments of the 1977-81 period, is the increasing cor­ own right. It represents today a financial, political, and ruption of governmental agencies and personnel, as well military power greaterthan that of entire nations within as influential political factions, by politically powerful the Americas. It is a government which is making war financialinterests associated with eitherthe drug-traffick­ against civilized nations, a government upon which we ing as such, or powerful financial and business interests must declare war, a war which we must fight with the· associated with conduiting the revenues of the drug-traf­ weapons of war, and a war which we must win in the same ficking. . . . In addition to corruption of governmental spirit the United States fought foithe unconditional defeat agencies, the drug-traffickers are protected by the growth of Nazism between 1941 and 1945 ..... of powerful gro.ups which advocate either legalization of 2) Law-enforcement methods must support the mili­ the drug-traffic, or which campaign moreor less efficient­ taryside ofthe War on Drugs. The mandate given to law­ ly toprevent effective forms of enforcement of laws against

enforcement forces deployed in supportof this war� must which the usage and trafficking of drugs. Investigation be the principle that collaboration with the drug-traffic, or has shown that the associations engaged in such advocacy with the financieror political forces of the international are political arms of the rnancial interestsassociated with . drug-traffickers, is treason in time of war .... the conduiting of revenues fronithe drug traffic, and that 2)b) Any person ...advocating the legalization of they are therefore to be treated in the manner Nazi-sym­ traffic in such substances, or advocating leniency in anti­ pathizer operations weretreated in the United States dur­ drug military or law-enforcement policy toward the pro- ing World War II.

EIR May 2, 1986 Investigation 35 United States and Canada

Sol M. Linowitz, Co-Chairman: For­ mer U.S. Ambassador to the Organi­ zation of American States and Co-Ne­ gotiatior of the Panama Canal Treaties; Peter D. Bell, Co-Vic · Chairman: President, Edna McConnell Clark Foundation; Bruce Babbitt: Governor of Arizona; McGeorge Bundy: Former National Security Adviser; Terence C. Canavan: Executive Vice President, Chemical Bank; Henry G. Cisneros: Mayor of San Antonio; Joan Ganz Cooney: President, Children's Televi­ sion Workshop; Ralph P. Davidson: Chairman of the Board , Time, Inc.; Jorge I. Dominguez: Professor of Government, Harvard University; Marie-Josee Drouin: Executive Di­ rector, The Hudson Institute, Canada; Dianne Feinstein: Mayor of San Fran­ cisco; Maurice A. Ferr�: Former May­ or of Miami; Albert Fishlow: Chair­ man , Department of Economics, Uni­ versity of California, Berkeley; Doug­ las A. Fraser:Former President, United Auto Workers; Hanna Holborn Gray: President, University of Chicago; Ivan Who's out to III L. Head: President, International De­ velopment Research Centre, Canada; Theodore M. Hesburgh: President, The 'citizens a University of Notre Dame; Don John­ ston: Chairman , J. Walter Thompson Company; Juanita M. Kreps: Former of Secretary of Commerce; Robert S. McNamara: Former President of the World Bank and Secretary of Defense; 'Inter-Ameril William G. Milliken: Former Gover­ nor of Michigan and Chairman of the National Conference of Governors; Ed­ mund S. Muskie: Former Secretary of State and Senator from Maine; Hernan Left , from top: Every one of these figures is an leading Padilla: Former Mayor of San Juan , advocate of the Nuclear Freeze movement, a foe of the Puerto Rico, and Chairman of the Na­ Strategic Defense Initiative, and a proponent of a "New tional Conference of Mayors; John R. Yalta" scheme for dividing up the world with the Soviets. Petty: Chairman and Chief Executive McGeorge Bundy, "chairman of the Eastern Establish­ Officer, Marine Midland Banks, Inc.; ment," architect of the Vietnam War. Robert S. Mc­ Ralph A. Pfeiffer, Jr.: Chairman, IBM Namara, perpetrator of the Vietnam "body count" as de­ World Trade Americas/Far East Corp.; fe nse secretary under Kennedy and Johnson; population­ Robert D. Ray: Chairman, Life Inves­ reduction fanatic, whose policies at World Bank led to tors Inc. and Former Governorof Iowa; genocide . Cyrus Vance, secretary of state under Carter Elliot L. Richardson: Former Secre­ who helped Khomeini takeover in Iran; Trilateral Com­ tary of Defense and Attorney General; mission member; initiated "Global 2000 Report." Ed­ Franklin A. Thomas: President, The mund Muskie, Jimmy Carter's last secretary of state, Ford Foundation; Cyrus R. Vance: issued genocidal "Global 2000 Report" blueprint for cut­ Former Secretary of State ; Clifton R. ting world population by 2 billion by the year 2000. Theo­ Wharton, Jr.: Chancellor, State Uni­ dore Hesburgh, Trilateral Commission; board of Chase versity of New York System. Manhattan Bank; under his tutelage Notre Dame Univer-

36 Investigation Latin America and the Caribbean Galo Plaza, Co-Chairman: For­ mer Secretary General of the Organi­ zation of American States and President of Ecuador; Rodrigo Botero, Co-Vice Chairman: Former Finance Minister, Colombia; Peggy Antrobus: Profes­ sor, University of West Indies, Barba­ dos; Nicolas Ardito Barletta: Former President of Panama; Guillermo Bue­ so: Former President, Central Bank of Honduras; Oscar Camilion: Former Foreign Minister, Argentina; Fernan­ do Henrique Cardoso: Senator, State , of Sao Paulo, Brazil; Robert Civita: President, Editora Abril, Brazil; Oliver F. Clarke: Chairman and Managing Director, The Gleaner, Jamaica; Jose Maria Dagnino Pastore: Former Fi­ nance Minister, Argentina; Jorge Fon­ taine: President, Federation of Produc­ tion and Commerce, Chile; Alejandro Foxley: President, Corporation for Economic Studies of Latin America, Chile; Professor ofEconomics , Univer­ sity of Notre Dame; Carlos Fuentes: Writer and Former Ambassador, Mex­ lake dope legal: ico; Florangela Gomez Ordonez: President, Banco Popular, Colombia; Xabier Gorostiaga: Director, Region­ bove suspicion' al Association for Economic and Social Research, Nicaragua; Osvaldo Hurta­ do: Former President of Ecuador; Elsa the Kelly: Ambassador to UNESCO, Ar­ gentina; Israel Klabin: Industrial and Former Mayor of Rio de Janeiro, Bra­ can Dialogue' zil; Pedro Pablo Kuczynski: Co­ Chairman, First Boston International and Former Minister of Energy and Mines, Peru; Augustin F; Legorreta: Financier and Industrialist, Mexico; sity became center of U.S. opposition to Vatican, focused Marcos McGrath: Archbishop of Pan­ on population-control and related issues. ama; Daniel , Oduber: Former Presi­ dent of Costa Rica; Jose Francisco Pena Right, from top : Pedro-Pablo Kuczynski, indicted in Gomez: Mayor of Santo Domingo, Do­ 1986 for illegal oil dealings as Energy and Mining Min­ minican Republic; Alberto Quiros: Di­ ister of Peru (1980-82); widely named in connection to rector, Editora El Nacional, Venezuela; drug-money laundering as co-chairman of First Boston Javier Silva Ruete: Senator and For­ International. Nicolas Ardito Barletta, as planning min­ mer Finance Minister, Peru; Leopoldo #1 , ister, oversaw the creation of Panama 's notorious offshore Solis: Chairman , Council of Economic banking center; later was vice-president of World Bank. Advisers, Mexico; Julio Sosa Rodri­ Israel Klabin, as mayor of Rio de Janeiro, hosted inter­ guez: Industrialist and Economic Ad­ national board of Center for Strategic and International viser, Venezuela; ,Gabriel Valdes: Studies in 1981 which reportedly discussed developing President of Christian Democratic Party Amazon as cocaine zone. Augustin Legorreta, was board and Former Foreign Minister, Chile; chairman and president of Financiera Banamex, one of Mario Vargas Llosa: Writer and For­ the biggest banks nationalized by the Mexican President mer President, PEN International, Peru. in 1982 for capital flightand large-scale irregularities.

Investigation 37 Europe joins U. S. terror crackdown, expels Libyans

by Omar al Montasser

Since the March 25 confrontation in the Gulf of Sidra be­ for Greece under Papandreou, not a single European foreign tween u.s. planes and Libyan vessels, more than 50 Libyan minister dared to say on April 21 that he was not convinced . diplomats and related agents have been expelled from Eu­ of Libya's involvement in the rebent terror wave. rope . The bulk of the expulsions was decided after two emer­ By denouncing and expellirlg Libyan diplomats, the Eu­ gency meetings of the European Community's foreign min­ ropeans have become the targets of Libyan retaliation; but isters in Paris on April 17 and in The Hague on April 21, they have not yet given themselves the means to effectively days after the April 15 American raid against terror bases counter such threats, although idtelligence sources report that within Libya. cooperation among European intelligence services and their ·Coupled with the decision on April 21 to drastically re­ American associates is more advanced than at the govern­ duce the Libyan diplomatic staff throughout Europe, have ment level. Such cooperation has led to mass expUlsion of beenmeasures to curtail the freemovement of Libyan nation­ Libyan diplomats . I als on the continent. As a furtherexample of Europeanunity , i it was also decided that any Libyan expelled fromone country Intelligence cooperation with France . of the 12-nation European Community, should be considered Military cooperation between France and the United States as undesirable in the entire Community. On April 23, at a falls under the joint direction of Socialist President Francrois meeting of the European justice and interior ministers, or Mitterrand and Premier Jacques Chirac . Mitterrand, who, as Trevi Group as this gathering is called, more practical mea­ President, considers military � foreign affairs his "private suresof European police coordination were decided. domain," opposed such cooperation; weakly Chirac agreed. Internal security is, however, another matter, and since early Far from an all':out war April, French counter-intelligeIiceservices have been able to These political measures are a far Fry from an all-out war prevent several serious terrorist attacks. At the beginning of against Libyan�sponsored terrorism, which should include April, a Libyan team planned tlJe assassination of the Amer­ economic, political, and military sanctions. They even fe ll ican ambassador to France, another team planned a massacre short of the qemands made by the British government of at the U.S. consulate's queue bf tourists waiting for their Margaret Thatcher for a general break of diplomatic relations visas. At the same time, police in Lyon discovered that the between all of the European countries and Libya. French terror group Direct Action and one of its leaders, The moves reflected two concerns; first, that even if it­ Andre Olivier, had signed a finl¥lcialcontract with Libya for wants to stubbornlymaintain an illusory "right to differ" with the bombing of the U.S. consul.te there� Washington's ways of dealing with terrorism, the Commu­ On April 6, Ali Berragdoun and Mohammed Kelbash nity has to agree to Washington's general drive; secondly, a wereexpelled . Under the cover of press attache, Kelbash was more painful realization that this "right to differ," and even a Libyan intelligence chief and ran a large network. Both moreviolent distancing from American policies, didn't save were arrested carrying machine-guns and hand grenades in Europe fromLibyan- and Soviet -sponsored terror waves. But diplomatic pouches to be used against the U.S. consulate.

38 International EIR May 2, 1986 ! : I Two of their agents were alsq expelled: a former captain in These expUlsions can be onlythe first steps. Libyan op­ the Algerian army , Fethi CherJi, who served as the explosive position leader and former prime minister, Abdel Hamid expert of the cell, together \\lith one Roundi Ben Ali, who Bakoush, told the Italian daily Corriere della Sera on April .used a false Tunisian passpo�. Both are reported to belong 22 that such decisions would be useless unless Libya's airline to the "Force- I7" Palestinian! organization-a group which offices as well as commercial and financial institutions were has slipped out of Arafat' s control to work on behalf of Libya. hit, too . The point had been proven only a day earlier when They had been recruited in 1985 in Tunis by Libyan official the Italian police made a breakthrough in the investigation of Salem Agil. Reports also iridicate thatF- 17 is being used to the spring 1985 plot to assassinate the U.S. ambassador to discredit Arafat as part of an ongoing political coup within Rome. On April 21, they had arrested Urabi Mohammed the PLO. Fitouri, a former Libyan diplomat in Rome,_ who was the On April 18, a much larger operation took place: Four manager of the Libyan Arab Investment Company (LAIC) mOre Libyans were expelledj In cluding a former diplomat, . there . As a banker, Fitouri had personally paid Hamuda Moawyah Souairi, ex-ambassador to Ghana. Souairi is re­ Daghdugh for the murder. The arrestbrought to light the fact portedto have worked in Paris out of the offices of the "Arab that the LAIC is the Libyan agency which holds 15% of Fiat's People's Congress" of Omarial Hamdi. The APC is one of shares.Fitouri 's associate in the plot was one Musbah Mah­ the main channels of Libyan monies to Arab radical groups mood Werfalli, who is the Libyan cultural attache in Malta. throughout the world, and is one of Libya's essential intelli- - A search in Fitouri's flat on April 22 uncovered plans for gence branches. terrorist operations in Italy and abroad. French police caught some 53 sympathizers of Direct However spectacular, these expUlsions have only _ Action on April 16, and kept 6 in jail, among them an Alge­ scratched the �urface of the terror netWorks. More important rian national, Hamid Lallaoui, who belonged to the interna­ discoveries were made through the arrest of Nazir Narwaf tional branch of the movement. A second generation Alge­ Mansur Hindawi, a Jordanian with a Syrian passport. Hin­ rianimmigrant in France, Lallaoui belonged to the "autono­ dawi was arrested after sending his Irish girlfiend, Anne mist" commandos which have close ties with Islamic radical Murphy, on a London-Tel Aviv plane with a sophisticated groups associated with Ben Bella, and may represent a vital explosive device inside her luggage. Thebomb was timedto link between DirectAction and Middle Eastern terrorism. explode above London; Anne . Murphy and 400 others pas­ , sengers were to have died on April 17 . Investigations showed Bonn shoos Libyan 'diplomats' that the bomb . may have come from Czechoslovakia and, Meanwhile, despite theprotests of Foreign MinisterHans­ according to certain accounts, was prepared at the Syrian Dietrich Genscher, the West German government on April embassy in London. 10 expelled two leading Lib)ian diplomats in Bonn. Ahmad Then came the discovery on April 19 that Hindawi's Omar Issa and Mahmud Ahmed Shibani belonged to the natural brother,Ahmed NarwafMansurHa si, was implicated Libyan intelligence branch responsible for watching and as­ in the "Le Belle" bombing. The West Berlin police interro­ sassinating opponents of Qa4dafi. Both were reportedly in gation of him after the arrest of his brother, produced evi- · touch with East Berlin-based Libyan diplomat Elamin Ab­ dence of his role in planning the operation. Hasi, who is now

dullah Elamin, who has been seen as the brain behind the known to( have spent some time in Libya for training, came April5 bombing of the "La Belle"discotheque. While in the to West Berlin in 1975 from East Berlin. Investigations are Bonn embassy in thespring of 1985, Elamin was responsible alsO' bringing to light an international network around Hin­ for the murder of Qaddafi opponent Gabriel Denali. How­ dawi, operating in Paris, Tunis, Cairo, West Berlin, Rome, evet, Bonn did not even expel him but merelypleaded for his Montreal , and Kuwait. departure. He leftin July 1985 for East Berlin. Europe seems to be finally waking up to the danger of Since, April 21 , the toll h� become heavier. On April 22, international terrorism. Many other police operations have the British government announced it would, expel 21 Libyan proven the point in recent weeks. A significantoperation on students. The bulk are pilot traineesat the Oxford air training which ·we will have more to report soon, was the expulsion school at Kidlington. Among them is Adel · Massoud Saad on April 18 of threeSyrian diplomats in Rome andthe arrests who, on March 28, had told Radio Tripoli that he was ready of some 15 Lebanese, Egyptians, and Italian na�onals. A to fly a kamikaze mission against the British-based U.S. joint operationbetween the Italian government and theAmer­ militarygarrison s. All of tho�e expelledhav � beenmembers ican Drug Enforcement Agency, this raid dismantleda lucra­ of Libya's revolutionary committees, represented in Britain tive heroin smuggling network linkingLebanon 's Bekaa val­ by the "Libyan Action Committee" led tly Bostan Qadiri . ley to Rome. The three Syrian diplomats carried the heroin . More expUlsions are under �y. • by car across Greece and Yugoslavia, and are reported to In West Germany itself, the same day Bonn announced it have built a small refinery within the embassy itself. Coming would reduce the Libyan diplomatic staff from 41 to 19. less than three months after a similar bust in Madrid, this Similar numbers are expected,to be expelledfrom other Eu- proves the point that drug smuggling is one of the essential ' ropeancountri es. means for Syria to finance international terrorist operations.

EIR May 2, 1986 International 39 concentrated on Israeli government-sanctioned arms smug­ gling since his 1984 retirement as the chief of staff of the Israeli Defense Forces' manpower branch. This is not the first time that the Sharon crowd in Israel government has been caught red-handed in actions hostile to U.S. national security, and has labeled the case a "rogue operation" or an "aberration." In December 1985, Jonathan Mossad agents busted Pollard,an employee ofU .S. Naval Intelligence, was n,j)bed at the Israeli embassy in' Washington with classified U.S. selling arms �o Iran documents. Pollard, who subsequently admitted spying for Israel, had workeddirectly for Israeli spy-master Rafi Eytan, by Joseph Brewda a Sharon flunky. like Bar-Am. Shortlyafter thearrest of Pollard , whom theIsraelis iden­ tified as a "rogue operative," the New England�based firm Seventeen individuals from Greece, Israel, Britain, and Napeo was busted smuggling U.S. tank-barrel production­ France ,' were indicted on April 22 by U.S. authorities for technique innovations to Israel. The arrest was again termed conspiring to ship over $2 billion of U.S. anti-tank TOW "anti-Semitic. " missiles, F-4 and F-5 combat jets, cluster bombs, and other LastAugust, the FBI and other law-enforcementagencies weaponry to Iran. The indictments, the largest arms-export arrested a San Jose, California-based smuggling ring which . case in U. S. history, represent a major blow agllinst a pene­ was attempting to smuggle 5,000 TOW missiles to Iran, as tration operation run by the Sharon faction of the Israeli part of the same "shopping-list" that Bar-Am was working Mossad into the U. S. military and intelligence community . on. The leader of the ring, Paul Sjeklocha, (a.k.a. Cutter) Accordi� to the criminal complaints filed in the South­ had been recruited to Israeli arms smuggling networks in ernDistrict of New York and intelligence sources,the leaders 1982 by Ariel Sharon personally, at a meeting held with him of this ring were Samuel Evans, an American attorneyresid­ for this purpose in Israel. !ng .in London, and Israeli Gen . A vrahamBar-Am, a crony The gun-running network now being mopped up has been ofIsraeli strong-man Ariel Sharon. Both Bar-Am and Evans in place since the Carter administration's deal with Iran's arecurrently in jail in Bermuda, where they had beenmeeting Ayatollah Khomeini during the 1979-80 Iranian revolution towork out details of the conspiracy. and the ensuing hostage crisis. It is well established that the According to Dennis Fagan, who headed the investiga­ ISraelis were engaged in massive arms shipments to Iran tion of the Bar-Am ring for U.S. Customs, theweapons were during the U.S. arms embargo. EJR has documented over apparentlyto be shippedfrom Israel toIran underdocuments recent years how the pro-Khomeini terrorist network in the filed for false destinations. The falsified "end-users"· of the United States being protectedby the Carteradministration� U.S. weapons were alleged to be Greece, Turkey, Pakistan, centering around Iranian banker Cyrus Hashemi-was also and the Philippines. Oversight of the smuggling was to be the center of the Iranian gun-running operation. The Israeii directedby the Tel Aviv firm of BIT Co. , Ltd., whose part­ side of the Hashemi gun-running network has been repeat­ ners, in addition to Bar-Am, wereGuri and Israel Eisenberg, edlydocumented by E1R since 1983, and has been well known and individuals only identified as �. Hermoni and Mr. to agencies of the U.S. government during this peri�. Humposa,all ofwhom have beenarrested . However, it was not until 1984, when Hashemi and a Naturally enough, theIsraeli embassy in Washington has groupof collaborators wereindicted , that this network began been screaming, since themorning ofthe arrest,that General to be mopped up. The 1985 indictments of Cutterand others Bar-Am, the number-twoofficer in theNorthern Army com­ continued this clean-up. mand during theSharon-directed Israeli invasion of Lebanon Hashemi himself sued EJR in 1980 after he was identified in 1982, was not acting under Israeli authority. Bar-Am,they as financing Iranian terrorism in the United States One of his claimed, was running a "rogue operation," and the focus on . lawyers was former Justice Departmentofficial Stanley Pot­ Bar-Am was purely an example of U.S. government "anti­ tinger, who was named as anunindicted co-conspirator in the Semitism. " 1984 Hashemi indictments . Speaking from his Bermudaja il cell, Bar-Am begged to Even after this time, Hashemi continued to be prote<:ted differwith his Mossad superiors. "The defense establishment by a faction of U.S. intelligence which was collaboratiiig [of Israel] knows about this group, of which I was an advis­ with theIsraeli Mossad and the KGB in back-doorsupport of er," he said to Israeli press. "And if the state of Israel does Khomeini. Now, it appears that the Mossad network within not help us, we will tell all." Bar-Amrevealed that he had a U.S. intelligence ,is being cleaned out. That Hashemi was letter from lsraeli Defense Minister Yitzhak Rabin, author­ reported to have aided in setting up the recent arrests, only izing him to beengaged inarms de als.Bar-Am hasreportedly confirms the long-overdue unravelling of this operation.

40 International EIR May 2, 1986 April 22 is Lenin's birthday, and habitually a "must" for any Soviet leader to be in Moscow and deliver the traditional keynote address at the fe stivities. Gorbachov did not return to Moscow for the occasion. Why? Gorbachov indeed celebrated Lenin's birthday-in the spirit of a leader dedicated to bringing the Soviet Union to Gorbachov's secret readiness to fight and win a nuclear war by the end of the decade. On April 22, the Soviet military radio, Radio Volga, East Gennan agenda reported that Gorbachov visited "an officers' club" of the GSFG, to hold meetings with General Lushev, GSFG com­ mander in chief; Col.-Gen. Krivosheyev, GSFG chief of by Konstantin George staff; Col.-Gen. Moiseyev , the GSFG's chief political offi­ cer; and Moiseyev's deputy , Lt .-Gen. Donskoi. Ogarkov's On April 23, the East Gennany Communist Party newspaper, name was conveniently omitted, while no other Soviet or Neues Deutschland, reported matter of factly that Soviet East Gennan media made any mention of GOrbachov's stay leader Mikhail Gorbachov-who had left East Gennany the at the "officers' club." day before aftera seven-day stay-had been seen off at the Other top level meetings of G>rbachov, Ogarkov, and Berlin-SchOnefeld Airportby the East Gennan Politburo and the GSFG military leadership wereheld . Well-placed sources a Soviet military delegation led by Marshal Nikolai Ogarkov . inside East Berlin stressedto EIR that, curiously, Gorbachov Neues Deutschland then lists in the send-off delegation, the did not stay at the traditional residence of NiederschOnhausen commander in chief of the "Group of Soviet Forces in Ger­ castle (near Pankow in the northwest quadrant of East Ber­ " many (GSFG), Anny Gen. Pyotr Lushev, and the other top lin), but at the Socialist Unity Party 's Guest House in Klein commanders of the GSFG. Machnow (in the southeast quadrant of East Berlin), "just a TheNeues Deutschland signal confinns the reason for stone's throw away" from the GSFphea 'dquarters located at Gorbachov's unprecedentedly long stay. Marshal Ogar­ Zossen-Wuensdorf, south of Berlin. kov-the Soviet Union's wartime commander in chief for aU EIR's sources report thatGorbachov held meetings with military operations against the United States and NATO, and the militaryleadership over the weekend. On his Sunday visit simultaneously wartime commander in chief for any "limit­ to Cecilienhof in Potsdam-the site of the July 1945 Potsdam ed"military operations against Western Europe-wa�in East Summit between Truman, Stalin, and Churchill, and the Gennany during Gorbachov's week-long tour, and is staying Potsdam Accords-GoIbachov was accompanied by Gen­ on for high-level secret military talks. The signal mention of eral Lushev . . Marshal Ogarkov also confinns that Gorbachov did not stay Gorbachov's secret agenda with its stress on Soviet mil­ so long simply to attend the East Gennan party congress. itary readiness in Central Europe dovetailed with his public Gorbachov had a hidden agenda, involving both top level statements. In his speech before the Party Congress, he de­ military-strategictalks with Ogarkov and the Soviet military livered a sharp attack on the United States and West Ger­ leaders on the scene, and, inspectingsome of the Soviet front­ m�y. Before his departure, the text of a Gorbachov-Ho­ line fonnations. necker joint declaration was released by TASS and the East The GSFG-the spearhead for any future invasion of Gennannews agency, ADN. The language employed against West Gennany-containsnearly 500,000army and air-force the United States and West Gennany was brutal. troops,and constitutes by farthe single most powerful "Group Gorbachov and Honecker declared, ". . . the situation on of Forces" in the Soviet order of battle. the European continent.could be essentially changed for the Well-placed sources had infonned EIR before Gorba­ betterif states like the F.R.G. [West Gennany] would adopt chov's arrival, that he would use his extended stay to hold the path of detente and good neighborly relations. Unfortu­ such secret meetings with the leadership of the QSFG, and nately, the policyof the current West Gennan government is to visit GSFG military installations. running in the opposite direction. � Bonn is then accused of Mikhail Gorbachov arrived on the morning of April 16, supporting "American plans to militarize outer space ," al­ and departed late in the day on April 22, for the return flight lowing the stationing of Pershing� and cruise missiles, and to Moscow. departed late in the day on April 22, for the favoring "the dangerous revanchist forces" (alleged forces return flight to Moscow. Gorbachov had arrived to attend inside West Gennany who want to seize fonner revanchist (and address, on Friday, April 19) the East Gennan Socialist forces" (alleged forces inside West Gennany who want to Unity Party's XIth PartyCong ress, which beganon April 17, seize fonner Gennan territory in Eastern Europe). and ended on April 21. Had the Party Congressbeen his only Taken together with the fact that most of Europeis living consideration, then theSoviet leader could have departed imy in a fool 's paradise concerning the Soviet threat, Gorba­ time after he spoke on Friday, or, on Monday at the latest. chov's hidden agenda and the joint declaration are ominous.

EIR May 2, 1986 International 41 the governor's cousi"n, becaus� he knew who was behind the Espinoso Foglia murder. Last l'iJovember, marijuana growers from southern Veracruz amb�I shed and killed 22 police, a deed unprecedented in Mexic�n history . Recently, fe deral highway troopers killed four rancher:s in cold blood-one a Mexico, moves to stop son of former state governoriF ernando Lopez Arias�be­ cause they got information fr�m the state government that narcoterror coup the fo ur were carrying a cocaine shipment. The situation became into�erable, because it threatened , by Hector Apolinar to tum Veracruz into a state col!ltrolled by narco-terrorisrn. A mass outcry arose for GovernqrAcosta to step down, and if possible, be arrested for complicity in drug trafficking. But The naming of Fernando Gutierrez Barrios as the guberna­ his ouster never happened-the Aleman crowd saw to that. torial candidate of the ruling Revolutionary Institutional Par­ The Aleman group's clout �erives particularly from con­ ty (PRI) for the state of Veracruz on April 22 marks the trol of Televisa, a powerful te�evision network, and owner­ consolidation of the group inside the governmentof President ship of an extensive radio netWork . The National Broadcast­ Miguel de la Madrid which wants an all-out war against ing Corporation (NBC) and RCA Victor were prominent .in international drug trafficking. helping Televisa get started in the 1930s. Televisa makes Gutierrez Barrios is highly respected by the majority of "public opinion" and often wie�ds it against the government, political groups in Mexico. His achievements as director of to make and unmake policies. ; the Federal Security Administration (the Mexican CIA) and In short, the naming of G�tierrez Barrios culminates an as two-term Undersecretary of the Interior in charge of na­ effort by the nationalist sector$ inside the ruling PRI to fight tional security affairs, are recognized inside Mexico and the takeover of Mexico by narco-terrorism. Just one week abroad. His nomination routed the "Aleman crowd," named before, the PRI named Francisfo Labastida Ochoa candidate for the late ex-President of Mexico, Miguel Aleman Valdes, for governorof Sinaloa, notor1pusly the main producer state who built up a corrupt, immoral and criminal political-eco­ of marijuana and heroin in �exico. Labastida OchQll had nomic empire based on drug trafficking and international used his post asSecretary ofEn�rgy, Miping and Semi-Public intrigue. Industry to stimulate indust�l development, against the His son, Miguel Aleman Velasco, intimate and protector pressures of a faction which claimed that economic growth of Cuban DGI agent Gabriel Garcia Marquez, tried every­ has to be sacrificed to pay debk Similar nationalist criteria thing in his power to stop the choice of Gutierrez Barrios and were used in choosing the can�dates for governorof Oaxaca impose a politician of his stable to perpetuate his fa mily's andDuran go, alsokey marijuan, and heroinproducing stat es. control over the state, the nchest and one of the most popu­ Labastida stated in April fhat "although it will not be lous in Mexico. easy," his nrst task will be to jfight drug trafficking and the Ex-President Aleman was governor of Veracruz in the violence in Sinaloa. i early 1930s and from then on, all the governors were imposed Labastida was named shortly after the defense secretary . by his group's interests. Current governor Agustin Acosta announced "Operation Mango(.;ta 86" against drug. traffick­ Lagunes is such an Aleman clone that his private secretary is ing, with participation of 50,OQOtroops of the national army, ex-President Aleman's sister. The Acosta Lagunes govern­ the. largest number ever involyed in the anti-drug war. Si­ ment let dope trafficking thrive throughout the state. Mari­ multaneously, the AttorneyG�er al' s officela unched a joint juana crops destined for the United States blanketed the south; operation with the army to patrol and increase security mea­ cocaine traffic from South America reached levels unheard sures in the state of Sinaloa, in Ilarticular the capital Culiacan. of in recent Mexican history. The heroin trafficfrom Lebanon The federal government's measures were a direct, dev­ also picked up briskly, through Syrian-Lebanese families. astating blow against the curr�nt governor; Antonio Toledo The top family in the drug trade is that of Arturo y Graciela Corro, who has been accused! of protecting the main dope Izquierdo Ebrard, whose power dates from his role in the pushers of the country, among them, Miguel Angel Felix "French Connection" which �oved into Mexico via Veracruz Gallardo, one of the masterminds behind the murderof U.S. at the end of World War II. Arturo and his brother Hugo drug enforcement agent, Enriq!l�I . Camarena Salazar. In fact, startedtheir careers as Miguel Aleman's bodyguards. both Toledo Corro and Felix Gallardo are run by Leopoldo The rise in dope traffickingunieashed a wave of terrorism Sanchez Celis, governor of th ·state at the end of the 1960s, d1 in the state . On Nov. 25 , 1984, CongresS�an Roque Espi­ when the drug traffic reached its apogee. In tum, Sanchez t nozo Foglia-a friend of GutierrezBarrios-was murdered Celis is a protege of Carlos Ha�k Gonzalez, former governor in an ambush by the Izquierdos' gunmen. On May 12, 70 of the Federal District (Mexifan capital), who frequently state judicial policemen kidnaped and killed Felipe Lagunes, hosts David Rockefeller at his ranch. I

42 International EIR May 2, 1986 Narcotics mob's agents fear , LaRouche associates in Colombia by Val erie. Rush

A leading Colombian asset of the U.S. State Department's ative democracy. . . . Some time ago, an anonymous mini.;. Agency for International Development (AID) and of the group within national life appeared waving banners totally American Institute for Free Labor Development (AIFLD), foreign to our environment, preferring to enter labor strata part of the international division of the AFL-CIO, recently and trying to make the name of a Mr. LaRouche famil­ held a secret meeting with that country's number-one drug iar .... trafficker, Carlos Lehder Rivas, according to informed "The visible head of that group in Colombia is MlJ,Ximi­ sources. Lehder, a self-confessed admirer of Adolf Hitler liano Londono, author, actor and ipromoter of the P'Jblic and business partner of the Cuban-based Robert Vesco, is campaignagainst yourself [LOpezMichelsen] andagainst the sought by Colombian authorities for his role in the May 1984 Union of Colombian Workers, the UTC, and particularly assassination of Justice Minister Rodrigo Lara Bonilla. against the person of its president, and who bas reached the The man who met withhim is the president of the Union extreme affrontery of irresponsibly declaring that you, Mr .. of Colombian Workers (UTC) , Victor Acosta, who also President,are l inked tothe drug tradeand to othervile things maintainsa special relationship with AiFLD executive direc­ of that sort. . . . " , tor William Doherty, Jr. , known for years as a stringer for ''The disruptive work of Londonohas beenreinforced by the CIA who funnels monies to assets like Acosta within the a so-calledSchill er Instituteto trap the unwaryand carry out lbero-American labor movement. through false education a slander oampaign against the au­ Acosta's meeting with Lehder has not made the headlines thentic values of the country and of the entire world, such as

of the Colombian press-yet-but his open letter to former Queen Elizabethof England, Dr. H�nry Kissinger . . .." Presidentof Colombia Alfonso LOpez Michelsen demanding The letter goes on to present an ultimatum to President a witchhunt against anti-drug fighter Maximiliano Londono Belisario Betancur to purge Londono or be smearedwith the and against the Schiller Institute, founded by the wife of U . S. same slanders: ''The subject in mention [Londono] today presidential candidate Lyndon LaRouche, already has. occupies a governmentposition as tninisterialadviser, from Londono, former vice-president of the Colombian Anti­ which posthe continues his subversive activity. Yau know, Drug CoalitiOn and presently the official economic advisor Mr. President [LOpez] , that such a position requires backing, to Labor Minister Jorge Carrillo, is accused by Acosta of and I would dare to think that thepresidency is not ignorant

being a "slanderer" of Colombia's most prestigious "true of this situation. . . ." democrats" (namely, LOpezand Acosta himself). The Schill­ Acosta concludes by calling for thedestruction of "the er Institute, an international organization active within the conspiracy whose hidden hands control the marionettes of lbero-American labor movement through its Trade Union the subjectto whom I have referred� " Commission, is accused of sabotaging the '''authentic values of the country and of the world." What do Acosta and Lopezfe ar? LOpez Michelsen and Acosta have a special reason to An anti-drug 'conspiracy' want the purge of anti-drug forces:, and particulady of La­ On April 22, the widely read newspaperEl Tiempo, p0- Rouche'sinftuence. fromColombia. Thevictory of a number litically associated with ex-President L6pez Michelsen, pub­ of LaRouche associatesin severaltop positions in theIllinois lished the full text of Acosta's letter under the headline, DemocraticParty primary last MarCh 18 not only stunned the "Ministerial Adviser Runs Campaign Against LOpez." That world politicalcommunity, but alse convinced the top eche­ letter reads, in part: lons of Dope, Inc . that a LaRouche presidential victory in "[This letter] is to expose the dark maneuverS of a 1988 is now a distinct possibility. ; conspiracy orchestrated by foreign forces against individuals LaRouche. the author of a PrQposed military war plan and entities who, in the strictest sense, personify represent- againstthe drug trade of the Western Hemisphere, has pledged

EIR May 2, 1986 International 43 to put an end to the United States' dirty operations in Ibero­ His proposal had first been �ired back in May 1984; just America. He has especially sworn to end the interference of days after the mafia assassinatiion of Justice Minister Lara AIFLD's drug-tainted thugs in the Ibero-American labor Bonilla, in the form of a mafia�drafted memorandum to the movement, interference which, by spreading corruption in­ President, in which the mobsters "in good faith" pledged to side the democratic labor confederations, has favored the dismantle their drug-traffickin � apparatus and bring home growth of Communist influenceover the trade-unions of the their smugglers' fortunes in return for a presidential pardon. continent. LaRouche's pledges make the likes of , Acosta and Lopez's July interview elabor�ting on the offer, arguedthat Lopez very nervous. it would take at least 10 years ,for the mafia to reconstitute Lopez Michelsen's qualifications as "Godfather" of the their trafficking capability and . that Betancur might as well Colombian drug trade can traced back at least to h be 1974, t e "take the easy path" to solving the drug problem in Colombia. year he entered the presidency on the coattails of his father's LOpez insisted that it was a mistake to mix morality and law , reputation as one of Colombia's best 20th-century Presi­ since "they are two distinct things, " and warned the anti-drug dents. Lopez Michelsen, however, proved to be cut of very Betancur that "almost all dictatorships are premised on the different cloth. One of his first measures in office was to principle of morality." decree an extraordinary "economic emergency" under which LOpez has never relinquished his desire to return to the tax and monetary legislation favoring the laundering of vast Colombian presidency, despite his crushing defeat in 1982, quantities of drug money was rammed through by. presiden� and is expected to maneuver a �turnto power over the figure tial decree. of the probable next president, . Liberal Par1o/ candidate Vir­ The financial entities that sprang up like mushrooms un­ gilio Barco. der Lopez's ministrations, according to the July 9, 1982 issue of Latin America Weekly Report, "serve as a link between Schiller Institute responds the c1asically conservative Colombian elites and the parallel A press re lease just released by the Schiller Institute re­ underground economy to attract contraband and drug traffic sponds to Acosta's "open lett�" with the question, "What money. They flourishi n an atmosphere of high interestrat es, does Victor Acosta really fear?" and comments thatthe "high­ lax regulations, and feverish speculation." sounding phrases of the letter are only an attempt to divert Lopez's finance minister at the time, Rodrigo Botero the attention of the public. Mti. Acosta wants to blame the Montoya, is currently a member of Sol Linowitz's Inter­ Schiller Institute for all his tro�bles, which have apparently American Dialogue. Its 1986 report advocates consideration all come upon him at once." of drug legalization as one possible"option" for dealing with The statement continues: "aut, it's not the fault of the the drug problem (see page 32). Schiller Institute that the Colombian press is reporting on And speaking of legalization of drugs. LOpez's political Acosta's complicity in the embezzlement of more than 28 godson, Ernesto SamperPizano-elected this past Marchto million pesos in Union of Colombian Work�rs (UTC) funds. the Colombian Senate-is notorious in Colombia as a one­ It would be more useful for alli if Mr. Acosta were to begin man lobbyist for the legalization of drugs. Samper served as explaining what has been done with the millions of pesos treasurerand campaign manager for LOpez's 1982 bid for the sent him through his CIA cont�ct, William Doherty, execu­ presidency, and confessed publicly at the time to accepting tive directorof the American Institute for Free LaborDevel­ campaign contributions from leading drug mobsters Carlos opment (AIFLD). Lehder Rivas and Pablo EscobarGaviria. Samperis currently "There are matters which interest the public more, that being pushed by Lopez's vast media empire as a likely pres­ Mr. Acosta is avoiding. Why doesn't Mr. Acosta clear up idential candidate for 1990. the rumors that are circulating about his contact with_ Carlos Among his many other presidential initiatives, LOpez Lehder. . . . It is a poor favo� Mr". Acosta is doing for the legalized the Universal Christian Gnostic Church in Colom­ UTC to have his name circulating so irresponsibly. A better bia, a pagan cult whose leaders have been publicly accused favor would be to convince [UTC secretarygeneral] Alfonso of involvement in drug trafficking, brainwashing, rape , and Vargas to publicly explain why he traveled to Spain to in­ sexual abuse, among otherthin gs. It was the Universal Chris­ tercede for the drug traffickerRodriguez Orejuela." tian Gnostic Church which was discovered to be up to its With Acosta and LOpez shewing their hand so boldly in neck in the 1984 kidnap and drugginglbrainwashing of Patri­ launching an attack on MaximilianoLondono and the Schill­ cia Londono, the wife of Maximiliano Londonoand an anti­ er Institute,·it would do well for them to remember the fate drug activist in her own right. of former Peruvian Finance Minister Manuel Ulloa. Ulloa's On July 9, 1984, while Patricia Londono was still in the attempt in the fall of 1985 to sue Luis Vasquez Medina, the hands of her abducters , LOpez gave an interview to the news­ head of the PeruvianAnti-Drug Coalition, for libelbackfired paper El Tiempo in which he urged President Betancur to when the courts of that count:r}\reaffirmed Vasquez's public grant the drugmob an amnesty and take their proferred bil­ charge that the Peruvian official's financial policieshad fos­ lions in exchange. tered the flourishingof the drug trade in that COUJltry•

44 International EIR May 2, 1986 Interview: Juan Gabriel Labake

Former Argentine President victim of legal witchhunt by Cynthia Ru�h

With a good deal of fanfare and international publicity, Ar­ governmentdecide that Mrs. Peron should pay. gentine President Raul Alfonsin has tried and sentenced some Under these circumstances, as Mr. Labake emphasizes, of his country's top military officers, accused of violations the sudden "voluntary" surrender to the Federal Bureau of of human rights and illicit activity, during the 1976-83 mili­ Investigation in Miami, of Argentina's former Social Wel­ tary regime. fare Minister Jose Lopez Rega, is ominous. Lopez Rega, a But one thing he has not done is to liftthe unjust charges fU'gitive from justice, is the Brazilian-trained gnostic priest brought against former President Isabel Martinez de Peron , who directed the infamous "Triple-A" death squadapparatu s, by those same military men who overthrew her constitutional as well as drug and weapons trafficking, from his position of governmentin March of 1976. After the armed forces toppled powerat the Social Welfare ministry, and later as an adviser Mrs. Peron, the widow of Gen. Juan Domingo Peron, they to Isabel Peron. jailed her for five years, stripped her of both her political As confirmed in subsequent investigation, lOpez Rega's rights and personal possessions, and ordered her to pay $3.9 political allies, inside Argentina and internationally, formed million for "damages" to the State, allegedly committed un­ part of the drug/gun-trafficking and money-laundering oper­ der her presidency. ations run by Licio Gelli's Propaganda 2 Freemasonlc lodge. Mrs. Peron was freed from jail in 1981, and left the This apparatus placed many of its agents in key positions in country to reside in Madrid, Spain. In 1983, the military the last Peronist government(1 974-76), from where they not returned her confiscated goods and lifted the ban on her only carried out illicit activities, but made the decisions that

I political activity, with certain stipulations. However, the de­ eventually sunk the nation in economic and social chaos, mand that she pay the $3.9 million indemnity to the State, providing the pretext for a military coup. has been ruled valid by the presiding judge in the case, and lOpez Rega's unexpected surrender in Miami, at a time upheld by Argentina's court of appeals, despite the fact that when he might have returnedto Switzerland and resided there the proceedings were brought by those military men who safely for years, is undoubtedly an effort to implicate Mrs. usurped power 10 years ago. Peron, as well as several other important Peronists, in the As one of Mrs. Peron's collaborators and friends, Juan illicit operations run by the Lopez Rega crowd. The Argen­ Gabriel Labake, explains to EIR in the following interview, tine government has initiated extradition proceedings that this legal witchhunt is politically motivated. It is intended to would bring the gnostic witch back to Buenos Aires, to stand guarantee that Mrs. Peron plays no role inside Argentina in trialfor his crimes. shaping the Peronist movement as a united political force, capable of providing a programmatic alternative at a time EIR: What is the status of the criminal cases pending against when the Alfonsin governmenthas allowed the International Mrs. Peron? Monetary Fund to further wreck the nation's economy and Labake: The legal status of Mrs. Peron at this moment is sow social chaos. extremely complicated because she is awaiting the outcome Perhaps for this reason, Raul Alfonsin has not gone out of five criminal proceedings initiated against her by the mil­ of his way to act on Mrs. Peron's behalf, even though he is itarygovernm ent, in which she is accused of supposed crimes empoweredto do so as the constitutionally elected President which, even though they have no serious political basis, who has staked his reputation on returning the nation to caused her to suffer a five-year long judicial process. "democracy," after six years of military rule. Once the courts Finally, she was sentenced in 1976 to seven and a half issued their rulings, he limited his actions to "promising" yearsin prison, life-long prohibition from engaging in polit­ never to tryto collect the $3.9 million from Isabel Peron, a ical activity , and-incredibly-ordered to pay the State the promise that has no legal weight, should any subseque�t equivalent of a $3.9 million indemnity for alleged damages

EIR May 2, 1986 International 45 done to the Argentine State � . In 1981, th� authorities co sid­ Labake: The second wife of (Jeneral Per6n, Evita, died in h ered that she had fulfilled two-t irds of her sentence, and in 1952. Shortly afterwards, Evita's mother, who according to accordance with militarylaw , she was given conditional free­ the law at the time was Evita' s only heir, signed an agreement dom. However, the military government demanded that in with General Per6n known in Argentina as the ceding of exchange for her freedom she exile herself to Spain until rights, or sale of rights by which Evita's mother transferred 1983. all claim to her daughter's bequest to General Per6n. Per6n, In 1983, in the last month of the military regime, her then, remained the sole inheritor of Evita's goods, which)lad confiscatedgoods were returned to her, at least formally. Her been the goods of the Peron couple. sentence was pronounced served in full, and the ban on po­ However, in yet another act of political persecution, im­ litical activity lifted. However, it was lifted only aft er the mediately following Peron's overthrow in 1955, Evita's Justicialist (Peronist) Party had chosen their full slate of can­ mother-Mrs. Duarte-initiated a suit to declare null the didates for the presidency of the Republic and for the new cession of rights to Per6n. During the later government of National Council. In other words, the political ban was lifted General Lanusse in 1971, the judges ruled that the cession of only when it was impossible for her to play any role regarding rights was null, and Mrs. Du�e was able to demand from the October 1983 presidential elections. However, the $3.9 Per6n 50% of all his possesllions. But since the military million indemnity to the State remained pending. When the governmentin 1955 had strip�d Peron of all his possessions, constitutional process returned, I, in my capacity as a com­ Mrs. Duarte was entitled to 5q% of exactly nothing. panion and friend of Mrs. Per6n , called on �he constitutional In 1973, our constitutional government returned Peron's government to eliminate the absurd and unjust demand that possessions to him, and paid him an indemnity for all the Mrs. Per6n pay this amount to the State. damages he had suffered from 1955 until 1973. When we The governmentof Dr. Alfonsfn issued Decree No. 1301 returned his possessions, no pne doubted that 50% would in 1984, by which the State desisted in its effort to collect have to be given to Evita's mother. that indemnity, and, on the basis of this, Mrs. Per6n's lawyer Per6n asked Isabelto depqsit part of that money, equall­ and the government's lawyer, went before Judge Giletta, the ing some $8.4 million, to the l!.ccountof Mrs. Duarte, and in presiding judge in the case, with the request that he declare 1975, Isabel deposited 37% of that money, assuming that it collection of that $3.9 million null and void. To everyone's was a more than generous amount. Eva's mother and sisters surprise, in June of 1984, Dr. Giletta ruled that Decree 1301 demanded more, but without declaring how much they want­ by which the State desisted in its effort to collect the money, .' ed. was unconstitutional, and that Mrs. Per6n was still liable. The negotiations with them were under way when the At that same time, the national congress passed a law March 1976 coup d'etat occUl:red and Isabel was taken pris­ which did justice to Mrs. Per6n and to all those who had oner. She was held incomunicado for five years and again, suffered political trials at the hands of the military. According as with Peron in 1955, the m�litary government confiscated to that law, No. 23062, any proceedings that a de facto all her possessions, including the deposit she had made for government might initiate against deposed constitutional Eva's sisters, which they had {lot wanted to draw on because governments-against Isabel and the others as well-were they said it was too small, 110 the deposit remained in a declared null and void. But, since Dr. Giletta had declared checking account. It had remained in pesos which at that time Oecree 1301 unconstitutional, it was necessary to go to the were knowq as pesos ley in A�gentina, and which underwent AppealsCourt, to reaffirmthe State's decision not to demand the devaluation of the brutal inflation our country suffered payment from Mrs. Per6n. But the court, named by the con­ between 1976 and 1983. stitutional governmentof Dr. Alfonsfn, refused to do so, and In November of 1983, on the eve of the military govern­ advised the government that it would even declare Decree ment's departure from office; it returned Isabel's goods to 23062 unconstitutional. her-among them, these 31 piillion pesos ley that she had Both the government lawyer, and Mrs. Per6n's lawyer, deposited to Evita's sisters' account. were forced to withdraw their joint request regarding the Now, on April \1 1, our Ciyil Appeals Court just issued a ' indemnity payment, and since then-August, September of monstrous ruling. First, they ordered Isabel to pay all that 1984-Mrs. Per6n's situation has been very precarious. The Evita's sisters had requested ift 1975, which is, instead on 1 demand for payment has no juridical basis, with only the million pesos, 42 million pe�os ley , that is, approximately promise of the Alfonsfn government riot to try. to collect it. $4.2million , but with the very high interest rates plus the But if it later decides to collect it, or if the next government, costs of the trial, today equals $10 million ....

whomever it may be, wishes to juridically threaten Mrs. u Per6n , it will be able to demand the $3.9 million. EIR: What do you think is really behind this legal offensive against Mrs. Peron? : EIR: What about the civil suits against Mrs. Per6n? Labake: We think that all of this is connected to the sugges-

46 International EIR May 2, 1986 tive and suspicious appearance of Jose L6pez Rega [fonner minister of Social Welfare] and his "voluntary" surrender to the U.S. FBI. The political objective is to preventMrs . Peron from returning to political activity, knowing that her return to Argentina and to a fuU political life, will in large part, detenninethe reorganization and un'ificationof Peronism. Tiilateral-KGB lobby Therefore , L6pez Rega suddenly reappearsto complicate Mrs. Per6n's political life, and with all these fictitiousdebts , exposed in Spain she is blocked economically from acting. In Argentina, a person who owes more money than the worth of his or her by Mark Bitrdman and Leonardo Servadio possessions, can be condemned by what we call here, a "general inhibition of ' property ," a kind of economic sen­ tence. This person cannot conduct trade; any money earned During the first days of April, ,the Spanish government let it is immediately embargoed in favor of the creditor; similarly, beknown that PrimeMini ster Felipe Gonzalez has set definite anything purchased immediately becomes the property of the dates for his long-awaited state visit to Moscow. According creditor. But, in addition, it is a public dishonor. The person to infonnation reportedin the Spanish dailies, Gonzalez will considered a delinquent debtor is morally prevented from bein Moscow fromMay 19 to 23. politicala ctivity. If Mrs. Per6n is faced with a moral , even if Theprime minister' s officefailed to draw attention to one not juridical, impediment to her return to Argentine politics, curious fact about these dates. From May 17 to 19; immedi­ this, in my opinion, is an attempt to block her pblitically. ately before Gonzalezis scheduled t� go, the Trilateral Com­ mission will be holding its international plenary meeting in EIR: What is the current status of Peron ism in its efforts to Madrid, Spain's capital. The "coincidence" may not have achieve greater unity? beennoted officiaJly, but thecoincidence between Soviet and Labake: Many efforts are being made to achieve unity. I Trilateral Commissio,! operations in Spain, has suddenly am, however, not optimistic, or at least not very optimistic drawn headline attention in the Spanish press. becausePer onism has been, and still remains, very disorient­ In its edition for the week of April 7, the Spanish weekly ed since the death of the General in 1974, and the overthrow Cambio 16, ran a seven-page feature entitled, "The Spanish . ofisabel in 1976. The internaldebate continues over whether Enterpreneurs Sell Gold to Moscow1 ," exposing the most- Peronism must continue to be a national movement or wheth­ entrenched links of the Soviet intdtligcmce services to the er it can simply tum itself into some sort of liberal party. This Spanish business community. On dage 21, there is a giant would call for a fundamental reorganization. On the other ' red-background harnmer-and-sickIJ, with a pl!:oto under­ hand, there are certain Peronist tendencies which are trying neath of Jose Carlos March Delgado, the scion of Spain's to move us toward a European-style [social-democratic] po­ very influential March banking family and among the most litical party , which would in effect, t�e away Peronism's active Spanish members of the Tril4teral Commission, who popularrevolutionary character. have helped plan for the May 17-19 plenary that precedes ' Efforts now under way are purely fonnal, for a fonnal Gonzalez's send-off. unity that would present a single slate of candidates with Before reporting some of the details of the Cambio 16 party authorization, but which still lacks that in-depth unity revelations, �d some other details of the Spanish situation stemming from ideological and programmatic unity. . . . known to EIR . we should first underline that the "coinci­ dence"of plans of the Commission fpunded by banker David EIR: If Mrs. Peron could act freely, without all these prob­ Rockefeller and the Russian dictatClrship, is not entirely a lems you've described, what would her role be? surprise. In mid-March of this year, the Italian weekly Pan­ "Labake: Were she totally free at this time, I imagine she orama. basing itself on Italian Trilatdral Commission sources, "would leave the party to reorganize itself from a purelyfonnal reported that among the discussiodS on the agenda of the viewpoint, without any interference from her, encouraging Madridmeet ing, will be the idea ofbOldingthe next Trilateral those groups which are pushing a nationalist and popular plenary in a site where the TrilatenlI has never met before , approach to establish their leadership. Her approach is to most probably Moscow. Since the 'summer of 1985, when encourage those who are trying to help Peronism recover its the Soviet Foreign Ministry's lnter.national Affairs journal national and popular revolutionary role. The purpose of the hailed theTrilateral Commission's oppoSition to the Strategic legal cases against her is to juridically condemn her, and DefenseInitiat ive, the Trilateral-So�iet global love affair has : leave her penniless. This is a problem the Alfonsfn govern­ been no secret to the public. 'ment has not solved. It would appear that they want to leave Onthe Madrid meeting itself, E� has learned that one of her with these unsolvable economic problems. the featuredspeakers will be Jimmy Carter-era U.S. National

EIR May 2, 1986 International 47 Security Advi ser Zbigniew Brzezinski, speaking on the sta­ Trilateral Commission milieux; as a Madrid insider told EIR tus of East-West relations. Brzezinski has become, most Apr. 10, "Juan would be considered here what Americans recently, familiar to the European public for an article in the would call a 'Rockefeller left-liberal .' The family here are French-language journalPolitique lnternationale, calling for called Compradors, what Americans would call 'Boston the United States to gradually, but unilaterally, withdraw Brahmins.' They have multiple and extensive links to the fromWestern Europe. American Eastern Liberal Establishment." A marriage of Spanish and British interests (hence "Ga­ Spain's 'Boston Brahmins' rrigues Walker"), the family, indeed, has heavily invested in A certain aura of mystery envelopes the central protago­ American railroad and other speculative ventures, over the nist of the Cambio 16 story , Juan Garrigues Walker. One day past decades. after the appearance of the magazine on the Spanish new- Hence, Cambio 16 had caught a big fish. We report the revelations. According to the Spanish weekly, Juan had been the major financier of the Spanish-Soviet Association. His links to Moscow blossomed, after he had been introduced, back in 1974, to the man who has since become the dictator of all Russia, Mikhail Gorbachov. The introduction to Gorbachov was made, the journal says, via noted Soviet "crime writer" �ulian Semyonov. Spanish Premier Felipe (Semyonov, EIR has determined, is one of a stable of top-level Soviet KGB journalists, who specialize in profiling Gonzalez addresses a meeting of German So­ organizations in the West. He has been caught in certaindirty cial Democrats in 1982 . tricks, over the years, vis-a-vis the organizations of EIR founder LaRouche.)

NSIPS Cambio 16 further reveals that it was Juan Garrigues stands, he suddenly died. A consensus among Spanish sources Walker who introduced two top-level Soviet KGB agents, with whom EIR has discussed the matter, is that Juan Ga­ Vladimir Polozev and Tatiana Polozova, into Spain. The two rrigpes Walk�r died a natural death, even though he was only were expelled by Spanish authorities from the country in / 49; there is a family history of early deaths, we are told. 1981. Nonetheless, the coincidence is remarkable. Another of Juan GarriguesWalk er's activities, beginning Juan Garrigues Walker was the brother' of Antonio Ga­ in 1977, was to provide millions of dollars, from money rrigues Walker, another of Spain's most active Trilateral obtained from suspicious financial and industrial dealings Commission members and, reportedly, a buddy of Henry inside Spain, to the Spanish press, in particular to the weekly

Kissinger. Together, two brothers had directed a company Diario 16 and the daily El Pals, to fund a press campaign called J&A Garrigues & Co. , nominally a law firm, but, in against Spain joining NATO. the view of Spanish insiders, more a "wheeler and dealer" or (Of these two journals, El Pals is most interesting. Its brokering institution for some very nasty international inter­ chief editor, Jesus de Polanco, is yet another member of the ests. The Garrigues Walkers, for example, are central to Trilateral Commission, while the newspaper's ideological Spain's "Libya connection." According to one Madrid source, mentor, Jesus Aguirre , also known as the Duke of Alba, of "Juan was an important interlocutor for Qaddafi, on the po­ the ancient and despised Alba clan, the same anathemized in litical, economic, and financial planes." Friedrich Schiller's drama, Don Carlos, joined the Trilateral Another of Antonio's ploys has been as a front man for Commission in October 1984.) the New York Rockefeller-linked banks, in dealings with Another interesting connection pointed to by Cambio 16, Thero-America, on matters pertaining to international debt. is the close association of Juan Garrigues Walker with Vla­ "It's better to have a Spaniard like him go in there and talk to dimir Petrosov, chief of the Iberian Affairs section of the people in South America, than to have a Yankee do it; it Communist Party of the Soviet Union. works better," is the way a European friend of A. Garrigues A Spanish intelligence source informed EIR that J. Ga­ Walker puts it. rrigues Walker was also a close buddy of former Soviet The revelations in Cambio 16 could, despite or because ambassador to Spain, Yuri Dubinin, who is now ambassador of Juan's death, prove embarrassing to brother Antonio, who to the United Nations. is angling to become Spain's next foreign minister, some As critical as Juan Garrigues Walker had been in the time after the next national elections in October. There could Spanish-Soviet nexus, Cambio' 16 asserts that, in the end, he also be some interesting ripple effects hitting the American had been nothing but an agent of the interests of the March

48 International EIR May 2, 1986 . family. the key financiersof the Spanish-U.S.,s.R. Association, and One Mediterranean affairs intelligence specialist con­ has been investiged by the CESID, Spanish Military Intelli­ sulted on this by EIR , insisted that, indeed, the Gatrigues gence, for its connections with Moscow. Walker operations, both politically and financially, are a These Cambio 16 revelations should provide for some "facade" for the March family's empire. lively chatter in Madrid during ' "Trilateral Commission Week." Commission sources rep<¥1 that the Juan March The JuanMarch empire Foundation will be holding a dinner-reception for those at­ This gets us to one of the most sensitive, and nasty, tendingthe international plenary . realities of Spain during the past seven decades. The now­ deceased Juan March, the prominent "old man" of the family, A blow to 'convergence'? Two of the other most notable revelations made by the weekly include: Juan March embodies the Spanish • Former Generali'simoFran co's friendEduardo Barre i­ ros, today a friendof Cuba's Fidel Castro, is among the most -brcinch qfwhat EIR has identified important Spanish industrialistssmuggling Westerntechnol­ as "The Trust," the East-West "joint­ ogy to the U.S.S.R. Barreiros, whO built the Cuban diesel­ ,stock company" behind the creation engine ' industry, ships technological elements to Cuba as "spare parts"for his engine factory; and from there to Mos­ qfthe Bolshevik andJascist : cow. Barreiroshimself is quoted: "This way the Cuban gov­ movements earlier in this century, ernmentcheats the CIA and the CESID." e and now in control qfint ernational • Th number two of the Soviet KGB today in Spain is ViktorPakhomov , who is on the board of several Russian terrorism and the drug trade. shipping companies operating in Spain, some of which in­ clude Spanish private capital and work as conduits for trade with Moscow. The most important of these companies, hadbuilt up his fortune during WorldWar I, in various shady, Sovhispan-owned, until 1982, 50% by the Soviets and the speculative ventures in shipping, contraband, scrap-metal rest bytwo Spanish private companies, Tabacos de Filipinas trading, and related activities. In ensuing years, as World and Vapores Suardiazs-hasbases tn Moscow, Madrid, Te­ Warn approached, he was able to do financial and/or politi­ nerife, and Las Palmas. Tenerife' and Las Palmas are the two caltricks fo r, variously, the Churchillinterests in Britain, the most important Canary Island port$, where Sovhispan pro­ Bolsheviks, the Franco interests in Spain, the European fas­ vides logistical back-up for the enormous "fishing fleet" the cists, and others. In thepost-World War II period, through a Soviets are running in the area-afleet that is known to be a maze of connections that would take an entire book in itself cover for Soviet military and intellingence operations in the tounrav el, Juan Marchbecame a central figureinthe control strategically key Canary Islands. In 1982, the Spanish gov­ apparatus for international terrorism; drugs, and arms-traf­ ernment compelled Vapores Suardiaz to sell its shares to a ficking, particularly in lbero-America. state enterprise and reduced the Soviet participation in the Juan March embodies the Spanish branch of what EIR operation, which is nonetheless stil. working. Together with has identified as "The Trust," the East-West "joint-stock Pakhomov, Cambio 16 indicates also Vasili Cochelyo, Igor comJ'any" behind the creation of the Bolshevik and fascist Markovskii, Aleksei Arzamarsev, Valeri Kozbo, and Gen­ mOvements earlier in this century, and now in control of nadi Petrov, as Soviets, in some cases, KGB people, working international terrorismand the drugtrade . in those shjpping companies. Cambio 16 does not refer to all aspects of this shady Such exposes, in total, might upset a few applecarts in

history. What it does say, is the following: f Spain, particularly if they arefo lloWed by more, in the weeks The "GrupoJuan March ," presided over by family scion leading up to the Trilateral Commission plenary. One group Jose Carlos March Delgado, is the biggest .single financial that, undoubtedly, will be affectedj is the Spanish Employ­ powerin trade between Spain and the U.S.S.R. In 1985, the ers' Confederation, which organiztd a 50-member delega­ family's holding company, Estudios, Proyectos y Realiza­ tion to Moscow for several days in late March. Shortly before ciones, S.A., or the EPYR group, mediated hundreds of that deployment, a Confederation official had asserted that millions of dollars worth of steel and machinery exports to the visit would aid "convergence between the systems of East the Soviet Union, from Spanish industrial concerns, like the and West," through encouraging trade. Empresa Nacional de Siderurgi'a. Evidently, Cambio 16 represents some of those Spanish Further: EPYR has opened offices in the Soviet Union, interests, who feel that the "convergence" has already gone and has several Russian employees. Grupo March is among too far.

EIR May 2, 1986 Intemational 49 i large scale, with an estimated several thousands per year, including cancer patients, the �lderly, and very iii children, being subject to this Nazi "�rcy-killing." This trend will only increase, as AIDS and other epidemic diseases spread, and the economic collapse worsens. Second, it cannot be ruled out that the coalition wiU lose the election, and that a Labor Party government, withior without the support of var­ �ous minor socialist, leftist, and liberal parties, could form Euthanasia foes by the next government, after May 21. That would make this "pragmatic" strategy obsolet�, to say the least. The Labor stalling in Holland Party, the affiliate of the Socialist International in Holland, would have no interest in the "permanent stall" strategy, and every interest in bringing euthanasia-legalization to parlia­ Burdman by Mark ment, as soonas possible. A Dutch Roman Catholic television network broadcast Opponents of euthanasia in Holland have decided on a strat­ on April 21 , featured Labor leaPerloop den U yl, who insisted egy that mi�ht be called "permanent stall," in the weeks that all delays to bringing euthanasia legalization before the

leading up to the May 21 nationalelectio ns. This tactic might Dutch Parliament be ended. i createthe conditions for theSoviet Union's allies in the Dutch Sensing the CDA's cowardice, and being subject to such LaborParty to win thoseelections , andmake euthanasiastate atrocities on television, many �oters may abstain, or rally to policy in Holland anyway. the oppositionin the May 21 v6tes. This would put a coalition EIR learnedfrom anti-euthanasia activists in The Hague in power similar to what wo",ld emerge, if a "Red-Green" and otherDutch cities, that the Christian Democratic Appeal Social Democratic-Green Party government were formed in (CDA), the majority party in the ruling coalition, has struck the Federal Republic. Such a tesult in Holland, on May 21, a deal with its coalition partner, the PVD, or Liberals, to not could have profoundly disturbingeffects on Germany. malce euthanasia an election issue for the coalition. This is The Dutch Labor Party, with its advocacy of unilateral despitethe fact that the CDA opposes all forms of euthanasia disarmament and radical appeasement of the U.S.S.R., is a legalization, both the radical pro-euthanasia bill put forward top Soviet asset in Europe. One can only conclude that the by parliamentarianWessel-Tuinstra of the small, ultra-liberal "Death Lobby" and the "KGB Lobby" are the same thing in "Dem '66" party, and the "moderate" form of legalization Holland, and that euthanasia advocacy in the West has be­ proposedby the coalition governmentitself. come a strongpoint in the Soviet strategic arsenal. One CDA officialconfessed privately tothis correspond­ A Labor Party parliamentarian, Mrs. Hasberger, arose ent, that his party was being "blackmailed" by the PVD, during a parliament session in :mid-April, and demanded that "much as the Liberals of Genscher are doing in West Ger­ young children be allowed to idecide whether they want eu­ many ." He was referring to Foreign Minister Hans-Dietrich thanasia or not! As shocking as this was, it only echoes the Genscher's Free Democratic Party, which is in a coalition offi cial position of the Dutch Medical Association. with the conservative Christian Democrats (CDU), and which holds the CDU hostage on many issues, under threatof with­ Backlash drawing fromand collapsing the government. Both older Labor Party ntembers, who remember Hol­ The CDA is trying to keep the whole issue of euthanasia land's fightagainst the Nazis during World War II, and local locked up, for as long as possible, in the deliberations on doctors, opposed to the Medic:al Association leadership, are euthanasia-legalizationthat have begun in theDutch Council beginningto express uneasiness. of State, the "Raad van State." Thisis a body of lawyers and During the weekend of April 26-27, pro-life organiza­ experts, appointed by the' Dutch monarchy, which operates tions in Holland and abroad, broughttogether by anti-euthan­ as a separate and independent administrative entity to decide asia activist Mr. Dorenbos, are holding a meeting against on major national issues. Because this Council of State entity euthanasia in the town of Armesfoort. One day later, on April has significantpower in such matters, it can, in the views of 28, theClub of Life, the organization founded by Mrs . Helga CDA pragmatists, override pressures for euthanasia legisla­ Zepp-LaRouche, scheduled its first-everpress conference in tion to even be discussed in the Dutch parliament in the Holland, in The Hague, to presentits dossier against euthan­ immediate period. asia, and to report on the intc;rnational mobilization against euthanasia legalization in HoUand. A sop to the KGB? On the night of April 24, Holland's EO Evangelical tele­ There are several dangers, moral and political, in such a vision station, showed a teal\Jre on the mobilization by the pragmatic approach. Club of Life's American chapter, in Washington, D.C., First, in Holland, euthanasia is already taking place on a against euthanasia.

50 International EIR May 2, 1986 Mrica Report by Mary Lalevee

Libya wins elections in Sudan i for an Islamic sqite, and has threat- u.s. backingfor the InternationalMonetary Fund has enedto declare llolya war if theSharia strengthened the hand of Libya, Iran-and the Soviets. legal system is chlmged. On April 17, just afterthe elections, el Turabi made a show of strellgth in Khartoum, bringing 10,000 into the streets in fa­ vor of the Shariaand in his support. If the new government does not move against Turabi' s Islamic fanaticism, T wo weeks after the official closing troubled by Libyan interlerence, and unrest among tht non-Islamic com­ of the 12-day elections in the Sudan, the Central African Republic has been munities will rise;especially given the April 1-12, a governmenthad still not hit by several bombings in the capital, economic crisis. · If the government been formed. As most observers pre­ Bangui, reportedly Libyan work. does act, it faces violent actions by the dicted, the Umma Party led by Sadiq The Umma Party's official poli­ NIPextremists . el Mahdi won the majority of the con­ cies are not particularly extremist. The NIP virtually controls Su­ tested 264 seats (elections in 37 dis­ Their manifesto calls for defeat of the dan's Islamic brultdng system, and is tricts in the south were postponed as Islamic Brotherhoodof Hassan el Tur­ reported to have !eamed $25 million anarchy reigns there, due to the rebel­ abi , the suspension of the IsI�mic Fun­ fromhelping to arrange the sending of lion by the SouthebIPeople 's Libera­ damentalist Sharia laws, and the re­ EthiopianFalash;ts to Israel. They are tion Army [SPLA]). The Umma party moval of the remnants of Numayri's also reportedto be heavily involved in won 48% of the vote, gaining 99sea ts, regime. A spokesman for EI Mahdi selling sacks of cereal, given as food while the Democratic Unionist Party said after the elections that he had an aid, on the open market.. won 63 seats, and the National Islamic "understanding" with the United Numayri,'sfall in April 1985 was Front a surprisingly high score of 51 States, that the party would pursue a due to the unpopularityof Internation­ seats, though its leader, Hassan el "non-aligned" foreign policy, and al MonetaryFund measures being im­ Turabi, was defeated in his own con­ would not challenge U. S. interests in posed. U.S. baclOng for the IMF has stituency in Khartoum. Africa and the Middle East. led to anti-American demonstrations As we reported in our April 4 is­ Sadiq el Mahdi has been a leading and support for Libya. In the South, sue, el Mahdi has received substantial political figure in Sudan since inde­ Ethiopian-backed SPLA rebels are support from Libya. He was in Tripoli pendence in 1956. His party's support stepping up their military offensive, on March 15 to ask for campaign comes from its traditional followers, expecting the early collapse of an funds: His stop in Tripoli was on his the Ansar. He was involved in an Umma-Ied government,and hoping to way back from Geneva, where he had abortive-Libyan-backed-coup at­ be in control of the entire south of the attended an internationalIslamic sem­ tempt against Numayri in 1976. countrywhen that happens. inar, with Islamic fundamentalists The other traditional party, the Libyan intervention has not only from Europe and the Middle East. Sa­ Democratic Unionist Party (DUP), led included financial backing for Sadiq diq el Mahdi' s victory means that Lib­ by Mohammed Osman el Mirghani, el Mahdi, but military aid: Two Sovi­ yan involvement in Sudan will in­ gets its support largely from the Khat­ et-built Tupolevbombers werelent to crease. miya Islamic sect (though it is seen as the Sudanese gOvernment for mis­ The largest country in Africa in "liberal" compared to the NIF), and sions against the SPLA rebels. At the area, Sudan borders Egypt, Libya, fromthe business and merchant class. begining of April, 300 trucks crossed Chad, Zaire, Uganda, the Central Af­ The party has called for revision of the the Libyan border into Sudan, bring­ rican Republic, Ethiopia, and Kenya. Islamic law, and concessions to the ing foodand arms for the demoralized A strong Libyan position there would Christian and animist partsof the pop­ Sudanese army units fighting the reb­ increase pressure on the Chad govern­ ulation. The party calls for union with els. The suspension of Western eco­ ment, already battling against Libyan­ Eygpt, which has recently lost it some nomic aid after the IMF's declaration backed rebels in the north, and facing popularity . that the countrywas in default, in Feb­ a permanent Libyan military occupa­ The National Islamic Front (NIF) ruary, leaves Sudan at the mercy of tion of the Aouzou strip along its is the party of the fanatics, strongly the Libyans and Itanians, with the So­ northern border. Zaire has also been backed by Iran. Hassan el Turabi calls viets not far behind.

EIR May 2, 1986 International 51 MotherRussia by Rachel Douglas .

Chauvinists strut in Communist journal . ers, comiected with the peasant An outburst Russian gives the lie to of blood-and-soil cultism North." The writers, boosted by Lik­ Kremlinologists, who see Gorbachov as a "rational" fo rce. hachov, exude devotion to the soil of Mother Russia. The second Russian chauvinist's ' article in Kommunist, No. 1, was a Jerusalem sovietolOgist Mikhail ervation of Historical and Cultural more subtle contribution by Yu . Me­ Agursky) claim that the 27th Con­ Monuments (also known as the Ros­ lentyev, e�titled "Spiritual Unity." In gress of the Communist Party of the siya Society, a mass-based Russian a carefully worded discussion of Soviet Union· rang a starting-bell for nationalist olltfit), wrote"The Russian "multi-national Soviet culture," he "a return to so-called ideological North as a Monument of Native and .examined·�·the process of rapproche­ 'liberalism'" (EIR , April 11) is con­ World Culture. " They called for a vast 'ment (sblifheniye) and consolidation tradicted by the contents of theCP SU's region, encompassing Arkhangelsk of unity (splocheniye) of the fraternal main journal, not to mention the de­ and Vologda provinces. to be desig­ peoples of the U.S.S.R."....:..avoiding ci�ions of the 27th Congress. nated a cultural monument and pre­ the . controversial thesis on eventual Though his 1979 book, The Ide­ .served as "a hU2e mU!leum. '!ltretchin2 , merger (sliyaniye)of the nationalities, ology of National-Bolshevism, was for thousands of squarekilometers ." which the new CPSU Programalso about the survival and flourishing of . In pait,this w�s a polemic.in favor ignores. , �ussian "right-wing" nationalist cur­ of' what the 27th Congress then did­ But the very choice of Melentyev, rents, apocalyptic national messian­ reject the irrigation scheme to divert ministerof cultureof the Russian Re­ ism, and Russian gnosticism in the the waters of north Russian rivers. public, as Kommunist's author on this Soviet period, Agursky insists, in his Likhachov and Yanin bemoaned "the theme conveyed a sharpermessage to Jerusalem Post columris, that these are possibility drat territory, where chefs party insi�rs. In the early 1970s, Me­ nowhere to be found amid the mem­ d'oeuvres of national, state, and .lentyev was head of the Molodaya bers of the Gorbachov team. worldwide significance are located, Gvardiya (Young Guard) pUblishing As Agutsky has it, General Sec­ could be drowned as a result . . . of house, a hotbed of Great Russian retaryMikhail Gorbachov openedthe certain projects now under discus­ chauvinism. His magazine printed a party ideology bureaus chiefly to the sion ...." famous apPeal to resist the Westerni­ rational, possibly "liberal," set from But, beyond that, Mother �ussia zation of �viet sciciety, with "Russi­ the systems analysis and sociology cultist Likhachov really flew his fication or: the spirit." Readers aware thinlHanks, and no Mother Russia colors. He and Yanin lingered with of that wQUld note that Melentyev' s cultists need apply. EIR has already affection over each phase of northern KommuniS dissertation on "multi-na­ reported, to the contrary, how at the Russia's history: peasant migrations. tional" c�araderie was peppered 27th Party Congress the Great Rus­ boyarinroa ds, and the dense construc­ with: a c� to protectand value histor­ siansquashed the huge irrigationproj-. tion of monasteries during the 14th- ical monUQlentsfor their"aroma of the ects sought by Cen� Asian republics 16thcenturie s. The north,they gushed, past" and ability to kindle "the feeling andeliminated all but a handful of non­ bred "a certain type of population. of the Motherland";a warm reference Slavs fromthe CeJ)tral Committee. From generation to generation, people to poet Va1erii Bryusov, a Russian oc­ Turning to Kommunist, the CPSU here grew up strong, firm in spirit, cultist who joined the Bolsheviks in journal of theory and policy, we find enterprising, freedom-loving ....For 1920; anda complaint that the Russian these'moves backed up in writing. In cen1\lries, the Russian North and its language was being treated with scant its first19 86 issue (January), the party popular culture played an active role esteem in some regions of the mouthpiece featured two articles by in the formation pf all Russia's cul­ U.S.S.R. authorswho have beenamon g the most ture, statehood, and defense capabil­ Since the 27th Congress, Kom­ vocal Russian chauvinists. ity." munist got a new editor-Ivan Fro­ Academician D, Likhachov and The area, they said, "continues to lov, an activistin theradical ecologist Corresponding Academician V. Yan­ serve Soviet culture, as witnessed by movement ,linkedto theClub of Rome. in, signing themselves as leaders of the 'village prose' of Abramov, Ras­ We suspeCt Agursky will call him a the All-Russian Society for the Pres- putin, Belov, Astafyev and otherwrit- liberal, too.

52 International EIR May 2, 1986 Report from Rio by Silvia Palacios

Soviets seek an ally in B,razil t,o Brazil. One of them communicated Mediated by the fr iends of HenryKissinger, the Russians are from space that "Brazil appears as an offering "science," "culture," and business deals. enormous green Zone crossed by blue rivers" (i.e., a zone of rich and enor­ mous natural resources.)

The Soviets I sudden interest in Brazil,however, lis neither science nor culture. Rather, � is to ready Brazil as Representatives of the Soviet gov­ On April 4, the ambassador a launching pad for Soviet operations ernment have begun an aggressive showed up at the University of Sao on thecontinent, be they intelligence­ diplomatic and propaganda drive in Paulo to speak on the same subject. related or strategic. Brazil, including the possible visit in His proselytizing was so blatant that a In December 1985, then Brazilian the near future of Soviet ForeignMin­ group of professors protested, arguing Foreign Minister Olavo Setubal, a ister Eduard Shevardnadze. Accord­ that the university "should not serve banker close to t;Ienry Kissinger, ,be­ ing to reports in Jornai do Brazil, as a forum forthe policiesof either of came the first Btazilian foreign min­ Shevardnadze will arrive before the the two superpowers." ister to visit Mosqow . At that time, the next United Nations General Assem­ Later, on April 8, a Soviet dele­ Soviet governmentexpressed interest bly meeting, and may also visit Ar­ gation arrived, made up of cosmonaut in opening up Aeroflot operations to gentina. Valery Kubasov, director of Pravda Brazil. Brasilia said no. From whatis publicly known, the in Moscow Nikolai Prozbogin: and the Brazil has, however, proven more Soviet ambassador in Brazil, who has Latin American editor for Pravda. vulnerable to the' offer of a "cultural­ organized this diplomatic offensive, Sergei Isistnov. scientific" interchange, the ,means and a bevy of Soviet journalists who In his tour throughout the country, typically used bt the Soviets to dis­ have just left the country, devoted their cosmonaut Kubasov-always flanked seminate their feudal culture and ex­ efforts to vitriolic attacks against the by a Russian reporter or diplomat­ pand trade. The ; appeal to "culture" Reagan administration's Strategic made the attack on Reagan's defense and"science" ha� worked well, fed by Defense Initiative (SDI) , while en­ program his apparent sole purpose on the bureaucracy of the Brazilian for­

couraging the enviroruDentalist-paci­ earth. Speaking in a mystical pacifist eign ministry. fist movement here.' The representa­ tone recalling the flower-waving hip­ The Soviet ddIegation's Brazil trip tives of Imperial Russia also tried to pies of yesteryear, he gave a lectufe at dovetailed with ithe meeting of the take advantage of the crisis caused by the Institute for Space Research in Sao Mixed Brazil-Soviet Commission, at­ InternationalMonetary Fund austerity Jose dos CampOs, one of the most im­ tended by Sovi� Foreign Relations demands and Brazilian pragmatism to portant centers of the scientific com­ Vice-Minister Aleksei Mazhulo. Some increase trade between Brazil and the munity. His delegation also met with 50 private Brazilian companies at­ U.S.S.R. President Samey and the governorsof tended as obserVers. Parallel to the The Soviet campaign began with Sao Paulo and Rio de Janeiro. meeting, it was ,announced that the a briefing on the results of the recent As a sequel, a group of Brazilian Brazilian company USIMEC and the 27th Congress of the Soviet Commu­ politiciansand scientists-some, dis­ Soviets' Technopromexport have nist Party given by Ambassador Vla­ ciples of the agnostic pervertBertrand struck a deal to jointly produce elec­ dimir Chernichov to President Jose Rus�ll; and others, like Archbishop tricalequipment for sale to third coun­ Samey and to the heads of the two Helder Camara, followers of the theo­ tries. Also, the! Cacique company houses of Brazil's Congress. Imme­ cratic doctrines of Integralism-de­ agreed to sell Brazilian food to the diately afterward , Chernichov asked cided to celebrate the25th anniversary Soviet company Soyuzplodimport. A the Foreign Relations Commission of of Soviet cosmonaut Yuri Gagarin's Soviet technical 4elegation will short­ the Chamber of Deputies for Brazilian first flight into space by organizing a ly be traveling to the state of Minas support for the Soviet program for hookup between the Rio de Janeiro Gerais to evalua� mineral production Western disarmament and fulminated radio network Roquette Pinto and for energy needs., The Soviets are also againstthe "Star Wars" program of the Moscow radio to hear a message that ()ffering to participate in an irrigation U.S. government. the Mir cosmonauts would be sending project for Brazil's northeast .

...,

EIR May,2, 1986 International 53 - InternationalInteWgence

cities, had to work for the same employer ning Post on April 9, "Already there are Strauss blasts the for 10 years before their families could join faint munnurs of disenchantment and dis­ European decouplers them. content. Pricesare going up. Joblessness is The government's move enraged both spreading, crime goes unabated . And we black and white extremists, who are intent have the circus of leaders of this 'refonn "TheWestern alliance is facing a litmustest ," on ripping apart the fabric of the nation and society' quarreling like scavengers over the wroteFranz-Josef Strauss , the leader of the plunging the Republic of South Africa into spoils of power and privilege." West GennanChristian Social Union, in the civil war. Mrs. Aquino, whose release of all polit­ April 26 edition of the weekly newspaper The refonn measures mean that blacks ical priso�rs has estranged her from many Bayernkurier. He singled out Foreign Min­ will no longer be arrestedfor moving out of of her sUpPOrters, suspended the constitu­ isterHans-Dietrich Genscher for being"dis­ their assigned areas, and those alreadyunder tion, dissolved the parliament, and post­ honest and hypocritical" in his criticism of arrest for past violation of the pass laws, will poned eledtions. Her government now rules the April14 U.S. bombingraid on Libya. be released. The changes are effective im­ by emergency decree. ''The consequences of the European re­ mediately, with a common identity docu­ actions to the U.S. military strikes against ment for all South Africansto be issued at a Libya will detennine for a long time the future date. discussion in the Atlantic alliance. This dis­ LaRouche: Beware new According to Constitutional Develop­ cussion will be extraordinarily radical and ment and Planning Minister Chris Heunis, hoaxabout Qaddafi not at all pleasing ....America is not only "The government proposes to repeal or disappointed, but hurt ... 380,000 U.S. amend no fewer than 34 Acts . . . to ensure In a news release issued April 19, Lyndon soldiers are deployed in Europe to defend that the movement of people will not be LaRouche warnedthat the U .S. intelligence peace.... But if the U.S. wants the Euro­ subject to discrimination on the ground of community is being saturated with a hoax, peans to supportthem, not only do they find color or race. " to the effect that "President Reagan's mili­ widespread refusal, but also malicious crit­ President Botha, in a speech April 17 tary actio, against Libya's Qaddafi was a icism and even hatred and outbreaksof anti­ before Parliament, said that he would soon failure, bOCause it had failed to accomplish Americanism. " move to establish a multi-racial council, that the assigned objective of killing Qaddafi in Straussasked what kind of proofthe Eu­ would be the first step toward full political the bombardment." ropean critics of the United States are wait­ participation by all races, leading to the "I must admit that I blew up when I first ing for, that Libya is involved in internation­ eventual inclusion of blacks in the cabinet. heard this report,"LaRouche reported. ''The al terrorism: "Perhaps they want a signed idea of attempting to kill Qaddafi by bomb­ declaration by Qaddafi , authorized by a no­ ing his pr¢mises from the air, was such an tary in Bonn?" He asked whether the lives Will Philippines fa ce absurd id�a that no competent military or of civilians could have been saved, if the intelligence professional would have ever United States had received pennissionfrom new government crisis? endorsed basing a military bombing mission Spain and France to fly over theirterritorie s, upon such a specificob jective .... rather than making long detours . Philippines Vice-President Salvador Laurel "The 'leak,' which alleges falsely, that warnedon April 19 that the new government the purpo$e ofthe military operationagainst faces the prospect of either another military Libya was to drop a bomb on Qaddafi, is a South Africa'sBotha coup or a communist tllkeover, if President rumorconcocted in an effort to discreditthe Corazon Aquino does not soon create a con­ President.This contorted tale is being spread abolishes racist laws stitution "reflective of the will of the peo­ as part ofan effortto show that the operation ple." was a strategic failure comparable to the The South African pro-refonn faction, led Contrary to the predictions of Aquino 'Bay of Pi gs.' The purpose is to discredit by President Pieter W. Botha, on April 23 and the U. S. State Department which in­ the Presid!;:nt and the U.S. military, and to announced the official abolition of the 73- stalled her in power Feb. 25, the economic tip the bal�ce of power in Washington back

year-old"pass laws," one of the main pillars problems of the country are intensifying, into the tUmds of Secretary Shultz and the of apartheid. The laws required blacks to while the communist insurgency has contin­ State Depiutment. carrya pass, indicating restrictionson where ued. Hoped-for concessions from the Inter­ "Curiously, but not surprising, those they could live and work, which confined national Monetary Fund and the · creditor circulating this false infonnation are insist­ them primarily to impoverished ruralar eas. banks have not been forthcoming. ing that the United States must not strike Those receiving pennission to work in the As a columnist wrote in the Manila Eve- against Annand Hammer's Libyan oil-fields:

54 International EIR May 2, 1986 I Briefly

• FRAN<;OIS GENOUD, the Swiss Nazi banker, was linked to Libyan arms smuggling on April 15, during a trial Lausanne,in Switzer­ land of a fonner bodyguard of Alge­ precisely the target which absolutely must A major component of the budget will ri.an exile �d terrorist controller bestruck should Europeansrefuse to go im­ be taken up by constructionof four nuclear mediately with water-tight sanctions against submarines, thebiggest ever built in Britain. Ahmed Beni Bella. The bodyguard a Qaddafi' s dictatorship. " "When Polaris came into service in 1967, was arrested yearago, tryingto en­ terFrance we had the capacity to send off 48 missiles wtth weapons which were against what were then undefended Soviet acquired from the Libyan People's Break-in attempt at targets," an official said. "With Trident, we Bureau in Bierne, Switzerland. The bodyguard had been in constant touch EIR office in Rome will be able to launch 128 missiles against heavily defended targets. The result will be with Genoud, who introduced him to Ben Bella. to bring the deterrenteffect back to where it Unknown persons attempted to break into was in 1967 . We will have the capacity of the Rome office of EIR at about 1:00 a.m. WILLY BRANDT, obliterating the key target areaaround Mos­ • the head of on April 19, in a move which security in­ cow." the Socialist International and chair­ vestigators believe is related to the activa­ man of the. West German Social tion of Libyan-sponsored terrorism against Democratic rarty, visited South Af­ American targets in Europe . Green Party makes its rica in mid-April. He met with South The previous day, EIR's bureau re­ African Prime Minister P. W. Botha, ceived someanonymous phone calls, whose Moscow link official as well as with union and business purpose was evidently to surveil the prem­ leaders, church figures, and opposi­ ises; the afternoon of the break-in attempt, A delegation from the West German Green tion figures including Winnie Man­ an anonymous caller issued death threats . Party""arrived in Moscow on April 13, and dela of the 'African National Con­ These threats followed closely upon the was received with great fanfare by top So­ gress. publication of articles hostile to Lyndon viet officials. The Greens, who are commit­ LaRouche and his collaborators in Europe, ted to ousti�g the U.S. military presence • LEONID ZAMYATIN was of­ in the daily newspaper IIManifesto and the from Europe, are a key element in Mos­ ficially nam4

EIR May 2, 1986 International 55 �ITillNational •

Exposed: new moves to cut American troops in Europe

by NicholasF. Benton

Washington Post columnist Charles Krauthammer called it Services Committee will soon initiate debate on cutting back "Weinberger's Line," that "sickle-shaped linehe drew on the U.S. troops in Europe. The source said that at least one night of the raid tracingthe flightpath of the U. S. planes that senator has requested a legal judgment from the Senate's struck Libya." The head of that sickle, he noted, was in legislative counsel office, identifying possible areasof Amer­ Britain, the base of thehandle in Tripoli, and the arc extended ican assistance to NATO whiCh could be cut or eliminated. out into the Atlantic, "repelled," he said, "by France, Spain, Rumors abound that Sen. SamNunn (D-Ga.) is preparing and Portugal." to reintroducethe samelegisl.tion he authored two yearsago The columnist predicted that the line definingthe circum­ for U.S. troop withdraw I frolm Europe. That bill, it should locuitous f{)Ute that the April 14 U. S. air offensive against be recalled, failed to pass by a margin of only three votes. Libya was required to take around WesternEurope will be­ aftera major personal lobbyi.g effort against it by the Presi­ come a new political boundarywithin the next year. dent, and there were no Granpn-Rudman restraints then. Of course, calling it "Weinberger's Line" is a typical Sen. Charles Matthias (It-Md.) announced to the West Washington Post deception. It is not the Libyan incident itself German population that "ecqnomizing" on the U.S. budget which poses a threat to the NATO compact. That case is this year will have consequences for NATO. Coming from being played'up by the likes of Krauthammer only to turn Matthias, a man who spent years as a member of the Senate public sentiment in the United States against the Europeans. Foreign Relations Committeje cultivating a pro-NATO im­ The real danger to the Alliance lies in the budget process age, these remarksare an ominous sign. They were published currently under way in theU. S. Congress: Gramm-Rudman. in an exclusive interview in ,the West Germany newspaper Both the authors, Senators Warren Rudman (R-N.H.) BildAm Sonntag. I and Phil Gramm (R-Tex.), have stated their personal intent Rep. Dan Daniels (D-Va.), a longtime member of the to ensure that their legislation has the effect of cutting back House Armed Services Comtnittee, stated of the Libyan in­ on the U. S. commitment to the Alliance. Rudman lashed out cident: "Our next step shoul, be to begin the gradual with� March 18 before the American Defense Preparedness Asso­ drawlof troopsfrom Europe.�' Asked if he was merely angry ciation at the U.S. military's "countryclub on the Rhine," as over the lack of European su,port, he retorted, "I'm, deadly he put it. Gramm, speakingbefore the American Association serious. " of Newspaper Editors in Washington April 9, repeated the Rep. Les Hamilton (D-Ind.), head of the House Intelli­ same. theme. gence Committee, chimed in ;With"anger on the Hill over the Now, in a climate of sanctimonious indignation at the Libyan affair" line to justify what he predicted would be failure of our European alliesto have "been there" when we "reduced financingfor NATO activities," and Rep. William raided the "Mad Dog" ofTripoli,Rudman, Gramm, and their Hendon (R-N . C.)declared: ". hope all future U. S. assistance cohorts aredemanding U . S. decoupling fromEurope . Insider goes the same way the U.$.' bombers did-right around reports to EIR from Capitol Hill are that the Senate Armed France."

56 National EIR May 2, 1986 The future of the 300,000 U.S. troops in Europe could deficitthe United States must undeIfunfprograms previously be sealed long before any legislation is passed, however. agreed to by the President and the dongress · and just run Congressional inaction might have accomplished the trick higher risks should really stand up aJd say why this is so, even before this edition of EIR gets off the press. As of this particularlyin view of the continuing Soviet expansion," writing, the Senate was coming within three days of forcing He said, "We are indeed preoccupied with deficits, and I the Defense Department to lay off 500,000 personnel. understand all the pressures confrontillg the Congress. But I A law passed by Congress last year to chisel the military have to remind everyone that the risk. does not go down as out of pension benefits as a cost-cutting measure included in the deficit goes up. It is essential t�t we make sure that it a·May 1 deadline for congressional implementation of defense not be cut simply because it is easier politically to specific pension system revisions. Failure to meet the dead­ cut it." I line would require the Pentagon to let go 330,000active duty "We can hope the Soviets will slo\v down as we do, but and another 170,000 reservists by Oct. 1. they never have ....I was told two (lr three times that we The House passed the required legislation, but the Senate should measure the President's budget by what is politically is "twiddling its thumbs," as one observer put it. The Penta­ acceptable to the Congress ....We h�ve a situation in which gon has been sounding all the alarms at the Senate, but "they _ almost everyone says that the budget Isn't realistic, Nobody just haven't responded," one source said. Unless a last minute has bothered to examine the details of it or say why it isn't law , or postponement of the deadline, is passed, the die will realistic, it's just that politically everypody thinks that what­ be cast to eliminate almost one-sixth of all U. S. military ever budget is submitted has to be loWer than the previous forces (now 3.3 million including reservists). one. And that is not a very good way to deal with the world as we see it. " Weinberger hits Gramm-Rudman . He continued: ''The risk of waris a,risk that depends upon Whereas the Senate was bringing this technicality down Soviet perception of our strength. . ; . If they at any time to the wire, Weinberger pointed out intestimony to the House perceivethat we lack the will or the �llingness to apply our Appropriations Subcommittee on Defense that if the auto­ resources or our very considerable st¢ngth to national secu­ matic sequestering provisions of Oramm-Rudman go into rity, then therisk of warincreases enofIIlously, and increases effect because of the failure of Congress to hit its targets for by our own act. So it is essential that we have the kind of cuts in the Fiscal Year 1987 budget, the result will be th� . insurance that will deter the Soviets fl10mbelieving that they 330,000 10% o forced removal of U.S. troops-more than of could have any advantage out of our . wn failure to provide the total including reserves, and almost the exact number the for our own security." United States has statioped in Euro� . Weinberger articulated the theory pf the administration's He said that if Gramm-Rudman's automatic provisions defense strategy in an article in the; Spring 1986 Foreign had applied to the military in the firstround of cuts last March, Affairs magazine, in which he presents his six-pointdoctrine 280,000troops would already be gone. "We don't have that for the use of U.S. military force, ori�inally spelledout in a personnel exemption in Gramm-Rudman next year," �e November 1984 speech at the Washington Press Club. He warned the committee. "If Gramm-Rudman should come denounced theRobert McN amara ap�roachof "limited war" into effect without that exemption, 330,000people will have that resulted in the Vietnam fiasco, �d placed the develop­ to be put out on the street." ment of the Strategic Defense Initia�ve at the head of a list Weinberger called such a development "a disaster as far of what he called "four new mili� pillars" of defense, as the military , as far as the national security is at stake, to which include 1) the SOl and nuclear deterrence, 2) conven­ say nothing of what it' would do to the economy. " tional deterrence, .3) arms control (wtthin the context of the "There are a number of people who now feel that the firsttwo programs), and 4) competiti1e strategies to keep the defense effort must be relaxed, either because they feel it has Soviets offbalance by technological flanking maneuvers, as gone on too long, or because the deficit is too high. Signifi­ it were, to render obsolete areas of th�ir defenses where they cantly, no one recommends that because the risk is diminish­ have invested heavily. ing;" he said, "nor are they recommending it because Iimod­ The doctrine is an optimistic one, based on the prospect em and responsive military capability is unnecessary." that throughthe SOl, "Americanscie,ce and technology will He added, "What is really being asserted is that the United achieve what· appears to some to be an impossible dream," States cannot afford an adequate defense. And that, I thjnk, but retains the maintenance of an eff�ctive deterrence as the we cannot accept. . . . People who argue that really are ar­ key to preventing war. "The ccmtra1 thread in the Reagan guing that we must forego a significantincrease in our safety, administration's policy is to com�ne sufficient military and I think the burden is on them to explain why." strength with such a cleardetenninatjon to resist aggression The angry Defense Secretary continued, "Arewe really thatwe discourage challenges, " he said. And it's thatdoctrine prepared to cut American strength in ways that increase the which is most seriously threatened �. the political implica- risks of war? Those who judge that in order to reduce the tions of Gramm-Rudman.

EIR May 2, 1986 National 57 governments noted our concerns and stated their general op­ Documentation position to terrorism; but they' undertook no actions to curb the activities of the People's Bureau members. And it was that Bureau which delivered the bomb to La Belle discot­ heque that killed and injured 250 people. I am not accusing the Soviet Union or the East German government of com­ plicity in the bombing of the IJa Belle discotheque, but these u. s. policy on governments did not use their influence and legal position to stop illegal activity on the part ofPeople 's Bureau members

accredited to East Germany. I terrorism stated Our military response to Libya' s continued policy of ter­ Excerpts from the prepared testimony of the Hon. John rorism against us was measured. It was based on the objec­ Whitehead. deputysecretary of state. befo re the House For­ tives of demonstrating that Qaddafi' s pursuit of his policies eign Affairs Committee. April 22. 1986:

...Given the recent U.S. military reactionto Libyan terror­ Some ofour Europ ean allies did ism. and the diplomatic activity surrounding our strike. I not provide the supportwe would would like to take this opportunity to apprise the committee have liked to see. ,America decided on the broaderelements of our policy and how we expect it to evolve. I will then address the details of implementing it need no longer stand idly by. currentlegisla tion on aviation security. that the time had 'arrivedfor a I would also like to thank the Chairman and the Commit­ carlffully designed military action. tee for their vital supportin combating terrorism. U. S. policy in this area must continue to be solidly bipartisan. Libya is not the only state which supports terrorism, but would not be without direct post to Libya; that the United it is the most flagrant violator of international law-in its States was prepared to use force to fightterrorism along lines organization and direct supportof terroristactivities in its use repeatedly and carefully defi(led by the President; and that of surrogates, such as Abu Nidal. More than 50 Libyan dip­ the United States reserves th� right to defend itself and its lomats have been expelled since 1981 by the United States citizens against aggression by any state, even when that and its allies for reasons of terrorism, an astonishing statistic. aggression takes new forms, such as terrorism. Earlier this year, Libya's support for terrorism was the sub­ As the President said, otir action may not stop Libyan ject of a State Department White Paper. That White Paper is supportedterrori sm, but it will give Qaddafipause, and make already outdated due to continuing Libyan terrorist acts with other Libyans question whether they want their government even moredirect Qfficial involvement, including the bombing to support such heinous acts. It will make the Libyan people of La Belle discotheque in Berlin, probably the shooting of wonder whether they want their government to support such an American embassy employee in Khartoum, and the killing heinous acts . It will make the Libyan people wonder whether of two British professors who were innocent hostages in the costs are -not greater than the benefits. It will also give Lebanon. We also note the tragic murderof Peter Kilburt, in moderate governments in the Middle East and our European circumstances yet to be explained, and the continuing plight allies time to undertake new Steps toward preventing terror­ of the American hostages in Lebanon. The long list of Lib­ ism. yan-inspired threats and actions directed against the United Our right of self-defense 'is more than just a right. It is States and Europedemonstrates that Libya is systematically also our duty to protect our ci.izens . In the months and years using terrorism as a matter of government policy. Libya's preceding our most recent action in Libya, we saw risks official support for terrorism is underscored by its clear pat­ increase abroad for our military and diplomatic personnel, tern of using its diplomatic representations in more than 35 for American businessmen, and for tourists. All have been countries to organize and support this terrorism. innocent victims of terrorists� We increased security to the The threat from Libya is not new, but it has increased utmost where there were speclficthreats .in Europe, the Mid­ ·dramatically in recent months. Our initial reactions were to dle East, Africa, and Latin America, and we put all U.S. improve security, and to work with host governments where official installations abroad on high alert. We increased our we faced specific threats. The response from host govern­ outreach programs to the privlkte sector and to tourists to alert ments was universally good from these governments-with them to the threat. From the State Department, we repeatedly one exception. In Berlin, we advised both the East German urged travelers to use prudence and common sense when governmentand the Soviet Union of the activities of Libyan traveling, especially to areas where threats were highest. People's Bureau members accredited to East Germanv. Both America is an open and highly mobile society. Millions

58 National EIR May 2, 1986 of Americans travel abroad each year for business and plea- . sure. We must not be afraid to �vel abroad. Rather,we must provide the proper security so that terrorists cannot strike, so that commerce continues to expand and tourists can continue to learn about each other's societies and cultures. We have Massad espionage made great strides in aircraft and airport security, which I will address in more detail later . But, until terrorismhas been and Richard Perle stopped, we cannot say that we have done enough. by Linda de Hoyos Cooperation with Europe We are more convinced thanever that effective preven­ tion of terrorism requires multilateral cooperation. It is no Recently, the assistant secretary of defense in charge of the secretthat we have had differences with European states over Pentagon's Technology Transfer Brancth,Richard Perle, vis­ what measures were necessaryto deter Libya and other states ited Japan. While there, he told any who would listen that, from supporting terrorism. We have engaged in a long-term in effect, cooperation in the U. S. Strattgic DefenseInitiative effort to deter Libyan support for terrorismthrough peaceful should not be a Japanese priority, because the program was economic and political measures. In 1979, we designated not likely to outlast PresidentReagan 's second term. Such ail Libya as a state supporting terrorism. In 1981, we decreed open act of sabotage would cauSe any patriotic American to unilateral economic sanctions that decreased U.S.-Libyan wonder something to the effect: Who is this jerk? trade from $5 billion to a few hundred million. In January, Working under Perle at the Pentagon is Deputy Assistant we invoked legislation that virtually cut all remaining eco­ Secretary of Defense Stephen Bryen. aoth Perle and Bryen nomic and political ties to Libya. In January, I emphasized were aides to the late Sen. Henry JackSon(D-Wash .) on the to European leaders that Qaddafi needed to understand that Senate Foreign Relations Committee. iBoth Perle and Bryen he could not support terrorism and enjoy normal relations are members of a nest of Israeli-Mossad agents in the U.S. with civilized nations. We recognized that our allies would government. They are associated, in particular, with a sec­ have to take similar measures for our sanctions to be fully tion of Israeli intelligence which-has �ad the special duty of effective. We also recognized thatour allies would have to providing American secrets to the SCNiet Unio�. They are make Qaddafi understand that Libya could not continue to not simply Israeli agents, but "false ft�g" Soviet agents. have normal political and economic relations with civilized On Nov. 21, 1985, Jonathan Jay Pollard, a civilian em­ nations, if peacefulmeasures were to be effective. The mea­ ployee of Naval Intelligence, was arrestedand charged with sures adopted were uneven; Qaddafi's attacks increased in spying for Israel. Pollard, it was determined, worked directly number, geographic range and deadlines. As a result, Amer­ under that section of the Mossad supporting the political ica decided it need no longer stand idly by, that the time had ambitions of Ariel Sharon. Sharon has anunderstanding with arrived for a carefully designed military action. Moscow. Moscow, periodically, promises to ship Soviet Jews Some of our European allies did not provide the support to Israel to populate a West Bank Shll110n intends to annex to we would have liked to see. However, having just returned Israel. In return, Sharon's associatesj among other favors, from extensive meetings with European leaders at the OECD are willing to funnelhigh-technology American secretsto the meeting in Paris and from a meeting with NATO allies in Soviet Union. Brussels, I would urge that this is not the time for recrimi­ That is the relevant background tol Richard Perle, under­ nation. We have had extraordinary contacts on counter-ter­ secretary of defense in charge of techQology transfer. rorism cooperation with the EC through our ambassador-at­ Perle and Bryen are both associated with the Jewish In­ largefor counter-terrorism, Robert Oakley, and through At­ stitute of National Security Affairs, an putfitfo unded in 1976, torney General Edwin Meese. European · states agree that and based in Washington. Other persons associated with multilateral cooperation must be made dramatically more JINSA include: effective. In the past week and a half, EC states have been • John Lehman, secretary of the Navy. , engaged in intensive sessions on counter-terrorism. We wel­ • Yossef Bodansky, former consukant to Perleand Bryen come this development and we welcome the invitations we at the Technology Transfer Branch. have received to cooperate with Europeanstates as a group. • Michael Ledeen, advisor to Alexander Haig during his Our allie,s have also· gotten the message that the economic tenure as secretary of state, now a cOQsultant to the National costs to them of allowing terrorism to continue can be very Security Council on Middle East pol,icy; hiswif e works under high, as, American tourists plan their vacations elsewhere. Perle at the Technology Transfer Branch. Our strike against Libya may have helped to open a new • Eugene Rostow, director of the Arms Control andDis­ hopeful chapter in multilateral cooperation between Euro­ armament Agency (ACDA) in the fi1$t Reagan administra­ pean states and the United States .... tion.

EIR May 2, 1986 National 59 i • Joseph Churba, aide to Rostow at the ACDA for part In 1982, Sjeklocha travelct9 \0 Jsrl!el whe� he plet witp of the firstReagan administration. Ariel Sharon and a former c�ief of Israeli military intelli­ ' . • Max Kampelman, chief Geneva arms negotiator. gence. The tripwas sponsore4 by JINSA. • Richard Schifter, aideto former U.N. ambassadorJeane Sharon offered him the opportunity to run guns to Iran. Kirkpatrick. Sjeklocha accepted, and was placed on the board of JINSA. • Max Raab, U.S. ambassador to Italy. His close associate, Lt.-Gen. Eugene Tighe (ret.), director of the Defense Intelligence Agency during the Carteradmin­ Richard Perle istration, was also placed on the JINSA board. Perle was actually caught spying for Israel in 1970. A wiretap of the Israeli embasssy in Washington revealed that Stephen Bryen he was passing classifiedinformation to an embassy officer. From April 1 , 1978 to Oct: 1, 1979, Stephen Bryen, then The NSC-ordered wiretap was released to the press, but, for attachedto the Senate Foreign Relations Committee, was the unexplained reasons, Perle managed to retain his security subject of a criminal investigationby the Department of Jus­ clearance and his position as Jackson's aide. tice to determine if he had violatedthe espionage act. Bryen During the Carteradminist ration, Perle was an employee had beenoverheard in a 1978 discussion with senior officials of the Abington Corporation, owned by John Lehman. Perle of the Israeli embassy on effQcting changes in U. S. policy. maintained a lucrative contract with Soltam, one of Israel's According to eyewitness testimony, Bryen and the Israelis largestweapons and munitions firms. Soltam was originally plotted Israeli activities regarding the U.S. Congress and formed during the Israeli War of Independence in the 194Os. what had to be done to ensureIsra el's continued occupation Its importance restedin the fact that a Finnish firm,Tamp ella, of the West Bank. Bryen noted that he had access to infor­ licensed it to manufacture mortars. The arrangementwas one mation pertaining to U.S. arms sales to Arab countries, and of the ways in which the Soviet Union supplied the Haganah that he would make thatinfo fl!llaton available to the Israelis. with Czech arms during the Warof Independence. The Justice Department �d FBI werefo rced to launch a In 1980, Soltam paid Abington a $90,000 consultant fee formal investigation into Bryen. According . to documents for services provided by Perle, including advise on inducing released under the Freedom -of Information Act, the DIA the U.S. Department of Defense to purchase Soltam mortars documents which Bryen was overheard discussing with Is­ and ammunition. In March 1981, Perle, already sworn in as raeli officials were in his possession at the time. However, assistant secretary of defense, received two additional per­ the investigation was stonewalled by Justice Department sonal payments from Soltam totaling $50,000. On March 18, Criminal Division director Phillip Heymann, although de­ 1982, Perle issued a departmental memo arguingthat Soltam partmental investigators contiPued to believe that Bryen had equipment was not receiving a fair evaluation. Soltam equip­ been involved "in efforts to obtain sensitive information for ment, however, continued to be regarded as inferior for the which tie had no apparant le8itimate need but which would pricedemanded . have been of inestimable value to. the Israelis." Soltam was later absorbed by the giant Israeli corpora­ The FOIA documents show that government investiga­ tion, KoorIndustr ies, owned by the Labor Party's Histadrut. tors focused on Bryen's relationship with Zvi Rafiah, coun­ Koor has frequently been involved in Mossad arms smug­ selor to the Israeliembassy aQdalso theMossad station chief gling and espionage. For example, upon leaving the Mossad in Washington. According to the documents: "The FBI had directorship in 1976, Israeli spymaster Meir Amit assumed a good circumstantial case against Mr. Rafiahand it implied controlof Koor. that Mr. Rafiah hadgiven Mr. Bryen 'orders,' which he had Six months before the Pollard case broke, on July 31, carried out. " 1985, the FBI arrested a San Jose, California-based arms One of the controllers of Jonathan Pollard was identified smuggling ring which had been entrapped attempting to sell by theIsraeli newspaperDavar as YossefBodansky, a Wash­ a federal agent 5 ,000TOW missiles and other militaryequip­ ington Times reporter. According to several Israeli intelli­ ment. Among those arrestedwere Col. Wayne G. Gillespie gence sources, Bodansky is a spy for theLekem , theScience of the Army Materiel Command at the Pentagon, Fahrin Liaison Bureau, an espionage unit within the Israeli defense Sanai, an Iranian arms smuggler, and Amir Hosseni, an of­ ministry run by Rafael "Dirty Rafi" Eytan. Bodansky emi­ ficer of Khomeini's intelligence service, the Savama. The grated to the United States dUlring the Carteradministration , ring leader of theoperati on, which had beenin business since and secureda teaching positionat Johns Hopkins University. 1981, was Paul Sjeklocha, a.k.a. Paul Cutter. On Aug. 20, He soonjoined Bryen, Perle, and Ledeen as a regular con­ 1985, Sjeklocha-Cutter and six members of the ring were tributor to the JINSA newsletter, and thereafter, as a con­ indicted by a federal grand jury in Orlando, Florida, on sev­ sultant to Perle's Technology Transfer Branch. He was re­ eral dozen counts of conspiracy, arms trafficking, and wire portedly golet from thatposition when his espionage activi­ fraud. tiesbecam� too obvious for even RichardPerle.

60 National ElK May 2, 1986 NDPe campaigns target the drug lobby behind the liberal Democrats

by Stephen Pepper

On March 18 two so-called unknowns, Janice Hartand Mark party's strenuousefforts it had not been able to identify the Fairchild, deliveredthe biggest politicalshock of the decade "LaRouche Democrats," and has called on them to "step when they won nomination on the Democratic ticket for the forward and identify themselves" so that he can then throw offices of secretaiyof state and lieutenant-governor of Illi­ them off the ballot. nois. The fact that these two candidates werebacked by the The panic of the Democratic Party hacks has spread to National Democratic Policy Committee (NDPC), the politi­ neighboring Delaware, where the party hasannounced a crash cal action committee associated with the programs of Lyndon effort to publish and distribute a brochure identifying the LaRouche, transformed these otherwise routine electoral re­ LaRouche "threat." There are no announced LaRouche can­ sults into worldwide news. didates in Delaware. In Kansas too, the party is moving to Theoutcome forced Democratic gubernatorial nominee crush an incipient LaRouche movement. So far, they have Adlai Stevenson III to quit the ticket, and in effect the Dem­ not found it. On the otherhand, twocandidat es, one Repub­ ocratic Party, and to sue the Illinois Board of Elections to lican and the other Democrat,from Idaho and Arkansas, have change its rulethat independentshave to declaretheir inten­ contacted the NDPCoffices to learnmore about LaRouche, tionsby Dec. 16. The Illinois state CentralCommittee of the since the presshas identifiedthem, to their astonishment, as Democratic Party took even more extreme steps; when it "theLaRouche candidat es. " Finally, an Oregonlocal candi­ voted unanimously to request the Board of Elections to re­ date told the press proudly that LaRouche agrees with her move Hart and Fairchild because they were "hostile" to the 95% of the way. DemocraticParty , and to allow the CentralCommittee to toss While at this stage, the Democratic officials' Mc­ out the voters' choices and appointreplacements . Board of Carthyitetactics resemble morethe Keystone cops thanfu ll­ Elections chairman RichardCowen indicated that he was not blown police-state terror, more ominous efforts are already preparedto bail out Stevenson: "I amnot sure of any authority under way. In Alabama,the Madison County �xecutive com­ . or precedentthat we have at this juncture to remove anybody mittee convened a three-member board which votedto expel from the ballot." Glen Thompson, a memberof the part)'for 32 years, who is Newspapersfrom Moscow to Bombay coveredthe result backed by the NDPC in his campaign for an executive com­ of an election which under anyother circumstance would not mittee post. The idea is that since only the executive can rule have beenreported outsideof Illinois itself. Clearlythe out­ who is a Democrat, if you try to become the executive, they come brought to the surface the latent awarenessof the sig­ will expelyou ! nificance of LaRouche and his policies, which had hitherto Even more dangerous is the role of Sen. Daniel "Pat" beenstou tly denied. Even PresidentReagan responded. When Moynihan, the lush from Broadway. In addressing the AFL­ asked at a White House Correspondents' dinner whether the CIO awards dinner in Buffalo, New York, the flap-jawed GOP could beatthe Democrats, he responded, "You bet, we Moynihan called "LaRouche and his neo-Nazifollowers . . . can beat Lyndon LaRouche." as serious a threat as we have dealt with in the last 30 years.... We think because we see themas kooks ...we The liberals' counterattack don't realize that is exactly how the fJitlers and Mussolinis Democratic National Committee chairmanPaul Kirk an­ and Lenins were regarded in their day. We have got to take nounced a multi-level program to "expose" LaRouche can­ these people on .. . and we have got to smash this thing didates, including mailing dossiers to every state chairman, fast. " launching the highly dubious policy of loyalty oaths, and Moynihan's threat to LaRouche, who is a target for as­ demanding that party officials oversee the "purging" of sassination by terrorist groups such as the Jewish Defense LaRouche candidates. Despite the fact that the DNC has League, reflects the senator's close connections to the drug adopted tactics thatwould make thelate JoeMcCarthy blush, lobby, and itsadvocates from the Antit-Defamation League. the results so far have been morehilarious than menacing. Kenneth Bialkin, ADL chairmanand formerbusiness partner Pennsylvania Democratic state chairman Ed Mezvinsky, in of fugitive drug trafficker Robert Vesco, has been one of a press conference on April 24, admitted that despite the Moynihan's principal financialbackers. It is Bialkin who, on

EIR May 2, 1986 National 61 behalf of the Averell Harriman wing of the Democratic Party , Bank chairman Marvin Warntr. Warnerwas recently indict­ has helped to orchestrate the national responseto LaRouche. ed by a state grand jury for financial manipulations which : Bialkin and the Harrimans have suddenly revived interest in r«sulted in the March 1985 coJiIapse of Home State and pulled . the flagging fortunes of Jesse Jackson and his Rainbow Co­ the plug on savings-and-Ioaninstitutions throughoutthe state. alition, as a potential alternative to LaRouche for leadership The majority cifthe 13-mjm congressional slate is made of the mass of discontented Americans. up of working farmers and !entrepreneurs, like Democrat The victory ofNDPC-backed candidates in Illinois rep­ Clem Cratty, who is running unopposed in the 4th congres­ resents a direct threat to Dope, Inc., the interlocking direc­ sional district for the seat currently held by Republican Mi­ torate of bankers, dope dealers, and gun-runnerswhich owns chael Oxley. Ohio farmers are facing economic conditions the present leadership of the Democratic Party. When the worse than the last great depression, reflected in the 49% voters in Illinois chose the LaRouche candidates to express drop in the value of Ohio fanllliand over the past five years. their discontent, they set off an explosion which is still re­ The candidates chose to run, as Don Scott said, "because verberating . The directors of Dope, Inc., the Bundys, and someone has to get the message out to the American people the Rockefellers recognized this; President Reagan partly that the industrialand agricultlilralproduction base of the U . S. grasped it. The former reacted by unleashing Moynihan, economyis in a shambles and getting worse every day." Kirk, and company; Reagan drew the correctconclusion that All the candidates in the Glce except the LaRouche slate the U.S. population would back him in decisive acnon against are ignoring the crisis. Ohio' � total population has been de­ Libyan terrorism, and proceeded to bomb the headquarters clining since the 1950s, and with it has gone the state's once­ of MuammarQaddafi . proud manufacturing base. The skilled and semi-skilled It is possible that the intensity of the slanders that have workers who made Ohio a Lincoln Republican stronghold in been injected into the campaigns may intimidate some voters the last century are disappearing: Unemployment standsof­ in the coming primaries. But, as LaRouche said in his April ficiallyat 9.4%; from 1979 tol 1982, Ohio lost 8% of its non­ 9 address to the National Press Club in Washington, "The agricultural jobs, including . whopping 36.8% decline in . genie is out of the bottle and can never be put back again." manufacturing employment .. The battle has been joined, and the survivalof Dope, Inc. is The Democratic Party , �ich today controls all the top the issue in the coming primaries. elected positions and the majbrity of the state legislature, is confronted in the NDPC slate.with the first serious challenge to its "post-industrial age" eC0nomic policy. Ohio The NDPC-backed candidates have targeted those forces in Ohio responsible for the economic collapse. A document released on March 24 identified the following facts behind the "drug mafia takeover" of Ohio's economy and the politi­ cians who run it: Candidates battle "I. There are the strongest reasons to believe that Marvin Warnerwas operatiDg a massive drug-money and dirtymon­ the dope mafia ey-laundering operation (as chairman of Home State Bank). "Beginning with arrangements made in the 1977-78 pe­ by MariannaWe rtz riod of Warner's nomination as ambassador to Switzerland, the daily cash flow through �ccounts of ESM Securities of Florida, simply from transactions with Warner's Home State A slate of over 50 Democratic and Republican candidates for Savings Bank, was on the order of $.5 billion or more per fe deral and state offices is running in the May 6 Ohio primary day, for eight years. Securities companies like ESM, and election, under the banner of the National DemocraticPolicy their banks, are exempt fromthe federal Bank Secrecy Act, Committee. Led by seventh-generation Ohio dairy farmer which requires reportingof cash transactions of over $10,000. Donald Scott, opposingincumbent-senator John Glenn in the "II. This daily cash flow !was increased by contributions Democratic primary, the slate has set its sights on repeating of up to $120 million per day fromthe bank accounts of the the kind of upset victory which two NDPC-backed candidates City of Toledo, arranged by !the political friends of Warner won in the Mar ch 18 Illinois primary . beneficiary,Ohio State Democratic chairmanJames Ruvolo. Fear of such an outcome has been widely expressed by "III. The ESM-Home State operations were in blatant Ohio Democratic Party officials, including Gov. Richard vioi ation of Ohio state law, and could not have continued Celeste and party chairman James Ruvolo. The NDPC slate without massive political protection in at least the states of has charged Celeste and Ruvolo with complicity in the mas­ Ohio and Florida. sive narcotics traffic in Ohio, through their intimate relation­ "IV. Marvin Warner contributed, raised, and lent: ship with reputed drug-moneylaunderer, former Home State $300,000 to the 1982 campaign for governor of Richard

62 National EIR May 2, 1986 Celeste; $250,000to the 1984 presidential campaign of John appeasement of Moscow, and fromthose enemies from with­ Glenn (out of a $3 million bank loan Warner helped to ar­ in the Western nations who aredemanding the "decoupling" range); thousands of dollars to the U. S. Senate campaigns of of the United States from its allies abroad. Croomis a former John Glenn and Howard Metzenbaum; tens of thousands of state commander of the American Legion and former state dollars to the Democratic State Committee under the chair­ chairman of the Peace Through Streng1h group. In 1985, he manship of James Ruvolo." led the Ad Hoc Commission tO' stop the appointment of "de­ The impact of the NDPC campaign can perhaps best be coupler" Richard Burtas U. S. ambassador toWest Germany. measured by the level of hysteria it has created in even the In a statement released on March' 20, jointly with H. normally placid, if not downright boring, demeanor of for­ Davis Wall, president ofCharlotte 's Local7430 of theUnited mer astronaut, now senator, John Glenn. Glenn was asked Steelworkers of America, Croom called for a national mo­ by a reporterat a recent campaign appearance, how he views bilization of labor and industry, "to implement the kind of the challenge from Don Scott, who won the Democratic policies that allowed this nation to win World War II, under primary with 61 % of the vote during his first bid for the 7th 'the leadership of President Franklin Delano Roosevelt. Most CD seat in 1984. "I don't take it lightly at all," Glenn re­ emphatically, this includes a crash program approach to the sponded. He then launched into a tirade against "the La­ development of the Strategic Defense Initiative; a gearing up Rouche camp," concluding, "In Illinois, nobody paid atten­ of steel production to make America once again self-suffi­ : tion, and you see what happened. We have to oppose that, cient in this critical area of national security; and a firm obviously. When anybody like that gets loose in this ·country, commitment on the partof the U.S. governmentnot to allow we have to be aware of them." the Soviets and their allies to decouple the U. S. from its In Illinois, the voters gave a resounding "no" to the Dem­ WesternEuropean allies ." ocrats who ignored what LaRouche called "the forgotten Croom, who has nine opponents in the Democratic pri­ majority ." The Ohio primary , together with the concurrent mary, has also hit hard at the appeasementpolicies of liberal North Carolina and Indiana prirrtwies on May 6, will deter­ Democrats, like former governorTeriySa nford, his principal mine whether voters in a broad cross-section of the formerly opponent. Sanford's original approach to the primary'race industrialized heartlandof the United States, concur. was to keep a low profile, but under p�ssure of a barrage of radio advertisements and other statemtnts from Croom, he has been forced to address the issues� and in particular to North Carolina moderate his earlier attacks on the Strategic Defense Initia­ tive. Croom's radio broadcasts have criticized Sanford for his supportof the Gramm-Rudman legislation, which is lead­ ing to huge cuts in the defense budget. he Gramm-Rudman Croom fo r Senate bill, Croom charged, "threatens to unilaterally disarm our nation" and "will require very seriou� cuts in our already inadequate defense program, to such an extent that the So­ hits defense crisis viets may see an opportunity to fulfillKhrushchev 's promise to buryus with their enormous military machine." Milton Croom, candidate for the Democratic nomination for As the campaign unfolded, the misguided role of Sen. U.S. Senate in North Carolina, is a political figure in the Jesse Helms (R-N.C.) in hemispheric /tffairs has become an tradition of the Cincinnatus Society, the grouping of Ameri­ issue. Croom issued a statement criticizing Helms for under­ can military officers who had served their country during the mining the governmentof Panama, and supporting the polit­ Revolutionary War, and who then formed an association to ical ambitions of Amulfo Arias, the fo rmer President who keep alive the ideals for which they had fought. A 75-year- . was a Nazi activist during World War'll. "The government old retired naval commander, Croom is running in the May in Panama, home of the Panama Canal and an ally of the 6 primary for the seat being vacated by Sen. John East. U. S. , is scheduled for destabilization by the forces that over­ This report on Croom's campaign was prepared by EIR threw President Marcos in the Philippin¢s," he charged. "This on the basis of telephone interviews with the Croom for is of grave national security concern to; me." He called upon Senate headquarters. While Croom is not a "LaRouche Dem­ Senator Helms to "reappraise his positibn in this situation." ocrat," he finds many points of agreement with Lyndon Croom is fillingthe political vacuum left by Helms, who LaRouche, whom he hails as "a dedicated Americanworking has dismayed many conservatives betause of his growing harder than anybody else to preserve the interests of the involvement with such disreputable individuals as Arias and United States." Israel's Ariel Sharon. Croom's campaign has restored dignity Croom decided to run for public office because of his to the conservative movement in North Carolina, and served growing concern at the threat to the national security-from as a flag�hipfor "citizen soldiers" nationally.' This will have the Soviet war buildup, from those in the West who advocate importance long afterthe current electi�n campaign is over.

EIR May 2, 1986 NatiO'nal 63 "La Cucaracha" and says she:hopesthe media will scrutinize Indiana her campaign even closer, especially on the issues. Irey, who eschews politiqal labels, says she laughs it off when the media calls her an !'ultra-conservative," a "kook" or an "extremist." "What would you call George Washing­ ton, Benjamin Franklin, Hamilton, or Lincoln if they were alive and walking the streets today?" she asks. "What kind Georgia Irey emerges of title would you give them? If you could figure that out, you can call me the same. If any of them came back today. as the frontrunner they'd be outraged that we�re still using the same British system of economics thatthey 'd fought to overthrow. They'd by Marla Minnicino start another revolution. That's. what I'm doing and that's what the LaRouche candidates' movement is all about. " Irey's campaign has challenged the left-liberal and drug­ After the Texas primary on May 3, the battle between the linked interests in the state, n9tably the Eli Lilly Endowment, LaRouche forces in the Democratic Partyand thosewho want which finances organizatio� implicated in terrorism. Lilly to "preserve" what was once the Partyof Franklin D. Roose­ Endowment stock was used to set up the Plumsock Fund in velt and John F. Kennedy as if it were a private country club New York, which gave Maypr EdKoch his political start. for liberals-shifts to Indiana and Pennsylvania. The May 6 Democratic primary in Indiana is shaping up as a test of Bipartisan backing strength between LaRouche Democrat Georgia Irey and a Irey, who won 49% of the vote in a 1980 Democratic little-known Party-endorsedcandidate named Jill Long: The congressional primary bid in California, has widespread bi­ two are vying forthe Democratic nomination for U. S. Senate partisan supportin this largely conservative state, especially and the rightto challenge Republican SenatorDanforth Quayle from what she calls the "c;>utraged voter"-farmers , small in November. businessmen, blue-collar wOrkers, and others who arefed up Party bureaucrats are silently praying that their strategy with the economic "recovery" that has ravaged Indiana's of ignoring Irey and relying on the media to "expose" her ties steel and agriCUltural industries. She has been endorsed by to Lyndon LaRouche will guarantee a victory for Long. A the Indiana Democrats for Life, and has received support spokesman for "Coy Jill" Long-who could not be reached from conservative political figures of both parties, including for comment herself, and seldom appears in public-said he theformer mayor of Marion and twostate legislators. was 95-100% sure that she would win the primary. But Dem­ Indiana, with its mix of urban centers like Bloomington ocratic Party officials were less sanguine. Larry McKee, and Indianapolis, its smaller manufacturing centers, and its executive director of theIndiana state DemocraticParty , told farmland,is much like Illinois and otherstates of the Midwest this news service, "We're not taking anything for granted. where the traditional constituency of the Democratic Party What happened in neighboring Illinois brought the 'La­ sees steel and auto plants closing. down and family farms Rouche problem' to our attention. This is thefirst time we've going bankrupt. endorsed a candidate before the primary. Of course, our The liberal wing of the. Democratic Party has not ad­ problem is that Long doesn't have a lot of recognition. We've dressed the economic collap�e, except to talk aboutthe post­ got to get her betterknown . We're depending on the partyto industrial era, says Irey. By this they mean "de-industriali­ do this and we're banking that the media will expose Ireyas zation"-fast-food chains" real-estate boondoggles, the a LaRouchite. " stripping of our country's defense capability. Indiana Dem­ State· chairman John Livengood and Grant County.Dem­ ocratsdon 't want any more of this. ocratic Party leader David Maidenberg share this view. Liv­ Irey, formerly a Republ�can herself, has offered to help engoodtold the press last month that Ireycould win theright breathe life back into the Democratic Party by reviving the to head the Party's slate in November "unless her links to "harmony of interests" among farmers, labor, and industri­ LaRouche are widely knO\yn before the primary." Maiden­ alists-the "FORcoaliti on." berg noted recently: "Our only concernis makingsure people Irey has called for an end to farm foreclosures, for re­ know she is a LaRouche backer. . . . I think now that they opening the steel plants by emergency infusions of low-in­ do have people's attention, it's going to be more like cock­ terestcredit , and for repealing the Gramm-Rudman budget­ roaches when you shed light on them. Nobody will pay them balancing legislation. She heads a slate which includes: San­ any attention." dra Smith (C.D. 1); Jerry $olinger (C.D. 3); Carolyn Wil­ However, the Party's strategyof letting the media do the liams (C.D. 4); Douglas Smith (C.D. 6); John W. Taylor work of "exposing" the LaRouche candidates in Indiana is (C.D. 8); Ronald Bettag (C.D. 9); and Benson Skelton in backfiring, and Irey, a spunky 62-year-old veteran political C.D. 10, plus four candidates forstate legislatureand several activist, is enjoying ·every minute of it. She's dubbed herself for partypositio ns.

64 National ElK May 2, 1986 even field candidates in 46 state house and senate districts Pennsylvania wherethere are Republican incumbents! That is, in over 20% of the state districts up for ele�tion, the Democrats are not fieldingany candidates whatsoever. Mr. Mezvinsky and his minions' hysteria is bornof their recognition that Pennsylvania, the state where Lyndon La­ Rouche campaigned most heavily for the Democratic presi­ dential nomination in 1984, closely resembles Illinois, polit­ ically, demographically, and economically. Central Penn­ sylvania, the state's agricultural heartland, and one of the LaRouche Dems take nation's great dairy centers, is much like the farm belt in downstate Dlinois. Pittsburgh and Philadelphiaretain theshells the state by storm oflarge ethnic and black political machines, much as Chicago does. And Pennsylvania has enormous steel and related man­ Political firestorms such as Pennsylvania has not seen in ufacturing capacities that are vastly under-utilized, as in Il­ decades, have erupted in congressional districts across the linois. state, as the May 20 primary election date approaches. La­ The blue-collar laborers that formerly worked the state's Rouche Democrats are contending for 18 of the 23 congres­ factories and farms, are seething with r�ge at the Democratic sional seats up for election. An additional 120 candidates are Party leadership which has forsaken them. LaRouche Dem­ vying for state assembly, and state and local Democratic ocrats have been propelledby this wave of mass dissatisfac­ Party posts. The slate is headed by gubernatorial candidate tion into positions of prominence, virtually overnight. For Steve Douglas, who polled 20% of the statewide vote in a example, LaRouche Democrat Jonathail Kulp, a 34-year-old four-way race for that office in 1982, and George Elder, engineer with no political experience, running for the 19th candidate for U.S. Senate. Congressional District seat in the York :area, is now referred From virtually the moment it was known that LaRouche to as the "most fe ared politician in the district," by both the Democrats Janice Hart and Mark Fairchild won their Demo­ media and Democratic Party leaders In the area ..Such is cratic primary races for secretary of state and lieutenant­ likewise the case with Mike Neal, the computer technician, governorin Illinois, hysteria has governed the actions of the political novice, and LaRouche Democrat running for Con­ state's Democratic Party Chairman Ed Mezvinsky and his gress in the neighboring 16th District in Lancaster. Both the friends in the media. In most of the C.D.'s, slanders of the media and Democratic Party leaders who have been slander­ LaRouche candidates have been runon almost a daily basis. ing him daily, acknowledge that he is the "front-runner," On April 24 , Mezvinsky held a press conference in Har­ who "would win by a large margin, if the election were held risburg, the state capital , to call f()r a "frontal assault" on today ." candidates associated with LaRouche, claiming that his aim is to bring the candidates "out of the closet." Steve Douglas, AIDS and drugs . speaking for the LaRouche Democrats, said, "We will be Two issues which have assumed enormous political di­ happy to issue the entire list of LaRouche candidates in each mensions in the past few weeks are AIDS and drugs. Recent congrer<;ional district at the conclusion of a series of three revelations from the U.S. Public Health Service on the full debates which would be held between the LaRouche Demo­ scope of the AIDS epidemic, and the conditions of economic crats and the Mezvinsky candidates." Douglas asserted that squalor under which it is bred and spread, have registered if Mezvinsky means "that he is concernedto bring the issues their effect. Residents remember, all too vividly, the out­ before the Democratic voters , then we are most delighted breaks of giardiasis (dysentery), which ravaged the depressed with this change of attitude." areas around McKeesport and Scranton in 1982. Sewage was present in their drinking water supplies; as a result of increas­ The rage of the 'forgotten majority' ing budget cuts and shrinking tax bases, that combined to The LaRouche Democrats' campaigns for a Public Health render their water purification system$ dysfunctional. Hor­ Emergency Mobilization Against AIDS, a War on Drugs, a rifiedDemocrats are flockingto the PublicHealth Emergency crash program for building beam weapons, an emergency Mobilization program of the LaRouche candidates, having agriculturualrecovery program, and gold-backed, low-inter­ recognized that the inaction of the Democratic Party leader­ est credit for hundreds of billions of dollars worth of large­ ship on this issue could well prove to bethe death of them. scale agricultural, industrial, and infrastructural projects have The dope-money laundering issue, raised by Mr. La­ reverberated with great impact through the policy void cre­ Rouche on April 9, is also hot in Pennsylvania. The Phila­ ated by Mezvinsky and his cohorts from the Democratic delphia Inquirer, the Daily News, ahd other newspapers National Committee. Mezvinsky's leadership qualities and prominently covered LaRouche's charges, while running ex­ policies are so uninspired, that the party leadership did not posesof money laundering on their own.

EIR May 2, 1986 National 65 the demographic makeup dfits area . ..and will register RainbowCoalition with the secretary ofstate a.ta committee. . . . This proposed structure fits the prescriptions of Daniel Moynihan, and other party bosses, who advocate closing the party off from itssupport ers, and imposing McCarthyi�loy­ Jesse vows to nm alty oaths and membership qualifications as conditions for participation in primary elections. The condition that these against LaRouche committees have demographically proportional representa­ tion is also an attempt toext�nd the McGovernreforms deep­ by Leo Scanlon er into theelectoral .processJ Theorganizational and suppqrt money tobaCk this scheme is coming from the Democratic National Committee, via a Jesse Jackson kicked off his 1988 bid for the Democratic fund established to promote the development of black can­ presidential nomination on April 18, with a firmpledge to be didates. The fund, administered by close Jackson supporter the party establi�hment's candidate against Lyndon la­ Roland Burris of Chicago, was set up by Paul Kirk, to buy Rouche. Speaking to an audience of 600 at the founding off the Jackson-led oppon�nts of his nomination as DNC convention of the RainbowCoalition, Jackson underlined his chair. As Jackson commencjed, "I expect to do some serious support for Muammar Qaddafi, endorsed and was endorsed fundraising aftertonight. . ; ." by leading terroristspokesm en, and obtainedthe blessings of Merle Hansen, spokesman for a delegation of farmersat radical leftists Vance Hartke, Charles Rangel,,(lI1d Barry the. convention, pointed outlthe reason for this elaborate ma­ Commoner. The c8lt1paign program described in Jaclcson's neuver. "Farmers are goin, somewhere, it's just a question speech, is his proposal to build a "structure withinthe party" of where. For a lot of them, if Jesse Jackson wasn't around, to counter the influence of the growing movement of La­ the alternativewill be LaRouche." Jackson indicatedhis fear Rouche Democrats. of LaRouche with a slan�r, equating LaRouche with the Jacksonindicated thathe has been given the franchiseby KKK, a tactic which will o,ly furtherdiscredit him withthe the Democratic National Committee to create an ersatz or­ black voters of Chicago, who voted in overwhelming num­ ganization which will bearthe label of ''trueDemocrats" and bers for LaRouche candid4tes in March. It is evident that will be able to bring "discipline and definition to the party Jackson has no illusions aJ?out gaining popular support for ...discipline so that we won't have situations like Cook his coalition-he is counting on thelegal tricks and the thug County, where the Democrats waged an attack on Harold apparatus at the disposal of the DNC to make his bid a suc­ Washington. . . ." cess. Jackson's job in the Democratic Party is not, as Mon­ The Rainbow Coalition, such as it is, is a gathering of the dale's was, to sabotageany particular program, such as sup­ extreme left fringe ofthe Democratic Party, featuring a col­ port for the Strategic Defense Initiative. According to an lection of "movement" del�gations-nuclear freeze, wom­ outline presented in his speech, Jackson will start a series of en's liberation, and so on---,:"and representatives of the terror­ legal maneuvers to attempt to lock mainstream Democrats ist apparatus centered in the American Indian Movement and out of the party, proof that the current party leadership will the support groups thefor .African National Congress. commit political suicide rather than accommodate to the Jackson himself leftno doubt of theimportance placeshe growing insurgency of Democrats gathering behind Lyri.don on the role of internationalterror ism'to create the environ­ LaRouche. Specifically,Jackson chargedthe delegates at the ment for his Rainbow Coalition. His speech was laced with cQ�vention to undertake the following actions: references to the U.S. raid on Libya as "sta� terrorism." He " ...Go out and do what we didn't do befOre we came threatened that the U. S. action in the Mediterranean would here, organize a -structure within the party. . . . have its greatest effect in the nations targeted by Soviet­

"Create local, district, and state committees ....1 The backed fundamentalists cOl1trolled by Qaddafi . Not surpris­ local.committees will be represented on the district commit­ ingly, his homiletics reachecl a. zenith as he made an open tees, the district committees will be represented on the state pitch to the Soviet Union, equating the U.S. raid on Libya committees, and the state committees will be represented on with Hitler's invasion of �ssia, and demagogically calling thenational committee. . . for joint U.S.-Soviet economic ventures, as the only alter- "No local or district committee will deal with state or native to "fascism. " I natio1UJlcandidates . . . . All issues of policy will beworked This reference is no s1JWrise. Jackson recently met with out during workshops of the convention of the Rainbow Co­ a Soviet delegation led by �ussian Orthodox Church leader alition, local committees will concernthemselves with issues Metropolitan . Filaret-the very group which delivered relevantto the constituency in that area. . . ." marching orders to Walter Mondale at the start of his 1984 "Each committee will be proportionally representative of campaign.

66 National EIR May 2, 1986 Eyeon Washington by Nicholas F. Benton

"moderate" for President in 1988, they to vulgar gesturing. It has still not oc­ will lose this solid base of supportthat curred to any of these creatures that GOP voter base wants gave them victories in the last two opening up a dialogue to work with elections, but is already "fed up." the LaRouche mov�ment might solve LaRouchet too However, this base will also be very their electoral woes. . If you think the Democratic Party skeptical of any new "hardline" can­ As one seasoned Democratic vet­ leadership is having a hardtime trying didate, given theirdisappointment with eran confided, "All the LaRouche to keep its constituency away from Reagan, while many Republicans movement needs to! do is win in two Lyndon LaRouche and the National would fear a "hardliner" would play more primariesthis year, and the cur­ DemocraticPolicy Committee, take a into the hands of the Democratic op­ rent leadership' will rip apart at the look at what's going on in the ranks of position. seams." He cited tile demoralization the Republicans. This makes the "LaRouche factor" and division within'the party appara­ A Washington insider operating on absolutely decisive for who will be tus, making the partyunable to mount Republican fund-raising efforts in this Presidentin 1988, this source conced­ an effective . antiJLaRouche cam­ city confirmedthat the lllinois prima­ ed. paign. ry results in March that propelled two ''There is no coMmitment to prin­ LaRouche Democrats to stunning Democrats fear they ciples that people feel arereally worth statewide victories was a genuine re­ fighting foron the grassroots lev..elof flection of the rebellious mood of blew Senate majority the party where it counts," he said. Americans-butthat mood is not lim­ The Democrats, meanwhile, are be­ ''There are only theparty bureaucrats ited to the voters of the Democratic having like "Eeyor,"the moping d�n-. who arein it for their personal careers, Party alone. key in Winnie the Pooh. and who areall competing against each He said that Republican fund-rais­ The culmination of formerIllinois other. In this state of affairs , the cur­ ing efforts nationwide from lists of Sen. Adlai Stevenson's stupidity in rentleadership carulothold up against previously solid contributors are run­ respondingto the primary victories of any resolute challenge, either from ning into an unprecedented level of the two LaRouche candidates has the without or fromwithin , but especially rage and disgust at the lack of solid Democraticleadership herein the cap­ fromwithin the party. " leadershipin Washington .. ital very depressed-led by Illinois Rep. Jim WrigJit (D-Tex.), who He characterized a typical re­ Sen. Al�en Dixon. This crowd esti�' will replace Tip O'Neill (D;-Mass.) as sponse as, "I've triedthe Democrats, mates that Dixon is now threatened speakerof the house in· 1987 only if he and I've tried the Republicans. Now with defeat by his no-name Republi­ can hold onto his �at in Ft. Worth I'm just fed up." He said that this re­ can opponent. That loss could bejust against a challenge by LaRouche sponse is often accompanied by threats the margin that will keep them from DemocratElizabetq Arnold, reflected to vote against the party if it dares to claiming a majority in the Senate in the deadening tone; of pessimism so disturb him with one more phone call 1986. characteristic of thdincumbent Dem­ for money. Particularly noteworthy, As Stevenson has proven by tak­ ocratic leaders, in his speech to the he said, was the level of disgust with ing himself off theticket , the tendency Communication Workers of America the "sell-outs" of the Reagan admin­ to self-destruct rather than fight is a hereApril 23. istrationin foreignpolicy-especially very strong impulse among liberals. His sole idea of Ii solution to the . regardlng South Africa and the Phil­ All in all, it made for a very unhappy economic depressionwas the Chrysler ippines. evening at socialite Pamela Harri­ company and the massive concessions Thesource relatedthat he estimat­ man's annual "Democrats for the theunion was williqg to accept to help ed that the highest percentage of this 1980s" bash here April 22. Over 40 bail out the company. sentiment was coming from "mid­ Senators werepresent-but there was Now, it's unfairto assume that his America," where economic factors morecommiserating thancelebra ting. praise of Chrysler rlteans Wright will hittingthe farmand energy sectors are Two LaRouche supporters stood out­ be backing Lee Iac�ca for President adding to the ferment, but "it is defi­ side bearing signs reading; "La­ any more than he would be backing nitely not restricted to any one seg­ Rouche is here!" and waving to the Bozo the Clown. They will probably ment." The Republicans arethus faced thosegoing inside, offeringfree liter­ both berunning , aqd Jim Wright cer­ with a dilemma. If they nominate it ature. Most who saw it were reduced tainlywon 't tip his handtoo early now.

EIR May 2, 1986 National 67 , Congressional Closeup byKathleen Klenetsky 1-

Congress can help it. Both houses are Hamilton himself freely acknowl­ House, Senate panels certain to reject the arms deal . While edges that his bill could temporarily reject Saudi arms sale President Reagan has vowed to veto a end the flow ofassistance to Savimbi, Two key congressional panels have rejection, it is considered possible, but clfiims his only purpose is to en­ rejected the Reagan administration's though not probable, that the Levine­ sure�at Congressis n't excluded from plan to sell $354 million in weapons Cranston forces can garner enough decisions to ex�nd American military tQ Saudi Arabia-despite urgent votes to override thePresident 's veto. assis�ce to partisan movements. in warnings by administration spokes­ other countries. men that the sale is necessary, both to U.S. securityinterests , and to protect / maintain Washington's credibility with moderate Arab states. On April 23, the Republican-con­ House co�mittee nixes enate to consider trolled Senate Foreign Relations covert aid to Savimbi S tax Committee voted 11-6 in favor of a The House Foreign Affairs Commit­ plan axing deductions resolution sponsored by Sen. Alan tee dealt another blow to pro-Western After: weeks of sitting in limbo, tax Cranston (D-Calif.), blocking the sale. forcesin the Third World, when it vot­ "ref0tm" appears to be back on track, On thesame day, the House Foreign ed 22-18 April 23 to prohibit covert after ,the Senate Finance Committee Relations Committee approved a sim� aid ' to the anti-Soviet Angolan rebel met in closed-door session April 24 to Uar resolution introduced by another forces led by Jonas Savimbi. consider a new plan by panel chairman California Democrat, Rep. Mel Lev­ Legislation're jecting such aid was Bob Packwood (R-Ore.). ine. also voted up by the House Intelli­ PllCkwood's proposal would end An administration spokesmanhad gence Committee, whose chairman, many current deductions, including made a strongcase for the sale prior to Rep. Lee Hamilton (D-Ind.), is the those for state and local taxes, plus a the votes. Richard Murphy, assistant chief sponsor of the measure . slew of business tax breaks. It would secretaryof state for the Middle East, The Reagan administration has also . �ignificantly reduce the' amount told a House Foreign Affairs subcom­ been supplying covert assistance to that ¢an be deducted in home. mort­ mitteeApril 22 that the arms would be Savimbi's UNITA organization since gage jnterest-a move that's sure to used for the protection of Saudi oil early this year. , send , chills through the beleaguered fields, and to deter Iran from extend­ Hamilton's measure is aimed at housing industry . ing its war with Iraq to Saudi Arabia changing procedures so that congres­ About the only major deduction and other key oil-producing states of sional approval for future covert aid that would beretained, is that for med­ the. Persian Gulf. would be required. But opponents of ical C1Xpenses. Countering foes of the sale, who the bill say it is actually designed to As far as tax rates are concerned, claim that Saudi Arabia has been an terminate all American assistance to Pac�ood's plan calls for a two-tiered 'obstacle to Mideast peace by refusing Savimbi. system: the low rate would be 15%; to recognize Israel, Murphy stressed Congressional sources have told the top one, 25%. That contrasts with that, "When it comes to maintaining a EIR that if Hamilton's measure be­ the current top rate of 50%; and the self-defense capability for other Arab comes law, ''there's little chance we'd 35% rate proposed by the administra­ states, we. cannot be guided by a con­ be able to keep military assistance tion'!;tax reform plan. dition of those sales, that they have flowing to Savimbi." Pinance Committee members who , not signed a peace treaty withIsrael. " Rep. Henry Hyde (R-Mich.) attended the meeting said afterward "Are we going to be, as a nation, charged that the bill is "Reagan-bash­ that ,prospects for passage of tax­ a credible security partnerto the mod­ �ng" and "gratuitously encourages So­ chan.e legislation are now much erate states in the Arab world?" he viet-Cuban aggression and elevates brigqter. '·We were dead in the water asked. . isolationism and paralysis as Demo­ on ta reform," said Sen. Lloyd Ben­ . Apparently not-at least not if cratic foreign policy." tsen (D-Tex.), but now ''the process' is

68 National EIR May 2, 1986 alive. . . . I think [Packwood] is real­ ades. According to a study published Hartis now goin� through all sorts ly trying to revive the concept of true by the Fusion Energy Foundation, ir­ of contortions to change all that­ tax refonn. It was a pretty good meet­ radiation would be a tremendousboon without much sucdess. Along with ing." to agricultural producers in that it could longtime aide Willi� Lind, Hart has But Sen. Bill Bradley (D-N.J.), salvage the 25%-30% offoodproduc­ just published a new book, America while calling the session "very pro­ tion that is lost annually in this country Can Win: The Case fo r Military Re­ ductive," cautionedthat "it is not going to spoilage. fo rm, which prom�tes Hart's long­ to beeasy" to write a final bill. Bosco claims that the FDA time petpro ject, miIlitary "reform." "doesn't reallyknow what effect food A joint operatioq of Georgetown 's irradiation has on human health." His Center for Strategic and International measure would direct the Health and Studies, the Heritag� Foundation, and .... HolJIngsto sue Human Services Department and the defense liberals on �e Hill like Hart, over SALT D Nalional Science Foundation to con­ militaryreform is siinply a dimwitted t President Reagan's decision in late duct a lengthy study of effects on hu­ justificationfor cutt ng back u.S. de­ x April tocontinue compliance with the man he8Ith, "including exposure of fense capabilities, e pecially in the unratified SALT II treaty., by dry workers in irradiationplants . " high-technology area. i docking two Poseidon submarines, The National Food Processors As­ In a recent interv ew with The New drewkudos fromthe arms-control ma­ sociation and the Coalition for Food York Times, Hart dekribed the move­ fiaon Capitol Hill, who haq deployed Irradiation said Bosco's bill is unnec­ ment as a "band of intellectual and en mass for over a month to ensure essary. "The process has stood up to political guerrilla fighters" who oper­ preciselysuch an outcome. more than 40 years of study and has ate by "ambushing the defense estab­ But at least one senator is so angry proven to be safe and effective," said lishment with unexpected questions, at the decision that he is now threat­ spokeswoman Ellen Green . unwelcome facts and innovative alter­ ening to take the President to court. natives." According to syndicated columnists Hart says his book is designed to Uad ' Evans & Novak, writing in the April pers e theDemocnttic Party to adopt 25 Washington Post. Sen. Ernest a "positive" posture: on military poli­ ho's kidding whom' Hollings (D-S.C.) plans to sue Rea­ 'W cy. "The Democrati¢ Partyhas lacked gan in federal court · on grounds that Dept: Hart pro-defense? a defense policy, cdrtainly a positive continued compliance with the unra­ Sen. Gary Hart (D-Colo.), touted by one, since Vietnam. t' tifiedtreaty is unconstitutional . some pundits as the front runner for How hollow Hart's new "pro-de­ the Democratic presidential nomina­ fense" stance is, was underscored by tion, is trying on all sorts of cosmetic his attack on the American air strike makeovers lately, to see which ones on Libya. sell best. The latest one-and let's not all Co�tio.. Bm to fight food burst out laughingat once-is the "pro­ The Congressional Closeup ap­ irradiation introduced defense" image. Like many of his fel­ pearingin the April �5 EIR mistakenly Liberal California Democrat Rep. low Democrats, the anti-SOl, anti­ reported thatRep. Bill Cobey(R-N .C.) Doug Bosco will soon introducea bill MX, pro-defense-cuts Harthas finally was the author of qne letter chiding to overturn a recent Food and Drug figUred out that one of the chief rea­ French President Fran�ois Mitterrand Administration decision to approve sons for Walter Mondale 's resounding for refusing to let the United States low-level irradiation to kill insects on defeat in 1984 was the widespread utilize French airpsalce for the Libyan fresh fruitand vegetables. perception that he and most Demo­ raid, and another to Prime Minister As EIR has documented, irradia­ crats are a bunch of pro-Moscowtrai­ Margarat Thatcher tf:¥mking her for her tion is an extremely safe technology tors bent on dismantling the country's . assistance. The ac�al author is Rep. which �as been in existence for dec- defenses: Jim Kolbe (R-Ariz.)

EIR May 2, 1986 National 69 I \ I '.\'1 NationalNews

due to voter apathy," she said. "Our aim is Cac�eris was responding to a charge to wake up the voters, and let them make the ' made by presidential candidate Lyndon decision." . LaRouche, in an interview with the "CBS NYU to host Soviet The ' newsletter's twisted summary of Morning News" the previous day. Inter­ and u.s. news media "what the LaRouche candidates stand for" viewer Forrest Sawyer asked LaRouche was compiled in collaboration with Alan about a lawsuit in which Judge Cacheris had Top Soviet and East bloc journalists will Katchen, the ADL director for Ohio, Ken­ awarded NBC-TV $202,000, in a judgment meet with handpicked counterparts fromthe tucky, and Indiana. It includes such "one­ against him. The judge, said Sawyer, re­ U.S. and European news media, at New liners" as: "They believe in the imminent jected LaRouche's testimony that he had York University on May 2. The purpose of re- collapse of the world economy, which will o ceived income for 12 years, and declared the conference is to discuss East-West me­ no be triggered by a drug plot involving inter­ him to be "lacking in credibility I!Jld living dia coverage of foreign and strategic policy, national bankers, the Queen of England, and like a millionaire. " and to forge "a common ground" in cover­ KGB agents including Henry Kissin­ LaRouche replied, "After all the judge age of issues like the Strategic Defense Ini� ger ...." in that case is Plato Cacheris' s brother. And tiative. Columbus ADL Director Katchen is if you know what that means, you can figure The meeting will beco-sponsored by the particularly active in attacking the influence it out frC>m there . Plato Cacheris is associ­ Netherlands-based Alerdink Foundation and of LaRouche candidates among farm groups ated with [certaincasino owners), that'sRe­ New York University's Center for War, in Ohio. sortS International . . . . This judge is a Peace, and the News Media. The NYU Cen­ Elsewhere around the' country: crook. 'thej udge did not base that opinion, ter is directed by Prof. D. Rubin, and NYU The ADL has pumped $2 million into that stat�ment on any fact. He made a state­ professor McGeorge Bundy is on its board • ' the state of Pennsylvania to disrupt the ment in: absolute defiance of every fact in of directors. LaRouche movement. A team of lawyers the case; The judge was a liar. " Participants will include Larry Gross­ linked to the ADL and the Democratic Party LaRhuche dismissed Sawyer's question man of NBC; Vladimir Lomeiko of the So­ is traveling around the state , pressuring can­ about investigations by the Justice Depart­ ,viet foreign ministry; David Shipler of the didates backed by the National Democratic ment a� other authorities as "all politics." New York Times; Fred Kaplan of the Boston Policy Committee to withdraw from the "The whole thing is a fraud," he charged. Globe; Izvestia; Aleksandr Bovin of Ber­ campaign. IlIlrll Guetta of Le Montle; Hodding Carter, • In New Hampshire, the ADL i� work­ former presss spokesmanfor PresidentJim­ ing with the Manchester Union Leader my Carter;and Sergei Balo from Hungary. newspaper, to coordinate a libel campaign had ! The Alerdink Foundation has already against Major Robert Patton, who is seeking three Farlt�khan aide similar conferences, one in Moscow. ' the Senate seat of Republican Warren Rud­ O bra dishes terrorism man, c -author of the Grarnm-Rudman­ d Hollings austerity bill . Khalid Abdul Muhammed, editor of the newspaper Final Call and chief spokesman 'Non-partisan' groups for BlaCk Muslim leader Louis Farrakhan, denounced President Reagan on April 21 as jeopardize tax status "the No. I terrorist on the face of the planet The League of Women Voters has gone out LaRouche hits crime Earth,"and saidthat white Americans would on a limb with its attacks on electoral can­ be slaughtered in the streets if the adminis­ didates associated with Lyndon LaRouche, link of 'crooked' judge tration prosecutes Farrakhan for defying its in coordination with other such hitherto tax­ Plato Cacheris, the brother of Alexandria, ban on travel to Libya. Farrakhan attended exempt organizations as the Anti-Defama­ Virginia federal judge James C. Cacheris, a conference of terrorist groups in Tripoli in tion League of B'nai B'rith (ADL). denied that he is tied to Resorts Internation­ March.i According to sources, he negotiated The Columbus, Ohio director of the al, Inc . of New Jersey, the flagship of the a contI'!lct there with the Abu Nidal organi­ LWV, Irene Probasco, is circulating a "hit state's casino gambling industry, in an in­ zation JO increase terrorism in the United list" of LaRouche Democrats in the group's terview in the Washington Post on April 23. States. newsletter, which goes out to 4,500 mem­ He conceded, however, that his law partner, "Ifyou attempt to lock up our leader and bers . Cognizant of her legal predicament, William Hundley, does represent Resorts fine him $50,000, the people will burn this she attempted to assure an interviewer of the International "in a limited fashion""but "I country to the ground," Muhammed said. "non-partisan" character of the LWV ' s slan­ have absolutely nothing to do with them." "Peopl� will walk up to the car where your ders: "The league is non-partisan, but our He further conceded that Resorts Interna­ police officers are taking a break and blow biggest concern is that they might do well, tional does own casinos. their damn brains out." Farrakhan's son,

70 National EIR May 2, 1986 t" Briefly

Wallace, said that if his father is prosecuted and Convalescence Center, where she is now or hanned, "There'll be hell put loose in the confined, does not wish to carry out the act. • CARDINAL RATZINGER and

streets. " Lawyers for the nursing home, which had Lyndon LaRouche are "similar, in a refused to comply with the family's request · sense," said SiSter Mary Caroline of to murder Mrs. Jobes, say they will appeal the Catholic Le4gue for Religious and the case. Civil Rights, id a discussion fo llow­ Reached for comment, the Society for ing the Illinois primary. The League Kissinger 'offended' the Right to Die and the Concern For Dying is a centerof "liberation theology''' in group boasted about this decision, and two the United Sta¢s. "We feel that the by President Reagan other recent decisions in which U.S. courts American Catholics are being sold The Reagan administration "in many ways have uphelda patient's "constitutional right" down the river .... LaRouche is has been personally more offensive to me to starve. California's Elizabeth Bouvia, a tryingto undo Vatican II; he's attack­ than any others," said Henry Kissinger to a cerebral palsy victim, was grantedthe "right" ing the Benedictines because he sees private symposiumin Washington at the end to starve in a county-run hospital, and Flor­ them as a threIat , since they're �- ; of April. "When you meet the President," ida courts handed down a similar decision nowned theologians." Kissinger said, "you ask yourself, 'How did to clarify state law, even though the patient it ever occur to anybody that he should be concerned had died weeks before . • 'NEW JERSEY is basically a governor, much less President?' " bedroom co�unity for terrorists," Although it is "perfectly possible" that said FBI SpecialAgent Don K. Clark ' history will judge Reagan as "a most signif­ to a seininar on: terrorism of 300law icant President," Kissinger opined, it is "also enforcement officers and others at possible that he will be seen as somebody JCS chairman warns of Essex County C;:ollege in Newark on who spent a lot of capital maintaining pop­ April 17. New Jersey functions as a ularity for eight years ." Kissinger also de­ Soviet power buildup safehouse fo r artns and explosives for

clared that it is impossible to run for Presi­ The Soviets are committed to the use of "raw use in New Ydrk, Washington, and dent "unless you are a rich, unemployed power," and the Soviet military buildup, "on other cities, he said. egomaniac ." sheer momentum alone, will go to the end of the century," Joint Chiefs of Staff chair­ • mE SUPREME COURT has man Adm. William Crowe told the Ameri­ agreed to rule on whether a person can Bar Association of!. April 22. with a contagious disease should be Calling the Soviet buildup "unprece­ protected by federal laws barringdis­ Judge gives OK to dented in world history," Crowesaid that in criminationagainst the handicapped. trying to cut the deficit, Congress and the The case unde� review is an appeal starve patient at home U . S. public have lost sight of the connection by the Nass® County, Florida, Judge Arnold Stein of the Morris County between military strength and national se­ School Board, fighting an appeals

Superior Courtin New Jersey handed down curity. Continued defense cuts, he said, "run court ruling tha� a teacher with tuber­ a decision on April 23 which will allow fam­ the risk of reliving many unhappy days of culosis can bC: considered himdi­ ilies to· starve to death sick or disabled pa­ the past, when forced austerities dangerous­ cappedunder the 1973 Rehabilitation tients. This is the first known ruling in the ly reduced our military strength and in tum Act. The ruliag would also have United States, in which a judge has ap­ our national confidence and our ability to bearing on AIQS cases, which, like O proved removal <>f nutrition and hydration pursue our larger foreign policy goals." TB, are infecti US. tubes from a person who is not terminally Admiral Crowe had testified the pre­ ill. The decision is being hailed by the mur­ vious day before the House Appropriations • U.S. ATTORNEY Thomas W. derous "right to die" lobby as a victory for Subcommittee on Defense, that budget cuts Greelishdeclar¢d on April 20 that the

their cause. would jeopardize the U.S. defense modern­ Gramm-Rudm� budget cuts are Judge Stein ruled that 31-year-old Nan­ ization program. "It should be clearly having a disas�us impact on the War

cy Ellen Jobes is in a "persistent vegc:tative understood," he said, "that we are still mid­ against Drugs in New Jersey . "We stream in the modernizationeffort . To falter state" and that if she werecompetent to judge are fighting with limited resources," her condition, she would not wish to be kept now would stretch out the entire process and he said, "and we're going to start los­

alive by "artificial means ." Her husband, leave many of our units behind the power ing. The consequences are frighten­ therefore , has been granted the authority to curve . . . and frankly, prove more expen­ ing." The funding for prosecuting removefood and water from her. and to take sive in the end, to see the Soviets widen the major drug dea� is beingcut . her home to do it if the Lincoln Park Nursing gap."

ElK May 2, 1986 National 71 Editorial

Now, the oilfields

EIR's editors concur with the observation of certain tions have enabled the better sort of European leader to figures in both, Europe and the United States that the override this alien influence within their governments ( unilateral military action of April 14 by the United to the extent of some first, cautious actions against States against Muammar Qaddafi ' s Libya would not Libya: expUlsion of diplomats, etc . Just so, the Presi­ have been necessary , had America's European (and dent and secretary of defen�e had to override the trea­ Canadian) allies agreed to President Reagan ',s earlier sonous influence of George �hultz and friends, to take effort· to slap an air-tight embargo and sanctions on the a first step in restoring U. S � credibility after a decade Mad Dog of Tripoli. Moreover; unless U.S. allies now of State Department diplomatic sabotage of that credi­ agree to precisely such sanctions, it is almost a foregone bility in all parts of the world, to the effect of estranging conclusion that new U.S. military action will be re­ European allies (and others)Jrom the United States, as ' quired. not being a credible ally . If so, we desire that, this time , the bombs go to the To date , international news media have been whol­ heartof the matter: ArmandHammer 's Libyanoil fields. ly inaccurate in their portrayal of the significanceof the Our point is the opposite of those jackals and hyenas U.S. action . As we go to Press, terrorist incidents "in in the U. S. Congress who have responded to Europe's retaliation"for the U. S .. attaf:k are being reported daily , relative inaction by treasonously demanding U.S. troop and blame is being placed on President Reagan's ac­ withdrawals from continental Europe . Those congres­ tions. In truth , a massive Wlave of terrorism in Europe sionaljackals' behavior should be measured against the coordinated by East German and Syrian intelligence in fact that the purpose of Qaddafi's Soviet-sponsored ter­ cooperation with Qaddafi Was mandated at the 27th rorism is precisely to force U.S. troop withdrawals Congress of the Soviet Communist Party in February . from continental Europe. Those who now demand the · The terrorist actions now afoot were already in motion ceding of Europe to Soviet domination as a penalty for when the U.S. attack occutred. By knocking out por­ failure to cooperate against Qaddafi , are in bed with tions of the infrastructure of terrorism represented by Moscow and Qaddafi himself. Libya, the U. S. attack has �ad the effect of lessening We know what influences have been operating on the terrorismnow being experienced in Europe . our European allies in this and similar affairs . It is the By the same token, QruJdafi's dependence on East same influence represented by the State Department in German-Syrian coordinationand Soviet approval meaos the U.S. government. European inaction was largely that uprooting his dictatorsh;.p will not end international the product of the influenceof factional figures, typified terrorism. But Qaddafi ' s strategic importance is his role by German Foreign Minister Hans-Dietrich Genscher in the destabilization of the f�urMaghreb nations, Chad, or Italy's Giulio Andreotti, who are Soviet agents of Mo(occo, and Sicily. By d�troyinghim , the West and influence, or who have accommodated themselves to a its friends in Africa will be: acting both to weaken ter­ Soviet-sponsored perspective of "decoupling" Europe rorism, and to block an iniminent Soviet takeover of from the United States. In other words, they are the northernAfrica and the Mediterranean. counterparts of the U.S. State Department mafia under The greatest danger now is the failure of the United George Shultz, which has hithertoacted to protect Qad­ States and its allies to follow through. As presidential daft,to further "decoupling,;' and whose power in the candidate Lyndon LaRouche put it in an April 19 re­ United States is the key to the power of the Genschers lease: "If I had been President, I would have selected and Andreottis of Europe. the fieldsof Soviet agent Abnand Hammer's Occiden- ' PresidentReagan 's and Secretary Weinberger's ac- tal Petroleum."

72 .National EIR May 2, 1986 "The two arrested Israeli spies, Jonathan Pollard, and his wife, are merely third-level figures in a ring working under the sponsorship of Israeli bully-boy Ariel_ Sharon. The ring reaches high into the ranks of the Executive Branch of the U.S. government. This is not merely an Israeli spy-ring; it is a spY-ring operating

" under the Israeli flag, but controlled by a network of Soviet agents ..

MoscOW's Secret Weapon: 4

In this remarkable, thoroughly researched document, you will finally learn the truth about: • Billionaire Soviet agent Armand Hammer, and the complex of wealthy financial figures known as "the Trust" who are the power behind would-be dictator Sharon. • The role of Henry A. Kissinger in the notorious "Iandscam" real-estate swindle in the Israeli-occupied West Bank territories. • The history of the Luzzatto family of Venice, the Recanati, and the Syrian Jewish families of Aleppo, the Jewish fascists of the Irgun, and the noose of organized crime tightening around Israel today. 148pp. • The plot to set off a new Middle East general war, by blowing up the second Order your copy today ! holiest site of Islam, Jerusalem's Dome of the Rock Mosque. The facts, exposing the plot Price: $250 and the plotters, some never before published anywhere, are the results of an investigation covering four continents, an investigation which risked the death of the investigators. From • The massive coverup of the. Pollard case itself-the' facts which Secretary of State George Shultz, and especially Undersecretary of State Elliot Abrams, are fanatically EIRNews Service determined to bury. P.O. Box 17390 • The anatomy of a JDL terrorist, Mordechai Levi, and Levi's role as a joint-asset of Washington, D.C. the FBI and the Anti-Defamation League, as well as an asset of Sharon's cohort "Dirty 20041 -0390 Rafi" Eytan.