EXECUTIVE INTELLIGENCE

REVIEW July 17-23, 1979 Nuclear Plants for Export

Soviets Mass Produce POYler Plants

New Solidarity International Press Service EXECUTIVE INTELLIGENCE IN THIS ISSUE REVIEW

THIS WEEK Behind the chaos America must go nuclear now at Camp David ...... 5 Everyone agrees that President Cart­ er's leadership has failed, but what does it mean, and what is likely to ECONOMICS happen next? This week's U.S. RE­ Two financial zones ...... 7 PORT on the President's marathon The' Anglo-American sphere has run out of options ad hoc summit on energy looks at the De Gaulle's fight against 'paper gold' . implications of the summit fo r the ...... 17 Carter administration's policy con­ How the dollar-gold link was severed, Part 11/ trollers, and tells why they-and not Foreign Exchange ...10 Domestic Credit .....14 just the President-are having diffi­ Commodities ...... 1 0 Transportation .....14 culty in coming up with a policy. . Corporate Strategy World Trade ...... 15 And we report on what the American ..12 Britain . Banking . people really think abo ut the energy ...... 12 ...... 16 crisis, and possible storm clouds for the candidacies of Alexander Haig and Ted Kennedy. Also in our re­ ENERGY port: an update on the nationwide Nuclear plants for export . .. . antidrug organizing. Page ...... 18 26 Soviets mass produce power plants Atommash: assembly line nuclear plants ...... 20 CMEA resolves to expand nuclear plants fold by Jerusalem launches 1 5 1990 ...... 21 terrorists against U.S. Soviet Premier Kosygin: 'atomic power is foremost' ...24 Heading of f this week's COUN­ TERINTELLIGENCE section is a special report by Lyndon H. La­ U.S.REPORT Rouche, Jr. on why the recent Jeru­ salem conference on terrorism sig­ Behind the Camp David chaos ...... 26 nals a decision to begin terrorist at­ . Nation re;ects Carter's energy austerity tacks in the United States, and why. Haig and Kennedy: too far too soon ...... , 3 0 In particular, LaRouche discusses . .. . . The Eizenstat memorandum ...... 32 the recent "attack" on General Haig, National antidrug coalition support grows .. .. and analyzes terrorism's role in pro­ ...... 3 4 moting the Haig candidacy. Also in our report: Counterintelligence edi­ tor Jeffrey Steinberg profiles a ter­ EUROPE rorist group in formation in the U.S. Europe organizes for development . .. . . Page ...... 38 42 Producer-consumer dialogue, Third World fund Jeey to global entente

© 1979 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. r

Vol. VI No.28 July 17-July 23,1979

COUNTERINTELLIGENCE Mexico snarls Jerusalem launches terrori-sts against ...... U.S. Nicaragua plans USA 42 LaRouche: fake attack on Haig part of plan to· prepare in one of the neatest diplomatic for crisis government moves of the past year, the Mexican fo reign ministry has erected a major Anatomy of a terrorist cell in formation ....•... U.S. .47 roadblock to the United States' plans to maintain "somocismo" without dictator Anastasio Somoza in Nica­ ASIA ragua. The coup came in the form of a Mexican fo reign ministry state­ Carter plays 'China card( in S. Korea ...... 52 ment interpreting the recent Organi­ Pressures Seoul to resolve dispute with North to secure zation of American States' resolu­ anti-Soviet alliance tion on Nicaragua which was intro­ duced by Mexico-and signed by Cyrus Vance. The statement puts hu­ man rights policy on the line. In our LA TIN AMERICA LATIN AMERICA report. Page 55 Mexico snarls U.S. Nicaragua plans ...... 55 Communique rejects U.S. policy of 'Somocismo' Luciano Lama talks without Somoza about terrorism

Exclusive to Executive Intelligence Reriew: an interview with Luciano LABOR Lama, the head of Italy's largest Luciano ...... Lama talks about terrorism 57 trade union confederation, on terror­ An exclusive interview with the head of Italy's largest ism and international economic pol­ trade union body icy. What makes Lama's views par­ ticularly noteworthy is that he has been a Central Committee member of the Italian Communist Party, the COLUMNS largest communist party in Western Europe. In our LABOR section, Congressional Calendar ...... ; ...... 36 along with an analysis of the Labor Periscope ...... 61 strerlgths and weaknesses of Lama's Energy Insider ...... 62 views by EUROPE editor, Vivian Facts Behind Terrorism ...... 63 Zoakos. Page 38 World Trade Review ...... " ...... 64 Ato mmash: assembly line nuclear plants

There are 16,000 people living in a new town on the The complex, called Atommash for "atomic ma­ banks of the Canal, which connects the chinery," is the world's fi rst assembly plant for nuclear two great rivers of European Russia, the Don and the power reactors. , where they flow near each other in the south of From the production site, the standardized compo­ the country. Most are workers and fa milies of workers nents of atomic power plants will be shipped by water employed in a single complex of factories that has risen all over the U.S.S.R. to Eastern Europe, and to cus­ together with the town during this decade. tomers in other countries. On barges, the energy-pro­ ducing machinery may fl oat down the Don to ports and the Mediterranean, and via the Volga Nuclear Power in the Soviet Union either upstream into an inland waterways network exiting on the Baltic Sea or downstream to the Caspian.

An American approach Atommash is the most modern example of a Soviet . integrated industrial complex, utilizing and updating the mass production techniques invented at the begin­ ning of this century by Henry Ford and perfected by other American manufacturers. When the U.S.S.R. Soviet Union undertook its first Five Year Plan in 1929, when the world economy was in the grips of the Great Depres- . sion, Soviet industry turned to the United States to 600 learn. A team of Ford engineers, out of work in Detroit, liD traveled to Russia where they designed and helped to build the Soviet Union's fi rst mass production plant: the Stali ngrad tractor factory. Today it is the Soviets who have carried the Amer­ ican principle of looking for always more highly auto­ mated, labor-saving industrial technology into the nu­ clear age. There is no American Atommash. Westing­ house dev eloped a sophisticated technology fo r the mass production of floating nuclear reactors, but their o Florida plant is idle. Its first two orders, from J>SE&G in New Jersey, were canceled thanks to the slow growth and environmentalist-influenced policies of Governor Brendan Byrne's administration, and there haven't been any more. SYRIA

.. Operating nuclear reactors UI Breeder reactors Standardization of design .0. Reactors under construction or study figures indicate megawatts Atommash was taken from the drawing board at the start of the 1970s, when Soviet planners decided on an The Atommash facility is well located for shipping assembly­ effort to increase several-fold the role of nuclear power line produced nuclear power plants to customeri in the East in the Soviet economy and Eastern Europe. Work and West. The Soviets are committed to making nuclear power the primary power source and, as the above map roughly . began on the first reactor in N ovember 1977 and it will indicates, already have in operation or nearing completion, roll off the line at the conclusion of the 10th Five Year

nuclear power planti generating. several thousand megawatts Plan in 1980. Each reactor will take approximately of electricity. three years to build. The third year will be devoted to quality control and testing.

20 Energy EXECUTIVE INTElllGENC.E REVIEW July 17-July 23, 1979 The key to the process is standardization. In the U.S., nuclear reactors are produced by fo ur dIfferent suppliers and designed virtually from scratch as "one­ of-a-kind" ventures. At Atommash, the design is stand­ ardized in several sizes. The complex will turn out 440 megawatt (MW) and 1000 MW light water reactors, eM EA resolves to and eventually a larger, 1500 MW model. Atommash sits in the middle of the Donets coal basin, and is fueled by a 260 MW coal-burning power expan d . In addition to the reactor, the Atommash complex 15 fold by 1990 will produce the steam turbine systems to generate electricity and other types of equipment. It will also Energy policy was at the top of the agenda fo r the utilize scrap metal from nuclear plant production for annual meeting of the heads of member nations of the the production of consumer goods. Council on Mutual Economic Assistance (CMEA), For the early recipients of Atommash reactors, most which includes six European nations, , and Mon­ of whom will be Eastern European, additional genera­ golia, held in Moscow June 26-29. Of five 10-year plans tors and auxiliary equipment will come from other for major branches of industry, the nuclear power member-nations of the Council fo r Mutual Economic program was readily called the most important by AsSistance (CMEA) which have a nuclear industry. Soviet Premier Aleksei Kosygin in his reports to the Under the CMEA division of labor, Czechoslovakia is summit (see below). The other programs depend on it producing piping systems, steam generators, and reac­ to succeed. tor mountings; is turning out protective de­ The CMEA leaders approved a plan to construct. vices; Hungary contributes plant maintenance equip­ 37,000 megawatts of new atomic capacity fo r electric ment; and Poland will build related diesel generators. power generation between now and 1990 in the Coun­ -Marsha Freeman cil's non-Soviet European members and Cuba alone.

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USSR energy deliveries to European CMEA nations and Cuba

Soviet production, Average annual Soviet ship- Perc:ent of Soviet produc:-, 1978* ments to CMEA, 1976-80* tion shipped to CMEA

Oil 572** 73 12.7 (million tons)

Natural gas 372 18 4.8 (billion cubic meters)

Electricity 1202 13 1.1 (billion kilowatt-hours)

Total 1800 163 9.0 (million ton-equivalents)

' * The average annual shipment is derived fro';'curren' CMEA projections of the total USSR deliveries in the current five-year period (1976- 1 980); Soviet produdian for the middle year. 1978. is as reported by the USSR's Central Bureau of Statistics. except for the "total" figure. which is prajeded from previous years' reported ton­ equivalents total and the known growth rates in the main bronches of the energy industry.

* * Equivalent to over 11 million barrels a day.

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July 17-July 23, 1979 EXECUTIVE INTELLIGENCE REVIEW Energy 21