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Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Circulation Manager: Joseph Jennings A look at the world map after the Venice summit fiasco, shows the INTELLIGENCE DIRECTORS: alarming spread of Soviet "irregular warfare" into all parts of the Africa: Douglas DeGroot. Mary Lalevee Agriculture: Marcia Merry globe. This has occurred, as we have warned since the beginning of Asia: Linda de Hoyos May, in Berlin with the well-orchestrated riots against President Counterintelligence: Jeffrey Steinberg. Paul Goldstein Reagan's visit there on June 12 (cf. page 52). It is coming to a head Economics: David Goldman in Central America, where the Soviets' narco-terrorist network is European Economics: William Engdahl. Laurent Murawiec taking to the streets to bring down the government and military of Europe: Vivian Freyre Zoakos Ihero-America: Robyn Quijano. Dennis Small Panama (page 40). 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Departments Science & Technology Economics

9 Dateline Mexico 18 What high-temperature 4 Ayatollah Greenspan maps AIDS bomb explodes in Mexico. superconductors promise holy war on U.S. banking Not only a technological The Reagan administration's 14 Africa Report breakthrough of the first order, but proposal to consolidate America's Venice summit: no help for a revolution in our entire financial system into 10 "mega­ Africa. understanding of electricity. banks," prominently associated with Greenspan's nomination to the chairmanship of the Federal 52 Report from Bonn 21 BCS standard theory of superconductivity collapses Reserve Board, takes Ayn Rand's MarineS should visit Richard Burt. Darwinian egotism past the frontiers of fantasy. 24 The layered geometry of 53 Andean Report the new superconductors Moscow's terrorists seek coup in 6 AIDS scientists are Peru. polarized on issue of mass testing 54 Middle East Report A report on the Third International Foggy Bottom woos Qaddafi, AIDSUpdate Conference on AIDS, held in again. Washington, D.C. 6 AIDS scientists are 55 From New Delhi polarized on issue of mass 10 The Liberty and Butchery in the land of ahimsa. testing Democracy Institute: liberation theology's 'other 64 Year of the Constitution 9 AIDS bomb explodes in path' u.S. bankruptcy action disrupts Mexico A new businessmen's lobby in government's "LaRouche" Ibero-America-or a cover for the prosecutions. 68 Simpson: AIDS costs to black-market economy? revise our priorities 72 Editorial 12 Currency Rates Soviet irregular warfare in the 70 British AIDS expert Andes. addresses Boston council 12 Privateers threaten Italy's state sector

15 Agriculture 'This little piggy went to market ...'

16 Business Briefs Volume 14 Number 25, June 19, 1987

Feature International National

38 Venice summit is signal to 58 Congress bungles probe of run from the dollar intelligence board The United States asked its trading The testimony of Bretton Sciaroni, partners to gear up their printing general counsel to the President's presses to pay for America's $150 Intelligence Oversight Board, may billion annual foreign borrowing go down in the Contragate record requirement, and its partners books as the single most declined. The impasse virtually effective-and blatant-cover-up

Benjamin Franklin (seated, foreground center) at the guarantees the end of the dollar's of the entire televised first Continental Congress of the United States, in a role as principal world reserve congressional probe . detail of a painting by an eyewitness. currency. 61 More proof the OSI must 40 Gnostic drug cultists make be shut down 28 The historic 1988 election: violent try for power in A letter from former OSI director 'a republic if you can Panama Allan Ryan to Soviet Procurator keep it' General Alexandr Rekunkov. Benjamin Franklin's warning at 42 'Central Enterprise': the Philadelphia Convention which defending NATO's most 63 Eye on Washington approved the U.S. Constitution, is vulnerable flank What happened to the War on particularly appropriate today. An on-the-scene report by Michael Drugs? Liebig and Dean Andromidas on 30 The top issues of the 1988 NATO's largest annual air 68 Congressional Closeup campaign exercise, conducted amid the most densely populated regions of 70 National News 32 The candidate with a Western Europe. program: LaRouche 47 Korean violence is Soviet­ 34 The 'seven dwarfs' on the deployed key issues Kathleen Klenetsky surveys the 48 Thatcher wins national field of contenders for presidency. mandate on defense Correction: The Memorial Day rifle ceremony shown in last 50 The Pope's mission to save week's cover picture (Vol. 14, Poland No. 24) was conducted by members of the American Legion, 56 International Intelligence not, as our caption erroneously stated, the Veterans of Foreign Wars. �TIillEconomics

Ayatollah Greenspan maps holy war on U.S. banking

by David Goldman and William Engdahl

There are no atheists in the foxholes; nor are there "pragma­ ability of U . S. banks to compete internationally. He denied tists" in moments of great crisis. To discover how leaders that this amounted to a plan to create 5-10 "super banks"; but will act under great stress, it necessary to know their under­ on June 7, just as Baker spoke, the New York Times reported lying beliefs. Ayatollah Alan Greenspan, the admirer of Ayn that Treasury Undersecretary George Gould has concocted a Rand, has already proven the point. The Reagan administra­ package of revolutionary changes, including repeal of the tion's proposal to consolidate America's financial system Depression-eraGlass-St eagallAct, to allow concentration of into 10 "mega-banks," prominently associated with Green­ U.S. banking into "5-10 mega-banks," over the next several span's nomination to the chairmanship of the Federal Reserve years. The London Times added that Greenspan will "in­ Board, takes Ayn Rand's Darwinian egotism past the fron­ crease the pressure forderegulation." tiers of fantasy. At the banking system's moment of crisis, The Gould-Greenspan policy is backed also by Federal Greenspan proposes to lead a charge into total deregulation, Deposit Insurance Corporation chairman William Seidman, making sure that the banking collapse already in progress Greenspan's former colleague at President Gerald Ford's will run out of all possible control. White House, and Comptrollerof the Currency Robert Clarke . Rand espoused a more explicitly pagan version of Adam A signed article by Seidman in the June 10 Washington Post Smith's Calvinism. Where Smith argues that man cannot rise calls for changing "the post-depression laws under which above his bestial instincts, and that the actions of individual banks and other financial institutions operate," laws "that hedonists is directed toward society'S ends by an "invisible create an inflexible regulatory system and impose artificial hand," Ayn Rand wants the egoist to pride in succumbing to geographic and product boundaries on the markets in which greed, envy, and lust-as she herself did, to the scandal of [banks] can operate." her biographers. The White House may well have chosen Presidentialcontender Lyndon H. LaRouche, Jr., a foun­ Alan Greenspan as a malleable political hack, as Evans and der of this publication, warns that consolidation into mega­ Novak, among numerous commentators, suggest. But Rand's banks through deregulation will destabilize the entire bank­ "best disciple," in her own words, proposes to guide the ing system, and increase the potentialfor a collapse geomet­ American financial system into a Darwinian orgy. rically. In several European capitals, bankers are warning President Reagan and Treasury Secretary James Baker, thatif the United States repealsthe Glass-Steagall Act, which during and after the Venice summit, maintained that the separated stock-brokerage and commercial-banking func­ United States has experienced an extraordinary period of 53 tions in 1934, complete chaos will prevail. months of economic growth, and that complete deregulation The less giddy heads in the central banking fraternity of U .S. banks will facilitate the rational consolidation of the began steps to re-regulate the banking system late in 1986, banking system. Said Baker, "What we need to do now is to when the Federal Reserveand the Bank of England proposed deregulate our financial services," citing the diminishing that banks put up capital �gainst "off-balance-sheet liabili-

4 Economics EIR June 19, 1987 ties." That was too little, too late to deal with the magnitude America's weakest institutions, the tlujifts. Greenspan's im­ of problem, which the major banks had created for them­ minent swearing-in has provoked events that resemble a re­ selves. Nonetheless, the free-marketdelirium of the Reagan makeof the ocean-crossing scenes from"Night at the Opera," White House has made the central bankers' caution a moot but set aboard the Titanic. The Ayatollah is on record (in a point. Twice this year, Volcker was out-voted in the Board 1985 speech) demanding the eliminationof all federal deposit of Governors, by Reagan appointees, in regard to decisions insurance for commercial banks and savings and loans. It giving banks limited securities powers. Where Volcker liked happens that the Federal Savings and Loan Insurance Cor­ to say that the job of a central banker is to take away the poration (FSLIC) went bankrupt at the beginning of 1987, punch bowl just when the party is becoming good, Greenspan and the various proposals before Congress to add money to will pour in undiluted alcohol. it do not come close to the estimated $50 billion bailout requirement already on the FSLIC's table. Understandably, The disease called 'securitization' industry executives are shaken. Kenneth Guenther of the Since 1982, when Mexico's de facto bankruptcy threat­ Independent Bankers Association said, "Regardless of how ened bankruptcy for its creditor-banks, the commercial banks brilliant the guy is on monetary policy, those of us in the have kept their doors open by: regulateddepository institutions should be very concerned. " 1) Lending themselves the money to pay their debtors' Larger and still-profitablesavings and loans, which dom­ interest, while eschewing new loans; inate the U.S. League of Savings Institutions, have drawn 2) Earning fee income on guarantees of various sorts the conclusion that they will be left to their own devices. ("off-balance-sheet liabilities"), which now range from 6 to Senior analysts at the Federal Home Loan Bank Board, which 12 times the total shareholders' capital of America's top six regulatesthe thrifts, believe that larger S&Ls are "inciting to banks , and one-and-a-half times their total deposits; and riot" against their weaker brethren, helping to provoke a 3) Playing the securities markets offshore , where their deposit-run. London or Hong Kong offices face no legal restrictions on Unless the Treasury (or Federal Reserve) steps in to bail securities business. out the dying S&Ls with money borrowed, taxed, or printed, These scams, collectively known as "securitization," the stronger institutions will be left to foot a gigantic bill, brought the financialsystem to the present disaster. The Fed­ through higher deposit-insurance premiums. They prefer to eral Reserve and Bank of England proposed to place modest have an old-fashioned panic right away, and force the gov­ restrictionson such scams, but despaired of doing so without ernmentto come in. destroying the banks' remaining sources of income. Green­ Meanwhile, 15 S&Ls have already applied to leave the span and the Reagan Treasury argue that if the cancer patient FSLIC, and join the commercial banks' Federal Deposit In­ appears ill after an overdose of laetrile, the solution is to surance Corporation (FDIC) instead. One hundred more re­ drastically increase the dosage, i.e., to sponsor a vastly in­ cently requested information on what they would have to do creased flotationof bad debt. to effect the change. The Federal Home Loan Bank Board, which oversees the FSLIC, wants to force any thrift going Dance of the lemmings over to the FDIC to pay a heavy exit fee, several times the The chain-reaction consequences of Citibank's May ad­ annual premium they currently pay to FSLIC, warning that dition of $3 billion to its loan-loss reserves, may put the if all the healthy thrifts leave, FSLIC will have no revenues "mega-bank" decision into effect by force. Bank of America to meet its $50 billion requirement. announced June 9 a $1.1 billion addition to its loan-loss The problem is that the run against Texas S&Ls, which reserves, after reviewing its loans to 45 developing nations. were flattened by the oilbelt real-estate market collapse, is This will bring its loan-loss reserves to 25% of the $10 billion nearlyout of control. The Dallas Federal Home Loan Bank owed by developing nations. The bank will show a $1 billion needs $4 billion up front. "The situation has all the makings loss for the second quarter, and a loss for the entire year in of a liquidity crisis," warnedthe Wall Street Journal on June consequence. The other big hold-out, Manufacturers Hano­ 10, "as S&Ls desperate forcash bid up interest rates they pay ver, is considering adding $1.75 billion to its loan-loss re­ for large, 'hot money' deposits." serve. FHLBB analysts warnthat a liquidity crisis would con­ In Britain, a Lloyds Bank spokesman said that Lloyds frontthe Federal Home Loan Bankswith a cash demand they may follow Citibank within the month, and take provisions cannot meet, forcingone of two resolutions: a directbailout against significant lbero-American loan losses. Bank stock by Congress, which would add tens of billions of dollars to fell sharply June 9, on reports that Lloyds chairman Jeremy the budget deficit; or direct intervention by the Federal Re­ Morse is considering a £650 million bad-debt provision set serve, which might make emergency loans to collapsing thrifts aside on some £3 billion of Thero-American debt. against no particularcoll ateral. The U.S. dollar would crash The scramble to add loan-loss reserves out of vanishing uncontrollably on foreign markets at the prospect of either primarycapital , is nothing comparedto developments among development.

ElK June 19, 1987 Economics 5 Conference Report

AIDS scientists are polarized on issue of mass testing

by John Grauerholz, M.D.

The Third International Conference on AIDS, held at the creased from 60 tests per day in November 1986 to a current Washington Hilton Hotel June 1-5, 1987, was dominated rate of 650 tests per day . less by any breakthrough revealed at the conference, than by According to ICL chairman William O'Neal, ''This whole an event which immediately preceded it. This was the an­ issue of AIDS testing will become an explosive issue in the nouncement by President Reagan, at a testimonial dinner for upcoming months, as political candidates, as well as the Surgeon General C. Everett Koop, that he had ordered that current administration, position themselves on the subject. AIDS be placed on the list of communicable and contagious Candidates are already beginning to craft their position on diseases, for which immigrants could be denied admission to the issue of testing. As the number of cases grows, and the ' the United States, as well as mandating routine testing at fear of AIDS increases, there is no doubt that there will be a federal prisons and Veterans Administration hospitals. growing push to increase AIDS testing, particularly among The polarization generated by this announcement, was certain groups such as those seeking marriage licenses, im­ manifested by the mixed applause and boos which greeted migrants, and those entering the hospital. As the numbers Vice-President George Bush when he enunciated the policy increase and as AIDS hits closer to home. we will no doubt in his keynote speech to the conference on June I. While begin to see more and more concernabout preventing it, and backing Koopon the issue of AIDS "education," Bush stressed part of prevention will be screening." that education was a matter to be decided locally, and then , In the scientific session� that followed the opening of the acknowledging the conflict between public health and pri­ conference, Dr. Robert Gallo of the National Cancer Institute vacy, asserted, "We must protect the uninfected." Acknowl­ gave a presentation on "The AIDS Viruses," which did not edging that there were differences of opinion on this issue, substantially differ from a talk he gave in Brussels, Belgium he said that it was the responsibility of government to make in November 1985, Gallo presented the concept of a family a decision and act on it. of human AIDS retroviruses; he claimed to have evidence This set the stage for a mobilization by homosexual and for a new such virus in Nigeria, which was only weakly "civil rights" groups during the conference, to organize re­ related to HIV -I and HIV -2. He also discussed the phenom­ sistance to the President's policy. enon of multiple infections with different AIDS viruses and/ Many of the actual scientists, as opposed to the sociolo­ or leukemia viruses. He concluded that any highly replicating gists and "advocates" present, were of the opinion that the retrovirus with tropism for T4 cells can cause AIDS (that is, President's program represented a reasonable and "mea­ AIDS can be triggered by any fast developing retrovirus with sured" course between "extreme" positions. One scientist, an ability to bind itself to the body's infection-fighting T4 who had recently questioned the efficacy of "safe sex" in the cells). absence of knowledge of the infective status of the partners, Gallo's talk was followed by a report by Erling Norby of expresseddoubts that routine testing would drive people "un­ the Karolinska Institute of Sweden, on "The Significance of derground," as opponents have claimed, and predicted that Variations Between Human Immunodeficiency Isolates (HIV) there would be wide demand for testing by people desiring for Serology and Vaccine Development." This was an ele­ to know their own status. On the issue of mandatory testing, gant and rigorous description of the evolutionary develop­ he said: "That is a political issue, and I am glad that he ment of the AIDS viruses and their related retroviral cousins. [Reagan] made the decision and I didn't have to!" He described two types of AIDS viruses: HIV type I and Confirmation of increased public interest in testing is HIV type 2. HIV type I includes LAV , HTLV-3 and ARV , evident in a report from International Clinical Laboratories, all of which are now calledHIV-I. HIV type 2 includes LAV- that over the last few months there has been a dramatic in­ 2, HTLV -4, and a Swedish isolate termed SBL6669, collec­ crease in AIDS testing in laboratories across the country. tively designated HIV -2 . These two types of viruses show International Clinical Laboratories' testing load has in- markedly distinct external envelopes our outer shells, but

6 Economics EIR June 19, 1987 show some cross-reaction and similarity in the inner core course of the following presentation by Dr. Jonathan Mann proteins. of the World Health Organization (WHO), speaking on "AIDS The next talk, by Peter Piot of the Institute of Tropical Epidemiology, Impact, Prevention and Control: The World Medicine of Antwerp, Belgium, on "Natural History and Health Organization Perspective." Mann mentioned that Course of HIV Infection," set the theme that AIDS, espe­ Uganda would be receiving $6 million from the WHO for cially in Africa, is strictly a sexually transmitted disease. Piot AIDS-related activities. Mann predicted up to 3 million new invoked anogenital trauma and ulceration as the factors which AIDS cases by 1991-irrespectiveof prevention and control , facilitated heterosexual transmission of the virus, especially measures. in association with other sexually transmitted diseases. He As of June 1, according to Mann, 51,535 cases of AIDS then made a statement that caused a sensation in the press have been reported to WHO from 113 countries, however, corps , to the effect that there was a higher risk of transmission the total number of cases is estimated byWHO to bein excess associated with the use of oral contraceptives. of 100,000. WHO estimates that 5-10 million persons are On the disease itself, Piot stressed the increasingly com­ currently infected with the AIDS virus. plex manifestations of HIV infection, including a growing "A global problem of this magnitude demands a global number of "opportunistic diseases"-such as pneumocystis attack," Mann said, and then proceededto attack mass testing pneumonia, which only produces idsease in immunosup­ and travel restrictions on AIDS carriers. He proposed to pressed people-well as diseases directly caused by the virus combat the virus by a combination of forming committees, itself. Diseases caused by the virus itself include destruction convening ministerial meetings, and issuing memoranda, to of the brain , spinal cord, and peripheral nerves, as well as "temper the enthusiasm for indiscriminate testing';-or any chronic lymphocytic interstitial pneumonitis, an inflamma­ other intervention which might actually be effective. tion of the lungs. Over a period of 88 months, 35% of sero­ One of the more significant things to emerge from the positive persons developed AIDS, with an annual rate of conference, was a large body of evidence that all HIV-in­ progression to AIDS of 2-8%, and no evidence of any de­ fected individuals have impairment of the brain and nervous crease in rate of progression over time. system, regardless of whether they have AIDS, AIDS-Relat­ In a press conference, Surgeon General Koop said that he ed Complex (ARC), or are asymptomatic. A study of neu­ completely agreed with the President's statement of the pre­ ropsychiatric manifestations of HIV virus infections among vious day, streesing that "routine" testing was not the same homosexual and bisexual men indicated a high rate of prev­ as compulsory testing. He refused to answer a question as to alence, even among seronegatives. An Australian study doc­ whether the Atlanta Centers for Disease Control would con­ umented neurologic complications in seropositive individu­ tinue to lobby against state AIDS testing bills, as it had als in the absence of immune deficiency, and another study recently done in New Hampshire. Subsequent events indicate indicated that antibodies to HIV are produced in the central that the CDC will in fact continue to fight against such pro­ nervous system of all HIV-infected individuals. This holds grams, in defiance of the President's recommendation. out the very real possibility that, within 10-20 years, we will In the second day's plenary session, Dr. James Curranof have hundreds of thousands of demented young to middle­ the CDC gave a presentation on "Epidemiology of AIDS in aged adults, as the virus slowly, but relentlessly, proliferates the United States," which was a rehash of the CDC line that in their brains. no significantchange in the risk groups had occurred and that "heterosexual" cases were increasing twice as fast as all oth­ Progress in testing ers. This presentation was punctuated by numerous refer­ On the testing front, a number of highly sensitive and ences to Albert Camus's novel The Plague, with the plain specific assays for virus and viral antigen have been devel­ assertion that Camus's existentialist philosophy was the basis oped and are nearly ready for mass-scale, low-cost, testing of his own approach to the epidemic. of the population. A method for detecting AIDS virus in the This exercise in futility was followed by an exercise in blood has been developed by a virologist at the University of prostitution by I.S. Okware, Ministry of Health, Entebbe, SouthernCalifornia. Known as gene amplification,the tech­ Uganda. Speaking on the "Epidemiology of AIDS in Africa," nique can stimulate the production of virus proteins from Okware retailed the line that AIDS was being spread by virus integrated into cells, in the absence of cell free virus or prostitutes and oversexed truck drivers ! After a digression to antibodies. The technique is sensitive to the level of being stress that sex was culturally important to Africans, he con­ able to detect virus in one infected cell in one million, and cluded that condoms were the route to salvation. No mention has documented cases of infection with HIV-l and HIV-2 in of environmental or economic cofactors interfered with this patients without antibodies. The virus proteins can then be presentation. While he acknowledged that there was a threat detected by new assays for viral antigen. to the country's cadre of educated young adults, the full A number of highly sensitive and specificassays for virus magnitude of the catastrophe facing Uganda was avoided. and viral antigens are now commercially available. These One reason for Dr. Okware's position surfaced in the have been developed by such companies as DuPont, which

EIR June 19, 1987 Economics 7 are now moving heavily into the areas of diagnostics and cer chemotherapy, namely bone marrow supression, which chemotherapeutic agents . These have the advantage over in the case of AZT renders 20% of patients dependent on antibody tests, of being able to detect antibody-negative virus repeated blood transfusions. Nonetheless, a number of major carriers . In addition, information from the military screening pharmaceutical firms have now moved into this area in a program indicates that 2.5 million persons have been screened major way . with a sensitivity and specificity of 99- 100%, with current One aspect of AIDS which was heavily emphasized was antibody tests, in spite of claims of high false-positive results the high incidence of the disease among blacks and Hispanics by elements at the CDC. in the United States. This was heavily pushed as a question of genetic susceptibility, and any mention of socioeconomic The cover-up continues factors, other than drug abuse or promiscuity, was system­ The question of environmental cofactors was dealt with atically avoided. badly in a biased CDC study on Belle Glade, Florida, famous The conference was attended by 7,324 participants plus for a very high concentration of AIDS cases in a small slum over 1,000 media representatives. Of the participants, a ma­ area of the town. By doing a random study of the entire town jority were not scientists, but were social scientists, "educa­ for the presence of antibodies, the CDC researchers were tors," and members of various advocacy groups, such as the able to statistically "wash out" the singular pocket of cases Lavender Hill Mob, whose main function was to proselytize in the slum section . This, combined with arbitrary reassign­ for the rights of homosexuals and the condom industry, and ment of the "no identified risk" cases, eliminated the effect against any form of testing or other measures that might of environmental factors to the satisfaction of the CDC. Other actually stop the epidemic. This has produced a situation in papers on environmental cofactors in Africa were not allowed which otherwise competent scientists are couching their stud­ to be presented . ies in such a way as to propitiate, or at least placate, these In addition to perpetuating the coverup on environmental groups which have established a stranglehold on this issue. cofactors, the conference organizers did not allow any pres­ The dominating position of these groups has been severe­ entations on potential saliva transmission. ly shaken by President Reagan's decision to proceed with a One of the more amusing episodes of the conference limited federal testing program , including a random popula­ occurred in the Thursday morning plenary session . The first tion study to determine "the extent to which AIDS has pene­ presentation, on "The Human Immunodeficiency Viruses," trated our society." This has provoked responses from such was given by Luc Montagnier, of the Pasteur Institute of august bodies as the American Society of Law and Medicine Paris. Montagnier presented data on HIV -2 (LA V-2) , a new and the Harvard School of Public Health, attacking mass AIDS-causing virus he and his colleagues had isolated from testing as not "cost-effective," and opposing premarital test­ AIDS patients in West Africa. HIV-2 appears to be closely ing and testing of prisoners. In addition, there is opposition related to the simian (monkey) viruses indigenous to Africa to routine testing of hospital admissions, in spite ofthe recent and serologically related to a non-pathogenic virus, desig­ cases of health care workers infected by blood contact and a nated HTLV-4 by Myron Essex of Harvard, of which more report on the high number of infected persons admitted to below . Montagnier concluded that HIV-1, the original AIDS hospital emergency rooms .. virus, has no known animal reservoir and its origin is still a In one of the closing speeches of the conference , June mystery . Osborn, dean ofthe School of Public Health of the University Following Montagnier, Dr. Essex of Harvard spoke on of Michigan, described the mood at the conclusion of each "Human and Simian T-Lymphotropic Retroviruses: Serol­ of the three AIDS conferences to date . The first conference ogic Identification and Vaccine Development." Essex's the­ in Atlanta concluded in a mood of shock at the extent of the sis was that his non-pathogenic HTLV -4 virus was the same problem. The second conference in Paris concluded in a state as Montagnier's pathogenic LAV-2, a contention which of gloom over the prospects of doing anything about it. The Montagnier had refuted, based on genetic sequencing of the conclusion of this conference, she stated, was one of re­ two viruses. In the papers which followed, a much more strained optimism. interesting thesis emerged: that Essex had contaminated his One assumes that Dr. Osborn was looking at the issue human cultures with the original monkey virus he had ob­ from the point of view of the human race. It would be inter­ tained from the New England primate center. esting to view the issues, and non-issues, of this conference A large number of papers on chemotherapy of AIDS were from the point of view of the virus. From that standpoint, it presented. Most of these concerned the use of AZT and is evident that, barring some major and unprecedented break­ related chemicals, and showed promisng results in terms of through, and if the Lavender Hill Mob and the Harvard School clinical improvement of patients suffering from pneumocys­ of Public Health can stymie the growing pressure for real tis pneumonia, a common opportunistic infection and leading public health measures, that the outlook is highly promising cause of death of AIDS patients. Unfortunately, these agents for the virus to make good on Nikita Khrushchov's boast, have the same side-effects and problems associated with can- "We will bury you!"

8 Economics EIR June 19, 1987 Dateline Mexico by Hugo L6pez Ochoa

AIDS bomb explodes in Mexico AIDS carriers today in Mexico. This information unleashed a pan­ The condom-pushers fail to fool the population with their safe­ ic in the population, which demanded sex campaign. strong measures. But the government decided that the budget set by the In­ ternational Monetary Fund (IMF) left no funds for a serious program; every­ thing has to go to pay interest on $1 OS billion in foreign debt. The only thing A conference organized on June 9 certain high-risk sectors ," that part of that could be done, said Dr. Sober6n, by Mexico's Health Department dra­ the audience burst into applause. is to educate people on "safe sex." matically reflected the panic which is "It is scientifically proven that this From then on, the Mexican gov­ sweeping the country, as awareness disease is transmitted only by sexual ernment's anti-AIDS program has dawns that AIDS is not transmitted contact or by transmission of contam­ consisted of a few pamphlets written only by sexual, but also by "casual," inated blood," said Jonathan Mann, for the Health Department by a group contact. The conference, given by presented in the next day's press here of perverts who openly recommend Health Secretary Guillermo Sober6n as "the world authority. " Mann spout­ "mutual masturbation" and condoms. and Dr. Jonathan Mann, the director ed, ''The Mexican program against Naturally, since most Mexicans are of the World Health Organization's AIDS is on the mark, because it is for traditional Catholics, the Health De­ program on AIDS, brought several prevention through education." Mann partment pamphlets mostly inspired surprises. was not saluting Mexico's genuine ac­ the population to bum them in bon­ The firstwas for the event's organ­ complishment. It was the firstcountry fires. This instinct was encouraged by izers, who arranged an auditorium for to legislate mandatory reporting of all a campaign by the Mexican branch of 3,000 people-and found 10,000 AIDS cases by doctors to the health the Schiller InstitUte, an international people at the door. Among them were ministry. The law went into effect May cultural institute . whose chairman is hundreds of doctors and nurses who 27. Helga Zepp-LaRouche. had certified by their clinical experi­ Many found it ironic that as re­ There is resonance, too, among ence the ever-greater contagion of the cently as April 20, they had seen responsible officials. The president of disease outside the so-called high-risk Health Secretary Sober6n saying that the National Ho�pitals Council, Dr. groups. Fourteen percent of the 487 AIDS is spread by casual contact. "If Jesus G6mez Medina, said that most officially registered cases are hetero­ a person with the virus shakes hands AIDS cases were found in U.S. border sexual adults from "low-risk groups." with a healthy person who has a small cities, Mexico City, and Acapulco. His The second surprise was for the cut on his hand, he is going to give organization of private hospitals is de­ parents worried about AIDS. After him AIDS," Sober6n stated on nation­ manding that all tourists be forced to each found a condom on his or her al TY. show certificates proving they are seat, they listened as the director of The official AIDS statistics were AIDS-free. the National Epidemiology Institute, brought up to date at the June 9 con­ The June 9 conference was a des­ Jaime Sepulveda Amor, said that ference. There are now "more than perate attempt to silence the discon­ health authority polls had found that SOO" registered AIDS carriers in the tent-and it failed. "We have to speak "SO% of the population thinks AIDS country; the disease doubles in Mexi­ frankly about se�, even if it insults is transmitted by casual means"; and co everyseven-and-a-half months; and people's morality, because the future therefore , the main goalof the govern­ it is expected thatthere will be 20,000- of humanity is at stake," Health Sec­ ment's "educational" campaign is to 30,000 with the disease by 1991, "if a retary Sober6n cynically argued on convince those people that casual con­ vaccine were discovered today," Dr. closing the meeting. Dr. Mann then tagion does not exist and that a con­ Sepulveda told the conference. When got up to give a tinal message and to dom is all they need for protection! we calculate on the basis of health au­ congratulate the authorities for their When SepUlveda Amor proclaimed his thorities' own estimates thatfor every "Mexican ingenuity" in writting pro­ "energetic condemnation of those who registered carrier, there are 1 00 unre­ condom propaganda, distributed to have promoted a witchhunt against gistered, we find there are SO,OOO everybody at the conference.

EIR June 19, 1987 Economics 9 Adam Smith and Karl Marx

The Liberty and Democracy Institute : liberation theology's 'other path' by Gretchen Small

For six months, millions of dollars have been spent to pro­ liberation movement in Ibero-America. Through the ILD, mote Peru's Liberty and Democracy Institute (lLD), and its the creators of the tyrannical "popular church" which rules book El Otro Sendero (The Other Path), as the leaders, and Nicaragua today, are now organizing "the popular business­ bible, of a new businessmen's lobby in Ibero-America. ILD man," the new name for their insurgency against the "ubiq­ founder Hernando de Soto, for years a banking and business uitous state and the exclusivist power of big business." executive in Switzerland, is hailed as the ideologue of a "new right" movement, which has "a Latin American strategy des­ Which 'other' path? tined to limit the powersof our states." In May, U. S. leaders Throughout El Otro Sendero, the language of those ad­ joined the chorus, as President Reagan, Sen. Bill Bradley, vocating the "option of the poor" is mixed with the most rabid and Assistant Secretary of State Elliott Abrams all hailed De anarchism. "We must imbibe the norms of extra-legality," Soto's El Otro Sendero, for providing an approach which can El Otro Sendero cries. Liberty is defined as "the resolute solve Ibero-America's debt and economic crisis, and thus election of the poor against the elites ." Laws which defend stop Soviet subversion in the area. the "traditional order" are made to be broken, El Ofro Sen­ The ILD's argument is simple: Ibero-America's largest dero argues. Contraband is declared a liberating act, "a re­ source of untappedwealth lies in the "informal economy"; if venge taken against the State." It is the "legal businessmen" this underground economy is legalized, Ibero-America can which are most often in the way, ILD board member Mario both "grow," and pay its foreign debts. The "traditional right" Vargas Llosa wrote in his prologue to El Otro Sendero; the and "traditional left" have not only ignored the economic underground economy is "in many respects , more authenti­ potential of the underground, but also have failed to notice cally hardworking and creative than that which usurps the ,,, that Ibero-America's true revolution has already begun, in title of 'legitimate. the institutions of "popular participation" found in the under­ Economically, El Ofro Sendero is a wild scientificfra ud. ground, they state. The book asserts that the key to generating economic growth, The ILD brags that it has remedied that failure , by re­ is the legalization of the non"criminal portion of the under­ cruiting both committed Marxists and right-wingers to its ground economy-the street vendors, microbus drivers, staff. We, they claim, can unify the right and left behind a piecework, handicrafts, etc .-those who are "underground" commitment to freedom for the underground. Moscow is because they do not pay taxes, or register their "businesses" enjoying this one. The underground economy in Ibero-Amer­ legally. But this sector of the economy is nothing but dis­ ica, dominated by the narcotics trade , stands at the center of guised unemployment: Its laborproductivity is so low that its Soviet irregular warfare against the Western hemisphere. total tangible output is negligible from a macroeconomic Yet, with funding provided by Rockefeller's Council of the standpoint. Its only real importance, like that of any pool of Americas and Project Democracy's National Endowment for unemployed, is as a potential labor force for the industriali­ Democracy, the ILD is recruiting Western Hemisphere lead­ zation of the continent. The effect of the ILD's proposal to ers blinded by the mythology of "free enterprise," to take to tumthe least productive sector of Ibero-America's economy, the barricades in defense of that Soviet warfare against the into the foundation of the entire economy, would be to col­ Hemisphere ! lapse productivity in Ibero-America back to the levels suf­ Moscow is not merely watching the ILD. EIR investiga­ fered by Europe during the Middle Ages! tions have established that De Soto and the ILD are one of The ILD's actual economic program, is to tap the largest the most sophisticated penetration operations against West­ section of the underground economy-narcotics traffick­ ern institutions ever run by the Soviet-allied theology of ing-as the source of funds to pay the debt. De Soto and

10 Economics EIR June 19, 1987 other top staffmembers of the ILD in Peru , still insist publicly terrain of the class struggle? The contraband and illicit traffic that that is not the case, but there are indications this pretense market." Does De Soto reject this meeting of the two Paths? may not be maintained for long. Peru's ILD has started an EI Otro Sendero is definitive.''The informal institutions and investigation into "informal capital markets ," top ILD staff the protected space they have created, now permit anyone to member Enrique Ghersi Silva reported in a recent interview face the mercantilist state instead of succumbing to its yoke." with this author in Lima. He admitted that illegal capital markets, are almost 100%fed by the drug trade. Other mem­ Liberalism plus liberationism bers of the ILD network on the continent have been more The parallel in language between organizers of the "pop­ open on the drug-money legalization plan. ular church" and the "popular businessman" is not accidental. Carlos Ball, board member of the newly established sister EI Otro Sendero is dedicated to Gustavo Gutierrez, the father institute in Venezuela (also named ILD) initiated a campaign of liberation theology, Ghersi revealed in his interview. De for the legalization of drugs in February with a signed edito­ Soto dedicated his book "to the competitive workers and rial in Diario de Caracas. In Colombia, the ILD worksclosely businessmen of Latin America, formal and informal, who with Ernesto Samper Pizano, Fidel Castro's friend who has with their efforts are tracing the other path. And to be sure, headed the drug legalization lobby in Colombia for almost to my left-wing friends, whose ideals I share, with the hope 10 years. Samper Pizano was campaign manager in the 1982 that we shall also coincide in the means to achieve them." elections for Alfonso L6pez Michelsen, one of the firstpoli­ Asked to whom De Soto was referring,Ghersi answered: to ticians on the continent to call for legalizing the drug mob, Gustavo Gutierrez, San Marcos psychology professor Max so Colombia could use their "earnings"to pay its debts. Hernandez, and Christian Democrat Hector CornejoChavez . The ILD, however, is not merely engaged in an academic De Soto is closest to Gutierrez, Ghersi reported. Gutierrez is exchange of ideas on economic solutions. EI Otro Sendero the "spiritual father" of De Soto's children, and a regular stressesthat the enemy in Ibero-America is mercantilism, the visitor to his home. Ghersi is "my closest collaborator," De concept that a government's job is to regulate the economy, Soto wrote in El Otro Sendero, "All my ideas have been to assure the greatest possibilities for development of both discussed with him before being written." Ghersi described the individual and the general good. Neither morality, nor himself as a committed Marxist, when he met with EIR re­ national interest, are legitimate grounds for interfering with porters three years ago. This time, Ghersi preferred to call the "laws of the marketplace," EI Otro Sendero insists, and himself "a liberal." Is the alliance between the Peruvian­ any state which attempts to do so, can and must be resisted­ Swiss banker and the liberationist merely personal? by any means necessary. An answer is found elsewhere, in Michael Novak'sboo k, Unless the "mercantilist governments"of lbero-America Will It Liberate? Questions About Liberation Theology, re­ willingly legalize the underground, terrorism like Shining leased a few months before EI Otro Sendero. Like De Soto, Path's savage war against Peru will spread across the conti­ Novak works closely with Project Democracy and the Na­ nent, De Soto argues. Is this mere "prophecy"? De Soto and tional Endowment for Democracy in' the U.S. A "lay theo­ other ILD members warnthey have excellent contacts with logian" based at the American Enterprise Institute in Wash­ "the underground." Ghersi reported the ILD is organizing ington, D.C., Novak dedicated his book to two leading mem­ "workshops" in Lima's peripheral shanty-towns to study El bers of the ILD network, Mario Vargas Llosa and Venezue­ Otro Sendero, and its program to defend the underground. la's Carlos Rangel, and praises De Soto's proposals. Will It Lima's Caretas magazine challenged De Soto in a No­ Liberate? proposes a dialogue between Latin American lib­ vember 1986 interview that "the title of his book seems to erationists, and proponents of "North American liberation suggest that Shining Path seems to be a real and important theology." The latter he defines as those, like himself, com­ pathway and not simply a psychopathic and terroristexpres­ mitted to implementing the "liberal society." sion of our time." De Soto answered: "I do not believe th�t , Adam Smith, says Novak, is the father of "North Amer­ that [Shining] Path proposes a program, and if it has one I ican liberation theology." Little difference in conception of don't know it. But historically the solution to the problems man and God exists between these two "theologies," he ar­ of many countries has been so-called 'purifying' violence, gues. The difference in economic strategiesbetween Smith's violence which has been undertaken by an active part of the and the Sandinistas' theology, "should not blind the unwary population, giving way to a change in things . . . in Peru the to a powerful unity of aim. . . . The theology of both the revolution has begun. The status quo will not persist." On Americas is 'an option for the poor.''' In the ILD, the two May 14, 1987, Shining Path's newspaper, Nuevo Diario, "theologies" have joined forces. De Soto explains in EI Otro identified the "informal economy" as providing "the bases Sendero: "For being a system that consisted in the govern­ for a new economic system [which] is gestating in the very ment of a regulatory State depending .on private elites which innards of our economic system. . . . There is a real possi­ based themselves on state privilege, mercantilism was vig­ bility that these forces may liberate themselves in the future." orously opposed by both Karl Marx, the fa ther of commu­ The newspaperof this "Path" titled its article, "Lima, final nism, and AdamSmith, the fa ther of ,conomic liberalism."

EIR June 19, 1987 Economics 11 Currency Rates

The dollar in deutschemarks New York lale afternoonfixing

2.10

2.00 Privateers threaten 1.90 Italy's state sector

1.80 - � � -- by Galliano Maria Speri 1 .70

4/21 4/28 515 51 12 5/ 19 5/26 612 6/9 On May 20, the president of Italy's Confindustria, Luigi The dollar in yen Lucchini, came out proposing to fully dismantle the Ministry New York late afternoonfixing of State Holdings, during the assembly of the industrial con­ federation. 170 The move reopened an old stand-off between the "pri­ vate" industrialists, allegedly competent, smart, and mana­ 160 gerially skillful, and the "public" ones, overstuffed, incom­ petent, and above all inveterate consumers of billions of ISO taxpayers' liras. For years, this stale dichotomy has been for � years the battlecry of the Italian "liberals," who in the name 140-...... -. � of a mythical struggle against the centers of corruption and

130 bad government, have acted as the Trojan Horse of the Inter­ 4/21 4/28 515 5112 5119 5/26 612 619 national Monetary Fund and a financier faction which has always sought to impose a policy of usury and sabotage of The British pound in dollars industrial development. 'lie.. York late afternoon fixing Hence the real conflictis not between "private" and "pub­

1.70 lic" interests, but between the patriotic forces who want to fightfor Italy to returnto being a nation of vigorous industrial r--.- 1.60 :- � "'�- growth, and those who want to send the country into the post­ industrial abyss. The attack 0111 State Holdings, far from being I.SO an appealto healthy competition free from state interference, masks a scheme to cannibalize whatever healthy or advanta­ 1.40 geous prospects there are for the state-owned enterprises. This is an old practice which has been repeated several 1.30 times in Italian industrial history. When a company has a 4/21 4/28 SIS Sill 5/19 5/26 612 619 sector in crisis, it has it "saved" by public enterprises; witness The dollar in Swiss francs the case of the aluminum sector ceded to the state by Mon­ New York late afternoonfixing tedison, the Monti refineries ceded to ENI, and the FIAT steel sector, ceded to Finsider. Today, in the midst of an 1.80 economic depression and a looming financial crash, the so­ called private industrialists want to shore up their positions 1.7. by acquiring holdings in basic sectors that will let them land

1.60 on their feet after the storm.

l.SO � Some historical perspective ./ The State Holdings Ministrycame into being on Dec. 22, '""- 1.40 1956, largely at the instance of industrialist Enrico Mattei, 4121 4128 SIS 5/12 5/19 5/26 612 619 with the task of coordinating the management of firmsowned by the state and opposing the domineering role of Confindus-

12 Economics EIR June 19, 1987 tria, whichput the safeguarding of its sectorial interests ahead quale Gallo, which attacked both the Sinigaglia Plan and the of pursuing a vigorous growth policy. In so doing, Confin­ development forecasts for the auto sectOr formulated by FIAT, dustria acted as the long arm of the international financial hoping that Italian industry could develop on the Swiss mod­ oligarchy , to keep Italy's industrialization process under con­ el, becoming an "artisan" economy of small, high-quality trol-and above all to keep it from impinging on the multi­ production in restricted sectors . nationals' interests. The one partial exception in private industry was Vittorio Mattei fo und allies for his development schemes in a Valletta, who had inherited the administration of FIAT from faction of the Christian Democracy, in which the name of the elder Giovanni Agnelli. Thanks to the financial aid of the Ezio Vanoni stands out. Marshall Plan, of which FIAT got the lion's share, Valletta The creation of the new ministry and the reorganization succeeded in restructuring the plants and opening new ones , of IRI (Industrial Reconstruction Institute) permitted Mattei and launched a broad expansion policy, showing that at least and his allies to launch an industrial growth campaign un­ he had a certain skill as a capitalist. Differently from Mattei, heard-of in the country's history. By 1962, after six years, who had developed his policy by looking above all at the IRI had more than tripled its turnover and operated in such strategic interests of the country, Valletta remained, how­ basic sectors as steel, shipbuilding, precision mechanics, the ever, very "Turin-centered" and confined his strategic plan­ automotive industry, the manufacture of arms and munitions, ning to the interests of the industry he presided over. and many others . IRI was soon joined by Mattei's ENI which - These few examples suffice to show that the only indus­ had opened to Italy new and rich markets and guaranteed a trialleaders who have known how to drawup and carry out a precious energy independence while also laying the basis for grandiose strategy of economic growth have been the state nuclear power development. By focusing on high capital sector ones . Without them, Italy would have the living stan­ investments in the most technically advanced sectors , excep­ dards today , of Spain a decade ago. The present leaders of tional results were obtained. From 1950 to 1960,Italy re­ State Holdings are a large cut below their predecessors of the corded an annual growth rate of 5.9%, against 4.4% for postwar period, but they still represent the historical conti­ France and 2.9% for Great Britain. Industry's share of the nuity of a policy which has led Italy into the ranks of the gross national product rose from 36.9% to 46.9%, while that major industrialized powers . of farming dropped from 35.8% to 21.5%. One of the fastest growing sectors was steel , which had an up-front role in the country's development. From 1951 to .-...... - . 1960, steel production increased by 170%, going from 3 million to over 8 million tons, while between 1956 and 1959, � i S�k SparJish 1 Italy went from being a steel importer to a steel exporter, sending of its production abroad . : like a Cliplomat!8: 20% • • This was not entirely painless. Against OscarSinigaglia, • • president of the steel finance company Finsider, who had • • • • conceived a sweeping development plan, private industrial­ • • ists quickly lined up, such as Giovanni Falk, of the Falk steel • • works and president of the Lombard regional industrialists' • • • • group Assolombarda. Sinigaglia, foreseeing the tumultuous • • __ alpeopIetoleam.loreIg ...... n llandooma IInry binder. Order anhor. or growth of Italian industry, had drawn up as early as 1946 a • 18...... '�_. nd ��:; = .... 1 0.. byorderi ng both: • _tlle1 Fote1g _'.... CI _" _. 12 cauet1.. . (17 hr.)• • plan for radical modernization of plants, the use of advanced • · CI =��1o corwe. 35c.-la". " 20.... technologies, and the location of new plants along the coasts, • � :.:::,,� manu.l • (CTre.idont. add .ale. tax.) • as in the Japanese model, to minimize the cost of importing • .. • FONIgn=:"'...:::.=" SaMce InotKulo'O Programmallc ,::=�� • raw materials. =: c;:::,'���':== rtcen • • To order by mall. clip thlo ad and Hnd wllh Private steel makers like Giovanni Falk had on the con­ • TIIa U.S. �I ai_a hee _, your ... me and add.... . and . chack or • • trary a pessimistic view of the future of Italian steel and • =:'dot= =,,���:,�� =��'::=W':'�f:v":! • 8penioh., your own convenlonce and al dOting card number. axpirallon d.'a • • nd • thought it should never surpass a threshold of 2.5 million • you� � co:;,.,...... aI a oari.. aI coo- you�lg=SaMce _...... • tons a year. By remaining within those limits, and maintain­ • ===t:"": �;.!= :::"":=--:'"� ��7t.: • • lIotonlng and r_tlng By Ilia end aI the Ilia '•• '00'. _ ... mool pain .... way 1o • ing a regime of 30-40% protectivetariffs , they hoped to delay _rae you" be loamlng. .nd .pooklng on' learn Spanloh. ,,'u. m n .nd wo'U refund • • as long as possible the modernization of their plants, thus _a ptayw 0100 • • '�_ • .-. =:".;",. _." .- WIth Ito unlquo .�'J�c:r::...,.bIe. wrrlo lor""�:Ot��:�. guaranteeing decent profits with few risks . Clearly, with this • "programmalic" looming method. you oat catalog. Our 15th _r. · • • yourownpoco-loollng you_.comoctlng -""l1I,h • grandmotherly mentality of hiding pennies under the mat­ • � �=-".:.".��os;::�... Audio·Forum • co_ In two YOIume• • each .hlpped In • tress, Italy's industry would not have progressed very far. • ��:.:�..... n • �. • Another example of the same myopia was the report by the • .lI"WH'mMJm0 =��_7 c:I extraordinary commission at Alfa Romeo, headed by Pas- .- ...... •�

EIR June 19, 1987 Economics 13 Africa Report by Mary Lalevee

Venice summit: no help for Africa French President Fran�ois Mitter­ With commodityprices collapsing, Afr ican countries are still rand also presented a proposal at the paying out billions to the banks in debt-service. summit. He said that the debt of the poorest African countries should be rescheduled at lower interest rates, over a 20�year period, with a 5-10 year period of non-payment. French Prime Minister Chirac's position goes fur­ T he famine-stricken continent of 1986, and a projected figure of only ther, with a commitment to stabilizing Africa is currentlypaying out billions 34 billion in 1987. Congo's budget exchange rates, lowering interest rates, of dollars each year to international was 400 billion CFA francs in 1984, guaranteeing purchase prices forraw financial institutions, in amounts far 360 billion in 1985, 163 billion in materials, and reaching a global set­ exceeding both the revenue earned 1986, and 159 billion for 1987. tlement of the debt crisis. fromexports , and aid given. This out­ Accordingto a study by the Over­ Yet the summit decided nothing, flow of funds means that Africa's seas Development Council, a Wash­ except to state once again that 0.7% economies are being used to bolster ington, D.C. think tank, the annual of the GNP of the top OECD indus­ the international banks, as govern­ cost of servicingAfric a's debt is about . trialized countries should be used for ments are forced to slash spending on $12 billion, about half the region's ex­ development aid-a standing goal vital sectors like health and education, port earnings. Such a high debt-ser­ which has never been achieved. The to repay their debts. vice bill "makes it all but impossible summit reaffirmedfull support for the The executive director of the for governmentsto make new invest­ IMF, and the case-by-case approach U.N. 's Economic Commission for ments for growth or to import the fuel, to debtor countries. For the poorest Africa(ECA) , Dr. Adebayo Adedeji, fertilizer, and spare parts needed to countries of Africa, the summit com­ was quoted in the International Her­ maintain current export levels," the munique merely states that "consid­ ald Tribune on June 8: "Africa, poor study reports. eration should be given to the possi­ as it is, continues to be a net exporter The debt crisis threatens to bank­ bility of applying lower interest rates of resources, paying more in debt ser­ rupt and even topple several African to their existing debt, and agreement vice than continues to be a net exporter governments. Faced with this threat, should be reached . . . on longer re­ of resources, paying more in debt ser­ the nations of Zaire, Zambia, and Ivo­ payment and grace periods to ease the vice than the combined total of what it ry Coast have followed the path of debt service burden." The IMP's pro­ receives in foreign aid and earnsfrom Peru, and set limits to debt repay­ posal for an increase in funds from $4 commodity exports." According to the ments. The Zambian government billion to $12 billion for the Structural ECA, debt payments totaled about $30 broke off all negotiations with the In­ Adjustment Facility, a special fund for billion in 1985-86. ternational MonetaryFund (IMF), in poor countries, was approved, but no Dr. Adedeji said, "You cannot a move which shook the international new commitments were made on aid. make bricks without straw. You can­ financial community, as it could set a French efforts to increase aid to the not expect African countries to go precedent for other African nations. 0.7% figure reportedly ran into resis­ through structural adjustment without In a move to preventanother Zam­ tance from the United States. resources to finance it. If the rest of bia, the World Bank worked out a debt Interviewed on Radio France In­ the world cannot help Africa stand on relief plan that was presented at the ternational, the secretary general of its feet, then it will have to support a Venice summit June 8-10. It called for the Organization of African Unity permanent emergency case. " $20-25 billion in debt relief for 12 pointed out, "It is not enough just to Commodity prices are now one­ heavily indebted African countries­ pay back the debt, or reschedule it, or quarterto one-third of what they were Gambia, Madagascar, Mali, Mauri­ even to cancel it. We need to benefit in the 1970s. The impact of falling tania, Niger, Senegal, Sierra Leone, from new capital inflows, to invest and commodity prices can be seen in the Somalia, Tanzania, Togo, Zaire, and create production units, because pro­ case of Congo, whose main export Zambia. The plan would mainly in­ duction creates resources, which will commodity is oil. Revenue from oil volve postponement of interest pay­ not only allow us to relaunch our econ­ exports has fallen from 200 billion ments to Westerngovernments and fi­ omies, but also allow us to have suf­ CFA francs in 1985, to 72 billion in nancial institutions such as the IMP. ficient resources to repay the debt. "

14 Economics EIR June 19, 1987 Agriculture by Marcia Merry

'This little piggy went to market . . . ' cows were eliminated (a few were ex­ But meat supplies in America are way down, as Washington ported). From January 1987 through this summer. the emaining 200,000 professes "surprise" at the shortage. � milk cows, contracted for extermina­ tion, are being elidIinated. "Experts" are now predicting that the run up in prices to date, will spur cattle raisers to start to expand herds­ providing more animals for slaughter Both the rise in retail meat prices, (frozen slabs of uncured bacon) down, 18 months to 2 yearsfrom now. Their and the rise in futures prices on the in an attempt to prevent cornering of so-called reasoning shows that they Chicago Mercantile Exchange, show the market in the face of scarcity of haven't even learnedthe lessons of the how short national meat supplies are supplies. "missing piggies." relative to needs. Hog and cattle The Wall Street Journal reported If farms are going under at the slaughterings have been down, and on June 10: "Although the govern­ present rate of 1, 100 a week, for a prices are up. EIR has warned of this ment reports have been notoriously sustained period of time, the missing eventuality, in detail, in Quarterly unreliable, the lighter-than-expected farmers will not be able to "bounce Economic Reports for the last two slaughter caught meat traders, pack­ back" and re-start breeding herds. years . The figures speak for them­ ers, and merchants off-guard , partic­ Even the herdsmen still in opera­ selves: Beef cattle numbers have de­ ularly in the case of pork bellies. tion-many of whom work as con­ clined for the past 17 years, while the '' 'Somewhere there are some pig­ tract "serfs" to the ilarge vertically in­ national hog inventory is the same size gies that are on paper, or some place, tegrated meat commodity compa­ as it was over 20 years ago. that cost the industry a lot of money nies-cannot compensate for the dis­ In 1985, there were 36,293,000 because they haven't come to integration of the family farm-based meat animals for slaughter in the slaughter, '" according to Raymond U.S. production system. United States (steers, heifers, cows, Daniel, with Wharton Econometrics Cereals, milk, �nd fruit and vege­ bulls, stags, calves, hogs, sheep, and Forecasting Associates Inc. table producers wiU also not be bounc­ lambs). This is only a couple of mil­ So far this year, the Consumer ing back. once they are dispossessed, lion less than in 1968, 20 years ago, Price Index-however inaccurate in no matter whether a few are currently and far less than a few years in be­ its composition and methodology­ still in op,erationby! leasing some land, tween, such as 1976, when there were shows clearly that food and beverage or working for someone else. 42,654,000 meat animals in the coun­ prices are outpacing all other consum­ Besides the rising meat prices in try . er bills in price increases. From Janu­ the store . the most dramatic evidence While reporting this decline in ary to April, food and beverage prices of the disintegration of U.S. agricul­ meat animal numbers, recent U. S. jumped 4.6%, while the Consumer ture will come in September. when Department of Agriculture commen­ Price Index as a whole rose 2.6% schools open. Tqere will be such tary indicates "surprise" that there does A National Cattlemen's Associa­ shortages of fresh.j fluidmilk . that ra­ not seem to be the "bounce back" they tion survey of 19 cities shows that tioning may not bel uncommon. predicted. In its March 1987 report, prices of prime cuts of beef went up At present, the impact of the dairy the USDA shows the downtum in hog 12% in May, over March and April. herd termination program on many numbers, but forecasts that hog num­ These price rises reflect both the subsections of the c:jountry, such as the bers in the top 10 producing states shorterdomestic supplies, and the drop southeastern states\ has been to create would increase. The USDA forecasts in the buying power of the dollar to milk-deficit regio$s. Milk is being a 6% increase in breeding stock, and acquire meat overseas. Over the last hauled by tank trudk in long interstate a 2% increase in animals for slaughter. year, beef prices would have risen ear­ runs, to fill these deficits. But when However, during April and May, lier and steeper, but for the additional cows produce less I over the hot sum­ hog slaughterings were running 7-9% meat on the market from massive mer months. and Mter more farmers lower than a year ago. The Chicago slaughtering of milk cows under the stop operating, the I deficitswill be too Mercantile Exchange jawboned its federal "Dairy Herd Termination" great to filleven by such long and ex­ tradersto keep holdings of pork bellies program. In 1986, 1.3 million milk pensive cross-h�lUling.

ElK June 19, 1987 Economics 15 Business Briefs

Banking director of the Justice Department's bank­ head SS-18 missiles in order to add shield­ ruptcy trustee program, Thomas Stanton, ing against laser attack. Run developing tried to pressure then-U.S. Bankruptcy "If the scientists who wrote this report Trustee William White to convert the com­ applied the same criteria to the contracts that on Te xas thrifts pany's bankruptcy case from Chapter 11 to they went out to get to do their basic science Chapter 7 (involuntary bankruptcy), so that research, they would never get funded by While Congress is debating whether to give the company could be liquidated. The case NSF, by DOE, by anybody," said Dr. Allan the Federal Savings and Loan Insurance is currently being heard before federal bank­ Mense, chief scientist for the SDI Organi­ Corporation (FSLIC) a $5 billion or $7.5 ruptcyju dge George Bason, Jr. zation. "How they can let this document get billion bailout, George Barclay, an execu­ Inslaw further charges that there was a published in Reviews of Modern Physics tive vice president of the Dallas Federal "vendetta" against the company by officials without having a peer review process is be­ Home Loan Bank (DFHLB), has stated that including C. Madison Brewer, deputy di­ yond me." about $4 billion will be needed just to deal rector of the Justice Department's executive with Texas savings banks. office for U.S. attorneys, and fonner Dep­ The situation has gotten worse since uty Attorney General D. Lowell Jensen. March, he said, when FSLIC was forced to Brewer is a fonner Inslaw employee who Labor give the DFHLB $1 billion in cash to sup­ was firedin 1976. Jensen was the developer port FSLIC-backed loans. of a software package that competes with Salomon Bros. says He said that therehave been several well­ Inslaw's product. publicized failures of S&Ls in Texas and BLS cooked figures depositors are pulling their money out. Sev­ eral pensionfunds and other large customers Salomon Brothers, the Wall Street invest­ have already pulled out, and others are con­ Science & Technology ment house, has infonned readers of its sidering it, Barclay said. newsletter that the figures produced by the The regulators fear that rising interest Physics Society made Bureau of Labor Statistics just may not be rates paid by the S&Ls will put many thrifts all that reliable. The BLS, says Salomon, is deeper into debt and further raise the cost of 'errors' in SDI critique using some very questionable statistical pro­ the multibillion-dollar bailout regulators as­ cedures to make things look betterthan they sert is needed for the FSLIC to restore the A review of the American Physical Soci­ are . industry to health. "I wouldn't call it a run, ety's April report denying the fe asibility of EIR has documented that the BLS rou­ I'd call it a gradual and persistentwithdraw­ the Strategic Defense Initiative (SDI) con­ tinely "disappears" at least 75% of the al of jumbo deposits," said Joe Selby, an cludes that the study was riddled with errors. Americans who are actually unemployed or executive vice president of the DFHLB . EIR reached the same conclusion, in a underemployed. review of the study published May 29 Now Salomon has also discovered that (" 'Flat Earth Society' mounts fe eble come­ the BLS constantly has to revise its figure back"). for employed persons downward, because Bankruptcy "We found large errorsin critical aspects of an odd way of projecting employment of the report-errors of 10 to 100 on vital figures. The Salomon newsletter of June 5 Company accuses DoJ matters such as the power of the laser beams notes: "Downward revisions to the first re­ being developed by SDI research teams," lease of payroll employment growth in the of 'vendetta' said Lowell Wood of Lawrence Livennore past four months are no fluke; rather, they National Laboratory . "These errors did not are characteristic of a persistentupward bias A Washington, D.C.-based computer soft­ have a random character," he told a meeting in the firstreport . This bias has grownin the ware company, Inslaw, Inc., contends that of the House Republican Research Commit­ past few years ....The monthly change in officials of the U.S. Department of Justice tee in May. "They were all in the direction total employment has beenrevised down by acted illegally to try to force it out of busi­ of making a defense against Soviet ballistic an average of over 23,000per month since ness in 1985, and have continued to harass missile attack seem harder than it really is." Jan 1985." it ever since. According to a report pub­ The report overestimated, by a factor of The BLS boosted the early employment lished in the Washington Post on June 10, 30, the power needed to operate a neutral reports in some groups by various methods, the Justice Department was fonnerly the particle beam weapon; overestimated, by a says the newsletter. If there were any kind largest customer of the finn, which writes factor of 1 00, the power needed to run a free­ of recovery on the way, with attendantjob software thatallows prosecutors to keep track electron laser; and underestimated by a fac­ growth to be accepted, this would have been of criminal cases. tor of 3-5 the number of warheads the So­ acceptable, "but it may no longer be appro­ The company charges that theexecutive viets would have to take off their IO-war- priate."

16 Economics EIR June 19, 1987 Briefly

• WALL STREET is playing "chicken" with U.S. Attorney Ru­ dolph Giuliani, infonned sources re­ The Debt Bomb supported 's presidential port, in order to block a series of campaigns in 1980 and 1984. criminal indic�ents growing out of Brazil's Funaro has According to the Los Angeles Times re­ the Ivan Boesky and related "junk port, the lawsuit, which is being draftedwith bond" cases. ' Bankers have threat­ become a folk hero the help of the FBI and the Labor Depart­ ened to collapse the dollar if Giuliani ment, is aimed at forcing the union's exec­ doesnot back offfrom targeting such Fonner Brazilian Finance Minister Dilson utive board, including President Jackie firms as Kidder Peabody and Gold­ Funaro, the principal spokesman for a debt Presser, out of office. One official said that man Sachs. moratorium against the internationalbank s, Assistant Attorney General William Weld, who was forced to resign on April 26, is chief of the Criminal Division of the DoJ, • 'IF MEXICO falls into econom­ becoming a national folk hero, according to had instructed that the draftcomplaint should ic chaos, the denter of U . S. political a study published on June 7 by the daily include evidence of alleged Teamster cor­ attention will 'invariably move from Folha deSao Paulo . ruption. the U.S. 's Pa�ific and Atlantic allies Said one reporter, when Funaro spoke at Attorney General Edwin Meese has re­ to dealing willidamage control along a rally, "I have not seen the equal of the moved himself from any involvement in the the Rio Grande," Henry Kissinger scene since the time of Getulio Vargas, case, because of contacts he had with Press­ said recently, as reported by El Jor­ 'father of the poor people. ' " Vargas was the er during the 1980 campaign and later. nada in Mexico. populist President of Brazil for most of the 1935-55 period. The newspaper reports an­ • CARLO DE BENEDETTI of other citizen weeping with joy that Funaro Olivetti Corp., Henry Kissinger's fa­ "restored a dignity to Brazil that it hasn't vorite Italian industrialist, sponsored had since Ruy Barbosa." Barbosa became a lavish dinner party June 10 at Mil­ finance minister in 1890, and fought to in­ Space an's Sforza Castle, in what the Fi­ dustrialize through mercantilist cheap credit nancial Times of London called "the and protection of new industries. Barbosa, Soviets otTer satellite other summit." In attendance were like Funaro, was forced out of office by a members of the Italian-American conspiracy of international banks. launch services Conference on Private Sector Initia­ In Rio on June 9, 500 people came to tive . hear Funaro speak at a rally, with banners The Soviet Union is apparently taking com­ reading, "Welcome, nationalist minister." mercial advantage of the absence of U.S. • FIRST CITY FINANCIAL, the launch capabilities following the series of Belzberg family finn, was charged U.S. launch failures on the heels of the Jan­ with violating filingrequirements by uary 1986 Shuttle disaster. the SEC in late May, on behalfof a Leighton Farrell, a member of Austral­ conspiracy to take over Ashland Oil Corporatism ia's national satellite system, Aussat, put it in 1986. The Canadian-based Belz­ this way: The U.S.S.R. is "concentrating on bergs are close Dope, Inc. allies of Justice Department a high-tech sector where they feel they can the Bronfman ,:lan. really compete-space services." Farrell i seeks Te amster takeover said that a Soviet delegation had told Aussat • THE TEN TOP Wall Street trad­ last month that it could provide launch ser­ ers averaged $68 millioneach in 1986. The u.s. Justice Department is preparing a vices on attractive tenns for two large com­ They were IQd by Lazard Freres' lawsuit to take over the 1.7 million-member munication satellites Australia wants to place Michel David. Weill, who earned a Teamsters Union and place it under control into orbit in the early 199Os. The satellites bundle declared at $125 million. of a governmenttrustee, on the grounds that are to serve the Southwest Pacific and New Number three was Drexel, Burnham, it is influenced by organized crime, the Los Zealand as well as Australia. Lambert's "jullkbond" mafiosoMike Angeles Times reported on June 10. Soviet satellite launch offers have been Milken, who punched in at $80 mil­ The action is perhaps the biggest gov­ made to a number of ASEAN countries: In­ lion. Former treasury Secretary Bill ernmentassault on a trade union since Mus­ donesia, Brunei, Malaysia, the Philippines, Simon was number 10, with an esti­ solini "absorbed" Italy's unions into the Singapore , and Thailand. mated $50 miliion. Ivan Boesky, last Fascist Corporations in 1934. Soviet Prime Minister Nikolai Ryzhkov year's winner at $100million , was The Teamsters are the only major Amer­ said Jan. 5 that his governmentwas prepared missing this year, after paying $100 ican union whose leadership is independent to grant "substantial discounts" to develop­ million in penalties for illegal insider of the corporatistelite known as Project De­ ing countries using the satellite launching trading. mocracy. They are also the only union which services in the Soviet Union.

EIR June 19, 1987 Economics 17 �TIillScience & Technology

What high-temperatu re superconductorspromise Already, existing types oj omc puter chips can be made one million times more poweiful with no significant increase in cost. Charles B. Stevens, RobertB. McLaughlin , and Roland P. Hagge report.

Generally speaking, it is often the case that not until many linear possibilities which these recent breakthroughs in high­ decades after a specific technology has first emerged and temperature superconductivity are immediately about to en­ found application throughout the economy that we become gender in computer and other technological applications, just fully conscious of the revolution that it has engendered in simply applying the now eminently practical superconduct­ human existence. The case of the "compressed air revolu­ ing Josephson junction technology, together with rapidly tion" provides the exception which proves the rule. Reading advancing x-ray lithographic techniques means that existing encyclopedias from the turn of the century, one would come types of computer chips, can be made upwards of 1 million across articles touting the forthcoming technological revo­ times more powerful with no significant increase in cost. lution about to be generated by "compressed air," which And, again, without taking into account more advanced pos­ would shortly provide a convenient means of powering light­ sibilities, this single step would break through the essential weight engines. As we know today, "compressed air" did not barrier to economical, real-time automatic control of virtual­ quite make it. Instead, theinternal combustion engine emerged ly every industrial and manufacturing process. on the scene. And shortly thereafter, planes and cars were Even the linear impact of this single development, which everywhere. derives from the most immediate applications of these recent About 10 years ago in a private interview at the New developments in high-temperature superconductivity, should York headquarters of the United Nations, Yevgeni Velikhov, lead to a tenfold increase in productivitythroughout the world who was leading the U.S.S.R. delegation for a conference economy. According to fonner Fusion Energy Foundation on energy R&D at the time, and who is currently the chief computer experts, the high-temperature Josephson junction science adviser to Soviet leader Gorbachov, told Fusion En­ chip should hit the market within the next year or two, and, ergy Foundation directorof research, U we Henke v. Parpart, if the U.S. economy still exists four years from now, chip that what was needed in the energy field was what was being proliferation will have reached saturation. maintained in the fieldof computers-an order of magnitude decrease in unit costs a couple of times perdecade . Prospects The superconductivity revolution for achieving this in the energy field still involve great diffi­ The contemporary scientific community has never seen culties. But, with the recent developments in the fieldof high­ anything quite like this. Over the past few months, hundreds temperature superconductivity, the rate of decrease in unit of researchers in laboratories around the world have dropped costs for computers is about to be multiplied a thousandfold everything to study the recently realized high-temperature or more, with a millionfold drop immediately around the superconducting materials. Researchers are working day and comer. night-holidays no longer exist. Marathon, "sardine-like" Disregarding, for the moment, the most interesting non- sessions are held at scientific meetings, with the overbooked

18 Science & Technology EIR June 19, 1987 schedule going into the wee hours of the morning. Everyone barium-lanthanum copper oxide which hadbeen developed from full professors to novice graduate students has become by French chemists as potential chemical reaction catalysts . infected. As Muller and Bednorz noted in dteir April 1986, Zeit­ The speed with which the high-temperature supercon­ schriftfUr Physik B article, in Januaryof 1986 thisparticular ducting revolution has emerged is truly remarkable. It has oxide exhibited superconductivity at a temperature of 35�. virtually caught everyone in the technical world off-guard. Within a few weeks, this Muller-Bednorzwork was extended For the past 75 years , progress in superconductivity R&D by researchers at the University of Tokyo and at Bell Labs in has been tortoise-like. At the tum of the century, it was Murray Hill, N.J. These groups got tIiIe onset of Tc at 40� discovered that some materials, when supercooled to tem­ throughreplacing the barium with strontium. peratures near absolute zero-that is, 0° Kelvin which is the Shortly after this, other groups got into the act and Uni­ same as -273° Celsius and -461° Fahrenheit-begin to versity of Houston and Bell Lab teams had succeeded in conduct electricity without any detectable resistance. And getting Tcs into the 50CK range, with the Tokyo team and a many of these superconducting materials cannot even begin new team in Beijing, China in hot pursuit. Then on Jan. 29, to conduct electricity at ordinary temperatures. 1987 the Houston group headed by Ching-Wu Chu zoomed It took scientists 62 years to raise the temperature at which to the range of 9O- 1000K, well above the 77°K liquid nitrogen superconductivity can be produced from 4°Kto 23. 3°K. This threshold. The details of this breakthroughwere presented in progress was achieved through exploring pure metals or al­ the March 2 Physical Review Letters. But the secret to the loys like niobium-tin. And for the past 13 years little progress Houston success leaked out long before. This was the useof beyond 23.3°K has been made. yttrium in the rare earth oxide, i.e., yttrium barium copper The breakthroughcame at the beginning of this year when oxide (Y -Ba-Cu-O). Within days, a dezen groups haddupli­ the superconducting transition temperature , Tc , was experi­ cated Chu's results. mentally pushed to above 77°K with the new metal-oxide At this point, all hell broke loose. These new supercon­ ceramic materials. The existing commercial superconduc­ ducting materials can be easily synthesized by anyone equip­ tors, like the niobium alloys, don't reach the superconducting pedwith a mortar, pestle, and a small, kitchen-variety micro­ state until they are chilled below 23°K. That degree of cooling wave oven-though, a higher temperature potterykiln would requires the use of liquid helium as a refrigerant. Helium be most helpful. Even more significantly, with superconduc­ condenses at 4°K and liquid helium is very expensive-it tors above 77°K, anyone can produce the required tempera­ costs about $1 1 a gallon. It is also very difficult to use and turesjust as the Alcator tokamak group did, withol,lt a refrig­ refrigerate . erator. All you have to do is order a bottle of liquid nitrogen At a temperature above 77°K, liquid nitrogen can be used which costs 22¢ a gallon. as a refrigerant. Liquid nitrogen costs only 22¢ per gallon Since that time, which seems to n\any researchers in the and is quite easy to utilize. In fact the first MIT Alcator field to be centuries ago, a lot of time has been spent con­ tokamak experiment utilized liquid nitrogen as a coolant cocting recipes for these oxides, these ceramics. Rate of without a refrigeratorat all . A commercial truck would deliv­ cooling has turned out to be the most critical factor. At the er the liquid nitrogen bottles once a week and the experimen­ Nuclear Research Center at Karlsruhe, West Germany, Dr. ters would simply pour the liquid nitrogen over the magnets Constantin Politis and his colleagues prepared materials whose and achieve the 77°K, while the nitrogen would bubble away oxides are replaced by fluorines, which have Tc's at 120�. into the atmosphere. Nitrogen is cheap, readily available, These results are still somewhat conttoversial and are being abundant, and clean. checked. Liquid nitrogen is far easier to handle and is a much, At Wayne State University the Chen-Wenger team saw much more efficient coolant. Experts say, overall, the cool­ evidence that Tc was going to 240�. This occurred when ing power of liquid nitrogen is about 1,000times greater than they irradiated samples of Y -Ba-Cu-Owith microwaves. The helium per dollar of investment. That is, liquid nitrogen microwaves induce an alternating currentin the material, but refrigerators are thousands of times cheaper thanhelium ones. Chen and Wenger measure a constant DC voltage at 2400K. This is the so-called reverse AC Josephson junction effect The break which can only occur in a superconductor. More recentwork The first breakthrough came at the IBM Zurich Research by a New York company shows indications of superconduct­ Laboratory in Switzerland. Drs . K. Alex Muller and J. Georg ing at 9° Fahrenheit and even as high is room temperatures. Bednorz had decided to explore a new class of materials, the metal oxides, for indications of superconductivity. A few Recent developments examples of these metal oxides, known as perovskites, were A crucialbreakthrou gh came recently from theffiM group already known to be superconductors at 13°K. working at the Yorktown Heights, New York center. This Muller and Bednorz extended their research to metal ox­ group led by Roger H. Koch has succeeded in surmounting ides that contain rare earth elements, like lanthanum in a the most essential barrier to immediatt practical applications

ElK June 19, 1987 Science & Technology 19 of these high-temperature superconductors, the electric cur­ directed energy technologies as well. rent density barrier. All previous results had been at extreme­ Computers can dramatically enhance the ways we cap­ ly low current densities, which meant that the new materials ture, store, retrieve, and transmit information. If fully imple­ were not immediately useful. But Koch and company pro­ mented to provide real-time, automatic control of all indus­ duced thin films, like those needed for Josephson junctions, trial and manufacturing processes, computers would radical­ that carried hundreds of amperes of current per square centi­ ly increase labor productivity throughout the economy. Ad­ meter of conductor at a Tc of 77°K. This was later extended vanced planning techniques could be harnessed by a single to 1,100 amperes per square centimeter by the Bell Labs person, that previously took, massive, slow-moving 10,000- group. (In contrast, commercial 4.2°K niobium alloy super­ scale bureaucracies, to run complex industrial and other or­ conductors can handle 50,000-500,000 amperes per square ganizations. The general population will have the tools to centimeter. ) access almost any aspect of human knowledge and keep But as Dr. Murphy of Bell Labs notes, this existing lower abreast of the most recent developments. performance with the high-temperature superconductors is And while computer tech�ology has already made enor­ only an artifactof fabrication. The same problem confronted mous strides over the past threedecad es, its impact has been the niobium alloys when they were firstdiscovered . Because virtually infinitesimal, compared to today's potential of put­ only a small number of researchers were involved in the field, ting supercomputers on a single chip. it took a few years of investigation into innovative fabrication The cost-performance of computers has fallen steadily techniques to get the current density up. It is expected, es­ over the last 30 years. Today aiplurality of households contain pecially with the unprecedented number of researchers and mini-computers which easily match the full performance of groups floodingthe fieldof high-temperature superconductor million-dollar business computers circa 1955. research, that this will only take a year or two at most. Besides current density, the other critical parameter for Josephson junctioDS many applications of superconductors, such as magnetically In 1962, Brian Josephson developed a superconducting levitated trains, magnets for fu sion reactors and magnetohy­ device which has since been known as the Josephson junc­ drodynamic (MHD) generators, and windings for supercon­ tion. The Josephsonjunction is not a semiconductor phenom­ ducting motors and energy storage devices, is that of the enon. The Josephson effect occurs in superconducting ma­ critical magnetic field. The magnetic field generated by a terials where the freeelectrons-the conduction electrons­ superconductor-in fact any conductor-is proportional to act as though they are in very efficient "quantum" orbits, the electric current it carries. The conductor is thus exposed macroscopic orbits. According to existing theory, the Cooper to its own generated field. The critical fieldfor superconduc­ electron pairs (see page 21) exist in discrete quantum energy tors is the magnetic fieldintensity at which the self-generated states, instead of an apparently continuous energy spectrum magnetic field will penetrate into the superconductor and found with ordinaryconduction electrons. interrupt the current flow. That is, at the critical field, the Because of this, when two superconducting layers form superconductor flips back to a non-superconducting state. a junction with a very thin elc=ctrically insulating oxide layer This critical field, therefore, limits the total field that a su­ sandwiched in between-about 0.0040 microns thick-a perconductorcan generate. very low energy "gate" can be achieved (see Table 1 for the Happily, the new ceramic oxides have already demon­ Speed-Power Product). A very small amount of energy, about strated an extremely high critical field. The barium-yttrium­ 300,000 times less than the existing ECL-II semiconductor europium-copper oxide reaches critical field at500, 000Gauss gates, can get electrons to flow across the insulating layer. at 77°K. This is already better than that achieved with the This very efficient quantum "tunneling" derives from the best niobium tin alloy, which has a critical field at 350,000 Gauss. Chu and his co-workers have projected that Y -Ba­ Cu-O optimal critical field is near 2 million Gauss. Even higher values are estimated by the MIT and Bell Communi­ TABLE 1 cations groups. Comparison between current semiconductor gates (ECl-lII) and Josephson junctions In the bag (Cll) One immediate result of the Bell Labs and IBM Yorktown Gate Speed- Density Heights crashing of the current density barrier is that Joseph­ delay Power power (gates per son junction supercomputing chips are now in the bag. For Technology (ns) (mw) (pJ) sq mm) some time, the general technological basis has existed for ECl-1II 1.1 60 66 30 realizing a computer-generated "third industrial revolu­ Cil .03 .006 .000180 10 tion" -the second came with electricity and the internalcom­ bustion engine. Naturally, this presupposes the plasma and

20 Science & Technology EIR June 19, 1987 as Bosons. And in theory, an infinite number of Bosons can populate a single quantum energy state as opposed to Bes ' standard theory of only one for the Fermion. superconductivity BCS describes this overall transitiQIl as the formation of Cooper pairs which can condense into a single macro­ collapses scopic quantum state with 10ng-rangt1 order throughout the lattice. But recent experiments Writh the new high­ One of the first victims of the new high-temperature su­ temperature superconductors prove that the BCS theory perconductors has been the existing standard theory of of "linear" sums of Cooper pairs is totally inadequate. superconductivity, which was known as BCS theory. This At first, the lanthanum-based copper oxide supercon­ theory was developed by John Bardeen, Leon N. Cooper, ductors appeared to be following the BCS model at tem­ and J. Robert Schrieffer-thus BCS-in 1957. It says peratures up to 50oK. But at 900K the new superconduc­ that an electron moving through a crystal lattice, as in a tors exhibited behavior which was contrary to the BCS metal , tends to transiently distort or "pucker" the "elastic" model and operates according to a supposedly unknown chemical bonds of the lattice slightly. This is due to the mechanism. negatively charged electron attracting the positively Thisproblem came to a boil when two researchgroups charged ion nuclei of the lattice atoms . announced that they had conducted an essential test of A second passing electron will be attracted to the ex­ lattice puckering, one of the axiomatic characteristics of cess positive charge created by the higher density of ions the BCS theory . The lattice puckering, which supposedly in the "pucker" region. Thus, according to BCS, the first leads to the formation of the Cooper pair in the BCS electron in effect "attracts" the second electron via the theory, is really nothing more than lattice vibrations. And pucker. if the weight of the lattice atoms is changed, such as by This weak attraction is then said to bind the two elec­ utilizing a heavier chemical isotope (that is, the same trons into a so-called "Cooper pair." And because elec­ chemical element with more neutrons in its nucleus), then trons , like people, generally like to cohabitate in pairs the superconducting behavior, Tc for example, should with opposite spins, the Cooper pair of "free" electrons in significantly change. the superconductor act in unison with matched and oppo­ At the April Materials Research Society meeting in site spins and momenta like those stable pairs found in Anaheim, California, the AT&T Bell �ab and the Univer­ atomic orbits. sity of California, Berkeley groups announced that they According to the BCS theory the transition from elec­ had independently performed such an experiment with tricity conduction within the crystal lattice based on "sin­ different oxygen isotopes. The experiment utilized two gle" free electrons to that based on Cooper pairs is quite samples of the superconducting copper oxide ceramic dramatic . The general reason given for this dramatic change which were identical except for the oxygen atoms. In one in electrical conductivity is that uncoupled, free electrons sample the more prevalent oxygen- 16 isotope was uti­ strongly resist increases in electron population density­ lized. In the other sample, the heavier oxygen- 18, which that is, the single electrons resist compression to higher has two more neutrons in its nucleus, but otherwise has electric current densities. This is said to be the case be­ the same chemical properties as oxygen- 16, was used. cause the electrons follow Fermion-like behavior. Ac­ The researcherscooled the samples an� measured the tem­ cording to E. Fermi, single, free electrons have a funda­ perature at which each one became suPerconductive. mental "quantum" behavior which only allows one elec­ According to the BCS theory , the superconducting tron to populate any given quantum energy state. This is transition temperature, Tc, depends on the frequency of supposedly the source of the "single" freeelect ron 's resis­ the lattice vibrations. And it is well khown that a lattice tance to condensation. with heavier atoms will vibrate at a different frequency But when the electrons form Cooper pairs, the two than one with lighter atoms. But the two experiments show coupled electrons act like a single particle with a totally quite convincingly that Tc does not cbange at all. Theo­ different behavior than that of Fermions. In fact the Coop­ rists are quite perplexed. The experiments indicate that er pair acts like a photon-the quantum cell of electro­ the number and arrangement of the oxrgens in the lattice magnetic radiation, light. Photons are theoretically capa­ is key to the superconducting behavior-that is, instead ble of being relatively easily compressed to very high of the "elementary" quantum process4s, such as Cooper population densities. In this case the elementary parti­ pair formation, macroscopic lattice gpometry and com­ cle-the photon or Cooper electron pair-are said to act position is primary .

EIR June 19, 1987 Science & Technology 21 same property found with electrons bound to atomic orbits. the single giant in the computing field. Electrons in atomic orbits act as if they have no resistive In the broadest terms, there are three generally accepted "mass." That is, normally, free electrons will emit electro­ parameters for measuring the performance of computer sys­ magnetic radiation, and thereby lose energy, if they deviate tems: from a linear trajectory or change their speed of motion. But 1) processing poweras measured by instructions execut­ this is not true for electrons bound to atomic orbits. (If it ed per second; were, all atoms and molecules would rapidly collapse to 2) computer storage accessible at a particular speed; and infinitedensities and absolute-zero temperatures.) 3) data rate of computer and communications links. In effect, orbitally bound electrons act as perfect super­ conducting coils which operate without any loss-pure "re­ Supercomputers actance" with no resistance. As a result, bound electronscan Just before the fu ll "mini" and "micro" revolution hit, in act as perfect transformers for upshifting and downshifting 1976 the U.S. Army decided to define a general procedure electromagnetic wave frequencies without any detectable loss; for evaluating computers given apparentlyrapid rates of com­ without any radiation. This means that atoms and molecules puter technology advances at the time: can engage in photon "cross-talk" with each other without A survey of various Army laboratories showed that beingeasily overheard. This photon cross-talk becomes most problems with over 50 nonlinear simultaneous differ­ efficient in the case of living matter, as seen in the experi­ ential equations were considered overly expensive to ments of Prof. Fritz Popp of West Germany. · solve by digital techniques because of excessive com­ The "free"Boson Cooper electron pairs in the supercon­ putation time. . . . For problems requiring 600,000 ductor actin a similar fashion. And this means that very small operations/cycle of the highest frequency, effective energies (femtojoules) can achieve measurable "cross-talk," bandwidth of present-day large-scale digital com­ quantum tunneling, on the macroscopic scale of the Joseph­ puters is less than 170 hertz. However, from our sur­ son junction and thus reduce the "quantum of action" of vey, there are real-time requirements for computers turning on and off a gate-a switch-by more than a billion which can process problem bandwidths of at least 10 times. This billionfold reduction in the operation energy of kilohertz and approach a performance capability of the basic element of the computer, the gate, permits a much 600 million operations per second-three orders of greater "population density" of gates and therefore a greater magnitude faster than available computers. concentration of computing power. IBM researchers have shown that, utilizing Josephson And while this capability has now been reached by the junctions, one can construct all of the elements needed for a largest supercomputers , these machines cost millions and digital computer: logical functions and memory. IBM, in millions of dollars and only a handful are in operation. fact, produced a whole family of Josephson devices known Among the areas that were identified in this Army study of as currentin jection logic (CIL) and based on low-temperature major high-power computer applications were signal pro­ superconductors. Gates in the Josephson technology are called cessing, weather prediction, radar, sonar, seismology, superconducting quantum interface devices (SQUID). biomedical analysis, image processing, simulation, power Table 1 compares CIL to the currently fastest semi­ guide systems, and real-time automatic control . conductor technology u�ilized in supercomputers, the ECL­ High-speed computation in digital computers is mea­ III. It will be noted that this CIL low-temperature supercon­ sured as the number of operations a machine can execute ducting technology has a very low gate density. This results within a given time-period. Usually this is expressed as fromthe coolingproblems of low-temperature superconduc­ millions of instructions per second (MIPS) or millions of tors. The new, high-temperature superconductors have im­ floating point operations per second (MFLOPS), depending mediately transformed this entire circumstance. on the computer manufacturer. In either case, what is being IBM demonstratedwith the low-temperatureCIL Joseph­ measured is the product of the basic machine cycle time and son-junction technology that random access memories the average number of operations that can be performed in (RAM), having gate densities in the same order as the exist­ a machine cycle. ing semiconductor counterparts, were20 times faster with an For example, an IBM 3033 has a basic machine cycle overall thousandfold increase in computing power. of 57 nanoseconds (17.5 million cycles per second), and Ironically, IBM's huge Josephson junction research ef­ IBM says that it takes 3.9 cycles to perform the average fort over the past decade convinced most other computer instruction (0.256 instructions per cycle), giving a result of companies that there was little that could be done to make 4.5 MIPS. ultra-low-temperature Josephson junctions practical. As a The first of the more recent CRAY supercomputers, in result, IBM has, until recently, had the comer on Josephson contrast to the decade-old IBM 3033, has a cycle time of junction R&D. Now, with the shock-like emergence of high­ 12.5 nanoseconds, with scalar operations taking 4 cycles temperature superconductors, IBM may once again become and vector operations taking 0.6 cycles to yield 20 and 140

22 Science & Technology ElK June 19, 1987 MFLOPS , respectively. The instruction rate is a function of the cycle time and TABLE 3 execution efficiency. Cycle time is determined by the tech­ Rough estimate of characteristics for new nology utilized to build the particular computer and the supercomputer based on hig. h-temperature complexity of its circuitry. Execution efficiency is deter­ Josephson junctions mined by the actual problem tested (instruction stream) and Performance i,ooo FMlOPS the design architecture of the machine. CPU cycle time 120 picoseconds There are no fewer than several dozen quite differently Cache capacity 1 megabyte architected supercomputers now on the market, as well as Main RAM capacity 1 megabyte scores of "scientific processors." The differences among I/O rate (max) 1,000 megabits per second these machines comes from differences in the way they carry Operating power 100 kilowatts out parallel computations. Volume of mainframe cubic meters Given that there is a fixed speed limit of circuit tech­ 4 Bit width 512 nology available to all machine designers, designers have Address width 512 focused in on various methods of executing multiple in­ structions simultaneously in separate, parallel computing elements. All the computers referred to in this section the­ oretically could execute at least one instruction permachine cycle, but by and large they fall far short of this ideal. In Development of new basic technologies based on new theory, some machines could produce much faster results, physical principles for faster circuits is the key to increasing since they are constructed to have multiple execution units processor power. Existing computers are fabricated largely that independently and concurrently process machine in­ out ·of silicon semiconductor devices known as integrated structions. circuits (ICs) or chips. Theoretically, the maximal limit to parallel processing A number of different processes are used to construct speed is never attained for any length of time, because in and manufacture semiconductor chips. Broadly speaking, practice, instructions are not executed independently. For thesilicon semiconductor families are known as metal oxide example, the IBM System 360 Model 91 (195) has four semiconductor (MOS) and bipolar. MOS family members different types of execution units linked simultaneously to include CMOS, NMOS, VMOS, HMOS , and others. His­ process 16 words or instruction for a maximum aggregate torically, the MOS technologies have been slower but con­ throughput of 70 MIPS. Interdependence of one instruction sume less power than their bipolar counterparts. The bipolar on others is much more the rule than the exception, and an family contains technologies known as TIL, STIL, LSTIL, estimated 60% of the Model 91's circuitry exists only · to ECL, 12L, FAST, AS, and LS2 technologies. detect and resolve interdependence problems. In benchmark Thecircuit speed is given by the time tlelay incurred by tests, the system attained only 14 MIPS on scientific ap­ a signal passing through the elementary component of digital plications and 3 MIPS on more general job streams where logic, which is known as the gate. The so-called natural conditional branching and interrupts further affected gate differs for different technologies and is defined as the throughput. Boolean operation that requires the minimum number of transistors while giving maximum speed. Table 2 summarizes the principal gate characteristics of ' many of these technologies. TABLE 2 By and large, the logic circuits of supercomputers are Gate characteristics implemented in ECL integrated circuits. Table 2 shows that the price paid for this high-speed technology is both high Density power�onsumption and low gate density. Both of these Gate Speed- (gates Technology delay Power power per factors will have to be significantlyimproved by any future (year) Function (ns) (mw) (pJ) aqmm) circuit fabrication technologies. There is, in fact, a rela­ i' ECl-1II (68) NOR 1.1 60 66 30 tionship betweenthe two since powe consumption-heat­ ECl-1000(71 ) NOR 2 25 50 30 limits gate density. SrrTl (70) NAND 3 20 60 30 High-performance ECL chips consume and therefore lSrrTl (72) NAND 10 2 20 30 dissipate so much heat that special ' precautions have to be NMOS (73) 100 1.1 10 130 taken to keep circuits within operating temperature range. These cooling systems add significant bulk to computer architecture. The largest IBM machines were water-cooled ns = nanosecond; mw = milliwatt; pg = picojoule;sq mm = square millimeter and the latest CRAY is cryogenically cooled. The CRAY-

EIR June 19, 1987 Science & Technology 23 And the Cu06 octahedra would be linked at each oxygen. Each barium and yttrium would then be surrounded by 12 oxygens. The layered geometry of But x-ray and neutron diffraction studies have shown that the new superconductor unit cell does not conform to thenew superconductors this simple picture because some of the oxygen positions are vacant. For example, all of the oxygens in the plane 0 The geometry of the new 90 K superconductor of the yttrium atom are miSSing. Thus, the yttrium is Y -B�-Cu3-0 is related to an important class of minerals surrounded by eight-instead of 12-oxygens. And the known as the perovskites. These minerals contain three copper atoms on either side of the yttrium are surrounded oxygen atoms for every two metal atoms. The yttrium­ by only five oxygens, making a square pyramid . The yt­ barium-copper-oxide has six metal atoms in its unit cell. trium can be thought of as being sandwiched between two Therefore , if it were an ordinary perovskite, there would slightly puckered two-dimensional sheets of copper and be nine oxygens. But, in fact, most samples have between oxygen atoms . This is actually layers of square pyramids. 6.5 and 7 oxygens. That is, one quarter ofthe oxygens are This feature has never been seen before . missing in the case of the new high-temperature supercon­ Oxygens are also missing from the top and bottom ducting ceramic oxides. copperlayers of the unit cell. The vacancies occur in some These missing oxygens transform what would other­ of the equatorial positions of the Cu06 octahedra, leading wise be an ordinary three-dimensional crystalline lattice to the formation of square planar arrangements (Cu04) into a unique, two-dimensional layered structure . The unit that are perpendicular to the other copper-oxygen sheets . cell can be thought of as three cubes, piled on top of one The bariums are surrounded by 10, not 12, oxygens. another. Each cube has a metal atom at its center: barium Actually, the crystal structure is much more compli­ in the bottom cube, yttrium in the middle one, and barium cated than this simple description, much like the case as in the top one. At the comers of each cube are copper seen in the recently developed quasi-crystals. For exam­ atoms. In an ideal perovskite, each copper would be sur­ ple, some of the vacant or oxygen-deficient sites are oc­ rounded by six oxygens in an octahedral arrangement. casionally occupied by oxygen, but in an arbitrary man-

1 is literally a computer built inside an air conditioner, with supercomputer chips-both general purpose and specialty each circuit-board frame containing freon pipes. The heat­ items. According to leading computer design experts , devel­ sinking of ECL circuits adds to the already low density opment of such a new supercomputer is currently the main permittedfor fabricated integrated circuits. This bulk further bottleneck to incorporating a large number of circuit minia­ limits systems' speed, since electronic impulses traveling at turization techniques currentlyavailable . Computers must be the speed of light will move only 1.5 centimeters in 100 utilized in the design of these super-complex integrated cir­ picoseconds. cuits . But the existing supercomputers fall short of the re­ quired computing power needed. The imminent high-tem­ Most probable development strategy perature Josephson junction supercomputer would fitthe bill The first thing that will most probably be done with the by more than an order of magnitude for what is required in new high-temperature Josephson junctions is to construct a chip design. Overall, experts expect that a millionfold in­ new generation of supercomputers. Table 3 gives a rough crease in single chip power should result with the combined cut at what this would look like. The hardware performance effects of incorporation of Josephson junctions into the chips of thisJosephson junction-type supercomputer would be about and the realization of the first $eneration of Josephson junc­ 40times greaterthat than of the existing top-of-the-line CRAY­ tion supercomputer. XMP. More significantly, the much longer bit widths, 512 as opposed to 64 for the CRAY, and address widths, also SDI applications: plasma electronics 512, means that the existing barriers to fast program com­ While more conventionally minded physicists have been position and parallel processing would be removed. This . increasingly perplexed by the · new high-temperature super­ would increasethe computers' applied computing power ca­ conductors , one community of scientists-plasma hydro­ pabilities by a further several orders of magnitude. dynamicists-have had their full expectations realized. These This new supercomputer would then providethe essential scientists have long predicted that "quantum phenomena" are tool for design and production of a new generation of chips, not fundamentally acausal; that eventually, man could master

24 Science & Technology EIR June 19, 1987 Barium • Oxygen • Copper o �Y� ttrium

nero Sometimes oxygens are found at other, unexpected cells normally are stacked in a Ba-Y -Ba-Ba-Y -Ba fash­ positions in the lattice. Distortions also occur, such as in ion, but sometimes a yttrium is inserted between them. the case in which the yttrium "cube" is crushed relative to Sometimes the smallest face of the UIntcell , most usually the barium cubes. This appears to occur because yttrium a perfect square, is distorted veryslightly into a rectangle. is smaller than barium. And that may explain why the This particular distortion occurs when the ceramic is pro­ oxygens are missing from the yttrium horizontal plane. cessed at high temperatures and then cooled. And it would That is, there is no room for them. appear that for the firsttime macroscopic geometry is seen Many other interesting crystal lattice "defects" and to determine quantum behavior, i.e., the so-called crystal "distortions" have also been found. For example, the unit imperfections are producing superconductivity.

quantum phenomena with a sufficiently advanced hydrody­ transforms itself into filamentary, "force-free" vortex struc­ namics. And this hydrodynamics would be closely related to tures. This permits the plasma to conduct huge currentdens­ that found in energy dense plasmas, such as those explored ities without significant dissipation---J.like that of a supercon­ for hydrogen thermonuclear fusion energy generation. ductor. In fact, Dr. Robert Moon of the Within the high-temperature su�rconductor, it appears and editor of the International Journal of Fusion Energy, has that internal waveguides are self-generated by the flow of the long held that these type of materials, the doped ceramic electron current. These waveguides appear as slight distor­ oxides and rare earth doped ceramic oxides in particular, held tions in the lattice and form into a rpulti-layer, filamentary great promise for high-temperature superconductivity. Dr. geometry-like that seen in the plasma pinch. Moon pioneered the use of these materials in a more limited But this similar behavior goesmuch furtherthan that of a application in terms of developing materials for "cold cath­ simple analog. The new superconducting materials offer the odes." Dr. Moon has developed an extensive theory for a ideal external and internal interfaces for operating both deli­ causal, "hydrodynamic" quantum theory derived from the cate diagnostics and sensors, and, mbnstrouslypowerful re­ early 20th-century work of Louis de Broglie and the later lativistic beam weapons systems. The new superconducting work of David Bohm. materials offer potentialities for eledtromagnetic "machine". Dr. Moon's work is also based on the most provocative interfaces similar to that seen for theapplication of teflon to applications of plasma hydrodynamics to "elementary" par­ "greaseless" pumps and no-stick cookware.But in this case, ticle physics carried out by Prof. Winston Bostick of the New it is high-temperature plasmas, and high-energy particleand Jersey Stevens Institute and Los Alamos National Labora­ laser beams that are interfaced with the minimum of "stick" tory. In fact, the new high-temperature superconductors ap­ and resistance. pear to function in a manner completely analogous to that of More specifically, the new high�temperature supercon­ energy-dense, self-organized plasma pinches. When intense ductors would provide the ideal materials for all essential electrical currents are passed through a plasma, the plasma interfaces in high-energy particleacc �lerators and lasers. The

EIR June 19, 1987 Science & Technology 25 Make Norway part of SDI! the

Now is the time for Norway, with its unique geographical position and membership in NATO, to play a decisive role in the defense of the Free World.

Norway actively partaking in the Strategic Oefense Initiative (SOl) would stabilize the strategic situation in Europe for a considerable time. Building the Norwegian part of the SOl also leads to unimagined economical spin-offs - in itself the best defense.

We, Norwegian patriots, invite you to actively lobby to make Norway part of the SOl.

Geir Arne Hanssen Arne Roen 0yvind Hogsnes T -E Thomassen System consultant, Hermod Christensen A/S Electronics engineer Solheimsvik, Norway network Oslo, Norway T8nsberg, Norway Oslo, Norway Wilhelm Schreuder Eldar Hareide Einar Braastad Fjell-Heisen, Ole Haugan Hareid, Norway Oslo, Norway Tromss, Norway A/S Kunstbetong When in TromsB. FAberg, Norway Klaus Sivertsgard A. H. Strandene see the town from abo\le- by the Cable Car! Oslo, Norway Engineer, Oslo. Norway

26 Science & Technology EIR June 19, 1987 advance in reflectingsurface technology would be stunning. make possible femtosecond-a thousandfold increase­ Mirrors , beam splitters, beam multiplexing, and microwave temporal resolution. This would open up the possibility of cavity operation could be improved by many orders of mag­ single photon "sectioning" with interferometer studies. nitude. Take holograms, for example. The resolution of a The same holds true for much lower energy operation of three-dimensional hologram-literally a three-dimensional delicate diagnostics and sensors. picture, usually recorded and generated by coherent laser For example, with high superconductingphotodiodes and light-is fundamentally determined by the coherence baseplates you would be able to easily detect single photons, length-not the wavelength of the light that is utilized. even in the infrared. We now need an input of about 1015 Given the long coherence length of biophotons measured infrared photons to get a single bit for the image. Potentially, by Dr. F. Popp, the self-alignment, etc., we could get we could have photodiodes that detect one infrared photon­ everything with surface scanning, and throw away our x­ a potential increase in resolution, in simple linear terms, of ray machines. This is because these longer wavelength, 15 orders of magnitude ! very coherent biophotons are able to transit significant The potential for streak cameras, currently utilized most distances through tissues, if not the whole body . If high extensively in nuclear weapons and inertial fusion work, resolution holographic interferometry could be performed would be about three orders of magnitude increase in tem­ with the detection capabilities opened up by high-tem­ poral resolution. The Streak Camera permits there to be a perature superconductors, we could look inside the body time-integrated picture of a photon input, like x-rays. For just by scanning the surface of the body or tissue. example, if during the implosion of a laser fusion target, we Many of these potential applications may take years to record the x-ray output of the imploding plasma on a moving develop. But the possibilities opened up by the new physical film, we can get a streaked motion picture of the implosion. principles-and some old, overlooked principles-mani­ The existing Streak Camera have picosecond resolution­ fested by the high-temperature superconductors , are rapidly one-trillionth of a second. The new superconductors would expanding.

execution efficiency: the number of central processor cycles needed on the average to execute an instruction.

gate: a hardware implementation of a Boolean operation built Glossary out of transistors or Josephsonjunctions. In other words, a series of yes/no switches or decision points. (IC): bipolar: a transistor consisting of a sandwich made of two dif­ integrated circuit an electrical circuit that integrates a ferent kinds of semiconductors-the P and N semiconductors . large number of gates on a single slab of material , silicon in the case of semiconductors . Boolean operation: operations like AND, OR, NOT, and so forth . The fundamental "connectives" of logic first worked out interrupt: an interruption in the execljltion of a program that in the modem period by Leibniz. Digital (binary)logic, Le. , yes occurs at unpredictable intervals; interrupts are caused by such and no , or one fold of the circle-circular action acting on events as program errors or input/output events.

circular action-is fundamentally determined by triply reflexive logic: the part of computer circuitry that performs logical or rotational action, as Leibniz showed for the case of possible 256 Boolean operations. connectives for the case of threeoperants . natural gate: the logical o�ration that can be formed by using byte: 8 bits of data-L e., 8 yeses or nos , Le., an 8-digit binary the smallest number of transistors . number. In base 10, the maximum 8-digit binary number is equivalent to 256. parallel execution: the ability to simul1laneouslyexecute two or more complete instructions. conditional branching: a computer instruction thatredirects the execution flow based on evaluating a particularinstruction. random access memory (RAM): memory that can be read and written at equal speed independent of location; location-depen­ convolution: a mathematical operation involving the integral of dent memories are serial in access. the product of two functions at different times or positions. scalar operation: a single element of data, in effect a zero­ (elL): current injection logic an IBM family of Josephson dimensioned array . junction superconductingdevic es. semiconductor: a substance with electrical-conductivity prop­ cycle time: the time period for the smallest complete cycle of a erties intermediate between a metal and an insulator. central processor logic; the fastest instruction usually takes one cycle to complete . vector operation: a one-dimensional array of data.

EIR June 19, 1987 Science & Technology 27 ITillFeature

The historic 1988 election: 'a republic ifyou can keep it'

For the world, the 1988 u.s. presidential election will be the most important strategic event since the advent of the nuclear weapon in August of 1945 . For the democratic republic of the United States, that election will be the most important since the presidential election of 1860. The person who will be inaugurated as President on Jan. 20, 1989, will also commemorate the bicentennial of the inauguration of President George Washing­ ton, whose presidency became known in world history as "the spirit of 1789." That person will either be the last President of the United States, or one whose actions in office, like those of his illustrious predecessor George Washington, will dominate events for the next two centuries to follow. Who that person will be, is the single, most important maUer, on which your life and that of your descendants depends. To a very large extent, who that person will be, will depend on the kinds of criteria of judgment the people and the institutions of the United States will employ in selecting their next President. Will the peopleand the institutions ofthe United States employ the right criteria and make the right choices? Do they still possess the moral fitness to identify and select what is right? This remains to be seen in the next 17 months. One thing is certain: They still have the opportunity to make the right choice, given that the Constitution which preserves their libertiesis still, at least nominally, in operation, and given that one public figure, Lyndon H. LaRouche, has articulated and put forward policy proposals adequate to meet the crisis. When the Philadelphia Convention, on Sept. 17, 1787 finally approved the Constitution of the United States, the venerable Benjamin Franklin remarked to the participants that the freshly drafted document, for the first time in history , had given them a Republic-"if you can keep it," the wise old man added. It is true again today, as it has been during all past major crises. The mere existence of the Republic does not guarantee national happiness or success. It only guarantees that society and its members can strive to discover and implement the

28 Feature EIR June 19, 1987 Three fu ndamental issues confront the American voter in 1988: the str:ategic crisis and the related re£luiJ-en:!en,ts Mars colonization effort; the col/apse of the economy; and the AIDS epidemic. Why has LaRouche been the Eastern Establishment has been dead wrong? right policies, if they are so inclined. It does not guarantee Harriman-controlledDemocratic Nalional Committee, is op­ that they will discover or will choose such policies. They will erating for one primary purpose: to reny LaRouche the pos­ do so, only "if they can keep it." sibility of seeking the Democratic nomination next year. For Strauss, Harriman, and Paul Kirk this objective is more The issue of LaRouche important even than leading the Democratic Party to victory Already, Lyndon LaRouche, a "man of providence" for in 1988. some, a "political extremist" for others, "the most dangerous All this extraordinary concern f the old Establishment man" to yet others, easily the most controversial political over LaRouche, derives from LaRouche's success-and the personality in the world, unquestionably the most seminal, Establishment's failure-to accurately identify, well in ad­ original thinker among living statesmen, and certainly the vance, the explosive social crises, the so-called "issues," only living credible authority on economic science, is the which will dominate 1988, and the policies required to re­ central issue of the campaign. dress these crises. These "issues" ar : 1) the strategic security Though LaRouche was the first to declare his intention to crisis, 2) the financial and economic crisis, and 3) the growth seek the nomination of the Democratic Party, the newspaper� of the AIDS epidemic. and other mass information media systematically omit his A derived; but all-important iss e, is the Eastern Liberal name from the roster of Democratic nominee candidates; Establishment's own failure to iden ,ify these crises, let alone although, since the spring of 1986, he enjoys greater "name supply remedies, as contrasted to LaRouche's own success­ recognition" than all the other declared Democratic candi­ ful identificationof both the problemsand their solutions. dates, he is systematically excluded from all opinion polls This so-called "LaRouche issue," i.e., the question of that reach the public. how come LaRouche was right and the Establishment was The Republican administration's Department of Justice wrong. will play a much more decisive role in the political has illegally, clumsily, and so far unsuccessfully, thrown all deliberations of 1988 than most personscurrently suspect . the resources of arbitrary power in a mad dash to destroy any In the reports which follow, we analyze the fundamental group of persons and associations who openly support La­ issues confronting voters in the 1988 campaign, and present Rouche for President of the United States. the positions-or lack thereof-which the various con­ The Democratic Party, through the Bob Strauss/Pamela tenders for the presidency have tak ri on them.

EIR June 19, 1987 Feature 29 The top issues of the 1988 campaign

nized its armed forces on the basis of the proposition that the The strategic security crisis nuclear weapon is not the "ultimate" weapon, and war in the The Soviet Union, pursuing a well-defined imperial war "nuclear era" is not "unthinkable." In a sense, all the accu­ plan, is currentlyattempting to dislodge U.S. influence from mulated strategic, economic, and public-health problems ex­ the continents of Europe, Asia, and Africa;to tum the south ploding in the 1988 election, are the combined resultof two of the American continent into a bloody terrainof instability; distinct sets of long-term policies decided on during 1966- and to transform Canada from an ally of the U.S.A., into a 68, by the policymaking elites. of the United States and the military problem for the U.S .A. Once these Soviet objectives Soviet Union, respectively. . are accomplished, and the continental United States becomes During the 1966-68 period, the U. S. Establishment, bas­ thus isolated fromthe rest of the world, Moscow intends to ing itself on the wrongpresumption that nuclear are the "ul­ proclaim her imperial supremacy either by imposing her timate" weapons and that war is no longer "thinkable," com­ wishes on the United States, or, should the United States mitted itself to a long-term policy of subversion of the insti­ resist this, by destroying the United States militarily. tutions of the sovereign nation-state . Adopting the agenda of Whether Moscow's imperial drive can be stopped, will British "philosopher" Lord Bertrand Russell, the Western be decided by the course of the 1988 presidential campaign. Establishment resolved on pursuing a "New Age" of "post­ The great global challenge of the coming decade and industrial society," in which both the legal and institutional longer, is to save civilization fromthreatened destruction, by forms of sovereignnation-states would gradually be blurred , containing the Bolshevik dynasty's Russian Empire, and to and eventually obliterated underthe mediation of the United accomplish this by means which assure the highest probabil­ Nations and similar supranational arrangements. ity of war-avoidance. From this vantage-point, our recent 20- The argument, as formulated by BertrandRussell and his year driftin economic and foreign policy has been, cumula­ adherents, principally the Pugwash Conference movement, tively, a disaster. was: "The might of the two superpowers is their nuclear We could not defend our nation for long, once the Soviet arsenals. Given that nuclear arsenals cannot be used, these strategic sphere of influenceextended throughout Asia, Af­ nuclear arsenals are also the source of hidden impotence of rica, and Western Europe, and turned South America into the superpowers, since they define what the superpowers bloody ground. The well-being of these allies and friends, as cannot do. Therefore, with the help of an enlightened inter­ a whole, is our essential first line of strategic defense. Here, national administrative bureaucracy, nuclear weapons and our foreign policy has become, generally speaking, a wors­ the threat they pose, can, ironically, through the medium of ening disaster. 'arms control negotiations,' become the instrument through This strategic disaster has become evident during the 40th which the superpowers can be made to gradually and volun­ year since the development of the compact thermonuclear tarily give up important predicates oftheir sovereignty. until, bomb, which, unlike the bulky A-bomb, could be delivered eventually, such sovereignty becomes meaningless and emp- at long distances by intercontinental-range ballistic rockets. ty." It will be the 30th year since the U.S. Establishment pro­ This is what the Establishment adopted as its commitment nounced the rocket-delivered thermonuclear bomb to be the during 1966 and 1967, and began implementing with the "ultimate weapon," which would make war "unthinkable." 1968 election. It produced the SALT I and II agreements, the It is now well known among professional military circles, ABM Treaty , the test ban treaty; the demonetization of gold and will become widely known among broad layers of the by President Richard Nixon; the termination of the U.S. population during 1988, that the Soviet Union has reorga- space program and the large-scale de-industrialization ofthe

30 Feature EIR June 19, 1987 United States beginning with the Nixon years. in domestic and international markets, a bubble in the sense The crisis of 1988 derives from the fact that the Russian of such past events as John Law's Mississippi bubble, or the Establishment has adopted, under the inspiration of Marshal hyperinflationarybubble of 1923 Germany. The rateof growth Nikolai Ogarkov, the war economic mobilization plan known of physical output per capita has been slowing, and has turned as perestroika (transformation, restructuring), which reflects negative, relative to the growth in ! per capita debt-service a different attitude toward nuclear weapons and toward the obligations. To a large extent, this bubble, i.e., the immense question of war-fighting. discrepancy between inflated financial paper representing The roots of today's perestroika can be traced back to a claims on physical product, and the shrinking physical prod­ plenary session of the Central Committee of the Soviet Com­ uct itself, is the result of the 1966-68 strategic decisions to munist Party, at the end of 1966, when the late LeonidBrezh­ steer the United States in the direction of "post-industrial nev read a speech given to him by then Russian Chief of the society." In conformity with those decisions, there has been General Staff Marshal V.D. Sokolovskii, the patron and a spectacular decline in the number· of persons employed in teacher of today's Marshal Ogarkov. In it, the conclusions the production of industrial or agricultural products, an ac­ were announced that 1) nuclear weapons are not "ultimate," companying decline in per capita productivity in the tradi­ but are simply "means of mass destruction," which, eventu­ tional "smokestack" industries, and a corresponding reduc­ ally, can be replaced by more efficientmeans ; 2) war, in the tion in net physical output. nuclear age, must be the total , integrated military attitude of More recently, since Paul Volcl�er's and Jimmy Carter's the state, in which economic, cultural, scientific, technolog­ policy of accelerated indebtedness through high interest rates, ical, diplomatic, conventional and unconventional military , inaugurated in October 1979, the emphasis on "imaginative" and all other resources and functions of the state are subor­ forms of financial leveraging to pyramid high-priced credit, dinated to the long-term objective of defeating the adversary. and theexacerbation of this trend since 1982, have createda This speech put forward a new concept of "total war" in the situation, in mid-1987, in which a financial crashduring 1987 nuclear era, which has been the guiding agenda of Russia appearsinescapable . The use of "creative"and "imaginative" ever since. methods, heretofore, as a way of evading the threat of a The 1988 elections will be held after it will have become chain-reaction financial collapse, has been, since 1982, the evident, not only to the Establishment, but also to the broader principalcause of the worsening of the problem. Further use layers of citizens, that the U.S. Establishment made a colos­ of such "creative" and "imaginative" ruses, ensures the trig­ sal errorduring 1966, whereas the Russians, during the same gering of a worse collapse, than were the collapse to occur year, made a decision which may well enable them to estab­ immediately. Attempts to delay the collapse by such ruses lish an unchallenged, "one world empire," but a world empire could have fatal national-security effects. as envisaged by the imperialistsof Muscovy, not by Bertrand The "crash" will occur as a matter of reversed financial Russell-influenced romantics like Cord Meyer and his like­ leverage, domino-fashion. A significant perturbation in any minded friends in the Ivy League wing of the CIA. sector of the financial markets of the OECD nations would bemore or less sufficientto set offsuch a chain-reaction. The attempt to plug holes in certain stotk markets, and so forth, could not possibly cover all of the holes now opening. Also, The financial crisis as the costs of postponingthis collapse, during 1987 to date, There is a $17-18 trillion world debt pyramid, already illustrates, we are destroying vast financialresources in these larger than the world "Gross Product," and growing at an stop-gap measures, resources better left intact to be used for accelerating rate; world physical output from industrial and fostering a recovery . agricultural activities, measured in value-added content, is So far, as Paul Volcker's refusal to serve at the Federal shrinking. Most of this financial bubble is concentrated, not Reserve indicates, there is no agreement, either within the in the indebted Third World, but in the advanced industrial banking community, or in the government, on what to do nations. The United States alone accounts for over $7 trillion about this twin problem of growing world indebtedness and of debt. shrinking output. The absense of policy, and the growing This mass of fictitious paper-including U.S. govern­ prospect that no policy is likely to be agreed on, is driving ment debt-is bound to come crashing down, causing chaos governments and private banks to brutal, "every-man-for­ in the world's financial institutions, massive disruptions in himself," survivalistactions and maneuvers, which have the commerce, manufacturing, and agriculture, and untold suf­ tendency to bring on the financial: and economic collapse. fering to hundreds of millions around the globe, unless the The economic and financialcrisis oflocal, state, and national power of the office of the President is mobilized to enforce government entities and of the private sector, is akin to the the reforms in the U. S. and world economy required for a catastrophic situation pervadingthe 13 original states during dramatic and sustained expansion of world output. 1787 and 1788, prior to George ,Washington's becoming Over the past 20 years, we have built up a financialbubble Presidentunder the new Constitution.

EIR June 19, 1987 Feature 31 The AIDS pandemic Given the millions of persons already infected, and the numberinfected doubling approximately each 8 to 12 months, the AIDS pandemic is established as probably the leading domestic issue of the 1988 campaign, and barring perception of an immediate threat of war, will be rivaled only by eco­ nomic issues, and that only after an imminent financial crash is either perceived, or has actually erupted. AIDS is an evolving complex of primary infections and cofactors , a complex specific to the human species. It is appar­ ently two distinct diseases caused by the same primary infec­ The can te with tion: a blooddisease, centered in the infection of chromosomes and the immune system, and a disease of the central nervous a program: LaRouche system, the latter converging upon death through dementia. Strong concentrations of the infection are also carried in saliva, Lyndon H. LaRouche, Jf. is man who called for a strateg- andother secretions are more or less carriers. ic defense system one year President Reagan officially Its specificpolitical effects are: announced the SDI in March . Two years before any 1) It is a slow-incubation infection, such that, without other political leader was to take a public position on effective biological testing, the infected person may remain the AIDS epidemic, it the centerpiece of his an unsuspected carrier for several or more years prior to campaign platform, t1p·ot'rd"nniit asa "species-threatening" presentation of disease symptoms. disease. LaRouche is the only and political econ- 2) It is probably 99 .9% fatal. omist identifiedinterna tionally his critique of the Bretton 3) No vaccine or cure is likely earlier than five years, Woods financial system, and program to reorganize the even with the most massive effort in biological research, and system to prevent a depression development of a cure could not be seen as a certainty earlier In contrast to the tre,ltme�t than approximately ten years of massive biological research. 1988 Democratic presidential 4) It is the first known infection capable of rendering panicked silence in the mass mankind extinct, possibly within approximately two gener­ paign, except for the V"','''>I'VI1�l article describing him as a ations, unless either a cure is developed, or measures of "political extremist," and to him outlandish poli- isolation of carriers contain the spread of the infection. cies which have nothing to do his actual beliefs. Those It would be a fair estimate, that even if we launched who so fear and hate him, are appropriate programs immediately, and presuming t�at we ing on the very crisis which refuse to tolerate the proposal to introduce euthanasia as a We present here a way of reducing medical costs, we must expect that the com­ National security: bined direct and indirect costs to society will reach as high as LaRouche is considered by 20% of real national income. Each year we delay necessary the Soviet leadership to be actions on biological research and testing-centered measures the intellectual authorof the of isolation, the forward costs mount at a rapid rate. Strategic Defense Initiative Lacking more precise census through testing, govern­ (SDI), and is unique among ment must estimate that approximately 5 million Americans the candidates in that he are presently infected, with higher percentiles of infection does not accept the myth of and rates of spread in the more densely populated European nuclear weapons as "the ul­ nations. In the United States, the so-called "high-risk" sec­ timate weapon." LaRouche tions of the population are approaching saturation with the has recently called for an infection, and the early stages of a take-off within the non­ all-out Allied effort in the drug-using heterosexual populations are now manifest. field of Radio Frequency W , citing evidence that the The role of "low-risk" routes of transmission will in­ U.S.S.R. is way ahead in this '''''''llU�IlVJ;Y and that deadly RF crease in importance, as the infection evolves its adaptative pulses could be delivered NATO targets not by bal- qualities, and as the density of the percentile of infected listic missile, but by a terrorist with a truck. persons increases. At levels of 10-15% of the population LaRouche has prevent the decoupling of infected, according to computer studies of known factors, and opposes any "zero-op­ the entire population enters a state of high risk. tion" treaty that would U . S. weaponry or personnel

32 Feature EIR June 19, 1987 from the continent. He has characterized recent Soviet offers on large-scale "Great Projects" in the Third World. He cal­ as "one of wily Soviet Marshal Nikolai Ogarkov's really culates this could create 10 million American jobs virtually clever strategic tricks," whose acceptance would lead the overnight. West into "virtual strategic suicide," as the Soviets prepare AIDS: In an Oct. 4, 1985 release announcing his candi­ to deploy their own SDI. dacy for the 1988 Democratic presidential nomination, LaRouche declares, "There has to be a better way of LaRouche underlined the threat of the AIDS epidemic, which avoiding nuclear war, than surrendering, inch by inch, to he called the leading issue that every serious candidate must expansion of the Russian empire ....What most of you face. "The popular demand for massive action against the know by the name of "Strategic Defense Initiative is the key spread of this deadly disease, will mgger an explosion of to thatbetter way. " traditional American moral and scientific values," he wrote. Invoking the model of FDR's 1939-43 economic mobi­ In 1974, LaRouche commissioned a study which showed lization that won World War II, LaRouche says, "My solu­ that the economic policies then being pursued by Western tion is a policy of 'peace through strength' . . . the policy governmentsand financialinstitutions would result in a grad­ which President John F. Kennedy was to present in the ad­ ual build-up in death rates from the combined effects of dress he would have delivered on the evening of the day he famine and epidemics, into the 1980s, followed by a zooming was assassinated. This includes not only military strength, death-rate from these causes beginning approximately 1987. but also cultural, political, health, and economic strength, The study emphasized that under such conditions, new spe­ and greatly improved internal security against irregular So­ cies of global pandemics would erupt. viet forces such as terrorists, drug-trafficking, and spetsnaz." LaRouche endorsed the 1986 campaign in Californiafor Economic policy: LaRouche is one of the few living Proposition 64, the referendum whic'- called for public-health economists who represent the economic policy on which our measures to stop the spread of the AIDS epidemic. "Gay republic was based: the policy which Alexander Hamilton rights" groups and a bevy of Hollywood movie stars, led by named "the American System of political-economy." The Liz Taylor, formed a well-funded lobby, under the slogan economic forecasts which LaRouche and his associates have "No to Prop 64/StopLaRouche !" which succeeded in defeat­ produced, are the only accurate forecasts published by either ing the referendum in the November election-for the time governmentalor private agencies during the past seven years. being. Known as an ardent opponentof the austerity condition­ LaRouche advocates an "open-ended budget" and inter­ alities of the International Monetary Fund, LaRouche is the national cooperation for a "crash biomedical research pro­ author of the "Operation Juarez" plan for reinstituting the gram" and a worldwide upgrading of sanitation, nutrition, principles of the Monroe Doctrine in the foreignrelations of and insect eradication. "To defeat AIDS will require master­ the Western Hemisphere, and for solving the Ibero-American ing the new science of Optical Biophysics-not the sort of debt crisis. 'education' sponsored by homoseJ(ual lobbying groups," LaRouche writes, ''The problem is approximately 20 years LaRouche writes. of bad monetary and economic policies by all western indus­ Science, technology, education: LaRouche emphasizes trialized nations excepting Japan. (We sometimes complain that "four general areas will dominate all important techol­ that Japan is being 'unfair,' because it refusesto be as stupid ogical progress" and education for the next 100 years. All of as the governments of other industrialized nations.)" Yet, these areasare essential steps in LaRouche's design to estab­ LaRouche thinks the "greatest technologicalboom in human lish a permanentmanned colony on Mars by 2027. This "new history" is possible if the United States is unshackled from sortof Apollo project" the candidate foresees as the "driving the folly associated with the "Reagan recovery that never force of technological progress here on Earth," well into the was." next century. "If the Reagan administration continues its present poli­ The four areas cited are: controlled plasma processes, cies, it is certain that the world's economic situation will including fusionpower as a primary energy source; coherent become much worse thanit is today over thesu mmer months," directed energy pulses such as high powered lasers, espe­ leading quite possibly into an October financialcrash of his­ cially for machine tooling; optical biophysics and the revo­ toric proportions, LaRouche writes. lution in biology implied by radio frequency technology and While blasting the Gramm-Rudman budget act and tax its potentialto overcome AIDS; and computer breakthroughs reform as "disasters" that will hasten a crash by slashing in trueparallel processing and analog-digitalhybrid systems. investment in technologically advanced defense industryand He sees the Mars-colonization project as the heartof his basic economic infrastructure, he calls for a sweeping "Chap­ economicpol icy, and writes that under a proper policy, for a ter II-style reorganization" of the world economy led by a hundred years and more to come, the commitment to colo­ low interest-rate, heavy-industry build-up in the United States nization of Mars will be the technology-driver which contrib­ that would feature investment tax credits for basic industry, utes most greatly to improvement of the material conditions agriculture, and infrastructure, and an export policy hinged of individual life on Earth.

EIR June 19, 1987 Feature 33 more effective way to insure strategic cooperation between NATO and Israel," he said. "The mechanism for coordina­ tion need not-and should nht-be highly structured. In fact, the less visible it is, the tJtter." The Kansas Republican ha� endorsed the "zero-zero op­ tion," and has vowed to lead the fight in the Senate for The 'seven dwarfs' continued U.S. aid to the Contras . He has criticized the Reagan administration's decisi ' n to beef up the U. S. military on the key issues presence in the Persian Gulf. AIDS: Dole has staked out a particularly opportunistic position on AIDS. On the one h�nd, he introduced legislation by Kathleen Klenetsky to set up a national commissidn on AIDS; on the other, he has consistently opposed any fbrm of mandatory testing. He EIR has compiled policy profiles of some of the leading argued strenuously against an abendment, proposed by Sen. presidential contenders, Democrat and Republican, on the Jesse Helms (R-N.C.), in May, which would have withheld key issues of the 1988 elections: national security; AIDS; certain federal funds from states unless they required mar­ defense; and science, technology, and education. Although riage-license AIDS testing. the following profiles do not include all candidates and po- Economic policy: Dole's 'janswer" to the economic cri­ . tential candidates, the sampling does prove the point that not sis is fiscal restraint and a bal�nced budget. He claims that one of the "seven-plus dwarfs" running for the Democratic the resources of the United States and "indeed of this globe, and Republican nominations has shown timely recognition are limited"; thus, there is no way for the United States to of the historic issues of the 1988 election-much less any "grow out of' the deficit. Instead, "tough choices" will have graspof the measuresto betak en. The case of Vice-President to bemade . Defense and entitlements will have to be slashed, George Bush, who has so far been running on the administra­ because, even though "about �5% of the total budget is for tion's record, will be taken up in a future issue. interest in the debt, you cannot cut that." Dole thinks Gramm-Rudman-Hollings was "the most re­ freshing budget idea in years ," and advocates a constitutional THE REPUBLICANS convention to draft a balanced-budget amendment. He is affiliatedwith the the National axpayers' Union, the group behind the convention drive. Sen. Robert Dole Dole's economic views hawe led him to work with the National security: administration against two impprtant infrastructure bills this While Senate Majority year: the Clean Water Act, w�ich Dole called "pork barrel Leader, Dole collaborated cloaked as conservation," and the highway bill. with then-White House Chief of Staff Don Regan Rep. Jack Kemp to convince President Rea­ National security: Kemp haI s stated repeatedly that early gan to permit huge cuts in deployment of the sm wouldl be his "highest priority" as the defense budget. In President, and has pleged to make the firstphase of a strategic 1985, he criticized Defense defense operational by 1992. �owever, he has also allied Secretary Caspar Weinber­ himself with Lt . Gen. (ret.) Danny Graham's High Frontier, ger for fighting against which advocates using obsolescent technology for strategic Pentagon spending cuts. defense, rather than "wasting" time and money on the more But since launching his presidential campaign, Dole has "exotic" technologies-i.e., �e far more effective and ad­ wooed the conservative vote by becoming a "hawk" on se­ vanced concepts advocated br Defense Secretary Caspar lected issues. This year, Dole led the fight in the Senate Wein�rger and smo head Gen. James Abrahamson. against Sen. Sam Nunn's attempts to force adherence with Kemp broke sharply with the Reagan administration on the "narrow interpretation" of the ABM Treaty, and to man­ the intermediate-range nuclear force (INF) accord, denounc­ date compliance with SALT II. ing the prospective agreemen as a "nuclear Munich" that Dole's support for sm contrasts sharply with his stand' could imperil the NATO alliance. Kemp sits on the board of on other key national-security issues, including NATO. In a the National Republican Institute for InternationalAff airs, a speechto the National Jewish Coalition April 29 , he endorsed branch of Project Democracy's ational Endowment for De­ a joint Soviet-Israeli proposal to have Israel replace NATO mocracy. The NRIIA has been implicated in boosting Mex­ as America's central strategic ally. "We have to establish a ico's Nazi-communist PAN party, and assisted in the over-

34 Feature EIR June 19, 1987 throw of Philippines President Ferdinand Marcos. derful job," even though the group's report provided ammu­ Economic policy: While he portrays himself as an ad­ nition for the Pentagon's appeasement-minded foes. vocate of "growth economics," Kemp. derives his economic Economic policy: America's economic problems stem ideas from the Swiss-based Mont Pelerin Society. That con­ from overspending, Robertson insisis, and the national debt nection is reflected in his ardent support for "supply-side "reflects public demand for instant �ratification and the un­ economics" and radical deregulation, and specificallyin one willingness of many to deny themselves." He "definitely of his major initiatives, legislation to create "free-enterprize favors" a constitutional convention t@ draft a balanced-budg­ zones" in urban areas. The proposal, which would have elim­ et amendment, dismissing arguments that a convention could inated most regulations, including minimum wage laws, in lead to a wholesale rewriting of the Constitution. "The con­ designated areas, was concocted by British Fabian Society ventional procedure was established by the framers precisely member Stuart Butler, for the purpose of creating "mini­ to take control when a Congress abu es the system," he says. Hong Kongs" in the United States and other Western coun­ "It is the prescribed way for people to regain control of their tries. government." I Similar is Kemp's current"urban homesteading" bill, co­ Robertson used to label America's basic industries "di­ sponsored by Rep. Richard Gephardt. The measure would nosaurs," and recommended against any effort torescue them. remove the federal government from thepublic-housing field, He has changed his tune, and now satysthat the country must by allowing public housing tenants to buy their homes or be reindustrialized. But he has offelied no proposals for ac­ apartments. Kemp is campaigning on a platform that includes complishing this. a return tothe gold standard. Robertson has little to say on the internationaleconomy . AIDS: Kemp favors testing prisoners, immigrants, and On trade, "We should serve due notice on the Japanese and • marriage-license applicants, but thinks it is "apocalyptic" to our other trading partners" that "either give us free and fair term AIDS a worse menace than the Black Death. Voted access to your markets-or we will shut down America's against an amendment, sponsored by Rep. William Danne­ markets to you." He criticizes the IInternational Monetary meyer (R -Calif.), to require AIDS testing of homeless people Fund-not for its genocidal "conditionalities," but for not seeking medical assistance. doing enough to rout out "corruption" among Third World leaders. Pat Robertson AIDS: He opposes testing of prjsoners and immigrants, National security: but favors tests for marriage-license applicants; opposes Robertson is a key part of quarantine, but says AIDS could eve tually become "so dev­ the "religious" apparatus of astating that quarantine could be th only way to get it under Project Democracy, and his control." views reflecthis ties to that Science, technology, education1 Robertson shares many secret government behind of the views of science and technology espoused by "New the Iran-Contra fiasco. He Age" guru Jeremy Rifkin. Rifkin ctaims that industrial and has been implicated in pri­ technological progress increases chaos in the universe, and vate fundraising efforts for that Man must abandon these harm!ul pursuits and return to the Contras. His ties to Is­ a "steady-state" economy. This, Riifinadmits , mean a dras­ raeli intelligence run deep. tic reduction in the world's population. Robertson has fre­ He declares that he's an quently featured Rifkinon his "700Club" TV talk show, and "expert on the Middle East," because "I know personally the also endorsed Rifkin's book EntroPf' He was one of several former head of the Mossad . . . and we have access to people religious leaders who signed a statement, generated by Rif­ all over that region." His Christian Broadcasting Network kin, colUng foc an end to genetic t nOIOgy, runs a radio station in southern Lebanon, allied to Israeli j surrogates. Robertson toes Tel Aviv's line on Mideast policy, argu­ THE DEMOCRA'llS ing that "the so-called West Bank ...is never going to go back to Jordan, or to any other Arab entity," but will "stay under the overall military control of Israel." Bruce Babbitt He wants to reduce the U.S. commitment to NATO, National security: The only Trilateral Commission complaining that "we have so much military presence in member in the race, Babbitt says that "military spending must Europe ....It seems like we ought to be able to deploy not be permitted to go on growing �t the exaggerated pace of those men somewhere else." Robertsonclaims to supportthe the Reagan years." On sm, Babbitt proclaims: ''I'm for SDI, but has also called for defense budget cuts. He has stuffing the genie back in the bott�e," and wants a "mutual repeatedly praised the Grace Commission for doing a "won- moratorium on the development, testing, and deployment of

EIR June 19, 1987 Feature 35 strategic defense. " the fate of our children's the malfunction of a com- Babbitt argues that the "strict intepretation" of the ABM puter. " Treaty is the "only plausible interpretation, and therefore we AIDS: He' favors testing of are already obliged by treaty to refrain from developing and on testing prisoners and testing components of a missile defense." As for anti-satellite es quarantine. weapons, "They should never have been allowed off the Economic policy: Biden is pn)pOlsirlga "new era of eco- drawing board." Babbitt supports a comprehensive nuclear nomic nationalism," which include: legislation re- test ban; limits on the Trident II; and vows to "abide by the quiring 90 days' notice of closings; legislation to stop terms of the SALT II agreement," if elected. corporate raiders; federal to encourage worker own- AIDS: Supports mandatory testing, but only for those ership; and having U.S. "forgive interest and stretch seeking a marriage license. Advocates "explicit" sex educa­ out principal payments" on World loans. tion with emphasis on AIDS "prevention." He favors forcing welfare Economic policy: Babbitt's views on economic issues benefits, and a National ,","'III1.II'i" closely parallel those of his pal, former Colorado Gov. Rich­ Science, technology, and j eOluc:aU4[)n: ard Lamm, who says the sick and elderly "should die and get reallocate federal support for and development from out of the way." He favors cutbacks in entitlement programs; military to civilian purposes. recommends lengthening a means-test for Social Security and Medicare; and welfare­ the school day, stretching the year to 220 days, and reform centered on workfare . merit pay for teachers. Babbitt thinks the key to increasing America's industrial competitiveness lies primarily in management techniques, Rep. Richard Gephardt not infrastructureinvestment. He has proposed greater work­ National security: Ge­ er participation and an "Equity Pay Plan," to allow workers phardt's strategic policy is to take some compensation in company stock. He tells union a rehash of Walter Mon­ workers that economic "reality" will require them to accept dale's. In the first few pay cuts. While governor, he called out the National Guard months of this year alone, to control striking copper workers in 1983. he sponsored measures Babbitt styles himself as an expert on Third World issues. which would leave the ' He chairs a New York Council on Foreign Relations study United States virtually de­ group on V. S. -Mexican relations, which has been principally fenseless: a bill to force the concerned with preventing Mexico from adopting a Peru­ U.S. to keep nuclear tests style solution to its debt crisis. below the one-kiloton lev­ Babbitt's recommendations for Mexico typify the Liberal el; a measure to mandate Establishment's genocidal outlook. He insists that Mexico's continued V.S. compliance with (and by extension, other LDC nations') debt problems stem by eliminating funds for any UlPilN,>n< from "heavy-handed state intervention" into the economy. limits; and a bill to force U.S The solution is "liberalization": closing down state enterpris­ strict interpretation of the ABM es, reducing the public-sector work force, eliminating restric­ SDI limited strictly to tions on foreign investments. He cites Mexican President 50%. Miguel de la Madrid's closure of Fundidora Monetary, "a Gephardt thinks Reagan's of the Soviets as an huge and inefficientsteel mill whose shutdown threw 11,000 evil empire has been harmful." He favors bring­ people out of work," as a model of what needs to be done. ing the Soviets "into the world, moderating the more "The sugar, fertilizer, and petrochemical industries should objectionable fe atues of their state, and getting them be similarly pared." interested in economics in place military competition." He claims that Gorbachov is by the same considera­ Sen. Joseph Biden tions as any V. S. politician, Soviet economic devel- National security: Biden sponsored legislation this year opment is his highest priority. to force administration adherence to SALT II, as well as to His wife, Jane, belongs to Links, whose ties to the "narrow" interpretation of the ABM Treaty. He terms the Soviet intelligence have been in the Senate. administration's "reinterpretation" of the ABM accord "flatly AIDS: He considers AIDS major public health threat, and clearly unconstitutional and beyond the power of the but opposes mandatory testing, in special cases (e.g., President. " drug-users), and contact tracing "It's not worth the cost until Biden castigates SDI as a "Maginot Line that is ravaging we find acure ," says an aide. our economic capital, nuclearizing the heavens and yielding Economic policy: is best known as the author

36 Feature EIR June 19, 1987 of the Gephardt trade amendment, which would mandate the Science, technology, and eOluqiIU(m: President to use import fees, quotas and tariffs, to reduce Challenger space shuttle disaster imports from nations running a trade surplus with the United approach toward America's space

States by 10% per year. with Jeremy Rifkin on v"... "", .... v ..uF,Y and proposed the cre­ He is behind another dangerous piece of economic leg­ ation of a Biotechnology to set limits on exper­ islation: the Gephardt-Harkin farm bill. Based on tight pro­ imentation. No fan of nuclear Gore sides with local duction controls, the measure would essentially make it ille­ New Hampshire's gal to grow food without a government license . It would replace the current system of government price supports, with a scheme in which the amount of a particular crop to be Jesse Jackson grown in any given year would be set by the secretary of National security: agriculture . Selling foodstuffs without a "marketing certifi­ Jackson holds the most no­ cate" would be illegal . The plan would boost food prices by toriously anti-Western 25-50%. views on foreign policy of Gephardt says he will achieve a balanced budget by mas­ any of the current presiden­ sive defense cuts. He was a chief force behind the tax-reform tial contenders . He has had drive, which eliminated incentives for industry to make new kind words not just for the capital investments . He previously supported a freeze on Kremlin leadership, but for Social Security payments, and opposed a hike in the mini­ their terrorist assets, such mum wage, but has backed away from both positions for as Muammar Qaddafi . He political reasons. has a cozy relationship with Science, technology, and education: Gephardt propos­ Fidel Castro . es to free up America's best scientific minds for commercial He backs a nuclear freeze and cOlll)prelllensl research, by slashing the military budget so severely that the ban; opposes the SDI and the MX; defense sector will no longer be able to employ them. defense spending and reduce the in Western Europe . He has been Sen. Albert Gore national Green movement, ajoint National security: Gore attempted to make a name for and the Club of Rome. himself as a defense expert, by becoming an early advocate of replacing the MX missile ' with the smaller, one-warhead Midgetman. He opposes the SOl; insists that the United States adhere to the "strict interpretation" of the ABM Treaty; and has assailed the administration for breaking out of the SALT II Treaty. havoc on the country's black VVVUJla'I.VIl Gore traveled to Moscow in early June to consult with Economic policy: Jackson's top Soviet officials, including Anatoli Dobrynin, Central $100 billion in pension fund assets Committee Secretary for International Relations. According country, and establishing "ecloO()mllC to Pravda , Gore promised the Soviets that the need to im­ view proposed corporate mergers prove U. S.-Soviet relations would take "a prominent place in terms of lost jobs and tax base. in the U.S. election campaign ." should adopt "Japanese-style "',:" ",,, techniques." Gore has been endorsed by longtime Soviet agent Ar­ He wants to create a Security Energy mand Hammer-a business partner of his father. Alliance," linking such states as the United His wife, Tipper, is a member of Peace Links . States, Canada, Mexico, and , and impose a $10- AIDS: Gore adamantly opposes mandatory testing of any per-barrel fee on imported oil. On , Jackson wants the kind, claiming it would waste limited resources which "should United States to renegotiate its eC()I)()mIIC relationship with be focused on those at high risk, who currently must wait as Japan, stating that Reagan's . of tariffs on Japanese long as three months to be tested." semiconductors amounted to a "$300 million dollar Economic policy: Gore voted for the Gramm-Rudman­ snowball at the Japanese inferno ." Hollings balanced-budget bill. He proposes to reduce the AIDS: Jackson opposes all of mandatory testing, federal deficitby increasing economic growth-without spe­ and says the United States "ought moving toward more cifiying how-and says that if that doesn't work, he will research on AIDS development a greater capability to raise taxes and cut spending . He blames the deficiton increas­ test. But it ought to be confidential Jnd it ought to be volun- es in the Pentagon budget. tary . "

EIR June 19, 1987 Feature 37 Ve nice summit is signal to run from the dollar

by WilliamEngdahl

President Reagan, inadvertently or intentionally, indicated policy through "talking the dollar down," the industrial the principal result of the just-concluded Venice Summit world's largest central banks. led by Japan and West Ger­ meeting, in what was later represented as a verbal slip before many, have been forced to intervene to try to stabilize the a June 11 press conference. In response to a reporter's query dollar at a cost of what has been estimated anywhere from on thefuture of the dollar, the President told a stunned world, $70 billion to some $150 billion. "The central banks did a "It could be within reason there would be some lowering of staggering intervention since January and the dollar still its value in relation to other currencies ...." White House dropped 11% against the yen and mark," one London trader press spokesman Marlin Fitzwater told the press corps im­ admitted. mediately after these remarks, "What the President wants is stability of the dollar. In other words, no change." Debt in Venice However, the fact that the United States asked its trading Venice was supposed to agree on how Washington might partners to continue printing money to pay for America's continue borrowing $150 billion a year, to meet its $170 $150 billion annual foreign borrowing requirement, and its billion annual trade deficit and $180 billion (but potentially partners declined, virtually guarantees the end of the dollar's much larger) budget deficit, without raising interest rates, role as principal world reserve currency. The absence of the and triggering overt depression prior to the 1988 elections. privileges associated with that role, i.e., persuading other The dependency of the United States on Japanese credit is nations to invest their reserves in the debt-paper of the U.S. analogous to the dependency of the bankrupt British Empire Treasury, could well bankruptthe Treasury itself. in 1929-3 1 on a bailout from the United States. The London Financial Times declaredin an editorial June In 1986 Japanese investors propped up the Reagan defi­ 11, "Mrs. Thatcher made the right comment on the Venice cit, the indicator of the failure of the "Reagan recovery," by summit by coming home early. . . . There appears to have buying an estimated $60 billion, almost 40% of the total been no productive meeting of minds among the canals." deficit. When a falling dollar began to scare away further They conclude that "time is growing short, because interven­ Japanese investment in the early weeks of this year, New tion on the scale set recently courts a monetary inflation of York financial houses were forced to begin raising interest the late 1970s. The question which Venice leaves on the rates on treasury bonds to lure the Japanese back in for the agenda is whether effective political leadership can be rees­ May 6-9 U.S. Treasury sale. The underlying instability of tablished in time to face the real problems ...." the global economy, which has been aggravated by Washing­ The situation in the wake of the meeting was character­ ton's "dollar collapse policy," was such in the days before ized by one informed West German observer as "not a sum­ Venice that everyone expected the summit to reach a solemn mit, but a crater." Since January, when the U.S. administra­ agreement among the world's most powerful heads of state tion escalated the forced bailout of its bankrupt financial to stabilize the dollar and at least address the underlying

38 International EIR June 19, 1987 economic instabilities. Some financialcircles in WesternEurope and Japan spec­ "It's simply unbelievable that the markets haven't reacted ulate that the failure at Venice and the "bolt out-of-the-blue" more negatively," a well-placed European banker confided appointment of second-rate Wall Street economist, Alan to this writer the day after the Venice Economic Summit. Greenspan, to replace Paul Volcker at the head of the world's "Nothing serious was dealt with on the Third World debt most critical central bank, is partof a "package." The view problem; West Germany refused to give anything, and Ja­ is that the Reagan administration i$ attempting to defy the pan's pre-summit concessions won't fundamentally affect laws of the universe in order to push desperately past the the dollar. Now you have this signal from Reagan which tells 1988 elections without a catastrophic financialcollapse . us that Washington is ready to talk the dollar down again. All There is a major problem. "The second the international expectations were on something coming out of Venice to speCUlative markets get a hint that Alan Greenspan wants to stabilize the dollar. " lower interest rates to save the 1988 election," a leading The $1 trillion debt crisis of the developing sector na­ Danish banker stressed, "that will kill the dollar completely." tions, notably Ibero-America, was one of the principal items And the minute he triesto raise interest rates to keep invest­ of global instability which was expected to have been a focus ment in the dollar from Japan and other creditors, this will of Venice. In addition, some form of joint action to deal with kill the domestic U. S. economy. Leading London financial the collapsing dollar was considered essential. insiders say it is impossible to keep the U. S. financialbubble According to a Danish Radio report from Venice, when from bursting at this stage for more than a few weeks or French President Mitterrand held a meeting with Reagan on months. Most expect the dollar to come under major specu­ May 9, the French President asked for the issue of a reorgan­ lative attack by September or October, asGreenspan assumes ization of the developing countries' staggering debt burden office. "The problem is made more unstable now withGreen­ to be discussed. Reportedly, Reagan replied by demanding span," a Swiss banking source stressed. "Now the Federal instead that the industrial leaders agree to collapse the mul­ Reserve is composed of a collection of mediocrities in the tibillion-dollar farm economies of Europe and the United midst of the greatestcrises facing the world economy. People States by agreeing to the Trilateral Commission "free mar­ here in London are in disbelief." ket" agenda of the May 13 OECD ministers meeting. At this point, the slightest shock could trigger a major The meeting got heated. Mitterrandref used to destroyhis financial panic of uncontrollable scale. Never before have 1988 election prospects by agreeing to any further cuts in international financial investment flows been at such a pre­ agriculture support. Reagan refused to discuss the vital debt carious uncertainty. Some London observers expectJapanese issue, despite the manifest crisis of U.S. banks and the col­ restraint against dollar speculation to erode now that Venice lapse of debtor economies across Africa, Ibero-America and has passed. Once any slight shiftaway from Japanese support the Pacific Basin. (See Africa Report, page 14.) The result of the dollar or U.S. government treasury debt begins to was a finalcommunique which said nothing of substance on appear in today's hypersensitive international markets, this the urgent debt crisis or the agriculture issue. could triggerthe long-feareddollar crash.

New York Times that Moscow was committed not to es­ calate tension in the Gulf region, and would not increase New Yal ta dealin Gulf? its military presence. Two days later, on June 9, two additional Soviet warships entered the Gulf, bringing to Though denied some 24 hours later, the declaration of seven the Soviet taskforce. White House Chief of Staff Howard Baker on June 7 in The June 9 final resolution of the Venice summit did Venice that "Soviet policy" toward the Persian Gulf has not speakof furtherWestern military build-up in the Gulf represented a "positive" and "historical shift" revealed region, focusing instead on efforts at the U.N. Security more on American-Soviet cooperation in the Gulf crisis Council by the five permanent members, who have been than dozens of other statements. Baker declared the fol­ meeting continuously in secret for the past four months, lowing day that he had been misquoted and wanted ac­ at the initiative of the United States and Soviet Union. tually to say that the Soviets had been "unhelpful." More revealing was perhaps the resolution on terror­ Baker's initial statement, which was not denied by ism: It took most of last year's resolution, but deleted, at President Reagan, was taken as a trial balloon to the other the initiative of the U.S. delegation, the sentence calling partners of the Venice summit which gathered the follow­ for an "arms embargo against all States sponsoring terror­ ing day, and a signal to Moscow. The same day, First ism." An assistant to Shultz commented that this was to Deputy Foreign Minister Yuli Vorontsov was telling the avoid a painful reminder of the Irangate affair.

EIR June 19, 1987 International 39 Gnostic drug cultists make violent tryf or power in Panama by Gretchen Small

On June 9, the State Department's American Republics Di­ riega, the commander of the PPF, with particularvenom. vision gave officialbacking to a campaign of "civil disobe­ Noriega is the principal Central American foe-of the very dience," riots, and strikes in Panama. Promised U.S. sup­ same illicit Contra drugs and arms traffickingnetworks, who port, the "opposition," a group of gnostic cultists and drug were (and are)protected by the "parallel government" of the runners tied to Fidel Castro, has stated it will fight until the U.S. Iran/Contra affair-inclq,ding not only Poindexter and military heads quit, and the government hands over power to Oliver North of the NSC, but Assistant Secretary of State their new "Junta." Elliott Abrams, who has yet to be fired. The coup attempt in Panama is being masterminded by Dfaz Herrera added one new accusation. In 1981, he an organization more evil than most ordinary citizens have charged, then-Colonel Norieg� had plotted with the Ameri­ the power to conceive-the Gnostic International. This can CIA, U.S. Southern Command head Gen. Wallace Nut­ Gnostic International, based on satanicbeliefs that were used ting, Panama's Christian Democratic partyleaders , and Col. against Christianity already in ancient times, runs the world's Alberto Purcel (now Deputy Commander of the PDF), to narcotics trade through its centers in the Soviet satellite na­ assassinate Gen. Omar Torrijos. Torrijos died in a mysterious tions of Cuba and Bulgaria. EIR documented a textbook case plane crash in August 1981. of this in 1984, the gnostics' control of Colombia's M-19 Dfaz Herrera offered nothing concrete to back up his terrorists. allegations, only claiming that he had given "proof' to Pan­ Yet-in the latest treasonous actof George Shultz's State . ama's Catholic Archbishop, Marcos MacGrath. Department-U.S. embassy personnel were ordered out on The colonel had resigned fromthe PDF one week before , Panama's street comers early in June, to cheer on Castro's for "health reasons." Now it b4came clear, he was forced out gnostic allies in their efforts to overthrow an allied govern­ for mental health reasons. Diaz Herrera announced that he ment and military, which has provided exemplary collabo­ was acting in accord with instructions from the new "man­ ration with the United States in the war on drugs! God," Indian guru, Satya Sai Baba, whom he called a new "divine incarnation like Jesus Christ." After seven months of The followers of Baba studying Baba's writing�, "I felt the desire to transform Pan­ The crisis was triggered on June 6, when the former ama," Diaz Herrera told the Wall Street Journal's reporter. Deputy Commander of Panama's Defense Forces, Col. Rob­ He added, "I have no doubt that he, not I, is in command of erto Dfaz Herrera, called reporters to his home, promisingto everything." Baba is my "secret weapon" against Noriega, release "proof' that Panama's military high command had he raved. engaged in corruption, murder, and fraudto keep themselves Diaz Herrera continued to give almost non-stop inter­ in power. Diaz Herrerais sued a series of accusations, by and views to domestic and foreignjoumalists, frequently contra­ large repeating the slanders circulated early in 1986 by the dicting himself in the process. In his babblings, however, U.S. National Security Council, thenheaded by Adm. John Dfaz Herrera revealed the existence of a broader gnostic Poindexter, who was laterdismis sed in the IranIContrascan­ esoteric network in the Caribbean, which he threatened is dal. prepared to unleash "a psychic, mystic and religious war" in Dfaz Herrera charged that the Defense Forces (PDF): 1) theregion . put Nicholas Ardito Barlettain as Presidentof Panamathrough The network includes Cuba'sFidel Castro, and Socialist fraud in 1984, and then forced him to resign in 1985; 2) International Vice-President Jose Francisco Peiia G6mez. ordered the assassination of [Libyan-financedarms and drug­ Peiia G6mez can corroborate my charges on the Torrijos runner] Hugo Spadafora in September 1985; and 3) allowed assassination, because he, too, knows of Baba and esoteri­ widespread corruption, including accepting $12 million from cism, Dfaz Herrera asserted. "He told me that he has spoken the Shah of Iran. Dfaz Herreraspoke of his former superior twice with the spirit of Torrijos, that the spirit of Torrijos is and long-time factional opponent, Gen. Manuel Antonio No- restless because he was assassinated," Diaz Herrera swore.

40 International EIR June 19, 1987 "Fidel Castro is an esoteric," he added. "I have spoken "will devastate the Panamanian banking center." Panama's two times to Castro, and we spoke in these tenns. He is a offshore banking center was set up by Ardito Barletta, a spiritual man, despite the fact that he is a Marxist-Leninist." fonnereconomics student of George Shultz at the University Dfaz Herrerapraised Castro as a "profoundly human man, a of Chicago, when Barletta was head of Panama's monetary great friend not only of Panama, but an extraordinary friend board in 1970. of mine." Guillenno C6chez, one of the leading assemblymen of the Christian Democratic party now leading the "resistance" Uprising begins to the government, also protested Operation Pisces as a vio­ Dfaz Herrera's gnostic "revelations" were used to trigger lation of national sovereignty. La Prensa blamed the mili­ the uprising against the governmentfor which the opposition tary. "Matters dealing with drug-traffickingand money laun­ had been preparing for over a year. On June 9, fiveopposition dering are handled by Panama's Defense Forces solely for parties, led by the Christian Democrats, announced the propaganda purposes and to serve U. S. interests," the paper founding of a "Patriotic Junta of National Resistance." The editorialized on May 12. U.S. an�i-drug officials later re­ Junta, in tum, ordered party members to refuse to pay taxes ported that Dfaz Herrera had attempted to sabotage the mili­ and tolls, and take to the streets to demonstrate and block tary's cooperation with Operation Pisces. traffic. A broader coalition of "civic" and business groups La Prensa's opposition to liftiqg bank secrecy is under­ joined with the new Junta to found a "Civilian Crusade to standable. The owner, Roberto Ei$enmann, and the fonner Rescue Democracy," which then called an indefinitegeneral director of the paper, Winston Robles, had been implicated strike until the government, as well as Noriega and the rest in the money-laundering operations of the Fernandez mari­ of the High Command, resign. juana syndicate, when the leadeq; of the syndicate were The followers of Amulfo Arias, the octogenarian, three­ brought to trial in 1985! time President of Panama who lost the 1984 election to Bar­ Yet, on June 10, State Departjrnent spokesman Phyllis letta, took to the streets, proclaiming the return of Arias to Oakley announced that the Department "support[s] the ef­ power, since Dfaz Herrera's charges proved that Arias was forts of Panamanians to get all the facts out in a manner that now the legitimate President. Arias, like Dfaz Herrera, is an is fair to all. Panamanians can resolve this situation only on occultist, initiated into several secret scdeties in the 1920s. the basis of the truth." Challeng�d by EIR's Washington He was overthrown as President in 1940, with U.S. help, correspondent, Nicholas Benton, �n June 11, that the De­ because of his proclaimed support for Adolf Hitler, later partment's position "gives credibil�ty to Dfaz Herrera, who accused of protecting drug-traffickers in Panama, and cam­ is a gnostic and an admirer of Fidel <;astro," Oakley reiterated paigned for the presidency in 1984 on the grounds that it was that "the U.S. supports all efforts to get out all the facts in an "foretold in the stars" that he should be the one to usher in atmosphere of democracy." the Age of Aquarius to Panama. Panamanian sources report, that support inclm"ed order­ By June 10, "civil disobedience" had turned into riots, ing U.S. embassy personnel out o� the streets to cheer the . trashings, and burnings. As the riots continued, a state of demonstrators on . national emergency was declared on the night of June 11. U . S. military men have not been so quick to join the State PresidentEric Delvalle backed the Defense Force High Com­ Department in supporting a man th�y have long identifiedas mand, and denounced the opposition's actions as the result an opponent of the United States. General Nutting, named of a foreign conspiracy against the country. Speaking at a by Dfaz Herreraas part of the plot, called the charges "ridic­ rally called to demonstrate popular support, Noriega de­ ulous," in an interview with the Washington Times June 10. clared, "They want deaths, but we will not give them deaths. "Col. Dfaz Herrerais doing this for �is own personal reasons. The Anned Forces reiterate our intention to defend the con­ It sounds to me as though he's maki,g a power play internally stitutional order. " to take power fromNorieg a," Nutting stated. The State Department's Assist�t Secretary for Interna­ The drug connection tional Narcotics Affairs, Anne Wrobleski, chose to make Cheering on the general strike are the opposition news­ public her office's hopes for conti�ed cooperation with the papers, La Prensa and Extra . Less than three weeks before, existing governmentof Panama. Wrobleski released a state­ the same newspapers had angrily attacked U.S.-Panamanian ment on June 10 announcing that ttte U.S. and Panamanian cooperation in the war on drugs, protesting the Panamanian governments have agreed on strengthening the cooperation government's decision to lift the rights to bank secrecy for which led to the successes of the firstOperation Pisces. accounts used by drug-traffickers. When it was announced As the crazed Dfaz Herrera tol4 the Washington Post on on May 7 that Panama had frozen 54 accounts in 18 Pana­ June 11, he is counting on the qIA and the Pentagon to manian banks, in collaboration with the Drug Enforcement provide the "proof' of his wild changes. "Nobody in Panama Administration's most successful anti-drug sweep ever, "Op­ wants to be a kamikaze hero if the U. S. is concealing infor­ eration Pisces," La Prensa and Extra cried that the action mation and protecting Noriega," he said.

ElK June 19, 1987 International 41 'Central Enterprise': defending NATO 's most vulnerable flank by l'4ichael Liebig and Dean Andromidas

The skies of West Gennany played host June 1-5 to "Central tiative of its citizen-soldier or ainnan, trained in a doctrine Enterprise," NATO's largest annual air exercise involving that stresses initiative and leadership at all levels, as the over 1,000 aircraft, conducted amid the most overcrowded crucialfactor. It is felt that this flexibilityis key to countering airspace and densely populated regions of Westem Europe. a Soviet doctrine which, while highly offensive, is charac­ Participating air forces included those of the United States, terized by an overly centralized command structure that woiks the Federal Republic ofGennany, the United Kingdom, Can­ to stifle initiative at the lower command and the level of the ada, the Netherlands , and Belgium. This show of NATO individual soldier or ainnan. solidaritywas reinforced with the participation of the French Under Soviet Marshal Nikolai Ogarkov's war plans, these Air Force, despite France's non-integrated status with respect basic assumptions are being Challenged by the introduction to NATO's multinational military structure. and deployment of new Soviet aircraft including the MiG-29 Seven participating national air forces conducted over Fulcrum, MiG-3 l Foxhound, SU-27/FIanker with their "look 1,500 sorties daily in fully integrated operations under sim­ down-shoot down" radars, and more capable air defense sys­ ulated Warsaw Pact attack. This multinational cooperation tems, in addition to further Soviet deployment of intennedi­ at all levels was testimony to the ability of the NATO alli­ ate- and short-rangenuclear and non-nuclear missiles. Soviet ance, if properly armed and politically backed, to face an biological and chemical capabilities, as well as deployment attack by the Warsaw Pact. It stands in sharpcontrast to the of"spetsnaz"irregular forces, represent threats that areclear­ political crisis precipitated by the "zero-zero option" for pull­ ly closing whatever gap Marshal Ogarkov might have feared ing down the West's nuclear arsenal in Europe, and contin­ in the past. Added to this challenge is the Soviet effort to uing calls by political circles in the United States for with­ develop radio-frequencyweapons as part of trying to outflank drawal of American forces from West Gennany. The exer­ new Western capabilities in the battlefield spinoffs and other cises underscored not only the absolute necessity of strong gains of the Strategic Defense Initiative and other technolog­ U.S. participation in current force levels, but the indispen­ ical efforts . sable role of American technology to NATO defense. For NATO to hold an effective deterrent value, it must not only be able to meet a Soviet offensive attack, but to NATO's strengths and weaknesses maintain the survival of its air resources and its logistical Central Enterprise has as its purpose the testing and ex­ communications, i.e., air bases, population and industrial ercise of NATO's command and control, as well as the ca­ centers, ports, etc., as a finnbase from which a counterattack pabilities of its air combat units to meet a simulated Warsaw deep into Warsaw Pact territory can be mounted. The need Pact air attack, sustain it, seize the initiative, and conduct the for NATO to embark on its own Tactical Defense Initiative ' counterattack. The exercise demonstratedthe many strengths (TDI) program encompassing the most advanced technolo­ and weaknesses of NATO's aviation. gies based on "new physical principles," in this context be­ NATO doctrine has always seen air supremacy as key to comes imperative. This is drimatically revealed in the cur­ the defense of Western Europe. NATO-Warsaw Pact force rent forcecomparisons between NATO and the Warsaw Pact. comparisons have traditionally been premised on maintain­ Such comparisons are further testimony to the absolutely ing the "balance of imbalances." It has been NATO's con­ critical role of U. S. contributions to the NATO force struc­ viction that technological superiority of its aircraft, avionics, ture. and weapons and air-defense systems work to offset Soviet As the accompanying graph demonstrates, NATO main­ superiority in numbers of aircraft and other systems. More­ tains parity in certain categories of aircraft, particularly fight­ over, Western military doctrine sees the motivation and ini- er-bomber and ground attack. In others, such as the crucial

42 International EIR June 19, 1987 category of fighter/interceptors , electronic warfare , and bombers and deep strike aircraft , the superiority, at least in FIGURE 1 numbers, lies with the Warsaw Pact. Although these figures NATO-Warsaw Pact combat aircraft* do not include the French capabilities which one could expect to take part in a defense of Europe, it should be noted that all additional reinforcement during "times of tension" or an ac­ tual war would be from the continental United States. This would include 1,350 U.S. fighterbombers and ground attack 2,800 aircraft, 230 reconnaissance aircraft, and 75 bombers; the 2,600 2,700 United States is the only NATO nation possessing a real 2,550 bombercapabi lity. Furthermore , but for France and the United States, no NATO nation has a modem strike aircraft. Soviet superiority in the critical area of fighter/intercep­ tors, bombers, and reconnaissance corresponds to Soviet of­ fensive doctrine of deep strikes into the full depth of NATO's central front and rear areas , while gaining complete air su­ periorityat the outset of hostilities. This ability ofthe Soviets to concentrate their air resources, including ground-launched ballistic and short-range missiles, as well as a new generation Fighter-bomber Fighterllnterceptor·· of cruise missiles, in the initiating attack, is aimed at forcing Ground-attack NATO to commit more of its air resources away from the battIe on the ground to the air battle, and lies at the heart of the problem facing NATO's air commanders.

....oII11II111lJJIllIl 690 The defense mission 650 460 To meet this challenge, NATO has built a layered air defense system throughout the central front facing East Ger­ 410 many and Czechoslovakia, extending north to the West Ger­ man state of Schleswig-Holstein, and south to the Swiss and Austrian borders . This central front comprises the Federal Republic of Germany, the Netherlands, Belgium, and Great Britain, and in time of war, northern France. The air com­ ponent of this command is designated "Allied Air Forces Central Europe" based in Ramstein, West Germany, com­ prising the air forces of the F.R.G., the United States, U.K., Belgium, and the Netherlands; it maintains subordinate com­ mands dividing the central front into a northern andsouthern half. Reconnaissance Bombers Running north-south along the central front is an air de­ fense belt comprising a system of high and low altitude radars as well astactical radar systems and the now-functional NATO AWACs system capable of "seeing" deep into Warsaw Pact ����einforced ______li ;i;'U;:1 territory. These AWACS, introduced into NATO for the first In place time in 1986, are manned by mixed crews from among all _ the NATO countries and are the only radar or other opera­ tional system managed by the NATO military command at Warsaw Pact··· Supreme Headquarters . These radars in tum feed information Fully reinforced ______for target acquisition to the weapon systems which include a IIIIIIIIIIIIIJ variety of surface-to-air missiles and manned aircraft, heav­ In place c:::J ily armed with air-to-air missiles and other munitions. Cru­ cial to the working of the system is "flexibility," for its mis­ sion is not only to sustain an initial attack but point defense Excludes France and Spain • U.S. estimate of 1986 NATO data from spetsnaz and other threats, intelligence and reconnais­ •• Excludes Soviet strategic interceptors sance, ground support, and most-important-the ability to ••• An additional 4,000 trainers are available shift from defense to offense and counterattack deep into Source: U.S. Department of Defense

ElK June 19, 1987 International 43 Warsaw Pact territory. Hereground crews wearing special suits to protectthem from This year's "Central Enterprise" is one of the first exer­ the effects of nuclear,biological , and chemical attacks, move cises to demonstrate the operation of the new Patriot low-to­ rapidly but methodicallyto rearm,ref uel, and service aircraft high altitude surface-to-air missile, replacing the aging but returning from missions, gettiDg them back into the air in less nuclear-capable Nike. A visit to one Patriot site at the West than 90 minutes. As part of NATO's interoperability, this German Wunstorf Air Base demonstrated some of NATO's same facility can tum around aircraft of other national air strongest capabilities. Here was an American-made state-of­ forces including the F-16s and F- 15s of the American Air the-art weapon system, manned by the Royal NetherIancls Force, the Belgian and French Mirages, Dutch F-5s, and Air Force, protecting a West German Air Base and its sur­ German Tornados. rounding territory. A very enthusiastic Dutch officer, one of Today's modem aircraft are among the most powerful the missile battery's fire control officers, described the tre­ weapons. Their air bases, their vital source of fuel, ammu­ mendous capabilities of this system with its state-of-the-art nition and repair, are among the most vulnerable targets in phased array radar, impervious to known Soviet electronic the military structure. With NATO's primary bases less than warfare capabilities, and computerized tracking system ca­ 200 kilometers from the East German border, their defense pable of automatically tracking and killing as many as 100 is key. Although air defense is maintained by a network of targets simultaneously. As one officercommented , "The sys­ Rapier low-altitude missiles, for the protection of these sites tem doesn't care whether the target is a missile or an air­ a TDI is absolutely essential. plane." Its deployment is to be completed by 1992. Although "Central Enterprise" did not include the exer­ The Patriot, being the front line of the missile belt, is cise of defense from ground assault, the same regiments backed up by the low- to medium-altitude Hawk, and the manning these missiles are responsible for perimeter defense. low-altitude Rapier, Chapparal, and Roland surface-to-air More immediate is the rising concern among European mil­ missile systems. These are older, less capable systems de­ itary circles regarding the vulnerability of these bases to ployed primarily for point defense. Soviet irregularwarfare and spetsnaz operations, under the It is clear that the capabilities of these systems and future cover of anarchist and terrorist activities and East bloc TIR developments, given the possibilities of SOl as well as a trucks traversing the highways of Europe. It is these air de­ future TDI, could have a potent impact on Soviet military fense regiments in cooperation with the West German au­ planners. Reinforcing the fear of rendering their missiles and thorities that are responsible for securing the bases from aircraft so much flyingscrap metal, is the key to deterrence. Soviet spetsnaz operations. Both regiments had extensive This fear can only be induced with a broad deployment, well histories of experience in irregular warfare techniques in­ beyond their current deployment status, and a robust R&D cluding the capture of enemy air bases during W orId War II. effort offered by a TD!. Having had assignments in Malaya, Aden, Cyprus, etc., they A visit to the British Royal Air Force at Wildenrath Air­ represent an important potential for countering spetsnaz as­ base, near Monchengladbach, offers a look at the third layer sault if given a chance. of this defense system-manned aircraft. Wildenrath is one of several British air bases within the 2nd Allied Tactical Air The offensive mission Force responsible for the defense of the north German plain. Following the "defense" phase, the air forces move onto It is home to the 19th and 92nd Air Defense Squadrons. "Air the offensive. Here, besides air superiority, the mission of Defense" means the primary function is the defense and se­ support to ground operations and counterattack deep into curing of air space, the "air supremacy" mission. They carry Warsaw Pact territory is simulated. In accordance with cur­ no bombs, because their targets are Soviet aircraft. Their rent NATO "FOFA" doctrine introduced under Allied Su­ aircraft are painted the pale blue-grey camouflage, a color premeCommander Gen. Bernard Rogers, NATO's airpower scheme that makes them difficult to be seen as they swoop will have the mission of knocking out the Soviets' second down on the low-flying enemy strikeaircra ft . Their aircraft, echelon of forces. Air defense aircraft like the British F-4M F-4M Phantoms, testify to the importance of the Alliance, Phantoms take on the additional mission of "escorting" at­ particularly the role of the United States. An American-de­ tacking air formations. These formations could comprise signed aircraftof the Vietnam War era, the F-4M Phantom British and West German Tornados and American F- 16s' has more powerful British Rolls-Royce engines, making it radar and navigation systems enabling them to flyvery low, capable of speeds above Mach 2. It is armed with radar­ at high speeds. Practice in flyingat altitudes of as low as 30 guided and infrared air-to-air missiles and a Gatling 20 mm meters is extremely important,but impossible, for safety and cannon, guided by an advanced technology Airborne Inter­ noise considerations, over the densely popUlated German cept Radar. countryside. Despite the restrictions, it would be hard for In Wildenrath, the total complexity of ground operations most Americans to imagine a military exercise like Central can be seen as aircraft, in individual concrete hangars hard­ Enterprise to be flown in a comparable American region such ened to protect them fromblast effects, are "turnedaround ." as the skies over the Boston-New York-Washington corridor.

44 International ElK June 19, 1987 rrheF -15 jet fighter (lower left) is refueled in flight. The plane is the fost capable all-weather fighter in the U.S. Air Force.

In addition to hitting "deep" targets, the air force has a aircraft are fitted with three types f sensors: I) the most ground support mission, although most NATO ground forces advanced optical cameras, which giv views in several direc­ operate their own air platforms including helicopters and tions as well as panoramic; 2) a state- f-the-art infrared cam­ fixed-wing aircraft . The United States Air Force operates its era capable of "seeing" in the night, 0 through fog or smoke; "tank killer" A- lO, a slow but highly maneuverable jet air­ and 3) a new type of radar sensor. craft designed to carry immense amounts of powerful anti­ A weak link in these other missions, according to NATO armor munitions. The British have their Harriers , capable of commanders , is that of electronic w fare , a field where the vertical takeoff, as well as the British and West German Soviets place high emphasis. Although the Americans have Alpha jet. the EF-lll "Raven" and EF-4 "Weasel," the West Germans Within this offensive mission, Central Enterprise exer­ are �ard pressed. Although a squadrpn of Tornados is to be cised air reconnaissance for the collection of vital tactical configured for electronic warfare, the West German Air Force intelligence including enemy ground formations, air bases, currently employs a specially configured commercial exec­ and logistical communication. In war "real time" is the cru­ utive jet -a very inadequate solution the Germansare quick • cial question. While satellite intelligence can be jammed, its to admit. major drawback is the "real-time" one, how long it takes to get from the "sensor," be it an infrared camera or a behind­ Preparedness the-lines reconnaissance team, to the responsible command­ A visit to the U.S. Air Force's 36t Tactical Fighter Wing er. A visit to the German 51st Reconnaissance Squadron based at Bitburg, in West Germany' Eifel Mountains, gave based at Bremgarten Airbase, gave a glimpse of the com­ us a glimpse at "preparedness." Bitb�rg is the key American plexity and efficiency of modem air reconnaissance. Flying air defense base in West Germany, fl�ing the F- 15, the most specially fitted F-4 Phantoms, the 51st is Germany's oldest capable all-weather air defense superiority fighterin the U.S. "air recon" squadron, celebrating its 30th anniversary. Here Air Force. Designed around the mos advanced radar system the real-time factor can be as low as 30 minutes, depending in the world with the ability to locate and track low- and high­ on the distance of the mission , when photographic intelli­ flying aircraft at great distances, the F- 15 has a look-down gence of enemy airfields, battle formations, and other poten­ shoot-down capability . Capable of s eeds in excess of Mach tial targets can be processed and gotten into the hands of 2.5, it can climb to 98,000 feet in three minutes. This has relevant commanders . Utilizing American technology, the given the F- 15 the mission of carrying the American experi-

EIR June 19, 1987 International 45 mental anti-satellite rocket to an altitude near its orbital flight ,------, plan. The Bitburger wing has 70 aircraft and only one other , Sp�(lk.

46 International ElK June 19, 1987 The most recent round of riots was timed to coincide with IrregularWarfare the DJP Convention, which on June 10 endorsed Chun's chosen successor, former Gen. Roh Tae-woo as president of the party. Roh, a long-time associate of President Chun, is now assured of becoming the next President of South Korea. The protesters were called into action by the Reunifica­ tion Democratic Party , led by the two leaders of the opposi­ tion, Kim Dae-jung and Kim Young-sam. In May, the two Korean violence is Kims had led a split from the opposition National Democratic Korean Party, when a faction of the NDKP leaders wanted Soviet-deployed to begin negotiations with the government. The Kims, es­ chewing talks, led the majority of the. party away to form the Reunification Democratic Party. The inclusion of the word by Linda de Hoyos "Reunification" in the party's name indicates the primary goal of the two Kims-the softening up of South Korea for On June 12, the day of the visit of President Ronald Reagan merger with North Korea, under the imperial umbrella of the to West Berlin, the city was rocked by violent demonstrations U.S.S.R. and China. The new party represents the transfor­ led by the Soviet-backed SEW Party and the Green Party. mation of the opposition into a fifth·column for North Ko­ Military strategists in the United States and Western Europe rea-in the same way the Social Democracy serves this func­ properly view the protests, which have escalated over the last tion in West Germany . month, not as an eruption of rage against authorities, but as While attempting to distance themselves from the vio­ a deployment of irregular warfare ordered and directed by lence, the two Kims offerthe students their political protec­ the Soviet Union, in preparation for a global strategic show­ tion. The demonstrations "all over tbe nation show that the down. people question the legitimacy of both President Chun Doo The same view must hold for the recent events in the Hwan and his handpicked heir Roh Tae-woo," Kim Young­ Republic of Korea. On June 10, South Korean cities wit­ sam stated. "The people won't stand forthis ." nessed the worst violence in seven years. In 1980, the North In the course of the week's violence, 738 policemen and Koreans and allied forces in the South had launched an upris­ 38 civilians were injured, 16 police stations and substations ing in Kwangju, which was put down only with bloody inter­ were damaged, six police vehicles w�re burned, and 17 oth­ vention from the armed forces under current President Chun ers damaged. As in West Germany, the violence is not ran­ Doo Hwan, leaving 2,000people killed. For the Soviet Union dom, but militarily organized, with students, led by univer­ and North Korea, orchestrated riots in South Korea could sity professors, marching in rows toward the police. The level serve as an opening shot in a full-scale military move on the of infiltration by North Korean spetsnaz (of which there are peninsula; or to soften the ruling institutions in South Korea 100,000 led by Kim Chong-il) is unknown. and sever its links to the United States preparatory to a global "I have been insisting that we not use violence and that move. we conduct peaceful demonstrations," Kim stated. "But the The recent high level of violence was ostensibly sparked policehave been so brutal with the use of tear gas that students by President Chun' s refusal to proceed with negotiations for and citizens had no resort but to resist the brutality." the revising of the Constitution and the holding of direct The organizing networks behind the student riots are the elections. The opposition, which plays the same role as the Reunification Party, along with many of South Korea's Social Democracy of Willy Brandt in West Germany, has Christian churches. Protestant ministers and Catholic priests demanded that the constitution be immediately changed to have begun hunger strikes in various cities against the Chun allow for direct election of the President, scheduled for early government. On June 12, 2,000 students barricaded them­ 1988. As of now, the President is elected indirectly by par­ selves in the Myongdong Catholic Cathedral. Roman Cath­ liament, which is controlled by Chun's Democratic Justice olic Cardinal Stephem Kim, has consistently supported the Party (DJP). The opposition contends that this ensures that two Kims. His homilies repeat the theme that only democratic the DJP retains full power over the choice of president. "reform" can heal the "wound" left by the K wangju uprising. However, Chun, a former general who led the operations "Hatred is deepening, creating a similar situation in which to put down the Kwangju uprising, is the first president in another K wangju incident could break out," he stated on the South Korean postwar history, to step down from officevol­ anniversary of the uprising. untarily. At every other point, the government was forcibly The Soviet-controlledWorld Council of Churches is also changed through a combination of student violence, with­ working to support the opposition apd to give it credibility drawal of U.S. support for the incumbent, and actions to outside the country. According to a WesternEuropean WCC restore order by the military . source, "Global ecumenical solidarity with the churches and

ElK June 19, 1987 International 47 students of South Korea, against the government, is increas­ ing. The regime is squeezed. I would say this regime is United Kingdom finished by the end of the year." The WCC is planning an "International Gathering on Peace, Justice, and Unification of the Koreas" for the second week of November 1987, to escalate the agitation. It will include participants from the leading American and Korean churches, and the West Ger­ man EKD which has led agitation in West Germany for neutralization and reunification of Germany on Moscow's terms .

And the United States? The United States is carrying out a dual policy toward South Korea. On the one side, the Pentagon is absolutely committed to the defense of the South Korean peninsula, a commitment backed by the presence of 43 ,000 American troops in the Demilitarized Zone. Whereas the Pentagon acceded to the overthrow of Ferdinand Marcos in the Philip­ Thatcher wins national pines in 1986, it has not given a similar green light for U.S. withdrawal of support from President Chun. An amendment mandate on defense presented in May by Rep. Robert Mrazek (D-N.Y.), for phased withdrawal of U. S. troops met with little success­ by Mark Burdman only 60 votes in the House. However, the State Department and the networks of Proj­ In Britain's June 11 national elections, British Prime Minister ect Democracy encourage the opposition, as it encourages Margaret Thatcher has done what no other prime minister has the traitors of the Social Democracy and the Green Party in done since Lord Liverpool in 1828, what such hallmark fig­ West Germany. From the top of the U.S. foreign policy­ ures in British politics as Paltnerston, Disraeli, Gladstone, making establishment, in May members of the Asia Society Lloyd George, and Churchill failed to do: She has won a third and the Council on Foreign Relations met with opposition consecutive term in office. leaders. Leading the delegation to South Korea was Kenneth And she has done so resoundingly. With almost all votes Dam, former deputy secretary of state and Richard Hol­ counted, Mrs. Thatcher's Torieswere credited with 376 seats, brooke, former assistant secretary of state. In Seoul, U.S. while the Neil Kinnock-led Labourites had 229, the Social Ambassador James Lilley, who replaced RichardWalker last Democratic-LiberalAlliance 22, and small parties 17. year, meets consistently with the opposition, playing the This would give Mrs. Thatcher a majority of around 100 same guiding role that Stephen Bosworth played for the seats, once all the tallies are ia. That is one of the two note­ Aquino forces in the Philippines. Speaking before the Korea worthy features of the results . The other is the smashing Bar Association on May 3, Lilley declared that the "work of defeat of the Alliance, which had been hoping to do well the Korean Bar Association in investigating the human rights enough to force a "hung Parliament," by denying Mrs. abuses, publishing its human rights reports, and voicing its Thatcher a big majority. The Alliance did so badly, that even opposition to such practices plays an important role ...." some of its top leaders, like 'former minister Shirley Wil­ The National Endowment for Democracy, an officialarm Iiams, lost their parliamentary seats. of the State Department's Project Democracy, is supplying Unquestionably, Mrs. Thatcher's winning point was de­ funds to the National Democratic Institute for International fense. Britons, who pride themselves on never having been Affairs for work on Korea, according to the NED's Linda occupied and on having emerged undefeated from World Pochek. The funds were for a 1986 seminar with the oppo­ War II, were aghast at the proposals by Kinnock, that Britain sition party on "basic party-building techniques, coalition should drop its nuclear deterrent, and rely on a policy of building." resistance-to-occupation, in the event of war. However, democracy is not the issue. Soviet strategic In the last days of the campaign, Thatcher associates, aims are . As the World Council of Churches source stated: including Defense Minister George Younger, Interior Min­ "Korea is becoming more and more an issue on the global ister Douglas Hurd, and Toryparty chairman Norman Teb­ scale. It is not isolated internationally. We are receiving bit, made defense the top issUe, with dire warnings that a reports of unofficialU.S. -Soviet agreements, to allow for the Labour victory would mean British surrenderto the Russians. U. S. to push for normalization of the Korean peninsula, with This campaign struck a positive chord in the British popula­ the help of openings into North Korea made through the tion. Also helpful tothe Torieslwere leaks in the British press, Soviets." that most former British def�nse chiefs were privately ex-

48 International EIR June 19, 1987 pressinghorror at the prospect of a good Labour showing on within 12 months, the Tories' "illusion of prosperity" would June 11. dissipate, and the economic collapse of the U.K. would be­ Yet another factor that can by no means be discounted, come paramount in people's minds. was the visit to Britain by U.S. Defense Secretary Caspar Labour, despite the Tories' largte winning margin, has Weinberger during the week of June 1. In an important speech actually been strengthened as a party under Kinnock, relative before the English-Speaking Union on June 3, Weinberger to its devastated state after a tremendous electoral defeat in stressed the need for "preparedness" in the face of the Soviet 1983. The party has been re-formed and consolidated into an threat, and castigated those forces within NATO who sought opposition political machine. At the same time, some of the to weaken the "moral bonds and shared values" which had most extreme, left-radical Labour candidates, such as Lon­ kept the Western alliancetogether in the past four decades. don's Ken Livingstone and Bernie Grant, have won seats in This latter point was interpreted as a strong implicit attack on the Parliament. A growing left-right polarization is a real Labour. danger. Weinberger also had a series of private meetings with One other cautionary note: As we pointed out last week, British officials. Among crucial areas of discussion, were AIDS was not even mentioned as a campaign issue. This maintaining a strong Western nuclear deterrence, and the electoral make-believe cannot sustain itself, under conditions ftashpoint situation in the Persian Gulf. of an estimated 100,000 Britons infected with AIDS, with panic just below the surface in many parts of the country, and The economy with regular reportage in the British press about the AIDS When it comes to the matter of the economy and econom­ disasters in the United States, Africa, and other parts of the ic policy, the election results are murkier, and it is obvious world. Thatcher's government has an abysmal policy on that real danger lies ahead. AIDS, and has specifically rejected recommendations from Doubtless, Mrs. Thatcher will see her victory as a man­ British experts, that a full range of public health measures be date for her policies of "privatization," "free-market econom­ employed. In one form or another, she will pay a high polit­ ics," and "fiscal responsibility." It was not simply election­ ical price, at some point in the future, unless she decides to eering, when she declared June 10, returning from a short use her received mandate to launch a real "war on AIDS." trip to the Venice summit, that the summit was an endorse­ ment of her economic policies. She may pay dearly for being so proudof the debacle in Venice. The election reaffirmeda division within Britain between the northand south of the country. This is most noticeable in Scotland, where the Tories only won 8 seats, out of 67, about CONSULTING a 50% drop from the last elections in 1983, and a precipitous fall from the 1940s and 1950s, when the Tories were the ARB0 RlST majority party in Scotland. Inclusively, this means Labour Available to As$ist in municipal control over cities like Glasgow and Edinburgh. But it is not only Scotland. Labour controls Manchester, The planning and development of Liverpool, Newcastle, and other municipalities. Without ex­ wooded sites throughout the continental ception, the situation in these cities, extending from parts of United States as well as the Midlands into the north of England, is hellish. Unem­ ' ployment is often as high as 40%, hunger and disease are The development of urban and spreading, and workers often have to commute back up to suburban planting areas and the North on weekends from the south, where jobs are more available. These are areas which were once industrial centers The planning of individual (ports, shipbuilding, manufacturing, mining, etc.), but which homes subdivisions or have been devastated by 25 years of "post-industrialism," industrial parks including Mrs. Thatcher's own breed of post-industrial eco­ nomics. To the extent that Mrs. Thatcher's "making Britain Great again," and claims of "prosperity" under her rule, make any sense at all, this is in the south, especially in and around For further information an,:! availability please contact PerryCrl:swford III London, where a boom in services, real estate, and financial activities of the City of London, give an aura of "prosperity." Crawford Tree8530 West and LandscapeCalumet Road Services Here, the Tories scored their biggest electoral majorities. Milwaukee, Wisconsi� 53224 Labour shadow Foreign Secretary Denis Healey's warn­ ing on election night should be kept in mind. He said that,

EIR June 19, 1987 International 49 Western Augustinian cultural matrix. Each day of the Pope's visit has been designed to reactivate that "divine spark" in the Polish population which the Soviet empire is determined to extinguish. The Pope's mission The Pope's declarations in Poland have exhibited a de­ gree of daring in the exercise of moral integrity and states­ to save Poland manship qualities to shape andiinfluencelong-wave historical processes, qualities generally lacking in the present-day sec­ ular leaders of the Western world, as the Venice summit and by Luba George the process leading to the "Munich II" zero-option agreement so miserably confirm. Pope John Paul II arrived in his native Poland on June 8. Half a million peoplelined the route into Warsaw from the airport, Inalienable rights cited waving flags, cheering, and clapping, as he drove by . The The Pontiffpulled no punches in attacking the Gorbachov Pope's seven-day pilgrimage, in which he is to speak in nine government and the Communist system. In speeches deliv­ cities, is his third visit to Poland during his pontificate. By ered in Warsaw's Royal Palace, he told the puppet Polish the end of his journey, he will have preached before audi­ governmentand , referring to Moscow, "all those who exer­ ences totaling over 10 million people. cise power": "If you want to conserve peace, remember man. It was already clear after the first four days of his stay, Remember his rights, which are inalienable, because they that John Paul II has embarked on a well-planned counter­ emanate from the humanity of every person ....Remem­ offensive against the Soviet Empire. He is using his Polish ber, among other things, the right to religious freedom, the tripto send an unmistakable message to the Soviet leadership right to freely associate and to express one's own views." In that he will not compromise with Soviet moves to eradicate another jab at the Soviet system, he declared: "The economy, Catholicism in the Soviet Union, and, he will exercise the just like work, is designed for man and not the other way full authority and power of the Catholic Church to preserve around. . . . Economic progress can only be achieved in this Poland's future , as a nation that belongs historically to the way. Man always comes first." These words were voiced after Polish leader, General Jaruzelski, greeted the Pope and laid down the Moscow line: "On the basis that our socialist principles are respected, the government is open to every kind of influence. . . . [How­ ever] , national reconciliation will not be achieved on paper. We buy and sell It's a long process ....New forms of social life are being created. We will not leave that road." (emphasis added) earthmoving and construction Referring to the outlawed trade union, Solidarity, Jaruz­ equipment of all types. Import elski said: "The turmoil has subsided. . . . The flamesincited by foreign powers have calmed down." He said that he was and export worldwide. well aware of the importance of the Catholic Church in Po­ land and that "the doctrine of the Church is linked to the solution of our problems." As the speech was being made, Please contact us three prominent Solidarity figures were arrested in Lublin which the Pope was to visit the next day, following other when buying or selling. arrests made in Warsaw. In the Polish city of Lublin, the Pontiff denounced "to­ talitarian systems" and compared the 1984 murder by the "\�R RA Polish secretpoli ce, under KGB orders, of the Polish Cath­ olic priest Jerzy Popieluszcko, to the mass murder of Polish ENTERPRISES lTD. Catholic priests by the Nazis. c[(I)]) EQUIPMENT SALES The readershould bear in mind that all these speeches are � I R tJ\." televised in Poland and the broadcasts can be received by Phone 403-452-0606 millions of Catholics and Rome-affiliatedUniates in the So­ Te lex 0374 2883 (Telsec ed) viet Republics of Lithuania, Byelorussia, and the Ukraine. 16641 -114 Av e. On June 10, the entire Polish nation and millions of op­ pressed non-Russians in the U.S.S.R., heard the Pope in Edmonton, Alberta T5M3P9 Canada Cracow, launch a powerful polemic against Russian Chau­ vinism and Moscow's anti-papal policy. First, he expressed

50 International ElK June 19, 1987 deep regret that he was prevented by the Soviet authorities The situation has been aggravated by the flooding of the from visiting Lithuania this year to take part in the 600th country with pornography, rock, and drugs. anniversary celebrations to commemorate the Christianiza­ In a country with persisting housing shortages, declining tion of Lithuania. The Pope declared-and, again bear in birth rates, and uninspiring career prospects, the Pope's con­ mind the impact this made also on the millions of Lithuanians cernwas clearly expressed when he addressed 4,000students following his speech on TV and radio-"I wanted to be in at the Catholic University in Lublin: "We cannot allow youth Vilnius [the capital of Lithuania] this year. I was not invited." to fail to see a future for themselves in their homeland." To In Cracow, the Pope demonstratively prayed before the save Poland from the fate Russia has in store for it and tum grave of Queen Hedwiga, the Polish queen who in 1386 around the pessimism which has seeped in over the last sev­ married the Lithuanian Prince Jagiello, which marriage ef­ eral years, the Pope called on Polish youth to strive to build fected the Catholic Christianization of Lithuania and the united their nation. kingdom of Poland and Lithuania. Vilnius (Wilno in Polish) He attacked the existence of conditions which have caused is not only the capital of Lithuania, but also a city held sacred mass emigration-an emigration deliberately encouraged by by Poles. the Jaruzelski regime-of Poles to the West. He told his Then they heard the Pontiffat Tarnow beatify Karolina audience to "thinkover many questions of social life, struc­ Kozka, a 16-year-old Polish peasant girl, who in 1914 re­ tures, organization of labor . . . all fromthe point of view of fused to be raped by Russian soldiers and was, as a result, the future of the young generation in Poland." murdered by them. "We must not yield to depression. Neither spiritual nor The Pope , through use of this World WarI incident, was social demoralization must dominate us," the Pope told a able to convey as an "enemy image" Russian expansionism, cheering crowd of nearly 2 million people-many of whom imperialism, and oppression of subject populations. A large had walked for two or three days and slept al fresco under part of Poland was incorporated into the Russian Empire in hedgerows-atan open-air mass outside Tarnowin southeast the late 18th century under Catherine the Great, and remained Poland on June 10. His statement, which spoke of an "eco­ a Russian possession until the First World War. nomic and moral crisis," was the clearest and strongest he The Pontiff's speech which commemorated the fate of has made attacking the "ill-considered" farm collectiviza­

Karolina Kozka, struck a chord among all Poles, Lithuani­ tion, and-after • de-collectivization' -the regime's dis­ ans, Ukrainians, and Byelorussians, whose losses from Rus­ crimination (in credit, seed, and fertilizerallocation) against sian repression total many millions during this century. Po­ private farmers , which has resulted in food shortages in Po­ land was partitioned in 1939 between Nazi Germany and land, a fertile land. "Agriculture is bread ....Throughout Russia, and after the war, lost over 40% of its pre-war terri­ the world, all agree that bread should not and must not be tory to the Soviet Union. lacking." In another master-stroke message to the Kremlin, in de­ A roar of applause rose from the crowd when he voiced fiance of Moscow's "bury the West" policy and the myth of his support for the aims of the bannedRural Solidarityunion­ Moscow as the "Third and Final Rome," the Pope ordained an agricultural counterpart to the Solidarity independent trade 50 young clerics, including three Uniates (Ukrainian Catho­ union representing the industrial sector of the economy; called lics). A Ukraine minority of over 500,000 resides in Eastern for the independence for Polish fartners; and urging that the Poland, and most of them are members of the Ukrainian government honor the 1981 RzeszQw agreements-a pro­ Uniate Church. Poland, in fact, is the only East bloc country gram for agricultural reform-withfarmers that created Ru­ which has a Uniate Church, which was liquidated in the ral Solidarity. Both Solidarity groups were banned under the Western Ukraine by Stalin afterthe Second World War. martial law imposedby Jaruzelskiin December 1981. The ordination of three Ukrainian Uniates was a clear The government has prevented the Church from setting signal to Moscow that the Pope will never accept the Soviet up a $28 million fund to help private agriculture, which 1946 liquidation of the Ukrainian UniateChurch and its bloody would have been unique in EasternEurope . absorption into the Russian Orthodox Church. Pope John Paul II, during his last days in Poland, will attend the closing session of the EucharistCongress in War­ 'We must not yield to depression' saw June 14, the officialreason for the Pope's visit to Poland. The Pope arrived in Poland at a time when the countryis (The first Eucharist Congress to take place in Poland was in at a historical turning point. Poland has suffered enormously 1937 in Poznan.) It will be attended by 32 cardinals, arch­ during this decade through the Western credit embargo and bishops, and bishops, including: the Primate of Hungary, other sanctions-according to official Polish sources, these Msgr. Paskai; Cardinal Meisner, Archbishopof Berlin (East have caused Ibsses of up to $15 billion-which have tossed Germany); and Cardinal Kuharic, Archbishop of Zagreb the Polish economy into the lap of the U. S. S. R. Under Gen­ (Yugoslavia). Cardinal Tomasek of Czechoslovakia and the eral Jaruzelski's rule, the country has been afflictedby grow­ Lithuanian Archbishop (of Kaunus), Msgr. Povilonis, were ing demoralization, impoverishment, and cultural pessimism prohibited by Moscow and Prague from attending the Con­ among broadlayers of the population, particularly the youth. gress.

EIR June 19, 1987 International 51 Report from Bonn by Rainer Apel

Marines should visit Richard Burt and Flame for the U.S. President." u.s. diplomats helped to set up President Reagan for trouble in Also the German "RAP' terrorist West Berlin. group had kaflets distributed all over the city, announcing "a devastating blow against the representative of the war-machine of U.S. imperialism." Below a portrait of RAF founder Ul­ rikeMeinhof, the leafletcalled: "Come and fight with us!" Whether it was Imagine an ambassador to another ican officials in 1983. bombs, mdlotov cocktails, or stones country making friends with terrorists While Burt and Kelly were dining talked about here, advance presiden­ against your own country. Could this in Bonn, President Reagan was the tial security, arriving a few days be­ ever be real? target of a mass mobilization of Berlin fore Reagan in the city, and Berlin It is, with the current U. S. ambas­ radicals, protesting his June 12 visit to police too. these threats seriously. sador to Bonn, Richard Burt, and also the city. Because of the constant in­ They had an extra bullet-proof glass with the current head of the U. S. Mis­ flow of radicals from all over Ger­ shield installed at the podium from sion in Berlin, John C. Kornblum. many for this "event," police were, as which Reagan was to address 20,000 On Dec. 4, 1986, Burt spent hours of June 11, seriously concernedabout citizens on June 12. discussing with youth in Berlin, not Reagan's safety during his stay. The Soviet puppet regime in East arguing at all against their distorted This concern was more than justi­ Germany, which is pulling the strings image of President Reagan and his fied. Ever since the Soviet-sponsored behind most of these riots, got active policy. Instead, he encouraged them May Day insurrection in Berlin­ in a direct way, warning the U.S. in their protest, confessing he had been Kreuzberg, the city has been in up­ President: Behave, while you're here, "a leftist" himself, from the time he heaval. More than 130 groups in the or else! On June 10, the official East "spent at college." This talk: was grist socialist, anti-imperialistic spectrum, German news agency ADN warned for the mills of the anti-defense move­ have beenmobilizing since for a "show Reagan to "refrain from any remarks ment, which is mainly a movement of resistance against Reagan." The on the partition of Germany and the against President Reagan directly. Moscow-controlled Socialist Unity city of Berlin" in his June 12 address. The same is true of Kornblum, who Party (SEW) and its many frontorgan­ Knowing tbat he was planning to ad­ stated at various events in Berlin that izations prominently staffed the com­ dress the question of the Berlin Wall, the "United States never really intend­ mittee planning this staged mass pro­ ADN wamed Reagan he "should know ed to station troops in Europe." test. what many here in Berlin know: that Back to Richard Burt's "time at Effigies of Reagan, with a noose any calls for pulling down the Wall college": On May 29, 1987, he dined around the neck, were displayed in will not bring it down, but will rather with some German guests at the U.S. underground bookstores in Berlin­ make it even higher. " embassy in Bonn. The guests, mem­ Kreuzberg. Leaflets (many were like­ For six, weeks after the May Day bers of the pro-terrorist Green Party, ly produced in the print-shops of the riots, the two highest-ranking U.S. included Petra Kelly, and as it turned SEW) attacked Reagan as a "symbol diplomats in Germany, Ambassador out, Burt "knows her well from the of aggressive war plans of the United Burt in Bonn, and Mission Chief in time spent jointly at college in the States against the East," announcing Berlin Kornblum, have watched all of States." This was the same PetraKelly "resistance of the Berlin population these threa�s building upagainst Pres­ who was scheduled to address a mass against this warmonger." ident Reagan, and taken no initiatives rally of 100,000 against Reagan in On June 8, extremists almost set a to root out this hot-bed of terrorism Bonn on June 13, for which the West U.S. Army train with ammunition to and Easternagentry in Berlin-which German anti-defense movement had fire. This was foiled only by an emer­ is easy to do, as the city is Allied ter­ been mobilizing nationwide. Also gency-brake maneuver, when the train ritory, and therefore also subject to Kornblum knows Petra Kelly well: engineer suddenly spotteda steel chain U.S. martial law. Before sending the While working at the Central Europe drawn across the tracks, with burning U.S. Marines into Berlin, they'd bet­ desk at the U.S. State Department, he tires fixed on them. Later on, Berlin ter be sent into Burt's office in Bonn, helpedher set up meetings with Amer- policefo und a threatening leaflet: "Fire apparently.

52 International EIR June 19, 1987 Andean Report by Liliana Pazos

Moscow's terrorists seek coup in Peru that occurred at Uchiza explodes that The Communist Party is now openly backing the narco-terrorist myth. The paramilitary attackers ral­ lied aroundcries of opposition to Gar­ armies which are winning ground in Peru. cia's anti-drug war, Operation Con­ dor, and of venerationfor the Shining Path guru, "Comrade Gonzalo." A policebrigade recaptured thetown two days later, but it took a full-scale army invasion personally planned by Garcia Through its Peruvian Communist throw ourselves onto that path." He to secure it. Party (PCP), Moscow is mobilizing said that the Shining Path "is a politi­ This criminal offensive was part all its assets to provoke a bloody coup cal movement risen up in arms, which of a plan to put the Garciagovernment against the government of President employs direct terrorist actions. We in check on every front. While terror­ Alan Garcia and then make South admire and cultivate its spirit of sac­ ists are killing policemen, pro-terror­ America into another Central Ameri­ rifice, but we do not agreewith them," ist pressorg ans atep romotinganother ca. since their tactics arenot the most cor­ police strike for June 19, the first an­ The PCP Central Committee an­ rect ones at this time. niversary of the uprising of terrorist nounced after the party's Congress Del Prado chargedthe Garcia gov­ prisoners in three Lima prisons. ended June 3, that it now recognizes ernment"has entered into an alliance Shining Path mouthpiece El Nue­ the genocidal Shining Path (Sendero with the Pentagonist military, seeking vo Diario published on June 9 a state­ Luminoso) and Tupac Amaro Revo­ to apply the counterinsurgency strat­ ment, allegedly frompolicemen in the lutionary Movement (MRTA) terror­ egy designed by imperialism." He an­ north of the country, warningthe jus­ ists as "political organizations." While nounced the IV front would probably tice minister, "If you want blood, we embracing the terrorists, the Com­ embrace new terrorist fronts like UDP­ will all shed blood. You should keep munists concluded that President Gar­ People on the March, so long as they in mind we are aD masters in all kinds cia's governmentis "in the process of adhered to its program. The head of of automatic andlight arms and artil­ fascistization. " that group publicly thankeddel Prado lery and that we have plenty of it at Right after the PCP Congress, Al­ for the invitation, but refusedit. our disposal. " The statement exhorted fonso Barrantes Lingan, a moderate The narco-terroristhordes tempo­ enlisted men from the Army to join Marxist, was forced to resign from the rarily "liberated" territory in Peru's thepolice rebellion . presidency of the United Left coali­ core coca-leaf growing region, the The number-two Communist Par­ tion, leaving it under the direct control Upper Huallaga Valley. Over thepast ty leader, Gustavo Espinoza, gloated of PCP President Jorge del Prado. It months, the mercenary armies and on television that the way things were was evident to all that Barrantes was coca-growing peasant militias created going, the Garcia regime could end in an obstacle to Moscow's plans. Bar­ by the drug traffickers have joined "surprising" ways before the 1990 rantes had been an obstacle to the as­ forces with Shining Path and MRTA elections, e.g., by a military coup that sault on Peru's Christian civilization terrorists to chase mayors, prosecu­ communist agitators would help bring from pro-terrorist factions of the coa­ tors, andjudges out of the region. On on. lition. Barrantes said in his resigna­ June 2, a superbly armed contingent Washington will not lift a fingerto tion speech: "Terrorism-says John of 300 men struck as Shining Path's help stabilize PeOi because Wall Street Paul II-is never justified in civil so­ "PopularGuerrilla Army" against the also wants Garcia overthrown. U.S. ciety; it is a sophisticated returnto bar­ police station in the town of Uchiza, State Department strategists now ad­ barism and anarchism; it is always a killing six policemen and four civil­ mit that Moscow is behind the Shining manifestation of hatred." ians, and destroying the post. It was Path, but the "clever" fools argue that Del Prado, Moscow's aging whore reported that40 of the narco-terrorists the Soviets oppose a right-wing mili­ and head of both the PCP and the died during the six-hour firefight. tary coup. The terrorist UDP, how­ United Left (IV), proclaimed at a June A propaganda campaign in the ever, believes that Garcia's overthrow 5 press conference: "We do not con­ press sought to preserve the myth that would throw the masses to the terror­ demn armed struggle; we can con­ political terrorists are not in alliance ists and open prospects for Commu­ ceive that at a given moment, we could with narcotics traffickers . Everything nist victory in a bloody civil w�.

EIR June 19, 1987 International 53 Middle East Report by Thieny Lalevee

Foggy Bottom woos Qaddafi, again riots, but worse.Libya, Syria, and Iran A rotten deal is afo ot tofo rce Egypt-which just swallowed IMF are known to be the main financial backers of the extremists. Between austerityprescri ptions-to also make friends with the Libyan American pressures and Libyan sub­ dictator. version, what else can Cairo do but accept a deal? In early May, the Libyans made it clear they would increase their finan­ cial support to the Egyptian extrem­ DiSregarding Egyptian feelings on Syria's President Hafez al Assad to ists. By mid-May, Qaddafi's security the matter, the State Department has reconcile with Iraq's Saddam Hus­ adviser, Ahmad Qaddafadam, arrived ganged up withthe Soviets to impose sein, and was followed by a similar in Cairo to meet with Egyptian intel­ a reconciliation between Cairo and reconciliation between Libya's Qad­ ligence officialsto initiate preliminary Tripoli, as soon as possible. dafi and Iraq. reconciliationtalks. Libya is ready to For the Foggy Bottom diplomats, In these moves, Moscow makes stopfinancing the opposition "if. . . ." such a reconciliation is considered an few concessions, for much larger Though an Egypt-Libya reconcil­ essential step for paving the way to gains. It helps its satraps to come out iation is a prize in itself for both Mos­ broader regional agreements between of their years-long isolation, harvest­ cow and Tripoli, an immediate aim is Moscow and Washington, encom­ ing much-needed financial benefits, to use Egypt to neutralize the threat passing a general trade-offof spheres while it receives meanwhile the eter­ against Libya which is coming from of influence between North Africa, the nal gratitude of many Arab conserva­ the south---'Chad. Initial attempts at Middle East, and Afghanistan. Many -tive countries which, like Saudi Ara­ establishing: a new modus vivendi be­ of these are expectedto be ratified in bia, had unsuccessfullytried for years tween Libya and Chad, through indi­ the days following the Venice sum­ to mediate such reconciliations. Mos­ rect negotiations with Chad's Presi­ mit, in the first official meeting in a cow is becoming the new Mecca of dent Hissene Habre, have yielded lit­ year between Undersecretary Richard Pan-Arabism. tle so far. Chad maintains its argument Murphy and Vladimir Polyakov of the And while Washington is attempt­ that the Libyan-occupied Aouzou strip Mideast department of the Soviet For­ ing to overcome its years of secret ne­ belongs to Chad. In tum, Tripoli is eign Ministry. gotiations with the mullahs by finally ready to tum a new leaf in relations Though there have been many in­ taking a high profile against Iran, between the two countries, if Aouzou formal consultations between the two Moscow can keep in the background is left out of any negotiations, an un­ since then, their last official meeting its hundreds of Iranian assets, com­ acceptable position for the Chadian was held in Stockholm in June 1986, prising the Soviet and East German leader. and decided on the re-entry of Syrian educatedmulla hs. However, bypassing Paris, the troopsinto Beirut. Egypt has fallen preyto these cyn­ State Departmenthas begun threaten­ For the State Department a recon­ ical calculations. It has indeed been ing the Chadians that they should ac­ ciliationbetween Egypt andLibya now given little choice. Having beenforced cept the Libyan offers . The point was is aimed at fostering a new spirit of to sign a new agreement with the In­ driven home when, under similar "detente" in the Mediterranean re­ ternational Monetary Fund, under the pressures,the Egyptians began to pull gion, complementary to an expected blackmail that American wheat deliv­ out from supporting Chad in recent breakthrough on INF negotiations on eries tothe countrymight be suspend­ weeks. Behind Moscow's blackmail the European theater. Believing thatit ed, it is known in Cairo that social is the consideration that a new crisis has the wholehearted support of the unrest lies ahead in the near future. between Chad and Libya would not Soviet Union, in its new, and rather The IMP demands are quite ex­ only endanger the new cooperationes­ late, crusadeagainst Iran's ayatollahs, plicit as to theirconsequences for the tablished in the Mediterranean, but Washington is ready to make many Egyptian masses-more suffering. could even endanger the broaderU.S.­ compromises, and take Moscow's bait With it, the secular and religious op­ Soviet negotiations over Europe and that "reconciliation" is the order of the positions to the regimeare ju st biding the Middle' East. Egypt and Chad's day. theirtime lead to demonstrations which national interests matter little for these It began with Moscow's order to could be a replay of the January 1977 appeasers.

54 International EIR June 19, 1987 From New Delhi by Susan Maltra

Butchery in the land of ahimsa* discounted, and rumors attribute the *Non-violence; the backbone of India's moralistic foreign move to a leading politician and the Uttar Pradesh chief minister himself, policy, betrayed in a new orgy of communal rioting . who reportedly wanted to expand his base from the narrow confinesof east­ ernUttar Pradesh. But the Congress politicians are not the only cynics, according to the On May 18, three days after Prime wounded in Meerut alone. That in­ son of the Imam of Delhi's Jama Mas­ Minister Rajiv Gandhi attacked the cludes at least 50 from a single village jid, India's largest mosque, and a foreign conspiracy to undermine In­ outside of Meerut who were burned leader of the militant Muslim group, dia's independence, an orgy of blood­ alive or shot in the back of the head Adam Sena. ''The political leaders and letting between Muslims and Hindus and dumped into a canal by the PAC parties don't want to solve it," he told broke out in Meerut, a city of 600,000 themselves ! Unofficial estimates of the theIllustrated Weekly. "They have to in western Uttar Pradesh, and spread dead are in the thousands . More than fight elections and can use it as an quickly to the "walled city" of Old 2,500 were arrested in Meerut city issue for getting votes. Thus, in the Delhi. (where prison capacity is only 800). Janata Party, Syed Shahbuddin canget It was the worst communal rioting Property damage has been estimated the Muslim vote, and the other leaders in 40 years in Uttar Pradesh, home of at $20 million and business losses at who are supportingHind us, the Hindu 25% of the nation's 100million- strong more than $50 million. vote." Muslim minority, and gave another Beyond the bodies and lost prop­ As early as 1984,Hindu and Mus­ boost to the graph of domestic vio­ erty is the destruction of trust-be­ lim "action committees" had begun lence that has jumped sharply in the tween Muslim and Hindu, between the agitating on the issue, and on April 5 last two years . Already more people government and the people. The po­ this year, as a direct run-up to the have been killed this year in commun­ larization of the police is just one Meerut riots, 200�000 Hindus were al clashes than in the whole of 1986. expression of a political process that assembled at the site of the shrine to But if the pattern of worsening has been significantly corrupted since pledge "a fightto the death" to secure communal and domestic violence is the days when Mahatma Gandhi set it. Days earlier, a massive gathering one of the most serious policy prob­ the standards. of Muslims in Delhihad taken the same lems facing the government, it is also No one takes seriously the claim vow. one which the Rajiv Gandhi adminis­ by Uttar Pradesh Congress (I) Chief The collapse of moral authority in tration is apparently loathe to confront Minister Vir Bahadur Singh, "We the political process has been paced squarely, as the feeble efforts to float never expected this." Just weeks be­ by a resurgence of communal activity reports of the arrests of several suspi­ fore , in April, the city had been put on several levels . According to public cious Pakistanis in Meerut testified. under curfew for 12 days, as rioting reports , communal organizations, The arson, looting, and murder that flared and more than 10 were killed. which numbered less than a dozen in spilled out of Meerut took 10 days to And, for at least a year, documented 1951, now number more than 500. quell, and that, too, with the help of 5 reports had been circulating about the Active membership is estimated at army battalions, 7 divisions of the communalization of the PAC. several million, and leadership is being Central Reserve Police Force (CRPF), The immediate issue then, as now, taken over by affluent and articulate and more than 33 companies of the remains unresolved-the fate of a individuals. Provincial Armed Constabulary shrine in Uttar Pradesh that is claimed The Union Home Ministryhas also (PAC), the equivalent of the Ameri­ by both religious groups. Precisely noted an unprecedented spurt in con­ can state troopers . In the parts of Old because of the inflammatory nature of struction of religious buildings Delhi the army took over directly, a the dispute, the shrine has been under throughout the country. In Delhi it­ round-the-clock curfew was slapped governmentlock and key for 40 years. self, their numbers have jumped from on. The claim that F aizabad District Judge 560 in 1980, to more than 2,000 to­ It is impossible to verify the toll of K.M. Pande did not know what he was day. In Uttar Pradesh, the number of this barbarism, though reported offi­ doing when he ordered the shrine un­ large religious buildings has risen from cial estimates are 150 dead and 1,000 locked on Feb. I, 1986 is generally 4,000 to 6,700.

EIR June 19, 1987 International 55 International Intelligence

against the government's farm policy in the singular proposal that in order to avoid use British SA S gears up first week in June. More than 10,000 farm­ of detergents, which pollute the environ­ against Soviet sp etsnaz ers gathered in the streets of Oslo, a day after ment-particularly dishwashing deter­ farmers in the north of the country block­ gents-each citizen should clean his plate aded a dozen dairies. every day by wiping it off with a piece of Britain's elite special forces are being reor­ Negotiations between the farmers and bread . ganized to face the growing threat of terror­ government over the past two years have This custom is similar to a cuMom of the ist attacks and Soviet spetsnaz (special ir­ resulted in nothing but a lowering of farm­ monks of Mount Athos, the famous mon­ regular forces) deployment against its mili­ ers' living standards by 10% per year. The astic peninsula in Greece where no females tary bases, reports the June 7 Sunday Times. last straw came when this year's negotia­ are allowed-not even female animals. The Under the public terms of the reorgani­ tions broke down at the end of May. monks do not use plates at all . but their food zation, the Special Air Services and the Spe­ Norway's farmers have generally en­ is deposited in a bowl-shaped cavity in their cial Boat Squadron (SBS) will be placed joyed a higher status than their counterparts tables. At the end of their frugal meals, each under a new Special Forces Group Head­ in other European countries. After mass farm monk wipes out the cavity with his bread. quarters at the Chelsea barracks in London, protests in the 1970s, which shut down na­ which will be under the command of the tional dairy production, Norwegian farmers Joint OperationCenters at the Defense Min­ obtained one of their top demands, a law istry. mandating a rise in their net income to equal French fo reign ministry Some 200 members of the Comachio that of industrial workers . tipp ed off terrorist Group, an elite unit of the Royal Marines, Currently, farm income is far below this will be assigned to the SBS. The remainder norm, and in the north , does not reach half French police and interior ministry officials of the Comachio Group, usually deployed the legally mandated level. to protect North Sea oil rigs, will now have have accused someone in the French foreign ministry the responsibility of protecting the Clyde of tipping off Iranian embassy of­ ficial submarine base. Wahid Gordji, allowing him to escape Polish officialattacks a June According to William Massie of the 3 raid that netted 57 Iranian-linked terrorists belonging Sunday Express, one obvious source of a Russia on Katyn massacre to the Committee in Solidarity with Soviet spetsnaz threat to Britain is seamen Arab Political Prisoners, ac­ cording to the newspaper Le Parisien. employed by non-Warsaw Pact ships. For the first time since 1945 , a Polish func­ Gordji, the son of Khomeini's personal "Thousands of Warsaw Pact seamen with tionary has implicated the Soviet Union for physician while in exile in France, is iden­ military training, on crew ships that sail reg­ the spring 1940 massacre of 4,500unarmed tified as the number-two man in the Iranian ularly in and out of British ports near key Polish officers in the Katyn forest, near embassy by counterintelligence sources. He defence installations . . . [are1 causing alarm Smolensk in Russia. escaped to Switzerland following his tip­ in Whitehall." Ludwig Krasucki, editor of Nawe Dragi off. Western shipowners hire Eastern Euro­ and member of the Polish Communist Par­ French police named Gordji as the con­ pean seamen through special organizations ty 's committee on ideology, said: "Many of troller of recently dismantled terror net­ in Warsaw Pact capitals, because the sea­ us think the Russians did it ." Under the Hit­ men, who have the status of members of the ler-Stalin Pact which partitioned Poland, the works responsible for a Paris bombing spree last year. Fuad ali Saleh and Mohammed al defense forces in their home countries, need Polish officers were captured by the Red Mohajer have been charged with the Sep­ bepaid only naval wages, i.e., £12 a week­ Army , after Hitler attacked the country . Till much less than Western sailors. Krasucki's statement, issued shortly before tember aQd October 1986 bombings. All in The Special Branch of Scotland Yard the Pope's arrival in Poland, every Polish all , 57 Iranians were rounded up throughout told the newspaper they do not know how official has, for the public record, followed France, and most have beendeport ed. Gordji many Eastern European seamen are hired by the Soviet line, and blamed the atrocity on was supppsed to be among them. Le Figaro British shipping firms . the Germans. and other newspapers said Gordji most likely had a diplomatic pass­ port, and that someone in the foreign min­ NorwaY'sfarmers Mount Athos monks istry told him to leave the country "rather than create a diplomatic crisis." He comes take to the streets inspire Italian Greens from a prominent Iranian family, which has served as a private channel betweenthe Ira­ For the first time in l3 years, Norwegian The latest issue of the Italian environmen­ nian and French governments in financial farmers conducted mass demonstrations talist monthly, N uova Ecologia, contains the and hostage negotiations.

56 International EIR June 19, 1987 Bniefly

• CARDINAL Joseph Ratzinger, Prefect of the Congregation for the Doctrine of the Faith at the Vatican, has prohibited the publication in Italy Expecting retaliation for its crackdown, No further details on the treaty have been of two books by Brazilian "theology the government in Paris has called on its released, but the signing came only two days of liberation" priests. The books are , citizens to leave Iran as soon as possible. after the Soviet defense ministry announced The Trinity, Society and Liberation, that it had "completed the partial withdraw­ and The Church of the Poor, by the al" of Soviet troops from Mongolia, "begun brothers Leonardo and Clodovis Boff. Fanatics threaten to in April." An estimated 11,000of the 75,000 They will face disciplinary charges if Soviet troops stationed in Mongolia have destabilize Israel they go ahead with publication. Both been withdrawn, including several army books have been published in Brazil. units and one motorized rifle division. A coalition of "Jewish fundamentalist" par­ The announcements were timed to co­ SPY SCANDALS in Japan con­ ties of fanatics has given the current Israeli • incide with the June 8 arrival of Chinese tinue. A third Soviet spy has been government until July 20 to decide in favor Prime Minister Zhao Ziyang in East Berlin. uncovered at the Soviet embassy in of 27 new settlements they are demanding Zhao will meet with East German party boss Tokyo. Viktor Askyutin was forced on the occupied West Bank, or they will Erich Honecker. tp return to Moscow after refusing to withdraw their support from Prime Minister cooperate with Japanese authorities. Yitzhak Shamir's Likud party , collapsing the coalition government. • JOACHIM GARCIA Ribes, the Leading the right-wing coalition is the French leaders callfor sole Spanish survivor of the Nazis' Tekhya (renaissance) party of Israeli intel­ Treblinka death camp, gave sworn ligence covert operations specialist Raphael 'crusade fo r development' testimony June 8 that John Demjan­ "Dirty Rafi"Eytan and nuclear scientist Yu­ French Interior Minister Charles Pasqua, juk is not "Ivan the Terrible," the val Ne'eman. This is the same coalition speaking at the national convention of the death-camp guard. Demjanjuk, a re­ known to be behind the Jewish settlers in the neo-Gaullist RPR party at Porte de Ver­ tired Detroit autoworker, is on trial West Bank who went on a rampage June 7 sailles on May 24 , called for France to as­ as "Ivan" in Israel, based on Soviet­ against a Palestinian refugee camp near sume a leading role in reversing the econom­ supplied evid¢nce. Garcia Ribes said Bethlehem, and then fought with Israeli sol­ ic collapse of Third World countries. "We that the original "Ivan" had a much diers. can no longer tolerate, at the end of the 20th smaller head than Demjanjuk, was Also among the coalition is Meir Ka­ century , the gulf that separates the countries older than Demjanjuk could have been hane 's Kach party . Kahane, founder of the of the Third World from the developed in 1943, and, he believes, was killed Jewish Defense League in the United States, countries," he said, "the waste in the coun­ by camp inmates. was recently deprived of his rights in the tries of the North in the face of famines in Israeli Knesset (parliament) after refusing to the South. This is not uniquely our vocation; P.W. BOTHA, swear the officialoath of office. Kahane will • the South Afri­ it is everybody's interest. France must take remain a member of the Knesset, but lose can President, on June 4 visited the the leadership of a new crusade for devel­ almost all rights and privileges; he will nei­ black townshipof Sharpeville, site of opment, as she was able to do in Africa or ther be able to vote nor be elected to any a notorious massacre of blacks in in Madagascar. " parliamentary function. However, he con­ 1961. This was his firstvisit to a ma­ Premier and RPR party head Jacques tinues to enjoy parliamentary immunity . jor black township since he was elect­ Chirac stated in his speechto the same con­ Knesset chairman Shlomo Hillel declared ed Presidentin 1984. He was accom­ vention, "Fifteen years from now, we will that Kahane could come back anytime, if he panied by sevencabinet ministers. not be able to look our children in the eye if took the oath. today we allow two-thirds of the world's • THE MATHIAS RUST incident population to die of hunger." was "premeditated," claimed Radio China, Mongolia Chirac and his cabinet ministers have Moscow in a � une 10 broadcast. West been fighting fora "Marshall Plan" for Third German citizen Rust, held in Mos­ sign border treaty World development, particularly the devel­ cow's Lefortovo KGB jail since late opment of Africa, in coordination with the May, when he flew his light Cessna China and Soviet-controlled Mongolia have efforts of Pope John Paul II. to Red Square across 600 kilometers just signed a border treaty, which establish­ The RPR is launching a domestic cam­ of Soviet territory unimpeded, could es the framework for settling outstanding paign to mobilize France to become the face 10 years imprisonment for vio­ territorial disputes. The move is the latest in leader of the "great market" which Europe lating Soviet airspace, said the broad- . an ongoing process of Soviet-Chinese rap­ will be, without its customs barriers, by cast. prochement. 1992.

EIR June 19, 1987 International 57 �TIillNational

Congress bungles probe of intelligence board by Jeffrey Steinberg

It was a stunning stroke of Hollywood choreography. With stitution, federal laws, executive orders , and presidential all eyes and television cameras riveted on the Iran-Contra directives. affair's only genuine sex starlet, Fawn Hall, the brief ap­ Yet, it was a series of lOB '''findings'' dating back to the pearance of Bretton Sciaroni, the general counsel to the Pres­ spring of 1985, that Lt. Col. Oliver North and others have ident's Intelligence Oversight Board (lOB), before thejo int cited as the legal basis for the National Security Council's congressional panel, on the morning of June 8, 1987, was role in coordinating lethal aid to the Nicaraguan Contras treated with all the seriousness afforded an amateur standup during the period of the Boland Amendment's ban on such comic warming up a Las Vegas nightclub audience for the efforts. main attraction. With that as the backdrop, Congress, by all rights, should Occupying less than four hours of the Iran-Contra panel's have defined the lOB as a priority target of its inquiry. What time, the Sciaroni testimony may go down in the Contragate in fact happened was quite different. In plain English, "Con­ record books as the single most effective-and blatant­ gress was had." cover-up of the entire televised congressional probe, one that sought to bury an absolutely critical piece of the "secret Incompetence or design? parallel government" under a thick cover of bungling "in­ In his opening remarks before the joint committee on June competence. " 8, Sciaroni, the 35-year-old general counsel to the lOB, took Since the April 1987 release of EIR ' s special report"Pr oj ­ full personal responsibility for a Sept. 12, 1985 Board mem­ ect Democracy: the parallel government behind the Iran­ orandum that found: 1) "that the Boland Amendment was not Contra affair," this publication has been emphasizing the role applicable to the NSC because it was not part of the intelli­ of the Intelligence Oversight Board, which emerged out of a gence community"; and 2) "that the nature of Lt. Col. North's series of late 1981 Executive Orders and National Security activities . . . did not constitute a violation of the Boland Decision Directives that radically expanded the powers of Amendment even if it applied to the NSC staff." the various intelligence agencies, including the FBI, to the Under cross-examination by the panel, Sciaroni admitted overall benefit of the "illegal" private, networks operating on that the sum total of his investigation into the NSC's role in the periphery of the official intelligence community. Within theContra aid program consisted of a five-minute "late eve­ this overall restructuring, the Intelligence Oversight Board ning" conversation with his friend Oliver North, a 30-minute was empowered with the specificresponsibility to investigate interview with Navy CommanderPaul Thompson, the attor­ and report to the President any activities conducted by the ney for the NSC, and a perusal of a six-inch stack of pre­ intelligence community that might be in violation of the Con- screened NSC documents dealing with the Contras. Sciaroni

58 National EIR June 19, 1987 acknowledged that the September 1985 finding was the first tionals. The Executive Order at the same time explicitly such evaluation of a federal statute that he had ever under­ prohibited any agencies of governmentnot falling within the taken. formal definitionof "intelligence community" from engaging (In April 1985, Sciaroni had sent a draft opinion on "the in any form of covert operations. That dimension of Execu­ legal basis for covert actions in Central America" to North, tive Order 12333 was "overlooked" by Sciaroni in his en­ soliciting his comments.) dorsement of the NSC's covertoperations role with the Con­ Sciaroni then gratuitously admitted to having failed four tras. Oliver North's involvement in the Iran-Contrabusiness separate bar examinations in California and Washington, was explicitly in violation of Executive Order 12333! D.C. between 1979-84 before finally passing the Pennsyl­ vania bar in July 1984-the day before he began his job as Who's who on the lOB general counsel to the lOB at a starting salary of $62,000 a While Sciaroni was painting a picture of amateurish in­ year. competence at the lOB, the congressional panel failed to even All of this prompted Sen. George J. Mitchell (D-Maine), take note of the personnel who actually make up the presi­ a former federal judge, to chastise Sciaroni and the lOB: dentially appointed board. Even a cursory review of these "The dictionary, Mr. Sciaroni, defines 'oversight' in two individuals provides a clue as to the actual clout behind the ways. One is 'a failure to notice or consider an omission due lOB . to carelessness.' Theother is 'supervision with watchful care.' As of the summer of 1984, when Sciaroniwas being hired I think it's fair to say [that the Executive Order setting up the as general counsel and Congress was preparing to enact the lOB] intended the latter. But its hard to conclude this opinion Boland Amendment in response to evaluations of the CIA represented anything but the former." mining of Managua harbor, the lOB was made up of: • Wesley Glenn Campbell, the lOB chairman. The Ca­ Missing the forest for the trees nadian-bornCampbe ll, also a member of PFIAB since 1981, EIR's probe of the lOB and Executive Orders 12333 and has been the directorof the Hoover Institution of War, Peace 12334 of Dec. 4, 1981 points unavoidably to the conclusion and Revolution at Stanford University since 1960. Prior to that Bretton Sciaroni' s apparent bungling of the September his post at Hoover, Campbell was research director of the 1985 investigation and his studied, embarrassing ineptitude American Enterprise Association, the forerunner to the before the Congress were nothing other than a "dog and pony American Enterprise Institute, a Washington, D.C. neo-con­ show" aimed at covering up the central role of the lOB in servative think tank deeply implicated in the Project Democ­ steering and protecting the illegal parallel government now racy affair. It should be noted that following his completion caught up in the Iran-Contra affair. of his law degreeat UCLA in 1978, Bretton Sciaroni worked On Dec. 4, 1981, President Ronald Reagan signed into exclusively for Hoover Institute and AEI up to his July 1984 law two Executive Orders , 12333 and 12334. The latter for­ appointment to his lOB post. It is a fair assumption that mally reconstituted the Ford-era Intelligence Oversight Board Sciaroni was installed as an asset of Campbell, who also as an arm of the Executive Office of the President. The three­ served on Ronald Reagan's Transition Team on Intelligence member board, to be chaired by a standing member of the Policy in late 1980. The Transition Team's recommendations President's Foreign Intelligence Advisory Board (PFIAB), formed the basis for Executive Orders 12333 and 12334. and drawing "from among trustworthy and distinguished cit­ • Charles Jarvus Meyers, president of the lOB since izens outside the government who are qualifiedon the basis 1982. Thefo rmer deanof theStanf ord UniversityLaw School, of achievement, experience and independence," was given Meyers is now a practicing attorney in Denver. broad oversight and investigative authority to probe any ac­ • Charles Tyroler. A Washington, D.C. attorney, Ty­ tions by the intelligence community in possible violation of roler was a founder and active memberof the neo-conserva­ the law. tive Committee on the Present Danger (CPD) , a group whose The laws governingthe responsibilities and powers of the membership includes numerous figures since implicated in U.S. intelligence community were themselves broadly ex­ the Project Democracy scandal. panded under Executive Order 12333, which provided broad authorization for the FBI, CIA, National Security Agency, John Norton Moore: lOB's legal brains State Department Bureau of Intelligence and Research, and Executive Order 12334, which createdthe lOB , provided the military intelligence branches-plus outside contract for the hiring of both "full-time staff and consultants as au­ agents-to engage in domestic spying, electronic surveil­ thorizedby the President." EIR' s investigation has identified lance, break-ins, and other covert activities in cases where Prof. John NortonMoore of the University of Virginia Center foreign intelligence activity, terrorism, or narcotics traffick­ for Law and National Security as the chief consultant, and, ing were suspected. The broad expansion of power applied indeed, the actual legal brain behind the lOB effort. No to the targeting of American citizens as well as foreign na- evaluation of the role of the lOB in the Iran-Contra scandal

EIR June 19, 1987 National 59 and in the broader activities of what Senator Boren has la­ ports, this conferenceprepared the more fine-tuned blueprint beled the "secret parallel government" can be considered for the "privatization" of the U.S. support for the Nicaraguan complete without a thorough probe of Professor Moore. Contras . Professor Moore, along with a former CIA official, A member of the New York Council on Foreign Rela­ Douglas Blaufarb, apparently urged that a "new bureaucratic tions, John Norton Moore has served in a number of State nerve center," preferably hOl$ed at the National Security Department and National Security Council posts dating back Council, be constituted to overcome thebureaucratic infight­ to 1972, when he served Secretary of State HenryKissinger ing that had up until that pointsabotaged the effective coun­ as State Department Counselor on International Law. From terinsurgency mission in Central America. Another attendee 1973 to 1976 he served as chairman of the National Security summed up the overall objective of the session as "privatizing Council Interagency Task Force on the Law of the Sea, serv­ theReagan Doctrine." ing simultaneously as Elliot Richardson's Deputy Special Was Moore perhaps the actual author of the "legal find­ Representative to the Law of the Sea Conference with the ing" supporting the NSC's plunge into private covert war­ rankof ambassador. fare? In the January 1986 issue of the American Journal of Aside from his special status as the sole paid consultant International Law. Moore penned a 94-page article summa­ to the Intelligence Oversight Board, Professor Moore, since rizing his arguments before the World Court under the re­ 1984, has been the attorney representing the United States vealing title ''The Secret War in Central America and the before the World Court in a suit brought by the Sandinista Future of World Order." Ad�ssing the ongoing activities government charging U.S. violation of Nicaraguan sover­ of theNational Security Council in directing the private sup­ eignty. In February 1986, he becamethe first chairmanof the portoperations to theContras , he wrote: U. S. Institute of Peace, a congressionally funded parallel to ''TheUnited States alsohasl not violated any national law the National Endowment for Democracy which lists among concerning the use of force, such as the War Powers Reso­ its directors a gaggle of Contra-linked neo-conservatives in­ lution, the neutrality acts and the Boland Amendment. . . . cluding the Heritage Foundation's directorof foreign policy The BolandAmendment, which prohibits U.S. assistance to Bruce Weinrod, the Hoover Institution's associate director the 'democratic resistance'fo�s for purposes of overthrow­ Dennis Bark, and Evron Kirkpatrick, the husband of former ing the Sandinista government, nonetheless permits U.S. United Nations ambassador Jeane Kirkpatrick. assistance to such forcesfor the collective defense of Central Heralding the now-discredited NED, Moore wrote in a American states. Indeed, the House's adoption of the Boland June 1986 op-ed in the Christian Science Monitor. "President Amendment followed the rejection of a proposal to deny Reagan established the NationalEndowment for Democracy funds for the purposeof carrying out military activities in or toengage America more effectivelyin promotionof freedom against Nicaragua and a second proposal to deny funds to and democracy in the global struggle for ideas . The United groups or individuals known by the United States to intend States Institute of Peace is an institution in this greatAmeri­ to overthrow the Government of Nicaragua. The clear intent can tradition that hopefully will make an important contri­ of Congress, like that of the administration, was that the bution toward the control of violence and achievement of a United States should limit its response against Nicaragua to just peace of freedom and human dignity." actions necessary and proportional to a hemispheric defense Most importantly, Moore has been a participant in vir­ against the ongoing secret atta¢k" [by Nicaragua against its tually every planning session marking every phase of the Central American neighbors]. Reagan administration' s plunge into the morass of the Iran­ Since 1971, Professor Moore, along with Princeton Uni­ Contra debacle: versity's Richard Falk, an enthusiastic and active supporter • In December 1980. he took part in a planning session of the Khomeini Islamic fundamentalist revolution of 1979, of the Consortium for the Study of Intelligence, directedby has beenone of the leading world-federalist "specialists" in Georgetown professor Roy Godson, at which ex-Deputy CIA internationallaw as applied to low-intensity conflict, wars of director Theodore Shackley presented a formula for U.S. national liberation, and international terrorism. covert involvement in Central America through the building H the congressional panel members want to get to the up of a covert army equipped with massive stockpiles of heart of the secret government-to the juridical rationale arms, airliftcapabilit ies, clandestine airstrips , etc. The same behind the crimes of Contragate-attention must be refo­ Theodore Shackley was the original contact point between cused back on the lOB . This time. rather than gloating over the Reagan NSC and Iranian armsbroker Mansour Ghorban­ the flaunted incompetence of a designated, well-paid fall­ ifar. guy, Congress should begin by studying the texts of Execu­ • On March 4-5 , 1983 Moore attended a private confer­ tive Orders 12333 and 12334, as well as the still classified ence on "Special Operations in U. S. Strategy," sponsored by follow-on National SecurityDecision Direct ives. the National Strategy Information Center and Georgetown Then bring on the serious players-such as John Norton University. Among the other participants at this event were Moore-who are the intellectual authors of the Iran-Contra Shackley and Oliver North. According to recent news re- mess.

60 National EIR June 19, 1987 tion is the OSI targeting of Austrian PresideptKurt Waldheim as a "Nazi," to aid Soviet destabilization of central Europe. [On June 8, the sole Spanish survivor of Treblinka, Joachim Garcia Ribes, gave sworntestimony in the trial that John Demjanjuk is not the "Ivan the Terrible" death-camp guard. Garcia Ribes said that the original "Ivan" had a much smallerhead than Demjanjuk, and was much older, in 1943, than Demjanjuk would have been then. Garcia Ribes also testified that he believes the original "Ivan" was killed by camp inmates, in 1943.] Perhaps the most revealing feature of Ryan's letter is its servile tone and its adoption of Soviet propaganda tenninol­ More proof the ·OSI ogy. Ryan typifies those Justice Department operatives who hope to legitimize the Soviet "legal system" by tenning So­ viet murderers, such as Rekunkov, "fellow prosecutors"and must be shut down "colleagues." The text of the letter follows:

EIR was forwarded a photo-reproduction of a May 30, 1986 Dear Mr. Rekunkov: letter which offers fresh evidence of the reasons why the You will recall that in February of 1980 I met with you Justice Department's Office of Special Investigations (OSI) and with then-Procurator General of the U.S.S.R. Rudenko must be shut down, as a hotbed of KGB-runtreason against to request, on behalf of the United States Government, the the United States. The letter is from fonner OSI director assistance of the Soviet Union in the search for Hitlerite Allan Ryan to Soviet Procurator General Alexandr Rekun­ criminals living in the UnitedStat es. Throughyour help, the kov. Mr. Ryan, now legal counsel for Harvard University, Soviet Union provided great assistance and as a result the acknowledged sending a letterto Rekunkov on that date, but Office of Special Investigations of the Justice Department refusedto either confinnor deny the accuracy of the contents was able to proceed successfully against a numberof fonner of the letter, reproduced below. Soviet citizens who had managed to escape to the United As the reader can judge for himself, the letter illustrates States after the war. the degree of frank cooperation between the OSI and the I left the Department of Justice in 1983 and I wrote a Soviet Procurator General's Office, in conduiting Soviet book entitled Quiet Neighbors: Prosecuting Nazi War Crim­ "evidence" into the U.S. legal system, for use against U.S. inals in America, of which perhaps you have been infonned. citizens. In most cases, these Americans, usually fonner I described the unselfish cooperation of the Soviet side and citizens of nations now suffering Russian occupation, were you personally in our efforts. It has always been a source of only targeted by the OSI after previously being labeled "fas­ great satisfaction to me that, whatever differences may have cists" and "CIA agents of imperialism," in Soviet propaganda existed between our governments d1lriog those years, the outlets . Department of Justice and the Procuracy worked closely and The Demjanjuk case cited by Ryan is typical. The sole on friendlytenns against the criminals of fascism. "evidence" submitted against John Demjanjuk, a fonner One of our most important cases was that against Ivan Cleveland autoworker, was a purported ID card drawn from (John) Demjanjuk, born in the Ukrainian S.S.R., the man Soviet military intelligence archives. The accusations against who operated the gas chamber at the death camp Treblinka. Demjanjuk by the OSI originated only afterDemjanjuk was A crucial piece of evidence in thatcase was the identification labeled a "fascist," and "war criminal" in a Ukrainian Com­ card from the training camp Trawinki, which was held in munist Party newspaper. Demjanjuk was subsequently rail­ Soviet archives. Although the Soviet Union had provided an roadedto Israel, where he is now the victim of a show trial. official copy of that card to us prior to thetrial , we requested The clear intent of Ryan's letter was to secure use of this card that the original document be made available temporarily in in Demjanjuk's ongoing trial. It was later flown to Israel, on order to refute the false claim of Demjanjuk that he was a plane of U.S.-based Soviet agent Annand Hammer. innocent and the identificationcard was a forgery . The background to the Demjanjuk case, and the Fedor­ Due to thecooperation of the Soviet authorities, the orig­ enko and Linnas cases referredto by Ryan, is a complex deal inal card was forwarded to the Embassy of the Soviet Union struck between the KGB , the Israeli Mossad, and the OSI in in Washington, where it was examined by the prosecution 1980. The deal provides for shipping batches of Soviet Jews and defense lawyers. Mr. Vadim Kutnetsov of the Embassy to Israel, in exchange for OSI and Mossad compliance in brought the document to the trial in Cleveland, where it was targeting U. S. and othernationals under the pretext of alleged examined by the judge. As a result of this evidence, the judge war crimes. The latest example of this treasonous coopera- ruled that Demjanjuk was a fascist criminal and he ordered

EIR June 19, 1987 National 61 that Demjanjuk's naturalized citizenship be revoked. That verdictwas upheld by the Supreme Court of the United States. I have no doubt that the original identification card from the Archives of the U.S.S.R. was the most important document Weekly EIR against Demjanjuk and the judge's inspection of it led directly Audio Reports to the successful verdict. In 1986, afterfurther proceedings, Demjanjuk was extra­ Cassettes ' dited pursuant to the formal request of Israel and he is now • imprisoned and facing trial. As we are both prosecutors, I am News Analysis Reports sure you will recognize that the case against Demjanjuk would • Exclusive Interviews be strengthened if the original Soviet document could be $250/Year made available to the judge in that case. I personally and respectfully request that you exercise your authoritiy to make Make checks payable to: available to the Israeli court the original Trawinki identifi­ EIR News Service, P. o. Box 17390 Wa shington, D.C. 2004 1 -0390 cation card that was made available to the courts of the U.S. Attn: Press I make this request in the spirit invoked by General Ru­ denko in our 1980 discussions, when he vouched that those MasterCard and Visa Accepted. who fought against fascism are allies still in that fight. While Demjanjuk was not victorious in the United States case, he now has a second chance in Israel. Ifhe should succeed there, it will be a defeat for anti-fascist allies everywhere. I fear that an acquittal of Demjanjuk could arouse public ASTON MARTIN SERVICES sentiment in the United States to discontinue the trialsagainst fascist criminals there and could jeopardize the deportation to the Soviet Union of those criminals who have been found guilty and whose appeals are nearing a conclusion. You are perhaps aware that the Ukrainian criminal Fedorenko has already been deported to the Soviet Union. Also, the Estonian Linnas has been ordered deported to the Soviet Union and has nearly exhausted his appeals. If on the other hand, Demjanjuk is convicted and sen­ tenced for his crimes, it will be a sign to all the world that KENNETH BOYD GREGORY BOYD Hitlerite crimes cannot be forgotten and that the fightagainst PO Box 396 - Npedles, CA 92363 fascism cannot be allowed to subside. In my opinion, such a 619-326-3131 verdict would strengthenthe support of the American people for the prosecutions and deportations that are being conduct­ ed here . I trust you will agree when I suggest to you that any victory for Hitlerite criminals, anywhere in the world, is a defeat for those who oppose fascism. Demjanjuk is only one man, but he has come to symbolize the efforts of anti-fascist peoples to bring Hitlerite criminals to justice. Those efforts continue today between the United States and the Soviet . SHOAT .,' Union in the spirit that you and General Rudenkoexpressed -. WHO? W T? WHY? > so eloquently to me in 1980, but we are not the only ones '-NOtwhat you think! Da�y limits soon. Exchange'-< who have attempted to do justice. I respectfullyappeal to you .cannot s. top this one �ecause it is differen. ·

�S$ �______� ____ � ______�� Yours very truly, lip Allan Ryan

62 National EIR June 19, 1987 Eye on Washington by Nicholas F. Benton

gress, in particular-Wrobleski's need to improve the judicial systems softness on questions of "state spon­ in other countries. sored narco-terrorism" and money­ What happened to laundering reveals a retreat from more aggressive stands once taken by Congress's role in the War on Drugs? administration spokesmen. Ever wonder what happened to the She flatly refused to concede that sabotaging the war President's great War on Drugs? Two there is any evidence of state-spon­ Congress is not blameless in under­ years ago , leading banks in the United sored drug trafficking, although when mining the War on Drugs, and even States were getting nailed by the Trea­ this reporterbrought the issue up, she causing some of the; better warriors to sury Department for gross violations was inundated by questions on this is­ toss in their towels. Besides slashing of the Bank Secrecy Act in accepting sue by other reporters , and finally con­ funding for the effort, some congress­ billions of dollars in cash deposits over ceded that in the Syrian-controlled men have done their best to throw a $10,000, and Treasury officials were Bekaa Valley of Lebanon, Syrian sol­ monkey-wrench into cooperative ef­ publicly saying this was laundering of diers seem to be aiding the export of forts between the DEA and key allies drug money. opium and hashish. She added that such as Panama and Mexico. One year ago, following the death there "is no control on opium produc­ For example, "Operation Pisces" from cocaine of University of Mary­ tion" in either Afghanistan or Iran, but has been an effective joint program land basketball star Len Bias, Presi­ would not say more . between the United States and Pana­ dent Reagan went on national TV with She claimed that the "Bulgarian ma, and the DEA has praised Pana­ his wife, to announce a major "War connection" has been shut down. "The ma's tough anti-drug measures, in­ on Drugs" offensive. This year, Rea­ days of them operating in that fashion cluding stiff new laws against bank gan's initiative has petered out to court are over," she said, adding that the money laundering. But those self­ battles over mandatory drug testing and Bulgarians are starting to cooperate righteous congressmen, like Sen. Jesse little else. with the United States by giving Helms (R-N.C.), who were yelling last Meanwhile, the trial of one of samples of seized drugs to the Drug year that Panamanian Defense Forces Bias's teammates brought testimony Enforcement Administration (DEA) chief Manuel Antonio Noriega was a that the slain star was not only a victim for analysis. drug pusher, are now bellowing be­ of cocaine, but a peddler himself. The She ducked the question ofmoney cause Noriega changed the bank laws U.S. has become "self-sufficient" in laundering altogether, answering in­ there ! marijuana production, and narco-ter­ stead about progress in asset-stripping The same kind of treatment has rorists are threatening coups in Burma of traffickers . been accorded Mexico, although and other Asian and Ibero-American She downplayed the significance Wrobleski said that for many years in countries. of extradition treatieswith the United the late 1970s-earlr 1980s, Mexico Three of the top names in the States, saying that "it is more impor­ was the world model for its anti-drug administration's War on Drugs, John tant that there is an effective justice efforts and cooperation with the DEA. Walker, Jr. at Treasury, Jon Thomas system in the nations that capture the The United States is as much to blame at State, and Dr. Carlton Turnerat the traffickers, than that they simply ex­ as Mexico for the problems of the last White House, have all left. tradite them all to the U. S." two years, she said. because the U.S. Remarks made at the Foreign Press The "fire in the belly" of the War was preoccupied with stopping co­ Center June 10 by Ann Wrobleski, on Drugs is gone, even if Wrobleski caine traffickingfrom other countries, Thomas's replacement as Assistant could point to the fact that 20 nations while Mexico was undergoing a seri­ Secretary of State for International are now engaged in crop-eradication ous economic recession. Narcotics Affairs , revealed the extent programs now, comparedto only two However, she said that good rela­ to which the teeth have been pulled in 1981. In recent times, there was an tions in the War on: Drugs have been out of the effort. urgency to nailing the big-time push­ reestablished, and the United States While speaking positively of some ers. That meant getting them to the certified Mexico as "cooperating with allies of the U . S. in the War on United States, where the laws are stiff the U.S. on drug control" last March. Drugs-like Mexico and Panama, enough to put them away for a long "Mexico-bashing is not useful in the which have come under firefrom Con- time, and not piously talking about the debate," she said.

EIR June 19, 1987 National 63 year o�eCONSTITUTION

u. s. bankruptcyaction disrupts government's 'LaRouche'_ prosecutions

The v. S. government's unprecedented action in throwing "Chinese Wall" between the bankruptcycase and the crimi­ three LaRouche-identified companies into involuntarybank­ nal case, or else he might have to dismiss the criminal case. ruptcy on April 20, is having major disruptive effects on criminal cases brought by the governmentagainst individuals Whose counsel? and organizations linked to the three companies. Themajor issue addressed in the June I hearing in Boston In a hearing in Boston on June 1, Federal Judge Robert was the question of who can authorize the lawyers for Cam­ E. Keeton again warned the government that he would dis­ paigner and Caucus to continue in the case. Since the govern­ miss federal indictments there if any action were taken by the ment took over management qf the allegedly bankrupt com­ Bankruptcy Court which impaired the rights of defendants in panies on April 21, the lawyers for these companies were his case. Judge Keeton had ordered the Interim Trustees in uncertain of their authority to continue representing their the bankruptcy proceedings to appear on June 1 to explain clients. the status of the lawyers for Campaigner Publications and The attorneys forthe Interim Trustees, who had traveled Caucus Distributors, defendants in the Boston case which to Boston to appear at the hearing, were unable to shed any have both been thrown into involuntary bankruptcy by the light on this problem. They said they had no authority to ' federal government. authorize the existing lawyers to continue, but that they had Defense attorneys have asked Judge Keeton to dismiss no authority the other way either. the Boston indictments because of the government's viola­ When Judge Keeton pressed them on this issue, citing the tions of the Sixth Amendment's guarantee of the assistance BankruptcyCourt order which put them in charge of running of counsel. There are two principal grounds for this motion: the businesses, the Trustees attempted to shift the issue to 1) The V. S. government invaded the joint defense by that of access to the seized legal documents. Judge Keeton bringing the bankruptcy action and obtaining the emergency sharplyrebuked them: "My question is who has the authority,

appointment of Interim Trustees. Since in bankruptcy a if anybody, to say to counsel of record in this case, • You are Trustee can waive the attorney-client privilege, this meant or are not to continue to represent Caucus and Campaigner that potential defense strategy and discussions could become in this criminal trial'? That's the question I want answered, known to the V.S. government. and I will not be diverted from that question." 2) During the course of the April 21 seizure of offices, TheTrustees argued that they did not have any such V. S. Marshals seized the legal office in Leesburg, Va. out of authority, and that perhaps only the bankruptcyjudge has it. which the joint defense in the Boston case was being con­ The current attorneys for Campaigner and Caucus pointed ducted. out that their status was uncertain because of the Trustees' At the first post-bankruptcy hearing in Boston, on May power to waive the attorney-clientprivilege . Judge Keeton's 4, where the government's invasion of the defense camp and responsewas that although he can not control what the Trust­ seizure of the legal files was first presented, Judge Keeton ees or the Bankruptcy Court do, he can control what goes on warned the government that they had better be building a in his courtroom.

64 National EIR June 19, 1987 "I have no concerns about my power to enter the orders Caucus are authorized to continue representing those com­ necessary to protect the rights of the defendants in this case. panies. He further directed that they are to consult with the And if somebody undertakes to do something that so preju­ persons designated by those companies,. not with the Interim dices your rights as to make this prosecution impossible to Trustees, thus removing the bankruptcy trustees and the go forward on a fair basis, I will dismiss it. That's the ultimate bankruptcy court from playing any role in the criminal de­ sanction." fense. In response to defense attorneys pressing the issue ofthe The judge also noted that the Boston trial originally power of the bankruptcy trustees to waive the attorney-client scheduled for April 6 and now scheduled for July 8, may be privilege, Judge Keeton continued: furtherdelayed . "And if he [the trustee] does, and if 1 findthat that waiver Should the bankruptcy trustees or the bankruptcy court has prejudiced the rights of the defendant in that case, and attempt to interfere in the criminal proceeding, Judge Kee­ there 's no way I can redress that prejudice short of dismissal, ton's implication was clear that he would consider dismissing I dismiss. Why isn't that adequate power to protect the rights the indictments altogether. of the defendants?" Judge Keeton added that if it were possible to redress any Trial delayed prejudice by a means short of dismissal, then he would do The trial of the Boston case will probably be still further that instead. delayed by the after-effects of the b�ptcy proceeding. When the first set of Boston indictment!!were issued on Oct. No precedent 6, 1986, trial was set for December. Then, after additional, The bizarre nature of the government's action poses a or "superseding," indictments were is�ued on Dec. 16, the situation in which all sides agree there is no legal precedent. trial was delayed until January, then to April 6. When it The Justice Department's action in throwing the three became clear that resolution of the more than 200 pre-trial "LaRouche" companies into bankruptcy is the first time in motions would take additional time, the trial date was post­ which the government itself has filed a petition to throw a ponedto June 1. company into bankruptcy (an unusual step normally taken by The government's institution of the bankruptcy proceed­ private, commercial creditors). It is also the firsttime in U. S. ing, five weeks before the scheduled start of the trial , has history in which the government has utilized the bankruptcy caused furtherdela ys. At the firsthearing following the bank­ laws to aid in a criminal prosecution. Defense attorneys in ruptcy proceedings, Judge Keeton rescheduled the trial for the Boston case have argued that the Justice Department was July 8, and reserved the June 1 date for evidentiary hearings. fully aware of the consequences, when it chose this novel However, June 1 was taken up with procedural matters aris­ course of action. ing from the bankruptcy, and now the next hearing is set for At the conclusion of the argument on this issue, Judge June IS. Keeton ordered that the current attorneysfor Campaigner and The firstmatter to be taken up on June 15 is that of defense

rights of a defendant in this criminal proceeding, there may not be a remedy for it. . . . I think there is a serious quesQon about whether this Court and the criminal matter before it has jurisdiction 'Chinese wall' to enjoin or stay a bankruptcy proceeding in another juris­ diction or to order things to be done in that bankruptcy On May 4, Judge Robert E. Keeton warned government proceeding. It seems to me it's probable that I do not have prosecutors asfollows regarding the relationship between that kind of jurisdiction, and the jurisdiction I do have is the bankruptcy case (a civil proceeding) and the Boston the jurisdiction to protect your clients by appropriate or­ prosecution (a criminal case): ders with respect to this proceeding if anything is done by them that impairs the rights of the defendants in this pro­ Well, now , let me just express a concern about their [the ceeding . . . it seems to me the answer to the arguments bankruptcy trustees] handing anything to you. 1 am quite you are making about the need for protection is, of course, serious in saying to you that you better be building a the Court has the authority to give you that protection by Chinese Wall because there are serious conftictof interest the ultimate sanction of dismissal if there are such inter­ problems here. And if anything is done that impairs the ferences with those interests that that is required.

EIR June 19, 1987 National 65 motions to dismiss the case due to governmental misconduct cases have taken the completely novel and unprecedented in harassing defense lawyers . Defense lawyers have charged approach that loans made to political organizations and pub­ that the government has systematically attempted to intimi­ lishers are in fact "investments" which should be governed date defense lawyers, including by threatening the lawyers by state "blue sky" securities ;laws. themselves with investigation and possibly being indicted. In the New York case, Judge Stephen Crane ordered that At the June 1 hearing, Judge Keeton also heard additional court-appointed attorneys be retained for many of the defen­ arguments on the standards to be applied in hearing this dants who had previously been employed by the bankrupt motion . He stated that he will now decide whether or not to companies. New lawyers have been appointed for a number hold an evidentiary hearing on this matter. "I think the matter of the defenda�ts, and the next status conference has been is of sufficient importance that I want to have more time to scheduled for June 12. No trial date has yet been set for the consider it," he said. "If it takes more time and I then con­ New York case . clude that I should have an evidentiary hearing, it very likely will delay our trial date ." Seek bankruptcy dismissal Defense attorneys have asked for a number of other evi­ Meanwhile, attorneys for the three companies which were dentiary hearings as well. The most important of these con­ petitioned into involuntary bankruptcy on April 20 have filed cern: • Motions to suppress evidence, based on the unconsti­ tutional and illegal nature of the Oct. 6 search and seizure in Leesburg, Va. ; • Motions to dismiss the indictments on grounds of se­ lective and vindictive prosecution, arguing that the defen­ FBI on the rampage dants were singled out and targeted for prosecution because of their political views and because certain factions in the government were opposedto policies they advocate . One of Henry E. Hudson, the u.s. Attorney in Alexandria, these motions cites specifically the renegade National Secu­ Virginia, has reportedly b�en taking his lumpsfo r hav­ rity Council operation under Lt. Col. Oliver North, which ing damaged the government's criminal cases by his was directly competing for fundraising dollars with the initiation of the bankruptcyproceedi ng . His response LaRouche movement. These motions also charge that the has been to deploy hordes of FBI agents across the defendants were targeted for dirty tricks under a renewed countryto harass contriburors and supporters of pres­ "Cointelpro" program pursuant to Executive Orders 12333 idential candidate Lyndon H. LaRouche. It is believed and 12334. that hundreds of contributors have been visited in their • Motions to dismiss the indictments on grounds of grand homes or places of work by FBI agents, who have jury abuse and illegal leaks of secret grand jury information. warned them about lending and contributing fu nds, These motions cite particularly the barrage of news stories subscribing to publications, and even about signing about the Boston grand jury investigation which surfaced telegrams to the Attorney General protesting the treat­ following the victory of two LaRouche Democrats in the ment of LaRouche'sfr iends and associates. March 1986 primary elections in Illinois. Some FBI agents have gone so fa r as to tell con­ tributors and lenders that ifthey cooperate with the Other cases delayed FBI, they can get their money back, or that they should State criminal prosecutions against numbers of LaRouche hire lawyers to collect their money. What these lying associates in Virginia and New York have also been delayed G-men havefa iled to tell their victims is that the Justice by the effects of the bankruptcy case. In Virginia, a hearing Departmenthas thrown three "LaRouche" companies on a motion to dismiss based on a Virginia "double jeopardy" into bankruptcy, thereby ensuring that no one who lent l statute has been delayed until June 23. This was postponed money can have it repaid. ln fact, under the terms of from May 22 after the government's seizure of the legal the bankruptcy order, it is now illegalfor Campaigner defense files on April 21. A number of federal prosecutors Publications, Caucus Distributors, or the Fusion En­ and agents have been subpoenaed to testify at the June 23 ergy Foundationto repay any lenders, no matter what hearing. The first testimony for this hearing will be taken on hardship this causes. So much fo r the Justice Depart­ June 9, when Assistant U.S. Attorney John Markham from ment's concernsabout "little old ladies" ! Boston will voluntarily appear to have his deposition taken Some of the contributors who have been harassed by defense attorneys in the Virginia case. by the FBI are now seeking legal assistance to sue the In New York, 15 LaRouche associates were indicted on FBI, fo r violations of theirl own constitutional rights. March 3 on trumped-up charges of "securities fraud" similar to those brought by the Commonwealth of Virginia. Both

66 National EIR June 19, 1987 motions to dismiss the involuntary bankruptcy petition. The three companies include the Fusion Energy Foundation, a tax-exempt charitable and educational organization, as well as Campaigner Publications and Caucus Distributors. Down The grounds for dismissal include: 1) that the U. S. government was the sole petitioning To creditor on the involuntary bankruptcy petition, although the law clearly requires that three creditors bring the petition; 2) that Fusion Energy Foundation is immune from the The Wire? involuntary bankruptcy law, which legally applies only to commercial, not non-profit,organizati ons; Call for a quote on 3) that the bankruptcy petition was filedin bad faith and for improper purposes by the government-i .e., to aid in a criminal prosecution . � BELDEN A hearing on the motions to dismiss the petition will be COOPER qualitywir e held in U. S. Bankruptcy Court in Alexandria, Va. on June INDUSTRIES and cable. 15. At the June 1 hearing in Boston, the Interim Trustees raised the possibility that the bankruptcy petition might be Shielded and unshielded dismissed. They emphasized that there has been no formal - cable for computers "adjudication of bankruptcy" as of yet, and that the debtors - instrumentation and control are resisting the adjudication of bankruptcy . - electrical and electrical systems Under normal circumstances, a company is not declared - plenums - fiber optics bankrupt and shut down until after a trial is held on the petition seeking involuntary bankruptcy. This can take many We Go to Great Lengths months. The filing of the petition acts like the filing of a To Service Your Wire Needs. complaint in a civil case; the other side has a chance to answer the move to dismiss, but no action is taken until a trial on the ServiceIs WhatWe're AboutA single source merits on the petition or complaint. electronics distributor stocking more than In this case, the Justice Department, acting as petitioner, 100 prime lines of components hardware , secretly went to the bankruptcy judge on April 20 and ob­ equipment, and control devices for in­ tained an ex parte hearing, at which the judge signed an order test appointing Interim Trustees and directing that the Trustees dustrial and commercial application. and U.S. Marshals seize the offices of the three companies. Write or Call Today for a Thus, the first that the companies or their lawyers knew of Free Page Catalogue! the bankruptcy was when federal marshals seized the offices 500 during the early morningof April 21 . In fact, the Justice Department's action was so irregular that there was not even a court transcript of the April 20 ex parte, in camera hearing. The Justice Department argued the hearing should be completely off-the-record because "confi­ dential" matters were being discussed. The secret, off-the-record nature of the appointment of the Interim Trustees is one of the grounds for an appeal of the INDUSTRIAL ELECTRONICS order appointing the Interim Trustees and directing the sei­ zure and shutdown of the three companies. This appeal is 100 N. Main now pending before the U.S. District Court for the Eastern Dept. E District of Virginia. Evansville, IN 4n11 The appeal seeks dismissal on grounds that the secret, ex parte proceeding was in violation of the bankruptcy statute U.S. Wats 800-457 -3520 and the due process guarantees of the U.S. Constitution, and Ind. Wats 800-742-3670 also that the shutting down of New Solidarity newspaper Local 812-425-7201 (published by Campaigner) and Fusion magazine violates the Fax 812-465-4069 First Amendment to the U. S. Constitution.

EIR June 19, 1987 National 67 Congressional Closeup by Ronald Kokinda

Congress howls adopted Glass-Steagall "with the ex­ Simpson urged the creation of a over Fed regulations pressed purpose of assuring the integ­ Senate select committee of seven Over two dozen representatives took rity and long-term viability of this na­ Democrats and six Republicans, with to the House flooron June 3-4, to pro­ tion's banking system." "a mandate of a 90-day educational test a rule promulgated by the Federal Rep. Jim Bates (D-Calif.) said he process for themselves," to grapple Reserve Board that would allow fed­ was "especially concernedabout what with the implications of the AIDS erally chartered banks , bank holding impactany new activitiesin these bigh­ threat. companies, and their non-banking risk areas would have on consumers Simpson raised the issue of how to subsidiaries to become involved in a and on the safety and financial sound­ deal with people applying for citizen­ variety of real estate activities includ­ ness of our system." Rep. Tom DeLay ship, under the immigration reform ing investment, development, broker­ (R-Tex.) attacked the " steady decline bill, who test positive and are refused ing, and management. of land values and commercial prop­ entry by another country. Do we leave The loudest screams were over the erty values caused by regulators re­ them here "illegally in a status with a fact that the Fed was intruding into an possessing propertiesand selling them communicable disease? That is a pos­ area that Congress considers its do­ at fire-sale prices. " sibility. Or, are you talking about de­ main to regulate. The suggestion that tention or areas where they will be the non-elected Fed regulators are leg­ kept quarantined? That is really where islating changes, is driving several we are headed here." congressmen to distraction-a wel­ Simpson: AIDS costs come change from a few short years to revise our priorities ago, when the Fed's interestrates were Minority Whip Sen. Alan Simpson (R­ defended as none of Congress's busi­ Wyo.) became the first senator to ac­ Senate takes up ness. knowledge that the cost of the AIDS campaign finance Most members urged the adoption epidemic will force a reassessment of Stymied on several issues, including of a provision in the Senate version of national priorities. the defense bill, Senate Majority the bill to help the Federal Savings and Speaking during the debateon June Leader Robert Byrd (D-W.Va.) Loan Insurance Corporation(FSLIC) , 2, when the Senate voted 96-0 for an brought the issue of campaign fi­ S. 790, which imposes a one-year amendment, sponsored by Sen. Jesse nance, S. 2, to the Senate floor,and is moratorium on the proposed Fed reg- . Helms (R-N.C.), adding AIDS to the faced with a filibuster. ulatory change, allowing Congress list of contagious diseases for which The firsteffort to break the filibus­ time to act on the matter on its own. "I immigrants are tested, Simpson said ter was defeated on June 9 by a vote would like to see the conferees report that he had "no problem with money" of 52A7, 8 votes short of the 60 re­ a bill that puts an end to the Federal to meet the AIDS threat. "Money will quired. But Byrd and Minority Leader Reserve Board monarchy," Rep. Bill besomething we are going to be called Sen. Robert Dole (R-Kan.) are pre­ Chapman (D-Tex .) said. upon to supply in response to this awe­ dicting that a compromise is possible. Several representatives, such as some disease in extraordinary figures. There is a "willingness to come to­ Mickey Leland (D-Tex.) and Thomas We have all heard that . It is startling. gether," Dole indicated. He said that Bliley (R-Va.) invoked the Glass­ Indeed it is. The sum of $ 146,000 will the Republicans would caucus on June Steagall Act. Leland charged that the bethe average cost of every AIDS vic­ 10 to work toward compromises. A proposed activity allowed these insti­ tim after they have been admitted to limit on PAC contributions to political tutions ''to hold direct equity positions thehospital until what will be the trag­ parties is one area where some, but in real estate, an activity prohibited by ic, final death. That is an extraordi­ certainly not all, Republicans may be the 1933 Glass-Steagall Act, which nary figure. From what we know from willing to compromise. was enacted by Congress during the those who have been exposed, those Sen. David Boren (D-Okla.), the Great Depression to separate invest­ who have it, we are going to have to chief sponsor of S. 2, has hinted a ment banking from commercial reassess the priorities of the United possible willingness to abandon the banks." Bliley noted that Congresshad States on that issue." public financing provision of the bill,

68 National ElK June 19, 1987 if there is a "bundle of carrots," such package of arms sales would include mano Mazzoli (D-Ky. ) against the bill as advertising disclaimers for candi­ F- 15 fighters and anti-tank improve­ in committee has encouraged oppo­ dates, to induce spending restraint. ments. Cranston said that such an ar­ nents, that if the bill is passed in the During debate on the bill, Sen. senal of air-to-ground missiles and House, a sizable vote against it is cer­ Robert Packwood (R-Ore.) continual­ anti-tank systems could not possibly tain to doom it in the Senate. ly made suggestions for ways to over­ be desired for use against Iranian Opponents have emphasized con­ come election problems without resort planes and tanks. "The only tank force stitutional and legal objections to the to public financing. For example, if a that the Saudis do consider a threat bill, and pointout that both Fauntroy candidate were attacked by an inde­ belongs to Israel," Cranston said. and Sen. Edward Kennedy (D-Mass.), . pendent group, the governmentcould Both senators claimed that the two chief proponents of the measure, match that expenditure by giving Saudis have never been helpful to the were arguing against statehood as late money to the attacked candidate. This peace process. Sen. Alan Dixon (D­ as 1978 on the basis that it is uncon­ would mean spending $4-8 million Ill.) pointed to the fact that the Saudis stitutional. rather than the $100-400 million an­ raised the price of oil by $2 per barrel The constitutional arguments re­ ticipated cost of public financing of after the Senate vote to sell them late to Art. I, Sec. 8, Clause 17, that House and Senate races. Packwood AWACS in 1981. theCongress shall retain exclusive ju­ suggested that if they really wanted to After opponents of the sale round­ risdiction over the seat of the federal cut down the costs of the campaign, ed up 68 cosponsors, enough to over­ government; Art. IV, Sec. 3, that the maybe PACs should be barred from ride a presidential veto, the adminis­ state of Maryland, which had provid­ any contributions and individuals be tration sent notification to the Con­ ed theterritory for the District, must limited to $100 contributions. gress on June 11 that the sale has been act to give its consent, or conversely, withdrawn. may act to barstatehood , which is the most importantargument; and the 23rd Amendment, which gave the District ADL lobby jumps three electoral votes, which oppo­ on Saudi arms sales nents argue would leave them in the While Congress complains that our Committee clears hands of the two remaining residents, NATO allies are not helping keep sea D.C. statehood bill the Presidentand Vice-President. lanes open, and passes resolutions de­ A bill, H.R. 51, to bring the District Opponents also point out that the manding extreme caution in the Per­ of Columbia into the Union as a new District would not be able to enter the sian Gulf, the Anti-Defamation statecalled New Columbia, was passed union prepared to support itself and do League's lobby in the Congress has out of the House Committee on the its shareto support the federal govern­ halted a proposed u.S. arms sale to District of Columbia by a vote of 6 to ment. Statehood supporters want the Saudi Arabia. 5 on June 3, but faces stiffopposition $425 million federal payment contin­ On June 3, Sens. Alan Cranston in the House and Senate. ued under statehood. (D-Calif. ) and Robert Packwood (R­ Walter Fauntroy (D-D.C.), who A statehood constitution was pre­ Ore.) rushedto the floorwith S.J.Res. represents the District as a non-voting viously passed by District voters, and 153 disapproving the proposed sale of delegate in the House, hopes to bring affirmed by the D.C. City Council. 1,600 Maverick D air-to-ground mis­ the bill to the House floorby earlyfa ll, The Congress has previously acted, siles and related services to Saudi Ara­ possibly mid-September, and has 90 under the home rulecharter, to over­ bia, valued at roughly $360 million. cosponsors. turn a District abortion ruling and a Rep. Larry Smith (D-Fla.) offered a Opponents to the bill are led by revision of the criminal sex code. similar resolution in the House. Rep. Stan Parris (R-Va.), who, with Representative Parris, under similar Packwood charged that the pack­ the death of Rep. Stewart McKinney jurisdiction, introduced House Joint age was only the "nose of the camel in (R-Conn.) from AIDS, has become Resolution 305 on June 4, to abrogate the tent," and that if this package was the ranking member on the District the constitution endorsed by the D.C. allowed to go through, the larger Committee. The vote by Rep. Ro- council.

EIR June 19, 1987 National 69 NationalNews

• Perle's close associate, Stephen Bryen, Seale was scheduled to speak before the remains at the Department of Defense, in full council body at 1 p.m., but his appear- charge of overseeing technology transfer, ance was delayed until shortly after 1:30. 'Spiritualism' aided by Barbara Ledeen, wife of Iran-Con- Pandemonium broke out when Seale arrived trafigure Michael Ledeen. During the 1970s, with Boston Democratic mayoral candidate sweeping U.S.A. Bryen was placed under national security Richard Black, a "LaRouche Democrat." "A craze for spiritualism ...is sweeping investigation for passing secrets to the Isra- Homosexual city council spokesman David the United States. Conferring with the dead elis. The investigation was quashed by the Scondras spent an hour attempting to pre- has become big business," wrote Charles Carter Justice Department, without expla- vent Seale from speaking, screaming, "It's Bremmer of The Times of London June 6. nation. LaRouche !" To no avail. Bremmersays that the latest nut craze is Seale recommended that people be giv- part of the "new mysticism," born in Cali- en certifi<:ates proving they are free of the fomia, "where 1,000registered psychics now virus. "Many countries are moving in this operate . The apostles of the 'New Age' direction," he said. "This is reality, whether movement have won tens of thousands of Bush raises money, you like it or not ! Mass voluntary testing is converts to their doctrines ....The circu- the only means of stopping this virus in a lation of the 'New Age Journal' has leapt defends CIA free society ." from 15,000 to 150,000 in five years." George Bush raised $500,000 for his presi- At the end of his 20 minute talk, the city One leading figure in this movement, dential campaign at a June 4 Century City, councilor's gave him warm applause. says Bremmer, is Shirley MacLaine, who Californiafundr aiser. He was introduced by Dr. Stale's appearance in Boston is part claims that "she has been a pirate with a Gov.,George Deukmejian. Attending were of a U.S., tour which has taken him to Vir- wooden leg, a harem dancer, a Buddhist several prominent Reagan backers, includ- ginia, New Hampshire, and Maryland for monk, and a framer of the U.S. Constitu- ing Donald Bren of the Irvine Co., Jerry public appearances and media interviews. tion. She charges $300 for a ticket to her Weintraub, Margaret Brock, Holmes Tut- Late last year, Seale wrote a letter to both seminar." tIe, and Armand Deutsch. President Reagan and British Prime Minis- Anti-New Age activist Constance Cum- The vice president's speech was de- ter Margaret Thatcher, "in the spirit that bey of Detroit is quoted in the same article, scribed as surprisingly "dynamic." "He Einstein wrote to President Roosevelt" on that the New Age movement "has more than sounded very confident," Tuttle said. "I think the possibility of building an atomic bomb, a hint of Nazism." Cumbey added, "Their he has made up his mind to come out fight- urging both to take the measures necessary goals include a new world order, a new world ing." to avert a worldwide AIDS disaster. religion, and a new messiah ." The vice president, a former CIA direc- tor, received applause when he shouted: "I stood up for the CIA" when it was under attack in 1976-77, "and I will stand up for it now. . . . I went in there when it had been LaRouche organizers Shultz hires man demoralized by the attacks of a bunch of little untutored squirts from Capitol Hill, score court victory Pentagon fired going in there looking at these confidential The three-day jury trial in Detroit, Michigan Secretary of State George Shultz has hired documents without one single iota of con- of two organizers for causes associated with Richard Perle as a consultant to the State cernfor the legitimate security of this coun- Lyndon LaRouche ended June 3 in a dra- Department. Perle, documented to be an try ." matic victory for the defendants. The case agent of those Israeli Mossad networks im- stemmed from a 1985 incident, in which plicated in the Iran-Contra affair, was forced Leif Johnson and Don Clark were accused out of the Defense Department earlier this of spreading racist, anti-Semitic literature year for his attacks on the Strategic Defense and inciting to racial hatred, while distrib- Initiative and the NATO alliance. He had British AIDS expert uting literature at a Detroit post office. been assistant secretary for technology A black judge and all-black jury found transfer. addresses Boston council the two, both white, not guilty, in a unani- Shultz announced the appointment at a Dr. John Seale, an expert on Acquired Im- mous verdict. Testimony against the two by June 2 dinner sponsored by the American mune DefficiencySyndrome and member of Detroit pdlice officers, was successfully torn Enterprise Institute and the Heritage Foun- England's Royal Institute of Medicine, ad- apart by defense counsel Max Dean, also a dation. The secretary stated that Perle's "vi- dressed a full session of the Boston City LaRouche associate. sion and spirit have strengthened this coun- Council on June 9, telling them that the The incident which sparkedthe case dates try , and I wish we had a hundred more like United States and other nations must have to March 18, 1985, when the two were in you." universal , voluntary testing for AIDS. front of a post office, organizing support for ..

70 National EIR June 19, 1987 Briefly

• PAM HARRIMAN hosted a Democratic fundraiser in Washing­ ton the firstweek of June, which drew a planned Martin Luther King Day March Because of this, Reagan wanted nothing most of the Democratic presidential on Washington. Their signs, calling for to do with Hammer. Hammer writes: "I have candidates as well the party's leading tractors for Africa and African economic always believed that by speaking and acting bureaucrats. development, were cited by the police as as he did, Begin changed Reagan's mind evidence of racial hatred-wanting to send about me ." This opened the doors of the • PAUL GANN, a 1980 U.S. Sen­ White House to him, and permitted him to black people back to Africa! ate candidate and co-author of Cali­ Putting the police up to this was a Mrs. organize the first Reagan-Gorbachov sum­ fornia's Proposition 13-the leading Adler, who was at the organizing site and mit. edge of the late 1970s "tax revolt"­ lodged the complaint. Adler claimed that Hammer is a Soviet agent, that is, an revealed June 10 that he contracted agent of the "Trust" relationship between when one of the men, Mr. Johnson, said, AIDS during 1982 heart surgery and "We've got to stop the IMF, the internation­ Soviet and certain Western financial inter­ planned on dedicating "his last cam­ al bankers , from destroying Africa," he was ests. paign" to "preventing others from Hammer's contentions appear in the using "code words" to incite against Jews! falling under this deadly spell ." Joined book, Hammer: Witness to History, now But in the course of the trial , the La­ at a Sacramento press conference by being serialized in the Sunday Timesof Lon­ Rouche movement's real policies became his wife of 55 years , the 74-year-old don. abundantly clear to the jury . Johnson testi­ Republican said: "The only way to fied to his history with the civil rights move­ control [AIDS] is to findout who has ment, beginning with the 1950s freedom it and let others know. I'm for testing rides, and several black men and women everyone and telling everyone . " testifiedas character witnesses on the defen­ 6'8" dants' behalf, as did a black Detroit • THE NATIONAL Taxpayers resident, a director of a school for retarded Rabbi pledges to Union, a key organization in the drive children, who had purchased literature from for a constitutional convention to in­ the two. He recalled liking the literature he block Walsh probe troduce the British system of govern­ had purchased, and said he gave a little mon­ "I know that Special Prosecutor Lawrence ment to the United States, received ey. Asked if he had literature "shoved in his Walsh wants to go after Israel" in his Iran­ its seed money from NCPAC, the face ," he said, "Nobody shoves anything in Contra investigation, "but we are going to "conservative" political action com­ my face ." organize a major symposium at the B'nai mittee of the late homosexual AIDS­ B'rith headquarters in Washington exactly victim, Terry Dolan. on this issue, and I will give the principal speech," the vice-president of the World • FORMER CIA director James Jewish Conference, Rabbi Arthur Hertz­ Schlesinger, in charge of preparing a berg, told a journalist June 8. report on Soviet eavesdropping de­ Did Begin get Hammer The symposium, "Israeli-U.S. Rela­ vices built into the new U.S. embassy tions," will also feature three prominent rep­ in Moscow, reported that the sophis­ into White House? resentatives from Israel, he said. tication of Soviet "bugging'} devises Armand Hammer claims in his new auto­ "This story of Irangate and Israeli in­ was "far greater than we'd believed biography that former Israeli Prime Minister volvement is uncomfortable, it's unpleas­ before now they were capable of," Menachem Begin intervened to get Israel's ant, it will leave an aftertaste, but it will and said that tearing down the entire embassy in Washington to defend Hammer definitively go away ," Hertzberg said, embassy is not ruled out. His final against charges, based on an "anonymous somewhat nervously. report will be submitted before the memo" circulating in Washington, "that Is­ He also explained that the idea of the end of June. raeli intelligence actually had 'proof' I was Peres peace plan is that Israel "will let the a communist!" Soviets in, provided-a very importantpro­ • DENTISTS in Maryland won't On Begin's orders , says Hammer, the vided-that the Soviets will extend full rec­ take AIDS patients . "To my knowl­ Israeli ambassador in Washington wrote to ognition to Jerusalem, I mean Israel, reopen edge, in the State of Maryland now , then-Secretary of State Alexander Haig, full diplomatic relations, and open the door there's no [dentist] who will treat a "vigorously defending me ." Hammer claims to the Jews who want to get out" of the patient with AIDS except at the Uni­ that, before this intervention, Begin had told Soviet Union. versity of Maryland," said Dr. Mi­ him that President Reagan staunchly be­ The World Jewish Congress is headed chael W. Easley, chief of the state's lieved that Armand Hammer was "a com­ by U.S.-Canadian liquor magnate Edgar dental health division. As a result, the munist," in part because of Hammer's fath­ Bronfman, whose principal activity of late University of Maryland dental clinic er' s communist credentials. The senior has been doing favors for the Soviet Union is overwhelmed with high-risk and Hammer was a founder of the Communist on behalf of one or another deal, including infected patient!s . Party U.S.A. shipping Soviet Jews to Israel. • ,

EIR June 19, 1987 National 71 Editorial

Soviet irregular waifare in the Andes

On the evening of June 11, Sara Maduefio de Vasquez, follower of Adolf Hitler. EIR's Lima bureau chief, and her husband, Luis Vas­ The entire Andean region, from Colombia to Boliv­ quez , secretary general of the Peruvian Labor Party ia is the battleground for Soviet irregular warfare , and (PLP) , were assaulted as they were about to leave Marfa Lehder's half million army of Nazi-communist narco­ del Carmen Cabanillas, EIR's sales manager, at her terrorists is on the march. home. Two young men approached the car, one putting Luis Vasquez, the PLP's'general secretary , is well­ a gun to Mrs . Vasquez's head. As the other ran toward known in Peru and other countries of the region for his the driver's side with his gun drawn, Vasquez floored unrelenting struggle against drug traffic. In recent the accelerator while the others hit the floor. The three months, Vasquez twice defeated former prime minister escaped unharmed from the kidnapping or assassina­ Manuel Ulloa in Peruvian cclmrts. Ulloa had sued him tion attempt. for saying the economic policies he pursued while in Dozens of Peruvians are subjected to the narco­ governmentfavored the flourishing of narcotics traffic. terroristgan gs' revenge every week, aimed at terroriz­ Mrs. Vasquez, is both EIR bureau chief and president ing and murdering allies of President Alan Garcia's war of the Peruvian chapter of the Schiller Institute, which on drugs , and battle for economic sovereignty . Days has rallied international support for President Garcia's before , Peruvian Deputy Finance Minister Gustavo Sa­ policies. berbein narrowly escaped death at the hands of the While Moscow is banking on a coup or assassina­ Shining Path . Armed with machine guns, six narco­ tion of Garcia, the State Department remains hostile to terrorists attacked Saberbein at a restaurant in down­ him because he has challenged the International Mon­ town Lima. Several security guards who fe nded offthe etary Fund, and imposed a policy of growth-before­ attack died. debt that has set an example for the continent. Much of A Peruvian Labor Party spokesman blamed the at­ official Washington does not understand that the defeat tack on the Vasquezes on "narcotics traffickers working of Garcia would be a hideous blow to U.S. strategic for Moscow." The PLP official declared, "Groups like interests and a victory for Soviet irregular warfare . Shining Path or Colombia's M -19 are allied with drug President Garcia began h�s assault on the narcotics runners and are an irregular Soviet army, placed on a mob the day after his inauguration two years ago by war footing to destroy the republics of Ibero- America." attacking the jungle airstrips of the cocaine mafia. His The assault took place just as Soviet-inspired narco­ war against narco-terrorism has been slowed by W1 f'sh­ terrorismhas increased at a spectacular rate in Peru and ington's skimpy aid for the anti-drug war. This month the whole Andean region. Narco-terrorist groups like the Peruvian government requested $500 million for Shining Path and the Tupac Amaru Revolutionary the war on drugs from the Western industrialized coun­ Movement carry out bombings and assassinations dai­ tries whose populations are the victims of ttie drug ly. Meanwhile the Moscow-directed Peruvian Com­ plague. These nations have been slow to understand munist Party has recently declared war against the Pe­ what EIR documented in its best seller, Dope Inc., ruvian government-which they call "fascist" for its Boston Bankers and Soviet Commissars: The Soviets efforts against subversion. have been running the internationaldrug trade for over Cocaine kingpin Carlos Lehder, now awaiting trial 20 years to "bury" Western civilization , and with con­ in the United States for drug-running, announced last siderable success. yearthat he was forming a multinational narco-terrorist Peru 's $500mill ion request is the minimal amount armyof half a million men to "liberate" Ibero-America. necessary to sustain a serious fight against an interna­ Lehder, whose ideology is based on Soviet anthropol­ tional enemy with more resources than many Ibero­ ogists' "indigenous people's power," is also an explicit American nations combined.

72 National EIR June 19, 1987 Now with 'Iran-gate,' you can't afford to wait for the best intelligence EIR can prpvide--��ediately. The economy is teetering at . the brink, and even the larg­ est American banks are shaking at their fo undations. We alert you to the key developments to watch closely, and transmit 10-20 concise and to-the-point bulletins Alert twice a week, including periodic reviews of debt, terror­ ism, and drugs. The "Alert" now puts special emphasis on economic developments. It reaches you by First Class mail twice a week (or more often, when the situation is hot). For Europe and the Middle East, the Confidential Alert Alert Bulletin appears once a week in the fo rm of a one-page telex message.

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Foreign Rates Phone ( Central America. West Indies. Venezuela Address ______and Colombia: 1 ':Ir. $450, 6 mo. $245, I 1 3 mo. $135 1 City ------South America: 1 yr. $470 , 6 mo. $255, 1 State ______Zip ___ _ 3 mo. $140. I I Make checks payable to EIR News Service Inc .. Europe. Middle East. Africa: 1 yr. DM 1400, P.O. Box 17390. Washington. D.C. 2004 1- 6 mo. DM 750, 3 mo. DM 420. Payable in '1 0390. In Europe : EIR Nachrichtenagentur deutschemarks or other European currencies. 1 GmbH. Postfach 2308. Ootzheimerstrasse 166. I 62 Wiesbaden. Federal Republic of Germany. Asia and Oceania: 1 yr. $550, 6 mo. $300, 1 telephone (06121) 8840. 3 mo. $150. 1 ______------AIDS pandemic In its Special Report, "An emergency war plan to fight AIDS and other pandemics," dated Feb . 15, 1986, EIR warned: "The potential impact of AIDS and other pandemics upon populations in the United States, Africa, Europe , Ibero-America, and Asia is potentially far deadlier than even a full-scale thermonuclear war." In its Dec. 5, 1986 issue, EIR reported: "Results of a first-generation computer model , just released by an EIR task force corroborate estimates of LaRouche and leading medical authorities, that AIDS is 'species­ threatening. ' " On June 8, 1987, almost a year and a half later, Los Alamos scientist Dr. Stirling Colgate reported that a Los Alamos computer model had forecast that 1 in 10 Americans would be infected by AIDS by .1994 . He stated: "AIDS represents a far bigger and more important security threat to this nation than nuclear weapons do , in any form , at this time." On the same day , President Reagan's domestic policy adviser, Gary Bauer, stated that the President's new stand favoring AIDS testing, reflects his fe ar that AIDS will "decimate" the population of America and its Eurqpean allies. Bauer urged Europe to "learn from America's tragic mistakes, and not delay facing the tough issues posed by" AIDS .

The Russians EIR began warning as early as 1983 that the Soviet Union was engaging in a massive military build-up for offensive operations against NATO . We carried such articles' as: "The Soviet economy: everything goes for war build-up" (April 10, 1984); "Threat to Europe: biggest Soviet maneuvers ever" (July 17, 1984); and "Soviet military creates a wartime High Command" (March 5, 1985). On June 3, 1987, the inspector-general of the German Armed Forces, Admiral Dieter Wellershoff, told more than 450 military officers that the Red Army was organized not for defensive but for aggressive operations: Warfighting, including nuclear warfare , is the basis of Soviet strategic policy and weapons design. Soviet military strategy is based on offensive operations with the aim of carrying war to the enemy's territory . The Soviet armaments pro­ gram has secured all-options for military offensive in all categories of weaponry . But EIR readers knew that long ago .

EIR: Knowledge is leadership.