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

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

In this remarkable, thoroughly researched document, you will finally learn the truth about: • Billionaire Soviet agent Armand Hammer, and the complex of wealthy financial figures known as "the Trust" who are the power behind would-be dictator Sharon. • The role of Henry A. Kissinger in the notorious "Iandscam" real-estate swindle in the Israeli-occupied West Bank territories. • The history of the Luzzatto family of Venice, the Recanati, and the Syrian Jewish families of Aleppo, the Jewish fascists of the Irgun, and the noose of organized crime tightening around Israel today. 148pp. • The plot to set off a new Middle East general war, by blowing up the second Order your copy today! holiest site of Islam, Jerusalem's Dome of the Rock Mosque. The facts, exposing the plot Price: $250 and the plotters, some never before published anywhere, are the results of an investigation covering four continents, an investigation which risked the death of the investigators. From

• The massive coverup of the Pollard case itself- the" facts which Secretary of State George'Shultz, and especially Undersecretary of State Elliot Abrams, are fanatically EIRNews Service determined to bury. P.O. Box 17390 • The anatomy of a JDL terrorist, Mordechai Levi, and Levi's role as a joint-asset of Washington, D.C. the FBI and the Anti-Defamation League, as well as an asset of Sharon's cohort "Dirty 20041 -.0390 Rafi" Eytan. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Allen " Salisbury, Edward Spannaus, Nancy Spannaus, Webster Tarpley, William Wertz, Carol White, C ontrary to the conceptions of British 'economics,' fresh water Christopher White is not a limited resource. Based on the expansion of human produc­ Science and Technology: Carol White tive powers, through science and technology, we can generate as Special Services: Richard Freeman Book Editor: Katherine Notley much fresh water as human needs will ever require-anywhere on Advertising Director: Marsha Freeman this planet, at any level of population, and at any time in the future. Circulation Manager: Cynthia Parsons The same is true of every other commodity needed to sustain and INTELLIGENCE DIRECTORS: Agriculture: Marcia Merry enrich human life. The doctrine of 'limited resources' is a lie, propa­ Asia: Linda de Hoyos gated by imperialists who seek to control nations and populations by Counterintelligence: Jeffrey Steinberg, Paul Goldstein imposing artificial scarcity." Economics: Christopher White This assertion, which opens our Feature, may offend the war European Economics: William Engdahl lbero-America: Robyn Quijano, Dennis Small propaganda machine dominating the major U. S. media more than Medicine: John Grauerholz, M.D. anything else we publish here. It asserts the scientificbasis for cultur­ Soviet Union and Eastern Europe: Rachel Douglas, Konstantin George al optimism, and from that, everything else flows. In this context we Special Projects: Mark Burdman publish an interview with the Iraqi ambassador to the United States, United States: Kathleen Klenetsky which reveals that the present U.S. military occupation of Saudi INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura Arabia was premeditated years in advance-long before Iraq's inva­ Bonn: George Gregory, Rainer Apel sion of Kuwait took place. Copenhagen: Poul Rasmussen Houston: Harley Schlanger Our lead news articles in International and National outline the Lima: Sara Madueno t Mexico City: Hugo LOpez Ochoa measures being put into place, wi h daunting haste, to impose a Milan: Marco Fanini one-world, U.N.O.-centered government as the means to guarantee New Delhi: Susan Maitra Paris: Christine Bie"e "peace," and in fact to build up the conditions, through savage Rio de Janeiro: Silvia Palacios austerity and population-reduction scenarios, for drawn-out wars Rome: Stefania Sacchi Stockholm: Michael Ericson and unspeakable human suffering. Prof. Dario Composta's speech Washington, D.C.: William Jones warning of the true aims of the one-worldists, which we published Wiesbaden: Garan Haglund in two parts and conclude this week on p. 19, provides a useful

EIRIExecutive Intelligence Review (ISSN 0273-6314) is counterpoint to the news. published weekly (50 issues) exceptfor the second week ofJuly, the third week ofAugust, andfirst week of On p. 43, we present evidence to prove that two of the world's September by EIR News Service Inc., P.O. Box 17390, Washington, DC 20041-0390 (202) 457-8840 greatest artists, Rembrandt and Leonardo da Vinci, drew their inspi­ E/l1YJfHlUI Helldq_,..: Executive Intelligence Review ration from the battle to build civilization upon great water-manage­ Nachrichtenagentur GmbH, Postfach 2308, Dotzheimerstrasse 166,0-6200 Wiesbaden, Federal ment projects. Republic of Gennany Tel: (06121) 8840. Executive Directors: Anno Hellenbroich, On Sept. 17, Jacques Cheminade (author of the first-hand report Michael Liebig III Dell"""": EIR, Rosenvaengets Aile 20, 2100 on p. 13 on resistance to austerity in Gdansk) was joined by Jonathan Copenhagen OE, Tel. (01) 42-15-00 Tennenbaum, the co-author of our Feature, and Helga Zepp­ III Mexico: EIR, Francisco Dlaz Covarrubias 54 A-3 Colonia San Rafael, Mexico DF. Tel: 705-1295. LaRouche, the top candidate of the Patriots for Germany party in the JfI/IlUI Sub'Criptioll .1IIes: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, all-German elections, for the Schiller Institute's historic firstmeeting Tokyo 160. Tel: (03) 208-7821. in Poland. It was held in the same room where the strike committee Copyright «:> 1990 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly of Solidarnosc met in 1980. We'll have more on that in the next prohibited. Second-class postage F.id at Washington D.C., and at an addItional mailing offices. issue. 3 months--Sl25, 6 months--S22S, I year-$396, Single issue-$IO Postmaster: Send all address changes \0 EIR,' P.O. Box 17390, Washington , D.C. 20041-0390. TIillContents

Interviews Departments Economics

48 Mohamed al-Mashat 23 Report from Rio 4 Uncle Sam is insolvent: the Iraq's ambassador to the United Technology noose tightens. $5 trillion theft States says that an Anglo-American In September-October 1989, the effortto crush Iraq was already 58 Dateline Mexico U.S. underwenta sharp contraction beingprepared after the Iran-Iraq Mexico, the "perfectdictatorship." in bank lending as dramatic as the War failed to destroy the country. loosening of risk criteria which 59 Panama Report typified the "roaring '80s." But, A lesson in hypocrisy. unlike 1930-32, today the solvency Book Reviews of the U.S. government itself is in question. 60 Northern Flank 38 Will Britain's 'Great Stopping the satanic youth culture. Game' bring new world 6 Europe looks to war? 61 From New Delhi cooperation with Third The Great Game: on secret service Resurgent Rajiv. World, Soviet Union in High Asia. by Peter Hopkirk. 72 Editorial 8 New oil price shock will 40 Read Nehru to fathom the Lest we forget. finish otTthe U.S. economy British Empire Glimpses of world history;An 11 U.S. cities face bankers' autobiography; and The discovery dictatorship of India; by Jawaharlal Nehru. 12 India rejects use of food as 43 Rembrandt celebrated a weapon man's dominion over water Rembrandt's landscapes. by 13 Gdansk workers confront CynthiaP. Schneider. Mazowiecki, attack Balcerowicz Plan

15 Brazil's monetarist . 'bullets' won't stop inflation

17 U.S. says 'Mexico belongs to us'

18 Currency Rates

19 Poverty and neo-capitalism in the 19908 Th¢ second half of an expose by Prof. Dario Compostaof the Urbaniana University in Rome, ItaIty.

22 Banking "Take or be taken."

24 Business Briefs Volume 17 Number 37, September 28, 1990

Feature International National

46 Will France and Germany 64 U.S. uses Gulf crisis to play deputy sheriffin the wage war on Germany, Gulf? Japan The nations of continental Europe Those industrialized countries have so far allowed themselves to which have dared to place be coerced into helping the Anglo­ production and growth above "free American drive towardwar, but tIie market" usury, are beingtargeted as pointof no return is fast enemies by the decaying Anglo­ approaching. Will Europe have the American empire. courage to say "no" to Bush and Irrigation of a cotton field inCalifornia' s Central Val­ ley. The technology that has made the desert bloom Thatcher? 66 Congressman seeks full here mustbe used in the Middle Eastand NorthAfrica. U.S. force withdrawal asthe foundation of a peacepolicy. 48 Anglo-American Mideast Documentation: Text of the occupation was resolution introducedby Rep. 'preplanned and Henry Gonzalez (D-Tex.). 26 Creating a network of premeditated ' rivers and lakes in the Interview with Iraq'sambassador to 67 Attack on ADL sparked by desert the United States. Gulf policy fight All talk of "limited water Columnist Patrick Buchanan, resources" is bunk. If we decide to, 53 U.S. cozies up to narco­ smeared as an "anti-Semite" by the we can tum deserts green by terrorist same Anglophile, drug-pushing producing unlimited supplies of A profile of Syrian President Hafez Anti-Defamation League which water, even with present ai-Assad. targetedLyndon LaRouche, is technologies. Jonathan fighting back. Tennenbaum of the European 54 Pope in Africa seeks Fusion Energy Forum shows how dialogue, development 68 Congressional Closeup naturecan be humanized in the Middle East and Africa, just as it 55 Is a 'third force' pushing a 70 National News has been over the centuries in bloodbath South Africa? Europe. in

56 Gaviria joins Bush's 'Three 29 Greening the desert: the Stooges' Mideast's potential for water development An economic geography of the 62 International Intelligence region.

34 Water projects for the Mideast, Africa A rundownof the leading projects, some proposed,others actually begun and then sabotaged by ecology fanatics. TIillEconom.ics

Uncle Sam is insolvent: the$5 trillion theft

by William Engdahl

WIth the U.S. economy sliding into depression, it is useful recently estimated that if the capital outflow from the United to look at an area which almost nobody is willing to mention: States in the first six months of this year were looked at as What is the state of the "full faith and credit" of the U.S. an annual rate, then foreign capital is leaving the country at government today? a rate in excess of $100 billion peryear. Japanese and British The answer is: Alarming. fund managers have been liqltlidating U.S. assets across the The present depression is unlike any other in American board, including holdings of stocks, bonds, and other securi­ history. In September-October 1989, the United States un­ ties, and the debt of the U.S. government itself. For the first derwent a sharp contraction in bank lending as dramatic as time, Japan has become a net seller of U.S. government the loosening of risk criteria which typified the "roaring paper. Yet, it is precisely stich foreign flows of funds on '80s." But, unlike 1930-32, today the solvency of the U.S. which the U.S. government and banking system has depend­ governmentitself is in question. How did this come to pass? ed, since especially 1982. The government's own budget, with an expenditure line There is only one candidate, under present policy ar­ of more than $1 trillion, could be as much as $400 billion in rangements, for the task of picking up the tab. As you might deficit in the next fiscal year, if the present known costs of suspect, it will be the U.S. taxpayer, if London and Wall the savings and loan bailout are added to the anticipated Street investment bankers have their way. revenue shortfall. Beyond the operating budget itself, the government stands behind another more than $9 trillion in OtT-budget shenanigans obligations, of which more than $3 trillion are accounted for Let's look at just one tiny "off-budget" area that Wash­ by the accumulated national debt, and the balance by what ington has allowed to go out df control. are called "contingent liabilities." Some years ago, the U.S. Congress got the idea to man­ A novel report crossed my desk recently. Stanley Salvig­ age the deficitby sleight of hand. Instead of paying for things sen, of Comstock Partners, points to a special aspect of the directly on budget, it sponsored a variety of entities known downturn. "There exists a gigantic web of legal obligations in the jargon as Government Sponsored Enterprises (GSEs). to pay money in order to make good on the many government­ Though most have never been tested in bankruptcy courts, backed indemnifications and legal assurances spread they tend to convey the impression that the agency-such throughout our financial system," he notes in a recent client as the Federal National Mortgage Association or "Fannie advi<;ory. Mae"-is backed by the legeMary "full faith and credit" of As the economy weakens, foreign investors are abandon­ the U. S. government. That's normally strong assurance. The ing the dismal U.S. economy, and the government of the problem is that these off-budget obligations have exploded United States will be forced to pay a vastly higher interest during the last 10 years of Reagan and Bush "voodoo" eco­ rate premium to honor its promises to pay. Who's leftholding nomics. the bag? The New York investment house Salomon Brothers The largest single contingent liability is the controversial

4 Economics EIR September 28, 1990 Federal Deposit Insurance Corp. Created during the Great What the Reichmans are actually setting up, is the first Depression to restore public confidence and stop bank panic major test of what U.S. real estate markets will now bear. by depositors, the FDIC is today at its lowest level of insur­ The sales will establish real price levels, not just on the ance reserves since 1934. Officially it has $13.2 billion to commercial property directly affected, but in all market seg­ cover total insured bank deposits of slightly more than $2 ments. The price levels thus established will have their im­ trillion. If even one large bank, say of the size of Chemical pact in tum on the book values of the assets held by banks or Chase Manhattan or even the Bank of Boston, were to which have extended property loans. The Reichmans' test require government bailout like the 1984 Continental Illinois will then feed back into the kind of process that Slavigsen bailout, the FDIC would be out of funds. and Seidman are talking about. If depositors begin to withdraw funds and invest in gold or other commodities, ultimately the U.S. government could 'Reckless banks, absent-minded students' be forced to guarantee $2.7 trillion, a sum that makes Trea­ Or take the Guaranteed Student Loan program, which sury Secretary Nicholas Brady's incompetent S&L bailout gives banks a 100% guarantee against student loan defaults look like chump change. totaling some $100 billion. Unemployable ex-students can­ The signs that this is what is coming are already visible. not repay these, so, more for the government. And of course, On Sept. 20, Resolution Trust Corp. chairman William Seid­ President Bush and his administration, perhaps on advice man presented yet another set of proposals on how to deal fromson Neil, the family financialwizard, decided to bailout with the S&L mess. What Seidman now wants to do epito­ the S&Ls off-budget by, you guessed it, creating yet another mizes where the country is headed. He proposes that the GSE, the Resolution Funding Corp. government now lend money to finance purchases of assets Added up, the United States has legal obligations to pay, of failed S&Ls. The original, and obviously unworkable in event of default on all GSEs, theoretically as much as $5.7 idea, was that the government raise money to finance the trillion. according to the FY 1991 budget. cost of closing the bankrupt part of the system through such As Salvigsen points out, in a deepening depression, with sales. Now, to help keep the costs of disposal down, and defaults on the GSE loans multiplying, the U.S. Treasury encourage buyers, the government is proposing to lend them will be forced try to issue more Treasury bonds to, in effect, the money to do it. Funny, isn't it, that the congressmen who pay for a useless asset a second time. "The government has," have made so much noise about the way the Southwest Plan he says, "by lending its credit rating and good name indis­ of 1988 was financed, with government giveaways to sharks criminately, created a situation in which its credit is being like the Basses and Perelmans, have had nothing to say about dragged down to the levels of those whose transactions it is this one. Seidman is also in charge at the FDIC. backing , whether reckless banks or absent-minded student borrowers. " The crisis in real estate When the government credit rating is down, it must offer Other GSEs, such as theNational Mortgage Association a higher return for its paper to attract investors. Never has or the Federal Housing Administration, guarantee tens of the United States gone into a depression with such high inter­ billions in home mortgage loans, or an estimated 88% of all est rates and immediate prospects of far higher rates down U.S. housing credit outstanding today. The FHA in the last the road. No wonder Federal Reserve chairman Alan Green­ two years has begun to lose money for the first time in its span is terrifiedto mention the "R" word, let alone "D" word. history, and the fund may soon be bankrupt, experts say. What this would add up to is devastating. It would mean Again, the government must make good on these obligations. a combination of higher interest rates, as primarily the gov­ Real estate prices continue to fall nationally and mortgage ernment scrambles to borrow more, and hyperinflation, as defaults are rising to scary levels. more paper values are created to back up and cover for those Since real estate investment has provided the collateral which the government is committed to stand behind. Out of for bank lending, troubles in the real estate sector spill over this, the U.S. government's "full faith and credit" guarantee very quickly into the banking sector. As with the banksthem­ would rapidly become the biggest inflation-generating en­ selves, this process could go quite quickly now. For example, gine the world has ever seen. the largest private holder of commercial real estate in the But this cannot be the reason why Alan Greenspan contin­ United States is the Canadian-based company Olympia and ues to insist that inflation remains the biggest problem facing York, owned by the Reichman brothers. The Reichmans the U.S. economy. If it were, he would have insisted on are partners of Henry Kissinger and Lord Carrington in the changing the policy a long time ago. Nor has the Bush admin­ Hollinger Corp. Now, they want to sell some 20% of their istrationanything more sensible to say. Among the proposals U. S. holdings of commercial real estate. Lazard Freres from coming from that quarter, are that all such government-s pon­ New York has been retained to handle the sales. Their intent, sored enterprisesbe required to maintain not less than a AAA­ it seems, is to raise money within the United States to finance grade credit rating. What kind of absurdity is that, under the their shaky operations in Great Britain. kind of conditions now emerging?

EIR September 28, 1990 Economics 5 Beyond German Reunification

Europe looks to cooperation: withThi rd World, Soviet Union by Volker Hassmann

Two days after theSept. 12 signing in Moscow of the historic effective industries exist in Germany and Japan, wherebanks treaty on German reunification, West German Chancellor grant credits in a different way to the entrepreneur." It is the Helmut Kohl joined French Prime Minister Michel Rocard second, . productive approach, that must be applied to the and high-ranking Soviet representatives at a podium in developing sector, said RocaM. Wolfsburg , West Germany, to call for the extension of Eu­ rope's new unity to benefitthe Third World. Development of the Soviet economy "We are proud and fu ll of hope about the developments Both Kohl and Rocardpledged increasedGerman-French here in Germany and in Europe," Kohl said, "but we have to cooperation toward the economic development of Eastern be aware that other regions of the world are equally impor­ Europe and the Soviet Union, which is now considered a tant-for example the developing sector, which has to be strategic necessity. A Soviet delegation to the conference, integrated into the world economy. The industrial countries led by Oleg Bogomolov , memberof the Soviet Academy of have to open up their markets to the developing sector." Sciences and adviser to Rus5ian Republic President Boris Europe will not become a protectionist fortress, he said, Yeltsin, made clearthat they in tum have adopted economic stressingthat "the big task of the 199Os" is to help the poorest security as their primaryfo reignpolicy interest. Soviet Presi­ countries, especially in Africa, and to solve the debt problem. dent Gorbachov sent a personal message to the conference, "The inalienable rights of man have to be realized," Kohl praising Chancellor Kohl for his achievements in theprocess declared, pointing to the revolutionary upheavals of the past of German unificationand offering broadcooperat ion. year that led so rapidly to the reunificationof his nation. Bogomolov offered a great opening to the West: "In the The chancellor was addressing some 500 top industrial next 10 years, the Soviet Union and the whole of Eastern managers and scientists from 36 countries at a conference of Europe have to be integrated into Europe. It is in the West's the newly founded International Partnership Initiative (IPI). own interest to develop the Soviet Union. After 70 years of French Prime Minister Rocard spoke next. "I want to separation, we arenow coming back to European civiliza­ thank German Chancellor Helmut Kohl explicitly for his tion." The challenge is gigantic, as Bogomolov's report courageous statement, that there should be no decoupling about the abysmal state of the Soviet economy showed. To between the industrialized nations and the developing sec­ avert a total breakdown, with its obvious destabilizing politi­ tor," he said. Rocard went on to demand a change in Western cal ramifications, Moscow needs low-interest credits , mod­ financial policies toward the developing sector, which are em technology, and transferof know-how . strangling some 100 nations. "How did the indebtedness of He was echoed by the deputy president of the Russian the Third World come about?" he asked, and gave the fo llow­ Republic, Gennadi Filshin, who called on Germanindustrial­ ing answer: "Because they used our methods of financing. ists to help set up a new structore of small and medium-sized This has to stop. There has to be a methodological change in enterprises in the Soviet Union, based on Western tech­ this respect." nology. In reference to the tasks of economic development in the Third World and Eastern Europe , Rocard spoke of two Agreements at the Leipzig fair different approaches ("two money zones") taken by the in­ A consensus between the Bonn government and German dustrialized countries-one represented by "the United industry on Soviet economic aid had been demonstratedone States, but also by Great Britain, Canada, and the big interna­ week earlier at the Leipzig trade fair, where the Eastern tional cartels," the other by the "German-Japanese productiv­ Trades division of the German Industrial Association had ity zone." While the firstis oriented toward short-termcapital assembled 200 managers from. both parts of Germany and gains rather than investments for the future , and sees invest­ the Soviet Union on Sept. 7. The Soviets sent a high-ranking ments in the future as a drain on current profits , "the most delegation, including Foreign!Trade Minister Katushev, an

6 Economics EIR September 28, 1990 economic adviser to Gorbachov, the chairman of the Moscow The G.D.R. and the U.S.S.R. are strong foreign trade Foreign Trade Bank, and the deputy ministers for trade and partners . The Soviets conduct 10-12% of their foreign trade the chemical industry. The German head of the Eastern business with the G.D.R., which in turn conducts 23-25% of Trades division, Otto Wolff von Amerongen, endorsed the all its fo reign tradewith the Soviets. This mutual dependency draft forthe German-Sovieteconomic treaty, which had just shows in the importance of the U.S.S.R. as a supplier of beennegotiated between West German Economics Minister energy and raw materials to the East German economy. The Helmut Haussmann and Katushev in Bonn. G.D.R. imports all of its natural gas from the Soviets, 97% The "agreement on the establishment of broad coppera­ of its oil, and 75% of its coal. These energy imports covered tion in the fieldof economics, industry, science, and technol­ 30.5% of its energy consumption in 1987. More than one­ ogy" supersedes the existing treaties between the Soviet halfof its imported trucks and tractors come from the Soviet Union and East Germany and West Germany , respectively. Union. Besides guarantees for goods deliveries from the eastern part Almost two-thirds of all G . D.R. exportsto the Soviets are of Germany to the Soviets after unification, it includes the in the categories of machine tools, equipment, and transport small and medium-sized companies in production coopera­ vehicles. This underlines how important the Soviet market tion, removal of trade barriers, promotion of joint industrial is for these East German economic sectors. Within this cate­ exportsand technology to third markets, bestpossible condi­ gory, the biggest portion are vehicles and spare parts, fol­ tions for the exchange of experts, pilot projects to modernize lowed by agriCUltural machinery, equipment for the chemical agriculture, and cooperation in the fields of space research, and timber industries, as well as machines for the metal­ shipbuilding, high-speed rail systems, and nuclear energy . working industry. According to the East German Economics Also, the structureof the German-Soviet Economic Commis­ Ministry, 25% of all jobs depend directly or indirectly on the sion will bechanged to add representativesof differentSoviet close interlink between these twoeconom ies. More than two­ republics. thirds of the total industrial exports to the U.S.S.R. (in 1988 While infrastructure development in the Eastwas repeat­ this was DM30.2 billion) have been produced by 38 state edly named as "strategic priority" by the tycoons of West companies employing 935,000 workers . These companies German industry, they left no doubt that this requires a will play a crucial role in the future economic relations be­ "change in the methodof thinking," as the head of theAssoci­ tween a unitedGermany and Eastern Europe . ation of GermanIndustry, Dr. Tyll Necker, put it. The tradi­ At a Franco-German industry panel held in Vittel, tional instruments of finance credits, going into the bottom­ France, in mid-September, West German Economics Minis­ less pit of a socialist planned economy, are outdated, said ter Haussmann particularly urged French industry andbanks Necker: "We have to be morecreative ." The economic struc­ to invest in what used to be East Germany , and denounced tures in the U.S.S.R. have to be strengthened, so as to allow propaganda to the effect that East Germany would become higher productivity. "It is not enough to deliver rail cars . The "the Mezzogiorno of Germany"-a reference to the poorer question is whether they will be used effectively. We know and more backward regions of southern Italy. that the Soviets lose more food per yearthan they import. A He pointed to the opportunity for every French company functioninginfrastructure to preventcatastrophic bottlenecks and investor that cooperated with a German firm to receive in transportand storage facilities will save the Soviets billions special tax rebates and subsidies on Eastern investments. in foreign currency. " Haussmann said that close economic cooperation between France and Germany shall play the role of a catalyst for East German industry: gateway to the East developing an "economic zone from the Atlantic to the Inpresenting the German-Soviet economic treatyin Leip­ Urals." zig, Economics Minister Haussmann made clear that there French Foreign Trade Minister Jean-Marie Rausch re­ can be no economic development in Eastern Europe without sponded positively to Haussmann's remarks, emphasizing development of the Soviet economy. The transmission belt that there is good reason to be confident that France, being inhis "trilateral"West German-East German-Soviet cooper­ West Germany's number-one trade partnerin the West, will ation is the industry of the former German Democratic Re­ keep that position also with the united Germany . public (G .D.R.), with its numerous economic links to the Chancellor Helmut Kohl, too, at the close of Franco­ Soviet Union. Industrial growth and modernization afteruni­ Germanconsultations in Munich on Sept. 19, issued a special fication will increase this crucial potential, even if it is now appeal to the industrialistsof France to invest in East Germa­ blocked by an inevitable liquidity crunch for companies in ny . Following a meeting withFrench President Fran�ois Mit­ the East after the currency union was introduced in July. terrand, the two leaders pledged to pursue economic coopera­ But the close links to the Soviet and other East European tion in such areas as nuclear power, the high-speed train economies are key to the integration of East Germany into projects ICE and TGV, space enterprises, and investments the European market, as they are decisive for the required in what used to be East Germany , as well as the rest of Eastern structural changes in the Soviet Union. Europe.

EIR September 28, 1990 Economics 7 New oil price shock will finish off the u.s. economy by Marsha Freeman and Anthony K. Wikrent

On Sept. 18, the price of crude oil futures contracts rose to . . . with oil moving to $25 a barrel, we are flirting with their highest levels ever. The October contract on the New negative growth." York MercantileExchange reached $33.63per barrel,while In reality, the doubling of oil prices will send certain the price of Europe's benchmark North Sea Brent climbed sectors of the U.S. economy, �uch as air transport and truck­ above $36 per barrel. This nearly $15 per barrel price rise ing, which are already tottering on the edge of bankruptcy, since a year ago rendersunavoidable what has euphemistical­ over the edge. The cost to the consumer, particularlyin home ly been termed a "recession" in the United States. Sources heating oil and gasoline bills, will mean another ratchet col­ in Europe say that the desperate shortfall of world refining lapse in the fragile standard of living of the majority of capacity has yet to be felt, and forecast a sharp new rise Americans. in gasoline and heating oil prices sometime during October through November. Transportation hardest hit While the price of oil has been artificiallylow over recent Transportation industries will be decimated, especially years, which has masked a growing depression collapse of trucking and airlines. The U.S. trucking industry hauls the physical economy, once the price of oil rises, the depres­ slightly over one-third of U.S. domestic intercity tonnage sion becomes painfully clear. The effects of the oil price rise and accounts for slightly over one-quarter of U. S. intercity will tear through various sectors of the economy in obvious ton-miles of freight. As of 1988, the U.S. trucking industry and not-so-obvious ways. consisted of 39,609Interstate Commerce Commission-regu­ The total of refined petroleum products supplied to U.S. lated motor carriers, accordiDg to the American Trucking end-users in 1989 was 17.24 million barrels per day (bpd). Association (AT A). These carriersoperate about 1.2 million Of that, 62.9% went to the transportation sector, of which trucks-which will consume 462 million barrels of petro­ 42.5% or 7.33 million bpd was motor gasoline, almost all leum products this year. Assuming that the trucking industry consumed for transportation. Another 18.3% or 3.15 million will have to spend an additional $15 for each barrel of oil for bpd was distillate fueloil, morethan half of which was diesel the remainder of this year, them the trucking industry's fuel fuelconsumed for transportation.Jet fuelaccounted for 8.6% bill has just soared by $2.23 billion. or 1.49 million bpd, all of which was consumed for air trans­ In 1988, the 39,609 truckingcarriers earned $57.4 billion portation. in revenues, but only $2.4 billion in operating income and According to Nancy Sidhu, an economist with Security $1.24 billion in net income. In 1989, according to figures Pacific Bank in Los Angeles, each $5 perbarrel increase in from the Regular Common Carrier Conference, operating the cost of oil adds a cost on the U.S. economy of 0.3% of revenues for the 55 largest American trucking companies Gross National Product, forcing the U.S. to pay about $60 were $13.822 billion, with operating income of $532.0 mil­ billion more for its petroleum imports. Each 5¢ increase in lion and net income of $259.4 million. Obviously, there is the cost of gasoline increases the cost to consumers by about no way that the trucking indu�try can absorb the increased $3.5 billion, which is just under 0.1 % of disposable income. fuel prices. The industry is now in the process of obtaining According to Sidhu, Security Pacific's macro-economic approval for rate increases, and in some cases have already model showed that a $5 per barrel increase reduced 1991 obtained them. But, as trucking industry representatives at­ GNP growth by half a percent, with effects first seen in the tempted to explain to the Interstate Commerce Commission fourth quarter of 1990 and first quarter of 1991. on Sept. 9, the industry is already in ill health as a result A $15 per barreloil increase would wipeout presentGNP of cut-throat price competitiop resulting from 10 years of growth. Mike Moran, chief economist of Daiwa Securities deregulation. in New York, noted that $25 a barrel "was enough, against They received little sympathy: ICC chairman Edward the background of slow growth, to tip the economy into Philbin and vice-chairmanKaren Phillips-who was a mem­ recession. If we had robust growth, we might be able to ber of the Senate Commerce Commission when trucking absorbit, but right now the economy is only growing at 1.5% deregulation was pushed throughin 1980--instead purveyed

8 Economics EIR September 28, 1990 the line that the fundamental problem in the industry is "over­ But in the past three years, the use of oil in the electric capacity. " utility industry has actually increased by 34%, up from Reflecting the ill health of the trucking industry, new 546,000 barrels per day in 1987. The inability of the utilities sales of heavy trucks in the U.S. have registered 12 consecu­ to build nuclear or baseload coal-firedplants due to financial, tive months of double digit declines, with sales of Class 8 environmental, and regulatory sabotage, has pushed them trucks (33,000 pounds or over)-the truck type that moves into adding virtually only peakpower capacity. It is estimated the vast majority of the nation's truck freight-leaving sales that 50% of the new capacity coming on line in the next five for the year down 16.8% from the sameperiod of 1989. The years will be oil- or natural gas-fired.According to theU.S. oil price shock will help sink this ailing industryas new sales Council for Energy Awareness, this could push oil use up shrivel even more. from today'slevel by 2 million additional barrelsper day. Over the past two months, the price airline companies The use of imported oil by the electric utilities is geo­ pay for jet fuel has doubled, to close to $1 per gallon. Fuel graphically specific, concentrated on the east and west accounts for approximately 20% of an airline's operating coasts, with New York being the most oil-dependent. The cost, and as such, is the industry's highest operatingexpense New York City-based Consolidated Edison Company is 41% after labor. Within days of the start of the Iraqi invasion of oil-dependent, and the nearby Long Island Lighting Compa­ Kuwait, many commercial airlines announced fare increases ny (LILCO), 63%. In New York, which has the highest as pass-ons to customers of the expectedfuel price hikes. But electric rates in the country because of its imported oil bill, declining passenger trafficand a weakeningfinancial position the trade-off between oil and nuclear can be directly drawn. have left little hope that fare increases can bail out the in­ If Gov. Mario Cuomo and the anti-nuclear lobby in and dustry. around the state had allowed the Shoreham nuclear plant to The jump in oil prices will potentially hike annual costs operate when it was completed five years ago, it would be to airlines for fuel from about $9 billion to about $14 billion reducing the amount of oil the Long Island Lighting Compa­ per year. According to the Air Transport Association, each ny has to import by nearly 8 million barrels per year, saving $1 increase in the price of a barrel of crude oil increases the nearly a quarter of a billion dollars. cost of gallon of jet fuel by 3¢. That means a cost increase of almost $500 million per year per penny increase. Chemical industry can't pass on costs According to the ATA, in the first quarter of this year, According to Owen Keane of the Chemical Manufactur­ the airline industry lost $600million. In the second quarter, ers Association, the U .S. chemical industryused 2.5 million the industry turned a profit, but it was not enough to make bpd oil equivalent of energy, 45% of which was crude oil, up for the first quarter's losses. Industry analysts expect a or 1.125 million bpd of oil in 1989. About 95% of that crude consolidation (i.e., rationalization, or cartelization) among oil is used as feedstock, mostly for the production of three the nation's 25 aircarriers. It is unlikely that a consolidation major primary derivatives: ethylene, propylene, and bu­ will improve either service or safety, in an industry that talyne. already ranks as one of the worst in the world in passenger The total energy bill (fuel and feedstocks) for thechemi­ preference and service. cal industry is about $20 billion a year, of which half is for oil. The Chemical Manufacturers Association has estimated Electric power more oil-dependent that a $10 increase in the price of a barrel of oil would cost The oil shock of 1974 created a situation in the United the chemical industryanother $7.5 billion each year. States which had never existed before: The price of delivered The industry manufactures over 60,000 products, and electric power increased for the first time since the 1880s. many would not be greatly affected by an increase in the Some utilities dependent upon oil had to raise rates by over price of oil. However, some products, such as ethylene gly­ 30%, but learninga hardlesson, the electric utilities planned col, used in antifreeze, are 80-85% oil derived and would to decrease their use of imported petroleum. At the time of have to increase 20-25% in price to recover a $10 price the 1974 price hike, 17% of all electricity was generated increase in a barrel of oil. According to Ronald Whitfield, through the burning of oil. As nuclear power plants were vice president of Charles River Associated, Inc., in Boston, only just startingto come on line by thetime of the 1979 Iran $25 per barrel oil forces ethylene prices up about 15%, to embargo,the utilities were still 16% dependent upon oil. 27.6¢ a pound, while propylene prices are forced up 16%, At the currenttime, however, nuclearpower is producing to 18¢ a pound. Further along the production process, prices nearly 20% of U.S. electricity, and oil only 5.6%, mainly for low-density polyethylene will be forced up 17%, to 39¢ for peaking and not baseload capacity. As nuclear plants a pound, and the price of crystal molding grade polystyrene came on line, the delivered cost of electric power resumed will rise 21 %, to 47¢ a pound. its historical decline. Today the utilities use about 731,000 Overall, Keane stated, if the additional energy cost of barrels per day of oil, which is only 0.5% of total national $7.5 billion were to be successfully passed through, chemical oil use. industry products would have to increase about 4% in price

EIR September 28, 1990 Economics 9 on average. In 1989, the industry's estimated operating in­ Agriculture estimates that if oil prices stay around the $30 come was $25.93 billion. Thus it appears that the industry per barrel level, farm production expenses can be expected can absorbthe price increase, as it might well have to. Keane to increase by $1.7 billion over previous $20 per barrel oil noted that the chemical industry has begun a number of new estimates, for 1991. If oil were to go to $40 per barrel, the projectsin recent years to increase capacity, but now demand increase could top $2.6 billion. is slackening due to recessionary factors. Keane stated that Agricultureis distinct fromother sectors of the economy. "the supply-demand factors facing the chemical industry The USDA states, "Net farm income would drop as farmers would work against any major passing through of increased are unable to pass cost increases directly to the consumer." energy costs." The increase is initially bome.by the producer, who can only get a set price for his commodity at market. Therefore, for Agriculture may be the most vulnerable the section of farmersalready at financialrisk, such increased A risein oil prices will substantially affect everyaspect of production costs could be impossible to absorb. growing, processing, and delivering food. Petroleum-based In the last two oil hoaxes, animal production was very fuels used directly for farm equipment in grain production, hard hit, due to increases in the costs of heating (fuel) and for example, are only $8 per acre of a total $150 per acre cooling (electricity)the farm facilities, and increases in feed operating cost, but every other aspect of agriculturedepends from rising transportation prices. The USDA report states upon energy inputs as well. Drying and storing 'grains, for that "higher transportationcosts raise meat distributioncosts, example, requires another $4-5 per acre of production of which would bepassed on to consumers andback to livestock mainly natural gas and oil-derived liquid petroleum gas. producers. " A recent study by the Congressional Research Service Overall, the USDA projects a 1-2% rise in food prices stated that while agricultural production accounted for only accompanying a $30 or $40 barrelper price for oil, primarily 3-4% of total U.S. energy consumption, the entire food and from higher transportation costs. fiber industry-production, processing, packaging, and dis­ This higher cost of food translates into fiscal year 1992 tribution-represents 15-20% of energy consumption. increases of about $170 million for food stamps, and in­ In a report issued on Sept. 11, the U.S. Department of creases in the cost of school lunch programs.

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10 Economics EIR September 28, 1990 towns and cities. In January, Shawmut Bank President John Hamill pre­ sided over a state commission, the Governor's Task Force on Local Finance, which called for imposition of such state­ appointed financial control boards as "a regular part of the u.s. cities face state-local relationship." Brockton officials report that ap­ proximately 100other towns are in similar straits, just inches behind Brockton. Will banks like Shawmut and the financial barUkers'dictatorship moguls holding the state hostage to impending bankruptcy, precipitate local fiscal insolvencies that force these towns' by Steve Parsons elected governmentsto submit to overseers appointedby the same state and banks? Under the impact of collapsing revenues, state and local budget crises all over the United States are turninginto fiscal . • • and Philadelphia hemorrhages. The situation is becoming so severe that no On Sept. 20, an emergency meeting of Pennsylvania state amount of the usual budget-cutting will stanch the flow of officials, Philadelphia leaders, and sundry financial "advis­ red ink. ers" was taking place at that city's Chamber of Commerce. In the offingis a plethoraof "emergency" fiscalmeasures, Both the Chamber and the Philadelphia Inquirer have called so-called "budgetary shock therapy," aimed at radically alter­ for a financial control board to run the city, which is facing ing the function of government to enable imposition of even bankruptcy by November. Moody's and Standard & Poor's bigger tax hikes and expenditure reductions. Using the model recently dropped Philadelphia's credit rating below that of of what was done to New York City during 1975, hard-nosed junk bonds, to "near-default"status, and no bank will finance Wall Street "realists" are preparing bankers' dictatorships to even its revenue anticipation notes. As a result, the city halted control and in effect replace local governments that are new spending for one week in order to conservecash. deemed to be too beholden to their constituencies. Speaking at a forum in July on the city budget, former In 1975, under the banner of saving New York from New York City Budget Director and Rohatyn crony Donald bankruptcy, Wall Street's top banks and investment houses Kummerfeld endorsed the Chamber's call for formation of a abruptly terminated further debt financing-after years of "bipartisan advisory board, in the following terms: "The encouraging and providing funds for such borrowing. This tough things to be done can't be done by the local elected immediately precipitated a cash-flow crunch that pushed the officialunless he has someone else to blame." city to thebrink of bankruptcy. The bankers then insisted on Rohatyn himself has been "consulted" about Philadel­ the creation of an Emergency Financial Control Board and phia, and his Lazard Freres firmis advising an untold number the Municipal Assistance Corporation to rule over the city's of cities and states. The national media once again have him budget and borrowing practices. Lazard Freres' Felix Roha­ in the headlines. On Sept. 11, the New York Times featured tyn was installed as chairman of what became known as Big a commentary by Rohatyn titled "New York can be made to MAC, with the mandate to impose austerity so severe that work," in which he focuses on gutting labor as the solution the city has become a living hell. to New York's new fiscal crisis. To this day, even though the city supposedly"recovered" "For things to get better," he writes, "the city will have from its budget crisis years ago, Rohatyn is still the chairman to make fundamental changes in the way it goes about its of Big MAC; the Financial Control Board is stillin place to business." Rohatyn maintains that it's not the lack of money take over the city's finances;and a statute is still on the books that creates the city's problems; it's "the work force [that] that dedicates various city revenues, including sales tax re­ has grown by more than 50,000 people in the last 10 years," ceipts, to debt repayment to guarantee bonds that the banks he states, adding the lie that "in the same period, labor con­ either underwrite or own themselves. tracts have grown generously." "The city must develop an economic and management

Big MACs for Massachusetts • philosophy in setting wage and personnel policies," he Already in Massachusetts, five towns and cities have writes. For Rohatyn, that ')hilosophy" means paying city been forced to agree to having financial controlboards over­ workers not even the miserable 1.5% increase so far offered. see their budgets. Brockton was the latest, having to accede "Nothing would be more destructive to the city's economy to such a board when Shawmut Bank suddenly stopped its than an across-the-board labor settlement at rates the city traditional lending against the city's tax anticipation notes. cannot afford." The solution: "a one-year freeze in total labor The city had run out of cash for its payroll-not through costs ...attrition and layoffs." its own doing, but primarily as a result of the state's fiscal Perhaps Rohatyn hopes no one will ever again visit New quagmire that has resulted in savage cuts in state transfers to York to witness the "success" of his Big MAC.

EIR September 28, 1990 Economics 11 be distributed to Indians and other foreign nationals in Iraq and Kuwait who need food . The Indian ambassador to Bagh­ India rejects use dad met with the Iraqi Foreign Ministry to make this agree­ ment. The Indian Red Cross and Iraqi Red Crescent will of food as a weapon distribute the food ." There is no question who is using food as a weapon. Even among the "Permanent Five" on the U.N. Security Council­ by MaryBurdman the U.S., Britain, France, China, and the U.S.S.R.-there is no unanimity on the issue. Soviet leader Mikhail Gorba­ Along with the vast quantities of modem weaponry now chov not only refused to support the U.S. military deploy­ being sent to the Persian Gulf, another weapon is being field­ ment in the Gulf during his summit with George Bush in ed by the Anglo-American war machine against Iraq: the Helsinki Sept. 9; the summit statement also emphasized that "food weapon." This was foreseen in 1989, when U.S. con­ Resolution 66 1 permits food imports by Iraq in "humanitar­ gressIOnal candidate Lyndon LaRouche warned that food ian circumstances." China voted with Cuba and Yemen on was going to be used as a strategic weapon by the Anglo­ Sept. 14 for a new resolution totally excluding foodfrom the American financial establishment against the nations of the embargo. Yet British Foreign Secretary Douglas Hurd said South. thatthe U.K. would prevent countries "sympathetic to Iraq" The U.S. and British-led faction in the United Nations from sending in food supplies in the guise of humanitarian Security Council has "interpreted" Resolution 66 1 , which set aid, the Hindustan Times reported Sept. 9. up an embargo against Iraq , as a total embargo of even food The U.N. Sanctions Committee is trying to shift the and medicine-using military might. Ships attempting to blame for the food warfare onto Iraq . Chairman Marjatta bring food supplies to Iraq have been stopped by force by the Rasi of Finland said Sept. 13t "The information we have is naval patrols in the Gulf. The blockade threatens more than that there is still plenty of food in Iraq , but Iraqi authorities Iraq's population. Hundreds of thousands offoreignworkers , are using food as a weapon." Despite these claims, Iraq has mostly Asians, still in Kuwait and Iraq face starvation. tightened food rationing just two weeks after rationing was But a group of nations, led by India, is fighting back. first introduced. India and other nations of the Non-Aligned Movement, rep­ It is children who are suffering most from the embargo. resenting almost the entire developing sector, which led the The Berlin daily tageszeitung reported Sept. 19 that Iraq fight for a New World Economic Order in the 1960s and currently has sufficient vegetable and meat supplies, and that 1970s, have forced the blockaders to back down. An Indian U. S. journalists there were "furious" about the lack of effect ship carrying 12,000 tons of food sailed for Iraq on Sept. 16, the embargo was having. But Iraq is heavily dependent on and India has reached a direct bilateral agreement with Iraq imports for foods necessary ,for children, including fresh that the food will be distributed to Indian citizens and to milk. On Sept. 8, the London daily Independent reported any developing-sector foreignworkers-from Sri Lanka, the that the U.S., using its veto power at the United Nations, had Philippines, Thailand, Pakistan, and other nations-who barred two Bulgarian ships carrying 26 containers of baby need it . food from leaving Hamburg harbor for Iraq . Iraqi doctors at the Saddam Hospital for Children in Baghdad report that sick No right to stop medicine and food children will be dying in the hbspitals in another few weeks, "We are determined that food and medicine will not be as supplies of fre sh milk, insulin, saline drips, antibiotics, used for political purposes by any side," India's High Com­ and oxygen run low. missioner to Great Britian, Kuldip Nayar, told EIR Sept. 19. On Sept. 14, the U.N. Security Council, "sensitive to "The Indian ship will land in two to three days. We want the criticism that the organization! has used food as a weapon," food to be distributed to all nationals. pushed through Resolution 666 , the London Times reported. "Iraq must quit Kuwait, there is no question on that. Its intent is to extend the embargo to increase pressure on However, the U.N. Resolution totally exempts food and Iraq , and blame Saddam Hussein for the hungry Asians. medicine from the blockade. No one has any power or right Resolution 666 says the U.NJ-which has no personnel in to stop food and medicine. After this first ship, the process Iraq-must first "determine" the need for food, report back, should expand." and then any food shipped in must be distributed under the Claims that Iraq's governmentwould seize any food ship­ control of the international agencies, which Iraq has refused ments are unfounded, the High Commissioner said. This has to allow. Indian Foreign Mililistry spokesman Antaf Seth been cited repeatedly as a reason to prevent food shipments blasted these tactics in an interview with the BBC Sept. 12. to Iraq . Although, Nayar said, he is sure that it has not "There will be no gain in delay except deaths by starvation," been reported in the Western media, "afterthe food ship was Seth said. "If that is the goal of theU.N. Sanctions Commit­ cleared for sailing, Saddam Hussein agreed that the food will tee, I have nothing more to say to them."

12 Economics EIR September 28, 1990 Gdanskworkers confront Mazowiecki, attack Balcerowicz Plan by Jacques Cheminade

The crownedeagle of Poland, a crucifix, and the symbol of We want to go on selling our goods, but not to be robbed. the Gdansk shipyards decorate this hall where the Solidar­ Is federal Germany going to indemnify us for the canceled nosc wave began in 1980, where the strikers' passionate contracts of the former East Germany? Do you know that speeches mingled with poems of Slovacki, Mickiewicz, and you are in the process of creating an army of unemployed? Norwid, where today, Aug. 30, Prime Minister Tadeusz Ma­ Your policy has no effect; it controls inflation by ruining us zowiecki has come to confront the anger of these workers of and ruining what we produce. Your policy has no effect; it the Baltic Sea. Regardless of what one may think of his risks bringing to nought what we've fought for for 10 years, policy, one cannot help but admire a prime minister who 20 years," says another. came with his Labor and IndustryMinisters to submit himself Another worker then raises the fundamental question: to questioning from working men; nor can one help but love "Are you for or against production? Things are going very a country where it is possible to do so with neither violence well for shipyards in the world today, makinglots of profits, nor personal attacks. except for us, here in Poland. Why areyou lettingus founder The assault is very rough,the more so for the high degree by imposing impossible conditions? Personally, we consider of political consciousness that guides it. Wieslaw Wodyk, you as a friend, we were comrades in battle and in prison, representing the Gdynia shipyards, is the first to attack. but I can no longer support your austerity policy for the "Your program, the Balcerowicz program, claims to fight workers and pork-barrels for the Nomenklatura, who are not inflation. That may be, but to the detriment of the workers. only surviving but getting prosperous. I like you a lot, but This is the Nomenklatura's program, not that of the workers not enough to die for you. I would rather live with Lech who brought about the changes in Poland. Stability? Yes, Walesa." but at a level of very little supply, and an even less demand. Embarrassedand not hiding it, Mazowiecki responds that Therefore, in such conditions, it is easy to say that inflation Poland is the first country to go from communism to capital­ is disappearing .... Don't be surprised if the country is ism, from a centralized economy to a market economy. It apathetic: austerity against those who made the Revolution has the chance to occupy an important place in a nascent and privileges for the Nomenklatura cannot engender enthu­ Europe, but it has to be an example. It depends on a difficult siasm with anyone! Of course there is apathy in society at worldwide conjuncture. We can't go too quickly, we have large, but it's the result of the government's apathy. You to keep the most competent people in their positions, we claim to be cleaning up the economy, but did it ever occur to don't want any witchhunts .... you to clean out the ministries in Warsaw? You are fighting Industry Minister Tadeusz Syryjczyk, who intervenes inflation,but have you thought about production? You worry next, himself shows an absolute ignorance of economics. about finances, but what about growth? A competent econo­ He simply repeats the buzzwords of various American and my is like a train, you have to begin by choosing which British institutes and goes so far as to say, "People complain locomotive to pull it. But I don't see one. Do you have that they have to leave a qualified job in order to sell things an employment strategy? Do you plan to protect budding on the streets. But that's normal; that's a proof of vitality. industries like every successful industrial economy has We should develop business and services much more .... done?" Business is the basis of capitalism and it begins with a little The charge is relayed from one speakerto the next, all of stand in the street. Our role is simply to ensure health stan­ whom represent regional entreprises. "Prime Minister, you dardsfor those who sell." Only the invisible hand is missing. are doing nothing to promote investments. The substance of Labor Minister Jacek Kuron is obviously of a different a ship is the equipment to produce it and the high skill of caliber. He defends himself like a skillful devil, admitting labor. What are you doing to ensure the survival of both?" that prices in Poland look more and more like those of West­ demands one. "You are not telling us anything about the em Europe and the wages like those of East Germany. But financial agreements with the U.S.S.R., or with Comecon. "we can only eat what we produce. Our system of production

EIR September 28, 1990 Economics 13 has been destroyed or left to abandon by the communists. to pay out, and not to have them produce, but to occupy Our profit capacities are seven times less than the principal profitable niches, especially in services! There is trading in Western European countries. We could keep prices artifi­ human flesh: I know of cases in which workers have been cially low, but that would lead to ruin .... The state can bought and sold, there is looting of the state-owned enter­ no longer do everything. We must get rid of the welfare prises, and total falsification of terms of competition-and mentality. We cannot be constantly protecting the weak, and all in favor of our former enemies. Is that what we have maintaining a facade of equality. Elsewhere in Europe, they fought for?" had triedto have equal wages. Then the socialists themselves The directorof the Gdansk shipyardscontinues his attack: realized they were mistaken. They created unemployment, "The only real way to fightinflation is to increase production, by preventing firings. Now, they have given up. Everyone to satisfy the demand for gO?ds. Is that what are you doing? should be paid according to his skills. We, in Poland, cannot The answer is, 'no.' What you aredoing is to reducedemand, do things differently than in Bonn or Paris." Mazowiecki to reduce production. That's how specUlative activities are then takes the floor again to add, "After the wonderful hour created, the sources of future inflation. You have reduced of liberation, people are coming back to reality. People are inflation in the short term by creating the conditions for a having a difficult time and are closing themselves up in pri­ tragedy in the medium and long terms. And even that is not vate affairs. It is not the fault of the government, but of the true. Because, if there were no inflation today, if you had at whole society." least achieved that end, how could the annual interest rates At this point, it has become clear that the government on loans to industry be at 66% since the beginning of the representativesare taking refuge behind a deterministiccon­ year? Funny way of not having inflation,Mr. PrimeMinister. ception of history, by simply replacing the Marxist gospel At the same time, here in Gdansk, although we are the only with the liberal one. "We can't do anything about it; the Polish non-military production present in Europe, although conjuncture works this way; the laws of the free market work we have one of themost highlyskilled work forces, although that way. We have to clean things up, make things pay, cut other shipyards are working full capacity, here 65% of our the fat." plant is not utilized. You are in the process of dismantling The problemwith Mazowiecki and his government is that our whole Baltic coast. More than 600 firms linked to ours they definethemselves in terms of initiatives and conceptions are being shut down, as well as technical schools thewhole foreignto themselves, in terms of a certain fatality or pattern world appreciates, although shipyards are doing well of constraintsthat dooms any of their own, internalinitiatives throughout the world. from the outset. In this way reality is divided into slices of "You know, Mr. Minister, we don't ask anythingof you. knowledge, each served up independently from the next, We don't want aid or subsidies or whatever. We want equal deprived of life and vigor. In such a closed, gray universe, terms of competition, the freedom to produce. The 'joint no perspective for production, for creation can appear. ventures' don't pay taxes. We do. That is unacceptable! The law does not allow us to pay human labor what we would Speculators traffic in human flesh like to. That, too, is unacceptable. Privatize? Yes, I applaud In this atmosphere of impotence raised to a doctrine, it it withboth hands. But not if it means removing the substance was left to a worker to echo the voice of truth. Hans Seyc, of the state. Orselling off ch¢aply the companies thatwe are director of the Gdansk Naval Shipyards, does not mince his prevented from making profitable ! People aren'tfighting any words and takes all the risk of displeasing some people. morelike they used to, they dpn'tbelieve in it any more.The "Let's tell it like it is. My shipyard is functioning without a question is: How can a worker whose purchasing power is plan or a program. We are placed in impossible conditions. falling continue to believe in it, while his neighborfrom the We are giving away the most profitableparts of the shipyards Nomenklatura is prospering?" to Polish-foreigner 'joint ventures,' who are exempt from This discourse only received a dilatory responsefrom the taxes, who come with considerable means of financing and Industry Minister, who treated it as "demagogic," all the begin with no debts; whereas we have to pay taxes, to repay while announcing, along with the prime minister, a large our debts, and we have no means of financing. We don't wage hike for Sept. 1, which was far, far below European want to destroy these new associations, these 'joint ven­ norms. This was the one conoreteelement to come out of the tures,' quite the contrary; but we do want fair competition. meeting which was notable for the evidence of deep political There, the elements of the Nomenklatura have become 'pri­ consciousness of the trade union leaders, but disappointing vatized' while giving themselves all the advantages, and here from the standpoint of the government's behavior.It is clear they are at the head of the 'joint ventures'! We have been in any case, that the social base for an alternative to the substantially looted, not to profit the investors or the produc­ Balcerowicz Plan exists in Poland. It remains now to be ers, but by the speculators in the Nomenklatura ! They have built up, and for France and Germany to lend the necessary organized a veritable traffic in human flesh. They plunder support. The Schiller Institute will certainlyhelp that alterna­ our best workers with wages twice what we are authorized tive, so crucialfor the future of Europe.

14 Economics EIR September 28, 1990 Brazil's monetarist'bullets ' won't stop inflation by Lorenzo Carrasco

Just before Brazilian President Fernando Collor de Mello 0.5% of the Gross National Product, which in reality trans­ took office on March 15, he compared himself to an expert lates into a budget cutback of about 8% of the GNP (approxi­ hunter who could fell the fiercetiger of inflationwith a single mately $32 billion), given the fact that last year'soperational shot from his rifle. Exactly six months later, the official deficit was 7-8% of the GNP. This brutal cutback is being economic indicators reveal that President Collor and his eco­ achieved through, among other things, laying off scores of nomic team shot wild, only grazing the tiger. The actual thousands of public employees, and through the sale of na­ impact of the "bullet" hit the country's real productiveactivi­ tional patrimony, prominently including various state sector ty, creating conditions for an unprecedented depression companies which are being auctioned off to thehighest bid­ which threatensto add dramatically to the millions of Brazil­ ders, be they national or foreign. ians already living in dire poverty. Regarding the layoff of public officials,the letter of intent The violence of his anti-inflationprogram was recognized says that "the government is determined to achieve a signifi­ by President Collor himself, in statements to the London cant reduction in the number of federal officials. . .. Financial Times reported Sept. 12 in the Brazilian press. Through mid-August, nearly 145,000 officialshad been laid "No economic compendium contains an adjustment plan as off, 43,000 placed on paid suspension, and 13,000 induced rigorous as this ....Neither the IMF [International Mone­ to retire early. " tary Fund], nor any banker, would dare impose such a far­ On the privatization program, the letter of intent says, reaching program on any country in the world." "The first group of public companies to be privatized within Collor's program was indeed severe. In one stroke, he the first three years includes ten firms in the petrochemical, froze two-thirds of the nation's money supply ($80 billion in steel, and fertilizer sectors, with a total value preliminarily savings, financial assets, bank deposits, and investments), estimated at 15 billion liquid dollars. Apart from these com­ unexpectedly liberalized foreign trade-which now threat­ panies, the government is also selling its minority holdings ens to drive thousands of Brazilian industrialists into bank­ in another 16 firmsin the petrochemicalsector. The resources ruptcy-andslashed public spending. But inflationresisted, from privatization will be used to rescue the public debt. As remaining at a level of 12% per month, and the rate has not of July 1990, the financialinstitutions should acquire, in 12 increased only because the Central Bank as of June has been equal allotments, nearly $2 billion in Privatization Certifi­ pumping liquidity out of the economy. cates which will be used to buy stock in the public companies that will be privatized. . . . The privatization program will Eighth letter of intent with the IMF be open to the participationof foreign investors." Despite every indication that his monetary policies have failed, Collor has insisted on aggravating the conditions of New monetary shock economic depression in the countrywith a suicidal monetarist In another part of theletter of intent, the Brazilian govern­ policydesigned to stabilize the inflationrate at 7% per month ment commits itself to a new monetary shock: "After the by the end of 1990, and at an annualized 25% in 1991. At March freeze of financial assets, the money supply grew least this is what is solemnly pledged in the latest "letter of rapidly. . . . In order to obtain the desired reduction of infla­ intent" signed with the IMF and revealed to the public in tion, it will be necessaryto have policies that strictly restrict mid-September. The letter of intent bears the signatures of credit, implying rigid control over the growth of the money Economics, Finance, and Planning Minister ZeliaMarfa Car­ supply, independent of the effects of such policies on the doso de Mello, and of Central Bank President Ibrahim Eris. levels of interest rates." Other promises to theIMF included in the letter of intent The government's stubborn insistence on lowering infla­ are the creation of an operational budget surplus in 1990 of tion with monetary policies based on the quantity theory of

EIR September 28, 1990 Economics 15 money, is digging the pit still deeper. The Central Bank has a foreign debt seminar held in Sao Paulo on Sept. 11 that alreadyannounced a "black September," with new and more "society has to understand the new reality, and for this there drastic measures to cut back the monetary base. is nothing better than a painful recession like the one that is On Sept. 10 alone, 120 billion cruzeiros (nearly $2 bil­ coming." lion) were withdrawn from circulation, by a mechanism Economics indicators already show signs of a serious which increased the banks' reserve ratio. This in turn imme­ depression, much more serio,s than a mere3% fall in GNP. diately provoked a leap in bank interest rates. On that single For example, the August economic review publishedby the day, time deposits (COBs) shot up 170 points, reaching a National Industrial Federation reported that the index of record 620% annualized interest rate. The next day, COB industrial production fell below 1981 levels, according to interest rates rose to 650%. Companies seeking credit on statistics from the Brazilian Geographic and Statistical In­ those days had to sign contracts with interest rate levels at stitute. between 700-800%. Comparingindustrial production of June 1990 with aver­ Further, the Central Bank had already announced that on age 1989 production, the production collapse of the industry Sept. 17, national banks would have to hand over 950 billion in general is 10.41 %. The major effects show up in the me­ cruzeiros (about $13 billion), equivalent to the amount the chanics industry, with a negative index of 17.81%, the elec­ banks had not delivered to the Central Bank on March 15, tricalmaterial industry, with -15.21 %, and transportmateri­ when the program was first launched. This measure has the al industry, with -35 .49%. The social implications of this potential to drive more than half of the national banking industrial fall can be clearly seen in the level of layoffs in system into bankruptcy. Even Central Bank President ibra­ Sao Paulo industries. him Eris recognized that "we created a situation of panic on According to themost �nt researchon economic tend­ the market by mistakenly proposing a September monetary encies by Price Waterhouse, published in lornal do Brasil adjustment." The banks have reached an agreement to pay Sept. 13, it is estimated that the rate of gross . fixed capital off the debts in four installments. formation this year will scarcely reach 14% of GNP, which Interest rates in the overnight market, which are used to is the lowest rate in the last 20 years. During the 1970s, this negotiate Treasury bonds (LFTs) and have stayed at a real rate reached the level of 25% of GNP. This latest research negative rate since March, began to go positive as of July. also reveals that investment plans of the top 500 industrial On Sept. 10, in unleashing the panic, the government had to companies in the country are virtually nil. offer LFT buyers interest rates above 22% a month, an ab­ According to statements published in Gazeta Mercantil surdlyhigh level comparedto the 12% monthly inflationrate. on Sept. 13 by Lindolfo EmesroPaixao, the operationsdirec­ This policy of drastic cutbacks in monetary liquidity has tor for Electrobras, growth in electrical energy consump­ created a bizarre situation. For example, the fictitious short­ tion-which should remain around 2% during 1990-will . age of cruzeiros and high interest rates caused dollar-dump­ be the lowest of the past dec�de. Earlier, a 6% growth rate ing, which devalued the U.S. currency against the cruzeiro had beenanticipated for 1990.In the 1970s, electrical energy to levels so unreal thatthey placed theentire Brazilian export consumption grew 10-12% a year. sector at risk. This forced the Central Bank, in turn, to buy The perspective for induStrial recovery is almost non­ up more than $800 million in dollars since Sept. 3. That is, existent; in fact, the depressiontendency is expectedto wors­ the cruzeiros which theCentral Bank withdrewfrom circula­ en as the result of new monetary measures and the latest tion on the one hand, in some cases paying excessively high orders of President Collor for a new 25% cutback in state interest rates to do so, are now returned to the monetary company spending for the last trimester of 1990. This will market through dollar purchases. The artificial fall of the increase the financial difficulties of these public companies, dollar has turned Brazil's cities-fromone day to thenext­ which are already suffering from the controls on public ser­ into the most expensive cities in the world-with the lowest vice rates that have been artifioiallycontained by the govern­ salaries in the world. ment's anti-inflation program. The economic depression is also revealed in the collapse Heading for depression of consumption levels. Between January and June of this In revealing its promises to the IMF, theCollor govern­ year, compared to the same period in 1989, retail sales fell ment estimates that its monetary measures will cause a 3% 14.24%. Supennarket sales fell nearly 20%, department fall of the GNP this year, but promises that next year will stores 30%, and clothing sales 40%. show a 3% positive growth. This goal, despite the fact that Given this picture, government estimates of a mere 3% it offers nothing more than zero growth, is a lie. The truth is GNP fall this year, and a 3% recovery next year are a cruel that government measures are forcing the economy into a hoax. The GNP collapse in 1990 could surpass6%. deep depression from which it will be difficult to recover. Having fired his last shot,President Collor, in his insis­ Harvard economist JeffreySachs was fullyaware of this fact, tence on taking Brazil down thismonetarist path, could well according to 0 Estado de Sdo Paulo, when he candidly told lead to a fatal confrontation with the tiger of inflation.

16 Economics EIR September 28, 1990 stragglersas a country, losing this unique historicalopportu­ nity to stop being underdeveloped and to integrate ourselves into the U.S. bloc-the bloc of opportunities and chal­ u. s. says 'Mexico lenges-it will be totally unjust for the nation." Mexican Foreign Minister Fernando Solana harped on the same point, when he addressed an odd gathering on Sept. belongs to us' 14 celebrating the 99th anniversary of the founding of the University of Chicago, held in Mexico City and attended by by Peter Rush numerous Mexican graduates of monetarist Milton Fried­ man's economics department who now hold top posts in the With Mexican President Carlos Salinas de Gortari and U.S. governmentthere. "I see a Mexico linked closely to the future President George Bush both pushing hard in their respective of the United States," he proclaimed, adding an oxymoronic countries to achieve a so-called "freetrade pact" at the earliest qualifier, "but a country independent and stronger politi­ opportunity, it is becoming ever clearer that the objective of cally." both Presidents is the economic annexation of Mexico to the United States. Bankers hail the 'Mexico model' The precondition for the planned economic annexation is With the Salinas administration so docile, bankers are completing the dismantling of Mexico's national economy urging other countries, especially in EasternEurope, to copy which was begun in 1983, at the behest of the International the"Mexico model." William Rhodes,the leading debt nego­ Monetary Fund, by Salinas's predecessor Miguel de la tiator for Citibank, Mexico's major U.S. creditor bank, Madrid. speaking at the annual trade fair in Leipzig, East Germany, Elliott Abrams, formerly President Reagan's Assistant said that the "Mexico model" for dealing with debt should Secretary of State for Inter-American Affairs and his chief be seen as a solution for Poland and other Eastern EuroPean policymaker for the continent, who is known to reflect the countries. views of the Bush administration as well, made clear in an And at a meeting in Bonn, he recommended that Eastern interview with Mexico City'S El Financiero. published Sept. European governments copy the processes of economic re­ 11, what is entailed in the push for a free trade accord with forms, such as privatization of state companies, as best dem­ the United States. onstratedby Chile and Mexico. Mexico's "price" for such an accord, Abrams said, is Rhodes conveniently failed to mention that despite all "less independence and less sovereignty." the reforms made by Mexico, the banks have not resumed. In order to enforce the pact, Abrams remarked that Sali­ lending, nor has foreign capital flowedin-the two supposed nas will have to use naked force. "Only a real explosion of benefits of carrying out the reforms. He also failed to spell violence in Mexico could interrupt the [free trade] negotia­ out the real policy of the banks: Keep the squeeze on until tions," he observed, "but this is considered a remote possibil­ Mexico has abandoned national control over not just most of ity, since Washington has full confidence in the capacity of its state industries, but all of them, including most important­ the governmentof President Salinas to maintain order and to ly the state oil company Pemex. use force when necessary." Moreover, the real "Mexico model" being referred to, is not the phony debt agreement which has not saved Mexico The view from Washington much money, nor the privatizations, which less sanguine Abrams attacked the very idea that Mexico should have observers say is part sham anyway, but the government's much economically to do with the rest of Latin America, ability so far to impose drastic cuts in wages, salaries,and the heretofore considered, both in Mexico and the rest of the development and infrastructure budget, without provoking continent, to be Mexico's natural partners in carrying out political upheavals-so far. continental integration. Even the term "Latin America," Ab­ rams said, is an anachronism. "Mexico has ceased having Salinas, jailer for the bankers authority in this region, toward which it has no affinity," Salinas recently stated that he envisioned maquiladora­ Abrams said, reflectingthe attitude in Washington of treating typeindustries all over Mexico. On Sept. 8, Salinas attacked Mexico as a colonial extension of the United States. the leaders of several independent trade unions representing The head of Mexico's National Council of ForeignTrade workers in the maquiladora industries in the region of Ta­ (CONACEX), Jorge Garcia Fernandez,said almost the same maulipas, who have been leading strikes and protests against thing in an interview with Excelsior newspaper on Sept. 10. low wages and terrible working conditions. He accused them "We can't let ourselves remain tied to the umbilical cord of of "defending their own interests"and not those of the work­ the subcontinent," he said. "And if, for political, or even ers, and said that their attitudes "contravene our laws and demagogic reasons, we are going to let ourselves become damage our country, provoking a climate of uncertainty in

EIR September 28, 1990 Economics 17 foreign investors, who are induced to look for other places to invest." The next day, Fidel Velazquez, head of theCTM Currency Rates trade union confederation, the Workers' Central of Mexico, dutifully announced the removal from office of the leaders The dollar in deutschemarks in question. So far, theleaders are risking arrest by refusing New York late afternoonfixing to step down.

Salinas also mocked all efforts to salvage the ruling Insti­ 1.90 tutional Revolutionary Party (PRI) as anything but an armof government entrusted with enforcing austerity. At the PRI's 1.80 national convention Sept. 3-5, numerousspeakers attempted , to argue for separating the party from the government, and 1.70 for creating democraticprocedures whereby the masses could have a say in the running of the party. 1.60 -- "- - But Salinas said "no." - � -� ..,r- � 1.50 Speaking at the closing session Sept. 5, Salinas attacked 8/1 8/8 8/15 8/22 8/29 9/5 9112 9/19 all who would criticize the PRI. "All opinions are welcome," he stated, "save those that while talking of democratization, The dollar in yen in reality encourage theparty's division ....We ...firmly New York late afternoon fixing refuse to debate those of the opposition who denigrate the party within the country and have no politicalmodesty when 160 it comes to criticizing the PRI and the government abroad 150 - . . . without recognizing the damage that this attitude can I'" ...... cause the party," he said. 140 """"- As Salinas probably anticipated, the leader of the internal i"o I-' opposition, the "Critical Current," Rodolfo Gonzalez Guev­ 130 ara, felt forced to announce his resignation at the conclusion of the convention, after 44 years in the party, saying it could 120 no longer be reformed from within. 8/1 8/8 8/15 8/22 8/29 9/5 9/12 9/19 The British pound in dollars Mexico's extreme misery New York late afternoonfixing The reason for Salinas's hard line is not hard to find. A ... . two-partfeature in Unomasunonewspaper on Sept. 5 and 6, 1.90 � "T "- i-. based on a new report on the internal condition of Mexico, - � ...... , '-� revealed that more that 20 million Mexicans live in "extreme 1.80 misery," "housed in hovels of cardboard, mud, straw, clay or palm," while more than 40 million people, half the entire 1.70 population,"struggle at the limits of poverty." The minimum 1.60 wage today is well under half the real value, measured in buying power, that it had in 1980, and is only 56.6% of its 1.50 value in 1970. Some 40% of the population is underem­ 8/1 8/8 8/15 8/22 8/29 9/5 9112 9/19 ployed, and another 12% are unemployed, leaving less than half the population working full-time jobs. The study docu­ The dollar in Swiss francs New York late afternoon fixing mented that 40% of the population suffers nutritional defi­ ciencies, and that the country is completely incapable of I 1.60 feeding its own population.

Food production has plummeted. In 1981, the country 1.50 produced 14.5 million tons of com, but only 10.6 million tons in 1988, while the population grew over 15%. Output 1.40 of beans, another staple, has also fallen, while production of - :- rice, at 533,000tons in 1985, was only 300,000tons in 1988. 1.30 "'- - ...... " -...... - r- The wheat harvest, on which the population depends, fell � from 5.2 million tons in 1985 to 3.6 million tons in 1988. 1.20 And milk output is down from 7 million tons in 1982 to 5.2 8/1 8/8 8/15 8/22 8/29 9/5 9/12 9/19 million in 1988.

18 Economics �IR September 28, 1990 Povertyand neo-capitalism in the 1990s Prof essor Darto Composta, a Catholic theologian, exposesthe one-worldist view behind the environmentalist movement. PartH qfH.

Dario Composta, a theologian at the Urbaniana University ies of Himalaya or the so-called Hindu ashrams. In California in Rome, delivered the lecture excerptedhere at the Cultural during the 1960s, the "hippies" emerged, and from Britain Center of Viterbo, Italy, on March 10, 1990. In Part I, arrived the Beatles from whom sprouted the Rolling Stones, Professor Composta traced the development of capitalism etc . , with their new frenetic and irrational rhythms. Huxley's from the Italian Renaissance and its perversion by Calvin­ view was that the irrational is thehuman ideal. This was the ism, touching upon Pope John PaulII' s EncyclicalSollicitu­ American counterculture of dirty , fleabitten "beatniks," of do rei socialis of Dec. 30, 1987, and his attack on the "struc­ the various satanicgrou ps , including those who, when caught tures of sin." While aimed primarily at a Catholic audience, by the police in Guyana, committed suicide-all 900 of we believe his synthesis will be of general interest to EIR them ! readers. It has been translatedfrom the Italian original and This attack on Christianity is only one cultural fringe. abridged. Another fringe is the population lobby led by the Club of Rome , presided over for many years by Prof. Aurelio Peccei 5) Origins and development of one-worldism withfinancing from Volkswagen and other malthusians. Pec­ According to the EIR Special Report published [in Ital­ cei, in his 1974 autobiography, states among other things ian] as a supplement to Nuova Solidarietaon Nov . 26, 1988, that it is time to introduce into the citadel-Le., into Chris­ there is now an ongoing ecologist plot promoted by a malthu­ tianity-the Trojan Horse which consists of creating fear sian oligarchy and the Soviet KGB against the Christian over increases in population. In those same years , the multi­ West. We note the technical expression: Behind "the ecolo­ nationals artificially sparked the oil crisis so as to convince gist movement is hidden a malthusian plot"; and that is to people thatto survive, the population must be reduced. One say , behind the smokescreen of concernfor the environment episode: In those years there appeared in Il Giornale a sig­ lies hidden the project of destroying Christianity through nificant article entitled "How to remain few and live happi­ birth control and other criminal expedients such as pornogra­ ly ," which stated that ''the optimum is for Italy to be reduced phy, drugs, satanism, invasion of cults, and corruption of by 20 million inhabitants." Then there was a pamphlet print­ youth by the spread of rock. At the apex of the pyramid stand ed in California but destined for India entitled "Famine ! Can Prince Bernhard of Holland and the English royal family. we survive?" (1969). It talks about the population bomb The origins of the plot go back to Aldous Huxley, one of and prophesies universal famine . A third component was the the strategists and founders of the ecologist movement and "Greens," tied both to Moscow and to U. S. potentates. Battle of the malthusian forces, who with Bertrand Russell and was joined against food production, demands went up for others , amid a group of homosexuals and satanists , in 1937 closing down atomic power plants, farm production was re­ founded in Oxford the "Peace Pledge Union." duced, etc . The capital of the Greens seems to be London, Huxley suddenly moved to California, taking with him but with branches in the U.S.A., U.S.S.R. , and Europe . In the cult of the Greek god Dionysius, and soon discovered Italy, we reached the suicide of building mammoth atomic LSD. From there he made contact with Thomas Mann, the plants, only to then change their purpose, with probably German novelist, to spread this terrible drug . After the war, much worse pollution. Thus many workers were thrown out he joined up with the satanist Aleister Crowley and founded of work, and Italy now depends 80% on foreign energy groups of druggies (Remember the "psychedelic" culture of sources, spending 13 trillion liras for it, while the energy California?) dedicated to the cult of Isis, the Egyptian god­ demand increases 4% a year. So, somebody wants poverty dess who offers pseudo-mystical experiences. They trans­ and unemployment. Likewise theanti-pesticide struggle, and lated the Tibetan Book of the Dead to involve unwary youth the loud calls for closing certain factories, emerged only in in esoteric journeysof perversioninto the Buddhist monaster- this decade thanks to hidden persuaders who want to reduce

EIR September 28, 1990 Economics 19 us to poverty, to create fear of the future , and to induce Blondet. The big names tied to each of the abovementioned people to not have children. To destroy Christianity consists four groups were listed: soft drug financing by persons en­ also of exhausting the sources of life and pushing people rolled in the P-2 [illegal Freemasoniclodge] such as Roberto toward abortion. Memmo and De Cataldo, and Il Manifesto. Then: struggle The orders for dismantling came from the National Envi­ for "saving the Labrador seals," and collaboration in the ronmentand Policy Act (NEPA), inspired by the malthusian campaign against nuclear energy by four organizations: Paul Ehrlich. That was in 1970. I do not intend to deny the Greens, ecologists, pacifists, and Radicals, with the contri­ ecological problem; the Holy Father spoke authoritatively of bution of Italian Esso, one of the "seven sisters" Rockefeller it at the end of December last year. Rather, a different issue oil companies. In order to block nuclear power, they go is at stake here. The malthusian and pagan conspiracy, im­ around spreading lying propaganda-as if methane, oil, and pregnatedwith gnosticism, went so far as to celebrate ecolo­ naphtha were "healthy" substances .... gist bachanals by instituting Sun Day. In the U.S.A., on May As you see, the politicalreviews and the Catholic news­ 1, this holiday was celebrated under governmentsponsorship paper agree in their diagnosis df the present situation; what with anti-nuclear objectives. . . . Then-President Jimmy is striking in this concordance is the affirmation of a dark, Carter, himself tied to the cults, gave a strong push to the worldwide movement of encirclement of Christianity, and movement. especially of the Catholic Church, by diverse forces which Now there exists a "Green International" withits malthu­ we call neo-capitalism, for what seem to me to be obvious sian "priests." At this point, too, the U.S.S.R. comes into reasons. All these forces are attempts at a project of one­ play, by encouraging pacifismand thus weakening anti-Sovi­ worldistdomination to bring about a single monstrously mur­ et resistance in the name of the futility of nuclear deterrence derous power. Dear listeners: The issue is no longer poverty and the dangers of progress. In Canada in 1970, Greenpeace nor misery-but life or death. was born, with the aim of blocking all underground nuclear Is it not perhaps truethat when this power started moving experiments. When the Rainbow Warrior trawler, which be­ on all fronts, that the aim was to attain the desecration of longed to that pacifist movement, was blown up in 1985 in a human life with abortion and euthanasia? Neo-capitalism New Zealandport while it was getting ready to disrupt French differs fromthe classic capitalism, in that if capitalism creat­ atomic tests in the Pacific, one perceived the pawprints of ed misery in the poor classes, neo-capitalism promotes death. Soviet espionage. And it was Andropov who (apparently) Allow me simply to reportthat AIDS in Uganda has infected ordered the failed assassination against the Pontiff. 20% of the population according to reliable information. Yet Meanwhile in Vama, on the Black Sea, Westerners and it has been revealed that neo-capitalism will not lift a finger Soviets, with Warsaw Pact representatives, were meeting to to stop this scourge. Cynically. the death of the poorest of promote closer collaboration among the Western European the poor is desired. (Awenire, Oct. 5, 1988: "It costs too Greens, led by Denis de Rougemont, a Swiss, one of the much, let them die!") Here, death begins with the moral most prominent one-worldists. This led to Ecoropa in 1977, breakdown of the youth who, after the corruption of his with a manifesto apparently drawn up on behalf of saving the adolescence, reaches marriage age (as I read a few weeks environment, but inspired by malthusian ideas. ago in Corriere della Sera) impotent, or 20-30% incapable. Besides these three fringes, the cultural, population-con­ We do not speak of the massacre of women through the trol, and environmentalist, we should (and this is the most continuous use of contraceptives: A conspiracy of silence important) indicate, however briefly, the one-worldist fi­ surroundsthe grave consequences on thebody: tumors, vagi­ nancial groups, such as Bilderberg Group, the Trilateral nal herpes, nephropathies, carditwascular problems. The ma­ Commission, and the drug traffickers headed up by the Rus­ jor pharmaceutical companies, such as Sandoz-Nestle of sian-American Jewish businessman Bronfman and others. In Switzerland, are they not hitched to the neo-malthusian cart? Italy these groups are led by Enrico Cuccia of Mediobanca, I end this rathergloomy summary, warningmy listeners Bruno Visentini of the Cini Foundation in Venice, Eugenio that at the peak of this perverse movement is the project of Scalfari , [publishing magnate Count] Carlo Caracciolo, the bringing about the Age of Aquarius to replace that of Pisces, Agnelli family [of Fiat] , and the Odescalchi princes linked i.e., they want to destroy every vestige of Christian civiliza­ to the English royal family, which presides over the World tion (identified with the sign or constellation of "Pisces") in Wide Fund for Nature (WWF). We add the Radicals who order to create a new man. This is the Aquarian Conspiracy, spread druguse , and ally with the Greens and the Reds when according to the programmatic 1974 volume, Changing the there are anti-Christian causes to be promoted.. .. Image of Man (Stanford Researth Institute, directed by Wil­ Now everyone knows that world finance is headed by lis Harman, MargaretMead , B;F. Skinner, Erwin Laszlo of Wall Street where the International Monetary Fund acts as the U.N., and Sir Geoffrey Vickers of British intelligence.) the loan shark to starve Catholic Latin America. Now we understand the starklanguage of the Encyclical On Nov. 24, 1988 Awenire, the well known Catholic Sollicitudo rei socialis: Today's world is involved in "per­ daily in Italy, started a series of articles bylined Maurizio verse structures," with "organizations of sin," with Satan's

20 Economics EIR September 28, 1990 allies. This is thetrue face of the neo-capitalism which is reab­ attributed to the great discoverers, but to Enlightenment ide­ sorbing even communism and entwining it in its coils .... ologists, trained in agnostic and anti-Christian schools. Why be scandalized then if Pius IX in his famous Syllable rejected 6) Conclusion the liberal statement: "The Roman Pontiff can and must rec­ This overview allows us to reach certain conclusions: oncile himself and ally himself with progress, with liberalism The first is that science and technology are not responsible and with recent civilization"? The great Pontiff did not con­ for human misery nor even for the grave present situation of demn science, but liberal progress, the exploitation of the the rapid spread of AIDS. The first industrial revolution of poor, and perverse anti-human ideologies. Today the most steam was preceded by great public works in France such as honest scientists have become convinced that science, when the Languedoc Canal at the end of the 1600sand, in England, it is corrupt or sells itself to perverse policies, prostitutes the internal navigation canal in 1780 between Manchester itself for the manipulation of nature and man. Pius IX was a and Liverpool. It was in Manchester where the canal built by prophet! the Duke of Bridgewater and his engineer Gilbert promoted A second observation arises from the foregoing diagno­ a system of rapid extraction of coal. An employee of the sis: The fall of Marxism as an ideology (I do not say commu­ canal, the Scottish worker Watt, in 1769 discovered the nism, because as a military power it has remained practically steam engine; but only in 1780 was it used for the textile at the same competitive levels of a few yearsback) has pro­ ' factories. Manchester in 1790 had become a very rich city; voked ideological revisionism; the bible of the Marxists is only five years later "Manchesterism" became synonymous no longer the gospels of Marx and Engels, but the sacred with exploitation. In those years Lavoisier, following sug­ cows of the French Encyclopedia: Diderot, D' Alembert,Hel­ gestions fromthe Protestant pastor Priestley, experimentally vetius, D'Holdach, Voltaire, and the divine Marquis de demonstratedthat water was composed of hydrogen and oxy­ Sade. In other words, the Marxist economic failure has not gen. That began the manufacture of gunpowder. Shortly yet provoked the conversion of the leaders, but their return thereafter, steam energy would be applied to ships and to to communism's origins; or rather to the utopias of French locomotives: railroads are born. Behind science stood the romantic socialism: Saint-Simon, Fourier, Proudhon, and ideologies to turn these tools into tools of oppression. Yet the atheistic rationalism of the cited Enlightenment thinkers. Adam Smith's statement that science arose by accident and ·The days of the little red books of Mao, or the minute that (as later Karl Marx stubbornly insisted) the industrial exegeses of the sacred texts of Marx(young or mature, it does revolution was due to the exploitation of the working class, not matter) are by now a memory. But Marxistperversion has was not true. It was rather the ideologies and the Enlighten­ not touched just the belly, but the heart of the communist ment that perverted science and technology. The physiocratic leaders. Left without food, they beg from the West, but, it theory that became pervasive in France (but also elsewhere) seems, their thoughts have remainedmateri alistic and atheis­ ' thanks to Turgot and Condorcet around 1750, which asserted tic. So, yes, democracy, but no religion. Religious freedom that agriculture alone was the source of wealth, was of En­ yes, but no change in the anti-Christian ideological system. lightenment origin. The laws passed in France in those years The philosopher Augusto Del Noce, one of the greatest in the name of intensive cultivation, abolished common pas­ thinkers of Italy in this century, 25 years ago foresaw that turelands, i.e., the right of shepherds to lead their flocksonto the Marxist revolutionary impetus would be weakened by cultivated lands. The landowners spent huge sums to fence prosperity and would be softened into that form of general their lands and the shepherds were thrown out on the street, decadence which is nihilism. Therefore, no more noisy pa­ and with them the cheesemakers and butchers. Decades later rades and barricades, but closing in on itself in the "reflux" the French Revolution broke out, which kept the status quo: of privacy and hence hedonistic enjoyment of life in the increasing, in fact, the rural poor so as to make them into radical, secular sense. The bible of the Marxist and radical enraged Jacobins. bourgeoisie in Italy is the newspaper La Repubblica, where Of the Enlightenment too was Adam Smith's theory, sarcastic cartoons attack the Pope and Stalin, [Communist based on individualistic and amoral optimism, by which the leader Achille] Occhetto, and [Vicar of Rome] Cardinal Po­ market is regulated not by morality, but by the laws of "Dar­ letti: This is the most expressive form of nihilism, the last ling Nature." It was heavily pushed by the Oxford historian suicidal beachhead of Marxist materialism and anticlerical ArnoldToynbee, a close follower of Voltaire; he, like all the liberalism. chieftains of liberalism, saluted the industrial revolution and Dear friends, in the face of these assertions which are the French Revolution as a liberation from"medieval morali­ part of our deepest thoughts, the believer poses a question to ty which regulated production and distribution of wealth." himself: Where are we going? . . The years ahead will be In his judgment, economic science and socialism would be decisive ....We are the bearers of hope: The world looks the two great systems of thought of the new epoch. to Rome, to the Pope. And to whoever jeers, we have an Also based on the Enlightenment was the thinking of Karl infallible response: "Non praevalebunt." They shall not pre­ Marx . . . . Thus the misery of the last century cannot be vail! The faith is our strength !

EIR September 28, 1990 Economics 21 Banking by John Hoefle

'Take or be taken' Normanfloated the line that merg­ Plans to save the banking system via "megamergers" and ers between giant banks in the same market, such as Chase Manhattan and consolidation will destroy the banks, and the nation. ManufacturersHanover in New York, would allow the resulting megabank As the U. S. banking crisis deepens, vices. Glass-Steagall must go. to dramatically reduce overhead, and federal regulators are embarking on Eliminate the Bank Holding Company thusexpenses . a desperate plan to save the nation's Act's regulation of capital require­ However, given the financial con­ biggest banks by allowing consolida­ ments. The separation of finance and dition of thebig money-center banks, tion and cartelization. commerce must go .... Eliminate loaded down as they are with Third In testimony before the Senate geographic restrictions so that our in­ World debt, leveraged buyouts, and Banking Committee on July 31, Fed­ stitutions can compete as truly U.S. real estate loans, it would be difficult eral Deposit Insurance Corp. chair­ institutions. " for one of them to raise enough money man L. William Seidman laid out The Bank Holding Company Act, to buy another. "threeob jectives in reforming the sys­ he said, "generally increasesregulato­ For those tempted to believe that tem: First, to reduce the potential lia­ ry costs, reduces available capital and two bankrupt banks can save each oth­ bility to the government. . . . Second, creates the most awkward and expen­ er by merging, recall the 1987 merger to maintain the stability of the finan­ sive structure that exists anywhere in of RepublicBank Corp. and InterFirst cial system. . . . Third, to increase the the world." Corp. , two of the largest Texas banks. market orientation of the system, so Seidman's call, although remark­ At the time of the merger, both legions we have a system that is competitive ably blunt by the standards of Wash­ of experts proclaimed the merger the and consumer-oriented. The forego­ ington "insider" jargon, nevertheless salvation of Texas banking. The re­ ing is all we need to do to vastly im­ failed to make clear exactly what he sulting bank, First RepublicBank prove the performance of the financial planned to do. The bureaucrats gener­ Corp., collapsed spectacularly in one system of the United States, and it's ally prefer to let others launch their of the biggest bank failures in U.S. all we need to do to improve the ability trial balloons. history-at a cost of billions to tax­ of our financialinstitutions to compete Such a trial balloon was launched payers. successfully in the world economy." by the Establishment mouthpiece That's where Seidman's ending To achieve the first objective, re­ Forbes magazine on Sept. 17, in an "the separation between finance and ducing the government's insurance li­ article entitled "Megamergers: a solu­ commerce" comes in. By eliminating ability, Seidman proposed reducing tion to the banking crisis?" the Bank Holding Company Act's the amount of deposit insurance pro­ "Get ready for a big new wave of prohibition ofbank ownership by non­ vided per customer and limiting the bank consolidations-and we mean bank companies, the government kinds of investments that can be made big," Forbes warned. "Outfits like would free the way for a whole new with insured deposits. "Most impor­ Chase Manhattan and Manufacturers range of buyers. In Norman's words, tant," he said, "is to evolve a structure Hanover will take or be taken." "That would let big industrial compa­ that separates insured deposits from There are "far too many banks nies with large credit operations­ risky ventures by using separate legal with far too much overhead making such as Ford, General Motors and entities." far too little profit and showing little General Electric-tostep in as consol­ To achieve the second objective, or no growth," wrote author James R. idators. Not to mention raiders and re­ stability, Seidman recommended that Norman. "The main remedy must be structuring artists." the "tools" be put in place to allow the consolidation. " There you have it: thefuture of government to "always be able to act Norman complained that the U.S. American banking, with banks, cor­ to meet problems in the financial banking system is "fragmented"­ porations and corporate raiders gob­ system." with the top 50 banks only controlling bling up the banking system in a fren­ To secure the third objective, a about 65% of the assets-and raises zy of takeovers, all in the name of competitive banking system, Seidman the specter of U . S. multinationals be­ "stability. " proposed a sweeping revision of U. S. ing pushed "into the arms of foreign And all backed by a blank check banking laws: "Eliminate unneces­ banks" because U.S. banks cannot from the Federal Reserve, courtesy of sary restrictions on products and ser- meet their needs. the U.S. taxpayer.

22 Economics EIR September 28, 1990 Report from Rio by Silvia Palacios

Technology noose tightens intended for purchase by the aircraft In rewardfor its break with Iraq, Brazil is seeing the Anglo­ construction company Embraer to conduct crucial aerodynamic calcula­ Americans train their guns at its high-tech trade . tions. The sale had already been au­ thorized by V. S. Special TradeRepre­ sentative Ambassador CarlaHil ls, but on Sept. 14, it was revealed by the T he daily Jornaldo Brasil reported from the V.S. press-were "because press that the final decision was up Sept. 14 that the Bush administration I am inconveniencing people,because to Bush's National Security Adviser, is demanding from Brazil the head of I occupy a space which until a short Gen. Brent Scowcroft. Air Force Brigadier Hugo Piva (ret.), time ago was the privilege of the su­ This decision is coherent with the as punishment for his leading a group perpowers. And they are interested in Aug. 29 statement made by the former of Brazilian technical experts who are destroyingme for that. " V.S. representative to the Coordinat­ collaborating with Iraq in aerospace He also defended the legitimate ing Committee on MultilateralExport projects through a private firm. When motives behind Brazil's originalclose Controls (Cocom), Richard Perle, the Middle East crisis erupted, Jornal relations with Iraq: "Iraq helped us who told the LondonFinancial Times do Brasil reported, the governmentof substantially during the first oilcr isis, thatCocom would be reimposingcon­ President Fernando Collor de Mello when there was no oil available any­ trols over previously unrestricted concretized its abrupt rupture with where in the world and Brazil had no sales to Third World countries. The Iraq by making "a secret promise to money to buy it." aerospace programs of India, Brazil, the V.S. government that Piva's ac­ All indications are that the punish­ Iraq, Argentina, and Egypt have been tions would be investigated." ment demanded by Washington goes continually victimized by discrimina­ Collor further guaranteed that far beyond Brigadier Piva, and is tory decisions by Cocom, and nothing "vigilance over the aeronautic-tech­ modeled on what former Secretary of has changed. nological complex" at Sao Jose dos State Henry Kissinger has beenaccus­ What has the military and scien­ Campos would be increased. tomed to imposing upon Third World tific-technicalelite of Brazil most con­ The same newspaper reported that nations and leading figures who as­ cerned aboutthe country's sovereign the Brazilian Senate was proposing to pired to provide their nation with ad­ right to technological development, is "fully investigate" trade and, above vanced technological development as that President Fernando Collor him­ all, technological relations that Brazil essential to defeat poverty. self, and especially Science and Tech­ has maintained with Iraq for more Kissinger was famous for express­ nology SecretaryJose Goldemberg­ than a decade. ing his attitude by saying, "Nothing a fanatical devotee of Thomas Mal­ "It will be a veritable inquisition," important for universal history could thus-have insisted, at least publicly, Jornal do Brasil commented on the come fromthe South." on the need to end such high-technolo­ dozens of inquests which the investi­ The currentoff ensive against Bra­ gy projects as the nuclear program. gation, proposed by Sen. Jutahy Ma­ zilian-Irilqi relations represents a wa­ Collor told the foreign press on Sept. 5 galhae, will entail. tershed in the superpowers'longstand­ that, to his way of thinking, "Nuclear Brazil's dramatic abandonment of ing effortsto prevent Brazilian access energy is a permanent threat to the its longstanding close ties to Iraq was to advanced technology. Instead of be­ citizen." hardly a wholehearted contribution to ing rewarded for its break with Iraq, This new Brazilian positionis be­ the Anglo-American war effort. Rath­ the Vnited States has been tightening ing received with euphoria by circles er, it was the direct result of overt V . S . the technology noose around Brazil. around theState Department in Wash­ blackmail. Exemplary are the nearly This is the most important strategic ington, becauseit is seen as a "demon­ daily attacks against Piva, attacks consequence of the escalation of stration that President Collor is pre­ which have grown to the point of ac­ North-South conflicts which began paredto break with past policies, and cusing him of endangering "Brazil's with the currentMiddle East crisis. indicates that Brazil is prepared ... prestige. " For example, the administration to adhere to precepts of international In exclusive statements to 0 Esta­ of George Bush has indefinitely "post­ controlover advanced technology that do de Sao Paulo on Sept. 7, Brigadier poned" the sale to Brazil of an IBM it had always rejected," according to Piva said that the attacks-above all 3090-300 supercomputer, which was Jornal do Brasil.

EIR September 28, 1990 International 23 Business Briefs

Science for oil increases that amount to more than $14 High-Tech [rains," which attacked magneti­ billion. cally levitated trainsand the FrenchTGVhigh­ Biology teaching For these countries to achieve a growth speedtrain . level of 5% per year, they would require $36 'snuffing' interest billion in aid annually, or three times the amount they received last year. The 13-member Committee on High School The conference report noted that only a East Bloc Biology Education has stated that "nothing few European nations have maintained their short of a massive attack" on the problems of 1981 pledge to make 0.15% of their GNP in Soviet monthly praises teaching biology and science could change the aid to the ThirdWorld, while most, including serious deficiencies in U. S. education, in a re­ the U.S. and Japan, have lagged behind. In­ Count Witte's economics port released Sept. 7 by the National Research stead, aid has totaled only 0.09%of GNP,re­ Council of the National Academy of Sciences. sulting in some $40billion shortfall from the A call for the revival of the economic and for­ Thecommittee believesthat biology is simply targeted levels over the decade . eign policies of Count Sergei Witte, turn-of­ beingmistaught in America's public schools. "We thought things would get a lot better the-centuryprime ministerunder CzarNicho­ The three-yearstudy found that biology is after 1981 and they got worse," said Yves Ber­ las II, has appeared in the July 1990issue of the only science most high school students thelot, UNCfAD deputy secretary general . the Soviet Foreign Ministry's monthly,Inter­ take . It is also the first science course in the "It's simply not acceptable that one-tenth of national Affairs. The call proposed that Wit­ high school curriculum, and therefore should the world's populationcontinue to bemargin­ te'sdevelopment policy be revived, anchored functionas the gateway to chemistryand phys­ alized." in Russia's "good and reliable partner," ics. But its teaching seems to be designed to Gennany . "snuff out interest" in science. Only 30% of The call tookthe fonn of a letter, "Foreign high school students goon to study chemistry, Policy to Meet National Priorities," writtenby and only 15% go on to study physics. Europ e Yuri Ilyin, .deputy director of International Thepanel , made up primarily of science Politics at the Higher Party Schoolin Moscow. educators , stated that preparation of teachers German industry calls Ilyin states, ''The old European orderhas is inadequate, and that the curriculum foc uses now crumbled. . . . Letus not foolourselves: too muchon terminology and too little on con­ for railroad building The postwarsettlement has gone neverto re­ cepts . turn. One can and, perhaps must speak of it, Among the panel's recommendations are The Congress of GennanIndustry (DIHT) has but that will, afterall, be like tryingto hold on that more science be taught in elementary called for prioritypro jects in railroad-building, to the Holy Allianceand the Versailles system school , that more science specialistsbe hired, in a memorandum to the MinistryofTranspor­ in their days .... So, we have to base our and that each prospective teacher of high tation in Bonn in mid-September. approach to the 'Gennan issue' on our own school science be required to do an original "For decades, railroads have been the long-tenn interest. " researchpro ject in college under the direction weakest element in the composition of trans­ IlyinasS¢rted that when Russia stoppedlis­ of a scientist. portsector enterprises. In orderto change this tening to Witte, who was overthrown in the situation, investments in a national and Euro­ revolutionof 1905, the resultwas World War pean-wide system of high-speed railroads I and Russia's ruination: "Russia's confronta­ must be given priority," a relevant passage tion with Getmany in World WarI stood out Development read. as amazingly senseless. For it interrupted a After study of proposals by jailed Ameri­ continuous 3O-yearcycleof theworld 's fastest U.N. reports bleak can economist Lyndon LaRouche, many Ger­ economic growth! Now, what course would man industry and government leaders have world history have taken ifthe rulers of Russia Third World picture been discussing the economic potential of a had followeP the worldly-wise statesman, "Productive Triangle"centered on high-speed Count S.Y. Witte, who insisted back at the The U.N. Conferenceon Trade and Develop­ rail networks linking Paris, Berlin, and Vien­ turnof thecentury on 20-25 years of full calm ment,concluding its conferencein Paris, proj­ na-Prague, as a basis for rebuilding Eastern in Russia's f()reign affairs?" ects economic deterioration forthe world's 41 Europe and providing tangible economic aid Ilyinals('j praised Witte for not wanting to poorest nations, a situation made markedly to theSoviet Union. The DlHTproposalseems "pull Britain's chestnuts out of the fire" in its worse by recentoil priceincrease s. UNCf AD to reflect that discussion. confrontatio� with Gennany. "For Russia to calculates that these poorestnat ions, with $70 In tandem with British intelligence insti­ have kept out of the Entente could have meant billion in debt, would requireadditional aid of gated attacks on raildevelopment , the Sept. 11 radically chapging the course of world devel­ $1 1 billion by 1995 to get them started onthe Journalof Commerce carried a guest editorial opments in the 20th century. We have now path to recovery , but that a $25 perbarr el price by Jack Duchemin entitled "Forget About once more reached a similar threshold in our

24 Economics EIR September 28, 1990 Bril1ly

• ONLY ONE COMPANY that is still fullyAmerican-owned produces relationswith Gennany, and God save us from nuclear energy, and cited the deleterious ef­ high-powered industrial lasers for startingto pull thechestnuts out of the fire for fects of the anti-nuclear referendum voted up materials processing, according to a somebody else! So, it is high time we started in Italy in 1987. laser industry analyst at the ArthurD. turning back to the traditional foreign policy He wamed, "One must be careful about Little Company. These lasers range values ofRussia. . . . A united Gennanymust foreign infiltration," citing the Six Sisters oil in power from 5-25 kilowatts and are live in peacewith Russia andmust beher good cartel. used as machine tools for cutting, and reliable partner. . . . We should, ifbelat­ "In the best scenario, we are boundthe to drilling, and other operations. edly, follow the abovementioned recommen­ aspirationsof the Arab world to consider oil as dations of Count Sergei Witte." a common good. But thereis also theprospect • THE MAGELLAN spacecraft, of a class war in those areas, and then we during a test of its radar on Aug. 16, should really fearfor our supplies. " produced three images of craters on Thepresidentofpublic industri es, IRI,de­ Venus similar to those on Earth, and Insurance clared, "Itwas a mistake to stop the construc­ also earthquake faults. The poor tion of the Montalto di Castro nuclearenergy quality of resolution on previousmis­ Industry asks for station. Now we are at the mercy of the oil­ sions to Venus had leftopen the ques­ exporting countries." tion of whether or not there is geolog­ federal regulation IndustryMinisterBattaglia said thatItaly's ical and tectonic activity on Earth's energy bill thisyear will be5 trillionliras high­ sister planet. "Itmight benecessary to have federalregulato­ er than last year. ry assistance," the president of the American • THE WORLD BANK has re­ Insurance Association, Robert Vagley, told ported record looting of developing the House Energyand Commerce Committee countries in 1989. The new annual Sept. 14. Theassociation represents 239 of the report says there was a "record net nation's largestproperty and casualty insurers . outflow of resources" from develop­ The statement, which represents a major Labor ing countries to industrialized coun­ shift for an industry long opposed to federal tries of $42.9 billion in 1989, sur­ regulation,reflects the industry 's fearthatstate passing the record $37.6 billion of insurance regulators are unprepared to deal Depression conditions 1988, the Financial Times reported. withthe widespread financial problems aff ect­ put unions on the ropes The report says that the main reason ing insurers. for the net outflow was a collapse in However, the American Council of Life new loans (minus capital repaid) to Insurance,which representsthe most powerful American industry is contracting rapidly, and only $16.6 billion from $22.8 life insurancecompanie s, still opposesfederal according to Morgan Stanley analyst Scott billion. regulation, accordingto the Washington Post. Merlis, asquoted in the Wall Street Journal, "They'rebuying the right to downsize" from • THE TWO LARGEST industri­ their labor unions. al groups in the world, Mitsubishi The United Auto Workers and General and Daimler-Benz, are meeting in Energy Motors have come to terms under which GM Tokyo to map out broad global coop­ will spend some $4billion on job and income eration. According to Mitsubishi Andreotti calls for protection programs, but is apparentlynot re­ spokesman Taniguchi, "Between quiredto findwork for anyof the 30,000union 100 and 150 joint ventures" are nuclear revival membersthe company has laid offduring the planned worldwide. Daimler chair­ past three years. man Edzard Reuter has led a 70-man Italian Prime Minister Giulio Andreotti has Meanwhile, 5,000 schoolteachers have corporate delegation to discuss spe­ called for a revival of nuclear energy in his gone on strike in New Orleans over $400,000 cificsof the cooperation. nation,andchargedthat"Americanoilcompa­ worthof healthbenefits-the firstwalkout in nies" are a maj or culprit in the international New Orleansschools since19 78. It is expected • SOUTH KOREA and the Soviet sabotageof the nuclear industry. "It seemsthat to be along strike since the teachers areasking Union signed a trade agreement in the oil companies are not extraneous to the $1 million in new benefits and pay raises, but Moscow Sept. 15 granting most fa­ American anti-nuclear campaign," said An­ the school board offered only $600,000. vored nation status treatment to one dreotti at a conference held in Perugiaon Ita­ Workers at theNew York Post have also another, a spokesman for South Ko­ ly's en!!rgy situation in the wakeof the Persian agreedto $20 million in wage and salary cuts rea's Trade and Industry Ministry Gulf crisis. to keep that newspaper in business, the New told UPI. Andreottiasserted that Italy must returnto York Times reports .

EIR September 28, 1990 Economics 25 TIillFeature

Creatingn�tw a ork of rivers and lakes in thede sert

by Jonathan Tennenbaum

Without water there is no life. He who can bring fresq water to the deserts, wields a power greater than any forceof arms, a life-giving power which alone can bring stable peace to the tortured Middle East. Contraryto the conceptions of British "economics;" freshwater is not a limited resource. Based on the expansion of human productiive powers, through science and technology, we can generate as much fresh wat�r as human needs will ever require-anywhere on this planet, at any level of population, and at any time in the future . The same is trueof every other commodity needed to sustain and enrich human life. The doctrine of "limited resources" is a lie, propagatedby imperialists who seek to control nations and populations by imposing artificial scarcity. We call for combining a series of already proposedwater-management projects withthe large-scale use of nuclear power to desalinate. water, to establish a system of reservoirs and man-made fresh water canals and rivers throughout the Middle East-North Africaregion . By this means, we can meet all foreseeable water needs and provide the foundation for development and peace into the next century. Consider what we can do withnuclear energy . Take an extreme case: an agro­ industrial colony in the middle of a desert, in a location not easily reachable from fresh water-management projects now on the drawing boards. We take half a dozen high temperature reactor (HTR) modules of a type which today can be produced on an assembly line. We put these modules into a power plant producing 1-2 gigawatts of electric generating power and an additional 1-2 gigawatts of usable heat output. We apply a portion of that eleqtric and thermal output to desalinate sea water, using a combination of existing processes, to the rate of 70- 100 cubic meters per second. This provides ample fresh water for the domestic, irrigation, and industrial needs of a self-sustaining .gro-industrial colony of 1 million people. The rest of the HTR power we use fqr pumping between the sea and the location of our colony (at an elevation of, let ps say, 400 meters). A few more nuclear units cover the electricity and proces�-heat requirements of the colony itself. Two dozen such HTR-desalination centers prodkIce a flow of fresh water

26 Feature JIR September 28, 1990 Contrary to the beliefs of the imperialists and ecologists, we can generate as much water as human beings require, anywhere on Earth . India, with over 50,000 dams, has great experience in greening the desert, and its engineering expertise is a potential treasure fo r water management in the Mideast. Shown here: Earth-moving equipment at work on the construction of the Panchet Hill Dam in 8 India , a giant project of � the 1950s that developed � the Damodar River :5 system. equivalent to that of the Nile and Euphrates combined-a Africa could be realized within a few years, with dramatic man-made river system. improvements by the year 2000. In practice, the actual size of desalination complexes can It is crucial that the water flows thus generated not be vary over a wide range, using recently perfected modular dispersed in an arbitrary manner, but be organized and con­ nuclear reactor designs. Complete desalination units, includ­ centrated in a network of man-made rivers and lakes. ing nuclear power sources, can be built in assembly-line Water from the Mediterranean, Red Sea, Persian Gulf, fashion on floatingplatforms for rapid transportand installa­ and Arabian Sea can be channeled via canals into a series of tion. The technology and most of the development work for artificial reservoirs. The variants of the Qattara Depression such mass-produced units are already complete. The HTR reservoir project in Egypt and the plan to refillthe Dead Sea modules possess stability and inherent safety characteristics from the Mediterranean, are illustrative of some ways in which make them ideally suited for large-scale use through­ which this can be accomplished. Where necessary, water out the region. must first be raised through pumping to points from which This application of nuclear power illustrates what can be the water can then flow to reservoirs via canals. The power done more generally, with the quality of productive power for this can be supplied by nuclear reactors. Where the cre­ which nuclear technology embodies. Apart from the unlimit­ ation of canals and reservoir basins requireslarge earth-mov­ ed potential of desalination, it is eminently possible to trans­ ing operations, nuclear excavation can be employed with fer huge quantities of fresh water from areas with a surplus advantage. Canals provide both the water flow to fill the of such water-above all the tropical rain regions of Central reservoirs, and also a transport means. Along the canals and Africa-into the Sahel, North Africa, and the Middle East. reservoirs we can construct complexes of nuclear power and Projects to accomplish this, through systems of canals, reser­ large desalination units, generating fresh water for a system voirs , and pumping stations, have long been on the drawing offresh-water canals. Large-scale use of desalination is com­ boards. Included are projects for channeling water from the plemented by channeling and pumping of fresh water from Congo River system (Ubangi) to expand Lake Chad, and for natural sources. generating a "second Nile" by further developing the source Instead of simply spreading thefresh water around evenly regions of the "White Nile." To this is added a smaller, but in an irrigation system, we can create with these rivers a significantand expandable fresh water potential which could network of interconnected "green bands" of development. be pumped from Turkey to its southern neighbors, as pro­ As opposed to mere isolated "green islands," these green posed by the Turkish government in its "Peace Pipeline" bands become at the same time transportation axes for the plan. Through these and related projects, significant im­ movement of goods and persons by ship, rail, and road, and provements in the water supply of the Middle East and North the locations for new towns, cities, and industrialcomplex es.

EIR September 28, 1990 Feature 27 In this way, the development of the Middle East will re­ tar. 2) Extension of high-speed freight and passenger rail create the history of Europe, which is inseparably linked to lines fromCentral Europe into a closed looparound the Medi­ the natural water infrastructure of the Rhine, Seine, Loire, terranean: over the Gibraltar bridge along the coast of North Rhone, Danube, Elbe, Oder, Vistula, Po, and other great Africa, over the Suez Canal to Israel-Jordan-Lebanon-Syria, rivers. and via Turkey back to Centr� Europe. 3) Upgrading of rail The locations and courses of the new rivers and "green connections through Turkey into Iraq, Iran,and beyond. 4) bands" must be determined by geographical, geological, and Infrastructure development of the Black Sea area, providing infrastructural considerations, bearing in mind the future for improved rail and sea l�s to the industrial centers of growth of population and transport as well as the regime Ukraine, via the "Danube arm" of the Productive Triangle, of water flows which will arise through increase in natural and through theCaucas us. 5) Improvement of maritimeand rainfall. pipeline connections between Sicily and North Africa (Tuni­ The reservoirs of (salt) water channeled inland from the sia), withthe option of a tunnel. seas will serve to supply the desalination plants and various industries along their shores; provide a means of transport, War against the desert together with the canals; and evaporation from these lakes The process outlined here can be usefully thoughtof as a enhances the water cycle of the atmosphere. The Qattara "war against thedesert ," with tIlegoal of eventually attaining Depression and Dead Sea projects would have these benefits, "final and complete victory." Europe's Productive Triangle in addition to their hydroelectric potential. is the decisive ally in this war. To cement this alliance, we The ability to provide flows of fresh water gives us also must clarify that the common interest lies in the securing of the power to modify the climate of the region. Evaporation long-term peace and the genetation of real wealth for the from lakes and reservoirs and transpiration from plants and present and future generations.' This requires a common un­ the other effects deriving from large-scale, irrigated, inten­ derstanding of what constitutes real wealth, as opposed to sive agriculture in desert areas, enhances the natural process­ fraudulent (British) notions. es for generation of rain. Provided that water management There is no wealth apart from the power to maintain and agriculture expand in parallel with the increase in rain­ human life. In the war against the desert, we must maintain fall, this process becomes self-accelerating. The throughput and extend human life in a hostile environment, just as man of water among the atmosphere, sea, land, and biomass one day in the future will conquer Marsand other planets. It is grows to the point that the deserts finally disappear, and a thepower to do that which constitutes, in firstapproximat ion, mild, "Mediterranean" climate is established. real wealth. Wealth resides in the power to advance the pro­ ductive powers oflabor, as measured by the relativepotential Link to the 'Productive Triangle' in Europe population density of a society: the maximum density of The most essential precondition for the proposals out­ population which could sustain itself, by the forms of eco­ lined here , is the speedyrealization of Lyndon LaRouche's nomic activity prevailing in thatsociety, per square kilometer infrastructure development program for the Paris-Berlin-Vi­ of any given quality of land. It is growth of productivepow­ enna "Productive Triangle." The fate of the Middle East is ers-to produce what human beingsrequire to live andwork inseparably linked to generating a new "economic miracle" productively-that constitutes real wealth, not "natural re­ in Central Europe via high-speedrail and magnetic levitation sources" in and of themselves. This is proven by the huge systems and a renaissance of nuclear energy. Given the col­ population density in Japan and Western Europe, which are lapse of the U.S. economy, it is continental Europe, together poor in natural resources compared to many other regions of with Japan, which must provide the decisive m.argin of tech­ the world, but have achieved high rates of progress. nology for developing the Mideast. This includes the mass Oil, for example, has no intrinsic value in and ofitself. production of nuclear modules and desalination units over It is useless without the technologies which extract, refine, the next 15-20 years. and consume that oil. Only through technology does oil be­ In this context, we must upgrade the transportinfrastruc­ come useful for the maintenance of human life. And the ture between NorthAfr ica, the Middle East, and the "Produc­ progress of technology will one day make oil obsolete. tive Triangle" in Europe. The LaRouche "Triangle" program Water would seem to be immediately valuable, for life is provides for a series of infrastructure corridors known as impossible without it. But, is it the immediate possession of "spiral arms," which link the core Paris-Berlin-Vienna region some quantity of water now which constitutes wealth, or the to the entirety of continental Europe and which include con­ power to generate sources of water in any quantity into the nections to the southerntip of Spain, a bridge to Sicily, high­ future?If we have water to drinktoday , but aregoing to thirst speed rail connections to Istanbul, and connections to the tomorrow, is that wealth? Black Sea. These infrastructure corridors must now be ex­ In the following pages, we presentthe major projects that tended to embrace North Africa-Middle East in thefo llowing must become reality to bring water and peace to the Middle manner: 1) Construction of a bridge over the Straitof Gibral- East.

28 Feature EIR September 28, 1990 Greening the desert:the Midea st's potentialfo r water development

by Marcia Merry

The best way that nations can respond to the imperious de­ promising way to bring Israel and its neighbors closer." mands by President Bush and Secretary of State James Baker The Jerusalem Post also recalls a precedent for coopera­ for soldiers, arms, and money in the Middle East, is to forge tion on water issues. "A 1987 conference on regional water ahead with the array of infrastructure development programs problems under American auspices was attended by Israeli for the region that would be the basis for peace and pros­ perity. For decades, designs and even engineering blueprints have existed for water, power, agricultural, and related de­ velopment programs. Besides the Israeli, Arab, Turkish, Egyptian, and other specialists involved in these designs, there are teams of French, German, Japanese, and U . S. engi­ neers who are ready and able to be deployed to get the job done. Amid the war cries from London and Washington, D.C. come voices of reason. In a statement in early September, Michel Vauzelle, a confidant of French President Fran<;ois Mitterrand, and a deputy of the French Socialist Party, called for a "vast plan for economic development for all the Mediter­ ranean," including the Middle East region. Vauzelle said that what is needed now is a conference on "security and cooperation in the Mediterranean." This would be crucial for France and other European nations, he stressed. Vauzelle insisted that European policy not be a caricature of the main protagonists in the current policy, but be independent. At the center of the question of development, is the issue of water supplies. On Aug. 29, the Jerusalem Post ran an editorial on how cooperation in developing water resources in the Mideast could contribute to the basis for political cooperation . The editorial stated, "The struggle for water could sooner or later trigger hostilities in the region ....There is a steadily wors­ ening water shortfall. ...Isra el, Jordan, and Egypt are ex­ pected to reach 30% water deficit by the end of the decade, while Iraq and Syria are expecting a gap of 60% by then." "Since the issue is vital to all ofthe peoples ofthe region," the editorial continued, "a concerted effortto solve the water problem-a Herculean but by no means impossible task-is imperative. From North Afr ica to the Indian Desert, extends an area without close exposure to ocean-related rainstorm patterns. Whoever "Such an effort cannot await the resolution of political brings water here, brings life. Pictured here are hydroelectric conflicts, but it most certainly can improve its prospects. generators at the Tilaiya Dam in India 's Damodar River valley . In Indeed, cooperation on the water problem may be the most the dry Middle East, technology can truly make the deserts bloom .

EIR September 28, 1990 Feature 29 FIGURE 1 Major water development projects

representatives as well as those of Jordan, Egypt, Turkey, However, there is no necessity to perpetuate vast, unin­ and even Iraq." habitable tracts of sand dunes. Rivers and lakes can be created A look at the globe shows the fe atures of the physical by man. Much of the Sahara, the Arabian, and other legend­ geography of the region that have, without the intervention ary desert lands are as fertile as California's Imperial Valley, of modem technology, created the world's greatest dry land or the test plots on Israel's Negev Desert. The accompanying region. The vast expanse from east of the Atlas Mountains map (Figure 1), and the descriptions of "great water proj­ in North Africa,extending through Southwestern Asiato the ects" in the following article, show the means by which the Indian Desert, is an area without close exposure to ocean­ process of "greening the deserts" can take place. related rainstonnpattern s. When you visualize a desert, you In this dry region, the same as the world over, water think of the Sahara, or the Arabian Desert, bounded by the resources can come from three sources: precipitation and Mediterranean Sea, the Red Sea, the Arabian Sea and the surface water, ground water, and desalination of briny water. other lesser bodies of water. As indicated by the stylized mountains and river basins

30 Feature EIR September 28, 1990 TABLE 1 TABLE 2 Volume of water for direct use by consumers, Millions without reasonable access to drawn from net precipitation and from rivers community water supply services, 1970

Per capita Per capita Percent of Number of per year dally population not persona not Nation and year cubic meters litera supplied aupplled A. Eastern Mediterranean and Persian Gulf Urban Rursl (thousanda) Iran, 1975 40.9 114 Iraq, 1970 91 .5 250 A. Eastern Mediterranean and Persian Gulf Turkey, 1985 76.1 208 Iran 18% 88% 17,594 Syria, 1976 26.9 76 Iraq 2% 94% 5,065 Lebanon, 1975 35.2 98 Kuwait 4% 341 Jordan, 1975 5.2 15 Turkey 35% 34% 13,292 Israel, 1986 71 .5 197 Syria 2% 50% 1,815 Lebanon 5% 15% 257 B. Arabian Peninsula Jordan 2% 41% 544 Saudi Arabia, 1975 115.6 318 Total, this group 38,908 Yemen, Oem., 1975 11.7 34 Oman, 1975 11.2 30 B. Arabian Peninsula U.A.E., 1980 38.6 106 Saudi Arabia 3% 66% 3,986 Qatar, 1975 n.2 212 Yemen 55% 98% 6,120 Bahrain, 1975 73.5 201 Qatar 2% 60% 16 Bahrain 2% n.a. 4 C. United States, 1985 259.2 712 Total, this group 10,126

1 cubic rneter=1, 000Iiter s=264.2gallons Source:World Health Organization, 1970

shown on the map, thereare threelocations where significant and for "public" uses (fountains, swimming pools and public amounts of surplus surface water canbe mobilized for use in baths, personal needs at worksites, etc.). the dry lands of North Africaand the Middle East: Compare the 76-1 14 liters with the average daily amount I. The tropical rain forest basin of the Congo River; of 712 liters available to a person in the United States. Since II. The marshy Sudd areaof the headwaters of the White this 76-114 liters is an average, this indicates that there are Nile; many residents who are today short of water for health in the III. The runoff from the Taurus and other mountains Middle Eastern nations shown. According to a World Health in the Anatolian Peninsula in Turkey, through the arc of Organization (WHO) survey in 1970, there were over 40 highlands into Iran. million people in this region without reasonable access to Large quantities of ground water also exist, and remain community water supply services (Table 2). Twenty years largely untapped, in vast areas of the region, shown on the later, there arestill millions unsupplied, though the estimates map as section IV. of personal water use are not Updated for the region. And finally, the design for a Dead Sea Canal (V on the The same water gap also exists for per capita water sup­ map) includes the proposal of desalination of seawater, plies available for industrial uses and agriculture uses. For which canalso be dramatically increased at many other points most areas of the hot, dry region, most available water goes on the map. for agriCUlture. This shows that there is no "leeway" for improvementin people's living standards, nor for population The water gap expansion. The large water deficienciescited by theJerusalem Post The lack of potable water is the directresult of deliberate have been in the making for decades, and should have been policy decisions by the WHO, among others, thatthe cost of reversed long ago by modern technologies. Table 1 shows the required infrastructure is "prohibitive." This is coherent the per capita water supplies per day withdrawn frommostly with the decision of the 1978 Alma Ata conference of the surface water sources (net precipitation and rivers) for per­ WHO not to invest in medical infrastructure, but to rely on sonal and public use, in nations of the EasternMediterranean, "primary care" provided by local witch doctors and other Persian Gulf, and Arabian Peninsula. "indigenous healers." This approach to medical care and its From 76 to 114 liters (19-30 gallons) per person is the accompanying "clean your own latrine" approach to sanita­ amount withdrawn from available water, for domestic uses tion and water management, is now takingits predictible toll including drinking water, sanitation, cooking, laundering, in the deserts of Jordan.

ElK September 28, 1990 Feature 31 As of early September, doctors in the refugee camps water resource. However, there are no handy guides to created by the V.S.-British standoff with Iraq, reported that ground water availability-aquifers , underground rivers, there was only one liter, or about one quart a day available and natural tanks. Many nations�keep ground water locations for some of the displaced persons. This is a death sentence: and data secret, for security re�sons. Moreover, the radical Death by dehydration is automatic under these conditions. In ecology movements regard ground water as "non-renew­ the event of cholera, a person in a dehydrated condition can able," and therefore, not a resource to be utilized or mea­ die within 15 minutes. In contrast, the V. S. soldier on desert sured. This assertion is false. Much ground water can be duty in Saudi Arabia is assigned 6 gallons a day for drinking, recharged with infusions of water of various types (rainfall, hygiene, and personal needs. wastewater, or desalinated seawater) to achieve a hydrologi­ cal balance. Water supplies If nations are forced to forsake development of ground There are four sources of water which must be assayed water and desalination, then they may be dependent on river for availability, and developedto meet the continuing needs: flow from outside their national boundaries, and forced into 1) net precipitation (snow and rainfall, minus evaporation­ strife over short supplies. Both the Tigris and Euphrates Riv­ which varies under the temperature regimes in the locale); 2) ers , on which Iraq depends , rise inTur key. Egypt has a treaty ground water stocks; 3) rivers and other water from outside arrangement with Sudan to share water from the upper Nile. the political boundaries of the countries concerned; and 4) However, there is no similar arrangement withEthio pia, the desalination. location of much of the Nile headwaters. Hydrologists have calculated the estimated net precipita­ Desalination processes have been dramatically improved tion for most parts of the Earth. The world total amount over recent decades, and the critical cost question is the cost of annual water availability is calculated to come from the of energy to fuel the procedure. With the amount of natural equation of 1 10,305 square kilometers of precipitation minus gas "flared off," that is, burned for no result, in the Middle 71,475 cubic kmof evapotranspiration, which gives an over­ East oilfields, there is no validity to the anti-growth argument all annual runoff of 38,830 cubic km from rivers, 26,945 that desalination is too expensive (see box). cubic km from surface runoff(floods ), and 11,8 85 cubic km Table 3 shows various ways in which parts of the region of stable base water. make use of net precipitation, and river water available. Rivers can be developed for maximum use. Floodwaters Ground water analysis is not shown here, due to the paucity are difficultto utilize, but ground water is potentiallya major of data at present.

TABLE 3 Utilization of net precipitation and of river flow from other countries, for selected nations in the region

Water potentially available Per capita km3/year m3/year Percent of Net River flows Water available Amount precipitation from other withdrawn water Net of water Nation and year per year countries km3/year withdrawn precipitation withdrawn

A. Eastern Mediterranean and Persian Gulf �� 1m � � 42.8 43% 1,870 4,575 Iran, 1975 117.5 45.4 39% 2,350 1,362 Turkey, 1985 196 7 15.6 8% 3,660 317 Syria, 1976 7.6 27.9 3.� 9% 620 449 Israel,1986 1.7 .45 1.9 88% 370 447 Jordan, 1975 0.7 0.4 .45 41% 170 173

B. Arabian Peninsula Saudi Arabia, 1975 2.2 o 2.33 106% 160 321

C. Selected other nations United States, 1985 2,478 n.a. 467 19% 10,060 2,162 France, 1980 170 15 33.3 18% ·3,070 606 Mexico, 1975 357 357 54 15% 4,1 10 901

Source: World Resources, 1988-89

32 Feature E.R September 28, 1990 TABLE 4 Utilization of annual per capita water by sector

Per capita Per capita use (and percent oftotal) by sector, peryear surface water m3/year utilization per year* Industry Irrigated Nationand year cubiC maters Public use (self-supplied) agriculture

Iran, 1975 1,362 41 1,321 (3%) (0%) (97%) Iraq, 1970 4,575 92 137 4,346 (2%) (3%) (95%) Turkey 317 76 60 183 (24%) (19%) (58%) Syria 449 27 422 (6%) (0%) (94%) Israel 447 72 22 353 (16%) (5%) (79%) Jordan 173 3 97 (public and industrial use combined) United States 2,162 259 995 908 (12%) (46%) (42%) West Germany 671 81 584 (12%) (87%) (0%) Mexico 370 67 167 137 (18%) (45%) (37%) France 606 (17%) (71%) (12%)

"Total refers to the total of net precipitation and inflowing foreign river flow. 1 cubic meter=264.2gallons

Turkey, with significant amounts of water fromthe rain­ supplies of water for personal, industrial, and agricultural fall in the highlands, makes only 8% use of net precipitation. needs can be raised to the levels required for higher living In contrast, Israel uses fully 88% of the surface water avail­ standards and productive output potential for millions of able to it-which is very little. Likewise, Saudi Arabia is people. shown to use more than the net precipitation (indicating de­ salination and ground water utilization). In between, in Iraq, Industrial and agricultural requirements there is about 43% use of surface water. In the latter case, The amounts of water required perperson for every kind there appears to be a very large amount of water per capita of agriculture, industrial, and living standard level can be from surface sources, and most all of this is taken up in calculated, and the means determined to provide the quanti­ agriculture. The amount of water used annually, or "with­ ties required. For illustration of water used in industrial pro­ drawn" from the precipitation and outside river flow, covers cesses, here are the gallons per unit required in Israel to all types of water use (personal, public, and for agriculture, produce a unit of the given product: and industry) in that nation. This amount does not correlate For milling one ton of wheat: 700-1,300 gallons; with the living standards in the respective area, because all For canning one ton of raw citrus: 1,050 gallons; the water may go into agriculture, for example, with relative­ For processing one ton of dressed chicken: 33,000 ly little for industry and domestic use. This is the profile of gallons; use for most of the region shown (Table 4). For brewing one kiloliter (264 gallons) of beer: 13,500 The figures in Tables 3 and 4, considered together, illus­ gallons; trate that much more water is requiredeach year per capita For making one kiloliter (264gallons) of wine: 500gal­ overall, much more is requiredfor percapita health use, and lons (very water efficient); per capita industry, as well as for an expanding irrigated For dying and finishing one ton of cotton yarn: 60,000to agriculture sector. The available water figures illustrate that 180,000 gallons; by channeling the unused surface water in Turkey more effi­ For dying and finishing one ton of woolen yarn: 70,000 ciently within Turkey itself, as well as southward to the dry to 140,000 gallons; areas, and by developing a more extensive use of ground For mining one ton of copper: 3,100 gallons; water and implementation of desalination, then the percapita For quarrying one ton of gravel: 400 gallons.

EIR September 28, 1990 Feature 33 zon in volume of water discharge, could be dammed and channeled to create a "Central African Lake," in place of its currentmeandering flowthroug ftZaire to the Atlantic Ocean. Water projects for From thisbody of water, a canal could be cut north-proba­ bly involving a lift pump over the relatively narrow divide, Africa to send water northward to Lake Chad. Now a seasonal lake, theMideas t, Chad could be stabilized at a high water level, to benefitthe five nations on its shores-Nigeria, Chad, Niger, Central by Marcia Merry Africa, and Cameroon-whichtogether have more than one­ quarter of the population of theentire continent. The map on page 30 shows the basic target areas fo r water Lake Chad water in turn can beused for further irrigation development in the Mideast andNorthern Africa. In what and transport routes north, even potentially to interconnect fo llows, we analyze these projects in greater detail. with old, dried-up river beds and underground water sources in the Sahara Desert. The overall project would bring into cultivation an esti­ I. Lake Chad-Congo Basin mated 800,000 square miles of land, which is more than five development times the arable terrain of Japan, where 110 million people live. This massive hydraulic project is the centerpiece for The new Central African Lake and Lake Chad would transforming the continent of Africa, and beginning the de­ become a man-made "Great Lakes" of Africa, to serve, as desertificationof the northern Sahara. The concept is to con­ the glacier-formed Great Lakes of North America once did, struct a link canal to channel water from the Congo River as the center of gravity for industry, transportation, electrical basin, northward to flowinto Lake Chad. power supply, and agriculture for many developing areas. The Congo River, which ranks second only to the Ama- This project, in combination with mosquito eradication and

mately 7 million tons per day. About 60% of these plants are in the Mideast, and almost all the Mideast plants use multi-stage flashdistillation. Worldwide, 82% of the large Desalination: an advanced desalination plants (those producing more than 1 million solution fo r the Mideast gallons perday) use multi-stage flashdistillation. The efficiency of desalination plants, termedperfor­ mance ratio, is measured in terms of the pounds of fresh Turningthe abundance of the world's salt water into drink­ water produced per 1,000 BTU Of heat input. The perfor­ ing water requires reducing the parts per million (ppm) of mance ratio of present Mideast plants is 8, which is quite dissolved solids (80% of which is sodium chloride or salt) low and is acceptable only because of the low cost oflocal from 35,000 ppm to less than 500ppm, a reduction of 70 energy (flaregas , for example, which would otherwise be to 1. wasted). Distillation (evaporation using steam heat), is one of The relatively high cost of cwtrentdesalination techno­ the three basic methods of desalinating, and has been logies, although on a per capita basis within the range of used for more than 100 years on oceangoing steamships. other types ofessential infrastructure, could be improved Today, about 95% of the world's desalination plants use if more intensive and efficient methods were developed. modern distillation methods: multi-effect distillation, Jonathan Tennenbaum, director ()fthe Fusion Energy Fo­ multi-stage flash distillation, or vapor-compression dis­ rum in Europe, has suggested that advances in optical tillation. biophysics and laser chemistry �d laser isotope separa­ The two other basic desalination methods are the re­ tion be applied to solve the problem, making use of the verse osmosis membrane system and electrolysis, both of inherent harmonic properties l,vingof organisms. For ex­ which are used mainly for purifying brackish water, which ample, Tennenbaum notes that the amount of sodium in can contain up to 10,000ppm of dissolved solids. living cells differs from that in tlile surrounding medium. In the past two decades, more than 1,500desalination He suggests that it would be frui�ful to examine the elec­ units (each with a capacity of 100 tons per day of fresh tromagnetic structures of water .and the role of nuclear water) have been installed with a total capacity of approxi- magnetic resonance.

34 Feature JtIR September 28, 1990 vaccines, would end the plague of malaria, which now af­ River into Egypt, there areextensive marshyareas known as flicts 160million Africans-fully two-thirds of the popula­ the Sudd swamp (see Figure 1). !Construction of a channel tion of sub-Saharan Africa. The additional element to the from Yonglei, at the swamp, downwater to Malakal, and river controland centrallakes systemis a net of cross-African construction of a canal system, would regulate the swamps rail lines. of southern Sudan, where large quantities of water are now There are a number of options and designs for this grand lost by evaporation. Much of this �aterwould be conserved, African water project. The Ministry of Constructionof Japan and the flow of the White Nile increased. Hundreds of thou­ has officially designated Lake Chad development as one of sands of acres of prime farmland would be created in the its five priority world "great projects," along with a new process in Sudan. Panama Canal, a canal through the Isthmus of Kra in Thai­ The project was started, then halted because of funding land, flood control in Bangladesh, and a bridge between problems, and the obstructionismof the ecology movement, Sumatra and Java. which has made preserving swamps and "wetlands" the ex­ In Paris on Sept. 8, a conference of the Schiller Institute cuse for stopping water improvement programs. considered detailed proposals to link the Congo-Chad Ba­ sins. Water can be pumped up from the Ubangi River into the Chari (flowing into Lake Chad), through 200 kilometers llL The Peace Pipeline and of reinforced pipeline. There needs to be on the order of 50 development of the waters of billion cubic meters of water in order to recover the 90% of lost lake surface-some 20,000 square kilometers (almost 1llrkey and Iran the size of Belgium.) The "Peace Pipeline," shown schematically on the map (page 30), is a $14.5 billion project, organized and managed in Turkey, designed to pipe water fromTurkey south all the n. Yo nglei Canal and way to Yemen on the Arabian Ocean, with branch tap lines improvements in the Nile going out to the Jordan River nations, and to Iraq. In return, headwaters a twin pipewould bring petroleumback fromthe Arabian oil fields. In southeastern Sudan, where the upperWhite Nile River This water-for-oil peace project was funded in part rises, before joining the Blue Nile and flowing on as the Nile through a public offering of shares to investors in Turkey and

FIGURE 1 Lake Chad-Congo Basin, and Yonglei Canal projects

Lake Mai·Ndombe

Source: Club of Life

EIR September 28, 1990 Feature 35 throughout the Middle East. Construction on the pipelines has begun; but now, with the crisis in the Persian Gulf, the FIGURE 2 program is halted. The Mediterranean-Dead Sea Canal proposal The mountainous ranges of the Anatolian Plateau region continue through the Caucasus into the mountainous high­ lands of Iran, where water development projects can greatly enhance the agriculture and industrial output of the entire SYRIA region. The famed Euphrates and Tigris Rivers rise in Turkey, and provide water for farmland in Syria and Iraq , before

discharging into the Persian Gulf at the Shatt al-Arab. Im­ . .... proved water management systems would greatly enhance " " . the use of these waters all along the course of the watershed, which has been studied in depth. In addition, there are mil­ lions more of acre-feet in Turkey that can be utilized within the nation. JORDAN The "GAP" project in Turkey, originally planned by the State Hydraulic Works, would make use of the waters of the Firat and the Dicle rivers and their tributaries, in the southeastern Anatolian region. The project envisages the building of 21 dams and 17 hydroelectric plants, and at full development, would irrigate 1.6 million hectares of land, and provide 26 billion kwh of electricity a year, with installed capacity of 7,500MW . The total planned irrigation amounts to 19% of the total economically irrigable area in Turkey (8.5 million hectares) and the GAP electricity output would materialize 22% of the EGYPT hydropower considered viable in Turkey (118 billion kwh). A master plan was prepared as a joint venture with Nippon Koei Co. Ltd. of Tokyo. A priority project in Iraq has been the Badush Dam, near Mosul, on the Tigris River, whose headwater reaches include the Dicle River-targeted for development by the Turks. The dam would have been part of a scheme to build an entire system of dams, irrigation, and water and sewage treatment facilities, to boost food output and living standards. The "":\ Proposedcanalltunnel ro utt Italian Banca Nazionale de Lavoro was involved in funding � based on economic plan by Gad Ya'acobi i the project, and for that reason among others , was targeted in i 1989 by British anti-development circles, using the London Highlands-200-1,000 met,rs Financial Times, in a contrived scandal about allegations of loans to gun-runners.

Iv. Ground water development in thewestern Egyptian desert th �t could provide sweet water In 1984, satellite overftights of the Mideast and North for 50 years of agriculture. On� proposal is to undertake Africa, and use of the "Big Camera" remote sensing (from the construction of strings of o�es, forming corridors of Itek Optical Corp.), confirmed the location of significant agriculture and settlement, and �onverting the sands of the bodies of underground water, whose existence was previous­ desert into sod. Thesiting and anfteological featuresof these ly known only in part. The satellite data give only the loca­ water deposits indicate the existeitce of rivers flowingnorth­ tion; the depth, quality, and size of the water deposits must ward into the Mediterranean Se4 from highlands in central beconfirmed by on-site hydrological measurements. Africa. Subsequent tests show quantities of underground water In the westernSahara there are at presentextensive under-

36 Feature �IR September 28, 1990 ground flows of water, whose direction and quantities could proposed scheme involves digging a canal from the sea to be programmed for use, and for re-charging in the process within 9 miles of the depression, and then running water of greening the desert. Like rivers, underground bodies of through a tunnel into the cliff wall. The German plan esti­ water course across political boundaries, and require cooper­ mated that 2.7 billion kilowatt hours of electricity a year ative development plans. could be recouped. In Saudi Arabia, the underground water in the northeast­ Besides transmission of power to the Cairo metropolitan ern region has been utilized to create 3 million hectares of area, power could be used to pump up sweet ground water wheatfields, turning the country from a grain-importing na­ in the surrounding desertregion . tion into an exporter. The aquifers of the Arabian peninsula Desalination plants could play a role in recharging the are famous, including upwellings of sweet water in the Per­ underground waters, and, with agriculture and othervegeta­ sian Gulf, bubbling up through the salty sea. tion, a new hydrologic cycle could becreated because of the man-made lake. Even without this, engineers estimate that 100 years of salt water fishingcould be supported in the lake. Because of V. Dead Sea Canal, Qatarra evaporation in the desert heat, the lake would most likely Depression, and the creation of remain at about 150 feet below sea level, but this could be water corridors regulated. The Qatarra Depression Lake was one of the early pro­ There have been many grand designs for linking the wa­ posals for use of PNEs-peaceful nuclearexplosives-in the ters of the Mediterranean into the Dead Sea (Figure 2). As "Project Plowshare" program of U.S. science and defense proposed by Prof. Haim Ben-Shahar, former president of agencies. the Tel Aviv University, the project was more an energy program, and not a water project. But the strides that have been made in desalination processes and nuclear power reac­ tor technology make the old dreams come alive again. In Ben-Shahar's plan, therewould be a canal, and then a tunnel, proceeding from the Mediterranean and passing in between between Beersheba and Oron, into the southernarea of the Dead Sea. There were protocols envisaged to involve 'From the prison in which the Jordan in thedevelopment benefits. As of the 1970s, the plan politician 's career exp ires, the influence of the statesman is raised toward the called for the water going into the Dead Sea through a series summits of his life's providential of waterfalls. course. Since Solon, the Socratic Today, the plan-as most recently proposed by Lyndon method has become the mark of the LaRouche-calls for lining the canal with anumber of nucle­ great Western statesman. Without the ar plants. Besides using distilled sea water for their own reemergence of that leadership, our functions, the plants can produce water for use in the entire imperiled civilization will not survive region. The water course thus becomes a development path­ this century's waning years. ' way. It is a zone of urban development, and location for -Lyndon H. LaRouche, Jr. industries and efficientagriculture production in the adjacent region. IN DEFENSE Another proposal for a canal from the Mediterranean is to channel water into the Qatarra Depression-a large, dry COMMON SENSE sinkwell in northern Egypt, 35 miles from the seacoast, and by Lyndon H. LaRouche, Jr. 140 miles from Cairo (see map, page 30). The dank hole lies about 200 feet below sea level, and extends 185 miles from Available fo r $5 fr om: north to south. If filled, it would create !l large inland salt Ben Franklin Booksellers water lake the size of Lake Ontario. 27 S. King St. Like the earlier Dead Sea Canal plans, the Qatarra De­ Leesburg, Va. 22075 pression Lake was conceived in the post-World War II era Telephone (703) 777-3661 as an energy development scheme. The hollow is rimmed Postage & Shipping by steep escarpments, perfect for hydropower, were water U. S. Ma il: 51.50 + 5.50 available. each additional book. UPS: 53 + 51 each Egyptian President Gamal Abdul Nasser engaged Ger­ additional book. man scientists and engineers to study the possibilities. The

EIR September 28, 1990 Feature 37 �TIillBooks

WillBr itain's 'Great Game' bring new world war?

by Mark Burdman

moreand more obvious that the combat with Iraq is a prelude to a much bigger adventure, vis-a-vis what are today the The GreatGame : On Secret Servicein High Soviet Central Asian republics. As the Israel-based Soviet Asia analyst Mikhail Agursky wrote in theJerusalem Post Sept. by Peter Hopkirk 13, "Some American experts would very much like to see John Murray, London, 1990 Soviet Central Asia removed from Russian control." Agur­ 562 page, with index, hardb ound, £19.95 sky said this possibility should be "dreaded," since it would unleash "new fundamentalist and nationalist" upheavals, and, "in such a situation, who can tell where the new ayatol­ Peter Hopkirk's The Great Game was completed in January lah would appear: in Baghdad or Teheran, Samarkand or 1990 and published months before the eruption of the current Bokhara?" Iraq crisis. That makes it all the more interesting to read now. Indeed. Without doubt, dreams are proliferating these With Hopkirk's narratives of the Central Asian Great Game days, in the London social-club set that Worsthome fre­ in mind, the reader gets the eerie sensation that the United quents. The dreams include the idea of an Anglo-American­ States is now hooked into a script that was authored in Lon­ sponsored "independent Turkestan" including parts of the don well over a century ago. Think of the comment made by Soviet Union and China; NATO extending its "out-of-area" the London Sunday Telegraph's chief editorial writer, neo­ purview to Soviet Central Asia!; and a new "domino theory," imperialist Peregrine Worsthome, on Sept. 2: "In the old in which Iraq's fall is only the prelude to snatching back days, the British Empire faced many Saddam Husseins. A the Central Asian republics "lost" in the 19th-century Great gunboat and a brigade of troops sufficed to deal with Game. It is all part of the "new world order" that's the stuff them ....These local tyrants usually ended their days in of Margaret Thatcher's dreams-and of most of the rest of exile on a large heap of empty gin bottles. Happy days. the world's nightmares. Coping with Saddam Hussein, however, requires several So, Hopkirk's last words are worth remembering: "For American divisions and a vast assortment of the most ad­ more than a century now the vast Russian empire [in Central vanced weaponry. " Hopkirk is not quite the cynic that Worst­ Asia] has served as a monument to the Czarist heroes of the home is, but one can easily conjure up the "many Saddam Great Game. How much longer it will continue to do so, in Husseins" among his cast of characters-and get a flavorfor view of the violent turmoil threatening the Soviet Union, is how the British treated them. impossible to forecast." The main geographical area for Hopkirk' s story is not Should what he calls the "forward school" of British what is today called the Middle East or Near East, but Central foreign policy thinking continue to dominate London in the Asia, comprising Afghanistan, Iran (formerlyPersia) , north­ coming weeks, the world could soon be on a shortfu se toward ernIndia, Pakistan, Tibet, and Soviet CentralAsia. The shift a third world war, for reasons we shall discuss later on. The of geography makes the book all the more topical at this reader of Hopkirk's book receives some clues about what moment. As each day passes in the Gulf crisis, it is becoming that mentality is like.

38 Books EIR September 28, 1990 The real Great Game and the Russia of Count Sergei Witte. And what was feared Two things must be said in Hopkirk' s favor. One is that in Witte is not what Hopkirk claims in a passing reference, he is well informed, evidently having placed himself in the that Witte wanted to control Asian resources as a means of shoesof those he is writing about, and in the traditionof such controlling Europe, but that Witte wanted to establish an top British intelligence operatives as Sir Fitzroy Maclean, alliance with the industrial-capitalist powers of Europe, to whose book EasternAp proaches, about his travels through further industrialize Russia. Central Asia, was one ofthe inspirations for Hopkirk's book. There is only the barest hint of this in the last couple of The second is that he is a talented writer, and writes history chapters, where Hopkirk points out that Britain and Russia in the manner a good spy-thriller writer would do. He has resolved their Great Game in 1907, in order to join forces written three books on this region, which are all quite enter­ against Germany. But, in fact, it is probable that the chief taining, as well as informative in a casual way. But this is "game players," sharing an imperial-romantic worldview, both the lure and the trap in Hopkirk's newest book. It tends were in some way in a symbiotic alliance against Christian­ to romanticize and glorify activities of the British that are republican civilization. Sir Francis Younghusband is particu­ more often than not-as in the cases of British massacres larly interesting, since he became a proponent of creating a of Afghanis and Tibetans�uite revolting. The unwritten one-world religion through his famous 1930s "World Con­ assumption in the "Great Game," as Hopkirk defines it, is gress of Faiths." In content, his ideas were no different from the sanctity of the British Empire in India, as something to such Russian "Third Rome" theological philosophers as Ni­ fight and die for. Many of the heroes arethe sepoys, gurkhas, kolai Berdyaev. From the Russian side, there is the Tibetan­ and others who courageously fought and died for the Crown. origin intriguer Badmayev, who had ties with the occultist But thereis little regret expressed for the Indians who had to New Age circles in the West. live under British rule. Hence, it is disappointing that Hopkirk never discusses There is also a basic fallacy of composition: The real Theosophy, since if anything embodies an Anglo-Russian GreatGame is not just a British versus Russian fightfor turf convergence in and around India, it is the movement created in Central Asia, not just that fight immortalized in Kipling's by Russia's Madame Blavatsky, England's Annie Besant, poem "Kim": "Now I shall go far and far into the North, and others. Truly, the Theosophical New Age movement is playing the Great Game." a Great Game against Judeo-Christian Western civilization! As current events show, there is a bigger Great Game, whereby the British utilize developments in and around the What Moscow knows "soft underbelly" of Europe to prevent the emergence of a Today again, the British are possessed by the fear .of a progressive industrial-capitalist civilization in Eurasia, in continental "Eurasian" axis that would eliminate the basis partby inducing, or strengthening, an imperialreaction-f or­ of their neo-imperialist ambitions. This is the true strategic mation inside Russia to Britain's imperial games. The com­ background for the Gulf crisis, which has been orchestrated ing-into-being of a German-French-Russian industrial capi­ at every critical point by British intelligence or its assets. talist alliance on the Eurasian continent has been the recurrent Hopkirk's The Great Game is eminently worthwhile to threat to the British Empire, ever since the creation of the read, side by side, with the fascinating July 1990 issue of the United States of America. Hopkirk's sin of omission is to Soviet Foreign Ministry's International Affairs. It is clear leave this larger issue out entirely. from a careful reading, that leading personalities in Moscow So, it all makes for a good movie-script, but it trivializes today view the "Great Game" in the broader strategic sense history. that we have indicated above. For example, he peddles the mythology, common in Brit­ For one, there is an articleby Igor Malashenko, a senior ish writings, that the root of the threat to Central Asia lay in consultant to the Central Committee, on the "Eurasian Heart­ the alleged secret deathbed testament of Peter the Great, land," in which he warns of new war dangers arising from calling on Russia to achieve domination over India and Con­ an Anglo-American policy, dating from geopolitician Lord stantinople, as key to ruling the world. Hopkirk doesn't say Mackinder, that no one power or coalition of powers ever what the nascent British Empire of the 17th and early 18th be allowed to be dominant on the "Eurasian land mass." century was really worried about, namely the philosophical, Malashenko focuses on the theory of the "Eurasian Rim," scientific, and political influence of Gottfried Wilhelm Leib­ whereby the areas peripheralto Russia aretargeted for desta­ niz in PetrineRussia. To this day, the British are petrifiedby bilization, as a means of containing Russia and/or Russia's the possibility that that influence will re-emerge. Certainly, alliance with other great powers in the Eurasian area. (It is in the 189Os, which was one of the historical peaks of the curious, by the way, that Hopkirk never mentions Mackinder Central Asian Great Game, the heyday of the likes of Lord once.) Curzon and Francis Y ounghusband, the profound British There is also a piece, in the form of a letter, titled "For­ global fe ar was that an alliance would form between the eign policy to meet national priorities," by Yuri Ilyin, Deputy France of Gabriel Hanotaux, an industrializing Germany, Head of the Department of InternationalPolitics at the Higher

EIR September 28, 1990 Books 39 Party School, Moscow, which calls for the revival of the In search of a fuller understandiQ,gof the non-violent method policies of "worldly-wise statesman" Count Sergei Witte, of Mahatma Gandhi and Martini Luther King, Jr. , I was led for rapid economic growth and war avoidance, anchored on to the trilogy of Jawaharlal Nehru, written by India's first Russia's "good and reliable partner," Germany. Ilyin at­ prime minister during his many prison terms priorto India's tacked such balance-of-power approaches as the Congress of independence. The trilogy, comprising over 2,000 pages, Vienna and the "Versailles system." He also praised Witte was released in 1985 by the Jllwaharlal Nehru Memorial for having refused to "pull the chestnuts out of the fire" for Fund, in a beautiful edition, bearing an introductionby Neh­ the British before World War I, and called for "turningback ru 's only child, Indira Gandhi, the assassinated primeminis­ to the traditional foreign policy values of Russia," based ter of India. Oxford University! Press in India issued these today on living in peace with "a united Germany. " three books to commemorate his centenary on Nov. 14, From the German side, the conservative daily Die Welt 1989. returned the compliment, with a feature Sept. 18 promoting Mrs . Gandhi's Foreword, written in 1980, gives the read­ the emergence of a new Eurasian economic superpower, er a sense of the richness and beauty of the collection, and along a Berlin-to-Moscow axis, that would incorporate 800 bears quoting from directly: million persons, and become the predominant economic "My father's three books-Glimpses of World History,

power. With different nuances, such ideas have also been An Autobiography and The Discovery of India-have been expressed in Paris and Rome. my companions through life. It is difficult to be detached It is such thinking that the British fear more than anything about them. else. But that book still needs to be written. "Indeed Glimpses was written for me. It remains the best introduction to the story of man for young and growing people in India and all over the world. The Autobiography has been acclaimed as not merel" the quest of one individual for freedom, but as an insight intb the making of themind of new India ....The Discoveryd elves deep into the sources Read Nehru to fathom of India's national personality. Together, these books have moulded a whole generation of Ipdians and inspiredpersons the British Empire frommany other countries." Indira Gandhi, who was a personal friend of Lyndon LaRouche and Helga Zepp-LaRouche, was assassinated on by Marianna We rtz Oct. 31, 1984. Her assassination, like Mahatma Gandhi's, Martin Luther King's, and John F. Kennedy's, was an at­ tempt to stop the current of republican nation-builders from creating large industrial republics on this Earth. Glimpsesof WorldHistory The great value ofthese works lies in Nehru's clearunder­ by Jawaharlal Nehru standing of who that enemy is, and his willingness, despite Oxford University Press, New York, Delhi, 1989 great hardship during his long years of imprisonment, to 992 pages , with index, hardbound, $19.95 speak out harshly against his people's oppressors. If you want to understand the British Empire, read Nehru. Since the United States is presently committed to fighting World War III on behalf of Britisb oil interests, and President AnAutobiography Bush is acting like a lapdog of Nanny Thatcher, it is impera­ a ak by Jawaharlal Nehru tive, for our national survival, th t Americans t e the blind­ Oxford UniversityPr ess, New York, Delhi, 1989 fold off on just how evil the Briti$h Empire is. Naturally, we 624 pages with index, hardb ound, $18.95; could tum to our own bloody history with the British. But paperb ound $9.95 India's liberation struggle, reaching success only half a cen­ tury ago, has the benefit of including people like Winston Churchill, who exist in the memory of people living today. It was Churchill in January 1930� who said, "Sooner or later you will have to crush Gandhi and the Indian Congress and The Discoveryof India all they stand for. " In December of that year he said, as Nehru by Jawaharlal Nehru quotes him: "The British nation has no intention whatever of Oxford UniversityPre ss, New York, Delhi, 1989 relinquishing control of Indian life and progress . . . which, 582 pages , with index, hardbound, $18.95 more than all our dominions and dependencies, constitutes the glory and strength of the BritiSh Empire."

40 Books BIR September 28, 1990 Discovering India glish were an imperial race, we were told, with the God­ Nehru wrote The Discovery of India while imprisoned at given right to govern us and keep us in subjection; if we the Ahmadnagar Fort Prison Camp from Aug. 9, 1942 to protestedwe were reminded of the 'tiger qualities of an impe­ March 28, 1945-i.e., while World War II was raging in rial race.' " Europe and Africa. Because he was imprisoned as part of a The East India Company, which actually ruled India on mass movement for Indian independence, he had the fortune behalf of the Crown for more than a century, began to loot of sharing his prison cell with numerous Indian freedom­ India of its wealth and resources as early as the 17th century. fighters and scholars. Drawing on their mental resources and Nehru points out that the English word "loot" comes from whatever books he could obtain, he constructed a universal the Hindustani word to describe the operations of the British history of India and its relations to the other major powers in East India Company in Bengal. Asia and the West, from the earliest period of the Indus Then as now, the British looters hid under the mantle of Valley civilization, centuries before Christ, to the period of "free trade." Says Nehru, "It was pure loot. The 'Pagoda World War II. tree'was shakenagain and again till the most terrible famines By developing this broad sweep through history, which ravaged Bengal. This process was called trade later on but encompasses scientific, artistic, economic, and cultural that made little difference. Government was this so-called achievements, Nehru establishes that the India which the trade, and trade was plunder. There are few instances in East India Company so brutally raped, beginning in the 17th history of anything like it. And it must be remembered that century, was once an advanced civilization. He breaks this lasted, under various names and under different forms, through the racist preconception held by most (illiterate) not for a few years but for generations. The outrightplunder Westerners today, that India is just a backward, illiterate, gradually took the shape of legalized exploitation which, and impoverished nation. Indeed, as Nehru establishes, India though not so obvious, was in reality worse. The corruption, was the leading scientificforce in the world, giving so-called venality, nepotism, violence, and greed of money of these "Arabic" numerals and the Sanskrit language, which is the early generations of British rule in India is something which basis for every modem European language today, to a Europe passes comprehension." enmired in the Dark Ages. The famine of 1770, caused by the policies of the British When Discovery was being written, the key problem fac­ East India Company, killed over a third of the population of ing India was to gain independencein the context of Britain's Bengal and Bihar. involvement in World War II. Nehru's Congress Party was clearlyopposed to fascism, and knew that Japan threatened The objective is depopulation invasion of India. Yet, the question, whether to fight as a Nehru notes, a "significant fact which stands out is that colony of Britain, knowing that the war would not end that those parts of India which have been longest under British colonial status, was a very difficult one. It forced Nehru to rule are the poorest today. Indeed some kind of chart might weigh thefascist character of the British oppressor against the be drawn up to indicate the close connection between length evil of the Nazis. In thebalan ce, he found no real difference. of British rule and progressive growth of poverty. . . . Ben­ Indeed, as he said, the Nazis invented nothing new-they gal, once so rich and flourishing, after 187 years of British just used the methods that Britain had been using in India for rule, accompanied, as we are told, by strenuous attempts on over a century . the part of the British to improve its condition and to teach its people the art of self-government, is today, a miserable British Nazis mass of poverty-stricken, starving, and dying people." In The Discoveryof India, Nehru compares British colo­ He describes the progressive "re-ruralization" of India nial rule directly to Nazi policy: "Since Hitler emerged from under British rule. "India became progressively ruralized. In obscurity and became the Fuhrer of Germany, we have heard every progressive country there has been, during the past a great deal about racialism and the Nazi theory of the Her­ century, a shift of population from agriculture to industry; renvolk. That doctrine has been condemned and is today from village to town; in India this process was reversed, as condemned by the leaders of the United Nations. Biologists a result of British policy. The figures are instructive and tell us that racialism is a myth and there is no such thing as a significant. In the middle of the 19th century about 55% of master race. But we in India have known racialism in all its the population is said to have been dependent on agriculture; forms ever since the commencement of British rule. The recently this proportion was estimated to be 74% ....This whole ideology of this rule was that of the Herrenvolk and then is the real, the fundamental, cause of the appalling pov­ the master race, and the structure of government was based erty of the Indian people, and it is of comparatively recent upon it. . . . There was no subterfuge about it; it was pro­ origin." claimed in unambiguous language by those in authority. . . . Fear of any Indian industrial development was carried India as a nation and Indians as individuals were subjected out to such an extreme by the British rulers of India, Nehru to insult, humiliation, and contemptuous treatment. The En- notes, that even when the Western Allies badly needed India

EIR September 28, 1990 Books 41 to produce goods for the war effort during World War II, ist; and he who would seek to reduce her to the position of Indian industrialization was prevented. "But as imperative an agricultural country, seeks to lower her in the scale of as the needs of the war situation were, the future needs of civilization.' That is exactly what the British in India sought British industry were always kept in view, and it was consid­ to do, continuously and persistently, and the measure of their ered undesirable to develop any industries in the postwar success is the present condition of India, after they have held years . This was no secret policy; public expression was given despotic sway there for a century and a half." to it in British journals, and there was continuous reference Comparing the fates of India and the United States under to it and protests against it in India." British rule, Nehru uses biting sarcasm as he rues India's As a result, shipbuilding and locomotive manufacture, fate . "The independence of the United States of America is both crucial for war mobilization, were prevented from de­ more or less contemporaneous with the loss of freedom by veloping in India. An effort mounted by an American auto­ India. Surveying the past century and a half, an Indian looks mobile manufacturer to launch auto manufacture in India was somewhat wistfully and longingly at the vast progress made scotched in infancy. Even medicines, including drugs and by the United States during this period, and compares it with vaccines, which could not be gotten from Europe during the what has been done and what has not been done in his own war, were hindered by the British from being developed country ....[P] erhaps it is not inconceivable that if Britain domestically, so as not to compete with Imperial Chemical had not undertaken this great burden in India and, as she tells Industries, the British pharmaceutical giant. us, endeavored for so long to teach us the difficultart of self­ British fear of Indian industrialization even went to the government, of which we had been so ignorant, India might extreme of preventing the manufacture of power alcohol, not only have been freer and more prosperous, but also far used to fuel crucial transport equipment and cars. "It was more advanced in science and art and all that makes life only in the third year of the present war [World War II] , after worth living." Burma fell and the supplies of oil and petrol were cut off, Before America is "lowered" in the scale of civilization that the realization came that power alcohol was necessary by the looting policy of the British banks and their environ­ and must be produced in India. " mentalist shock troops, we should heed the warnings of a The following footnote in Nehru's account of the war political leader who left his prison cell to lead his nation to effort in India is starkly to the point: victory over just those policies. It can be done again today. "The Calcutta journalCa pital. of March 9th, 1944, gives the following figures for the index of industrial activity in India.

(1935-36= 100) Derivative 1938-39: 111.1 Assassination: 1939-40: 114.0 1940-4 1: 117.3 1941-42: 122.7 Who Killed 1942-43: 108.8 Indira Gandhi? 1943-44: 108.9 (approx.)

"These do not include armament production. Thus, after by the Editors of Executive more than four years of war, industrial activity as a whole Intelligence in India was actually somewhat lower than in the pre-war Review period."

The famine which swept India in 1943-44, claiming 3 Order from: million lives, was British policy. "That was the culmination Ben franklin and fulfillment of British rule in India. It was no calamity of Booksellers, Inc. nature or play of the elements that brought this famine, nor 27 South King St. was it caused by actual war operations and enemy blockade. Leesburg, VA 22075 Every competent observer is agreed that it was a man-made famine which could have been foreseen and avoided." $4.95 plus ship­ ping ($1.50 for British policy: Create a lower civilization first book, $.50 for Nehru quotes from the historian Montgomery Martin, in each additional testimony given before an Inquiry Committee of the British book). Bulk rates available. Parliament in 1840, on the real objectives of British rule: " 'India is as much a manufacturing country as an agricultur-

42 Books EIR September 28, 1990 Rembrandt celebrated man's dominion over water

by Nora Hamerman

notion that man's life on earthis merelya journeyon theway to eternallife-by arguing that in many cases, this doctrine Rembrandt'sLandscapes does not appear to match the details of the actual landscape by Cynthia P. Schneider or the moodof the figures. But this leaves us with a mystery: Yale UniversityPres s, New Haven and London, Why did Rembrandt, who has been describedas "the deepest 1990 nature in the history of art,"create so many landscapes­ 289 pages, hardb ound, illustrated, with index, $50.00 especially in the graphic media? And why do they move us as supreme works of art, when they seem to evade the kinds of literary analysis we more easily apply in the fields of portraitureand narrative painting? The young scholar Cynthia Schneider has made Rembrandt, The author falls into the typical problem of the over­ one of the towering geniuses of Western art and one about trained graduate student. Having enumerated, perhaps dis­ whom many shelves of books have been written, her special­ proved, every existing hypothesis about the works, she offers ty . This, her firstbook, came out thispast spring, just after the no hypothesis of her own. As if it weren't needed! Not only opening of an exhibition at Washington's National Gallery of is Rembrandt's art usually quite far from"nature just as she Artof Rembrandt's landscapes in the print and drawing me­ is," but there is an inescapable feeling in these pictures of a dia, of which she was the curator (see EIR , April 6, 1990). philosophical statement as sweeping as a Beethoven "Pasto­ Schneider's boldest act has been to give back to Rem­ ral" Symphony. What is it about? brandt the authorship of the disputed picture, "The Mill," a large canvas in the National Gallery of Artdating c. 1643-46. Polders The windmill, which symbolizes the Dutch national spirit, A certain insight came to this reviewer while touring the spreads its sails in a way evocative of a crucifix high atop a exhibition of Rembrandt's landscape drawings andetchings bulwark, illuminated against a bright patch of sky in the in Washington last spring with a friend. When I remarked, midst of an approaching storm. This dramatic image was "and here you see the cows standing in the water next to the extremely famous when covered with yellowed varnish in polder," my friendasked, "What's a polder?"I proceededto the Romantic era, but was not included among Rembrandt's explain that a polder is a piece of fertile farmland that has authentic paintings by most leading 20th-century scholars. beenreclaimed artificially from the sea by encircling it with The canvas was recently restored to an appearance much dikes and draining water from it. Then a basic truth struck closer to its original colors. me, like that shaft oflight that unexpectedly breaksthrough Schneider made use of the wide range of recently devel­ the typically overcastDutch skyin almost every Rembrandt oped scientific techniques for looking under the surface of landscape painting, and evokes the feeling of a divine ele­ pictures, including at many details which an irreversible ment in human affairs. darkening has made very hard to perceive. The result is that I remembered what it was that every schoolchild learns she accepts eight of the landscape paintings known today as in geography class about the Netherlands: It's a nation of by Rembrandt, and attributes 11 others to pupils, followers, which more than 40%of the national territoryhas been creat­ or imitators. There are color illustrations of 14 of these beau­ ed by man. A fact that is strangely not mentioned either in tiful landscapes in her book. Schneider's book or in last spring's exhibition catalogue. Afterthat, timidity verging on indifferentismtakes over. As a matter of fact, the Low Countries, including mod­ Much of this cautiously written book is devoted to discount­ em-day Netherlands and Belgium, were in the 14th and 15th ing the various theories of what Rembrandt's landscape art centuries the center of some of the most technologically ad­ is really about. Schneider takes pains to pick apart some vanced farming in Europe, based upon water management specificreligious interpretations which have been offered­ programs. Only northern Italy, the Lombard region around such as those which relate Rembrandt's landscapes to the the Po Valley, surpassed flanders and Hollandin this regard.

EIR September 28, 1990 Books 43 Digging canals and erecting dikes to create new fannland Iy misleading twist: "God made the world, but the Dutch was the way that the Dutch people defined themselves as a made Holland." In reality, man in the living image of God, nation. In the early 1600s another major advance had been imago viva Dei, created the I�dscape to a degree not true made, making a science out of draining large lakes by build­ anywhere else in Europe, or anywhere else in the known ing a number of dikes and windmills, which would pump world at that time. And then the artist, reflecting upon the the water in steps to higher and higher levels until it was creative powers of his fellow IIlan, of his nation, draws and transported all the way to the sea. The result was so dramatic paints the results of this creati� action, in harmony�r in that maps of the Netherlands had to be redrawn in 1612, struggle-with the forces of raw nature. when Rembrandt was six years old. Rembrandt, the son of a This profoundly religious meaning is inherent in the sub­ Leiden miller, celebrated all this in his art. ject matter, but then enhanced by a kind of lofty visual pun­ How ironic that the Dutch monarchy today is active in ning-three trees that become like the three crosses of Golgo­ the pagan World Wide Fund for Nature, whose radical-envi­ tha, three thatched cottages likeithe triple portals of a Gothic ronmentalist campaign to return Mother Earth to her "pris­ cathedral, or the outstretched arms of the crucifix/windmill tine" state would immediately condemn, if carried out, half mentioned above-and always! illuminated by that sudden of the territory of the Netherlands to be sunk into the North shaftof celestial light. Sea! In so doing, Rembrandt was merely liftingto the level of The windmills werenot some merely picturesque feature universal art, a kind of social expression that had already of the landscape, but an absolutely crucial energy machine taken root in national custom., Over centuries, the millers that made this man-made system work. Since the low-lying adopted a kind of semaphore" and they would stop their polders filled with water whenever it rained, the Dutch had mills to set the sails in pattern� that served as newspapers, to devise a way to keep the water out of them. The wind, informing the entire countrysid� of an important event, such which is plentiful in Netherlands, turned the big sails; the as a birth, a death, or a wedding. Catholic millers during the turning sails turneda scooper inside the windmill. The scoop­ Reformation signaled by sail when and where a mass would er lifted the water from the polder and hurled it across the be held; during the last war, millers alerted members of the dike. Dutch underground to enemy movements. Rembrandtdrew and painted these remarkable machines in all their historical specificity. For example, the hollow Rembrandt and Leonardo da Vinci postmill (wipmolen) in the Washington painting is the proto­ The concern of Rembrandt ito paint and draw hymns of type of the Dutch drainage mill. It was the ingenious Dutch praise to man's struggle over wQter, links him across a centu­ solution to the serious technical challenge of adapting the ry and over a span of geograp� he never traversed, across post mill, earlier used for grinding throughout Northern Eu­ the Alps into northern Italy, td the person of Leonardo da rope, to a scoop wheel, a daunting problem because the Vinci, who died nearly 100 years before Rembrandt began whole body of the mill turned on its post while the scooper to study painting as a lad. wheel had to remain fixed in its basin. Leonardo da Vinci was a great engineer, a designer not only of locks, dams, dredging lmachines, "water ladders," The living image of God paddleboats , and countless other machines to bend the water­ Rembrandt did not begin theunique Dutch habit-initiat­ ways of Italy and France to hum� needs; he was the designer ed during the 80-year struggle for independence that culmi­ of whole great systems of water transportwith the potential nated in 1648 when the United Netherlands was recognized of redrawing the political as well as the physical map. In the as sovereign by Spain�f elevating the portrayal of the 1982 exhibition catalogue Leonardo e Ie vie d' aequa, issued national scenery to the status of serious painting. But he as part of the Milan celebrations of the 500th anniversary raised this to its highest level. And this is because the view­ of Leonardo da Vinci's arrival in that city, we learn that point that informs Rembrandt's landscapes is profoundly Leonardo was involved in the project to build a great canal biblical; whether man is present or not-and usually he is, linkingMilan to the Adriatic sea. which would have provided at least in the form of tiny figures in the landscapes-the the city with its own independeqtport capability, and shaken consequences of his actions is always there , "subduing the forever the economic stranglehold of Venice. This project earth"and making it fruitful, as mandated in the first chapter seems to have been conceived simultaneously, just before. of Genesis. 1490, with the better known Amo canal system, Leonardo's And so Rembrandt gives his loving attention, in draw­ mind-boggling project for a callal through Florence, Prato, ings, to the many varieties of farm buildings that were built Pistoia, and passing near Lucca ithat could have permanently upon the polders, according to the kind of agriculture prac­ allayed the threat of floods, powered dozens of "automated" ticed there, in turn depending on the kind of topography, the industries, provided cheap year-roundtransport for manufac­ soil, the degree of reclamation, and so forth . The French tured goods and raw materials, and revolutionized sanitation philosopher Descartes gave the Dutch achievement a typical- in the cities through which it pa$sed.

44 Books EIR September 28, 1990 Rembrandt's painting, "The Mill" (Widener Collection, National Gallery of Art, Washington). The windmill was the engine of national progress and Dutch ingenuity in holding back the sea; and during the Reformation, in Rembrandt's day, persecuted Catholics used the sails of their windmills to signal the celebration of a mass.

According to one of the essays in 1982 catalogue, left and right of the landscape? Leonardo was the first to systematically attempt to measure Leonardo wrote that water is the greatest single threat to the velocity of water in calculating provision of water by human life, exceeding even the danger of fire. If water left man-made conduits to various parts of Milan, as opposed to alone could be so threatening, when brought under man's the merely geometric methods of measurement which pre­ control it was one of the greatest civilizing forces. Rem­ dominated before him. He thus concerned himself with the brandt, without being an engineer, shared Leonardo's out­ problem of measuring a continuous quantity with discrete look on this question. units-a conceptual riddle which flows throughout all of his Many of Rembrandt's painted landscapes, unlike the ma­ creative work. Precisely this question preoccupied Leonardo jority of the drawings, are not portrayals of his native Nether­ in the domain of music. In painting, he showed how to cap­ lands. Even the drawings often depicted faraway scenes of ture the effect of continuous movement, by his use of con­ Italy which he could only have known through other works trapposto (spiral posture of the figure) and chiaroscuro (the of art, or he combined Dutch elements with these exotic replacement of sharp outlines with the juxtaposition of light settings. In the paintings, the flow of water, or if not water, and dark masses), in what is intrinsically a discrete medium. then of weather, is ever present, played off against the drama Not accidentally, the landscapes which appear in almost all of light and the fruits of man's building efforts. And as Cyn­ of his extant authentic paintings are filled with portrayals of thia Schneider underlines, within these titanic settingsRem­ waterways, often half-wild, half-tamed by man, and so pos­ brandt never failed to place realistic figures of ordinary citi­ ing a challenge. Behind the enigmatic expression of the Mona zens going about theirdaily business-an element which the Lisa lies a true engineering enigma-how did one join, in irreversibly darkened condition of the pictures has obscured fact, those two sharply different water levels glimpsed on the for the modem viewer.

EIR September 28, 1990 Books 45 �TIillInternational

WillFrance and Gennanypla y deputyshe riffin theGulf?

by Michael Liebig

British Prime Minister MargaretThatcher gave an interview simple choice: Either they �e themselves into sheriffs to the Swiss newspaper Neue Zurcher Zeitung on Sept. 14, deputies in the Anglo-AmeriCians' war, or they say "no" to in which she shamelessly declared that a "new world order" the Anglo-American war-mon.ering in the Gulf. Continental was coming into being through the Middle East crisis, and Europecan no longer dance at two different weddings. Faced that the "natural friends and allies," the United States and with this fatefuldecision , French PresidentFran�ois Mitter­ GreatBritain, had "taken over leadership" of this new order. rand, Italian Prime Minister Giulio Andreotti, and German Two days later, on Sept. 16, thereappeared in the London Chancellor Helmut Kohl seem to be twisting in the wind. Sunday Telegraph an article by Peregrine Worsthorne, the With all due understanding jfor the immense difficulties stepson of the greyeminence of British politics of the 1920s which such a decision entails, lit can simply no longer be put and 1930s, Montagu Norman. Worsthorne is today in the off. inner circle aroundThatcher. His articlepraised the Thatcher Following the summit m�ting between Presidents Bush policyof a "new world order" under Anglo-American leader­ and Gorbachov in Helsinki qn Sept. 9-a meeting which ship. Germany, Japan, France, and Italy are mere "wealth went badly for Bush-the Bptish and U.S. governments creators," who lack the "character" and "genius for leader­ massively escalated their pressure on continental Europe. ship" which "imperial values" had bestowed. On the other Already on Sept. 7, the EuropeanCommunity foreign minis­ hand, Great Britain, through its "anti-industrial education ters-with the exception of GreatBritain, of course-cate­ system" and its "gentlemanly high culture" had shown the gorically rejected any financialsupport for the Anglo-Ameri­ ability to still listen to the "voices of the past." Thus, Great can military deployment into Saudi Arabia and declared Britain can confidentlytake on the historical task of "building themselves in favor of a joint EC-Soviet initiative for a and maintaining a new world order," which w.ould protect political, non-military solution of the Gulf conflict. the northern industrial states in the face of the "threats from Shortly thereafter came the cudgel-like answer from the Third World," such as those seen at present in the Gulf. Washington, threatening a "dramatic worsening" in rela­ Worsthorne went on, "In the foreseeable future there will tions, especiallywith Germany. The British joined the Unit­ only be one superpower . . . the United States-and only ed States in suggesting that they would not sign the "two plus one Europeanpower able to give instant support-Britain." four" agreementon German reunification on Sept. 12, and TheAnglo-American Establishment is determined to un­ almost carried out that threat. U.S. Secretary of State James leash a war against Iraq. Every attempt at a diplomatic solu­ Baker and Treasury Secretary Nicholas Brady were dis­ tion of the Gulf conflict has been systematically sabotaged patched to Europe. Britain's diplomacy and press launched by London and Washington. Hectic efforts are under way to a barrage of anti-French propaganda. stage a "Gulf of Tonkin" incident in the Mideast which could On Sept. 14, there occurred in Kuwait what remains a then be blamed on Iraq. mysterious incident, in which I the Iraqi military supposedly enteredthe residence of the Frenchmilitary attache, although The pressure on continental Europe this has been vigorously denied by the Iraqi government. In this situation, the governments of continental Europe French PresidentMitterrand reacted to this by sending addi­ must make a hard decision. Paris, Bonn, and Rome have a tional ground-based, airborne, and seaborne armed forces

46 International EIR September 28, 1990 totaling over 13,000 troops to Saudi Arabia, and spoke of a government, which currently holds the chairmanship of the "logic which is leading to war." The next day, Chancellor EC Council. On Sept. 18, Italian Foreign MinisterDe Mi­ Kohl promisedU.S. Secretary of State Baker to immediately chelis proposedthat the EC and the WesternEuropean Union make available armaments and support services worth 1.6 (WEU) be merged. Western Europe, he said, must without billion deutschemarks, and a comparable sum in financial delay take on a "defense policy dimension." The EC special assistance to Egypt, Jordan, and Turk�y. The meeting of summit on such a "political union," to be held in November, EC foreign ministers on Sept. 17 resolved to expel all Iraqi must lead to binding decisions for the EC's capacity for military attaches fromEuropean Community member states, military action. This idea was also put forward by Kohl and and called for an air trafficembargo against Iraq. Mitterrand. Should we conclude fromthis obviously changed attitude However, there is one fundamental problem in accomp­ in Paris, Bonn, and Rome, that these governments, having lishing a merger of the EC and the WEU, namely, that Great given in to thepressure fromthe Anglo-Americans, are now Britain is a member of both organizations, therebyrendering become active and zealous assistants in the Anglo-Ameri­ it a priori impossible to have an independent European de­ cans' drive to war? The last word has yet to be spoken on fense policy. The aforementioned Thatcher intimate Pere­ this question, even though, as stated above, things cannot grine Worsthornehas already declaredthat a militarily united remain up in the airmuch longer. Europe would be "utterly useless," since "in a new world Bonn, Paris, and Rome are apparently trying to play order the readiness to apply force instantly is indispensable," along with the Anglo-American game in the Gulf, up to a and the mercantile EC would never be able to manage that. certain point. Bonn is giving the Americans war materiel, In summary, it can be said that the current diplomatic while France, Italy, Spain, and the Benelux nations are send­ tactic in Paris, Bonn, and Rome with regard, to the Anglo­ ing their own military forces into the Gulf region. But this is American war policy in the Gulf will not achieve its intended all billed simply as the carrying out of the embargo against goal of preventing war. Under conditions whereby the dy­ Iraq, and not as partof an offensive military operation against namic of events is being dictated by the Anglo-American Iraq. side, diplomatic tactics aresimply no longer enough. It must It seems thatWestern European diplomacy intends in this be made clear to the governments in London and Washing­ way to be present "on the spot," in order thereby to gain ton, in the spirit of de Gaulle, that Western Europe will not influence and to create a "controlled environment" which stand shoulder-to-shoulder with the United States and Great could have a moderating influence on Anglo-American war Britain in a neo-imperialist war a8ainst the Third World to plans. The hope is that, by means of this diplomatic tactic, the end of diverting attention fromdomestic economic col­ the possibility of a political solution of the Gulf conflict can lapse. De Gaulle never hesitated to say the same thing clearly beheld open. As a frameworkfor a political solution, the EC in the case of the U.S. war in Vietnam, and acted accord­ foreign ministers are proposing a "Conference on Security ingly. and Cooperationin the Mediterranean. " That geographic area is to extend from Morocco to Iran, according to Italian For­ A courageous voice eign Minister Gianni De Michelis in a statement on Sept. 18. Some, at least, are preparedto say what the governments A certain amount of queasiness is being clearly registered of continental Europe have so far not said. The Catholic in Washington and London regarding this diplomatic tactic. daily A vvenire, representative of one faction in the Vatican, The Washington Post has expressed concernabout the "limi­ published an incisive article on Sept. 19 by Middle East tation of the freedomto act" placed on the United States by analyst AlbertoMarian toni, which refutesthe Anglo-Ameri­ the presence of Western European troops in the Gulf. Even can public relations propaganda surroundingthe Gulf policy. more explicitwas the British military expertMax Hastings, "An old French proverb says that . . . when you want to who is close to London government circles. He demanded, kill your cat, you say it is rabid," he writes. "So, peoplewant in the form of an ultimatum, that France subordinate itself to to gain controlover energy sources belonging to others? Then Anglo-American command, since any other course would all means are permissible to humiliate the Arab world; all bring "chaos and disaster." PresidentBus h, for his part, stat­ means are permissible to accuse Saddam and to attribute to ed that the United States would "not wait for others" when him any heinous act and any ignominy. . . . decisions had to be made. "What would we have done in the place of SaddamHus­ sein and of his regime? Wouldwe have allowed the conspira­ An 'independent' defense policy? cy by the United States and England in the past 12 months A second aspectof the WesternEuropean reactionto the against this country to come to fruition? That the noose Anglo-American war drive in the Gulf, is apparently to uti­ around the neck of the Iraqi economy would tighten inexora­ lize the crisis in order to create a WesternEuropean military bly until asphyxiation?" In fact, the author concludes, "per­ capability outside of the NATO member states. This plan haps we would have done exactly what Saddam Hussein and was advanced by EC President Jacques Delors and the Italian his regime have done."

EIR September 28, 1990 International 47 Interview: Mohamed al-Mashat

Anglo-American Mideast occupation was 'preplanned'

The fo llowing interview with Iraqi Ambassador to the United propaganda campaign, their mass media campaign, it is al­ States al-Mashat was conducted by ErR correspondents Fer­ ways created out of the "blue sky," there is no incident. They nando Quijano and Joseph Brewda at the Iraqi embassy in created their incident out of the pretext of the human rights Wa shington on Sept. 12. business, to smear Iraq as an outlaw, and to speak against our President, in a very organized, meticulous, preplanned EIR: Mr. Ambassador, I was struck by a developing cam­ fashion. paign by the U. S. and British media against Iraq, six months It started slowly, but the real takeoff started in November ago or so before the U.S. move into the Gulf, particularly 1989. Out of the blue sky they started with Peter Jennings afterthe Iraqi execution of the British spy Farzad Bazoft in and Mr. [Charles] Glass. They made an ABC special pro­ March. There was the accusation made by the British that gram about supposed human rights violations in Iraq , the Iraq was secretly trying to make a nuclear bomb. This re­ human rights report, and all of this. They began to open up minded me of the propaganda campaign against Iraq in 1980 an archaic book, this fantastic claim that we used chemical and 1981, that was launched prior to the Israeli bombing raid weapons against our own citizens. They deliberately con­ against your Osirak nuclear research facility . I'm wondering fused the Iranian use of chemical weapons against Iraqi'citi­ if you could describe what your governmentfeared the U. S. zens during the war, with mop-up operations that we con­ or British were preparing. ducted against guerrillas and terroristsin Iraq who had helped al-Mashat: Well, I would go further back than Bazoft. As Iran, mop-up operations which we conducted following the a matter of fact, I would go to the point of the ceasefire war. They used Halapja as evidence, falsely claiming that between Iran and Iraq on the Aug. 20, 1988; the fact that Iraq we used chemical weapons against terroristsin Halapja, Iraq, came out the victor, and came out healthy and not destroyed, after the war. The American media tried to extrapolate this as the Israelis had planned. One has to bring in the Israeli thing. They showed the picture of the Iranian massacre at question, because the Israelis wanted to destroy Iraq. That Halapja, conducted during the war, and claimed that Iraq was made clear by how they helpedIran during the war. They was responsible, and was using chemical weapons against were hoping that either Iraq's existence would be finished, its own people. It was established by the Pentagon that it or the war would continue forever, until the Iraqis were de­ was the Iranians who used cyanide at Halapja. We had no stroyed. And so when Iraq came out neither destroyed, nor cyanide. the loser, but came out the victor-plus, Iraq in the meantime The campaign went into higher acceleration with the exe­ developeda new deterrence, our missile-that was the begin­ cution of the spy, and the hysteria around the so-called capac­ ning of the big conspiracy against Iraq . And that was the itor. The U.S. governmentcould have said to the company beginning of this plan, of preparing the atmosphere, soften­ not to export the capacitor to us. Why plant someone in the ing the public, as a prelude to war. That was the Israeli company from the FBI or the CIA to appear as a foreign sales regional plan, because they were preparing the atmosphere manager? The capacitor has many uses. It can be used as a as a prelude to an attack on Iraq. nuclear bomb trigger, but also for laser research and for On the American side, they went along with it, at least rocket separation. We wanted it for laser research. The in some quarters . I wouldn't brand the entire administration, charge that Iraq is building a nuclear bomb is a big deception. but some departments in the CIA, in the secret services. They We are signatories to the Non-Proliferation Treaty. Our facil­ worked on this plan in a clandestine way, by, number one, ities are subjected to continuous and regular inspection by sending emissaries to the Gulf to frighten the Kuwaitis, the the International Energy Agency. So there is no way that we Saudis, and the Gulf people-this we know-and to set in could develop nuclear weapons, even if we wanted to. And motion a plan to destabilize Iraq. And if you survey their thenthe question of the super-gun-all of this nonsense.

48 International EIR September 28, 1990 And then the overblown and fabricated propaganda ftictedon them for decades now. Iraqrepresents a new hope. against Iraq when we made the warning against Israel be­ That explains why we very much wanted to avoid war, but cause Mr. [Rafael] Eytan-the principal Israeli Air Force we want to have just peace. figure responsible for the attack on Iraq in 1981-said on In order to respect a Security CCouncil resolution, it has April 1, "We know how to take care of Iraqi missile and to be implemented with the same sqmdardas all other resolu­ industrial complexes as we did in 1981 ." Our President came tions, not a double standard. So o� President's initiative on out the next day with his warning, because we do not want the Aug. 12 was that the Israelis must withdraw from the have an exchange, we want peace, in order to develop our West bank and Gaza as called for in U.N. Resolution 242. country. The U. S. must respect this Security Council resolution, from But what happened in all the mass media here, except the very council that issued this positionagainst Iraq impos­ very few? They omit the first part of that warning-"that if ing these sanctions. Why not put s�ctions on the aggressor Israel attacks us by nuclear weapons," that "then we will that continues his aggression in the region: Who continues burnup half of Israel with chemical weapons"-they always to occupy the West Bank and Gaza, the Golan Heights, and omit the first part. They say that Iraq is threatening to burn Lebanon? who continues to liquidatethe Arabs and thePales­ up Israel.This has all heightened the feeling of the Americans tinians? who continues to divide the world community, and against Iraq. continues to be an outlaw? And we said also thatthe Syrians And then, when we took military action against Kuwait, should leave Lebanon. That's how we can establish peace the master plan of subjugating the rising Arab went into once and for all. Then we will talk about the question of action. This is what I call "neo-imperialism." The U.S. de­ Kuwait. ployment was done under the pretext of a false threatthat we The only way to solve this crisis is to implement all are not satisfied by taking action against Kuwait, but were Security Council resolutions fairly. America should take the threatening Saudi Arabia. This is the biggest deception in lead in this, because then it will be recorded in history: that history. We had excellent relations with Saudi Arabia. We the Bush administration solved the Arab-Palestinian, Pales­ had a non-aggression pact with Saudi Arabia. Saudi Arabia tinian-Israeli question on ajust basis. The Arabs want peace, was never in history part of Iraq. Had we harbored military and Iraq wants a just peace. For thisreason , Iraq tookpart in designs against Saudi Arabia, we could have gone right the Arab summit conference in Fez, Morocco in 1982, at throughon Aug. 2, when we went into Kuwait, because there which all Arab heads of state accepted the security of all was no American soldier there until Aug. 8. Not only could states in the region, providing that Israel withdraws within we have gone into Saudi Arabia through Kuwait, but we its 1967 borders. could have made a multi-pronged attack-we have a 1,000 There is another thing that the Americans should know. kilometers of border with Saudi Arabia. But for what? We The American governmentactually destroyedthe Arab solu- . have no reason to be in Saudi Arabia whatsoever. tion to the Kuwait problem. Before we took military action, So the Americans made this plan to occupy the region for the U.S. supported Kuwait in its refusal to respondto Iraq's two purposes. One, is to implement the Israeli objective of legitimate demands. After we took military action, theU.S. destroying Iraqi infrastructure. Israeli policy is to destroy destroyed the Arab plan to have a mini-summit at Jeddah, any Arab country that has any potential, and to have intra­ Saudi Arabia on Aug. 6. The summit was to have beencom­ and inter-Arab wars, and to have schisms and destabilizations prised of Iraqi President Saddam Hussein, King Hussein of of every countryin the region. This is part and parcel of their Jordan, King Fahd of Saudi Arabia, President Mubarak of plan to have hegemony in the area and to build a "Greater Egypt, and the head of state of Yemen. Suddenly, after the Israel." Unfortunately, the Americans are willing to sacrifice plans for the summit had been agreed to, U.S. Secretary themselves for an Israeli expansionist policy. of Defense Richard Cheney arrived in Saudi Arabia, and The American part of it is to control the oil; as I said, a prevented the summit from occurring. This is further evi­ new form of neo-imperialism is coming into the picture. Now dence of a preconceived plan to occupy and control the area. they have occupied Saudi Arabia-the Holy Land-they I would also say that partof the motivation for this is the have occupied Qatar, and so you can see that this was a problem of a possible recession in your country, and the preplanned, premediated, well-orchestrated plan against the budget deficit. So in order to get support of the Americans Arabs. Who are the people that are supporting them? The for the budget, and thinking that this would overcome the puppet governments of the Gulf, Mubarak, Morocco, and possibility of recession, the American governmenttook this Syria. Syria, which during the Iran-Iraq War supported Iran, action. and which is still on the U.S. government's terroristlist , the The irony is that three years ago, you re-flaggedKuwaiti U.S. is now embracing. ships in order to have the flowof oil,and you sent some war But the Arab masses are on the Iraqi side. And the Arabs ships into the Gulf in orderto guarantee theflow of oil from would like to have justice. The Arabs of today are not the Iraq and Kuwait. Today, the U.S. and their troopsare block­ Arabs of yesterday, and no longer will accept injustices in- ing the flow of oil by your blockade. Who is sufferingfrom

EIR September 28, 1990 International 49 related political preparations should also be dealt with in accordance with the recognized basis, and principles, Iraq's proposed taking into consideration Iraq's historical rights over its territory and the choice of the people of Kuwait. The comprehensive implementation of this proposal should take place in a Mideast settlement priority order, beginning with the first occupation or so­ called occupation-hence, beginning with the implemen­ tation of all the United Nations Security Council resolu­ On Aug. 14, Iraqi President Saddam Hussein proposed tions and all cases up to the most recent one. The same that all outstanding territorial disputes in the region, in­ measures that were adopted by the Security Council cluding the Iraqi occupation of Kuwait, be solved compre­ against Iraq should be used against whoever refuses to hensively. Whatfo llows are excerpts from that statement. comply with these arrangments. 2) In order to reveal the truthof matters to international 1) Any withdrawal arrangement should be based on one public opinion so that it may judge objectively, away from principle. This includes Israel's immediate and uncondi­ American wishes and pressure, we call for an immediate tional withdrawal from the occupied Arab territories of withdrawal from Saudi Arabia of the American forces and Palestine, Syria, and Lebanon, as well as Syria's with­ theiraccompl ices. The U.S. forces should be replaced by drawal from Lebanon, the withdrawal between Iraq and Arab forces whose size, nationality, mission, and deploy­ Iran, and the special arrangements for the situation in ment would be determined by the Security Council, assist­ Kuwait. Any military arrangement on the time and the ed by the United Nations SecretaryGeneral .

this?The American consumer is suffering. Because, I would neously: You have to have wealth, commensurate to thesize like to remind you that the price of petroleum was $18 a of the country and population; you have to have a trained barrel. We asked OPEC to increase it, and it was increased human infrastructure; and you have to have modem, non­ a few weeks before the crisis of Aug. 2, to $21 a barrel, and corrupt leaders. Fortunately, in Iraq we have these three we settled for this. Our policy regarding oil is to have stable conditions existing simultaneously. prices-fair to the consumer and fair to the producer. Our If you take Iraq, and see the wealth of Iraq, we not only policy is known in OPEC. In fact, we had a big fight with have the second-largest proven oil reserves in the world, after the Shah in the 1970s because he wanted to jack up the price. Saudi Arabia, but we have huge depositsof phosphate, which We are against jacking up the prices. We want to sell our oil we have already started to develop. We have huge deposits to the West. We don't want the West to look to alternative of sulfur, as a mineral, not only as a byproduct of oil; and sources of energy. Now the price is $32 a barrel because of then, last but not least, for these 17 million people: Iraq is the American action. This is the irony of thesituation. Mesopotamia. It is agricultural land, the land of the two rivers. We have water resources. All of this fabulous wealth EIR: Could you describe what the Iraqi infrastructural proj­ for 17 million people. So we have that condition. ects are , and what the Iraqi idea is for theArao world in terms We have the human infrastructure. We don't importpeo­ of development, industry, and so on? ple to run our factories; we have Iraqi people. Sometimes, al-Mashat: We went through a development plan that no we work with foreign experts,. yes, but the Iraqi people are other Third World country did, prior to the Iran-Iraq War. doing the development by themselves. We have eradicated We believe in sharing our wealth, and we translate thatinto illiteracy in our country. Sinc::e 1978 we made schooling action. As a matter of fact, we have given Third World mandatory for every child of six years of age. We have 12 countries, in terms of a percentage of GNP, more than any universities, aside from technical institutes. Education is free country in the world-all before the Iran-Iraq War. During from primary school to the Ph.D. level. So we have the the Havana Non-Aligned conference of Nov. 4, 1979, for peopleundertake the developmentby themselves. This is the example, we allowed developing nations which had oil con­ second condition. tracts with us the right not to pay the higher prices which had The third condition is that you have to have leaders who been agreed upon by OPEC, from June 1 to the end of that believe inusing modem science and technology for the devel­ year. opment of their country, and who are not corrupt. They are If you had visited Iraq before the war, you would have not using their money by putting it in Monte Carlo, or buying seen that Iraq was a beehive. For any country to have real yachts, or investing it for their own personal pleasure and potential, in my opinion, three conditions must exist simulta- conCUbinage. We have clean leaders.

50 International EIR September 28, 1990 So if you survey any other Third World country, you of our publication has proposed that the only basis for joint rarelyfind these three conditions existing simultaneously, as interest, for lasting peace in the Middle East, is through is the case in Iraq. massive development projects to the advantage of Israel, Now the fact is that we have suffered eight years of war, Palestine, and the Arab world. All tqe U.N. resolutions must and were attacked by Israel in an unprovoked way in 1981. be implemented, the creation of a Palestinian state, and so This has made us learnthat we have to have deterrence. That on; but without some concrete interestwhich binds bothsides is why we have developed our missile and have developed together, there would not be long-lasting peace. We'd like chemical weapons. We have no biological or nuclear weap­ your comments on that. ons, nor do we have any intention to have them. Our policy a1-Mashat: Well, we had this plan in our mind before this is that all mass destructive weapons in the area should be crisis started, and we still have it. And I think it is in the banned. We do not accept that Israel has nuclear,biological , best interests of the Iraqis, Arabs, the United States, and and chemical weapons in the area, and no one says anything everybody in the region tohave peace. Warwill get nowhere. aboutit , yet everyone is clobbering Iraq because we have the War is against our interest. Instead of having all of these poor man's bomb, the chemical bomb. resources going into this defensive business, we would like Afterthe ceasefire with Iran on Aug. 20, 1988, we wanted to put it into construction, and massive projects-not only in to reconstruct the country from the ravages of war and to Iraq, but in all Arab countries. You have to have the political restart this development plan. Naturally, we started with a will in the West and the United States to have some sense of huge debt. In order to reconstructour country we needed the justice, for your own interest. Because the Arabs are cultural­ revenue from our oil. But then we faced the beginning of ly oriented to the West. the conspiracy of the al-Sabah family, the former rulers of It was our policy since I arrived here a year ago to have Kuwait. They were bent on destroyingthe economy of Iraq more trade with the United States, to have more American instead of helping Iraq-even though Iraq protected them corporations working in Iraq. We used to buy 25% of all the during the Iran-Iraq War. They began to overproduce. The rice exported from the United States. We would like to have benchmarkof oil prices agreed to over a yearago was $18 a American technology. barrel, but the Kuwaitis and Emirates began to overproduce, We hope that people in the United States realize that what in some cases doubling their production, in order to force a they aredoing is against their immediate and futureinterest­ drop in the price of oil. There was no need for the Kuwaitis not only with Iraq but all Arab countries. Because we have to overproduce-they have a minimum of $400 billion in­ the support of the Arabs. And we hope, we pray to GOd, that vestments abroad. They earnmore income fromthose invest­ we do not come into armed conflict withthe U.S. I want to ments than from all their oil income per day. So when they stress here that such an armed conflict is in the hands of the were bent on overproduction, and cheated when they give United States. It is their decision to have war,not Iraq's. We their word to OPEC that they were going to uphold their are working to have peace. We made an initiative for peace. quota, we suspectedthat there was something fishy in their But if war comes, believeme , the U�S. will be the loser, and insistence on overproducing and violating the quota. They not only immediately, but in the long run as well. And this were able to force a drop in oil prices from $18 a barrel to is a message I would like to send to Americans, through your $11 a barrel. For every dollar droppingbelow $ 18, Iraq loses gracious offer to talk to Americans through your magazine. $1 billion a year, so when it reached $ 11, we were losing $7 We wanted peace, we wanted to negotiate. We wanted it to billion a year-atthe time when we had to service our debt be recognizedthat we no longer accept being squashed. We and to reconstruct our country . want to have justice, the very justice that was enunciated by Furthermore, the Kuwaitis have occupied part of Iraq, all Security Council resolutions on the Arab-Israeli conflict. and built an oil well to siphon oil fromthe southern Rumelia All Security Council resolutions pertaining to the Arab-Israe­ oilfield in southern Iraq, which they did with a slanted well li conflict have to be implemented in order to have peace, extended into the heart of the oilfield in our land. After all and throughfo llowing one standard,not a double standard­ the negotiations failed, we took military action. And we are not by insisting on blockading Iraq, and beating the drums not the first country or the last country to do that when a of war against Iraq, and refusing to negotiate unless Iraq national interest was at stake. withdraws first. No such sanctions have been imposed So, our plan is to develop our country. We want to catch against Israel, which is still defying all Security Council up with the modem world, we want to use our resources for resolutions pertaining to it to thisday . the welfare of our people, and help other Arabs, and you can And that way, we can have peaceand stability in the area, see that even at difficulttimes we have always helpedthe Ar­ and you will have a flourishingeconomy. abs in various ways, and the Palestinians of course. And we would like to help the Third World, too. That is our policy. ElK: Mr. Ambassador, several weeks ago Secretaryof State Baker testifiedbefore the Congress where he proposed anew EIR: Mr. Ambassador, Mr. LaRouche, who is the founder, security arrangement for the Persian Gulf. He said the U.S.

EIR September 28, 1990 International 51 Council, by the V.N. This is the security that would be fair to everybody. The security arrangement spoken about by Baker is a camouflage for the occupation of the Holy Land and the Arab land, to control the oil. It is a false control, Plan to occupy Saudi because as I said before, we could make arrangements to Arabia is an old one have fair oil prices that would benefit everybody. We are against jacking prices too high, because we want to sell the oil, and make it cheaper than other sources. This is our offi­ A column by former V. S. Ambassador to Saudi Arabia cial policy. We don't want you to develop alternativesources James E. Akins in the Sept. 12 Los Angeles Times of energy. reveals that a V.S. plan to occupy the Saudi oil fields So all of this is false pre.exts for this planned military was planned as farback as 1975. Iraq has maintained action in the area. It will not work; believe me, it will not that seizing control of the Persian Gulf oilfields was work. The previous arrange�ents, like CENTO, the Bag­ one of the primary motivations for Bush's decision to hdad Pact, did not work and it collapsed. Nowadays, the send V.S. troops into the region. possibility of collapse is much more thanbefore , because the According to Akins, "In January 1975, the neo­ Arabs have awakened. And if you think you have security conservative publication Commentary carried an arti­ with some puppet government, this is an illusion, a mirage. cle proposing invasion of Saudi Arabia as a solution to It is unfortunate, it will not work; with all the power you the eternal Arab problem and to our own economic bring to bear, it will not work .. No longer will nakedforce be problems. A flurry of similar articles followed that the arbiter. It never was before, even at the time when the proposed occupying oilfields on the peninsula from Arab was not as awakened as today. Kuwait to Dubai, pumping them dry, and in 50 years or so returningthe properties to their original owners. EIR: Iraq has played a crucial role in attempting to maintain "I was Ambassador to Jeddah at the time, and I was the territorial integrity of Leb�on. And for this there have appalled by the cynicism and the immorality of the been many attacks and thebl�ing of Iraq for much of what suggestion .. .. has happenedthere . "I suggested that anyone who would take this prop­ a1-Mashat: Those who claim this are making a false state­ osition seriously was a madman, a criminal, or a Soviet ment. We supported the legitimate government of Michel agent. Henry Kissinger, the secretary of state, had an­ Aoun in Lebanon when it was appointed by Amin Gemayel, other view, and my career in the Foreign Service did because it was appointed ac<;ording to their Constitution. not extend much beyond that point. . . When one legitimate Arab government asked for help, we "Nevertheless, there are those in the Bush adminis­ gave it to them.But then, wheq the tripartite Arab committee, tration who will point out that conditions are more which had been delegated by the Arab summit to solve the propitious now than in 1975 for at least a de facto Lebanese question, asked uS to stop helping them, we military occupation of the Saudi oilfields. . . . stopped;whereas the Syrians !p1dIsraelis have been destroy­ "Those in and out of the V. S. government-includ­ ing Lebanon for the last 15 years, and are still occupying ing Kissinger-who were serious about taking over the their country. oilfields in 1975 surely will argue that we should not let these extraordinary resources go, now that theyare EIR: It appears that Syria and Israel continue to do that. in our control." a1-Mashat: That's right. But, to conclude, the problem is that we as Arabs do not feel that there is V. S. policy in theMiddle East, but that there is an Israeli expansionist policyimplemented by the V . S with might create something like NATO in the region, perhaps a the American taxpayers' money. Through the Israeli lobby permanent base in Kuwait once seized from Iraq, a perma­ there is control of V. S. policy in the area to the detriment of nent base in Saudi Arabia, apparently something like CEN­ the American taxpayer. It is high time for the Americans to TO of the previous period. There is a certain concern in wake up. Europe and Japan that this arrangement would be linked to NATO out-of-area deployments into the region. What is Ir­ EIR: And the British role? aq's view of this proposal? a1-Mashat: This is the last breath of the British empire. a1-Mashat: We would not accept that at all, because this is They wanted to reestablish controlby enhancing and support­ a new form of a new imperialism. Security could be estab­ ing and pushing America to take this action. It is tripartite: lished in two ways. First-which is what we prefer-is be­ Israeli, British, and American, together with the conspiracy tween and among the Arabs, and supported by the Security of the al-Sabah family.

52 International EIR September 28, 1990 had been sponsored by the Syrian regime, dating back to his Profile : Hafez aI-Assad efforts immediately after the 1975 outbreak of civil war in Lebanon to run a kidnaping ring there. Abul Abbas's partner in the ring, which presaged later hostage affairs, was Monzer al-Kassar, the son of Syria's ambassador to India, an interna­ u. s. cozies up to tional narcotics trafficker and a business partner of Syria's Vice President Rifaat aI-Assad. narco-terrorist • the explosion on Dec . 21, 1988, while flying over Lockerbie, Scotland en route from Frankfurt and London to New York, of Pan American Flight 103. All 270 passengers by Jeffrey Steinberg and crew, including nearly 200America ns, perished. Within weeks of the bomb attack, both the CIA and British MI-6 When Secretary of State James Baker III traveled to Damas­ knew definitively, according to published accounts, that the cus, Syria in September to confer with America's newest atrocity had been carried out by a Damascus-based group, Gulf "ally" Hafez aI-Assad, the Bush administration was the Popular Front for the Liberation of Palestine-General spitting on the graves of hundreds of Americans who have Command (PFLP-GC), headed by a captain in the Syrian beentortured or died at the hands of Middle Easternterro rists Army, Ahmed Jibril. According to one account preparedby over the past decade. an investigator for PanAm and releasedto the public by Rep. The Alawite regime in Damascus is the biggest single James Traficant (D-Oh.), Syrian dnlg smuggler Monzer al­ sponsor of terrorismdirected against American citizens. Now Kassar played a pivotal role in the planting of the bomb thisregime has been designated in George Bush's "new world aboard the flight, providing Jibril's men access to a team of order" as a leading satrap in the new PaxAmericana-in Dep­ smugglers infiltrated into the ground crew at the PanAm uty Secretary of State LarryEagleburger 's words, "a force for hangar at Frankfurt Airport. stability in the easternMediterranean ." Since the major news media seem to have amnesia on this subject, let us recall the As for Bush's 'war on drugs' • following "stabilizing" actions by the Assad clan: Al-Kassar's alleged role posed an embarrassingproblem • the April 18, 1983 car bombing of the U. S. embassy in for the incoming Bush regime. Since about May 1986, al­ Beirut, Lebanon, in which the entire American team handling Kassar, whom the CIA listed as a KGB agent as well as an the Middle East was murdered, along with scores of other intimate of the Assad family, had been a secret agent for embassy officials. According to sources familiar with the the White House, ostensibly helping negotiate the release of officialprobe of the bomb attack, a team of Iran ian-sponsored American hostages in Lebanon. terrorists, including an American fugitive David Belfield, The al-Kassar role underscored another piece of nastiness carried out the bomb assault, under the immediate supervi­ in the Bush regime's embrace of Assad. DEA fileslisted al­ sion and logistical direction of Syrian Army officers opera­ Kassar as a major internationalheroin and hashish trafficker, ting out of the occupied Bekaa Valley of Lebanon. with dope convictions in England and France. The Syrian • the Oct. 23, 1983 car bombing of the U.S. Marine regime was known to be pumping an estimated $1 billion a compound in Beirut, which resulted in the deaths of 24 1 year worth of heroin into the United States from its poppy soldiers. Within days of the bomb attack, the Reagan White fields and laboratories in the Bek� Valley area of occupied House was in possession of solid evidence that this second Lebanon. Bekaa Valley opium production has reportedly mass atrocityin six months had been staged out of the same skyrocketed under Syrian Army prptection; meanwhile, for Bekaa Valley Syrian Army-controlledterritory by terrorists the past two years the Bush administration has ordered DEA backed by the Assad regime's logistical expertise. documentation of Syrian dope smuggling suppressed. • the October 1985 hijacking of the Achille Lauro cruise In the Bush administration's embrace of Great Britain's ship in the Mediterranean by four terrorists from the Syrian­ "balance-of-power" games, the one price it appears that sponsored Abul Abbas Palestinian Liberation Front. One Washington is prepared to pay fOl! the aid of Damascus in Jewish-American, 69-year-old Leon Klinghoffer, was shot crushing Saddam Hussein is Syria's annexation of a once­ and thrown overboardin his wheelchair. In a supreme act of sovereign nation, Lebanon. hypocrisy, the Anti-Defamation League, leaders of the According to one experienced d,plomat, one of the major "amen comer" for the Bush Gulf intervention and the rap­ topics of Secretary Baker's talks with President Assad was prochementwith Damascus, set up an anti-terrorismfo unda­ the prospectof Syrian terror squads· killing Saddam Hussein. tion in Klinghoffer's name. While the Reagan administra­ If that proves to be the deal-and it may take years before tion's attention was riveted on Libya's role in the Achille the truth comes out-then the Bush administration will have Lauro terror attack, both the CIA and the Drug Enforcement hired the biggest murderer of American civilians, as a covert Administration obtained detailed evidence that Abul Abbas contract murderer.

EIR September 28, 1990 International 53 being used up as the years pass because of erosion and the lack of fertilizers. Sometimesl there is too much rain and at other times, the rain is cruelly absent. Diseases can attack Pope in Mri ca seeks your crops and your livestock. The compensation you get for the products of your fields is not always proportional to your dialo ue, development work and to your needs. The international environment is g unfavorable to you. Famine �as struck your country." The Pope appealed to the internati�al community to give human­ by Maria Cristina Fiocchi itarian aid in times of crisis and to pay a "fair price" for poor countries' products. Peace, religious tolerance, and economic development: John Paul II takes much to heart the fate of Africa, which These were the recommendations made by the Pope during seems more and more crushed by today' sbrutal neo-colonial­ his seventh pilgrimage to the African continent, in Septem­ ism. Since 1980, per capita income has fallen dramatically, ber. Aboard the airplane which carried him from Rome to at the rate of some 2.6% per year. Infant mortality is the Dar es Salaam, capital of Tanzania, John Paul II told the highest in the world, while the average lifespan is the lowest. press: "I will not launch anathema or excommunication The list of evils does not stop there. Of a population of against those who make war, but I do declare that war is an 600million inhabitants, 35 milllionare political or economic evil. War has always produced more evil than good. refugees. "Many things in history,"'he continued, "have been re­ The horrorof AIDS is spreading like wildfire. According solved by war, but war always brings more violations of to World Health Organizationfigur es, in 1988 some 3 million human rights and more evils than benefits and solutions." persons were infected with the AIDS virus. In the capitals Referring to the Persian Gulf, he added, "We must do every­ of the three countries visited Iby the Pope , Dar es Salaam, thing possible to avoid a war outcome in the Gulf." Bujumbura, and Kigali, 30% of the sexually active popula­ The Pope extended this invitation to dialogue to the Mus­ tion is infected. In some areas aroundLake Victoriathe figure lims, who arein the majority in Tanzania. When he met the reaches 40% . In Rwanda, 3$% of deaths are ascribed to leaders of this faith in St. Peter's Church in Dar es Salaam, AIDS. The drama is accentua� by the inadequacy of medi­ the Pontiff stated, "The dialogue between Christians and cal and sanitation facilities. Thb Popespoke of a truepandem­ Muslims takes on ever-growing importance in today's ic, which can be stemmed only by a response that takes into world." The Christians and Muslims of Tanzania, said the account the medical, human, cultural, ethical, and religious Pope, "may surely build together a society which conforms dimensions of life. "The AIDS epidemic," he said, "requires to the values taught by God: tolerance, justice, peace, and an unprecedented effort of internationalcooperation by gov­ concern for the poorest and weakest. I hope that the two ernments, the world medical and scientific community, and religions can work side by side to guarantee that these values by all those who may exert intluence on developing a sense and the right to religious freedom are backed up by a civil of moral responsibility within society. " law , a safeguard of true equality among all the citizens of The last leg of the Pope's tour was to Yamoussoukro Tanzania." in Ivory Coast, where he dedicated the "St. Peter's of the John Paul II has always favored encounter between the Savannah," the grandiose basilica built by the aged President Catholic Church and Islam and has never neglected, during Felix Houphouet-Boigny. Many criticisms have been leveled all of his trips abroad, to meet with local spokesmen of the from all sides against the impdsing project commissioned by Muslim faith. Today the Gulf crisis, and the danger that war the 85-year-old President. Some have called it a thoughtless might break out, and hence the specterof a religious outbreak act of megalomania, a "slap in the face of the poverty" of of Islamic fundamentalism, form the framework of the papal Africa, as if the Africans don't have the right to build and journey into black Africa. enjoy the beauty of a great wotk of art. John Paul II is imploring peace and launching a last­ Nigerian Cardinal Francis Arinze answered the criticisms minute appeal to the rich nations that they aid the peoples of by saying, "Africa is happy td have such a place to worship less favored nations to become the true protagonists of their God. We Africans have our poor, our sick, our homeless, own development. Speaking to youth, the Pope recalled the and our refugees. But these Same Africanswho suffer,recog­ miseries of Africa: poverty, unemployment, racism, the se­ nize the value of giving to God the best of what they have. duction of false messiahs. He called upon the ruling class to They are conscious of the fad! that nothing is too costly or use the aid, scant though it be, that arrives from abroadfairly too beautiful to offer to God.", And he concluded: "An Afri­ and unselfishly. can may not have a beautiful ' house, but he rejoices to see In Rwanda, he met with peasantsin Kabgayi on a plateau that God possesses a splendid dwelling like this marvelous a mile high. There the Pope took on the problem of Africa's church, which is a sign that the Gospel of Jesus Christ has agriCUlture: "The soil you cultivate," John Paul II said, "is put down definitiveroots in African soil."

54 International EIR September 28, 1990 Is a 'third force' pushing a bloodbath in SouthAfr ica? by Jeffrey Steinberg

On the eve of the first White House visit by a President of If, as many in South Africa now fear, a full-scale push the Republic of South Africa on Sept. 24, the Johannesburg for such manipulated civil waris under way, one prime sus­ areahas been hit with a rash of incidents of blind terrorism. pect in the effort is Lonrho chairman Tiny Rowland. As EIR The incidents have prompted South African political leaders documented in its last issue, Rowland and Lonrho played a from all sides of the political spectrum to denounce the at­ pivotal role in instigating the Persian Gulf crisis by running tacks as the work of an unidentified "third force" seeking to critical features of the economic destabilization of Iraq's Sad­ engulf the entire southern Africanregion in a bloodbath. dam Hussein. In the most savage incident, on Sept. 13, a gang of un­ Within southernAfr ica, Rowlandis notorious as the chief identified blacks boarded a commuter trainrunning between architect of British colonial policy. A Lonrllo subsidiary, the Jeppe station in Johannesburg and the black townships, Defense Systems Ltd., made up of �'ex"-British SAS com­ and began indiscriminately murdering passengers with mandos , has been implicated in the assassination of a top spears , machetes, and knives. When the train arrived at the leader of the Mozambique resistance organization Renarno next station, a second armed group was waiting on the plat­ and the attempted takeover of the group, while simultaneous­ form to continue the massacre of fleeing passengers. Both ly training "counterterror" teams for the Frelimo regime in teams of attackers then vanished into the crowd. Maputo, the capital of Mozambique. When a recent coup The incident bore the imprint of a professional killer attempt in Nigeria failed, theplotters were reportedly airlift­ squad. Supporters of the two major rival black political ed out of the country on a Lonrho corporatejet. movements, the AfricanNational Congress (ANC) and Inka­ According to a recentlypublished expose by former Mos­ tha, were killed in the massacre, which was followed by a sad agent Victor Ostrovsky, the Israeli intelligence service string ofblind terrorincidents . For a week prior to the Jeppe was hired beginning in 1984 to train certain South African attack, leaders of the ANC Walter Sisulu and Nelson Mande­ security units. Segments of the Mossad have been implicated la, and its supporters like Archbishop Desmond Tutu, had recently in the training of assassination squads deployed by beencharging that a "third force in the countrywas fomenting the Medellin cocaine cartel in Colombia, which have been chaos, possibly with a view to creating a climate for a coup implicated in blind terrorism aimed at plunging the country against Mr. De Klerk's government." Despite an intense into chaos. powerstruggle with Inkatha, the ANC leaders acknowledged that the source of these blind terror attacks was not Inkatha. Power struggles and economic devastation The big question is whether the terroristattacks are aimed The apparent effort to uncork uncontrolled violence in attriggering an uncontrolled outbreak of political, tribal, and the Republic of South Africa is superimposed on a political racial conflict along the lines of the Thirty Years War that situation already complicated by intense political and para­ engulfed Europeduring the 17th century . military struggles between rival black movements, and a As the events in the Persian Gulf have demonstrated, worsening economic situation. a powerful faction, centered out of London, is advocating According to officials of the South AfricaFoundation in North-versus-South warfare and the decimation of the Washington, D.C., when President Willem De Klerk meets darker-skinned populations of the Southern Hemisphere. with President Bush on Sept. 24, he .will probably ask Bush British royal household spokesmen such as Peregrine W orst­ to help lift the five-yearban on international credits to South home have been filling the pages of the British press with Africa. That ban has virtually shut down all non-essential warnings of a demographic invasion of Europe from the imports , and has caused absolute zero growth in the crucial South, unless radical populationreduction measures are tak­ manufacturing sector for half a decade. The constriction of en . The sarne British-centered circles advocate a revival of industrial growth has hit hardest at the black population classic 19th-century imperialism, including the grabbing up which predominates in the industrial! work force. Rising un­ of raw materials fromthe devastated future zones of conflict. employment has triggered a cycle of povertywithin the black

ElK September 28, 1990 International 55 townships which fuels the potentialfor outside manipulation of violence. In mid-July, Inkatha leader Mangosuthu Buthelezi, the chief of the Kwazulu tribe, announced that his political Gaviriajo ins Bush's movement, traditionally based in the Natal province, was launching a nationwide organizing drivein all the concentrat­ ed areas of black population, regardless of tribal concentra­ 'Three Stooges' tions. The announcement was widely read as an effort by by Valerie Rush Buthelezi to challenge the ANC and its recently freed leader Nelson Mandela's claim of hegemony over the black majori­ ty in South Africa. Colombian President Cesar Gaviria Trujillo has aligned his The organizing drive by Inkatha into the Transvaal region nation with the Bush administration's policies vis-A-vis the almost immediately triggered black-versus-black fighting, Middle East, while mouthing the same diatribes against na­ especially in the townships surroundingJohannesburg . Over tional sovereignty one is accustomed to hearing from Henry the past few months, an estimated 800 people have been Kissinger. At the same time, the Colombian head of state has killed in that struggle. During the previous year, several obscenely embraced the British-inspired" freetrade" ideolo­ thousand people were killed in the Natal province, largely as gy issuing from Washingtonj an ideology from which he the result of ANC assaults against Inkatha residential and has never distanced himself despite his pre-inaugurationtalk work areas. about the need for an lbero-American "third way" free of It is almost universally acknowledged that some elements U.S. control. within the South African security forces have thrown their Gaviria's entrance into tIle Bush league was unveiled supportbehind the Inkatha organizing drive in the Transvaal, during a four-day trip to Mexico Sept. 16-19, his first post­ at times providing support to Inkatha members when they inauguration trip abroad as President. Gaviria now joins Car­ got into battles withANC cadre.It is likewise acknowledged los Andres Perez of Venezuela and Carlos Salinas de Gortari that the ANC has increased the flow of weapons into the of Mexico, as one of Georg� Bush's "Three Stooges" in country from caches located outside the country. Reports lbero-America. from the region also indicate that some of the funds raised In a Sept. 17 interview with the Mexican daily Excelsior, during Mandela's recent trip to the United States have gone Gaviria declaredthat the concept of national sovereignty was to replenishingthe armscach es. outmoded and had to adjust to a "new reality": "Countries However, these ANC-Inkatha struggles appear to be a must accept that they must advance through integration, and different matter than the recent isolated incidents of profes­ move toward the politics of large blocs, which is where the sional-style killings. President De Klerk has announced Op­ world is moving. And this implies renouncingpart of sover­ eration Iron Shield, a police crackdown on all the violence eignty." He said this while en40rsing Bush's "Enterprise for inside the townships. Although Mandela denounced the De the Americas" plan, which seeks to turn lbero-America into Klerk move as a "license to kill," just days afterhe met with a free trade looting ground fur Anglo-American financial the President and criticized him for inaction in the face of interests. the bloodshed, there are signs that the black population is Gaviria also discussed the Groupof Three's commitment relieved that some measure of order and security is being to create an lbero-American 'mnergy Basin," which would restored. feed Bush's war drive. Mexico, Venezuela, and Colombia Some political analysts in the South Africancapital Preto­ are the three largest energy el!C.porters of the region, noted ria have recently expressed optimism that if left to its own Gaviria, and the U. S. requires tnore oil in light of the Mideast devices, the Republic of South Africa could indeeq steer a crisis. Mexico, however, is limited as to how much more oil course of political reform leading to a multi-racial political it can exportby how much replacementenergy it can generate structure by the time the next national elections occur. They for domestic use. Therefore, "Mexico's plan to expand elec­ cite the emergence of a range of black political movements tric energy generation includes a series of thermoelectric and leaders and the emerging supportamong moderate blacks projects which . . . will surely utilize thermal coal as fuel. for the Nationalist Party, as evidence thatsome form of coop­ At the same time, Colombia possesses immense reserves of erative political effort could be forged-provided the eco­ easily exploited and exported thermal coal, which would nomic crisis can be addressed through new investments and prove ideal to feed those new energy-generating plants at a revival of industry. low-cost." Mexico could then sell her oil to the United States. Unfortunately, if therecent blind terrorincidents are any In parallel with these new-found "priorities," Gaviria indication of the rumblings of a "third force," it will take dropped his earlier proposalfo� a "Latin American Forum"­ more than a spirit of cooperationto defeat the plans for geno­ excluding the United States land Canada-to replace the cide throughoutthe region. U. S. -dominated Organizationof American States as a politi-

56 International EIR September 28, 1990 cal interlocutor for lbero-American interests. lbero-Ameri­ strategic sectors. Gaviria explained that the state cannot be ca's problems, Gaviria has now concluded, stem from cau­ obligated to invest in infrastructurelcrucial to the moderniza­ dillismo, that is, rule by populist leaders which, he said, has tion of the economy, such as highways, waterways, ports, "prevented the development of Latin America . . . made railroads, and electric power generation. many wrong decisions, and did much political and economic Neither will the state take responsibility forfinancing the damage ." According to Gaviria, that damage includes the country's development, it appears. The Finance Ministry foreign debt strangling the continent, which the Colombian has removed virtually all controls on the national banking Presidentblames on "protectionism as a symptom of regional system, effectively eliminatingdevelopment credits by rais­ disarticulation." "Now," said Gaviria, "it is necessary to ing their cost and letting interestrates "find theirown level," confront reality, modernize the institutions, reorient the andderegulating allbanking operations. Specializedbanking economies, severely adjust many of them, and make difficult has been made extinct, and every banking institution is now decisions. " free to dabble in any and all financial operations without government oversight. A Colombian 'adj ustment' Although Gaviria pledged throughout his campaign that Colombian labor mobilizes he would not impose "shock" economic policies, as have The nation's labor organizatiops have publicly rejected his Argentine and Brazilian counterparts, his speeches to Gaviria's privatization schemes, along with his efforts to Mexican business circles dripped with praise for those coun­ impose a labor "reform" whose purpose is to pave the way tries' "adjustment programs." Gaviria announced that his for collective layoffs-the result of bankrupting companies government was similarly preparing to implement such pro­ which prove "uncompetitive"-and to cut labor costs to grams. Measures have already been readied, he revealed, make the labor force "more competitive" for investors. One that would "significantly alleviate restrictions on domestic bill currently before Congress refers to the establishment of and foreign private investment, on the flow of capital, on the an hourly wage system thatwould enable companies to avoid exchange program , on the labor market, and on the entirety negotiating long-term labor contracts. The government also of foreign trade . Further, we will continue and intensify our hopes to eliminate-at least partially---Colombia's system program of freeing imports for the purpose of permitting of retroactive layoffcompensation which demands employ­ greater access, at less cost, to goods and services produced ers set aside funds in the name of an employee for each abroad." yearworked in the company. These funds are often the only On cue, Gaviria's economic team, headed by monetarist capital workers have access to for making a downpayment Finance Minister Rudolf Hommes, announced Sept. 18 that on a home . 73 import categories would be added to the free import list. The country's four labor federations-the CUT, CGT, Only agriCUltural products would remain under a "prior li­ CTDC, and CTC-announced Sept. 13 that if the govern­ cense" restriction, that is, importers would be required to get ment does not halt its plans, they wouldhold a national strike special permission to bring in such goods. Hommes �so against privatization , the apertura (opening up the economy announced that tariffs would be reduced to a minimum, to foreign "competition"), the International Monetary Fund cheapening imports to the point that national producers will and the World Bank, the recently decreed tax and service likely go bankrupt that much more quickly. hikes, and the labor reform. "The government's economic Hommes also announced that to compensate for the loss policy is similar to that of the Nazi concentration camps, of income to the state from the reduced import tariffs , the where there was work but no food," declared Jorge Carrillo government would be presenting a bill to raise the Value Rojas, president of the Central Labor Federation (CUT). Added Tax (IV A) from 10% to 12% on the majority of con­ The national strike initiative was triggered by recent in­ sumer goods. The governmentexpects this increase to yield creases in electricity, gasoline, and fuel prices by between an additional 112 billion pesos ($200 million). Thus, the 30-90%, on top of the "usual" monthly hikes. For the mo­ population will be paying more for its consumption needs to ment, rates for commercial and industrial users in Colom­ finance the destruction of employment and national pro­ bia's four major cities will not be liaised, to avoid provoking duction. the business associations at the saDietime . But public service While still in Mexico, Gaviria announced his intention rates for energy, sanitation, water, and telephones will now to open all state companies involved in "transport in all its be pegged to the inflationrate and not to the minimum wage, forms, communications, energy generation, the financial as previously. This change in pQlicy goes along with the sector, and ports"to both foreignand domestic private invest- decision to keep all wage hikes below the inflation rate this 0rs . Gaviria was reaffirming earlier pledges to privatize such year. state companies as Telecom (in charge of telecommunica­ Gaviria's campaign slogan was, "With Gaviria, there tions), Ecopetrol (the state oil company), various regional will be a future ." The latest "joke" now throughout Colombia electriccompanie s, Colpuertos (in charge of ports), and other is, "With Gaviria, will there be a f\lture?"

EIR September 28, 1990 International 57 Dateline Mexico by Carlos Cota Meza

Mexico, the 'perfect dictatorship' tavio Paz, the "bribed intellectual" Peruvian novelist Mario Vargas Llosa accidentally told the truth par excellence, felt compelled to re­ ply. Vargas Llosa was also attacked about Mexico, much to the embarrassment of his hosts. by the attorney general, by the vice presidentof Televisa and presidential ambassador for special affairs, Mi­ guel Aleman Velasco, by fivegover­ nors, by two national leaders of the President Carlos Salinas de Gortari victory or defeat of one system over PRI, and, of course, by Miguel de la is suffering one propaganda failure another-as the definitive triumph of Madrid. Vargas Llosa abruptly and after another. Since his regime's very liberal capitalism." He denounced prematurely left the country the day existence is based on propaganda, the "certain interests" for doing that to after he spoke; and it is still not known failures could end up in a deafening avoid the necessary critical view of whether he was threatened with Arti­ crash. the effects liberal capitalism has had cle 33 of the Constitution, which man­ Vue/ta magazine, published by in the Third World countries. dates the expulsion of foreigners who existentialist poet Octavio Paz, orga­ The Vuelta seminar was a con­ meddle in internal politicalquestio ns. nized a seminar entitled "Twentieth clave of the Knights Templar of liber­ Why did the Mexican political Century: experience of freedom." A alism, from which they would sally class react so violently against some­ select group of "intellectuals," mostly forth against the Pope who dared to one who rec�ntly had been so sharply EasternEuropean dissidents from so­ perturb consciences. Octavio Paz and politically discredited in his own cialism now rebornas economic liber­ Televisa were also aiming to provide country? als, attended along with a grab-bag of the new Institutional Revolutionary Since the Eastern European Western Europeans. Vargas Llosa, a Party (PRI) with the "intellectual cov­ events, the current Mexican govern­ rabid exponent of President Bush's er" Salinas requires to make it seem ment has been struggling to avoid the free market cult, got top billing. that someone in Mexico actually sup­ comparison with the overthrown re­ Televisa TV tookcare of the com­ ports his neo-liberal economic policy. gimes. Salinas has insisted Mexico al­ mercial promotion for the conference, The timing was no accident. The ready had its revolution and that he but some noticed the generous hand of Vuelta seminar ended Sept. 1, theday will not tol�rate any "mechanistic" the Economic Culture Fund, the state when the PRI's 14th National Assem­ comparisons or extrapolations. publishing house given ex-President bly began. Paz's get-together withhis What is going on in Mexico is nei­ Miguel de la Madrid by his successor, friends was the backdrop for the PRI ther comparisons nor extrapolations. Salinas. assembly which was going "in search The current �overnment is suicidally It is not necessary to go into the of democracy." stuck to its neo-liberal economic pro­ thinking of these luminaries, since as �ut the roof fell in on them. On gram and trying to impose dictatorial­ Vargas Llosa's abortive race for the July 30, Mario Vargas Llosa dropped ly its irrational dogma on all of soci­ Peruvian presidency shows, most of a stink bomb among the high priests ety. The Salinas government is one their political predictions have turned of liberalism: "Mexico is the perfect of those "certain interests" the Pope out to be ridiculous fiascos. At the dictatorship. The perfect dictatorship spoke of which flee criticism of the conference they were trying to exalt is not communism; it is not the Soviet social effects of their economic pol­ theirineptitude , wrapping themselves Union; it is not Fidel Castro; it is Mex­ icies. in the ample cloak of "if the Berlin ico. Because it is a dictatorship cam­ This neo-liberal dictatorship is Wall fell, therefore, liberalism has tri­ ouflaged so as not to seem to be a dic­ what is crumbling. The Salinas re­ umphed." tatorship .... It also has created a gime has no $Upport. The main goal of this event, clan­ leftist rhetoric . . . very efficientlyre­ We do not want to credit Mario destinely financedby the government, cruited the intellectuals, the intelli­ Vargas Llosa with being judicious, was to contradictwhat PopeJohn Paul gentsia . . . bribing them in a very but, if we analyze the acts of the cur­ II told businessmen in Durango during subtle way, through contracts, rent Mexican administration, we his May visit. The Pope said the revo­ through nominations, through gov­ could only conclude that, with his po­ lutions in Eastern Europe "have been ernmentjobs." lemical declaration, the novelist hit at times superficiallyinterpreted as the The reaction was immediate. Oc- the nail on thehead, despite himself.

58 International EIR September 28, 1990 Panama Report by CarlosWesley

A lesson in hypocrisy can military spokesman. His passport The massive manhuntfor Noriega's top aide shows that Panama was confiscated, as were those of three of his aides who were detained is still an occupied nation. with him. They were later returned. On Jan. 9, Peru's Foreign Minis­ ter Guillermo LarcoCox complained that the U. S. had sent "a whole battal­ ion" to surround the residence of the On Sept. 16, Capt. Asunci6n Eliec­ Last time we looked, Panamani­ Peruvian ambassador to Panama. The er Gaytan, a top aide of Gen. Manuel ans were constitutionally impeded troops bombarded the residence with Noriega, was reported missing from from voting in U.S. elections; they rock and roll andbarricaded the streets the Vatican's Embassy in Panama, most assuredly did not elect George to block the free flow of traffic and wherehe had been granted diplomatic Bush or his representatives as their pedestrians. The only time the barri­ asylum since the U.S. invasion of last government. Yet, there was Deane cades were removed was to allow a

Dec . 20. Gaytan's presumed escape Hinton, U.S. ambassador in Panama, daily rent-a-mob to shout insults at the immediately set off a manhunt "by issuing instructions to the figurehead diplomats and those who had been land, by air,and by sea," according to "President of Panama," Guillermo given asylum inside. This went on un­ the Panamanian press. "Porky" Endara, and telling the press til March 3, when the mob burned Guess who is carrying out this that "the U.S. government is very in­ down the Peruvian Embassy. manhunt? ''Troops of the U.S. mili­ terestedin capturing Gaytan," report­ The rent-a�mobs were also sent tarySouthern Command together with ed the Spanish news agency ACAN­ around to comPlement the U.S. sol-' . membersof Panama's Public Force," EFE. diers who were surrounding the Vati­ according to theSept . 18 daily EI Sig- To be fair to Bush, he is not the can's Embassy and bombarding it 10 . So, it turnsout thatthe U.S. troops only hypocrite among world leaders. with rock and roll, because General who invaded Panama have not with­ While the manhunt for Gaytan was Noriega had sought sanctuary inside. drawn after all, despite the Bush ad­ getting under way, French President In fact, Noriega agreed to surrenderto ministration's claims to the contrary . Fran�ois Mitterrand was announcing the U.S. Army only after the puppet The Gaytan incident highlights the his dispatching of thousands of sol­ government otdered all public em­ hypocrisy of the U.S. administration diers to Saudi Arabia, and threw out ployees to a demonstration demand­ and its sycophants in the news media. some Iraqi diplomats from France, ing that the Vatican tum Noriega out Some weeks ago, news anchormen calling on the United Nations to im­ of the diplomatic residence. Of Ted Koppel and Barbara Walters pose an air blockade against Iraq. course, there was also the implied raked Iraqi Ambassador to the U.S. The ostensible reason for the threat that the U. S. would break into Mohamed al-Mashat over the coals, French rage, was that Iraqi soldiers the embassy. "I'm sure that made an because he dared compare his coun­ allegedly violated a Frenchdiplomatic impact on his deciding to walk out in­ try 's military moves in Kuwait to the residence in Kuwait, an incident stead of us having to go get him," said U.S. invasion of Panama. which the Iraqis deny ever took place. the U.S. commander, Gen. Marc Their disclaimer, now repeated as But, where was France when the Cisneros, on Jan. 4. a sort of magical incantation by sup­ United States violated the diplomatic A few days after the invasion start­ porters of the deployment against rights of Cuba, Libya, Nicaragua, ed, France joined the U.S. and Britain Iraq, goes something like this: "The Peru, and the Vatican in Panama? On in vetoing a U.N. resolution that

U.S. did not occupy Panama, as Iraq Dec . 29, and again on Dec. 31, U.S. merely "deplored" the U.S. military did Kuwait. The U.S. did not violate troopsraided the residences of Nicara­ action. On Jan. 17, the U.S. vetoed Panama's independence; it simply guan diplomats in Panama, including another U.N. resolution censuring its helped Panamanians to exercise de­ that of the ambassador himself. raid on the home the Nicaraguan am­ mocracy, by helping into office the Cuba's ambassador to Panama, bassador in Panama. To allow the res­ governmentthat had been freelyelect­ Lazaro Mora, was detained by Ameri­ olution to go through"would trivialize ed by the majority of the Panamanian can GIs for 90 minutes "because he the work of thi, important body," said people, but which dictator Noriega refused to allow his car to be Thomas Pickering, the U.S. envoy to prevented from coming to power." searched," on Jan. 14, said an Ameri- the U.N.

EIR September 28, 1990 International 59 NorthernFl ank by Lotta-Stina Thronell

Stopping the satanic youth culture the city of Karlskoga, in central Satanic and Nazi-like rock performers have provoked a storm of Sweden. One radio program featured Ann protest in Sweden, led by the Anti-Drug Coalition . Ekeberg, parent, teacher, and author of an anti-satanic book, in a debate with the chainnan of the Alice Cooper fan Just beforethe July summer holiday to go by train to the rock orgy," stated club in Sweden, Lars Reinholdsson, period in Sweden, a fight broke out Sandmark. who admitted that Cooper's violent over the counterculture and its con­ In 1982, some 100,000 youths show could bedangerous for teenagers . nection to the proliferation of drugs swarmed into Gothenburg to see the A letter to the editor of Nya and satanic cults among youth. The Stones. Such an event obviously Wermlandstidningen in the Karlsko­ debate was catalyzed by the Anti­ needed the go-ahead and collabora­ ga area, attacked the media. "The sex­ Drug Coalition (ADC) , which de­ tion of the city government. That ist behavior in the violent shows by manded that Alice Cooper, a violent, weekend the city was transformed into Cooper have led to no protests in the satanic rock star from the 1970s, not a free zone for drugs and so-called press, on the contrary, many writers beallowed to perform. "new lifestyles." No one could miss and debators are defending, excusing The anti-rock campaign by the the the cloud of marijuana smoke and praising the violent scenes in Al­ ADC was initiated over rumors that hanging over the concert hall. ice Cooper's show." the Rolling Stones, the rock group In 1983, the municipality of Go­ A letter in Ystads Allehanda, a which started the satan-worshiping thenburg published an evaluation of southern regional paper, started out: cult with its hit "Sympathy for the the event, including a critique by po­ "In the same way as the words that Devil," were going to tour Europe. lice and social authorities. The authors you now readcreate new thoughts and The ADC demanded that the Rolling showed that the threshold for crimes, feelings within you, music does it. Stones be declaredpersonae non gra­ from drug possession to vandalism of Beautifulmusic tends to create beauti­ tae in Sweden, since, together with people and property, were lowered. ful thoughts, which later are trans­ the Beatles at the end of the 1960s, The report, entitled ''The Rolling formed into the same type of acts. they introduced the insanities of the Stones-A Report on the Rock Festi­ Cruel music tends to create cruel rock-drug-sexcounterculture . val in June 1982. A Partial Contribu­ thoughts, which not infrequently are ADC chairman Ulf Sandmark de­ tion, Supplement 2, 1983:05," con­ transformed into similar acts." nounced this "rock group, which cluded: "It was nothing but treason Even some rock lovers are getting openly has praised Nazism by dress­ against all the good forces at different queasy. Maans Ivarsson, a writer for ing up in their uniforms, do the Hitler posts in the municipality who work on the Stockholm-based national liberal salute on stage, travelaround in an old giving examples and to give youth . paper Expressen, criticized Madonna, Nazi car, and above all, dwell in the guidance and steer them towards a known for her blasphemy, and her ideology of Nazism, i.e., satanism. good goal. It was treason against par­ show in Gothenburg. "What Madonna The leaders are consciously organiz­ ents who under difficult and often did on stage is far too close to my ing their rock 'festivals' modeled on overwhelming difficultiesare fighting own nightmaresas an subway rider in how Goebbels conducted the mass against the plague of drugs. But above Stockholm in order for me feel any meetings of the Nazis. This rock all it was treason against the youth, a ticklings anywhere," he confessed. group is named the Rolling Stones. treason in all its well-meaning, a per­ Madonna, pushed as one of the "It is a scandal that the govern­ fidyof imprudence, but nevertheless a most populat artists for young teenag­ ment allows such a rock concert to perfidy." ers-if your daughter starts to wear take place at the state-owned Eriks­ The debate, featured in the region­ only black underwear, be sure it berg Shipyard. Taxpayers' money is al press, had an effect. Cooper's con­ comes from : the Madonna cult-beat given out to support the Rolling certs in Gothenburg on Aug. 4-5 were up fellow performers on stage, kick­ Stones. Apart from free advertise­ fiascoes. Only 1 ,500people turned up ing them in the face as they were lying ments in the state-owned, monopoly at the Christinehof Castle Park in the on the floor.Many kids, some in their television, the state railway company south of Sweden, while 12,000 were pre-teens, required firstaid , since they SJ is engaged in a campaign to sell expected. Fewer than half of the ex­ were so shoeked they fainted, vomit­ round-triptickets to lure young people pected 6,000 attended the concert in ed, or became hysterical.

60 International EIR September 28, 1990 From New Delhi by Susan Maitra

Resurgent Rajiv ization: "So privatization is not the an­ The fo rmer prime minister steps out to score the V.P. Singh swer. The British got us into the mess of nationalization. Don't let them get government's lack of policy and visionfor India . us into the mess of privatization .... The problem is good and bad man­ agement." But what really bothers Rajiv In several candid and wide-ranging contrastto the drift and gimmickry of Gandhi is summed up in his charge interviews over the past month, Rajiv the past eight months. that V.P. Singh has no vision for India Gandhi, head of India's largestparty, Take economic policy, and the in the world. "What is worryingis that the Congress (I), and now leader of the present government's multibillion­ this is a critical period 101 India," he opposition, launched his campaign to dollar farm loan waiver that passes as says. "A critical period for all devel­ regainthe prime ministership. a pro-agriculture move. Says Gandhi: oping countries, but more so for India, Coming ten months after the Con­ "The farm sector does not need larger because of our special position gress (I) was routed in general elec­ and larger subsidies. It needs help to What's worrying is that India is not tions that brought theminority Janata really become one of the best agricul­ playing a role that it must play. It's a Dal government to power, the inter­ tural sectors in the world. We are sure responsibility that we have not only to views show the process of reflection of it-Punjab, Haryana, western Ut­ our own people, but to all developing and reassessment Gandhi himself and tar Pradesh, coastal Andra, parts of nations." the Congress leadership has been un­ other southern states are as good as Gandhi questions whether the bi­ dergoing. anywhere else in the world. Not be­ polar world is really becoming a The move is timely. With theend cause they get subsidies, but because multi-polar world. There are new of the monsoonsession of Parliament, they get extension, they get know­ "game players," he acknowledges, re­ the political scene has become, as how, they were helped in many ways, ferring to Gemany and Japan. "But even Prime Minister V.P. Singh but primarily in infrastructure. are they gameplayers that are going admits, highly "fluid." The states of "So you have to look at the ag­ to play an independent game, or are Kashmir, Punjab, and Assam are in ricultural sector in a new light. The they going to be partof one team?" flames, and the government faces a most important is infrastructure: "What I see as a dangerous portent potentially mortal crisis in late Octo­ roads, water, energy, and, I will add, that must be guarded against-and ber around the Ram J anambhoomi telecom ....We have to create more that's why India must play a role-is dispute, where militant Hindus vow to jobs in the rural areas. I want to create that instead of going towards a more construct a temple at a site they claim jobs, but not in fields. We must look democratic internationalrelation ship, is Lord Ram's birthplace, where a at the industry-agriculture linkage in we are heading for a more dominating mosque is presently standing. More­ a new way. Traditionally that means group in the internationalcommunity. over, a recent pollconfirmed that V . P. tractors, implements, tools, pumps, . ..That could mean much higher ex­ Singh's government's credibility had the industrial input in agriculture. ploitation of the developing coun­ already been seriously eroded. If an That of course will grow . But we must tries. " election were held tomorrow, MARG open the other link. Which is the There is a specific danger Gandhi pollsters found, and the National downstream link-processing agri­ sees in the shifting w0rld geometry. Front coalition splinters as it now culture produce. Giving jobs in the ru­ "The biggest danger is that the U.S. shows signs of doing, the Congress (I) ral areas. This will also reduce wast­ heads for some sort of economic prob­ is assured of some 280 seats, a clear age in agriculture." lem. . .. Germany and Japan were majority. Gandhi repeatedly spumed the the two countries that were really in­ Rajiv Gandhi's interviews show simplistic labels that have forever vesting in the U.S.A. If Japan also he is ready. If he is refreshingly frank muddled Indian policy discourse: cuts out . . . becoming a real player on past mistakes, he also hammers "What is right and what is left?" he in the world economic scene, then the away witha new depth and confidence asked. "Is Gorbachov right? Or is he U.S. is going to head for problems, on his convictions of policy and prin­ left? . . . You have to define things economic problems. And that is ciple-in a word, his vision for In­ slightly differently." where tensions may start which can dia's future-and it makes a striking Or on privatization and national- give the whole world problems."

EIR. September 28, 1990 International 61 International Intelligence

in mid-September. This was the first meet­ more miserable," with visible effects Qn the Solzbenitsyn: Rebuild ing between a Soviet leader and members of economy. "For instance, America produces the Russian heartland the Israeli cabinet since 1967. Radio Mos­ ten lawyers perone engineer, while thepro­ cow quoted unnamed "foreign observers" portion in Japan is the exact reverse. saying that the meetings were aimed at An essay entitled "How we must rebuild "The most alarming" thing, says Mont­ bringing about "closer ties between the two Russia," by Russian exile author Aleksand­ brial, is that even the "melting pot" concept countries." er Solzhenitsyn, was published on Sept. 18 of the American society is falling apart. The Neeman-Modai trip followed close being as a 16-page supplement to the Soviet mass­ "Racism is back in force. Justice is on the heels of a nioe-day visit to Moscow circulation Communist Party youth daily, hurt by this phenomenon, as we were able by Israeli Housing Minister Ariel Sharon, to Komsomolskaya Pravda. Solzhenitsyn see recently in the court case of the mayor and a senior Israeli Foreign Ministry team paints a graphic picture of Russia's self-de­ ofWashing(on, Marion Barry. . . . Thefact arrived in Moscow on Sept. 12 to preparethe is, unfortunately, that the situation of blacks struction, and calls for it to save itself by way for an meeting at the end of September is massivel worsening." letting go all its non-Slavic republics and t between Israeli Foreign Minister David becoming anation of the "Eastern Slavs"­ Montbrial concludes: "One thingis sure: Levy and Soviet Foreign Minister Eduard the Russians, Ukrainians, and Belorussians. In spite of the military deployment in the Shevardnadze. Levy announced the trip, but "The time has run out for communism Gulf, America is no longer what it was." reiterated Israel's rejection of any move to ...but its concrete edifice has not yet col­ convene an international conference on the lapsed," Solzhenitsyn writes. "And it could Middle East. happenthat instead of a liberation, we could Papandreou sees On Sept. 15, Gorbachov met with Italian all be flattened by its rubble.... The re­ Foreign Minister Gianni De Michelis. Gor­ North-South 'hot war' publics cannot be stopped from separation: bachov reportedly told him that Moscow is Centrifugal forces are so great that they can­ prepared to resume diplomatic relations Former Greek Prime Minister Andreas Pa­ not be stopped without violence and blood­ with Israel if Israel indicates its willingness pandreou, a leading light of the Socialist shed. And if that is the price, they should to accept an internationalpeace conf erence. International, contributed a commentary not be stopped." published ia the Hindustan Times on Sept. "We have deprived ourselves of our for­ 7, drawingIlttention to the likelihoodof war mer prosperity,"he continues. "We have de­ French analyst sees between Nqrth and South. stroyed the peasants as a class with their "In a few short months, the post-Cold villages . We have polluted our earth and America in decline Warpeace ¥ tween East and We st has given water. We have destroyed our women with way to the new danger of warbetween North hard labor. We have separated them from Racism on the rise, economic decline, mis­ and South," he writes. The Gulf crisis is their children. We forgot health care.There erable education-that is the reality of the rapidly becOmingsuch a conflict,as a gener­ are no medicines. We have forgotten what United States today, and the Gulf war won't al fight between the We st on the one side, is healthy food; millions are homeless, and change it, wrote the president of France's and Arab nationalism and Islam on the oth­ we hold to just one thing: We are afraid we International Institute of Foreign Affairs, er, could turn into a "hot confrontation be­ will bedeprived of our limitless drinking." Thierry de Montbrial, in an article entitled tween Nortb and South." There is no ready "The American decline," appearing in the way of cOQtaining a shooting war in the Parisdaily LeFigaro on Sept. 13. According Gulf, since "the Arab nation" would back Moscow, Jerusalem move to many commentators, says Montbrial, the Iraq in the event of war with the United U.S. is emerging as "the only superpower States, wha�ver Arab leadersmay say now. toward diplomatic ties of this planet," but "such a readingof events Papan<:ln:ousays that the common view would be superficial." in Europe, is that Washington is moving so A flurry diplomaticof activity at the height Montbrial outlines the bankruptcy of the intensely intothe Gulf, because controlover of the Gulf crisis is paving the way for the U.S. economy: trade and budget deficits, that region and its oil would give the U.S. a restoration of Soviet-Israeli diplomatic ties, commercial debt, a GNP which no longer "strategic lever over world affairs." Look­ which were broken off during the 1967 represents more than 23% of the entire ing at matters from this standpoint, Europe Mideast war. world's GNP. In this situation, "the Japa­ is equally opposed to Iraq or the United Soviet President Mikhail Gorbachov nese challenge is hitting them head-on," to States con1!rolling the Gulf energy re­ held a surprise meeting with Israeli Minister such an extent "that they see a new enemy sources, si� this would give "one power of Science and Te chnology Yuval Neeman replacingthe Soviet Union." The American center" too much control. ''Total control of and Israeli Finance Minister Yitzhak Modai educational system "is becoming more and the Gulf by the U.S. would provide the

62 International EIR September28, 1990 Briljly

• IGOR ANDROPOV, the son of the late Soviet PresidentYuri Andro­ pov, hasbeen appointedliaison to the Vatican to �uss "the Soviet pr0- posal for an mtemational conference on the Middle East and the crisis in Americans with a decisive competitive ad­ of President Elias Hrawi to starve him out. the Gulf," according to the daily Le vantage not only over Europe, but over Ja­ They carried slogans which read: "United Monde. The headof the Soviet repre­ pan as well," asserts Papandreou. we will defeat the blockade ," and, "Starv­ sentation to the Holy See says that He concludes that the United Nations ing, we find strength in our dignity, but we on the matterlof the Gulf crisis, "the must solve the Gulf crisis, not the U.S. uni­ will not sacrifice our freedom." views of the Soviet Union and the laterally. The Hrawi regime, backed by the Syri­ Vatican are very close." ans and the so-called Taif Accords, has im­ HENRY KISSINGER poseda complete blockadeon East Beirut­ • had a 90- Havel calls Jo r 'security inhabited by 1 million people-because that minute meeting with Chinese Pre­ is the center of General Aoun's support. mier Li Peng on the Gulf crisis the system' in the Mideast Lebanese organizations arewarning that the week of Sept. 10. He also met with next step of the corrupt President Hrawi, Chinese Communist Party General d Czechoslovak President Vaclav Havel, in will beto officiallyrequest Syrianassistance Secretary Jiang Zemin, whom he tol an interview in the French daily Liberation in invading the enclave. that "U .S.-C�a relationsare partic­ published on Sept. 13, denounced both the According to the Council of Lebanese ularly important in the present inter­ "expansionism" of Iraqi President Saddam American Organizations, "To pave the way national situation." Hussein and the danger of Islamic "funda­ for the Syrian invasion, the militias have BATTLE mentalism" spreading to the whole region, started heavy shelling of the free enclave, • TIlE for a scientific and called for the emergence of a regional thereby giving Syria the 'restore the peace' musical tuning has arrived in the securitysystem to deal with the problem. excuse to invade." Dominican Republic. On Sept. 3, the "We condemned very forcefully the daily Hoy reportedthat a new group, Iraqi aggression against Kuwait," he said, called Kalmus, has been founded to pointingout thatCzechoslovakia was one of Denmark rejects NATO promote a campaign to lower the the first nations to join the embargo and to pitch tothe classical tuningof C=256 call for applicationof all relevantU.N. sanc­ out-oj- area deployments (A =432). Kalmusis circulating a pe­ tions. tition to this effect. Havel denounced the "spreading of fun­ Both of Denmark's major parties have deci­ damentalism in the Arab world" as a "worse sively rejected the Anglo-American push • NORm KOREAN President danger than the expansionism" of Iraq, and for NATO to deploy troopsoutside its treaty­ Kim n Sung made a secret visit to called for a regional security system which mandated area. Demandsby U.S. Secretary Beijing, the Deutsche Presse Agentur could deal with the "excesses which could of State James Baker that Europe supply reported on Sept. 13 from North Ko­ appear out of the emergence of such intran­ ground troops to the Gulf triggeredan abrupt rea. South K;orean media reported sigent fundamentalism." ''The United States shift in the political support for the U.S. that Kim was on a secret trip by train and the We stern powers will not be able to policy within Denmarkin mid-September. through north China, on his way to eternally save peacein this area and play the On Sept. 12, Conservative Party De­ meet Chinese Communist Partychief gendarmes," he said. fe nse Spokesman P. S. Moeller stated, Jiang Zemin and other officials. The "NATO is a defe nsive alliance. We can't go issues to be discussed would be the around the world deploying troops. If we North-South Korean negotiations Blockade oj Aoun'sJorces did, it would be areturn to the period before and relations between· South Korea Wo rld War I, when Europe thought that it and the U.S.S.R. plays into Syria's hands could exert its power anywhere it wanted to. This would lead to totally unacceptable • A SHARPINCREASE in exe­ While President Bush and Prime Minister conflict between North and South, were we cutions has occurred in Communist Thatcher were organizing the blockade to to do this today." China, with at least 1,000people put starve Iraq and Kuwait, Gen. Michel His views wereechoed by Socialist de­ to death in the last 12 months, Am­ Aoun's forcesin Lebanon were being given fe nse spokesman Hans Haggerup, who stat­ nesty International charges. There the same treatment. 'lens of thousands of ed, "In this present crisis, it is important we were 350 executions carried out in Lebanese gathered in mid-September in not forget the very good original reasons June and July alone, which the Chi­ Baabda, headquartersthe of Prime Minister that NATO was composed with limitations. nese press said were intended to se­ and nationalist leader General Aoun, to sup­ We re that not the case, although I do not like cure "a safe and happy environment" port him as the legitimate head of the coun­ tosay this, Denmarkwould have likely been for the Asian Games this month. try, against the efforts of the puppet regime pulled into the Vietnam War."

EIR September28 , 1990 International 63·· �TIillNational

u. s. uses Gulfcrisis to wage war on Germany, Japan

by Kathleen Klenetsky

The crisis in the Persian Gulf has provided the Bush adminis­ tion, and warnedthat Germany's attitude could "dramatically tration with a perfect opportunity to pursue one of the princi­ erode the very strong relationship" between Washington and pal goals of the Anglo-American policy combination: the Bonn. Rep. Carroll Hubbard (D-Ky.) asserted that the "Japa­ destruction of the few pockets of high-technology, produc­ nese have been acting the way:they usually do: If there's no tion-oriented, economic activity in the world, namely, Japan profit in it for Japan, forget �t." But Rep. Les Aspin (D­ and several Western European countries, and above all the Wisc.), chairman of the House Armed Services Committee, soon-to-be reunifiedGerma ny. contended that "if you're picking on one country, it should Anyone who has looked at recent issues of the Congres­ be Germany, which is doing even less than Japan." sional Record, or has read between the lines of the Bush Congress's ally-bashing orgy has gone way beyond rhet­ administration's pronunciations on the crisis, would quickly oric. Of many measures put fprtb to punish Germany and come to the conclusion that the real target of "Operation Japan for their recalcitrance, s�me have already beenadopt­ Desert Shield," is not so much Iraq, as it is those industrial­ ed. On Sept. 10, the Senate passed an amendment, submitted ized countries that Washington and London see as a threat by Sen. Dennis DeConcini (mN.M.), calling on the Presi­ and a challenge to their own, failed polices of "free trade" dent to take "the diplomatic initiative to encourage other and deindustrialization. nations to share the internatioqal financial burden of the de­ As Secretary of State James Baker and Treasury Secre­ fense of Saudi Arabia," and tQ ensure that those allies who tary Nicholas Brady, wended their way through Europeand are not involved militarily in the Gulf action assume "an Asia-begging bowls in one hand and threats in the other­ appropriate financial share of the collective defense." to demand financial, military, and other forms of aid for the Although the measure did not specify sanctions to back Gulf intervention, Congress backed them up by letting loose up the "diplomatic initiative" it mandates, there has been no a torrent of abuse against America's allies. lack of these. For example, the House voted Sept. 11 to slap Congress's main complaint was that neither Europe nor a 20% increase in import duties on any ally that doesnot pay Japan have shouldered their share of the burden for the Amer­ its "fair share" in the crisis. ican military deployment. In other words, Congress is upset In the most headline-getti�g move, the House also ap­ that the Europeans and Japanese have been reluctant to be­ proved, by a lopsided 370-53 vote, an amendment to the come enmeshed in Bush's imperialist adventure in the Mid­ defense authorization bill that would force Japan to foot the east, and less than enthusiastic about the oil embargo, and full cost of stationing V. S. troops in that country. Sponsored consequent skyrocketing in world oil prices, that Bush-not by Rep. David Bonior (D-Mich.), the measure was directly Iraq, mind you-has imposed. linked to Japan's participation in the Gulf intervention. If The rhetoric employed on the floor of Congress against enacted, it will require Japan tp pay $7.4 billion per year­ America's allies has been astoundingly antagonistic. Sen. the total cost of supporting V.S. forces in Japan�r face the John McCain (R-Ariz.) accused Germany of "contemptible phased withdrawal of all American troops over the next ten tokenism" for not pledging more money to the V. S. interven- years. Invoking President BUS�'S phrases from his national

64 National EIR September 28, 1990 television broadcast Sept. 11, Bonior called the measure a call for 1) preventing "the shipment to Iraq, Iran , Syria, or "wake-up call for a new world order" in which Japan and Libya of materials or technology which would assist theabili­ other allies "must bear their fair share of the burden." ty of such countries todevelop, produce, or stockpile, chemi­ Bonior and his colleagues may have gotten a macho kick cal, biological or nuclear weapons� r ballistic missiles"; and out of their accomplishment, but the real interests which are 2) providing for the "imposition of sanctions on countries being hurt are those of the U. S. As one Japanese officialput which use chemical or biological weapons and on corpora­ it: "To withdraw 5,000 troops a year from Japan is sheer tions which assist Iraq, Iran , Syria, Libya or certain other nonsense. It would destroy not only the national interests of countries to obtain, develop or stockpile chemical, biological Japan, but of the United States as well." American troopsare or nuclear weapons, and for other purposes." in Japan "not for the narrow purpose of defending Japan While seemingly aimed at curbing the spread of lethal alone," but to protect "American interests in the Pacific and weapons, the real objective of the lUDendments-like most Indian Oceans. " of the so-called "anti-proliferation"policies in place, or being The entire purpose of "Operation Desert Shield" is to proposed-is to prevent Germany,' Japan and others from undermine allied interests. Already, the U. S. deployment transferring to developing countries those advanced techno­ has sent oil prices skyward, with predictions of even greater logies that would enable them to industrialize, and freethem­ increases to come. Now, hints are appearing that the U. S. 's selves from beingexploited raw materials exporters. truepurpose is to permanently occupy the Saudi oilfields, Networks associated with Project Democracy, the "secret taking de facto controlof the production and sale of the bulk government"which orchestratedrra n-Contra, is smack in the of the Mideast oil supply�n which Europe and Japan so middle of this operation. The Center for Security Policy, a crucially depend. James Akin, the former ambassador to Washington-based think tank whose board includes such key Saudi Arabia, points to this possibility in a commentary pub­ Project Democracy functionaries as Richard Perle to Elliott lished in the Los Angeles Times and the Virginia-Pilot. He Abrams, played a pivotal role in' developing the Helms recallsthat back in 1975, then-Secretary of State Henry Kis­ amendments. As a result, an informed source reports, Helms singer supported a proposal for seizing the Saudi oilfields­ "definitelyhad Germany in mind" When he proposedthem. even to the point of exterminating the Arabs living there. Helms was purportedly motivated by the case of Imbau­ This same scenario is in the works again with the U.S. Gulf sen, the German firmwhich helpedbuild the Libyan chemi­ deployment, he writes. cals plant at Rabta. The center has just put out a report, This is hardly far-fetched. Administration spokesmen are "Rabtagate: The Inside Story of German Collusion in the already talking about keeping U. S. troops in place far longer Libyan Chemical W arfare Program�" which concludes that than initially disclosed. National Review's William Buckley Germany's transferof "dangerous tckhnology" to Libya and suggested that Japan be forced to pay for oil at a rate that Iraq is "the product of an as yet unchanging, fatal willingness would eliminate its trade deficitwith the U. S. at the highest levels of German industry and officialdomto subordinate common Western secUrity interests to narrow , Target: German reunification parochialism and greed." German reunification-whichthreatens to pull the props Subsequently, White confidedto a journalistthat a reuni­ out from under the anti-development policies promoted by fied Germany is the center's major "concern." "Once Oct. the Anglo-American elite-is clearly one of the main targets 3 comes around, there will be an absolute hemorrhage of of the Anglo-American powers orchestrating the whole Gulf sensitive West German technology t6the Soviet Union .... scenario. The Germans have indirectly said to us, through their multi­ George Bush and Maggie Thatcher have already an­ billion-dollar aid package to Moscow, that they're far more nounced that they will not be able to attend the Oct. 3 ceremo­ interested in good relationships with the Soviets, than they nies signifying the formal reunification of the divided na­ are with us. I think that there is a high possibility that the tion-an action correctly read in Bonn as a show of Germans could say, 'To hell with CbCom [exportcontrol s]; antagonism to one of the most important developments of the we need relations with the Soviets more than with Washing­ postwarera. In addition, the Bush administration has decided ton, so we will sell Moscow what we want to.' " to send to the Senate for ratification, the recently signed On Sept. 4, center director Frank Gaffney, in a commen­ treaty restoring German sovereignty, and formally opening tary for the Washington Times, called on Bush to "impose the way for reunification-which will give the Senate yet import sanctions against German companiesjudged to have another forum for venting its spleen against a country that is violated regulations controlling exports." In addition, he doing something right. said, Congress should immediately 'hold hearings into Ger­ On Sept. 13, the U.S. Senate, taking advantage of the man export practices. "The model for those hearings could warhysteria, passed two amendments to the ExportAdminis­ be the congressional inquiries of half a century ago when tration Act that are intended as economic warfare against those who sold Japan scrap metal subsequently used to attack Germany. Sponsored by Sen. Jesse Helms (R- N.C.), they U.S. forces were held to account." i

EIR September 28, 1990 National 65 exclusive powerto declare war; Whereas United States Anned Forces were introduced in August 1990 by the President: into a situation in a foreign Congressmanseeks full land and waters where imminent involvement in hostilities is clearly indicated, without cOillsultation with Congress or a U. S. force withdrawal declaration of war by Congress; Whereas this deployment is a commitment of United by Kathleen Klenetsky States Armed Forces into a foreign nation for an unknown period of time; Whereas weaPQns have been fired in connection with Although most members of Congress are enthusiastically "Operation Desert Shield" in the Persian Gulf; backingPresident Bus h's colonialist adventurein the Persian Whereas at least 15 Americans have lost their lives in Gulf, supportfor the policy is by no means unanimous. Rep. connection with "Operation Desert Shield"; Henry Gonzalez, a maverick Texas Democrat who ch� Whereas there has been no solidly defined andconstant the House Banking Committee, has introduced a resolution mission for United States troops in connection with "Opera­ calling for total withdrawal of U. S. forces from the Mideast tion Desert Shield" in that- by Oct. 1. 1) the original deployment was purportedly to ensurethe In a message to an anti-war forum held by former U.S. safety of Saudi Arabia and to prevent an Iraqi invasion of Attorney General Ramsey Clark Sept . 13, Gonzalez hit at that country; the imperialist delusions behind the U.S. intervention. Com­ 2) the basis for the original deployment has been altered paring Bush to Ozymandias, the ancient king whose crum­ to one of protection of American interests in the Gulf States' bling statue in the desert inspired Shelley's poem on the oil supply and to Iraqi withdrawal from Kuwait; fleeting nature of imperial conquest, he asked: "Is George 3) the effect of the"deployment and the sanctions on the Bush a modem Ozymandias , and will he wreck himself and nation's economy as well as on the international community us upon the sands of Saudi Arabia?" was neither analyzed nor planned; and Gonzalez also assailed Congress for abdicating "its re­ 4) the wisdom of protecting foreign oil supplies as 0p­ sponsibility both under the U. S. Constitution and on a basis posed to developing a national energy policy that would end . of loyalty to the people who elected them to office. If Con­ dependence on foreign oil and the whims of foreign govern­ gress will not protect the authority of its legislative enact­ ment officials has not been analyzed; ments who will?" he asked. "00 we or do we not have a Whereas the military forces introduced by the President Constitution? Will Congress maintain the integrity , or will without consideration of thecollective judgment of the Con­ it impeach the integrity, of its deliberations and legislative gress has escalated tension and the potentialfor world war; enactments such as the War Powers Resolution? Do we have Whereas the initial unilateral action by the President was a President? a Caesar? a monarch? a potentate?" taken without regard for the effects that diplomacy might have had to avert this crisis; and Whereas this deployment to the Middle East is subject to the limitations of the War Powers Resolution: Now, there­ Documentation fore , be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That- 1) the deployment of United States Anned Forces into Text of Gonzalez bill certain hostilities in the Middie East is subject to the War u. s. Powers. Resolution; for troop pullout 2) therehas been no declaration of war, specific statutory authorization, or national emetgency createdby attack upon Thefo llowingis the textof resolutiona calling/ or the withdraw­ the United States, its territories or possessions or its Armed alof all U.S. militaryfo rces from the Persian Gulf, which Rep. Forces justifying the President's action in ordering the de­ Henry Gonzalez (D-Tex.)introduced in Congress Sept. 5. � ployment of United States troops; and resolution, H.J. Res. 645, "Calling/or the RemovalofU mted 3) therefore this deployment shall terminate at the earliest StatesArmed Forcesfrom the MiddleEast, " hasbeen referred practicable date, but in no event later than October 1, 1990, to the Comminee on Foreign Affairs. and all United States Armed Forces deployed to the Middle East in connection with "Operation Desert Shield" shall be Whereas the United States Constitution grants Congress the withdrawn.

, 66 National EIR September 28, 1990 the Buchanan column don't print hate literature . "Which brings us to a second definitionof anti-Semitism. And that is a word to describe the branding iron wielded by Attack on ADLsparked a tiny clique, to bum horriblyheretics fromtheir agreed upon Gulf political orthodoxy. It is used to frighten, intimidate, censor by policyfight and silence; to cut off debate; to so smear men's reputations that no one will listen to them again; to scar men so indelibly, Conservative columnist Patrick Buchanan launched an open that no one will ever look at them again without saying, 'Say, attack on the Anti-Defamation League (ADL) and their ilk isn't he an anti-Semite?' for their use of the charge of "anti-Semite" as a tool to smear "To its credit, Americanjournalism, Jewish and Gentile and silence political opponents and suppress debate, in his alike , is waking up to this contemptible attempt to stifle nationally syndicated column which appeared in the Sept. debate, especially on the issue of America's relations with 19 Washington Times. Political figure Lyndon LaRouche, Israel . Regrettably, we did not do so before decent and honor­ incarcerated as a result of a corrupt government task force able men, left as well as right, had careers damaged and which collaborated with the organized crime operation reputations seared." known as the ADL, remarked that Buchanan's comments Buchanan said a change in attitude on what American were a "breath of fresh political air." foreign policy should be toward Israel has taken place "for Buchanan was responding to attacks from a coterie of many reasons . Among them: The manipulation of the traitor Anglo-Israeli poison pens, including most prominently edi­ Jonathan Pollard to systematically lootthe secrets of the most tor and columnist A.M. Rosenthal in the Sept. 14 New York generous friend Israel will ever have. The gratuitous brutality Times, National Review contributing editor Mona Charen, against Palestinian old men, women, teen-agers and chil­ and ADL officials, which started when he began attacking dren. The Good Friday land grab at the Church of the Holy the Bush administration , beginning in a late August column, Sepulchre in Jerusalem. The shipment of cluster bombs to the for adopting a version of Britain's rotten "balance of power" Stalinist Mengistu regime in Ethiopia. The caustic, cutting doctrine in its Persian Gulf adventure . Buchanan identified cracks about my church and popes from both Israel and its this doctrine as the major cause of two world wars this amen comer in the United States. Finally, the hate mail and century. hate columns, every damn time some new fightbreaks out. Buchanan noted that the pretext for Rosenthal's smear of "Comes now a report that Mossad knew in advance ter­ anti-Semitism against himself was over the statement he had rorists were building that Mercedes truck bomb used to mas­ made on "The McLaughlin Report" that "There are only two sacre our Marines in the Beirut barracks-and they deliber­ groups that are beating the drums for war in the Middle East, ately didn't warn us. It is but one measure of the diminished theIsraeli Defense Ministry andits amen comer in the United regard in which Israel's regime is held in this city, that not . States." one personI have spoke to has said he feels Mossad incapable "The truth," Buchanan wrote, "is Israel has been beating of such an act. And, if that charge, made in a new book by a the wardrums for weeks. Every major newspaper, including former Mossad agent, is true, and if they did sit back and Abe's own [New York Times] , reported it. And, Mr. Rosen­ watch those Marines die like that, Congress ought to tum all thal, whom the liberalNation calls one of 'Israel's personal these rocks over before the Israeli government gets another messengers to the New York Times, ' has been leading the dime." war cry. And what I implied was nothing more than what LaRouche responded, "I am so sick and tired of people [Washington Post liberal columnist] Richard Cohen said flat­ supporting the crimes of Israel agai�st the Palestinians and out: 'The problem . . . with those who argue for a quick others , and also the crimes of outright gangsters, such as military strike is that they seem to be arguing from an Israeli the Anti-Defamation League's crowd, the Bronfmans, the perspective. ' Galinskis, and so-forth-these butchers and criminals; ene­ "No, what we have here, friends, is a contract hit, done, mies of humanity . And then, to defend them by means of my guess, in collusion with the same folks who used to feed projecting the charge 'anti-Semite' against anyone who ob­ me all that good stuff on the Rev. Jesse Jackson when I was jects to mass murder, sodomy, drug-pushing, and similar consideredmore relia ble. For the one character who has been crimes-we have had our bellies full of this." LaRouche howling about the 'amen corner' is Abe Foxman of the Anti­ warned, however, "The danger is, that unless we who go at Defamation League." the crimes, take the leadership in dealing with this issue, I'm afraid that real anti-Semites will come to the surface in Anti-Semitism charges used to stime debate seeking a scapegoat. The time to destroy this thing, is now. Buchanan wrote that if he were really an anti-Semite , "I And, anyone who thinks they're Jewish, or sympathetic to wouldn't have lasted 10 minutes in a profession where I have the Jews, better join us , and make sure we do the job, not reveled, on and off, for 30 years. The newspapers that carry the anti-Semites."

EIR September 28, 1990 National 67 Congressional Closeup by William Jones

Medicaid cuts would protect drug firms against the huge Board chairman Alan Greenspan be­ endanger patients costs of research and development of lieves that setting FDIC premiums too A bill introduced by Sen. David Pryor new drugs." high will undermine banks'financ es. (D-Ark.) to compel drug companies The American Bankers Associa­ to cut the prices charged to Medicaid tion expressed support for the mea­ is seen by some medical professionals sure, but said an overhaul of deposit as an attempt to deprive patients of House ups premiums over insurance is still needed. needed medicine. deposit insurance panic The Pryor proposal is aimed to Frantic over the possibility that the force drug manufacturers to bid com­ Federal Deposit Insurance Corp. petitively against each other in each (FDIC), in the face of a threatened SDI whittled to state to determine who will give Med­ bank collapse, would not be able to 'theater defense' icaid the lowest price on drugs found accommodate demands for cash in a Immediately following the Iraqi inva­ to be medically equivalent for a given general bank crisis, the House, on sion of Kuwait, the Senate approveda condition. The low bidder's drug Sept. 17, approved one of the biggest measure forcing the Pentagon to slow would then become the only one nor­ changes in federal deposit insurance down work on strategic anti-missile mally permitted for that condition for in half a century . defenses, the StrategicDefense Initia­ the length of the contract. The Office The bill, sponsored by House tive, whileputting more emphaSis on of Management and Budget has made Banking Committee chairman Rep. "theater defense. " a similar proposal. Henry B. Gonzalez (D-Tex.) and The particular program involved Although formulated to appear to ranking Republican committee mem­ is the Extended Range Intercept Tech­ be aimed at eliminating supposedly ber Rep. Chalmers Wylie (R-Ohio), nology, or ERINT. This involves the overly expensive drugs through Med­ gives the FDIC authority to set premi­ development of a light-weight missile icaid, the legislation could have disas­ ums for deposit insurance at whatever to ram incoming ballistic missiles at trous effects onMedicaid patients. level regulators see fit. The legislation five timesthe speed of sound, causing Gerald Mossinghoff, president of was backed by the Bush adminis­ them to vaporize. This, however, is the Pharmaceutical Manufacturers tration. primarily an upgrading of an already Association, in testimony before a The General Accounting Office existing technology, rather than the Senate Finance subcommittee on and the Congressional Budget Office technological revolution which the Sept. 17, said that the Pryor proposal had said earlier that the $14 billion originalSDI programenvisioned. makes the false assumption that "dif­ insurance fund could be depleted if The Bush administration venture ferent drugs having unique chemical the economy slides into recession or if in the Arabian Desert has ironically structures are somehow therapeutical­ even a few large banks fail. made foes of the SDI thinktwice with ly interchangeable among patients Bankers aren't opposing the legis­ regard to some secondary aspects of who have vastly different medical lation but many believe that it could the overall defense program-the profiles." be counterproductive. Said Kenneth third echelon envisioned in the origi­ A report by Health and Human Guenther, executive vice president of nal program, point defense, or "the­ Services Inspector General Richard the Independent Bankers Association ater missile defense." Even extreme Kusserow made a comparison of pric­ of America, "It further creates the im­ SDI opponentslike Sen. EdwardKen­ es paid by Medicaid in the five states pression that something is rotten in the nedy (D�Mass.), who have worked to with the largest drug outlays, with state of Denmark. I really don't think eliminate SDI entirely, are willing to prices paid in typical Canadian pro­ the FDIC fund is in any trouble at this admit that"maybe there's some justi­ vincial drug programs. Mossinghoff time." fication for increasing that particular also objected to this comparison. "Un­ Although part of the increase in aspect of the program." til recently," he said, "Canadian pric­ insurance premiums will be passed on The House on Sept. 18, by a vote es have been low because of govern­ to customers in the form of higher fees of 225-189, cut the space-based mis­ ment patent policy, but discovery of or lower interest rates, much of the sile defense system to $2.3 billion for new drugs there has been negligible money will have to come out of the fiscalyear 1991, which begins Oct. 1, as a result: the government did not pockets of bankers. Federal Reserve a figure. $600 million less than was

68 National EIR September 28, 1990 approved by the House Armed Servic­ rankingofficials . . . encouraged him Senate intends to consider the recently es Committee and $2.4 billion below . . . and there's no escaping that re­ signed treaty which restored the sov­ the Bush administrationrequest. Rep. sponsibility. " ereignty that Germany lost in World Jon L. Kyl (R-Ariz.) warnedthat con­ In contrast to the House debate, War II, before Congress adjourns in tinued cuts would lead to the nation Senate Intelligence Committee chair­ September for theNov . 6 elections. "being held hostage by some tinhom man David Boren (D-Okla.) gave the In a back-handed slap at German dictator. " intelligence community "very high unification, Mitchell took sharp issue If the V.S. action in the Gulf marks in the 30 days preceding the with published'reports quoting an un­ draws blood, or if Gorbachov is chal­ invasion. " named State Department official as lenged by a nervous Soviet military saying that the treaty did not need the high command, opponents may wish advice and consent of the Senate be­ they had not been so successful in their cause it involves a relinquishingrather rush to gut the SDI. than an assumption of responsibilit­ ies. "Such a view hardly merits seri­ outer nomination S ous consideratiQn," said Mitchell, headed for approval who added that : the Constitution re­ President Bush's nomination of David Democrats score Bush quiresSenate approvalof treaties. H. Souter for the V.S. Supreme Court The administration intendsto send for Kuwait invasion appears to be headed for confirmation In the firstcriticism of the administra­ the treatyto the Senate forratification , by the Senate Judiciary Committee giving opportunity for a continuation tion on Gulf policy, House Democrats and by the full Senate, in spite of a angrily lectured John H. Kelly, Assis­ of the German-baiting endemic on the great deal of ignorance as to the posi­ Hill. tant Secretary of State for Mideast Af­ tions he would take as a Supreme fairs , as he testified before a House Court Justice. Foreign Affairs subcommittee on Souter replied to questioning by Sept. 18 for not getting tough with referring to personal experiences rath­ Iraq earlier. While supporting Bush's er than to legal decisions he had made enate subcommittee insane troop deployment in Saudi or might make on issues of abortion, S trashes NASA budget Arabia, the Democrats indicated that school-sponsored prayer, and civil the administration was not unaware of rights. A Senate Appropriations subcommit­ the Iraqi preparations for an invasion. According to observers, Souter tee has slashed the budget request for Subcommittee chairman Rep. Lee cleared the first two days of hearings the National Aeronautics and Space Hamilton (D-Ind.) referredto Kelly's without offering any definitivepicture Administration for fiscalyear 1991 by earlier testimony when questioned of who he is, leaving liberals and con­ $863.6 million. about a possible Iraqi attack, where he servatives alike uncertain of wherehe This includes a body-blow 35% had said that the "V. S. had no defense stood. At the conclusion of Souter's reduction in the funding request for treaty relationship with any Gulf testimony, Judiciary Committee Space Station Freedom, a program country," i.e., that there was no V.S. chairman Joseph R. Biden (D-Del.) critical to the next step of returning commitment to come to Kuwait's de­ indicated that the committee would man to the Moon on a permanentbasis fense if it was attacked. Hamilton's approve Souter's nomination. and laying the basis for a manned mis­ annoyance with what he saw as State sion to Mars. Department excuses for a failure of NASA Administrator Adm. Rich­ policy marked the first instance of a ard Truly told the panel that the real lawmaker faulting the administra­ difficulties in NASA are not with the tion's actions in the Gulf. Space Station, the Space Telescope, Rep. Tom Lantos (D-Calif.) Senate preparing harsh or the Space Shuttle as such, but his called the V. S. action "a policy prem­ review of German treaty lack of authority lindflexibility in run­ ised on fiction and fantasy." He con­ Senate Majority Leader George J. ning agency programs. A "better tinued, "The obsequious treatment of Mitchell (D-Me.) put the Bush admin­ match" is needdd between NASA's Saddam by a large number of high- istrationon notice on Sept. 18 that the programs and itsresources, he said.

EIR September 28, 1990 National 69 National News

• hours before the execution of convicted lapse. murderer Charles Walker, praising Gov. In his recentbook, On Bo"owed Time, James Thompson for rej ecting appeals from Peterson attempts to package this form of LaRouche campaign religious leaders , attorneys and opponents murder in the name of creating a "high-in­ of the death penalty to block the execution vestment economy" to benefit the next gen­ enrages Establishment by lethal injection. eration. Lyndon LaRouche's campaign for U.S. "I'm pro-death, I believe in the death After relating how the rise in govern­ Congress from Virginia's 10th District is penalty. I'm glad Thompson made the deci­ ment spending for Social Security and enraging the Establishment. sion. Let's get on with it," he said. "It Medicare for the non-poor is bleeding the The first words out of incumbent Rep. doesn't deter murders . It punishes an indi­ economy, the Council on ForeignRelations Frank Wolfs mouth at a Loudoun County, vidual for committing violence against an­ chairman suggests that the main obstacle to Virginia GOP breakfast were complaints other individual-innocent victims. Young reform is the fact that "politicians [are] terri­ about"certain candidates" who receive out­ people, old people walking down the street fied of constituent reaction. Now it is up of-state contributions from political action and in their homes. It doesn't deter crime. to the rest of us, in the economist Herbert committees-as much as 90%. Without It's a punishment," he said. Stein's words, 'to make the world safe for mentioningLaRouche , Wolf said he had in­ According to a five-yearstudy, 23 peo­ the politicians to do the right thing.' " troduced legislation to limit out-of-state ple have been wronglyexecuted in the Unit­ contributions to 49% . ed States since 1905, according to Hugo The Sept. 15 Washington Post be­ Adam Bedau, a philosophy professor at moaned LaRouche's campaign in its "media Tufts University. notes" coverage in the Style section. Com­ plete with a pictureof LaRouche , the article Pat Buchanan assaults attacks the LaRouche for Justice campaign Bush's . Gulf policy committee ads on WTOP all-news radio which covers the greater Washington area. Earth First! expands Syndicated columnist Pat Buchanan contin­ ues his assault against George Bush's Per­ ''The phones at WTOP have been ring­ to New England ing off the hook since the all-news radio sian Gulf fiasco, in a commentary in the station began airing campaign ads" for OverSept. 14-16, the terroristenvironmental­ Sept. 14 W�hjngton Times. LaRouche , the Post reported. ist group Earth First ! conducted an "encamp­ Commenting on Bush's address before " 'The world is on the verge of World ment" in Piscataquis County , Maine. Even a joint session of Congress, Buchanan re­ War m ....The President of the United before the recruiting event began, some 400 minded his readers: "As we swayed to the States hasordered the mass starvation of the "old growth trees" were reportedly spiked music of Mr. Bush's song about a 'New populations of Kuwait and Iraq,' LaRouche north of Baxter State Parle. The sympathetic World Order' recall: Woodrow Wilson's says in one ad. 'This brings to mind the statewide newspaper, theMaine Times, gave 'warto end war' led to Versailles, Adolf images of Adolf Hitler . . . ordering the advance publicity to the gathering under the Hitler and Josef Stalin; the Atlantic Charter starvation of the Warsaw Ghetto. It is time classification"Ecotage ." of Winston Churchill and Franklin Roose­ to say stop this nonsense.' "And yes, without apology , we'regoing velt led to the squalid betrayals of Teheran "If LaRouche wanted to catch people's to defend the restoration of the wilderness and Yalta and 50 years of Cold War." attention, he succeeded," the Post article in Maine because it is sacred . . . and be­ Buchanan attacked Syria, which is now read. cause it feels right," theMaine Times quoted being touted as America's strongest partner unnamed "rendezvous" organizers . among the Arab states. ''To say that Syria Leaders of theencampment were identi­ recognizes its 'shared responsibility for fied as Jamie Sayen, Jeff Elliott, and Gary freedom and justice' is a bit of a stretch. Lawless. After all , where Saddam Hussein gassed 5,000 Kurds, Hafez al-Assad used artillery Mayor Daley revels to massacre 20,000 of his people in Hama. Moreover, he is said to have approved the in death penalty use murder-bombing of our Marines in Beirut "I'm pro-death, le t's get on with it," Chica­ Investment banker and has given sanctuary to the Palestinian go Mayor Richard Daley said in welcoming terrorists who blew up Pan Am 103. Mr. the first execution in lliinois in 28 years. looks to fascism Bush should be wary of this fe llow Mr. As­ Daley admitted that capital punishment is Investment banker Peter Peterson says that sad, who f�ars and loathes Mr. Hussein, not a deterrent to crime, but said he's "all political shifts will be necessary to enforce is capable of a terrorist action, butchering for it" anyway. the deep cuts in entitlement programs for the American abd pointing the finger-and the Daley held a City Hall press conference elderly needed to stave off financial col- U.S. bombers-at Iraq . This man wants a

70 National EIR September28, 1990 Briiifly

• MARION BARRY, the mayor war more than we and he is capable of con­ he raises." The explanation, says Austin's of Washington, D.C. will not be re­ trivingsome horrorto bring it off. " Bob Gibbins ($3.7 million) , is simple: tried, the Department of Justice an­ Buchanan sharply attacked the idea of "�ader supports all of our issues, and we nounced Sept. 17. Barry was con­ PaxAmericana, likening Bush's policy-as support all of his." victed on one misdemeanor count of peddled in recent editorials in the National Forbes comments, "The most visible as­ cocaine possession, but a mistrial Review-to"Trilateral ism, the foreignpoli­ pect of thismutual supportis the devastating was declared on 12 other counts after cy of David Rockefeller." "Where in the bombardment of unfavorable publicity that the jury deadlPcked. Seeking to justi­ Constitution is the U.S. governmentauthor­ Nader and his affiliates, through their unri­ fy the millions of dollars of taxpay­ ized to send Marines to die for 'international valed media contacts, are able to bring down ers' money the DoJ poured into its order'? Why should they die for 'order' and on corporations that are simultaneously de­ eight-year operation to get Barry, 'stability' when the disorder and instability fe nding a product liability issue." U.S. Attorn� Jay Stephens vowed of '89 produced the greatest advances for Nader groups Public Citizen, Citizen that prosecut<)rs will argue that Barry freedom in a half-century?" Action, Clean Water Action, and the Public be sent �o jaili Barry is seeking an at­ Speaking in Petersburg, Virginia, Bu­ Interest Research Group, coordinate their large city council seat. I chanan remindedhis audience that Bush had activities with the eco-terrorist Greenpeace no military response to the invasion of Ku­ organization, Forbes reported. • NEW YORK JUDGE Stephen wait until British Prime Minister Margaret Crane, who presided over the rail­ Thatcher worked him over in a meeting in roadingof LaRouche associatesMol­ Aspen, Colorado. ly Kronberg" Robert Primack, and Lynne Speed, is an official of the Anti-Defamation League. The ADL Du Pont heir wins round has actively 9articipated in the "Get as judge steps down LaRouche" task force. Nader sleaze subject Lewis du Pont Smith, an heir of the du Pont • NEIL BUSH failed to convince family fortune and a candidate for Congress an administrative law judge in Den­ of Forbes expose from Pennsylvania's 5th District, claimed ver, Colorado to dismiss regulators' The sleaziness and duplicityof Ralph Nader victoryafter Judge LawrenceWood recused charges that he violated conflict of and his consumer and environmental fol­ himself from Smith's mental incompetency interest laws while a director of Sil­ lowers was exposed in a cover story in the case. Wood had declared Smith mentally verado savin�s and loan, the Sept. 13 Sept. 17 Forbes magazine, which docu­ incompetent in 1985 because of his support New York Times reported. ments how Nader lives a plush life and "has for the policies espoused by Lyndon controlto varying degrees over 29 organiza­ LaRouche. • CLIFF KELLY, a radio talk­ tions with combined revenues of $75 million "The politically corrupt interests of Ed­ show host for: WGCI-FM in Chicago and assets of at least $23 million." gar Bronfman, the same interests which which serves' the black community, Nader's outfits claim to be non-profit, have taken over my family's chemical firm, was pulled offthe air Sept. 17. Pres­ but they are political, benefit handsomely E.I. du Pont de Nemours, moved in on my sure from the Anti-Defamation from theircampaign s, and benefittheir main family and Judge Wood back in 1985, to League is believed to be behind the financial contributors-liability attorneys. cut off my association with, and financial move. Kelly �ucated his listeners to No fewer than 62 lawyers involved in support of Lyndon LaRouche's political­ world strategic developments and personalinjury and environmental litigation philosophical association," Smith said. had made ext¢nsive use of EIR mate­ make over $2 million a year, according to They failed to intimidate me, Smith said, rial and analysis by Lyndon Forbes. These lawyers are dependent on "but they did manage to get my family and LaRouche. Nader, utilizing his organizations to create a compliant judge to cut me offfinancially . scare stories and win their court cases "Edgar Bronfmanhas beeninstrumental • A FOOD; FOR PEACE -spon­ throughadverse publicity. The lawyers then in his supportof the Departmentof Justice's sored tour of lEast German and Aus­ contribute to Nader and his causes. 'Get LaRouche' strike force , a multi­ tralianfarm l�aders broughtthe mes­ Forbes quotes Frederic Levinof Pensa­ agency, multi-jurisdictional, federal , state, sage of the qast German revolution cola, Florida ($7.5 million income in 1988): and private task force, which includes prom. on how to fight oppression, support "We are what supports Nader. We contrib­ inently the Anti-Defamation League. for freedom . for political prisoner ute to him, and he fundraises through us." "I demand that Judge Wood now come Lyndon LaRouche, and support for And San Antonio's Pat Maloney ($6 mil­ clean, and disclose his contacts with anti­ German unification, to farmers and lion) chimes in: "We support him overtly, LaRouche propaganda and interests associ­ others throughout the Midwest in covertly, in every way possible. I should ated with the Department of Justice's 'Get September. thinkwe give him a huge percentage ofwhat LaRouche' task force," Smith said.

ElK September 28, 1990 National 71 Editorial

Lest wejorget

We have moved one step closer to world war as a result dents , flaunted them. About 30 U.S. troops ransacked of the French response to what was at most a minor Ferrey's house and then displayed a weapons cache diplomatic incident, which, incidentally, the Iraqis which they claimed had been found on the premises. deny having occurred: a violation of the diplomatic The State Department claimed that they had not known residence in Kuwait by Iraqi troops. that the building was a diplorpatic residence, but such According to our best knowledge, the French, Bel­ a disclaimer was preposterous, since diplomatic mark­ gian, and Canadian diplomats were escorted back to ings were clearly in evidence, their embassy compounds from the homeof a Kuwaiti Ferrey protested the incident while it was proceed­ associate of the Kuwaiti royal family, where they had ing , but the colonel in charge communicated this to his assembled. Even if the accounts of Iraqi troops entering superiors and was instructed �o carry on with the raid. the home of diplomats and taking them into temporary The embassy was entered, and the ambassador was custody were true , the fact remainsthat the response of struck and knocked to the ground. an escalation toward total war was entirely dispropor­ It is well to remember that the United Nations did tionate to the supposed offense. One can only assume pass a resolution deploring the U. S. invasion of Pana­ that the French were waiting for such a pretext in order ma. The resolution passed the General Assembly by a to justify giving full support to the Anglo-American vote of 75-20; however, it was vetoed by the United military adventure in the Gulf. States, Britain, and France . Not too long ago, much more egregious violations The report that Gen. Manuel Noriega had "volunta­ of diplomatic immunity occurred in Panama, when rily" surrendered himself to the United States, leaving American forcesviolated the diplomatic rights of other the sanctuary of the home of Papal Nuncio in Panama, nations with impunity. This included the arrest of per­ ignores the circumstance that the United States was sonnel, blasting the Peruvian and Vatican embassies threatening to storm the residence of the Nuncio and with rock music, and the unleashing of mobs against remove Noriega by force . the Cuban, Peruvian, and Vatican embassies. It is well Reuters press service, on Jan. 4, reportedthat Gen. to review some of thismaterial in detail. MarcCisner os, commander of the U.S. SouthernCom­ On Jan. 4 of this year,U.S. troops detained a Cuban mand, said the nine days during which the Army sur­ diplomat, Victor Hernandez Gonzalez, as he left the rounded the residence and blared satanic rock music at Cuban ambassador's residence in Panama. The ambas­ top volume, were intended to persuadeNoriega to walk sador himself was briefly detained by U.S. troops. out voluntarily , "in order to avoid the issue of troops Even more gross violations occurred against the going into an embassy, and particularly one of the Vati­ Nicaraguan government, which asked for an emergen­ can." Cisneros underscored the point: "Obviously to cy meeting of the United Nations Security Council on Noriega, seeing the forces out there put pressure on Jan . 3 . In a letter to the president of the Security Coun­ him. I'm sure that made an impact on his deciding to cil, Deputy U.N. Ambassador Daysi Moncada Bermu­ walk out instead of us having to go get him." dez referred to two incidents by U. S. forces in Panama, On Jan. 3 1, Panama's La Estrella reported that two which, she said, violated diplomatic immunity. The Panamanian bishops were charging that between 5,000 first was the raid on the residence of Nicaraguan Am­ and 7,000 Panamanians had been killed as a result of bassador Antenor Ferrey. The second was entering the the U.S. invasion, and not the 500claimed by the U.S. apartment of two diplomatic functionaries, Omar Southern Command. Former U.S. Attorney General Pineda and Maria Teresa LOpez. This occurred last Ramsey Clark corroborated the accusation in a state­ Dec . 3 1. ment from Panama on Jan. 6, when he charged that the The U.S. government, far from denying these inci- U.S. media were engaged in a "conspiracy of silence."

EIR September 28, 1990 National 72 Turning Defeat into Victory ..

A Total War Strategy Against Peki ng

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