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Isn't It time yo Years, u knew before mont the re hs, SOm Options st of t etimes were he wOr/ Ell! � fi in the d, wha ert bri nger o works? t pOlic and ngs yo n the P Ell! � y backgr u 10-20 w ulse of ert has oUnd I concis here su Londo Its cia. . tems, e neW ch SkU n and mal'- Iwfce a s pr lldugg Washin or by fax week, esent t ery is d gton, (at by firs he alte evised A no extr t. Inc rnative . We a nnual S a cha reasin s, whi lso ubsCriP rge). gly disc ch are tion (U "'m USSed being nited S er/ca, a in Eur tates), $ nd rep ope an 3,500. corr Orted d lbero­ eSPOnd by OUr ents. SPecia Ma strat We cov l ke che egic st er eco cks pa or/es-" nomics yable t Publis ome o and o: hed an f which YWhere W/II n � else. ever be Ne\Vs P.o Se . Box rvic 17390 e Wash ington, D.c. 200 41-0390 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman From the Editor Managing Editors: John Sigerson, Susan Welsh Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Edward Spannaus, Nancy Spannaus, Webster Tarpley, ave any of you noticed how environmentalism has become the Carol White, Christopher White Science and Technology: Carol White StateH Religion of the United States? I refer to the Mother Earth cult Special Services: Richard Freeman also called "Gaia," which permeates every aspect of our society's Book Editor: Katherine Notley culture, while the outlook of Christianity and Judaism is increasingly Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol excluded by the courts and legislatures from even being expressed

INTELLIGENCE DIRECTORS: in debates about public policy, Agriculture: Marcia Merry One typical example: A local library near our editorial offices in Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, northern Virginia displays posters designed-supposedly-to entice Paul Goldstein youngsters to read_ One poster exalts the late Rachel Carson, who, Economics: Christopher White European Economics: William Engdahl as one of EIR's contributing authors points out, is responsible for lbero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus more deaths of children in this century than any other woman, be­ Medicine: John Grauerholz, M.D. cause she helped bring about the ban on DDT, the chemical which Russia and Eastern Europe: Rachel Douglas, Konstantin George had saved the lives of millions of children in developing countries Special Projects: Mark Burdman from killer diseases like malaria_ Next to it, a second poster promotes United States: Kathleen Klenetsky the "greatness" (sic) of Margaret Sanger, who launched the birth INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura control movement in order to prevent the "unfit"-meaning the poor Bogota: Jose Restrepo and the non-white-from reproducing. Sanger's Nazi-like move­ Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen ment's success, bolstered by the financial largesse of leading Anglo­ Houston: Harley Schlanger American oligarchical families, is heading this nation and the whole Lima: Sara Madueno Melbourne: Don Veitch planet into a demographic disaster. Posters commemorating these Mexico City: Hugo LOpez Ochoa two women belong in a Holocaust Museum, not in a public library Milan: Leonardo Servadio New Delhi: Susan Maitra visited by impressionable children. Paris: Christine Bierre This issue contains some powerful ammunition against the new Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson pantheon of pagan, environmentalist gods: Washington, D.C.: William Jones An exclusive report in Economics by Jonathan Tennenbaum de­ Wiesbaden: G6ran Haglund scribes the scientific and technological potentials of the Russian EIR (ISSN 0273-6314) is published weekly (50 issues) proposal for joint U. S. -Russian research in a "Strategic Defense except for the second week of July, and the /ast week of December by EIR News Service Inc., 333Jh Initiative" related area. Pennsylvania Ave., S.E., 2nd Floor, Washington, DC 20003. (202) 544-7010. For subscriptions: (703) 777- In the Feature, economics researcher Richard Freeman proves 9451. that one of the Clinton administration's proposals, the BTU energy European Heflllquarte,.: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, tax, will tum off the lights in what remains of our fragile and delapi­ D-6200 Wiesbaden, Otto von Guericke Ring 3, D-6200 Wiesbaden-Nordenstadt, Federal Republic of Germany dated economy. Finally, in Science and Technology, read about a Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, Michael Liebig Russian contribution to the cold fusion revolution. In Denlllllrlc: EIR, Post Box 2613, 2100 Copenhagen 0E, Tel. 35-43 60 40 For technical reasons, we are meeting an early news deadline In Mexico: EIR, Francisco Ofaz Covanubias 54 A-3 this week and publishing a 64-page issue rather than our usual 72 Colonia San Rafael. Mexico DF. Tel: 705-1295. Japan subscription sahs: O.T.O. Research Corporation, pages. The next EIR will bring an evaluation of the Waco, Texas Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. tragedy, and discuss the degree to which the Anti-Defamation Copyright © 1993 EIR News Service. All rights reserved. League and Cult Awareness Network must be held responsible. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months-$125, 6 months-$225, 1 year-$396, Single issue--$lO Postmaster: Send all address changes to ElR, P.O. Box 17390, Washington, D.C. 20041-0390. •

TIillContents

Departments Science & Technology Economics

52 Panama Report 20 Russian cold fusion effort 4 GrQup of Seven offers Peru rebuffs Panama's blackmail. utilizes solid electrolyte Russia bogus aid package After the success of Fleischmann Of the $43 billion promised, most 53 Report from Bonn and Pons, the Russians may have is not actual money, but smoke and Old monetarists are no lesser evil. come up with an "encore," mirrors. Every real dollar being according to the weekly of the Ural offered is tied to more of the same 54 Andean Report Bureau of the Russian Academy of "shock therapy" policies that Sciences. Carol White reports. created the present crisis in the first Talk of legalizing drugs in plac¢. Colombia. 22 What are tungsten 55 Report from Rio bronzes? 6 Russia's new SDI offer Is Brazil on the Yugoslav path? heralds scientific and 24 How 'big science' stifles strategic revolution 61 Music Views and Reviews discovery June Anderson, come home to "bel By particle physicist Dr. Giuliano 10 Senior Russian official canto." Preparata. confirms SDI proposal

64 Editorial 11 The LaRouche SDI The u.s. must go nuclear. economic policy versus Phil Gramm's 'Brand X' From the weekly radio broadcast "EIR Talks with Lyndon Photo and graphic credits: Cover, LaRouche." New York City Convention & Visitors Bureau; design by EIRNS/ 13 FOIA documents show Philip Ulanowsky. Pages 14, 28, 48 farmers and government (Zia, Bhutto), 60, EIRNS/Stuart systematically defrauded Lewis. Page 25, EIRNS. Page 27, The U. S. Department of Brown & Root, Inc. Page 31, Agriculture has known for years Department of Energy. Pages 23, that bankers and others have been 29, 38, EIRNS/John Sigerson. Page defrauding farm loan programs­ 41, UNHCRIA. Hollmann; (inset) but nothing was done to stop it. EIRNS/John Vines. Page 46, Dave Bancroft. Page 48 (Nawaz Sharif), Government of Pakistan. 16 Currency Rates

17 Banking Bailout money goes to maintain bubble.

18 Business Briefs •

Volume 20, Number 17, Apru30, 1992

Feature International National

40 U.N. paves the way for 58 Masonic judge jails two to Serbian takeover of Bosnia save Albert Pike statue With the fall of the eastern Bosnian Civil rights activist Rev. James town of Srebrenica, the Serbs have Bevel and historian Anton Chaitkin launched a new offensive to were jailed on outrageous charges consolidate their gains-while of "statue climbing," for leading a U.N. commanders drink brandy demonstration at the statue of with the Serbian military chieftains. Freemason and KKK founder Albert Pike in Washington, D.C. The famous New York City skyline-five years 42 Wiesenthal defends Two days earlier, the National hence? Serbian crimes Conference of Black Mayors passed a resolution calling for the statue to 26 Energy BTU tax will be removed. 44 Italy: a plebiscite against plunge U.S. into darkness the state The new tax being proposed by 60 The LaRouche case: New President Clinton will tax energy ADL revelations added to 45 New evidence shows Inter­ use, starting with 25. 7¢ per I freedom bid million BTUs contained in coal, American Dialogue threat oil, gas, nuclear, and hydroelectric to Ibero-America 62 National News power. This will cut energy consumption and production, slash 47 Ishaq Khan seizes control jobs in the goods-producing sectors in Pakistan of the economy, and jeopardize what remains of the U. S. 49 South Africa at crossroads productive economy. Yet so far, between vision and there is no significant resistance to pragmatism the plan. By Richard Freeman.

51 Will U.S. occupy Haiti under U.N. auspices?

56 International Intelligence �TIillEconomics

Group of Seven offers Russia bogus aid patkage

by Marcia Merry

In the first emergency session of its kind, the foreign minis­ The $43 billion total actually consists of$28 billion worth ters and financialrepr esentatives of the Group of Seven (G- of programs announced in Tokyo, piled on top of$ 13 billion 7) met April 14-15 in Tokyo, and announced a $43 billion of previously anounced programs, practically none of whiCh "aid" package for Russia. The leaders from the United States, are in fact aid. Here is what ac;:tually has been committed by Canada, Japan, Britain, France, Italy, and Germany also the G-7: agreed to postpone a U.N. Security Council vote on imposing • Fifteen billion dollarsin debt "relief." Of the declared sanctions on Serbia until after the April 25 Russian political $43 billion in aid, fully$ 15 billion, or more than one-third, referendum. Both these actions were taken in the name of is to take the form of "debt relief'-a more polite word for i assisting President Boris Yeltsin to achieve "stability" in a moratorium on payments to western creditors (principally Russia. However, the net effect of the measures taken will Germany) of Russia's estimaq::d$ 80 billion in foreign hard­ actually be to increase the instability in Russia, and the war­ currency debt. As one leading London-based Russia analyst fare in the Balkans. put it, "This is merely acknowledging the status quo, because First, the $43 billion aid package is a sham. Second, Russia anyway is not paying this debt." while President Yeltsin himself may have asked the G-7 • Thirteen billion dollars in aid tied to the IMF and to postpone the U.N. Security Council vote until after the World Bank. Of this amount, $3 billion is from a new IMF Russian referendum, whatever happens that day, the Russian program billed as help for countries moving to a market government will be no stronger than it is now, and meantime, economy. However, the same old IMF deadly conditionali­ the Serbian war proceeds with its hideous destruction. ties will apply, which, under Russia's current "shock thera­ Only a real economic development intervention in Russia py" program, have wreaked havoc in the domestic economy and real assistance to Bosnia can contribute to the much­ and brought the country since January 1992 into a state of discussed "stability" in world economic and political affairs. hyperinflation. The potential collaboration between the United States and Part of the remaining $10 billion of this $13 billion is Russia that was raised at the Clinton-Yeltsin April 3 Vancou­ World Bank loans for various purposes, but contingent on ver summit, for joint work in anti-missile defense, is the austerity, and part is concessions to private westerninter ests. direction to follow. The World Bank is "offering" to cooperate with countries to back their respective export creditagen cies, so that they will Smoke and mirrors guarantee loans for specificpro jects in Russia. One example The G-7 told Russia on April 15 that it was granting some is for Russian oil and gas to be developed under specifications $43 billion in aid to help support Russia's embattled "reform" that will benefit western oil companies and banks-in other process. But the fine printreveals that the new program offers words, looting. only more of the same lunatic "shock therapy" that has been • Some $4. 1 billion in IMF "stand-by" credits are of­ implemented to date by the International Monetary Fund fered, but only on condition of the implementation of "a (IMF). comprehensive macroeconomic stabilization program."

4 Economics EIR April 30, 1993 Again, killer conditionalities. sian Supreme Soviet, which was carried live on Russian • Three billion dollars in IMF "transformation" funds, television, preempting all previously scheduled program­ of which only $1.5 billion is to be given to Russia up front. ming, that economic "shock therapy" has brought about the • Six billion dollars for the IMF's long-promised "ruble full-scale criminalization of Russian politics and economic stabilization fund," provided Russia agrees to follow strict life. "The people of Russia were robbed twice last year: once IMF demands for budget reduction and price increases, guar­ because of shock therapy and the liberalization of prices, and anteeing further domestic economic chaos. once because of those sums of money and resources which, • Four and a half billion dollars in loans from the World without any consent, were sent abroad," Rutskoy charged. Bank, conditional on "structural reform," for the oil sector­ the part of the package especially favored by private western Shock therapy has criminalized economy traders. He said that those responsible for the economic reforms • Ten billion dollars in aid from G-7 member-nations, of the Yeltsin government were to blame for the wave of in the form of promises of state trade credits to guarantee organized crime: "This is a direct consequence of shock ther­ export to Russia of such items as U.S. grains or Japanese apy. Organized crime controls up to 40% of the Gross Nation­ machinery. At best, these credits aid the national sectors of al Product. The mafia groups are planning to use all of the the nations originating the goods; at worst, the credits line funds which western countries propose to invest in Russia. the pockets of the giant commodities houses such as Archer . . . The organized crime system which is growing up in Daniels Midland or Cargill, and amount to govemment­ Russia is not only trying to takeover the entire economy, but backed subsidy of these cartel companies. also the entire political life." In short, Russia's Boris Yeltsin has a package of empty Rutskoy singled out six individuals in the Yeltsin team promises and further foolish G-7 insistence on IMF condi­ for responsibility for this: Yegor Gaidar, former prime minis­ tionalities. ter and architect of the IMF "shock therapy" policies; former presidential aide Gennady Burbulis; deputy prime ministers 'Just a lot of zeroes' Vladimir Shumeiko and Aleksandr Shokhin; Anatoly Chu­ Even Russian economics official Boris Fyodorov, the bais, deputy prime minister in charge of privatization; and former employee of the World Bank who represented Russia information czar MikhailPoltora nin. According to Rutskoy, in Tokyo at the G-7 meeting, came back and said that there "These people are interested in maintaining the course of is "not much in it for us . . . just people playing around with reforms which contribute to their pockets and to the pockets a lot of zeroes. " of black-marketeers. I am sure criminal acts are being com­ The IMF "shock therapy" policies to date in Russia, and mitted behind the President's back. [These Yeltsin aides] are in all other parts of the former Soviet sphere, have led to the doing their best to win the referendum. Only then can they political fracturing now under way. Without a reversalof the hope tohide their crimes, to finallylegalize the shadow econ­ austerity policies, there can be no political stability, and no omy." He further stated that these individuals had "inter­ war-avoidance. This is the real issue, which is being avoided vened and messed up the creation of those bodies which in all discussion about the April 25 Russian referendum. were supposed to be cracking down on corruption, and had "Non-Important Russian Referendum," is how the Swiss allowed operationson the border of legality to take place." daily Neue Zurcher Zeitung covered the issue on April 20. Rutskoy's charges seemed to cohere with the aims ex­ The article stressed that the referendum, taken so seriously pressed in an article by former U.S. Director of Central in the West, will, in and of itself, decide nothing concerning Intelligence William Colby published in New Perspectives the country's political crisis. Citing the polls, the Swiss paper Quarterly, the journal of Chicago commodity speculator noted that it could be expected that Yeltsin will receive a Richard Dennis, in which Colby promoted the postwarsuc­ majority of the votes cast, and thus will proclaim himself the cess of the cigarette black market in Italy as a model for "winner." However, he will receive far short of the support Russia. "Russia finds itself in the same stage as Italy then, of 50% of all registered voters, and the opposition will use now the pack of Marlboros has replaced the Lucky Strike. this to declare him the "loser." The black market is expanding but will become a market Leading figures in Russia, such as Parliament Speaker calling forth around 50,000 small traders. These in tum will Ruslan Khasbulatov, are also emphasizing that the referen­ promote the creation of wholesalers and producers who will dum will decide nothing. The Neue Zurcher Zeitung observes be needed to supply them." The post- 1945 Italian black that it was Khasbulatov and the Congressof People's Depu­ market was run by Camorra and Mafia clans under the ties who made the referendum irrelevant by pushing through control of U.S. intelligence and Meyer Lansky partner a clause requiring support of 50% of all registered voters for Charles "Lucky" Luciano. German customs and police offi­ a valid "yes" vote on each question. cials unanimously assert that the cigarette smugglers over­ Indeed, Russian Vice President Aleksandr Rutskoy running eastern Europe and Germany will be the main nar­ charged on April 16 in an SO-minute address before the Rus- cotics traffickers in the next years.

EIR April 30, 1993 Economics 5 Russia's new SDI offe r heralds scientific and strategic revolution by Jonathan Tennenbaum

Leading western experts in strategic and military affairs pri­ defense system known to constitute a crucial element of the vately admit they were caught completely offguard by reports Soviet war-winning strategy known as the "Ogarkov Plan," of an official Russian proposal to the United States for joint and originally projected to be completed in the late 1980s or development of a "global system of anti-missile defense" early 1990s. Although the Izvestia announcement implies incorporating revolutionary "plasma weaponry." The sur­ that some important breakthroughs have been accomplished prise was so great that editors of the West's so-called free by Russian scientists, key technological components of the press, with one exception, decided not to publish a single plasma weapon have repeate

6 Economics ElK April 30, 1993 The diagram printed in

Izvestia on April 2 . showing two phased arrays. in diameter (see drawing in lower right-hand comer) . Each billion watts? At the very least, the resulting microwave module contains accumulator banks for storage and concen­ weapon might knock out sensitive guidance systems and oth­ tration of electrical energy, microwave generators , and an er electronic components of missiles and warheads. Subse­ antenna element. The modules are arranged in a regular geo­ quently, America's Lawrence LivermoreLaboratory initiat­ metrical array and connected together with power sources ed a series of laboratory tests of the effects of ultra-high­ and a complex electronic control system which "shapes" the power microwave pulses on militaryhardware . total wave-form emitted by the system in space and time. Izvestia describes exactly this sortof feared combination Electronically controlled arrays of antenna-elements, of phased arrays and high-power microwave generators, but known as "phased arrays," are a well-known technology in with an additional feature based on advanced work in the the West. Phased arrays are used for advanced radar systems domain of atmospheric and plasma physics. In Izvestia's capable of tracking many objects simultaneously. Electronic figure we see the high-power beams from the phased arrays control of antenna-elements, shifting the relative phases of focussed not mainly on the target itself, but rather on a region emission by those elements, makes it possible for an array in the atmosphere directly ahead of the target. In that region without moving parts to generate highly directional beams the focussed microwave energy ionizes the air, causing a and to change the direction and focus of those beams nearly type of "structured" electrical discharge, known as a "plas­ instantaneously. Furthermore, a technique known as "syn­ moid," to be created. The plasmoid in tum creates a massive thetic aperture" permits such an array to simulate the effectof disturbance of the air flowaround the target object, causing a single gigantic lens in the focussing of microwave energy. it to divert from its path and to break up under the influence In the mid- 1980s the United States repeatedly com­ of huge aerodynamic and mechanical forces. plained of Soviet construction of very large phased array To understand this type of effect of a plasmoid-caused radars which violated the terms of the 1972 Anti-Ballistic atmospheric disturbance, one must bear in mind the tremen­ Missile Treaty . Such radars, the U.S. alleged, had no plausi­ dous energy which a ballistic missile warhead carries upon ble purpose but to provide precise tracking information for a re-entering the atmosphere. The survivalof the warheadand territorial anti-missile defense system, forbidden by the 1972 its ability to hit precisely a chosen targetdepend on achieving Treaty. At the same time, however, concern was voiced in a stable, predictable aerodynamic behavior during re-entry some westernquarte rs, that the big arrays might be more than at hypersonic speeds. For related reasons, meteors and other simply radars , i.e. tracking devices. What would happen, if non-stabilized objects invariably break up and are partially instead of the relatively low emission power employed for or fully burnedwhen they fall to Earthfrom space. Izvestia's tracking, such phased arrays were connected to gyrotrons diagram specifies that the plasmoid is created in a state of and other devices generating microwave pulses of up to a motion, generating shock waves and other effects which de-

EIR April 30, 1993 Economics 7 stabilize the target's aerodynamic configuration. At suffi­ with mastery of the principles and technology of ultra-high­ • ciently high energy-densities, collision with a plasmoid could power microwave generation and propagation, together with presumably destroy the target directly. advances in suitable electronic control and processing techniques, which provide thd basis for the new plasma Background information on plasmoids weapon. "Plasma" is a general term for an electrically conductive state of matter generated from a gas, for example, under the High-power microwave generators action of extreme heat, radiation or powerful electromagnetic From the mid-1970s on, Russian laboratories have taken fields.The term "plasmoid" refers to the fact, that under the world lead in development of technology for generation certain conditions a plasma can develop a self-contained, of high-power microwave pusl�s. The famous "gyrotron," self-stabilizing structure based on the magnetic and other which utilizes a relativistic electron beam to generate such effects of internal configurations of electric currents within pulses, was invented and perfec�ed in the Soviet Union.Fol­ the plasma.This property of plasmas was discovered in the lowing 1975, western observerS noted a curious decline in 1950s in early experiments in controlled nuclear fusion, and the number of publications in this domain, indicating that a is crucial to some of the most promising schemes for ad­ major portion of research had gqne"underground" into secret vanced fusion reactors.Plasmoid structures have been pro­ military programs.The 1988 E� special report noted: i posed as the possible explanation for the strange and elusive , phenomena of "ball lightning," which have been the subject The Russian program to �evelop high peak power of much scientific controversy, partly because of possible radio-frequency (and microtave) has involved scien­ military applications. In July 1982, an EIR Sp ecial Report tists active in Russia's strate$ic defense program: Leo­ on "Beam Weapons: The Science to Prevent Nuclear War" nid Rudakov of the Kurchato:v Atomic Energy Institute included the following information on plasmoids and "plas­ (who specializes in intense re ativistic electron beams), ma beam weapons": A.A.Rukhadze and Y.A.V fnogradov of the Lebedev Physics Institute (who specialize in plasma electronics The Soviet Union ... has had a major research and X-ray lasers), and many others. A useful review program in plasmoids since the middle 1950s when the of Russian work on radio-frequency devices is RAND first plasmoids were produced at Lawrence Livermore Corp.Report R-3377, "Soviet Development of Gyro­ Laboratory in California.A review of Soviet research trons" by Simon Kassel (May 1986).... How did it on ball lightning lists literally hundreds of experimental happen that the Russians deJVeloped high peak power projects devoted to the subject.The Soviet research in gyrotrons that at some freq�encies operate efficiently this area has been well funded and has attracted the at peak powers three orders of magnitude greater than highest levels of Soviet scientific interest, including P. in the West? ...The high peak power machines have Kapitsa, the Soviet Nobel laureate.Recent intelligence no application to the area of �nterest in gyrotrons in the reports indicate that the Soviet Union is now conduct­ West (heating of magnetically confinedplasmas). . . . ing large-scale propagation experiments involving the The United States didn't starta serious program in high generation of high energy plasma beams.The appear­ peak power short-pulse gyrotrons until 1984. ance at regular intervals of a high frequency radio sig­ nature typical of plasmoid experiments has been inter­ Besides gyrotrons, Russian laboratories produced many preted by European intelligence agencies as striking other important technologies in,the domain of pulsed micro­ confirmation of the practical application of the long­ wave generators, high-current e�ectron beam generators, and term Soviet interest in plasma beams. pulsed power systems relevanCto strategic defense.From a technological point of view, the plasma weapon describedin The author of this article attended the 1978 Nobel Prize Izvestia is based on a "favorite" area of Russian leadership lecture by Pyotr Kapitsa, in the course of which the Soviet and expertise. scientist described experiments on the generation of plasm­ oid-like structures by high-power microwaves.Since then, Focussing and propagati�n problems research has progressed a long way. As the Izvestia article Several features of the di�ram and short explanation emphasizes, Russian scientists have led the world in the provided by Izvestia will surely lead to interesting specula­ relevant area of plasma dynamics. We would add to this tions among specialists in the West, at least until more de­ their mastery of the complex interaction among plasma, tailed information is supplied., For example, the "moving electromagnetic radiation, and particle beams-an area plasmoid" shown in front of thel target (a warhead) looks like where the "civilian" science and technology of controlled a mirror image of the target i�self. Is this achieved by an nuclear fusion intersects that of anti-missile beam weaponry, ingenious analog/digital data-processing technique, similar and one of the highest priority areas for Soviet research since in effect to the "phase conjugation" methods pioneered by the 1950s.It is the combination of plasma physics together the Russians in laser optics? This technique might fulfill

8 Economics EIR April 30, 1993 the function of an otherwise extremely difficult computer Will Russia help revive America's SDI? analysis of the wave-form scattered back from the target The pioneering breakthroughs embodied in Russia's and (possibly from the developing plasmoid), in order to plasma weapon contrast rather favorably with the sluggish precalculate, in real time, the complex effects of the atmo­ performance of America's Strategic Defense Initiative­ spheric conditions and interactions on the propagation of the whose most promising areas of research have been crippled microwave pulses. The Izvestia article merely indicates that by the combined effects of savage budget cuts and "dirty "it becomes possible for the first time to combine in a single tricks" from the SDl's enemies inside and outside the United complex, the system for radar tracking and the system for States. Indeed, the most revolutionary areas of "new physical electronic delivery to the target, with the speed of light, of principles" which were the focus of Lyndon LaRouche's the means of destruction-the plasmoid." original design of the SDl policy initially adopted by Reagan Related to this is another problem, oftencited by western in March 1983, came under strong attack, were soon cut back experts: how to deliver the large energy required to generate and finally virtually phased out, especially during the Bush a localized plasma in the atmosphere, without dissipating administration. Symptomatic is the collapse in spending on most of that energy in heating and ionization of the air be­ "directed-energy" systems-including laser, particle-beam, tween the emitting array and the target area? An antenna microwave, and plasma weapons-which were initially the emitting powerful microwaves will tend already to heat the core of the SDI program, in favor of the relatively Stone Age air in its immediate vicinity. There are a number of ways technology of the so-called "smart rocks" (precision-guided known in principle for how to counteract this problem, but anti-missile warheads based on advanced sensors and ultra­ it is difficult to surmise from the short Izvestia article what compact microcomputers). LaRouche emphasized that the specific solution the Russian scientists have found and per­ latter sort of system could never provide the kind of global fected. defense necessary to shiftaway from the doctrine of "Mutual­ Based on known areas of concentration of Soviet funda­ ly Assured Destruction"-the original mission of the SDI. mental and applied research, it is nearly certain that the cho­ The process of destruction of the SDI was of course insep­ sen solution involves exploiting the nonlinear characteristics arably connected with the persecution of LaRouche himself, of propagation of powerful, "soliton-like" pulses in the atmo­ leading eventually to LaRouche's frame-up and finalimpris­ spheric medium. In simplified terms, a "soliton" is a wave onment, at the demand of the Soviet leadership, in January which transforms the medium as it propagates, in such a way 1989.This underlines the irony of the present juncture. For, as to self-focus its energy in a single, stable pulse which it was LaRouche himself who originated the idea of offering resists any disturbance. A rapid series or "packet" of such joint development of SDl technology to the Soviet Union, solitons might be emitted in such a way, that the solitons and who personally presented that offer on behalf of the U.S. "condense" into a giant pulse only in the desired target re­ government, in confidential "back-channel" discussions with gion, without dissipating in the intervening medium. The Soviet representatives in the course of 1982. At that time the corresponding area of fundamental research, which goes Soviets vigorously rejected the idea, on the grounds that a back to BernhardRiemann's 1859 paper on acoustical shock U.S. crash program of anti-missile technology based on "new waves, and its implications for so-called "isentropic com­ physical principles" would cause the West to jump far ahead pression," has long been a specialty of the most advanced in economic and technological power. The Soviets opted to Soviet research. It is key to advanced nuclear weapons de­ try to suppress the U. S. SDl by any means possible-while at sign, to laser- and particle-beam fusion, and many other the same time pressing ahead with their own, first-generation areas, including future industrial applications of beam tech­ beam defense system! nology and energy-dense plasmas. Already back in 1982, LaRouche advised the Soviets Independently of this, westernexperts have long pointed that a common development of SDI provided the unique to unique Russian expertise in radio and radar propagation opportunity for solving the most devastating problems of the in the Earth's atmosphere-an area intersecting some far­ Soviet economy. Provided that the SDI effort were organized reaching problems of geophysics. Over decades, bizarre ra­ in accordance with LaRouche's parameters for economic pol­ dio-frequency signals have repeatedly been monitored from icy, the "spill-over" effects of SDl technology into the civil­ the Soviet Union, including emissions from huge transmitters ian economies of the United States and Russia would pay whose purpose has never been clarified. Speculation was back the investment in beam weapons many times over. oftenvoiced concerningSoviet development of exotic weap­ LaRouche warned that a Soviet refusal of the U.S. offer for ons capable of modifying the Earth's ionosphere over large joint development would make a collapse of Warsaw Pact areas, and/or causing "over the horizon" disruption of tele­ economies during the ensuing approximately five years, vir­ communications and computer systems, and perhaps even tually certain. That is exactly what happened! A decade after biological effects. Whatever the explanation, it is clear that their initial, vigorous rejection of LaRouche's proposals, the the Soviet experiments involved areas of expertise which Russians now seem to have understood his point. are broadly relevant to the newly revealed plasma weapon Meanwhile, the virtual dismantling of the U.S. SDl under capability. the influence of George Bush and his friends guaranteed the

EIR April 30, 1993 Economics 9 The plasmoid project, he underlined, was designed to be Russia's secret answer to the U.S. Strategic Defense Senior Russian official Initiative. You will remember, tbe Russian official contin­ confinns SOl proposal ued in his public remarks, that the Russians said that there will be an unconventional response to the SOl. Russia's topmost secret research institu� were involved in it. He Speaking in Rome on April 20 at the Assembly of the affirmedstrongly that against th�s plasmoid design, there Western European Union conference on the subject, was no technologically possible1countermeasure foresee­ "Anti-missile Defense for Europe," Dr. Leonid Fituni, able. He said that there were alsp discussions in progress director of the Center for Strategic and Global Studies of on the GP ALs system, and that while everyone may assert the Russian Academy of Sciences in Moscow, stated: publicly that the ABM Treaty was valid, it could be dis­ "Joint testing of a plasma weapon may be the first joint counted in reality. The "Trust" project could become a anti-missile program between the United States and Rus­ major point on the agenda between the United States and sia, as discussed during the Vancouver summit between Russia, Fituni added. Presidents Yeltsin and Clinton. The joint project called On the same day, Russian Science and Technology 'Trust' is based on plasmoids created by microwaves and Minister Boris Saltykov also confirmed in Washington, optical laser-generating systems." where he was speaking on a fornm on Russian science at Dr. Fituni was asked by EIR's correspondent to ex­ Georgetown University, that th¢ SOl joint-research pro­ pand on his comments in his speech on the "plasmoid posal was discussed at the Vancouver summit. In answer weapons" project. He responded that he could confirm to a question from EIR's reporter, he stressed that the that the matter was discussed between Presidents Clinton Russians are ahead in some areas in lasers and directed and Yeltsin. It was not yet a formal proposal and there energy projects, citing work at iArzamas and at the Og­ was not yet a decision on it, he specified. He believed that ninsk Physics Institute where lasers are being used with it was in a state of stalemate and that there was opposition nuclear energy to create a pulsed neutron reaction. "There to it, perhaps also in the United States where there might is already collaboration on some projects apart from the be fear of competition. military technology," he said.

downward slide of the U.S. economy into this century's worst work. For example, microwave-priven plasmoids promise to depression. The only way out of the economic and political become a crucial "working medium" for the production of catastrophe now gripping both East and West is to combine a new and old materials in tomorrow's industry. In the United revival of LaRouche's original SOl policy, as a joint effort States, a prototype plasma reduction using a plasmoid-like with Russia and other nations of the former Soviet Union, with structure has been tested, which produces high-quality steel a massive, global program of basic infrastructure develop­ and other metals by direct reduction in a fraction of a second. ment centered on the European "Productive Triangle." This A single unit the size of a garage would have the throughput means particularly: high-speed rail and magnetic levitation of a present-day blast furnace! Such furnacesoperate at tem­ transport systems, "second-generation" nuclear energy, de­ peratures of 1O,OOO°C or more in a highly nonequilibrium, velopment of water infrastructure and communications, to­ energy-dense regime which win make it possible to produce gether with a complete reconstruction of health and education entirely new types of exotic materials. Using highly structured systems according to the requirements of the 21st century. plasmoids permits us to run a material efficiently through a In this context, infrastructure and SOl development com­ rapid series of phase changes, including "shock" heating and plement each other: On the one side, massive development cooling and exposure to various radiation regimes. Plasmoid of infrastructure provides the "transmission belt" for propa­ furnacespromise also to become the most efficientmeans for gating the waves of new technologies, created in an all-out processing various formsof waste into useful materials. How­ SOl effort, through the advanced machine-tool sectors into ever, in order to exploit these advantages, we have to go to a the entire economy; on the other hand, the effect of these much higher intensity of energy consumption in industry. new technologies is to greatly cheapen the relative cost of That, in tum, is a question of infrastructure! production for infrastructural and related capital goods. Will the Russian proposal forjoint development of plas· Thereby, as LaRouche emphasized, "we can spend all day rna weapons and a global defense system, tum the tide of long on SOl technology, and become richer all the time." history and revive LaRouche's· original policies for peace The science and technology behind the Russians' plasma and economic recovery? It is t00 early to tell, but Izvestia's weapon provides an excellent illustration of how this will announcement is surely a step ill!the right direction.

1 0 Economics EIR April 30, 1993 EIR Talks with Lyndon LaRouche

The LaRouche SDI economic policy versus Phil Gramm's 'Brand X' What follows is excerpted from the weekly radio broadcast policy. If we can reverse, hopefully, the disaster which was "EIR Talks with Lyndon LaRouche" for April 8 and April brought upon us by the idiocy of Margaret Thatcher and the 14. The interviewer is Melvin Klenetsky.If readers are inter­ lunacy of George Bush, who took the greatest opportunity ested in having their local radio station broadcast these inter­ for peace and gave us a crisis instead, we can get out of this views, they or their stations can contact Frank Bell at mess. (703) 777-9451. The firstpart of the excerpt is from April 8. To do that, we have to utilize scientificand technological progress, an investment boom based on that, to get the U.S. EIR: Mr. LaRouche, we have been discussing your negotia­ economy and other economies moving again. This economic tions on the Strategic Defense Initiative that took place back policy, which is being used to wreck Russia and eastern in the 1980s and the new "SDI" offer by Boris Yeltsin. Why Europe, has already wrecked the United States economy; and should Bill Clinton accept this offer? people like Phil Gramm, who are opposing even the petty, LaRouche: Let's take a look at something, skip ahead to token policy of job stimulation which President Clinton has the big breaking news in the United States this week. We put forward , are the fliesin the ointment. have an old adversary of mine, I must say a very dangerous We have to get this crowd out of the way; we have to get idiot-and I use the term idiot in a qualified sense-Sen. the Thatcherites out of the way, and get back to traditional Phil Gramm [R] of Texas. American emphasis on scientific and technological progress Gramm started out as a university professor in, shall we and investment along those lines. This Russian offer can be call it, "Brand X" economics, the type that he preaches at a kind of stimulant, a catalyst, which eliminates the danger the top of his voice to this day. He became a Democratic of a renewed conflict between West and East, and which, at representative in the House of Representatives, and then he the same time, as an intellectual and scientificstimulant , will became a "boll weevil" Democrat; and then he completed his help to push us in the direction that Phil Gramm wants to transformation into a Republican and became a senator as a prevent us from going .... reward for jumping ship to the Republican Party. Gramm is obsessed with the triumphant sound of his EIR: Clinton is in a big fight now with Phil Gramm over the own incompetence. He insists that deregulation, radical free $16 billion job stimulus program. What would you say about trade, radical monetarism, and so forth and so on, is the cure that policy? Is it adequate? Is more needed? Clinton at this for everything: It is real snake medicine. point is running into massive opposition. Now, the problem for the United States, and for our allies LaRouche: It is only a token program. But it is a foot in the as well, is that if we continue to apply Dr.-Professor-Senator door, which utilizes heavy pressure from constituency groups Gramm's snake-oil medicine to eastern Europe and the for­ to get some jobs going. mer Soviet Union in the form ofInternationalMonetary Fund We had Robert Reich, who is now secretary of labor, [lMF] conditionalities, in the form of Jeffrey Sachs's snake­ who has indicated that if we do not see some job increases to oil medicine from Harvard, and so forth , we are very soon match the fairy tale of recovery which has been coming out going to come to the point that the former Soviet Union will of Wall Street, then we are going to have to take some action. emerge in the form of a Russian empire-not a communist And Clinton is taking very modest, token action, putting his system but a Russian system. It will not be making direct toe in the water, so to speak, to get a kind of jobs program thermonuclear war against us, though it will have the capabil­ going. ity virtually to do so .. .. That is all right. By no means is it enough. We are way, In Washington, as Secretary of State Warren Christopher way, far from anything that will actually turn the situation has indicated, this Russian conflict is at the center of a whole around. But the interesting thing is to look at how pitiful the host of conflicts globally, including our domestic economy Clinton program is, in terms of a need, and to see that at this

EIR April 30, 1993 Economics 11 point fanatics like Phil Gramm realize that this is a toe in the lates; and every theorem developed was perfectly consistent water, and that if they do not stop it now, that this is going with those axioms and postulates. And thus the axioms and to build up and we are going to have an actual major job­ postulates predetermined what kinds of theorems you could creating program-real jobs-not the kind of phony sand­ develop. wich-flipping jobs at minimum wages on which some people If you changed the axioms or postulates in part, as some are trying to support families and can't.But a real recovery people also remember, such as changing the so-called paral­ will be in the works, and that Gramm does not want ... lel postulate, you would get a different geometry with differ­ ent theorems as possibilities, and a different overall result. From EIR Talks with Lyndon LaRouche, April 14. In history, it is the same thing.The superiority of western civilization is not based on some specific fixed doctrine, EIR: What are the implications in terms of strategic matters because we have had many changes, as many of us know between the United States and the former Soviet Union, be­ who studied anything of history in the past 550 years.We tween the former Soviet Union and westernEurope, between have had bad changes, we have had changes for the better. the different nuclear republics in the former Soviet Union, For example, the United States, originally, was one of should your policy be adopted? those changes for the better. We have a Constitution which LaRouche: .. . The more fundamental strategic issue is not is unprecedented in that period-the original federal Consti­ a military one, in the ordinary sense, but is rather an econom­ tution of the United States, towardwhich we no longer show ic one .. .. much respect, but it was a very good Constitution. It was The problem is, that as of today, the eastern European original. economies are generally down to a level of 30% of the agricul­ But it came under a certain set of axioms, which were tural and industrial potential they had in 1989. And in the adopted in the middle of the 15th'century.Look at the popula­ former Soviet Union, we have a similar condition, not quite tion curve, look at the income figures for various parts of as drastic, but nonetheless strategically decisive. the world, and wherever these axioms were introduced after This economic issue, with its social and its political­ being developed in western Europe, they have resulted in a social implications, is the major strategic issue. As long as bettering of the potential for existence of the individual, the the United States continues to support what is called free family, and of the potential for individual freedom. market, shock therapy, IMF conditionalities, and the kind of Instead of thinking about details of what policywill work, central banking which the Federal Reserve still demands, we you have to think of what kind of axioms of policymaking are headed toward a potential war. must be adopted to bring nations with different structures So these foolsin Washington and elsewhere have got to get to agreement on a set of policjes which, even though the off it and get back to reality.Unless they give up the idiocy of implementation may be different from one country to anoth­ shock therapy and free market and so forth that they launched er, the principles are the same and therefore the various theo­ in 1990, they are going to drive the Russians into a mood.There rems that different nations adopt will be compatible. is now in Russia a great lethargy; this lethargy is a precursor of Now, in economics, the basic principle is this. a massive rage. Once that erupts, the strategic situation, in Actual net profit, that is profitfrom labor. comes only its present form, becomes uncontrollable, at least from the from technological progress. That is, by increasing produc­ standpoint of being able to do anything good.. . . tivity through technological progress, we increase what peo­ ple produce over and above what they require to consume to EIR: Mr.LaRouche, you gave an incredible statistic, that be able to produce at that level; �nd that margin of difference eastern Europe is operating at 30% of its industrial and ag­ is the source of physical profit for society as a whole. ricultural capacity.What are the alternatives,or, as you put So if you employ enough people using the right technolo­ it very, very clearly, what is the only rational approach that gy, they can improve their standard of living, and that factor can be taken in terms of policy toward this part of the world? of improvement is the profit which, presumably, they rein­ LaRouche: Two things have to be understood and one thing vest in further improvements. must be emphasized, because very few people in the world, That is the principle of scientific and technological prog­ including in government or among so-called professors in ress; and from about 1440 A.D. until about 1966, that was universities, have any understanding whatsoever of the basic the prevailing axiomatic policy of the United States and of principle of history. western Europe. Some people, of course, remember geometry-some It was also the policy of developing nations which wished people who are old enough, actually had a course in geometry access to the right to have the Sl1lffie kind of economic policy in junior high school or high school. They remember that for themselves. People were talking about equality, parity, they started with Euclidean axioms and postulates, and they equal opportunity for developing nations, and what they could derive, with aid of construction, every theorem in Eu­ meant was that they wanted theiright to technological prog­ clidean geometry by starting with those axioms and postu- ress ....

12 Economics EIR April 30, 1993 documents show f ers and FOIA arm government systematically defrauded by Brian Lantz

Over the last six months, EIR has published extensive, first­ To top it off, in late 1992, congressional hearings on farm hand accounts by farmers of instances of mishandling and credit also compiled relevant testimony. Witnesses came for­ outright fraud in the matter of farm debt in the heart of the ward from the FmH A with reports of instances of fraud all farm belt (North Dakota, South Dakota, Nebraska, and Iowa) the way from Virginia to the Southwest. over the last 15 years. During the 1992 presidential cam­ The following is a summary of our FOI A information. paign, Rev. James Bevel, the vice presidential running mate The picture emerges of aU.S. Department of Agriculture of Lyndon LaRouche, initiated a post-election campaign to operating outside the law, willfully committed top-down to take the results of citizens' hearings to state legislatures and liquidating the American family farmer through aiding pri­ Congress in order to right the wrongs as rapidly as possible. vate financial institutions and others. Not only has the Office As Bevel put it, "to restore government, of, by, and for the of Inspector General had much of the picture, but, appar­ people." An extensive dossier of fraud in the farm belt called ently, so did the U.S. Congress. "The Goodloe Report," named after retired Washington State The FmH A is the largest direct lending institution in the Supreme Court Justice William Goodloe who presided over federal government,almost entirely concentrated in the farm citizen hearings in the Dakotas in December 1992, is now in areas of the nation. The FmH A makes farm, housing, com­ circulation. munity program, and rural development loans to individuals Now, this writer has recently obtained documentation and entities who cannot obtain credit elsewhere. As of June through Freedom of Information Act (FOI A) requests, show­ 30, 1992, some 1 million borrowers owed FmH A over $46 ing that for the past few years, the pattern of malfeasance billion. In addition, FmH A had guaranteed $1.3 billion in and fraud was clear to any U.S. Department of Agriculture loans made by private lenders to 13,000 borrowers. Despite official and any congressman who wanted to bother to look the antiseptic, regulators' phraseology which sounds like the at the evidence. The FOI A material in hand makes clear how bank regulator reports from the early 1980s on the already the USD A has known for years that financial institutions, out-of-control Texas savings and loan fiasco, the Office of and others, have been systematically defrauding the Farmers Inspector General's reports show that the FmH A is being Home Administration (FmH A) loan programs. raided. And the USD A has let it happen. Audit reports by the Office of Inspector General (OIG) In the S&L disaster, it was government action which and investigation reports of the USD A Farm Loan programs openly exacerbated the problem, with the 1982 congressional detail the hushed-up findingsby the OIG of nationwide abuse deregulation of the banking system. Then it was the govern­ and fraud. The document numbers of these audit and investi­ ment, including the regulatory agencies, that let the S&L gation reports are readily available---especially to Congress. bubble grow until the taxpayer was dragged in to take the hit. Later it was found that the raiders included organized crime­ Organized crime involved connected "developers," Wall Street junk bond operators, Such extensive documentation, even without the benefit the CI A, and mega-financial institutions. of the recent state legislative hearings and our coverage of them, shows that the basis for a federal investigation of crimi­ OIG reports fraud nal conspiracy involving national officials of the USD A, Each department of the federal governmenthas an Office FmH A, and private financialinstitutions and individuals was of Inspector General with responsibility to audit the activities there all along. Moreover, what is alarming in the pattern of of the department. The semiannual reports of the Office of farm loan fraud is the prominence of such organized crime Inspector General of the USD A to the U.S. Congress have figures as Minneapolis-based Carl Poh1ad and the involve­ oh-so-quietly recorded for over two years a growing national ment of such foreign interests as the Netherlands-based Ra­ scandal: bobank. These outfitshave systematically cashed in on feder­ • The OIG-USD A "Semiannual Report to Congress for ally guaranteed farm loans, while farmers went bankrupt. Fiscal Year 1991-Second Half," released in October 1991,

EIR April 30, 1993 Economics 13 includes a subsection entitled "Debt-Restructuring Proce­ dures Do Not Control Losses From Farmer Program Guaran­ teed Loans." A pattern of fraud is presented thus: "For example, in one state the borrower's repayment ability was determined using a IS-year repayment term even though the lender could offer only a six-year term . Thus, the borrower appeared able to afford the payments when in fact he could not." . Desperate farm families were drawn into taking these loans; they defaulted, and were then forced from their farms. The bank, or "third party noteholder," was repaid by the FmHA, and someone walked away with the farm as well. • The executive summary of the "Semiannual Report to Congress for Fiscal Year 1992-First Half," released April 30, 1992, reports: "Losses fr om FmHA -guaranteed loans are increasing partly because lenders are passing on to FmHA the risk of loss from older, unstable loans. About 79% of the $10 million in loans we reviewed were used by lenders to refinancedebts Former Washington State .' IJ,r>rpmp held by their own customers who were already in financial Goodloe, whose hearings in North jeopardy" (emphasis in original). documented widespreadfraud and governmentfa rm programs. • A "nationwide" pattern of fraud was admitted in the same OlG report of April 30, 1992: "We performed a nationwide review to analyze the causes officeassi stant pled guilty to to make a rural hous­ of losses on Farmer Program guaranteed loans. In FY 1990, ing loan to a fictitious h()IT(),Wf,.r and converting the loan to FmHA paid about 600 claims totaling $26 million to lend­ their own use. The OIG evidence of corruption in ers .... multiple state and county of FmHA. This latter "Lenders used FmHA guaranteed loans to refinance farm pattern is heavily corroborated the documentation in the loans previously made to customers who were already in "Goodloe Report" showing in North Dakota and South financialjeopa rdy. By doing this, the lenders avoided losses Dakota. on their existing loans and passed the risk on to FmHA .. .. What the cited OlG summarize, based on their "Lenders inflated appraised values of real estate security, own audits and investigations, · that the FmHA loan and which led to significant losses. FmHA did not require lenders "restructuring" programs, and to obtain independent appraisals of security at loan origi­ gram, have been helping besides farmers. As farm­ nation." ers reported subsequent to Judge Goodloe's hearings, Carl . • The OIG "Semiannual Report to Congress for Fiscal Pohlad is one such beneficiary . Year 1992-Second Half," released Oct. 27, 1992, reports that the FmHA loan guarantee program took up to three years Fraud reported to Senat hearing to repurchase guarantee notes from third-party noteholders The Senate Subcommittee 6n Agricultural Credit held (banks), subsidizing these financial institutions with interest hearings on Aug. 10 and Sept. 3p, 1992 on Senate Bi1l 3119, payments for years after the farmer had defaulted on his proposed legislation to reorganize the appeals systems of the FmHA guaranteed loan. The OIG reports that the FmHA various USDA programs. Testimony was taken on cases of could have saved millions by "placing demands on third­ abuse. On the House side, Rep. IMike Espy (D-Miss.), since party noteholders," i.e., repurchased the FmHA guaranteed appointed head of the USDA by President Clinton, intro­ notes in a timely manner. duced parallel legislation to im�rove the appeal process. • The OlG had, in 1989, designated the Farmers Home While S. 3119 was at best another poor attempt to "fix" Loan Programs a "high-risk area" that had a "high risk of what congressmen admitted w1s a "broke" farm program, vulnerability to fraud, waste, abuse or mismanagement." the hearings themselves revealed a great deal . First, that the FmHA and other USDA prograJns have been documented in Who benefits? congressional hearings to be engaged in massive violations The OIG-USDA documents reviewed report additional of the civil rights of farmers nationwide. Second, that these patternsof fraud carried out by FmHA borrowers and guaran­ USDA policies have been carrietlout top down, as deliberate teed lenders , including housing developers. policy, which was corroborate� by the FOIA documents of In Virginia, an FmHA county supervisor and a county the FmHA's own policy directives.

14 Economics EIR April 30, 1993 Among the witnesses was Karen Sorlie Russo, a Califor­ tor of FmH A to erode the NAS, beginning no later than nia attorney with an extensive legal practice representing December 1988, included "active lack of support," "harass­ farm families. Russo testified about how non-farmers flock ment and personal attacks" on NAS hearing officers, threat­ to feed at the FmH A trough, regardless of the prospect of ened termination, "intimidation," refusal to tum over official bureaucratic problems that federal agencies pose. case documents, and administrator interventions to "set­ "If the 'real' farmers are deterred by these hazardous aside" hearing officers'decisions and enforce forclosures. bureaucratic wars, 'investors' are not. 'Investors,' by which Dillion testified that the entire National Appeals Staff I mean people or companies whose primary income is from was removed from the "assessment review process after we something other than farming, continue to flock to the pro­ uncovered numerous violations of regulations, including fail­ grams relatively unimpeded by any new laws or rules you or ure to give borrowers and applicants their appeal rights and USD A come up with. After all, they can afford attorneys to failure to implement the appeal decisions." Dillion testified structure their farm correctly.They can impress a bank or a that these efforts, spearheaded by the FmH A's national ad­ cotton gin, who are usually willing to extend financing­ ministrator, were coordinated with county FmH A staff and after all, the bulk of an investors assets are not in the crop to state FmH A program directors to render the NAS impotent. be produced, making investors a far better credit risk than As the OIG-USD A semiannual reports show, state and local farmers." FmH A officials have been implicated in lender fraud and Many witnesses raised the point again and again, that the abuse of FmH A loan programs, as the USD A and FmH A USD A's "railroad" of family farmers has been systematic Office of Administration knew or should have known. USD A policy for years.The so-called 1985, 1987, and 1991 Wendell L.Fennel, an NAS hearing officer in Lubbock, reforms changed nothing fundamental. Texas, testified to "outrageous" conduct of FmH A Office In 1987, there was legislation to set up the National Ap­ of Administration officials and state staff.Fennel reviewed peal Staff (N AS), which was an appeals structure much tout­ selected cases.In one, a farmer is into his 16th or 17th appeal. ed by various and sundry "radical" farm groups such as The issues are denial of release of proceeds for essential PrairieFire Rural Action.But as testimony shows, this struc­ farm operation expenses, or denial of a loan.Despite Fennel ture was toothless. reversing the local FmH A officials and Fennel's decision Only the appearance of due process was provided.Never being upheld by the NAS rehearing officer, the FmH A has conceived as a court of equity, the NAS system could not continued to appeal the decision. hold FmH A officials in contempt or otherwise enforce its Fennel gave detailed testimony as to continued communi­ own rulings. By the end of 1988, the USD A and FmH A cations by the NAS director to override codified law and Office of Administration was simply back to imposing its regulation.Such policy directives were presented as part of own dictates, ignoring existing statutes and regulations.In the testimony.Fennel testified that the NAS was now forcing most cases, those policies coincided with those of the food hearing officers to "get on the bandwagon" or face dismissal. cartel companies, from which many of the USD A's top offi­ As Fennel testified, the real offense is to the "appellants cials were chosen. [farmers] who have to be dragged through these appeals" The 1992 Senate hearings were held by Kent Conrad (D­ again and again, otherwise known as keeping farmers "in the N.D.) and Charles Grassley (R-Iowa).Testimony came from loop." At one point the FmH A stripped Fennel of his author­ the General Accounting Office;former officialsof the FmH A ity because he went to Congress with his evidence. and "whistleblowers" from the NAS; farm organizations in­ Fennel is an experienced NAS hearing officerserving the cluding the National Farmers Union, American Agriculture Southwest.NA S hearing officers do not deal with the request Movement, National Farm Organization, and the Wheat for FmH A guarantees on loans.That, and the matter of col­ Growers; attorneys with experience in representing family lecting on such loan guarantees, comes out afterforeclosure, farmers; and others. in court.The job of N AS hearing officersis to work to ensure that the farmer gets a fair shake and hopefully avoids bank­ Damning testimony ruptcy.The problem is that the insanity of the farm system, What follows are summaries of some of the testimony expressed by the inability to get an honest, parity price return taken during the 1992 hearings on S. 3911. on investment, guarantees the farmer's bankruptcy. Pamela M. Dillion, former director of the NAS of the FmH A, testified that she was hounded from office within Common types of abuse months of taking the newly created program.The NAS came Fennel and other NAS officersreport the following com­ into being in May 1988, to provide farmers with a means to mon types of "fraudand abuse" carriedout by FmH A county appeal adverse actions by FmH A. Most farmers represent and state officials: themselves in these hearings-the appeals process being set Stealing farmers' livelihood. The law prevents the re­ up to avoid attorney's fees which most farmers can't afford. lease for sale of proceeds of crops for application to loans Dillion testifiedthat systematic efforts by the administra- when the proceeds are required for operations or essential

EIR April 30, 1993 Economics 15 living expenses. However, FmH A officials, as a matter of record , have refused again and again to obey the law, seizing urr the proceeds from crops and applying the proceeds to out­ standing loans.The farmer then must go into debt in the local C ency Rates community or fail to put in his crop.The farmer gets branded The dollar in deutschemarks as having "bad credit" and the FmH A then refuses additional New York late afternoonfixing loans.The farmer is bankrupted. 1.70 Bleeding the farmer to death. As a matter of record, FmH A agents have systematically engaged in delaying the .., 1'10.. 1.60 ,..... - processing of loan applications. By delaying the loan past -- prime planting season, including the use of the NAS appeal 1.50 process to this end (normally 60-90 days), the farmer is de­ nied his loan.Most farmers, of course , don't have sufficient 1.40 capital to cover these basic expenses otherwise. Stealing from the elderly. In attempting to collect on 1.30 defaulted FMH A farm loans, the FmH A has carried out its 313 3/10 3/17 3124 3131 4n 4114 4121 own euthanasia program. Legally, agents of FmH A can go The dollar in yen after "non-exempt assets," those defined as not necessary or New York late afternoonfixing non-essential for living expenses. In one case, FmH A offi­ cials illegally grabbed a widow's $20,000 certificate of de­ 140 posit, even though that was her only wealth, aside from a meager social security check. 130

The farmer-an unprotected species 120 I -- - Karen Sorlie Russo also testified at length to a similar - 110 pattern of abuse of farmers by the Agricultural Stabilization and Conservation Service (ASCS) as well as FmH A. Her 100 testimony made the point that the heinous USD A policies 313 3/10 3/17 3/24 � 3131 4n 4114 4121 dovetail with the environmentalist agenda of the USD A: "How can a farmer be forced to appeal the same issue to The British pound in doDars FmH A's National Appeals Staff, over and over and over, New York late afternoonfixing win every appeal, and still be faced with the same FmH A program staff denial? ... 1.70 "By the time either of these agencies get through dealing 1.60 with a farmer, he is likely to be bankrupt or close to it.If the only opportunity for redress is federal court, then participat­ 1.50 .- .-/r-� ing farmers are the last unprotected species around...... _if' "As far as ASCS is concerned, by denying 'relief' to 1.40 I virtually every farmer who appeals to the Washington level, : the agency is able to play interesting and self-serving games 1.30 with their budget.In depriving the appellant of the govern­ 313 3/10 3/17 3124 3/31 4n 4114 4121 ment payment, the benefitof the bargain the farmer contract­ The dollar in Swiss francs ed for, and by simultaneously delaying the appeal so that the New York late afternoonfixing government still gets what it wanted-the land set aside, the production decreased-a very neat package of 'savings' 1.60 results.Not honorable savings, of course, but extractions of capital from those least able to afford it. Like the crooked 1.50 J------salesmen who sell 'retirement homes' on property that hap­ �� "" pens to be under water, or the financialsharks who sell worth­ 1.40 I less ' investment' packages to the elderly, the ASCS promises 1.30 a payment.But once the governmenthas what it wants, they cry , 'Gotcha !' to a specified number of farmers a year, and 1.20 refuse to pay. This kind of fiscal conservatism we don't 313 3/10 3/17 3124 3/31 4n 4114 4121 need."

16 Economics EIR April 30, 1993 by John Hoefle Banking

Bailout money goes to maintain bubble thriftsfell by 30%. The money fo r the savings and loan bailout is actually going to Between the passage of Firrea and mid-1992, commercial banks ac­ save the banks and support the financial bubble. quired some $171 billion in thrift de­ posits.Were all those deposits to have been put into a new bank, that institu­ tion would have the largest deposit n testimony before the House Bank­ the government, in what has become base of any bank in the country. By ingI Committee on March 16, Treasury known as the "S&L bailout." comparison, at the end of 1992, Citi­ Secretary Lloyd Bentsen asked Con­ The Financial Institutions Re­ corp had $144 billion in deposits, gress to approve an additional $45 bil­ form, Recovery and Enforcement Act Bank America had $138 billion, lion to deal with bankruptsavings and of 1989 (Firrea-the so-called S&L Chemical had $94 billion, and Na­ loan institutions.Bentsen repeated his bailout law) was not, as Bentsen cor­ tionsBank had $83 billion. request the next day to the Senate rectly noted, designed to rescue the Firrea also reintroduced lending Banking Committee. thrifts.Its purpose was to transfer the restrictions and tougher capital stan­ "There has been a lot of confusion best assets of the S&Ls, and their $1.2 dards for thrifts, forcing them to sell about this program," Bentsen told the trillion in deposits, to the big commer­ assets in order to raise their equity cap­ senators."It has been labeled a 'bail­ cial banks and their allies, while stick­ ital-to-assets ratio. The effect of this out.' That is dead wrong.... Not a ing the U.S. taxpayer with the losses. was to force thrifts to sell their best dollar has gone to 'bail out' bankrupt "You're going to see a real buying assets, while keeping their worst. S&Ls or to pay off their share­ spree by commercial banks of S&Ls Commercial banks and investors fi­ holders." over the next few years," thrift analyst nanced by commercial banks bought Bentsen was telling only part of Bert Ely warned in July 1989. many of these assets at fire-sale pric­ the truth: The so-called S&L bailout By June 1990, less than a year es, transferring even more of the is not a bailout of the S&L system, but after the signing of Firrea, the newly S&L's wealth to the banks. of the banking system and the finan­ created Resolution Trust Corp. had From its August 1989 inception cial speculators. sold 110 failed thrifts.Eighty-one of through February 1993, according to The speculative frenzy which de­ them had been bought by banks. Bentsen's Senate testimony, the Res­ stroyed the S&Ls began in 1982, with NCNB Texas, the bank created when olution Trust Corp. had seized 737 the passage of the Garn-St Germain NCNB Corp.of Charlotte, North Car­ S&Ls, closing 654 of them and plac­ Depository Institutions Act. Prior to olina bought the remains of the failed ing another 83 in conservatorship, Gam-St Germain, S&Ls were restrict­ First RepublicBank Corp. of Dallas, where they remain open under gov­ ed to making mostly home mortgage purchased 18 of those thrifts,boosting ernment control. During that period, loans.By throwing out these restric­ its assets by $7 billion to $33 billion, the RTC seized $438 billion of assets tions, Garn-St Germain opened the making it twice as large as its nearest and sold or collected $337 billion. floodgates,and the speculators rushed Texas competitor. That's more than twice the size of m. NCNB went on to acquire the ail­ Citicorp in seized assets, and more The fast-buck artists began in­ ing C&S/Sovran, transforming itself than Bank America and Chemical vesting in all sorts of speculative ac­ into NationsBank, the fourth largest Banking combined, in sold or collect­ tivity, from real estate to junk bonds. bank in the United States, and a prime ed assets. As the bubble grew, these thrifts made example of the effects of Firrea. The remaining $101 billion, Bent­ huge apparent profits, prompting oth­ By May 1992, ten of what had sen said, "consists substantially of the er thrifts to get into the act.But these been the 25 largest thrifts in the coun­ hardest-to-sell iand and real property, profits were illusory, and by the late try five years earlier-including Fi­ and non-performing mortgages." 1980s, the high-flyingthrifts were be­ nancial Corp.of America, Crossland Thus far, the government has ginning to crash and bum. Savings and Goldome-were out of spent more than $275 billion, before Having served their purpose by business or under government con­ interest, on the S&L component of the pumping up the real estate and junk trol.Those 10 thrifts once held 40% bank bailout, and that figure will ex­ bond markets for half a decade, these of the assets of the top 25.During that ceed $320 billion if the additional $45 looted thrifts were then taken over by five-year period, the number of U.S. billion is obtained.

EIR April 30, 1993 Economics 17 BusinessBrief s

I Economic Policy Akbar Hashemi Rafsanjani when he visited He singled o�t Clinton adviser Michael Man- Moscow in 1989. delbaum of lohns Hopkins University, who Papua New Guinea China said in February that it had agreed recentlyproposed a "Polish solution" for Rus­ resists diktat to sell Iran two 300-megawattreactors. Iran's sia. ''This would be aterrible mistake ," Cohen IMF atomic energy chief Reza Amrollahi said in said, "the problem of shocktherapy is thatit is September that Teheran was also discussing making, very fast, one victim of note: de­ ''The International Monetary Fund is not al­ the purchase of two 44O-megawatt reactors mocracy." ways right; we will make our own decisions," from Russia, according to Reuters. Papua New Guinea Deputy Prime Minister and Finance Minister Sir Julius Chan told a business conference in Brisbane, Australia the Infrastruqture week of April 12. "Experience in other devel­ Russia oping countriestells me that when it comes to Southeast sA ian dealing with your own, you determine your Cohen: 'shock therapy' own policy according to your own needs." road link proposed The minister was reacting to an IMF call fueling anti-Americanism on the government of Australia's western The transportministers ofVietnarn,Laos, and neighbornot to take furtherequity in mines or Harvard University-architected "shock thera­ Thailand wilJ meet in Hanoi in late April to oil fields. The confidential IMF report, re­ py" policies are feeding a moodof anti-Ameri­ finalizea plruil to build a roadlinking threethe vealed in the AustralianFinancialReview ear­ can backlash in the Russian population, Prof. countries, thttHanoi Voice ofVietnarn report­ lier in the week, said investors could be forced Stephen F. Cohen of the Center for Russian ed on March:25 . The ministers are to decide to renegotiate by the ultimate threat of nation­ Studies of Princeton University, warned inan which possil)le roads already approved are alization. The April 15 Financial Review interviewwith the Frenchdaily Le Monde on most suitable. backed the IMF position in an editorial head­ April 14. A spokesmanfor the consultantcompany lined, "Papua New Guinea Needs to Heed the Cohen, who supports increasing aid to workingon tilepro ject said thatthe three coun­ IMF's Advice." Russia, said, "I would hopethat this aid would trieshave to talkabout how to sharetherespon­ On the government's decision to take a bemore generalized and less conditional. Un­ sibility as w�ll as finding funds. But she was 50% stake of the $1.25 billion Lihir gold proj­ til now, it has been too dogmatic ....Now , confident that work on the road will begin in ect should the presentowners , RTZ, PIc (80%) more andmore Russians say to each other that early 1994 and take no longer than two years and Niugini Mining, Ltd. , fail to finda third they expect nothing from the West . . . and to complete. ' partner in four weeks, the minister acknowl­ America primarily, is going to feel the first edged that "maybe" the government was ig­ backlash effects of this disappointment. For noring the advice of the IMF. many people who have seen their savings dis­ appearbrutally and who have suddenly fallen Biological Holocaust below the poverty level . . . the United States i is, fromhere on, associated with the effectsof CryptoSporidium may Energy the shocktherapy which has been inflictedon occur anywhere them at the beginning of the reform process, I Iran ratifies nuclear and of which they arethe firstto sufferthe ef­ fects." The presence of cryptosporidium, thebacteri­ deals with Russia, China Cohen warned that the United States um that caused an outbreak of disease in Mil­ should not continue to link Yeltsin the person waukee, WistonsininearlyApril, is nowrela­ The Iranian Parliament ratifiedseparate agree­ with the "process of reform," since it is Yelt­ tively commbn in surface water around the ments with Russia and China on nuclear coop­ sin's economic policies which have failed. United StateS,and any place where watersys­ eration for peaceful purposes on April 14, The United States must not "dictate" con­ temsaround the countryfail in their filtration Iran' s IRNAnews agency reported.The agree­ ditions to Russia, Cohen said, referring "to all or are otherwise cut back, a similar outbreak ments relate to Iran's planned purchase of nu­ the financiers who have advised the Russian could occur, experts say. clear power stations from Russia and China authorities on remedies that have no relation Dr. HerlJ!!rtDuPont, aninfectious disease and cover other aspects like research. with the complexity of the situation, or, better expert at th¢ University of Texas Medical The 12-point pact states that neither side yet, to the economists from international School in Houston, told the April 14 Houston should pass on results of joint researchto third banks." LeMonde asked, "Or Harvard?"Co­ Chronicle �t cryptosporidium occurs at low parties without the written permission of its hen said, "Yes, they too areresponsible. The levels in � water systemsand the problem partner. worst is that, in spite of the gravity of the situa­ is that researchers have not yet established The deal with Russia, inherited from the tion on the ground, certain experts support, what levels or the organism is necessary to in­ Soviet Union, was signed by President Ali froma distance, a moresevere shockthera py." fect individuals or cause anoutbreak. The En-

18 Economics EIR April 30, 1993 Brilfly

• CHINA will order more wide­ body Boeing jet planes, Reuters re­ ported April 14. The order could top vironmental Protection Agency (EPA) has beexported to Thailand, as will the electricity the $800million order placed in early fundeda study by DuPont in which volunteers from other large-scale hydroelectric projects April for 20 Boeing 737s and a 757. exposed to different levels of cryptospori­ in Laos planned by Vientiane. This objective are China also purchased $300 million in dium in order to establish what the threshold is generally agreedto by Thailand, which aims goods from Chrysler, Ford, and GM, level is which will cause infection . to boost the imports of power from its two and analysts believe they are intended DuPont said the organism was firstidenti­ neighboring countries (Malaysia and Laos) to to influenceBi ll Clinton's impending fied in 1976 in a three-year-oldchild. Healthy meet its fast-growing power demand. decision on extending China's Most adults infected with cryptosporidium experi­ The Thai and Laotian governmentsare due Favored Nation trading status. ence about 10 days of ordinary diarrhea, to conclude an agreement under which Thai­ cramps, and pain. "It hits toddlers and AIDS land would essentially becommitted to import • AIDS-HIV infects a "frighten­ patients hardest," he said. 1,000-1,500 MW from Laos in the future . ingly huge proportion" of organ do­ The first known outbreak of diarrhea A memorandum of understanding to this nors in Paris, France Transplant an­ caused by cryptosporidium in a filtered water effectwhich was signed on March29 , will pro­ nounced in mid-April. Some 2.3% system occurred in 1987 in Carrollton, Geor­ vide Laos with a guaranteed market for the of all Paris organ donors have been gia, where 13,000people were affected. The electricity which will beproduced from a half­ found to be infected. Atlanta, Georgia Centers for Disease Control dozen or so large-scale hydroelectric projects reportedat the time that the organism is highly upon which Laos plans to embark during this • THE U.N. said April 15 that it resistant to chlorine, and ordinary techniques decade. The combined generating capacity of will help restructure and privatize for disinfecting water did not work. That out­ those projects is more than 2,500 MW, far ex­ Vietnam's state firms, Reuters re­ break was triggered by the removal of some ceeding Laos' own consumption which now ported. The U.N. Development Pro­ water-filtering equipment. The water seemed peaks at 60 MW. Exports of electricity from gram claims at least one-third of to meet all EPA standards at the time . Obvi­ thesehydroelectric pro jects are intended to be­ about 12,000 state enterprises are not ously, with the breakdown and disrepair of in­ come the top foreignexchange eamer for this viable, and will "restructure and clear frastructure, many communities could experi­ land-locked state . their overdue debt, and close the ones ence outbreaks. that are bankrupt or have no hope of turning a profit."

• THE V A TICAN'S Pontifical Asia Africa Council for the Family "is expectedto publish the first church document ex­ Laos wants Thailand in plicitly devoted to the issue of popula­ Zambia denounces IMF tion," the monthly Catholic World Re­ joint energy project for 'undue interference' port reportedApril 15 . An adviser who worked on the draft of the document Laos would like the Thai government, though told the magazine that the Church "will the Electricity Generating Authority of Thai­ The governmentof Zambia denounced Inter­ reject the idea that the world is danger­ land (EGAT) , to become a co-investor in the national Monetary Fund demands for deep ously overpopulated." gigantic Nam Theun hydroelectric project in budget cuts as "undue interference" in its inter­ the centralregion, the Bangkok Postreported nal affairs ,in an official reply over the Easter • ARAB LEAGUE members have on March26. The Laotian governmenthas dis­ weekend to IMF recommendations that the decided unanimously to extend urgent cussed the possibility of undertaking the proj­ Zambians scrap their defense budget in order assistance to Iraq to help it overcome ect, estimated to cost over $1 billion, with pri­ to meet conditions for potential IMF bridge the scarcity of medicines and medical vate sector firms from a number of countries loans. supplies it is suffering as a result of the including Thailand, Australia, and in Scandi­ The government of Zambia, which has U.N. embargo, the Jordanian paperAI­ navia. been engaged in a long and fruitless struggle Ray reported on April 7. The project would becarried out in stages with the Fund's experts, decided to draw a line with an ultimate generating capacity of 810 now and tell the IMFthat thereare limits which • IRAN devalued the rial against megawatts . The overall project, situated di­ its experts should respect. the dollar by 7% on April 14, a day rectly opposite Nakhon Phanom in Thailand, The Zambian move comes two weeks after after itdeclared the currency convert­ is planned to be completedin the year 2000. harshdenunciations of the IMF by the govern­ ible. It was the second devaluation in Laotian Vice Minister of Industry Kbam­ ment of Kenya (see EIR . April 9, pp . 4-6) . less than a month, and followed the mon Phonkeo said that the desireto have Thai­ Fears among monetarists that more Black Afri­ slump of the rial on the open market land's EGATbe come a co-investor is based on can governmentsare expectedto adopt the new to nearly 20% below its officialvalue theassumption that the entire electricityoutput hard line against the IMF has beenreported in on April 11. from the planned large-scalepowerhouse will the London Observer and other press.

EIR April 30, 1993 Economics 19 �TIillScience & Technology

Russiancold fusion; effort utilizessol id electrolyte Aft er the success qfFleischmann and Pons, the RUSSians may have come up with an "encore," according to the weekly qfthe Ural Bureau qfthe Russian Academy qfSciences. Carol White reports.

At the Third InternationalConf erence on Cold Fusion, held "Science of the Urals," which appeared in October 1992 , in in Nagoya, Japan Oct. 21-25, 1992 , Russian scientists re­ the weekly newspaper of the Ural Bureau of the Russian ported upon some sensational results, which ifcorroborated, Academy of Sciences, headlined "Cold Fusion: Encore of a would imply a leap ahead to practical applications. One Sensation. " It was given to me bythe Russian scientists when researcher, Dr. Yan R. Kucherov, reported on an experiment I was at Nagoya, and is of interest to our readers, both for which he claimed has been repeated 1,000 times, and which its description of the experiment, and also for the commen­ he said produced 500% excess power. It is induced in a tary on the general situation of Russian science. The editors vacuum chamber, using a thin palladium foil and a gas dis­ would like to acknowledge the help of translators Denise charge method of loading.. he found a large increase in Henderson and Rachel Douglas. helium-4 concentration, and detected radiation as well. He believes that his method is an example of cold fission rather Only for specialists in the humanities than cold fusion. It would seem that, while raising the prices for energy Another Russian experimental group has pioneered in sources, the government of Russia has set no price at all for the development of an entirely new cold fusion material, a one of them, and it's the most promising one. The enterpris­ tungsten bronze single crystal. ing Japanese are scooping it up ,from us practically for free. This experiment was reported by Kabir Kaliyev at the What is it? The water of Lake 8aikal, which is rich in deu­ Third International Cold Fusion Conference. A crucial fea­ terium. ture of the material, is that the tungsten bronze lattices have But let us not despair. The ocean is a gigantic, practically channels perpendicular to the crystalsurf ace. By evacuating inexhaustible reservoir of this natural fuel. The deuterium sodium from the original tungsten bronze material, it then component of natural hydrogen is 0.015%. The energy from becomes possible to gas load these channels with deuterium. the merging of deuterium nuclei is ecologically the cleanest Within only ten minutes of loading there is a high neturon source of energy. This is widely known and understood by flux, and the emission of radiation, along with high excess all. Until now we have obtained energy by breaking bonds heat. This experiment, like Kucherov's, is claimed to be established by nature. And when things are broken, burnt, highly repeatable. or split--obviously there remain fragments, soot, and dirt, We are printing a translation of an article in the section some of it radioactive. In the 21st century (which is not so

20 Science & Technology EIR April 30, 1993 far oft) , we will finally stop destroying things in order to get accidental bubbles instead of boiling.) warm. And then, on the one hand, we will solve the problem The lightning of the sensations blazed up and went out. of fuel resources for energy, and, on the other, the problem Several stubborn scientists still made their way along the path of waste. it illuminated. But they had to make their way under a hail All that is required for this is to achieve the necessary of mockery, accusations of ignorance, charlatanry and pseu­ rate for the reaction in which the deuterium nuclei merge. doscience. The traditional path is heating. But up to very high It was most probably with particular joy and deep (re­ temperatures. The kind of temperatures which to obtain member the 1970s) satisfaction that the representatives of one must, for example, explode an atomic bomb. There the so-called "tokomafia" buried the reckless idea. These is another, peaceful path-the gigantic accelerators known workers on hot nuclear fusion, of course, were far from as Tokamaks . According to the most optimistic prognosis, euphoric . In their eyes, at the least admission of the fantastic electric power stations based on this principle will come possibility of cold fusion, their billions of state subsidies on line in the 2050s-2060s and will be so powerful that would startto melt one after another.Of course we are talking they will present us with a new rebus-the problem of only about the situation in the U.S.A. Let the American energy transport. newspapers reporton the "tokomafia" in our country . But after the announcement made in 1989 by Fleisch­ But the alarm of the thermonuclear scientists turned out mann and Pons, about the achievements of cold nuclear to be (or seemed to be?) false. In May 1991, the executive fusion in a very simple experiment involving the electro­ director of the American Physics Society Dr. Robert Park chemical saturation of palladium by deuterium, voices from the pages of the Washington Post sounded the following rang out around the world, excitedly and gladly affirming: impressive retreat: "It exists ! There exists yet another path-unexpected, "The cold fusion story was not so much a story of bad impossibly paradoxical, and, at the same time, the salva­ science, as general human weaknesses like zeal, ambition, tion of mankind !" vanity. . . . Without a doubt, among the cold fusion research­ What does "cold fusion" mean? It means: The fusion of ers there are true believers just as there are sincere scientists deuterium nuclei takes place, when a number of relatively who believe in psychokinesis, flying saucers, the creation of easily reproducible parameters are observed, at room temper­ the world, and so forth. A degree in science is not an inocula­ ature, without any epic-scale fundamental research equip­ tion against stupidity and falseness." ment, right there on the table, one could say. Of course, the honorable executive director was not alone How possible does this look to be? Picture it. Knowing in having such an estimation of the "cold fusioneers," but perfectly well, that water in a tea-kettle, if it is placed on ice, note that, having obeyed the wish to slander them, he himself will not boil, you and I order a tea-kettle made not of normal then carried out a sort of cold fusion, ascribing to the same metal, but, for example, of bronze. We paint the ice green enthusiasm--error, zeal, ambition, sincerity, stupidity and and for good measure we introduce a constant electrical cur­ falsehood all at the same time ! Simply fantastic ! rent from the battery of a pocket flashlight. Having done all Fortunately, such weaknesses (having long since ceased this, we repeat the experiment-and the water boils. Is there being universal, it seems) as work for the soul, above plans something to be surprised about? But if we announce to the and for nothing; theability to pay the machinist out of one's whole world, that this is not a clever trick, but a unique own pocket, for finishingon time a detail, indispensable for scientific experiment, opening up serious prospects for boil­ an experiment; the ability at times to do without complicated ing water at temperatures close to 0° Celsius; then there's equipment in solving difficultproble ms; and other such quali­ also something to be indignant about. ties have not yet disappeared in Russia. Moreover, and espe­ Yet after the sensation Fleischmann and Pons caused, in cially surprising-theyhave not disappeared among the col­ hundreds of laboratories thousands of hotheads began the leagues of the Ural Bureau of the Russian Academy of hunt for cold fusion. And the wider public, thanks to the Sciences! talkative press, experienced a moment of euphoria, which And it has been done! No, we '11 put it without this biblical swiftly turnedinto a disappointed and wry smile. categorical tone: and, it would seem, it has been done. The problem is, that all the experiments, both those The 70-year-old Jean-Pierre Vigier (true, he doesn't look that were conducted in a set-up analogous to the Fleisch­ more than 50, despite his having taken part in the Resistance mann-Pons variant and those done with non-electrochemi­ and in the Vietnam War and on the side of the Vietnamese, cal methods of hydrogenation (dehydrogenation), were at that, against the American aggressors), the famous Jean­ distinguished by the same abominable features: scandalous Pierre Vigier, who worked with Joliot-Curie and Louis de lack of reproducibility and by failure of the effects signifi­ Broglie, heard about the experiments at our Institute of Elec­ cantly to exceed the background or the threshold for a trochemistry, on his stops on his way back home from Do­ measurable result. (In the idiotic example with the tea­ netsk at Yekaterinburg and doesn't regret it. He is present at kettle, the latter case can be represented as a pair of an experiment, one of the last in a series of more than 100,

EIR April 30, 1993 Science & Technology 21 all of which, every single one, had affinnative results. He observes the effect with his own eyes . . . and jumps with delight, like a boy !

Only for natural scientists What What did happen? What, in fact, occurred? are tung$ten Instead of an answer-here are the theses from the report of Academician A.N. Baraboshkin and Doctor of Chemical bronzes? Sciences K.A. Kaliyev, delivered Oct. 5, 1992, at a session The tungsten bronzes are a very interesting, but little ap­ of the Presidium of the Ural Bureau of the Russian Academy preciated, family of materialls. They are not related to of Sciences. But first, one more name must be mentioned­ bronze, an alloy of copper amd tin, except in coloration. that of L.D. Gudrin, chief engineer at an optics factory (in However, the structure of tungsten bronzes are similarto Yekaterinburg), whom Kabir Kaliyev presented to us as his the high-temperature coppell oxide superconductors. In equal colleague, and even, to a significant degree, the initia­ fact, the tungsten bronzes were the first oxide supercon­ tor of the works, which have already today yielded a convinc­ ductors and were the focus (j)fexten sive research 10-15 ing result. years ago. But by the early 1 980s, most of this work had been set aside in favor of other pursuits. In our opinion, it is precisely the utilization of solid The tungsten bronzes are a group of compounds made matter, especially in a monocrystallic state, that makes up of tungsten trioxide, WO�, and an alkali metal, such it possible to create the conditions for cold fu sion to as sodium (Na) , potassium (K), rubidium (Rb) , or cesium occur: (Cs). The general chemical form is MxW03, where • to lower the Coulomb barrier (screening of M=Na, K, Rb , or Cs, and O

22 Science & Technology EIR April 30, 1993 x decreases, and fewer of the cubes are filled, the structure changes. At about x<0.3, or with less than 30% of the cubes full, the structure becomes hexagonal, with atoms arranged in hexagonal plates. The cubic arrangement described above with an atom in the center of a cube is typical for perovskites, a group of ceramic materials with a variety of interesting electrical properties. The high-temperature superconductors are among these. In the cubic phase, tungsten bronzes are metallic and conduct electricity. However, in the hexago­ nal phase, they become superconducting. William Moul­ ton, at Florida State University in Tallahassee, has done a lot of work with potassium, rubidium and cesium tungsten bronze superconductors. Dr. Moulton points out that these compounds have large anisotropy, much like the high­ temperature superconductors; that is, there are differences in properties depending on the direction of measurement in the crystal. The best of these, a rubidium bronze, had a transition temperature, the temperature at which a mate­ rial becomes superconducting, of about 6°K. Iowa State University in Ames was another center for tungsten bronze research. There, Douglas Finnemore one of the reasons why work on tungsten bronze was studied the effects of pressure on the transition tempera­ dropped was because so many saw no future in oxide ture of potassium tungsten bronze. The object was to en­ superconductors. hance the interaction between electrons and the lattice Other work at Iowa State has included using sodium vibrations, or phonons. However, these tungsten bronzes tungsten bronze as a coating for one of the electrodes in a were still superconductive at only 4°K. fuel cell that used hydrogen and oxygen as fuel to produce Howard Shanks, also at Iowa State, was able to pro­ electricity. The test cell that was built ran for about a duce sodium tungsten bronze compounds that were super­ year. Another application that was investigated was using conductors at as high as lOOK. Part of his success was due tungsten compounds for hydrogen storage. It was found to techniques he developed to grow large crystals of this that for HxW03 with x<0.5 hydrogen could move in and material, some as large as 3 inches. Dr. Shanks finds it out of the material with ease. Some of this work was also ironic, in light of today's superconductor research, that done in Germany .-Mark Wilsey

Afterextensive discussion, many questions, doubts, and were no suicides! And consequently, one could proceed wishes, the chairman summed up. Academician G.A. to the congratulations. Mesyats is not among the hotheads drawn into the race for Of course, much remains unclear. First of all, the mecha­ cold fusion. His opinion on this matter, although it was ex­ nism of the process has not been studied, although it was pressed, of course, in more logical formulations, until quite successfully modelled and a result was recorded. Great work recently was practically identical with the opinion of Dr. is before us. The experiment is to be tested in other labora­ Park. But this time, he, too, surrendered, since a fact ob­ tories, and, probably, in many countries. Experts in nuclear tained by experimentation is something that in science­ fusion must give it an appraisal. But without a doubt this is and, probably not also in science-can break any personal a major discovery, and if it is cold fusion, it is the opening opinion, no matter how indisputable it seemed or how many of an era. respected authorities shared it. "Experiment-is the criterion for truth," Kabir Kaliyev Gennadi Andreyevich also was present in the laboratory in a conversation with us aptly cited Francis Bacon. at the moment, when the counter gave the neutron flow "And the means to temper it is a long and expensive and now, at the presidium, he raised serious doubts about practice?" we supplement the well-known formula. whether one of the participants in the experiments had a "No, if we procrastinate, and if, as before , there is no concealed source of hidden neutrons in his pocket. There money, we will simply be outstripped. We will not manage

EIR April 30, 1993 Science & Technology 23 without serious financing. There must be research on the mechanism involving specialists, not those who will work for nothing, but real experts in each field. We need nuclear physicists, both theoreticians, and experimentalists, and electrophysicists. True, this should belong to the whole How 'big sqience' world .. .." "That's how it is," again we allow ourselves a small stiflesdi scbveryI supplemental remark. "But perhaps, this neutron flow will by Giuliano Preparat� awaken the government and the Supreme Soviet which are sleeping and dreaming of the future prosperity of Russia, but i in their waking hours finance the academy's science "ac­ Dr. Preparata is a particle pflysicist. from Italy. Subheads cording to taxes received"? have been added. Today Kabir Kaliyev affirms that he and his colleagues I already are on the verge of solving the problem of controlling On March 10 and 11, two hu�red journalists and scientists an open process. He says that, although no one believes it, attended a meeting sponsored �y the Alessandro Volta Cen­ in two to three years, they will have made a compact reactor. ter, on Communication in Sciqnce. The topics under discus­ And then it will begin .. .. sion were alleged frauds by • number of people, such as David Baltimore, the former president of Rockefeller Uni­ For everyone, including children and youths versity. The greatest fraud o� all, the veritable inquisition And now several words in the spirit of Jules Verne, in against cold fusion scientists, 'fIasnot a subject of discussion the spirit of the boldest, most giddy science fiction being until I brought it up during the !question period. brought to life before our eyes. One of the featured speak�rs at the conference was the We obtain, according to estimates made by engineer L. D. Englishman John Maddox, wbo edits Nature magazine. He Gudrin already in 1989, a surprisingly small 10-kilowatt kept his entire presentation on �he subject of the today-very­ source of energy which runs on a battery, comparable to pock­ much-in-style (who knows for tNhatreason) scientificfrauds, et flashlightbatteries, on 100 ml of heavy water for three years and indicated the ethical-scient;.ficproblems which his maga­ without interruption. Its cost is 270 rubles in 1989 prices. Ev­ zine is called on daily to resol,!e; but during the public ques­ ery consumer of energy, including each of us in our apart­ tion period, John Maddox was ¢onfronted by this writer about ments, acquires total autonomy. Electrical transmission lines an exemplary episode that in�olved the function of one of will be sent off for scrap metal. Electric power stations of today's important scientific ins�itution, namely, Nature mag­ all types will be dismantled. Automobiles will run for years azine. Is not the failure of Nafr-lre magazine to cover any of without exhaust and refuelling. Electric locomotives without the positive evidence relating ito the phenomena known as wires will pull trains. The dreams of D.l. Mendeleyev will cold fusion, a scientific fraud? i come true: We will cease "burningassignats [currency]," i.e., My question was related to!that chapter of contemporary the barbaric burning of oil and gas by which, of course, we research which has been given the name of "cold fusion." will improve the condition of the atmosphere and all the whole The reader will certainly know jabout the hard and hot polem­ environment. Global changes will come to pass in world eco­ ics that have sprung up around this fascinating field of re­ nomics and politics. The so-called developing countries, at search, but perhaps not everyone will know that at the source last, will achieve the level of developed countries. Mankind of the discrediting of cold fusiop, are the unfounded and false will unite on the road of creativity and progress. accusations, which were, in Pattticular, published immediate­ But perhaps it will not be that way. Why not fantasize ly in Nature, which was not 1jhe treatment accorded to the with a negative sign? Will the military yet have their say? discoverers of cold fusion, Fleischmann and Pons. How about neutron guns, absolutely silent and with splendid Nature featured a refutatio� of the experiment by a group sighting qualities-they fire without any recoil? from the prestigious University of California, Caltech, who Kabir Akhtemovich and I are already sorry that we are were and remain extremely negative with respect to the reali­ giving Baikal heavy water to the Japanese for free. What if ty of the phenomena reportedi by the two electro-chemists the 21st century becomes a century of struggle for control from Utah. However, a detail� analysis of the data reported over the reserves of this water on a worldwide scale? in the Caltech article, a year apd a half later, by a group of But, no, this would be too stupid. Is there really not experts, revealed the presencej of grave errors which, were enough for everyone? they to be corrected, might ren

24 Science & Technology EIR April 30, 1993 Calif. , sent a letter (of which I have a copy) to Nature maga­ zine, in which this analysis was reported carefully and objec­ tively. Without valid reasons, Maddox refused to publish Miles's letter. When I confronted him with the bias this evidenced in the editorial policy of his magazine, Maddox claimed in public that he did not remember the details of the incident. No need to underline the extreme gravity of such a fact. The reader of good will has some reflectingto do.

The Aristotelians' weapon For me the present situation in which cold fu sion is blacked out by most of the scientificpr ess, and not discussed at major conferences, is reminiscent of the situation which Galileo faced. Now that the rehabilitation of Galileo by the Roman Church is in progress, this should serve as a lesson to today's Aristotelians, who are trying to repeat the admitted past blunders of the Church, with far less excuse. Today there are no more bonfiresnor excommunications: The global Giuliano Preparala village of science knows only one sanction, silence. Among many aspects of scientific communication that were debated at the Volta Center conference, the one that is Yet there are differences, whicp might very well give us most pertinent to my discourse is communication among some hope: The global village can play nasty tricks upon the scientists. This channel of communication among scientists oligarchs in power, who are often �nduced by vanity to exit whose research effort is based upon quite a singular method from their comfortable rooms wh'ch are well-protected by which mixes meticulous observations, with the presentation push-buttons. It seems to me that that is what happened to of these results in a mathematical form, which demands a the very powerful director of the magazine, Nature, .the En­ debilitating logico-mathematical style of argumentation, is, glishman John Maddox, against whom I intervened at the as is known, directed by the big scientificmaga zines. These conference mentioned above. Nature Science, In a re Giornale include and as well as the more specialized cent article (II , DI ec. 28, 1992), I discuss- journals, such as the Physical Review, the Nuovo Cimento, ed the debate still under way about (jJalileo, and his rehabilita- the Astrophysical Journal, etc. tion by the Roman Church, which as offered me an occasion For a scientist to have access to these magazines is abso­ for comparing the science of that tjime, with that of today. I lutely indispensable to him or her, since-in addition length­ concluded in II Giornale, that witH the rise of the monopoly ening the list of essential publications for his career (chair, of "big science," the thrust of th6 Galilean revolution has financing, recognition, etc. )-an article published in these been in effect exhausted, and tha the monopoly exercised journals inserts him, at least in principle, in the planetary by the scientific oligarchy has gi en us a structure of large circuit of science. It is for this reason that the rejection of an scientificin stitutions similar to those which the vanguard led article on one's own research, or the publication, without a by Galileo was fighting, in a battld which he lost; and which chance for rebuttal, of an article unfavorable to one's own cost Italy, at least for a couple of c�nturies, a loss in its battle work, represents enormous damage, not only to the credibili­ for intellectual freedom. ty of the scientist, but even to the possibility of realizing At that time I was reproved by some friends for not having his capacities for making his talents useful, and in the final explained clearly enough in which way "liberal" science of analysis, to contribute to our collective knowledge. today might, even distantly, be a cousin of the dogmatism of Thus the editorial policies of these magazines (oftencon­ the Counter-Reformation and the tquisition (which brought ducted behind the shield of a group of referees who are com­ Giordano Bruno to the stake, the long imprisonment of Tom­ fortably anonymous and oftenare chosen by capricious crite­ maso Campanella, and the humili�ting retraction of Galileo ria), can have the function of controlling the direction of Galilei). For that reason among otihers, I was happy to have research. Such an ability to select a line of research to be the occasion afforded by the receht round-table meeting on followed in the entire world (which becomes thus the global scientificcomm unication to be mo�e specificabout the recent village of science), affords the oligarchy of science, who situation and my thoughts on how those who control science operate at the vertices of the different institutions, a power today seek to prevent those peop�!e , that is, who in modem of conditioning the progress of scientific thought similar to society have the job of making a?vances in our knowledge that which, at the time of Galileo, controlled the Congrega­ of natural phenomena, from extotting nature's secrets, and, tion of the Index . in the metaphor of Heraclitus, stri ping away her veil.

EIR April 30, 1993 Science & Technology 25 TIillFeature

EnergyBTU tax will plunge Us. into darkness

by Richard Freeman

From chemical production to steelmaking, from aluminum production to oil refin­ ing, from truck and rail traffic to airline travel, the energy BTU tax, announced by President William Clinton on Feb. 17, will cut energy consumption by 1-5%, and production potentially by a corresponding amount. It will slash 350-500,000 jobs from the u. s. economy, almost all of them in the goods-producing sector, while sparing the paper economy. It will cause a "de-energization" of America. The tax will intensify the economic depression in America, caused by cancer­ ous debt and speculative policies that have sucked real wealth out of the economy. For the last 30 years , the economy has been in economic and financial decay, and during the last 20 years , starting with the oil hoax of1973-75, energy growth in the economy has been non-existent. But a hard core of environmentalist fanantics and monetarist looters, centered around the office of Vice President Albert Gore, has set an agenda which led President Clinton to propose the energy BTU tax as one of the key elements shaping the U.S. economy and energy policy over the ,next decade or two, as well as making it the second largest revenue source for the: U.S. government. Outside of the industry associations that will be most directly affected, there has been little opposition to the proposed measure. Unless such opposition soon materializes, the tax, which was adopted preliminarily during the last two weeks of March by both houses of Congress as part of the budget resolution package, will soon be the law of the land. This report will look at the catastrophic effects that will result from the energy BTU tax. It will examine its background, first appearing as a proposed "carbon­ based fuel tax" emerging from the rationale of the "greenhouse effect/global warming" hoax. It will then examine the tax's second-level effects, as it mixes in with the rotted understructure of aU. S. economy that has undergone 25 years of what former Federal Reserve chairman Paul Volcker called "controlled disintegra­ tion." It will show how the BTU tax will produce a non-linear unraveling of the

26 Feature EIR April 30, 1993 Shipping through the Port of Houston. Texas. Barge transport is the cheapest way to carry long-haul bulk goods. but the BTU energy tax will bankrupt many barge operators. industry spokesmen say . economy. It will look at the additional costs the tax will bring ciently, extracting a greater output per industrial operative on top of the nearly $200 billion a year that environmentalist per unit of energy input, while also increasing the total flowof laws and policies already drain from the economy. Finally, energy into the physical economic goods-producing process. it will prove that none of this has to happen; that with a Man's increase of energy correlates with and drives forward rational energy policy, flowingfrom the policy package pro­ the development of civilization and the peopling of the Earth. posed by economist Lyndon LaRouche, America could be Since the end of the Pleistocene Aige 1 million years ago, quadrupling its energy consumption by the year 2030, prepa­ man's increase in per capita kilo�alorie consumption has ratory to and as part of the plan for the colonization of Mars. increased population from a few thousand beings, living in This report will also look at the question of energy, not primitive conditions and foraging f r food , to the 5.4 billion as some random interaction of particles producing friction souls living in the world today. and heat, as understood by Sir Isaac Newton, but as a directed The energy BTU tax is not only the height of irresponsi­ flow, part of an economy moving ever upwards, negentropi­ bility, it represents the height of de peration by the malthu­ cally, toward greater levels of perfection and development, sian enemies of man, typifiedby Britain's Prince Philip and in which man fulfillsthe injunction of the Book of Genesis former World Bank president Robe7 McNamara, to stop that to be fruitful and multiply, to subdue nature and extend man's upward thrust of civilization. Instead, they would institute a dominion over it. civilization that rejects the Judeo-Christian concept of God, The selection of energy as a vulnerable point of attack is and replace it with a satanic wors�ip of the earth-goddess, extremely important. Today, each American consumes Gaia. They would replace modem technology, such as nucle­ 320.9 million BTUs of energy in a year. This is the energy ar fission and the promise of fusio?, with costly, ugly, and equivalent of the combustion-processing of 2,324 barrels of inefficientsola r panels and tinker-toy windmill farms that not oil, or 29,603 pounds of coal annually. Since the year 1800, only kill unsuspecting birds, but represent a step backward of energy consumption per American has tripled, and when the from 500 to 3,000 years in man's development, by resorting fuels that heat the home are omitted, energy consumption per to energy forms of such primitive ehergy flux-density . citizen has increased 500 times. This energy per capita has nonetheless fallen during the last 20 years. Through the de­ The mechanism of the enerJy BTU tax velopment of the heat-powered machine, over the last 200 The BTU tax will tax the Britis� Thermal Unit heat con­ years, man has revolutionized his existence. He has orga­ tent of energy. A British Therm� Unit is the amount of nized the raw throughput of energy to do work more effi- energy that is required to raise the te( mperature of one pound

EIR April 30, 1993 Feature 27 Vice President Albert Gore is at the core of the "green" grouping in the administration. which led Clinton I propose the disastrous BTU tax as one of the key elements shaping U.S. energy policy . Gore is shown here on Capitol Hill in 1991 . Greeting him is Norman Augustine. a representative of the aerospace industry-one of the sectors which will be devastated by the new tax. of water by one degree Fahrenheit. The tax starts as a 25. 7¢ circles, is predicting that the p�ice increase of basic fossil tax per I million BTUs contained within coal, oil, gas, nucle- fuels by the year 1997 is the following: oil, 41 %; coal, 8%; ar, and hydroelectric power. In addition, under the proposal, and natural gas, 14%. Combine hat with the increase gener- oil is assessed a second supplemental tax of 34.2¢, bringing ated by the energy BTU tax its If, and one has 62%, 34%, the total tax on oil to 59.9¢ per million BTUs. and 26% increases for oil, coal, ahd natural gas, respectively. The tax translates into a $5.57 price increase per ton of Second, the moment that Americans succumb to the ener- coal, which now costs $2 l .46 per short ton. Likewise, it gy BTU tax, the proponents 0 the tax will start devising translates into a $3.47 price increase per barrel of crude oil, ways to institute the much har her carbon-based fuel tax. which now costs $16.50 per barrel, and a $0.26 price increase That tax would place a tax on coal of $55-500 per metric ton, per 1,000 cubic feet of natural gas, which now costs $2. 11 which is just slightly less for thb smaller short ton of coal. per 1 ,000 cubic feet . The prices quoted are all the raw , unpro- Such a price increase of 200-2,000%, with comparable, cessed cost of the fo ssil fuel energy source. The price increase though smaller increases in oil and natural gas, are what on nuclear works on a formula that taxes nuclear essentially America is looking at, if it knucklesI under to the energy BTU on the amount of heat output nuclear generates, calculated tax . The consequences will be Ibeyond belief. An August on the standard thermal efficiency-conversion ratios of power 1992 study by the Brookings Institution of Washington, D.C. plants. The tax comes out to a 26% increase in the price of entitled "The Global Costs of PoliCies to Reduce Greenhouse coal , 21 % for oil, and 12% for natural gas. Thus, it is an Gas Emissions," ran a Simulated economic model scenario, energy sales tax, applied on the production use side, of 12- using a "moderate" carbon-based fuel tax, which predicted 26%. that by the year 20 II, American coal production would plum- However, the reader is warned: This is the bare minimum met by 50%, and the production lof oil and gas by 10%. The price increase that will occur, for two reasons. First, the proponents of this tax may wait a few years before pushing economic consulting firmthat helped the Clinton administra- it, it is so extreme. tion design and conduct economic model test-runs for the Not that the energy BTU tax will do that much less dam- energy BTU tax, the Cambridge, Massachusetts-based Data ' age. The energy BTU tax will beI phased in over three years, Resources, Inc., is predicting substantial inflation-adj usted in one-third increments starting /uly 1, 1994, and be fully price increases for fossil fuels. These are separate from the applied by the third year. The fully implemented tax revenue price increase effect of the energy BTU tax . The DRI con- take will be $33 billion annuall ' It will potentially drain a suiting service, which is closely tied to British geopolitical stunning $297 billion from the)ll economy over the first 10

28 Feature EIR April 30, 1993 years . According to its authors , because it is a punitive tax and will reduce energy consumption, there will be less to FIGURE 1 tax , and revenues may fall some. Estimated energy expenditures Furthermore, the handling of the pivotal question of nu­ (percent of personal income) clear power not only exposes the tax proponents' fe igned concern about the environment, but is a devastating critique Less than 15% of the entire energy BTU tax. The tax is supposed to be $10,000 applied to reduce CO2 emissions. But who in his right mind $10,000- would put a tax on nuclear energy, which produces no car" $14,999 bon, ifhe wanted to increase the number and output of energy sources that do not emit carbon? The environmentalists claim $15,000- that nuclear power plants are unsafe. But in one week, more $19,999 people die in the "environmentalist" hangouts in Hollywood from drug overdoses, than have died from the effects of $20,000- 24,g99 ,' nuclearpower in all of American history . ' $

$25,000- First-level effects ,$34;g99 The panorama of the first-level destruction that theen�rgy BTU tax will bring extends into every part of the real,econo­ '$35,000- my. Financial services, real estate, insurance, and the specu­ $49,999 lative side of the economy will be virtually untouched, while . $50;OOO� 350-500,000 jobs, mostly in goods-production, will be axed, $100,000 turning America deeper into a post-industrial society. Manu­ facturing production, in some sectors, will fall 1-5% initially over three to fiveyears . Keep in mind, that with the continuation of the Federal Source: Energy Information Administration, Studies of Energy Ta xes, U.S. Departmentof Energy, Washington, D.C. (April 1991 ). Reserve dictatorship over the U. S. economy, and the deregu­ lated state of the monetary markets , the tax will mix with other deadly policies, intensifying the combined, cumulative To the extent that the tax is passedthrough fromindustry destructive effect of all such policies. By itself, the tax will to households, or is part of the residential energy bill, it hits smash almost any growth plan or vision that President Bill working and lower-income families five times harder than Clinton may otherwise have for the economy. upper-income families. Lower-income families will now be At a Feb. 24 hearing of the Senate Energy and Natural pushed to the wall. Figure 1 shows "Estimated Energy Ex­ Resources Committee, Sen. Mark Hatfield (R-Ore.) reported penditure as a Percentage of Income." It was released in that the Pacific Northwest has for the last seven years, along April ,1991 by the Energy Information Administration of the with California, experienced a drought. Since the Pacific Departmentof Energy. A family that earns less than $10,000 Northwest depends heavily on hydropower, energy prices per year spends 15% of its income on energy. The costs are have been pushed up. "So [what] we're talking about right non-deferrable, i.e., the family must pay the fuel bill, or buy now," Hatfield said, "is up to a 15% increase in energy rates gasoline for the car, if it is necessary to drive to work. Such this year before the energy tax. You already have a layoffof a family already pays nearly half of its income for food and 28,000 from Boeing. You have an aluminum industry [lay­ shelter; now its energy bill will go up. To counter this, the

off] of 10,500 .... The economy of the Northwest would whiz kids at the newly created National Economic Council collapse. . . . We would be devastated. " of the White House have stated that the President is pumping At the same hearing, Sen. Richard Shelby (D-Ala.) stat­ some credits into the economy for the poor which will offset ed, "A study done by Data Resources asserted that a BTU the income-depressing features of the energy BTU tax. Yet, tax that would raise $10billion annually would cost the Unit­ some of these credits are for programs such as food stamps, ed States 300,000 jobs. President Clinton's proposal will which are really to blunt the impact of the depression in raise revenues at possibly three times that annual rate-so general,.not to stop the effects of the BTU tax. all you have to do is multiply" to calculate the number of jobs lost. Shelby stated, "There can be no doubt that this tax Agriculture and industry hit hard will affect the price of manufactured goods through increased Let us look at the effect of the energy BTU tax on some electrical and transportation costs all over America." As for of the major economic sectors, from agriculture, to heavy Alabama, Shelby said, "68% of the entire state's electricity manufacturing, to transport infrastructure. generation is from coal." • Agriculture. According to a secret working paper in

EIR April 30, 1993 Feature 29 circulation at a branch of the U.S. government, 7% of the sector, larger than agriculture.III 1992, it produced a trade costs of agriculture go for energy. Agriculture will be pum­ surplus of $16.2 billion.Its exported productswill be taxed in meled at every end, from the cost of electricity; to fuel for the United States, competing at a �isadvantage with chemical the tractor; to the cost of water , which requires pumping; to products of other countries, whose host country will not tax the cost of energy-intense fertilizer, which is not supposed them.The states in which the chemical industryis concentrat­ to be taxed by the energy BTU tax, but some of whose inputs ed that will be hit hardest are California, Illinois, Michigan, are taxed at an earlier stage of production. Louisiana, New Jersey, Texas, NorthCarolina, and Ohio. In the April issue of the Farm Bureau News in Virginia, • Aluminum industry. The energy BTU tax will pile state Farm Bureau Vice President C. Wayne Ashworth re­ on a huge 5- 10% increase to the aluminum industry's cost ported that, nationally, farmers stand to lose $1 billion.The of doing business. Aluminum iS la vital, lightweight metal, American Farm Bureau has estimated that the increased costs extracted from bauxite ore, used in everything from the skin of imposed on a farm of 430 acres of com are "more than airplanes to food and beverage c$ls. A Prudential Securities the average Virginia farmer can afford to stay in business." analyst put energy use at 28% of tjheaverage U.S.aluminum Farmers are already baUling the banks and the environmen­ production cost.The aluminum industry is the nation's-largest talists who are attempting to forcibly convert millions of industrial user of electricity per tqn of output.The aluminum acres of farmland to wetlands, i.e., wastelands. As well, industry in the PacificNorthwest �onsumes huge amounts of environmentalists in Californiaare withdrawing 8 billion gal­ hydropower, but in other parts o� the nation it relies heavily lons of water yearly from farm use in order to "preserve" upon coal.In the Pacific Northwt;st, the industry has already endangered species, and across the country are attempting to sufferedplant closings and IO,OOQ layoffs. At the Intalco Alu­ ban vital pesticides and fumigants, escalating the costs of minum plant in Ferndale, Washin�ton, plant officialsestimate farming onto which the energy tax is now added. that the BTU tax would increase electricity costs by $lO mil­ • Manufacturing. The cost of energy (purchased fuel lion, adding II% to the cost of p�oduction. and electricity) as a percentage of all manufacturing costs • Oil refining. Forty perc4nt of all . energy used 'in (labor and materials), on average, can be anywhere from America is from petroleum; most1of it has to be refinedto be 2.5-6%, depending on who is making the estimate.Energy utilizable, and the tax could ban1rrupt this critical industry. is less than 1 % of the cost of operations for some On every barrel of oil they refine� oil refiners make about $1 manufacturing sectors, while for others it is a staggering in profit.The energy BTU tax will add $3.47 to the cost of a 10-20% of costs. barrel of oil.This would wipe ou� the oil refiner'sprofit, and • Chemical industry. The energy BTU tax will take plunge the company into loss, unless the cost is passed on. $1.2 billion per year from the chemical industry. An econo­ In many parts of the country, it Will be nearly impossible to my cannnot exist without chemicals; from industrial chemi­ pass the full tax on, because, as John Hall, the chairman of cals, to fertilizer for agriculture, to medicine.The chemical Ashland Oil Co., the nation's lar$est independent oil refiner industry is very energy-intensive: Energy costs are equal to based in Ashland, Kentucky, s$tes, "The markets aren't 10% of the chemical industry's output. In 1992, chemical any good right now." The industry may go through another manufacturers consumed an amazing 5.69 quadrillion BTUs ratchet of plant closings, particul�ly of independents in the (a quadrillion equals a million million), which is 7% of all oil patch of Louisiana, Oklahom�, and Texas. energy consumed by the United States.The chemical indus­ • Primary metals. This in�stry includes the produc­ try consumed 1.93 trillion cubic feet of natural gas, or 34% tion of copper, nickel, lead, but above all, iron and steelmak­ of all natural gas consumed by manufacturing.It consumed ing.From ancient times, when iton was produced in caves 119 billion kilowatt-hours (kwh) of electricity, or 17% of all in the sides of mountains, with tnanually operated billows electricity consumed by manufacturing. built into the side of the mountainiaiding the natural drafts of Half of the chemical industry's energy use will not be air passing through the caves and thus increasing the heat­ taxed: that portion that goes into feedstocks, mainly crude intensity of the fires, to the Bessemer steel process, to the oil and natural gas products.But the other half will be taxed: basic oxygen process, iron and steelmaking has advanced as the power and electricity consumed in the course of produc­ a result of the increase of the h�at-intensity that could be tion.The chemical industry's 1992 energy bill totaled $22.6 concentrated inside the furnace itself.It is the immense in­ billion.The energy BTU tax will add a whopping $1.2 billion crease of the energy concentrated per cross-sectional volume per year to those costs. of furnacewhere heat is being applied, per unit of time, which Moreover, 10,000 chemical industry jobs will be slashed, represents the concept of energ}}.flux density. The process according to predictions of the Chemical Manufacturers As­ of increase of energy-flux density in this and other forms sociation.The actual number could go much higher.Chemi­ represents the history of breakthroughs in heat-powered ma­ cal workers eam $623 per week, or 33% more than the aver­ chines. Lower that machine below a certainenergy-flux den­ age manufacturing employee, and thus contribute more in sity, and it does not function in a imodern and efficient way. taxes.The chemical industry is the nation's biggest export Today, production has regressed.

30 Feature EIR April 30, 1993 The primary metals industry consumed 39 million tons of coal in 1988, primarily for use in the coking process, where carbon is reinvigorated back into iron, which is indis­ pensable in the ironand steelmaking process. The steelindus­ try also consumes 21 % of all the electricity used in the manu­ facturing sector, making it the biggest absolute manufacturing consumer of electricity (150 billion kwh). The energy BTU tax will add $5.57 to the price of a short ton of coal. This will add an annual $2 17 million to the bill of primary metals-making, principally steel. Can the steel industry handle it? Such a tax is a bad joke. Laden with the huge costs of smokestack scrubbers to remove sulfur pollutants, and heavily indebted otherwise, much of the steel industry has been hemorrhaging red ink on its balance sheet. Consider the effect of insane policies toward the steel industry already . Annual production of raw steel has plum­ meted from a high of 160 million tons in the mid- 1970s to 95 million tons last year, a loss to the nation of 41 %. The energy BTU tax will wreck the internal functioning of the industry , razing to the ground even more vital capacity. The areas that will be hurt are Californiaand the steel belt of the Midwest, encompassing the states of Pennsylvania, Ohio, Oil rigs on the Texas-Louisiana coast. energy BTU tax will Illinois, Michigan, and Indiana. . add $3 .47 to the cost of a barrel of oil, out the oil refiner's profits, or passing the increase along the consumer. Transportation infrastructure The Clinton administration's vision of expanded trans­ portation infrastructure will be smashed. carried 454.6 million passengers; in 1992, it carried 459 • Airlines. The airline industry accounts for 72% of all million passengers. That is, no growth in four years. Higher non-auto commercial passenger travel in America. Under the costs will further discourage airline travel. "If the economy energy BTU tax proposal, the average price of jet fuel and doesn't grow, and we cannot pass the cost on to customers, I gasoline will rise by approximately 8¢ per gallon. In 1992, we're going to have to eat the cost urselves," said the indus­ the airline industry consumed 15 billion gallons of jetfu el. try spokesman. In the last three �ears, the airline industry The tax will represent, at minimum, an increased expenditure lost $6 billion. Three major airlines have been liquidated in of $1.2 billion. However, on March 30, an Air Transport the last three years: Eastern, Pan AmeriCan, and Midway; Association spokesman pointed out two developments. First, others are in bankruptcy. j in 1990, the Congress increased the excise tax on airline • Personal automobile trav . Individual automobiles tickets from 8¢ to 10¢ paid on the value of the ticket, as a tax consume approximately 45 billio� gallons of fuel per year, on the industry specificallygeared to reduce consumption of mostly gasoline. The energy BT tax of 8¢ per gallon will jet fuel. That .tax cost the airline industry $1 billion . The add an extra $3.6 billion to that co t. industry now expects Congress to rescind that earlier 1990 • Trucking, barge traffic,and railroads. This hits the tax. On the other hand, the industry expects that oil refiners heart of American transport infrastructure. Trucking, barge, will pass on the energy tax more lightly to industries that can and rail account for 78% of the domestic intercity ton-miles switch from oil to other fuels, but more heavily to industries, hauled in the United States: rail, 37% ; trucking, 25%; and such as airlines, that can only use oil-based fuels. The airline barge traffic, 16%. I industry thus expects to pay closer to $1.4-2. 1 billion for the Fuel is approximately 16% of the operati ng cost of the energy BTU tax. While the airline industry will be relieved nation's trucking companies. According to a spokesman for of the previous 1990 increase in its excise tax, the BTU tax the American Trucking AssociatibnI , the tr ucking industry must still be paid out of operating revenues. bought 36 billion gallons of gasolide and diesel fuel last year. The industry will attempt to pass the cost on to the con­ The energy BTU tax is an approximately 8¢ increase for the I sumer, which the administration has stated it wants the indus­ price of gasoline and diesel fuel. 1hat will cost the trucking try to do , but it may not be able to do so. A spokesman for industry a staggering $2.88 billiod, or perhaps slightly less. the industry said that since 1988 there has been a "saucer­ To put that into perspective, in 199 t , the latest year for which shaped recovery," a euphemistic way of saying that the coun­ figures are available, the truckin industry registered $283 try has not come out of the depression. In 1988, the industry billion in revenues. Some 97. 14% of those revenues went to

EIR April 30, 1993 Feature 31 cover operating costs, and 2.86% of those revenues repre­ to the cost of purchased capital goods, which embody energy, sented pre-tax profits. After-tax profitsrepresented 1.18% of and so forth. The price increases are passed up and down the all revenues, or $3.34 billion. The energy BTU tax will eat production chain. As a percen�ge, the price increase of the up 86% of the industry's profits. Some of the costs will be energy portion of a company's bills will be larger than the passed on but, according to a trucking industry spokesman, increase associated with these �condary items. many companies, especially those that are not capitalized Second, in a depression, cO$ts cannot be passed on. This enough to absorb the large initial cost increases, "will not shows up even in the demand-siktemodel that the proponents make it." of the tax employ (which model is inherently flawed). What "It's a buyer's market, so we won't be able to pass on if the final end-user, the consumer, cannot afford to make those costs to our customers," stated William Clifford, presi­ purchases, whose prices have been raised by the energy BTU dent of the St. Johnsbury Trucking Co. of Holliston, Massa­ tax, because wages have fallen relative to inflation and be­ chusetts, which is the tenth largest in the country with annual cause of widespread wage-slashing in industry? The maker of revenues of $300 million. Clifford estimates that the energy final end-products tells the maker of intermediate or primary BTU tax would add $90,000 per month to his company's products that it cannot afford tite higher cost of their goods. fuel costs. Hundreds of trucking firms have folded in the last It cuts back its orders, causing a!cutback in orders and layoffs decade. all along the production chain. lWorse, although the Keyne­ Barge transport represents the cbeapest method to carry sians can't conceptualize this, ptice increases in primary cap­ long-haul bulk traffic.Barges haul 16% of the nation's freight ital goods products' costs fundamentally distort those indus­ ton-miles. They are especially efficient along the enormous tries, even before one reaches the finalstage of the consumer. Mississippi River system, which extends from the Gulf of I Mexico to the Great Lakes, linking many industrial arteries Program for genocide I in the U.S. industrial heartland. The barge industry has been Aside from the revenues in�olved, the environmentalists targeted not only with the energy BTU tax, but a users fee, justify the energy BTU tax as Qeeded to stop "global warm­ which combined would be larger than the industry's annual ing," allegedly caused by the pollution of fossil-based fuels. $200 million profit (see EIR , April 9, p. 23). It appears that But their real goal is populatiot reduction on a scale which the Congress will knock back some of the "free enterprise" would exceed the genocide of Adolf Hitler. user fee monstrosity. But energy is 45% of the barge indus­ Publicly, the environmenta�ists are screeching about the try's operating costs, and the BTU tax will bankrupt many "greenhouse effect," but they d�n't know what they are talk­ barge operators, according to an industry spokesman. ing about. The greenhouse effbct refers to the capacity of Some 6% of the costs of the railroads are for energy. certain "greenhouse trace gasesi and water droplets, concen­ When fully implemented, the energy BTU tax will annually trated in the troposphere (the volume of the atmosphere up add $44 million to the costs of the Burlington Northern Rail­ to 8-9 miles above the Earth), to let in some of the heat/energy road, $45 million to the costs of the Union Pacific, and $24 directed from the Sun to the Earth's proximate surface, while million to the costs of the Norfolk Southern. opaquely blocking other parts �f that energy from reaching the Earth's surface. These greenhouse gases also trap and re­ Environmentalist excuses radiate downward radiant ener� generated upward from the The environmentalists are caught in their own lie. They Earth, including by man's acti�ities. This greenhouse effe ct cannot deny that the energy BTU tax will do damage, nor is one of the pre-conditions for 'flil life on our planet. More­ that the tax will reduce energy consumption. But they cannot over, one of the greenhouse g�ses most singled out by the tell that to the public; they say that the damage will be "mod­ environmentalists, carbon dio�ide (C02), is indispensable erate," and give two excuses. Unfortunately, many in the for photosynthesis of plants, which leads to the greening of Clinton administration believe them. First, the environmen­ the Earth and the production of C()xygen, which sustains man. talists say that if 10% of an industry's costs are energy, then The environmentalists dishclmestly argue that man's use only that portion of its costs is affected. A 30% price increase of energy, his burning of fossil+fuels which contain carbon, in energy that constitutes only 10% of an industry'S overall has produced such an overabundance of CO2 and other green­ costs represents only a 3% overall final product price in­ house gases associated with m*"'s industrial activity, such crease. Second, they say, the price increases will be passed as methane (NH4) and nitrous o)(ide, cause too much heat to on by industry to the finalend-user, the consumer. The magi­ be trapped in the troposphere lind radiated back to Earth. cal concept of "price elasticity" is invoked. They shout that the earth will die a heat death, the polar ice Both excuses miss the mark. First, the energy BTU tax caps will melt, and a searing heat will scorch man's crops, will not only directly raise the energy bill for a company, but his cities, and all life. Indeed, were that scenario true, then it will increase every other cost as well, from the cost of trans­ during the last 100 years of industrialization, the temperature porting the goods to and from the factory, to the price of non­ of the Earth's proximate surfaee would have had, by the energy raw materials which have been processed by energy, theory's premises, to rise by 2_40 C (3.6-7.20 F) , with most

32 Feature EIR April 30, 1993 of that temperature increase occurring since World War II. cal: 200-2,000% above the current priceof coal. As reported But it has increased a net 0.50 C (about 10 F), with most of earlier, a Brookings Institution study of the effectsof moder­ that net increase accomplished before World War II . The ate levels of carbon-fuel taxes predicted a meltdown of the scenario is a deliberate lie. economy. By the year 201 1, the level of coal production in The hard-core environmentalists do not believe the global America would plunge by 50%, and oil and natural gas output warming hoax themselves. In the 1970s, when the Earth's would decline by 10% each. The energy-starved economy temperature appeared to have been cooling for the preceding would disintegrate. 15 years , the environmentalists warnedthat man's industrial­ All the major environmentalist groups are signed onto ization and "pollution" were causing the Earth to freeze, this carbon-based tax. The World Wide Fund for Nature of which they called "global cooling." In 1971, a book was Britain's Prince Philip attempted to coordinate a stampede published, Global Ecology: Readings Toward a Rational behind the tax with the 1990 publication of its book Carbon Strategy, which featured the following bold assertion: "The Emission Control Strategies. In 1991, the Department of continued rapid cooling of the Earth since World War II is Energy published a 6OO-page, two-volume work called Lim­ also in accord with the global air pollution associated with iting Net Greenhouse Gas Emissions, which promotes the industrialization, mechanization, urbanization , and an ex­ tax. The World Resources Institute (WRI) produced an Au­ ploding population" (emphasis added). gust 1992 report on "The Right Climate for Carbon Taxes: The co-editor of the volume was Paul Ehrlich, a biologist Creating Economic Incentives to Protect the Atmosphere." from Stanford University, who today rails about global The genocidalist RobertMcNamara , who as president ofthe warming. The conception underlying such global cooling/ World Bank in the 1970s said that the major threat to the warming scenarios is genocide. Ehrlich coolly and methodi­ world was population growth, is on the WRI board. cally states in his most notorious book, The Population Bomb, the grisly thesis that drives forward every environ­ Setting tax policy mentalist theorem, including the energy tax: "A cancer is an Shortly after President Clinton announced the energy uncontrolled multiplication of cells; the population explosion BTU tax, Roger Dower, one of the co-authors of the WRI is an uncontrolled multiplication of people ....We must report, gleefuly confided, "The energy BTU tax is not the shift our efforts from the treatment of the symptoms to the carbon fuel tax. Nonetheless, this starts restructuring [of the cutting out of the cancer. The operation will demand many economy] . This is the first time in American history that brutal and heartless decisions" (emphasis added) . environmentalist concerns have been used to set tax policy." Ehrlich has demanded that the population of the globe be Two weeks before the energy BTU tax was announced reduced by several billion, and that the population of the on Feb. 17, eleven environmentalist groups held a private United States be reduced to 135 million people. Currently, meeting with President Clinton and his staff. The environ­ the population ofthe United States is 256 million. This is the mentalists are working through a strong faction of green­ explicit genocidal rationale behind the energy BTU tax. thinkers whom the financial interests who control the Demo­ cratic Party placed into the Clinton administration. They are A second or third price shock led by Vice President Gore, whose best-selling book Earth The disastrous effects described above are based on price in the Balance: Ecology and the Human Sp irit champions. increases, triggered by the energy BTU tax, of 26% for coal, every environmentalist scheme which will lead to deindustri­ 21 % for oil, and 12% for natural gas. But that will be only alization. Gore's former top assistant when he was senator, the firstround of energy price increases. The price of energy Kathleen McGinty, now heads the White House Office on is scheduled to skyrocket much higher. Environmental Policy, which is the old Council on Environ­ As reported above, Data Resources, Inc. is predicting mental Quality. But the new officehas been given broad new real price increases above the rate of inflationand quite apart powers: McGinty sits on the National Security Council as from the effect of the energy BTU tax. DRI is predicting that well as the newly created National Economic Council. Other by 1997, real oil prices will rise by 41 %, coal prices by 8%, top greens include InteriorSecretary Bruce Babbitt; Thomas and natural gas prices by 14%. If those projections come to Lovejoy, the chief science adviser tothe Interior Department; pass, then, combined with the quantifiable effects of the Environmental Protection Agency head Carol Browner; En­ energy BTU tax, the price of oil, coal, and natural gas will ergy Secretary Hazel O'Leary; and White House Science rise by a staggering 62%, 34%, and 26%, respectively, inten­ Adviser John Gibbons, a former energy conservation director sifying the destruction of the economy. for the Carter administration. Both Robert Rubin, the head Second, the environmentalists' real preference is for a of the National Economic Council, and Roger Altman, the carbon-fuel tax, for which the energy BTU tax is just a foot number-two man at the Treasury Department, helped shape in the door. Instead of taxing the energy BTU content, the the energy BTU tax. carbon-based fuel tax would tax the carbon weight of the The enviro-fascist advocates of the energy BTU tax state various fo ssil fuels. The price increase would be astronomi- that the price of energy must become exorbitant, in order for

EIR April 30, 1993 Feature 33 another of their pet schemes to work-shifting the economy man to do work. It is a transformation and upshifting of to "environmentally sound, non-polluting" energy sources, nature, especially associated With the tuning of the electro­ such as biomass, solar reflectors, and windmills. Now, these magnetic spectrum. As man advances his economy, he orga­ energy sources are not "price competitive" with conventional nizes a greater throughput of ep.ergy flows. But past a certain fo ssil fuels. A 1993 study by the Electric Power Research point, great gobs of energy th�t are not highly organized are Institute of Palo Alto, California reported that the price of simply wasteful . Man organi�es energy negentropically to fuel in the future , expressed in a price per barrel of petroleum achieve greater energy efficielllcy-a machine, for the same equivalent, would have to reach at minimum $79 and up to energy input, yields a greater !product output, per industrial $140 per barrel, for the crackpot alternative energy sources operative. to become "price competitive." This price is an astounding This principle is exemplifi�din the evolution of the steam 4.5-8.5 times greater than the current price of a barrel of turbine at the central station power plant, the major source crude petroleum, which is $16.50.This indicates the strato­ for electricity generation. The'first central station to provide spheric level that prices will be pushed to . In the meantime, electric lighting service was Thomas Edison's Pearl Street conventional energy sources will be shut down, with nothing Station in New York City in i 1882. It provided power for on the horizon to replace them. This is a deliberate policy of 1,284 direct current lamps of 61 candle-power, approximat­ energy starvation and wrecking of the economy . ing a 72 kilowatt total load. Silmilar plants followed in other However, the prospect gets even worse, and brings us to cities, but the thermal efficiency of the initial power plants the second level of destruction of the energy BTU tax . The was in the range of 1 %. That means that for one unit of energy BTU tax will be folded in upon 30 years of depression energy output, in the highly concentrated formof electricity, in the real physical economy and on top of a burgeoning 100 units of energy input were needed. Turbine design im­ financial crisis which has slashed cash reserves for many proved. Higher temperature and higher pressure were built companies to zero . It will produce a non-linear collapse of into the turbine. By 1915, the thermal efficiency rose to 10%. the sort which no one in or out of the Clinton administration Further improvements in turbine design, including reheat or the Congress has even a glimmer of. cycles and so forth , increased the thermal efficiency. Today, it is 32-34% for most turbines.1 Were magnetohydrodynamic What is energy? (MHD) plasma technology adopted, things would improve Once an economy is plunged below a critical threshold­ again. In an MHD converter design that can be applied to through a permanent lowering of the ratio of energy input today's coal-fired plants, the I process produces an ionized into the physical economy, as well as a downward ratchet in gas, which when passed throqgh a magnetic field generates the energy-flux density in the internal ordering of ma­ electricity. It produces almost no pollution. It operates at a chines-it passes a point of no return. 60% thermal efficiency. The environmentalists, while talking about energy, na­ Such increases in energy-ibtensity and energy-efficiency ture , and the economy, have no understanding of any of of the economy correlate with I and lead to an increase in the them. The environmentalist notion of energy is the flawed relative potential population density. This is the capacity for notion of Sir Isaac Newton and James Clerk Maxwell: entro­ man to support per square kilometer, through man-altered py, an increased statistical random motion of particles, pro­ increased fecundity of the soil and improved technology of ducing interactive friction and heat. Such an entropicconcep­ the manufacturing process, an increased density of popula­ tion assumes that the universe is winding down, heading tion, in which each person iSI of an improved quality over toward greater and greater disorder. This is the conception preceding generations. LaRoUche's concept of relative po­ of energy taught on college campuses today. tential population density is the fundamental metrk: by which But economist Lyndon LaRouche has successfully dem­ the health of an economy is measured. Man's ability to realize onstrated that the universe is not winding down at all. Indeed, this potential sets man over and above the beasts. the Creator is organizing the universe negentropically, that The development of the U JS. economy reflects this prin­ is, it proceeds transfinitely, toward greater self-organization, ciple of energy. During its upward sweep when it developed, greater order, and toward higher and higher levels of growth the economy abided by the Crentor's principle of energy. But and development. This growth is consistent with the geomet­ especially since 1973, when tht economy plunged, it violated rical ordering of the Golden Section. On Earth , God's highest this principle. creature, man, is the instrument for the further negentropic Table 1 shows the level c!>f energy throughput and the self-development of the universe. In this view, energy is not size of the population in America starting in the year 1800. an increase in randomness, nor is it a fixed substance as such. The energy level is expressediin two parts, fuel wood con­ The same lump of coal will yield different levels of energy, sumed, which played a very big part and was the dominant depending on how the economy has been organized through form of energy consumed in �e economy during its early science to utilize that coal. formation, and all other energy. Energy's principal use is that it sustains life and allows Notice two developments i from Table 1. First, the in-

34 Feature EIR April 30, 1993 TABLE 1 Leap in energy consumption as U.S. economy grew

Total energy Energy Fuel wood Other energy consumed Population per capita consumed consumed Year (trillion BTUs) (millions) (million BTUs) (trillion BTUs) (trillion BTUs)

1800 N.A. 5.297 N.A. N.A. 3 1850 2,359 23.261 101.4 2,138 219 1880 5,001 50.262 99.5 2,851 2,150 1900 9,347 76.094 122.8 2,015 7,332 1910 16,026 92.407 173.4 1,765 14,261 1920 20,617 106.461 193.7 1,610 19,007 1930 22,958 123.188 183.4 1,455 21 ,503 1940 24,349 132.122 184.3 1,358 22,991 1945 31 ,316 139.928 224.9 1,261 30,055

Source: u.S. Department of Commerce, Historical Statistics of the United States, Colonial Tim es to 1970

crease in energy per capita, from the level of 101 .4 million

BTUs per person in 1850 to 224.9 million BTUs per person TABLE 2 95 years later in 1945 . This doubling reflects the growth in The growth of energy consumption, 1949-73 tnan's mastery over nature. Second, the growth of the energy that is not fuel wood. In man's earliest period, man consumed 1949 1973 Compounded a tremendous amount of wood; as the economy industrial­ (quads (quads 1949-73 annual of of increase increase ized, that fuel wood figured less prominently. By 1880, the Sector BTUs) BTUs) (%) (%) amount of fuel wood consumed still exceeded the energy 30.46 74.28 144% 3.78% from all other sources, which at that time was principally Entire economy bituminous coal and Pennsylvania anthracite coal, with a Residential and commercial 8.21 24.14 194 4.59 smattering of petroleum. But as the gigantic industrialization Industrial 14.26 31 .53 142 3.75 of the United States begun by the Lincoln economic reforms Transportation 7.99 18.60 133 3.58 of 1861-65 took over, by 1900, non-fuel wood sources of Electric utilites 4.36 19.85 355 6.51 energy were 3.5 times the level of fuel wood consumed. The

industrial character of the American economy was firmly Source: Departmentof Energy, Annual Energy Review, 1988. shaped. In the 45-year period between 1900 and 1945 , the non-fuel wood portion of America's energy supply, repre­ senting coal, oil, natural gas, and hydropower, increased amount of energy consumed by the whole economy rose fourfold. Another way of stating this, is that comparing the dramatically, from 30.46 quadrillion BTUs in 1949 to 74.28 non-fuel wood BTU level of the economy in 1800 and 1945 , quadrillion BTUs in 1973, an increase of 2.44 times or a the 1945 level is greater by four orders of magnitude, 30. 1 healthy 3.78% per year rate of increase on a compounded quadrillion BTUs consumed in 1945 , versus just 3 trillion annualized basis. The performance of all the sectors of the BTUs consumed in 1800. Further comparing the non-fuel economy-industrial, transport, etc.-are shown. During wood BTU level of the economy, between 1800 and the this period, despite several real problems, the economy, led present, energy consumption per citizen has increased 500 by higher levels of energy growth, especially the marvelously times .. concentrated form of electricity, registered real physical In a subsequent study to appear in EIR , Christopher growth. Nuclear power entered the scene, lowering the cost White will present a detailed analysis of this process, as part of electricity throughout the 1950s and 1960s. The electrifi­ of a larger study of the transformation of the entire American cation of farms and rural areas was completed, and significant economy from colonial times. infrastructure building occurred, including most of the inter­ For the post-World War II period, we now look at the state highway system. link between energy and the economy in two slices, 1949- (In this and subsequent tables, there is double-counting 73, and 1973 to the present. This is displayed in Tables 2 with respect to the fuel consumed by the electric utilities and 3. For the whole economy, in the 24-year period between sector. The amount of fuel, measured in BTUs, is accounted 1949 and 1973, when the first oil hoax began, the total firstin the electric utilties sector, and then the amount offuel,

EIR April 30, 1993 Feature 35 very harmful in its own right; but let it strike someone who

TABLE 3 has AIDS, and it will almost certainly kill that person. The Energy starvation of the U.S. economy, last 20 years have so thoroughly distorted and corrupted the 1973-92 energy relations within the U. S. economy, that it is like someone with AIDS . And the energy BTU tax is like tubercu­ 1973 1992 Compounded losis. (quads (quads 1973-92 annual But, it is worse when one adds in the financial, monetary, of of increase increase and economic considerations. Firms have been asset-stripped Sector BTUs) BTUs) (%) (%) and looted, not only by junk-bond speculators and dealers in 74.28 82.16 11% 0.53% Entire conomy financial derivatives, but by the buildup of cancerous debt Residential levels that have been financed since the late 1970s at very and commercial 24.14 29.58 23 1.08 high interest rates. The business sector of the economy has Industrial 31 .53 30.23 -4 -0.21 over $5 trillion in debt. The interest-cover ratio, the percent­ Transportation 18.60 22.82 23 1.08 age that interest payments on debt represents of the total cash Electric utilites 19.85 29.88 51 2.18 flow of a business, stands at 16%: Some 16¢ of each $1 of

Sources: Department of Energy, Annual Energy Review, 1988; Monthly cash flow goes to pay interest. Cost increases associated with Energy Review, Data Resources, Incorporated. the BTU tax, hitting manufact�ring, cannot be absorbed. In addition, the energy-intensity threshold needed to keep manufacturing operating at the level required, is broached by measured in BTUs, that is consumed to produce electric the energy BTU tax, and here too, the economy has been utility-generated electricity for each of the residential and operating at such a low level that the company simply de­ commercial, industrial, and transportation sectors is account­ volves. ed a second time within each of those sectors.) Tables 3, 4, and 5 show how the economy was de-ener­ gized over the 1973-92 period. Table 3 shows the collapse Non-linear effects of energy in the industrial sector of 4% in this period, as The policies of destroying the economy started after the businesses simply closed. Today, for example, steel produc­ assassination of President John F. Kennedy in 1963, and the tion is 41 % lower than in the mid- 1970s, machine tool pro­ introduction by President Lyndon B. Johnson of the policies duction is 32% lower, and so forth. Though there has been that turned America away from energy-intensive, capital­ some secular energy "conservation" in industry, these figures intensive, and power-intensive development ofthe real econ­ cannot mask the fact that energy consumption fell because omy, toward becoming a post-industrial junk heap. In a way, heavy "smokestack" industry, the backbone of any economy, the increase of energy throughput in the period 1963-73 began boarding up and disappearing. slowed down, but could not halt, the rate of collapse of the Energy consumed by electricity production did increase, U.S. real physical economy. which was a useful development, but it was offset by two In the post- 1973 period, the collapse accelerated. Though considerations. First, the level of growth is much, much less there are many causes, two stand out---energy-environmen­ than in the 1949-73 period. Second, much of the electricity talist, and monetary-economic. Under the first set of causes went into the residential and, especially, the commercial are the environmentalist restrictions and the two oil hoaxes, sector, which was the one sector of the economy to grow which combined raised the price of petroleum 10 times. The substantially. According to ' U.S. government figures, firstoil hoax, organized by the British, occurredin 1973-75, America now has 4 million commercial buildings. Although and the second oil hoax in 1978-79. At the same time, in each enterprise does not consume as much energy as a manu­ the financial realm, Federal Reserve Board chairman Paul facturing enterprise, the sheer gargantuan proportions of the Volcker, acting for Anglo-American financial interests, be­ white-collar administrative side of the economy, which in­ gan in October 1979, continuously raising interest rates until habits the commercial buildingJS, accounted for whatever in­ they reached 21.5% by February 1980, collapsing produc­ crease of energy throughput occurred in the economy in tion. Interest rates remained at a double-digit level for over 1973-92. a decade. In 1981, the banking system was deregulated. First But total energy consumption stagnated. junk bonds, and then the financial derivatives market, both The problems of the 1973-92period emerge in stark relief ideal for laundering drug money, proliferated. when compared with the 1949-73 period. As Table 4 shows, It is when the energy BTU tax is viewed in the context the level of energy growth in the earlier period, in each sector of the "de-energization" of the economy during the 1973-92 of the economy, was at least a compounded annual growth period, that its effects can be fully gauged. By itself, it would of 3.78% per year. That figure was not even approached be very harsh. But an economy is in some respects analagous in the later period. Taking the energy consumption of the to a human being. If tuberculosis strikes someone, it can be economy as a whole, the yearlY' compounded growth of ener-

36 Feature EIR April 30, 1993 TABLE 4 The periods 1949-73 and 1973-92 compared: growth versus disaster

Period I Period II 1949-73 1973-92 compounded annual compounded annual Period I as a rate of change of BTU growth rate of change of BTU growth multiple of Period II (%) (%) (I divided by II) Entire economy 3.78 0.53 7.1 Residential and commercial 4.59 1.08 4.3 Industrial 3.75 -0.21 Transportation 3.58 1.08 3.3 Electric utilites 6.51 2.18 3.0

1. Values are not comparable. Sources: Department of Energy, Annual Energy Review, 1988; Monthly Energy Review.

TABLE 5 Energy consumption for entire U.S. economy, per capita and per household

Entire economy Number of Energy Energy energy consumed Population households per capita per household Year (quad BTUs) (millions) (millions) (million BTUs) (million BTUs)

1949 30.36 149.3 42.1 203.3 721 .1 1973 74.28 21 1.4 68.3 351 .4 1,087.6 1992 82.16 256.0 95.7 320.9 858.6

Source: Departmentof Energy, Annual Energy Review, 1988; Monthly Energy Review; Data Resources, Incorporated.

gy consumption of the period 1949-73 was an astounding fallen dramatically. From a level of 215.6 million BTUs seven times greater than the yearly rate of 1973-92. per household in 1973, it fell to 173.5 million BTUs per If one looks at the economy on a per capita basis, the household in 1992. Thus, in 1992, each household consumed story is even more stark (see Table 5). Between 1949 and 20% less energy than it did in 1973. Some of this is accounted 1973, energy consumption per capita rose by 73%. Between for by energy-saving appliances, but most of it results from 1973 and 1992, it fell 9%. This gets at the population control a lower standard of living-people using less heat in their policy. If the energy level of the economy is the same, and the houses in the winter, and so forth. population rises, each person consumes less energy, meaning If the American people tolerate the fascist mentality that that he or she has less power, as an industrial operative, over imposed the energy BTU tax, they will within a few yearsbe the process of altering nature. Man's lawful mastery of the suffering under the carbon-based fuel tax, and energy price world is diminished. What will be the result? Just as with the increases will increase exponentially. outcome of the parallel reduction of the standard of living of the average family household during this period, the family 'Energy delinkage' lunacy will reduce the number of children raised, because there are The environmentalist movement attempts to portray the fewer resources, including energy, available to it. undeniable lowered level of energy consumption of the econ­ Now, what happens when the energy BTU tax slashes omy as something good. Joined by the whorish economics energy consumption? The birth rate will be cut even more profession, the environmentalists argue that the lowered level steeply, and soon the death rate will overtake the birth rate, of energy throughput proves that the U.S. economy has be­ which has been the malthusian intent of people such as Paul come more energy-efficient. How? The dollar value of Gross Ehrlich and the environmentalists all along. National Product, the nominalist accounting system which Finally, within the residential sector, which essentially measures the dollar value of all final sales transactions in the represents the energy consumed to heat and cool one's home U.S. economy, has gone up. The environmentalists call this and run appliances, the level of energy consumption has "the energy delinkage of the economy" (see Figure 2).

EIR April 30, 1993 Feature 37 rate shock, there has also been 25 years of environmentalist FIGURE 2 policy, which has enervated the economy to the point that The so-called delinkage between energy and the energy BTU tax will finish! it off. This constitutes the the economy second layer of weakening of the economy which must be taken into account when considering the effect of the energy Energy consumption Gross Domestic Product (quadrillion BTUs) (trillions 1987 constant $) BTU tax. These environmentali:st restrictions and laws, en­ 110 $5.0 acted beginning 1968-74, constitute a nightmarish set of Gross Domestic Product '" costs and physical constraints. Like a set of creeping vines, 100 4.5 they entwined themselves arouna the real economy, suffocat­ 90 4.0 ing it. 80 On April 22, 1970, the environmentalistmovement cele­ 3.5 brated Earth Day, a nationwide pagan festival reminiscent of 70 3.0 the most decadent days of Rome. Mother Earth, the great Energy whore of Babylon, expressed iIn other cultures as the evil 60 consumption ! 2.5 Cybil, Ishtar, or Astarte, was celebrated in cities across the 50 country. By this time, the Ford Foundation, under the leader­ 2.0 40 ship of the chairman of the board of the Eastern liberal estab­ 1.5 lishment, McGeorge Bundy, hl¥i set up many of the groups 30 that became the environmentalist movement, such as the 20 1.0 Environmental Defense Fund, started in 1970 with Ford Foundation seed money. Today; the environmentalist move­ 10 0.5 ment, both in terms of contributions and in grants and govern­ O ��OT�OT�OT�OT�OT�OT��+ o ment monies it directly controls� has an annual revenue flow 1950 1955 1960 1965 1970 1975 1980 1985 1990 of $6 billion. That is bigger than the national product of more than 15 nations in the world. Sources: Department of Energy, Annual EnergyReview, 1988; Monthly Between 1968 and 1974, the malthusian financiers and Energy Review; Departmentof Commerce, Bureau of Economic Analysis. oligarchic families that created and control the environmen­ talist movement, working thro4gh Congress, accomplished Yet during 1973-92, the economy's level of new home the following: construction, steel production, and machine tool production, • in 1970, passage of the Clean Air Act; just to name three industries, have each fallen by greater than • in 1972, passage of the Clean Water Act; 30%. What grew? The parasitical "information society"­ • in 1972, the banning of PDT; the production of computers; banking, real estate, and insur­ • in 1973, passage of the Ehdangered Species Act. ance services; gambling casinos and whorehouses; drug sales These actions occurred at the same time as the financiers laundered through "legitimate enterprises," and so forth . A were rigging the 1973-75 oil holiX. steel plant consumes 1 0 times the energy per employee as a Up through 1990, the EnvirPnmental Protection Agency commodities brokerage firm; each information society enter­ had estimated that compliance With the Clean Water Act and prise, aside from heating and lighting, does not consume the Clean Air Act cost the ecdnomy $91 billion per year. much energy. Yet, 10 and behold, aggregately, the informa­ Then, in the spring of 1990, the Congress passed a stringent tion society has accounted for almost the total gain in energy addition to the Clean Air Act which raised the cost by another consumption in the economy in the last 20 years. $60 billion, bringing the total dost to $150 billion per year. But the enviro-fascists have concluded, and many sena­ The 1990 Clean Air Act additions banned or severely restrict­ tors , congressmen, and White House advisers agree, that the ed a host of industrial processes j Already, smokestack indus­ United States should be "restructured" further away from tries must apply costly scrubbers, in one of the most ineffi­ steel production and other heavy industry . This is a prescrip­ cient wastes of industrial capital known to man. tion for suicide, as the physical economy crumbles. Other legislation is being used with similar military preci­ sion. In October 1992, Congress passed and President Bush Environmentalist nightmares signed into law a $2.4 billion omnibus water act whose pro­ Since the 1970s, the environmentalists have been en­ visions will force drastic changes in the way federal agencies gaged in effectively blocking the construction of even one operate federal dams and reseI1loirs in the West, especially new nuclear power plant, banning DDT and chlorofluoro­ in California. Some 800,000 acre-feet of water (2.6 billion carbons, reverting developed farmland back to wetlands­ gallons) are being taken from ftumersto protect fish and set wastelands, and other activities which choke the economy. up wildlife refuges. It also set Up a water marketing system In addition to the two oil hoaxes and the Volcker interest that will raise the water rate on the remaining water the

38 Feature EIR April 30, 1993 fanners get and force "conservation" rationing. This in the U . S. energy consumption would rise from 82. 156 quadrillion midst of a seven-year drought in California. BTUs in 1992, to 336.479 quadrillion BTUs, a more than The Endangered Species Act (ESA) protects thousands fo urfo ld increase. The U.S. population would increase dur­ of so-called species, most of which are members of redundant ing this period to over 600 million. That can't happen! thriving species, but with different coloration or spot pat­ screeches the environmentalist. "Where would we get that terns. About 65% of the protected species are insects, some much energy, what industries would consume that much en­ of which are disease-transmitting. There are 296 protected ergy, and wouldn't the planet die from pollution?" snails, 90 in Alabama alone. The ESA has removed from There are a whole range of new technologies on the edge lumber cutting an area in the PacificNorthwest which is the of development. Lyndon LaRouche has identified fourareas size of Massachusetts and Rhode Island combined, to provide on the frontiers of science that are ripe for a scientificrevolu­ a mating area refuge for 2,000 spotted owls. Currently, to tion: work in fusion plasmas, coherent energy beams, optical "protect" a blind salamander, the ESA is being utilized in spectroscopy, and matter-antimatter reactions. There are five such a way that 60% of the drinking water of San Antonio, technologies that within 40 years could, in conjunction with one of the 15 largest cities in America, could be removed by other appropriate economic measures-such as federalizing 1994 . the Federal Reserve System, to break the bankers' dictator­ In 1987, a number of nations agreed to the Montreal ship over the United States and provide credit for needed Protocol, which banned the production of chlorofluorocar­ economic investments-transform every major industry in bons by the year 2000. CFCs are used in the heating and air America, and solve every major problem on Earth . These conditioning-refrigeration chain. In a followup meeting to technologies include: the Montreal gathering on Nov. 17-25, 1992 in Copenhagen, 1) Magnetically levitated trains. These are trains with 52 nations signed a protocol which calls for: "no wheels," and therefore drastically reduced friction, • a ban on CFCs by the end of 1995 , instead of the year which travel at cruising speeds of 250-350 miles per hour, 2000; working on the principles of magnetic repulsion or attraction. • fire-extinguishing halons to be banned by the end of It is more efficient to travel between Washington, D.C. and 1993; Boston on a maglev train than on a plane. Maglev trains are • methyl chloroform, used in dry cleaning, to be banned powered by electricity, emitting no CO2, no methane, no by 1996, instead of 2005 ; nitrous oxide. • carbon tetrachloride, to be banned by 1995, instead of 2) Nuclear fission power. America should be mass pro­ the year 2000. ducing 1 megawatt (1,000 kilowatt) nuclear power plants at The ban on CFCs will cost the economy $135 billion, the rate of 20-30 new plants per year for domestic energy plus as many as several tens of millions of lives in the Third consumption alone. Deserts would be greened, through river World, where refrigeration of food is necessary for survival. diversion and water desalination powered by nuclear power. The environmentalist movement is besieging several key 3) Hydrogen-powered cars. Powered by hydrogen pow­ components of the economy . One flank: is attacking the water er cells, these cars emit no polluting wastes. supply; another is attacking chemicals and fertilizers, and 4) Magnetohydrodynamic plasma technology. In the hence food production; another goes after the food-preserva­ basic MHD conversion design system, coal or another fossil tion chain; another in attempting to close down energy pro­ fuel is burnedat between 4-5,000° F, producing an ionized duction. The costs of the environmentalist movement has gas which, when passed through a magnetic field, produces reached monstrous proportions. Now add on an increase in electricity. Coal is the source for 54% of all electricity gener­ the price of energy. ation in America. Operating in the U;S. now are 798 coal­ fired steam electric power plants of capacities greater than A rational energy policy 100 megawatts. If these plants were to be retrofitted with Currently, America is being asked to think in 40-year MHD converters, and new plants built with them, they would time-framesto formulate energy policy. The National Energy produce at a thermal efficiencyof 60% , as against the present Strategy, formulated in 1990 by the Department of Energy, 34% efficiencyof coal-fired plants. MHD eliminates 99% of works from such a 40-year perspective. What if, in the next atmospheric pollutants. 40 years, America returned to the levels of energy develop­ 5) Fusion power development. Fusion's principal ener­ ment that characterized the country during periods of its gy source is deuterium, an isotope of hydrogen , which comes growth? The United States would junk the environmentalist from ordinary seawater. Fusion's energy-flux density is policy of energy starvation. about 11 orders of magnitude greater than fossil fuels. If U. S. energy consumption grew at the compounded By the year 2030, applying LaRouche's approach, annualized growth rate of the period 1949-73, that is, a America would support a population of over 600 million growth rate of 3.78% which America has already demonstrat­ people, pollution would be slashed� and the colonization of ed it can achieve, what would happen? By the year 2030, Mars would be a reality.

EIR April 30, 1993 Feature 39 �ITillInternational

i I U. N. paves the way fdr Serbian takeover of Bosnia I i by Konstantin George

United Nations "peacekeeping" forces in Bosnia reached new tum of the Serbs" that they be di$armed. The Canadian forces depths of infamy, as Serbian forces captured the easternBos­ were stopped twice by Bosnian Serb militias, and denied entry nian town of Srebrenica on April 16 after a year-long siege, to the town. BBC's correspondc.;ntcommented that the intent and set to work implementing their hideous "ethnic cleansing" of this was apparently "to humiliate the U.N. still further, to policy. drag them in the dust, and to impose more conditions on the The U.N. commander in Bosnia, Gen. Philippe Morillon, U.N. to make sure that the U.N. has agreed to do nothing more left Srebrenica on March 27, under the direct orders of U.N. than to arrange the Bosnians' suhender and to make sure that Secretary General Boutros Boutros-Ghali, who told him that the Bosnian militias give up theiirweapons ." he had "no authority" to try to save Srebrenica. General Mor­ ilIon himself is no hero, having been declared persona non Serbs in final offensive grata by the Bosnian government, for allowing the Serbs to Going into April, the Serbians had two remaining mili­ murder Bosnian Deputy Prime Minister Hakija Turajlic on tary-territorial objectives to seiie. First, was to eliminate the Jan. 8, while Turajlic was travelling in a convoy under U.N. Bosnian-held Srebrenica pocket in northeast Bosnia, near protection. The U.N. troops allowed Serbian assassins to Bosnia's border with Serbia, �d second, after taking Sre­ open the door of the armored personnel carrier in which the brenica, to use the Serbian for�es freed from that offensive Bosnian leader was riding, and to shoot him in cold blood. to launch a drive against Bosniim positions in northern Bos­ Two days after the fall of Srebrenica, General Morillon nia, to clear a corridor connect ng Serbia with its conquests joined Bosnian Serb leader Radovan Karadzic and other Serb in central and western Bosnia, fland all the occupied regions war criminals at a banquet in the Serb-held town of Pale, in Croatia (western Slavonia, Bianija, Krajina, the remaining cheerfully marking the celebration of Orthodox Easter. Mor­ Dalmatian hinterlands), minus eastern Slavonia, which is ilIon and Gen. Lars-Eric Wahlgren, another U.N. command­ adjacent to Serbia. er, sat at the dais along with Karadzic, Karadzic's wife, and The U.N.-brokered capitulation of Srebrenica, with the Serb commander Gen. Ratko Mladic. "Under portraits of disarming of the Muslim defdnders, directly served these Serbian kings, waiters brought trays of sijivovica, a plum Serbian war aims. No sooner did Srebrenica capitulate, than brandy ," reported the New York Times. "Between toasts of the freed Serbian forces were I immediately moved into an 'Christ is risen,' people talked of war and destruction." offensive directed against the Bosnian-held towns of Maglaj While the generals drank brandy, the chief activity ofthe and Olovo. The elimination of �e Bosnian military presence United Nations forces was "to help arrange and administer the in the Srebrenica pocket securetlthe rear of the Serbian drive surrender and evacuation of Srebrenica," reported the British to clear the corridor. Broadcasting Corp. on April 17. In other words, to help the Maglaj and Oloyo hold the key to Serbia securing one Serbs deport or kilI all Muslims. The mandate of the U.N . of two possible variants of its Ilast major ground objective, contingent of Canadian forces entering Srebrenica is "to take namely securing a usable road �n the highly vulnerable land possession of the Bosnians' weapons in line with the ultima- corridor linking Serbia with its tonquests in central and west-

40 International EIR April 30, 1993 Refugeesfrom Bosnia-Hercegovina at a fo od and health aid center in Croatia . Inset: A recent demonstration in San Francisco by several different groups targets Serbian war crimes .

em Bosnia, as well as with all the occupied regions in Croatia. NATO has begun air drops to Tuzla, but air drops The offensive also aims to widen the currently very narrow alone cannot sustain 200,000 civil . Tuzla has a major corridor, to place it outside Croatian and Bosnian artillery airport, which is held by the Bosnians, but an air lift has been range. The original Serbian goal of opening the paved road in ruled out, under the absurd argume�t that the Serbs would the corridor running near the Sava River, has never succeed­ shell the airport. Perhaps they would I but a few days of heavy ed, as the Serbs have been unable to take the bastions held by air strikes would do wonders in this regard. Croatian forces blocking this route . They are now "going for Ground supply is currently imphssible because the fac­ I broke" against the more weakly held Bosnian positions astride tion of Croatian Bosnians led by Ma e Boban, which is seek­ the second route through the corridor. ing a de facto partition of Bosnia, has blocked the roads leading to Tuzla. This blockage did not come out of the blue, Next target: Tuzla and was essential to the Serbian �ilitary calculations for The U. N . -brokered deal for Srebrenica has not alleviated their April offensives. At the begullling of April, Boban the suffering of the Muslims in northeast Bosnia. Rather, telegraphed the isolation of Tuzla by issuing an ultimatum to through the mass evacuation of the 50-60,000 Bosnian civil­ the Bosnian Muslims, demanding thati they leave the three ians trapped in Srebrenica to the town ofTuzla, some 70 kilo­ cantons of Bosnia-Hercegovina accd ded to the Croats under meters to the northwest, it has immensely compounded and the infamous Vance-Owen plan, gi ing a deadline of Aoril exacerbated the plight of the Bosnian Muslims. Tuzla, already 15. On April 15, the heaviest fightingever erupted between swollen with war refugees, cannot cope with the new flood, Croats and Muslims throughout central Bosnia and in the which would bring its civilian population to about 200,000. Mostar region of Hercegovina. The fighting was still raging Formally speaking, Tuzla is not surrounded. Its link to through April 20 , with no end in s�ght, and well over 200 the main Bosnian lines is through a very narrow Bosnian­ killed on both sides. held corridor, with a very poor dirt road. A year of Serbian attacks has failed to take Tuzla. But now, barring drastic Too little, too late? combined ground and air action to supply the city, Tuzla Will the United States act, and launch the kind of air strikes threatens to become a new Srebrenica, the scene of mass against Serbian military positions thaI could still stop the war? starvation, on a scale surpassing that which transpired in Certainly no U. S. military policy ca have any chance of suc­ eastern Bosnia during the winter. cess if Washington insists on clearing atters firstwit h Britain

EIR April 30, 1993 International 41 and France. The latest position of the new French government was clearly expressed by Defense Minister Leotard on April - - 20, after his return from talks in London. Leotard spoke out against lifting the arms embargo against Bosnia and Croatia, and ruled out air strikes as "ridiculous" and "absurd." The British position is to delay air strikes as long as possi­ ble, and thus make them meaningless when and if they occur. Wiesenthalbefi ends Beyond that, the British, like the French, insist upon the pre­ condition of withdrawing U.N. forces first, before air strikes Serbiancrifes begin, thus giving the Serbs an "early warning system." by Mark Burdman ! Statements by leading British figuresover the April 17-18 weekend document this. Sir Nicholas Bronsor, Tory chair­ man of the Parliament's Defense Select Committee, declared Austria's renowned "Nazi-hu ter" Simon Wiesenthal has in response to Lord David Owen's qualifiedcall for air strikes: seen his better days. In 198 , Wiesenthal had taken the "Lord Owen is not right to call for the bombing of the Serbs. positive step of signing a pol cy statement, distributed by It is not a one-sided conflict. The Croats and Muslims are the Club of Life, denouncin the present-day practice of also guilty of ethnic cleansing. However there may be a point euthanasia as identical to the !icies of the Nazis. He did where we have to change tack, but that would mean the end of this with full knowledge that was endorsing an initiative humanitarian aid. It would have to be a joint decision, with of Helga Zepp-LaRouche, wi£ of Lyndon LaRouche, who everyone going in, following the Americans. But we would were then being anathemized oughout the world by the have to withdraw troops first [meaning, among others, the Anti-Defamation League of B'pai B'rith (ADL). Duringthe British troops assigned to the U.N. in Bosnia] , as they would late 1980s, Wiesenthal had f�equently criticized the U.S. be slaughtered." Justice Department and Worlq Jewish Congress witchhunt Bonsor's "fight"with Owen has less to it than initially meets against former Austrian Presi�ent Kurt Waldheim. He also the eye. He demanded that before any air strikes, the Russians appeared to distance himself frpm some of the campaigns of would have to agree to such a course of action. Owen, after his the institute bearing his name in California, which targeted well-publicized call for airstrik es, sang a similartune: "We have eastern European-origin octogenarians living in the United to bethinking in terms of going to the Security Council [meaning States, Britain, and other countries who were accused, often an agreement with Russia and FranceI and taking the necessary on the basis of evidence proviciled by the Soviet authorities, measures to pressure them [the Serbs] and that would include of Nazi war crimes. military measures, and I think these measureswould bethe inter­ But now, for reasons that are not clear, Wiesenthal has diction of supply lines." thrown his weight behind a c*mpaign of certain Russians, U.S. policy must be a combination of air strikes now the Israelis, and their friends in! the ADL to justify the crimes against vital Serbian targets , combined with a broader strate­ of the Serbs. He is also echoing Russian propaganda vis-a­ gy that could easily neutralize the often-cited "Russian prob­ vis the Baltics and Ukraine, as if to justify a Russian strategic lem" that supposedly stands in the way of doing anything move against these nations. i serious against Serbia. Clinton must accept the Russian pro­ With his pro-Serbian views" Wiesenthal has aligned him­ posal for American-Russian anti-missile defense coopera­ self with a faction within Je\\1ish organizations typified by tion, put forward by President Yeltsin at the Vancouver sum­ California's Herb Brin, whose ADL-mouthpiece Southwest mit on April 3-4. By committing America to support Jewish Heritage weekly has become an open advocate of Russia's, and indeed America's own, most vital strategic the Serbian cause. Brin has traveled to Belgrade to propagan­ interests in this way, he can readily get Russian agreement dize for Serbian dictator SlobMan Milosevic . At the same to help stop Serbia. Compared to the prospects of mutually time, Wiesenthal is in publid opposition to an important rewarding strategic defense and high-technology cooperation counter-current among Jewisll spokesmen, exemplified by with America, Serbia counts for little in Russian strategic those who have drawn the parallel between the current thinking. For Bosnia, however, time has all but run out. slaughter of the Bosnians and what was done to the Jews by As a postscript, another Russian initiative ought to be the Nazis. The sole remaining commander of the Jewish endorsed immediately by President Clinton, with a proviso. Warsaw Ghetto uprising again�t the Nazis, Dr. Marek Edel­ This is the proposal of Russian Foreign Minister Andrei Ko­ man, declared on April 18, dn the 50th anniversary com­ zyrev for all U.N. Security Council foreign ministers plus memoration in Poland of the ilaunching of that resistance: leading European foreign ministers to meet in either Sarajevo "There is mass exterminationl taking place in Bosnia, and or Srebrenica to work out a solution. The proviso is that the Europe is behaving in a similnr way as it did vis-a-vis the ministers not be permitted to leave Sarajevo or Srebrenica ghetto fighters.... Sa dly, the Holocaust did not stop with until that solution is reached. the ghetto. It goes on."

42 International ElK April 30, 1993 Wiesenthal spoke out on the Serbia question in an April aggressive intentions toward other groups. By 1986, the 1 interview with the Italian daily Corriere della Sera. It coming breakup of Yugoslavia and the Serbian war of aggres­ was on that very day that a Bosnian government suit was sion became foregone conclusions to insiders in then-Yugo­ introduced before the International Court of Justice in The slavia, when the Serbian Academy of Arts and Sciences re­ Hague, charging the Serbs with genocide. Wiesenthal told leased a policy document, authored by its chief ideologue Corriere that it would be impossible to hold a Nuremberg­ Dobrica Cosic (today President of rump "Yugoslavia") rec­ style tribunal for crimes committed in former Yugoslavia, ommending that the Serbian elites drop their Titoist-Bolshe­ because "froma military point of view, this is a civil war," vist commitments, and instead promote a "Greater Serbia" and because if there are Serbian war criminals, there are ideology. It was Cosic and his Serbian Academy colleagues also Croatian war criminals, as well as Bosnians who have who sponsored the rise to power of Milosevic, whose Greater committed atrocities. Serbia ravings in the late 1980s sent the message to Croats, Bosnians, Kosovans, etc., that coexistence with Serbia was Big lies becoming impossible. Once the dynamics toward a split be­ The interview was headlined with a quote from Wiesen­ came far advanced by mid- 1990, it was the Serbian militias thal denouncing the "fascist Ustashe" ostensibly ruling in in Croatia under the late Jovan Raskovic, rather than the Croatia today, "Ustashe" being a reference to the Nazi­ Croatians, who began to commit atrocities. backed regime which ruled Croatia in the 1941-45 period. These elementary facts would all be known to a well­ The repeated "Big Lie" in the interview was to make a sim­ informed Austrian like Simon Wiesenthal, especially as the plistic and historically absurd equivalence between the early Serbian elites' ideology and propaganda since the early 1980s 1940s and today, to the effect that "Croatians were fascists has been justifiablylikened to that of the Nazis. So why does then and now," "Germans were Nazis then and now," ad he propagate such lies? nauseam. Wiesenthal compounded this painful pattern with an in­ Wiesenthal aligned himself with the British-authored terview with the Russian weekly New Times. In its April "Germany is the Fourth Reich" propaganda, saying that it 1993 edition, the magazine featured an interview with "the was a "very big mistake for the whole world" that Croatia well-known hunter for Nazis, [who] talks about the situation and Slovenia were recognized as early as they were, but in the Baltic states and Ukraine." Wiesenthal talked about that "that was pushed by Germany and Austria." Asked, "If only those aspects that the Russians want publicized now. Serbia is a Bolshevik state, is Croatia to be definedas a fascist Journalist Anatoly Kovrigin asked, "Dr. Wiesenthal, I'm state?" Wiesenthal responded: "Exactly. It is enough to read aware that you are deeply concerned about the fact that the the anti-Semitic writings of President Franjo Tudjman to be upsurge of nationalism in the Baltic states and Ukraine result­ convinced of that. Is it not the case that Israel has refused to ed in rehabilitation of Nazi criminals. What activities do you have diplomatic relations with Croatia? There is no Israeli undertake in this connection?" Wiesenthal jumped on the embassy in Zagreb. It is also the case that Germany, Austria, leading question, complaining about Lithuanian authorities' and the Vatican were the firstto recognize the independence refusal to cooperate with him in tracking down alleged Nazi of Croatia.. ..I am worried that Croatia will transform itself collaborators. into a satellite of Germany, like the Serbs today dependagain Later, Wiesenthal was asked another leading question, on Russia." Yet he demurred from the characterization of "Why has rehabilitation of the criminal past become possible Serbia as "Bolshevik," insisting that one can not expect a in the Baltic states?" He responded: "This is one of the mani­ state that has been communist, to become "in one shot, demo­ festations of nationalist tendencies in the three Baltic states. cratic." . . . Generally speaking, I'm worriedby the clear outburst of Wiesenthal even argued that the Serbs, not the Croatians racism and fascism on the territory of the former U.S.S.R." nor Bosnians nor Kosova Albanians, were the first victims Wiesenthal self-righteously proclaimed that he would re­ of the breakup of Yugoslavia: "We know of the crimes of the fuse to visit Kiev, capital of Ukraine, because "I can't afford Serbs in Bosnia. But we forget that the first refugees of the taking part in falsifying history. " war were Serbs; 40,000 were forced to leave Croatia, when Such statements should not be seen in a "Jewish" context on Dec. 22, 1990 this country decided to proclaim that the of professed hatred for Nazi crimes. Rather, they should Serbs were an ethnic minority. This shows that the Croatians be seen as part of a growing trend among certain western were the first, before the Serbs, to evince an exaggerated influentials, to "signal" that a Russian revanchist push into nationalism .. ..The synagogues and Orthodox churches [in these parts of the former Soviet Union would be tolerated, Croatia] were set on fire , a Jewish cemetery was profaned." as a response to what the Russians are claiming are "viola­ This is pure falsification. All experts on the Balkans know tions of rights of ethnic Russians" living there. Wiesenthal, that the origin of the conflict, in its contemporary manifesta­ in this sense, is only one of several prominent individuals tion, was in 1981, when the Serbs initiated a brutal crack­ who are playing with firein the Baltics and Ukraine. But that down against Albanians in Kosova, thereby signaling their hardly excuses Wiesenthal, who should know better.

EIR April 30, 1993 International 43 center of an ancient culture and industrial society into the prime purveyor of "fashion" to the world's oligarchs and yuppies), have wiped out the jdea that the state is an instru­ ment for the defense of the weak. It is possible that the voters in the April 18 referendum did not realize it, since all the pre-referendum publicity fo­ Italy: a plebiscite cused on the first question, majority election to the Senate; but in three of the other eight questions , they voted against against the state the idea of a centralized state. These questions involved the abolition of three ministries: State Holdings, Tourism, and Agriculture. Now, the jurisdiction of these ministries will by Leonardo Servadio be turned over to Italy's 20 regions. In other words, the administration is beginning to be decentralized. Months and months of scandals in Italy aimed at the corrupt This closely follows the path projected by Northern political class, and in favor of institutional "change," came League chief Bossi, who in past years had already declared to a climax on April 18, when a voter referendum passed by that there should be direct elections, according to the majority an overwhelming majority. Of the eight questions on the system, for a central political' administration, which should ballot, the one considered the most important will lead to a be reduced in its authority, with a wider role for the regional majority system ("winner take all") for deciding elections to governments. In other words, 'a stronger central role for for­ the Senate, instead of the proportional system that has been eign and military policy, but all the rest, particularly econom­ in place since the founding of the republic afterWorld War ic policy, should be decided locally by the regions. The II. results of the referendum go exactly in that direction. The change to a majority system in the Senate will have the effect of delivering the industrialized North to Umberto Decentralized economic policy Bossi's Northern League, a new party which claims that The plan seems purely utopian: How can there be a na­ northern Italians are ethnically different from southern Ital­ tional foreign policy or military policy, if economic policy ians, and is expected to begin splitting the nation into three is decentralized? Yet, calls for such a policy have multiplied separate entities-de facto if not de jure . The project has in recent years. For example, in a recent book by Paul Kenne­ high-level international sponsors, notably the Freemasons. dy, Preparing for the Twenty-First Century(New York: Ran­ The result of this referendum was inevitable. Never has dom House, 1993), one of the central theses is that the role the credibility of Italian political institutions fallen so low. of the state should change, because the prevailing economic When the Italian state and political system were struck by entities are the "multinationals," capable of operating in any an avalanche of terrorism in the late 1970s, the institutions nation, and of changing to anothernation at any moment they emerged strengthened, at least in the eyes of the Italians, deem it profitable (see EIR, March 5, p. 47). since they proved able to resist the armed assault. In the 1970s, it was more or less clear to the Italian people That was when Christian Democratic President Aldo that this way of thinking was to be rejected. Now, it has been Moro was kidnapped and murdered in early 1978, by the implicitly accepted, and the country is getting ready to place Red Brigades terrorist group. Moro had been attempting to itself into the hands of the multinational empires. This resem­ organize a governingalliance between the wing of the domi­ bles the way the ancient Byzantine Empire and other oriental nant Christian Democracy (DC) that was trying to distance despotisms ruled through local satraps and "ethnarchs," who itself from Washington and the wing of the Communist Party exacted tribute and slaves on behalf of the central authorities, (PCI) seeking independence from Moscow. The European while allowing a measure of local autonomy on the level of Labor Party (POE), associated with the political movement economic and social decisions, which merely served to di­ of Lyndon LaRouche, marched through the streets of Milan vide the various subject peoples further and keep them from and Rome with banners that read: "Kissinger Kidnapped ever contesting the imperial pbwer. Aldo Moro." In fact, former U.S. Secretary of State Henry Not by chance, the day after the referendum, a delegation Kissinger was active in efforts to destabilize Italy, and the from Moody's Investors SerVice was expected in Rome, to evidence linking his activities to the kidnapping came out in consult with many top authorities of the state and the govern­ court during the trial of Moro' s assassins. ment. Moody's was coming to verify whether Italy is moving in the way it dictated, when it started the process of devalua­ Undermining the idea of the state tion of the lira. The scandals which originated in the widespread corrup­ The referendum was supposed to be the maximum ex­ tion that dominated the 1980s (the years in which a cynical pression of democracy; but what has all this to do with de­ consumerism took over, and Italy was transformed from a mocracy?

44 International EIR April 30, 1993 New evidence shows Inter-American Dialogue threat to Ibero-America

The fo llowing memorandum was issued by EIR's Ibero­ Watch has functioned as a de facto support group for the American desk on April 20, and is being circulated through­ Shining Path terrorists, focusing its campaigns against the out the continent. For additional reference, see "I nter-Amer­ Peruvian government and military and their war to defeat ican Dialogue 'Sharpens Dagger' Against National Sover­ terrorism. eignty" (EIR, Jan. 8, 1993) . In April, Bell's Americas Watch issued the most open piece of pro-Shining Path propaganda yet: a report which I. Introduction charges that human rights violations became "significantly New information has come to light confirmingEIR ' s ear­ worse" last year in Peru and that Shining Path's military lier warnings that the Inter-American Dialogue constitutes a capabilities were "undiminished" by the capture of hundreds grave threat to national sovereignty and security in lbero­ of top Shining Path leaders-both bald lies. The much-publi­ America. The Dialogue, ostensibly a private group of West­ cized report alleges that the arrestand trials of Shining Path's em Hemisphere bankers , policymakers, and politicians, has known front-groups of doctors and lawyers, such as Socorro been found to deploy an extensive network of "non-govern­ Popular (People's Aid) and the Association of Democratic mental organizations" (NGOs) which defend terrorists and, Lawyers , are violations of human rights, and declares that in their own words , seek to eradicate "the very concept of members of these known Shining Path associations are "neu­ national identity and national culture" from the Americas. trals" in the war. The report even includes Shining Path The Dialogue continues to exercise undue influenceover chief Abimael Guzman in its list of "Individuals Unfairly Clinton administration policymaking toward Ibero-America, Prosecuted" -supposedlybecause he was tried by a military holding four cabinet-level posts and other key positions. This court. On these and similar grounds, Americas Watch de­ is one of the most striking cases of policy-holdover from mands that the U. S. governmentcontinue to restrict interna­ the Bush administration, as it was the same Inter-American tional credit to Peru, and maintain diplomatic pressure. Dialogue which dominated policymaking towards lbero­ The government of Thailand recently accused Asia America under Bush-a point noted recently, and favorably, Watch, another division of Bell's Human Rights Watch, of by the Brazilian Ambassador to the United States, Rubens being run by the U. S. Central Intelligence Agency. On Ricupero. Furthermore, the Dialogue has placed a number March 30, the head of the Thai governmentdelegation to the of current and past Dialogue members in key positions in Inter-Governmental Asian Regional Meeting for the Second various Ibero-American governmentsas well. The latest Dia­ World Conference on Human Rights, fonnerForeign Minis­ logue newsletter brazenly reports that these individuals are ter Thanat Khoman, charged that Asia Watch is "actually [aJ "on loan" from the Dialogue to their respective govern­ front for the CIA," which uses "human rights as a means to ments-which raises the question of where their real loyalties extract and extort economic or political concessions" for the lie. industrialized countries. As outlined in the December 1992 report of the Dialogue, "Convergence and Community: The Americas in 1993," the m. The U.S. National Security overall goal of the Dialogue is to impose upon the Western Council and the NGOs Hemisphere a new order based on limited sovereignty, the Richard Feinberg, U.S. National Security Council direc­ radical free trade of neo-liberal economics, and demilitariza­ tor for Latin American affairs, is playing a central role coo;di­ tion of the Ibero-American countries. nating Dialogue policy with the NGO structurein the Ameri­ cas. Feinberg was president of the Dialogue before being II. The Dialogue and Americas Watch named to the NSC at the end of January 1993. When he was Peter D. Bell, named permanent co-chairman ofthe Inter­ appointed to the post, Dialogue chairman Peter Bell stated, American Dialogue on March 11, 1993, is also chairman of "Richard's leadership infused the Dialogue with new energy Americas Watch, a division of Human Rights Watch, on and visibility-both in Washington and Latin America. I whose executive committee Bell also serves. know of no one better suited to help shapeU. S. policy toward Americas Watch is one of the leading "human rights" Latin America in the coming period." NGOs operating in the region. In the case of Peru , Americas Barely a month after assuming office at the NSC, Fein-

EIR April 30, 1993 International 45 Rigoberta Jl-fenchU. Nobel Peace Prize winner iden ified byLyndon LaRouche as "the wo anfrom hell." berg met with representatives from the NGOs which deal Van Cott which championed tne so-called indigenous move­ with Ibero-America for a private off-the-record briefing. The ment as a means to splinter the I ation-states of Ibero-America briefing was sponsored by the D.C. Liaison Committee on and eradicate "the very concept of national identity and na­ Latin America, a group established by the Dialogue with the tional culture ." The article wa dedicated to Guatemalan ter­ express purpose of "build[ing] stronger bridges between the rorist spokesman and Nobel eace Prize winner Rigoberta NGO community and the U.S. government." MenchU. In the meeting, Feinberg stressed the "strategic impor­ Van Cott wrote: "In virtually every country in Latin tance" of NGO-U. S. governmentcoor dination. U.S. govern­ America, indigenous cultures ke challenging the legitimacy ment strategy toward Peru , Haiti, and Nicaragua, and the of nation-states that exercise dominion over their ancestral North American Free Trade Agreement were discussed. Ac­ territory . They challenge not tiust the state's disposition of cording to the Dialogue's report, all participants agreed on their lands, languages, resourtes, and heritage, but the very the importance of "multilateralism and a rethinking of the concept of national identity hnd national culture. . .. In Organization of the American States" to strengthen the lat­ Bolivia and Ecuador, federa�ions of Indian peoples have ter's intervention capabilities in the region. challenged the legitimacy o� the Hispanicized state, de­ manding that their governme ts acknowledge the local au­ IV. The Dialogue foments tonomy and cultural separatenFss of the indigenous peoples. ethnic conflict As these nations and others in Latin America struggle to The Dialogue has opened a new flank in its war against consolidate recent democratic gains, they must also address sovereignty. In February 1993, the Dialogue set up a new the indigenous groups' asserti?nl of a variety of nationalisms, special project entitled "Ethnic Divisions and the Consolida­ an assertion that requires a more tolerant and pluralistic mod­ tion of Democracy in the Americas." Heading the project is el of democracy." Dialogue staff member Donna Lee Van Cott, a specialist in "ethnic conflict." Serving on the advisory committee for the V. Who's who project are leaders of several "indigenous peoples" NGOs, The Dialogue is not simBly a group of influentials. In the World Bank, the Inter-American Development Bank, the addition to its strong presencej in the Clinton administration, Inter-American Foundation, and the Organization of Ameri­ the April 1993 issue of the Dialogue' s Washington newsletter can States. Van Cott toured Colombia and Ecuador in the reports on the "Latin Americ I members currently 'on loan' first two weeks of March developing material for the project. to their governments": The Dialogue announced that the goal of the project is • Argentine Defense MirVster Oscar Camili6n; "to stimulate a debate among the peoples of the hemisphere • Brazilian Foreign Minister Fernando Henrique on the relationship between governments and indigenous Cardoso; peoples," and that it plans to issue a report of "practical • Chilean Finance Minis r Alejandro Foxley; policy recommendations" on ethnic conflictat a later date. • Colombian Trade Mini ter Juan Manuel Santos; The true goal of the project, however, extends far beyond • Mexican Ambassador tb Cuba Beatriz Paredes Rangel; merely "stimulating a debate." On Nov. 4, 1992, the Chris­ and tian Science Monitor published an article by project director • Mexican Ambassador toI Spain Jesus Silva Herzog.

46 International EIR April 30, 1993 There is also evidence that Nawaz Sharif, in contrast to either President Ishaq Khan or the Pakistani Inter-Services Intelligence (lSI), had wanted to cooperate with India to track down criminal elements who had allegedly carried out the Ishaq Khan seizes March 12 serial bombing in Bombay that killed over 300 people, and who had then fled to Pakistan. control in Pakistan On April 8, Nawaz Sharif announced a task force to investigate and arrest suspects in the Bombay bombing, and also proclaimed his policy to round up alleged Islamic mili­ by Ramtanu Maitra tants . The Pakistani lSI reports to Ishaq Khan, not the prime On April 18, after months of power struggle between the minister, and is believed to be complicit in the Bombay President and the prime minister, Army troops surrounded bombings. Observers in New Delhi now fear that Nawaz's the state-controlled radio and television stations, and an hour removal will pave the way for a policy of unhindered provo­ later President Ghulam Ishaq Khan dismissed the Nawaz cations against India. Sharif government and dissolved the duly elected National Assembly. A three-member caretaker cabinet headed by Another execution in the offing? Balkh Sher Mazari has been named, and it is expected that In his dissolution order, President Ishaq Khan listed eight the cabinet will be expanded soon. In this action, as in his different charges for the removal of the Sharif government. earlier dismissal of the elected Benazir Bhutto government, Among them were: mass resignations of the opposition mem­ the Pakistani President exercised the power acquired through bers from the Assembly-a gift handed to the President by the Eighth Amendment of the Constitution, a legacy of mili­ Benazir Bhutto, the leader of the Pakistani People's Party tary dictator Zia ul-Haq. (PPP)-and the resignation of cabinet ministers; the "false The crisis that led to the dissolution of the National As­ and malicious allegations" leveled by the prime minister sembly and sacking of the Sharif government, a repeat of the against the President; misadministration, nepotism, and cor­ Aug. 8, 1990 sacking of the Bhutto government,had reached ruption in the federal government; and the reign of terror the flashpoint on April 17 , when Prime Minister Nawaz Sha­ against the opposition. Nawaz was also accused of misuse of rif, in a national broadcast, pointed to the "dirty conspiracies" the resources and agencies of the government for personal hatched against him, leaving no one in doubt who he thought gain, causing "massive wastage and dissipation of public was the mastermind. Following that broadcast, Ishaq Khan, funds and assets at the cost of the national exchequer . . . head of Pakistan's powerful bureaucracy, sought the Army's resulting in increased deficitfinancing indebtedness." approval and the opposition leader Miss Bhutto's support But the most significant of the allegations came from before making the proclamation. Miss Bhutto, with the likely Begum Nuzhat Nawaz, widow of the late Chief of Army approval of the United States, flewfrom London on April 17 Staff, Gen. AsifNawaz Janjua, who died suddenly of a heart to meet with the President, giving support to the final move attack while jogging on Jan. 8, but whose death one medical against Nawaz Sharif. report says was the result of slow poisoning. Nuzhat Nawaz told reporters that her husband had been poisoned. Citing New elections scheduled Janjua's widow's charge, Ishaq Khan's charge sheet against Since then, the President has announced that fresh elec­ the government says that the allegations "indicate that the tions to reconstitute the National Assembly will be held on highest functionaries of the federal government have been July 14, within the three-month period stipulated by the subverting the authority of the Armed Forces and the machin­ Eighth Amendment, even as the Speaker of the dissolved ery of the government and the Constitution itself." National Assembly, Gohar Ayub Khan, has challenged the Ironically, it is Ishaq Khan who most profited from the dissolution in the High Court, calling it mala fide and ultra early exit of Army chief Janjua. The President replaced Jan­ vires (in bad faith and beyond the President's legal authority). jua with Gen. Abdul Waheed Kakkar, superseding a number The dissolution of the Nawaz government came a week of senior generals. With little independent base, Kakkar, it after the prime minister, prompted by complaints from Gulf is believed, will be content to remain in the President's orbit. emirates, had moved to arrest Arabs who were in the North­ If Nawaz Sharif continues to exhibit belligerence, it is west Frontier Province of Pakistan without a valid visa. Al­ likely that the President will pursue the case vigorously until legedly, Arabs who had come to Pakistan to fight with the someone close to Nawaz Sharif, or even Nawaz Sharif him­ Afghani mujahideen against the Soviet Union had not gone self, is hanged for the alleged crime. The Pakistani establish­ back to their home countries, and now represent a terrorist, ment has already hanged one prime minister, the late Zulfikar drug-infested force with ties to Iranian and Egyptian ter­ Ali Bhutto, and has the colluded power to repeat the same rorism. scenario.

ElK April 30, 1993 International 47 Left , the late military dictator Zia ul-Haq, whose Eighth Amendment to the Constitution allowed President Ghulam Ishaq Khan the power to dismiss the government. Center, Benazir Bhutlo, the fo rmer premier sacked in a similar in 1990, supported the ouster of her successor, Prime Minister Nawaz Sharif (right) .

The real issue Pakistani establishment who handpicked by Zia ul-Haq, The core problem with Nawaz Sharif's ouster is the Nawaz was tolerated because his organizing capabilities Eighth Amendment bill, passed in 1985 by Zia ul-Haq osten­ and willingness to challenge established, yet despised by sibly to concentrate executive power. The amendment, the establishment, Pakistani e's Party. which consists of 100 clauses, results in a system revolving There are indications that lshaq Khan is fully around an indirectly elected President, not answerable to any prepared to bring Pakistan fully to the establishment parliamentary forum, who is permitted to remove govern­ circles. His selection for "al l.l ,a.J\.\Ol prime minister is Balk ments and to dissolve the National Assembly and provincial Sher Mazari, a Baluch I who is based in Dera assemblies at will. Ghazi Khan in south Punjab and whose real estate spans In March, Prime Minister Nawaz had announced in the three provinces-Punjab, Frontier Province, Senate; the Upper House of the National Assembly, that the and Baluchistan. Not for his political skills and Eighth Amendment needed revision. The opposition Peo­ handpicked by Zia ul-haq the Senate, Mazar' belongs ple's Democratic Alliance, dominated by the Pakistani Peo­ to the Mazari tribe, which aims its origin in Syria and pie's Party, first agreed to support the prime minister, but the southern Caspian Sea. then backed out. Although Sharif then also backed down, it The caretaker cabinet two other members, both of was too late-he had become by that time a target of the them landlords of immense one each from the PPP President's wrath. and the ruling Ill. lshaq Khan, the senior most civil servant in Pakistan, has Besides assuring that the . Muslim League, the made many inroads into the military, and because of his major party of the lJI, is not rt:�)rt:�;t:nlt:u by anyone who is wide-ranging actual power, garnered over two decades of hostile to the Eighth the President will also close proximity to the highest echelons, he is the most power­ want to see closely fought in which no party could ful conduit for foreign powers dealing with Pakistan. He come in with a sweeping . A divided house is easier is also the country 's chief negotiator with the International to control and does not rai the threat of a parliamentary Monetary Fund and World Bank. coup leading to the null' of the Eighth Amendment, By contrast, Nawaz Sharif, an industrialist, is a johnny­ which is not likely to figure an issue in the election cam- come-lately to Pakistani politics. A complete outsider to the paign itself.

48 International EIR April 30, 1993 SouthM rica at the crossroads between vision andpragma tism

by Uwe Friesecke

The murder of the chairman of the South African Communist Operation. In 1983, he led the ANC brigade in Angola Party , Chris Hani, on April 10, and the ensuing escalation of against UNIT A. In February 1984, he was successful in violence at protest demonstrations of followers of the African breaking up the revolt of the Umkhontowe Sizwe against the National Congress (ANC) throughout the country, shows ANC leadership in Angola. He made his reputation especial­ clearly what a powderkeg South Africa is, despite the negoti­ ly among the radicalized youth of the townships, although ations of the government, the ANC, the Inkatha, and other on the other hand, his role in the management of the infamous parties. There is a danger that the maelstrom of violence will ANC prison camps in Zambia, Angola, and Tanzania was nullify all efforts for a peaceful transition to a non-racist never revealed. Also, it may be a post facto myth that Hani, constitution in South Africa. Unless far-sighted political who stems from the school of the hard-core Stalinist Slovo, leaders appear now with a vision for a new South Africa that was the key person in the integration of the township youths attacks the most important political injustices of the apartheid into the negotiation process. To be sure, over the last few system, the murder of Hani could be the beginning of a weeks Hani had spoken out clearly for a negotiated solution, nightmare which informed political observers in South Africa and had avoided repeating his previous threats to resume the have warned about since the beginning of this year--civil armed conflict-threats which had made him into the most war between black and white, as well as escalation of the prominent bogeyman figure tothe whites-but this in no way latent warfare between various groupings within the black gave him the stature to convincingly present a vision for a population. South Africa could become a further tragic exam­ new South Africa. ple on the African continent of how a country, in the wake Hani embodied the worsening dilemma confronting the of the call for democracy, first becomes ungovernable, and ANC leadership. Just as during the exile period, convinced then finallydegenerates into uncontrollable disintegration. communists now exert the dominating influence on the The supposed murderer, Janusz Walus, is a member of ANC's 25-member National Executive Committee. For ex­ the Afrikaan Resistance Movement (A WB) and the Afrikaan ample, it was ironically a paper written by the SACP's long­ National Socialist Movement (ANS), whose leader, Koos time chairman Joe Slovo, titled "Strategic Perspectives," that Vermeulen, is a leader of the world apartheid movement, at the end of last year brought the ANC's position close to which will foot the bill for Walus's legal defense. This alone that of South African President Frederik De Klerk. With its already indicates that the murderer did not act alone, but was acceptance of this paper, the AN C renounced its short -term deployed for this murder as an extremeright -wing, politically goal of becoming a majority party, and agreed to the concept motivated agent of secret service circles as a part of a compre­ of a division of power within a governmentof national unity hensive destabilization campaign against South Africa. for a transition period up to the year 2000. Of course, the The murdered Chris Hani belonged to the hard core of longer the negotiations for a dissolution of the apartheidcon­ ANC leaders who, as longtime members of the Politburo of stitution get drawn out, the more evident the danger becomes the Communist Party (SACP), did not abandon their commu­ that formal and procedural questions will prevent any prog­ nist convictions after the fall of Gorbachov and the disappear­ ress, while social tensions increase along with economic and ance of the Soviet Union. For many years, Hani was the political conflicts. protege of the white chairman of the SACP, Joe Slovo, whom On the decisive questions of ensuring a just economic he eventually replaced as chairman in 1991. Hani established future for South Africa, the confirmed communists can find his name especially as the leader of the militaristic wing of no practicable answer. For that reason, the greatest challenge , the ANC, Umkhonto we Sizwe. He was one of the few who for the ANC consists in freeing itself from the dominance of survived the firstmilitary operation of the ANC in 1967 in the communist traditions, and again taking up the ideals which north of Rhodesia (now Zimbabwe), the so-called Wankie helped bring the ANC into existence in 1912.

EIR April 30, 1993 International 49 Multiparty negotiations resumed of the economy, which through extensive deregulation and The political leaders of 26 parties, governments, and liberalization of South Africa into a cheap labor pool, will organizations resumed mUltiparty negotiations on April 1, sooner or later destroy the economy's highly qualified tech­ picking up the pieces after the failure last year of constitution­ nological potential and will wreck the development of its al negotiations in the framework of the Convention for a internal market. Democratic South Africa (Codesa). The new forum has still South Africa is running t�e risk of committing the oft­ not given itself a name, and so far has only established a repeated blunder of seeking � political solution to its prob­ structure for negotiations on four levels. Participants in the lems without at the same time seeking a clear programmatic meeting, in addition to the ANC, included the Communist perspective for its economic qevelopment. The key to mas­ Party , the ruling National Party, the Inkatha Freedom Party, tering South Africa's internal' problems lies in the strategic the Conservative Party , and the Pan-African Congress role that the country's industrial and technological potential (PAC) . This new forum for negotiations is supposed to open would play in the development of the entire African conti­ the way for general elections and the adoption of a new nent. For that, it will require a great plan, especially for constitution. According to the ideas of the ANC and the construction of infrastructure, the development of modem government-which the other parties are far from ac­ agriculture, and the industrialization of sub-Saharan Africa; cepting-a transitional executive council is to be formed and the economy of a new South Africa must be a leading at mid-year. At the end of the year, the present tricameral participant. Such an economi¢ perspective would create the parliament will pass a transitional constitution that will lead stability needed to solve the political constitutional problems. to the first non-racial elections and the creation of a constitu­ The murder of Hani bears .he signature of those who, for tional assembly in the spring of 1994. Out of these elections, geopolitical reasons, are workilngto destabilize South Africa, a coalition government of national unity will emerge, in at the same time as two other key countriesfor Africa,Kenya which all the parties who can win a certain minimum number and Nigeria, are plunging into ungovemability. If this desta­ of seats will participate. This coalition governmentis to gov­ bilization strategy succeeds, the African continent will be ern until the year 2000, and will then be dissolved after new deprived of any chances for development for many yearsto elections by a majority government. come. It is time that responsible South African leaders takea It is extremely questionable whether this method, whereby stand on these fundamental strategic dangers and challenges. the De Klerk government and the ANC with its chairman Nel­ son Mandela are seeking to establish themselves as the "princi­ pal actors" in the process of change in South Africa, will be able to handle the situation in the country. In particular, the communist leadership of the ANC can scarcely claim to auto­ 0 matically represent the majority of the 30 million blacks. Fur­ EIR Aud Report ther attempts by De Klerk and the ANC-SACP leadership to Your weeklY presetthe path to change in their own direction, cannot help but antidote . fo r New 'news' increase the tensions with the other participants. Exclusive newsWorle rep xtsr Order and intervie ws World depression strikes in South Africa Audio statements by lyndon LaRouche South Africa's economic situation is the real Achilles' heel of the process of change in the country. It is already Updates On: • The Real E onomy characterized by a dangerously high level of unemployment. • Science an j Technology , • The Fight or Constitutional Law Since 1989, some 250,000jobs have been lost. In the formal • The Right 0 Life economy, 57% of the population capable of working were • Food and griculture employed at the end of 1992, and in the informal sector, • The Arts 20%. That gives an average unemployment of more than • The living History of the American 20% . Unemployment is relatively much higher among the Republic • Essential R ports from around the black population than among the white, and is especially Globe devastating in the townships, where there is generally no $500 fo r 50 Issues prospect of meaningful employment for the radicalized An hour-long audio sent by first-class mail youth. So far, no initiative has been taken in the context of the each week. Includes cover I tter with contents. multiparty negotiations, to put the all-important economic cassett� Make checks payable to : future of South Africa onto the agenda. On the contrary, EIR News Service Finance Minister Derek Keys, who used to be manager of P.o. Box 17390. Washingto • D.C. 20041 -0390 the second largest mining company Gencor, has just commis­ j Phone: (703) 777-9451 Fax : (703) 771-9492 sioned the drafting of a plan for the "structural adjustment" i

50 International EIR April 30, 1993 security." Although Clinton administration officials imply that the mission would be a "humanitarian gesture" to assist in reconstructing the ravaged country, it is also openly ac­ know ledged that having aU. S. security team in place is both Aristide's demand and a prerequisite for reinstating Aristide back into the presidency. occupy Haiti The New York Times admits that the presence of U.S. Will U. S. soldiers would "reinforce the demand of United Nations me­ under auspices? diators here that there be no new delays in reaching a solu­ U. N. tion." The Times quotes one Haitian, "There is a long tradi­ tion here of taking the Pentagon very seriously. The mention by Val erie Rush of the American military, even if no one breathes the word 'intervene,' takes this thing to a whole other level." By threatening to send troops to Haiti to impose a Pol Pot-style Marxist dictator in the presidency there, President Target the institutions Bill Clinton is stupidly embracing one of the Bush adminis­ The real intent of any Project Democracy deployment tration's worst foreign policy disasters. Tiny Haiti is into Haiti is to dismantle the military, one of the country's already an inspiration to nationalist forces on the continent few surviving institutions which, with all its flaws, is intent trying to defend their sovereignty from the supranational on preserving national sovereignty. Under the rubric of "re­ interventions of entities like the United Nations and its training" and "professionalization," U.S. and U.N. advisers non-governmental organizations (NGOs). The deployment would import the Salvadoran model, complete with an "inde­ of American troops to the black island-nation, which has pendent" Truth Commission to investigate so-called atrocit­ not forgotten its 19-year occupation by U.S. Marines ies, assign blame, and demand purges. The New York Times earlier in this century, could touch off an explosion of reports that the U.S.-U.N. plan is that "ordinary [Haitian] unpredictable consequences. soldiers will either be eligible for retraining in the Army Before Haiti's military overthrew President Jean-Ber­ under international supervision, or induction into a civilian trand Aristide, a terrorist priest, in September 1991, frenzied police force" (emphasis added). Jacobin mobs were being deployed with presidential blessing In addition to a takedown of the Haitian military, U. S.­ to "necklace" (bum alive) Aristide's political enemies, and U.N. advisers would be involved in other "reshaping" activi­ bloody civil war was imminent. Aristide' s ouster gave Haiti ties in Haiti, such as "improving the courts and justice sys­ a chance to cool down and take a different direction. And tem, safeguarding press freedom and professionalizing the yet, instead of giving that impoverished nation economic and police." In EI Salvador, every national institution is being political backing to stand on its own two feet, the Project given over to the supranational oversight of the United Na­ Democracy forces inside the Bush administration offered full tions, which has weighted all of its so-called "reforms" in protection to the ousted Aristide and instigated a punishing favor of the FMLN insurgents. What Aristide' s "necklacing" economic embargo against the Haitian nation, enforced experts could do from behind a civilian police badge or through the Organization of American States and the United judge's bench is too chilling to contemplate. Nations. Washington and U.N. mediator Dante Caputo have pre­ sented Haiti with enough ultimatums to bludgeon a dozen No 'quick and easy' victory countries into submission to their "democracy" agenda, and In the forefront of the Project Democracy networks in yet the Haitian military rulers will not be cowed. According Washington which have been most outspoken in defending to Caputo, Haitian Gen. Raoul Cedras kept him waiting for Aristide and promoting a hard line against Haiti is the Inter­ three days before rejecting the latest U.N. ultimatum. Said American Dialogue (lAD), whose former chairman Richard the miffed Caputo, "Some very bad things were said." Feinberg is now Bill Clinton's Latin American adviser on the In the period just before the U.S. occupation of Haiti National Security Council. While Clinton fumbles around in 1915, President Woodrow Wilson's Secretary of State looking for a "quick and easy" foreign policy success to William Jennings Bryan received a briefing on the state of hang from his belt, Feinberg and other lAD "loans" to the affairs in Haiti, which had become the world's first black administration are dangling before his eyes the prospect of a republic following a heroic war with France over a century "democratic" Haiti--enforced by U.S. troops. earlier. Bryan's insightful comment? "Dear me. Think of it. The U.S. military mission would be small, to begin with. Niggers speaking French!" One wonders if Bill Clinton has The idea is to send fewer than 100, the majority of them non­ learned anything from history, or will he be conned by such combat engineers, medical personnel, lawyers, and so forth. advisers as this into picking up the "Big Stick" against Haiti Combat troops would accompany them "merely to provide once again.

EIR April 30, 1993 International 51 by Carlos Wesley PanamaReport

Peru rebuffs Panama's blackmail cused the Peruvian justices of being The U.S.-installed drug regime has now turnedits ire against prejudicedi and "not upholding the truth ," and threatened that "this ab­ political prisoners and women . surd ruling is another element to fur­ ther stagnate relations between the two countries." The next day, Linares he Supreme Court of Peru rejected Americas Watch, the Inter-American lost his cool when a TV interviewer aT request from the U.S.-installed Dialogue, and other arms of Project asked him about problems facing the drug-banking governmentof Panama, Democracy, were using the case to go country, such as the Group of Eight for the extradition of Carlos Witt­ after Fujimori for allegedly violating refusal to readmit Panama to full green , and ordered his release from Wittgreen's rights. membership. "I will only talk about prison . Wittgreen, a friend of Pana­ The sudden concern for Witt­ the Wittgreen case, nothing else," ma's Gen. Manuel Noriega, who is green's fate by the self-proclaimed said Linares, as he picked up his pa­ now a prisoner of war of the United "human rights" lobby did not fool pers and walked out of the studio. States, had been in jail since Feb . 8, anyone, least of all Wittgreen himself, The regime has launched a cam­ while the Peruvian court considered who said he would formally ask the paign of i�timidation to prevent the the Panamanians' demand to hand Fujimori government to grant him National Legislature from passing a him over. asylum in Peru. "Despite everything, law granting amnesty to the scores of In its April 7 ruling, the high court its people and its representative insti­ civilians and officers of the former said that the Panamanians had not pre­ tutions have treated me with af­ Panamanian Defense Forces officers sented any evidence to back up the fection," he said. Wittgreen said he taken prisoner by the U.S. invading charge that Wittgreen was behind the did not feel any resentment toward the forces, woo are still languishing in 1989 torching of the yacht Casimiro Peruvian government for the two Endara's jlHls, and as many as 35,000 II, belonging to Gabriel Lewis Galin­ months he spent imprisoned. "This others whd are being politicaly perse­ do , the Panamanian drug-money­ was an extradition process and things cuted, many of whom have sought ex­ laundering banker who ran Project had to run their course. The Peruvian ile or gone underground. On April 14, Democracy's "Civic Crusade" against system of justice did what it had to John Hogger, a government-em­ Noriega from Washington. The do," he said. "The problem lies with ployed me

52 International EIR April 30, 1993 by Rainer Ape! Report from Bonn

Old monetarists are no lesser evil is ostensibly trying to defineelements Smelling a crisis among the elites, fo rmer Chancellor Schmidt of a new SPD party platform, which, given Schmidt's widely accepted im­ reenters the stage, but offe rs no solutions . age as a "world economic expert," would be binding on whoever is the SPD's candidate for the 1994 elec­ , tions. he German political class is de­ the Social Democrats. The SPD suf­ It must be said that Schmidt, while ceivingT itself and is not telling the peo­ fered losses of almost 10%, and 30% appearing to be an incisive and outspo­ ple the truth. I don't just mean the gov­ of the voters didn't even go to the ken analyst of the crisis, has major ernment but all the political parties. polls-unprecedented in postwar flaws in his analysis, and is drawing ' The quality of the politicians-not Germany. the wrong conclusions. He always only in Germany, though-has de­ On a national scale, the results of omits mention of the fact that his own clined significantly over the past de­ the Hesse elections translate into a SPD-led government imposed U.S. cades. What is lacking are people that stalemate, with both government and Federal Reserve Chairman Paul are used to handling great challenges." opposition now rated at about 25-30% Volcker's policy of high interest rates That harsh verdict came in an April of the vote. This means that even if in Germany in late 1979, which played 6, 1992 interview by former German they joined for a "Grand Coalition" an instrumental role in the accumula­ Chancellor Helmut Schmidt, who par­ afterthe next elections, the two largest tion of a staggering public debt now ticularly charged Chancellor Helmut parties together probably wouldn't totalling 1.4 trillion deutschemarks­ Kohl with "holding onto an illusionary have a clear majority in the Par­ for which Schmidt unjustly blames the economic optimism." In a series of re­ liament. Kohl government. cent public statements, Schmidt has Many voters in Germany have lit­ Another legacy from Schmidt, is revived that polemic, demanding of tle confidence in the ability and com­ the Kohl government's strict refusal to Kohl that he tell the nation about the mitment of the established parties to talk about debt moratoria. When he "necessity" of austerity and sacrifice, deal with the economic depression, was chancellor, Schmidt vehemently of "blood, sweat, and tears." and see no real political alternative at opposed any cancellation of the debt, The economic crisis, plus endless this moment. Hence, more Germans whether at home or for the developing scandals involving politicians from all will stay away from the polls in sector. Further, Kohl's emphasis on parties, have created a situation grave protest. enforced fiscal and social austerity fol­ enough to raise concem aboutthe future But among the elites, there are still lows outlines largely worked out under of this state. Schmidt correctly identifi­ illusions about the best way to deal Chancellor Schmidt before 1982. es the elites' apparentinability to rise to with the crisis. As far as the Social Democrats' the occasion,but he himself has nothing Schmidt, a Social Democrat now 1994 campaign platform is concerned, to offer in the way of a solution. at odds with his own party, rightly ob­ Schmidt recommends that it be co-au­ The economic policy of Chancel­ served in an interview with the daily thored by such SPD-connected mone­ lor Kohl is so bad, that it should be an B ildzeitung on April S, 1993 that none tarists as Karl Otto Poehl, the former easy job for Schmidt's opposition So­ of the current leaders of the SPD has chairman of the German central bank, cial Democrats (SPD) to reap the fruits any expertise in either economics or who has always been a proponent of of the government's big loss of voter statecraft. Schmidt has made a come­ tight-money policies. confidence, 15 months before the next back into the public debates on policies Running with a "Schmidt-style" scheduled national parliamentary in Germany after an absence of nearly platform against Kohl, would therefore elections. 10 years. bea politicalblunder by the SPD. But it What do the voters want? With no In media interviews, speeches, is uncertain whether enough voters elections for the next 12 months, it is and at political gatherings that give would buy that hoax, for the SPD to se­ hard to say for sure. Yet the municipal him an occasion to address the present cure an election victory in 1994. It cer­ elections in the state of Hesse on crisis, Schmidt is campaigning for a tainly can't work if Schmidt stays in the March 7, which might indicate the policy of "brutal but honest truth" on backgroundand keepspushing as candi­ mood of German voters more general­ the economic situation, and for drastic dates those young SPD leaders whose ly, turned out to be a real disaster for austerity and monetary discipline. He incompetence he himself has attacked.

EIR April 30, 1993 International 53 by Javier Almario Andean Report

Talk of legalizing drugs in Colombia of the rulilng Liberal Party's March Narea- terror escalates while the government'sfa vorite conventioIJ. to urge drug legalization, while also calling for a halt to the presidential candidates push drug legalization. war on drug trafficking. "It is time for humanity to pause and reflect" on this fight, which he insisted "has been largely ineffective." These treasonous policies are not without opposition, however. At that he murderous remnants of Pablo Pablo Escobar's short-lived surrender same Libetal Party convention, Gavi­ EscobaT r's Medellin Cartel have in 1991, who was just assassinated by ria was attacked for his policy of ap­ Colombia in the grip of escalating the vigilante PEPES terror squad. Ac­ peasement toward the drug cartels, narco-terrorism, while the ruling cording to a message found by the bul­ and for hils embrace of free market elites, exemplifiedby President Cesar let-riddled bodies of Parra and his economicsl as promoted by the Inter­ Gaviria, continue to play the negotiat­ teenage son in Medellfn, the PEPES national Monetary Fund. FormerJus­ ing game with the nation's worst action was allegedly in retaliation for tice Minister Enrique Parejo Gonza­ criminals. Simultaneously, Gaviria's the Bogota bombing. PEPES also lez, one of the few surviving heroes favored candidates for next year's claimed responsibility for fire-bomb­ of the country's anti-drug war, told presidential elections are shamelessly ing several cartel ranches and a posh the convention that Gaviria had be­ urging drug legalization as the answer but abandoned discotheque said to be trayed Liberal ideals by adopting for­ to both narco-terrorism and the drug cartel property. eign-inspired economic schemes such trade . The Gaviria government issued a as privatiiation of the state sector, On April 15, a massive car bomb statement repudiating the PEPES ac­ which "are stripping Colombians of exploded in a crowded shopping mall tions, and offering a large cash reward their ownership of companies which in the commercial center of Bogota, for their capture-a studied effort to are the fruit of their labor." killing at least 12 and injuring another be even-handed with their earlier re­ Parejo i also charged Gaviria with 200. Like earlier bombings this year, ward offers for Escobar's capture. responsibility for Pablo Escobar's which have claimed 40 lives and But the government is in fact doing 1992 "esclape" from a "jail" of his wounded more than 400, the fugitive less than nothing to stop the drug ma­ own construction: "We will never tire Escobar is believed to have ordered fia. Rather, they are shamelessly of demandingjust ice in this case! This this latest act of terrorism to try to readying the country for the ultimate governme�t has contributed, like no force the government into granting surrenderof drug legalization, by pro­ other, to intensifying the process of him a general amnesty. moting two Liberal Party candidates corruption in the country." Unfortu­ The Gaviria government, while who have endorsed such a direction. nately, Parejo has exposed his own condemning the bombing, still refuses Ernesto Samper Pizano, a minis­ weak flank, in advocating "peace ne­ to rule out the possibility that Escobar ter in Gaviria's cabinet before taking gotiations" with the country's narco­ may win a negotiated "surrender" deal up the ambassador's post in Spain, terrorist gUerrilla forces. It was this with the government. In fact, it is cur­ has just returned to the country to same blindness on the part of former rently conducting sentence-reduction launch his campaign. Colombia's President Virgilio Barco which led to negotiations with Escobar's brother leading lobbyist for drug legalization a negotiared amnesty for the M-19 and other Medellin Cartel prisoners, for nearly two decades, Samper wrote narco-terrorists who, once legalized, which could lead to their release from an article for the Spanish magazine put "peac¢ talks" with the traffickers jail and their conversion into "capital­ Cambio-16 just before his departure on the country's political agenda. ist entrepreneurs" within a short peri­ from that country, in which he urged Another former minister and pres­ od of time. the legalization of all narcotic drugs. idential candidate, Carlos Lemos Ironically, it was Escobar's per­ Another Gaviria favorite is his Simmonds, attacks Gaviria, but as an sonal lawyer, Guido Parra, the self­ former Government Minister Hum­ advocate of government shrinkage, proclaimed "intellectual author" of berto de la Calle, who just resigned he cannot, be expected to break with government legislation that paved the from that post to begin his campaign. the privatization and free trade lunacy way for banning extradition and for De la Calle brazenly used the forum now dominating the nation.

54 International EIR April 30, 1993 by Silvia Palacios Report from Rio

Is Brazil on the Yugoslav path? sor Camargo had written several arti­ Continued imposition of economic austeritypolicies is fa nning cles for the national press which openly argued the line of the interna­ the flames of separatism and disintegration. tional bankers, namely, that Brazil must put aside its aspirations for renewed growth through great na­ tional development projects. Brazil, she wrote, will not in the n April 15 , Brazilian Justice Min­ only distribute the budgetary crumbs future be able to have "national devel­ isterO Mauricio Correa called a sudden a bit more equally. opment projects," but only regional press conference to release a strongly This view, however, is now visi­ ones. "As a sign of the times, smaller worded statement denouncing the ex­ ble even among the powerful business units in the best style of 'small is beau­ istence of "foreign" plans to dismem­ circles of Sao Paulo, as reflected in tiful' is what works . The northeastern ber the Brazilian nation, by exploiting the April 14 editorial of the newspaper [state of] Ceara, with its own re­ separatist movements. The result, he Gazeta Mercantil. Under the sugges­ sources, is the best example" of this. warned,could be Brazil's descent into tive title "Sao Paulo Grows Less and The possibility that Brazil could the horrors of former Yugoslavia. Pays More ," the editorial urges a new fragment into separate regions is real What they are trying to do to the and more equitable Federal Pact. enough, but the roots of this threat are Brazilian nation, said the minister, is Justice Minister Correa was an­ to be found in the free-market eco­ "shatter it, break it, provoke its split. swering this when he said, "There will nomic policies which continue to be ...Reducing Brazil to little pieces, always be work to do , since regional applied. It is only in this sense that a taking it apart, confusing it with a Yu­ ineqUalities cannot be reduced merely comparison can be made to the threat­ goslavia that never was and to whose to geographic inequalities, but also ened disintegration of Russia and to artificialnature it could never be com­ ...to income distribution, access to the disintegration of Yugoslavia, un­ pared, as if the country were a patch­ cultural goods, to health services." der the economic tutelage of Har­ work quilt, is an abuse, a ruse, a cruel Although efforts to orchestrate vard's Prof. Jeffrey Sachs. fallacy, and mocks those who died for separatist movements in Brazil's Sachs arrived in Brazil proposing a free fatherland." south go back to the past century, with adoption of the same plan he had At the same time, the Army minis­ the feverish activities of the masonic urged on Poland and Russia. The ex­ ter confirmed that the Armed Forces networks which Giuseppe Mazzini ample of Poland, he stated, "would be were on "alert" status because of the commanded in Rio Grande do Sur, the the ideal path; the cost of high unem­ growing strength of the separatist person who has introduced the debate ployment caused by withdrawal of movements that are proliferating in over a "new federalism" into Brazil's subsidies to unviable industries and southern Brazil. influentialcircles is Prof. Aspacia Ca­ through the trade opening, was suc­ These concerns are not exagger­ margo, together with the ultra-liberal cessfully overcome." ated in the slightest. Ever since Brazil grouping of the Getulio Vargas Foun­ If there is any lesson Brazil can (under the economic austerity policies dation, headed by Citibank banker learn from the crises of post-commu­ of former President Fernando Collor and former minister Mario Henrique nist easternEurope , it is that its territo­ de Mello) entered into a critical phase Simonsen. rial stability and integrity are directly of the economic depression it has suf­ In November 1991, the founda­ tied to stopping cold the radical free­ fered for nearly a decade, the demand tion held a seminar entitled "The market "shock therapy" imposed by for a new Federal Pact has circulated New Federalism," which was attend­ the former Bush administration. Such among the political and business ed not only by monetarists, but also insane privatization schemes as the classes. The argument is that financ­ by representatives of a number of ones Finance Minister Eliseu Rezende ing and political representation among sectors of the economy. The radical­ wants to carry out against even the Brazil's states is unequal, and that if ism that permeated the seminar was giant energy and telecommunications these inequalities were to vanish, eco­ so marked that even some of those companies, which have always served nomic recovery would occur as if by attending criticized the arguments as a factor of national unity, will only magic. The truth is that, even in the presented as "secessionist terror­ guarantee that the threat of separatism best of cases, such an approach would ism." The previous October, Profes- will grow.

EIR April 30, 1993 International 55 InternationalIntel ligence

The move occurred as the Khmer Rouge ...If this anniversary is to have meaning, it Serbian journal admits guerrillas cut off the city of Siem Reap, must be a meaning for the future." Edelman murder of Albanians north of the capital Phnom Penh, just hours stated ironically, that the only apparent dif­ afterthe guerrillas' political leadership left ference between what is happening to the Phnom Penh . The withdrawal from Phnom Bosnians and what was done to the Jews, The Serbian daily ledinstvo admits that the Penh amounts to a formal withdrawal from former Yugoslav State Security assassinated is that the "Yugoslavs" appear to lack the the United Nations "peace process." prominent Albanian activists who operated "chemistsand physicists" who could ensure The guerrillas blew up a major bridge that the . Bosnians are "annihilated very abroad, according to the April 8 Kosova connecting the province of Kompong Thom cheaply .nd in a very short period of time." Daily Report, published by the Kosova In­ from the capital, the second time they have Edel an's comments were highlighted formation Center. ledinstvo is published in � destroyed this bridge . Siem Reap, with the Kosova capital of Pristina. Author Mar­ in Germ�ny's Die We lt, Franlifurter Allgem­ 60 ,000 inhabitants, is very important to ko Lopushina claims to have obtained mate­ eine Zeitung, and Mainz Allgemeine Zei­ Cambodians, because it is the site of the tung, as well as in France's Le Monde on rial from official sources of the former Yu­ 12th-century Angkor temples. A U.N. ob­ April 18 .; His statements cut through the line goslav State Security, attesting to the fact server, Maj . Roustan Saliakov, said that the being peddled by the Anti-Defamation that a number of important Albanian activ­ Khmer Rouge "has enough forces in Siem League and its co-thinkers defending Serbi­ ists resident in Germany and elsewhere in Reap to hold it for at least a few hours . They an atrocities and claiming that the Holocaust Europe were systematically liquidated. have troops all the way round the city. Their only pertains to the Jews. Lopushina, who claims to be close to plan might be to enter and blow up some French Schiller Institute President Serbian military and police circles, cites buildings to demonstrate their power." Jacques Cheminade interviewed Dr. Edel­ such cases as that of Enver Hadri, who had Indonesian Foreign Minister Ali Alatas, man, whp was then still a practicing cardiol­ founded the Committee for Human Rights one of the guarantors of the Cambodia peace ogist, in Lodz on Aug. 29, 1990. In that in Kosova and who was active in lobbying accord, said that the Khmer Rouge with­ interview, which appeared in EIR' s Oct. 19, the European Parliament on Kosova's be­ drawal from Phnom Penh was a "serious 1990 issIJe, Dr. Edelman debunked the ADL half, and who was assassinated in Brussels development." U.N. workers have been or­ line that there was an upsurge of anti-Semit­ on Feb. 25 , 1990. dered out of the two most troubled provinces ism in P6land. Writes the Daily Report : "This is the of Kompong Thom and Siem Reap. Japan first time that the Serbian side admits the and Australia have both said they would liquidation of Albanian intellectuals and po­ consider withdrawing their U. N . contin­ litical activists who never preached vio­ gents from Cambodia in the event of an all­ Tu rk�y will ratify lence ....Albanians of Kosova knew all out attack by the Khmer Rouge. the time that behind the assassination stood pact with Azerbaijan the former Yugoslav Security. Serbia too finally admits this, and thus the way for the Thrkey 's Parliament will soon ratify an prosecution of the criminals is open, al­ Ve t sees Wa rsaw ghetto agreement signed with Azerbaijan last No­ though Albanians are well aware of the fact vember ¢ontaining a mutual defense clause, that no one in Serbia ever answers for the yesterday, Bosnia today Foreign ,Ministry spokesman Volkan Vural crimes against them." said on April 15. The cooperation and soli­ The sole surviving Jewish commander of darity a�cord would give Turkey a legal ba­ Warsaw Ghetto resistance fighters, Dr. Mar­ sis to h�lp Azerbaijan in its war with Ar­ Thais fe ar escalation ek Edelman, likened what is being done to menia. the Bosnians to what the Nazis did earlier to "The agreement is very comprehensive. in Cambodian war the J�ws, not only in terms of the atrocities Within its framework, all assistance to Az­ being committed, but also because of the erbaijan will continue with enhanced legiti­ Thai troops on the easternborder with Cam­ western countries' refusal to act to stop macy," Vural told a news conference. "Thr­ bodia have been reinforced, it was an­ genocide from occurring. key will, have the power and means to give nounced on April 17. "We have anticipated In a dramatic intervention at the April all suppc(lrtand help to Azerbaijan within its that there will be no peace soon in Cambodia 18 commemoration in Poland of the 50th resourct1s." and expected there might be fighting," said anniversary of the Warsaw Ghetto uprising, Ask¢d if Thrkey was already providing Gen . Visit Artkhomewongs, chief of joint Dr. Marek Edelman stated: "Sadly, the Ho­ arms or other military aid to the Baku gov­ staff forces at Thailand's Supreme Com­ locaust did not end with the Ghetto. It con­ ernment, Vural said, "I do not want to go mand Headquarters . "If there will be fight­ tinues ....In Bosnia, there is mass exter­ into details of the aid at this stage." ing, we want to see it contained inside Cam­ mination, and Europe is behaving similarly While these military ties were being bodia," Visit told a news conference. as it did earlier, vis-a-vis the Ghetto fighters. strengthened, however, Thrkish Deputy

56 International EIR April 30, 1993 Bril1ly

• ISRAELI TROOPS prevented Greek Orthodox Palestinians from entering Jerusalem on April 15 to cel­ ebrate the liturgy of the Last Supper. Two Arab priests led 30 worshippers in prayer at a checkpoint separating the West Bank from Jerusalem, after Prime Minister Erdal Inonu on April 15 re­ sia, wrote Britain's Geoffrey Lee Williams, soldiers told them only people with jected the idea that Thrkey would unilateral­ of the University of Cambridge's Center for permitscould enter. The worshippers ly intervene to protect Azerbaijan. "Why International Studies, in the London Times were dispersed by the Army. does Thrkey not do this itself?" he asked. on April 17. "Sorry, but Thrkeyhas no such duty .. ..If Williams warnsthat adoption of the pol­ • JAPAN'S new foreign minister, Thrkeydoes this alone, the world will reject icy line recently espoused by former Prime Kabun Muto, announced on April 13 it." Minister Margaret Thatcher, for action that his country will no longer link aid against Serbia, "would inevitably put the to Russia with the settlement of the United States and Russia on a collision ownership of the Kurile Islands, which course. Crudely put, does Boris Ye ltsin mat­ Kazakh leader wants were taken by the Soviet Union at the ter more to the We st than the fate of a phan­ end of World WarII . The policy shift to form CIS 'nucleus' tom state?" comes in the wake of the announce­ Williams goes on: "Greater Serbia is ment that Russian President Boris Kazakhstan's President Nursultan Nazar­ now a fact. To put the vanquished Muslims Yeltsin would visit Japan before the bayev said on April 17 that he envisaged before the wider interests of the We st would Group of Seven summit in July. seven states forming a nucleus for closer be foolish in the extreme. It is therefore a cooperation within the to-member Commu­ vital We stern interest to avoid undermining • RUSSIA is expected to launch a nity of Independent States. He named those Mr. Ye ltsin in the forthcoming referendum. proposal for a new Balkans "peace that have ratified the CIS founding statutes: . . . There is no ideological justificationfor conference," as the result of talks in Russia, Kazakhstan, Belarus, Uzbekistan, military intervention-NAID or U.N .-be­ Moscow between Russian Foreign Armenia, Kyrgyzstan, and Tajikistan. yond humanitarian help." Nazarbayev said that examples of closer Minister AndreiKozyrev and Radovan cooperation could be the removal of cus­ Karadzic, the leader of the Bosnian toms barriers by May 15, or the creation of Serbs.The plan reportedlyendorses all a single currency zone by May 20. Non-aligned want U.N. the new conquests made by the Serbs Russian President Boris Ye ltsin told the since Cyrus Vance and Lord David meeting of top CIS leaders in Minsk, Bela­ action against Serbia Owen presentedtheir "peace" plan, in­ rus, that states such as Ukraine, Moldova, cluding officially deliveringall of east­ and Thrkmenistan, which have failed to sign The non-aligned nations on the United Na­ ern Bosnia to the Serbs. the proposed CIS statutes, would be shut tions Security Council are pressing for a vote out from cooperation. "Let's call a spade a totighten sanctions against Serbia,despite ob­ ,TURKISH President Turgut spade," he said. "He who does not sign the jections from Moscow and Washington. If Ozal died suddenly on April 17, hav­ statutes will in effect remain outside the they succeed, Russia, a permanent member, ing just returned home from a diplo­ main channel of cooperation within might be forced to veto the sanctions. Russia matic tour of Turkish-speaking na­ the Community framework, with all the has not used its veto since 1984, always pre­ tions in Central Asia, during which consequences that stem from that." fening to work things out informally with the he threatened to take stronger mili­ Azerbaijan dropped out of the CIS last other "perm five" members . tary and related measures against Ar­ year, reducing the membership from 11 to In what Reuters calls "a rare show of I!lenia, in its war against Azerbaijan. 10. solidarity against the big powers ," the non­ Ozal, 65, had been suffering from Ukrainian President Leonid Kravchuk aligned states asserted that delaying the vote heart and blood pressure problems. ruled out his country's participation in a mil­ sends the wrong political signal to the world itary union. Military union is also opposed and the Serbs . • FOR THE FIRST TIME since by Belarus. The Security Council delayed a sched­ World War II, a joint Russian-U.S. uled vote on April 12 at the request of Rus­ military training exercise was held on sia, in an effort to bolster the chances of Russian soil, the week of April 19. Russian President Boris Ye ltsin in the April Cargo planes and helicopters from Briton says We st should 25 referendum. The Security Council vote the U.S. Air Force Air Mobility is now scheduled for April 26. Command and the Alaskan Air Na­ abandon Bosnia U.S. Ambassador Madeleine Albright tional Guard joined Russian Air was said to be talking to the non-aligned Force units in Arctic search-and-res­ The We st should recognize the "fact" of group on the Council-Pakistan, Dj ibouti, cue training operations in Siberia, Greater Serbia, and sacrifice the "phantom Morocco, Venezuela, and Cape Ve rde-as centered at the Russian air base at state" of Bosnia to the greater interest of well as other nations, to pressure them to Tiksi. bolstering the Boris Ye ltsin regime in Rus- change their minds.

EIR April 30, 1993 International 57 �TIillNatio nal

Masonicju dge jails �o

to save AlbertPike statuI e

by the Editors

On April 19, Judge Royce Lamberth of the U.S. District latest revelations of illegal AIJ>Lespionage activities against Court in Washington, D.C. sentenced civil rights activist black civil rights leaders on bthalf of the South African and Rev . James Bevel and historian Anton Chaitkin to seven days other governments, has so u6dermined its credibility, that in jail each for "statue climbing" at the site of the statue of Ku Scottish Rite Freemasonry is pow being forced to defend its Klux Klan founder Albert Pike, located at Judiciary Square in racist principles in its own naJjne. Washington, D.C. The jailings-ordered by a judge who himself as a youth had been induct�d into an "Albert Pike" Discovery motions qua�hed freemasonic lodge, but who refused to recuse himself on During the pre-trial mo�ons in the "statue-climbing" those grounds-occurred only three days after the National case, in which Reverend Bev�l and Anton Chaitkin acted as Conference of Black Mayors, by unanimous voice vote, their own attorneys, Judge Lamberth, despite his acknowl­ adopted a resolution calling for the removal of the statue, edged membership in the Albert Pike Lodge of the Masonic since public support "should not be given to the memory of Order of DeMolay in San Aqtonio, Texas, refused to with­ one who espoused beliefs and attitudes that are perverse to draw himself from the trial, qlaiming that since then he has the principles of our nation." left the Masons. Following �is, Judge Lamberth quashed Albert Pike was chief judicial officer and founder of the every defense motion for pre-trialdis covery, and quashed all Ku Klux Klan. His statue is maintained by the National Park subpoenas for testimony and documents that would have Service at public expense. Reverend Bevel, the former direc­ proven the improper purpose bf what clearly was a selective tor of N on-Violent Direct Action for Martin Luther King, Jr. prosecution of Chaitkin and evel. and the former vice-presidential running mate of Lyndon The defendants had subpd:naed� officials of the ADL, the H. LaRouche, has been leading the fight, nationally and Scottish Rite of Freemasonry� the Cult Awareness Network internationally, to remove the Pike statue from Judiciary (CAN), and numerous officials of the National Park Service Square in the nation's capital. Historian Anton Chaitkin, which effected the arrests, to testify. "We have the right to author of Treason in America and co-author of George Bush: know if there is a secret cliqu operating against the constitu­ The Unauthorized Biography, has documented in numerous tional rights of the people �and the citizenry," defendant articles the unbroken line of philosophical and family con­ Chaitkin argued. "If we don't know who is prosecuting this nections stretching between the instigators of the slavehold­ case, this would be farcical." ers' rebellion against Lincoln's United States, and the mod­ Representatives of thosej subpoenaed, present in the em-day advocates of gnostic satanism, drug-trafficking, courtroom, all moved to qua,h the defense's discovery mo­ euthanasia, and genocide, such as the Scottish Rite Freema­ tions. Attorney Mark Rasch �(a participant in several cases sons and its outgrowth, the Anti-Defamation League of B 'nai against political prisoner Lyndon LaRouche and his associ­ B'rith. ates) represented the ADL in $Upport of the motion to quash. Until recently, the Anti-Defamation League had tried to Also present in the courtroomlwas Charles S. Iversen, Sover­ hide behind its claim that it was a civil rights group. But the eign Grand Inspector General of the District of Columbia's ADL's blatant defense of KKK founder Albert Pike, plus the Scottish Rite Freemasons, S0uthern Jurisdiction, who like-

58 National ElK April 30, 1993 wise presented a motion to quash the defense's motion for ty in illegal actions against LaRouche, pointedly noting the discovery. role of Rasch and of ADL Washington "Fact Finding Divi­ Bevel and Chaitkin presented videotaped evidence and sion" head Mira Lansky Boland in various "Get LaRouche" witnesses substantiating that on several occasions prior to prosecutions, and in the conspiracy to kidnap LaRouche as­ their arrests, many individuals had regularly and repeatedly sociate Lewis du Pont Smith. In the context of this longstand­ stood on the base ofthe statue, as they had, during demonstra­ ing illegal activity and animus toward the political movement tions which have been held every Friday noon over the past of the defendants, Chaitkin pointed to the ADL's direct con­ few months. tact with Washington, D.C. City Council members to slander Judge Lamberth then heard testimony of two government LaRouche and to block the passage of an anti-Pike statue witnesses, the two officers of the Park Police SWAT team resolution that was pending before that body late last year. that had conducted the arrests . Their testimony clearly indi­ Lamberth later also denied a motion for dismissal on the cated that such actions represented no threat to their own or grounds of selective prosecution, arguing that although it the public's safety, nor represented a threat to the statue. was true that others had also "climbed the statue" but had Nonetheless, the judge found both Bevel and Chaitkin guilty not been prosecuted, the defendants nevertheless had been of a violation of the federal ordinance. In so doing, Judge unable to present any evidence of improper conduct or pur­ Lamberth rejected all evidence of the First Amendment char­ pose. But as both Chaitkin and Bevel noted in their closing acter of the campaign Bevel and Chaitkin have led to have this statements, that inability had been ensured by the judge's symbol of freemasonic and Confederate control in America own rulings, denying the very discovery and testimony that removed. Arguing that such an act was "civil disobedience, would have allowed them to prove such improper conduct. in having yourselves arrested to advance your political cause"-which both the defendants had strenuously argued 'Pull down Pike, and Stop the Serbs!' was not their intent, nor the real issue in the case-Lamberth One consequence of the jailings will certainlybe an ava­ sentenced the two to seven days in the District of Columbia lanche of demands for the obscene statue to be pulled down. jail. Both refused to allow the judge to exercise the option to At the National Conference of Black Mayors held in New stay execution of their sentences pending appeal. York City on April 14-18, a resolution calling on President Chaitkin, upon hearing the verdict, told the court: "It's Clinton to dismantle the statue was submitted by Mayor Wil­ amazing that a man who swore allegiance to a white racist liam M. Branch of Forkland, Alabama. In his letter to the secret society would not recuse himself from this case .... Resolutions Committee, Mayor Branch noted that similarreso­ You're going to have to face the consequences of this dis­ lutionshad beenadopted in variouscities in theU. S., including gusting decision!" New Orleans, Birmingham, Ala., Newark, and Buffalo. Since Mayor Branch could not be present at the Resolutions Commit­ ADL drubbed in court tee meeting, Portia McCaskill made the presentation on behalf During the pre-trial motions, Chaitkin took the opportu­ of the Schiller Institute, theNew Federalist newspaper, and the nity to put on the court record the dirty role of the ADL in international civil rights movement. singling him and Reverend Bevel out for persecution. ADL The text of the adopted resolution was as follows: attorney Mark Rasch opened the door to Chaitkin, by claim­ "WHEREAS a memorial statue dedicated to Albert Pike ing that the defense subpoenas to ADL leaders should be stands in Washington, D.C. on public grounds supported and quashed because they would violate the constitutional rights maintained by public funds; and of the ADL, "a political organization, a defender of human "WHEREAS Albert Pike has been identifiedin the historic rights." literatures of the day as the Founder and Chief Judiciary Chaitkin, exposed this sham by documenting the evi­ Officerof the Ku Klux Klan after the Civil War; and dence of the ADL's real purpose as a criminal enterprise of "WHEREAS such support should not be given to the mem­ spies and thugs. Noting that on the very day subpoenas in this ory of one who espoused beliefs and attitudes that are per­ case were served on the ADL in Washington, San Francisco verse to the principles of our Nation. District Attorney investigators were raiding the ADL' s of­ "Now, THEREFORE , BE IT RESOLVED that the National fices in that city and Los Angeles as part of an ongoing Conference of Black Mayors calls upon the President of the criminal investigation of ADL activity, Chaitkin exposed United States and the U.S. Congress to remove the statue of ADL spying operations on thousands of individuals and hun­ Albert Pike now standing in Washington, D.C." dreds of organizations, including LaRouche and his associ­ In addition, going beyond its usual self-imposed limits ates. He pointed out that describing the ADL as a "defender to domestic matters only, the conference unanimously adopt­ of human rights is pure hypocrisy," given their sale of infor­ ed a resolution calling upon the President and the U.S. Con­ mation on the NAACP and other black organizations in the gress to take effective action to prevent Serbia from continu­ U. S. to the South African government. ing its genocide against the populations of Croatia and Chaitkin further documented the ADL's history of activi- Bosnia-Hercegovina.

EIR April 30, 1993 National 59 shal Donald Moore, a key The LaRouche Case member of the prosecution team, disclose that the FBI maintained their illegal Cointelpro operations against the LaRouche New ADLrev elations movement at least through 1982. According to a Moore statement secretly added to freedom bid recorded on July 7, 1992, On April 19, political prisoner Lyndon H. LaRouche, Jr. "The FBI truly had f**ked fileda motion before the Fourth U. S. Circuit Court of Ap­ with the LaRouche organi­ peals (Virginia) in his bid for freedom, first filed in January zation in, oh, what they 1992, accompanied by six volumes of new evidence proving called the Cointelpro pro­ his innocence. gram" through the early The latest filingin Richmond, Virginia asks that the court 1980s. He adds that when take "j udicial notice" of sensational new material which fur­ prosecutor John Markham "U,'_""U ther proves LaRouche's complete innocence. The new mate­ that they had done "one rial , all of which government prosecutors John Markham, guys." Kent Robinson, and Mark Rasch suppressed from 3) In other taped of Moore, Oliver North's LaRouche's defense team despite repeated discovery re­ Vietnam tentmate, he that while he was a part quests in these very same target areas, covers the following of the investigation team he involved in orchestrating material: the anti-LaRouche media which followed the 1) U.S. government agent Don Moore admits on a se­ March 18, 1986 Illinois victory of two LaRouche cretly taped conversation that the Anti-Defamation League Democrats. The negative coverage had a severely ad- of B'nai B'rith (ADL), now caught in a national spy scandal verse financial effect on the 's ability to repay the for its infiltration of police departments on behalf of Israel very loans later at issue in 's Alexandria trial. and South Africa, was an integral part ofthe LaRouche prose­ 4) In another taped Moore was caught ad- cution team. Moore's own vulgar tongue admits on an Aug. mitting that he illegally the Social Security number 19, 1992 tape: "I've never used the FBI, I use the f* *kin' of LaRouche for use in a tax investigation. Moore ADL." himself bluntly comments this was "illegal as s**t." In another taped conversation, Moore states that he used 5) Galen Kelly, the kidnapper and deprogrammer who Mira Lansky Boland of the ADL Fact-Finding Division as a worked with Don Moore sinc� the beginning of the LaRouche cut-out or factotum allowing him to maintain "deniability." investigation, disclosed in a ept. 30, 1992 taped conversa­ Moore describes how he deliberately kept himself ignorant tion that "deprogramming" oreates "defectors" who would of the whereabouts of Larry Lucey, the Internal Revenue "immediately come over to tHe law enforcement community Service case agent, and Bryan Chitwood, the former Lou­ and tell all and cooperate," and would force the targeted doun Times-Mirror reporter who slandered LaRouche at organization "to spend a disp ,I oportionate amount of its time, whim from 1985 to '88, so that he could deny knowledge of personnel, and resources thwarting" the deprogrammers. where they were. However, brags Moore, if he "needed to The Fourth Circuit Cou I of Appeals has not yet sched­ get anything to Bryan or to Larry , [he'd] always just call uled a date for oral argument between LaRouche's attorneys either Mira Boland or Doug Graham, who's the photog­ and the government on his bid for freedom based upon this rapher." growing library of exculPatof evidence. The new LaRouche filing stresses that these admissions Nor has the Appeals Corrt acted on the extraordinary by Moore take on new significance in the context of the Feb. 11, 1993 formal requesV by former U.S. AttorneyGen­ breaking ADL spy investigation coming to light in Califor­ eral Ramsey Clark and Odin P. Anderson, lawyers for nia. Members of LaRouche's political association have been LaRouche, to appoint a "Spdcial Master" to investigate and notified that they are included in newly seized documents redress ongoing gross goverhment misconduct in the case, from the ADL's San Francisco office. Various California based on the precedent of the appointment of a "Special newspaper articles on the spy scandal are submitted to the Master" for fraud on the co in the John Demjanjuk case. court, including an April 9, 1993 Los Angeles Times report The Special Master is requi� ed because of "multiple viola­ which names Lyndon LaRouche as one of the targets of the tions of the Constitution and laws," and uncorrected "gross spying. governmental misconduct"Tuncorrected "because the bi­ 2) Other tape recorded statements by u.S. Deputy Mar- ased treatment of the trial ju ge has allowed it."

60 National EIR April 30, 1993 by Kathy Wolfe Music Views andReviews

June Anderson, come York City Opera chairman Beverly there's no one left alive who can sing Sills one night in 1983 or '84 and told Schubert's hour-length song cycles, home to 'bel canto' her she was letting the voice of the or the major cycles and wonderful As much as I thank the Washington century slip away. songs of Schumann, Beethoven, and Performing Arts Society for bringing We think it was outrageous that Brahms. You could do it! my favorite soprano June Anderson to you were forced to spend the next 10 The point is, there's a reason bel the Kennedy Center on March 24, her years in Europe flying from city to canto is beautiful, and it's not just be­ choice of programs hit me almost as a city, braving jet lag, insane schedules, cause it's in Italian, or makes pretty betrayal. Someone has to stand up and and every cockamamie director who noise. Those "German" composers say it now: Miss Anderson, please came along with some new-fangled mentioned above were bel canto com­ stay with the bel canto repertoire. production to make you trip while posers, too. The famous "long line" Starting with a few Bellini and singing impossibly difficult coloratu­ of the bel canto voice carries the intel­ Rossini pieces doesn't help, when ra . If the music world were sane, lectual content, ideals, and convic­ 85% of your program is music with no you'd have walked across the plaza tions of mankind's greatest civiliza­ moral content or purpose whatsoever. from the New York City Operato the tions. Whether it's Mozart or Rossini, Why waste that incredible voice (and Met without 10 years hard labor in the Schubertor Donizetti, Brahms or Ver­ musicality) on the vocal erotica of galleys. di: The only reason they were able to Franz Liszt, Henri Duparc, and Leo­ But just because the music world produce such beautiful sounds, is that nard Bernstein? Sure, their extreme is insane, doesn't mean you have to the inspiration came from their minds, difficulty gave you a chance to show give in, especially now, when you from their love and hopes for humani­ your pianissimo and other technical may be one of the last real bel canto ty which, as St. Paul says in I Corin­ skills. And sure, you concluded with singers left on the face of this poor, thians 13, is the only source of all real the best performance of Rossini's tired, aching Earth. Okay, so the Met artistic creativity. "Bel Raggio" perhaps yet sung. itself, which should have helped you Remember the performance of But that didn't make up for the 10 years ago, added insult to injury Beethoven's Ninth you did in Berlin torture of hearing those beautiful at your debut this year by strewing a in 1989, when the Wall came down? tones lavished on such lousy music for dozen coffins across their Lucia set, In your heartyou know that that's the the preceding hour. You could proba­ the better to trip and strangle you with, necessary state of mind for real bly make Brunhilde sound almost like my dear. Anyone would be angry after singing. music-but why bother? all you've been through, but please try These men wrote music in short not to let it get to you. from "above the belt," which is why it sits so well in the head when you A rough decade sing, as opposed to the cretins of the Lizst-Wagner school, who wrote from l owe you a lot, June. Back in 1981, 'Bel canto' and beauty below the belt, so as not to leave a dry it was you who turned my husband, a seat in the house. That's why it led confirmed ice hockey fan, into a true No one is saying that you have to stick ultimately to the "can belto" school of opera lover, with your wonderful Lu­ to the same 10 Italian operas year in shouting. cia di Lammermoor at the New York and year out. Want new material? Please sit down and have a good, City Opera. Those Lucias are still There are two dozen operas by Schu­ long talk with Gaetano (Donizetti) and burned into our memories as the best bert and Schumann, not to mention your other 19th-century friends, and ones we've ever heard, and we've another two dozen by Haydn and Han­ try to work this out, won't you? Forget heard a few. We were so angry when del, which no one ever gets to hear. what most morons alive today have to the New York City Opera wouldn't Champion those! Art songs? Certain­ say, and listen to what the best com­ give you the roles you deserved that ly! But don't waste your time with posers have told you, and you'll know my husband even marched up to New French fluff and modem junk, when that this is right.

EIR April 30, 1993 National 61 National News

Lobby's Willis Carto, the Nation of isiam's know the worst-case projected effect, move Louis Farrakhan-"among a host of skin­ 200 miles south, Rensberger said. heads, pinkos and nuts-are dancing be­ Although his long article implies that Italy 'mafia' sweep may cause San Francisco cops are on a vicious ozone haaxsters like Albert Gore don't hunt to embarrass the Anti-Defamation know what they are talking about, it did not net Michael Ledeen League for doing what the ADL has always deal withl the deliberate lies and millions Reports in mid-April have been circulating done and must do to serve mankind-after of dollars; poured into the environmentalist among intelligence sources in Europe that Hitler," Brin sputtered. groups to k:reate this hoax, nor the lives that the Italian government has a "sealed secret He attacked the "bastard decision" by will be lost needlessly as a result of the Mon­ indictment" against former U . S. officialMi­ the Los Angeles Times to play into the game treal Prot�col ban on CFCs. chael Ledeen, because of his ostensible of "the malicious hunt into the fact-finding involvement in a complex of mafia-secret efforts of the ADL." A Times correspondent service-political activities. During the Iran was also one of the targets of ADL spying. weapons-for-hostages operations, Ledeen But, Brin says, "surely the humanity-serv­ acted as a "facilitator" for the U.S. National ing Jewish agency infiltrates hostile organi­ Psychiiatrists condemn Security Council, because of his intelli­ zations to learnthe facts." gence contacts to Israel and Iran. Brin revealed that he joined the Nazis in Serbian's Karadzic According to sources, the investigating 1939, to provide information to the ADL­ The 38,0()0-member American Psychiatric magistrate in the case against former pre­ although he did not say if he ever quit the Associati(m formally condemned fellow mier Giulio Andreotti recently visited the Nazis. "Hardly a week passes that I don't psychiatrist Radovan Karadzic on April 15 U.S., and received important information supply Jewish defense material to David for what Uley said was his betrayal of the from mafiaturncoat Tommaso Buscetta and Lehrer, head of ADL in the region." humane purpose of psychiatry . Karadzic, others, implicating Ledeen in illegal activi­ More interesting, Brin also let slip the the leader of the so-called Bosnian Serbs, ties. The Italian authorities, sources said, fo llowing: "U. S. and Texas authorities have "is accoqntable for the policy of ethnic are "testing the waters with the U . S. ," to see precise documentation (from ADL, of cleansing, organized rape, mass murder, whether they make the indictment public . course) on the Branch Davidian cult in and the ' establishment of concentration One source said, "Ledeen was in the middle Waco and how it operated in the past. " camps," the board of trustees of the APA of a lot of things, there's a lot of dirt on him, said in a statement. "His actions as a politi­ and other people could be dragged in. " cal leader constitute a profound betrayal of Senior CIA official and Iran-Contra the deeply humane values of medicine and figureDuane "Dewey" Claridge is reported­ psychiatry. In condemning him, we affirm ly also on a potential indictment list. There Post discovers ozone those values and join all persons of good are also some rumors that Alexander Haig will in defending the right to life and to could findhimself in trouble, and that these hole can 'cure itself' freedom from oppression of all human be­ tracks could lead to Henry Kissinger. In a remarkable front-pageart icle, the April ings anY'fhere." 15 Washington Post breaks with its years of lying ozone hole coverage to announce that "After 2000, Outlook for the Ozone Layer Looks Good." The lengthy article docu­ ADL's Herb Brin frantic ments that there is no real disaster and that Science adviser admits the ozone layer will fix itself naturally. Au­ over spying expose thor Boyce Rensberger wrote: "In fact, re­ R&D . being savaged "Lyndon LaRouche, from his federal prison searchers say, the problem appears to be Speaking; at an American Association for cell, must be gloating," begins a column in heading toward solution before they can find the Advahcement of Science colloquium on the April 15 Houston Jewish Herald Voice any solid evidence that serious harm was or April 15, John Gibbons, director of the Pres­ written by Anti-Defamation League agent is being done ." Rensberger quotes some of ident's Office of Science and Technology Herb Brin. Brin just recently returned from the ozone-depletion theorists like Richard Policy, addressed the issue of the federal Serbia, from where he was writing glowing Stolarski of NASA's Goddard Space Flight science budget. propaganda in the Herald on behalf of Serbi­ Center plus Michael Oppenheimer of the Whilf stating that the administration is an butcher Slobodan Milosevic. Brin's ven­ Environmental Defense Fund to back up his putting � emphasis on research and devel­ om comes after revelationsby the San Fran­ point. opment �s a means to reduce the deficitand cisco District Attorney showing that the Ozone is a "renewable resource"; ozone views technology as an engine for growth, ADL spied on tens of thousands of Ameri­ levels vary from pole to pole; ultraviolet he went bn to describe the fiscal year 1994 cans, and gave information on them to the radiation reaching Earth has not increased; budget ptocess for federal R&D as "triage," Israeli and South African governments. increases in skin cancer started long before with someprograms being stretched out. He Brin continued that LaRouche, Liberty CFCs came into use; and if you want to said that the budget for applied science was

62 National EIR April 30, 1993 Brildly

• THE PRESBYTERIAN Church (U . S.A.) has declared "that as Chris­ tians we must seek redemption of increased 3%, while the budget for basic Jews in the diaspora. That is the tragic reali­ evildoers and not their death, and that science would have no net gain, and that the ty of the Jewish people," he wrote . The Is­ the use of the death penalty tends to National Science Foundation would get a raeli-born historian argued that "The fixa­ brutalize the society that condones $300 million boost. tion on the Holocaust is a sign of the it," according to the April 18 Rich­ religious de-Judaization of Judaism by the mond Times Dispatch in Virginia. Jews .. .. "This is a tragedy . In this way, Jewish • THETHORNBURGH Doctrine, identity is not established by positive self­ which allows the U .S. to kidnap indict­ determination and contemplation but ed non-U. S. citizens fromfo reignsoil , through negative outside influences like Miners appeal huge is under review at the Department of anti-Semitism. " Justice under orders from Attorney fine to Supreme Court The U.S. Holocaust Memorial Museum General Janet Reno. The doctrine was opens in Washington , D.C. on April 26. The United Mine Workers Union asked the drawn up by Bush's Attorney General The building, chartered by Congress 13 U. S. Supreme Court to overturn $52 million Richard Thornburgh in order to justify years ago, was built with $168 million in in civil contempt fines imposedon the union the invasion of Panama to bring Gen. private funds on federal land. When the mu­ during a Virginia strike against Pittston Coal Manuel Noriega into the United States seum was first proposed, numerous ethnic Company in 1989 early this month. The in 1988. U. S. SupremeCourt will decide in the sum­ groups complained that other massacres should be included, but it was decreed that mer whether to accept the case. • MIAMI UNIVERSITY of the tenn "Holocaust" could only apply to The UMW petition argues that the Ohio's student newspaper will drop the killing of Jews in World War II. Subse­ U.S. 's highest court should review the fines the use of the name "Redskins" when quently, the museum's organizers did in­ because they are excessive, constitutionally referringto the school's sports teams, clude a few scenes of the killing of non­ invalid, and criminal, rather than civil in according to the Cincinnati Enquirer Jewish populations by Nazis. nature. The UMW therefore should have on April 9. "The tennis inappropriate been afforded all the protections of a crimi­ in the same way vulgarity is inappro­ nal defendant, the union argues. priate," student papereditor Jennifer The Virginia Supreme Court upheld the Cox said. constitutionality of the fines claiming it was enforcing "respect for the judiciary ." The • LOUIS FARRAKHAN, spiritu­ company and the union had agreed to drop ' Innocent Virginian al leader of the Nation of Islam, per­ the fines, as part of the settlement of a strike remains imprisoned fonned the Violin Concerto of Felix in which thousands were arrested for civil Mendelssohn in Winston-Salem, disobedience, but Virginia courts reim­ Walter T. Snyder, Jr. , a Virginia inmate North Carolina on April 17, at an posed the huge fines and directed they be wrongly convicted of rape , who was shown event titled "Gateways: Classical paid to the state and two counties. to be innocent through DNA evidence two Music and the Black Musician." months ago, is still in jail, as of April 17. Minister Farrakhan was trained in vi­ The only way Snyder can be released is by olin as a child by Leopold Auer. The executive clemency, because Virginia pro­ perfonnance contradicted labels of hibits the introduction of new evidence 21 Farrakhan as an anti-Semite, as Men­ days after sentencing. Gov. Doug Wilder delssohn was borninto a famous Jew­ Historian criticizes has studied this case of a man already proven ish family. innocent for seven weeks, but has not yet Holocaust museums decided to release him. Wilder's aide said, • OLIVER NORTH'S company A leading Gennan-Jewish historian criti­ "It's not something you move swiftly Guardian Technologies International cized Washington's new Holocaust Muse­ through." is being audited by Virginia tax offi­ um and other such memorials as "an ampu­ Snyder's lawyer, Peter Neufeld, said, cials, for allegedly failing to collect tation of Judaism," in the April 15 issue of "In many states Walter Snyder could have state sales tax. Sources familiar with the Gennan daily Franlifurter Allgemeine walked out of prison the next day if we had the audit say that Guardian, which Zeitung . Michael Wolffsohn, history pro­ these results. Why should someone have to makes and markets bullet-proof fessor at the Gennan Anned Forces Univer­ seek mercy from the governor when they're vests, has been sending out invoices sity in Munich, said Holocaust museums truly innocent?" Virginia's evidence rule since the audit began to collect sales were a "deeply un-Jewish" means to keep arises, says Neufield, from "the cynical be­ taxes that had not been billed. One alive Jewish identity among a diaspora turn­ lief that the social well-being requires final invoice went to the Virginia Fraternal ing away from its religion. "Without the judgments-no more appeals-even if it Order of Police, which had pur­ Holocaust, there is no Jewish identity-at means innocent people can continue to rot chased 200vests . least no Jewish identity for non-religious in jail or even go to the electric chair."

EIR April 30, 1993 National 63 Editorial

The U.S. must go nuclear

Despite some signs that the new U. S. administration is ment of a new nuclear reactor based on the modular not, in fact, as green as might have been feared, the high-temperature gas-cooled'reactor. As announced on budget proposals include the extremely stupid decision April 6 by the Russian Fedemtion Ministry for Atomic to cut out all research on advanced nuclear reactors . Energy and General Atomics of San Diego, the new This is to foreclose the possibility of any real economic power-generating system, known as the Direct Cycle recovery , because any uptick in industrial production Gas Turbine Modular Helium Reactor, or GT-MHR, will quickly reveal the precarious status of the U. S. combines an advanced, helium-cooled nuclear reactor energy grid. It also rules out a promising immediate with a gas turbine power pllint. This direct cycle gas area for clean and safe energy . turbine improves the 33% efficiency of conventional In place of nuclear energy , the Department of Ener­ steam-turbine generation to $0% efficiency. gy plans to go with natural gas and energy-efficiency , A memorandum of understanding signed in Russia which they say is the "public will." In other words, the on April 1 calls for setting up a joint venture company DOE is giving complete credibility to the loud-mouthed to design and construct a GT-MHR in Russia. The 50- environmentalist lobby. According to one DOE 50 partnership, according to a General Atomics an­ spokesman, the administration plans to use existing nouncement, will have "res�onsibility for completion nuclear plants, but will not move to build any new of the GT-MHR developme""tand testing, followed by ones, nor develop next-generation designs. This kind of fabrication, construction, and demonstration testing of thinking is turning what was once the world's leading the first module . A goal of the joint venture will be economy into a technological backwater. worldwide commercial sales of subsequent systems." Among the nuclear technologies to be axed is the The helium-cooled reactor offers "a very attractive op­ Integral Fast Reactor, a project at Argonne National portunity to destroy weapons-grade plutonium made Laboratory that is demonstrating how to eliminate nu­ available by disarmament agreements , while simulta­ clear waste by burning it as fuel. The IFR, which just neously producing electricity. " began to bum high-level waste (actinides) in a three­ The Russians and General Atomics expect agree­ year test, will have to shut down unless its funding is ments to be negotiated by the governments involved restored by Congress. The Japanese had pledged $46 that would include a $20 million a year contribution million to the research project, but this is not enough from the United States over five years for the develop­ to keep it going. Also cut from the budget is the devel­ ment of a prototype . The Russian Federation Ministry opment of a modular high-temperature gas-cooled re­ for Atomic Energy will furnish the experimental facili­ actor, the space nuclear program, and other advanced ties and related test hardware. The Russian helium­ reactor designs. cooled reactor program had already developed ad­ The DOE restructuring was announced in a six­ vanced test facilities for many of the components neces­ page press release that is fu ll of mumbo-jumbo green­ sary . Another major plus of the new system is that speak. "We have an opportunity unsurpassed in Ameri­ it can operate with either uranium or weapons-grade can history to re-direct our nation's priorities and re­ plutonium as its fuel. sources away from the policies of the past and toward This is obviously a very positive development, but building a vibrant economy capable of improving the why , we ask, should it not be extended to include all living standards of the American people," Energy Sec­ of the U.S. nuclear projects Clinton proposes to axe? retary Hazel O'Leary stated. EIR supports the effort by the magazine 21 st Century Ironically, almost simultaneously-as part of the Science & Technology. Its Spring 1 993 issue contains Clinton-Yeltsin summit-a joint Russian-American a postcard to President Clinton, urging him to reverse project was announced whose goal was the develop- his decision to cut advanced nuclear R&D.

64 National EIR April 30, 1993 S E · E LAROUCHE ON CAB L E TV

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First time ever in print The full, unexpurgated story of the Du Pont kidnap case

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• How the kidnappers-members of the criminal Cult Awareness Network­ plotted to seduce, kidnap, drug, and, if necessary, kill du Pont heir Lewis du Pont Smith, to stop his association with political leader Lyndon LaRouche; then went scot-free in the same judicial system that condemned LaRouche to life in prison .

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