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Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman From the Editor Managing Editors: Vin Berg and Susan Welsh Editoral Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Uwe Parpart­ Henke, Gerald Rose, Alan Salisbury, Edward Spannaus, Nancy Spannaus, Webster Tarpley, William Wertz, Carol White, Christopher White Science and Technology: Carol White Special Services: Richard Freeman his is not an editorial, and it is not my custom to use this space to Book Editor: Janine Benton T Advertising Director: Marsha Freeman urge actions upon readers. Nonetheless, most of you want to know Circulation Manager: Joseph Jennings what you can do about the monstrous injustice which was carried out INTELLIGENCE DIRECTORS: by Judge Albert Bryan in the federal court of Alexandria, Virginia Africa: Mary Lalevee Agriculture: Marcia Merry on Jan. 27, in sentencing Lyndon LaRouche to 15 years in federal Asia: Linda de Hoyos prison. Counterintelligence: Jeffrey Steinberg, Paul Goldstein I propose that you flood President George Bush with telegrams Economics: Christopher White urging him to act to reverse this infamy by issuing a full pardon for European Economics: William Engdahl, Laurent Murawiec LaRouche and his six associates, who were each sentenced to terms Ibero-America: Robyn Quijano, Dennis Small between three and five years in length on that same day. Wherever Law: Edward Spannaus Medicine: John Grauerholz, M.D. you are, call the press and media, and brief them on the threat to Middle East: Thierry Lalevee Soviet Union and Eastern Europe: LaRouche's life. "Talk shows" should be targeted, newspaper ads Rachel Douglas, Konstantin George taken out, etc. In the coming weeks, EIR will report on this mobili­ Special Projects: Mark Burdman United States: Kathleen Klenetsky zation globally.

INTERNATIONAL BUREAUS: The sentence was imposed after a show-trial in the style of Hitler Bangkok: Pakdee and Sophie Tanapura and Stalin, and one day after the prosecutors of the Boston case Bogota: Javier Almario Bonn: George Gregory, Rainer Apel against LaRouche announced that they did not intend to pursue that Copenhagen: Poul Rasmussen case to trial. A rabbi who sat in the Alexandria court and watched Houston: Harley Schlanger Lima: Sara Maduefw the judge's sentencing remarked that the judge gave the same uni­ Mexico City: Hugo LOpez Ochoa, Josejina form sentencing to all seven defendants, without regard to what each Menendez Milan: Marco Fanini said or the particular circumstances of each, a clear indication that New Delhi: Susan Maitra everything had been decided in advance. The dropping of the Boston Paris: Christine Bierre Rio de Janeiro: Silvia Palacios case-where LaRouche would surely have been acquitted-shows Rome: Leonardo Servadio, Stefania Sacchi that the government did not care about justice, but only about elim­ Stockholm: Michael Ericson Washington, D.C.: Nicholas F. Benton, William inating LaRouche and the movement associated with him. Jones The sentence of 15 years for a 66-year-old man is equivalent to a Wiesbaden: Philip Golub, G6ran Haglund life sentence. It is far more severe than sentences given to top level EIRIExecutive Intelligence Review (lSSN 0273-6314) is published weekly (50 issues) except for the second week drug-pushers and violent criminals. "Do you support this Nazi-KGB ofJuly and last week of December by New Solidarity International Press Service P.O. Box 65178, Washington, justice, President Bush?" DC 20035 (202) 457-8840 If LaRouche's enemies think they will destroy his ideas, they are EIII"OfHI"" H.adquarUrs: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, in a for a rude shock. This week's issue, as you see, is expanded to Dotzbeimerstrasse 166, 0-6200 Wiesbaden, Federal Republic of Germany 80 pages in order to contain LaRouche's important article on eco­ Tel: (06121) 8840. Executive Directors: Anno Hellenbroich, Michael Liebig nomic and monetary policy (see Strategic Studies), as well as an III Delllllllrlc: EIR, Rosenvaengets Alle 20, 2100 Copenhagen OE, Tel. (01) 42-15-00 overview of the Rome Martin Luther King Tribunal which defended III Muieo: EIR, Francisco Diaz Covanubias 54 A-3 LaRouche, and declared war on Satanism and Gorbachov. Colonia San Rafael, Mexico OF. Tel: 705-1295. JIIpIIII subscriptioll stiles:O.T.O. Research Corporation, For LaRouche's statement in Alexandria, see page 66. Takeucbi Bldg., 1-34-12 Takatanobaba, Sbinjuku-Ku, Tokyo 160. Tel: (03) 208-7821. Copyright Cl 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Wasbington D.C., and at an additional mailing offices. 3 months-$I25, 6 months-$225, I year-$396, Single issue-SIO Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. •

ITmConteDts

InteIViews Departments Economics

11 Dean Kleckner 58 Report from Rome 4 AIDS spread and poverty The president of the American LaRouches welcomed in Rome. linked in new studies Farm Bureau Federation backs the The scientific journals are food cartel's free trade policy. 59 Report from Bonn confirming what EIR has long The "Lip" is back. maintained: the link among 55 Dr. Jorge Quadro malnutrition, tuberculosis, and Dr. Quadro is president of the 60 From New Delhi AIDS. Argentine Catholic League for a Congress (I) loses big in Tamil Latin American Campaign for Aid 6 Governors decree austerity Nadu. to the Drug Dependent. drive 61 Dateline Mexico 7 Haggling over the price of Mexican gestapo tactics escalate. Soviet Jews StrategicStudies 62 Andean Report 8 Save the U.S. savings and IMF demands Peru sacrifice. 22 Why Tokyo can not bail loans: Edwin Gray out Bush proposal should be 63 Report from Rio Japan has intervened massively to adopted A 'Theolib' revolution for Brazil? delay a new U.S. financial crisis, The former FSLIC chief charges but it can't go on forever. By that Donald Regan deliberately Lyndon H. LaRouche. 80 Editorial bankrupted the S&Ls. An analysis No compromise with evil. and recommendations by Lyndon H. LaRouche, Jr.

13 Agriculture AIDSUpdate Why the Chicago Mercantile probe? 4 AIDS spread and poverty linked in new studies 14 Food production in Pakistan: an area of 78 AIDS transmission routes growing concern increase Water management projects, high­ quality seeds, and fertilizer are the keys to making Pakistan food self­ Correction: On page 32 of EIR of sufficient once again. Jan. 27, in an interview with Harrison Budhoo, he referred to a 17 Currency Rates phone call to the International Monetary Fund from 18 Commodities "Newsmakers," which is a public Behind the strange world boom. relations firm, not, as was interpolated in the text, a 19 Medicine "program." In fact all the major media ignored Mr. Budhoo's Hopeful news on blood supply. stunning disclosures. We regret this editing error. 20 Business Briefs Volume 16 Number 6, February 3, 1989

Feature International National

44 The Establishment urges 66 LaRouche sentenced: alliance with Dope, Inc. 'I become a martyr' The Inter-American Dialogue used A statement released by Lyndon to promote surrender to the LaRouche after his jailing on Jan. narcotics cartel. Now , they want a 27. partnership. Documentation: Government drops Boston case against 45 Behind the magic of 'debt LaRouche and others .

The founding conference of the International Martin reduction' Luther King Tribunal on Crimes Against Humanity, The bottom line of the Dialogue's 69 Courtroom Notebook in Rome, Italy, Jan. 19-20. policy is that democracy, let alone Virginia judge keeps biased jurors nationalism, is intolerable to the on panel. 30 Rome Tribunal names the banks. criminals against humanity 70 Using 'False Claims Act,' The International Martin Luther 47 Queen knights chairman Carter crowd targets U.S. King Tribunal on Crimes Against of pro-drug 'Economist' defense for ruin Humanity vows to destroy the Evelyn de Rothschild's magazine forces of Gorbachov and Satanism, A cabal of private law firms, is endorsing the legalization of and names the culprits in the foundations, and "public interest" drugs. It also seeks the revival of persecution of Lyndon LaRouche . organizations that led the nation the Dark Ages, and the "graceful" into the disaster known as "the extinction of the human race. 32 A call for a worldwide Carter Malaise," is moving into Literally. positions of great power within the campaign to kill Satan Bush administration. Helga Zepp-LaRouche's keynote 49 Will Bush grasp the speech to the Tribunal . opportunity for a new era 72 Brent Scowcroft: architect in U.S.-Japan relations? of George Bush's 'Detente 38 LaRouche: Rally to save II'? the dome of Florence! 51 Malaysia poll echoes Continuing a series of EIR profiles Brunelleschi's dome is the object independence struggle of the Bush cabinet. most hated in all the world by Moscow. Saving it from 52 Benazir Bhutto visit destruction is one of the most 74 James Forrestal and racial removes Saudi doubts important moral and scientific integration tasks before the world today. From A long-suppressed page from a speech by Lyndon LaRouche. 54 Narco-terrorism rears postwar history. head in Argentina 40 Expose the Nuremberg 76 Congressional Closeup criminals, demand justice 55 Fighting drugs and for LaRouche! satanism in Argentina: the 78 National News Expert testimony presented at the PROLATIN story Tribunal from U.S. civil rights The founder of this grass roots leaders; attorneys; retired generals; organization says he was inspired freedom fighters against Soviet by Lyndon LaRouche's ideas. oppression in Asia, Eastern Europe, and Africa; leaders of 64 International Intelligence anti-Satanist organizations; Catholic intellectuals; scientists, and musicians. TIillEconomics •

AIDS spread and poverty linked in new studies

by Wa rren J. Hamerman

Two recently published studies confirm our repeated pub­ 1984. The reemergence ofTB as a rapidly expanding disease lished assertion since early 1985 in Executive Intelligence coincides exactly with the rapid spread of AIDS . Since mdi­ Review that there is a direct causal relationship between the viduals who have latent TB infections develop the full disease out-of-control spread of AIDS in the acutely impoverished condition when their immune system collapses and/or they populations of Africa, America's poverty hell-holes from lack adequate nutrition and other fe atures of an adequate Belle Glade, Florida, to the urban ghettoes and the economic standard of living, tuberculosis is considered the best "mark­ collapse conditions imposed there. er disease" for acute poverty conditions. EIR has specifically contendedthat the inter-relationship Readers of EIR will remember that in 1985, Dr. Mark between AIDS and the poverty caused by the International Whiteside and Dr. Carolyn MacLeod had documented in Monetary Fund (lMF), among other global malthusian finan­ these pages this relationship for the case of Belle Glade, cial institutions, is best indicated by the linkage between Florida, and that Dr. John Seale suggested that AIDS might AIDS , malnutrition, and tuberculosis (TB). indeed be capable of being transmitted by respiratory aerosol The two new studies were published in the January-Feb­ like TB under crowded conditions. In the new report pub­ ruary issue of Nutrition and the Jan. 20 issue of the lournal lished in the lAMA, a study of the nearly 41,000 inmates in of the American MedicaL Association (lAMA). One of the the New York State prison system now four years later, studies demonstrates a direct relationship between malnutri­ demonstrates an unmistakeable correlation between AIDS tion and AIDS , while the other proves that tuberculosis and and TB. AIDS are co-infections, precisely as physical economist Lyn­ According to the results of the study, the number of don LaRouche and his EIR Biological Holocaust Task Force inmates with both TB and AIDS increased from 7% of the have long argued. new inmate TB cases in 1982, to 26% of the new inmate TB Lyndon LaRouche and EIR's contention of the causal cases in 1986. Furthermore, the number of inmates who link between poverty and AIDS spread was violently object­ tested positive for the HIV virus, even though they had not ed to and ridiculed for four years by the entire health estab­ yet been classifiedas having AIDS, quadrupled from 1985 to lishment from the Centers for Disease Control (CDC), the 1986. In all, 53% of new 1985 TB cases and 56% of all new World Health Organization (WHO), the Reagan administra­ 1986 TB cases in the prison system occurred in inmates who tion as well as the general media. had positive evidence of HIV infection ! The researchers re­ port in the following words that they are not aware of a single Poverty marker instance of a prisoner with TB who was proven not to already In 1986, the trend of declining TB cases in America since be infected by the AIDS virus: the end of the 1930s Great Depression was reversed. That "Human immunodeficiencyvirus status was not available year, the annual number of TB cases in the entire United for all inmates with TB. However, we are not aware of any States increased, while the year before TB cases had de­ inmate with TB and negative HIV serostatus, and two thirds creased by only 0.2%; in contrast the annual totals of TB of the TB cases with unknown HIV serological status were cases had declined approximately 5% per year from 1953 to users of street drugs prior to incarceration."

4 Economics EIR February 3, 1989 Latent TB infections are activated when people get AIDS , AIDS patients and that most doctors do not pay enough atten­ .. according to the study, and the incidence of TB in prisons in tion to malnutrition. Panel members suspect well-nourished New York State more than quadrupled in 1986, because of patients have better functioning immune systems and will the increasing number of prisoners with AIDS. The new cases live longer. were among men aged 30-49, from minority groups and with The lAMA article appeared under the title "Increasing a history of illegal drug use. The study urged that TB control Incidence of Tuberculosis in a Prison Inmate Population" measures be reinforced in prisons. Since 1985, EIR has con­ (Vol. 261, No . 3) and was authored by six experts-M. sistently warnedthat AIDS and TB were biological co-infec­ Miles Brau, M.D., Benedict Truman, M.D., M.P.H., Bar­ tions, precisely because the activation of TB is the best bara Maguire, M.S.; George DiFerdinando, Jr. , M.D., "marker" for poverty conditions. M.P.H., Gary Wormser, M.D., Raymond Broaddus, Ph .D.; Dale L. Morse, M.D., M.S. Their study found that the inci­ AIDS and malnutrition dence of tuberculosis among inmates of the New York State In the second study, malnutrition and AIDS progression prison system increased from 15.4 per 100,000 in 1976 were linked by another panel of experts . Aggressive efforts through 1978 to 105.5 per 100 , 000in 1986. The matching of to improve nutrition, including intravenous feeding, could TB and AIDS registries indicated that the majority (56%) of improve and extend the life of AIDS patients, according to inmates with TB reported in 1985 and 1986 had acquired the II-member group of government, academic and hospital immunodeficiency syndrome or human immunodeficiency experts in New York headed by Dr. Myron Winick, a nutri­ virus infection; none were known to be human immunodefi­ tion specialist at Columbia University. Guidelines by the ciency virus seronegative. A case-control study examined 59 panel were published in the January-February issue of Nutri­ inmates with TB reported from 1984 through 1986 and 59 tion. Their reportindicates that most patients who have AIDS matched control inmates without TB . Inmates who reported are malnourished. Dr. Donald Kotter, a panel member from street drug use were more likely to develop TB . Although the St. Luke's-Roosevelt Hospital Center, said, "Malnutrition in majority of cases are thought to be due to reactivation of AIDS is common, severe, and progressive." He said that latent infection, phage typing of 16 Mycobacterium tuber­ starvation is a major contributing factor in the deaths of many culosis cultures suggested the possibility of inmate-to-inmate transmission in at least one cluster of three cases. Hence, the experts argued that it is of crucial importance that TB control measures be reinforced in the prison setting to counter the FIGURE 1 increased risk created by human immunodeficiency virus New York State inmate tuberculosis 1976-86 infection. It has been well established that the best treatment for tuberculosis is immediately raising the standard of living of the infected. The main treatments for TB include better food , better housing, better sanitation and the appropriate balance between rest, work, and sunshine. What's required to fight deadly disease in the prisons of New York is even more needed in the IMF and World Bank created poverty hell­ holes of Africa, Ibero-America and Asia. I Fifteen years ago, in a special study commissioned by u 1 '0 Lyndon LaRouche, the EIR Biological Task Force specifi­ 1 cally warnedthat the consequences of the genocidal malthu­ �E ::I Z sian policies then proposed by the IMF, World Bank, and other financial institutions would create the conditions for the full-scale biological holocaust which is now unfolding around 1976 n 78 79 80 81 82 83 84 85 86 the globe. Those in the Establishment who ridiculed and Year flaunted their objections to our forecasts and studies over these 15 years, are today leading the demands that Lyndon The open bars indicate the TB cases among inmates, where the status of human immunodeficiency virus (HIV)-the "AIDS LaRouche be eliminated because he represents the unity of virus" -is unknown. The shaded bars indicate the percentage of morality and economics. tuberculosis cases that tested seropositive for HIV virus, but did The point is not just that we were proven absolutely right not have full-blown AIDS. The solid bars indicate tuberculosis and they were wrong, but rather that large numbers of people sufferers who were also sick with AIDS. The graph shows that were brutally murdered because those in power refused to by 1986, not only had overall TB rates skyrocketed, but over halfof those were either infected or sick with AIDS. spend the money and extend the credits to reverse these economic holocaust conditions even though they were warned Source: The Journal ofthe American Medical Association, Jan. 20, 1989. of the consequences.

ElK February 3, 1989 Economics 5 Governors decree austerity drive Three state governors with national political ambitions are showing how to kill with austerity. Steve Parsons reports.

In the two weeks before George Bush's inauguration, several officialsbelieve the cost to them will be much higher. state governors launched their own versions of the vicious These cuts would be in addition to a drastic "overhaul" austerity that will undoubtedly characterize the "sacrifice" of the Medicaid reimbursement system featured in the Cuomo demanded by the new President in his inaugural address. budget: requiring MediCaid recipients to pay the state a fee With the nation mired in the debris of Ronald Reagan's for each visit to a doctor, and eliminating coverage for visits great "recovery," virtually every state is facing a crippling to private podiatrists and psychologists. He also proposes a budget deficit, and the concomitant choices of cutbacks and 15% reduction in the state's reimbursements for hospital tax hikes. We feature here three of those states-New York, capital equipment costs. "The hospital industry will be reel­ California, and Massachusetts-whose governors have pro­ ing with these cuts," said Kenneth Raske, president of the posed drastic austerity measures, triggering an uproar of in­ Greater New York Hospital Association. competent "debate" over how the sacrifices will be imple­ CuOmo presents a potpourriof gimmicks and chiseling to mented. achieve his balanced budget: • Reduce aid to localities by $700 million. Cuomo: a Wall Street Democrat • Eliminate 2, 100 state jobs. The 1990 New York State budget unveiled on Jan. 17 by • Increase the education budget by only 3%, less than Gov. Mario Cuomo focuses on eliminating an expected $2 .6 the rate of inflation. This would mean terminating 1,335 billion deficit. Echoing Republican Bush and Wall Street faculty positions at the City University of New York alone, friends, Democrat Cuomo opposes any increase in the state's paring down curricula, closing schools, and forcing big, local personal income and corporate taxes. His intent is not only property tax hikes. to hit virtually every state program and locality with cut­ • Impose nearly 200 new or increased fees and taxes, backs, but-as Reagan has done and Bush will accelerate­ ranging from parking tickets to marriage license. Some are to begin dumping financingrequirements for these programs downright absurd, like a $10 monthly "probation supervision onto local governments. fee" for convicts! This will force local governmentsto make more cuts and • Cut the allocation to the state insurance fund, which raise property taxes, the only taxes localities can raise without has already been raided to shore up this year's deficit. state approval . Since New York property taxes are already • Cut the state payment to its pension fund by $300 nearly double the national average, construction and pur­ million, based on "new estimates" of the fund's interest earn­ chases of homes will be further decimated, and real estate ings from investments in the Wall Street markets. This has values eroded. become a favorite gimmick of more than half the states in the Cuomo's budget calls for eliminating state revenue-shar­ nation, which is setting these funds up for bankruptcy-and ing contributions to counties-a loss of $79 million in unre­ the taxpayer for a big hit-when the bubble bursts. stricted local grants that would particularly devastate rural Cuomo does hint, however, that things could get a lot areas and unincorporated towns. Further cuts would be made worse if the "great recovery" dissolves into financial collapse in aid to localities, including sewer, prison, and Medicaid under George Bush. "There are no margins in my budget," funds. warnedCuomo . "There is no leeway." Cuomo wants to double the share of Medicaid contribu­ tions paid by local governments , from 5% of costs to 10 %, Deukmejian's booming economy while the state cuts its share by the same amount. Even more Over the past two years , the state of California has cov­ morally outrageous, he wants the state to cease funding ed­ ered actual deficits by draining its $1.1 billion reserve fund . ucation for the handicapped. Together, he says, these two This year, Gov. George Deukmejian has particularly targeted measures wi ll "save" the state $100 million a year. But local cuts for the most vulnerable strata: the poor, the infirm, and

6 Economics ElK February 3, 1989 the elderly. He proposes to save $242 million by withholding cost­ of-living increases for both welfare recipients and the aged, blind, and disabled. This would deny, for example, a mere $29-32 monthly increase for a disabled person or welfare Haggling over the mother with two children, freezing their monthly stipends in the miserly range of $602-663. To save $63.9million , Deuk­ price of Soviet Jews mejian wants to limit state payment by the In-Home Suppor­ tive Services program for the disabled and elderly, to a mere by Scott Thompson 70 hours a month-at the minimum wage. Unless localities picked up the tab , tens of thousands would be virtually con­ demned to death. In mid-January, officials of the U.S.-U.S.S.R. Trade and Perhaps most sinister, Deukmejian proposes to cut $363.9 Economic Council (USTEC) gathered with world Jewish million from the state's medically indigent program, and then leaders in the Manhattan apartment of whiskey baron Edgar create a new program that would provide "uncompensated Bronfman to map out a campaign for the direct shipment of care"-for fewer people with more stringent requirements Soviet Jews to Israel in returnfor lifting the 1974 Jackson­ for qualification. The funds for this would supposedly come Yanik trade barriers. Bronfman, who is presidentof the World from the federal government's illegal alien amnesty program, Jewish Congress, is a board member of USTEC, whose pres­ and from new cigarette taxes. The catch is that it may be ident, James Giffen, has publicly stated that he wants to tum determined that these funding sources cannot legally be ap­ the Soviet Union into an "economic superpower" through plied in this manner. If that happens, localities would be favorable trade and credit agreements. The Bronfman family forced to pay, while thousands would go without medical is also one-third owner of E.I. DuPont de Nemours, which treatment. This could cost the overburdened hospitals in Los has been a major corporate sponsor of USTEC, also involved Angeles County alone, an impossible $100million . in trade with the Soviet Union which Giffen admits borders Deukmejian says that he is being forced to take these upon military-related technology. drastic steps because of a voter-approved referendum man­ Apart from Giffen and Bronfman, the other USTEC of­ dating substantial increases in state funds for education. But ficialinvolved in the scheme to swap Jews for expanded trade education is slated for only an 8% increase in his budget. Not is Dwayne Andreas, the U.S. co-chairman of USTEC and only is this hardly sufficient to compensate for inflation; the chairman as well of the grain cartel firm Archer Daniels California university system has imposed a 10% tuition fee Midland (ADM). In a Dec. 26, 1986 front-page article in the hike just to tread water, with no new programs permitted by Wall Street Journal, entitled "Gorbachov's Pal: Dwayne An­ the governor. dreas Gains an Apparent Position as KremlinFavorite ," the All of this, "despite the fact that our economy is boom­ writer wondered "whether Mr. Andreasis beginning to edge ing," in the words of GovernorDeukme jian. out Armand Hammer, the chairman of Occidental Petroleum Co., as Moscow's favorite American businessman." It is Dukakis's 'competence' Andreas who has recently filled Soviet grain bins with cheap Gov. Michael Dukakis of Massachusetts has delivered American grain, despite the ongoing drought that is likely to on his erstwhile presidential campaign promise, in spades. create global shortages and push grain prices sky-high. On Jan. 12, he proposed the biggest tax increase in the state's history. Ripping up the Helsinki accords Afterdemonstrating the managerial "competence" he ad­ Syndicated columnists Rowland Evans and Robert No­ vertised to the national electorate as his chief qualification, vak in aJan. 23, 1989 article entitled, "Swap Soviet Jews for by taking out repeated short-term loans, Dukakis wants well U.S. Trade?" went directly to the core of the problem posed over $1 billion of new taxes assessed over both the 1989 and by the Bronfman-Andreas-Giffen proposal: 1990 fiscal years. He has already decreed more than 400 fee " 'An ugly deal,' one former official told us. 'Jackson­ and fineincreases to help ameliorate the state's current $636 Yanik is a statute with specificpro visions. They say nothing million deficit. Although the Duke insists that the state's about Jews and nothing about Israel. ' "The 1974 Jackson­ revenue problems are over-as he did in July-the state Yanik amendment imposed major restraints on trade until legislature is howling. Soviet emigration becomes 'substantially free .' The amend­ Democrats in Massachusetts are demanding that Dukakis ment was one of the opening wedges in the human rights make budget cuts, while their comrades in California and movement. It presupposed that all Soviet emigrants-Jew­ New York are clamoring for tax hikes. No one is addressing ish, Pentecostal, Armenian, or other-would have freedom the real issue: how to generate real economic growth and the of choice to leave and to go where they wanted. Although it expansion of the revenue base. avoided targetnumbers for emigrants, the United States told

EIR February 3, 1989 Economics 7 Moscow that 60,000 a year would be satisfactory ." The USTEC proposal not only limits the question of Jackson-Vanik's scope to Jews, but it proposes that Jews who wished to leave the U.S.S.R. would have no choice but to travel to Israel. Again, Morris Abram , departing head of Save the U.S. savings the Conference of Presidents of Major Jewish Organizations, has been quoted in the Israeli newspaper Yediot Ahronot after Edwin Gray proposal the Bronfman meeting that the issue "is not an issue of human rights but the redemption of Jews as Jews. They should go to by Lyndon H. LaRouche, Jr. Israel . " Presently, most Soviet Jews choose to emigrate to the United States, where they have family, friends, and a more The 1983-87 chairman of the Federal Home Loan Bank Board secure future . The USTEC proposal would eliminate that and head of FSLIC, Edwin Gray, has some useful proposals freedom of choice-a major pillar of the Helsinki Accords­ for emergency action to save the United States Savings & by forcing Soviet Jews to settle first in Israel, from which it Loan institutions from a catastrophe as bad or worse than that would be impossible (because of immigration quotas) to then of the 1931-34 period. move to the United States. This represents a cynical deal As I expected, and warned during my campaign for the between the USTEC crowd, who are a direct continuation of Democratic presidential nomination, the next U.S. financial the 1920s gang that guaranteed survival of the Bolshevik crash to follow the October 1987 crisis, was being merely Revolution, with the radical Zionists in Israel who want to postponed until after the November 1988 election. Immedi­ use Soviet Jews as cannon fodder to fulfill their vision of a ately following President Bush's inauguration, the new crisis Jewish-dominated "Greater Israel." Not only would Soviet has begun to erupt, with an open fight between President Jews be virtually forced to live in new settlements within the Bush and Federal Reserve chairman Greenspan, and an im­ occupied territories (a dangerous policy opposedby the United minent collapse and looting of a major chunk of the U.S. States), but they would be used as part of a racial purification savings institutions, the Savings and Loan associations. policy within Israel to offset the higher Palestinian birthrate . As quoted in the Washington, D.C. leak-sheet, Regar­ dies, former FSLIC chief Edwin Gray charges that former Return of the Montagu Norman deal? Treasury Secretary Donald Regan deliberately bankrupted While it is doubtful that Andreas and Giffen see the latest the S&Ls. This is the same charge I made during the 1988 proposal as anything more than a cynical deal along the road Democratic nomination campaign. Mr. Gray adds informa­ to transforming the U . S.S. R. into an "economic superpower" tion on Treasury Secretary Regan's expressed views, which that could engage in expanded global power-sharing agree­ I did not have at that time. ments, one informed analyst commented that the position In an EIR interview, Mr. Gray reports that Mr. Regan taken by Bronfman, Morris Abram, and other Jewish leaders acted deliberately to "destroy the FSLIC, the Home Loan involved in the deal is reminiscent of Bank of England head Bank Board, and the S&Ls for five years" because"he thought Montagu Norman's haggling with Adolf Hitler over the price there is too much housing in America," and because "he per head for European Jews. wanted to give the [deposit] business to his friends on Wall Since these Jewish leaders have already disavowed the Street." human rights question-especially as it applies to non-Jews I endorse adoption of Mr. Gray's recommendations: imprisoned in the U.S.S.R.-the question might legitimate­ 1) Immediately reinstitute all S&L regulations, such as ly be posed whether Bronfman secretly fears that Soviet Regulation Q and other protective legislation. Jewry is especially threatened by the rising tide of anti-Sem­ 2) Strengthen FSLIC by taxing speculative income. itism within the Soviet Union, which the liberal Western Mr. Gray's proposals are useful, and urgent, but they are media have virtually blacked out in their gushing over Mik­ not sufficient. The other measures which I outlined during hail Gorbachov. The truth is, not just Jews, but many of the my campaign must be adopted, or the savings of many ordi­ other ethnic, religious, and national minorities within the nary Americans will simply be wiped out, or nearly so. Soviet Union are threatened to a very high degree by the Gorbachov regime, which has used the "iron fist" of the KGB The LaRouche measures and GRU to repress those who seek real freedom from im­ What I proposed, and should be done immediately, are perial rule. the following: But, the story of this covert repression within Armenia, 1) Federal Reservereform establishinga two-tiercredit the Baltic states, and elsewhere in the Great Russian empire system. is all the more reason to uphold Jackson-Vanik within the My 1981 Federal Reserve Reform Act proposed: a) Pro­ foreseeable future . hibit the Federal Reserve fromcreation of fiatmoney (money

8 Economics EIR February 3, 1989 income and capital gains on nonproductive investment, es­ pecially commercial real estate. This would include financial institutions with a significant proportion of assets and depos­ its in the Eurodollar market (See my statement "U.S. Not and loans: Responsible for Eurodollars," EIR , July 20, 1982). 4) Reinforce and strengthen the Glass-Steagall Act, should be adopted directly opposite to Bush-wrecker Greenspan's proposal to eliminate that Act. This was the 1934 Act which separat­ ed Morgan Guaranty commerical bank from the Morgan, Stanley stock brokerage so that the banks could not use de­ positors money to speculate on the stock market instead of supply) to the Wall Street banks through its current open making productive loans. market operations. b) Provide the banking system and S&Ls instead with large amounts of new credit through the Fed's The enemy game-plan discount window. S&L mortgages as well as other productive The current effort to wipe out most of the S&Ls, by bank loans. earmarked for agriculture, new capital invest­ turningtheir looted carcasses over to the Wall Street vultures, ment, production, transportation, etc. would be freely dis­ is the first of a series of steps being taken in support of a plan counted for cash up to 50% of their face value. This would by a cabal around former West German Chancellor Helmut allow banks and S&Ls to make further such loans at a low Schmidt's globalist think -tank, the Inter-Action Council, and tier of 2-4% interest rates. c) Speculative paper would be by a new globalist agency soon to be launched and headed discounted only at high rates, forcing the banks to charge a nominally by Schmidt. Greenspan's actions have identified higher tier of rate to borrowers seeking credit for speculative him as a supporter of that cabal. ends. d) Raise reserve requirements on banks and S&Ls The intent is to sink the U.S. dollar through a new inter­ whose assets show an inadequate proportion of productive national financial crisis orchestrated by a consortium of pow­ lending, that is, fall below a new Federal Reserve "productive erful European financier interests. The object is to put the loan standard," where loans for production are at least 80% U.S. under IMF "conditionalities," and to proceed to loot the

of assets. This gives market advantage to traditional S&L U.S. in a way similar to that already being done to Mexico mortgage lenders and industrial and agricultural bankers. and other developing-sector indebted nations. This action is 2) Tax reform, directly opposite to the tactic recently scheduled to be unleashed in full force by no later than this proposed by Nicholas Brady. Brady's proposals, although coming summer. premised on some valid observations, do not address the The object is to place the world under the iron-fisted underlying issues , and would, in fact, play into the hands of control of a handful of international financier cartels, who Bush-wrecker Greenspan. All proposals to replenish the enrich themselves by looting the industries, farms, infra­ FSLIC or otherwise solve the S&L crisis by taxing productive structure, and populations of North America and Western S&Ls or their depositors are suicidal. a) The American fam­ Europe in the same way they are looting the nations of Africa ily, the basic depositor in the S&Ls, is already being prohib­ and Central and South America. ited from family formation by the tax structure, and needs a In the course ofth is, they intend to break the Bush admin­ huge tax cut. My 1981 proposal, "Taxation for Capital For­ istration politically, by aid of an orchestrated holocaust of mation," pointed out that while 80% of households had an "reversed financial leverage" against the bloated U.S. finan­ income of $20,000 or less, only 17% of those families had cial structures. Greenspan's actions, including his efforts to two or more children, the minimum necessary to reproduce push up interest-rates, are setting the stage for the planned the population. Today it is worse. I propose to remove all tax new financial crash. liability up to annual incomes of $30,000. Under this pro­ The alignments in this are as follows: posal a great many savers would pay no tax on S&L deposit The enemies of the Bush administration are centered in income, encouraging deposits. b) For depositors with higher. its professed "best friends" in London and Zurich, and in the income, provide savings incentives with exemption of 50%, London-allied Mitsui financial factional minority in Japan. or $1 ,000, whichever is higher, on interest income on depos­ Allied with the Bush administration, are the so-called Mit­ its in S&Ls and banks whose asset base meets the new Federal subishi interests of Japan, including the Dai !chi bank, the Reserve standards. This would make interest income on large Mitsubishi bank. and others. The attempted "watergating" of deposits competitive with tax-free bonds. the Japanese government of Prime Minister Takeshita is part 3) Tax financial institutions with a certain leyel of of the London-Zurich-Mitsui operation against Mr. Bush's business in the Eurodollar market at a much higher rel­ strategic flanks. ative rate. Revenue to replenish the FSLIC and make up for The Japan forces behind Prime Minister Takeshita are the family-formation tax cut by increasing tax schedules on supporting the U. S. most energetically, and massively, be-

EIR February 3, 1989 Economics 9 cause Japan's patriots believe that Mr. Bush represents a dissolve the anti-Depression Grass-Steagall Act, and to assist stable institutional force inside a U.S.A. upon which the in the looting raid on the S&Ls, are preparatory steps being survival of Japan as a free nation depends. taken to prepare the way for the scheduled financial crash Helmut Schmidt and the Inter-Action Council represent later during this year. well-known international connections centered in the Lon­ The battle to save the S&Ls and ordinary Americans' don, Zurich, and Mitsui Liberal Establishment factions. The savings from the looting-operations of Wall Street and Lon­ fact that Herr Schmidt is a former German chancellor is don financier cartels should be mounted as a first counter­ secondary in importance to the fact that his career in postwar measure against the plot of the U.S.A. 's deadly Liberal Es­ Germany was launched by London, and that he has close ties tablishment adversaries. to the London Chatham House faction of London and the Mr. Edwin Gray has presented valuable warnings and U.S.A. suggestions. Those should be supplemented promptly by the The factional alignment behind these moves, is princi­ measures which I proposed during my 1988 presidential­ pally as fo llows: nomination campaign. Those actions, by themselves, are In the U. S. A. , the center of the scheme against President only defensive actions, which will not solve the problem by Bush and the United States, is those circles centered around such measures, alone. They are defensive measures, which Gerard Smith and Lloyd Cutler who are leading supporters buy the U.S. governmenttime for putting more fundamental of the "Europe 1992" world-federalist project in the United actions into place. States. This is the liberal faction centered around the New York City Anglican diocese of Bishop Paul Moore, and to­ gether with Bishop Moore, the Satan-worshipping Lucis Trust and the assortment sponsoring the Lucis Trust's United Na­ Excerpts fr om Edwin Gray's remarks reported in the tions Association and Temple of Understanding. October 1988 issue ofRegardies: The enemy of the U.S. in WesternEurope , is centered in that part of the Anglo-American Liberal Establishment to On the 1984 rescue of Financial Corporationof Amer­ which Bishop Paul Moore's diocese is most closely tied. ica, the nation's largest thrift: "In September 1984, The general plan is as follows: given the fact that FCA was threatened with a contin­ 1) To continue the 1985-88 pattern of appeasement of uing liquidity crisis and had virtually run out of collat­ Moscow, the "pro-glasnost" policy of "I Like Gorby" cen­ eral with which to borrow either fromthe Federal Home tered in such figuresas London's powerful Victor Rothschild Loan Bank or the Federal Reserve, we had gone to and the darker, more powerful figureshe represents as a front­ Dick Pratt, my predecessor at the bank board, who at man. Use globalist "understandings" with Moscow, as an aid the time was in a key position at Merrill Lynch. He was to crushing all independent opposition to the Anglo-Ameri­ putting together a $1 billion brokered funds package at can Liberal Establishment within the United States and other our request. This would provide liquidity for FCA, nations. which was desperately needed to stay ahead of the The recent legal frame-up patterns against me and my crisis. friends are but an aspect of that pattern of crushing and "Then, one day, Pratt called to say that he couldn't elimination of all independent forces of determined opposi­ go ahead with the deal. He said that he'd been overruled tion to both Soviet appeasement and the neo-feudalist sort of by his superiors. By the skin of our teeth, the next day globalist fascism sought by the relevant elements of the An­ we lined up another firm to put together the deal. . . . glo-American Liberal Establishment. More than a year later Pratt confided to me that Don 2) Split the United States from WesternEurope strategi­ Regan had been thereason thathis superiors had over­ cally, as rapidly as possible, while establishing London-cen­ ruled him. He said that Don Regan had intervened and tered cartels as the dictatorially dominant forces within a caused his package at Merrill Lynch to be scuttled. I "federalized" Europe. found this to be interesting indeed." 3) Eliminate the sovereignty of the United States by ap­ On his warningsof the coming FSLIC crisis: "I was proximately the summer of 1989, through a crushing finan­ talking about the problem way back in 1983. I realized cial crisis which places the U.S. under IMF "conditionali­ that I'd probably have the problem dumped on my ties." doorstep down the road, and I wasn't about to counte­ In the meantime, London elements ofthis cabal are going nance that. I felt very strongly that I had to make my to great lengths to paint themselves as admirers and friends concerns about the FSLIC known early on. But I felt of the Bush administration, to lull that administration into a that if I wasn't careful, I could start a run on federally state of overconfidence in suggested understandings reached insured institutions, so my statements were carefully with London forces. crafted to try to prevent that." The efforts by Greenspan to increase interest rates, to

10 Economics EIR February 3, 1989 Interview: Dean Kleckner

'Farmer's representative' backs fo od cartel's free trade policy

Dean Kleckner, president of the American Farm Bureau EIR: U. S. dairy product surpluses havt:! run out and the Federation, was interviewed by EIRAgriculture Editor Mar­ government has discontinued free distribution of milk and cia Merryon Dec. 6, 1988 in Montreal, where Mr. Kleckner cheese products. The milk producers have called for a na­ was present fo r the M id-Term Review Round of the General tional debate on what level milk stocks ought to be at . In that Agreement on Tariffsand Trade (GAIT). light, the U.S. food security proposal at GATT said that we should not have "self-sufficiency" be the criterion for "food EIR: Now in process of formation are giant free trade zones, security" for any nation, but rather "access to the markets ," such as Europe 1992 , the new Canada-U.S. Free Trade the "ability to store." Agreement, and the new Australia-New Zealand 1990 . Many Kleckner: Well, I certainly agree that we ought to ban the fear that there will be consolidation of market control by a phrase "self-sufficiency." It just doesn't fit in with free mar­ certain very few companies. kets and with adequate supplies. And certainly it does fit in Kleckner: Well, it's a potential problem, it seems to me, with surpluses. The European Community has proven that­ though I'm not that concerned at this point. I'm always con­ you go right beyond self-sufficiency i.nto gigantic surpluses, cernedwith monopoly, and at some point, there is a monop­ so we then have the trade distortion. So food security is oly, or we're moving well toward it, any time you have a something different. lack of competition-and different people see that different­ In the matter of milk in our country, I don't have the ly-it is becoming more concentrated, and it is becoming concern-there will be adequate milk and milk products, if worrisome to farmers in the United States. I'm not sure the price is there and the incentive to produce. And I think whether we'll see a new bilateral agreement, like the U.S.­ that the market system is dictating that right now . We're Canada agreement, and of course 1992 in Europe. I'm not having dairy farmers in some parts of the United States now sure how that will play out. I think the more we go to freer receiving above the loan rate for their milk, because there is trade , the better it will be for farmers and everybody in the a demand for it. I don't have the concern either, that our long run . There could be some short-term problems for cer­ excessive supplies are going down, so that we don't have the tain sectors, but long-term, freer trade just means a better amounts of powder or butter, or whatever it is, that we've economy, and it's better for everyone. given away in the past. ...If that's a policy, then it can be ...There will always be problems. Sometimes we can't bought on the market-it doesn't need to be surplus disposal ! foresee what they will be, but there are always problems with So I would say, it never hurts to have a national debate change. And human nature being what it is, we're not very on what the right amount ought to be , whether that's 5 billion adaptable to change. We do change, because everything is pounds or 3 billion or 7 billion ....But don't be so con­ changing, nothing is constant-but change worries us­ cernedthat that amount should be raised or else the giveaways farmers no more and probably no less than anybody else. will stop or vanish. That doesn't necessarily need to be true . We'll just have to adapt to it. As I said, it can be purchased from the market. Let's buy it I think on these trade talks that we're having right now, from the market, and have the market system work ! Dairy it's hopeless, it's foolish, to put obstacles in the way. These farmers will respond to that. things are going to happen: We're moving toward freer trade in the world. I think agriculture ought to be doing what we're EIR: There are huge flows of food being committed from doing now-we ought to be involved with it, and helping to Western nations to the Soviets through bilateral deals, from shape it, so that it will be something that we can more easily France, New Zealand, and the United States. And Australia live with, rather than saying, "We don't like it, we're not is now negotiating a commodities pact. What are your views going to participate, let's set up as many roadblocks as we on this process? can"-and they will just go around us, we'll be isolated. Kleckner: I don't know what the Australian-Soviet pact will That's not the proper way to do it. mean, if anything, any different from any of the other bilat-

EIR February 3, 1989 Economics II eral pacts. Of course, we do have a bilateral pact, a long­ low, so the prices rose. That was the market system at work, term agreement with the Russians, and we are now renego­ that's supply and demand. tiating if we can for another period of years. I think, too often, though, American farmers, and maybe world farmers , EIR: There's also concernthat farmers who do want to plant forget that trade goes on even without these bilateral pacts, or increase output for 1989, won't have access to the credit or multilateral pacts. They buy from us, we buy from them, they need. What do you think of that? so trade does go on, and you don't need these pacts to have Kleckner: I'd be very surprised if that happened. I think trade. What it does, apparently, is to add a little certainty to there is going to be adequate credit there . There frankly it: There are minimums and maximums that can be pur­ always is enough credit, for those who show that they can chased, and certainly from the U.S. and the Soviet pact, the pay it back. And most farmers now are in that position­ minimums that are set are there so that we know they will be there aren't a lot that have a real credit crunch, or a real buying that much year afteryear , and we can plan according­ financial crunch. There are some, but there always are some. ly. There will be credit available. It may cost a little bit more , I don't see a lot wrong with that-but on the other hand, but that has virtually nothing to do with farming and farmers. it's not going to be the savior of the world, because it proba­ The credit, and the interest rates, are really set worldwide bly, in the end, won't affect trade all that much. It would now, and so interest rates are tending to go up right now. I'm have gone on anyway, and over a period of five years, I'm in the minority, but I think that that's not going to continue; not so sure that those pacts mean any more trade. It may I would look for interest rates to be falling-maybe not in smooth it out a little bit from year to year, and probably that's 1989, but the long-term trend of interest rates, I believe, is beneficial. down, and not up.

EIR: There is concern that the bickering and possible trade EIR: The Department of Agriculture computed "production war over beef hormones between the United States and the subsidy measurements," for use in making proposals on cut­ European Community is in fact straining NATO. This is ting subsidies. For the United States the dairy and sugar really to the benefitof the Soviet Union. sectors are singled out for big cuts. Kleckner: I would prefer to have the Western connections Kleckner: Well, those two commodities are always pointed strong, and a lack of trade war, or freer trade. Of course, at by the rest of the world, as they point the finger at the that's the purpose of the exercise in the GATT negotiations: United States and say, "You're not really white either." And to move toward freer trade and less restrictions and more we recognize that, we admit it. I say, "Certainly, the United open borders , and so forth , and it's slowly becoming that States is not really white" -and it's not just dairy and sugar. way. But frankly, the problem is that there is some excess We have other forms of protectionism in the U.S., but those production in the world, in the Western world-we have a two are singled out, it seems to me. And they're more worried more capitalistic society in the West, so that leads to better than over the rest of our commodities, frankly, because ...I production, it leads to more . And so we have things that we think they have some more protectionism than some other need to sell, and the truth ofthe matter is, we're fightingeach commodities. . . . other in the West, because we're subsidizing exports. And Dairymen that talk to me say, "How can we compete with the beneficiaries of that are the countries that import, that New Zealand, when they can produce milk for $4, $5 , or $6 need to import, Russia being one ofthem-that's the big one a hundred [pounds of milk]?" I say, "I don't think we can, I that we look at-but there are other ones also. don't think there's a farmer in the United States who could Through the GATT, of course, we are trying to reduce produce milk for that, but don't worryabout New Zealand! those barriers. But I would guess that we're still going to They could fill New Zealand with cows, and it still wouldn't have more produced in the Western world than the Western affect the world market that much! They're not that major a world will consume-and there is nothing wrong with that; producer. " I am for that. I am for production, and then using the markets In the rest of the world, though, U.S. producers are effi­ to sell. So, Russia will be the beneficiary of our production. cient enough that we can compete, ifthe playing fieldis level. Hopefully, we can get away from subsidizing exports, both So I say to U.S. dairymen, "Don't get all that shook up!" the United States and the EC and other countries that do it. Efficient and productive U.S. sugar producers will compete in a world market, again, where the rules are fair and the EIR: The United Nations has called for a 13% increase in playing field is level. . . . The problems that our farmers the world output of cereals. Even the grain trade people in have, are the same as the problems of farmers in the rest of London, who follow soybeans and so forth, say that we're the world: They don't know what the future holds, so they going to have record low stocks. are concerned about it, and that leads to negative comments Kleckner: Well, certainly the United States is responding and negative thoughts, because they don't have the certainty to market conditions-I mean the price: The stocks were that they are used to right now.

12 Economics EIR February 3, 1989 Agriculture by Marcia Merry

Why the Chicago Mercantile probe? they pay to farmers , and the high prof­ The international fo od cartel no longer needs the pretense of an its they make off their domination of auction market. internationalfood flows. The Chicago Board of Trade is a hated institution. But now , it may be viewed by the cartel as redundant. In recent years, the cartel compa­ nies have moved beyond domination Late in the day on Jan. 25 , the Sen­ the nature of the Chicago exchange of world food trade, into almost total ate Agriculture Committeeannounced probe itself-"Operation Hedgeclip­ control . After leaving the Mercantile that the Jan. 26 confinnation hearings per" in the yen futures pit, and "Op­ Exchange in 1985, and becoming U.S. of Clayton Yeutter for Agriculture eration Sounnash" in farm commodi­ Special Trade Representative, Clay­ Secretary were postponed for at least ties futures. The FBI does not conduct ton Yeutter advanced the cartel cause a week, pending the outcome of the spectacular investigations like this in by launching an international free trade current FBI investigation of wrong­ order to uncover fraud, right wrongs, campaign. He demands the elimina­ doing by traders on the Chicago Mer­ or do good. The FBI wouldn't be tion of all "trade-distorting" agricul­ cantile Exchange and Board of Trade . caught dead righting wrongs. The FBI ture programs and national "barriers" On Jan. 25 , Sen. Tom Harkin (0- is a political dirty tricks outfit. to trade-by these, he means any sov­ Iowa) asked for an investigation of the Over 250 subpoenas have been is­ ereign decision a nation makes (im­ role of Yeutter in the operations of the sued as of the third week in January to port quota, farm support, food subsi­ Chicago markets. Yeutter's seven individual traders and clerks, and to dy) which the food cartel wants to years as president of the Merc over­ clearing member finns. Several FBI eliminate . laps the stated FBI probe from 1983 to agents posed as employees of the Y eutter wants to create a world 1985. Whatever was committed dur­ Archer Daniels Midland cartel com­ trade police foree, out of the Interna­ ing that time-either by the FBI, by pany. A grandjury is under way. There tional Monetary Fund, World Bank, traders, or Mere member compa­ are threats of prosecution, and uncer­ and General Agreement on Tariffsand nies-happened during Yeutter's tainty in all directions . The price of a Trade (GATT). At the Dec . 5-9, 1988 watch, while he was in service to the seat on the futures exchanges has Montreal GATT talks , Yeutter's del­ famous-name food cartel companies plunged. The Mercantile Exchange has egation included two top Cargill ex­ (Archer Daniels Midland, Cargill, begun an advertising campaign to keep ecutives in his "private sector" group. Continental, Bunge, Louis Dreyfus, up its image: "The meats move fast­ There is a scramble for the futures GarnaclAndr e) . er .... For the active trader, live­ gang to "clean up its act," on their As surely as scum rises to the top, stock futures at the Chicago Mercan­ own, but no one is paying much atten­ the dirty connections of Yeutter and tile Exchange are particularlyinterest­ tion to that. There is a nine-member the questions surfacing about the Chi­ ing right now . " special panel at the Mere , considering cago Mercantile Exchange and Board The government is presumed to be changes in trading to protect cus­ of Trade arenow out in the open , at an pursuing charges of widespread rack­ tomers . There is the standing over­ inconvenient time for the Bush admin­ eteering, individual profit-skimming, sight group, the Commodities Futures istration. The hearings' postponement bilking of clients, etc. Speaking pol­ Trading Commission-since its in­ is a glitch in the Bush team's hopes to itely, a Wall Street futures lawyer said, ception in the 1970s, a front for cartel have a smooth administration start-up. "If there has been a lot of skimming interests. The FBI operation will make The Senate Agriculture Commit­ going on, the general public has been this latter group look silly. tee had planned to have no outside paying a bit more when they bought, The real question posed, by both testimony at the hearings; they were and selling lower than they should the Yeutter nomination itself, and the going to rubber-stamp the nominee. have." FBI actions against the Chicago fu­ The news media hushed up the post­ However, for the entire history of tures exchanges, is: Are the world food ponement for days. Such is the power the Chicago exchanges, this has been cartel companies moving to wreck the of the cartelcompanies on Capitol Hill. the "legal" purpose the markets served functioning of Chicago and other mar­ There is something more funda­ for the international cartel trading kets , because they plan to exereise di­ mental involved here . First, look at companies-to "j ustify" the low prices rect, total control over food supplies?

ElK February 3, 1989 Economics 13 Food production in Pakistan: an area of growing concern

by Ramtanu Maitra

Over the years , Pakistan's food production has gone through 18% of cultivable land mostly located in Sind and Punjab­ periods of crises. Bestowed with an irrigation system which have becomeunusable because of waterlogging and growing was superior to that in any part of India, Punjab and Sind soil salinity. Government experts claim that 50% of this provinces of Pakistan were producing bountiful food, and "unusable" land can be reclaimed without incurring large Pakistan was a food surplus nation at the time of partition of expenditures. However, the effort to do that has not yet the Indian subcontinent in 1947. But less than two decades become visible. later, Pakistan had become a food-importing nation depend­ Meanwhile, large tracts of land lying west of the Indus ent largely on the U.S. government's PL-480 program. River and belonging to the barren Baluchistan and not-so­ In spite of the "green revolution" and subsequent rise in barrenNorth West FrontierProvince (NWFP) have verylittle food production, and to a certain extent productivity, Paki­ access to water. With a very low annual rainfall, the cost of stan's food-growing sector has remained perilously close to bringing these lands under productive cultivation will be insufficiency. In the 1980s, Pakistan's food production kept high. However, proper planning and effective implementa­ up with the growing population but could not build up any tion can make both Baluchistan and the NWFP highly pro­ significant buffer stock. As things stand, the future looks ductive regions for fruit growing and other low water-con­ shaky unless a qualitative improvement in the agricultural suming agro-products which, in turn, can contribute signifi­ sector is undertaken forthwith. cantly to local agro-based industries. Since 1970-71, the year the eastern wing tore away from The provinces of Sind and Punjab, washed by the Indus Pakistan to become the independent nation of Bangladesh, and its mighty tributaries-Sutlej , Ravi, Chenub, and Jhel­ Pakistan's production of major cereals has shown a signifi­ urn-will continue to produce the bulk of Pakistan's food cant rise (see Table 1). During this period, production of supply. Out of 21 million hectares of land under cultivation, wheat rose by 100%, rice by about 50%, and maize by 57%. cotton is sown in 3 million hectaresand sugarcanein 1 million Unfortunately, however, production did not go up because hectares. Major cereals, such as rice, wheat, and maize, of enhanced productivity. During this period Pakistan had account for 10 million hectares. The minor cereals and cash­ put under the plow more land which for the most part ac­ crops account for the rest of the 15.54 million hectaressown counted for the production increase. The sown area in the in 1986-87. case of wheat grew by 22%, while 31% more land was used In the coming years, as Pakistan's population, which now for paddy cultivation and 34% in the case of maize. In effect, stands at 102 million with an annual growth rate of 2.5%, the productivity rise over the 18-year period had been less grows, the pressureon land will increase. Unless land man­ than substantial, and is a major cause for concern. agement planning, which must include highly productive By the year 2000, as the population growth projection food-grain production schemes, is undertaken right now, indicates, Pakistan will have at least 25 million more people. Pakistan may fall back to the lean days of the 196Os. The To keep them alive, at least 25% more food-grain production problem is that in the 1960s the world had a substantial at the end of the coming decade will be required. At the same surplus of food-grains; according to various proj ections, there time, a large segment of the population in Pakistan today may not be any surplus at all in the 199Os. requires more food , both in terms of calories and nutrition, to be healthier and more productive. Benefits ofthe Indus Water Treaty In the 1960s when Pakistan's food-grainproduction stag­ Pressure on land utilization nated, the introduction of chemical fertilizers, enhanced ir­ Pakistan, what was known as West Pakistan until 1971, rigation, and the high-yield variety (HYV) seeds succeeded has a reported arable land area of about 58 million hectares, in breakingthe logjam,and Pakistan,over the next few years , of which 36% was under cultivation as of 1986-87. Accord­ emerged as a food self-sufficient nation. The Indus Water ing to available reports , about 10 million hectares-about Treaty between India and Pakistan in 1960 was a major con-

14 Economics EIR February 3, 1989 tributorto this success. The treatyprovided for sharingof the for wheat production, 26% for paddy production, and 15% Indus water through transfers from the three western rivers for maize are HYV. By converting the entire foodcrop- seeds (Chenub , Jhelum, and Indus) to the three eastern rivers (Su­ to HYV seeds, Pakistan's food-grain production can get a tlej , Beas, and Ravi) through a network of canals and bar­ boost in a short time-span. At present, however, Pakistan rages. lacks the institutionalstrength necessary to undertakea large­ The mighty Indus Basin project, one of the world's larg­ scale scientific development in this area. est, on the Pakistan side consisted of two major dams­ Compared to the performance with HYV seeds, Pakistan Mangla Dam on the lhelum River and Tarbela Dam on the has done considerably better in fertilizer use. Total fertilizer Indus-primarily for irrigation purposes. Besides, eight in­ use increased from 283,200 nutrient tons in 1970-71 to ter-river link canals, fivebarrages and one gated syphon were 1,783,840 nutrient tons in 1986-87, an increase of about part of the basin development. Mangla Dam, with a storage 529% during the period. The consumption of fertilizer per capacity of 0.66 million hectare-meters (mhm) of water, and Tarbela Dam, one of the world's largest earth-filled dams with a storage capacity of 1.14 mhm of water, became the

major suppliers of irrigation water. In 1985, the Indus water TABLE 1 system provided about 12 mhm of water at the farmgate, Production of major crops while the tubewell system, used for pumping water up from (in thousand tons) underground aquifers , accounted for another 1.5 mhm of Vea, water for irrigation. 1 965-66 1970-71 1986-87 In spite of the Indus Basin develoment and a spurt in the pumped-irrigation system, most farmers in Punjab and Sind Wheat 3,854 6,374 12,882 make do with about one-third of the water that farmers else­ Rice 1,296 2,165 3,486 where use. According to one expert, Dr. Abdur Rahman, Maize 531 706 1,111 vice-chancellor of Agriculture University in Pakistan, the water shortage results mainly from huge losses occurring in the conveyance system; from canal head to outlet to the tune Source: Ministry of Food. Agriculture and Cooperatives. Government of Pak­ istan of 25%; from outlet to farmgate, 15%; and to field another 6% . It adds up to a colossal loss of 46% of the total surface water diverted. According to Dr. Rahman , 4.42 mhmof river

water goes unused to the seas . TABLE 2 While ways to hold a significant part of the unused water Area under major food crops flowing to the seas must be found, exploitation and recharg­ (in thousand hectares) ing of groundwatermust be stepped up to meet the increasing Vea, water demand with better control . Pakistan's performance in 1 965-66 1970-71 1986-87 the exploitation of groundwater has been a mixed bag. From a modest beginning in the 1950s, the number of tubewells Wheat 5,157 5,980 6,932 installed grew steadily at the rate of 6,000 per year, and by Rice 1,394 1,504 1,968 1965 therewere 31,000tubewell s. The installation of tubew­ Maize 542 640 842 ells rose faster after 1965 , and by 1973 the. number of func­ tioning tubewells reached 100,000. Although the installation Source: Ministry of Food. Agriculture and Cooperatives. Govemment of Pak­ rate slowed down after 1973, the number of tubewells in­ istan stalled continued to rise, and reached the maximum in 1982 when the number of functional tubewells reached 202,158. Since then, the number of functioningtubewells has been

on the decrease. Reasons cited include increasing cost per TABLE 3 installation, groundwater becoming saline, lowering of the Yield of wheat in 1985 groundwater level, and lack of pumping power. Country Vleld

Green revolution inadequately exploited Pakistan 1.59 There are two other areas-seeds and fertilizer-that India 1.87 could betaken advantage ofto enhance food-grain productiv­ China 2.95 ity significantly. When used in conjunction with adequate U.S.S.A. 1.65 fertilizer and water, HYV seeds can give a 20% rise in pro­ U.S.A. 2.52. duction. According to available reports, only 43% of seeds

EIR February 3, 1989 Economics 15 p A K

___ Intemational boundary ---' -'-Pakistan's province demarcation

flllI Area claimed by India but controlled It!fL1 by Pakistan (in Kashmir)

cropped hectare rose substantially from 15 to 59 nutrient Some constraints kilograms-about 20 kilograms more than the average in First, the annual flooding and large-scale deforestation, India. However, it is doubtful whether the Pakistani farmers which have led to severe land erosion, need to be given were able to extract the optimum benefit from increased fer­ priority attention. Flooding and deforestation are deeply in­ tilizer use. tertwinedin the presenteco-cyle that is heading for a potential As Dr. Rahman pointed out recently , the proper use of disaster. fertilizer is associated not only with the quality of the nu­ Pakistan's floodplains consist entirely of riverine areas trients itself, but also its judicious use at the proper stage of located between andon either side of the Indus River system. plant growth . The infrastructural weakness in Pakistan's ag­ Some 80% of Pakistan's valuable irrigated land area of 16.6 riculture, combined with its institutional weakness, is also million hectares is located in this riverine tract. The topsoil noticeable in the way fertilizer is used. Farmers , not being of the riverine areas is highly fertileand capable of sustaining aware of vital scientific findings, often use fertilizer without cropsof differentty pes. With the construction of the Tarbela taking into account soil conditions and other parameters . and Mangla dams and a number of diversion and flood pro­ While the application of the fundamentals of agricultural tection works, the frequency of flooding has been reduced, science will take Pakistanover the crisis that is loomingahead but the severityof the floods has not. in the coming decade, there are areas where long-term think­ In fact, the floods have become more severe now than ing and planning are needed. Since a new government has before because the riverbeds have been raised due to large­ come to power in Islamabad with the promise of eradicating scale settling of eroded soil. Pakistan has very little forest poverty , Pakistan's long-term agricultural development re­ land. According to the government statistics, only 4% of the quires a hardlook. land mass can be considered as having proper forest cover.

16 Economics EIR February 3, 1989 Such a small forest cover itself poses problems of land ero­ sion. Moreover, Pakistan's rainfall is dominated by the Currency Rates southeasterly monsoon which brings 80% of its rains during an eight-week period. Although some winter rains provide The dollar in deutschemarks relief, by and large most of Pakistan experiences dry spells New York late afternoon fixing extending as long as 12-14 weeks. In addition, traditional

grazing and indiscriminate felling of trees for commercial 1.90 and domestic consumption are further eroding the grasslands and forest lands. � io" 1.80 -- ./"V ...... r '--� ---../ Man-made scourge 1.70 Particularly since the Soviet invasion of Afghanistan in 1979, millions of Afghan refugees have corne to settle in 1.60 makeshift camps in the ecologically delicate border areas of 1.50 NWFP and Baluchistan. Reports of armedgangs of Afghan 1217 12/14 12/21 12/28 114 1111 1118 1125 refugees cutting down trees while the forest guards look the other way have become routine. An official memorandum The dollar in yen recently presented to the Aid Pakistan consortium of donors New York late afternoonfixing said that while the direct financial cost to Pakistan of taking care of the refugees over the past eight years adds up to $1.5 150 billion, "there is no way of computing the [indirect] cost in the form of environmental deterioration, economic damage 140 to the rangeland, forests and pastures of vital watershed areas , 130 the consequential water run-off and soil eroion, the resulting � reduced productivity, pressure on infrastructure like irriga­ """ 120 - - ...... ,. tion channels, roads, etc . " The governmentof the NWFPhas estimated that it will cost $195 billion for initial rehabilitation 110 of physical and social infrastructure in the province, follow­ 1217 12/14 12121 12/28 114 1111 1118 1125 ing the return of the refugees to Afghanistan. Of that nearly one-third would go to forestry and pasture land restoration. The British pound in dollars Such ecological stress has resulted in large-scale land New York late afternoon fixing erosion. According to hydrological studies, 280-300tons of 1.90 soil per hectare are eroded annually, partly as a result of deforestation and overgrazing. The eroded soil washes into 1.80 � � - ---.. � - the vast irrigation network in the plains. The irrigation net­ � -.... work carriessome of the silt to the large-scale darn-reservoirs 1.70 filling up the darns-the main source of electrical power and a steady supply of water to the farmgates-and deposits the 1.60 rest, raising the riverbeds. It is estimated that the capacity of Tarbela, Pakistan's largest darn, will be reduced by one-third 1.50 by the year 2000 unless measures are undertaken on a war­ 1217 12/14 12121 12/28 1/4 1/11 1118 1125 footing. The dollar in Swiss francs Another distortion seriously affecting Pakistan's agro­ New York late afternoon fixing development is the continuation of feudalism in the form of landowning elites. In Pakistan, 74% of the farmer-landhold­ 1.60 ers share a small 34% of the total farm area. Seventy percent � of the tubewells are installed on the lands of farmers having 1.50 - .I'� .... -- - - more than 10 hectares, while 4% of the tubewells are for those having less than 5 hectares, though this group contains 1.40 74% of the cultivators in the country. Most of the impact of 1.30 the green revolution has gone unnoticed by the small-plot

owning farmers. Lack of financial capability to acquire the 1.20 necessary inputs has lefta large number of small plots of land 1217 12/14 12/21 12128 1/4 1/11 1/18 1/25 unproductive and low-yielding.

EIR February 3, 1989 Economics 17 Commodities by William Engdahl

Behind the strange world boom mous potential world economic power The Anglo-American centers offinancialpower are making a into the hands of an elite. grab fo r control of the metals markets. Some months earlier, one of the the world's most importantrefiners of platinum and precious metals, John­ son Matthey Ltd. of London, was Since the Oct. 19, 1987 stock mar­ dustry sources, there was a consensus forced into reorganization over al­ ket crash, there has been a considera­ among Group of Five countries, ar­ leged abuses. The Bank of England ble boom in world commodity prices. rived at perhaps during the feverish forced the reorganization. Copper, nickel, tin, zinc, and bauxite summer of 1987 when the Dow Jones The beneficiary of that reorgani­ for aluminum all have reached recent index soared to its all-time 2700point zation was the London-South Africa price peaks over the past months, as high, that global equity speculation mining magnate, Sir HarryOppenhei­ funds have fledthe equity markets. was endangering the overall econo­ mer, who, as a result of the affair, From 1979 to about October 1987, my. today is the world's most important there had been a chronic depression in The Group of Five countries, refinerof platinum, an essential ingre­ world mining, and raw material com­ U.S.A. , Britain, Japan, West Ger­ dient in catalyzers for "environmen­ modity prices kept falling as soaring many, France, "reached a secret tally clean" auto production. Interest­ U.S. interest rates and oil prices agreement at that time to 'encourage' ing to note is thatOppenheimer is close plunged the world economy into capital flows away from stock specu­ to Lazard Freres investment banker depression levels, especially after lation and into commodities. The pub­ Felix Rohatyn, whose Lazard partner 1979. World mining capacity had been lic argument was that this would help sits on the board of Minorco, Oppen­ bankrupted or idled since 1980. Be­ the endangered debtor commodity­ heimer's Luxembourg-based holding fore October 198 7, the London Metals exporting countries,actually but it was company, now in the process of taking Exchange (LME), the world's most aimed at strengthening the major in­ over Britain's Consolidated Gold­ important metals trading center, trad­ ternational banks holding that debt," Fields to become the keystone of a ed nickel for approximately $1. 80 per one banker stressed to this reporter. global mining and precious metals pound. The "insider trading" crackdowns in cartel. According to one London metals New York, London, Tokyo, and else­ Rohatyn, a Democrat, was a key analyst, industry average production where were part of the G-5 plan to adviser to candidate Michael Dukakis "breakeven" price is $2.00, meaning force capital out of stock speculation in 1988, while Dukakis was calling for heavy losses for mining producers of into commodities, according to this total economic embargo against South the metal. By January 1989, the LME report. Africa. Rohatyn and Oppenheimer price of nickel had hit an impressive London and New York, the two have some reason to think world met­ $8.50 perpound. poles of world financial power since als worth a big fight. According to a report by London 1919, stand at the center of a global Curiously, at about the same time, metals brokers Rudolf Wolff, West­ reorganization of raw materials pro­ December 1984, certain liberal finan­ ern world stocks of nickel by the end duction, refining, and marketing. The cial interests in New York and London of 1987 were atan alarmingly low eight London Metal Exchange was the fo­ launched a most virulent financial dis­ weeks' supply. They fell further dur­ cus of a turbulent shakeup and forced investment campaign against the ing 1988, assisting the boom in prices. reorganization starting November world's most important minerals pro­ Though less glamorous than gold or 1985, around a liquidity crisis in its ducer--South Africa. Chase Manhat­ platinum, or the "strategic" metals tin markets. Banking sources in Lon­ tan and Bank of Boston triggered the such as cobalt, the base metals--zinc, don say that crisis was triggered from crisis in the rand, by abrupt disinvest­ bauxite for aluminum, tin, copper-­ Washington. It was used by some as a ment in South African bank loans. are the heart of world industrial pro­ pretext to reorganize world metals Does all this add up to an Anglo­ duction. Their prices have been soar­ trading. American power bid to force restruc­ ing since October 1987. Today the LME is unchallenged as turing of world economic power along According to well-informed Eu­ the world metals trade center and price the lines of 19th-century British Em­ ropean and Japanese banking and in- regulator. This concentrates enor- pire designs, only this time globally?

18 Economics EIR February 3, 1989 Medicine by John Grauerholz, M.D.

Hopeful news on blood supply titis-B virus. HPD binds to the enve­ There is progress to report in slowing the spread of blood-borne lope of the virus and probably acts by infections. disrupting the envelope. The psora­ lens, on the other hand, bind directly to the DNA or RNA and therefore should affect both enveloped and non­ enveloped viruses. On the synthetic clotting factor One area which has been highlight­ this problem. One is to develop a non­ front an article in the Jan. 19, 1989 ed by the AIDS epidemic is the more blood-derived clotting factor and the New England Journal of Medicine de­ general problem of infections result­ other is to develop a method of elimi­ scribes the use of a recombinant antih­ ing from contaminated blood and blood nating viruses which may be present emophilic factor in the treatment of products. In addition to HIV, this in­ in blood whether they are detected or two patients with classic hemophilia. cludes such infections as hepatitis-B not. Progress is being made in both Classic hemophilia results from a de­ virus and non-A, non-B hepatitis vi­ areas. fect of a protein called antihemophilic rus. Non-A, non-B hepatitis develops An article in the Dec. 24/3 1, 1988 factor, or factor VIII. Use of concen­ in 5-10% of multiply transfused recip­ issue of the British medical journal , trates of this factor prepared from ients, resulting in 150,000-300 ,000 The Lancet, describes the photochem­ pooled blood have dramatically im­ cases annually in the United States ical decontamination of blood com­ proved the treatment of hemophiliacs alone. ponents containing hepatitis B virus over the past 20 years. Unfortunately , While one problem with non-A, and non-A, non-B virus. In these ex­ 60-80% of hemophiliacs exposed to non-B hepatitis is the lack of a sensi­ periments, diluted plasma samples factor VIII concentrates between 1979 tive serological assay , even such an containing non-A, non-B hepatitis vi­ and 1984 are seropositive for HIV. assay would not eliminate the prob­ rus were treated with a combination of Because pasteurization of concen­ lem. Both HIV and hepatitis-B, for two compounds, known as psoralens, trates and blood donor screening have which we do have such assays can still and exposed to long-wave ultraviolet not entirely eliminated this problem, be transmitted by seronegative do­ light. Plasma solutions of hepatitis-B there is interest in developing a re­ nors. In fact nearly 10% of transfu­ virus were similarly treated and the combinant form of factor VIII. Re­ sion-related hepatitis-B cases and solutions were then transfused into searchers at the University of North nearly 25% of the severely jaundiced chimpanzees. In the six months after Carolina at Chapel Hill tested one such cases result from hepatitis-B virus the transfusions, none of the animals preparation on two patients with clas­ transmitted by donors who are nega­ showed any evidence of hepatitis. sic hemophilia and found it to be an tive for the hepatitis surface antigen. When the an imals were subsequently effective agent for treating these pa­ As for HIV , at least 13 cases of trans­ challenged with untreated virus, they tients. In addition to being an effective fusion-related HIV infection from ser­ developed hepatitis. preparation, the recombinant clotting onegative donors have been reported. These experiments were repeated factor was much easier to prepare for One group which has been partic­ using antihemophilic factor (factor administration and did not provoke an ularly hard hit are hemophiliacs, who VIII) contaminated by the two virus­ immune reaction even in the one pa­ receive both pooled clotting factors as es. Treatment with psoralen and UV tient with a history of previous reac­ well as whole blood transfusions. light abolished the infectivity of the tions to the plasma-derived product. Nearly 90% of hemophiliacs receiv­ viruses without significantly affecting Thus we see that already the re­ ing plasma or clotting factor transfu­ the clotting activity of the concen­ search stimulated by the AIDS epi­ sions have serological evidence of in­ trates. demic is producing benefits beyond fection with HIV or hepatitis-B and A previously reported study the immediate problem of HIV infec­ many of these have active disease . In showed that treatment with a com­ tion. Unless such research is rapidly addition 45-80% of hemophiliacs have pound known as hematoporphyrin de­ accelerated and serious steps are taken biochemical evidence of liver damage rivative (HPD) followed by illumina­ to control the spread of AIDS, these suggestive of chronic non-A, non-B tion with a specificwavelength of red discoveries will be swamped by the hepatitis. light would inactivate certain enve­ magnitude of this epidemic and go for There are two ways to approach loped viruses such as HIV and hepa- naught.

EIR February 3, 1989 Economics 19 Business Briefs

Third WorldDebt As the heads of Mexico's Concanaco store lighting reductions. and Coparmex , Garcia and Ocejo issued a Because of InternationalMonetary Fund Mexico to take tougher I 55-page report to President Carlos Salinas programs faithfully implemented by all re­ de Gortari . The document recommends cent Argentine governments, the country's negotiating stance? modification of the foreign investment law basic infrastructure has seen no investment that now requires 51% of all shares of any for a decade. Mexico may up the ante in debt renegotia­ company to be owned by Mexicans; de­ tion talks with the banks, according to Sal­ struction of state monopolies; a complete end to all price controls; bringing private omon Brothers . Health Care The investment firm has just issued a investment into areas now dominated by the government; removal of the government study entitled, "Mexico: Now Come the Bentsen warns of Fireworks," in which it is forecast that Mex­ from the Federal Electricity Commission; ican chief debt negotiator Jose Angel Gurria reduction of government spending; and giv­ fund bankruptcy may put on the table a "demolition bomb" ing the Bank of Mexico complete autono­ at the next round of talks . my . According to an aide to Sen. Lloyd Bentsen, The report says it believes Gurria will In other words , the complete privatiza­ the senator is warningthat "we are looking demand that the banks capitalize up to 80% tion of the economy and delivery into the at the bankruptcy of the Hospital Insurance of Mexico's interest payments due during hands of foreign "investors." Fund in the not-too-distant future." The fund the next six years-that is, the banks will that pays all government reimbursements for simply pay themselves the interest, and add hospital care of Medicare patients is pro­ it to the nominal total of Mexico's debt . jected to become insolvent in the next dec­ He may also demand that interest on all Energy ade or so. the loans be set not at approximately one Committee chairmen in both the House point above the London Inter-Bank Over­ Argentina suffering and the Senate have expressed strong con­ night Rate (LlBOR) , but at a rate based on cernabout the situation. Proposed remedies the average rates of inflation in the devel­ electricity shortages range from a tax increase to delaying eligi­ oped countries-presently much lower. bility for Medicare to the age of 67. Argentina is suffering from a severe short­ The fund's trustees estimate that interest age of electricity, and U.S. experts have on the reserves will keep the fund solvent been called in to assess the situation. until at least 1995 , but that it will probably 'Free Market' Public Works Minister Rodolfo Terrag­ be unable to pay all its bills shortly after the no invited a group of four U.S. electricity tum of the century . specialists to Argentina help solve the crisis. Heritage Foundation to The amount of money being paid out is They will inspect the Salto Grande hydro­ expected to rise steeply after 1995 , aggra­ host U.S.-Mexico meet electric dam 350 miles northeast of Buenos vated by expected increases in the number Aires, which has been reduced to minimum of older Americans and in the costs of health Mexican journalistCarlos Ramirez, writing functioning due to lack of rain and a drop in care. in El Financiero Jan . 21, reported plans for water levels in the Uruguay River. The dam, Henry Aaron, a senior economist at the a secret Jan. 25-27 conference run by the located on the river separating Argentina Brookings Institution, commented, "If it Heritage Foundation, to bring together the from Uruguay, has only 3 of 14 turbines in were an S&L, you would say that it's now top "free market" oligarchists of the U. S. operation, and the lake is almost empty. insolvent. " and Mexican business communities. Ac­ The U.S. team includes: David Pum­ cording to Ramirez, the organizers of the phrey, director of international assessment conference had hoped to keep it secret until for the Department of Energy, James Brown afterit had occurred. of the Office of Energy Emergencies, Ron Agriculture In attendance from Mexico were: Ed­ Keuther, a member of the North American uardo Garda Suarez and Jorge Ocejo, pres­ Electric Reliability Council, a group found­ China will increase idents, respectively, of Mexico's two most ed after power outages hitseveral major U.S. important business organizations , Concan­ cities, and Robert Griffin, manager of the farm investment aco and Coparmex; Jose Angel Conchello, Bonneville Power Administration. a top businessman and leader of the neo­ The electricity shortage has led to elim­ The People's Republic of China will in­ fascist National Action Party (PAN); and ination of night sportsevents, only four hours crease its investment in agriculture, despite Enrique Krauze, who recently made news of television broadcasting per night, three­ a national credit squeeze imposed by the by demanding a total purge of the ruling PRI to five-hour outages in Buenos Aires and Bank of China, the China Daily reported partyof all nationalists. other major cities each day , and street and Jan. 21.

20 Economics EIR February 3, 1989 Briefly

The Agriculture Bank of China opened boldness in resisting the U.S. demands. The a meeting in Beijing to discuss how to get newspaper Thai Rat editorialized Jan. 21 • 2,000 SCHOOLCHILDREN in the funds for the increased investment, in an that Thailand cannot allow itself to be an Massachusetts are homeless, ac.cord­ effort to turn around a four-year stagnation underling of the United States because the ing to a state Department of Educa­ in grain production, now at around 394 mil­ United States betrays every friend it has ever tion study. Boston is said to have a lion tons. Cotton and edible oil production had. total of 138 homeless children en­ have also dropped sharply. By 2000, China "The firstexample is President Ngo Dinh rolled in school . However, the study will need 500 million tons of grain a year to Diem of Vietnam," said the editorial . "Next excluded children who are outside the feed its people . is Prime Minister Nguyen Cao Ky of Viet­ social care system and the education Deputy Governor Wang Jinshi said the nam , who is now living as a second-class system. Agriculture Bank will increase farm invest­ citizen selling hot dogs in the United States. ments by $2.47 billion, up 21.8% over last The Shah of Iran, the king of kings and a • YASUHIRO NAKASONE, the year. Rural Credit Cooperatives will in­ loyal friend ofthe United States, again could former prime minister, is the latest creaseinvestment in farm businesses by $2.2 hardly find a hospital to admit him when he target of the insider trading scandal billion. The total increase in investment is was ill. Chiang Ching-kuo, the son of Chiang around Japan's Recruit real estate 68% over last year, Wang said. A high per­ Kai-shek, remained loyal to the United States firm. Japanese media report that he centage of funds will go to purchasing grain, until he was abandoned because the latter received $800 a month from the firm cotton, oil, and other products from farm­ shifted its stance from Taiwan to court main­ from 1982 through 1988. ers , with banks now trying to redeem the land China. The most recent victim of an­ $500-800 million in unpaid "IOUs" the gov­ other shameful U.S. act is President Ferdi­ • 'POLAND needs money ,' was ernment owes farmers for crops already de­ nand Marcos of the Philippines, who pro­ Polish Premier Mieczeslaw Rakows­ livered to government agencies. Last year, tected U.S. interests all of his life. Now an ki's blunt message to the West Ger­ farmers were paid only 20-40% of what they exile in the United States, he is being sent to man government. Rakowski spent were owed for delivered crops. court and will probably end up in aU. S. four days in talks in Bonn, and warned Meanwhile, it has been announced by prison. I have to refer to what Mrs . Imelda that without new Western credits , the grain cartel giant Cargill that it is open­ Marcos, 'The Iron Butterfly ,' said: 'The Gorbachov will fail. "The fate of per­ ing China's largest edible oil processing plant United States is killing my husband.' " estroika," he said, "will also be de­ as a "joint venture" with Shandong prov­ The United States is "going bankrupt," termined in Poland." Rakowski called ince . concludes the editorial. "Why should Thai­ foreign debt a "blood-drain for Po­ land be dragged along?" land," and said his country needs "several billion dollars urgently ." Bonn officials promised credits and Trade exports. Science Reagan applies • MOSCOW gave prominent cov­ sanctions to Thailand First clear photo erage to an interview with the head of South Korea's Hyundai Group, of DNA molecule Chong Chu-yong, also chairman of President Reagan, on his final day in office, the Federation of Korean Industrial­ withdrew import duty concessions from eight The first high-resolution image of the DNA ists. The interview was fe atured in Thai products, in retaliation against Thai­ molecule, magnified I million times, has the Jan. 12Izvestia. Chong discussed land's failure to satisfy American demands just been published by a team of California how South Korean businessmen want that U.S. computer software and pharma­ scientists in Science magazine. to build up Siberia and the Far East, ceuticals exports be given "intellectual The team used a scanning tunneling mi­ in response to Gorbachov's plans. property" protection. croscope, which can record details as small In a separate statement, then-Trade Rep­ as a single atom. • A STUDY commissioned by out­ resentative Clayton Yeutter warned that un­ Rod Balhorn of the Lawrence Liver­ going U . S. Trade Representative less Thailand changes its policy significant­ more National Laboratory team said, "This Clayton Yeutter (Secretary of Agri­ ly in the next few months, the countrywould is the firsthigh-resolution picture where you culture-designate), has designated be a priority target for stronger action under can see the detailed, twisting structure with­ South Korea for possible sanctions the 1988 U . S. Trade Act. The eight products in aDNA molecule ....Ever since Watson because Seoul restricts imports of will now face import duties averaging 5- and Crick proposed the structure of the DNA American telecommunications prod­ 10%, but in some cases as high as 20%. molecule, everything has depended on de­ ucts. The sanctions would most like­ But Thai press have been praising Thai duction without actually being able to see ly take the form of 100% duties. Premier Gen. Chatichai Choonhavan's it. "

EIR February 3, 1989 Economics 21 �TIillStrategic Studies

Why To kyo can not bail out George Bush

by Lyndon H. LaRouche, Jr.

Once upon a time, in a mythical nation, the population was There are two problems. Presently, Mr. Bush's Washing­ being decimated by a cholera epidemic. Curiously, none of ton, and Tokyo, are considering only one of these problems: the few physicians in the country was permitted to interfere How long can the next U.S. financial crash be postponed, with the progress of this epidemic. The population and gov­ even by aid of the most drastic, Japan-funded bailout mea­ ernment hadgreat faith in their witch-doctors; the physicians sures? The second is, of course: How can the problem be were told not to interfere with local customs. Today, that solved, rather than merely delayed? nation is to be found nowhere on the map. The administration begins with the same tactic which has During 1988, and recently, Japan has acted massively to been used by the Reagan administration since the outbreak delay a new U.S. financial crisis. This was done for the of the Mexico crisisof 1982: stall, stall, stall, and stall some included purpose of ensuring that George Bush was elected more. Apparently, Mr. Bush's circles include those who are in November 1988. In Tokyo's view, Bush represented the aware this stalling-game can not be continued indefinitely. prospect of institutional stability of the United States. Tokyo The indications we have concur with what we hear from has continued to bail out the United States since the Novem­ relevant levels in Tokyo: The new administration is looking ber elections, and is inclined presently to continue doing so for a period of continued stalling of between six to twelve for months to come. months, while it lines its financial-policyducks up in a row. Were Tokyo to cease supplying absolutely massive finan­ The unfortunate facts are,first , that the new administra­ cial bailout for the United States, U.S. financial markets tion may not have six months' margin for stalling. Second, would go quickly into a tailspin as deep as that of October so far, what is being proposed as prospective solutions, around 1987, and probably deeper. Any margin the new administra­ the incoming administration, is cures as bad as the disease: tion has for continuing the Reagan administration's post­ witch-doctor stuff. October 1982 monetary stalling-tactics, depends on massive Furthermore, the kind of stalling which the Reagan financialbailout sums from Tokyo. administration has done over six years , and which the Bush The question is: How long can Tokyo continue to bail out circles project for another six to twelve months, carries a the United States? Some.around Washington think: perhaps penalty. another twelve months, probably at least six. Both Tokyo The method of stalling used, is to delay the inevitable day and Mr. Bush's Washington are overconfident. I agree, that of reckoning by methods akin to proverbial Russians throw­ it is possible for Tokyo to postpone the next major U.S. ing babies out of the troika to the wolves: using up precious financialcrash for as long as six months, even slightly longer; financial and economic resources, thus making the problem however, that possibility depends upon certain factors out­ much worse, simply to buy delay. Reagan administration side the control of either Tokyo or the Bush administration. stalling has transformed the still-manageable international

22 Strategic Studies EIR February 3, 1989 financial crisis of 1982 into a crisis which has become today analysis. Measure the relevant developments in the U.S. absolutely insoluble within the terms of the existing monetary economy, since the fourth quarter 1967 , as follows. and financial system. Begin with standard per-capita content ofmarket-baskets All of the necessary measures for solving the internation­ for the average of the years 1967-1970. Limit the content al financial (debt) crisis of 1982, were detailed in my August measured to physical content of producers' and households' 1982 Operation Juarez report. Had the same resources used market-baskets, respectively. Include as categories of con­ up since 1982, in the ultimately futile stalling-tactics, been tent net quality of depreciated improvements in physical in­ used instead as means for solving the problem, the world vestment in plant, machinery, and equipment, and net quality today would have the entirety of this financial crisis behind of depreciated improvements in basic economic infrastruc­ us. ture . Operation Juarez is still today implicitly the model for Using these standard market-baskets as measuring-rods, the needed general monetary, financial, and economic re­ define the changes in per-capita net physical product of the forms. The difference is, back then the measures of reform U.S. economy over the period 1970-1988. Measure this both required of the United States were chiefly limited to matters per capita and per hectare: net physical output, both per capita of foreign policy; today, the measures proposed to Central and per hectare . and South American nations, must be taken internally by a Determine the current prices of those market -basket con­ United States whose financial and economic crisis is analo­ tents during each of the years during this interval. gous to that of Mexico in 1982. Today, under present inter­ Define the combined public and private debt ofthe United national monetary structures, the United States could never States per capita and per hectare. Definethe combined public meet its combined domestic and foreign, public, and private and private debt-service percapita and per hectare. debt-obligations. Compare the gross price-value of physical outputas mea­ We shall report, next, on the reasons Tokyo might be sured in terms of 1967- 1970 market-baskets (without the unable to delay a major U.S. financial crash at any price. hoax of quality adjustments used by the Department of La­ Then, we tum our attention to the witch-doctors, the so-called bor), with the percentage of this output (income) allocable to economists. debt-service. Adduce the trend-lines so defined, to show ratesof change, Popping the big bubble and rates of rate of change. The underlying problem is, that the international mone­ That definesthe financialbubble in the simplest possible tary system as a whole is the biggest John Law-style financial competent terms of reference. That definesthe U . S. domestic bubble since the great financial crash of fourteenth-century economy as presently operating way below the breakeven Europe. The other leading problem is, that certain European­ point, and falling rapidly. based financier powers intend to pop the bubble, as a means This also shows that all officialreports of U . S. economic for breaking the sovereignty of the United States, and for growth since October 1979 have been false. In physical terms, putting the United States itself under the same general kind no net economic growth has occurred during the past ten of International Monetary Fund "conditionalities" now ap­ years. If we take fully into account the depletion of basic plied to debt-ridden Third World nations. The key additional economic infrastructure, the economic contraction has been problem is, that certain powerful elements of the U.S. estab­ continuous since approximately 1970. lishment are prepared to serve as accomplices in this sort of What has been reported as growth is increase of Gross operation. National Product (GNP). GNP is a very misleading yards­ This set of circumstances poses the question, whether the tick, since it measures only the net money-difference be­ combined resources of a Bush administration and Tokyo tween purchases and sales: so-called Value Added. (This were sufficient to resist a really determined effort by the does not include households, which, if taxed in the way relevant European financier forces? The plotters against the businesses are , would have usually no income-tax liability.) United States have the advantage of reversed financial lever­ The fallacy of GNP measurements is illustrated by the age. following hypothetical case: In brief, if the European financier-plotters behave them­ Imagine the case, that General Motors shut down all of selves, Tokyo subsidies might enable the Bush administra­ its manufacturing and related capacities, but reemployed all tion to stumble through an additional six months or even of its production employees in sales and administration at the slightly longer, without a catastrophic financial crash. How­ same wages they had received as factory employees. Presum­ ever, if the European plotters proceed, with aid of critically ing General Motors sold its administrative services to earn placed accomplices inside key U.S. institutions, Tokyo lacks the same margin of net operating profit it had gained while the resources to delay such a financial crash even during the still producing, the Value Added of General Motors would short term. be approximately the same as before the change. The magnitude of the financial bubble is the key to this This result might satisfy General Motors' stockholders,

EIR February 3, 1989 Strategic Studies 23 but what would be the effect upon the U. S. economy as a would be approximately $4 trillion. Farms and manufactur­ whole? ing have suffered a net contraction-collapse of a similar kind Although the illustration is hypothetical, what it illus­ and degree . A very large part of what the U.S. economy has trates is not. This example illustrates the kinds of shifts in treated as annual income, over the past 18 years , has been employment which have occurred within the U. S. economy spending used-up past capital investments for the currentcost as a whole since approximately 1970. The net result is that of living. We have been counting as current incomes the bills indicated by the outlined calculations, above. we have not been paying for repair and maintenance of those From firm to firm, the GNP accounting causes the kind capital investments on which the continued operation of the of result shown in the hypothetical General Motors case to economy depends. be a contribution to GNP by that firm's nominal Value Added. This recalls the looting of the New Haven railroad, some The sum total of those individual results , for the economy as decades back. a whole, is, in reality , a disaster. Something is very wrong During and following World War II, interests including with the GNP method of national accounting. the Dumaine family had rebuilt the New Haven to financial Admittedly, each year, various relevant official and pri­ and operating respectability. Then, came a group of corpo­ vate agencies combine their efforts to refine the raw GNP rate raiders , who baited the hook for New Haven stockholders estimates . Inflation-adjustments are most notable. The re­ with promises of larger dividends. sults of the outlined calculations, above, should be compared The procedure was simple. Maintenance is the big annual with the annual deflators used by officialagenc ies. More than bill of any railway-or airline-which wishes to continue in ten times $5,000 is needed today, to supply the same real sound operations. The corporate raiders , after taking overthe level of income after deducting debt-service charges that New Haven, slashed maintenance. Rolling-stock which $5 ,000 annual income of households represented in net pur­ needed repairs, was simply abandoned on sidings; other "cost­ chasing power in 1950. By the same standard , the net rate of cutting" measureswere of a similar nature, done in a kindred inflation has risen under the Reagan administration, and has spirit, and with a kindred ultimate effect. never fallen. The paid-out dividends increased; the price of New Ha­ To the degree that inflationhas appeared to level off under ven stock rose accordingly. The raiders unloaded stock-hold­ Reagan , this has been accomplished in ways which conceal ings at fat profits , and then left a pile of wreckage behind apparentinflation-rates at the store , by reduction of payments them which has not been repaired since. against the actually incurred costs of production. Cutting Such is, in net effect, the apparent growth of the U.S. down on needed repairs and other maintenance of capacities economy as a whole during the past 18 years . actually used in production, is one way of concealing infla­ "Deregulation" is an example of the same thing done to tion in the short term, to have the effect of concealed inflation the New Haven railroad. Declare a "free market." Force the erupt in full , accumulated force , at a later time. We explain, prices of the industry down. Meet the resulting reduction of aftera few more needed remarks on GNP accounting as such. unit operating income, by looting depletion funds which These wide margins of error in official estimates for in­ should have been spent on maintenance and replacement o� flation, are caused partly by politically motivated faking of obsolete equipment. So, we have commercial aircraft oper­ data. The more important factor is, as we have indicated, and ating beyond the extremes of their expected useful life, and for the reasons we have indicated , the intrinsic fallacy of more costly to maintain properly than the cost of acquisition measuring national growth in GNP. of a new replacement. Concentrate now on the ratio of the two functions we The same was done to U.S. agriculture. Drive the price outlined above: increase of debt and debt-service rates, per of agricultural product below the farmers ' net cost of produc­ capita and per hectare; change in physical output, measured tion, and keep this up until mass-foreclosures take over. in market -basket units , per capita and per hectare . Look more On paper, the zooming percentage of debt-service de­ closely at the components of cost in the production of those mands on income, per capita and per hectare, could be met market-baskets. by savage reductions in payments for costs other than debt­ We have already indicated the immediate problem posed service. In reality, it is not so simple. The added debt-service by the ratio of these two functions , to be the impact of debt­ margins must come from old�age pensions , wages and sala­ service margins on the money-value of actual market-basket ries, maintenance, and direct non-labor operating costs. When content. How much can debt-service payments by farms, the ration of income after payments of taxes and debt-service industries, and households be increased, without causing the falls below the level of real purchasing power needed to physical economy to collapse? maintain operations, operations soon cease. During the recent 18 years, we have depleted basic eco­ In a national economy, the economy as a whole can nomic infrastructure , by lack of repairs , so much so that continue to function, on a reduced level of output, but only today's repair-bill, for restoring quality of infrastructure , per up to a point. capita and per hectare , to 1970 levels of functional quality, At a certain point, the closing down of firms goes beyond

24 Strategic Studies EIR February 3, 1989 tearing off flesh, and digs into bone. Key categories of in­ men!" negotiations. The foreign interests will agree to take dustry simply disappear entirely. When those bottlenecks the worst immediate pressures off the U.S. financial system, develop, the economy as a whole ceases to function. For on conditions. example, imagine the effect of a widespread collapse of the Those conditions signify putting the U.S. government transport industry, or, as is already looming, the production under IMF "conditionalities," in the manner already experi­ of power drops to levels below the minimum required for enced by nations such as Mexico. The federal, state, and industry and other functions in entire regions of the nation. local budgets will be set by foreigners. A foreign-dictated These are only examples of the numerous bottlenecks now "incomes policy" will be imposed upon the U.S. private threatened with collapse. When a few key such bottlenecks sector. And, so forth and so on. In short, the U.S. govern­ are collapsed, this sets off a chain-reaction collapse through­ ment will cease to be a sovereign government, and the United out the economy as a whole. States will cease to be a sovereign nation. The U.S. govern­ The U.S. economy is very near to the point such a chain ment will be a partner in the international monetary system, reaction erupts in the physical economy as such. but the power of the U. S. government will be transferred to We have reached the point, that the current rate of debt that partnership. service can not be met without bringing the U.S. physical Under those imposed "conditionalities," the rate of U.S. economy to , or perhaps even past the brink of chain-reaction debt-service payments per capita will be greatly increased, collapse. That is the price of the stalling which the Reagan even though this means a breakdown in the physical economy administration has done during the 1983-1988 interval. of the United States. That sort of dictated "recovery program" When the point is reached, that the national economy is an imitation of what Nazi Finance Minister Hj almar Schacht depends upon increasing its per-capita debt-service as a pre­ did in pre-World War II Germany. This is the same Schach­ condition for monetary stability, and yet in which increases tian policy which caused Nazi Germany to adopt a murderous in debt-service ratios threaten to set offa chain-reaction col­ system of slave-labor concentration camps. Joseph Goeb­ lapse in the physical economy, the expansion of the financial bels's diaries contain ample explicit recording of Adolf Hit­ bubble has reached a critical threshold. We are at, or very ler's remarks to precisely that effect. near to such a critical threshold now. That occurrence, is the beginning of the end of civiliza­ This brings us to the operations planned by certain wicked tion on this planet. financiergentlemen in Europe. The short-term factors to be considered, include the price of the U.S. dollar, the prices of The two schools of political-economy U.S. public and private bonds, and other financial assets If there is to be a cure for the terrible dangers now facing which are among leading negotiables in world markets. An­ the U.S. and other economies, we must be assured that the other short-term factor, is fluctuations in interest-rates. shaping of economic policy is taken out of the hands of the The U. S. currently requiresan annual inflowof over $100 relevant local witch-doctors, the so-called professional econ­ billion in foreign borrowing. A shaky U.S. dollar means that omists and kindred experts of similar habits and opinions. those inflows will tend to be denominated in foreign curren­ For this to occur, relevant government circles and others, cies, not U.S. dollars. We borrow from such sources as must come to recognize that these putative experts are indeed fiduciary accounts in Swiss banks, and incur liabilities de­ no better than witch-doctors. nominated in Swiss francs, deutschemarks, yen, and so on. The simplest, most direct, andconclusive manner in which What, then, is the effect of a drop in the price of the U.S. to demonstrate this fact, is a summary of the history of polit­ dollar? What is the effect upon, not only the more than $100 ical-economy. The use of this sort of proof is made manda­ billion a yearof new such borrowing needed, but the current tory by the nature of the claims put forth by the putative and principal obligations of the carried forward debt of the economists themselves. For example, they claim that their same kind from preceding years? opinions served as the basis for the successful periods of What if the U.S. dollar takes a nosedive, at the same time development of the U.S. economy, from the beginning. That that U.S. public and private bonds drop similarly, and some is flatly not true. To similar effect, they claim, as Karl Marx major troublesoccur in the highly volatile sector of leveraged did, that economic science begins with Adam Smith; that buyouts (LBOs)? A run against the U.S. financial markets , assertion is absolutely false, and known to be false to anyone under those conditions, is something which would over­ who knows even the barest facts about the history of the whelm the combined resources of the Bush administration subject. and Tokyo. On that account, we are already looking down The beginnings of a systematic notion of economy in the barrel of a financier's gun. Western Europe were the famous census of Charlemagne. The intent of the relevant European financiers, is not to Matters did not progress above that general level until the go all the way with a run on the U.S. dollar. Rather, the beginning of the fifteenth century, in and around Florence, moment that begins to occur, both the United States and the Italy. relevant European financier-sharks go into "crisis manage- The first modem economist was a Greek celebrity at-

EIR February 3, 1989 Strategic Studies 25 tached to the retinue of Florence's Cosimo the Great, George eys, and Friedrich List. "Plethon" Gemisthos. Around the A.D. 1439 Council of Adam Smith was introduced to the United States during Florence, a new quality of statecraft emerged, leading into the late 1790s, by the circles of the leading Barings bank the rise of a branch of study of statecraft called cameralism, representative in the United States, Aaron Burr.These circles during the seventeenth and eighteenth centuries, most nota­ included the East India Company's partners in the China bly. Cameralism is the generic name of the period for the opium trade, the Perkins syndicate of Massachusetts, the successful practices which the Massachusetts Bay Colony Russell syndicate of Connecticut, and the Astors of New built up during the decades preceding the governorship of York. The leading advocate of Smith's dogma in these circles Edmund Andros. The policies of the young U.S. republic was the Albert Gallatin who became the power behind the respecting money and credit, for example, were reaffirma­ throne in the Jefferson and Madison administrations. How­ tions of the principles of practice from the pre-Andros Mas­ ever, the economic disaster which Jefferson's and Madison's sachusetts Bay Colony. support for "free trade" left behind, prompted the United Meanwhile, during the last quarter of the seventeenth States to return to the American System under Monroe and century, there was a revolutionary advance in political-econ­ Quincy Adams. The American System was the policy of omy, Leibniz' s elaboration of a science of physical economy. Henry Clay's Whig Party, and of Abraham Lincoln. The influenceof this was embodied in U.S. Treasury Secre­ The influence of the American System waned rapidly tary Alexander Hamilton's December 1791 Report to the after the late 1870s implementation of the U.S. Specie Re­ Congress, On the Subject of Manufactures. It was then that sumption Act, as monetary and financial control over U.S. the name American System of political-economy was mint­ internalaff airs came increasing under the foreign domination ed. of Anglo-Dutch and Swiss bankers, with the Anglo-Dutch Adam Smith appeared very late in the history of political­ predominating. The control of the political power represent­ economy. He had been an obscureScottish professor of Dav­ ed by great fortunes fell into the hands of those closely tied id Hume's empiricism, until he was picked up, in 1763 , by to the East India Company's successors abroad. the Second Earl of Shelburne, and assigned to travel to the Around the tum of the present century, the leading uni­ circles of Hume's and Voltaire's Geneva and Physiocrat cro­ versities of the United States veered away from their earlier nies, to pick up some rudiments of their brands of political­ close ties to France and Germany, especially away from economy. Shelburne, perhaps the most evil man in England, German ties, and modeled themselves as virtual extensions second to his protege Jeremy Bentham, during the late eight­ of Oxford and Cambridge. eenth century, was a chief political representative for the Under these circumstances, the institutions of finance, interests of the East India Company, who managed British the great concentrations of family wealth, and the principal politics by buying up the relevant figures, with funds chan­ banking centers, represented the Haileybury tradition in dog­ neled chieflythrough Barings bank. The purpose of the proj­ mas of economic practice. This transformation was felt also ect to which Shelburne assigned Adam Smith, was to elabo­ in the Washington governmentalbureaucrac y. As new forms rate a scheme for ruining the economies of both the North of U . S. central banking emerged, consolidated as the Federal American British colonies and France. Reserve under President Wilson, U.S. financial and mone" The approved project was presented in 1776, as the East tary policy was thoroughly dominated by the tradition of India Company propaganda-tract against the Americans, Haileybury . Adam Smith's Wealth of Nations. Thus, the chief proximate In addition to these influences on cultivated economic cause for the U. S. War of Independence was the set of East thought in universities, government, finance, and so on, the India Company policies for which Smith's Wealth of Nations 1890s saw the beginning of a powerful direct influence of was an apology. British Fabian socialism, including such influential figures The tack taken by Smith became the starting-point for the as John Dewey, Charles A. Beard, and Walter Lippmann. East India Company's training-center for its agents, the Hail­ For these socialists, the defaming of the U.S. Founding Fath­ eybury school. Followers of Smith and Jeremy Bentham at ers was a favorite sport. this school included Thomas Malthus, David Ricardo, James Although the heritage of the American System was pro­ Mill, and John Stuart Mill. In practice, it also includes the gressively undermined during the past hundred years, its Karl Marx who hated the American System, and praised traditions did not begin to die out within U.S. agriculture and Smith et al. as "the only scientific" economists before him­ industry until the beginning of the great radical "cultural self. paradigm-shift" of 1963-70. The popUlarity of President By approximately 1825-1 830, all of the contributions of Kennedy's space-program and investment tax-credit mea­ leading French and German economists up to that time, had sures represents, to the present date, the last gasp of the been formally consolidated under the single roof of American American System tradition of commitment to capital-inten­ System of political-economy. The cameralists generally, sive modes of scientific and technological progress. As the Leibniz in particular, were incorporated in the combined barbarian hordes from institutions such as Harvard Business contributions of Benjamin Franklin, Hamilton, the two Car- School replaced engineering-minded industrial management

26 Strategic Studies EIR February 3, 1989 in major manufacturing firms , and as the influence of both of the labor-force employed in prOducing producers' goods, "post-industrial" utopianism and the radical counterculture relative to employment in production of households' goods. moved in, then, and only then, was the last significantvestige Since producers' goods, the machine-tool sector most em­ of the American System removed as a factor in national phatically, is the transmission-belt by which technological policy-shaping. progress is introduced to the productive process generally, Exemplary of the conflict between the economists and the manufacturer's cost of possession of a usable improved, the industrialists, was the justifiedly contemptuous rejection higher-priced machine tool means, in general, a net saving which the new-fangled art of Operations Research found so on combined costs of capital and labor for a unit of physical quickly among its industrialist clientele. The conflict be­ output. tween "Wall Street" and American industrial management, That example illustrates what ought to be recognized as the manner in which the American System's tradition was maintained in the practice of good industrial management even during the two decades following World War II. It was not until the Johnson and Nixon administrations, that the The popularity qfPre sident professional economists began to take over the shaping of Kennedy 's sp ace prog ra m and national economic policy in depth. The result of their in­ creased influence has been cumulatively a national catastro­ investment tax-credit measures phe. rep resents, to the present date, the In summary of this point, an economist typifies those last gasp qfthe American System who study how to make money, without the least interest in discovering how to earn it. tradition qfco mmitment to capital­ Thus, in modem history, there are two mutually exclu­ intensive modes qfscient ific and sive currents of thought on the subject of political-economy. technolog ical progress. The current which expresses those views responsible for the rise of productivity during the past 600 years, is that associ­ ated with Leibniz and the conceptions incorporated within the American System of political-economy. The opposing view is rooted in the tradition of Chaldean usury, as reflected put most U. S. patriots on the side of the industrial managers. in the Haileybury tradition of Adam Smith, et al. The latter As an industrialist, one "had to learn to get along with Wall view, when influential, has invariably produced disasters. Street," but the arrival of the bankers' team, and the presence of the bankers ' special, designated personality on the roster What is economics? of leading corporate officers, brought the underlying policy The two views outlined, represent opposite starting-points conflicts to the surface often enough. To the industrialists, for the very definitionof "economics. " The American System the professional economists were as visitors from an alien developed out of the kind of emphasis on physical productiv­ world; the Operations Research funny types were what the ity associated with Leibniz's science of physical economy. industrialists distrusted in the professional economists, ex­ The views of Adam Smith and the utilitarians, start fromthe pressed in a concentrated way. assumed preexistence of money. The successful engineering-minded industrial manager Unfortunately, cultish money-theories are not the exclu­ of the 1940s, 1950s, and 1960s had an innate professional sive province of the professional economists. Whoever con­ grasp of the ABCs of economic science, of which the profes­ fesses himself a defender of the gold-reserve system of cen­ sional economists of then and today are incapable. In those tral banking, will soon find himself besieged by querulous days, despite the rule of Wall Street over corporate finance, packs of gold-exchange fanatics, bimetallists, and the like. the day-to-day job of producing a salable product was a To similar effect, the lunatic belief that money can earn matter of applying the principle which Henry C. Carey elab­ wealth by virtue of some potency intrinsicto money as such, orated as "economy oflabor": the use offostering of scientific is widespread. The folly of belief in "magic of the market­ and technological progress, to produce a product of equal or place," is very widespread, which is why disastrous policies better quality at a lower real cost. premised upon that blind faith were so widely tolerated. They understood that increasing the capital-intensity of So, the myth of money must be addressed, head-on, if investments in productive capacity, and employing labor with we are to free this nation of the ruinous pack of policies greater cultural potential for assimilating rapid technological leading us to perdition. advances efficiently, were the essence of successful produc­ Contrary to Karl Marx and his Haileybury predecessors, tion in general. no form of currency, including coin of precious metals, ever In real terms, increased capital-intensity signifies, on the functioned as money within an economy, except in the im­ scale of the economy as a whole, increasing the percentage plicit mode of a negotiable bill of exchange. The difference

EIR February 3, 1989 Strategic Studies 27 between coin and paper currencyis their relative values when mately 10 million individuals. they cease to be used as money. The implications of that observation are summed up , by Our earliest detailed knowledge of the history of money noting, that in terms of state-of-the-art technology available dates from approximately the fourteenth century B.C. The for general employment at the beginning of the 1970s, this evidence is heaps of baked-clay cuneiform tablets and their planet could support a population of between 15 and 25 corresponding envelopes, unearthed from what were osten­ billion persons, at a standardof life comparable to that in the sibly the merchants' quarters of sites of old Hittite cities. advanced industrialized nations of that time. Respecting more That was not the very beginning of what became modem recent millennia, especially the last 1,000 years of Western financial systems; but, records dating from earlier times are Europe, parish records and kindred sources afford us an in­ either lost parchment documents of the Canaanites (Phoeni­ creasingly precise estimate of population-levels and their cians), or are mislaid among unsorted heaps of tablets which demographic characteristics. poorly trained Biblical archeologists unearthed in Mesopo­ Using modem language, the growth of actual populations tamia. is associated with the increase (and occasional calamitous However, we know enough about the usurious practices decrease) of a magnitude best described as potential popula­ in early Mesopotamian cultures, beginning with the Chal­ tion-density. The overriding determinant of potential popu­ deans, to assess the implications of the collection of cunei­ lation-density, is scientific and technological progress. So, form bills of exchange from the Hittite site. since the hypothetical early-Cenozoic condition of society, The origin of paper money, is nothing more than as a mankind's potential population-density had increased by more form of negotiable bill of exchange. Coin is no exception to than three decimal orders of magnitude by 1970, with the this rule; to the degree that coin functions within an economic prospect of a possible increase of more than an additional process, it functions only in the form of a negotiable bill of order of magnitude within the term of less than a hundred exchange. The fact that coins made of precious or valuable years following that. metals might have an economic use other than as money, has It happens, that the generation of a single idea, by an something to do with the use of such coins as a form of individual, which idea has the character of a scientific dis­ negotiable bill of exchange, but that is the only bearing of the covery, implicitly increases the potential population-density minting of coins from precious or valuable metals. The var­ of the entire society. For that and related reasons, economic iants of the populist idea, that paper money ought to be science begins with the notion of the causal correlation be­ limited in issue to a total denomination not exceeding the tween potental population-density and scientific and techno­ price of a hoard of coin or bullion, are nonsense. logical progress. A negotiable bill of exchange has no rational function On this account, studies of animal populations are irrel­ within an economy, except to facilitate the purchase and sale evant to study of society, or of individual human behavior. It of physical goods . Although services may be purchased, one is the self -developing characteristics of society which are purchases services by tendering the means by which the seller elementaryto the definitionof society itself. It is the relation­ of services may secure physical goods. This latter observa­ ship between thecreative powers of the individual mind, and tion might be contested by those unfamiliar with rudiments changes in potential population-density, which is the essen­ of economic science; the principle involved is an important tial function within economic science. one, seldom known, and of general relevance here . We definean economy properly by regard for two possi­ Many contemporary textbooks attempt to define "first ble definitions. As economy in general, as distinct from a principles" of economics in terms of exchanges among two national economy, an economy is an approximately self­ or more persons. As implicit in the outlined calculations contained process. Today, when the functional interdepen­ earlier, and in several illustrations supplied, it has been illus­ dency among national economies is so much developed, no trated that the study of economic processes must proceed national economy is large enoughto be a self-contained econ­ from treatment of the whole of the economic process as omy. National economy is definedby the sovereign, or rela­ primary , and the fu nction of the individual person and trans­ tively sovereign authority of the state over all economic pro­ action defined always in immediate reference to the whole cesses contained within it. The role of national currency, is economic process taken as a functionally indivisible whole. exemplary. In practice, economic science takes both notions For example, it has been calculated by one among the as interactive: the economy as defined by minimal extent of author's associates, that if we might assume that hypothetical an approximately self-contained process; the economy as a "simple hunting and gathering societies" existed during some national economy. In the typical case today , the bounds of primeval Cenozoic period, the average amount of such Cen­ national economy define a special domain, with distinctive ozoic wilderness's land-area required to sustain an average characteristics of functioning, within a larger scale of econ­ individual in a most marginal and precarious existence, would omy definedas an approximately self-contained process. have been approximately ten square kilometers. That would For such reasons, the best rule-of-thumb way to examine put a ceiling upon the living human population, at approxi- notions of political-economy, is to treat a national economy

28 Strategic Studies EIR February 3, 1989 or a choice of economic process (larger than a national econ­ The definition of technology is introduced so. In the hy­ omy), as it were a consolidated agro-industrial enterprise. pothetical case, two powered machines, with the same per­ Since nearly all of the exchanges and other economic matters capita power-consumption-rates, employed for the same pro­ are contained within that "consolidated enterprise," approx­ duction, if used alternately by the same operative, might imating a closed economic process, matters such as the sale result in a higher rate of output using the one, than the other. of services and other intangibles are canceled out of isolated The difference in internal organization of machinery, which exchanges. Instead, services, for example, appear in the ac­ accounts for that difference in performance, is the raw em­ counts as the total amount of services employed by the soci­ pirical definitionof technology. ety. Inevitably, Leibniz correlated this notion of organization For example, referring to the outlined calculation above, with the geometrical definition of physical least-action. That the rate of inflationin a society is a functionof total employ­ correct definition of technology, leads toward a better, more ment, its composition as a whole, and the productivity and intelligible representation of measurable technology in terms ration of the operatives' component of the total labor-force. of the constructivegeometry of the Gauss-Riemann complex There are two approaches to determining the effect of domain. It is sufficientto identify that fact here; further elab- . individual transactions upon the state of the economic pro­ oration of the point is not relevant here. cess as a whole. One approach is that typified by the falla­ These considerations define a primary economic func­ cious method of GNP accounting. This approach attempts to tion, which may be represented approximately in terms of adduce the total as the sum of parts estimated individually. constraints expressed in the form of a system of inequalities: The approach of economic science is opposite; the signifi­ cance of the particular is determined by its immediate con­ 1. The per-capita market-basket of requirements must tend nection to thefunctioning of theeconomic processas a whole. to increase, in correlation with technological progress. For example, we do not add up employment of opera­ 2. The power-density, per capita and per hectare, must tend tives; rather, we examine the effectof the increase or decrease to increase in correlation with technological progress. This of the operatives' component of the total labor-force on the includes a secular tendency for increase of the power density economy as a whole. We examine this in more detail, in per unit cross-sectional area of work. terms of the division of labor within the operatives' compo­ nent: for example, the difference between adding an opera­ 3. There are changes in the composition of employment of tive to employment in the machine-tool sector, as opposed to the labor-force which correlate with combined advances in garment manufacturing. technology and increase of power-density. On condition that By this approach, we are enabled to construct estimates the percentage of the labor-force employed in occupations of economic value which are independent of any information other than those of operatives is not allowed to become ex­ respecting price. The outlined calculations presented earlier cessive, the following set of constraints applies: here, imply such a calculation. a) The ratio of urban to rural employment increases to­ The term economic science is strictly equatable with what ward an asymptotic limit. Leibniz defined as a science of physical economy. That sci­ b) The ratio of employment of operatives employed in ence measures output in terms of the contents of a market­ production of producers' goods increases relative to the num­ basket sufficient to sustain the household of the individual ber employed in production of households' goods. operative at a level of health, longevity, and culture, consist­ c) Within the ration of employment in production of pro­ ent with the level of technology being practiced. The cost of ducers' goods, the sub-ration employed within subsectors production of such unit-value market-baskets in quantities including or proximate to machine-tool production increases. adequate to the needs of the whole population, and to the needs of production itself, is measured in terms of a percent­ 4. The level of technology increases secularly. age of the total labor of the operatives' component of the total labor-force. The function of monetary and related policies, is to shape We measure the costs of production in terms of average the flows of money and credit in such a way as to promote per-capita values of combined producers' and households' the results implicit in such a set of physical-economic con­ goods, and anticipate a gain in such goods, over these re­ straints. Instead of the misguided, but prevailing practice, of quirements, as output of the productive process. measuring the performance of physical economy in terms of In those terms of primary reference, we examine the money, the exact reverse must be the rule. The performance effect of powered machinery upon productivity of operatives, of monetary and related policies of taxation, banking, credit, both per capita and per hectare. The inclusion ofper-hectare and regulatory actions, must be measured in terms of the is required to correlate results with potential population-den­ requirements which these constraints specify for fostering sity. How does increase of the power supplied to machinery, the development of both the individual standard of living and per capita, affect the increase of productivity of operatives? physical economy generally.

EIR February 3, 1989 Strategic Studies 29 ITillFeature

Rome Tribunal names criminals against humanity

On Jan. 19-20, the International Martin Luther King Tribunal on Crimes Against Humanity was founded in Rome, Italy. Some 200 political, military, scientific, and religious leaders vowed to wage a victorious war against the institutionalized powers of Satanism in the world today. Helga Zepp-LaRouche, the founder of the Schiller Institute, set the tone in her keynote speech, with a call for a worldwide campaign to "kill Satan !" The conference took place on the initiative of those committed to stop the political frameup and judicial murder of Lyndon LaRouche, who was sentenced to a 15-year prison sentence one week after the Tribunal. LaRouche was jailed in Alexandria, Virginia on Jan. 27. The conference proceedings documented that those Establishment figures who perpetrated this travesty of justice against LaRouche, are the same who are re­ sponsible for the ongoing genocide in the Third World and the "New Yalta" accommodation with Moscow. Expert testimony was presented by participants from Italy, Lithuania, the Ukraine, West Germany, Australia, Spain, Great Brit­ ain, Panama, Ethiopia, the United States, and Zaire (see accompanying articles). The conference concluded by naming the names of those behind the conviction of LaRouche. Anno Hellenbroich of EIR ' s Wiesbaden Bureau, a long-time asso­ ciate of LaRouche, submitted the following list of criminals, some of whom have been active in "dirty tricks" against LaRouche for as long as 20 years: • McGeorge Bundy, former White House national security specialist and onetime head of the Ford Foundation. Bundy, sometimes called "the chairman of the U. S. Eastern Establishment," has pursued a vendetta against LaRouche since he broke up one of Bundy's "New Left" projects in 1968. • Henry Kissinger, who as secretary of state intervened in the mid- 1970s to have LaRouche's associates branded as a "violence-oriented group" by the FBI. • The international bankers associated with the notorious Bohemian Grove Satanic rite, who mobilized against LaRouche's Operation Juarez plan to resolve the Third World debt crisis in 1982. • The pro-Soviet Armand Hammer, who funds Raisa Gorbachova's "cul­ tural activities"; whiskey baron Edgar Bronfman, brokering Israel's deal with the Soviets; and West German Foreign Minister Hans-Dietrich Genscher.

30 Feature EIR February 3, 1989 Demonstrators in Washington, D.C. on Martin Luther King's Birthday, Jan . 16, draw international attention to the U.S. Justice Department's political persecution of LaRouche. Their demand fo r a pardon fr om President Reagan went unanswered .

• Prince Johannes von Thurn und Taxis and his wife being trampled upon." Gloria, who personally threatened Lyndon LaRouche and A second resolution, addressing the chilling evidence Helga Zepp-LaRouche. presented on Soviet human rights violations, called on the • The government of the U.S.S.R. Hellenbroich re­ Italian government 1) to repudiate the Ribbentrop-Molotov called the savage Soviet press attacks against LaRouche from Pact of 1939 and its implications; 2) to fully rehabilitate all 1983 to 1987. Meanwhile, in the West, the media salon political prisoners from EasternEurope; and 3) to prevent the associated with investment banker John Train has worked proposed human rights conference from taking place in Mos­ in tandem with "journalists" like Pat Lynch and Dennis cow . King to manufacture filth against LaRouche. Using these At the close of the proceedings, Helga Zepp-LaRouche press slanders, a corrupt criminal justice system, led by peo­ summarized two days of deliberations with the following ple like the Justice Department's Mark Richard and Ste­ words: "Surely , every one of you is deeply moved. Some­ phen Trott, organized the frameup which resulted in La­ times you feel you do not have enough tears to cry for all the Rouche's Dec. 16 conviction on conspiracy and fraud. horrors in the world ....You have to decide whether you "I accuse them not only of wasting millions oftax dollars, will run and hide or join this evil, or fightit and be victorious. but also of treason, of misuse of the Department of Justice," Regardless of what sentence is issued against Lyn on the Hellenbroich said. "If this frameup is not reversed, the United 27th, we will continue until victory. Other moments in his­ States will move into a fascist dictatorship." tory have been as dire: the end of the Roman Empire, when Christ was crucified, and the Gnostics tried to take over Appeal to the forces of Good Christianity. But they were defeated. On the basis of the information presented in the hearings, "Today, we are in a better situation, because of the fact the Tribunal voted up several resolutions for international of our international organization, which is putting together circulation. The first was addressed to Pope John Paul II: the good forces in the world to fight evil. All I can tell you "Your Holiness: We address this message to you to invoke is, you should take the evil you have heard about these two your aid in this tragic case. Mr. Lyndon LaRouche has been days, and take it into your heart. Don't block it, be strength­ unjustly condemned by a court in Alexandria, U.S.A., be­ ened by it, and become universal persons in the sense that cause he dared to denounce by name the forces which are Lyn described Brunelleschi and others: universal persons fighting against life and liberty, both in East and West. This accomplishing universal acts. If we can do this, we can reach man's life, if he is jailed, will be in very grave danger. We the Age of Reason. You should leave this conference with a beg you to do all in your power to prevent such a thing from sense of shock and with new knowledge, but also with cour­ happening, and to prevent human rights from once again age. Be courageous and happy."

EIR February 3, 1989 Feature 31 A call fo r a worldwide campaign to kill Satan

by Helga Zepp-LaRouche

This keynote speech to the Rome conference was delivered of the moral senility and moral decay of our world. There are on Jan . 19. reports known to governments in Western Europe and the United States-which we also know, and we know that they Dear friends of the Schiller Institute! know-that there is one country for sure in Africa, where This tribunal is urgently necessary to begin a process of 60%of all people are already infected with AIDS, and if you re-establishing truth and natural law to govern world affairs. take the doubling rate of eight months, and if you take the We are holding this tribunal in the tradition and spirit of the increase in infection rate as the ratio increases, you can ac­ civil rights movement and Dr. Martin Luther King, in order tually say, that this country is as good as dead right now ! to show, over the course of two days, that it is not Lyndon Some people enjoy that. They look at it with great plea­ LaRouche who is guilty, who has been convicted in an un­ sure and say, finally these inferior people are dying out! precedented political show-trial , but exactly those who have There are some areas, some regions in Africa, where harassed him and his organization and who are the ones civilization has collapsed up to the point that villages don't behind the legal attack. exist any longer, only gangs of men who, because they are You will see, that it is a combination of Bolshevists, physically still in a position to do so, have banded together Communists, and liberal bankers in the West, and-which and are looting whatever is left for food. The entire continent to some of you may come as a surprise, for others not-that is dominated by vicious hunger, where babies only are born actually Satanism as a political factor in world politics is part to die a couple of days or weeks later from a disease which of the problem we are dealing with. finds ever new multitudes, and from a locust plague which It is more than urgent to reverse what could be called the was completely avoidable and known to the international Zeitgeist, the spirit of our times, because it is this Zeitgeist financial institutions and world organizations and could have that has thrown the world into an apocalyptic crisis, and the been stopped a long time ago. entirety of human civilization threatens to go under if these It's even worse than that! These financial institutions policies are not reversed. Man cannot continuously violate have written off Africa! They have written off most of the the order of creation. Behind this present misery in the world , developing countries. They deliberately use the food weap­ is at best the indifferenceof the leading institutions, and more on; i.e., they have cut down world agricultural production in often the intent to cause this misery. order to be able to control nations and peoples with this food weapon. They are fully aware that, when the bankers made The deliberate destruction of nations the decision during the last year to cut off Africa entirely If you just look at the world in totality today , you find from credit, that this was as good as condemning 450 million tremendous suffering, a tremendous amount of actual killing people on this continent to death ! of human beings. The most blatant situation is without any If you look at the IMF conditionalities, this is also a case question the condition of the developing sector, where not in which people fully know what the implication would be; long ahead into the future , the life and very existence of 3 it would mean to reduce the number of people, and you look billion people is threatened. If you look at the African conti­ at countries which are the worst, like Bangladesh or certain nent, it is more than you can take into your heart, more tears parts of Brazil, and you see, as an immediate consequence of than you can possibly cry . This continent is dying before the financialpolici es, starvation and death. eyes of the world public , and everybody-the governments, But this is only one area of the problem. Another one is the parties, the politicians, and the average citizen-knows the spread of the international drug traffic and the associated that the African continent is condemned to death and nobody narco-terrorism, which is not only destroying the minds and does anything about it. For me , this is one of the yardsticks souls of our children and many other people, but in countries

32 Feature EIR February 3, 1989 like Colombia or Peru , where the drug traffic and the terror­ ism is run both by the CIA and the KGB , the strength of the drug-traffickers and the guerrilla forces has already become so great that they are threatening the authority of the govern­ ment and the Army . So, the condition that is prevailing is complete lawlessness and the terror of the fittest.

Communist system is collapsing There is also tremendous suffering and hardship, hope­ lessness and oppression in the Communist dictatorships, where again most of these countries are hit by savage food short­ ages. Maybe the worst hit country in the Communist bloc is Romania, where the cruel fact is, that babies are dying at such a rate , that they are only registered as born eight weeks aftertheir date of birth, because it is not worth the paperwork for the Communists to register them earlier. The entire East bloc is at a point of social unrest because of food shortages. Yugoslavia is facing a civil war; people are hungry and this is fueling ethnic conflicts. In Armenia, contrary to the illusions of the fools in the West who jumped in a big hypocritical move to help the victims of the earth­ quake, the Red Army has shamelessly used this situation to Helga Zepp-LaRouche: "No I'IUltterwhat the enemy is planning, conduct genocide against the Armenians, like a collapsing we will make sure that one way or another, the ideas and empire, which is trying to control their failing system. Look programs of Lyndon LaRouche will be realized." at the ongoing genocide in Afghanistan, where also the world is fully aware or could have been aware , and is looking at it silently, and doesn't care. Moral and economic crisis in the West The Communist system is collapsing, not today or to­ The world has come to this point because of a gigantic morrow, but it is an unraveling process in the entire East bloc moral crisis of the West. It is especially since the last 20 years which is not going to stop; a similar, although slightly differ­ that this problem seems to have gotten totally out of control. ent, process is occurring in mainland China. They are show­ Now, there is a new President in the United States. Tomor­ ing all the signs and the symptoms of a collapsing empire, row , there will be a new administration, and they think they very much like in the last phase of the Roman Empire, trying have the power, that they are the keepers of the power, that to play off the minorities against each other and using purges they have the means to solve all of this, but they are sitting and other cruelties. in front of the biggest financial crisis, and since they, up to The irony is that the West is absolutely not prepared to the present, have refused any of the reform proposals we use this. On the contrary: The Western elites are willing to have proposed, this financial system is definitely finished. give world hegemony to Moscow, at a point that nobody who The U. S. banking system is bankrupt, and the dollar and the really wants to see it, can overlook all the signs that Moscow entire Western banking system have only been maintained is trying to implement the Ogarkov Plan and achieve military through the brutal looting of the Third World countries and superiority very quickly. They are developing a crash pro­ the support of Japan for the U. S. and the Federal Republic of gram for their version of the SDI. They are developing new Germany, and so forth . So it will be only a question of time, weapon systems based on modem physical principles, radio­ when the system comes down. frequency weapons, electromagnetic pulse weapons. They The Anglo-American establishment has made a deal with are training sp etsnaz troops so that they either can use this Moscow to rule the world as a condominium, to have a kind military superiority directly, or use it as a blackmail threat, of supranational one world government, global crisis man­ to squeeze out of the West whatever they like. So the West agement, and they think they can keep control. But already reacts to this by going for unilateral disarmament, and the now it is evident that what is at stake is a huge fight with media, which are largely Communist subverted, are using continental Europe over the question of "Europe 1992," be­ this, to spread a Gorby mania, so that about 80% of the foolish cause the new American administration does not intend to people in the press like Gorbachov and think he is really share its power with a new independent force in Europe , and peace-loving. we will go into periods of trade war. The fight over agricul­ The reason why the Western elites are behaving toward ture and the campaign against Germany because of the Lib­ this threat in this way, is because of a clear philosophical yan [chemical weapons] affair which is now threatening the affinity betweenthe establishments in the East and the West. Kohl government, basically shows on what thin ice the West-

EIR February 3, 1989 Feature 33 em alliance is right now. beautiful than the Renaissance. This will escalate. If the Kohl government falls-which So, if the world comes to this point, that we wiIl plunge could happen over the weekend, that is how bad it is-it is into a Dark Age, either of the kind of one world dictatorship absolutely to be expected, that the Soviet Union would not that some elites are aiming at, or a world under Communist miss the opportunity to offer a new Stalin Note [offering hegemony, then you have to know one thing: All of this is German reunification] , and even with Kohl, under the dom­ the result of a deliberate policy. It is not a natural catastrophe; ination of [Foreign Minister Hans-Dietrich] Genscher or a it is the result of concrete political acts. It is what the Pope new government dominated by the Social Democrats, which has called the "structures of sin," which exist equally in the would accept or could accept such a Stalin Note. And if East and in the West. That the world is in such a tremendous Germany goes, this would mean that all of Western Europe misery is the result of the acts of concrete individuals. goes. This is what the Bolshevist empire has aimed at ever since Lenin declared: Whoever controls Germany will have Our fightfor a new world economic order Europe , and that is the stepping-stone to world hegemony. I want to tell you a couple of things about how it comes So we are very far down in history. It is not only Western that our organization has developed relatively great knowl­ Europe. Look at the situation in China and Southeast Asia. edge about who is responsible. It is not some academic dis­ Deng Xiaoping has declared that he has a plan to regain covery, but it is the result of the fact that for 15 years , we Taiwan by no later than 1990, and basically part of this New have been fightingfor ajust new world economic order. Yalta deal between the superpowers is to give control over Lyndon LaRouche has developed concrete proposals for Southeast Asia to Peking. such economic reform , and when we, beginning relatively So, if this would happen-and we are obviously working naively and innocently, started to organize for the implemen­ to prevent it from happening-Moscow would gain Western tation of these programs, we were hit with an enormous Europe and Peking China would gain Southeast Asia, so that amount of counterattack, and we found out that there is an basically the United States would be reduced to a relatively enormous amount of harassment against countries-coun­ third-rate power and the Communists would have world he­ tries are being threatened with extinction-against individ­ gemony, as I said, maybe two years or less away. uals threatened with death or torture , or other unfortunate Would this help the Communist system? I don't think it developments. Because we did not give up in all of this fight, would. I think the Communist system would continue to we learned a lot about the nature of the enemy. We found collapse, because it is the very nature ofthis system to destroy out, for example, something which may be a surprise to many the values of Western civilization . It is their explicit aim to people: that the genocide lobby exists in the form of concrete destroy the values of Christianity, and with that, the idea of associations and people. individual creativity. So when we, at the end of these two days, will put these people in front of the tribunal, this is not abstract or academic AIDS: the threat of a Dark Age knowledge but it is the r�sult of a 15-year political fight. For In no more than lO years, the world for sure would look example, when Lyndon LaRouche developed for the first like a nightmare, because it is already now determined that time in 1974 the proposal to develop Africa-infrastructure, the AIDS epidemic will explode, despite all the cover-ups of industrialization of agriculture, industrialization together with the governments today, which, as I said, know what is really a report that if these measures were not taken in a period of at stake, and that this is a killer disease that could potentially 10-15 years, the black African continent would reach a point wipe out mankind as a whole. This explosion will come very of irreversible ecological holocaust. We found out that peo­ soon, and will have tremendous social consequences; people ple already then said that Africa should die. We did not know, will be killed because they are suspected to be carriers of the and Lyn did not know obviously, what would be the irrevers­ disease, which is already happening here and there right now. ible aspect, because we did not anticipate a specific form of We are also investigating hints, which I have to take very AIDS . But it was a correct analysis up to that point. seriously, that there are some institutions of the West which Then the next major step in this development was that are spreading AIDS deliberately in Africa, to further the Lyndon LaRouche in 1975 developed a concrete proposal for process of depopulation in this continent. international monetary reform , which he called at that time This all means clearly that the world is on the verge of the International Development Bank, which became ex­ chaos and a Dark Age, which makes the 14th century look tremely influential in the discussions of the Non-Aligned relatively mild by comparison. Movement and was introduced by the then-Foreign Minister How insane the present elites have become is iIlustrated, of Guyana, Fred WiIls, in front of the General Assembly of among other things, by an article in the Economist of this the United Nations in September 1976. week, which seriously proposes to rehabilitate certain histor­ We saw what happened to those leaders of the Third ical figures and periods, like the Dark Ages of the 14th cen­ World who came out and fought for this. Pakistan's Bhutto tury, and to glorify these periods as being stronger and more was killed in 1979 because he demanded an international

34 Feature EIR February 3, 1989 debt reorganization; Mrs . Gandhi, who was fighting for the wants to reduce the population to 2 billion, because otherwise same thing, was killed in 1984; and many many other gov­ the global crisis is not feasible. ernments were destabilized, leaders were purged, harassed, In the course of this, we founded the Club of Life, against put in prison. We know that the food weapon was used many, the evil activities of the Club of Rome, and as a result of our many times, because most of these countries have only food organizing for the sanctity and sacredness of life, we found reserves for three days or one week, and we know the names out even more about these people. We discovered an incre­ of the individuals from thebanks who went to these countries dible new euthanasia campaign, and propaganda that health and said, if you do not quit the fight for the new world care would not be cost-effective. So we found out about many economic order, you will be destabilized and credits will be more concrete persons, and also about the nature of the ene­ cut off. Riots will be the result in your country, and you will my. We found out how the financialinstitutions of this world be toppled. are responsible, and how they are controlled by certain fam­ We have watched what the IMF conditionalities have ilies, and that the reason for all of these problems is what you done in these 15 years. Entire countries have been dismantled could call a plutocracy, a government of a financial power in front of the eyes of the world public. For example the elite. This is an extreme Calvinist view, of those who think beautiful nation of Mexico, which was economically strug­ that God punishes those who are poor, and that those who are gling 10-15 years ago, was literally taken apart step by step, rich are already proven to be correct by the very fact of their with absolute brutality. The nation of Uganda practically no wealth. longer exists. If you look at Lebanon, since 1975, this nation has been completely bombed out, destroyed. It does not exist The Holy Alliance and the Yalta policy any more . Soon we found out that what motivates these people is, in part, the political system modeled on the Holy Alliance The genocide lobby concluded at the Congress of Vienna of 1815, where the idea We have found out, step by step, who is behind this . The of having Russia as a special policeman of Europe was copied Club of Rome, at a certain point in 1972, started to propa­ from. We found that the proponents of this system liked the gandize their zero economic growth policy of neo-malthu­ idea of balance of power, crisis management, that they are sianism, that the world does not have enough food for the against the sovereignty of the nation-state, and that they want number of people. We came upon such institutions as the to reintroduce a so-called Stiindestaat, a class system, with Worldwatch Institute, which is supervising a lot of this. We lower andhigher classes, werethe lower ones have no rights­ found individuals like the Satanist Robert McNamara, who i.e., you go back before the Prussian reforms. has a long list of crimes. He was responsible in Vietnam for In the 20th century, there is a continuity of this in the the body-count policy. He's a lunatic, quite literally, because form of the Yalta treason, which also has to be looked at as he goes out when there is a fu ll Moon, to bathe in the moon­ one of the great crimes of our time. In 1943, there was the beams. This is part of his belief-structure. But the other side division of Europe, without real need. There was no necessity is the genocide he committed when he was head of the World to give half of Europe to the Russians, to the Communists. Bank. We have heard circles around Gen. Maxwell Taylor, This, as you know, was already decided in 1943, and the also of Vietnam fame , who said quite openly that they want process of Teheran, Yalta, and Potsdam just concluded this to increase the death rate by natural means, because birth agreement. This Yalta treason was continued in 1943 by the control is not sufficient. We have found circles around George freemason George Marshall, who gave China to Mao Ze­ Ball, who have openly said that it is necessary to reduce the dong, at a point that the Kuomintang had 5 million people Mexican population to 30 million people, i.e., less than half. under arms. It was the joint action of Moscow and Washing­ We heard the speech of Gore Vidal in Sao Paulo last year, ton to give mainland China to the Communists. In 1953, who said that the AIDS pandemic is a good thing, because it during the Korean War, Chiang Kai-shek had offered to send will reduce the population to 1 billion people. hundreds of thousands of troops to help MacArthur, and the And we have seen, what was the long-term design of Korean War would have ended quite differently. But this was people like Dr. Alexander King, who was the one responsible not in the idea of the balance of power again, so that Mac­ in 1963 for introducing the so-called education reform in Arthur afterward went to Taipei to apologize. Europe, which had the deliberate aim of eliminating for pup­ This Yalta policy was continued in 1971, when it was ils any knowledge of the high pbints of the 2,000 years of Kissinger who introduced the "China card" policy, and at the European culture and civilization. This same Dr. Alexander same time there was continuous treason against the security King was the leader of the Club of Rome, and is on record of the West, in the form of the Pug wash Conference, the having said that population growth in the Third World has to ecology movement, all aimed to undermine the security of stop , because the Anglo-Saxon white race is overrun by the the West as an independent culture, a civilization. The peace black, brown, and yellow people. movement was invented, which has turned out to be nothing We are on the track of the Inter-Action Council, which but Moscow's fifth column, and if you look at it today, it is

EIR February 3, 1989 Feature 35 run literally by witches, and is the harbor and the water in which terrorists can swim.

Satanism and Friedrich Nietzsche In all of this, the role of Satanism is not marginal , but, as recent discoveries have shown, the ecology movement is a Satanic movement. The condition of the world, all the misery and all the incredible suffering, could not be explained oth­ erwise, and the major threat to civilization today is nothing but Satanism, which is not called Satanism openly, even though this is becoming more and more public now , but it is generally called the New Age. I think the key to understanding the threat to mankind today , in the form of Satanism and New Age , it is extremely Friedrich Nietzsche, important to understand both Nietzsche and Aleister Crow­ who believed in the ley. Nietzsche, who was working for the Devil in the last superiority of the century definitely, represents a new phase in this, because Devil. since his writings, the open , perverted advertisement of Sa­ tan ism has become a phase shiftin history. ing them is their hatred against Christianity, because they see The most important points he made are the fo llowing. He it as a total negation of all earthly pleasures and passions. declared that God is dead, and later he developed out of this, And we found out that one of the reasons why they hated us that he himself would be the Anti-Christ and he would be so much, is because they always say, you want to take away Satan. His aim was to wipe out Christianity and all values our pleasures in this way, because you put up moral stan­ associated with it. He, because God is dead, declared that dards, and we don't like that. man is not the image of God , but man has to be an aesthetic So, both Nietzsche and the freemasons-which is ac­ be ast. He continued to rewrite history in emphasizing, not tually one tradition-refer to Greece as a deliberate counter­ the classical highpoints of history, the classical Greek or the pole against Christianity, and it is also this Dionysian face of Renaissance, but rather Dionysian ecstasy, Bacchanalian Greek history which gave them the arguments for the "master masses walking, marching drunken through the streets, doped race." For example, Theognis of Megara already had the idea up. He emphasized the flagellants in the Middle Ages, and that the aristocratic is good and the plebian is bad. If you read in his ugly book Ecce Homo, he declared: Am I understood? Plato's dialogues, you find with the Meno, that Thrasyma­ It is Dionysos against the crucified. chos and Callicles emphasize the exercise of power as the He devoted his entire life against Christianity and deter­ essence of all virtues. Thrasymachos says that powerful evil mined that he wanted to revalue all values into their opposite. is more noble than weak goodness, and ClIicles says the This is indeed the essence of the Satanic method: to con­ stronger ones have the right to dominate and also have prop­ sciously change values into their opposite in such a way, that erty , and the weak ones have none. Dionysius said, what is people don't realize it in the beginning, but in the end they the essence for him is rageful lust, which is at the same time are in the grip of Satan . the fury of destruction. Indeed you will find, that rage is the He did not accept the development of the universe to ever emotion of Satan, in the same way that agape, caritas, or higher orders , but announced a cyclical repetition, the eternal love is the emotion of Christianity. return of the same, and therefore destruction for him-as The concept of the eternal return of the same, which is a well as for the Greenies today or for the Nazis, which is pre-Christian cult notion, associated with the earth goddess­ actually the same thing-destruction is desirable, because es, mother goddesses, is also the ground for the idea of only out of the decay, the strong will come, in the opinion of reincarnation, the concept used deliberately against the idea these people, and the natural outgrowth of this is the idea of of immortality. The Nietzschean fascists, the New Age pro­ the master race . The will to power is the only value for these ponents, believe that immortality or the belief in immortality people. is the basic obstacle to real life. Nietzsche finally wrote Th us, Historically, Nietzsche refers to Dionysius-Bacchus­ Sp ake Zarathustra, where he declared that all gods are dead, who was, at a point of Greek history, the cult figure for a cult now lives the superman, der Ubermensch. Superman is the which centered around wild music, rythmic dancing and or­ meaning of the world-no god, rather master your own fate, giastic ecstasy. rather be god yourself. So, the idea of Satanism is nothing This is all very important, if you compare it with the New but self-deification, and for these people, Christian ennoble­ Age today . ment is only castration. The aim of this insane ecstasy is the unification with their For Nietzsche, God is proven wrong, but not the Devil. god, to be possessed, literally. The essence of what is unify- In Will to Power, he writes, to be able to bear life without

36 Feature EIR February 3, 1989 God and morality, he must findthe opposite, the ego which only law: that was the philosophy of Aleister Crowley, and creates its own god, at whose feet all men lie. This god is this is the poison in the hearts and minds of the people think­ nothing but the culmination of power, the liberation of all ing they can take drugs, they can do anything just as they morality, the fulldepths of all contradictions of life lived out please. to the excess. God for him is the greatest immoralist, as will One has to see that the Age of Aquarius, the New Age, to power without goodness and wisdom. So, Nietzsche be­ as it was propagandized by Marilyn Ferguson, is actually the lieved in superiority of the Devil; quite literally, he was a new form of this disease. The aim is to eliminate any princi­ Satanist. He believed in the Olympus, i.e., the power of man ple, there is no longer any criterion for good and evil. And totally dedicated to this Earth, but not in the Crucified. So, one has to understand that the New Age has a lot of different Dionysius, whom Nietzsche believed to be finallyhe himself, elements, like homosexuality, which is an organized cult. is the god of darkness, and Zarathustra admits that the good Nobody can tell me that 50% of the people in Manhattan all ones would call his superman the Devil. had domineering mothers who give them no other way than So what we arereally dealing with, is the Satanic religion, to join this. It is an organizing tool: Get people involved, and in their hatredfor Christianity, for those reasons. All of this, once they are involved, they can't get out so easily. It is the Nietzschean philosophy, was the ethic of the inner core witchcraft, the ecology movement, the idea that some mys­ of the SS and the Nazis, and it is exactly the problem today, terious earth goddess exists. It is drugs, it is astrology, it is that the elites think they want power only for power's sake, pantheism; basically all of the components of the New Age and it is their absolute right to keep that power, no matter represent an attack on rationality, on reason, on natural sci­ what will happen to this poor world. It is no question that ence, on the idea of the knowability of the laws of the uni­ these people areunder the influenceof gigantic illusions, and verse. it is also clear that they are either part of Satanist rituals and So, we have found that one of the key coordinating cen­ circles, or at least they tolerate it. ters of all of this is a thing called the Lucis Trust, formerly the Lucifer organization, which is a kind of umbrella spon­ The Age of Aquarius soring all of these different things. Associated with this are We have noticed, that for the past one or two years, the the United Nations, the World Council of Churches, the Club so-called New Age has been on an aggressive offensive of Rome, the Trilateral Commission, the Rockefeller Foun­ worldwide, and if you look at the symptoms, you can actually dation, the World Wildlife Fund, and many more. see that it is an attempt to win over the world for good, and If you look at this, the big question obviously is, how to to wipe out Christianity once and for all. Normally people reverse it? It is obviously a subject which is not an easy one, are not accustomed to look at it this way, but if you start to and many people say it is dangerous even to talk about it, but sharpen your eyes, you actually see symptoms of it at every if we do not warnour young people, the next generation and point. For example, you all know that there are hardly any the many moral people who are just indifferent, who don't young people who are not victims of rock music, and all care, we'll eventually be taken over. major rock bands are Satanist. Not only do they have Satanist So therefore, the first step is to make a huge campaign to texts, not only do they have subliminal messages and light­ expose what is really behind the New Age, and we will name effects with pictures of Satan or symbols, but it is having a the names of those who have put themselves in the service of serious effect on the brains and the capability to think of these Satan, and we will put on their forehead the Mark of the young people. Beast, because it is our obligation to fight forthe superiority One can say that rock music is the firstlevel of initiation, of man in the image of God. We do this, because we have and that then drugs, pornography, and general disruption of the confidence that mankind has the resources to overcome any moral standard are the next steps. So, if you go through this crisis, as mankind came out of the 14th-century Dark this and you don't watch it, what comes out are people with­ Age and superseded it with the golden Renaissance. Today, out souls, and it is most horrifying to see that aleady in all of by awakening people and making them conscious of this Western Europe, 80-85% of all young people have partici­ danger, we will also be able to make a new cultural and moral pated in occult exercises, which starts like a game, but then Renaissance, and we want to announce it optimistically, but soon it is not a game any more . There are many Satanic also offensively at the same time, that no matter what the churches, not only in Turin, where 5% of the people admit enemy is planning, we will make sure, that one way or the that they are Satanists . It is the famous Ordo Templi Orientis other, the ideas and programs of Lyndon LaRouche will be which is definitely one of the leading instruments. It is a lot realized. of masonic rites, it is the spread of pedophilia, child-pornog­ We want to announce this campaign, for which Lyn has raphy rings, video cassettes of unimaginable perversion, and correctly given the slogan some time ago: to do nothing less finally the more frequently occurring ritual murders . than to kill Satan. While Nietzsche definitively is the philosopher for the I want to end my remarks by saying, so help us God

power elites, Aleister Crowley is the one who gives the phi­ through our arm, and I am confident that Christ will be vic­ losophy for the duped masses. Do what you want, this is the torious over Satan!

EIR February 3, 1989 Feature 37 LaRouche: Rally to save the dome of Florence!

Here are excerpts fr om the sp eech delivered by Lyndon H. LaRouche, Jr. on Jan . 20 to the Rome Tribunal.

The art of warfare sometimes consists in that, as soon as you are engaged with the adversary in one battle, start another on another flank ! What I wish to do today, briefly in connection with the subject of economics, and particu­ larly the question of morality and economics, is to contin­ ue a battle already begun with the aid of our dear Professor Bartoli from Florence, is to make clear the moral impor­ tance for all humanity of the cupola of the dome of Flor­ ence. This object, the dome of Florence, this cupola, is the object most hated in all the world by Moscow. The reason tificdis covery today. This was something that was under­ that Moscow hates this object, as do all Satanists, whether stood in part in the last century by the great Beltrami , who Communist or not, is that the cupola of the dome of Flor­ called our attention to this aspect of the importance of the ence is coincident with the Council of Florence, on which work of Brunelleschi and others on negative curvature . all modem Westerncivili zation is premised, immediately, With that in view, I would like to present to you, in and also because, in its construction, in the personalities the context of the morality of economics, a proposal that who were responsible for the design and the accomplish­ we all rally together with Professor Bartoli and save, de­ ment of its construction, it expresses the same principle fe nd the cupola of the dome of Florence, with these thoughts which pervades the Council of Florence. Thus, this object in view. embodies as a work of art, more than any other work of art, the entire Renaissance of Western civilization, after Morality and economics the terrible Dark Age of the 14th century. First I shall summarize a few things which indicate Now, Moscow is Satanic, and like all Satanic bodies, what I mean by morality and economics. Most people who it believes in symbolic philosophy, which is another name study economics today , at best learn some accounting; for Satanism, a polite, freemasonic term for Satanism. they learn nothing about economics. They learn about Everything is symbols, because nothing is real . Moscow money. They learn nothing about economy-not as econ­ believes that the destruction of the Vatican and the de­ omy was understood in Italy, France, and Germany during struction of the cupola symbolically assures the eternal the 17th and 18th centuries as cameralism , as physical imperial world rule of Moscow over this planet. economy, as the art of statecraft to promote the welfare There is something else about this cupola which is not and increase of the productive powers of labor. ... accidentally to be found there . There is a quality in the From the standpoint of physical economy, the capac­ way in which the construction, the most remarkable con­ ity of mankind, through scientificand technical progress, struction, of this cupola was effected, which is a quality to increase the potential population-density of our species, of science not understood by over 95% of the leading and higher standards of living, is the characteristic of professional physicists today. Not by the architects-most human behavior, which from the standpoint of the econ­ of the architects are idiots, like Galileo Galilei, who could omist-the real economist, not the accounting variety­ not understand the principle of construction of the cupola is the fundamental , empirical distinction between man when he was asked to comment on it. and beast. It is this quality, this performance, which dis­ Moreover, most physicists today would be incapable tinguishes and sets man apart from and above all beasts­ of understanding in principle what was clearly understood unless man becomes an ecologist, in which case he aspires by Filippo Brunelleschi, and also understood by Leonardo to descend to the state of a beast, morally and other­ da Vinci and others later. This principle of physics takes wise .... us to the very frontier of the possibility of physical scien- The problem is a very simple one. If we attempt to

38 Feature EIR February 3, 1989 represent the world as Francis Bacon, as Galileo, as De­ based on the use of the catenary, which is a form of cartes, as Newton, as Kant and others did, it is impossible negative curvature, which happensto be also what is called to represent human creativity; it is impossible to represent an isochronic form .... a process of universal creation; it is impossible to render Least action means that in the universe, primary action an intelligible distinction between living and dead pro­ occurs upon what is called the least pathway, and occurs cesses. You can only assert that it is living, in the case of in the least time ....What has not been resolved system­ living processes. atically, is the relationship between the least pathway and I have devoted most of my life to that question, first in least time, which involves isochronic curvature, of which refuting Kant, who said that creativity is unknowable, and the catenary is one form. who also said that morality, aesthetic and other morality, This is the work I am devoting my life to at present, in cannot be determined in an intelligible way. Out of Kant, terms of scientific work: the work of Brunelleschi in de­ and neo-Kantianism, and followers like Savigny, came signing the construction of the cupola of the dome of the immorality and rise of Satanism in the 19th and 20th Florence, is an application of the solution of this problem, centuries, came the rise of modem liberalism, which is in principle, and therefore, as we step forward through actually the portal, the gateway to Hell .... mastery of this connection, this problem of intelligible Since the classical Greeks from Athens, mankind has representation of least action, as we march forward into understood that that which we call beauty of form, in art, that, into the mastery of the matter-antimatter reaction, is that which is comparable with the harmonic ordering of which gives us three orders of magnitude greater energy living processes, and human processes in particular. With than we have ever had for mankind before, we will ac­ Leonardo's work, and the work of others, we understand tually be marching forward from a principle which is im­ that this distinction between the harmonic orderings con­ plicitly already embedded in the design of the cupola of gruent with the Golden Section, and those not congruent the dome of Florence. with the Golden Section, is the difference between living Therefore as affirming the principle of beauty, the and dead processes. To us, beauty is in first approxima­ equivalence of truth, beauty, love of God, and love of tion, a matter of the forms of healthy living processes. mankind, as the single principle of classical fine art, so Life is beautiful; death is ugly. Classical fine art, properly the complement to that is to affirmthe same principle in appreciated, is beauty. Rock is death. Modernismis death. physical science, the same state of mind, the same atti­ This coincidence with science on this question, is the tude, and that work of art, that object, that symbol so key to understand both the human mind and the impor­ hated by the Soviet government, the cupola of the dome tance of the cupola of the cathedral of Florence. I will just of Florence, is the second flank. identify this without going into detail. I shall be working Let us win the battle for the principle of the eqivalence on this to the limit of my abilities, as I already am, for as of truth, beauty, love of God and love of mankind, in art. long as possible, until we solve it. Affirmthe intelligibility of that principle, to bring beauty Beginning with the work of Cusa, but already implicit and its contribution to the development of the character of in work of Toscanelli and Brunelleschi, the development the individual, back to mankind, and to children above and understanding of the problem posed by Plato, in a all. Let us at the same time, take the idea of science out of number of his writings, including the Timaeus, that what mysticism, bring it back to intelligibility, focus that ques­ we see with our senses, particularly our visual senses, is tion of intelligibility on the next breakthrough to be made as but the shadows on the wall of a darkened cave, cast by in general in science for the benefit of mankind. Then let firelightin that cave. In physics, what Plato has said trans­ us take the two things together, the affirmation of the lates as invariants of conformal stereographic projection. principle of aesthetics, and the affirmationof the principle It is a very simple principle of 19th-century physics, known of scientificprogr ess, and let us use that, to teach mankind before. This aspect of Plato's work on science, was taken the principle of humanity, that it is not what we do as a up by the Golden Renaissance, to such effect that the thing which is important, it is what we contribute to all genius of the construction of the cupola of the dome of mankind. It is what we enable one another to do in con­ Florence is based on recognizing the implications of that tributing not simply a useful act, but to living a life which, point of Plato's. Brunelleschi among others, says that from whatever its beginning to whatever its end, is a life certain anomalies in the field of vision, are the keys to equivalent to a universal act, a life in which the individual, understanding the laws of physics. On that basis, Brunel­ mortal, fragile individual, becomes an efficient servant of leschi, like Leonardo after him, dealt with the problem the universal, and therefore can walk through life, and to which we call negative curvature. The way that Brunel­ death, with joy knowing that life is good-that is the leschi solved the problem of constructing the cupola, was fundamental principle.

EIR February 3, 1989 Feature 39 Expert Testimony

Expose the Nuremberg criminals, demand justice fo r LaRouche!

In two days of testimony Jan. 19-20, an impressive array of that according to Metropolitan Filaret of Kiev " 'the recog­ political leaders, militarygenerals, lawyers, musicologists, nition of the Ukrainian Catholic Church . . . would shake the scientists, and churchmen gave expert testimony to denounce entire structure' "of the ROC. the crimes against humanity being perpetrated around the But, Father Dacko emphasized, recognition of the globe, and to mobilize others to combat this evil. Ukrainian Catholic Church becomes a political issue, be­ cause it "has always been on the side of the people as a Crimes of Yalta and the New Yalta guarantor of national self-determination and independence." Mrs. G. Bruckmann, representative in Rome of the He concluded with an appeal for "Christian solidarity," Afghan freedom fighters, presented a report on the plight and endorsed the Pope'sformu lation, "a Europe united from of the Afghanistan resistance. Polemicizing against the idea the Atlantic to the Urals ....This vision is of a Europe that Gorbachov means peace for Afghanistan, she said that comprised of different nations but joined in one Christian the Soviets have been defeated in Afghanistan and are now faith, with mutual respect for each people's freedom and trying to achieve with diplomatic means what they could not rights. This respect is based on the human being, created in achieve militarily. Gorbachov's psychological warfare pre­ God's likeness and image." sents the situation falsely as a conflict between Afghanistan Gen. F.W. Grunewald (ret.), Federal Republic of and Pakistan. The Geneva agreement signed by the Ameri­ Germany, discussed the post-Yalta division of power in cans has recognized this lie, and gives the Soviets the role of Europe, and the fact that "today, the initiative in the world guarantor of peace. power game belongs clearly to the Russians." Defending Rev. Iwan Dacko, chancellor of his Eminence Cardi­ LaRouche as "the original architect of the SDI," General nal Lubachivski from the Ukrainian Catholic Church, Grunewald also said, "Only 20% of my fellow citizens are outlined the history of the Ukrainian Church, from the 988 still aware that more than 100million Europeans, people of Baptism of the Kievan State, through the Eastern and West­ our culture have been robbed of their fu ndamental rights by ern Churches' formal separation in 1054, their re-unification the Soviet Union, their personal freedom maintained at a at the 1439 Council of Florence-at which point Russian level beneath human dignity. No one realizes that the robber Orthodoxy broke with Constantinople-and the 1595-96 will be appointed sheriffif the 1992 human rights conference Union of Brest-Litovsk. is held in Moscow." It was this last event that established the Ukrainian Cath­ Gen. Alberto Li Gobbi (ret.) of the Center for Defense olic Church as we know it, he said, "a clear endeavor to try Studies in Genoa, Italy, and a holder of the Gold Medal to reinstate Kievan Christianity as it was prior to the fatal of the Italian Resistance Against Fascism, spoke on Soviet

year of 1054 ... . Or, as Pope John Paul II put it, 'Orthodox "deceptions against Western security." He stressed that the in faith and Catholic in love,' since Catholicism and Ortho­ Soviet strategic threat has merely changed direction and has doxy do not contradict, but rather complement each other." become more dangerous under Gorbachov's perestroika, In 1946, the Soviet government arrested, exiled, and adapting to the American SDI doctrine, "for which Lyndon deported hundreds of Ukrainian Catholics, both lay and cler­ LaRouche must be recognized for his great merit in having ics, and convened a rump "Synod of Lviv," which specified actively promoted it to Reagan." the Ukrainian Church's "voluntary dissolution and returnto Taha Nur, a representative of the Eritrean Liberation the womb of the Russian Orthodox Church." Nonetheless, Front, denounced the 27-year bloody war conducted against Ukrainian Catholics retain their faith, albeit within the liturg­ the Eritrean people by the Ethiopian regime, with an explicit ical confines of the ROC, and "the most active communities aim of extermination, aided by the U.S.S.R., Cuba, East of today's ROC are found in Western Ukraine," so much so Germany, and other countries, and the cover-up by the si-

40 Feature EIR February 3, 1989 Prof. Bruno Barosi Prof. Bruno Brandimarte Father Dario Composta Gen. F. W. Grunewald {ret.) I lence of the United Nations. filmed, and the videotapes circulated among the cultists, as a Paolo Raimondi of the Schiller Institute opened the form of further perversion and evil: "Personally, I believe conference panel on "Crimes Against Humanity of Commu­ that when a faraway and unknown little girl from Thailand or nism and Fascism," with an overview of the crimes perpe­ some other country is rapedand cut up in front of a TV camera trated by Nazism and Soviet Russia, and the post-Yalta con­ to satisfy the sadistic or 'particular' tastes of certain 'viewers' nivance between Moscow and traitors in the West. and to allow other individuals to get rich on this kind of Lewis du Pont Smith, U.S.A., a supporter of La­ human misery, it is the whole of humanity that becomes less Rouche's ideas who was stripped of his political and civil free, that loses a part of its dignity." rights and his inheritance because of his beliefs , used his own Father Dario Composta, theologian of the Urbaniana case to show how Soviet methods are being used in the University in Rome, explored the epistemological and moral American legal system to silence political opponents. background to the horrors of Satanism, in an exhaustive Rev. Alfonsas Svarinskas, Lithuania, was recently re­ treatment of the concept of nihilism. Tracing the historical leased from 21 years as a political prisoner in the Soviet development of this tendency, Father Dario focused on the gulags. He revealed how prisoners being released are sub­ split in Gnosticism in the 18th century into "hot" and "cold" jected to blackmail and forced to work with the KGB . Others, gnosticism. "Hot" gnosticism, he said, "gives rise to Theo­ though released, are not allowed to return to their native sophy, occultism, Masonry. 'Cold' gnosticism gives rise to lands, but are banished. Still others are denied the right to illuminism. Both movements are nihilist." The latter presents practice a profession. "Some Lithuanian partisans, after itself historically as the force which "frees" the mind from spending 25 years in a prison camp, cannot go back to Lith­ superstition, which establishes the rule of "reason." Yet this uania, but are sent to Siberia," he said. Opening the eyes of attitude of illuminism aimed simply at destroying religion those blinded by the illusion of glasnost, the former prisoner and morality. John Stuart Mill's utilitarianism, like Darwin's attacked the West for having forgotten the 4 million Ukrain­ social view of the struggle for survival, is nothing but nihil­ ians butchered by Stalin. ism applied to economics and social organization. Marxism This "shame for Western civilization is a tragedy for the and Communism, in tum, are nothing but the version of Catholic Church," whose Franciscan brothers from Assisi nihilistic thinking realized in the East bloc, whose society is travel to Moscow "with the doves of peace," he said. Recall­ also characterized by alcoholism, "suicides, abortions, crime, ing the situation in Afghanistan, Cambodia, Czechoslovakia, violence," all expressions of amorality. and Armenia, Father Svarinskas ridiculed the notion that a Don Dario concluded that nihilism is a system based on human rights conference could take place in Moscow, and two pillars: "the idea that there is no 'must' and the lack of called on the conference to block the meeting from taking any distinction between good and evil." These premises, place in the "empire of evil." which underlie "Satanism, occultism, esoteric cults, and freemasonry," are what have endangered our society. But, The fight against Satanism he stated the promise, "that they will not prevail." Paolo Bafile, Italy, a high-level magistrate and expert Father Antonio Coccia, OFM presented a forceful ar­ fighter against pornography, documented the spread of gument based on the thought of Socrates, Plato, and St.

Satanism, including how horrendous child sacrifices are being Augustine, showing how the crisis of civilization can be

EIR February 3, 1989 Feature 41 Elisabeth Hellenbroich Gen . Alberto Li Gobbi (ret.) Mario Parnther Fernando Quijano

overcome through the recognition, within the human individ­ West," she said. These networks go back to the spiritual ual, of the existence and superiority of natural law. "The fathers of Satanism of the last century-Friedrich Nietzsche , presence of universal and necessary values, such as those of Helena Blavatsky, Aleister Crowley, Carl Jung, and Arnold justice and truth , which cannot derive from the human subject Toynbee-who established the cultural pessimism on which which is mutable and is not always just and truthful, pushes Satanism was to feed in this century. Augustine to transcend the mutable human being, the human The institutes of parapsychology in Moscow and Novo­ person as the carrier but not the creator of the values of truth sibirsk, she said, collaborate with their counterparts at Cali­ and justice and to recognize the Mind , the subsistent Being, fornia'sEsalen Institute and the Stanford Research Institute, independent of our minds, and principle of our being and of to chum out the paraphernaliaof modem-day occult practices all things." and groups: from rock music and the drug culture, to the Diane Core, Great Britain, head of the Childwatch hard-core witchcraft cults like the Ordo Templi Orientis organization, detailed with chilling examples how the forces (OTO) , the Wicca cult, and Lucis Trust, the command center of evil have launched a "spiritual war" on all fronts, with the of of "New Age" movement. It is such institutions which aim of winning over the entire world to the forces of "the have been responsible for the proliferation of Satanic prac­ Anti-Christ" by the end of this century. This spiritual war tices and widespread belief in the occult: Over 100,000 in involves not only outright recruiting among youth, with the Italy practice magic, there are 3,000 astrologers in Paris help of drugs and pornography, but also more subtle methods alone, and thousands of children in England are sacrificed to of introducing irrational beliefs into children, through classes Satanist rituals every year. in the occult, disguised as "history" classes. Don Andrea Gemma, SDB, an eminent Church schol­ LaRouche's contributions-and his enemies ar and president of the Don Orione youth education cen­ Prof. Bruno Barosi of the Cremona Violin Building ters in Italy, discussed the history of Satanism, and the Institute in Italy, and Prof. Arturo Sacchetti, artistic di­ message of the Christian faith in the power of good to over­ rector of Vatican Radio, related the story of how Lyndon come the forces of evil, in the form of the "prince of this LaRouche had identified the question of musical tuning as a world," Satan . crucial intervention point in the fight to preserve classical John Grover, Australia, a scientist and author, docu­ music, and mobilized thousands of persons to launch an mented the destruction ofliteracy in schools-which he char­ unprecedented campaign. Professor Barosi detailed the sci­ acterized as a form of "child abuse"-through the reforms of entificre asons why such tuning is necessary for safeguarding UNESCO director Julian Huxley. Huxley was part of the the integrity and musical quality of sound of stringed instru­ New Age grouping in England. ments like Stradivarius violins. Professor Sacchetti motivat­ Elisabeth Hellenbroich, editor of the cultural maga­ ed the need to lower tuning, from the standpoint of the human zine Ibykus in the Federal Republic of Germany, spoke on voice, an approach taken by great classical composers, in the spread of Satanism in the West. "Satanism and the cult of writing for the human voice. death are the result of a major cultural war waged against Prof. Bruno Brandimarte, professor of laser appli­ Western civilization, a war directed by the Russians in full cations in medicine and biology at the Urbino University complicity with certain Gnostic oligarchical networks of the in .Italy, recalled his first meeting with Lyndon LaRouche

42 Feature EIR February 3, 1989 Paolo Raimondi Amelia Robinson Prof. Arturo Sacchetti Rev. Alfo nsas Svarinskas

two years ago in Rome at a conference on AIDS. "I heard politician who has consistently stood up for the right of Pan­ about his scientific work, but what struck me was his global ama against foreign intrusions. vision. Here I was-afterwaiting hundreds of years to finally Fernando Quijano, executive director of the Schiller finda scientist who was also a philosopher, and an economist, Institute for Ibero-America, documented LaRouche's role and a moral human being." Brandimarte denounced the in the fight for economic independence. Quijano used the witchhunt against LaRouche as an attack against the man , an example of the military raid against the oil workers union in attack against his ideas. "The greatest crimes against man are Mexico, to show that the methods used in Mexico and against crimes against his ideas, like the attacks against science­ LaRouche are the same. "Why does the Establishment want which is being presented as something inhuman." Brandi­ LaRouche out of the way? Because his programs, like Op­ marte concluded that the LaRouche case has filled him with eration Juarez, can destroy the one-worldist plot to put Can­ grave concern: "I don't hide the fact that I am very worried. ada, the United States, and Mexico into one so-called Com­ I see the greatest economic power in the West, the United mon Market. It was in 1982, during a meeting between States, moving against the independence of human thought, LaRouche and President Jose Lopez Portillo which I attend­ and that troubles me deeply." ed, discussing Operation Juarez, that the Establishment de­ Max Dean, an attorney who heads the Constitutional cided to get rid of LaRouche." Quijano reviewed the wors­ Defense Fund in the U.S.A., and a board member of the ening debt situation of Mexico, which resulted from the fact NAACP in Flint, Michigan, discussed the efforts of the that Operation Juarez was sabotaged. CDF to thwart the strategy of those seeking to destroy the Amelia Robinson, civil rights leader from the United U.S. Constitution. "Our enemies' strategy," he said, "is not States, related the story of how her confrontation with injus­ merely to taint juries, but to poison the minds of entire pop­ tice in Selma, Alabama, led her to dedicate her life to fighting ulations against the very ideas which inspire us." for civil and human rights. It was a case of injustice in which Don Victor Girauta y Armada, an attorney from Bar­ blacks were viciously discriminated against, while a white celona, Spain and representative of the International who had killed an old black woman was allowed to go free, Commission on Human Rights Violations, reported on the which filledher with hatred for injustice. Only by converting battle of the Commission to put a global spotlight on the this hate into pity was she able to launch into effective polit­ LaRouche trials. ical activity , including her work with Martin Luther King, Anno Hellenbroich of EIR's bureau in the Federal with the SouthernChristian Leadership Conference, with the Republic of Germany, presented an indictment of the elites Student Non-Violent Coordinating Committee, and later with of East and West who are complicit in the frameup of La­ the Schiller Institute. Rouche (see article, page 30). "Gandhi and Martin Luther King organized hunger strikes, Mario Parnther, executive member of the Party of demonstrations, and they were killed," she said. "LaRouche Democratic Revolution, the leading partner of the Pana­ and his co-workers are equipped with the ammunition of manian governing coalition, pointed out with precise chro­ love, and they carry the torch of victory, because they are nology how the attacks against LaRouche have coincided offering solutions to the problem of hunger. . . . If Mr. with attacks against Panama and its national integrity. This LaRouche is saved and is successful in carrying out his pro­ derives from the fact that LaRouche is the only American gram, the world will be saved."

EIR February 3, 1989 Feature 43 The Establishment urges alliance with Dope, Inc.

by Mark Sonnenblick

Since 1986, the Inter-American Dialogue has advocated sur­ "no quick or easy solutions are currently available." It re­ render in the War on Drugs. Now, this Establishment "con­ joices that, under George Bush's leadership, "the United sensus" advocates an alliance with the internationalnarcotics States is finally shifting its attention to reducing demand," cartel in the growing portion of the hemisphere it has over­ rather than fightingDope , Inc. as an alien power at war with run. The Dialogue, a composite of Trilateral Commission the republic. "Experience with anti-tobacco and marijuana and Socialist International figures from all over the Ameri­ campaigns provides some suggestions for reducing demand cas, rushed publication of its "The Americas in 1989: Con­ for cocaine. So do declines in the consumption of alcohol sensus for Action" report in order to define policy for the and saturated fats, and the increasing numbers of people Bush administration. Bush's National Security Advisor Brent engaged in physical exercise." Scowcroft, fresh from Kissinger Associates, Inc., welcomed The ostensible motive for alliance with Dope, Inc. is to the report as "significant" and urged its "careful study." better fight communist insurgencies. The Dialogue raves Dialogue secretary Abe Lowenthal, another Kissinger against the well-documented fact of "narco-terrorism" and protege, was not far off the mark when he presented the goes so far as to blame the War on Drugs for alliances be­ report, Jan. 17, as the "bipartisan consensus which has tween drug traffickers andterrori sts. emerged over the past decade." Its core, led by co-chairman / "The fight against cocaine can threaten democratic gov- Sol Linowitz, drew up the Carter administration's Latin ernments as seriously as the trafficking itself. Involving the American policy. Since 1976, the productive economies of national army in eradication risks both enmeshing it in cor­ Ibero-America have been ravaged by genocidal policies dic­ ruption and diminishing civilian authority by stretching mil­ tated by the International MonetaryFund (IMF). The conti­ itary responsibilities. For countries with guerrilla insurgen­ nent has been turned into one big cocaine machine and the cies, eradication poses an especially cruel dilemma: destroy­ Trilateraloids welcomed Jesuit and Soviet involvement in ing drug crops can undercut supportfor anti-guerrillaopera­ their Central American insurgencies. tions, pitting the military against local peasants. In Peru, the The Dialogue's executive committee also includes Rob­ Sendero Luminoso guerrillas have made deep inroads into ert S. McNamara. Satanist McNamara organized the Viet­ the country's coca producing areas . nam War to maximize "body counts" of dead Vietnamese, to "Although governments of the Hemisphere have ex­ sell out America's allies, and to disorient succeeding gener­ pressed concernabout guerrillas and drug traffickersjo ining ations of American youth by making "patriotism" a dirty forces, such alliances seem to be the exception rather than word. That demoralization can be thanked for the rock, drug, the rule. Repeated assertions of such a link suggest an effort sex counterculture. to find scapegoats to spare governments the harder task of grappling with the domestic roots of both anti-government No war on drugs insurgency and drug trafficking.... Unlike guerrillas, they Now that "U.S. citizens currently spend up to $100 bil­ do not seek to overturn social and economic structures .... lion annually on illegal drugs, and a cocaine epidemic is "Traffickers, in tum, hire their own armiesto protect drug devastating inner cities," the Dialogue's consensus is that operations from the guerrillas. ifthey are leftalone, traffick-

44 International EIR February 3, 1989 ers and growers will oft en support national police and armies cocaine in the United States, a tenfold increase. It now rec­ in combating guerrillas [emphasis added] . " ognizes, "There is little support for legalizing cocaine and The report specifies that in 1984, cocaine dealers and other illicit drugs in any country of the Hemisphere, but a local Peruvian army commanders helped each other in the few political leaders in both the United States and Latin Huallaga Valley. But the intensive military operations by America have begun advocating this approach." the Alan Garcia government, with U.S. Drug Enforcement Administration support, against coca plantations and cocaine labs spoiled that. The Dialogue says only extensive aerial spraying of herbicides such as "Spike" could sharply reduce Behind the magiC cocaine output, but "such spraying could cause widespread environmental damage and would risk alienating whole areas of ' debt reduction' of the country. In Peru , it would give Sendero Luminoso [Shining Path] the opportunity to expand its influence in Except for James Baker III, practically everyone in Washing­ coca-producing regions even further." ton now admits that the Ibero-American debt crisis is worse The Establishment's "freemarket" economics is reflected now than when it erupted in 1982. There is lots of talk there in the Dialogue's demand for an end to the "costly" efforts to and by Ibero-American leaders such as Venezuelan President break up drug production and trafficking. "Neither eradica­ Carlos Andres Perez about"debt relief." Would those schemes tion in Latin America nor interdiction at the border will do enable Ibero-America to resume development? No . Would much to address the U.S. cocaine problem," since "the drug they leave taxpayers with the bill for bailing out the big business is so profitable that the traffickers can tolerate the money-center banks? Yes. seizure of half or more of their shipments." Therefore, the In 1982, Lyndon LaRouche proposed in his Operation report urges they be leftin peace. "So long as there is demand Juarez study that existing debt be "isolated" and a new inter­ for illicit drugs, supply will find the way to fill it," profess national financial system be created to provide massive de­ the Satanist free marketeers . "To put faith in eradication or velopment credits so that the region could grow its way out seizure to end the drug trade is to pursue a will-o' -the-wisp." of bankrupcy. He was then alone in warning that Baker's The traffic is also profitable to the Wall Street banks crisis management approach would lead to disaster in Ibero­ which financethe Dialogue. These debt collectors comment, America and to the bankruptcy of the United States itself. "The jobs and foreign exchange from .drug trafficking are Then, as now, the Establishment sought to silence La­ clearly important to these countries that are wracked by debt Rouche. and depression." No one could dispute the situation report in the Inter­ The Inter-American Dialogue first called for examining American Dialogue's "The Americas in 1989: Consensus for "the selective legalization" of narcotics in its 1986 report Action." It says, "Latin America has been mired in depres­ (See EIR , Vol. 13, No. 18, May 2, 1986, "Trilateral panel sion for six years; most Latin Americans are worse off today talks up legalizing the dope trade"). It acknowledged that then they were a decade ago. Having trapped millions in legalization could lead to at least 60 million people using extreme poverty, the depression has begun to feed on itself. Continuing capital flight, low investment, rampant inflation, and declining funding for education and health are destroying the foundations of future productivity, and may keep Latin Other key members of the Dialogue include: Mc­ American economies stagnant for years to come." George Bundy: former National Security Adviser, Ford The Dialogue, however, endorses the policies imposed Foundation head; financed New York City narco-ter­ on the region by the International Monetary Fund (IMF) rorist gangs; helped arrange Vietnam War. Elliot L. which have led to this disaster. The changes it advocates are Richardson: former Secretary of Defense and Attor­ designed to complete such genocidal "reforms": "Latin ney General. Bruce Babbitt: governor, ex-presiden­ America cannot hope to recover without major structural tial candidate (Democratic). Cyrus R. Vance: Trila­ reforms," it postulates. "Latin American governments have teral Commission; ex-Secretary of State; president, New made significant adjustments in their external sectors. Real­ York Federal Reserve. Theodore Hesburgh: Trilater­ istic exchange rates are now in place in most countries and al Commission; ex-president, Notre Dame University. trade deficits have been turned into surpluses-although Pedro-Pablo Kuczynski: First Boston International, largely by curtailing imports and real wages, not by improv­ indicted in Peru in 1986 for illegal oil dealings. Au­ ing productivity. More must now be done to liberalize trade gustin Legorreta: Mexican banker who claims to lead policies by reducing tariffs and other import barriers . Few the "300 families" who "decide everything." Nicolas governmentshave progressed very far in their internalreform Ardito Barletta: ex-President of Panama who created efforts. Fiscal deficitsremain all too high. . . . These deficits banking secrecy for money laundering. cannot be controlled as long as scarce resources are used to subsidize uncompetitive industries and financebloated bur-

EIR February 3, 1989 International 45 eaucracies. More generally, governments continue to play tries," the Financial Times reported Jan. 25. American banks too large a role in Latin American economies: business and would be rewarded for their "sacrifice" with U.S. Treasury financial regulations need to be eased; markets allowed to guarantees on debts Mexico could never repay. determine most prices; and state enterprises shiftedto private • Venezuela declared a moratorium on principal pay­ hands." ments, effective Jan. 17. Socialist Internationalleader Carlos Andres Perez, to be inaugurated President Feb. 2, has been Democracy is intolerable whistle-stopping in Mexico, Brazil, and Europe for guar­ The Establishment's concern is that the regimes willing antees and tax giveaways for Wall Street. He confessed Jan. to abrogate sovereignty and triage their people to please 3, "I would rather not be the lawyer for the banks, but the bankers will not last long if they cannot give the perception banks are handcuffed by the policies set by the U.S. Treasury of having gotten something in return: and the Federal Reserve ....Theref ore, it is necessary to demand a different posture from the government of the Economic reform programs, moreover, always United States." carry very high short-term costs ....Market-oriented Perez-like his Socialist International fellow travelers reforms now provoke public distrust because they have from Brazil (Fernando Henrique Cardoso) and Costa Rica come to be associated with declining incomes, un­ (Daniel Oduber) on the Dialogue executive committee-is employment, higher prices, and deteriorating public more than willing to use the good faith and credit of the services. It is not enough that Latin America's finan­ United States to bail out the big banks. cial and economic authorities agree on the need to The Dialogue argues, "In exchange for reducing either restructure and open their economies. Democratic the interest charges or principal on their current holdings, governmentscannot establish economic policy by fiat. commercial banks want to obtain at least partial guarantees After so many years of decline, they cannot simply that remaining claims will be paid. They are prepared to preach austerity and ignore the deprivation and anger take the losses involved if at the same time their level of of the poorest. They must respond to demands of labor risk on the debt that would still be outstanding is dimin­ unions, business associations, and legislatures. Un­ ished ....Changes should be make in regulatory, account­ popular policies cannot be sustained for long. ing, and tax practices that would made debt reduction a more Most Latin American governments . . . will face attractive option. The crucial inducement, however, will be intense domestic opposition so long as such measures protection against further losses. The industrial countries and the sacrifices they entail are viewed as largely must provide some form of official guarantees on the interest benefiting external creditors rather than producing de­ or principal that remains afterthe debt reduction operation." velopment at home. This political resistance can only be overcome if economic reforms are coupled with Fear of nationalism significant debt reduction and new capital flows, and The Dialogue's great fear is that governmentscommitted recognized as part of a genuinely cooperative effort to national sovereignty will displace the present crew of obe­ between debtors and creditors to promote growth [em­ dient debt payers: "New Presidents are scheduled to take phasis added] . power within the next 18 months in nearly a dozen Latin The Establishment's "debt relief' sleight-of-hand is de­ American countries. The region's voters are already turning signed to create such political "perceptions." The hype for to more nationalistic leaders ....Many will take officewith such changes is building. There has been a sudden eruption clear mandates to reverse the economic policies of their pred­ of "tough" postures by normally supine debtors. ecessors. Regardless ofthe advice of economic experts, some • Brazilian Finance Minister Mailson da Nobrega failed will be less willing to persist with market reforms, and more to make a $500 million interest payment Jan. 18 on the prepared to suspend or curtail debt payments unilaterally, pretext of a "computer glitch." He had been making veiled thus increasing the risk of confrontation between Latin Amer­ threats of debt moratorium if the banks kept stalling on $ 1.2 ican debtors and their creditors." billion in new loans they promised; now, he is entering That is why the Establishment is fightingfor "debt reduc­ moratorium through the back door. tion" rewards on a "case-by-case basis" to those governments • Mexican President Carlos Salinas de Gortari recently which play its game. These regimes are "democracies" in the recalled, "As someone once said, a dead client will never Inter-American Dialogue lexicon. "Mexico's continuing need pay." Salomon Brothers brokerage reports that Mexican debt for painful economic austerity could lead to a retightening of negotiator Angel Gurria is asking bank creditors not to col­ political control," it writes, just as President Salinas began lect any principal and at least 80% of the interest due during police-state measures against trade unions opposed to auster­ the next six years. "The resourceful Mr. Gurria has prepared ity and the denationalization of the state sector. On the other an exhaustive menu of choices with options calculated to hand, those governments resisting bankers' dictates will be appeal to the palates of the banks of various creditor coun- hounded as "dictatorships," as in the case of Panama.

46 International EIR February 3, 1989 them from seeking treatment, so spreads the evil it was meant to contain." It concluded with advice to newU.S. anti-drug czar Wil­ liam Bennett: "Prohibition cruelly compounds the problems it was meant to solve. So end it. Legalize, control , discour­ age ...." If the Queen objects to this, will she revoke Sir Evelyn's new title? Afterall , in the case of the spy Anthony Blunt, his designation as Sir Anthony Blunt was revoked, once his Queen knights head treason had been publicly revealed in the late 1970s (although the real story of his missions on behalf of the British mon­ of pro-drug 'Economist' archy has, to this day, not become known). For patriots, the Economist's advocacy of drug legaliza­ tion should also be seen as treason, and as a matter of vital by Mark Burdman national security. After all, the same edition of the Economist that called for drug legalization, ran a news feature on the It is almost impossible to pick up a newspaper anywhere in drug plague hitting the U.K., reporting that in Britain, the the world, and read the name Lyndon LaRouche, without the "drug problem stems not from one drug-and certainly not identification, "the man who says the Queen of England from crack-but from many. All the available figures sug­ pushes drugs." Why the obsessive, cult-like fixation on this gest that drug use is spreading. Amphetamines, cannabis, point by the media? cocaine, heroin (also cheap in Britain), LSD, and tranquil­ For a possible answer, recall the famous "play within the izers are all more popular than ever, consumed in market play" scene of Shakespeare's Hamlet: It is said there, of a towns as well as inner cities. The main increases in drug use conscience-stricken queen, that "the lady doth protest too so far have come in two waves: the first in the late 1960s and much." Buckingham Palace being what it is, there is little early 1970s, the second in the early 1980s. Consumption in chance that its inhabitants will discuss if, and why, their the mid- 1970s and mid- 1980s seems to have been relatively consciences may be stricken, on the issue of drugs or any­ stable. The latest seizure figures suggest that Britain is on the thing else. To get at the matter from a different direction, we verge of a third surge. As customs barriers come down in ask the question: Why was Evelyn de Rothschild knighted 1992, such a surge may last well into the next decade." around the tum of this year? "Customs barriers coming down" refers, ofcourse , to the Sir Evelyn has been the chairman of the London Econo­ "Europe 1992" reforms for the corporativist restructuring of mist since 1972. During the period in and around the time of WesternEuro pe. True to its drug-legalizer profile, the Econ­ his knighthood, from December 1988 to January 1989, the omist is one of the more enthusiastic backers of "Europe Economist editorial board has waged an open war against the 1992." The problem is, so is Buckingham Palace. Is the best values of Western civilization. This culminated in a Jan. Palace aware of the drugs-surge danger referred to in the 21 editorial calling for the legalization of drugs . Economist article? If so, why does it support "Europe 1992"? In ghoulish style, the weekly Economist chided those in the U.S. who support a war on drugs. The editorial, titled, Up with Dark Ages, down with LaRouche "Hooked on just saying no" and subtitled, "Minimizing the The case of the Economist and the knighting of its chair­ evil of drugs means learning to live with them, legally," man, is all the more egregious, since in two recent editions stated: "Men and (rather fewer) women have since the start prior to the drug-legalizer issue, the magazine had run edi­ of recorded time put enemies in their mouths to steal away torials that qualify as crimes against humanity: their brains ....Wise rulers seek to limit the damage, not • In its Dec. 24 edition, it welcomed the potential ex­ to ban them." The advice: legalize marijuana and hashish, tinction of the human race, under the heading, "On the des­ cocaine, and heroin. tiny of species," subtitled, "In the long run we are all extinct. On the first two, it said: "By calling them illegal, the But humanity could go out in style." United States wastes millions vainly trying to suppress the • In its Jan. 14 edition, the magazine called for the "re­ trade, and foregoes billions in taxes upon a crop that may habilitation" of the "maligned Dark Ages," and attacked the now be second in value only to wheat." A "sensible policy" Renaissance for having given the Dark Ages a bad name. It for cocaine, it went on, "would tax it more stiffly,and restrict also called for the rehabilitation of Neville Chamberlain, its sales outlets more tightly than its main competitors, just fretting that he "g�ve appeasement a bad name" (but implic­ as spirits are controlled and taxed more than beer." As for itly supporting appeasement as such); former British Prime heroin: "Heroin's victims need doctors, but the law puts them Minister Edward Heath, for having brought about British in the hands of gangsters; by calling them criminals it deters entrance into the European Community (the stepping-stone

EIR February 3, 1989 International 47 to "Europe 1992"); and Aaron Burr, who killed Alexander Hamilton in a duel. "Surely Alexander Hamilton deserved at least a punch on the nose?"the magazine commented. The signals here should not be missed. In mid-January, Extinction of the species the Economist refused to carry a paid political advertisement submitted by the Schiller Institute attacking the Alexandria, Brief excerptsfrom theLondon Economist's Dec. 24, Virginia frameup of Lyndon LaRouche and associates. The 1988. editorial entitled, "On the destiny of species" : magazine said the ad was too "anti-Soviet." In relevant quarters of the British Establishment, La­ Extinction is an inescapable fact of life, and this is no Rouche is despised precisely for opposing today's revival of bad thing. Conflict is necessary to an ecology, rather the Chamberlain appeasement policies and for his opposition as competition is necessary to a market. So long as to "Europe 1992." More than that, LaRouche is widely known there is conflict, there will be natural selection. So long in the City of London and elsewhere, as the most impassioned as there is natural selection, new species will evolve­ proponent of "Hamiltonian economics" alive today. In an and established ones will die off. Extinction is an in­ article in its "American Survey" section on the LaRouche tegral part of the history of life: No species is going to conviction in Alexandria, the magazine had nervously noted last for ever. the growing electoral support in the U.S. for LaRouche sup­ There is no reason to think that the infant species porters , and reported: "His campaign against international Homo sapiens is any exception to this rule.... Ad­ bankers has won some support in the depressed Midwest." mittedly, Homo sapiens has more control over its en­

vironmentthan its predecessorshad . . . . The clan of Lord Vic Rothschild Controlling the environment to any great degree, The Economist speaks for some of the most important though, is a new-found skill. There is not much to elements of the British banking and intelligence establish­ suggest that organized agriculture, the most successful ment. It is owned by the Pearson Group and the Lazard way to pervert the course of nature, stretches back banking interests. The former is the financial repository of further than 10,000 years-a tenth or so of the time the trust funds of the Pearson family, whose chief represent­ since Homo sapiens emerged as a species. ative is Lord Cowdray . The Cowdray-Pearson clan has been, This is not to say that the riseof human civilization historically, the chief interest in the powerful British Petro­ is insignificant. But there is no way of showing that it leum conglomerate . London's Lazard bank is linked to La­ will be much help to the world in thelong run. It is still zard Freres in the U. S. (Felix Rohatyn, Katharine Graham of too early to tell .... the Washington Post, etc.) and in France, and is a key' "Eu­ rope 1992" bank. Sir Evelyn de Rothschild is the chairman of the N.M. Rothschild's investment bank, which has taken a leading role were in significant part cultivated by his great-uncle, the late in the "privatization" gambit of the past years. A director of Lord Mountbatten. Mountbatten personally brought Soviet this bank is Sir Evelyn's uncle, Lord Victor Rothschild, one agent Armand Hammer into Buckingham Palace, where he of the more significant figures in the British Establishment is well entrenched to the present day, as one of Charles's best over the past six decades. According to one senior British friends. insider, Lord Rothschild spends most of his time these days The Mountbatten-Rothschild connection comes in from working out of the bank. a second direction. Mountbatten was a patron of the "peace In the 1930s, Victor Rothschild was a member of the movement," and sponsored the activities of the Stockholm select secretive Cambridge Apostles cult. He was an" intimate International Peace Research Institute (SIPRI). The chief of the Burgess-Blunt-Philby-Maclean Soviet spy nest. Dur­ British representative on the Governing Board of SIPRI to­ ing the 1980s, he has deployed considerable energy to dis­ day, Emma Rothschild, is Victor's daughter, an important prove that he was the "Fifth Man" in this nest. Some expert operative in the KGB-linked international "peace research" observers wonder if Victor Rothschild is, in fact, the "First movement. Her father is reportedly exerting considerable Man," the controller and/or patron of the rest. energy to prevent further discussion of her mysterious role in Victor Rothschild embodies the intersection point of the the circumstances leading to the assassination of Swedish East-West "Trust"; the "Andropov-Ogarkov Kindergarten" Prime Minister Olof Palme in 1986; during late 1986-early which today runs the U.S.S.R.; the leading levels of Anglo­ 1987, this was a hot subject of international controversy. In American banking; and high-level circles of British scientific March of this year, a book is being released in Britain on the intelligence. His sister, Miriam, is a top scientific adviser to Palme assassination by an anonymous author, entitled, Death Prince Charles, whose penchant for pseudo-scientificquack­ of a Statesman. A high-level British source reports that the ery is well known. Charles's gnostic and leftist proclivities actual author is none other than Emma Rothschild herself.

48 International EIR February 3, 1989 Will Bush grasp the opportunity for a new era in U. S.-Japan relations?

by Paul Goldstein

President George Bush is scheduled to meet Japanese Prime take can only defend theUnited States for the next six months, Minister NaburoTakeshita on Feb. 2, the firstfore ign leader maybe slightly longer (see Strategic Studies). to meet President Bush, although this event breaks the prec­ With LaRouche's objections in mind, it can be expected edent of a ritualistic meeting with the British Prime Minister that one of this group's first actions will be to keep Japanese as the first head of a foreign government to meet a new interest rates relatively stable, which in tum may allow the President. Bush is going to face a whole new set of chal­ U. S. to maintain interest rates at close to their present level. lenges, unprecedented in U.S. -Japan relations. The President While defending the dollar, Japan will direct a flow of in­ will no longer meet a docile, complying partner. Rather, he vestment into the United States at a rate of $5-8 billion on a will meet a Japan which is now in a position to demand more monthly basis. nearly equal partnership. Part of this Japanese gameplan will be to increasingly Foreshadowing the consensus thinking of the Japanese shift their investments away from Treasury notes, govern­ about U.S.-Japan relations, and what the Prime Minister is ment bonds, and real estate into direct investment in U.S. likely to have to say to Bush, was a statement issued by industry. According to a Japanese official at the Ministry of former Japanese Foreign Minister Saburo Okita. At a press Industry, Trade, and Investment (MITI), the United States conference in Toyko in mid-January , Okita stated in unequi­ cannot improve its trade deficit without improving its pro­ vocal terms that if the United States wants Japan and other ductive capacities and productivity. The Japanese will try to allies to "burden share" in military expenditures, then the convince a reluctant Bush administration to expand U.S. United States will have to "power-share" with Japan. He productive investment. added that at this time, he does not think that the "American This policy does not affect the overall global debt crisis psychology" will permit itself to see the fundamental need to and the destruction of the Third World. The Japanese are reshape its thinking about U.S.-Japan relations or about the simply attempting to maintain the United States as a military global financial and economic situation. superpower, despite itself. Okita's forthrightness comes at a dramatic moment in Japanese sources also point out that the Mitsubishi­ Japanese history: the death of Emperor Hirohito and the be­ Chrysler Corporation cooperation agreements are becoming ginning of new era, which the Japanese call Heis ei. a model for U.S.-Japan industrial ties, and military cooper­ One must properly situate the remarks of Okita, and look ation as well. Recently, a MITI delegation visited the United beneath the superficial reports concerning the death of the States and proposed sharing Japanese technology on the new Emperor, its impact upon the Japanese elite, and its relation­ Japanese fighter plane, the FSX, which is in some ways an ship with the new Bush administration. Let us tum to the advance over the U.S. F- 16. The Japanese have offered the internal factional situation in Japan and how the world stra­ wing design and its ceramic composition, which makes the tegic crisis is shaping its development. plane lighter and stronger, to the United States in exchange for more advanced forms of cooperation on the Strategic Pro-American vs. anti-American factions Defense Initiative (SDI). According to a top official within the corporate giant These kinds of actions represent the predominant policy Mitsubishi, Japanese policy is dominated by a pro-American track in Japan at this time. However, there is a strong oppo­ faction centered among the old Meiji combination of banking sition to this policy view, which has been growing in recent and trading companies. Led politically by Mitsubishi, along years, and is centered on the Mitsui complex, which is aligned with the Sumitomo bank and the Daichi Kangyo, the world's with the European oligarchy. Aligned with Mistui is the Bank largest bank, this combination will defend the remains of the of Tokyo, and the organized crime networks of R. Sasagawa. U. S. economy over the next 18-24 months. This factional grouping is tied to the "Europe 1992" crowd But Lyndon LaRouche, founding editor of the Executive of European Commission president Jacques Delors, and is Intelligence Review, has stated that the Japanese cannot bail extremely close to the British Royal Family. out the U.S. economy, and whatever actions the Japanese Working with the London-Zurich banking circles, they

EIR February 3, 1989 International 49 are looking to crush the U. S. economy, and place the United Honor." What this Heisei period actually represents in the States under International Monetary Fund dictatorship. Part mind of the Japanese elite, is that World War II and U.S. of their operational gameplan is to keep the dollar's value domination are at an end. The United States can no longer low, while keeping oil prices relatively high. dictate to the Japanese terms by which the Japanese simply Mitsui controls, through its trading company affiliates, a fill in the gaps caused by U.S. policy failures, including significant portion of Japanese oil imports, and is working financial and economic policies. closely with London in securing a major foothold in Saudi If Bush fails to understand the lessons of Gen. Douglas Arabia against U.S. strategic interests in the Middle East. MacArthur's dealing with the Japanese in terms of his rec­ ognition of the importance of the Emperor in shaping the The Anglo-Japanese Treaty cultural tone and direction of the country , then a surprise This latter grouping is attempting to fashion an updated attack worse· than Pearl Harbor will occur. Japan will make version of the 1902 Anglo-Japanese Treaty, a treaty which its own deals with the Russians, the Chinese, and the rest of broke the emerging alliance of Meiji Japan and the United Asia. States. Playing upon Japanese imperial interest in Asia, the Japan's pro-American policy, even under the present British were able to capture the majority of the Japanese elite "Peace with Honor" orientation centered upon the Mitsubishi to a policy standpoint which made Japan an Asian power to combination, is limited. The Japanese cannot fulfilla historic contain Imperial Russia and divide China into British and shift in global economic relations without supplanting the Japanese spheres of influence. So, Japan defeated Russia in International Monetary Fund and its allies in the insurance the 1904 Russo-Japanese War, and went on to colonize Korea and banking cartels. So as long as Japanese policy is keyed and Taiwan. In this process, the anti -war, ostensibly pro­ off U.S. policy concerning the IMF, Japan's room for initia­ American faction within the Japanese elite was decimated tive and action is limited. But so far, Japan has done nothing through assassination and terror by the mid- 1930s, leading to challenge IMF policies, except to bypass the IMF in certain Japan into the attack on the United States. areas of Asia based upon bilateral relations. During this period, the Showa Emperor Hirohito became a captive of this faction, which essentially dictated most of The Bear, the Dragon, and the Emperor the policy decisions endorsed by the Emperor. As for Russian initiatives in the area, mainly reflected in It is ironic , but nonetheless instructive, that the same President Mikhail Gorbachov's Vladivostok speech and his factional forces around Mitsui and the British Royal House­ United Nations statement, the Japanese see no fundamental hold are now trying to capture the new Emperor Akihito. change in historic Russian imperial interests in Asia. Specif­ Despite much internal wrangling within the British establish­ ically, the Kurile Islands dispute assures the Japanese that ment, a decision was reached to send both Prince Philip and the Russians have not and will not change. The occupation Foreign Secretary Sir Geoffrey Howe to Emperor Hirohito' s of the Kuriles by the Russians represents a direct military funeral , scheduled for Feb. 24. The British want to maneuver threat to Japan through the "Northern Route." Prince Philip into becoming the Emperor's foreign confidant, Russian dealings with the mainland Chinese inthis regard a position Philip is well-situated to assume, since Akihito are viewed by the Japanese in the context of Manchurian, spent a great deal of time in Great Britain during his univer­ Outer Mongolian, and Korean development. The Japanese sity days. want to contain Chinese influence in the region, while at the Part of the British intelligence design to psychologically same time providing some means to aid in China's economic softenup the new Emperor is the campaign against his father development-however, with great caution. There remains launched by a British Broadcasting Corporation documenta­ a tremendous potential for industrial development in this ry , which called Hirohito a "war criminal." Utilizing British region, with the Japanese taking a leading role. But given the and American sources, the BBC production portrays Hirohito policy failures in Washington, which has no view to the as integral to Japan's war effort and the surprise attack on economic development of Asia, the Japanese foresee the Pearl Harbor. Russians filling the vacuum. Eventually, given this frame­ For the British to succeed in their efforts to secure Akih­ work, the Japanese would have to cut a deal with the Russ­ ito's trust and shift the present internal situation in Japan, sians. Bush and the "secret team" running U.S. policy must com­ Unless President Bush goes beyond the old arrangements pletely misread Japanese intentions and the meaning of the with the Japanese, seeks to forge an alliance for the devel­ Heisei period of Emperor Akihito. opment of the Third World and break the cycle of "Jap­ bashing," and signals the Japanese that the United States will 'Peace with Honor' not abandon its peace-keeping role in Asia, then the pro­ The proper meaning of H eisei is not the popular transla­ American forces in Japan will lose face. The British-Mistui tion, "Achieving Peace or Consolidating Peace." Its actual alliance will again come to the fore , portending a greater meaning, according to a Japanese scholar, is "Peace with calamity than Pearl Harbor.

50 International EIR February 3, 1989 are committed to destroying Malay political dominance in Malaysia, and whose disruptive tactics are strongly reminis­ cent of the Malayan Communist Party (MCP). Malaysia poll echoes Malaysia has a unique electoral tradition among nations, and this election will be a unique test of it. The government independence struggle is run by a coalition of political parties, however, totally unlike the parliamentary system of European nations, it is formed before an election and functions as a permanent in­ by Sophie Tan apura stitution without consideration as to what an individual party scores at the polls. The fo llowing report was filedfr om Bangkok on Jan . 24. Thus, for the upcoming Jan. 28 election in Ampang Jaya, a district just outside the nation's capital of Kuala Lumpur, On Jan. 28, the third off-season election will be held in there will be as of this writing, two major candidates com­ Malaysia since the opposition launched its strategy to dis­ peting. One, Mr. Ong Tee Keat of the MCA, the other, Datuk credit Prime Minister Dr. Mahathir Mohamad by orchestrat­ Haji Harun Idris, representing the united efforts of all oppo­ ing the resignation of members of parliament, thereby forcing sition parties. Mr. Ong is the 32-year-old political secretary premature elections in the just vacated seat. In this most to the Minister of Labor Lee Kim Sai, himself a leader of the recent case, Dr. Lim Ann Koon of the Malaysian Chinese MCA. Ong, an engineer, is fluent in Malay, Chinese, and Association (MCA) was pressured to resign by dissidents of English, and is a "grass roots" organizer for the Labor Min­ the ruling United Malay National Organization under the istry. All the member parties of the Barisan coalition­ leadership of Tengku Razaleigh in order to field a candidate UMNO, MCA, Malaysian Indian Congress, Gerakhan , and of their choice. Dr. Lim insisted that his resignation was for others-will campaign and support the election of Mr. Ong, "personal reasons" only; however, the opposition's arm­ who represents not the MCA, but the Barisan in this election. twisting was an open secret widely discussed in the Malay­ The constituency of Ampang Jaya, with a total population sian media. It is not difficult to interpret Lim's unexpected of 69,000, is 68.3% Malay, 25 .8% Chinese, and 4.6% In­ move as serving only to discredit the MCA, especially in the dian. The challenge for the predominantly Malay population eyes of its coalition partner UMNO. will be to rise above any racial bias and vote for a Chinese The opposition strategy at this point is not so much to politician who represents the very political system, the Bar pack the parliament with their people, but rather to build a coalition, upon which the country successfully won indepen­ climate of animosity toward the prime minister and try to dence. Historically, the Barisan, and its predecessor, the create a loss of faith in his authority, thus forcing him to step Alliance, have deliberately fielded non-Malay candidates in down or call early federal elections. The leadership of this Malay districts and vice versa to foster racial harmony. effort consists primarily of former Prime Minister Tungku For their part, the opposition is playing a particularly evil Abdul Rahman; former Trade and Industry Minister Tengku role by fieldingan ethnic Malay candidate, a long-time polit­ Razaleigh; and Mahathir's former Deputy Prime Minister ical activist, well known to the electorate, who also wants Musa Hitam, all with deep personal grudges against Mahath­ only to unseat Mahathir. The Malays have therefore been ir. Their drive to overthrow him has not been easy, since he placed in a clear crisis of identity as to where their loyalties still enjoys much popular support and is generally credited are-to a higher principle of racial harmony and national with Malaysia's economic and political stability. well-being, or narrow racial self-interest. It is worth noting Therefore , in order to create the political and economic that as soon as Dr. Lim Ann Koon resigned his seat, UMNO chaos necessary for massive unrest, opposition leaders have leaders announced that the MCA would have the right to aligned themselves with both domestic and international choose a new candidate, since this seat, by Barisan agree­ groups committed to Malaysia's destruction as a sovereign ment, was assigned to the MCA, despite the fact that it had nation: environmentalists, pro-drug lobbyists, Amnesty In­ predominantly a Malay constituency. The principle of Bari­ ternational, the International Labor Organization (ILO), Is­ san unity would thus be maintained. lamic fundamentalists, and most crucial for their strategy, the international press "mafia," who generally despise any The historical precedent nationalist leader exerting sovereignty over his country. The In 1952, five years before winning independence from opposition's hypocritical campaign slogan for this election, the British, the Malaysian people were confronted with a "We abhor despotism," is clearly intended more for interna­ similar test. Up to that point, both the Malays and Chinese tional consumption than to gain any credibility domestically. were separately represented by their own organizations, Most egregious in the eyes of Malays has been the alli­ UMNO and the MCA. The Alliance was the brainchild of ance theseformer UMNO officials have built with the Chinese Col. H.S. Lee, the head of the Selangor MCA, and Datuk communalist-based Democratic Action Party (DAP), who Abdul Razak, his counterpart in UMNO and the man later to

EIR February 3, 1989 International 51 be known as "The Father of Development," Malaysia's sec­ ond prime minister. Rather than fielding candidates against each other in the first elections the British permitted under their rule, the two leaders decided to collaborate and field a common slate in Kuala Lumpur under the Alliance banner. Though the British claimed that without racial harmony, they would not grant independence, they opposed the Alliance, Benazir Bhutto visit and instead backed the former UMNO leader Tun Hussein Onn, who had since been forced out of the party ! removes Saudi doubts Onn advocated opening UMNO to non-Malays (which he later reversed). This was vehemently opposed by the rest by Ramtanu Maitra of the party on the grounds that in the midst of a full-scale war against a predominantly Chinese communist guerrilla force, they could not safely permit Chinese into the party. Pakistan Prime Minister Benazir Bhutto Zardari' s Jan. 10- The Malays were also clearly committed to reasserting their 12 visit to Saudi Arabia was a resounding personal success dominance in their native country after being relegated to a for the new prime minister. The two-hour meeting she had mostly Kampung (village)-centered existence, playing vir­ with King Fahd bin Abdul Aziz in the presence of top tually no role in the business community, which was domi­ aides and leading members of the Saudi royal family was nated by the Chinese. Though a corrupt Malay sultanate had "remarkably warm" and friendly. King Fahd, it was an­ accepted the niche-like existence of the various races, the nounced, accepted an invitation to visit Pakistan, and as leaders of the independence movement were challenging the Pakistani Foreign Minister Yaqub Khan pointed out upon status quo. The creation of the Alliance provided the best return to Islamabad: "There was no indication that the possible solution under the circumstances to ally the Chinese Saudi governmentand leadership regarded her as anyone and the Malays, and soon afterinclude those of Indian heri­ else but the chief executive of Pakistan." tage in the MIC. The significance of Bhutto's choice of Saudi Arabia The Alliance won 11 out of 12 seats, Onn's party taking for her first trip abroad since assuming office cannot be only 1. The British, needless to say, were caught totally by overstressed. The Saudi kingdom has remained a trusted surprise, and a new era was born. The Alliance was then friend of Pakistan throughout the upheavals the country elevated to a national level and proved equally successful in has faced over the last two decades. Saudi Arabia provides the next major elections in 1955, when they won 51 out of financial support in the form of crude oil at concessional 52 seats in the Federal Legislative Council. rates, and has also contributed generously to lighten Pak­ If member parties of the Barisan coalition take advantage istan's burden in maintaining 3 million Afghan refugees of the historic opportunity offered in this election and fight who came to Pakistan after the 1979 Soviet invasion of to rally especially the Malays around the higher purpose of Afghanistan . Continuing Saudi financialsupport for Pak­ the Barisan, election victory will be probable. The full com­ istan could be crucial for Bhutto, who has pledged to mitment of all Barisan parties to back Mr. Ong has been eradicate poverty and make Pakistan "another Japan." announced, and is the firststep in the right direction. Remarks made at the first national joint convention of the MCA and Washing away misgivings UMNO following the victorious 1952 elections can surely There had been audible rumblings in the Arab capitals provide the appropriate spirit to meet the current challenge. after Bhutto' s election victory and accession to power last The MCA President Datuk Tan Cheng Lock told the Conven­ December. Arab leaders were uneasy about a woman tion: heading an Islamic state, and reportedly there were mis­ "Emancipation from oppressive conditions, whether they givings within Saudi Arabia about the Bhutto family's ties be political, social, or economic, can only be won at the price to Iran. Bhutto's mother, Begum Nusrat Bhutto, who chairs of personal endeavor. National progress must be attained by the Pakistan People's Party, is from Iran. definitelyorganized and carefully concerted endeavor. Suc­ With her trip to Saudi Arabia, Prime Minister Bhutto cess needs to be achieved; it cannot be granted or conferred. "There is no magic formula for the attainment of Malayan freedom and independence. It is a matter of hard work and sweat by each and every one of us who loves and is devoted the prerequisite of freedom and independence. to Malaya as his homeland or permanent home. "The merger of the UMNO and MCA which recently "We must exert our earnest and utmost efforts to achieve swept the board at the Municipal and Town Council elec­ the positive task of bringing about and advancing the cause tions, the formation of Sino-Malay Liaison Committees in of unity, especially between Malays and Chinese, which is the various parts of the Federation, and the organization of

52 International EIR February 3, 1989 acted quickly to quell such fears . She sent Khan Bahadur lamic Council and attended by more than 1,000 delega­ Khan, Minister for Religious and Minorities Affairs , with tions from the Muslim world, passed a resolution branding a message to the Saudi leaders pledging Pakistan's contin­ Iraq as the aggressor in the Gulf War, Saudi Arabia, and uing commitment to Saudi security. Minister Khan met other Arab states sent a communique to Islamabad pro­ with Crown Prince Abdullah and Prince Naif, interior testing the resolution and Pakistan's involvement in pro­ minister and a full brother of the king. While still in Saudi ducing it. Arabia, Minister Khan announced that Mrs. Bhutto would There are other outstanding matters . In 1985, Saudi be visiting Saudi Arabia in January . Arabia had asked the late President Zia ul-Haq for a partial Officially, Bhutto's visit was to perform Umrah (pil­ withdrawal of Pakistani soldiers from the kingdom. At grimage to Holy Mecca in the non-Haj period) at Makkah least 10,000 Pakistani soldiers, approximately 20% Shiite Mukkarrama. During the pilgrimage, her entourage, which Muslims, were stationed in Saudi Arabia, holding key consisted of 60 people who had suffered at the hands of positions in the technical branches of the armored corps, the previous regime for their fight for democracy, was air force, and navy. afforded the rare opportunity of entering the Khana-e­ A problem arose when reports came that some Paki­ Kaba, the House of Allah. Reports say that when Bhutto, stani soldiers had refused to engage in police action in the supported by her husband Asif Zardari , emerged from the eastern region of Saudi Arabia against the local popula­ Holy Kaaba, tears were streaming down her cheeks. It can tion, a large number of whom were Shiites. It was also be assumed that the Harvard and Oxford-educated prime reported that a number of Pakistani soldiers had deserted minister had also established her credentials as a faithful Saudi Arabia and sought political asylum in the neighbor­ follower of Islam. ing Yemen Arab Republic following a minor border inci­ Relations among Saudi Arabia, Pakistan, and Iran were dent between Saudi Arabia and Iran. a key point of the agenda, as indicated when Foreign Although reports of a mass exodus of Pakistani forces Minister Yaqub Khan, not originally included in the prime from Saudi Arabia were exaggerated, many high-level minister's entourage, was summoned to Dharan, Saudi visits by Pakistani leaders, including then Prime Minister Arabia, where they were meeting. According to the Isla­ Mohammad Khan Junejo in December 1987, were under­ mabad daily The Muslim. Yaqub Khan's presence could taken to sort out the delicate matter. have been related to Pakistan's role in bringing about Another issue on the agenda for Bhutto and King Fahd better relations between Saudi Arabia and Iran . was the fast-breaking situation in Afghanistan. Saudi Ara­ In the long-drawn-out war between Iran and Iraq , Sau­ bia has consistently backed Pakistan's policy toward the di Arabia has backed Iraq's war effort, while Pakistan has Afghan mujahideen. 1t was at King Fahd's behest that the remained neutral, a posture which has sometimes been recent meeting between the Peshawar-based IUAM and construed in Riyadh as a pro-Iran tendency in Pakistan. In Soviet Deputy Foreign Minister Yuli Vorontsov took place November 1987, for instance, Iran and Pakistan signed a at Taif. King Fahd also met privately with Vorontsov. trade agreement which ensured a $400 million two-way Pakistan and Saudi Arabia both agree that the Soviet trade. In addition, Iran agreed to supply 20,000 barrels of troops must withdraw by Feb. 15, as stipulatd in the Ge­ crude oil a day to Pakistan (Pakistan rejected the offer to neva Accord, and the Afghans must be leftalone to decide supply its entire requirement). The agreement also provid­ what form of governmentthey want. There are, however, ed for the use of Karachi and the neighboring part of differences, due largely to the circumstances and con­ Muhammadbin Qassim for the import of Iranian goods . straints in which Pakistan has to function. For example, The agreement was made a day before the U. S. declared while the Saudis appear to be open to theSov iet insistence an economic boycott of Iran, and at a time when Saudi that the ruling People's Democratic Party of Afghanistan Arabia was attempting to organize a collective Arab man­ (PDPA) must be included in the broad-based coalition datory boycott against Iran. government in Kabul following the Soviet troops' with­ Later, in February 1988, when an international con­ drawal, this concept is flatly rejected by the Peshawar­ ference in Islamabad sponsored by the London-based Is- based mujahideen.

today's National Convention under the joint auspices and And from a convention address by Datuk Abdul Razak: leadership of UMNO and MCA to work for the attainment of "Let the unity so far established be the foundation on Malayan independence furnish concrete proof of the signal which to mold a bigger and more lasting unity which will success of the Alliance, which is essentially non-communal grow into a national solidarity on which the future of this in spirit, aim and nature." country will be molded and consolidated."

ElK February 3, 1989 International 53 On cue, early press reports in Argentina and internation­ ally insisted that the incident was another military uprising, probably involving Seineldin' s supporters. Although by mid­ day on Jan. 23, several government officials and congress­ Narco-terrorism rears men admitted that Colonel Seineldin had nothing to do with the action, President Alfonsin made no official statement head in Argentina until the evening of Jan. 24. The group's plan apparently was to quickly enter the base, steal weapons from the sizable arsenal located there, by Cynthia Rush distribute their literature and leave. The terrorists were highly trained, and fought ferociously with Soviet and Chinese­ Argentina's profound political and economic crisis worsened made weapons, not commonly found in Argentina. Govern­ in the early morning of Jan. 23 when a group of left-wing ment sources described the group's action as "demonstrating terrorists took over the Third Infantry Regiment at La Tablada a high degree of knowledge of operations of this kind." One on the outskirts of Buenos Aires, leading to a 29-hour shoo­ observer likened the ERP to Peru's Shining Path, because of tout with armed forces units . When the shooting ended, 36 the brutality of its methods. were dead, most of them subversives, and 63 wounded. The plan was foiled when neighbors alerted police to the The nation is paralyzed by an unprecedented energy crisis terrorists' presence, and when soldiers inside the regiment and deepening economic recession due to the International offered unexpected resistance. This gave Army artillery units Monetary Fund's economic policies. The violent incident, time to get to the base and oppose the terrorists with tanks reminiscent of terrorist attacks of the 1 970s which most Ar­ and mortar fire. Many of the young soldiers who left the base gentines recall with horror, is a further blow to the country's made clear that the long-haired attackers "were leftists," who precarious stability. had nothing to do with the armed forces. One source has told EIR that Argentina has become a "powder keg" as a result of this incident, and suspects the 'Something big is up' involvement of foreign intelligence services. Former CIA Sources evaluating the events of the past few days suggest director William Colby, and his immediate circle, are sus­ that a serious investigation must consider possible involve­ pect. It is also feared that the incident augurs the beginning ment of the Alfonsin government. There are numerous offi­ of a major offensive by Soviet-backed narco-terrorists, to cials inside the governmentwho openly sympathize with the ensure the destruction of any sovereign institutions still in­ goals of the MTPP and the left. tact. It is significant that the subversive action was initially The 50-person squad which took over the La Tablada intended to implicate Colonel Seineldin, "proving" recent base was made up of members of assorted leftist groupings, accusations by the MTPP and the governmentthat the colonel primarily the Trotskyist People's Revolutionary Army (ERP) was plotting to overthrow Alfonsin with Peronist presidential which was active during the 1970s, and is now grouped into candidate Carlos Menem. One week prior to the Jan. 23 the "Movement of Everyone for the Fatherland" (MTPP). attack, the MTPP filed suitwi th a federal judge, alleging that Also included, according to reports, were members of Ar­ Seineldin and Menem had met secretly, and planned an "in­ gentina's Communist Party who have traveled to Nicaragua stitutional coup" against Alfonsin , by which Congress would in the past to "help" with that country's coffeehar vest. How­ be dissolved and current Vice President Victor Martinez in­ ever, in the attack on La Tablada, these individuals attempted stalled as President. to pass themselves off as right-wingers , supporters of the In a Jan. 20 press conference, Alfonsin echoed the MTPP nationalist Army Col. Mohamed Ali Seineldin . line very precisely when he charged that Seineldin "philo­ Seineldin, a hero of the 1982 Malvinas War, has taken a sophically conspires against democracy," and attacked Me­ stand against the pro-Soviet Project Democracy apparatus nem for having characterized the military hero as a "valiant which seeks the dismantling of Ibero-America's armed forces. man." He added, "There are many people close to Dr. Me­ For that, he has been dubbed a "coup-monger" by U.S. and nem who visit Colonel Seineldin ." Argentine social democrats. After the fighting ceased at La Tablada, officials found Upon entering the base, the leftistsdist ributed pamphlets leaflets issued by the attackers which claimed that they took identifying themselves as members of the "New Argentine the action to halt an "imminent military coup." Among the Army," allegedly formed to "combat Marxist subversion dead was a leader of the MTPP from the Zarate section of within the government"and the ruling Radical Party's "cam­ Buenos Aires. It was the MTPP, Communist Party, and other paign to destroy the Army. " The pamphlet praised both Sei­ assorted leftists who, following Colonel Seineldin's early neldin and Col. Aldo Rico, the leader of earlier military December military action, called for arming the citizens and rebellions. waging "people's war" against the armed forces.

54 International EIR February 3, 1989 Interview: Dr. Jorge Quadro

Fighting drugs and satanism in Argentina: the PROLATIN story

Dr. Jorge Quadro,president ofthe Argentine Catholic League most important or effective work until now? fo r a Latin American Campaign fo r Aid to the Drug Depend­ Quadro: We have been working in the preventive, legal , ent (PROLATIN), was interviewed by EIR' s Cynthia Rush on and informational areas, to which we give much importance. Dec. 31, 1988 . We have tried to attack the causes, such that the Argentine Formed within the past year, PROLATINhas adopted an governmentat mid-year, or slightly earlier, incorporated into aggressive policy of combating Argentina's growing drug the statements it has endorsed a denunciation not only of the trade, and "getting things done" in imaginative ways, even drug trade, but of the drug-banks ....We are also fighting without a large budget or resources, because it is morally for legislation that has been sitting in the Congress for two necessary to do so. Guided by Pope John Paul II 's thinking years . that the drug plague is a new fo rm of slavery, PROLATINis As the Catholic League, and although I depart a bit from distinguished from organizations fo cusing solely on "reha­ your question, it is appropriate to clarify that our actions are bilitation." It is willing to expose the role of powerful politi­ not on orders of the Church hierarchy, but rather, that we calfactions and institutions such as the International Mone­ take up the line framed by Vatican Council II, in the Opening tary Fundin promoting the expansion of the drug trade . For Pastoral Letter of the Catholic Church to the Laity, which this, it has earnedthe enmityof both the left as well as liberal clearly urges us to personally and actively carry out the Gos­ banking circles, although it enjoys the firmbacking and grat­ pel. In this sense, our organization is made up of Catholics itude of the community and parents whose children are vic­ committed by the Baptism to the Holy Mother Apostolic and timized by the drug mafia. Roman Catholic Church. Through this [work] we can thus emphasize the role that EIR: Doctor Quadro, can you tell me a little about when the John Paul II has been carrying out as leader of the Church. League was formed, for what specific purpose, and what There are few world statesmen who clearly concern them­ work it is currently carrying out in Argentina? selves with this problem, among whom is Lyndon LaRouche. Quadro: Our organization became active this year, al­ though it had been in the process of formation earlier, based EIR: Regarding your mention of legislation, are there cur­ on the work and information of Mr. Lyndon LaRouche's rently in Argentina strong laws that prohibit consumption? group, with which we agreed. We made our appearance this What is the situation with government or police budgets to year, and rapidly got a response from the Argentine Interior fightthe drug trade? Ministry .... Quadro: Current law in Argentina is bad, since the interpre­ Our organization stands as the first of its kind, since it tation of the law offered by the judges permits consumption addresses the broad spectrum of how the drug phenomenon in a somewhat elliptical form , and the legislation has evolved is produced, its causes and effects, its impact on the interna­ to include individuals who have several grams [of marijuana] tional order, its economic power, the interests that operate in in their possession, with the consideration that those grams its orbit of influence and which give it presence in the inter­ are for their "personal" consumption and not for trafficking. national arena, the vehicles it uses, the influences it develops For example, from three grams, it has passed to 14, 15, 17, down to the level of the individual consumer, and the growing 25 grams, split up in envelopes! spread of drugs in the neighborhoods, schools, etc . And, if Two years ago, an excellent bill was being discussed in possible, how to stop it. the Congress but has since suffered several changes in com­ mittee. Nonetheless, the direction of that bill, should it ever EIR: Since its founding this year, what has been the League's be applied, is quite good-not only because it punishes the

EIR February 3, 1989 International 55 consumer with sentences that would force him to be rehabi­ drugs and drug themselves within just a few meters of the litated in prison, but also because it carries severe penalties Boulougne police station. This police inactivity began to for the drug trafficker. One very good thing is the seizure of change after the operation we carried out. That is to say, the real estate in areas where drugs are consumed. efforts of PROLATIN and of this small group of Catholic Regarding the budget, a Division of Dangerous Drugs of federal police officers who form part of our League, enable the Federal Police was created in 1987, raising the budget. us to strike surprise blows anywhere in the country, and We believe, considering the merits of the material we possess primarily in places where they would seem to enjoy a suspi­ and the nearly weekly meetings with the Interior Ministry, cious impunity. that while we may not have achieved a change in policy or This is what we want to create . . . even as Argentina budget increase, we have created a genuine interest in fight­ finds itself subjected to the tyranny or to the dictatorship of ing this plague. To achieve this, we have taken certain cours­ the International Monetary Fund, which as we know is the es of action. main agent of narco-terrorism on the continent. Given the We proposed that members of the police with solid Cath­ few resources wehave , we believe that our use of a surprise olic upbringing could guarantee the incorruptibilityof police strike force has made criminals feel less sureof themselves. procedures. This led us to carry out some operations in the provinces, authorized by the corresponding ministry .... EIR: In our publications, we have documented the involve� The operations carried out by PROLATIN, at some of ment of the Soviet Union and its various satellites in the drug which I was present in my capacity as president, as was the trade. For example, in Latin America, we see the case of the League's spiritual adviser and chaplain, Luis Jardin, began Cubans. While at this moment in Argentina, there is no to take place in mid-October. narco-terrorist apparatus like that which exists in Colombia The first operation took place in San Martin, against a or in Peru , what you have told me regardinggroups like the trafficker whose father was a renowned Peronist politician in MAS or former Montoneros suggests that a similar phenom­ the zone. The second operation was carried out by asking ena could be forming. What do you think? mothers to call in and give us information so that, we could Quadro: We are absolutely convinced that an economy . . . rapidly resolve some problems of controlling drug traf­ which is not ordered on ethical and moral principles, that is, ficking.... Among the places about which we received the a new economic order which respects man, will necessarily most complaints were two coffee shops with the same own­ lead to slavery. This slavery can come, as I said earlier, ers, called Stilo and Olipse, in Boulougne, San Isidro .... through indebtedness to the narco-banks, or through the un­ We carried out that operation in mid-November. scrupulous activities of philosophically materialist individu­ Thus we took some fiveindividuals prisoner, one of them als, like the Marxists, who are not going to hesitate to use being Rene ErnestoTola va, and his brother Hugo Humberto methods for gathering fundswhich violate any moral or eth­ Tolava. One of the Tolava brothers had an extensive police ical principle. blotter because of his operations in the Montonero organiza­ It wouldn't surprise us if those parties which are now tion [a 1970s terrorist split-off from the Peronist movement] . supposedly function within the democratic framework raise He was placed under arrestduring the Proceso [the period of their funds by means of the consumption and sale of drugs the 1976-83 military junta] because of his Marxist terrorist and drug trafficking, creating young addicts who will poten­ actions. It is interesting to note that the electricity for the tially vote for them. coffee shop was supplied by the officesof the MAS, a Marxist Argentina's statistics are relatively poor and contradic­ political party which operated nearby. More than 20-30 mi­ tory. Statistical studies done by PROLATIN of youths from nors, including some under 13 years of age, were arrested in 13 to 24 years of age reveal that 50% of these youth have a joint operation that PROLATIN carriedout with the federal either tried or are regularly using drugs. These are truly police and Buenos Aires provincial police. alarming figures. We believe in this context that the campaign of Marxism in our country, Marxism modeled on the philos­ EIR: I presume that this kind of operation has the backing ophy of [Italian Communist ideologue] Antonio Gramsci­ of the community. You were talking about parents, but what that is, the Gramscian cultural revolution which seeks to has been the broader reaction of people? attack, pervert, or subvert culture-would pull Argentina Quadro: The reaction of the neighbors was always good, away from Catholicism to drive it into a materialist culture because a disgrace was removed from their neighborhood. and into consumption of all of these thin�s. The students in their school uniforms would go in the after­ noons ....One of those coffee shops operated at night on EIR: You know that here in the United States and in the weekends. Apparently this business was so productive that it countries of Europe, a drug-trafficking support apparatus has was extended to the other days of the week through a 24-hour been developed. I refer to rock music, to pornography, to all coffee shop .... cultural degradation to which youth are especially subject. Is In the afternoonhours it was common to see students buy a similar apparatus forming in Argentina?

56 International EIR February 3, 1989 Quadro: The perversion of culture can today be seen clear­ It is suspicious that congressman Oscar Allende [of the In­ ly. This began several years ago, and of course, it is ex­ transigent Party] was there, and at-his side, in an act of overt pressed, among other things, in music. There exist here var­ interference into Argentina's internal problems, was the ious rock bands which praise drugs. The youth, faced with United States ambassador. an uncertain future, sees a future-orrather, an escape-in Oscar Allende specifically-and there are videocassettes this music and in this culture. showing this, exhorted people to mobilize. Of course, no one What is certain is that these groups are not limited merely listened to him; but Marxist and leftist activists did go to to spreading drugs, but promoting a true Satan worship. provoke incidents at the gates of Villa Martelli, where Colo­ There have been bands herewhich have carried out simulated nel Seineldin was located. rapes of the Virgin Mary, of our Holy Mother, on stage, and These are the ultra-leftists who, through their publica­ others who perform Satanic rituals, sacrificing chickens on tions, have been waging a rather intense campaign against stage. Among these bands it is worth mentioning Los Viola­ padre Jardin. Some magazines have dedicated two or three dares (The Rapists). We arrested this band in San Miguel, in consecutive issues to attacks on him. They have targeted him an operation carried out Nov. 16 against a coffee shop called because what Marxism can't tolerate is that we Catholics Latex. We arrested · ...nearly 400 people, including the have avoided civil war among Argentines. So Marxism has entire band. reallyexposed itself. Describing this cultural phenomenon of our youth from 13 to 30 years of age . . . demonstrates the urgency of show­ EIR: Could you brieflycomment on the possibility of closer ing Argentine parents and families how their children enter­ collaboration between countries like the United States and tain themselves, by means of a culture which offers , not the Latin American countries in the fight against the drug diversion but degradation and slavery, and how they grow trade? For example, as a non-governmental body, do you increasingly distant fromthe essential values, not of country have contact with other groups outside of Argentina? but of Man. That is, they are being bestialized .... Quadro: Yes. We have contact with you, with the people Aside from the Marxist groups, one must stress the eco­ of Lyndon LaRouche in the United States. We are in contact nomic realityof currentfinance capital , controlled as we have with the Lincoln Foundation, which is in the Embassy of the charged, by the International Monetary Fund in complicity United States here. We are opening up contact with other with the narco-banks. We believe that as long as banking organizations, and at the Latin American level, with different secrecy exists, there is going to be narco-terrorism, because Catholic groups. This is at the level of contact and some drug banking will continue to exist and, of course, the rock exchange of information. We hope, over the next year to culture, the worship of Satan, will continue to exist, because present a proposal, upon which I am currently working, to a these things are impossible to separate from one another. seminar of the Strategic Schools of the Brazilian and Argen­ tine joint chiefs of staff, through which I propose joint mili­ EIR: I understand that Father Jardin has been a target of tary action, without presenting the budget as an excuse. attacks by these leftist groups, who have accused him of In this fight, if we had the means, the end would come being a "destabilizer of democracy." What is behind these more rapidly. But as Catholics, not having the resources attacks? cannot mean avoiding the commitment to fight. We have, in Quadro: Father Jardin carried out a noteworthy mission of this, the example given by the Argentine Armed Forces in peace and reconciliation among Argentines, around the re­ the Malvinas conflict where, with the resources at their dis­ cent military events [of Dec. 4-5, 1988] in which Col. Mo­ posal, they faced the British Empire, which as we know, is hamed All Seineldin attempted to rescue the Argentine army one of the major centers of the drug trade. from the dissolution into which certain international factions appear to be driving the Latin American armies.... EIR: Is there anything else you would like to comment on Father Jardin approached and helped the dialogue and the that would be of interest to our readers? rapprochement of Argentines in a very difficult situation. Quadro: Yes ....We believe that the center of the cam­ This has not only provoked attacks from the extreme left, but paign should be the prevention of this terrible scourge. And also from publications and magazines which identify him as prevention includes the economic standpoint, where the a man involved in fighting the drug trade. He has also been speCUlative economy must be replaced by a productive one; attacked from the so-called liberal sectors, that is, from sec­ the cultural standpoint, where a Marxist and Gramscian­ tors linked to Argentine financecapital . ... and frequently Satanic-materialist culture is replaced by a There are two important facts. On the one side, while culture oriented toward God. If these aspects of the fightare Colonel Seineldin-as the officer abovesuspicion that he is not consolidated, then the future of humanity is truly endan­ and as the Malvinas hero that he is-limited his actions to gered, because economy and culture are going to be in the the restoration of San Martin's army , some leftist politicians hands of evil. And this is nothing less than a fight of good called on the population to arm itself and to go to the barracks. against evil.

EIR February 3, 1989 International 57 Report from Rome by Our Correspondent

LaRouches welcomed in Rome lapsed? . . . We killed 1.5 million After a VIP tour of the Capitoline, LaRouchesp oke at the milk cows." "To be friends does not meeting of Conjintesa, an economic policycon federation. mean to be subjects, but means to work on the same level." Finally Lyndon LaRouche spoke. He said thatthe present drought is man­ While in Rome recently, Lyndon Secretary Yeutter, "whom we do not made; and Italy's ban on nuclear en­ LaRouche, accompanied by his wife like," because after having impover­ ergy has provoked a situation where Helga, was honored by the City with ished American farmers, he wants to the drought might have worse results, an officialtour of the sort reserved to blame the EC. as we have ruined the forests. In the visiting heads of friendly states. On "LaRouche has always stressed in past 20 years, we have been destroy­ Jan. 18, Prof. Paolo Possenti, on be­ his writings the values of Christian ing agriculture, and agriCUlture im­ half of the Mayor of Rome, Pietro civilization," continued Possenti, de­ proves nature; eliminating cultivated Giubilo, received the LaRouches on scribing how Wall Street's methods lands, we modify the weather, as in the steps of the Capitoline and led them have destroyed American farming. He Sudan or Bangladesh. LaRouche said on a tour of official Rome's most im­ concluded by saying that indiscrimi­ that he had discussed the problem at portant places. nate measures such as Yeutter's are a length with professors in Japan. On Friday evening, Jan. 20, Mr. Sword of Damocles hanging over Then he named who controls the LaRouche was guest speaker at a U.S. -European relations. U.S. Department of Agriculture­ meeting on conflicts between U. S. and The guest speaker at the meeting Cargill, Armand Hammer, Andre­ European Community farm policies, was Hon. Gerardo Gaibisso, elected all friends of the Russians and deter­ held at the Italo-German Friendship to the European Parliament on the mined to create a food shortage. First Association. The meeting had been Christian Democracy's slate for the they prevent food production; second, organized by Professor Possenti, as Third Electoral District of Italy and they lie, saying that we have to stop general secretary of Confintesa, the member of the EC's Agricultural subsidies. The truth is, there are no confederation of associations of var­ Commission. Gaibisso thanked Con­ subsidies: We need parity prices, by ious economic sectors, such as medi­ fintesa and the Italy-Germany Friend­ which the price of an agricultural um-sized farmers, artisans, and small ship Association for giving him the product has to cover the cost of pro­ industries. chance to meet Lyndon H. LaRouche, ducing it. "From my standpoint," he In the audience were local and na­ of whom "I readthe publicationswhich said, "each nation has the duty to keep tional politicians from the Christian I regularly receive." Gaibisso con­ parity prices for reasons of national Democracy, journalists, photogra­ gratulated LaRouche for the "limited, security. . . . The EEC at the begin­ phers, spokesmen of small food-pro­ but very important" electoral results ning worked in that direction." cessing industries, the head of the Ital­ of his political movement in the United "For us, food is an instrument of ian branch of the Hans Seidel Foun­ States He then said that he disagrees policy, a weapon in the positive sense dation, and farmers from the United with LaRouche on the "Europe 1992" towards the development of nations," States, Germany, and France. Single Market, but considers what continued LaRouche. After stating that Possenti situated themeeting in the LaRouche is doing as crucial. Italy is still where the best pasta is context of this year's European Parlia­ Mr. Gaibisso briefed the audience produced, he explained that "our dif­ ment elections and the agricultural is­ on how the GAIT negotiations in ferences areour strength," because we sues at stake. He greeted Mr. La­ Montreal had collapsed: The Europe­ work according to the European cul­ Rouche as "a man held in great con­ ans, led by Commissioner Andries­ tural tradition, and there is virtually sideration here in Europe. . . . He sen, had taken drastic measures, like no problem we cannot solve if dealt represents those who want to improve the set-aside of 1 million hectares of with together; therefore, trade war is the relations between Europe and land or setting milk quotas, hoping to idiocy. U.S .... I fu lly share LaRouche's find an open attitude from the Ameri­ The meeting ended with a discus­ economic ideas." We hope, Possenti cans. But Yeutter's behavior demor­ sion about promoting an informal continued, that President Bush ac-· alized the Europeans: "How many cit­ movement to lay the basis for new cepts the criticisms we Europeans have izens in Europe know that reserves of U.S.-European relations in trade and against the designated Agriculture milk and milk powder have col- agriCUltural policy.

58 International EIR February 3, 1989 Report from Bonn by Rainer Apel

The 'Lip' is back President Bush, Schmidt said, is a top German ex-Chancellor Schmidt and assorted retired central priority for the Europeans and the Jap­ bankers, like deck stewards on the Titanic, try to bail out Bush. anese; it would be at the expense of the Third World, though, as it has been during the past years . In any case, the bailout requirements of the U. S. were W hat is Helmut Schmidt, the for­ Henry Kissinger and in the Bush team such under Reagan, that Europe and mer Bonn chancellor, up to these days? relate to Schmidt as "one whom one Japan hadn't been able to transfer suf­ This politician, in the background deals with much better than with ficient financial resources to the de­ since his overthrow in October 1982, Kohl." After all, self-proclaimed veloping sector, Schmidt said. has suddenly taken on a high public "world-class economist" Schmidt is What he said on this TV program profile. Some say that he may be read­ used to talking on the level of the Tri­ is more or less what the Inter-Action ying a comeback to active politics, lateral Commission; Kohl is, by com­ Council of retired heads of states and maybe even the chancellor's post it­ parison, a provincial mind in the chan­ members of governments Schmidt has self, at the peak of the next global cellor's seat, with no knowledge of the presided over since 1983, has been . monetary crash. Others say he is opt­ real political implications of his post. peddling all along. ing for something bigger yet: a role of Kohl is not made of the stuff real crisis But Schmidt is aware that the influence in world affairs "free from managers are made of. Will Schmidt, problems of 1989 are about to slip out the straitjacket of daily problems in the man Kohl toppled in 1982, end up of control . This is why he helped to Bonn." replacing Kohl? set up a new commission of has-beens Still others are pushing the Schmidt In any case, Schmidt will operate in early December 1988 which is ded­ option against the background of the on the level of world politics, with an icating a special effort to the "flow of escalating tensions between Bonn and emphasis on monetary affairs, for ex­ financial resources to the Third Washington on the Libyan chemical­ ample, the u.S. foreign debt, which World." The commission is manned weapons issue. They recall the resis­ he views as a "number-one challenge by several retired governors of West­ tance Schmidt showed against Jimmy to President George Bush." Appear­ em central banks, whose names reveal Carter during the Brazilian A-bomb ing on German TV for an evening the austerity-oriented agenda. controversy in 1977-78. If current roundtable debate Jan. 19, he advised There is the retired governorof the Chancellor Helmut Kohl "had but an Bush to cut the budget deficitby "$40 Bank for International Settlements ounce of the gumption Schmidt had billion per year, but not more , other­ (BIS), Fritz Leutwiler, and other then, he would not bear what the U. S. wise it would lead to a recession." He prominent former central bankers like does to him now," is a comment often said a cut by even $80 billion, as many AI-Kuraishi (Saudi Arabia), Bernard heard here these days. (Such gossips have called for, would have devastat­ Claphier (France), Robert S. Mc­ "forget" that Schmidt himself, nick­ ing effects on the world economy. Namara (World Bank), Janos Fekete named "The Lip," gave in to Carter in The U.S. policy of borrowing from (Hungary) , and Paul A. Volcker the end.) Japan, Germany, and other allies to (United States). Furthermore, on the On the occasion ofSchmidt 's 70th bail out the U.S. deficits, would have commission are seated Lord Eric Roll birthday last Dec. 23, the Swiss-Ger­ to continue under Bush, Schmidt said, of Ipsden (Warburg Bank, Kissinger man author Rolf Hochhuth praised the because the low domestic savings rate Associates), Jesus Silva Herzog "qualities" of the former chancellor of 3% (as compared to Japan's 16%, (Mexico), and Manuel Ulloa (Peru). and mooted his returnto Bonn on the and Germany's 12%) in the United These "impressive" names have an historical model of Charles de Gaulle, States would not allow the administra­ impressive record of failure and mis­ who took power in France at the peak tion to draw on domestic savings. Bush management over the monetary crises of a combined domestic-international should finda way to balance the deficit of the past 10-15 years. They look like crisis in the summer of 1958. cuts with foreign borrowings, Schmidt a select group of head deck stewards, Apparently, there is manifold in­ declared, mentioning subsidies to the whose job it is to keep the service for terest across the Atlantic too, in a U. S. farm sector as something that the guests intact while the shaken Ti­ Schmidt option for the coming mone­ should be cut. tanic, the old world monetary system, tary turbulences. Policymakers around Supporting the U. S. dollar under is sinking.

EIR February 3, 1989 International 59 From New Delhi by Susan B. Maitra

Congress (I) loses big in Tamil Nadu The DMK has always been a critic It is a bitter pill to swallow fo r those who do not want of India's policy toward the Sri Lanka reformation of the party. Tamils and had denounced the station­ ing of the Indian Peace Keeping Force in Sri Lanka. The Sri Lankan situation has shown a marked improvement and the issue did not seem to figure in the T he ruling Congress (I) party in New chief minister earlier. Still, the margin elections. Still, DMK's moves on this Delhi received a rude shock on Jan. of the DMK victory- lSI seats out of issue will be closely watched. 21 when the electorate of Tamil Nadu, 202 contested in the 232-member As­ Since these are the last three elec­ India's southernmost state, tersely re­ sembly, and thus an absolute majori­ toral contests before the scheduled jected it and elected the local DMK ty-shocked many. The magnitude of parliamentary elections next Decem­ party at the hustings. Congress (I), the DMK victory reflectsmore the ut­ ber, political pundits have written however, did win a slender majority ter fragmentation of the AlADMK and thousands of lines of copy predicting in both the northeastern states, Mizo­ the hapless state of the Congress (I) and analyzing the outcome. Since ram and Nagaland, which went to the than its own strength. Prime Minister Rajiv Gandhi had put polls the same day. While defections The elections in Mizoram and Na­ in many long hours of campaigning in and resignations of legislators had col­ galand produced more expected re­ Tamil Nadu, the results there have lapsed the duly-elected governments sults. The contest in both states was given rise to the general forecast that in Mizoram and N agaland last year, in between the Congress (I) and tribal the Congress (I) and Prime Minister Tamil Nadu the death of a popular chief parties promoting local interests. In Gandhi are going to face a hostile elec­ minister in December 1987 led to the both states, the Congress (I) secured torate in the coming parliamentary total disintegration of the ruling slender, yet absolute majorities, in elections. AIADMK party. All three states were Mizoram with 40 Assembly seats, and However tempting it may be to under Governor's rule, controlled di­ Nagaland with 60 Assembly seats. generalize on the basis of a major state rectly fromDelhi . Both states are located in the northeast election, it is in fact neither rigorous Of the three, the Tamil Nadu elec­ where instability has been a national nor valid. In the midst of all the noise tion drew the most attention. The death security concern. In both states, long and din, all that can be truly said is of Chief Minister M.G. Ramachan­ periods of armed insurgency against that the defeat of the Congress (I) in dran , the undisputed leader of the the central governmentby tribalgroups Tamil Nadu is not going to improve AIADMK who had kept the party in seeking independence had been com­ its prospects in the parliamentary elec­ power in Tamil Nadu for 10 years , and plicated by the involvement of Chinese tions. Those prospects are as yet to be the ensuing collapse of the ruling and Burmese insurgents. The Con­ determined, where they always have AIADMK, provided a chance for con­ gress (I) victory suggests that tribal been, in the northern"H indi belt." tending political parties to seize pow­ belligerence is on the wane, and a po­ What the Tamil Naduelection does er. Congress (I), which had been out litical process has begun to take root. show is that wherever the Congress (I) of power in the state since 1967 and With the victory of the DMK, a is organizationally weak-as it has had kept its political presence only in member-party of the newly formed been in Tamil Nadu for decades-the alliance with the AIADMK, cam­ National Front against the Congress party cannot latch on to the prime min­ paigned hard to win the elections on (I), all the states in southernIndia now ister's coattails and expect to ride to its own steam, but fell flaton its face, have non-Congress (I) governments. power. The problem that the party coming in a poor third with only 26 In Andhra Pradesh and Tamil Nadu, faces is the same one that Prime Min­ out of 208 seats contested. the ruling parties cater to state inter­ ister Gandhi eloquently pointed out at DMK, the regional party which has ests only. In the other two southern the party centenary celebrations in promoted the Dravidian interests to at­ states, Kamataka and Kerala, the rul­ Bombay in 1985. He said that the par­ tract its backers, had long been well­ ing parties belong to the Janata Dal ty had been taken away from the peo­ established in the state. The DMK and a left coalition led by the Com­ ple by power brokers with vested in­ leader and new chief minister, M. Ka­ munist Party of India-Marxist, terests, who have turned it into their runanidhi, had been Tamil Nadu's CPI(M), respectively. private fiefdom.

60 International ElK February 3, 1989 Dateline Mexico by Hugo LOpez Ochoa

Mexican gestapo tactics escalate testimony of a local notary from Her­ The case against the oil union leader has more holes than Swiss nandez Galicia's home town who at­ cheese, but that hasn't stopped the government. tempted to present evidence proving that the charge of "weapons stockpil­ ing" in the Hernandez Galicia case is also false. The lawyer mentioned that notary #182, one Jose Guadalupe Gonzalez Galvan living in Ciudad Madero, declared in notary certificate ' 5734 that at 9:20 a.m. (20 minutes It is an injustice" and based on a ipation of federal police agents, of afterthe HernandezGalicia arrest), he "pack of lies," said leader of the oil which the alleged murder victim Za­ arrived at Hernandez Galicia's domi­ workers union Joaquin Hernandez mora Arrioja was one. cile at the request of a neighbor and Galicia, upon reading the formal writ Also, numerous witnesses have took note "of the contents of 20 closed for his jailing submitted to him by testified that only military personnel boxes . . . in each of the boxes there eighth district criminal judge Jose Luis arrested Hernandez, and that not one were 10 machine-guns with 45 car­ Garcia Vasco. Hernandez, who was person ever saw the body of Zamora tridge clips; there were also several arrestedJan . lOin a spectacular police Arrioja. A fair question to ask, in view boxes of ammunition .... Various raid by elements of the presidential of the proclivity for yellow journalism persons whom I interrogated insisted (military) Chief of Staff, refused to surrounding the case, is, why has not that these boxes that I am mentioning sign the writ, a document amounting one national or international press or­ were unloaded from one of the vehi­ to a confession, reported Hernandez's gan published a photo of the much­ cles in which the soldiers arrived, defense lawyer Ricardo Franco Guz­ celebrated cadaver? among those witnesses Francisco V ar­ man in a Jan. 19 press conference. Indeed, why was thealleged corpse gas Malagon, Lazaro Mata Lopez and Hernandez Galicia is formally ac­ hurriedly cremated (an uncommon Gaspar Rodriguez." cused of stockpiling, possession, and practice in Mexico), preventing the On Jan. 18, the government ofTa­ clandestine introduction of arms into defense lawyers from seeking its ex­ maulipas state canceled the notary li­ the country, as well as first-degree humation in an attempt to prove what cense of Jose Guadalupe Gonzalez murder and resisting arrest. Despite they assert to be the truth-namely, Galvan. The date of the cancellation its control of the media, the Salinas de that federal agent Zamora Arrioja did was retroactive to Jan. 9, one day be­ Gortari government has been unable not die at the oil union leader's home. fore the HernandezGalicia arrest! to silence a growing number of wit­ There is at least one written claim The shameless lack of credibility nesses who are revealing the scandal­ (Proceso magazine of Jan. 23), that ofthe government's officialversion of ous human rights violations in the Zamora died days earlier, during the the Hernandez Galicia case has even HernandezGal icia arrest. arrest of drug trafficker Gilberto On­ garneredcoverage in the international On Jan. 17, lawyer Franco Guz­ tiveros, in the state of Chihuahua. press. The Baltimore Sun of Jan. 23 man announced that he would present Various columnists have also been noted that "transfer [of the agent's documentary proof to refute the offi­ quick to note that Zamora Arrioja pos­ body] was accomplished illegally, cial version of "first-degree murder," sessed valuable information stem­ without any of the necessary paper­ according to which the union leader ming from a fraud probe at Mexico's work ....A week after the arrests, shot and killed federal agent Antonio stock exchange houses, especially on the federal attorney general's office Zamora Arrioja. Franco Guzman not­ the involvement of Eduardo Legorre­ has refused to give reporters access to ed that neither of the first two dis­ ta, president of Operadora de Bolsa, autopsy and ballistics reports , or the patches from the officialnews agency and there has been widespread clamor registration numbers of the Uzis." Notimex-issued at 9:19 and 9:32 for his imprisonment. This would tend Its weak case notwithstanding, on a.m.-made any reference to the death to give the coloring of a classic Scot­ Jan. 25 the Mexican government added of Zamora. Further, the first dispatch tish Freemasonic ritual to the whole another charge to Hernandez's indict­ only spoke of a "military detail" ar­ HernandezGalicia affair. ment that of "intellectual authorship" ' resting HernandezGalicia , which was In his press conference, defense of the 1983 assassination of oil union later "corrected" to include the partic- lawyer Franco Guzman revealed the leader Oscar Torres Pancardo.

EIR February 3, 1989 International 61 Andean Report by Val erie Rush

IMF demands Peru sacrifice that would be a traumatic blow to the Hara kiri is being demanded of Garda , s government as an great majorities ....I prefer having example to the Third World. the deficitto the poor not eating." He did reveal, however, that an IMF mis­ sion would be visiting Peru imminent­ ly "to study the economy and propose Peruvian Finance Minister Carlos While not reporting Peru's formal a much tougher program than the so­ Rivas Davila has returned from a trip answer to the IMF, if any, Rivas did called economic packages we have to Washington, D.C., where he was tell Peruvians, "We have explained been implementing." reportedly engaged in a "testing of the that the serious crisis Peru is facing is Reactions from the APRA party to waters" with the international finan­ not only economic, but social; that we the IMF's shock proposal have gen­ cial community regarding a possible live in a climate of violence and pov­ erally been strong. President of the return of his country to the fold of the erty, and that therefore, the applica­ Peruvian Chamber of Deputies Hector International Monetary Fund. On Jan. tion of any economic policy in the fight Vargas Haya declared, "What the IMF 22, Minister Rivas gave a surprise 10- against inflation requires special han­ really seeks is to help its own deterio­ minute televised presentation to the dling, as we have been doing." rated economy at the cost of our coun­ nation in which he warned that the Rivas also stressed that before any tries ....What is undeniable is that IMF was demanding a murderous IMF program could be negotiated, the Latin American debt, and con­ shock program as payment for Peru 's Peru would first need abridge loan to cretely the Peruvian debt, is unpaya­ rebelliousness. In an interview with a cover its $1. 1 billion arrears to the ble." Peruvian magazine the same day , Fund and the World Bank.Even should Peruvian Prime Minister Arman­ President Alan Garda insisted that that bridge loan come through-which do Villanueva alsQ rejected a shock "shock" austerity was an unacceptable could take a minimum of six to eight approach, saying, "We are not going trauma to Peru 's poor majorities. months, said the finance minister-it to pay a debt with immense interest Rivas reported that the IMP's con­ would be another year before fresh rates at the cost of the lives of our ditionalities for Peru's re-acceptance funds for anything else were to come people, because in order to pay one by the world financial community in­ through. must live ...to be able to produce." cluded: I) unification of the official The newly elected secretary gen­ He acknowledged that Peru has been exchange rate with the parallel dollar eral of Peru ' s ruling APRA party , Luis living under wartime conditions "ever rate , which at present is approximate­ Alva Castro, declared in a televised since the policy of independence re­ ly triple the highest official rate; 2) an commentary on Rivas's revelations, garding the demands of the Interna­ end to all subsidies, which would cause "Making a symbolic payment [to the tional Monetary Fund was adopted." a doubling or tripling of current exor­ IMF] is useless, without a global eco­ The most outrageous defender of bitant food prices; 3) an end to index­ nomic program which presupposes a the IMF was senator and drug legali­ ation of wages; 4) real positive interest national accord with which we can all zation advocate Javier Silva Ruete, rates; and 5) an elimination of the fis­ agree." Alva Castro, who is a former who declared that Minister Rivas' trip cal deficit, currently 15% of the 1988 finance minister, reminded Peruvians to Washington was merely a "smokes­ gross domestic product. that in August 1986, a symbolic pay­ creen" to "entertain" the popUlation, The last, stressed Rivas, would ment to the IMF was made, "not with since he brought with him no program mean massive layoffs , suspension of certainty but with the hope of not being as the basis for negotiating a deal. He any school and hospital construction, declared ineligible for access to IMF also insisted that Rivas's report to the the suspension of any central bank resources." Despite the payment, Peru nation had been scripted by President credit to the public sector throughout was declared ineligible. Garda, "since officials of the inter­ 1989, and the gutting of workers' pur­ President Garcia told an inter­ national credit organizations don't use chasing power. The IMF is also de­ viewer from the magazine Panorama that language and don't speak of shock manding a symbolic $30 million pay­ Jan. 22 that while it was necessary to programs." Silva refused to respond ment as a "token of good will." Peru clean up the Peruvian economy, it had to accusations by congressional Pres­ has accumulated $6 billion in arrears to be done "by applying correctives, ident Vargas Haya that he was an "anti­ on its foreign debt payments. and not by applying a shock program patriot. "

62 International ElK February 3, 1989 Report from Rio by Silvia Palacios

A 'Theolib' revolution for Brazil? Arns's expressed political view­ Sao Paulo Archbishop Evaristo Arns is in the vanguard of anti­ points represent, in terms of the inter­ papal ranks in [bero-America. nal life of the Catholic Church, a counterattack on the reforms that John Paul II and Joseph Cardinal Ratzinger have been promoting in Brazil to halt the perverse influenceof the Theology F or the first time in Ibero-American intelligence services. of Liberation. Among other things, the Church history , a Cardinal has public­ The Brazilian Cardinal hasn't lim­ Pope had hoped to divide in thirds the ly and fervently supported the Com­ ited himself to letter-writing. Togeth­ gigantic archdiocese of Sao Paulo, munist-Gnostic regime of Fidel Cas­ er with such theologians of liberation which has heretofore been the strong­ tro in Cuba. In a letter to Castro on the as Leonardo Boff-cens ured by the hold of Cardinal Arns. 30th anniversary of the Cuban revo­ Vatican-and Fray Betto , the self­ The counter-challenge to the Pope lution and published in the Cuban dai­ proclaimed ambassador of the Theol­ was made public in aJan. 23 statement ly Granma, Sao Paulo Archbishop ogy of Liberation to the socialist coun­ by Clodovis Boff, brother of Leonar­ Evaristo Cardinal Arns wrote , "Cuba tries, he is preparing for a protago­ do, when he stated, "The people and can feel proud of itself for being, on a nist's role in a new "Sandinista" rev­ the comunidades de base will contin­ continent so impoverished by the for­ olution imported from Nicaragua. ue, with Ratzinger or without Ratzin­ eign debt, an example of social jus­ Betto, an intimate friend of Castro's ger." tice." He added, "Christian faith dis­ and of the Nicaraguan government, is Everything suggests that the covers in the conquests of the revolu­ an influential adviser to Luiz Ignacio closeness to Cuba promoted by Car­ tion the mark of the reign of God." da Silva (a.k.a. "Lula"), the head of dinal Arns and Fray Betto is intended Commenting on the Brazilian mu­ the Workers Party (PT) and a presi­ to inaugurate in Ibero-America the nicipal elections of November 1988, dential candidate . At the same time, Ostpolitik now being cooked up for and above all blessing the electoral Arns's own support for the PT in the Eastern Europe in certain corridors of victories of the communist and pro­ last elections was so overt that the PT's the Roman Curia. According to 0 Es­ terrorist Workers Party, the Cardinal victories in the country's major cities tado de Sao Paulo, the Marxist-Chris­ asserted, "On the one hand, the pop­ was entirely due to the mobilizations tian Dialogue grouping is acting under ular victory achieved in the last elec­ carried out by the Theology of Liber­ the protection-or at least with the tions renews the political frame­ ation's so-called grass-roots commu­ complacency-of Agostino Cardinal work. . . . On the other hand, we nities (comunidades de base). Casaroli, Vatican secretary of state. know that victory does not yet mean Cardinal Ams is apparently a long­ "Boff and Fray Betto's initiative in our freedom, and we are forced to con­ standing correspondent of Fidel Cas­ favor of dialogue with the communist front every kind of pressure and diffi­ tro ' s. For example, in 1985, he sent countries is nothing new in the Church culty created by the owners of great him a letter backing the Cuban lead­ and, if it isn't finding open support at capital in our own country. " er's plan to restructure the continent's the Vatican, it has an illustrious ex­ Thus, Cardinal Arns is increasing­ foreign debt. The "Castro Plan," was ample guiding its steps. That model is ly taking up the role previously occu­ first launched through an interview the charisma and untiring action ofthe pied by Mexico's "Red Bishop" Ser­ with Fray Betto , and later presented to secretary of state," commented 0 Es­ gio Mendez Arceo, in favor of the So­ a Ibero-American labor conference on tado on Jan. 20. viet Union's subversive operations in the foreign debt organized in Havana Fray Betto himself confirmed this Ibero-America. It is noteworthy that that same year. From that point on­ when, in an interview with 0 Estado, the courier who brought Arns's letter ward , the PT and Arns have become he admitted that the results of his trips to Castro was the Dominican Fray the main propagandists for the Castro to the socialist countries are well Betto, admirer and companion of ter­ Plan, which differs from Henry Kis­ known to the Vatican secretary of state rorist Carlos Marighela who, during singer's own debt proposals only in and that, "In some countries like the the late 1960s, perfected the methods name. Arnsis also an intimate ofVen­ Soviet Union, I have met Vatican rep­ of urban guerrilla warfare under the ezuelan social democrat, President resentatives and held very fraternal guidance of both Cuban and Soviet Carlos Andres Perez. talks with them."

EIR February 3, 1989 International 63 International Intelligence

larger purposein the scandal, in which high­ death." The book was put out by Franklin Pentagon: Soviets pose level government functionaries have been House in English, and the Mexican Labor hemisp heric threat charged with profitinghandsomely from an Party in Spanish. advance tip that France's aluminum giant, "There is still an alliance between the Pechiney, would buy out the American Can leftwing of [Mexico's ruling party 1 the PRI The Pentagon believes that the Soviet Union subdivisionof Triangle Industries. and the LaRouchites," Asman said Jan. 25 now "poses a serious threat to American According to informed Paris stock bro­ at a Heritage Foundation conference in security" in the Westem Hemisphere. kerage insiders, the "friends of Raymond Washington, D.C. "The Soviets and their allies are now in Barre," a TrilateralCommission memberand a positionto threaten the Panama Canal, and former presidential candidate, "are actively to interdict our Caribbean Gulf ports and stirringthe pot" ofthe PechineyAffai r, which South Atlantic sea lines of communica­ has already caused the resignation of one Commonwealth head calls tions," stated Secretary of Defense Frank senior Mitterrand official, Alain Boublil. Carlucci in his final annual report to Con­ The Paris daily LeMontie reported Jan. fo r ecological fa scism gress Jan. 21. "In the event of war, this 24 that it had confirmed earlier allegations would seriously impair our ability to obtain that Mitterrand received a confidential re­ Sir Shridath "Sonny" Ramphal, secretary­ vital natural resources. " port detailing the role of his long-timefriend , general of the British Commonwealth, called This evaluation of Ibero-America de­ Patrice Pelat, in the December Pechiney­ for a new world order based on environmen­ parts dramatically from the previous year's Triangletakeover via secretSwiss accounts, talism, and the replacement of national sov­ report, which not only failed to mention a despite a public denial by the presidency. ereigntyby "global governance," in a speech "Soviet threat" to the Panama Canal, but The authors of the latest Le Monde accusa­ Jan. 23 at Britain's Cambridge University. made no mention of Panama. However, the tions were the same two journalists who An abridged version of the speech was pub­ Pentagon report seems also to confuse the launched the Trilateral Commission's lished a day later in the Times of London, sovereign government of Panama, with the "Greenpeace" attack on the French security under the title, "A Global Green Agenda." Soviet threat. services in 1985. Ramphal is a member of the Brundtland Aside from that "first threat," the report Meanwhile, the lead editorial in the Jan. Commission on Environment and Devel­ presents four others: I) "the illicit cultiva­ 20 Wall Street Journal-Europe, "La loi opment, headed by the Socialist prime min­ tion, production, and trafficking of narcot­ americaine," begins, "When George Bush ister of Norway, Gro Harlem Brundtland. ics . . . pose a serious threat to several coun­ is sworn in as President today, his new His speech inaugurated a series of lectures tries... "; 2) "the re-emergence of major administration may have an early opportu­ at Cambridge on the subject of the Brundt­ leftist insurgent groups in Colombia, Peru, nity to topple the Socialist government in land Commission's 1987 "Our Common and Chile, and the continuing insurgencies France. Not with the CIA, of course, but Future." in El Salvador and Guatemala. The possible with the U.S. Securities and Exchange In his speech, Ramphal coined a new linkage of the Colombian and Peruvian in­ Commission. An SEC investigation into malthusianjargon, attacking the perspective surgent groups with the drug trade makes trading in the shares of Triangle Industries, of "no growth," and asserting,"The Brundt­ them doubly threatening"; 3) "the political Inc. shortly before the big U.S. packaging land Commission made a significant break crisis in Panama, currently in the midst of manufacturer was acquired by the French with earlier analysis-such as the report of the Noriega/Solfs regime's anti-U.S. cam­ state, has already entangled two close cro­ the Club of Rome in the early 1970s." Rath­ paign"; and 4) "economic problems threaten nies of President Mitterrand and this has er than "limits to growth," the Brundtland the stability of a number of states and may escalated rapidly into a major Gallic affair." Commission supports "a new era of growth," eventually give rise to military takeovers. but based on "qualitatively different" pa­ Drug money has become a serious corrupt­ rameters than past eras of growth. "It must ing factor and may come to be seen in some Wa llStreet Journal begrowth that contributes to sustainable de­ countries as an acceptable source of govern­ velopment. . . . To achieve sustainable de­ ment revenue." fe ars LaRouche in Mexico velopment globally will require a long-term perspective." David Aswan, editorial writer for the Wall Accordingto SirSonny: "Underlying the Tr ading scandal targets Street Journal, blamed Lyndon LaRouche­ Brundtland Commission's message of a linked publications for making it impossible 'common future' was the premise that we President Mitterrand for U.S. circles to work with and for the must think of our planet not only as a world Party of National Action (PAN). Thanks to of many states, but also as the state of our France's "Pechiney Affair" seems to be the expose The PAN: Moscow's Terrorists one world; that we must be ready to nurture aimed at toppling President Fran,

64 International EIR February 3, 1989 Briefly

notions of national sovereignty; that human Meanwhile, Thai Supreme Command • GEN. JOHN GALVIN, Su­ survival may not be secured save by the spokesman Lt. Gen. NaruadolDejpradiyuth preme Commander of NATO, told reach of enforceable law across environ­ Jan. 24 questioned Vietnam's claim that it the Jan. 22 Bild am Sonntag that few­ mentally invisible frontiers. " withdrew 50,000 troops from Kampuchea er Americansoldiers will berequired Ramphalblames rapidpopulation growth in 1988. He said that the Thai military be­ in the future than the 40,000 that are ratesfor contributing to "many of the world's lieve that only 15,000to 18,000were pulled currently deployed to Germany each acute environmental problems ." But, "en­ out during the year. Thailand, doesbelieve, year for NATO exercises. Senior of­ vironmental issues are today firmly on na­ however, that the number of Vietnamese ficers at his headquarters in Brussels tional and international agendas . Politicians forces in neighboring Laos has decreased are working on a scheme that would from Mikhail Gorbachov to Mrs. Thatcher, significantly, from about 20,000 to 1,500- make do with fewer troops. and financiers from the presidents of the 1,800. World Bank to environmentally 'clean' unit But, Naruadol noted, the Vietnamese are • YASUHIRO NAKASONE, the trust managers, advertise their 'green' cre­ stepping up their campaign to recaptureter­ former Japanese prime minister, in dentials." ritory from the resistance guerrillas. He de­ Moscow Jan. 19, said that the Sovi­ nied a report that Vietnam agreed to pull ets' promised troop reductions in East back its troops 30 km from the Thai-Kam­ Asia were limited to the withdrawal Diplomatic maneuvering puchean border. "TheVietnamese troo ps are of 200,000 troops from Mongolia. now deployed along the entire border," he Citing Gorbachov as his source, Nak­ around Kampuchea said. asone warned that Moscow has no immediate intention of reducing A flurryof diplomatic activity is now under forces in the Far East and its coastal way to achieve a settlement to the conflictin areas. Kampuchea. Prince Norodom Sihanouk ar­ 'Marxists, millionaires' rived in Beijing Jan. 24to meet with Chinese • VENEZUELAN President-elect leaders, and may also meet with Soviet For­ sell out Ho ng Kong Carlos Andres Perez has invited both eign Minister Eduard Shevardnadze when Fidel Castro and Daniel Ortegato his he arrives in the Chinese capital Feb. 2. Thai A "cosy alliance of Marxists and million­ inauguration, and may appoint a left­ Foreign Minister Siddhi Sawetasila will ar­ aires" sold Hong Kong "down the river" ist and suspectedEast bloc agent, Jose rive in Beijing Feb. 9. when Chinese CommunistParty officials met Vincente Rangel, to be his attorney Vietnamese Deputy Foreign Minister Hong Kong Chinese tycoons and profes­ general. Dinh Nho Liem made a side-tripto Bangkok sionals in Canton in mid-January, the Sun­ before returning home from his talks with dayTelegraph reported on Jan. 22. • HONDURAN GENERAL Gus­ the Chinese. China and Vietnam agreed to The proposalsfor the Hong Kong Basic tavo Alvarez Martinez was assassi­ refrainfrom attacking one another across the Law to take effect after 1997, when sover­ nated at his homeJa n. 26. He headed border. The two sides also agreed to pull eignty reverts from Great Britain to China, the Honduran Army until 1984, and troopsback from theborder area. According approved by the meeting, will only allow a was deeply involved in U.S. Contra to Liem, the Sino-Vietnamese negotiations referendum after 20 1 1, and even then, only operations in Nicaragua. focused on normalization of the two coun­ to decide whether a chief executive and leg­ tries bilateral relations and on ending their islature in Hong Kong should be directly • AIDS may have infected up to on-again off-again war. elected. 50,000 heroin addicts in Bangkok, Liem arrived in Thailand from China Moreover, conditions demanded by the specialists say. Tests among intrave­ Jan. 20, on the same flight as Chinese De­ Chinese are so complicated that it is unlikely nous drug users in the Thai capital in fense Minister Qin Jiwei, who has also held any referendum will ever take place, the September 1988revealed more than talks with Thai armed forces chief Chaow­ Telegraph wrote. Of the 23 members of the 40% to be carriers of HIV. A World alit Yongchaiyuth on Kampuchea. committee from Hong Kong, most already Health Organization official said he In talks between Liem and Thai Foreign have other passports, which will enable them was "astonished" by the figures. Minister Siddhi, the Thai leader is quoted as to leave Hong Kong by 1997. Seven, in­ saying that the Vietnamese-controlledKam­ cluding billionaire Sir Y.K. Pao, have Brit­ • T AJIIGST AN, a Central Asian puchean leader, Hun Sen, must now soften ish passports. But some 5.5 million others, Republic of the U . S. S. R., was hit by his position to persuade Kampuchean resis­ including many people of Indian and other an earthquake Jan. 23. Initial Radio tance leaders to attend the second round of national origin, have only Hong Kong iden­ Moscow reports put the death toll at the JakartaInformal Meeting. Hun Sen has tity cards, and cannot leave without Beij­ 1 ,415, then loweredestimates to about now beeninvited to Thailand by PrimeMin­ ing's approval. Some 25,000 Vietnamese 1,000, without explanation. ister Chatichai Choonhavan. refugees are also now in Hong Kong.

EIR February 3, 1989 International 65 �ITillNational

LaRouche sentenced: 'I become a martyr'

On Jan. 27, in Alexandria, Virginia, Federal District Judge Although this victimization of LaRouche was demanded Albert V. Bryancondemned 66-year-old international polit­ repeatedly and energetically by the highest levels of the So­ ical figure Lyndon Hermyle LaRouche, Jr. to 15 years in viet government, the prosecution was directed by the highest fe deral prison, despite a pending appeal based in part on levels of the Anglo-American Liberal Establishment. Accord­ indications of massive jury-tampering by the U.S. govern­ ing to high-level British sources, one of whom . LaRouche ment in securing the verdict in this case. named in court on Jan . 27 as Kenneth DeCourcy, the object LaRouche was charged solely on 13 counts of conspira­ of the rush to prosecute LaRouche during the period of the cy, in a trial in which the defense was prohibitedfr om pre­ Reagan-Bush transition, was to ensure that LaRouche was senting any defense arguments on two of the crucial issues of out of the way while several crucial policy-actions were the case. All of the allegations of conspiracy were based on launched. the indictment's characterization of LaRouche as being According to these sources, the policy-issues were: the an "authoritarian personality" in the sense of the dogma of intent of the Anglo-American Liberal Establishment to con­ the Frankfurt School's Teodor Adorno; the defense was tinue appeasement of Moscow until such time as a new Mid­ prohibitedfr om presenting any defense on this fe ature of the dle East War brought the superpowers to a showdown over indictment. the defense of Israel; and, to have LaRouche out of the way LaRoucheand six other defendants were accused of con­ while savage austerity and destabilization operations were sp iring to secure loans with the intent not to repay them; the being run against both Central and South America and the defense was prohibited fr om submitting proof that financial U.S.A . itself. The European elements of the Liberal Estab­ warfare conducted chiefly by agencies of the U.S. govern­ lishment also fo resee a collapse of the U.S. financialsystem ment had been the chief cause of late payments of many of by approximately this summer, and fe ared that this would these loans. The judge also fo rbade the defense from disclos­ cause LaRouche's credibilityand influence to soar. ing to the jury the fa ct that it was the prosecution's action The wordfromthese circles in Britain is, that LaRouche alone, which had shut down the indebted firms, and so pre­ is being sent to oblivion, and an entire internationalpolitical vented any possibilityof fu rther repayment of the loans. movement associated with him, tornapart, piece by piece. The government had packed the jury-panelwith govern­ The statement below was released on Jan. 27, 1989 by ment agents, and had allowed the defense no right to chal­ Lyndon H. LaRouche, Jr. : lenge these candidate jurors fo r cause, or to conduct a voir dire of those jurors. The fo reman of the jury, one Buster 'I become a martyr' Horton, was a leading intelligence operative of the U.S. The actions taken against me are but the first ofa series governmentunder the terms of Executive Order 12333, and of actions by an Anglo-American Liberal Establishment de­ was part of a black operation which had been targeting termined to eliminate all independent political forces in the LaRouche during several preceding years. Several other Americas and Western Europe. Next on the V.S. target-list members of the jurywere also governmentagents, and others are political circles associated with the V.S. military and were linked to intelligence-community circles hostile to defense industries, evangelical churches, and others. Mos­ LaRouche and his associates. cow has demanded that the V. S. eliminate all potentially

66 National EIR February 3, 1989 influentialanti-Soviet currents, and so far, the Anglo-Amer­ evil as is represented by the architects and accomplices of ican Liberal Establishment is complying with Moscow's de­ such policies. mand. It happens that this mass-murder is not confined to the The trial in Alexandria Federal Court, can be fairly de­ populous, non-Communist developing sector. There is an scribed only as a "Third Trial of Socrates." In all essential accelerating collapse of the economies of Western Europe features, the conspiracy-charges against me, in particular, and North America, where, at the presentrate , Third World were identical with those directed against Socrates. The same conditions will soon prevail. At the same time, the economies Syrian Magi who orchestrated the trial and judicial murder of the Soviet empire and mainland China are in a spiral of of Socrates, later directed the trial and crucifixion of Jesus collapse toward the point of physical breakdown of their Christ. Those Liberal Establishment potencies which orga­ economies. Under present Soviet and Beijing policies, noth­ nized this trial and conviction are the self-esteemed spiritual ing can stop the onrush of mass-death and chaos soon to heirs of those Magi priests of the Emperor Tiberius' s Cult of erupt. This planet is thus careening toward a New Dark Age. Mithra. In this circumstance, this global crisis, what we see in The prosecution's use of that form of "conspiracy trial" leadership of government is not statesmen, but "political was not accidental. In method, and other respects the issues technicians. " The characteristic, tragic folly of these regimes of the quarrel which the Soviet government and the Liberals and political parties is their delusion that failed policies can have with me are identical with those which prompted the be made to work if only the world is administered with a Magi to deploy the corrupt Democratic Party of Athens to sufficiently ruthless degree of monolithic force. This is the effect the murder of Socrates. On those points where Socrates principle of governmental bureaucracy carried to its maddest and Plato had failed, Jesus Christ supplied the means for extreme. mankind's salvation from the evil of that time and today. So, The New Dark Age could be averted still, even at this the Magi used against Christ the same methods of trial for late date. If the United States would but returnto those prin­ conspiracy they had employed against Socrates. ciples which U.S. Treasury Secretary Alexander Hamilton I have walked to my trial, conviction, and sentencing was first to name "The American System ofPolitical-Econ­ with the image of Christ in Gethsemane before my eyes, as omy," as the U.S. Constitution provides for this, the U.S. have all Christian martyrs. I face the prospect of my murder economy could be rescued, and lead the world in a general under present circumstances with that same view. The essen­ recovery. With aid of such a recovery, all other pressing tial thing is, that if I am to be martyred so, I must do nothing problems become increasingly manageable. to spoil the benefit of my martyrdom for those who survive So far, these governmentswill not even consider such an me. option. They are determined to save "the present system" of These are evil times, the recent 20-odd years especially central banking at all costs, at a time that the mere continua­ so. The Communist power and the Liberals are perpetrating tion of those policies ensures the probable collapse of the genocide against black Africa and other regions. The sanctity U.S. financial system within this year, and all the Hell such of human life is no longer a consideration, when the per­ a collapse portends for the world at large. ceived interests of arbitrary power and foully murderous usury What these power-infatuated buro-technocrats propose, deem the death of even entire nations a matter of pragmatic is to sustain the financial system chieflyby aid of looting the expediency. essential conditions of production and subsistence of entire This planet now sustains an estimated 5 billion persons. continents, including their own. By such means, they col­ Had we employed fullythe existing technology of 1970, this lapse production, and so destroy the rr.gilebasis upon which planet today could sustain between 15 and 20 billion persons the stability of financialsystems depends. That is sheer mad­ at an average standard of living comparable to that in Europe ness! a score of years ago. Yet, because of foully murderous zeal If that course is followed, the early effects of that, com­ for world-federalist, malthusian utopias, during the recent bined with the rapid spread of overtly Satanic cults, ensures decade or so, the potential population-density of this planet the plunge of this planet into a New Dark Age before the end has been dropping at an accelerating rate, such that, under of the present century, perhaps even earlier. When the catas­ present economic conditions of underdevelopment and usu­ trophe comes, it will come upon us all like a horde of torna­ rious looting, the potential population-level is now signifi­ does, not gradually, but like a tidal wave of crushing collapse cantly below 5 billion persons, and is dropping most rapidly. of institutions, and degradation of the internal life of nations These evil economic and world-federalist policies are and continents to brutishly primal conditions of man eats unleashing the greatest holocaust of death upon this planet. man. It is foreseeable, that within approximately a generation, the If my martyrdom is to be brought soon to the threatened potential population will fall below 1 billion persons, with final conclusion, I can propose but two prospects for the entire nations and peoples removed biologically from the mankind I leave behind me. political map. Never in the history of mankind was there such It were still possible, if responsible people use the corpus

EIR February 3, 1989 National 67 of relevant ideas I leave behind for them, to save the U.S. martyrs to follow me. To them I say, place the image of economy, and thus lead the recoveryof this planet. Christ resisting the comfortable temptations of Satan in Geth­ That were the outcome I desire. The institutions we have, semane before your eyes. See thus, that the important thing such as the U.S. Constitution and its tradition, may be rotted in mortal life is not the moment-to-moment satisfactions of to the core by abuses, but that Constitution represents a gift the "here and now," but what the totality of your life means, supplied by the blood of martyrs over preceding centuries. when viewed as if a generation after your demise. Under­ Could those institutions be rescued, humanity would avoid a stand, that it is not remaining years of safe mortal life taken terrible price to be paid over two or more generations to away fromyou that count, but rather the totality of what your come. abbreviated life has been. Make the sum-total of your life, in If that happier tum does not soon occur, then this planet its final moments, a gift to all humanity, in whatever way is plunged into a New Dark Age. In that case, two or more your talent and circumstances permit. With that in view, face hellish generations of awesome misery were required, before your end with a smile of joyfulcontentment, for the fact of a new martyrs brought forth a renaissance. life well spent. My purpose, under my present conditions, is that if my For the others, I say: "You wretched fools. Christ died life were taken as was Socrates' before me, my life as a martyr for you, that you might receive His gift and be saved from were spent efficiently to foster the global movement which such evil as you permit to be brought upon you now. " Perhaps might, hopefully, aid in rescuing civilization's imperiled in­ this is theverge of Apocalypse, out of which mankind might stitutions, or failing that, continue the struggle through a be rescued only through an awful and prolonged struggle, to coming Dark Age, to bring forth a later renaissance. produce a renaissance in which the precious gift of Christ If I am martyred, I will be but one of many, many new will be cherished, to prevail for ever more.

4) the October 1986 Leesburg raid led to felony in­ dictments against 24 additional "LaRouche followers or Gov't drops Boston case LaRouche-controlled entities" in other federal and state courts. against LaRouche, others The mistrial in Boston was called a "stinging defeat" for the government by the National Law Journal; and After over four years and tens of millions of dollars of other major news media termed it an "embarrassment" for government time and money, the Justice Department is the government and a "triumph" for LaRouche. After the dismissing the Boston case against Lyndon LaRouche and mistrial was declared, an informal poll taken by the jury 13 other defendants. Observers believe that the govern­ showed that they would have unanimously acquitted all ment dares not risk another embarrassmentin Boston such defendants on all charges. "We would have acquitted as it suffered during the last trial, which ended in a mistrial everybody at this point, and that's based on prosecution on May 4, 1988. evidence," one juror told the Boston Herald. "There was In a memorandum filed with the court in Boston by too much question of governmentmisconduct in what was U.S. Attorney Frank McNamara and Assistant U.S. At­ happeningto the LaRouche campaign." torney John Markham, the government states that in light After the embarrassment of the Boston mistrial, the of the recent convictions of LaRouche and co-defendants Justice Department team which had designed the Boston Edward Spannaus and Michael Billington in Alexandria, case shiftedtactic s, and rammed through a new indictment it cannot justify "the extraordinary costs of proceeding" against LaRouche and six associates in Alexandria, Vir­ with the Boston case. Displaying a flagrantattitude of "it ginia, during the period between the end of the first trial doesn't matter how we get them, as long as we get them," in Boston and the scheduled beginning of the re-;trial. The the McNamara-Markham memorandum notes that: government picked the federal court in Alexandria for its 1) the "architect" of the Boston conspiracy, former new frameup, because of its known record of rushing CIA cut-out Roy Frankhauser, has been convicted in Bos­ defendants to trial without allowing pre-trialdiscovery of ton in a separate trial; evidence or adequate time to preparea case, and its heavy 2) the "principal remaining individual defendants," concentration of pro-government jurors. LaRouche and LaRouche, Spannaus, and Billington have been convicted his co-defendants were railroaded to trial fiveweeks after in Alexandria; the indictment, and a jury was picked in less than two 3) four organizations have been fined$2 1 million and hours. With a rigged jury and court-ordered exclusion of are now defunct; and defense evidence, a conviction was virtuallyinevitable .

68 National EIR February 3, 1989 Courtroom Notebook by EIR Staff

that if LaRouche got power, it would de Kamp began his witchhunt inves­ be a "threat to the country." tigation of the AIDS referendum, • Another, who said he had told Proposition 64, with a raid on the ini­ his wife, "the American people that tiative's offices, and a year to the day Virginia judge keeps have been snowballed or taken [by after Andrea Diano-Smith surren­ LaRouche], it's not right. You won­ dered afterbeing charged, Los Ange­ biased jurors on panel der how people can do illegal solici­ les District Attorney Ira Reiner dis­ In Leesburg, Virginia, Judge Carleton tations for years and years." He even missed charges against her. She, along Penn continued to seat biased jurors said that, if Ascher supported the mat­ with Bruce Kilber, also an organizer on the panel in the case of Common­ ters that he was referring to, he would with the Prevent AIDS Now Initiative wealth v. Rochelle Ascher, through "probably be unfavorable to her." Committee (PANIC), was accQsed of Wednesday, Jan. 25. At that point, the • Another juror seated is a Mason the absurd charge of "causing them­ two jury pools that had been called and active local Episcopalian, who selves to illegally register to vote." were exhausted, with only 15 pro­ worked before retirement for the Fed­ Both were activists who organized spective jurors selected. eral Reserve Board. He said that "in in support of the initiative which had Sixty jurors have been inter­ the circles I travel," people are not called for having the State Public viewed already for the first of the favorable to LaRouche. Health Dept. treat AIDS as it does any Commonwealth's "LaRouche" cases, • Another said, "LaRouche is all other communicable disease. Prop. 64 in which 16 fundraisers and corporate doom and gloom; he called anyone set off a storm of opposition from both officers , and 5 organizations, are ac­ who disagrees with him a Commu­ the AIDS lobby and enemies of Lyn­ cused of "securities" fraud and con­ nist. " don LaRouche. Van de Kamp's office spiracy to defraud. Twenty-nine have After the seating of the first eight publicly announced that they would been excused because they admitted jurors, attorney Flannery made an move to crush it through a criminal their bias, and 16 for hardship. emergency motion Jan. 24 to dis­ investigation. The jury selection process sup­ charge two of them for cause. flan­ Also Jan. 25 , New York Assistant ports entirely the contention of Asch­ nery cut through the prosecution and Attorney General Dawn Cardi an­ er's lawyer, John P. Flannery, that it court's assertion that such prejudice nounced that she was dismissing a two­ is impossible to get an impartial jury was not relevant because "LaRouche count indictment against LaRouche in a case against an associate of La­ isn't on trial here," with the following associate Joyce Rubinstein, on grounds Rouche in Loudoun County. flanner­ argument: that the prosecution was barred by the y's motion for a change of venue has "How serious an error it is to seat New York State double jeopardy stat­ been denied by Judge Penn numerous these jurors will be manifest when, in ute. Afterreading motion papers filed times. the government's opening [state­ by Mrs. Rubinstein's attorney, Cardi When the jury pools were exhaust­ ment] , the government refers to 'the agreed that the New York case was ed, the proceedings were suspended LaRouche organization' again, in identical to the federal prosecution until Monday, Jan. 30. contrast to how it underplays the mat­ brought in Alexandria. Of the 15 jurors already seated, ter now, and then proceeds at trial to Mrs. Rubinstein was convicted of many have already declared that they adduce testimony from individuals, the conspiracy and mail fraud in Decem­ have a negative opinion of LaRouche, 'LaRouche insiders,' who had little or ber along with Lyndon LaRouche and as well as having read negative press nothing to do with Mrs. Ascher, but six other LaRouche associates by a coverage. Assistant attorneys general who will say they had a lot to do with lynch-mob jury in Alexandria. The John Russell and George Chabalewski 'the corrupt LaRouche organization.' lawyer for another Alexandria defen­ have argued that this is not unfair to Then will Mrs . Ascher suffer these dant, Edward Spannaus, has request­ the defense, because the individuals jurors' prejudice." ed that his client also be dismissed have also been induced to say that they from the New York case for the same could be impartial despite their nega­ States drop charges reason. tive views. Seated over defense objec­ Justice Stephen Crane, who orig­ tions were: against LaRouche aides inally calendared the trial to begin on • One juror who called LaRouche On Jan. 25, well over three years after Jan. 23, has refused to set a new trial "an anti-Semite and a racist." He said CaliforniaAttorney General John V an date.

EIR February 3, 1989 National 69 Using 'False Claims Act,' Carter crowd targets U. S. defense for ruin by Our Special Correspondent

Dossier material made available to EIR continues to substan­ 'Private attorneys general' tiate our contention that the ongoing "Ill Wind" investigation It would be no exaggeration to say, that the most sophis­ and prosecutions aimed at the defense procurement process, ticated expression of Soviet strategy for containing the in­ are the front end of a campaign, now far advanced, to restruc­ dustrial and scientificpower of the United States, is not found ture the U. S. defense industry. Coordination and operational in the byzantine maneuverings of the arms negotiators, but planning are run through a powerful cabal of private law was spelled out in Mikhail Gorbachov's "environmental" firms, foundations, and "public interest" organizations which address to the U.N. General Assembly last December. Gor­ could be described as the "Carter administration in exile." bachov, and his co-thinkers inour government, equate"peace" They are the same crowd that led the nation into the disaster with the surrender of national sovereignty to supranational known as "the Carter Malaise," and they are moving into institutions, such as the U.N.-based International Monetary positions of great power within the Bush administration. Fund. The battering-ram these networks use is the Civil War­ The type of tyrannical intrusionroutinely conducted into era anti-profiteering legislation known as the "False Claims national affairs by the IMF, is paralleled on a more discreet Act." The law, revitalized in 1937 by Congress, allows the level by the activity of various private and quasi-governmen­ Treasury to recover triple damages from any contractor who tal agencies which shape the enforcement of environmental can be shown to have perpetrated a "fraud" upon the govern­ law. Gorbachov's speech was an implicit call for the coor­ ment. In addition, a private citizen who initiates the investi­ dination, on major policy matters, of the activities of these gation and legal action which leads to such a recovery is institutions. eligible for a reward equal to 15-30% of the amount re­ In the United States, the organizations which are at the covered. A blizzard of such lawsuits has already been filed, top of the environmental-enforcement pyramid are: the Na­ and insiders predict that this technique will break open secret tional Resources Defense Council (NRDC), the Environ­ research and "black box" programs heretofore protected from mental Defense Fund (EDF), the Environmental Law In­ congressional meddling. stitute (ELI), the Conservation Foundation, and the Coun­ By law, these investigations are conducted by the Civil cil on Environmental Quality (CEQ). These institutions are Fraud unit of the Department of Justice, with the participation funded by private foundations, and boast boards of directors of the Criminal Division. Thus, the personnel appointments which include representationfrom top industrialand financial made by Attorney General Richard Thornburgh will play a institutions and the law firms which interlinkthem . Federal role in the scheduled attack on the defense industry, but will agencies such as the Environmental Protection Agency (EPA), not becentral . Documents released by the staffof Sen. Charles and the Justice Department itself, are considerably lower Grassley (R-Ia.) show that the experience gained by the anti­ on the ladder than these private institutions, and rely on a defense camp in the campaign that led to Ed Meese's resig­ flow of lawyers from these institutions to staff top policy nation, has produced a private apparatus which can use law­ positions. suits to intervene on policy matters free of any "obstruction­ The case of the Environmental Law Institute is illustra­ ist" tendencies that might crop up in the Executive Branch. tive. It dates from the earliest days of the ecology movement Richard Sauber, former head of the Defense Fraud and and includes as sponsors, the Andrew W. Mellon Founda­ ProcurementUnit, along with John R. Bolton and other Meese tion, the Richard King Mellon Foundation, the Charles appointees, have been identified as "obstructionists" who Stewart Mott Foundation, the David and Lucile Packard have been or will soon be eliminated by the Thornburghteam . Foundation, and Washington area notables including Mrs. The vicious attack on Meese released by the Justice Depart­ Russell Arundel. Staffed liberally with veterans of the Cart­ ment in January is an indication that the knives are still out at er-era Justice Department, the ELI acts as the central training the DoJ, and insiders report the Meese' s troubles may not be facility for bureaucrats and lawyers involved in environmen­ over. No one expects anything but enthusiastic cooperation tal "enforcement," whether on the level of a municipal gov­ in this venture from the Thornburgh Justice Department. ernment, or the United Nations.

70 National EIR February 3, 1989 One such training program offered by ELI, is called "Pri­ see this as the first steptoward creating scandals around the vate AttorneysGeneral: Citizen Enforcement of Federal En­ sensitive and secret "black box" funding of high-technology vironmental Law," and teaches the use of various environ­ research programs. Once such programs are the subject of mental statutes which allow private special interests to shape media calumny, the "fraud" claims will come rolling in. public policy through court intervention. The False Claims Act of 1987 opens the door for the use of this technique, Glasnost: from Carter to Gorbachov perfected by the environmentalists, in the area of defense The demand to halt research in advanced weapons sys­ policy. tems is a constant refrain from Russian propaganda outlets, The bridge between environmentalism and defense bash­ and it is no surprise to find "Gremlins from the Kremlin" ing is being built by the Project on Military Procurement, climbing the environmentalist ladders which have beenthro wn and the Los Angeles-based Center for Law in the Public up against the defense ramparts. Interest (CLPI or "clippy" as it is known in these circles)­ The key role of former officialsof the Carteradministra­ a spinoff of the law firmof O'Melveney and Meyers , which tion in this process is illustrated by the curriculum vitae of firm holds a seat on the board of the ELI. A partner in this Nicholas C . Yost, the founder of the now-defunct Washing­ firm is WarrenChristopher, who was Undersecretaryof State ton officeof CLPI, and a board member of the ELI. Coming in the Carter administration. from a long background in administrative and environmental Accordingto a legalspecialist with CLPI, the FalseClaims law in the California state government before moving into Act "created the basis for the development of private attor­ the Carter administration, Yost served as General Counsel, neys general in the defense area . . . and the motivating factor Council on Environmental Quality, Executive Office of the is the monetary reward. It is the monetary reward which President, from 1977 until 1981, and simultaneously served makes everything work." CLPI reports that it has overseen, as U.S. co-chairman of the U.S.-U.S.S.R. Environmental encouraged, or otherwise assisted the filingof over 125 law­ Law and AdministrationPro ject. He was also the director of suits since the law was passed. He points out that a fraud the President's Task Force on Global Resources and Envi­ claim can be brought against a company by a former employ­ ronment in 1980. ee anytime within lO years of the alleged occurrence, thus The continuation of this extensive exchange with the making targets of the 1981-83 defense budgets and the spend­ Russians is conducted through the auspices of institutions ing associated with them. Advocates of this scheme hasten such as the ELI, which in its annual report explains that it to add that any government spending program can be hit in hosted the December 1986 visit of Dr. Oleg Kolbasov, head this manner, and many undoubtedly will be. CLPI claims of the Department of Legal Problems of Environmental Pro­ that in at least one case it is assured of winning recovery in tection at the Institute of State and Law at the Academy of the range of $100million , and many suits allege fraud in the Sciences of the U.S.S.R., and Mikhail Galiatin, research millions. associate at the Institute of State and Law, "funded from the The cost of defending against such suits is enormous, and Institute's general support base." The report goes on to brag, when added to the cost of sustaining near-continuous federal "Their series of seminars on Soviet environmental law , the auditing of ongoing programs, will overwhelm all but the first such series offered in the United States, was well re­ biggest conglomerates. Meanwhile, the Justice Department ceived." But, "This visit almost did not happen. The diplo­ has received an $8 million special appropriation, courtesy of matic clearance between the two governments came so late Senator Grassley and friends, earmarked for hiring extra that the appropriate federal environmental agencies did not attorneys in the regional U. S. Attorneys' officesto prosecute have any funds in their budgets to cover visit costs. It was at False Claims Act cases. this point that ELI stepped in and took responsibility for their Insiders in the environmental law circles point out that living expenses and provided an apartment as well as office the targets of the CLPI suits are selected based on the work space and research assistance. Private sector groups such as of Dina Rasor and the Project on Military Procurement. ELI can cut through red tape." Spokesmen from that outfit are reporting that they intend to Other seminars sponsored by ELI sport such intriguing move on from the budget-related "fraud" stories (such as the titles as: "The Changing Face of Soviet Environmental Law," mythical "$600 toilet seat" and other hoaxes concocted for "Environmental Law and Policy in the U.S.S.R. with an the media), and begin going after the management practices American Commentary," and "Soviet Environmental Law of defense contractors. The focus would be on charges of with a United Nations Response." time-card fraud, cross-charging (billing one program for work In the coming campaign to put the defense industry under done on another), and other practices-which usually result the gun, Henry Hudson, the U.S. Attorney handling the from management attempts to juggle program funds which "Pentagate" cases, and his minions will appearin their proper stop and go at the whim of Congress-in order to force into place, as simple stooges for our own Nomenklatura-that the open material which is considered "proprietary" by the army of aristocrats and lawyers so anxious to "share power" managers and auditors of specific defense programs. They with their Russian soul-mates.

EIR February 3, 1989 National 71 Brent Scowcroft: architect of George Bush's 'Detente II'? by Kathleen Klenetsky

The news media on both sides of the Altantic have been view of current U.S. strategic policy, which the national featuring stories on how the Bush era signals "the return of security adviser has already indicated will be based on the the Establishment," or, more specifically, "the return of the assumption that a minimum of $300 billion will have to be Kissingerites," to positions of power in Washington. Typical cut from the defense budget over the next five years, and is syndicated columnist Garry Will's recent comment that whose consequences could include the death of the Strategic "looming behind the Bush cabinet is the . . . inescapable Defense Initiative and a partial U.S. troop withdrawal from figureof Henry A. Kissinger." WesternEurope . This unfortunate truth is perhaps best underscored by Despite his hawkish reputation, it is more than likely that George Bush's selection of retired Air Force Gen. Brent Scowcroft, along with Secretary of State James Baker, and Scowcroft, a former adviser to President Jimmy Carter, as Baker's deputy, Kissinger Associates alumnus Lawrence his national security adviser. Eagleburger, will convince Bush, as the Scowcroft-Kissinger Scowcrofthas long been identifiedwith Kissinger, dating combination convinced Nixon, that extending Reagan's sui­ back to at least 1972, when Kissinger, then serving as Rich­ cidal "Detente II" is in the best interests of the country. ard Nixon's national security adviser, chose Scowcroft, the Scowcroft shares Kissinger's cynical, Metternichean president's military adviser, as his deputy, and subsequently world view , which holds that maintaining the balance-of­ saw to it that his protege succeeded him as national security power, rather than working for the triumph of a just interna­ adviser in 1975. tional order based on the principles of natural law , should be Although Kissinger garnered the lion's share of the pub­ the ultimate goal of governments. In terms of East-West licity for "Detente I," Scowcroft played a crucial behind-the­ relations, the faction that Kissinger and Scowcroftrepre sent scenes role in nudging President Nixon down this disastrous believes that the two superpowers should continue to strive road , whose chief milestones, the ABM and SALT I treaties, for a global power-sharing arrangement, in which neither have guaranteed Soviet military superiority. would hold the upper hand. In this view, the United States Since 1982, Scowcroft, who over the course of his mili­ and NATO should scrupulously avoid anything that might tary career, obtained advanced degrees in international rela­ upset this balance, in particular moving beyond deterrence tions from Columbia University, and taught Russian history as the cornerstone of its military policy, to one based on the for four years at West Point, has been earning a lucrative deployment of a comprehensive defensive shield for the United living as vice-chairman of Kissinger Associates, the inter­ States and its allies. national consulting firm established by the former Secretary Aside from its craven immorality, this realpolitik is plain of State. stupid: To assume that Moscow is perfectly content to share The Kissinger-Scowcroft association is much more a control of the world, flies in the face of all the evidence­ meeting of the minds than a marriage of political or economic historic, cultural, military-that Moscow has intensified its convenience. The two men think alike on almost every cru­ commitment to becoming the supreme ruler of a world-span­ cial issue, and, while Scowcroftfr equently protests that he is ning empire. not a Kissinger "clone," there is every reason to believe that That has not prevented Scowcroft from repeatedly mak­ he will represent Kissinger's policy orientation in the Bush ing it clear that he wholeheartedly ascribes to this outlook. administration's strategic councils. For example, an Atlantic Council Working Group on Stra­ tegic Stability and Arms Control, which he chaired, issued a Balance of power report last year which maintained, "Theoretically speaking, This has extremely serious implications for the Bush each side would probably prefer a condition in which it was administration. President Bush has already charged Scow­ in a clearly dominant position ....Realistica lly, however croft with the responsibility for carrying out a sweeping re- . such advantage is not attainable." The report insisted

72 National EIR February 3, 1989 that, to ensure strategic stability, the United States, "while of SDI as a goal at this time." defending peace and freedom . . . must recognize that certain The same CSIS report demanded more allied "burden­ types of pressure on the Soviet Union could elicit Soviet sharing," and called on the new U.S. administration to un­ reactions highly dangerous to peace, democratic values, and dertake a "comprehensive reexamination of U.S. military Westernsecurity ," among which would be a full-scale com­ doctrines, national security interests, and overseas commit­ mitment to the SDI program as defined by Presiden Reagan ments," with a view toward withdrawing at least some U.S. in his historic March 23, 1983 address. troops from both Western Europe and South Korea. Together with James Woolsey, Scowcroft wrote the de­ Don't deploy SDI fense and foreign policy chapter of the American Agenda Although Scowcroft, like Kissinger, has gone on record report, which former Presidents Carter and Ford presented to frequently in recent months warning that the West should not President-elect Bush shortly after the elections. In that chap­ take Mikhail Gorbachov's glasnost and perestroika at face ter, they contend that mammoth cuts in the defense budget value, and must maintain its military alertness, like Kissin­ are unavoidable, and, "The only ways to make substantial ger, he has shown himself more than willing to promote early savings in the defense budget are to cancel major pro­ military-strategic policies which can only undermine the grams and to reduce the size of the armed forces. " (Woolsey, West's ability to defend itself against a possible Soviet on­ a retired admiral who currently operates out of CSIS, has slaught. Although he initially opposed the INF agreement, also served as a top policy adviser to Tennessee Democrat arguing that it would be destabilizing to withdraw all U.S. Sen. Albert Gore, who was Armand Hammer's choice for medium-range nuclear weapons from Western Europe, he the Democratic presidential nomination.) ultimately testified in favor of Senate ratification. And while In this same report, Scowcroft strongly implied that the he opposes the Reykjavik formula of eliminating all nuclear best way to deal with the issue of SDI is to tum it into a plan weapons by the year 2000, he is totally committed to pursuing for the limited defense of elements of the U.S. deterrent­ arms-control agreements with the Soviets. an idea akin to the ALPS (Accidental Launch Protection The real measure of what's wrong with Scowcroft's pol­ System) proposed by Sen. Sam Nunn (D-Ga.) in January icy orientation is his extremely unsympathetic attitude to­ 1987, an idea provided to Nunn by Kissinger. ward the SDI. Since Reagan first unveiled his defense initia­ On the issue of strategic modernization, Scowcroft has tive in 1983, Scowcroft has campaigned vigorously and pub­ already made it clear that he strongly favors development of licly against it. the mobile, single-warhead Midgetman missile, as opposed Scowcroft has characterized as "impossible" Reagan's to the much more powerful,multiple-warhead MX. Indeed, vision of the SDI as a means to defend the populations of the in 1983, as chairman of the Presidential Commission on United States and its allies, and has called early SDI deploy­ Strategic Forces, Scowcroft engineered the "compromise" ment a "gamble" which the United States should avoid at all with Congress on the MX, which supposedly saved the mul­ costs. Shortly before the U.S. presidential elections, Scow­ tiple-warhead missile, but which actually led to a drastic croft, who was then serving on the Bush campaign's strategic scaling back of the program. policy advisory committee, told the Washington Post that Scowcroft is associated with a number of prominent Bush is "clearly aware" that the SDI cannot continue to take thinktanks and policy-shaping institutions. Among the most an increasingly large share of a tight defense budget. "There important is the Washington-based CSIS, stomping ground is just absolutely no doubt that SDI cannot continue along the to such influentials as Henry Kissinger and Zbigniew Brze­ lines that Ronald Reagan wanted it to. It's impossible." zinski. Through CSIS, Scowcroftcolla borates closely with a Scowcrofta lso supports the "narrow reading" ofthe 1972 group of like-minded Democrats, led by Senate Armed Ser­ ABM Treaty-as does Moscow-which has put killing re­ vices Committee chairman Sam Nunn, and his House coun­ strictions on the progress of SDI. Testifying to the House terpart, Les Aspin (D-Wisc.). This longstanding alliance is Democratic Caucus on SDI in spring 1987, Scowcroft con­ almost certain to result in a devastating transformation of the tended that "ten years' U.S. adherence to the 'narrow' or SDI. As ALPS-author Nunn chucklingly responded during traditional interpretation of the ABM Treaty would not ham­ an interview on ABC-TV Jan. 22, when asked if Scowcroft per very seriously what we need to do in SDI. ..." agrees with his view on the SDI, "Brent Scowcroft and I More recently, Scowcrofthelped prepare a special report think alike on a lot of things. " on "Presidential Leadership Choices," issued this fall by the In addition, Scowcroft is affiliated with the Atlantic In­ Center for Strategic and International Studies (CSIS) in stitute and the Aspen Institute. Together with Harvard pro­ Washington, D.C., which stated flatly that the SDI program fessor Joseph Nye, who was Dukakis's chief foreign policy should be conducted only within "the restrictive interpreta­ adviser during the campaign, Scowcroft chairs the Aspen tion of the ABM Treaty," and which asserted, "Any deploy­ Strategy Group, which has been a major source of propagan­ ment decision should be delayed until the 1990s at the earli­ da for U.S. desertion of Europe ("decoupling") and attacks est ....It is against the national interest to adopt deployment against the SDI.

EIR February 3, 1989 National 73 coordinate the Navy's deployments in the Pacific with Gen. A Page from Histoty Douglas MacArthur. As Navy Secretaryhe was with the task force during the American invasion of the Marshall Islands.

Integrating the Navy By late in the war, Black servicemen showed growing resentment against insulting segregation policies in the ser­ vices, and Jim Crow policies blocking virtually all advance­ James Forrestal and ment for Blacks; anti-Negro rioting was breaking out in some llaval units. Ten days afterta king over the Navy, two weeks racial integration before D-Day, Secretary Forrestal sent a memo to President Roosevelt: "From a morale standpoint, the Negroes resent the fact that they are not assigned to general service billets at by Anton Chaitkin sea, and white personnel resent the fact that Negroes have been given less hazardous assignments." He proposed racial The Schiller Institute's Martin Luther King Day march in integration as the definitive answer to the problem. Forrestal Washington on Jan. 16 brought together civil rights activists, immediately put through a plan for the racial integration of anti-Communist freedom fighters and farmers opposing the 25 auxiliary ships of the fleet. international grain cartel . To the Eastern Establishment, this On July 28, 1944, Forrestal recommended to President growing freedom movement is "unfair" ..."il logical" and Roosevelt that Black women be trained in the WAVES or­ ...danger ous. It is dangerous to the false assumptions that ganization on an integrated basis and assigned "wherever were supposed to be fixed in the public mind, that those who needed within the continental limits of the United States, oppose Russian imperialism are "racists," and those who preferably to stations where there are already Negro men." want racial justice are "pro-communist." The recruitment of Blacks to the WAVES had hitherto been But the American republican tradition, going back to the barred by Secretary Knox; FDR ordered the change. When "conservative" Alexander Hamilton, who fought against Navy Capt. MildredH. McAfee complained to Forrestalthat slavery, cannot be understood within the cheap anti-human separate Black companies were being maintained, he broke framework of Establishment logic. the stalling and integrated the WAVES. We present here , as one example of this tradition, prelim­ Forrestal had to overcome time-encrusted politics. For inary findings of a story still under investigation, that of U . S. example, Army brass blocked the publication of the Army's Defense Secretary James V. Forrestal, the controversial anti­ own poll: It showed that in some small units that had been Communist who personally orchestrated the racial integra­ integrated as an experiment, Whites had come to favor having tion of the American armed forces in the I 940s . His aggres­ Blacks in their companies. The Negro platoons were de­ sive leadership against prejudice and discrimination is un­ tached from these units at the war's end, and were disbanded heralded 40 years after his death, perhaps because his life is or re-segregated. embarrassing and inconvenient to the rigged game of Left James Forrestal named his friend Lester Granger, Exec­ versus Right. utive Director of the National Urban League, as his special Forrestal was born in 1892, the son of an Irish immigrant assistant on Black affairs. In this capacity during the last six building contractor and postmaster of Matteawan, New York. months of the war, Granger traveled 50,000 miles and went He worked his way through Princeton University, then went to 67 naval bases around the world. With Granger's "author­ to work as a bond salesman for what became Dillon, Read & ity," and with the unenthusiastic but loyal help of Adm. Co. Aftera W orId War I stint in the Navy, Forrestal returned Ernest King, Forrestal pushed and propagandized against to Wall Street and drove himself up the Dillon, Read ladder, racial injustices within the Navy; this drive continued after becoming president of the ultra-Establishment investment the war. banking house by 1938. Non-discriminatory assignments and training became Franklin D. Roosevelt appointed Forrestal undersecre­ Navy policy. Secretary Forrestal issued the following order tary of the Navy in August 1940 . Centralizing procurement to all Navy commands on Feb. 27 , 1947: "Effective imme­ and construction authority, and putting all naval bureaus on diately, all restrictions governing the types of assignments a seven-day-a-week basis, Forrestal mobilized every possible for which Negro Naval personnel are eligible are hereby element of American industry for the building of a new fleet. lifted. Henceforth , they shall be eligible for all types of as­ Navy Secretary Frank Knox died on April 28, 1944 , and signments in all ratings in all activities and all ships of the Forrestal took the job early in May, having already organized Naval Service ....In the utilization of housing, messing, the vast armada which would support the invasion of Europe and other facilities, no special or unusual provisions will be in June. During the final year of the war, he worked to made for the accommodation of Negroes ... Putting this policy

74 National EIR February 3, 1989 fully into practice, however, would require more political become known as the "Truman Doctrine." power than was then available. One country after another was slipping under the Iron Curtain. The 1948 Russian takeover of Czechoslovakia typ­ As Defense chief ically involved the "suicide" of their opponent, Jan Masaryk, Forrestal resisted postwar plans, formulated at the highest and later the trials and executions of all opponents. levels of the Anglo-American Establishment, for the consol­ In the Italian elections of 1948, Forrestal determined to idation of the traditionally separate armed services into a new go around the back of the State Department, which had ar­ Department of Defense. But though he and his military allies ranged tacit U. S. support to a Communist victory. Secretary lost this fight, James Forrestal was appointed by President Forrestal personally collected an unauthorized million-dollar Harry Truman as the first Secretary of Defense in 1947. The electoral support fund for the Christian Democrats, not new arrangement weakened the nationalist element in the matching but somewhat countering the Comintern' s multim­ services, without giving any important constructive power to illion-dollar efforts. He secretly sent his priest, Msgr. Maur­ the new Defense chief. ice S. Sheahy, to work on the campaign in connection with American Blacks more confidently sought racial justice the Vatican. One of the leading organizers of squads to pro­ in the postwar era. A. Philip Randolph and others threatened tect voters against Communist goons was a Father Bichierai , a boycott of the proposed military draft law , if the services who had fought in the underground against Mussolini. were to retain segregation. Forrestal , on the eve of the elections, directed that ships The Army was the major roadblock to racial integration, from the fleet bound for Greece and Turkey should stop "for with Army Secretary Kenneth C. Royall taking a hard-line refueling" in Naples, where he ordered U.S. sailors to drive segregationist stand against Forrestal's initiatives; two dec­ tanks in parades behind Italian troops. Voters got the false ades later Royall would be a key backer of the Lyndon John­ impression, momentarily useful, that the U. S .A. was supply­ son-Hubert Humphrey ticket. ing military aid to the Italian government, to help prevent a In the middle of the tumult, on April 26, 1948, fifteen Communist coup in case the Christian Democrats should win Black leaders met in the Pentagon at the Defense Secretary's the election. In fact, a huge voter turnout assured a Commu­ invitation, and were given representatives of all the armed nist defeat. services to confront and question. The Blacks held a press conference, and then Forrestal published theirrepo rt,in which Suspicious death they declined to serve as advisers to the military as long as The pro-Russian faction sought and won Truman's firing segregation was in force. There now existed a politically of James Forrestal in March 1949. He was rushed out of his explosive stalemate for the upcoming 1948 elections. With officeon March 28. Flying to Florida, he was unable to take the Communist-line Henry Wallace third party campaign, with him his voluminous personal diaries, which contained with Republican Thomas Dewey out-liberaling Truman, the scathing attacks on the administration's policies. The diaries President issued a vaguely worded military anti-discrimina­ were confiscated by the President, and made available to tion Executive Order No. 9981. The seven-member Presi­ Forrestal's opponents. dent's Committee on Equality of Treatment and Opportunity An Army psychiatrist was immediately dispatched to in the Armed Services, put together with Forrestal 's advice Florida, and Forrestal was flown back to Washington and and including Lester Granger, first met in January 1949. placed in Walter Reed Army Hospital. The "patient" was Truman had admitted to Forrestalthat "he had not himself diagnosed as sufferingfrom mental exhaustion and was given wanted to go as far as the Democratic platform went on the insulin shock treatments. Forrestal demanded the right to see civil rights issue." But racial integration of the military was his priest, Sheahy, but he was denied all visitors except his now pushed through, beginning under the new Defense Sec­ somewhat estranged wife and children. The presence of his retary . It was the firstgreat breakthrough toward racial justice family may not have been very consoling: His son Michael in 20th century America, and was an important first step in V. Forrestal, had been an assistant naval attache in Moscow the public crusade which was to reach its climax with Dr. in 1946-47, and an aide to Forrestal's arch-enemy, W. Av­ Martin Luther King. erell Harriman. From 1978 through 1980, Michael Forrestal Harry Truman, inaugurated President in 1949, promptly would serve as president of the U.S.-U.S.S.R. Trade and fired Forrestal; "terminated" would be more precise. The Economic Council. Defense Secretary had passionately opposed the pro-Soviet On May 22, 1949, James Forrestal's body was found, his lurch in American policy at the end of World War II . He had bathrobe cord tied tightly around his neck, after he had been tried to stop the State Department faction's betrayal of the flung out a 16th story window of the hospital . The chief Chinese Nationalists to the Communists. Forrestal had or­ psychiatrist called the death a suicide before any investiga­ ganized military backup to Greece and Turkey when they tion was started. The results of the Army's inquest were kept were threatened with Communist takeovers, and when Tru­ secret. Forrestal 's diaries were "published," 80% deleted, man came out in support of the Secretary's efforts, it had aftera year of direct government censorship and rewriting.

EIR February 3, 1989 National 75 Congressional Closeup by William Jones

, government agencies, the senator as­ eign capital. "We are so indebted that LaRouche entitled to sured the delegation that his staff will if instability sets in, there is a real dan­ protection,' says Specter review the documents and report to ger of a 'free fall' of the dollar .... On Jan. 26, Sen. Arlen Specter was him within two weeks concerningthe The dollar has been supplanted as a visited in his office by a delegation request for investigation by the Judi­ reserve currency. " from the National Democratic Policy ciary Committee. If foreign investors want to do Committee, led by former Democratic something about the dollar, "not even candidate for Congress in the 5th the Federal Reserve could do any­ Congressional District of Pennsylva­ thing," stressed Gonzalez. nia, Donald Hadley. Present with the delegation as a Gonzalez: 'Money markets civil rights observer was Mr. O.G. a loose cannon' Christian, the former president of the In comments made to a Democratic West Philadelphia branch of the Women in Housing and Finance Energy committee NAACP. The Senator's scheduling luncheon, Sen. Henry Gonzalez (D­ hears EIR testimony staffinsisted that no personal meeting Tex.) warned of a potential blowout EIR's Washington correspondent,Ni­ with the Senator was possible for of the money markets, characterizing cholas F. Benton, testified before the months in the future . The delegation them as a "loose cannon." "I am con­ Senate Energy and Natural Resources sat down and begin singing, "We Shall cerned," said Gonzalez, "with pre­ Committee in hearings on the nomi­ Not Be Moved." serving the viability of the financial nation of Rep. Manuel Lujan to be After about three minutes, as the system ... The potential is, in my Secretary of the Interior. delegation was drawing up protest mind, very great." Benton reviewed the crying need signs and preparing for a long sit-in, He described the spate of lever­ to startthe North American Water and Senator Specter appeared in person to aged buy-outs (LBOs) as a major Power Alliance (NAWAPA) water greet the visitors, looking as if he had problem. "The continuation of fever­ projects now, when the nation is being been impatiently waiting to see them ish trading of equity for debt I consider threatened with another drought year. all the time. Mr. Christian advised the very insidious." The NAWAPA project would senator of the threat to Mr. La­ Gonzalez also dealt with theprob­ bring water down from Canada to the Rouche's life should he be jailed at his lem of the S&Ls, which had been a WesternPlains regions, presently suf­ sentencing on Friday, Jan. 27-which prime subject of Banking Committee fering for several years of lack of pre­ he was-and asked him to use his po­ hearings during the course of the pres­ cipitation. Benton stressed that Lujan sition to prevent any foul play. ent congressional session. should be armed with a mandate to Specter was then presented with The major problem, explained the "aggressively pursue this plan." material related to the LaRouche case, congressman, was the fact that the At the hearings were Sen. J. Ben­ including letters between Henry Kis­ chartering function and the insuring nett Johnston (D-La.), Sen. James singer and then-FBI Director William function were both in the hands of the McClure (R-Id.), and Sen. Pete Do­ Webster in 1983-84, showing that same institution, the Federal Home menici (R-N.M.). Kissinger and members of the Presi­ Loan Bank Board. Congress must in­ dent's Foreign Intelligence Advisory fuse the FSLIC with the resources to Board demanded action against La­ "close down and pay out" the failed Rouche "under the guidelines or oth­ S&Ls. erwise." At the present moment, the con­ Others confirmed, but "Lyndon LaRouche is entitled to gressman complained, the S&Ls are Tower's still pending protection," said Specter, "if there's a still allowed to go out and offer sky­ Democrats joined with Republicans in threat against his life if he is placed in high rates to financetheir activity. a continued show of bipartisanship prison." On the question of an inves­ Gonzalez also pointed to the dan­ with President Bush in unanimously tigation ofthe years-long political per­ ger of the tremendous dependence of confirming James Baker III as Secre­ secution against Mr. LaRouche by the U. S. economy on the influxof for- tary of State, Richard Darman as di-

76 National EIR February 3, 1989 rector of the Office of Management He said that he does not consider has urged the CIA to initiate a "psych­ and Budget (OMB), and Elizabeth the Cold War over. ''There is a thaw­ ic Manhattan Project" to develop its Hanford Dole as Secretary of Labor. ing of the relationship, but the fact is abilities to monitor Soviet military The lack of oppositionto the nom­ the threat still exists. You risk your projects. inees seemed to indicate thatboth par­ own safety if you fail to gauge Soviet ties wanted to avoid conflicts for as intentions by Soviet capabilities. We long as possible. should do nothing unilaterally. " Senate Majority Leader George Mitchell (D-Me.) promised to "do my utmost to foster pure bipartisanship," Humphrey mobllizes and he called on Bush to make Con­ foes of pay raise gress a "fullpartner in policy formu­ Those in the Congesss who want to lation." But the nomination of John How many Satanists bloc the much-touted pay raise for Tower as Secretary of Defense will in the Congress? lawmakers and others have been on not pass without opposition, On Thursday, Jan. 26, the Washing­ the warpath lately, in a move which Tower was very amiable when ton Times published a rather interest­ has a lot of grassroots support back questioned by the Congress on Jan. ing item concerning some of the home, where the congressional pay 25 . The former Texas senator basical­ congressional representatives who raise has been met with shock and an­ ly told the Senate Armed Services were into "psychic" phenomena. ger. Committee what they wanted to hear One of the prime believers in the Opponents in the House admit, on subjects ranging from cooperation power of the "psyche" is Rhode Island however, that they don't have thevotes with Congress to reform of Pentagon patricianClaiborne Pell (D-R.I.). Pell to force a roll call before the statutory operations and weapons-buying pro­ has urged the National Science Foun­ deadline for blocking the raise on Feb. cedures. Committee members implied dation, the Defense Department, and 7. that Tower would be confirmed de­ other governmentagencies to increase Senate Majority Leader George spite some members' misgivings over "psychic research" funding. He has a Mitchell has promised that there will his earlier support for big defense full-time staff member, C.B. Scott be a Senate vote. Sen. Howell Heflin spending increases. Jones, whose exclusive job is to mon­ (D-Ala.) said that accepting a huge Tower was clearly on the defen­ itor reports of psychic activities. raise at a time of deficits "sends a mes­ sive, stating that he was "not such a House Speaker Jim Wright (D­ sage of callousness to the American mindless hawk" that he would seek Tex.) attends lectures by Washington people." large increases that Congress was sure psychic Anne Gehman. According to Sen. John McCain (R-Ariz.) called to oppose. Tower also pledged sup­ the Washington Times, Mrs. Gehman the House "the House of Lords" for its port for implementation of Pentagon says she has discussed psychic phe­ willingness to let the raisebecome law. management and procurement re­ nomena with Mr. Wright and his wife, Sen. Jesse Helms (R-N.C.) in a tele­ forms, about which there has been so Betty, and has a friendly relationship phone conversation Jan. 23 with Vice much agitation lately. with them. President Dan Quayle asked him to Tower also vowed to bring better Mrs. Gehman, a board member of urge President Bush to "withdraw this management to the Pentagon, saying the National Spiritualist Association monstrosity. " that the Pentagon can no longer re­ of Churches, says she has many peo­ Republican Senators Larry Pres­ main "at war with itself." He also ple from Capitol Hill among her clients sler (R-S.D.) and Charles Grassley (R­ promisedto curtail pet projects oflaw­ . and claims that she can communicate Iowa), along with 21 other senators, makers and the military services that with "those who have gone through co-sponsored a bill which would roll cannot bejustified in terms of overall the process of death." back all pay raises for all threebranch­ strategy. North Carolina Democrat Charlie es of government. With regard to the Soviets, Tower Rose is the founder of the Congres­ The Grassley-Pressler bill would said, "We must not luxuriate in wish­ sional Clearing House on the Future, mandate that all future raises require a ful thinking" about Soviet intentions. which has met with psychics. Rose roll call vote.

EIR February 3, 1989 National 77 National News

the Senate confirmation hearings on the Bush burgh confirmedthis shift, stating, "To lose administration nominees are any indication. the war on drugs, leave it to law enforce­ Democrats who controlled the Senate ment," on the TV news show "Meet the AIDS transmission during the Carter administration, and Re­ Press" on Jan. 22. publicans who controlled the Senate during Thornburgh said to cut demand would routes increase the Reagan administration, generally pro­ require "education, rehabilitation, and treat­ The number of identified ways that the AIDS vided ample opportunity for attacks on, or ment," and a "change in values" within the virus can be transmitted is rapidly increas­ backing for, a cabinet nominee to be openly population. He said that he expects the new ing . According to letters by medical experts aired. Constituents were generally wel­ drug czar, William Bennett, to concentrate pubished in the New England Journal of comed before committeeconfirmation hear­ on the reduction of demand. Medicine, acupuncture and oral sex have ings to comment on needed policy changes, The libertarian Cato Institute added its now been identifiedas routes of AIDS trans­ or simply to suggest questions for the nom­ voice for drug legalization in its recently mission. inees. released recommendations to the Bush A letter in the Journalpublished during Whether, because of the establishment administration in a report titled, "An Amer­ the week of Jan. 24 from doctors at two nature of the Bush administration, or the ican Vision: Policies for the '90s." It calls hospitals in France, documents the case of a nature of the Democrats who now control for "allowing the sale of drugs such as co­ 17-year-old boy who tested positive to the the Senate, or both, the current round of caine, heroin, and marijuana" in the same HIV virus after undergoing acupuncture for confirmation hearings has ended such open­ "fashion as sale of alcoholic beverages," be­ tendonitis. ness. cause it is the "public disorder and criminal­ The doctors write, "The patient had nev­ Only the Senate Energy and Natural Re­ ity that make the drug-related problem worse er had sexual intercourse . He did not have sources Committee chaired by Sen. Bennett rather than better. " hemophilia and had never had a transfusion. Johnston (D-La.), which considers the Sec­ According to Cato founder Edward H. He was not an intravenous drug user, had no retaries of Energy and Interior, has wel­ Crane, some of the prominent people asso­ tattoo and had not been in jail." comed all testimony. The Committee on ciated with the institute include Federal Ex­ Another reportby two Boston area phy­ Veterans Affairs chaired by Sen. Alan Cran­ press chairman Frederick Smith, former sicians, which will appear in an upcoming ston (D-Calif.) has invited some, but not all, DelawareGov . Pierre du Pont, Nobel econ­ issue of the Journal, says that a 60-year-old who requested the opportunity. omist Friedrich von Hayek, and George­ man who is diabetic and impotent contracted The Senate Foreign Relations, Banking, town University Prof. Earl C. Ravenal. AIDS from a prostitute via oral sex. Doctors Labor and Human Resources, Governmen­ at the Lahey Clinic did not approach the tal Affairs, Agriculture, and Environment prostitute because of Massachusetts state and Public Works Committees did invite laws protecting confidentiality. written statements to be submitted for the The article concludes with a revised record. warning on practicing "safer sex." It "cau­ But the Senate Finance Committee Texas Democrats move tions against exchange of bodily fluids dur­ chaired by Sen. Lloyd Bensten (D-Tex.), to oust Jones ing other sexual practices, such as oral sex. " the Senate Armed Services Committee Texas state Democratic Party officials are A 17% increase in AIDS in New York chaired by Sen. Sam Nunn (D-Ga.), and the moving to oust Claude Jones as chairman of City during 1988 has now made it the third Senate Commerce, Science and Transpor­ the Harris County (Houston) Democratic leading cause of death overall, and the lead­ tation Committee chaired by Sen. Ernest Party alleging that he failed to support the ing cause of death in men ages 30 to 44,and Hollings (D-S.C.), have apparently not even party nominee, Michael Dukakis, in the women ages 25 to 39. Health Commissioner responded to requests to give testimony. presidential election. The move is the cul­ Stephen Joseph reported on Jan. 24 , "To mination of efforts by the party elite to ig­ date, almost 19,000 people have been di­ nore the voter mandate and to strip Jones, a agnosed with AIDS in New York City. " "LaRouche Democrat," of all powers , and seeks to oust him before the 1990 primary Thornburgh's war on gets under way. Even though Jones has so far only been drugs: cut consumption informed of the allegations and is still chair­ 'Openness' vanishes in Evidence continues to mount that the Bush man, state party chairman Bob Slagle is al­ administration is shifting the focus of the ready holding meetings on the effect the bat­ new Congress War on Drugs away from law enforcement tle over who will replace Jones will have on The opportunity for constituents to provide to other means of cutting domestic con­ the next gubernatorial race. Slagle and state testimony or public comment to the new sumption of drugs. party executive director Ed Martin came to Senate has been dramatically curtailed, if U.S. Attorney General Richard Thorn- Houston to hold an "informal" meeting with

78 National EIR February 3, 1989 Briefly

• ARMAND HAMMER told EIR on Jan. 18 that "PresidentGorbachov has already announced a reductionof 500,000 conventional troops. There about 70 top local Democrats in an attempt The tactics, plus the fact that many of will be no further linkage" to the to avoid a split which could not be repaired the 93 U.S. Attorneys did not tender their START talks seeking 50% cuts in before the 1990 race for governor, accord­ resignations, as other appointees do with a strategic weapons. On the Strategic ing to Jan. 24 press reports. new administration, led the JourMI to con­ Defense Initiative, Hammernoted that Jones on Jan. 19 denounced those "ex­ clude "that someone had a larger purpose in President Reaganoffered to give them tremist, liberal elitists who have been more mind." "The most striking thing about the the technology once developed, "but concernedwith personal power and person­ Valukas extravaganza, indeed, is its timing: I don't think the Soviets will wait that al gain than with the true interests of the literally on the eve of a presidential inaugu­ long." party ... [who] have become completely ration. It seems designed ...to erode the estrangedfrom their own electorate." Their administration's control over law enforce­ • THE NEW YORK Times admit­ responseto his electoralvictory "should have ment procedures. ted that the "greenhouse effect" is a been to accept defeat, profit in knowledge "The Constitution wisely provides that fraud on Jan. 18. "While some [sci­ gained from the loss, and go at it again in the duty to execute the laws faithfully rests entists] point to the vast uncertainties the next election." Instead of attempting to with the President, not with some bank of as reason to delay action in confront­ defeat him at the pOlis, these elites are re­ attorneysbeyond the reach of theelectorate. ing the greenhouse effect, many ex­ sorting "to an overt attempt to unseat" him. At the moment, it looks to us as if no one's perts argue that the possibility of ac­ in charge, indeed, that a new President's celerated damage warrants strong authority is under attack. " measures now to reduce the human impact on global systems that remain beyondscientists' understanding." WSJ attacks Justice • THE TAXPAYER Bill of Rights became law on Jan. 1, which de­ Dept. lawlessness Pentagon probes mands that an administrative proce­ The Wall Street Journal leveled an attack on dure within IRS be pursued, and the the Department of Justice and U.S. Attor­ electronic warfare taxpayer informed of all his rights, neys for setting themselves up as a power The Pentagon has acknowleged for the first before the IRS pursues civil or crim­ above the law of the land, including the time that it has conducted investigations into inal penalties. According to a senior President, in a scathing lead editorial enti­ the possibility that electronic warfare has Senate aide, this may be one reason tled"The Kinder, Gentler Hog Butcher," on been responsible for the downing of military that the tax charges in the trialofLyn­ Jan. 26. The FBI raids on the Chicago com­ planes. According to the Jan. 22 Washing­ don LaRouche and otherswere rushed modity trading pits under the direction of ton Post, the Pentagon is conducting a probe to trial beforethe Jan. 1 deadline. U.S. Attorney An�on Valukas, and the De­ into the crash of an F- 111 jet during the 1986 partment of Justice's use of the RICO strike on Libya, and believes that electronic • RONALD REAGAN had "ex­ (Racketeer Influencedand Corrupt Organi­ interference was likely to have been respon­ cellent political sense" which ena­ zations) law in that probe, provoked the sible. So far, Pentagon officials arepointing bled him "to hear voices in the coun­ JourMI's attack. publicly at their own systems, saying that try , and from them to filter out that The use of RICO must be approved in the interference may have come from radio which promised success, and to pr0- Washington "according to a set of detailed waves .transmitted at high frequencies from ceed on that basis ....Reagan was guidelines," the JourMI notes, which "pro­ U.S. ships in the area. much more realistic than one could hibit the use of RICO to coerce a plea bar­ Some radio waves common above the have judged from his speeches," the gain" or "to seek testimony against others . battlefield"will actually affect the electrons Soviet newspaperPravda gushed in Yet, clearlythis has become the standard of within the aircraft's flight controls as well a Jan. 20 commentary. this w." la The JourMI demands that Attor­ as its fuel controls," said Air Force Col. ney General Richard Thornburgh take re­ Charles Quisenberry, who is leading the • THE SOVIETS are responsible sponsibilityfor Valukas' s actions . probe. In the past, he said, the Pentagon too for the buildup of biological and bac­ "Since when doesthe public put up mon­ oftenignored its safeguards designed to pro­ teriological warfare capabilities in the ey so FBI agents can play at speculation?" tect weapons from electromagnetic interfer­ Near East and Asia, according to a the Journal asks. "Since when does a pros­ ence. National Security Council briefing ecutor turn the disciplinary proceedings of EIR has continually pointed to the reported in the Jan. 19 Washington an exchange into criminal charges? Since emerging danger of a new generation of ra­ Times. U.S. intelligence has identi­ when does a U.S. prosecutor's office strike dio frequency or electromagnetic pulse fied two definite and five probable a secret alliance with a politically connected weapons, and demanded an investigation of sites wherethe Soviets areproducing private market competitor like Archer Dan­ Soviet culpability in the extraordinarily high such material in violation of treaties. iels Midland?" number ofmilitary plane crashes.

EIR February 3, 1989 National 79 Editorial

No compromise with evil

A certain ugly rumor has been floating around, that a against rational scientific method, in the vain hope of lot of people who should know better, plan to give limited gains. credibility to the existence of a greenhouse effect for Again, the truth is opposite. If those pushing for the ulterior reason that this will create a favorable cli­ legislation to severely limit the use of fossil fuels-and mate in which to push for nuclear energy. also restrict agricultural production-are successful, Such short-sighted thinking afflicted some mem­ we will face such a severe economic collapse, that the bers of the fu sion community a few years back. They issue of nuclear energy will be moot. reasoned that the anti-nuclear movement might re­ There is an even more serious reason why these bound to their favor, by making the urgency of reaching environmentalists must be stopped. The kind oflie they a fusion-power breakthrough more obvious. This, they spread to foster their claims, whether it be the risks of hoped, would lead to higher levels of funding. radiation, or the warming of the Earth 's atmosphere, is In reality, the opposite proved to be the case. The also intended to transform the culture. anti-science climate created by the environmentalists Environmentalism is a pagan cult-Satanical in its rebounded against the fusion effort as well . Now the vehement attack upon the existence of man as a species leading Princeton (TFfR) Tokamak program has been in favor of the claims of their false god, Mother Nature . cut back, in order supposedly to spread the limited It is by no means coincidental that major supporters of funds among smaller fu sion experiments which raise the environmentalist movement are also members of important scientific questions. such overtly Satanic organizations as the Lucis (for­ The rationale given for the decision is that the bil­ merly Lucifer) Trust. lion-dollar cost for the next stage of a scaled-up TFfR , The London Economist recently editorialized that is a lot of money to spend, when we do not yet have an it might be a good thing for the biosphere, if mankind adequate scientific understanding of how a fusion plas­ were exterminated as a species; and Britain's Prince ma works . Years ago , this magazine violently objected Philip has said that were he to be reincarnated, he would to cuts in funding of the smaller programs, for the very hope to be a killer virus rather than a man . reason that they were exploring the right questions about These statements are provocative, but they are the essential non-linearity of fusion reactions. nonetheless remarkably honest about the motives which We pointed out that the Princeton program was govern these Satanists, when they propose policies depending upon a brute force approach to gaining fu­ which would have as their effect the deaths of billions sion. It was a Zeppelin, when the future would clearly now living and yet more unborn. By counterposing be a jet age; however, we just as strongly oppose hold­ industrial society, not to speak of the development of ing back the TFfRjust when it holds promise of a major new technologies such as fusion power (or the adequate breakthrough in fusion. So now we are sorry that some exploitation of nuclear energy) to a "living" biosphere, worthy scientists, who have been starved of funds to they are advocating a far more elaborate policy of gen­ pursue highly valuable fusion research, are seeing the ocide than did even Adolf Hitler. diversion of limited funds away from Princeton and If you disagree with the premises of these genocid­ into their research, as a step forward . alists, then don't compromise with their evil. No tacti­ Those who think that supporting the campaign to cal gain for the moment can be worth the price of allow­ stop the greenhouse effect is a clever maneuver are ing them to achieve any more credibility with a citizen­ wearinga similar set of blinders . They are proposing to ry already too prone to substitute irrational fantasy for support the evil ideology of radical environmentalists, a dispassionate recognition of necessity.

80 National EIR February 3, 1989 LAROUCHE Overpopulation Isn't Killing the World's Forests- YOU MAY LOVE HIM YOU MAY HATE HIM the Malthusians Are

There Are BUT No YOU'D BEDER Limits to KN WHAT Growth

HE H by Lyndon H. LaRouche, Jr. The Power of

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