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Executive Intelligence Review, Volume 3, Number 50, December 13

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Executive Intelligence Review, Volume 3, Number 50, December 13 Vol. III No. 50 Dec. 13, 1976 NEW SOLIDARITY INTERNATIONAL PRESS SERVICE World Weekly Report . Fiat Deal leads Way to New World Order . I P.O. Box 1972, GPO, New York, N.Y. 10001 Telephone: [212 ]563-8600 five dollars ' """" EIR ARCHIVE Return to Mailroom TABLE OF CONTENTS Vol. III No. 50 INTERNATIONAL REPORT UNITED NATIONS 2 Kissinger Forces Cancellation of North-South Talks 30 U.S. Stops Negotiating On Economic Issues 3 Fiat Deal leads Way To New World Order 5 Saudis Prepare For Takeover Of A RA MCO 6 State Dept.: "The U.S. Should Nuke The Saudis'· EUROPE 33 British Cabinet Forces Change In IMF loan NATIONAL REPORT 34 Schmidt Takes Charge Of New Cabinet 34 W. German Parties Battle For Policy Control 7 USLP To Appeal Dismissal Of N.Y. Fraud Actions: 35 W. German Press On Defense Policy Hearing Set In Wisconsin,Ohio 36 New Gaullist Movement Calls For Break With Dollar 9 Carter Report 10 GOP Report 12 Congress Report MIDDLE EAST 13 Washington Week 38 Rabin Pursues Peace Policy. Carter Backs Hawks ECONOMICS AFRICA 15 Foreign Exchange 16 Gold 39 Conference On Rhodesia: "Progressing Too Fast" 17 International Stocks 40 Africans Reject No-Growth 18 World Trade 19 Business Outlooks 20 Agriculture ASIA 22 Corporate Week 41 Japanese Election A Blow To Miki 43 U.S. Plans To Revive SEATO MeetTrouble SCIENCE AND TECHNOLOGY 44 The Black Heart Of Takeo Fukuda Part II 24 U.S.-USRR Presentation: Development Of Controlled Thermonuclear Fusion LATIN AMERICA 52 Political Prisoners Murdered In Peru SOVIET SECTOR 52 Peru-Ecuador Border Tensions 53 Mexico: "Big MAC" Under Discussion 27 Soviets Call For Renunciation Of First Nuclear Strike 54 Corporatist Model Forced On Argentina MILITARY STRATEGY PRESS 28 Furor Over Soviet Civil Defense 56 Whose Voice Is It? .... Solidarity Int ernational Pre•• Service Weekly A8DOft IS published by Campaigner PI/bllcations.lnc .. 231 West 29th Street, New York, N. Y .• 10001. Single issue price: $5.00(U . 5 . ) . Subscription by mail are $225 lor 1 year (52 issues). Address all correspondence to: Camplligner Publications. Inc .. P.O. Box 1972. GPO. New York. N.Y .. l000l. Editor-in-Chief: Nancy Spann;,us Managing Editors: Linda Frommer and Don Bllier Prodl/ction Editor: D. Asch © 1976 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. [THIS PAGE IS INTENTIONALLY BLANK] TlONAL REPORT Kissinger Forces Cancellation of North-South Talks Dec. 11 (NSIPS) - The Group of 19 developing countries model for use of Arab oil money to expand European representing the Third World at the Paris "North-South" industry, and development in general. talks this week voted to accept a postponement of the The upcoming meeting of OPEC, now scheduled for scheduled Dec. 15 closing session of the year-long December 15 in Qatar, is expected to be used by the Conference on International Economic Cooperation, progressive OPEC countries as a forum for discussing a until sometime next year. In a statement issued in Paris strategy of expanding these arrangements with Europe Dec. 9, the Group said it was "prepared to meet on and the socialist countries. The rest of the Third World is December 15 but has accepted the postponement in view looking to the meeting as key in reviving the drive for the of arguments advanced that at this time some new world economic order. A high level Third World industrialized countries in the Group of 8 are not able to source in Europe reported this week that part of the assume political positions which will ensure the success thinking involved in the Group of 19 decision to postpone of the conference. " the talks in Paris was that the Third World will likely not The failure of the conference is a direct result of a return to the Paris talks. "There was no dialogue in massive pressure operation staged by U.S. Secretary of Paris, only a Third World monologue," he said, adding State Henry Kissinger and other backers of Jimmy that the Third World will support the action taken by Carter, against the Third World and anti-Atlanticist OPEC at its meeting. Sources at the United Nations forces in Europe. Kissinger has, since at least the "report that Yugoslavia and Algeria are suggesting ihat November session of the conference, circulated the lie the OPEC meeting be followed by a Group of 19 meeting that any further discussion on general debt moratoria in Paris. and other action demanded by the Third World must Statements issued by Third World leaders, especially await the assumption of power by Carter. If the talks are from OPEC countries, since the postponement of the. resumed before then, Kissinger warned, nothing could be Paris talks, have made very clear the commitment to a accomplished. unilateral course of action. The Minister of Mines of Despite the strong protests of a core group of OPEC member Venezuela, Hernandez Acosta, told the progressive nations, including Pakistan, Algeria, and Venezuelan press several days ago that OPEC is now Indonesia, the more timorous nations within the Group of preparing to apply oil as a weapon selectively against 19 succumbed to Kissinger's lies, with the desperate hope those countries sabotaging negotiations for a new world that a Carter Administration will be more economic order. Reminding the press that Venezuelan "sympathetic" to the Third World. This was preceded by president Carlo Andres Perez had· warned the pressure against European efforts led by Italy, to break industrialized nations of the consequences of sabotaging with Kissinger and convene the December session. The North-South, Hernandez added that OPEC "would have final postponement was effected with the help of the preferred to find solutions in a global manner, at the agent co-chairman of the Conference, Canada's Allen North-South conference" but "sufficiently powerful Mac Eachen and Venezuela's Perez Guerrero. elements" in the world "force us" to raise the price. Kissinger's successful sabotage will almost surely Hernandez made clear that OPEC is considering prove to be a meaningless "victory" however, as pro­ granting preferential treatment to the Third World and development forces within Europe and the Third World, some industrialized countries, a position also voiced spurred on by the incontrovertible evidence that publicly by Libya. The Libyans have indicated that such Rockefeller's Lower Manhattan forces will never allow a preferential treatment might take the form of increased new world economic order to be negotiated, are moving oil-for-technology deals with European nations. This was faster than ever to implement the new order unilaterally. stressed by the head of the Libyan Foreign Bank, Not waiting for Carter and the much-promised future Abdalla Saudi at a press conference in Rome last North-South talks, key OPEC countries such as Iraq, Wednesday where he said that the recent heavy Algeria and Libya are organizing broad based oil-for­ investment of Libyan funds in Fiat was only "a first technology deals with Italy and other Europeans - step." prototypes of the necessary economic cooperation At the same time, OPEC member Iraq has launched a . between the developing and developed sectors. The strong attack against attempts by the International recent deal between Libya and Italy's Fiat, a deal which · Monetary Fund and the World Bank, together with is being expanded to include the Soviet Union in a private western banks, to establish "economic tripartite cooperative arrangement, is being cited as a dictatorships" in the Third World. A Radio Baghdad broadcast two days ago pointed out that the motivation Q: What sort of development assistance? Are you talking for such measures is to enforce debt payments. The about Kissinger's International Resources Bank broadcast also attacked certain Arab countries' policy of proposal? placing deposits of oil revenue in western banks, as these A: The IRB does have some utility in the energy field, but funds are then used to "strangle" the Third World. somehow in the other areas the Third World has been The Group of 77 developing countries is scheduled to particularly resistant. hold a meeting at the United Nations in New York next Q: What are you thinking of for energy development week, where strategy for the future will be discussed. assistance? Pakistan, which played a leading role in the Paris talks, A: Principally of course there is the IRB-type is expected to urge that the General Assembly of the arrangement that could facilitate investment at an world body be given the responsibility to review the encouraging rate of return that would help the results of the Paris talks and supervise the developing countries become energy self sufficient via implementation of the new world economic order. domestic alternate resources. India for example has a lot of coal. Of course the real problem is not just the State Dept. Bares Po st North-So uth Plans shortage of capital but the shortage of confidence of creditors in the political reliability of LDCs in their Th e following is an excerpt from an interview with an contractual obligations. The history of the last year has official in the Fuels and Energy Office of the U.S. been that once an LDC finds the resources that can be Department of Sta teo exploited - or rather - developed, they reneg on the contract and the creditor loses. Q: There have been repeated reports of sharp political Q: What countries are you looking at? fights between the United States and the EEC over what A: Well we mentioned Indian coal. We are also interested policies to take with the Group of 19 developing countries. in Brazil, Malaysia and Pakistan for oil.
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