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Executive Intelligence Review, Volume 30, Number 4, January 31, 2003

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Executive Intelligence Review, Volume 30, Number 4, January 31, 2003 EIR Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Lyndon H. LaRouche, Jr., Muriel Mirak-Weissbach, Antony Papert, Gerald From the Associate Editor Rose, Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, William Wertz Editor: Paul Gallagher Associate Editors: Ronald Kokinda, Susan Welsh o what’s wrong with free trade and deregulation?” many people Managing Editor: John Sigerson ‘S Science Editor: Marjorie Mazel Hecht ask EIR. “It makes the products I want to buy cheaper. I can get a Special Projects: Mark Burdman shirt at KMart, made in Guatemala, for $10, which would cost me $40 Book Editor: Katherine Notley Photo Editor: Stuart Lewis if it were made in the United States. Isn’t that good for the economy?” Circulation Manager: Stanley Ezrol One small problem: Your local KMart just closed down. The INTELLIGENCE DIRECTORS: people who worked there are unemployed, no longer able to pay taxes Counterintelligence: Jeffrey Steinberg, Michele Steinberg (same for the seamstress in Guatemala). Your state legislature is Economics: Marcia Merry Baker, cutting its budget, your local hospital closes, and the schools go on a Lothar Komp History: Anton Chaitkin four-day week. Ibero-America: Dennis Small Almost every article in this week’s issue documents what’s wrong Law: Edward Spannaus Russia and Eastern Europe: with free trade, and why the current system must be replaced. In every Rachel Douglas single case, you can see how Lyndon LaRouche intervened—years United States: Debra Freeman, Suzanne Rose ago—to say what would happen if we continued on the road to dere- INTERNATIONAL BUREAUS: Bogota´: Javier Almario gulation; LaRouche was ignored (or worse); and now, what he fore- Berlin: Rainer Apel cast has occurred. Buenos Aires: Gerardo Tera´n Caracas: David Ramonet Our History feature presents a conceptual overview of the fight Copenhagen: Poul Rasmussen between the British free-trade system (cheap labor, slavery), and the Houston: Harley Schlanger Lima: Sara Maduen˜o American protectionist system (which holds the quality and produc- Melbourne: Robert Barwick tivity of labor to be the source of social wealth). Mexico City: Marivilia Carrasco, Rube´n Cota Meza In Argentina, the free-trade policy has resulted in the bankruptcy Milan: Leonardo Servadio of the nation. In California, the Public Utilities Commission voted to New Delhi: Ramtanu Maitra Paris: Christine Bierre reverse the disastrous nine-year “experiment” with electricity dere- Rio de Janeiro: Silvia Palacios gulation. The AIDS crisis, as LaRouche forecast in 1985, has reached Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein global pandemic proportions, as a direct result of governments’ fail- Washington, D.C.: William Jones ure to act in a dirigist manner. In Southeast Asia, nations are reaching Wiesbaden: Go¨ran Haglund the conclusion that the IMF way is the way to disaster. In Poland and EIR (ISSN 0273-6314) is published weekly (50 issues) Georgia, where people are still clinging to free-trade doctrines, the except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania economic collapse of the past decade is breathtaking. And the U.S. Ave., S.E., 3rd Floor, Washington, DC 20003. (202) 543-8002. For subscriptions: (703) 777-9451, or toll- healthcare system, one of the best in the world, is breaking up. free, 888-EIR-3258. World Wide Web site: http://www.larouchepub.com Will the insane drive to war against Iraq be held up long enough, e-mail: [email protected] for the economic crisis to force it off the agenda? Our cover package European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, documents the growing determination of the opponents of war, espe- D-65013 Wiesbaden, Bahnstrasse 9-A, D-65205, Wiesbaden, Federal Republic of Germany cially in Europe. Next week, we’ll have major strategic developments Tel: 49-611-73650. Homepage: http://www.eirna.com E-mail: [email protected] Executive Directors: Anno to report, with respect to two State of the Union speeches, and a two- Hellenbroich, Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, week visit to India by Lyndon and Helga LaRouche. Tel. 35-43 60 40 In Mexico: EIR, Serapio Rendo´n No. 70 Int. 28, Col. San Rafael, Del. Cuauhte´moc. Me´xico, DF 06470. Tels: 55-66- 0963, 55-46-2597, 55-46-0931, 55-46-0933 y 55-46-2400. Japan subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyright 2003 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Periodicals postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months—$125, 6 months—$225, 1 year—$396, Single issue—$10 Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. EIRContents Economics 4 IMF Blinks in Argentina Showdown; All Eyes on Cover Brazil This Week 6 LaRouche Youth Are Changing the Rules as French President State Capitals Face Jacques Chirac Economic Crisis (left) and German Chancellor Gerhard Schro¨der on Jan. 7 California Reverses 23. They marked the Electric Deregulation! 40th anniversary of their nations’ 9 Put the Toothpaste Back in alliance after World 26 ‘War Over Iraq War’ Hangs on Two State of War II, by firmly the Tube! opposing an Iraq Union Speeches What Lyndon LaRouche said in war. The plaque The French and German governments are pulling out all February 2001 on the California behind them shows the stops to try to prevent what they see as a catastrophic electricity price crisis. President Charles war. In the United States, it’s a battle between the de Gaulle and chicken-hawks, and Lyndon LaRouche. Chancellor Konrad 11 AIDS Plague Won’t Peak Adenauer, who For 40 More Years signed the Elyse´e 29 German Moves Against Iraq War Intensify Treaty in 1963. 13 ‘Mass Murder by 30 The Elyse´e Treaty Is a New Opportunity Complacency’ A statement by Helga Zepp-LaRouche. A statement by UNAIDS envoy to Africa Stephen Lewis. 31 Anglo-Americans Boast of ‘New Empire’ 15 Botswana Case: AIDS Can Drive Wipe Out Nations 33 Pope John Paul: ‘War Is Not Inevitable’ 17 Debt, Deflation, and Depression 34 San Marino Salutes Pope, LaRouche 18 Southeast Asia Leaving IMF Restraints 20 ‘China’s Emergence Brings Forth Optimism’ An interview with Dr. Sarasin Viraphol. 22 Poland: Slanders Aim at LaRouche’s Influence 24 Deep In Depression, Georgia Faces Elections www.larouchepub.com Volume 30, Number 4, January 31, 2003 International National Interviews 35 Will Sharon Become 46 State Budget Cuts Lay 20 Sarasin Viraphol Israel’s Ceausescu? Waste To Health Care for Dr. Sarasin is Executive Vice the Poor President of the Charoen Pokphand 38 Are Dirty Mega-Bucks Group Co., Ltd., Bangkok, the Behind Sharon’s Bid To 48 D.C. Officials Conspire largest agribusiness group in Steal Israeli Elections? With Bankrupt Privateers Thailand, and one of the largest foreign investors in China. The Mega Group of American and To Destroy Health Care Canadian mega-billionaires, tied to organized crime and right-wing 50 Congressional Closeup Zionist causes, joined in the effort Departments to steal the Israeli elections, on behalf of Ariel Sharon. 72 Editorial History It’s the System 42 Cambodia: A Sovereign Tribunal To Try War 52 America’s Battle With Crimes Britain, 1860-1876: The Civil War and the 44 LaRouche’s Voice Heard in American System Dominican Republic The introducion to the classic book by the late W. Allen Salisbury, on the real history of the United States: the free traders vs. the American System. Part 1 of 2. Photo and graphics credits: Cover, page 30, Bundesbildstelle/ Andrea Bienert. Page 5, President Duhalde’s website. Page 6, EIRNS/ Neil Martin. Pages 10, 54, EIRNS. Page 16, World Food Programme. Page 25, Central Intelligence Agency. Page 27, EIRNS/Steven Carr. Page 28, Bundesbildstelle. Page 29, EIRNS/Chris Lewis. Page 36, White House Photo. Page 39, (Steinhardt), Yeshiva University Today online. Page 40, kishon.org website. Page 45, ANCOL. Page 53, PRNewsFoto. Page 55, 60, Library of Congress. Page 61, U.S. National Archives. Page 69, www.arttoday.com EIREconomics IMF Blinks in Argentina Showdown, All Eyes on Brazil by Cynthia R. Rush After almost a year of negotiations with Argentina, the Inter- that could have brought down the whole system. national Monetary Fund announced on Jan. 16 that it had Had the decision been up to IMF Managing Director Horst decided to grant a “transitional” agreement to that govern- Ko¨hler, there would have been no announcement. Together ment—not to include any fresh funds, but to simply roll over with Deputy Managing Director Anne Krueger and Western the $6.6 billion it has coming due through August of this year Hemisphere Division Chief Anoop Singh, Ko¨hler had ruth- (plus another $5 billion already paid in 2002). Acrimonious lessly badgered Argentina for a year, demanding a “sustain- talks between the two teams of negotiators had gone down to able economic program,” a “political consensus” for deeper the wire. The government of Eduardo Duhalde had a $1 billion austerity measures, greater “fiscal responsibility” from pro- payment to the Fund due on Jan. 17, and threatened to default vincial governments, and a host of other policies impossible on it, just as it had defaulted on earlier payments to the World to impose. Their demands coincided with the horrific news of Bank and the Inter-American Development Bank (IADB) in children dying of starvation—because of IMF policies al- November and December. ready implemented—in one of the world’s premier agricul- Finance Minister Roberto Lavagna had warned that Ar- tural producers; a tragedy which continues to occur.
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