EIR EIR

An Emergency The War Plan to Fight GRAMM ..RUDMAN AIDS DISASTER

EIR's Biological Holocaust Task Force has prepared President Reagan's signing of the Gramm-Rud­ the world's only science-intensive "Emergency War man amendment, which compels the federal Plan to Fight AIDS." The newest discoveries of opti­ government to reduce spending by about a cal biophysics and advanced laser technology can quarter-trillion dollars over the next five years, improve diagnosis and lead to research break- completes the national bankruptcy of the throughs-if governments move now. United States. But even without Gramm-Rud­ Th� War Plan begins with the President of the I man, living standards in 1986 will plunge 15- United States, in his capacity as civilian leader and I' 30% 1960s. commander-in-chief, declaring a War on AIDS and from the levels of the late invoking National Emergency powers to avert disas- Contents . ter. In parallel, heads of state of other nations of the Western alliance shall declare war on this Depression deflation, bankruptcy, and the scourge to mankind. Gramm-Rudman act A ISO-page Special Report for governments, sci­ The decline in the productive economy entists, public health officials, and all citizens con­ The geometry of technology cerned with a policy to fight AIDS, before a The absurdity of GNP analysis pandemic wipes out millions. The available solutions

Contents The world financial system at a breaking poiI)t The emergency war plan to fight AIDS and other An orgy of speculation pandemics The farm debt crisis The non-issue of the budg�t deficit The real story of AIDS in Belle Glade, Florida Commodity prices and Third World debt AIDS in Africa: the unfolding of a biological holo­ Peru and the debtors' resistance caust A crash of the dollar I The biology of AIDS M�mey-Iaundering in 1985

Flow cytometer and other laser technology poten­ The world will starve without an emergency'pro­ tial for combatting AIDS duction mobilization The relevance of optical biophysics for fighting The world staples shortages AIDS: designing a Biological Strategic Defense Ini­ Attack on U.S. export potential tiative (BSDI) Downgrading of world food production Mobilizing for more and better food How Kissinger and Pugwash destroyed America's biodefense against AIDS and other deadly diseases The 99th Congress's farm shut-down

The Soviet command and control of WHO's AIDS Ceramics and the ceramic heat engine for the Policy automobile of the future The car of the future Why the Reagan administration has tolerated the CDC cover-up of the AIDS pandemic Russians lead West in ceramics Ceramics take man beyond the Iron Age The necessary public health program to fight AIDS

Full year subscription: $1,000 $250.00. Order from: EIR News Service, P.O. Box Single issue (fourth quarter 1985): $250 17390, Washington, D.C. 20041-0390. Order Order from: EIR News Service, P.O. Box 17390, #85020 Washington, D.C. 20041-0390 Founder and Contributing Editor: Lyndon H. laRouche. Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Production Director: Stephen Vann Contributing Editors: Uwe Parpart-Henke. From the Editor Nancy Spannaus. Webster Tarpley. Christopher White. Warren Hamerman. William Wertz. Gerald Rcse. Mel Klenetsky. Antony Papert. Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Director of Press Services: Christina Huth

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot Agriculture: Marcia Merry Asia: Linda de Homs Counterintelligence: JefJrey Steinber)(. Paul Goldstein I f any of you have been gulled by the "contra" support policy that Economics: DaI'id Goldman has been swallowed hook, line, and sinker by the Reagan adminis­ European Economics: William Engdahl. Laurent Murawiec tration, please tum immediately to the Feature dealing with U.S. Europe: Vii'ian Freyre Zoakos Central America policy, which begins on page 26. It is not merely lbero-America: Robyn Quijano. Dennis Small Law: Edward Spannaus the case that the President is being lured into a trap, baited by the Medicine: John Grauerholz. M.D. . appearance of effective military action against the Sandinista gov­ Middle East: Thiern Lalel'ee Soviet Union and Eastern Europe: . ernment of Nicaragua-a trap the liberals plan to spring in the near Rachel Douglas. Kon.ftantin Geor)(e United States: Kathleen Klenetsky. Stephen Pepper future by revealing, at the opportune moment, that the "contras" are

INTERNATIONAL BUREAUS: a bunch of drug-trafficking terrorists. Bangkok: Pakdee and Sophie Tanapura Nor, is it only that this policy is being used to destroy any Bogota: Jal'ier Almario Bonn: George Gregori". Rainer Apel possibility for the Contadora group of Panama, Mexico, Venezuela, Chicago: Paul Greenber)( and Colombia, to act for a regional political solution to the mess in Copenhagen: Poul Rasmussen Houston: Harley Schlanger Central America-although that, too, is a major feature of the poli­ Lima: Sara Madueiio cy, as promoted by the State Department and InternationalMonetary Los Angeles: Theodore Andromida.\· Mexico City: Jose.tina Menendez Fund. Milan: Marco f'anini Most important of all, the "contra" policy is the first step in New Delhi: Susan Maitra Paris: Chri.ftine Bierre consolidating, after the Philippines, the new Reagan foreign policy Rio de Janeiro: Sill'ia Palacios doctrine of "democratization" in every alleged "dictatorship" among Rome: Leonardo Sen·adio. Stefania San·hi Stockholm: Clifford Gadqy our allies. "Democratization" was the doctrine of Jimmy Carter, the United Nations: Dougla.f DeGroot worst President the United States ever had. It gave us the Ayatollah Washington. D.C.: Nicholas F. Benton. Susan Kokinda. Stanlev Ezrol Khomeini in Iran. In the Philippines, it has given us an unstable Wiesbaden: Philip Golub. Mary Lalel-ee coalition that has yet to finda means of legitimizing itself; an upsurge ElRIExemlire /lIIel/iliel/('e Rel'iell' (/SSN 11273--(>3/.1/ i" of communist terrorism; and the peril of loss of the two vital U.S. publiJlred �n!ekly (50 i.ulU'SJ t'xn'I" for lhl' ,\en",d week �rJltly llI11l}int \t,t't'k (�rJlImlllry by Nt'u' Solidarity bases, Clark Field and Subic Bay. What it will produce in Panama, /memlllio//CI/ Pre"" Seni",' 1M2 K 51. N.W" 5I1il,· 31111. WCI.,hil//llllll. D.C. 2111106 (21121 955·5930 . is shown in shocking detail in the cover story . Distribllled by ClilIel"," Di,\'IrihworJ, Inc. The global disaster being brought about by this policy is shown European Headquarters: Executive Intelligen<..'e Re,,'lc\\ Nachrichtenagentur GmbH. Postrach BOX. in the Strategic Map in the centerfold. Dotzheimerstra"e 166. D-6200 Wiesbaden. Federal Republic­ of Germany Tel: 1(612 1) 8840. Executive Directors: Anno Hdlenhrokh. So: WHAT'S WRONG WITH THE U.S. GOVERNMENT? Michael Liebig We have just published a Special Report that answers that ques­ In Denmark: EIR. Haderslevgade 26. 1671 Copenhagen ((II I 31·09-08 tion: Moscow's Secret Weapon: Ariel Sharon and the Israeli Mafia. In Mexico: EIR. Francisco Dias Covarrubias 54 A·3 Wherever one goes in Washington these days, one hears that "Israel Colonia San Rafael. Mexico DF. Tel: 705·1295. Japan subscription sales: O.T.O. Research Corporation. is America's most reliable ally in the United States." And indeed, Takeuchi Bldg .• 1·34·12 Takatanobaba. Shinjuku·Ku. Tokyo 160. Tel: C031 20S-782\' wherever one goes in Washington, as this report documents, one is Copyright © 1986 New Solidarity International Press Service. All righls reserved. Reproduction in whole or in pan without likely to find an agent of Israeli intelligence in a high position in permission strictly prohibited. Second·c1ass postage paid at Washington D.C., and al an 'additional mailing offices. 3 government. Or: Are they really agents of Soviet intelligence? months-$ 125. 6 months-$225. I year-S396. Single issue-$\O Academic library rate: $2 45 per year

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Interviews Economics

6 The Hon. Publio Fiori 4 The Federal Reserve girds A Christian Democratic member of for a banking crash the Italian Parliament and The question is, not whether, but chairman of the Committee of when there will be a crash . Italian Parliamentarians Against Famine , talks about his proposal 8 Currency Rates for an alignment of European, U.S., and deve loping sector 9 AID chief proposes politicians to change the international economic order. 'priv.tization' to recolonize the Third 60 Governor Mark White World Texas's top official, a Democrat 14 Labor in Focus elected in 1982, discusses his campaign for an oil import fe e. A strike against corporate raiding.

15 Agriculture WashiQgton's "free trade" line.

Departments 16 Business Briefs

11 American System Abraham Lincoln's 'space program': the national railroad system. Science & Technology

36 Strategic Map 18 The x-ray laser: a new era The global chokepoints-State in laser technology Department's gift to the Soviet Have ,*dvances in fact been made Navy. in this crucial technology? Yes. report Charles B. Stevens and a 52 Vatican number of Lawrence Livermore Liberation Theologists are gleeful. scientists.

53 Report from Bonn Another SOl delegation to Washington.

54 Dateline Mexico Faction fight over drug trafficking.

72 Editorial The post-Reagan era has begun Volume 13 Number 12. March 21. 1986

Feature International National

38 Olof Palme, and Moscow's 58 What is wrong with the new assassination policy CIA's Robert M. Gates? Editor-in-chief Criton Zoakos goes What are the professional behind the screen of credentials of the new deputy disinformation to investigate the director of the CIA. and why was real reason for the assassination of he appointed? Olof Palme. 60 Texas governor urges oil 40 Soviet party congress tariff, sees parallels to ushers Red Army into 1929 political leadership 61 Will Texas Governor 26 State Department plots 42 Spanish voters say 'Yes'to White survive the crash of with Nazis to destroy NATO, but what does that '86? Panama 'Yes'mean? The whole sordid story of this 62 LaRouche: Set an oil latest attempt to destroy American 44 France: Hostage crisis parity price allies throughout the world. erupts on eve of elections 63 LaRouche slate takes on 29 Arnulfo Arias-the record 45 Japan will decide on SDI of a Nazi Ohio dope mob . role soon

Terrorists, bankers testify 64 Federal prosecutor in the 33 46 Colombian elections vs. Panama dock: the sorry witness comeback by performance of Daniel narcotics, mafia 34 Qaddafi, Spadafora, and a Small plot against Guatemala 48 Is the State Department 66 Eye on Washington considering its 'Abu Weinberger-Kennedy: Cap wins­ Ghazala option' for and loses. Egypt? By a Cairo insider. 67 Kissinger Watch Guilt by Kissinger association. 50 Profile: Kriangsak Chamanon 68 Congressional Closeup How the State Department targeted Thai patriot. 70 National News

51 South Africa: Botha lifts the state of emergency

56 International Intelligence

, �TIillEconolllics

The Federal Reserve! girds for a banking crash:

by Chris White

Officials at the Federal Reserve, and at the nation's other he counterposed the benefits of the oil price fall, with what banking regulatory agencies, are now girding for a collapse he called "the stresses and stiains" accumulating in the U.S. of the banking system. Their proposals were set before Con­ banking system. gress in hearings before the Senate Committee on Banking, What the Seidman proposals mean is that bank regulators Housing and Urban Affairs on March 11. have now figured out that the explosive bankruptcy crisis of On that occasion, officials from the Federal Reserve the dollar monetary system, and the United States, have Board, lead by Preston Martin, Volcker's number-two, were reached the point where the accumulation of unsupportable joined by William Seidman, chairman of the Federal Deposit speculative paper has, even in their minds, become insup­ Insurance Corporation, Edwin J. Gray, chairman of the Fed­ portable. That conclusion won't exactly be news to regular eral Home Loan Bank Board, and Robert L. Clarke , comp­ readers of Executive Intelligence Review. trollerof the currency. The officials presenteda united front on the dangers facing the banking system, during what they Admission of bankruptcy called "this transitional period." If boiled down to essentials, two alternate sets of propos­ But it was the chairman of the Federal Deposit Insurance als were presented to the Senate that day. The proposals differ Corporation whose testimony revealed what the nation's in regard to the timing to be expected for the crash, though banking regulators now expect to come to pass. neither set of protagonists said as much openly. Seidman recommended "that a Federal depositor prefer-: Seidman's call for legislative action on the question of ence statute be enacted." This, he said, would preferdepos­ depositor preference is an admission that a collapse can no itors to other bank creditors, including those creditors who longer be delayed. Other officials advocated the opposite, might establish claims in connection with letters of credit, seeking to buy more time fQr the doomed banking system, other guaranties, law suits, etc . It would apply to all FDIC­ by such means as accounting tricks, restructuring loans with­ insured banks. out forcing banks to take write-offs , and promoting the usual Seidman's proposals confirm what was suspected when panacea of interstate banking, with which Seidman agreed. Paul Volcker and the central banks of Germany and Japan The two alternatesets of proposals conform to the polit­ acted abruptly to lower interest rates recently. That move was ical line-up that has prevailedsi nce the beginningof the year, not made because of the strength of the so-called United between the politicians in the administration, typified by States recovery, but simply because the United States bank­ James Baker's Treasury Department, still committed to the ing system, stretched by the impact of collapsing dollar and psychotic illusions of the continuing great recovery, and the oil prices, is on the verge of collapse and needs infusions of technicians at the Federal Reserve. Thus far, the technicians credit. Indeed, Volcker himself had implied as much in his have fought the politicians on the question of "junk bond"­ semi-annual report to the United States Congress, in which financedmergers , and on the;question of the dollar,and their ..

4 Economics EIR March 21, 1986 views seem to have prevailedon both accounts. pected by mortgage associations to leap more than $50 billion Junk bond mergers, the purchase of perfectly good com­ this year, is part of the effort . panies with rotten promissory notes of some third party, were None of this will work. The dollar won't be stabilized. stopped by order of Volcker, despite the opposition of the Interest rates will not stay down. Perhaps within the next Treasury and White House. Measures were taken to stem the three to six months the question will be called. system-endangering slide of the dollar-despite the insist­ What is needed, in addition to measures to protect depos­ ence ofthe administration that it should be allowed to fall yet itors, is simple recognition of the broader reality that the further. Measures typifiedby the recent lowering of interest entire monetary and banking system is bankrupt. Depositors rates are part of the same picture. whose money and earningsare hostage to a bankrupt banking Now, the issues involved are beginning to come out. The and credit system can never be given the protection that is in FDIC chairman's core proposals signify that the key control­ equity their due. The usurious monetary system which the lers of the nation's banking system have determined that bankrupt banking system serves must be swept away, and time-buying measures, of the sort pursued so obsessively replaced with a returnto aU. S. Treasury-backed gold reserve since the Bretton Woods system first began to unravel back standard. The issuance of Treasury notes, gold-backed, into in the monetary chaos of 1967, will no longer work. the banking sector to provide backing for issuance of credit Those who argue on behalf of the latter approach still for productive purposes in agricUlture, industry, utilities, insist on the existence of any number of separate crises, a infrastructure, would ensure the protection of depositors, farm sector crisis, an energy patch crisis, a real estate crisis, . banks, and economy alike, while permitting the revival of a Third World debt crisis. They obsessively maintain that production and trade internationally. each such crisis can be handled separately, by stretch-out If such measures are not taken, then the Federal Reserve measures for the associated banks, without regard to the and the banking regulators are simply organizing the biggest economic plight of the productiveeconomy the afflicted banks deflation of paper values, i.e., the biggest and bloodiest have lent to. depression collapse, in human history. In Texas and parts of The combined collapse of the dollar and the international California, it is widely considered that that is exactly what is price of oil, over the last two months, seems at least to have going on. It was evident in Ohio and Maryland last year. disabused some officialsof that kind of idiocy. Action by regulators helped to bring about collapse, while But the kind of crisis those officials now expect cannot setting up the victims and their depositors for takeover by be dealt with by the kind of measures they propose. Depositor out-of-state, drug-money dependent interests. preference, favoring depositors, employment, and employ­ ment-related services, is necessary in any banking reorgani­ The oil collapse zation, as declared presidential candidate Lyndon H. La­ This reality is underscored by the emerging direct and Rouche proposed last year at the time of the Maryland and indirect consequences of the collapse in the oil price, on top Ohio savings bank crises. Such measures would separate out of the unraveling-of the monetary system. Over the last year, those parts of a bank's money flowand operations which are the number of active wells in the United States was reduced related to economic reality, from those which are totally the by almost 40%. Now, fields are being shut down and wells creation of the speculative fictions of usurious speculations, capped in every major oil producing region of the country. or worse forms of criminality such as the drug trade. The The estimates of those knowledgeable of the industry range claims of depositors, that is, wage earners, family house­ from a low estimate of a further 15% of U.S. oil production holds, pensioners, would be given priority over letters of to be shut down at $15 per barrel, to 30%. Exxon and Mobil credit and other such instruments. are leading the majors in making cuts of 25% and up in their Under present circumstances such measures would sim­ operatingbudgets for the next year. ply hand overthe remaining healthy functions ofthe economy Already, the question has been called on Third World oil­ to looting by essentially bankrupt institutions like the major dependent debtorslike Mexico, Venezuela, Nigeria, and In­ money-center banks, Chase Manhattan or Citibank. Or, to donesia. Now, it is the advanced sector's tum, not only in ' that group of institutions known to the regulators, as "non­ the United States, but also Canada and Britain. bank banks," or "phantom banks," the Searses and Merrill The realitythat has been set into motion over the last two Lynches, a creation of the regulators' permitting the laws to months makes a mockery of those who argue that time can be undermined or changed to preserve the expanding bubble. still bebought for the decaying remnants of the BrettonWoods Meanwhile, the lowering of interest rates, with its impact system. Such advocates no longer have anything leftto buy on the mortgageand related markets, is functioning as a kind time with. of bridge to such envisioned reorganizations, as debt-instru­ The technicians are themselves equally incompetent. ments are shifted through refinancingagreements from high­ Committed to the defense of the indefensible, the mainte­ er interest cost to lower interest cost. The scramble to suck nance of a bankrupt monetary and financial system, their much financing into such new low-interest packages, ex- proposalswon 't work either.

ElK Man:h21 , 1986 Economics 5 Interview: Publio Fiori

Parliamentarian calls fo r club of anti-IMF politicians

The HonorabLe Publio Fiori is a member of the executive of we have created a law that earmarks 0.35% of the GNP for the Christian Democratic group in the Italian House of De­ aid to Third World countries. puties. He served on the councils of Rome and the Latium But naturally, the appropriation of these large sums at­ region during the 1970s, and in 1978, was seriousLy wounded tracted the appetite of the big financial groups, and therefore , in a terrorist attack by the Red Brigades. In 1979, he was a conflict opened up inside parliament and in the political eLected to parliament with 100,000 preferential votes. partieson the distribution of such sums. The balance was not He chaired the Feb. 15 session of the Committee of Italian positive. While a part actually did go to help the inhabitants ParLiamentarians Against Starvation (PARIFA) in Rome . He of the developing countries, a large part unfortunately has was interviewed on March 4 by EIR's Rome correspondent; been the object of big business. Many Italian groups suc­ the interview is transLated from the Italian. ceeded in getting the Foreign Ministry Department for Co­ operation or the Italian Aid Fund to send the developing EIR: You have recently engaged in activities that favor the countries, not what they needed, but their unsold inventories. development of the emerging countries, both with your par­ The charge that was leveled against us by the developing ticipation at the Schiller Institute's conference on St. Augus­ countries at the recent conference is that, yes, Italy is an tine in Rome Nov. 1-3, and by contributing to organizing the example of a new way of linking up with the problems of conference of the PARIifA a few days ago. Can you give us peace and development, but we have not respected the true some details of what you are doing? needs of populations. They told us, "Be careful: in the future , Fiori: When we started to concern ourselves with these don't give us what you don't need, but give us what we need; problems, which was a quite a few years back, we linked up don't give us what's lying in the bottom of your warehouses, with the ideals of the Catholic tradition that arose and grew which for us can be useless-if not downright harmful-but around Pope Paul VI in the 1960s; at that time, the initiative what we ask for, for development and for survival." was launched to place Italy in the center of North-South The fundamental theme which has guided our action is: relations with a revolutionary concept with respect to the no to emergency aid, yes to extraordinary integrated inter­ past. That is, no longer conceiving of the West's attitude as ventions. What does this mean? No to aid that keeps peopIe a kind of neo-colonialism masked as aid to the countries of alive but maintains the status of economic and political sub­ the Third and Fourth World, but attempting to encourage in jugation of the developing countries vis-a-vis the West, which those countries a form of social, cultural, and economic de­ allows them to survive, but not to live and develop, thereby velopment that would truly eliminate the risks that existed, achieving a parity of conditions in North-South re lations . and still exist, for peace in the world. That is, to speak of Yes to extraordinary integrated and localized interventions peace in the world-when there are 300 million persons in that allow populations to eat, become educated, understand, danger of dying, when there are 30 million persons who die develop themselves, and finally to weave with Italy and the \ of starvation every year, when there are 10,000 children West a relationship of parity. under the age of two who die of hunger every day-is an ...There are countries where people are dying of hunger abstraction, a philosophical exercise, an illusion. because they lack sufficient food-they don't have grain, for Whoever really wants to build peace must act so that the example-but they are forced to produce coffee for export to African continent and that of Latin America can finallyjoin pay the debts to the International Monetary Fund and the in one future . World Bank. But the total exports are no longer sufficient to Italy and Belgium are the only two countries in the world pay even part ofthe huge debt, which has reached the mon­ which have passed laws-in Italy two laws-to institution­ strous figure of $IO trillion, if my information is correct. This alize aid to developing countries. At the last international is the source of the positions taken by [Peruvian] President conference, 10 days ago, various foreign heads of state or Garda and also by the President [Abdou Diouf] of Senegal, their representatives came to Rome, and they recognized that the two leaders of the new course of the Third and Fourth I , 6 Economics EIR March 21, 1986 World countries. to reflect on this fact, because already the wisest men of Now, at this point the West should ask itself: Do we really culture are realizing that the West, with this policy toward want to behave as the Soviet Union does, which keeps these. the Third World, if it is not blind, is certainly nearsighted, people deprived of food, but supplies them weapons in order and is destroying the possibility for building a real relation­ to wed their desire to be free from hunger with guerrilla ship with the countries of Latin America, Asia, and Africa. warfare and uprisings, which are pushed against the West? And we all runthe risk of seeing these countries plunged into Or instead do we want to aim toward economic and spiritual an orbit which is no longer the Westernone , which would growth of the developing countries. So, going back to the mean a military upheaval in the world balance. teachings of St. Augustine, we must fight to create a new great ideal frontier for the West, so that the bridge with the EIR: At the Schiller Institute's St. Augustine conference African, Asian, and Latin American countries becomes spir­ last November, several developing sector participants took itual and moral , even beforeit comes to actual aid. up proposals to reform the international monetary system We have rejected the aid system and we are linked in which were similar to those of American economist Lyndon some way to the effort, which unfortunately failed in the laRouche's OperationJu arez. What do you think about this? 1960s, of the U.N. 's Development Decade for the Third and Fiori: This problem of developing-sector indebtedness and Fourth World countries. But we have also understood that the responses that are given to such a problem are significant. that plan failed because it was drawn up by the world financial They bear witness to two strategies. One is the strategy of and banking system in such a way that, behind the screen of Castro and hence, of the Communist parties, to exacerbate an aid intervention, it frankly contained a plan of exploitation the conflict-essentially planning a revolution in the devel­ and neo-colonialism, which is today the line of the Interna­ oping sector countries that have Western-type regimes, to tional Monetary Fund and World Bank . If we don't under­ stand that such aid is useless if it has no soul within it, we do not understand what the real cosmic, world problem is, which is about to lead the world into war, ruin , and destruction; Going back to the teachings oj St. because the problem is not resolved with quantitative finan­ Augustine, we mustjight to create a cial means only. The funds help, but before the funds, we new great idealJrontierJor the need a philosophical and cultural decision. We must realize that the laws of economics alone would West, so that the bridge with the not be sufficientto feed all the human beings of our planet, if ;'ifrican, Asian, and Latin American we don't firstaccept the discovery of a link between the laws countries becomes spiritual and of morality and thoseof economics: Detached from morality, the laws of economics have never resolved any problem, at moral, even bfifore it comes to least, the laws of free-market economics and those of histor­ actual aid. ical collectivism, Marxism. do not resolve problems, since they leave out immense strata of people. I want to invoke the Extraordinary Bishops' synod; the words also recently pro­ force them to break with the West; on the other hand, the nounced by the Pope , and to recall Cardinal Ratzinger's position of Peru and Senegal, which, on the contrary, wish speech at the Urbaniana University [on Nov. 19, 19&5- with all their might to keep their relations to the West, but ed.]: Either we rediscover a new type of solidarity which is which know that to keep it, they must not fall into the two built on the true principles of Christianity or, on this road, extremes, of paying all the debts, which would be death for the gap between us and the developing countries will widen. their countries, or not paying anything, which would mean a We call them developing countries, which is a euphemism. total break with the Western countries. They are dying: The last figures given by the FAO tell us that We must finda middle way, and this middle way carries the food needs of the African countries of the Sahel have with it these points: the reduction of the quota of the GNP of grown in the last IO years. That is, the more we give, the the developing countries which goes to debt payment, which more they need, and the more funds we bring in, the more quota cannot surpass 15-20% of revenues; moreover, the they starve, which means something has gone wrong. We try West must utilize and appropriate funds for the developing to give carit pelosa ["hairy charity," an Italian expression countries which aim at self-subsistence, which are bilateral meaning apparent generosity inspired by an ulterior mo­ accords for intervention, i.e., not emergency ones but for tive-ed.] as the saying goes in Rome-charity, not to re­ independent development; third, the use of part of these funds solve others' problems, but to try and solve our own prob­ for a cultural exchange, such that young leaders of the ad­ lems. vanced countries can go to work in the developing countries But this is a myopic vision , because in reality, we are not and. vice versa, youth from the developing sector countries solving our problems, but frankly, the West is preparing its come to live and work in our countries, because only by an own eclipse. I would like for politicians throughout the world osmosis of this type can we build a common future.

EIR March 21, 1986 Economics 7 EIR: How do you see the need for a change in U.S. policy towardthe developing sector, which todayunfortunate ly tends i not just toward distancing them from the West, but even Currency Rates ., toward their destabilization? Fiori: I don't want to seem naive, but I am flabbergasted, The dollar in deubchetnarks , because I cannot understand how the United States-a rich New York late..nem- 6x1ng country from the economic standpoint, and above all, from the standpoint of the tradition of freedom which represents, 1.60 without a doubt, the referencepoint of the entire Free World­ I don't understand how it has not understood that it must put 2.50 ' . , itself in the lead of a great world movement for solidarity 2.40 " ..... , among peoples; I don't understand why the United States -- ... does not understand that the right path is not only that of 2.30 building ever-more-perfected systems of defense and of­ �" � fense, but of creating firm ties of solidarity, ties with the , � 2.20 ...... millions, the billions of human beings who essentially want 1/22 1/29 2/5 2/12 2/19 2126 3/5 their right to life guaranteed. The world challenge will be won by him who applies completely the principles of St. The dollar in yen New \1or kl a I e a Iternoon XlnRIi . . Augustine. It seems like an abstract idea, but actually the i future of the world is at stake between those who deny the 210 dignity of man and those who instead believe and work from the concept of the Filioque. who believe that man draws his 200---. dignity and his responsibility directly from God. \.. But whoever expects to go into Africa or Latin America 190 i"- to get rich, is just working for his own destruction...... lBO \ .- EIR: You proposed at the PARIFA meeting the creation of' � a club of politicians against the InternationalMonetary Fund. 170 i 1/22 1/29 215 2/ 2/19 2126 3/5 3/1l Could you give details on this idea? U Fiori: I am convinced that this concept, this idea is an idea­ The dollar in Swissfrapcs force. I think that it, like all idea-forces when they are right, New York lateafternoon 6x1nl . have a pulling power, and hence I don't think that to make this idea win, it is necessary to create a huge line-up with 2.20 quantitatively imposing means. I think it is enough to start to , bring together the political leaders who in the various West­ 2.10 , erncountries understand that this is the decisive move. They .A. must also link up with the political representatives of the 2.00"- ...... Third and Fourth World, who have understood that this is the 1.90 route to follow. Now, we of PARIFA have deCided that from � � - now on, we will go outside Italy. Next month we will organ­ -- I.BO ize a meeting in Paris, then Brussels, then Madrid. 1/22 1/29 21S 2/11 2119 2126 3/5 3112 That is still not enough. It is not possible to face and resolve these problems if European parliamentarians do not The.British pound in dollars' link up with those of the United States. It seems impossible New York lale afternoon &xinl to me that within the U. S. Congress there are not men who can understand these problems. 1.50 , And that's still not enough, because such a link-up must 1.40 be carriedout with all the developing sector politicians, who --- � rv � ' '''''- have understood that what is at stake in their countries is not 1.30 just freedom, vis-a-vis the East, but their lives are at stake. We must put together an international club, without super­ 1.20 structures, which poses as its central objective modifying the i' international monetarysyst em, changing the rules, the objec­ 1.10 tives, the behavior of the IMF and World Bank, to give an tl22 1/29 2/5 2111 2119 2126 3/5 3/1l immediate, real hope, to the developing countries.

8 Economics EIR March 21, 1986 AID chief proposes 'privatization' to recolonize the Third World

Peter McPherson, administrator of the U.S. Agency fo r In­ And all over the world, governments, of course, have ternational Development, gave a press briefingat the United been broke these last few years. Governments being broke States Information Agency's Foreign Press Center in Wash­ throw a whole new weight on matters with-people have ington on Feb. 14, on the subject, "Privatization and Devel­ begun to be forced to do things that they otherwise just op ment." McPherson outlines how AID , a State Department wouldn't have considered .... agency, intends to use depression conditions to reintroduce The other thing that is important to realize here is if a colonization to Third World nations, under the policy term, public enterprise is losing a substantial amount of money and "privatization ." McPherson links state-sector sell-offs to debt a country is very poor, how do you reconcile maintaining rollover and reschedulings, for example. Whether under the that substantial loss . . . . term "debtjor-equity," "privatization," or any other, the policy is: You can't pay your debt, so give creditors your Q: I'm from Brazil. Could you please tell us, how much country instead. This, McPherson emphasizes, includes the money is AID ready to apply in this venture in order to entice United States. Thefo llowing was editedfrom a Federal News governmentsto get rid of their public corporations? . : . You Service transcription . have concentrated your focus on public corporations that are losing money, but how about the ones that are supposedly Privatization is the transfer of government ownership or ac­ efficient, but are seen as an instrument of concentration of tivity from the goverment to the private sector. ... powerin the hands of the state? After World War II, with the independence of many McPherson: We definitely encourage the sale of such enti­ countries, and with the further developments in countries ties. In fact, it's usually quite a lot easier to sell moneymakers who had been independent for some time, there was a marked than it is moneylosers. There are a lot more buyers for that philosophy in many developing countries of statism, of con­ type. And countries too often have startedoff with the losers, trolling the economy from the heights .... when in fact it was easier to start off with the winners. Over ...In the five, going on six years that I've been head of a period of time, usually such companies will become more AID, I can see around the world really a marked move away efficient,there 'll be more competition, and for other reasons from such governmentcontrol of economies and government it makes sense to transfer them ....In general we think the ownership .... transfer of production activity out of the hands of the govern­ The United States, of course, has had some experience ment makes sense. here with our recent sale of Conrail as an example of a privatization activity; Great Britain with the sale of their Q:. . . Is private just always better than public? If you would phone company, was a huge, big, big sale, as you remem­ show up in Switzerland and say "Well, we've got to privatize ber ....What we have in place in AID is technical assis­ the Swiss Railways" which have a somewhat good reputa­ tance to help countries with this .... tion, you would be laughed at, because this is a government system. It functions perfectly, and it asstires that we have Q: . . . How do you wean away countries that have been so decent public transportation in the whole country, and not reliant on statism from that system . . . particularly since just between Berne andZurich ...... major operations that have gone into privatization in McPherson: Well, let me ask you a question about the rail­ developedcountries have not always succeeded? road in Switzerland. Does thePresident 's brother-in-law have McPherson: Well, the reason that privatization has begun to a senior job on that railroad? really catch on is . . . because the old option of government ownership hasn't been working because they didn't have the Q: I doubt it. money to maintain it. . . . The countries begin to recognize McPherson: I doubt it. You often find such in the Third that they can't do the job. World countries. Is there, over the years, the service has not

EIR March 21, 1986 Economics 9 only been maintained but in your opinion apparently im­ vidual enterprises here or in individual countries because proved? Well, that again is a serious problem.Alm ost con­ there's not time enough to go into the details and besides, of sistently in Third World countries, major government-owned course. I'm not going to know all the situations in depth .... activities, the service, particularly in hard times, deterio­ rates ....Those arethe kinds of things that happenin public Q: Are you suggesting . . .that the government could rea­ enterprises in the Third World .... sonably be expected to sell a steel mill-there are six or Take this agricultural price issue we've had.All this ties seven ofthese giant complexesrto its workers who. in tum, into policy issues, economic policy issues.One of the big will borrow from the govern�ent. which in tum, borrows things we've argued a lot in the last fe w· years ...is how from the public? So you end up.... much farmers should be paid.... The urbanites that could McPherson: I don't think it's appropriate for me , in Wash­ riot and all that, could get cheap food.For years, when you ington, D.C .• to recommend tp Mr.Gandhi that he sell his talked about that, people said, "You're going to take that steel mills.I think that's something that Mr.Gandhi has to cheap food away from those urban people?" In fact . those sort through.If they are major losers. then he will have to urban people were �tter off than the farmers.And we've look at that and wonder if those losses is the best place to put argued this issue now in terms of, stop discriminating against government revenues. the poor farmers. What I am saying is that around the world, countries are ...We ll, in some senses, what we're saying about pri­ being forced to ask, what's tllte best thing to do? To lose vatization now is that it is not really fair to discriminate millions of dollars on my government-owned enterprises? I against the masses of people in a country by subsidizing these . .. But I would strongly say that countries all over the public enterprisesthat have only a few thousand employees. world are broke.Countries all over the world need to decide Stop discriminating against the mass of people. whereto put scarce revenues ....

Q: .. . What can you offer apart from the $9 billion the Q: Mr.McPherson , Ed Bauman from Caracas, EI Nacion­ World Bank would give under the Baker Plan? al... � The United States is being asked to help out debtor McPherson: Well, the reason that this is an issue that is in countries-Mexico, Brazil. Venezuela, and so forth. And the thoughts of everyone is because countries are broke; these countries are ones which are leaders in having national systems have fallen apart. Things just aren't functioning. enterprises. state enterprises.Is there any thought being giv. And so leadership in countries are beginning to lookat mat­ en by your government to linking up the idea of giving the ters that 10 or 15 years ago would never have been consid­ aid. bailout, and doing away �ith some of these costly state . , ered.. : . enterprises? I've talked about this in the context of the Third World, McPherson: You remember the Baker Plan proposals set that's where it is pinching the most in my opinion ....But forth in Seoul . Korea in connection with the IMF-World I don't mean to say I believe this is only a Third World Bank meeting talked about such an effort; they suggested that issue ....It 's clear as to the United States that we feel this countries. debtor countries had the obligation to help them­ is very important.Our sale of Conrail is a good example.. . . selves ...and helping the!llseJves generally meant looking at state enterprises. especially state enterprises that were los­ Q: But looking at a country like India, for instance, where ing substantial amounts of money.. . .But it is clear to me the investment is really extraordinarily huge, and there are that privatization is part of the "'holepicture .... no private sector agencies that could conceivably buy out the government. Q: Well, you're being asked to bail out Mexico now on an McPherson: Well, one of the things I think can be done and emergency basis.Are you prepared to get tough'? often is done is what are called ESOPS, where employees, McPherson: I think that question needs to be addressed to in effect, buy the enterprise.Where usually, if the employees Secretary Baker.But I will only say again that Baker's com­ buy it, they have to borrow some money for working capital ments in Seoul talked about . ... overall economic policy as from someplace, or even money to rejuvenate the enter­ well as looking at the extent of the public sector that was prise .... there . . . .I'm talking not just about privatization; I'm talking Q: .. . Monies are attracted into enterprises because of the about the whole range of sort of opening up the econo­ return on investment.Investment on public enterprises like mies.... Countries that have 'been most successful in gen­ the infrastructure of railways or telecommunications and steel eral have been countries that have been in the most difficult mills are simply not that great.Tha t's the reason why these financial straits, countries that teally had to examine options are losing enterprises. which they just wouldn't politicallybe able to consider except McPherson: I don't really want to try to argue what-indi- for the fact that they didn't have a lot of others....

10 Economics EIR March 21, 1986 Abraham Lincoln's 'space program': the national railroad system by Anton Chaitkin

If it were useful to select one person as the central figure in is that they have taken the philosophy and the accomplish­ American history. that person must be President Abraham ments of the man out of history. Lincoln. Historians have revised the Civil War into an affair of The United States of America had ended. by insurrection. geography. parties. and conflicting selfi.sh interests. rather Advised by his Secretary of State to allow the seceding por­ than an attack on civilization which civilization, represented tion to depart without interference. Lincoln instead called for by the American Union. defeated. This distinction is of more volunteers from among the loyal population. He directed the than academic importance. when treason to national interests greatest war in American history. which recreated the nation once again has nearly undisputed power in Washington. by force . Lincoln's restoration of the American (as opposed to the In the course of that war. Lincoln ordered the end of the British) system of economics, by which he revolutionized system of Black slavery . Lincoln cnded and reversed the rule world affairs, has been misrepresented, ignored, or de­ of "'Free Trade" or "Iaissez-faire :' by which the London­ nounced by historians hostile to the founding concepts of directed opponents of the American Revolution had expand­ American life. ed plantation slavery to the detriment of American industrial President Lincoln's program , aside from building · the power. world's most powerful armedforce s. included the following Lincoln stopped . for a time. the dictatorship of interna­ economic measures: tional merchant-banking interests over American economic • government organization of a railroad system reaching affairs. from the Atlantic to the PacificOcean; His breathtaking economic development program. begun • the creation of the American steel industry, virtually when the country was bankrupt. continued in effect at least overnight, by governmentdesign ; long enough after his assassination. for the United States to • launching scientificagric ulture, by methods including make itself the world's greatest industrial power. free Western land for farmers, the establishment of the Ag­ Lincoln is unquestionably the most beloved figure in riculture Department, and government promotion of a new American history . Even in the South. the section subdued by age of farmmachiner y and cheap tools; the federal armies. the popular mind affectionately prefers • recruitment of immigrants, to increase the population Lincoln over the radical Eastern financiers whose postwar as fast as possible; usurpation kept the South unindustrialized. • free higher education throughout the United States­ Since Lincoln's murder. his international enemies-the the Land Grant College system; people Lincoln called "those respectable scoundrels" -have • reestablishing national controlover banking, with cheap reasserted their power over our country. The purpose of the credit for productive purposes. founding of the United States. in the tradition of the 15th­ Until the Morgan trusts and Teddy Roosevelt reversed it century Golden Renaissance. has been lost. The very idea of a generation later, Lincoln's program controlled inflation progress is rapidly beingerased from the popular mind. amidst through constant industrial innovation, raised U.S. living feudal back-to-nature ideology. fundamentalist irrational­ standards to unprecedented heights, and was eagerly copied ism. and a nearly total political and social dictatorship of the by much of the world. bankers who promote these things. Before and after signing the PacificRail way Act on July The single most astonishing victory of Lincoln' s enemies I, 1 862, President Lincoln moved to accelerate the beginning

EIR March 21. 1986 Economics II of construction of the long dreamed-of transcontinental rail­ Abraham Lincoln was tht sprited young leader of the road. When completed in 1869, the 1 ,776 miles of new track "Long Nine" (all over six feet tall), Sangamon County's took passengers and freight across mountains and desert from representatives who went to the Illinois legislature in Decem­ Iowa to California. ber 1836. Lincoln's forces puSjhedthrough plans for the state Historians usually ascribe the creation of this railroad, to build a series of rail lines a� canals; his leadership of this which immensely strengthened the United States, to such drive was Lincoln's firstreally ;n portant political role. Twelve historical coincidences as the withdrawal from Congress of million dollars was appropriattd, three and a half million for its opponents. Abraham Lincoln's unique, lifelong personal the state-chartered Illinois Central line to be built from Gal­ identificationwi th the fightfor Westerndevelo pment, is cov­ ena in the north to Cairo in the South. ered over with contemptuous, patronizing remarks, from Money would be borrowed in U. S. and European capital Lincoln's "supporters," and charges of corruption from his markets, taking advantage of the great international excite­ "detractors. " ment over America's development prospects. New York's When President Andrew Jackson closed the Bank of the state-constructed Erie Canal,! the world's largest artificial United States, and stopped federal support to road, canal, waterway, had beencomplete d in 1825, had openedthe West and railway construction, he put the brakes on pioneer settle­ for development-and its tolls had completely recovered its ment of the West. But American nationalists, mostly mem­ cost of construction by 1833! bers of Henry Clay's Whig Party, fought to continue the Lincoln also took the lead in defending and trying to "internalim provements" construction policy, with the action expand the capital of the state bank of Illinois, hoping that, of state governmentsto replace the missing federal support. for Illinois' purposes, it could take the place of the moribund State legislator Abraham Lincoln, aged 27, led this fight Bank of the United States. in Illinois. He sought to tum the mud-and-ice-bound Midwest Construction began with the Northern Cross Railroad, into the new industrial center of the continent, beginningwith projected to be built from Qu'ncy on the Mississippi River the contruction of 2,000 miles of railways and canals to eastward across Illinois to the Indiana line. The first loco­ crisscross Il1inois. motive to be put in operation in the Mississippi Valley was Here is what his first important biographers, John G. built in Paterson, New Jersey, lindwas deliveredby riverboat Nicolay and John M. Hay, say about this matter: in November 1838. The line was in operationfrom Meredosia "If Mr. Lincoln had no other claims to be remembered on the Illinois River to the new state capital of Springfieldby than his services in the Legislature of 1836-7, there would be May of 1842. little to say in his favor. Its history is one of disaster to the But British-centered opposition to this American devel­ State. Its legislation was almost wholly unwise and hurt­ opment proved too strong. In the summer of 1836, following ful. . . . In the account of errors and follies committed by up on President Jackson's closing of the U . S. Bank, the Bank the Legislature . . . he is entitled to no praise or blame be­ of England refused to refinance the loans of those British yond the rest. He shared in that sanguine epidemic of finan­ merchants and bankers who continued to accept bills of ex­ cial and industrial quackery which devastated the entire com­ change drawn by Americans. )Jythe winter of 1836-37, three munity, and voted with the best men of the country ,in favor of the weaker British commertial firms dealing with Ameri­ of schemes which appeared then like a promise of an imme­ cans became insolvent and wereforc ed to submit to the Bank diate millennium, and now seem like midsummer madness. of England's terms. A leading:private banker in London and "He entered political life in one of those eras of delusive a large Manchester bank crack�d under the pressure, and soon prosperity which so often precede great financial convul­ the entire British market for American goods and securities sions. . . . It was too much to expect of the Illinois legisla­ collapsed. British creditors caIled in their internationalloa ns. ture that it should understand that the best thing it could do In those days, the products of the Midwest were shipped to forward this prosperous tendency of things was to do down the Mississippi River to New Orleans, then to the East nothing ...." Coast and to Europe. New Or�ans was thus the commercial "Madness"? "Delusive prosperity"? In fact, as the Ency­ and banking center of the W�st, upon which the Western clopedia Britannica puts it, "The growth of manufacturing banks were financially dependent. in Illinois, largely because of the development of the state's In the spring of 1837, the Britishconcentrated their attack exceptional transportation facilities, was the most rapid and on New Orleans. Agents in New Orleans were ordered to remarkable in the industrial history of the United States. In stop all purchases for British merchants and manufacturers. 1850 the state ranked 15th; in 1870, 6th ...." With American credit now draining away to England, there Yet, virtually all historians, and Lincoln biographers, were no U.S. buyers to replace the British. New Orleans reiterate the Nicolay and Hay vituperationof Illinois' "inter­ banks wereforced to deny credit to merchants, factors, and nal improvement follies" of 1836-37. Since Nicolay and Hay banks servingthe entireMississ ippi Valley. were secretary and assistant secretary to Lincoln during his The Illinois railroad building project failed for want of Presidency, their lO-volume Lincoln biography was given credit, though the Illinois-Michigan Canal, connecting Lake almost unlimited credence. Michigan with the Mississippi River system, was completed

12 Economics EIR March 21, 1986 by the state governmentin 1848. idents William McKinley and Theodore Roosevelt, when the In 1850, the U.S. government, temporarily in the hands whole American economy was delivered to the control of of the Whigs, authorized the granting of federal land to the international British-centered banking cartels. state of Illinois for the construction of a north-south railroad J. P. Morgan and E. H. Harriman did indeed stop the with a Chicago spur: Three square miles of land were to be further development of American railroads. But Lincoln's granted for each mile of railway constructed. In February earlier success was central to the further development of the 1851, the state legislature, frightened by the earlier collapse United States, and his historical enemies have always feared of its plans for state-owned enterprise, chartered the Illinois that Americans, and others, might simply re-adopt his out- ' Central Railroad Company. The state gave the federal land look. grant as inducement to Eastern private investors to buy into In August 1859, Lincoln visited Council Bluffs , Iowa, the construction. Lincoln reluctantly supported this scheme, meeting privately there with a young railroad engineer/sur­ unavoidable under the circumstances of the lack of national veyor named Grenville Dodge-who was to be the chief sovereignty over credit. engineer of the Pacificrailroad . The rail network which Lincoln had planned and cham­ As Dodge wrote later, Lincoln asked "what I knew of the pioned was now quickly built, and eventually made Chicago country west of the Missouri River. He greatly impressed me the rail center of the continent. It was paid for with huge by the marked interest he displayed in the work in which I public giveaways . . . but would be owned by private parties! was engaged, and he expressed himselfas believing that there Turningback again to the attack on Lincoln's legislative was nothing more important before the nation at that time "follies" by his supposedly friendly biographers, we must than the building of a railroad to the PacificCoast . He ingen­ now look for a motive. It was John Hay who wrote the first iously extracted a great deal of information from me about volume, on Lincoln's first 50 years, and who steered and the countrybeyond the river, the climate, the character of the edited the other nine volumes of the Nicolay-Hay biography, soil, the resources, the rivers and the route. When the long ... covering Lincoln's remaining six years. conversation was ended, I realized that most of the things Hay's career as a traitor to the United States closely that I had been holding as secrets for my employers in the parallels that of his intimate friend and political superior, East, had been given to him without reserve .... Henry Adams. As Hay sold out the heritage and reversed the "[On] a high bluff known as Cemetery Hill, just northof accomplishments of Abraham Lincoln, with whom he had town ....He was greatly impressed with the outlook; and been identified as assistant secretary, so Henry Adams be­ the blufffrom that time has beenknown as Lincoln's Hill .... trayed the heritage of his great-grandfather and grandfather, From here he looked down upon the place, where by his the two Presidents Adams. Henry Adams was effectively the order, four years later, the terminus of the firsttrans-conti­ British pro-consul in late 19th-century Washington; Hay was nental raibvay was established." the pet of his salon. Lincoln signed the Pacific Railway Act July I, 1862, In his 1883 novel, The Bread-Winners, Hay attacked the authorizing huge governmentla nd grants to finance the con­ working people of America, and "the restless haste and hun­ struction. Two years later a second bill doubled the land ger to rise which is the source of much that is goodand most grants and sweetened the other terms. Altogether 45 million that is evil in American life." Lincoln's opposite world-view acres of land were given away, and the government laid out was expressed to a German group in Cincinnati in 1861: "I some $60 million in cash, compared to only $4 million in hold the value of life is to improve one's condition. Whatever private capital. is calculated to advance the condition of the honest, strug­ Lincon was determined to "conquer space" to the west. gling laboring man ...I am for that thing." At one point, when the project seemed dead for lack of funds, Whereas Lincoln's nationalist economics, his life and his he arbitrarily redefined the Rocky Mountains as starting in death were identified with the American Union, Hay ex­ their foothills, so that more money could be paid under for­ pressed his own sense of identity in 1898, as U.S. ambassa­ mula to the builders. It was said at the time, "Abraham's faith dor to Great Britain: "Knitted as we are to the people of Great moves mountains." Britain by a thousand ties . . . there is a sanction like that of Lincoln requested, and Congress approved, the placing religion which binds us to a sort of partnershipin the benifi­ of agents in Europeto solicit immigrants to America. Lincoln cent work of the world. . . . No man and no group of men planned to develop the Mountain West, which his railroad can prevent it .... We are bound by a tie which we did not would open up, by pouring in immigrants. On the evening of forge and which we cannot break. . . ." April 14, 1865, Lincoln wrote to Speaker of the House Hay's "definitive" biography of Lincoln, published in Schuyler Colfax, "I have very large ideas of the mineral 1886, does not even mention Lincoln's role in building the wealth of our Nation. I believe it practically inexhaustible Pacificrai lway; nor does the scant mention of PresidentLin­ . . . its development has scarcely commenced. . . . I am coln's extraordinaryeconomic measurescontain even a hint going to encourage that in every possiblewa y." Lincoln was that they had to do with a lifetime philosophy. It is no sur­ assassinated a few hours later. - prise, then, that John Hay was Secretaryof State under Pres- To be continued.

EIR March 21, 1986 Economics 13 Labor in Focus by Marianna We rtz

A strike against corporate raiding airline. In 1985, he made $33 million The TWAjiightattendan ts' walk-out could determine whether on his uns�ccessful attempts to buy safe ty or profitgoverns the airlines from now on. TWA and Frontier airlines. In 1979, he made $46 million, when Pan Am beat out his bid for National Airlines. The attendants' strike is growing hotter as the days tum into weeks and organized labor begins to realize that this is a strike for the basic right to Six thousand flight attendants em­ winning the right to purchase the air­ organize the industry. On March 12, ployed by Trans World Airlines struck line when TWA's employees sided the International Brotherhood of the airline March 7. The ostensible with his bid over that of Frank Loren­ Teamsters issued a press re lease an­ issue is the demand by TWA majority zo. Lorenzo's reputation for union­ nouncing it& support for the strike. "We stockholder and chairman, Carl leahn, busting was fixed in cement when he have always used the full force of our for a 22% cut in wages and a 23% cut purchased Continental Airlines in union's might to uphold the principles in benefits. leahn claims that, other­ 1984, put it through Chapter II, and of unionism and worker solidarity." wise, TWA will lose $ 125 million in tore up the union contract. the release stated. The Teamsters also the first quarter of this year. The at­ leahn's reputation is being forged called on the AFL-CIO to assist the tendants have offered a 17% salary in this strike. Speaking on "The flight attendants' independent union. reduction. MacNeil-Lehrer News Hour" March "These workers should not be left out leahn has demanded longer work­ II, leahn said, "we cannot give any­ in the cold." the release concluded. ing hours in the air and longer stays more. We must have those conces­ The fir� violence in the strike also away from home for the attendants. sions to exist." He announced that occurred March 12. when 16 strikers The attendants have rightfully count­ 3,000 of those attendants now on strike were arrested for blocking a TWA car­ ered that this will adversely affectpas­ would be permanently replacedby new go hangar in New York . The same senger safety and comfort. hirees, i.e.,. scabs brought in during day, a TWA mechanic. who was Talks resumed on March 12, but the strike. He also threatened to sell crossing picket lines in TWA' s main­ broke off afteronly four hours. Vicki offparts of the airline if TWA proved tenance center in Kansas City. was Frankovich, President of the Flight to be "unprofitable" as a whole. He charged with assaulting a police offi­ Attendants' Union, charged that the named TWA's reservations system and cer. The mechanics. who had been negotiating session failed because Atlantic routes as "valuable assets." honoring the attendants' picket lines. chairmanIeahn failed to show up. "I would love to see TWA flour­ were ordered back to work by a federal The real issue, however, is what ish," he said, but added that he would judge on March II, pending arbitra­ is beingdone to airlines, affecting both not let his creditors and stockholders tion of a no-strike clause in their con­ workers and passengers, by the likes down. He noted that he owns a major­ tract. of leahn. ity of TWA stock himself. and ''I'm Since TWA is no longer an airline. Carl Ieahn, like his counterparts, not going to let myself down." but a "business enterprise," in the cor­ Frank Lorenzo at Texas Air and Don­ "That is the reaction of a corporate porate raiders' sense of the term. the ald Burr at Peoples Express, is a cor­ raider, not that of a manager of an fate of its workforce and its passengers porate raider. His only purpose in airline," Frankovich, also on the news is entirely dependent on making a buying airlines is to strip them of as­ show, charged. "profit." That means cutting safety, sets and make a fast buck. Between Indeed, corporate raiding in itself working conditions, and service to the the three, most of America's airlines is a quite profitablebusin ess. Airlines bone, as People Express. New York have been bought, sold, or put through desperate to prevent forced bankrupt­ Air, and Continental have amply dem­ bankruptcy proceedings in the eight cies offer potential buyers a bonus onstrated. The "budget" airlines are years since the Carter administration simply for tendering an offer to buy. now profit-making. but the real cost­ rammed through the deregulation of Frank Lorenzo made $20 million from passenger .comfort and safety-is the industry. Eastern Airlines this year, just by never reckoned in the corporate raid­ leahn acquired TWA last year, agreeing to make a bid on the troubled ers' account books.

14 Economics EIR March 21, 1986 Agriculture by Wayn e Johnston

Washington's 'free trade' line Secretary Richard Lyng initiated tough It's a warmed-over version of the policy the British East India trade war talk .. Lyng said that the key Company tried to use to destroy America . to turning the U.S. farm sector crisis around is to expand exports: "It may take two years before we get it turned around-last year's farm bill that re­ On Marc h 18. state agricultural because he thinks the world has too duced prices of U.S. commodities was commissioners from most major farm many black. brown. and yellow peo­ the first step." We will "make deals" states humbly sat in obedience at the ple. and it would be best if many of and work very aggressively in the ex­ mid-year conference of the National them starved. port enhancement program, he said. Association of State Departments of Freeman is associated with the Lyng has been avoiding the ob­ Agriculture. and were subjected again. "New , Yalta" food trade policy, in vious question: How will U.S. farm­ as they have been in the past. to a which food flows from the West are ers be able to pay their debts and costs, barrage of "free trade" propaganda guaranteed to the Soviet Union, while and 'survive to continue producing from "guest speakers" that included at the same time. trade war is con-. food, with the low prices paid in the former Agriculture Secretary Orville ducted within the Western Alliance­ "exportenhancement" swindle. Freeman; Rep. Kika De La Garza (D­ between Argentina. France. and the As department statistics prove, the Tex .). chairman of the House Agri­ United States in wheat exports. for ex­ U.S. exported a higher volume of culture Committee; U.S. Trade Rep­ ample-in the name of "free trade." goods when world prices were high resentative Clayton Yeutter; Environ­ Computer scenarios of trade war op­ than when they were low. Developing mental Protection Administration head tions under this perspective have been countries, under low world price lev­ Lee Thomas; Assistant Agriculture done in Freeman's home base. Min­ els, are forced to export more com­ Secretary Peter Myers; Ray Lett of the neapolis. at the Hubert Humphrey In­ modities (that they desperately need USDA Intergovernmental Affairs Of­ stitute. with which Freeman is asso­ for their own consumption) to try to Ike. and Agriculture Trade and Ex­ ciated. meet the IMF's demands for debt pay­ port Policy director Jimmy Minyard. The 1985 farm bill is perhaps the ments. This, in tum, reduces their The bloodthirsty line they re­ most rabid "free trade" format ever , ability to buy needed imports because tailed-with one exception. a guest enacted into law by the U.S. Con­ of lack of income. The U.S. farm sec­ ' speaker. Mexico' s agriculture com­ gress. In a special section called "Ex­ tor is experiencing the same IMF pol­ missioner-was a warmed-over ver­ port Enhancement." which Freeman icies under the guise of "export en­ sion of the old British East India Com­ called the "only way to move ex­ hancement." However, despite state pany trade war policy of the early ports." the mechanisms are specified appeals for financial help for farmers, 1 800s. under which cheap goods were by which U.S. government-owned Lyng said: "We're not considering any dumped on countries. including the grain stocks are to be givenfor free to kind of gradual loans to farmers, nor young United States. to destroy their the cartel trade companies (Cargill. would he exercise the option for the economies. Continental. Pillsbury. Bunge. Andre, Commodity Credit Corporation to Today. "free trade" is the euphe­ Archer Daniels. and the rest), in order make special loans for the 1986 crop. mism for food cartel and International to guarantee profitsto these privileged Mexican Agricultural Minister Monetary Fund domination. Most of New Yalta companies while they offer Eduardo Pesqueira disagreed with the the agriculture policies of the last 20 discount exports. to the Soviet Union other speakers at the session , and years have been designed by the bank­ primarily. Under this , program. the voiced opposition to free trade, rightly ing circles associated with these cartel cartel pays prices to the U.S. farmer terming it the "law of the jungle." interests. and the speakers at the state that are way below his costs of pro­ Mexico had been treated unfairly in its agriculture commissioners' confer­ duction, and at the same time , breaks trade relations with the United States, ence are prominently associated with the world market. he stated. He called for a "fair trade" them. One of the main topics of discus­ or "equity of trade" policy. "Policies Most prominent is Orville Free­ sion at the conference was prospective should make us partners in progress." man, Democratic agriculture secre­ trade wars with the European Com­ Under "free trade," said Pesqueira, tary in the I 96Os. who has consistently munity. summing it up, "the beast devours the pursued food output reduction, in part That same week, new Agriculture human ."

EIR March 21. 1986 Economics 15 Busj nessBrlefs

Health The Soviet war economy build-up re­ ricultural crisis, and lllinois, with a signifi­ ceives enthusiastic support in the current is­ cant loss ot manufacturing jobs . Doctor warns against sue of Die Zeit, the Hamburg liberal weekly Ultra-monetarist Beryl Sprinkel, head of cuts in medical care run by Countess Marion Donhoff: "Moscow the Council of Economic Advisers, said only has no more reliable partner in the West than that the rise was unexpected. The White Bonn in its attempts to modernize its econ­ House called the increase an "aberration," "Just one year of reduced effort in immuniz­ omy." while the Labor Department termed it "un­ ing children will cause morbidity, mortali­ usual." ty , and increased costs of care for many "It certainly is a puzzle," said Steve years to come," Dr. Louis Cooper of New Zeller, an �conomist with Wharton Econo­ York said at a hearing of the Subcommittee U.S. Budget metric, Int. "We're kind of moving along on Health and the Environment of the U. S. sideways. n The National Association of Congress. Gramm-Rudman lay-offs Manufactdrers said the February increase Subcommittee chairman Henry A. was "simply not believable" and had to be Waxman (D-Calif.) said, "The number of to hit state employees blamed on "measurement error." children to whom the federal government The U.S. Chamber of Commerce said can provide vaccine alone has declined by The Federation of State Employees, a divi­ the figureslwere in "chaos" because of a new two-thirds.... If the President's budg�t for sion of the American Federation of Teachers procedure for estimating overall population 1987 were adopted by the Congress, we will union, declared in a press release issued designed tp reflect illegal aliens. The head be able to supply states with vaccine for March 6, "In the wake of the Gramm-Rud­ of the Labor Department's Bureau of Labor 400 ,000 fewer children than that." man-Hollings deficit reduction law and ad­ Statistics, responsible for the figures, said He continued, "If present deficit fore­ ditional plans by President Reagan to cut "the labor market weakened in February ," casts are accurate, hundreds of thousands of federal aid for many state programs, the FSE but the "tong-term impact remained un- children may be eliminated from the pro­ predicted that states will have to lay off more clear." gram. . . . As cynical as many of the than 126,000 workers or increase taxes by administration's budget proposalshave been, nearly 7 percent in order to preserve current I cannot comprehend how anyone can op­ programs and services." pose adequate funding for polio or measles President Reagan's proposed Fiscal Year Defense Industry vaccination. " 1987 budget calls for reduction in grants to the states of $14.234 billion, an II% reduc­ tion. The states that will be hardest hit, ac­ Jordan, TUrkey look cording to the FSE, include New York, The War Economy to Europe for arms Florida, California, Texas, and Pennsylva­ nia. The indefinite postponement by the U.S. Soviet Union boosts "If you live in a state dependent upon oil governme.t of$1 .9 billion worth ofmilitary for tax revenues, then you are at risk from its industrial output equipment sales to Jordan has forced that the President's proposed budget," said Al­ nation to look elsewhere for defense and bert Shanker,the presidentof the union. According to government figures released related pufchases. Jordan may buy 12 Eu­ in early March, Soviet industrial output in­ ropean airbuses for $550 million, instead of creased by 7.3% in the first two months of Boeingjets , for its commercial airline, Reu­ 1986, as comparedto the same period of last 'The Recovery' ters reports . Jordan is also negotiating an year. arms deal with France . Radio Moscow credited the new restruc­ U.S. unemployment rise Jane's.Defe nce Weekly reportedon Feb. turing of industry and the economy under 22 that thie British expect to win a $600 General Secretary Mikhail Gorbachov with largest since 1980 million contract with Jordan that will in­ the success. Key sectors, like machine­ clude Tornado aircraft, the MCV80 infantry building, gas extraction, and others, per­ The increase in civilian unemployment in fighting vehicle, and sophisticated equip­ formed well above plan targets. The oil in­ February was the worst in six years, rising 'ment to modernize Jordanian tanks. The dustryis still lagging behind, as is the output to 7.3 % from January's 6.7%. The Depart­ Jordanian� will probably receive financing of plastics and some other products . ment of Labor reported that this was the from Saudi Arabia, which is said to have Meanwhile, Soviet Deputy Prime Min­ largest rise since May 1980. Most of the insisted o. the purchase of Tornados over ister Ivan Silyayev, who is responsible for increase came fromthree states, for reasons the French Mirage . the national machine-building industry, de­ reflecting the entire array of economic The Tlirkish government, meanwhile, is manded a return to the proven methods of breakdown: Texas led the country, as a re­ negotating with Panavia, the Italian aircraft World War II for the mobilization of indus­ sult of the impact of collapsing oil prices. company that builds the Tornado aircraft, try , in an article in Izvestia in mid-March. Next were California, sufferingfrom the ag- along with Britain and West Germany, for

16 Economics EIR March 21, 1986 *' Briefly

• TANZANIAN Finance Minister the purchasc of 40 Tornado IDS strike air­ Columnists in Monterrey say that Fi­ Cleopas Msuya called for the estab­ craft-a deal worth $1 .2 billion . A team led nance Minister Jesus Silva Herzog's visit to lishment of an African Monetary Fund by Panavia managing director Hans-Joach­ Washington D.C. on March 6-7 was to tell on March 10. The official newspaper im Klapperich met Turkish Prime Minister the bankers that Mexico would not give up Uhuru quoted Msuya as saying that Turgut Ozal in Rome, and representivesfrom the possibility of declaring a moratorium. the International Monetary Fund did MBB and British Aerospace met with him Luis E. Mercado, a columnist close to not act in Africa's interests, while an in Turkey . Silva Herzog, wrote in El Universal and El African fund could do much to solve Norte on March 8 that it has been decided balance of paymentsproblems of Af­ that Mexico will declare a moratoria if the rican nations, and help to meet de­ Petroleum banks remain · inflexible. Mexico was em­ velopment needs. barrassed in 1982 when it could not pay , he Saudi Arabia wrote , and now it is angry. "because after • FIVE PERCENT of the Pana­ three years of efforts. the situation is the sets austerity budget manian population- IOO,OOO peo­ same. And if the creditors don't understand ple-went out on strike March 12, in that , they will be the ones who push the a demonstration against the Interna­ Saudi Arabia is preparing a new budget to country into a moratorium." tional Monetary Fund. Business take account of the falling world oil price, Senator Mirna Ester Hoyos de Navar­ leaders are also rejecting the IMF's Reuters wire service reports. Cuts of 10- ette , a member of the ruling PRI Party from austerity package. 15%- are expected. Yucatan , declared on Feb. 28. that Mexico Saudi oil production dropped from 10 should form a common front with Latin • VEGETABLES from Mexico million barrels per day in 1980 to 2 million America to defend its interests and to solve will claim a larger share of the U. S. last year; now production has been boosted the problems derived from the foreign debt. winter market than Florida's for the to 4 million bpd so far this year, as the price She argued that a 90-day moratorium would first time in history, the U . S. Depart­ has plummeted . Government revenues have be consistent with President de la Madrid's ment of Agriculture revealed March fal len, down 40% from the $107 billion of statement of Feb. 21. that payment of the 7. Florida production is expected to four years ago. Many infrastructure projects debt could not imply more sacrifices from drop 14% over the winter, while have been canceled or put on ice, leading to the people . Mexican sales rise 23%. Mexico is a downturn in the construction industry. shipping out vegetables that normally Subsidies on wheat production have been would be consumed domestically. cut, and prices for services of the state-run Debt utilities have been raised. Even defense is • AN IMF TEAM arrived in Israel expected to be cut back. Bank refuses further to prepare the drafting of the Fund's The Saudis have dug deeply into foreign annual report, the Jerusalem Post re­ reserves in the last two years, and are now loans to So. Africa ported on March 6. Finance Minister moving out of dollar' reserves, because of Yitzhak Modai told the group that he the dollar's falling price. Barclays Bank announced on March 5 that has no interest in helping financially it would stop all future loans to South Africa beleagued firms that do not have a and not reschedule its $1.2 billion in exist­ reasonable chance of recovery: "We ing loans, sparking fears that other banks will not deal with targets that are too Op eration Juarez may fo llow suit. costly." Many key Israeli firms, es­ The shock over the announcement is pecially those connected to the His­ Rumors of debt particularly great because Barclays has al­ tadrut labor confederation, are in most a 50% share in South Africa's biggest danger of collapse, the Post reports. moratorium in Mexico commercial bank, Barclays National Bank. Barclays' chairman, Timothy Bevan, set • THE ROCKEFELLER group is Mexican President Miguel de la Madrid was as conditions for granting new loans that dominating U . S. monetary policy, as going to declare a debt moratorium during South Africa end apartheid and give a clear evidenced by the recent synchronized his Feb . 21 speech, according to rumors indication that it can can reduce its foreign lowering of central bankinterest rate s, floatedby various columnists in Mexico City debt. London financial sources told EIR . on March 7. Barclays is also organizing a meeting on David Rockefeller's Chase Manhat­ According to one press report, "the in­ March 26 between Nigeria and its creditor tan Bank on March7 reduced its prime discretion of some PEMEX [Mexico's na­ banks, to discuss rescheduling its $23 bil­ interest rate . The next phase in the tional oil company 1 officials"preempted the lion foreign debt. Nigeria requested the process will be to push for a formal move by leaking it before the speech, re­ meeting. It derives 95% of its foreign ex­ mechanism for interest rate coordi­ sulting in, among other things, "a direct chlmge fromoil exports, and has been badly nation , the sources report. phone call from the White House ." hit by plunging crude prices.

EIR March 21, 1986 Economics 17 TIillScience & Technology

Thex-ra y laser: a new era in lasertechnology

I Have advances inJact been made? Ye s, reportCharles B. Stevens and a number ojLawrence Livermore scientists.

The x-ray laser promises a revolution in medicine and biology Los Angeles Times. the New York Times. and Science maga­ as well as in defense, opening up a new world of lasing on zine figured prominently in this dis information campaign the subatomic scale. Imagine the leap in understanding of the against the lab during late 1985,. process of life that will come from being able to watch "mov­ Ironically. as the following material by the Livermore ies" of cell life on a subatomic scale. No field of scientific staff demonstrates. much of the important scientific basisfor research will be excluded from this technological advance­ x-ray lasing was developed by Soviet scientists. It is also the from microbiology to controlled thermonuclear fusion re­ case, despite propaganda claiming that the poor Soviets are search. The coming into operation of Lawrence Livermore trailing behind the United States in this area. that the Soviet National Laboratory's powerful lO-beam Nova laser will R&D effort in x-ray lasing is at least 10 times that of the greatly enhance the development of x-ray laser technology, United States. and we can expect continuing breakthroughs. What follows are excerpts from a series of articles by For the x-ray laser as a defensive weapon, there are also Lawrence Livermore National, Laboratory scientists in the breakthroughs on the horizon. Lawrence Livermore has de­ lab's Energy and Technology {?evie»· June and November velopedlarger-scale x-ray lasers, powered by nuclear explo­ 1985 issues (UCRL-52000-85�6 and UCRL-52000-85-11). sives, as an effective defensive weapon against nuclear-tipped reviewing the history. technology, and potential of the x-ray missiles. In fact, according to many experts, the nuclear­ laser. The authors include Mordecai D. Rosen. Peter L. Ha­ pumped x-ray laser offers the most potent means of making gelstein. Dennis L. Matthews. Kenneth R. Manes. Glenn D. ballistic missiles "impotent and obsolete." More advanced Kamback. Mark J. Eckart. and Natale M. Ceglio. designs, currently being studied, are reported to have suffi­ cient firepower such that one x-ray laser module, lofted on 1) X-ray lasing one defense missile interceptor, could have the capability of For over a decade, workers within the laser community destroying entire fleetsof Soviet ICBMs. have sought to produce coherent radiation at extreme-ultra­ The vehemence of the attacks on Lawrence Livermore violet or soft-x-ray wavelength�. Although there is no general and its x-ray laser development seem to be in direct propor­ agreement on precisely what �gions of the spectrum these tion to the promise of the technology. The Soviets directly terms designate, we may regard the extreme-ultraviolet re­ and indirectly through their allies in the U.S. anti-beam­ gime as including wavelengths somewhat less than 10 nano­ defense lobby have showered the laboratory with slanders, meters (nm) and the soft-x-ray regime as those wavelengths even to the point that critics claim no advances have occurred between 10 and 2 nm; the respective energies range from 10 with the program, that the x-ray laser advocates are making to 124 electron volts (eV) and from 124 to 620 e V . it all up to make themselves look good, and that flawed Although a variety of theoretical schemes has been pro­ instrumentation was responsible for alleged advances. The posed and a number of laboratory experiments carried out,

18 Science & Technology EIR March 21, 1986 none, until recently, has resulted in confirmed x-ray lasing. In October 1984, a team of Lawrence Livermore scientists Figure 1 announced a well-diagnosed series of experiments that un­ Lasing transitions ambiguously demonstrated coherent amplification at wave­ lengths characteristic of the extreme-ultraviolet region. In addition to encouraging other experimental efforts, their suc� cess has generated considerable interest in applications of -}� this fledgling technology. All stimulated emission of coherent radiation depends on producing a population inversion in the lasant medium [see box]. In principle, the only distinctive feature of lasing at ,,1- wavelengths shorter than the visible is the higher energy of the lasing transitions required. In practice, however. such Radiative d �: a transitions have proved extremely difficultto invert. __ :lC ____...... ___ _ _ 2p (ground state) The appoach that was successfully utilized in the LLNL � _ experiments was that of electron collisional excitation. To generate a plasma. we irradiate a thin-filmtarget with optical wavelength laser light. Free electrons in the plasma collide Very simplified diagram of the electron atomic orbitals utilized with ions. exciting 2p electrons, either directly or otherwise . in generating soft-x-ray lasing ill neon-like selenium. The pre­ condition fo r lasing is that of "population-inversioll," which oc­ to the 3p state. This is followed by very fast radiative decay curs when atomic electrons are dril'en-excited-from a ground 3 out of the s state. creating a population inversion between state orbit to a high energy �Irbit. Simultaneously there must ex­ the 3s and 3p states. Stimulated emission is then initiated by ist intermediate orbits, between this high energy orbit and the (slower) spontaneous decay from a 3p to a 3s state [Figure ground state orbit, which are unpopulated-that is, no electrolls 1]. Although other collisional excitation schemes have been occupy them. In this schema, the 2p is the ground state orbit; three orbits prol'ide the excited, high energy orbits; and the proposed, the 3p-3s approach more or less dominates the 3p two 3s provide the unpopulated imermediate orbits required .fllr field, and now seems to be synonymous with this scheme. lasing. When a plasma made up of Ileon-like selenium ions and An electron collisional excitation scheme for short-wave­ fr ee electrons is brought to the requisite temperature and den­ length lasing was first published in 1972 as an extension of sity through irradiation with opti('Cll ltiser light, the fr ee elec­ optical 3p-3s neon II lasers into the extreme-ultraviolet or trons will "collisionally excite" ele.ctrons in the selenium ions to soft-x-ray regimes. The first quantitive analysis of kinetics the high energy 3p orbitals. Electromagnetic radiation emitted from the excited ions will ensure that the intermediate 3s orbit­ 3 and gain in p-3s transitions was published in 1974. als are unpopulated (radiative de('ClY). Therefore, as shown, . The earliest positive experimental results were published there exist three different, possible soft-x-ray lusing transitions in the Soviet Union in 1977. reporting 10 nanojoules (nJ) of at wavelengths of 18.3 nm, 20.9 nm, and 20.6 nm. laser light near 60 nm on the diagnostic filmand an inferred total output of one microjoule from 3p-3s transitions in cal­ cium. The investigators pumped a calcium plasma produced also candidates for short-wavelength lasing, but it is much by irradiating a target with pulses from a neodymium laser easier to produce a plasma consisting of about half neon-like having pulse lengths from 2.5 to 5 ns and a pulse energy of ions than one of half carbon-like or half nickel-like ions.) 30J. The x-ray laser targets used in the LLNL experiments We have found no reports ofthe Soviet experiment being consist of thin foils of selenium and yttrium. Theory suggests replicated elsewhere. Unfortunately. no precise wavelengths selenium as a preferred lasing medium. Given the available were reported; otherwise, it might have been possible to power and wavelength of Novette [the predecessor to the determine whether the lasing lines resulted from monopole Nova laser] as the driving laser, elements with lower atomic excitation [that is, excitation by collision with free electrons number (Z) tend to overionize , and those of higher Z have in the plasma], as one would expect from theory. or by other inadequate 2p-3p collisional excitation rates. mechanisms. Consequently. controversy continues as to When irradiated by light from the Laboratory's Novette whether lasing at short wavelengths was actually demonstrat­ laser, the x-ray laser target explodes to generate a roughly ed. cylindrical plasma that contains neon-like ions. The experi­ ment is carefully designed to produce a uniform electron 2) X-ray lasing research at LLNL density in the plasma; this allows the stimulated soft-x-ray Our work has focused almost entirely on excitation and emission to proceed straight down the long axis of the plasma decay sequences in neon-like ions-that is, ions stripped of cylinder with minimal refraction in the radial direction, there­ all but 10 electrons. (Carbon-like and nickel-like ions are by maintaining gain.

EIR March 21, 1986 Science & Technology 19 Figure 2 Predicted evolution of the density profile of the exploding foil as confirmed by interferometry

KMS LASN EX Comparison of ex peri ment simulation data and theory: -3 Probe Data: ne (cm ): LASN EX beam Initial j 0 2 X 20 Formvar zoning �)t 10 The KMS experiment (left . top) shows a • 20 diagram of the selenium fo il. which was : M.;n ...m } i!I 1 X 10 � i j ! deposited onto a layer of Formvar. The 5 X 19 10 lower part is an actual holographic inter­ 'Se 19 At probing time 2 X 10 fe rogram of the plasma that results from one-sided irradiation of the fo il by the main beam of an optical laser. The inter­ fe rogram provides a means fo r determin­ T ing the plasma density. At center is the l00� -.L LASNEX computer simulation of expected plasma densities fo llowing optical laser ir�adiation . At right is a comparison of Distance (�m) computer simulation theoretical projec­ 100 �m tions and KMS experimental data. f--i

Our design goal is to produce a plasma with: ports the heat into the denser parts of the target. For the thin

• a flatel ectron density of approximately 5 x 1020 cm - 3 foils that we have designed, the thennal-conduction wave bums through the entire target before the termination of the • a flat temperature profile laser pulse itself. The target thus becomes relatively dense • 100 j.Lm a scale length of a least and hot. It relieves this high pressure by exploding and ex­ These conditions must last at least lOOps, which, accord­ panding rapidly. The Lasnex computer code models this en­ ing to theory, will produce an appreciable density of neon­ tire sequence of physical processes. Sirlce it was introduced like ions and therefore a significant gain. These values are in the 1970s, Lasnex has been repeatedly extended, refined, motivated by simple considerations. For a system with an and tested. In particular, it has been used with great success electron density gradient of 5 x 1020 cm - 3 and a scale length in modeling high-Z, laser-generated plasmas. Thus, we have of 100 j.Lm , a 50 eV x-ray will refract about 1 00 j.Lm as it developedconsid erable confidence in its predictions. proceeds 1 cm down the gain medium, thereby just staying The second code , Xraser, was developed by P. Hagel­ within the high gain region. The transit time for the x-rays stein. It uses thehydrody namics input from Lasnex, together down the 1 cm is about 33 ps, which yields the requirement with atomic-physics data, to calculate electronic energy-level of a plasma duration of lOO ps or so. populations, resonant line transfer, and amplification. More specifically, Xraser accepts from Lasnex such quantities as Lasnex and Xraser the time-evolving temperatures of electrons and ions, densi­ In designing our x-ray laser experiments, we make exten­ ties, and flow fields. These data are then combined with sive use of two computer codes, Lasnex and Xraser. Lasnex previously calculated electron-level energies, radiative rates, is a two-dimensional hydrodynamics code that simulates in­ and collision rates to yield predictions of gain and of the teractions between the laser light and the targets (in our case, fraction of the plasma medium in various ionization states. thin foils). As we understand the processes at work, the target Once the theoretical predictions for density, temperature, and absorbs the laser energy primarily via the classical process of ionization state are fully confirmed by experiment, we will . inverse bremsstrahlung. The free electrons oscillate in a re­ be able to predict gain with greater confidence. versible manner in the laser's electric field. Upon colliding To facilitate direct comparison of the Xraser results with with an ion, the electron's oscillatory energy is converted experimental data, a postprocessing code, Spectre, is used to irreversibly into random thermal energy. In this way, the predict the brightness of an emission line in any particular plasma absorbs the laser energy. line of sight (including the effects of one-dimensional refrac­ The laser energy is absorbed only at electron densities tion). equal to or less than the critical density, which for the Novette To test the Lasnex and Xraser modeling of the exploding­ green light is 4 x 1021 cm - 3. Thermal conduction then trans- foil, x-ray laser targets, preliminary experiments were per-

20 Science & Technology EIR March 21, 1986 formed at KMS Fusion. Inc .. Ann Arbor. Michigan. in 1984. Whenever the beam from one of our high-powered lasers In these experiments. a single beam of O.53-fJ.m laser light strikes a target of any kind, a wide variety of radiation is was used to illuminate selenium thin-foil targets 1 Figure 21. produced. There is, of course, scattered laser light. There Our successful demonstration of lasing at soft-x-ray also is a broad spectrum of blackbody radiation from incan­ wavelengths was made possible. in large part . by the accu­ descent gases, as well as line radiation from resonant pro­ racy of our theoretical modeling with Lasnex and Xraser and cesses. The task of the diagnostic instruments in our x-ray by our theoretical understanding of the processes at work in laser experiments was to distinguish and characterize those short-wavelength lasing . However. there are areas of this x-rays produced by laser activity amidst all the other back­ subject that we still do not understand properly. as revealed. ground radiation. for example. by the weakness of the J = 0 to J = I lasing Ordinary laser light is directional, coherent, highly mon­ line. ochromatic, and, in many cases, pulsed. One can use an It should be noted that our successful x-ray lasing exper­ interferometer to demonstrate the coherence of ordinaryla ser iments were single-pass-that is. the stimulated emission light, but there is no similar instrumentthat works with soft­ was not further amplified by multiple reflection in a cavity x-rays. The usual instrument for measuring the wavelength oscillator, as is standard practice in optical lasers. Short of light and for demonstrating the monochromaticity of an wavelength lasers will require new technology to achieve ordinary laser is a spectrometer. However, conventional x­ resonant amplification. ray spectrometers lack the sensitivity and discrimination to Most x-ray laser experiments are being conducted. with detect the radiation from our x-ray laser experiments. There­ new laser technologies applied as they become available. The fore, to detect a directional beam of highly monochromatic data obtained will be incorporated into our modeling codes, x-rays of the appropriate energy occurring at the right time enabling us to refine and extend our theoretical understanding in the Novette laser pulse, we had to design our own high­ of short-wavelength lasing. sensitivity, time-resolving x-ray spectrometers. There are many ways to demonstrate the directionality of an ordinary 3) The diagnostics laser beam, especially when itcan be operated in a dark room. To collect evidence that the radiation detected in our x­ In our x-ray laser experiments, the flood of stray radiation ray laser experiments was indeed produced by lasing, we (inherent in all laser irradiation experiments) eliminated most developed unique diagnostic capabilities to provide tempo­ of these easy ways. Instead, we had to use duplicate spec­ rally, spatially, and directionally resolved soft-x-ray spectra. trometers, one in the beam (on axis) and one at an angle of These innovations made our x-ray laser experiments some of 77° out of it (off axis), and observe the difference in their the most thoroughly diagnosed experiments ever attempted. readings.

Figure 3 MCPIGS Micro-channel plate intensified grazing incidence spectrometer

Camera Film This Microchannel-Plate Intensified Graz­ ing-Incidence Spectrometer (MCPIGS) I'tlosphor Rowland circle opticsfiber provides time-resolved measurement of Grating Mask the spectra of plasma radiation during x­ Slit ray laser experiments. Plasma radiation MiI'lOl' andholder coming through the entrance slit strikes the �pherical reflection grating at a small angle (grazing incidence). It is then dis­ Ta rget persed according to wavelength and fo ­ cused into lines on a curved microchannel plate, which tram/orms in- . cident x-rays into avalanches

EIR March 21, 1986 Science & Technology 21 Finally, we knew that the conditions suitable for x-ray to wavelength by a concave grating set almost edge on to the laser action would occur for only a very short time during the beam (Figure 3). Novette laser pulse. It takes time (fractions of a nanosecond) With a pair of these spectrometers , one on the x-ray-Iaser to deposit enough energy to vaporize the target foil and heat target axis and one 77° off that axis to provide a measurement the vapors to a plasma. Shortly thereafter (in a few nanose­ of directionality, 'we were able to detect target radiation be­ conds at most), the plasma dissipates and cools. Only when tween 12.5 and 27 nm with 250-ps temporal resolution, high the plasma is both hot and dense , in the time between buildup spectral resolution (}.../!1}... = 1,800) , and a line-radiation de­ and dissipation , can it act like a laser. tection threshold of 6 x 10-7 Jlsr. This spectral bandwidth The shortness of the x-ray laser pulse was, actually, an enabled us to detect radiation from n = 3 to n = 3 transitions advantage in our experiments. Computer modeling of the of selenium ions in or near the neon-like state . The intensity interaction of the Novette beams with the target indicated of the x-ray lasing lines increases as the fo il length is in­ exactly when to expect this pulse. Thus, we could ignore creased. background light that reached the detectors either too early Transmission-Grating Streak Spectrometer. Another way or too late , greatly improving the signal-to-background ratio. to disperse x-rays into a spectrum is with a transmission To take advantage of this feature , we designed our instru­ grating. This makes it possible to use an ellipsoidal mirror ments to provide time-resolved data. that focuses an achromatic [wavelength-independent) image Furthermore , because laser light is stimulated emission , of the radiation source onto the focal plane [Figure 4J. The the beam intensity varies nearly exponentially with the length transmission grating disperses this image into its constituent of the laser cavity when all other parameters are held con­ chromatic components or wavelengths. To obtain time reso­ stant. lution, we added an x-ray streak camera to streak the spec­ To demonstrate this feature , our spectrometers had to be trally dispersed images in time. The re sulting instrument, able to measure the absolute intensity of the emitted x-rays known as the transmission-grating streak spectrometer over a series of experiments in which we varied the length of (TGSS), provides a two-dimensional data record of the spa­ the selenium or yttrium foil (and thereby the length of the tially and temporally re solved spectrum from the x-ray laser laser cavity) exposed to the Novette laser light. target. The TGSS produces an image of the x-ray laser output Microchannel-Plate Grazing-Incidence Spectrometer. (with an ellipsoidal mirror) that is separated horizontally into Although x-rays cannot be reflectedback toward their source its constituent wavelengths (with a transmission grating) and with surface mirrors , they can be reflected at a small angle resolved vertically in time (with a streak camera). At any when they strike a mirror at grazing incidence. This is the given wavelength, then, a time-resolved image of the source basis for our microchannel-plate grazing-incidence spec­ is provided. This is accomplished with high sensitivity as a trometer [MCPIGS], in which x-rays are dispersed according result of the large collection solid angle of the ellipsoidal

Figure 4 Transmission grating streaked spectrograph: TGSS-EM

Transmission grating (d = 2000 \)

X�ray laser source

The transmission-grating streak spec­ X -ray streak trometer (TGSS). showing the grazing-in­ cidence ellipsoidal mirror. which fo rms an image of the x-ray laser's exist aper­ ture. placed at one fo cus of the ellipse. on the entrance slit of the streak camera. Ellipsoidal A transmission grating made of narrowly mirror spaced gold bars. placed between the mirror and the streak camera. di.lperses the x-rays according to wm·elength . (See Figure 7 fo r experimental data .)

22 Science & Technology EIR March 21, 1986 mirror. The TGSS has been recognized by Research and

Development magazine as one of the top 100 industrial in­ Figure 5 ventions of 1985. Schematic of x-ray laser diagnostiC Altogether, both spectrometers represent a significantad­ vance in our ability to measure soft-x-ray spectra. Our x-ray Z /- , Ncmme _, laser experiments provided "the first absolutely incontrover­ Y / " ...... (.-th) Pitch I I '" tible evidence" ofthe production of a macroscopic, high-gain � I' / X Roll /""' X-ray amplification medium for soft x-rays. Collection of this evi­ Y I , Z, .... dence was made possible, in large part, by our innovative Coordinate \ / " nomenclature " ,/ diagnostics. --<-- � LeIi" � � � _ , '\' chenne' // \ 4) The experiments " ?;;;\ During 1984, we performed more than 100 separate ex­ , 'Alignmeni'-, I " "- ' mirror M, " I periments in which we irradiated x-ray laser targets with \' E"�I "I / x-r8y mirror '\,_ Novette's two beams [Figure 5]. The 0.53-lLm [green] laser Iftform .. . Ncmme .... light, frequency-doubled from Novette's fundamental [1.05- T _11lI0I'I gr8tilll ...... (IOUth) ILm]harmonic, was focused by a cylindrical lens to a region Diffrection .... Zero order of the foil 1.2 cm long by 0.02 cm wide. The foil exploded PhotocathocIItslit as the laser burned through it, creating a fairly uniformelec­ tron density in the plasma, which expanded into a roughly cylindrical shape. The uniform density enabled the beam of the x-ray laser to proceed straight down the long axis of the foil, staying within the high-gain region and propagatinginto Diagram of x-ray laser experiment with two-sided laser irradia­ the narrow angle of acceptance of the diagnostics. tion of selenium x-ray lasing fo il. An anvil (x-ray laser) holds Targets were irradiated in two different geometries: sin­ the selenium fo il in place with openings on both sides (lasing gle-sided, in which a segment of the foil was illuminated with channel) fo r irradiation by the two-beam Novette op tical laser only one laser beam, and double-sided, in which opposing (Novette laser beam. north and south). An alignment mirror M, permits the anvil to be located with extreme accuracy. laser beams irradiateda common target area. We used the double-sided configuration in an attempt to compensate for random nonuniformities in a single beam that length that characterizes stimulated emission. could lead to refractory inhomogeneities in the density of the With the selenium targets, we found that optimum am­ lasing medium. We found, however, that since a single beam plification occurred at a target thickness of 75 nm, a pulse exploded the foil almost symmetrically, the beam profilewas length of 450 ps or longer, and irradiancesof about 5 x 1013 sufficiently smoothto make this an acceptable, although not W/cm2 for double-sided irradiation. Because of the limited preferred, illumination scheme. range of parameter space explored, however, it is unlikely Our measurement strategy was to vary the thickness of that these values represent the ultimate performance of this the selenium foil from 75 to 300 nm and optical-laser irradi­ type ofamplifier. ance from 1.2 x 1013 to 2.5 X 1014 W/cm2 at pulse lengths We also were able to verify the strong anisotropy of of 120 to 750 ps, values that bounded our basic theoretical emission lines. Figure 6 shows both filmdata and spectral design. We searched for neon-like transitions that were representations of typical time segments monitored by the brighter and briefer than nearby spontaneous emission lines microchannel-plate grazing-incidence spectrometer. So­ and that showed strong angular anisotropy when viewed both dium-like transitions in selenium, which are not amplified, on and off axis. In addition, we measured the variation of are visible both on and offaxis, whereas the strongtransitions brightness with length, a rough index of amplification. This at 20.6 and 20.9 nm can be seen only on axis. overall approach was distinctive inasmuch as we were not Superimposed on Figure 6 is a calculated spontaneous­ forced to rely on any one criterion of lasing action. emission spectrum of neon-like transitions in a steady-state The results conclusively demonstrated, for the firsttime, plasma at an electrontemperature of 1.0 ke V and an electron amplification at short wavelengths. We observed amplifica­ density of 1021/cm3• The observed 20.6- and 20.9-nm lines, tion of at least four 3p to 3s transitions, the largest gain being recorded here at less than maximum intensity, are much detected for the J = 2 to J = I lines at wavelengths of 20.9 stronger than allof the othernonlasing, neon-like transitions, nm (59 eV) and 20.6 nm (60eV) in selenium and at 15.5 nm some of which have larger unamplified values These two (80 eV) in yttrium. The last is the shortest wavelength at lines dominated the spectrum in about 100 laser shots, and which significantamplification has ever been producedin the their intensity increased with the length of the foil targets. laboratory . By varying the length of the selenium targets, we Figure 7, a time-resolved spectrum obtained with the were able to observe the exponential growth with increasing transmission-grating streak spectrometer, demonstrates the

EIR March 21, 1986 . Science & Technology 23 maximum amplification achieved. In this single-sided shot, Z elements, whose inner electrons are more tightly bound the two laser beams were displaced to give a total amplifica­ and therefore capable of more energetic lasing transitions. It tion length of 2.2 cm. The amplificationis so intense that the is estimated that lasing at wavelengths as short as 8 nm is filtration necessary to keep the signal within the instrument's attainable with the collisional excitation scheme, although a dynamic range almost eliminates the background spectrum. price will be paid in terms of lower gain. Current targets The very intense emissions at 20.6 and 20.9 nm are a strong provide unsaturated, single-pass amplification; we plan to indication of nonequilibrium conditions in the plasma. As­ saturate gain and improve energy output by adding a resonant suming that the width of the Doppler-broadened line at 20.6 nm is 0.004 nm and given the measured source area of 200 ..... m diameter, we obtain an equivalent radiation temperature Figure 7 of between 30 and 50 keY. In contrast, the brightness tem­ perature of the sodium-like nonlasing line at 20. 1 nm is only (b) 0. 1 keY.

5) Conclusions Using an optical laser to produce a population inversion 1 in an exploding-foil plasma, we have demonstrated substan­ 500 tial amplification of spontaneous emission at soft-x-ray ps w.avelengths. Scaling the experiments to even shorter x-ray wavelengths seems straightforward up to the power limit of the driving laser. The feasibility of such scaling was dem­ T onstrated by our experiments with yttrium targets, where we

demonstrated amplification of the same J = 2 to J = I lines at 15.5 nm. Future experiments will include foils of higher-

Figure 6 Some lines are only observed in axial spectrograph

(I) Film non-linearin X meal'. Off·."is

...... 2 \ t I I On·."is (b') X 10 r------.--;------. 3 600 (b) .5

- 2.8

- 2.1 I

- 1.4 ; � - 0.7 40 I I I .J V \ OL-...v... -L'1"__... � ...����������T } -...!·'"�" ..;+'I..k.. i,.; .-...L ". ....u. 1__ ���� __ �� 140 150 ·160 170 180 190 200 210 220 230 240 250 260 270 - 209.6 J L206.3 Wa velength (AI X

The experimental measurements by the MCPIGS (see Figure 3). The TGSS measurements of the selenium x-ray laser (see Figure The lines on the film provide measures of both the wavelength 4). At the top is the actual streak camera film during the x-ray and intensity of the radiation emitted fr om the plasma. When laser experiment. The graph at the bottom shows that the selen­ the MCPIGS is aligned "off-axis" -that is, not along the line ium x-ray lasing transitions, at 206 and 209 angstroms (20.6 defined by the axis of the x-ray laser-the two x-ray lasing and 20.9 nm respectively). seen on the film are well above the transitions, 20.6 and 20.9 nm (206 and 209 angstroms) are not background thermal radiation. The streak camera film also seen. But when aligned along the x-ray laser axis, the two x-ray shows that the x-ray laser pulse duration is less than that of the lasing transitions are very strong. incident Novette optical laser pulses.

24 Science & Technology EIR March 21, 1986 cavity or by focusing the plasma-generating laser beam over Detailed knowledge of the chemical and physical prop­ a greater target length. erties of solid surfaces is essential to the control of many Now that we have indeed demonstrated lasing at soft-x­ surface processes such as catalysis, crystal growth, oxida­ ray wavelengths. we must next refine the technology and tion, corrosion, and microelectronic-device fabrication. The build a fu ller understanding of our current x-raylasing scheme. newly emerging discipline of high-resolution, time-resolved Toward this end. we have identifiedfive major tasks on which photoemission spectroscopy is helping us make great strides we will concentrate our efforts in the next year or so: in understanding the physical structure and electronic-state • quantitatively characterizing the ionization balance and distribution at the solid-state surface. However, advances in inversion kinetics in exploding-foil x-ray laser targets this fieldare currently limited by the availability of appropri­ • achieving a saturated. well-characterized x-ray ampli­ ate sources of short-wavelength, monochromatic radiation. fier at wavelengths of 20.6 and 20.9 nm (those observed with An x-ray laser with a high repetition rate, goodmode quality, the selenium targets) turnability, and very short pulses (less than 1O-12s) could • demonstrating amplification at shorter wavelengths 1 significantly expand research in this area. • developing a mUltipass x-ray laser cavity [oscilla­ Summary. Our current experimental campaign, being torf·'·� conducted at the new two-beam Nova facility, has several • illustrating significantapp lications. importantgoa ls. First, we are seeking a better understanding The new experimental campaign began in October 1985. of the physics of the x-ray laser in order to predict experi­ Our experiments are the first in a facility designed to accom­ mental results more accurately and perhaps to suggest new modate two of the ten laser beams on the Laboratory's pow­ techniques for producing population inversions. A major ef­ erful new Nova laser. (The target chamber is the same used fort also will be focused on optimizing the gain and efficiency in the original soft-x-ray experiments conducted with the of our selenium and yttrium targets. We hope to saturate Novette laser. ) To diagnose these experiments. we will field output at about 10 MW per emission line. We will also an improved array of instruments. Altogether. this expanded conduct experiments designed to demonstrate the feasibility effort promises to make important contributions to our un­ of a multipass amplifier consisting of multilayer mirrors. derstanding of the physics of x-ray lasers. Another important goal will be to demonstrate lasing at even Potential Applications. In mid-February of this year. about shorter wavelengths using targets of higher atomic number. three dozen scientists in a variety of disciplines ranging from Finally, we will explore a variety of applications of the soft­ microbiology to solid-state physics gathered for three days at x-ray laser, including measurements of the coherence and the Asilomar Conference Center in Monterey. California to divergence of the laser beam, the generation of holographic discuss potential applications of the x-ray laser. This inter­ images, x-ray microscopy, and the susceptibility of various national meeting sponsored and organized by Lawrence Liv­ materials to x-ray damage. As the technology develops in ermore National Laboratory. provided a unique forum for the directions more adapted to the needs of specificappl ications, cross-disciplinary exchange of ideas and opinions about how it can also be expected to stimulate new approaches to current ' best to exploit the fledgling x-ray laser technology. Not sur­ and future research problems. prisingly, the occasion produced valuable suggestions, new insights, and some lively debate. By the close, several lines References for further reading of promising directions for future work had emerged. This is a representative selection o/p apers/rom the scientific For example. the technology may have a role in the mi­ literature on x-ray lasers and the Livermore experiments. croscopy of biological structures, especially if the operating I) L. I. Gudzenko and t. A. Shelepin SOy. Phys.-JEPT 18:998 (1964). wavelength can be shortened below 4.4 nm. The dramatic 2i D. L. Matthews et aI. Appl. Phys . Lett. 45:226 (1984). differences between x-ray and electron micrographs of bio­ 3) A. V. Vinogradov, I. I. Sobel'man . and E. A. Yukov. SOy. J. Quant. Elec. 5:59 (1975). logical structures clearly indicate that a mature technology of 4) P. L. Hagelstein. Ph.D. Thesis. Lawrence LivennoreNational lab­ x-ray microscopy may provide a whole new perspective to oratory. Rept. UCRb-53 100(1 98 1). the field. Current electron-microscopy techniques re quire 5) __• Plasma Phys. 25: 1 345 (1984). 6) __• paper presented at Sixth Inti. Workshop : Laser Interaction sectioning specimens or treating them with metallic fixitives. and Related Plasma Phenomena. Monterey. Calif. 1982; published as Law­ Holographic imaging at x-ray wavelengths, in contrast. could rence LivennoreNational Laboratory Rept. UCRL-87 122 (1982). record in vitro structures with high resolution in three dimen­ 7) D. Mathews et a!. in Laser Techniques in the Extreme Ultraviolet. Amer. Inst. Phys. Proc. 1 19, S. E. Harris and T. P. Lucatorto. Eds. (1984). sions. (Although the intensity of the x-radiation would kill 8) A. V. Vinogradov and I. I. Soherman. Proc. lntl. Conf. lnner Sheli tissue , recording would be fast enough to preserve an image.) Ionization Phenomena and Future Applications. R. W. Fink et al. . Eds., In rnicromechanics, a well-characterized source of co­ United States Atomic Energy Commission Rept. Conf. 720404. 2364 (1973); Sov. Phys. -JETP 36: 115 (1973). herent x-rays could be used to produce high-resolution dif­ 9) M. D. Rosen et al. Phvs. Rev. Lett. 54: 106(19 85); D. L. Matthews fraction gratings with periodic spacings significantly smaller et al. Phys. Rev. Lett. 54: 1 io (1985). The experiments were briefly de­ than those now attainable. Coherent sources of soft x-rays scribed in the January 1985 Energy and Technology Review (UCRL-52000- 85- 1). p. 22. can also prove valuable for applications that depend on inter­ 10) A. G. Molchanov. SOy. Phys .-Usp . 15: 124 (1972). ference effects. II) A. A Ilyukhin et al. JETP Lett. 25:536 (1977).

EIR March 21, 1986 Science & Technology 25 IIrnFeature

State Department plots with Nazis to destroy Panama

by Val erie Rush

In our March 7 issue, EIR charged that Sen. Jesse H�lms (R-N.C.) and the U.S. State Department had joined forces to bring to power a Nazi-run opposition move­ ment in Panama, in the name of "democracy" and "human rights." We presented preliminary evidence, then in hand, that Arnulfo Arias Madrid, leader of the State Department-backed "democratic opposition" in Panama, was a bona-fide Nazi who had conspired with the Hitler regime to foment a Nazi movement in Ibero­ America against the United States. Since our initial report, the plot has advanced on several fronts, making im­ mediate action by U.S. and Ibero-American patriots more vital than ever. For those of our elected representatives who claim they "didn't know," we point out that the full story on Arias's Nazi history-from his 1937 meeting with Hitler, from which he reportedly emerged "a Nazi cOJ!lvert body and soul," to his post-presidency travels throughout Ibero-America to fomentanti -American revo­ lutions-has been sitting all this time in the National Archives in Washington, D.C., from which we have drawn our documentation. While the U.S. government's files-despite the dil>appearance of key missing documents-provide incontrovertible evidence of Arjas's Nazi commitment, he is but one of a circle of fascists with whom Jesse Helms and the State Department have made common cause, in their zeal to overthrow the governmentof Panama: • Nicolas Ardito Barletta, former World Bank vice-president and ex-Presi­ dent of Panama, is the son of a Nazi. Ardito Barlettathe father was the chief of Arias's secret police force, which was reportedly deployed to massacre resident Jewish families in Panama; he was linked to the same drugs-and-gambling mob which ran Panama with Arias; and, as mayor of Panama, he protected Japanese and German spies who were conducting surveillance of the Panama Canal, prep­ aratory to planned war-time bombing raids on that �trategic chokepoint of the Western Hemisphere. Ardito Barletta the son, of course, drafted and pushed through the banking legislation which turned Panama into a "hot money" haven of the internationalnar cotics mafia. • Hugo Spadafora, the dead terroristwhom Helms and the State Department have hailed as an "insistent critic" of the "dictatorship" in Panama, was not only

26 Feature EIR March 21, 1986 The National Democratic Policy Committee demonstrates outside Senator Helms's hearings. which brought in a parade of terrorist sympathizers and liberal economists to demand that the United States destabilize Panama. like it did the Philippines.

NSIPS/Lco Scanlon

financed and armed by Hitler-admirer Muammar Qaddafi of Fund dictatorship on the country . The hypocrisy of this attack Libya. for the overthrow of several governments. among on Noriega is especially unconscionable given whom Helms them that of Guatemala. but was hired by Arias himself in and the State Department have chosen to embrace in their 1969 to wage terrorist warfare against the Torrijos govern­ quest for "a democratic solution" for Panama. ment in Panama. The second destabilization front is to use economic chaos The efforts of the State Department to overthrow the to drive a population still standing behind President Eric Panama government are now being pressed on two fronts. Delvalle straight into the arms of the Nazis. With Panama First. the U.S. Senate hearings on Panama. sponsored by constitutionally prohibited from printing its own currency, Senator Helms. began Marc h 10 with the announcement that (the U.S. dollar is legal tender in Panama), the Delvalle this was just the fi rst in a series of hearings to take up the government has been forced to accept World Bank austerity "problem of re storing stability" in Panama. Helms added that conditionalities. designed to destroy industry and break the U.S. administration witnesses. including Assistant Secretary labor movement and turn Panama into a Hong Kong-styled of State Elliott Abrams. spokesmen for the Drug Enforce­ sweat shop. along the lines of the recommendations of Henry ment Administration. and members of the Bureau of Human Kissinger's commission on Central America. Rights and Humanitarian Affairs . have agreed to testify at But the population is not turning to theNazi-I ed opposi­

hearings planned for late March or early April. tion . A nationwide strike to protest the World Bank's black­ Using the halls of the U.S. Senate as their arena. Pana­ mail is underway, gathering strength with ,each new day. In manian "opposition" witnesses called for a terrorist insurgen­ an unprecedented development, the nation's industrialists, cy against the government of Panama. a strategically key ally with as much to lose as labor from the austerity regimen of the United States, and for the imposition of the old Nazi being rammed down their throats, have joined forces with Arias as President of that country . Equally dangerous as a the trade unions to send a message to Delvalle that acquies­ President Arnulfo Arias. would be Arnulfo's vice presiden­ cence to the World Bank will not be tolerated. tial candidate in the last elections (and nephew !). Ricardo With the example of the Philippines still fresh in its mem­ Arias Calderon. head of the Christian Democracy and prom­ ory . the Panamanian government has few options to choose inent opposition leader. from. Should it accede to the World Bank's austerity dictates, It became clear throughout the Helms hearings that the there will be social explosions and Panama will become un­ next phase of the destabilization of Panama will be run under governable. Its other choice is to join the strategy of Peruvian ' \ the hypocritical cover of fighting "narco-terrorism." with President Alan Garcfa, when he arrives in Panama March 31 , special targeting of Panamanian Defense Forces head Gen . and move ahead with the Ibero-American debtors' summit Manuel Noriega. for allegedly forcing Barletta from power meeting to discuss creating a new international economic - when the President tried to impose an International Monetary order.

EIR March 21, 1986 Feature 27 from it survives in an Office Naval Intelligence report From qr theArchives , (R-473-42, index guide 104-3�): I Enrique Garcia de Pareqes, an employee of the Compania Internacionalde S�guros, recently returned from a business trip to Chile. states that he had a long interview with Arnulfo Ari�s, deposed president of Panama, in which Arias stateU to him that the German Arnulfo Arias: Ambassador in Santiago, Baron von Schon, had pro­ posed to him that he go to B�r1in, take with him such the record of a Nazi elements of his previous administration in Panama as would consent to go, and set up there the Panamanian The fo llowing is drawn fr om documents available in the Na­ Government in exile. That the German Ambassador tional Archives in Washington, D.C. Emphasis and Spanish in Santiago had one millioni pesos available for the accents have been added by EIR. The numbers fo llowing expenses of this movement. That he had not decided each excerpt refe r to the National Archives (NA ) code under to accept as he still had high hopes of returning to which each document isfiled. power in Panama shortly. (Oct. 16, 1941, NA 702. 1921112) 'Heil Hitler!' During Arias's presidency, he was indicted by his own The most explicit indictment of Arias as a Nazi came out family members, brother Harmodio and nephew Roberto, of his own mouth, according to a "strictly confidential"report for being a Nazi sympathizer, as identified in the following sent to the U.S. State Departmentby then U.S. Ambassador letter from the U.S. embassy in Panama to U.S. Undersec­ to Chile Claude G. Bowers, entitled "Subversive Activities retary of State Sumner Welles, and in a State Department and Statements of Arnulfo Arias," in which an informant memorandum: holds "an interesting and significant interview with Arnulfo Arias, former president of Panama, in the latter's hotel room This morning Harmodio Arias came to see me and on September 7, 1942." we had a long talk ....He stated in the first place that- what he had to say was extremely embarrassing The agent above mentioned entered Dr. Arias's to him, as it had to do with his brother ....He finally room with the Nazi salute and the greeting "Heil Hit­ said to me as clearly as any one could, without using ler!" which was answered in kind by the Panamani­ the definite words I am employing, that he felt that ·an. . . . Arnulfo Arias started off by attacking the Arnulfo was in some way committed to the Nazis and "imperialistic" policy of the United States in Panama was definitely playing their game ....He said that and the "false and hypocritical" democracy of the if the United States enters the war he fears that we United States ....Questioned specifically �s to his shall have a most difficult situation here .... opinion concerningthe outcome of the war, Dr. Arias (July 7, 1941, NA 819.00/2 134 112) stated that formerly he had believed in the possibility Roberto Arias, the neph�w of the President of of Allied Victory, but that during recent months, the Panama, came in to see me day before yesterday . . . triumphs of Hitler in Russia and North Africa had said that his uncle's paper La Tribuna is decidedly changed the international situation, that Russia would pro-Nazi ....[R oberto] Arias says that his uncle has be completely "liquidated" during the winter, and that sent police into all of the shbps who advertise with with the forthcoming Axis victory the day was arriving their paper and has made inventories of their stocks when "we shall be free". . . . with the warningthat they wouildbe unable to replenish Finally, when questioned as to whether he was a their stocks if their sympathies did not change .... partisan of Nazism, Arias said that above everything Arias says that the Germans have convinced his uncle he was a Panamanian, but that if the Nazis should that the canal should be international and not belong cooperate in "our emancipation" (presumably of Pan­ to any country. . . . ama and other Latin American states), he would be (Feb. 8, 1984, NA 819.00/2-841) their fervent admirer. (Sept. 12, 1942, NA 819.001. Arias, Arnulfo/3 11) Arnulfo Arias met with Adolf Hitler in 1937, and the following confidential memorandum was prepared by the One year after Arias was deposedfrom power, the U.S. U.S. Office of Military Intelligence (G-2): embassy in Panama sent a dispatch (No. 3126) to the State Department, which contained a detailed intelligence eval­ [Arias's] minister to Germany, Francisco VUlal­ uation of Arias's pro-Nazi activities. The disp�tch itself is az, obtained for him an audience with Adolf Hitler in now missing from the State Department archives, yet a quote Berlin in 1937. Villalaz has much influence in Ber-

28 Feature EIR March 21, 1986 in Dr. Arias, that the late U.S. Ambassador to Ger­ many, Mr. Dodd, could not help noticing what was "A t Berlin, Dr. Arias was treated as going on. His written commentary on this intrigue of an important and irifluential the Nazis was a masterpiece of observation. The pre­ personality and received by Hitler, dictions therein contained, based on the Ambassador's scrutiny, have been to date amazingly secret: When Goering, Goebbels, Himmler and Arnulfo left Germany he visited Italy and with German others theof most poweiful and recommendations was received by the Fascist with strategically placed open arms and given an opportunity to see the inside workings of the Fascist governmentund er the personal Nazis ....Amulf o became a Nazi guidance of AchiUe Staraci. Arnulfo became a Nazi convert, body and soul, and on convert, body and soul, and on returningto Panama, retuming to Pa nama, established a established a Nazi political party, National Revolu­ tionary Party. Nazi political party, National Revolutionary Party. " A report of the State Department's Division of the Amer­ ican Republics, titled "Anti-American and Pro-Axis Activ­ ities of Arnulfo Arias," dated Nov. 2, 1943 includes the . following: lin ....Pr esident Arnulfo Arias appointed two pro­ totalitarians as his secretaries-Dr. Cristobal Rod­ To an informant of the Embassy [of the United riguez, General Secretary, and Antonio Isaza Aguil­ States in Santiago, Chile], Arias stated that in his era, private secretary . Both have been rather outspo­ opinion the true German patriot is incarnate in Hitler. ken in their totalitarian views, and they were chosen, He expressed complete faith in the triumph of Nazism. it is said, precisely for this reason ....In 1936 [Isaza] Ambassador Bowers reported that there was evidence was appointed Consul General to Hamburg , occupying of the possibility of Japanese funds being used to assist this post until this year. In Germany he engaged in Arias in propaganda efforts and explained that there illegal speculation of currency using his diplomatic was no doubt that Arias was in Santiago working as immunity to advantage. He has direct contact with the an agent for the enemy. German Legation and is very pro-Nazi. Arias surrounded himself with Nazi sympathizers, as (October 1941, NA 819.00/2 106) demonstrated by the following descriptions of his closest Two months later, "an informant" to the FBI filed the friends and cabinet members, taken from a biographical memorandum which fo llows here: sketch of the President's most intimate circle of friends, prepared by the U.S. embassy in Panama: Dr. Villalas carefully made inquiries in Panama as to local conditions there , and by a stroke of luck Julio Ernesto Heurtemate is a loud-mouthed found out that the brother of the then President of young man, of French descent, blatantly pro-Nazi and Panama was suffering from a bad case of dictator­ anti-American. He studied in Paris and later at the worship. It was no problem to the Nazis, and lost no Wharton School of Finance, University of Pennsyl­ time reaching this man, Dr. Arnulfo Arias, a young vania. For months [his wife] has been under suspicion Panama City physician and only brother of Harmodio as being an agent for the Nazis. . . . Arias, then serving the presidential term 1932-36, and Manuel Mama Valdes. He is a close personal bringing young Dr. Arias to Berlin. friend of President Arnulfo Arias . . . [and] is openly At Berlin, Dr. Arnulfo Arias was treated as an pro-Nazi and convinced that Germany will win the important and influential personality and received by war .... Hitler, Goering, Goebbels, Himmler and others of Jose "Pepe" Ehrman has been closely associated the most powerful and strategically placed Nazis. This with Arnulfo Arias for the past ten years. For several visit of Dr. Arias was solemnly stated to have "no years previous to 1940, he was Secretary of the Pan­ political significance," but in fact it was a typical Nazi amanian Legation in Paris, and was also secretary to job. Dr. Arias was under the sympathetic and cal­ Arnulfo when he was Minister to Italy. It is said that culating tutelage of Nazi specialists and with typical he often accompanied Arnulfo on his visits to Ger­ German thoroughness, he was given a short but in­ many, and there became imbued with Nazi ideas .... tensive course in Nazi public administration and party Colonel Olmedo Fabrega is the Aide-de-Camp organization. In these matters the intermediary be­ and a close personal friend of President Arias. He is tween him and his Nazi hosts and patrons was Fran­ an enthusiastic supporter of the Axis Powers. cisco Villalas. So extraordinary was the interest shown (May 31, 1941, NA 819.00/2133)

EIR March 21, 1986 Feature 29 -"- -.-� ---

Ani,. ot t1o... . UUoa. La , ..�.

Fro. f'OIport 4ated Aprll 1&, 19t1 troa ..lc an 1011 or •• I.tI.• • .,. 1.aUDo.��Dt ,,-, . ,.ot IUI;;t.L�

In 1941,the State Department branded Arnu(fo Arias (right) a Nazi: but today, they have made him their candidate to overthrow the government of Panama.

In a confidential assessment of the Arias government by Arias receives mail from Manuel Olamedo, a high the military intelligence division of the War Department official of Transocean in Buenos Aires, who was ex­ General Staff, his "pro-Axis" and "anti-American" sym­ pelled from Chile in August of this year. pathies are noted repeatedly: In April 1942. Philip W. Bonsai of the U.S. embassy The only national organization closely patterned in Caracas wrote a memorandum to the Secretary of State, along the lines of Nazism is the National Revolution­ noting: ary Party of which Dr. Arnulfo Arias, President of The Department has learned from unofficial sources the Republic, is the leader. ...The present policy that Arias left Mexico with definite plans for entering of the Arias administration appears to be one of support Argentina, where he hopes to affiliate himself with of the ideology of the Axis powers .... Axis sympathizers and to set himself up as the symbol Throughout his period in exile in the early and middle of "American aggression." 1940s, Arias traveled extensively around the continent, al­ ways working in close coordination with known Nazi agents Links to drugs and gambling and attempting to forge a Nazi support apparatus wherever A U.S. Military Intelligence report of Feb. 11, 1941; he went. On Oct. to, 1942, U.S. Ambassador to Chile details President Arias's interest in establishing a gambling Bowers sent the following "strictly confidential" airgram to haven in Panama, a project for which he anticipated substan­ the Secretary of State: tial personal gain: The Panamanian Minister has received the follow­ President Arias apparently concentrated his activ­ ing report from a confidential source considered by ities during January on the distribution of gambling him to be most reliable: On September 22 Arnulfo concessions in which he is reported to have a large Arias had a long conversation with Guillermo Iz­ interest. He made several trips to the interior, allegedly quierdo Araya and Roberto Vega Blanlot, both ac­ to investigate the agricultural possibilities of certain tive officialsof the Chilean Nazi party. Furthermore, provinces. However, the main object of these visits,

30 Feature EIR March 21, 1986 it has been learned, was to lay the foundation for the , The District Attorney in his petition mentioned in­ construction of tourist hotels I to contain gambling stances of Chinese merchants being forced to sell out concessions] at different points of the interior. for a song or else face arbitrary imprisonment. Barletta (Feb. 11, 1941, NA 819'()0/2 1 20) is specifically being accused of collusion in these ex­ tortions, an offense bearing a penalty of from one to On Feb. I, 1943, U.S. Navy Intelligence in Panama seven years in prison and a perpetual ban from holding sent an urgent, "confidential" report to the Officeof Strategic public office. Services on the an·ival of Arias intimate Dr. Jose Rafael (March 21, 1942, aNI report serial 86-42, mon­ Wendehake to Panama from Venezuela, where he had been ograph 102-2(0) residing, together with Arias:

Dr. Jose Rafael Wendehake ...during the Ar­ 'Unmistakably anti-American' nulfo Arias regime, not only was the beneficiary of On Feb. II, 1942, J. Edgar Hoover, head of the Federal extensive gambling concessions granted by the then Bureau of Investigation, sent a "personal and confidential" President, but a re liable informant has stated that he letter "by special messenger" to Col. William J. Donovan, also was protected in his illicit narcotics sales. This head of the ass, in which he stated: office... bel ieves that Wendehake's presence in Pan­ ama constitutes a definite threat to the security of the Information from a . . . reliable source has been United States. Wendehake is the logical person to received to the effect that Arnulfo Arias arrived at solidify the ranks of those disgruntled racketeers with Havana, Cuba ... [and] that Arias has been asso­ whom he was associated under the Arias regime. ciating in the past with a Japanese espionage agent by (aSS Confidential , c.i.d. 28776) the name of Dr. George Osawa. Dr. Osawa is alleged Another Arias intimate during his presidency, according to have stated that Arnulfo Arias, during his visit to to a U.S. embassy in Panama report of May 1941. was: Havana, upon the occasion of his being deposed as President of the Republic of Panama, visited the above Julio Lopez Masegosa ... a close personal friend city for the purpose of meeting with Rafael Trujillo, of President Arnulfo Arias and a member of the "inner Dictator and President-elect of the Dominican Re­ circle." He is ...prom inent in the gambling rackets, public, and Fulgencio Batista, President of Cuba, from which it is said he receives cuts and concessions. with a preconceived plan of effecting a bloc between Masegosa is a first class racketeer. ... the Dominican Republic and against the United States. (May 31, 1941 NA 819.(0/2 133) The exact nature of this bloc or coalition has not been Arias's brother Harmodio identified the links between determined. the Arias presidency and the criminal underworld, in an On July 22, 1942, the American ambassador to Vene­ interview with the U.S. embassy in Panama, described in zuela, Corrigan, sent the following confidential telegram to a letter to then U.S. Undersecretary of State Sumner Welles. the State Department: Summing up Harmodio's viewpoint, the letter stated: Arnulfo Arias, who is unmistakably anti-Ameri­ Anything in the nature of an apparent victory for can, left Caracas at the end of April. He was here for this Government would make the gangsters and rack­ eleven weeks and when he lefthe had in his possesion eteers who are running it so sure of themselves that a visa which had been issued under the direction of they would be doubly difficult for us to deal with in the President of Brazil, entitling him to permanent the future . residence in that country. Because of his anti-Amer­ (July 7, 1941, NA 819.00/2 134 112) ican sympathies he would possibly be more dangerous in those countrie� which still have relations with the An Office of Naval Intelligence report of March 21, Axis powers. His contacts with Panama would be 1942, contains details of the illegal activities of Arias's easier from any country along the west coast. crony, Nicolas Ardito Barletta, the former mayor of Pan­ ama City, former head of Panama City police force, and A Military Intelligence report from the War Department father of the recent President of Panama, Nicolas Ardito General Staff wrote in July 1941: Barletta: President Arias devoted much of his time and en­ Nicolas Ardito Barletta and others of his former ergy during his visit to Costa Rica to an endeavor to compatriots in the mayoralty of Panama City finally sell the Costa Rican people on his program of advanced indicted for abuse of office ...their activities as such nationalism, the principal point of which, it became constituted part of the reign of terror for alien mer­ apparent to American residents there, is hatred of the chants, which existed while Barletta was in office. people of the United States.

EIR March 21, 1986 Feature 31 On Sept. 12, 1942, U.S. Ambassador to Chile Bowers many. Highlights of Arias's 1940 presidential campaign in­ sent a report on Arias's "Subversive Activities and State­ cluded the recommended "purification of the race" through ments" to the Secretary of State , reporting on the exiled sterilization of Blacks and prohibitions on immigration of Arias's conversation with an informant: Blacks, Orientals, and Jews into Panama. In his inaugural address, Arias declared: Arnulfo Arias started off by attacking the "im­ The words democracy, liberty, liberalism, are so perialistic" policy of the United States in Panama and bandied about that they have' no meaning ....The the "false and hypocritical" democracy of the United demagogic concept that all men are free and equal is States. He said that the Good Neighbor Policy was biologically without foundation. only a weapon used to strangle the smaller Latin Amer­ ican nations economically. At some length he devel­ A State Department memorandum just before Arias's oped the theme that the nations of Latin America must overthrow, notes that his government was planning to issue emancipate themselves from United States influence a decree clarifying bans on immigration against certain races and "control," and that after the imminent German and nationalities: victory, liberators such as O'Higgins, San Martin and Bolivar will arise to fight the "hypocritical policy of The Decree-Law serves tQ confirm earlier reports the Good Neighbor". . . . When asked whether he that President Arias planned �o bar all the Jews from considered it desirable at this time to attempt a move­ business in Panama. The proqtulgation of the Decree­ ment for the emancipation of Panama from the North Law may be expected to encourage a panic similar to Americans, the ex-President of Panama replied that that in which the Chinese were persecuted early this such a movement must await the time when "our en­ year .... There will be riqh booty for the Arias emy" is debilitated and when other nations are in a Administration if the persecutipnof the Jews is started. position to help Panama. Thereupon he launched into (Sept . 29, 1941, NA 819.55J/4) a long tirade in favor of the internationalization of the Panama Canal. Repeatedreports of massacres of Jewish families resident (Sept. 12, 1942, NA 819.001Arias , Arnulfo/3 11) in Panama during the Arias administration have surfaced, In his Oct. I, 1940 inaugural speech, Arias openlythreat­ the details of which are as yet unavailable. In the book ened the United States: Holocaust in Panama, by Aristides Ivan Hassan R., one of the 12 Panamanian police members ofthe elite death squad As Panama has ceded its territory to the United formed under the Arias governmentreportedly confessed to States to construct the Canal, Panama also can cede the mass execution of 13 German Jewish families in the territory to the Germany of Adolf Hitler, so that they region of Cotito, province of C�iriqui, where Arias today can construct here what they wish and can help us owns vast tracts of land. The remains of what are believed against Imperialism. to be 18 bodies, were found in Cqtito in a mass grave. Skulls with bullet holes and German-made dentures were unearthed. The next day, in a radio address to the Panamanian Although no scandal was ever raised at the time about nation, Arias repeated: massacres of Jewish familes in Panama, other mass murders The United States knows that . . . the Republic by Arias's police were reported; According to a War De­ of Panama may be small and weak and lack material partment General Staff report of July 14, 1941: resources for the defense of its rights, but on the other hand it could, in case of reprisal, affe ct the high On July 3, 1941, the Panama police massacred 12 interests of the United States by granting concessions of the 23 Swiss and German agricultural-religious col­ in its territoryto other powerful countries which would onists at Cotito, Province of Ghiriqui, about 20 miles have material fo rce to defe nd it. [Emphasis by U.S. south of the Costa Rican border. Three of the colo­ Ambassador William Dawson. Panama, Oct. 5, 1940. n�sts-an 82-year-old man and two boys-escaped Airmail letter No. 681] unhurt. The remainder, six wQmen and two children, (Oct. 2, 1940. NA 819.001 Arias, Amulfo/49) were wounded by the fire of the police, and four of them are, still in grave condition in the hospital at A racist and anti-Semite David. In 1933, as health minister in his brother Harmodio's The general opinion prevails in all circles that the government, Arnulfo Ariaspresented legisla tion for the ster­ attack on these people was hardly justified and it has ilization of Blacks and for euthanasia of the elderly. This was created indignation in all quarters . the same year that Hitler imposed mass sterilization in Ger- (July 14, 1941, NA 819.00/2136)

32 Feature EIR March 21, 1986 us in this country who felt that Panama, physically, was too The Helms Hearings small a country to bear the burden of responsibility for a strategic waterway coveted by the major military and eco­ nomic powers of the world. But there was an implicit agree­ ment in the treaties that the United States would work to encourage stability and development to Panama during the transition period so that Panama would be as strong as pos­ Te rrorists, bankers sible in the year 2000. So far Panama has not testifyvs. Panama achieved either political stability or economic development. De­ At Sen. Jesse Helms's initiative, terrorist-linked witnesses spite the many additional mil­ threatened violence against the Panama Canal, before official lions of dollars which the treaties hearings of the Subcommittee on Western Hemisphere Af­ have brought to Panama, the Re­ fairs of the Senate Foreign Relations Committee. The March public faces an economic crisis. 10 hearings mark a day of infamy for the senator, who was Unemployment has reached cat­ once looked to as a bastion of patriotism in the Senate. astrophic proportions. And its While Panamanian opposition witnesses promised vio­ political structure has almost lence, former U.S. special assistant on National Security ceased to operate effectively. In Affairs, Norman Bailey, demanded that the U.S. government the past 45 months, Panama has expend its efforts to returnto power a man who dedicated his had fivePr esidents, three of whom were removed by pressure career to opening the doors of Panama to drug-money banks, from elements in the military. The brutalmurder of Dr. Hugo Nicolas Ardito Barletta, a former vice-president of the World Spadafora last September has not been solved. Panama's free Bank . For \0 years, Barletta ran Panama's "off-shore" bank­ press, with traditions stretching back to the founding of the ing center, bragging that under his direction, Panama guar­ Republic, feels increasing pressure and intimidation .... anteed "more secrecy laws than Switzerland." The brutality of the murder of Dr. Spadafora, an insistent Bailey seemed to have a grudge against Panamanian De­ critic of powerful elements in Panama, is without precedent. fense Force Chief Gen. Manuel Noriega, for allegedly forc­ It has served as a catalyst to action for many, inside of Panama ing Ardito Barletta to resign from the presidency last Septem­ and without, who believe that it marks the end of Panama's ber. He departed from his prepared testimony to remark that independence and signifiesthe hidden takeover ofthe country it was not true that he was being paid to destabilize the by illegitimate and anti-democratic forces. We have called government of Panama, as had been published in the Pana­ these hearings, therefore , to probe the truth of the assertion, manian press. Although he did not say so, Bailey was refer­ and to do what we properly can to help Panamanians recover ring to a story written by EI R, which reported that Barletta their dignity, freedom, and stability . had hired Bailey's investment advisory company, Colby, Recent events in the Philippines illustrate graphically the Bailey, Werner & Associates, to represent him in the United instability that results for a society that is not open and ·dy­ States! �amic. I might add, also, that the situation in Mexico is a The testimonies which we excerpt here, from Bailey and grave security risk to the United States. Within the next four other witnesses, all assume that Panama has no choice but to to six weeks, this Subcommittee will also examine the cor­ accept the dict�tes of the International Monetary Fund and ruption and power structure of Mexico in the context of World Bank , which demand that "foreign investors" be assisting reform. . . . granted even more freedom from scrutiny than they now enjoy. Here Bailey made no claim that his testimony was Testimony of Norman A. Bailey, fo rmer U.S. sp ecial assis­ disinterested; Colby, Bailey, Werner & Associates openly tant on National SecurityAff airs: admit that they intend to become "the firsttrue investment bank in Washington," and have former Wall Street bankers . . . On September 27, 1985, Panama suffered the first re­ an9t IMF officialson their board. versal of the process of democratization since President Rea­ gan assumed the presidency. President Nicolas Ardito Bar­ Statement by Sen . Jesse Helms to the U.S. Senate Committee letta was forced out of office as a direct result of the new on Foreign Relations Subcommittee on Western Hemisphere cycle of state-supported narco-terrorism the Panamanian De­ Affairs, March 10: fense Forces (PDF) are alleged to have supported in the region. Barletta had agreed to the formation of an indepen­ ... When the commitment to tum the Panama Canal over to dent commission to investigate the assassination of Dr. Hugo Panama was made in the 1976 treaties, there were many of Spadafora, found earlier that month in a U.S. mailbag, de-

EIR March 21, 1986 Feature 33 capitated and showing particularly brutal torture marks on and Castro, who was slated for retirement early this year. but his body. He was last seen alive while under arrest by a did not. member of the G-2, the PDF security forces. He was return­ Nicolas Barletta claims that he is still constitutional Pres­ ing to Panama after vowing publicly to expose key PDF ident of Panama .... Since the coup d'etat, Panama has officers' involvement in the drug traffic. been steadily moving farther into the narco-terrorist orbit, The reason given for Barlet­ the military openly taking over key civilian institutions. one ta's ouster was the country's eco­ by one, such as the ports. airports. railroad. customs and nomic and financial crisis and his immigration services. The ingredients are there for Panama inability to deal with it. Panama's to become the first country to institutionalize the drug traffic crisis descended, ironically, on and laundering of narcodollars under the auspices of a gov­ the eve of the international finan­ ernment run by the PDF .... cial convocation in Seoul, where The present voice of Panama in the Contadora process is the U.S. unveiled the outline of a the voice of a government controlled by military officerswho new program for dealing with regularly visit Managua and Havana ...giv en the dangers Latin America's huge external of the lethal formula of drugs plus guns in strife-ridden Latin debt-thus offering these coun- America, is it too much to ask the countries of the Hemi­ tries a light at the end of the eco- Norman Bailey sphere to meet in the council of the Organization of American nomic tunnel for the first time in three years .... States, put aside their habitual hypocrisy for once and de­ The overthrow of President Barletta's government is tri­ mand that the constitutional president of Panama be restored ply dangerous. In the first place, his downfall. as mentioned, to the exercise of his office? .. .. is the first reversal of the recent process of democratization Statement of Laura Spadqfora iustice. sister o/'terrorist HUKO, in Latin America. Second, the excuse used (and it is certainly read to the Subcommittee by Adefaida Eisellmallll, head of nothing more than an excuse) is the economic and financial the Panamalliall Humall RiKhts Committee: crisis. There is not a country in Latin America where this pretext could not be used to justify a coup. Thus the worst ...It is the opinion of a large section of Panamanian society fears of the pessimists may be coming true. Finally. [Gen. that Panama is the Philippines of tomorrow for the Western Manuel Antonio J Noreiga, widely suspected of drug dealings Hemisphere . There are many significant parallels: Panama and the murder of an opposition figure shortly before the has an 18-year-old corrupt and brutal military dictatorship coup, has indicated that he staged the takeover to forestall a which is now totally exhausted. Panama's dictatorship has

similar action by his second-in-command, Lt. Col . Roberto received almost the highest per capita U . S. aid support in the Diaz Herrera, a leftist with reported ties to the Sandinistas world. There is visible multi-million dollar ostentation by

Spadafora suggested that the plan would also give crucial support to the Salvadoran "revolutionary movement." Qaddafi, Spadafora, and This is the same Hugo Spadafora whom Senator Helms now cites as a model of courage. in his ongoing campaign a plot against Guatemala to destabilize the Panamanian government and replace it with avowed Nazi Arnulfo Arias. Spadafora was killed in FOIT\1erPanaman ian terrorist turned "Contra," Hugo Spa­ September 1985. by unknown persons, and since then a dafora, hailed by Sen. Jesse Helms (R-N.C.) from the campaign has been launched to pin his murder on the floorof the Senate on March 10 as an "insistent critic" of Panamanian Defense Forces and its commander. Gen. the Panamanian military. in 1980 received $4 million and Manuel Noriega. an unspecified amount of arms and military equipment EIR uncovered Spadafora's Guatemalan plot while from Libya's Col. Muammar Qaddafi , in order to build a researching the Nazi background of the leader of Pana­ new insurrection against the governmentof Guatemala. ma's Democratic Opposition Alliance, Arnulfo Arias Ma­ According to information uncovered by this news ser­ drid, whom aides to Senator Helms have stated they will vice, Qaddafi financed the creation of Spadafora's Inter­ help to return to power in Panama. Arias and Spadafora national Brigades, whose mission was to establish a are first known to have worked together in 1969. when "beachhead" for their insurrection in Belize , with weap­ Spadafora joined the terrorist resistance organization es­ ons transshipped through Surinam, and from Belize to tablished by Arias, to combat the new Torrijos govern­ launch a bid to overthrow the Guatemalan government. ment. I

34 Feature EIR March 21, 1986 officers in the military and their cronies, who travel to Paris and Switzerland on almost a weekly basis. There was a gross­ ly fraudulent U.S.-inspired election in which the loser was declared the winner. .. The major differences with the Philippines situation is THE that Panama does not yet have a violent insurgency move­ TRUTH ABOUT ment, and the fact that the Panama military governs through a figurehead civilian President who is assigned and "resigned THE NAZI at will" .... INTERNATIONAL The Panamanian Defense Forces functions more like a gang of thugs than a military institution. Corruption is ramp­ ant. ...Fr ustration is reaching the boiling point when the Panamanian people are no longer prepared to accept fraudu­ lent elections, and human rights abuses .... Furthermore , the military regime is a threat to the security of the Panama Canal . The irresponsibility of military com­ manders could lead them from their current position of black­ mail to a position of terrorism and sabotage of the Canal. The And continuation of the military government in Panama will pro­ Then ... duce the same effects as in other countries: civil war, terror­ Now! ism, sabotage or general violence. When this happens the Canal will become the most sought after target. ...

Te.vtimony ot Ambler H. Moss, lr .. deall of the Graduate School l?!1menwtiullal Stullie.I· , Ullil'ersity of Miami: THE The ouster of President Ardito Barletta. the first elected pres­ ident after 16 years of military and quasi-military rule. was seen by virtually every observer in the country-in govern­ HITLER ment. the media. academia. and business-as a lamentable event. ... Modification of the labor code. which President Ardito BOOK Barletta was unable to accomplish politically. is being urged by the IMF and World Bank as necessary to improve the A Schiller Institute Study country's investment climate . with the Panamanian private sector in strong agreement. ... Thi:-; highly rontro\"er�ial �tudy Panama could become a very successful economy by the expo�e� the philo�ophiral root:-; of proper application of the private-sector strategy of the Car­ ibbean Basin Initiative .... National Sociali:-;m and the interna­ The negative factor most oftencit ed by foreign investors tional oligarchical network that put in Panama as standing in the way of these desired ends is the Hitler into power. country 's labor law, which the government is committed to change . , . . Edited by Helga Zepp-LaRouche

Testimony of Dr. Richard L. Millett, senior policy adviser $995 . fo r Latin Americafor Frost and Sullivan lawfirm :

. . . There have been signs of growing turmoil within Pana­ ma. Part of this has centered around the current economic Order from: Ben Franklin Booksellers, Inc. crisis and resultant labor unrest, but it has also involved such 27 South King 51. shocking events as the killing of a prominent political figure , Leesburg, VA 22075 S Dr. Hugo Spadafora. and the kidnaping of businessman Sam hipping $1 50 for the first book: 50 for each additional book. Kardonski. [Kardonski' s kidnappers were rumored to be Col­ ombia's M-19 terrorists, angry that he refused to release $10 million they had deposited in his Tower Bank!-ed.J

EIR March 21, 1986 Feature 35 Strategic Map

The global chokepoints: State Department's gift to the Soviet Navy

I In our March 7 issue , EIR warnedthat the State Department's policy of abandoning our allies in Asia, signaled by the over­ throw of President Marcos in the .Philippines, was not only treason, but was giving the Soviet Navy control of the world's naval chokepoints. Many figures from the Congress are co­ traitors with the State Department. Below is the updated review of that process:

1. Panama: Panama Canal. Sen. Jesse Helms (R­ N .c.) and the State Department have joined forces to bring to power a Nazi-run opposition movement in Panama, in the name of "democracy" and "human rights." Their efforts are moving forward rapidly on two fronts: Senate hearings that began on March 10 and are to be expanded through March and April; and the forcing of Panama's Delvalle government to accept World Bank austerity conditionalities, designed to destroy industry and break the labor movement (pp. 26-35). The hearings are also_ designed to target Mexico, a pivotal country in the four-nation Contadora group of Colombia, Mexico, Panama, and Venezuela. In Colombia, the support­ ers of narco-terrorism and the international banks have just won sweeping victories in elections (pp, 46-47) .

.2. Argentina: Straits of Magellan. Argentina has accepted the "Baker Plan" imposed by the State Department, to implement IMF austerity at the risk of that nation's fragile the same State Department destabilization list which featured democracy. But with the arrival March 13 of Peruvian Pres­ President Marcos of the Philippines. ident Alan Garcia, the fightopens up for Argentina to take a 5. Saudi Arabia: Persian Gulf. U.s. Senator leading role in launching a world financial reorganization. Alan Cranston is spearheading congressional opposition to 3. Spain : Strait of Gibraltar. The March 12 national the sale of jetfighters to the Saudis, who are threatened by referendum on Spain's role in NATO approved by a wide Iran in the Gulf War. On March I I,Cranston overtly targeted margin the option of "yes" to continuing in NATO. In the the Saudi regime for the same treatment that was meted out weeks before the vote, mass anti-American actions, and sep­ to the Shah of Iran in 1979 (page 69). aratisUterrorist activation occurred . EIR has posed the fight 6. Egypt: Suez Canal. Egypt continues to be highly in Spain now as opposition to the Trilateral Commission and unstable after some 8,000 security policemen rioted from its plans to use Spain's role in NATO to "decouple" Europe . Feb. 25 to March I, killing several hundred and causing from the United States (pp. 42-43). millions of dollars in damage. On March 10, U.S. U ndersec­ 4. Turkey : Dardanelles and Bosphorus.More than retary of State Richard Murphy delivered an ultimatum to 20,000 workers staged a mass protest on Feb. 22. Turkey has Mubarak in Cairo, demanding that Egypt implement "eco­ been under intense strategic pressure from the Soviet Union, nomic reforms" before some $265 million of economic aid which it borders , while U.S. military aid is held up. It is on would be released by Washington (pp. 48-49).

36 Feature EIR March 21, 1986 ASEAN countries are exemplifiedby the targeting of Thai­ 7. Yemen/Hom of Mrica: Gulf of Aden. land's Kriangsak (page 50). Both South Yemen and Ethiopia are tied to the Soviet Union. 10. Philippines: South Pacific. The Aquino­ 8. South Mrica: Cape of Good Hope. On Laurel government, imposed by the U.S. State Department, March 5 South African President Botha announced that his is in a total crisis as it has been unable to "legalize" itself. governmentwould lift thestate of emergency and is ready to Communist insurgency by the New People's Army has in­ implement U.N. Resolution 435 on Namibia. If the State creased since the overthrow of President Ferdinand Marcos; Department and allied banking circles persist in economic the government is attempting to negotiate an amnesty with sanctions, it will become clear they neverin tended a peaceful the terrorists. The International Monetary Fund, the State settlement. On March 7, Barclay's Bank in London an­ Department's AID, and Manufacturers Hanover Bank are all nounced that it would refuse all new loan requests or res­ in the country. cheduling of existing debts of South Africa (page 51). 11. South Korea: South China Sea. The State 9. Indonesia: Strait of Malacca. The oil crisis Department-backed opposition says it is encouraged by the has already provoked an economic collapse. Jesuit operations "people power" in the Philippines. Mor!! than 1,000 students are in progress by the same groups that started the Filipino battled with riot police at Seoul universities on March 14. destabilization. State Department-IMF operations against the NorthKorea may start a war with South Korea.

EIR March 21, 1986 Feature 37 �TIrnInternational

Olof Palme, and Moscow's new assassination policy

by Criton Zoakos

I The professional, as it now has been established, manner in tained a unique relationship with the Kremlin. During the which the assassination of Swedish Prime Minister Olof Palme Bolshevik coup d'etat, tensof millions of dollars were con­ was carried out, leaves very little room for the hypothesis duited through Swedish banks to Lenin's organization, that the murder was motivated by anything other than a major through an arrangement known as "The Trust," in which the political motive. The theories involving Croatian, Kurdish, notorious Alexander Helphand Parvus and his partner, Jakob and similar groups such as the Baader-MeinhofGang, can be Furstenberg, played a pivotal role. dismissed as deceptive since, as it is known, the extent to Furstenberg, who was incorporated as a Swedish busi­ which such groups have any professional "hit" capabilities, nessman to facilitate capital transfers to Russian insurrection­ is definedby the extent to which they are under the influence ists, later, under Lenin, became the governor of the Soviet of the major political players, i.e., the secret services of Central Bank and the principal architect of the Trusts of the major powers. N .E.P. period. It was during that period that the Wallenberg Therefore, for those who still wish to treat the assassina­ Group, with heavy financial assistance from John D. Rock­ tion of Palme as an unsolved "mystery," it makes sense to try efeller, established major business relations with the Sovi­ narrowing the field of suspects by identifying the political ets-relations which continue to this day. The latest publicly consequences of the murder, and then matching these con­ exposed service of the Wallenbergs to the Kremlin was re­ sequences with the known policy objectives of the "major vealed in April 1984 when a federal court of the United States players." From this perspective, the Soviet Union would fined a Wallenberg-owned company, Datasaab, $3. 12 mil­ appear as the principal beneficiary of the Pal me assassina­ lion for having illegally exported to the Soviet Union an ultra­ tion. sophisticated radar system which is capable of tracking To argue, as Georgii Arbatov did repeatedly, that "im­ "Stealth technology" aircraft. perialist dark forces," were behind the murder, is vacuous The Wallenberg Group's chief executive officer, Hans political hot air. The KGB's own Literaturnaya Gazeta, em­ Werthen, is so extensively involved in Soviet economic af­ ploying a mouthful, informed us that Palme was killed by the fairs , that many in the international business community con­ "ton-ton macoutes of the international dark forces," a de­ sider him to be "the Soviet Union's third most important scription which might fit anyone from a Russian Orthodox operative internationally," "more important than Kim Philby deacon to a Bulgarian narco-trafficer,or a Sikh fanatic. Yet, ever was," as one of them put it. numerous Russian officials insist solemnly that "they know Equally important for forming an adequate background who is responsible for the killing of Pal me. " One cannot help picture of Swedish affairs, is the current Soviet ambassador but suspect that they know only too well. to Stockholm, Boris PankiQ. Before his posting to Stock­ Some things ought to be said about Soviet presence in holm, Pankin was not a member of the Soviet diplomatic Sweden before the reader can form an adequate context for service. His officially listed job was "Director of the Copy­ the Russians' bizarre behavior surrounding the Palme assas­ rights Bureau of the U.S.S.R. ," and his real job, Chief of the sination. First, the greatest financial and industrial power of KGB Disinformation Directorate, in which capacity he di­ Sweden, associated with the Wallenberg family's group of rected, for a period of over'ten years, a program of covert interests, had, from the inception of the Soviet state, main- acquisitions and takeover of numerous newspapers and pub-

38 International EIR March 2 I, 1986 lishing houses in the Western world. Along with the busi­ For one thing. the KGB was in a position to know that nesses. Boris Pankin is reputed to have bought numerous there had emerged grave differences between Prime Minister influentialjournal ists and opinion makers. Pal me and Hans Werthen of the Wallenberg Group, over Yet. according to some very old observers of the top government economic policy. The KGB also knew that the rungs of Soviet society. even the very impressive KGB di­ differences were so grave that Palme brought himself to be­ rector credentials of Boris Pankin are merely a deceptive lieve that he could get away by attempting a cleanup and cover story: He is supposed to be one of the most consummate reorganization of the Wallenberg banking and industrial em­ and powerful men in the inner policy-making sanctum of the pire. The KGB-or Pankin-were in a position to know that Russian state. his policy influence ranking close to that of a potential assassination of Palme could, with skill, be attrib­ Mikhail Gorbachov. These sources explain Pankin's present uted to the Wallenberg Group, itself a "Trust" partner. If not posting in Stockholm in terms of the important role that attributed. then threatened to 'be attributed to ensure post­ Sweden plays as a location where major Soviet policies are assassination cooperation. first tested out. To Kremlin policymakers. Sweden is. first Such details, of course. can only be clarifiedby straight­ and foremost. a 'Trust" country. as it has been since 1917. forward investigation of facts which, however, is very slow The "Trust." a generic :characterization of the Kremlin's in coming. There is. in fact, a growing number of indications, arrangements with the Western oligarchy-arrangements al­ that KGB "moles" inside the Swedish police are quite close ways characterized by "common and conflicting goals"­ to manipulating the ongoing investigations. has been an ongoing relationship since the replacement of The most important, politically, element of the Palme the Romanov dynasty with the. presumably more efficient. assassination is the fact that it was timed to occur immediately Soviet dynasty of the Russian Empire . This ongoing relation prior to the keynote speech of KGB chief Victor Chebrikov has been marked by numerous ups and downs. reflectingthe to the 27th Communist Party Congress, and slightly before successive dominance of "common" or. alternately. "con­ the announcement that the notorious Boris Ponomaryovhad flicting:' goals in the partnership. been removed from the Central Committee leadership. This Characteristically. during the height of Stalin' s power. in sequence of events, significantly, was pointed out by a well the I 930s and 19405. the Kremlin had embarked on a policy known KGB/Trust disinformationcondu it, the Israeli-Soviet of bludgeoning Western oligarchical partners into submis­ immigrant Mikhail Agurski, who wrote his own analysis in sion to a Russian preeminence in policy. The Kremlin' s prin­ a March 10 issue of the Jerusalem Post. Agurski' s main error cipal instrument of persuasion against its Westernol igarchi­ was his failure to mention Boris Pankin in his article, and cal partners was the notorious "purges." and "Stalin trials." many believe that Agurski owes Pankin more than a few It was in the context of this policy that Josef Stalin ordered favors. the disappearance of Raul Wallenberg. an illustrious member Where Agurski is accurate is in his insinuation that the of the Wallenberg group of financial interests with whom the Pal me assassination is probably some sort of political signal Kremlin does business. to the West, though he does not specify what kind of political Similarly with the disappearances and executions of per­ signal. sons such as Bukharin. Trotsky. Zinoviev. Kamenev. and For our part. we do not have to look far to identify the numberless Social Democrats throughout Eastern and West­ character of the political signal that the Kremlin is sending. ernEurope . Whenever the Kremlin wishes to assert its "con­ Two days after the Palme assassination, Radio Moscow was flicting"over its "common" goals over those of its Western broadcasting that former Austrian Chancellor the Social oligarchical partners. it is the Social Democrats. the financial Democrat Bruno Kreisky. had received numerous death oligarchy's principal political tools. who pay with their lives. threats. Later, on March 13. a skillfully disguised message Against this general background. can one ask the ques­ was published in certain Pankin-influenced papers, claiming tion whether the Kremlin-say. Boris Pankin-arranged for that "Willy Brandt is next" to be assassinated after Palme. the assassination of Olof Palme? Numerous factors indicate Clearly, the publicly recognizable heads of the Social De­ how easy such an arrangement would have been for Pankin. mocracy have been targeted. who. by position, integrates the functions of three powerful Those among the Western oligarchs who know how the Russian agencies capable of arranging assassinations: Pono­ game of "The Trust" is played, ought to open their eyes and maryov's International Department of the Central Commit­ recognize a return, in the Kremlin, of the old policy of Josef tee, Chebrikov's own KGB, and the Foreign Ministry-not Stalin. that of killing the Social Democratic political assets to mention Pankin' s numerous personal avenues of access to of the Western partners. in order to ensure preeminence of Westernprof essional assassin outfits. In addition, Pankin and the Russian "conflicting"goa ls. If our analysis is right, and the KGB have more than ample means inside Swedish police. if what we say happened at the 27th Congress indeed hap­ political organizations, and newspapers to ensure the post­ pened, then, not so much the retired Brandt and Kreisky, but assassination management of the news to best Soviet advan­ Franc;ois Mitterrand-the Social Democrat still in office(l ike tage. Palme)-may be in imminent danger.

ElK March 21, 1986 International 39 Soviet party congress ushers Red Army into political leadership by Konstantin George

The 27th Soviet Party Congress which crowned Mikhail Gor­ in the Soviet leadership has been obliterated. The "Muslim bachov as the new Czar, ended March 6 by electing a new Card" is for export only, not for the domestic policy of Holy Central Committee of 307 full and 172 candidate or non­ Mother Russia. voting members. A look at the new Central Committee's composition documents the control of Soviet policy by the The pre-war leadershfp Soviet Military High Command under Marshal Nikolai Ogar­ Also announced was the creation of a new National De· kov and the party's "Andropov Mafia"which propelIed Gor­ fe nse Council, consisting of the military high command un­ bachov into power. der Marshal Nikolai Ogarkov, and , on the "civilian," or The personnel changes introduced at the Party Congress more precisely, economic side, Gorbachov and his inner give a picture with the following key elements: circle of tough-minded Russian imperial cronies brought for 1) All of the commanders in chief of the secret Wartime the most part onto the Politburo during the course of 1985: High Commands established in late 1984 , are now fu ll mem­ Gorbachov's number-two man and personal hatchet-man, bers of the Central Committee. In addition, the Congress Yegor Ligachov, Prime Minister Nikolai Ryzhkov, former elected six new generals and admirals to the Central Com­ Leningrad party boss Lev Zaikov, in charge of the Soviet mittee, and no less than nine new generals and admirals to arms industry; and, of course, the "Andropov Mafia" KGB candidate Central Committee status, alI but one being com­ boss, Viktor Chebrikov. manders of combat forces. 2) A purge of "dead wood" in the party hierarchy, block­ The military represen,ation ing the heightened tempo of the war-economy drive, was Curiously, with alI the �ords written on the party con­ completed. Between deaths and purges, at least 139 of the gress in the Western media, almost zero attention has been old, 319-member 1981 Central Committee are no longer devoted to reporting, let alone discussing, the facts concern­ there. ing the military influx onto the Central Committee, perhaps 3) Promotions were accorded to 1) Yevgenii Primakov, the most ominous fe ature oralI. former head of the Soviet Oriental Studies Institute and now Gorbachov's rise to power was preceded in late 1984 by director of the IMEMO intelligence think tank, raised to fulI the formation of four wartime high commands, under the Central Committee membership; and 2) Karen Brutents, overall direction of former chief of the general staff, Marshal the figurefor Third World affairs-read: destabilizations­ Nikolai Ogarkov. Besides baving become overall wartime at the International Department, now elected a candidate commander, Ogarkov also assumed the command of one of member. these four: WartimeHigh CommandStrategic Direction West, 4) The chief editor of Literaturnaya Gazeta, the KGB's responsible for both total will' against the United States and unofficial weekly mouthpiece, Aleksandr Chakovsky, the NATO, and any limited war in central or northern Europe. man known for having first launched the rehabilitation of The other three commands are: Stalin back in the late 1960s, is now a full member of the 1) Wartime High Command Strategic Direction South­ Central Committee. west, HQ in Kiev, under Army General Ivan Gerasimov, 5) There was a strong shift to all-out "Russification" responsible for military operations in the Balkans, Turkey, inside the Soviet Union, as the calendar approaches the 1988, the Mediterranean, and the Middle East. 1 ,OOOth anniversary of Orthodox Mother Russia. Of the 19 2) Wartime High Command Strategic Direction South, ethnic Muslims elected to the Central Committee in 1981, HQ in Tashkent, responsible for military operations in Iran, only 5 remain. With the distinct and important exception of the Persian Gulf, and the Indian subcontinent. Its first com­ KGB veteran Geidar Aliyev of the Soviet Politburo, and his mander-in-chief was Army General Yuri Maksimov, pro­ "Muslim Card" subversion machine, the Muslim component moted to command the Soviet Strategic Rocket Force in July

40 International EIR March 21, 1986 1985. replacing Marshal of Artillery Vladimir Tolubko. a fact doubly significant since it occurs in the immediate Maksimov was subsequently replaced in Tashkent by Army aftermath of the Palme assassination. The 27th Party Con­ General Mikhail Zaitsev. Until July 1985. he was the com­ gress simultaneously promoted to candidate memberships the mander in chief of the Group of Soviet Forces in Germany. commanders of both the largest land forces facing Scandi­ as their forces in East Germany are called. navia, and the powerful Northern Fleet, headquartered in 3) The Far East High Command. HQ in Chita. command­ Murmansk. They are: ed by Army General Ivan Tretyak, with responsibility for I) Colonel B. V. Snetkov, commander of the Leningrad all military operations in the Far East/Pacific Ocean region Military District, which includes all the ground and air forces and against China. facing Finland and those on the Kola Peninsula facing north­ With both Army Generals. Gerasimov and Maksimov ernNorway . promoted to full Central Committee membership by the 27th 2) Admiral Ivan Kapitanets. The commander of the Party Congress, all the wartime commanders. in addition to Baltic Fleet until late spring 1985, he was promoted to com­ the heads of each service branch. the Ground Forces. the mand the Soviet Northern Fleet, the most powerful of the Strategic Rocket Forces. the Air Defense Forces. the Air four Russian fleets, containing the bulk of the Soviet nuclear Force. and the Navy . are now fu ll members. ballistic missile and nuclear cruise missile carrying subma­ Two of these service-branch heads are new to the Central rines. Committee membership roster: Air Marshal Yefimov, suc­ The Kremlin's satisfaction over the pace of the Soviet cessor to the deceased Air Marshal Pavel Kutakhov as Air SDI and ABM pre-war programs was provenby the elevation Force chief. and Admiral Vladimir Chernavin, recently of a key Air Defense commander onto the candidate Central appointed Navy commander in chief, replacing the 76-year­ Committee roster. This marks the first time that a senior old Admiral Sergei Gorshkov, who had directedthe Soviet commander below the level of commander in chief of all Air Navy since 1956. The retired service heads, including Gorsh­ Defense forces (by definition ABM forces) has ever been kov and Marshal Tolubko of the Strategic Rocket Forces, named to the Central Committee. It wasn't just any Air De­ have retained their rank of full members of the Central Com­ fense commander. mittee. The honor went to Air Marshal A. Y. Konstantinov, commander of the Moscow Air Defense District. Konstanti­ The new military faces nov oversaw the crash program to install the modernized For 1986. Russia has assigned a big priority to the drive Galosh ABM missile system-now reportedly complete­ to dominate the Mediterraneanand the Near East. The "sum­ to protect Moscow and the Kremlin from a U.S. retaliatory mit" level of this policy committment is evidenced by Gor� strike. In the second half of the 1980s, his command is to be bachov's announcement that he will be visiting Italy later this allocatedtop priority for the stationing of the firstoperational month, and later this year, Greece. Moreover, of the 9 new Soviet SDI system. generals and admirals made Central Committee candidate The others promoted to Central Committee candidates members, three were military commanders serving under the are: Southwest Wartime High Command, HQ in Kiev. They are: 1) Colonel General N. I. Popov, commander of the Tur­ I) Colonel General V. V. Osipov. Osipov became the kestan MilitaryDistrict since late 1984, who has been playing commander of the Kiev Military District in late 1984, having a key role in directingSoviet combat operations in Afghani­ replaced Army General Ivan Gerasimov, when Gerasimov stan. was elevated to head the newly created secret Wartime High 2) Colonel General V. ShuraIev, appointed in early 1985 Command Southwest Strategic Direction. to command the Byelorussian Military District, the largest 2) Army General V. A. Belikov. Belikov is the com­ military districtin the western U.S.S.R., which contains the mander of the Carpathian Military District, located in the Soviet ground and air forces which would constitute the bulk northwest Ukraine, one of the military districts comprising of the Russian second echelon used in any invasion of Central the ground and air force components of the Southwest war­ Europe. Shuralev was promotedfrom first deputy command­ time high command. er when Army General Ivanovskii was promoted to com­ 3) Colonel General V. S. Rodin. From 1982 to late 1984, mander-in-chief of the Soviet ground forces. Rodin was the chief political officer for the Kiev Military The finalpromotion sheds light on a crucial branch of the District, when Gerasimov ran the district. In late 1984, he Soviet military, often ignored in writings on the subject­ moved up with Gerasimov, becoming the chief political of­ the Rear ServicesAdministration , responsiblefor all military ficer for the Southwest wartimehigh command. logistics and the mammoth Soviet pre-war stockpiling pro­ These political promotions, along with other recent trans­ grams. The Rear Services have been headed for nearly 15 fers of top-grade Soviet fieldcommanders into the Southwest yearsby MarshalSemyon Kurkotkin, a full member of the command, are evidence of a massive upgrading of combat Central Committee. Now, one of his top ,proteges, Colonel strength and readiness in this region. General V. V. Nikitin, chief of the Fuel Supply Administra­ A similar emphasis can be discernedin NorthernEurope , tion, has become a candidatemember of the CC.

EIR March 21, 1986 International 41 Spanish voters say 'Yes' to NATO, but what does that 'Yes' mean? by Mark Burdman

The results of Spain's March 12 national referendum on votes were cast. For the loyalists of Prime Minister Felipe continued membership in NATO could tum into a setback Gonzalez inside and outside of his Socialist Party, "Yes" is, for those who want to "neutralize" Europe on behalf of the in practice, tantamount to "No" on the ground. The condi­ Soviet Empire. But only if Spain's pro-NATO voters mobi­ tions of the "Yes" vote incll.Jde: I) "progressive reduction" lize to keep the Trilateral Commission from using Madrid as of the American presence inSpain; 2) no nuclear missiles on a launching point for breaking up the Western alliance; and, Spanish soil; 3) no integrationof Spain into NATO's military if the Reagan White House distances itself from the "Trila­ command. teral Agenda" for Europe. This might be called the "Trilateral Yes," after the Tri­ On March 12, more than 50% of those Spaniards who lateral Commission, the U.S.-European-Japanese bankers' voted, voted "Yes," to the referendum which calls for Spain clique set up by David Commission, the U.S.-European­ to maintain conditional participation in NATO. Approxi­ Japanese bankers' clique set up by David Rockefeller. Ac­ mately 40% of the voters voted "No," even to conditional cording to this viewpoint, Spain's role is to help NATO participation. Seven percent voted to abstain. The rest of the redefine itself. into a more "European" organization, with votes were considered "null and void," for one disqualifying the U.S. role sharply cut. Some Trilateral-linked think tanks reason or another. in Europe and North America even go so far as to see Spain Since the "abstention" option was that put forward by the as "filling the gap" leftby a reducedAmerican role in Europe most strongly pro�NATO voice, the Alianza Popular coali­ as a whole. One idea would have Spanish troops play a certain tion headed by Manuel Fraga, it would be fair to say that role in Germany, with the United States progressivelyphas­ almost 60%of those who voted rejected the "No" campaign ing itself out, "Europeanizing"NATO . of Moscow , the Spanish Communist Party, and the European The reality behind the verbiage is that this would hand "peace movement," for Spanish withdrawal from the alli­ Europe over to Moscow's sphere of influence in phases. ance. Many "Yes" voters, hO\fever, were not Gonzalez loyal­ The turnout in favor of NATO is all the more significant, ists, and voted "Yes" as a way of not voting "No," acting on as the Soviet KGB's assets were fu lly mobilized against it. the "lesser of two evils" basis. Their " Yes," was an affirma­ In Madrid, Spain's capital, this correspondent saw, in the tive to NATO, not an affirm.. tive to Felipe Gonzalez and the last weekend before the referendum, anti-NATO stickers and Trilateral Commission. Now, the battle over Spain's partic­ posters dominating the walls and the streets, circulated both ipation in NATO, shiftsinto other arenas, including Spain's by the political leftand the pro-Nazi CEDADE organization. legislative chambers, where the fu ll details ofhow Spain will Rallies of over 100,000peop le were held in Madrid and other work with NATO, will be resolved. Meanwhile, the "witch­ cities in the days leading up to the March 12 tally, with es' brew" of emotionalism whipped up by the referendum­ speakers from the European "peace" movement, including process itself, may create conditions for destabilization of West German Green Party leaders Petra Kelly and Gerd Bas­ the Spanish situation. tian, and Campaign for Nuclear Disarmament chief Monsi­ gnor Bruce Kent. The Trilateral agenda ! The Soviets were also mobilized in their usual brutal On May 17-19, the Trilateral Commission will be holding fashion: Moscow's chief U.S.A. expert, Georgii Arbatov, its annual internationalsummit in Madrid. The main item on warned Spain that if it stayed in NATO, it would be a target the Trilaterals' schedule, is the phase-out of NATO as a of Soviet missile attack. In a Spanish-language Radio Mos­ workable institution. Accotding to information currently cow broadcast, on the night of March 10, another Soviet available, the Trilateralists, in Madrid, will have the follow­ commentator said, on the referendum, "The question now ing items on the agenda: for Spain, is: To be, or not to be." • "The Next Phase of �st- West Relations," based on a Exactlywhat the vote means about Spain's future in NATO panel headed by William Hyland, former underling of Henry is still open to question. Two entirely different kinds of "Yes" Kissinger at the U.S. National Security Council, and present

42 International ElK March 21, 1986 editor of Foreign Affairs. the magazine of the New York a front-page article quoting this correspondent: "The Trila­ Council on Foreign Relations (CFR); and Karl Kaiser, head teral Commission will come to Madrid to destabilize national of the West German branch of the CFR, based in Bonn. sovereignty." The article cited EIR ' s evidence of full Trila­ • According to the Italian weekly Panorama. a decision teral-Soviet cooperation on certain issues, especially against will betaken to hold the Trilateral Commission's next plenary President Reagan's Strategic Defense Initiative. at a site never before used by the Trilaterals, with Moscow the chief candidate. Spanish-American friendship, or Ostpolitik? • There will also be a discussion on the future of "inter­ This last point, as reported in El Alcazar, underscores the national organizations," the strengthening of the suprana­ dilemma facing President Reagan, in reacting to the Spanish tional power of David Rockefeller's "banker socialism," via and other European developments. Insofar as he supports the increasing power for the International Monetary Fund, the budget-cutting measures of the Trilateralists that are becom­ General Agreement on Trade and Tariffs (GATT), and other ing the excuse for decoupling the United States from NATO, institutions. This is, in part, an outgrowth of a "Managing he is supporting those who are out to destroy his own SDI International Order" project of the Commission, headed by program. Count Etienne Davignon, banker at the Societe Generale de Many in Spain, for example, would love to have the Belgique and a director of Kissinger Associates; his "Dav­ United States extend an offer for Spanish participation in the ignon Plan" of the European Community bureaucracy in SOl, which, so far, has not beenfor thcoming. This, coupled Brussels has wrecked the European steel industry. with other overtures to better Spanish-American economic • There will reportedly be discussions on further Trila­ and strategic relations, could revitalize the most advanced teral Commission efforts to reduce the U . S. defense budget. sectors of Spanish industry, in electronics, nuclear energy, It is on this latter point, that we find the ironies of Spain's construction, and so on. Now that the referendum has oc­ national NATO referendum: The decision to preserve or ruin curred, will the United States extend such an offer? If not, NATO is being made in the United States. those who want to use the referendum to promote an anti­ On March 3, nine days before the NATO referendum, the American NATO, will be reinforced. Times of London ran a feature from Washington, D.C., on Similarly, the U.S. ambassador in Madrid, Thomas End­ how NATO, in the view of Americans, was no longer a ers, is the embodiment of State Department-Trilateral Com­ "sacred cow," especially in light of the increasing pressures mission policies. Enders showed his character when, as U.S. to cut the U.S. budget. The Times identified,among others, ambassador to Cambodia in the early 1970s, he destroyed the three individuals leading the strategic campaign against Lon Nol governmentand expedited the takeover of Pol Pot's NATO: Henry Kissinger. Carter-era National Security Ad­ Khmer Rouge. Today, Enders is associated with those bank­ viser Zbigniew Brzezinski. and former Treasury Secretary ing and financial forces in Madrid linked to the laundering of William Simon. Kissinger. deployed out of David Rockefel­ drug-trafficking monies, and his stay in office in the Ameri­ ler's piggybank, is a Trilateral Commission executive com­ can Embassy can only weaken Spain's ties to the Western mittee member. Brzezinski is the recognized founding ideo­ alliance. logue of the Trilateral Commission. Simon is a recently ap­ At this moment. Spain is not in truth a sovereign nation. pointed director of Kissinger Associates. Its industrial and economic infrastructure are being system­ The justification for phasing out U. S. involvement in atically weakened by the Trilateral bankers' cartel, repre­ NATO is the Gramm-Rudman budget-cutting bill, the first sented by such institutions as the Banco Hispano-Americano, phases of which went into effect on March 3, the same day Banco March, and other institutions whose heads are on the as the appearance of the Times article. The lawyer for Gramm­ Trilateral Commission. IMF austerity pressure on the country Rudman, in U.S. federal courts. is Lloyd Cutler, the former is enormous. Drug addiction is growing among the youth, Carter White House counsel. and a Trilateral Commission and best estimates are that 100,000 Spaniards are already member for over 10 years. infected with AIDS. As the Times documents, although omits to state explic­ Short of statesmanship by the United States and other itly, the anti-NATO strategic campaign is wall-to-wall Tri­ Western nations winning for Spain an effective role in the lateral Commission. On March 7, EIR briefed an audience of Western alliance, other considerations of pragmatism and 40 journalists, students. diplomats, military officials, and opportunism will prevail. Felipe Gonzalez is reportedly com­ others in Madrid, on "The Trilateral Commission, the Great­ mitted to a trip to Moscow for a state visit, probably in May. est Threat to the Western Alliance," stressing that, however Around this time, the Spanish industrialists' confederationis Spaniards voted on March 12, the policies of the Trilateral planning to send a large delegation of business chiefs to the Commission for "decoupling" the United States and Western U.S.S.R. In some quartersin Madrid, there is talk of a "con­ Europe would destroy NATO. vergence" between the East and the West, modeled on the On March 9, the daily El Alcazar, which is widely read kinds of proposals put forward by Zbigniew Brzezinski over among Spanish military and intelligence officials, published past decades.

EIR March 21, 1.986 International 43 the murder of her husband. Interior Minister Pierre Joxe had France signed "a blackmail deal with Abu Nidal" in February, she charged, which prompted the release of two agents from a French jail. "Why a deal with Abu Nidal, and not with the Jihad?" she asked. Could the elections have had something Hostage crisis erupts to do with it? Upon confirmation of Seurat's death, negotiator Razah on eve of elections Raad accused Paris of having prevented him from traveling to Lebanon three weeks earlier, in an effort to negotiate his by ThienyLalevee fate . Of Lebanese origins. and with an extended family in the Shi' ite region of the Bekaa valley, Raad had gone twice in August and December to meet with the kidnappers. Twice he A major issue of French forei�n policy, avoided during most had come back empty-handed, as Paris refused to recognize of the current legislative election campaign, was finally raised him as an official negotiator-perhaps because he is a can­ in the last week of the race: the question of terrorism, and the didate for the March 16 elections on an Oppos ition ticket. fate of the French hostages in Lebanon. Only on March 8, when the �ihad requested his presence, did By March 8, with the kidnapping of four journalists in Paris provide him with a negotiating mandate. Beirut, the number of hostages rose to eight; two days later, The governmentans wered the execution of Seurat witha it became clear that only seven actually remained, as re­ warning that the hostage iS$ue "should not become an elec­ searcher Michel Seurat had been executed by the terrorist toral issue"-while allowing some carefully timed leaks to group Islamic Jihad, as it had claimed on March 6. the effect that Paris may considersp ecial military or intelli­ The Socialist government of President Fran�ois Mitter­ gence operations to release the hostages, or to retaliate for rand is on the chopping block because of this tragedy, as Seurat's death. scandals began to unfold which revealed the unbridled cyni­ cism of the regime. The government had expected that the Disarray in the intelligence services hostages could be released by early February; but when this The fate of hostages has raised fundamental issues about failed, negotiations were terminated and the issue shelved, the future of French policy. As Le Figaro pointed out in its until afterthe elections-or so the governmenthoped . editorial on March 12, the country has now lived through But the press revealed that the CIA had warned last Oc­ "five years of a foreign pollicy based on complacency and tober of the presence of terrorist Imad Muganiyah in Paris, compromises with internationalterror ism." but the Mitterrand government chose to'igitore the report. What about the effect on France's foreign intelligence The CIA identifiedMuganiya h as involved in the June 1985 service, which the Socialists changed from SDECE into OOSE TWA hijacking; but thanks to the personal intervention of in 1981? The transformation included purges of most of the Foreign Minister Roland Dumas, who described the terrorist SDECE's agents worldwide; scores of full-time agents and as a "key negotiator," the police were prevented from arrest­ informants were forced to retire, under suspicion of being ing him. Mitterrand refused even to meet with the U.S. am­ anti-Socialist. The Socialists transformed French intelli­ bassador on the issue. gence into a political operation, open for manipulation. The Press exposes of secret deals between the government result was soon felt. Besides its lack of political will, Paris and the terrorists mounted, as the government found itself has displayed a total inability to deal with the Lebanese ter­ forced to enter into last-minute negotiations to prevent the rorists. Whenever a retaliatory military operation was con­ execution of another hostage, which the Islamic Jihad threat­ sidered, it had to be abandoned immediately, as no one could ened to carry out by March 15. It warnedthe French govern­ confirm the accuracy of the target. ment to stop making "noisy declarations," and continued, In the last weeks before the election, both Mitterrandand "We know that you are unable to retaliate. We have killed Joxe have been busy appointing their own men to "non­ your soldiers in the past and you have done nothing!" The political" positions which cannot be affected by a change of group demanded the release of an Iranian commando who government. Mitterrand, for example, has been seen estab­ had attempted to kill Shahpour Bakhtiar, the former Iranian lishing direct contacts with key personnel within the police, prime minister and anti-Khomeini exile, in 1980, as well as the interior ministry, defense, and the army, to ensure that the returnto Paris of two Iraqi fundamentalists who had been they will keep him personally informed, bypassing the hier­ extradited in February to Baghdad. archical structures of the government. Just before the elec­ As negotiations proceeded with Damascus, Beirut, and tion, Joxe reassigned no fewer than 67 directors and deputy Baghdad, the French government found itself the accused. directors of the police and DST intelligence service to appoint Seurat's wife Mary told the press on March 12 that she con­ his own men, creating a legacy which may endanger the sidered the interior minister and prime minister "guilty" for viability of France's next government.

44 International EIR March 21, 1986 2) The other factor which might explain Japanese caution or reservations concerningthe SDI and their eventual partic­ ipation in the program lies in the domain of mutual trust between Japan and the United States. Japan is wondering if this is not just another ploy by the United States to steal Japanese high technology. Would Japan benefit from the Japan will decide civilian spin-off technologies? Would Japan benefitby gain­ ing a strategic defense useful to the island nation? on SDI role soon One must admit that U. S. foreign policy, to put it mildly, has been far from reassuring to U.S. allies. A Japanese com­ by Sophie Tanapura mentator sarcastically told this author that one can note a "slight" improvement in American foreign policy in that the U.S. government did agree to shelter President Marcos on In the wake of Japanese Prime Minister Yasuhiro Nakasone's American soil, whereas the Shah of Iran was not welcome. visit to the United States April 12-14, Japanese press have Perhaps, this is the "big" difference between President Rea­ been saying that Japan will most likely decide to join the gan and President Carter. American Strategic Defense Initiative program. Most Japa­ Not only has U.S. foreign policy been failing U.S. allies. nese government and corporate cadres expect Japanese par­ U.S. economic policy is far from a redeeming feature. The ticipation in the SDI research program to be similar to that of U.S. Congress and State Department continue to threaten West Germany, i.e., no formal , bilateral government-to­ extreme protectionist measures against Japanese exports, and government agreementwill be signed, but participation will U.S. pressures and actions are already dampeningthe Japa­ be left up to the initiative and interest of private corporations, nese economy. institutes, laboratories, etc . 3) Finally, there is tremendous fear that should Japan However, through systematic close consultations with place her high technology within the constraints of a joint these agencies, the Japanese government will be informed of defense program, this would hamper her dynamic rate of every detail, and will most certainly act as an encouraging economic growth and technological improvements and in­ coordinator in the program. novations. Perhaps this is the main reason for Japan's hesi­ In Japan, everyone will tell yoJ.! that the SDI is a very tation to enter into any formal, binding agreement on the delicate question. As in other countries, Japanese have many government-to-governmentlevel . reservations about the program, some peculiarly Japanese, Should Japan decide upon participation in the beam de­ some not. fense research. progr�m, it will be because mutual strategic There are essentially three reasons for the Japanese hesi­ and economic interests in the Western Alliance definitely tation: outweigh the above-stated fears . 1) The stigma of Japan's role in World War II is still Observers have noted that there is a difference of views there. between Prime Minister Nakasone and Foreign Minister Today, Japan does not want to be misunderstood by her Shintaro Abe over whether or not Japan should participate in Asian neighbors. She does not want her Asian economic the SDI. Abe is more hesitant, and suggested early in Feb­ allies, on whom she depends for raw materials and not-insig­ ruary that a third mission be sent to the United States to obtain nificant markets, to think that by participating in the SDI moreinforma tion. Nakasone, morefavorable toward the SDI, program, Japan is enhancing her defense forces and could be had commented to media representatives, "Japan cannot in­ suspected of harboring designs to overrun the Pacific once definitelydefer a decision." The prime minister has report­ again. edly ordered the foreign ministry to speed up studies of "all The Soviets are already pointing their finger at Japan as aspects"of the problem in preparation for Japan's participa­ one of today's formidable "imperialist" powers-the other tion. two being Western Europe and the United States. We can Abe will be accompanying Nakasone to Wasington, D. C. expect that the "peace movement" in the Pacific area, such this April. On the agenda for discussion with President Rea­ as the one growing in Thailand, represents an attempt to tum gan, will be an explanation of Japan's medium-term econom­ students and religious layers into an anti-Japanese move­ ic policies, designed to tone down trade friction and, at the ment, something which was mobilized quite effectively a same time, ensure economic growth. little more than a decade ago. The mobilization issue could In the tete-a-tete, Nakasone will also seek Reagan's ad­ easily be Japan's involvement in the "Star Wars" program. vice on the organization and the subjects to be discussed at In line with Soviet party chief Mikhail Gorbachov's an­ the Tokyo economic summit scheduled for early May. While nounced determination to nullify the SDI program, such an it is not formally on the agenda, it is expected that Nakasone attempt by Soviet channels (perhaps with Chinese collabo­ will take this opportunity to broach the question of Japanese ration) to punish Japan is not a far-fetched scenario. collaboration in the SDI.

EIR March 2 1, 1986 International 45 Colombian elections witness comeback by narcotics mafia by Val erie Rush

Just-concluded legislative elections in Colombia provided to put him in the Senate fur yet another term. but the fat , the stage for a sweeping comeback of the dope mob into greasy-haired . effeminate $antofimio has bought himself an­ positions of influence in that country. The March 9 elections other machine, this time a ¢ity council seat in the capital city gave the "official"wing of the Liberal Party. under the lead­ of Bogota, as a stepping-stone to a future presidency. ership of former Presidents Alfonso Lopez Michelsen and Julio Cesar Turbay Ayala. a powerful majority in both houses Drug lobby advances of the Colombian Congress. and the ofi cialistas. as they are ErnestoSamp er Pizand, formerly campaign manager for known, are already salivating over the prospects awaiting Lopez Michelsen's 1982 presidential bid and chief lobbyist them in the presidential election May 25. for a project to legalize the production and export of mari­ According to the latest officialrepor ts. the Lopez/Turbay juana, reportedly strengthdned his own political prospects by forces took nearly 49% (3.2 million) of the vote, with the "turning out the vote" for Barco in the capital city of Bogota, ruling Conservative Party of President Belisario Betancur a former stronghold of New Liberalism. Samper, who pub­ taking 37.5% (2.4 million) and the dissident New Liberalism licly admitted to taking mQney from self-confessed Nazi co­ wing of the Liberal Party garnering a pathetic 6.9o/c (440,000 caine trafficker Carlos Lehder in 1982 as a down-payment votes). Abstention was more than 50%. for drug legalization under a new Lopez administration, won And yet the percentages are not nearly as frightening as his bid for a Senate seat and is expected to be offered a the story behind them. In case after case, the most blatantly ministry in a Barco administration. He is also rumored to be pro-drug, mafia-allied forces of the Liberal Party were elect­ the next presidential hopeful of the "official"Li beral Party . ed, re-elected, or strengthened in their congressional posi­ The list goes on. Ernesto Lucena Quevedo, who joined tions. with known mafiosiin a sJear campaign against Lara Bonilla Exemplary is the case of Jairo Ortega RamIrez, who was shortly after the anti-drug .fighter took office as Justice Min­ reelected to the Chamber of Representatives for Antioquia ister, was reelected to the Chamber as representative from provinc,e . Ortega RamIrez is the congressman whose 1982 Cundinamarca (Bogota) province. Alfonso Gomez Mendez, electoral campaign was funded by cocaine king Pablo Esco­ the defense lawyer of fugitive narco-financer Jaime Michel­ bar Gaviria in exchange for picking Escobar as his "alter­ sen Uribe, was elected to the Chamber from Santofimio's nate," and thereby providing the drug trafficker with parlia­ home turf of Tolima. Rafael Forero Fetecua, the frontman mentary immunity. Escobar, his immunity finally lifted by a who took over the stocks bf imprisoned drug trafficker Gil­ vote of Congress last year, is now a fugitive from justice, berto Rodriguez Orejuela in the Colombian Workers Bank, wanted for his role in the April 1984 slaying of former Justice a money-laundry , when things got too hot for Rodriguez Minister Rodrigo Lara Bonilla. Ortega RamIrez was also an inside the country , was e�ected to the Bogota city council. announced enemy of Lara Bonilla. Guillermo Plazas Alcid, ohe of the bitterest enemies of Lara Reelected to the Senate was Alberto Santofimio Botero, Bonilla in his home provi�ce of Huila, won election to the from Tolirna province. Santofimio Botero has repeatedly been Senate. accused, tried, and found guilty of a range of fraud and other Outside of the "official" Liberal Party itself. the self­ ' shady dealings, but the Colombian government has never proclaimed witch Regina I I-whose suc�ess in manipulat­ been able to keep him behind bars. Members of his faction ing the cultural pessimisrri of the Colombian population was within the Liberal Party include some of Colombia's most won her a mass-based "Metapolitics" movement-got her­ notorious drug criminals, such as Pablo Escobar. This faction self elected to the Chamber of Representatives as well. was repeatedly denounced by Lara Bonilla as a haven for the The drug mob and its political front-men had been dealt mafia.Not only has Santofimio's "base" in Tolima managed a number of devastating "lows during the Betancur admin-

46 International EIR March 21, 1986 istration, due in large part to the courageous anti-drug battle ideal model for his "campaign of moral renovation" in the waged by Rodrigo Lara Bonilla during his short nine months Alan Garcia presidency of neighboring Peru, where drugs, as justice minister. Lara Bonilla's brutal murder at the hands corruption, and internationalus ury have become the burning, of mafiaassa ssins spurred President Betancur into intensify­ personal concern of every honest Peruvian, thanks to Gar­ ing that battlt:, despite threats and blackmail from the inter­ cia's leadership. national bankers whose financialin stitutions are centered on Yet, having waged a lackluster and "symbolic" protest usury and laundering the proceeds of the drug trade. campaign, Galan's New Liberalism was predictably smashed And yet, the drug-linked oligarchic forces in both his at the polls. Responding to the official results, Galan called own and the opposition Liberal Party joined forces to make a press conference at which he lamented that "the nation has certain another "maverick" like Betancur would never again chosen a different path from that proposed by New Liberal­ attain the Colombian presidency. Former President Lopez ism," and announced the withdrawal of his candidacy for the Michelsen imposed the oligarchic puppet Virgilio Barco as presidency, leaving the fieldto Barco and Gomez. Liberal Party candidate , and Alvaro Gomez Hurtado-son A triumphant Lopez Michelsen rubbed salt in the nation's of the despised former dictator, Laureano "the Monster" wound by claiming that Galan defeat was the result of "an Gomez-by calling in his chips among the various Conser­ excess of morality for political ends" and that the Colombian vative Party factions to take that party's presidential nomi­ population was only demonstrating its "fatigue with the Mes­ nation. sianism practiced by New Liberalism." Lopez and Gomez were universally known as La tenaza The other half of "the pincer," Alvaro Gomez Hurtado, ("the pincers") during the 1974-78 Lopez administration, for responded to the news of Galan's withdrawal from the race their not-so-secret alliance which handed the country over to with crocodile tears, offering to take up Galan's mantle: "It the drug mob in return for the so-called "marijuana bonanza" would be a pity if the banners of renovation and moderniza­ that boosted Colombia's foreign reserves ...and "creditor tion of politics were abandoned. As I have always been be­ confidence. " yond the parties, I propose to defend these banners."

The third party option International ramifications The dissident candidacy of New Liberalism's Luis Carlos When Betancur steps down from the presidency this Au­ Galan was the natural successor to the "supra-party" national gust, it will matter little whether it is Barco or Gomez who movement that swept Betancur into office in 1982. New succeeds him. Under either presidency, Betancur's hard­ Liberalism was founded as an explicitly anti-Lopez political fought commitment to a "non-aligned" foreign policy will be tendency within the Liberal Party, and became a genuine abandoned posthaste. The Contadora Group, inspired by Be­ force to be reckoned with at the point that Lopez's overtly tancur in his desire to promote an Ibero-American solution to treasonous alliance with the dope mob triggered a wave of the Central American conflict, has "been repeatedly de­ disgust within the Liberal Party's mass base. nounced by the "official"Lib erals and by Betancur's enemies Lara Bonilla had been a prominent force in the New within the Conservative Party as "moribund," "inadequate," Liberalism faction, and had represented the best of the anti­ and "inappropriate." drug patriots who had gravitated to that movement. New Needless to say, Betancur's anti-drug offensive will be Liberalism made a strong showing during the 1984 congres­ quickly reversed. The drug mafia's 1984 offer to repatriate sional elections, especially in the capital city of Bogota, and their ill-gotten gains in returnfor a formal "amnesty"-une­ the basis clearly existed for turning his movement into an quivocal ly rejected by President Betancur-will no doubt anti-oligarchic third party with a shot at keeping the presi­ come up for reconsideration under the next administration. dency in the hands of nationalists. The project to legalize drug production and export, promoted However, abandoning the path forged by his slain col­ for years by Lopez Michelsen's "number-one boy" and Lib­ league Lara Bonilla, Galan ran a tepid campaign with lots of eral Party presidential hopeful Ernesto Samper Pizano, will moralizing but little content. His critique of the lbero-Amer­ doubtless be revived as well, with devastating implications ican debt crisis never went farther than vague attacks on for the entire continent which has only lately begun to fight "imperialism," and the critical issue of drugs and drug-relat­ back against the drug mob. ed corruption was put on the back burner. Worse still, he Finally, the important, if behind-the-scenes, backing that joined with Lara Bonilla's worst enemies in denouncing Pres­ the Betancur governmenthas been able to give to Peru's Alan ident Betancur's courageous and principled handling of the Garcia in his vanguard battle with the international debt col­ narco-terrorist siege of the Justice Palace last November, in lectors and their junior partners in the dope mob, will vanish which over 100 people were killed and the nation's legal with a Barco or Gomez administration in Colombia. Without archives destroyed. Garcia and with a drug-backed Barco or Gaomez ruling in Had Galan but chosen to do so, he would have found the Colombia, prospects for the region would be grim indeed.

EIR March 21, 1986 International 47 Is the State Department considering its 'Abu Ghazala option' for ,Egypt? by a Cairo insider

Several weeks afterward, there has still been no satisfactory to-state relationship. or has Washington become another name answer to what really happened in Egypt on Feb. 25, when for the International Monetary Fund? some 8,000 security policemen went on a rampage in Cairo Mubarak's first steps d�ring and after the riots concen­ and, simultaneously, in Upper Egypt and some other Egyp­ trated on solidifying the power structure of the government. tian cities. Many theories have circulated to explain the riots, At least half a dozen intelligence chiefs who had visibly failed which killed several hundred people caused millions of dol- at their task were demoted to posts closer to their actual lars worth of property damage. . qualifications such as "data, and documentations" or "finan­ The riots were not stopped until March I, when, after cial and administrative affairs." Paying the fu ll price was several days of direct military intervention, the last rioters, Interior Minister Maj.-Gen. Ahmad Rushdi. who was re­ besieged in a military base at Heliopolis near Cairo airport. placed on Feb. 27 by Maj.-Gen. Zaki Badr. A close associate surrendered. Were these part of an elaborate , orchestrated of Mubarak , Badr was governorof the Assiut province and plot within or outside Egypt? Were they a spontaneous revolt has been considered successful in dismantling the Islamic brought about by the intolerable living conditions of these fundamentalist network in his region. conscripts? Or were they a dry-run for a much larger opera­ When confronted with the riots the evening of Feb. 25. tion yet to come? Rushdi. who had provided no advance intelligence. also Speaking before the national parliament on March 8, proved unable to stop the riQts' spread. By the early morning President Hosni Mubarak, who was supposed to give a final of Feb. 26. the army of Defense Minister Abu Ghazala. and comprehensive report on those behind the riots, diplo­ which had worked on con�ingency plans during the night. matically avoided these questions. There was no proof of an was ordered to move in with tanks and artillery . Though the orchestrated plot by either foreign-based or Egyptian-based army is credited with having restored order. it nonetheless fundamentalist organizations, much less communists. he took close to three days to totally end the rebellion. stressed. He then dismissed as preposterous the Syrian claim Similarly. just prior to his speech at the parliament, Mu­ that the revolt had been a popular expression of rejection of barak authorized a purge affecting no less than 21.000 mem­ the Camp David treaty with Israel, rightly judging as not bers of the 300,000 strong security force. conscripts and worth mentioning the Syrian claim that the revolt came in officers alike . The central Security police force. whose con­ support of "Arab national martyr Abu Khater"-the police" scripts rebelled, was originally created by Nasser in 1967, man responsible for the death of six Israelis in the Sinai, and expanded by Sadat after the 1977 food riots. as a par­ condemned to life imprisonment, who then committed sui­ amilitary security force. Most of its members are conscripts cide. from the countryside who. because they serve for at least Mubarak, whose government had hinted on Feb. 26 at three years, are chosen by themil itary leadership to serve in "foreign involvement" in the rioting, now concentrated on that particular force. (Univ¢rsity graduates and students only the economic basis for such rioting, such as the soldiers' serve one-and-a-half years .) appalling living conditions. Eagerly awaited, Mubarak's The rioters obviously had no chance of overthrowing the speech did little to clear the political atmosphere. Everybody government. and this was obviously not their aim. However, knows that something much larger was and is at stake. contrary to what Mubarak told the parliament, the rapidity with which the riots expandCd nationally indicates two things: Plots and purges first, that preparation for the revolt had gone on for some The political drama behind the riots is being played at time prior to the riots; and second, that however small, a several levels. There is Egypt's internal political and eco­ network existed to coordimlte the explosion. nomic situation. There is the relationship with Washington There is little chance that the network was a communist which is becoming stranger each day. Is it based on a state- one, given the low popularity communists generally enjoy in

48 International EIR March 2 1, 1986 Egypt, in the countryside in particular. It was almost certainly satisfied by the progress of "economic reforms" within Egypt. a religious fundamentalist network. It was not by chance that That meant that three-man teams from the InternationalMon­ one of the first targets of the rioters was Turah jail. to release etary Fund, who visited in December 1985 and again in early the Islamic fundamentalist prisoners. 1986, left, having failed to force the Egyptians to implement How is it possible that Egyptian intelligence failed so their recommendations. If the Egyptian authorities had for­ miserably to notice that such planning was under way? gotten them, Murphy re-stated them bluntly: Egypt has to Admittedly, one of Egypt's problems is that it has too impose an "agricultural pricing reform," i.e., end basic food many officialint elligence services-not counting the private subsidies; it has to curb imports to free foreign exchange for ones-and that they spend much time neutralizing each other debt service; it has to push ahead with the "open door" policy or running operations against each other. Within such intel­ initiated in 1974, opening its economy to foreign takeover, ligence warfare , any particular department or service could etc. Murphy arrived in Cairo authorized to disburse some have allowed such an operation to develop. The question is $150 million, and then, incredibly declared, "We do not want why . to get into an IMF-type of relationship with Egypt." The Feb. 25 riots can as well be considered a warningto One of his aides, according to the Financial Times of Mubarak's regime as a dry-run operation. Though Mubarak's March 12, was blunt: "U.S. assistance programs ...don 't prestige did not suffer much, the star ofhis ambitious defense last forever. You have got to take advantage of them while minister, Abu Ghazala, rose high. you have got them!" Is Washington seriously considering Coinciding with the intervention of the army on Feb. 26, cutting aid to Egypt? a well-orchestrated press campaign began abroad, contrast­ No need to dive into conspiracy-theories to see the old ing the "uninspiring leadership of President Mubarak," to pattern. First, an IMF team visits Cairo with outrageous, quote the Wall Street Journal of the following day, to the genocidal demands. Then, the United States withholds eco­ "pretty sight" of the new "strong man," Abu Ghazala, to nomic assistance. Then, a large-scale military revolt erupts. quote the London Economist of March 8 and several Ameri­ Fourth, an American team arrives with a little money and a can media. lot of threats, asking for more reforms. What does it mean? By Feb. 28, the French daily Le Matin ran a "scenario A"k Prp.sicip.ntMar cos . which could happen in the next few days: ...Marshal Abu The United States has also cut aid to certain vital projects. Ghazalah announces that President Mubarak has been dis­ For example, it has adamantly refused to get involved in missed, and that the army has taken over. In the name of the providing Egypt with its first badly needed nuclear-power people, Abu Ghazala would try to save the regime by sacri­ plant. To have been signed last October, the contract with ficingthe President. . . . " either the West German KWU or the American Westing­ Such scenarios have circulated widely abroad, and are house has had to be postoned to the end of June, as Cairo openly talked of in Egypt itself. The desire of this "Egyptian desperately seeks financing. If such a project is scrapped, it Ariel Sharon" to be named vice-president, i.e., Mubarak's is Egypt's entire strategy of developing the desert, of creating successor, "should anything happen," is legendary. In the new towns and new irrigated lands, which goes down the last cabinet shuffle, he was appointed a mere deputy premier. drain. Without such projects, Egypt's growing population, What cannot be legally achieved, obviously has to be done branded its "problem number-one" by Egypt's enemies, will in other ways. becomea problem in fact. As Egyptian observers remarked, it is within such a The State Department option framework that the rivalry between Mubarak and Abu Gha­ Aside from the clear differences in "style" between Abu zala takes on particular meaning. Abu Ghazala's position has Ghazala, who has imposed a fundamentalist chador [black been described as very comfortable these days. Mubarak is robe] on his wife for a year and half, and the more cautious the President, he is the one who takes the blame for every­ Mubarak, who shuns any personality cult, what would be the thing, and if large-scale riots erupt again, his army will ap­ political differences between a Mubarak and a Ghazala re­ pearas the saviors. gime? Abu Ghazala, a former military attache in Washing­ Upon the advice of the State Department, Egyt>tian insi­ ton, is as pro-American as Mubarak. While Mubarak'smil­ ders these days are reportedly reading a set of officialdocu­ itarycareer is certainly more prominent than Abu Ghazala's, ments from the American archives of the 1949-52 period, both had the same kind of training between Egypt and the which detail how Washington decided to stop supporting Soviet Union. King Farouk, and began favoringthe army. The answer lies in Washington. This was blatantly under­ Mubarak is only ready to go so far in implementing "eco­ lined during the March 10 visit to Cairo of U.S. Undersec­ nomic reforms," and knows that implementing the full IMF retary of State Richard Murphy, who delivered an ultimatum program would depend on the imposition of a harsh military to Mubarak. Washington had unilaterally withheld since Oc­ dictatorship. He is not ready to go that far. Abu Ghazala tober some $265 million of economic aid, because it was not apparently is.

EIR March 21, 1986 International 49 that parliamentarians cannpt be held for prosecution when Profile: Kriangsak Chamanon parliament is in session. Requests by police and other inves­ tigative officials to hold MPs in other cases, have always been turneddown by the courts. The prime minister from 1978 to 1980, Kriangsak found How State Department himself a target of the samt Kissinger-tutored State Depart­ ment operatives that destabilized the Philippines. targeted Thai patriot He was prime minister of Thailand, one of the most important logistical bases for the Vietnam War, during the by Linda de Hoyos periodthat Vietnam invaded Cambodia. Throughout his two­ years in office, he followed a different foreign policy for ASEAN than that of the Carter administration. In keeping The appeals court in Bangkok on Feb. 17 finallygranted bail with the policy of strate�c withdrawal from the Pacific, to Gen. Kriangsak Chamanon and four other generals on trial under cover of Kissinger's China Card, the United States on conspiracy charges for the Sept. 9 aborted coup in Thai­ refusedto honor its peaceagreements with Vietnam, denying land. The ruling from the appeals court overturned previous the country development aid and diplomatic relations. The refusals by the courts, under pressure from the government objective was to force conditions of permanent instability in of Prime Minister Prem Tinsulanond, to maintain Kriangsak the region, a project made 'easy by the wild provocations of and his high-ranking co-defendants in jail during the trial the Chinese-backed Khmer Rouge. In February 1979, the proceedings. world was brought to the brink ofwar with Vietnam's inva­ The appeals court, however, stipulated, that the five have sion of Cambodia and China's attempt "to teach Vietnam a their passports rescinded to ensure their stay in the country; lesson." that they not exercise their political influencesand be watched Kriangsak did not follow the Carter "line." Instead, stat­ 24 hours a day by police from special branch; and they not ing that Thailand would seek its own independent foreign do anything that might influence the court's decision on the policy, he worked with Foreign Minister Upadit Pachari­ coup. yangkul to build bridges to the Indochinese countries, partic­ The release of the five came after a building campaign of ularly Vietnam and Laos. This remained his foreign policy pressure against the jailing of Kriangsak, an unprecedented throughout his tenure as chairman of the parliamentary for­ action in itself. In Thailand's coup-fraught postwar history , eign relations committee, and in 1983, Kriangsak headed a it is customary for the military to handle discipline for sus­ parliamentary delegation to Vietnam. The crux of the policy pected failed coup plotters. In this case, the Kriangsak trial is that Thailand has no real quarrel with its quarrelingneigh­ was taken into a' civilian court and Kriangsak was summarily bors, including Vietnam, and that the polarization of the jailed, along with four other senior active officersand retired region, encouraged by superpower geopolitical strategies, is generals. detrimental to all the SoutheastAsia n countries. EIR reported, based on sources in Thailand and Washing­ Kriangsak also came into office with a list of 14 industrial ton, that Kriangsak's incarceration was a result of pressure and infrastructural development projects', that quickly earned from Henry Kissinger, who reportedly told Prime Minister the disapproval of the Wotld Bank. A World Bank mission Prem in New York at the end of September that Kriangsak in Thailand in July/August of 1979 demanded that the proj­ "is dangerous and should be eliminated. " The EIR revelations ects be scrapped, along with low import tariffs on capital caused a storm in Thailand, and during a November stopover goods, because such a pdlicy was capital- and not labor­ in Bangkok, Kissinger was hounded by the press corps on intensive. The World Bank had only a few months to wait the issue. before Prem, defense minister under Kriangsak, had taken Although Kriangsak himself in October gave credence to over, bringing into the government a whole array of techno­ the story by referring to it in an interview with Asia Week. he crats centered in the Natidnal Economic and Social Devel­ has since publicly denied both the EIR and Asia Week stories. opment Board. In January, the Far Eastern Economic Review also published Morton Abramowitz, ambassador to Thailand during a report that General Kriangsak was seeking international Kriangsak'sprime mini steltShip, played a key role in Kriang­ support for his release, especially from Japan. The General sak's ouster. Only two weeksbefore Kriangsaklost a vote of also denied this story. confidencein the parliament, he was visited by Abramowitz, What is clear, however, is that the retention of Kriangsak, Carter Assistant Secretary of State Richard Holbrooke, and a former prime minister and respected international states­ Admiral RobertLong . Ambramowitz, now head of Research man, became a more untenable proposition. On Feb. 5, a and Planning at the State Department, is a member of the group of parliamentarians from the National Democracy Par­ "208 Committee" that just accomplished the ouster of Presi­ ty, the party Kriangsak founded, asked the court to release dent FerdinandMarcos in the Philippines and is now working him, arguing that article 121 of the Thai constitution states on Panama, Mexico, South Korea, and Indonesia.

50 International ElK March 21, 1986 bloody incidents to generate press headlines with the inten­ SouthMr ica sity of the recent Philippines speCtacle. The March 7 announcement by Barclay's Bank in Lon­ don that it would refuse all new loan requests or rescheduling of existing debts of South Africa is most ominous, and could Botha lifts the signal an unraveling of the February agreement between creditor banks and South Africa. f state o emergency The Namibia resolution Botha's Namibia proposal calls for a U.N.-supervised The March 5 announcement of South African State President election and the removal of South African Defense Force P. W. Botha that his governmentwou ld lift the state of emer­ troops, if firm agreement is reached on the removal of over gency and is ready to implement United Nations Resolution 30,000 Cuban troops from Angola. Some 50% of the popu­ 435 on Namibia, has created the conditions in which the real lation of Namibia lives within 120 kilometers of the Angolan intentions of the major powers involved in the region will be border. Standing between the Angolan army, the Cubans, exposed. If the U.S. State Department and allied banking and Namibia is the operational area of Dr. Jonas Savimbi's circles in the West push ahead with economic sanctions against pro-Western UNITA. Any settlement of the Namibia prob­ South Africa, it will become obvious to all that they never lem would also require a settlement in Angola acceptable to intended a peaceful settlement in the region. The Soviets, on UNITA. the other hand, will now be forced to escalate their own drive The crux of the problem is that the Soviets are only to explode the southern African tinderbox with terrorism and interested in seeing, not the destruction of apartheid, but the military operations. destruction of South Africa as a Western ally. Successful By liftingthe state of emergency, Botha removed one of motion towards Namibian independence and constitutional the major obstacles to the participation of black leaders in reform in South Africa removes their justification for being negotiations with the government, along the lines of his re­ there and their standing in the eyes of the Organization of cent speech to Parliament, in which he invited black partici­ African Unity (OAU). pation in a National Statutory Council. The difficultyof black As long as the Soviets and Cubans are firmlyent renched leaders' doing so, without fear of losing their base to the in Angola, those war-weary elements of the Marxist govern­ violence-oriented elements of the United Democratic Front ment who might incline to negotiations with UNITA risk (UDF) and the African National Congress (ANC), has been death if they even utter such thoughts. a major problem for those in Botha's government and Na­ Botha has proposed Aug. I as a target-date for a pre­ tional Party who are committed to negotiated constitutional agreement on the Cuban-troop issue and subsequent imple­ reform to end apartheid. mentation of U. N. Resolution 435. Before that date, how­ The townships have calmed down to a significant degree, ever, comes the April/May end of the rainy season, and the with unrest localized. The recent Alexandra Township riots expected beginning of another Soviet- and Cuban-command­ were started by provocateurs from outside the Township. Of ed Angolan offensive aimed at driving UNITA out of its base course, once the first clashes with the police took place, in southeast Angola. Heavy use of Angola's Soviet-equipped events took on a life of their own. air force is expected. Soviet supplies have been built up at The problem for the authorities is how to protect black three staging areas in preparation for a three-pronged offen­ councilors and other officialswho live in the townships from sive. being assassinated. Upwards of one-third of the 757 deaths The South Africans are quite aware that the Soviets have during the state of emergency were victims of roving assas­ it within their means to sabotage the new Botha intiative. If sination gangs. The clear object of the ANC terrorists has they do, then Resolution 435 is dead, and the South Africans been to destroy the town government structure, which mod­ will unilaterally supervise Namibia's independence. The So­ erates intend to be the vehicle for regional cooperation with viet-backed Southwest Africa Peoples Organization (SWA­ the white city and state governments, overcoming the eco­ PO), by their own choice, will have nothing to do with this nomic and administrative anachronisms of apartheid. independence. Zulu Chief Mangosuthu Buthelezi is exemplary of the As those in the West committed to furthering Moscow's black moderates, an outspoken opponent of apartheid, but ambitions in the region begin raising their voices for sanc­ supportive of peaceful moderates, an outspoken opponent of tions, the Botha government will have to consider its most apartheid, but supportive of peaceful negotiations and indus­ formidable weapon, the "debt bomb." The potential for both trialization as the key to South Africa's future. South Africa, and those black Africans suffering under Inter­ If a consensus emerges in the West for sanctions in the national Monetary Fund policies, to recognize their common next few months, as ANC and UDF leaders are loudly de­ interest in breaking the power of their mutual enemy, will manding, then their internalta ctics will be aimed at creating then become the crucial factor.

EIR March 21, 1986 International 51 Vatican by Augustinus

Liberation Theologists are gleeful can in November: "a pharaonic sym­ After the Philippines coup, there is an open fight over economic posium," writes the article's author. policy-and the outcome is still uncertain . He certainly was not there, or he would have known that the echo from that meeting did not come from its gran­ diosity, but from the speech Cardinal , Ratzinger made against Marxism and Perhaps no man of the Church which. not by accident, helped bring free-m�rket economics, and for re­ pushed himself so far back to medie­ Aquino to power. concilirigecon omics with morality . val times as the Filipino Cardinal Sin. Baget Bozzo spilled the beans: Ratzinger's economic views He declared one President legitimate "Cardinal Sin has achieved on the seemedI to have been shared by Opus and deposed another." With this en­ practical level precisely those results Dei. O�e of their spokesmen, Father thusiastic statement, Gianni Baget of the Church's direct engagement in Antonio Livi, summed up to a jour­ Bozzo, the friend of the Theology of society which Cardinal Ratzinger con­ nalist from a Milan newspaper: "Nei­ Liberation priests, commented in the demns on the theoretical level." And ther Marxist state capitalism, nor the press on the role played by Cardinal it is against Ra�zinger and his recent capitali$m of 'hard ' free market eco­ Sin in the recent coup d'etat in the stances against free market economics nomics.; attains the common good. The Philippines. Baget Bozzo gloated: that everyone is now raging. Part of former,' because it strives for the he­ "What Sin has carried out in the Phil­ the strategy is the attack on the Opus gemon), of one class over the other ippines, with the Vatican's consen­ Dei order kicked off by the weekly with the vision of an abstract, atheis­ sus, goes beyond everything that the /' Espresso, by printing revelations tic. and totally impersonal society; the Theology of Liberation has dreamed from a book released last year, by latter, because it determines the con­ of. " Paulist Father Giancarlo Rocca. centration of wealth in a fe w hands, Baget Bozzo, an ex-priest and So­ Accordingto /' Espresso. Opus Dei making, capital hegemonic over man. cialist Party figure, plunges into bold is run by secret statutes or rules which The op timum is a capitalism which prognoses: "Afterthe deeds of Cardi­ "establish members' access to high of­ conceives profit as a means to reach nal Sin, the Church can change much fice, in particular in administration, as the common good." Father Livi calls more: perhaps also in the Roman Pon­ a peculiar means of attaining social for a state policy of incentives for pro­ tificate . What we see enacted in the goals, and tie them to obedience to ductive ,investments. and protection of Philippines is a form of primacy of superiors in the association's hier­ citizens' lives through good public action over theory .... The Cardi­ archy." The expose prompted Inde­ services. nal's choice remains an event which pendentLeft parliamentarians Franco The Theo-lib crowd is gloating marks the Church and history . " Bassanini and Stefano Rodota to put a over thJ recent victory in the Philip­ For this fantasy-ridden rebel parliamentary question to the premier pines. t)ut in a few months. when the "priest," Cardinal Sin is the modem and interior minister, as to whether situation explodes due to the unpaya­ reincarnation of Pope Boniface VIII, Opus Dei is an illegal secret society. ble Philippine debt. they will have to whom the poet Dante Alighieri justly The two deputies also asked the gov­ admit that those who today have the put among the damned for simony in ernment to start inquiries into the na­ courage to condemn the usury of the Hell. For others, he is just the latest ture , purposes, and possible secrecy big international financial institutions opportunistic servant of the multiple of Opus Dei. were right. For Cardinal Sin's Jesuit interests that wanted to bring Mrs. The real source of the attack is friends l if they lose the fight. there's a ' Aquino into the government of that clarifiedby the magazine itself, when spot w �iting in Moscow. A Russian key Asian country. But Baget Bozzo it labels Cardinal Ratzinger as Opus Orthodox Church spokesman told a leaked important aspects of the new Dei's strongest ally. According to Roman newspaper: Pope "Wojtyla destabilizing plots of the Theo-Iib­ l' Espresso. Opus Dei has no financial may want to ruin the Society of Jesus bers: Sin's victory will be used to at­ problems, unlike other Catholic or­ and replace it with Opus Dei. but the tack groups inside the Church fighting ganizations; it managed to organize an lesuits could take refuge in Russia against the genocidal monetary poli­ international meeting on the Church again, as they did in Catherine the cies of themajor financial institutions and the Economic World in the Vati- Great's ,time . "

52 International ElK March 2 1 , 1986 Report from Bonn by George Gregory

Another SDI delegation to Washington Womer might discuss with Caspar The German defense communityis waking up to the fa ct that it's Weinberger; the only path fo r survival-but no Easter SDI deal is likely. Bonn defense ministry sources freely admit in background discus­ sion, that the guidelines Genscher has worked out for the commercial nego­ T he prospects for the long-post­ in as many months. Such delegations tiating team are nonsense. poned birth of an Strategic Defense demand time, patience, good-will, . The Schomerus group was in­ Initiative agreement between Bonn and hospitality, openness, respect, and censed on its first tripto Washington, Washington by the Easter holidays are above all, trust of the SOlO. because the Pentagon resists letting not good. No better, in fact, than they All that is leftover after these de­ West German firms have the utiliza­ were for the agreement promised be­ mands have been met is petty mind­ tion rights to results of research in a fore Christmas 1985, nor in the weeks edness, a lack of a grasp of strategic U. S. SOl contract. Bonn's foreign following the visit of a West German realities, and impertinence. The Bonn ministry would like to be able to "in­ delegation led by Horst Teltschick in defense ministry knows that the SOlO fluence"the development of SOl, but the Fall of 1985. To tell the truth, the is getting tired of West German dele­ does not want to be "involved" or di­ prospects foran SOl agreement are as gations who "never seem to know what rectly "participate" in SOl, which is miserable as they became after that they want." "purelyan Americanprogram ," as they famous Bonn National Security Coun­ The new delegation led by Schom­ insist. Bonn's foreign ministry says cil resolution of Dec . 18, 1985, which erus apparently has "new negotiating Bonn doesnot want to put money into sent Economics Minister Martin Ban­ guidelines." But for any guidelines to SOl, and that money = "participa­ gemann off to Washington to fall on be "new" would require a real power tion," but Bonn'sfo reignministry does his nose when he tried to treat SOl as shift in Bonn. Foreign Minister not want to "participate," whether it a subsumed commercial project Genscher is more committed to mod­ costs money or not. embedded in a general "technology ernizing the Soviet economy than he What all of i'hisnonsense ignores, cooperation agreement." is to stable defense and the effective­ say the defense ministry people, is that Bangemann, it became known at ness of the U. S. security guarantee for the United States already gave away that time, considered the SOl accord Western Europe. Washington will enough technical information"to filla an odious business. Its only saving have taken note that a West German five-year information gap," which is virtuewas , that it monopolized the po­ delegation flewoff the same week in worth several hundred million, if not litical and strategic dimensions of the opposite direction, to Moscow, billion, Germanmarks . This was a gift Bonn's treatment of SOl in the hands where-one hears-West German made to the delegation last year under of liberal Free Democratic Foreign Special Ambassador for Disarmament Kohl's securityadviser Horst Teltsch­ Minister Hans-Dietrich Genscher. Ruth was told that Moscow will not ick. This fact is contained in confiden­ Free Democrat Economics Minister let East German leader Erich Honeck­ tial reportsto the Bonn cabinet by the Bangemann was actually spending er visit the Federal Republic until the Teltschick group. There is speculation most of his time granting new Federal SOl is dropped from Bonn's strategic in the defense community in Bonn, Export Guarantee coverage for up­ agenda. That is a point of view For­ that Genscher has insisted these re­ coming mega-mark deals with the So­ eign Minister Genscher is known to ports remain confidential, because that viet Union. sympathize with. enhances their value as a bargaining Nevertheless, in the first week of Reportedly, Genscher will use his chip in hiS pocketin dealings with the March, the negotiating team led by persuasive powers with u.S. Secre­ Soviets. It is suggested by those who Bonn economics ministry assistant tary of State George Shultz directly in speculate on such matters, that the So­ undersecretary Schomerus flewoff to an effort to produce some kind of SOl viets in tum find Genscher's use of Washington for the second time in two agreement (compared here to two lib­ those confidential reports in that way weeks. That adds up to fiveor six big eral mules trying to impregnate each even more useful to them than learn­ West Germandelegation s, scientific, other). Once that power play is con­ ing the various technical specifica­ industrial, military, and foreign poli­ summated, it is difficult to imagine tions of equipment contained in the cy personalities, visiting Washington what West German Defense Minister reports.

EIR March 21, 1986 International 53 Dateline Mexico by Hector Apolinar

Faction fightover drug trafficking ora Governor Samuel Ocana Garcia. For thefirst time in Mexican history, ajudge is suspended based The deqision to give the island back to on charges from another branch of the judiciary. the Ca�elos-one of whom, Javier, ran for mayor of an important Sonoran city on !the party of the drug-linked, Nazi National Action " Party-was drawn up by Supreme Court magis­ trate Fernando Castellanos Tena. In 1982, Fernando Castellanos Tena, at the time inspector-general in Sonora, On March 7, AttorneyGeneral Ser­ legal, he didn't inform the Federal was acdused of receiving special fa­ gio Garcia Ramirez launched a sur­ Public Ministry of his decision to re­ vors from Biebrich. The press de­ prise counterattack on the networks lease Herrera. scribed im orgy sponsored by Biebrich protecting drug traffickingin Mexico, Attorney General Garcia RamI­ and his I:ronies in Sonora. when he asked the Supreme Court of rez's unexpected action clearly ruffled Bie�rich was the Castelos' lawyer Justice to suspendJu dge Jose de Jesus certain magistrates' feathers. Mariano in the island case, and charged a fat Taboada Hernandez, as magistrate of Azuela, top magistrate of the Supreme lOO-mHlion-peso fee. Also, Biebrich the Unified Circuit Tribunal in the city Court, told the press on March II that, is Pietre) La Greca's lawyer, in a suit of Torreon, Coahuila, because he re­ although the action was justified to which t�e AttorneyGener al's office is leased Jaime Herrera Herrera and 15 prevent the unremovability of judges bringing for illegal trafficking in dol­ of his top lieutenants who were in jail from being used as immunity, such lars . TlVough their companies in Ti­ on charges of being one" of the biggest decisions must be "very thought out, juana, the Grecas laundered drug gangs smuggling drugs in Mexico. cautious, to keep from spreading the money. Last July, Herrera and his gang fear that it will make judges lose their At the same time, Jose Biebrich, were arrested by Gen. Rodolfo Reta impartiality . " the former governor's brother, has Trigos, commander of the IX Military In reality, the Attorney-General's been fingered as a drug runner by a District, as heads of a top international corrective a<;tion will have a positive former official of the Attorney Gen­ drug ring headquartered in the state effect on judges, to make them more eral's office. Biebrich is also a close capital of Durango, with branches in rigorous and careful. Two Supreme friend and admirer of former U. S. Colombia, Peru, Ecuador, Central Court decisions in the last month have Secretary of State Henry Kissinger, America, Mexico, and the United been flagrantly more political than ju­ with whom he had contact through States. The Herrera family was one of dicial; both involve the far-flung ten­ former Arizona governor, Raul Cas-

the seven that run the drug trade in tacles of former Sonora governor Car­ tro . 'i Mexico. los Armando Biebrich, whose ma­ As far as Jaime Herrera's case The same day, an extraordinary chine intersects some of the dirtiest goes, thie situation is serious, since he plenum of the Supreme Court met to networks in Mexico. In February, counts on political backing within a review the Attorney General's re­ Judge Mariano Azuela himself was sector of government, both on the state quest. After a four-hour tug of war, scored in the press for his decision to and fed4ral level. Agents of the Attor­ the body removed Judge Taboada exonerate Biebrich from the embez­ ney Ge�eral are now looking into all Hernandezfrom his job, so that he can zlement charges that the government of the Herreras' properties in the state. be investigated and prosecuted for of the state had brought against him in What they have discovered is that the collaboration with drug traffickers. 1976. Azuela is accused of basing his capital city of the state of Durango The judge had behaved outrageously. decision on his close association with almost qelongs to him. The city is ruled At the beginning of February he was Interior Minister Manuel Bartlett Diaz, by the National Action Party. Unoffi­ namedju dge in Torreon; 20 days later, also an intimate of Biebrich. cially tile currentgovernor of Duran­ on Feb. 27, he ordered the release of Biebrich was also the beneficiary go, Armando del Castillo Franco, is the ijerrera gang. At this point it be­ of a second Supreme Court ruling in not far :from Jaime Herrera. At the came obvious that the naming of Ta­ February, ordering that Huivulai is­ same time, Herrera controlled most of boada Hernandez in this circuit was land be returned to the wealthy Cas­ the state's "private sector" through preordained to release the Herrera telo family, and rescinding the expro­ constniction companies, hotels, banks, gang. His orders were so blatantly il- priation order issued in 1982 by Son- resorts, �abarets. discos, and more .

54 International EIR March 21, 1986 From New Delhi by Ramtanu Maitra

A streamlined budget This year, the budget was a bit of Cumbersome and counterproductive regulations have been a disappointment from that stand­ removed, and major allocations introduced to alleviate poverty. point. In fact, the Long-Term Fiscal Pol­ icy (LTFP) issued by the finance min­ istry last December, has already set the tone for the budgets of at least the next few years. While it calls for abo­ lition of surcharges and surtaxes on corporate profit, it also categorically states that personal and corporate tax T he budget presented to parliament ment sector in 1986-87, with another rates would not be changed for the on Feb. 28 by Indian Finance Minister $6. 15 billion in assistance to the var­ next fiveye ars and only simplification V. P. Singh is another step in the pro­ ious states and union territories. The ofthe tax structure was promised. The cess of simplifying policy and ration­ total budgeted expenditures for 1986- import policy, a subject of much dis­ alizing regulations and restrictions 87 amount to $26.56 billion, of which cussion here, has also been drawn up which have accumulated over the last defense expenditures account for $6.56 for a periodof three years, and import 38 years. Many of these have become billion. Interest payments on debt to of technology has been made prag­ overtly counterproductive as far as domestic banks and major subsidies matic. An attempt has been made to economic growth and rising produc­ total $4 billion, of which food-related make the industrial licensing process tivity are concerned. subsidies account for $1.5 billion. The flexible. To the surprise of populist critics budget shows a deficitof $3.3 billion. The L TFP has set to rest lots of who have popped up in the recent few So far, reactions to the budget pro­ wasteful speculation. months to charge the governmentwith posal have been mixed. It is generally About four weeks before the a "pro-business" bias, the budget also believed that the budget proposals en­ budget was presented, the govern­ awarded the highest-ever allocation to courage industrial growth and gener­ ment announced price hikes on some anti-poverty programs. ate employment. However, the indus­ agricultural commodities and petro­ At an unscheduled appearance at trialists, who enjoy many protections leum-related products, and a reduc­ the post-budget news conference tra­ and have come to believe these their tion in fertilizer subsidies. This drew ditionally presided over by ministerial right, continue to quibble about "ex­ an angry response. Typically dis­ bureaucrats, V. P. Singh claimed that cessive excise duties," and so forth. united and programless, opposition the main thrust of his budget was al­ Historically, India's annual budg­ leadership under the direction of leviation of poverty. The anti-poverty et has been wrapped in the aura of George Fernandes called for a series programs got $1.2 billion. astrological mystery . The salaried of bandhs or nationwide strikes over Another highlight of the budget middle-class awaited its unveiling , on the price increases. While press re­ was the strong package of incentives the lookout for tax relief: Industrial­ ports are contradictory, this campaign given for boosting production of edi­ ists' minions waded through the vo­ appears to have alreadyflopped . ble oil and oilseeds. Since India's im­ luminous budget items searching for There was manifestly no alterna­ portation of edible oil is draining more corporate tax breaks and changes in tive to the price increases. Fertilizer than $1 billion of forei gn exchange industrial licensing and regulations. subsidies had soared by 1 ,000% in the annually, the incentive to the farmer Everyone else generally waited anx­ last five years, and would have con­ to choose a cropping pattern has been iously for the list of freshly taxed com­ sumed 250% ofthe total allocation for welcomed widely. "We want to avoid modities to calculate the price rises it all subsidies in the next five years. a situation in which there is surplus would entail. Each year the budget Imported-petroleum consumption had wheat for export , but the country has session of parliament indulged in similarly soared. It is anticipated that to import edible oils," the finance elaborate discussion of those issues, the petroleum price hike, which will minister told newsmen. while the major outlays and alloca­ raise additional revenue of $500 mil­ A provision of $18.58 billion has tions, tne relationship of the budget lion, will reduce the annual increase been made for the Seventh Five-Year itself to the economy, and so on, went in consumption of imported oil from Plan (1985-90) in the central-govern- unnoticed. 7% to 5%.

EIR March 21, 1986 International 55 is International Intelligence

been very serious. something we cannot tol­ Radclyffe Cadman. presented proposals for Peruvian drug-pusher erate . We will fight such violations of our the joi/lt body to Constitutional Develop­ retu�ned to slammer territorial integrity with all available means." ment and Planning Minister Chris Heunis. Andersson was referring to frequent So­ The proposed Joint Executive Authority viet submarine and other incursions upon would ;bring together black leaders of thc Peruvian President Alan Garcia fired five Swedish territory and territorial waters. KwaZulu homeland and white officials of prison officialsand five top police officials which Palme had minimized . the hitherto separate provincial authorities. on March 10. in part of his continuing crack­ to deci�e on matters of mutual interest. in­ down against the drug mafia. The prison c1udin. health. education. job creati(jn. and officials were purged for having signed Witness denies Demjanjuk roads. !Both sides said the proposals would statements on behalf of Gen . Frank Twed­ save ""ney and rationalize administration . dle. who had been sentenced to 14 years in was Nazi mass murderer Buthelfzi said that many white leaders in prison for carrying 1 2 pounds of cocaine Natal say they want to go one step further into the United States. The general was let The sole Spanish survivor of the Treblinka and set! up a separate legislative body in the out of jail by a corrupt judge in January; the concentration camp. Joaquin Garcia Ro­ provin�e . judge was subsequently fired and the Su­ bles, has declared that Ivan Demjanjuk. who .. It�s a giant step towards a unified South preme Court issued a resolution that sent is now going on trial in Israel as the alleged Africa{ said Buthelezi. Tweddle back to jail. "Ivan the Terrible." a mass murdererof Jews Rabical opponents of the government President Garcia termed the Tweddle at Treblinka. is the wrong man . In an inter­ such a� the Soviet-controlled. pro-terrorist case "a scandal and a mockery of the coun­ view with the Spanish journal Diario de Sa­ Africa" National Congress (ANC) have re­ try . since it violates all ethics." He asserted badell. Garcia Robles asserted that the ac­ jected the proposal. "If the South African that Peru will not give any pardons nor tol­ tual lvan the Terrible was killed on Aug. 2 . governtnent ft:jects the proposals we are ta­ erate any shortening of jail terms for narcot­ 1943 . According to a report in the Spanish bling tP

56 International EIR March 21, 1986 Briefly

• EGON BAHR, the West German Social Democrat and architect of treaties with the Soviet Union, said in a television interview that the U . S. Strategic Defense Initiative "will not the presidency . The constitution currently partment noted a "spirit of closer coopera­ survive the current American Presi­ mandates .election by an electoral college . tion" between Mexican and U.S. officials, dent, not even the current legislative On March 8, the ruling Democratic Justice it alleged that "a serious problem has been year ....It is no longer what Presi­ Party of President Chun Doo Hwan , who lack of vigorous prosecution and follow-up dent Reagan conceived it to be." has vowed he will step down when his term at the middle and lower levels of the Mexi­ is up in 1988, voted up an amendment for can bureaucracy. " • TUNISIAN PRESIDENT Ha­ direct elections for the term to fo llow him, The report added that U . S. tourists have bib Bourguiba received a quick visit beginning in 1989. recently become "the object of harassment, from U.S. Vice-President George This did nothing to quiet the opposition, mistreatment, and extortion by persons who Bush on March 8, in an effort to re­ which commands one-third of the parlia­ represent themselves as [Mexican] offi­ pair relations, which were damaged ment. At a huge rally March II in Seoul , cials. " on Oct. 1, 1985 when President Rea­ opposition leader Kim Young Sam declared gan gave approval to an Israeli bomb­ that if President Chun Doo Hwan does not ing raid on the PLO headquarters on immediately carry out constitutional re­ Cardinal Ratzinger: Rock the outskirts of Tunis. Soviet Foreign fo rms for direct elections, as demanded by Minister Eduard Shevardnadze is the opposition, then the government will face music is anti-Christian scheduled to visit Tunisia soon. a popular revolt like that in the Philippines. Joseph Cardinal Ratzinger delivered an im­ "In the Philippines," Kim said, "all but Mar­ passioned polemic against the cult of rock • POPE JOHN PAUL II called cos emerged as victors ....If things go like Cardinal Sin of the Philippines to this [in South Korea] , however, there would music, "the antithesis of the Christian faith ," in a speech last fall which was just recently Rome and told him that the bishops be just two options left for the dictator­ reported in the press. Ratzinger is the Vati­ in the Philippines had become too in­ death or exile. " can's Prefect of the .Congregation for the volved in politics, in their stand The opposition rally was backed by a Doctrine of the Faith. against President Marcos. violent demonstration by students at the His speech before the VIII International Seoul National University , which ended in Congress for Church Music, on Nov. 17, magazine was a 4O-minute clash with riot police. • DER SPIEGEL 1985, was published in the March 3 English forbidden by a court of appeals in weekly edition of the Vatican newspaper Hamburg, West Germany from re­ Foggy Bottom turns L'Osservatore Romano. peating slanders that characterize the "We can recall the Dionysiac type of European LaborParty (EAP) as right­ the screws on Mexico religion and its music," the Cardinal said, wing extremist, anti-Semitic, CIA, "which Plato discussed on the basis of his and following conspiracy theories . The U.S. State Department will soon issue religious and philosophical views ....To­ The libel case resulted from a four­ a warning to Americans who plan to visit day we experiencethe secularized variation page attack by Der Sp iegel on the Mexico, that "there has been no decrease in of this type in rock and pop music, whose EAP and its national chairman, Hel­ serious crimes committed against Ameri­ festivals are an anti-cult with the same ten­ ga Zepp-LaRouche, in 1984. cans," reported the Washington Times on dency: desire for destruction, repealing the March 12. limitations of the everyday, and the illusion • THE HERUT PARTY of Is­ The statement comes as Mexico is being of salvation in liberation from the ego, in rael's Likudbloc broke up in disarray subjected to intensive financial pressure by the wild ecstasy of a tumultuous crowd. March 13, following the abrupt sus­ the international banks , and as Sen. Jesse These are measures which involve a form of pension of its first national conven­ Helms (R-N.C.) begins Senate hearings on release related to that achieved through tion in seven years, amid bitter fac­ alleged "corruption" in Mexico. drugs. It is the complete antithesis of Chris­ tional infighting. Chief rivals for par­ In a report to the Senate Foreign Rela­ tian faith in the Redemption. . . . ty leadership-Foreign Minister tions Committee, the State Department said "In a way which we could not imagine Shamir, Deputy PrimeMinister Dav­ that it is "concerned with Mexico's inability 30 years ago, music has become the decisive id Levy, and Trade Minister Ariel to adequately investigate and prosecute such vehicle of a counter-religion .... Sharon-exchanged verbal attacks , incidents ....For those who have the mis­ "Music truly appropriate to the worship and the convention broke up at 4:20 fo rtune to become the victims of crime and of the incarnate Lord exalted on the cross a.m., without reaching a decision on violence, action to find and prosecute the exists on the strength of a different, a great­ who willtake over the leadership from criminals responsible is often slow and too er, a much more truly comprehensive syn­ Menachem Begin. frequently ineffective ." Although the De- thesis of spirit, intuition and audible sound."

EIR March 21, 1986 International 57 TIillNational

What is wrong with the CWs Robert M. Gates?

by Criton Zoakos

On Feb . 24, 1986, the deputy director of the CIA, John the CIA. in 1983. produced ill report on thc Sovict economy. McMahon, resigned secretly, at approximately the same time stating that mismanagement. �orruption. and inefficiency had as the President of the Philippines, Ferdinand Marcos, was all but doomed the Soviet sYj;tem toan untimely death . One almost forcibly being placed in an American aircraft en route year later, in 1984 . Gatcs himself. testifying before Con­ to Guam. The man who replaced McMahon, RobertM. Gates, gress. further elaborated that the "crumbling Soviet Empire:' was, prior to these events, at the private residence of Secre­ suffers from "a perverse system of incentives I which I pro­ tary of State George F. Shultz, taking care of the final details motes inefficient behavior bY,enterprise managers and damp­ of the toppling of Marcos , together with John Poindexter, ens the introduction of new tI�chnology into thc cconomy." chief of the NSC, Michael Armacost, Richard Armitage, The implications for Unitcd Statc� security conccrns. Paul Wolfowitz and Philip Habib. The news was made public according to this "crumblin� Empirc" theory . are that thc one full week afterthe event. No explanation was given, nor Soviet leadership is embarking on "reforms:' which ind udc is the promotion of Gates necessarily connected with the the transfer of managers and rc sources from thc military to "preemptive destabilization" of the Philippines. the civilian sector of thc Soviet economy . thus diminishing The promotion ofthe 42-year-old Mr. Gates is yet another the potential Slwiet thrcat to U . S. security . calamity for the intelligence effort of the United States: Mr. EIR had occassion . in carly 191B. to doubt Mr. Gatcs' Gates, through his past contributions, has been intimately professional credcntials as the "CIA's be'st'· Sovict cxpert . at associated with one of the great disasters of American intel­ a time when EIR first cin:ulated its analysis that all Sovict ligence, the infamous "crumbling Soviet Empire" thesis, now policymak ing is determined hy the Russian-chauvinist "Third dominant in governmentthink ing. This thesis, which down­ and Final Rome" tendency. alisociated with thc military elite plays the Soviet threat to the West on grounds that the "rot­ and the Andropov-Gorbachov power combination . The re­ ten" Soviet economy is collapsing from within and that ethnic sponse. in 1983, to our "Third Romc" analysis. from Mr. and religious revolts are about to topple Soviet power, began Gates' general direction was: 1'There is no such 'Third Rome' gaining currency during 1982, the year in which CIA Director tendency; and, what is this 'Third Rome,' anyway?" William Casey made Robert Gates deputy director for intel­ Ignorance of that school Of Russian statecraft associated ligence at the CIA, and chairman of the National Intelligence with the "Third Rome" would be enough to disqualify anyone Council, which produces the National Intelligence Estimates from professional intelligenc� duties. Apparently, the igno­ of the United States Government. That was also the year in rance of the CIA's Soviet experts under Mr. Gates. was which the experienced Prof. Richard Pipes was unceremon­ somehow. protected . As the · debate between the two con­ iously kicked out of the National Security Council. to be tending analyses, "Third Rome ," versus "crumbling Em­ replaced, first by 30-year-old "Russian expert" John Len­ pire ," grew, it became obviolls that the ignoramuses at the czowski, and, later, by Carter-era diplomat Jack F. Matlock . various "analysis" desks of the CIA, were enjoying more Under the direction of Robert Gates, who, in his profes­ than protection: the protectors of the "crumbling Empire" sional circle. is reputed to be the CIA's "best" Soviet analyst, folly were engaged in a deception.

58 National EIR March 21, 1986 The matter of Leo Cherne the NSC, and his replacement by the young Lenczowski, we The crisis of U. S. Intelligence evaluations respecting the can only offer our educated guess as to why he parted ways Soviet Union goes back to the mid- 1970s, associated with with his old company. the strong reactions of the U. S. military leadership to Kissin­ Sometime after the 'Team A-Team B" exercise, the ger's arms control sellout in SALT, and the establishment of growing influence of Russian-chauvinist ideological themes Soviet strategic supremacy. After theforced resignation of in the Soviet leadership had become a matter of concern President Nixon, which prevented him from investigating among intelligence analysts. By reason of his background as Admiral Zumwalt's charges of double-cross at the SALT an historian, Pipes was better qualifiedthan most to pinpoint negotiations, the concernof numerous patriotic leaders over the threat to the United States represented by such ideological Soviet intentions and capabilities continued to grow. During bent in Moscow. Others, however, among them Leo Cherne, George Bush's tenure as director of the CIA, Prof. Leo chose to welcome the public surfacing of Third Rome Rus­ Cherne, a member of the President's Foreign Intelligence sian chauvinist themes in Russian society, as, presumably, a Advisory Group since 1973. devised an ingenious way of rival to the hated "Communist" ideological establishment, defusing this ferment: He proposed the commissioning of and as a potential ally of the United States. Since at least two competing, rival intelligence reports on the Soviet Union, April of 1983, the Soviet desk of the National Security Coun­ .. a game which was dubbed "Team ' A' versus Team 'B . ' cil, on the record and in background discussions, has main­ The' arrangement was that the official 1976 National /n­ tained that any Russian chauvinist revival, including the te/ligence Estimate on the Soviet Union, would be produced "Third Rome" variety, even if it came from Russian military by two rival teams: one, 'Team A," was headed by Howard circles, would be a welcome ally "against Communism." Stoertz, the CIA's national intelligence officeron the U .S.­ This also has been the policy of William J. Casey, of the Soviet strategic balance. and others selected by the CIA. United States Information Agency, of Radio Free Europe and Robert M. Gates worked under Stoertz in various capacities. Radio Liberty Russian-language broadcasts which began un­ The other, "Team B," was headed by Richard Pipes, and der Casey appointee James Buckley and continue to this day, included Daniel Graham. Paul Nitze, William Van Cleave, of the Russian-language programs of the Voice of America Gen . John W. Vogt. Paul Wolfowitz. Seymour Weiss. and which are run by old Russian aristocratic families, and also others. the policy of various informal, para-governmental intelli­ "Team B," rivaling official CIA estimates. presented at gence operations such as those run out of Sen. Jesse Helms's the time a much more alarming view of Soviet capabilities officeby the notorious "Trust" operative Jon Speller. and intention. and many of the team members went on to The policy of the Kremlin has been to systematically found the Committee on the Present Danger, which later encourage this pro-Third Rome bias in official U.S. intelli­ attained senior positions of influence in the Reagan admin­ gence circles. One of the Soviets' most favored ways of istration. Eventually. out of the heirs of the "Team B" anal­ exerting this sort of influence is by means of so-called defec­ ysis, came the theory of the "crumbling Empire ," in which tors being supplied to the CIA and others, who provide the Leo Cherne, now presiding over the President's Foreign In­ appropriately tailored "debriefings." Leo Cherne and his no­ telligence Advisory Board. plays a significant role. torious InternationalRescue Committee have, over the years, Leo Cherne, a lifelong political friend of CIA Director monopolized the "defectors' market," both genuine and fake. Casey (in fact . Casey's first employer after the war). is the One of Cherne's more self-important sidekicks, Roy Godson elderly statesman of a semi-formal group of very influential of CSIS, has carved out a career interpreting defectors' de­ Social Democrats. which includes Paul Nitze. Jeane Kirk­ briefings for the Washington intelligence community. Cherne patrick, Irving Kristol, Roy Godson. Max Kampelman, and and his people have imposed the single most damaging cri­ others, all of whom played critical roles in the Reagan admin­ terion for establishing the bona fidesof defectors: Those who istration and its periphery. Cherne's influence over U. S. in­ profess intense Russian nationalism and anti-communism are telligence is much greater than merely his officialposition at accepted as authentic defectors, and are thus afforded every the PFIAB would suggest-he is a very special "backchan­ opportunity to pass on exactly the kind of information the nel" between East and West, best approximating the old Kremlin wishes Washington to believe. "Trust" arrangement of the I 920s and 1930s. Moreover, he It is the kind of data Robert Gates feasts on each time he and his friends exert an absolutely overwhelming influence testifiesbefore Congress to argue either that the "Soviet SOl over what is called the "arms control process. " poses no threat," or that "the Russians had no involvement Why Prof. Richard Pipes should part ways with such in the assassination plot against the Pope," or any other of distinguished friends and be dumped from the National Se­ the extravagant claims before Congress for which he has curity Council back in 1982 is an important question. It bears become famous. on the reasons why such consummate bureaucratic fools as Ifthe United States never learnswh at happened at the last Robert M. Gates become deputy directors of the CIA. Since Soviet PartyCongr ess, it will be because old fools like Cherne Professor Pipes has, afternum erous direct questions from the and Casey promote young fools like Gates, to feed on each undersigned, refused to divulge the reasons for his break with other's political delusions. Meanwhile, Moscow laughs.

EIR March 21, 1986 National 59 Interview: Governor Mark White

Texas governorurges oil tariff, sees parallels to 1929

Governor White. a Democrat. has taken national leadership President to consider his position and impose such a tariff as in the fightfo r an oil import tariff. This interview was con­ quickly as he can. He does not have to wait for the Congress ducted by EIR's Houston bureau chief. Harley Schlanger. to act. The President has the authority under the Tariff Act of on March 7. 1974 to impose these tariffs when he makes certain findings that the economy is being dislocated or that there's dumping EIR: You recently wrote to President Reagan, calling on in the world markets, as we see today, or that the national him to take some immediate action to impose a tariff on security is being jeopardized. imported oil. What, precisely, have you been proposing? White: I have proposed a temporary variable tariff that, at J present, would peg the price of oil at a level that would foreclose the shutting-in of wells, and would hopefully be high enough to induce people to go out and drill for new oil. As the price of oil on the world market moves up and down, that tariff would as well move up and down. If the oil drops WillGove rnorWhite lower, the tariff would be larger; as the oil price worldwide increases, the. tariff would diminish. It would give us the survive the crash of '86? bridge we need, between this highly volatile market and a more stable, more realistic pricing system. Today, we find that the Saudis are dumping enormous amounts of oil into the As the price of west Texas crude oi I dropped below $15 market and have effectively broken the market. per barrel, and then below $12, political observers in Texas have begun speculation on whether the economic EIR: So you see this primarily as a need to protect domestic collapse hitting this state will bring down its Democratic oil production? governor, Mark White , with it. Despite opposition from White: For national security reasons, we cannot allow the three well-known, well-financed Republican candidates, nation to become more dependent on foreign oil, more than and several opponents in the May Democratic primary, it is already, from whatever source it might be, out of our White was considered, until recently, by most to be a own territory. shoe-in for re-election in November. However, the drastic collapse in oil prices has brought EIR: President Reagan seems to have rejected this. What about a drastic change in those expectations. It is now can you, as governorof Texas, do? generally acknowledged that there is a severe economic White: Today, I held a press conference,. upon the an­ emergency battering Texas. The precipitous oil price drop nouncement that unemployment in Texas has gone up to comes on top of a devastated agricultural sector, depressed 8.8%, that we have 150,000 more unemployed people in real estate markets, and a significant drop-off in trade Texas today than we did just a month ago, and urged the moving through the Texas Gulf ports, all of which have President once again to reconsider his position. Because what placed enormous pressure on the state's over-extended we've been saying would happen, is happening. It is imper­ banks. ative that the President act now, and not wait until the damage With the passage of Gramm-Rudman (which will cost is done. He has to be able to see into the future, and predict the state at least $600 million in Fiscal year '87)�and the the future. To the degree that we can show him that this is oil price drop, the state faces an uncontrollable budget what is going to happen, we have one month of experience. It is dramatic, it's tragic, and it's also avoidable. I asked the / 60 National EIR March 21, 1986 ElK: Governor, in that same initial statement, you warned ElK: In recent speeches, I've heard you bring up this theme that the fall in oil prices has brought the United States, I think repeatedly, the move from a production to a service econo­ .. you used the term "to the brink of an emergency . Yesterday, my. I presume that you think this should be reversed, so let it was reported in the Houston papers that you told an Amer­ me ask you .... ican history class that the present economic conditions could White: Not at all! I don't believe in trying to reverse it. I'm trigger another depression. Could you elaborate on this? just saying that you don't abandon basic industry at the ex­ White: I just was drawing certain comparisons between the pense of the nation's economic substance. We have to have situation that existed in 1929 and the situation that exists a domestic steel industry of some sort. We have to have a today, that we're more interested in the speculative increase domestic automobile industry of some sort. We've got to in the price of stock than we are in producing goods and have an oil and gas industry on-shore. But that's not t� say services. No one seems to look at the underlying strength of that we don't have information age technology. But I don't the economy in those industries that are being traded at record want to see us tum into a nation of people who, all we do is highs on the stock market today. Are we making good cars? shine each others' shoes. Are those cars selling in world markets? Are we making steel that is economical in world competition? Are we as strong as ElK: What steps do you see that can be taken to protect our the market indicates? When I look around the country, I see industries? that agriculture is flat on its back, that the oil and gas industry White: First of all, the best protection is good fiscal man­ is flat on its back. There are numbers �f industries: timber, agement in Washington. We have an administration there ' you can just go down the list. that has created the largest debt in the history of mankind, in

crisis. The Comptroller's office estimates that each $1 $ IO billion in revenue and 170,000 energy-related jobs drop in the price of a barrel of oil costs the state $100 without such action. million in direct tax revenue, 25,000jobs and $3 billion Afterthe Presidentre jected this proposal, and Febru­ in gross state product. Since Texas has a state law requir­ ary unemployment figures showed that 161,000 Texans ing a balanced budget, panic is setting in as to how to lost their jobs in one month alone (the official unemploy­ handle �he revenue shortfall, which is estimated at $1.6 ment rate went from 6.4% to 8.4%), White went back on billion for 1986, and as much as $6 to $7 billion for 1987. the offensive. At an emergency press conference, he asked, Governor White called on state agencies to make ini­ "Why won't the President act now? How many Americans tial spendingcuts of 13%. State Treasurer Ann Richards must lose their jobs, and how dependent must our country has warned that, even with such cuts, the state may have become on foreign energy supplies before this administra­ to write some "hot checks" to get through 1986: "By mid­ tion realizes that doing nothing is tantamount to saying December, we will have paid out almost $2 billion more last rites over domestic energy vital to our national secu­ .. than the state's general revenue fund has in the Treasury . rity. " She said she would have to get agreements from banks to He expanded on this theme in a talk given to a class of honor the "hot checks." high school students. White warned the students of the GovernorWh ite has been under intense pressure , from dangers of a 1929-style crash. Referring to the stockmar­ members ofthe legislature, the media, and his opponents, ket, he said, "What goes up fast can come down just as to respond by either increasing the budget cuts, or intro­ fast. That's what happened in the '20s ...whether this ducing new taxes, including the possibility of a state in­ will triggeranother depression or not, we don't know." come tax (since Texas has no such tax at present, such a One seasoned Texas politico commented on these de­ move would be highly unpopular). velopments by saying that it may be good politics for Afteran initial period in which he insisted things were White to focus on problems out of Washington, but it may under control, and that the 13% budget cuts would suffice, not be enough for him to retain his governorship. The real White has begun to redirect his focus-toward Washing­ question is whether he will lead an effective intervention, ton, and how misguided policies there are threatening to on the national level, to change the present economic collapse the economy. He has taken the point in pushing policydrift in Congress and from the Reagan Administra­ for an oil import tariffto protect domestic oil producers. tion. If so, then some of the talk of his potential as a In early February, he wrote to President Reagan, asking national candidate for 1988 may gain some credibility. him to impose such a tariff, warningthat Texas may lose Harley Schlanger

EIR March 21, 1986 National 61 five years. Rather than a balanced budget, we have the most that we should not ignore the very favorable economic impact Qut-of-balance budget in the history of the country. Blame it it would have on the ability of Mexico to guide its own. ' on whomever you want, but it happened in a combination of economy to a stronger posi�ion than exists today. events in the White House and the Congress. Let me say, any [Referring back to the issue of the proposal for a tariff on way you want to handle it, that's where the culprit is. imported oil, and the opposition to itl To put a tariff on it, might trigger more control over domestic production. There's EIR: Do you see Gramm-Rudman as a solution? a vast difference. The controlsthat we had on domestic pro­ White: I don't think Gramm-Rudman is a very wise way to duction in the past, the tariff is totally different from those solve the problem. The way we're attempting to solve a short­ controls. That was over domestic production. all the regula­ fall of revenues in Texas happens to be a much better ap­ tions and all the bureaucracy. It doesn't take any bureaucracy proach, I think. That's to ask our agencies for their thoughts and very few regulations to impose a tariff on imported oil. on how they can reduce their expenditures without cutting They further say that it won't have much impact on the price into services. We 're getting an enormously favorable report, of oil, because so much of our oil is imported from Mexico, and already, in this two-week period of time, we're talking and they give you two or three other reasons why it won't about something in the neighborhood of over $600 million have much impact. Well then, ifit doesn't have much impact, saved, which is almost half of the short-fall. why don't you try it and lee,s see how it works.

EIR: To go back to the oil situation. I believe you also have EIR: It seems as though partof what the administration, and said that you would think that Mexico should be exempted Congressman Phil Gramm fR-Tex.) in particular, have been from the tariff, because of the debt crisis that has hit that saying, is that we don't need these kinds of measures because country and also because of the overall economic problems we're in a recovery. I pr esume that you don't quite share his that Mexico is having right now. Is that the case? optimism on the state of the U.S. economy. White: Basically, what we need to do is exempt Mexico, at White: No. I think he's overlooking the fact that this recov­ least to the extent of a cap that would be put on their imports. ery is fueled by a trillion-dollar deficit��pending, in the de­ We ought to also try to engage Mexico in some trade agree­ fe nse industry, and most o� the market increases are fueled ment concerning oil pricing, that would give them some by buy-out agreements and take-over agreements. That's not predictable price for their oil over the next several years. so sound economic growth-that's speculative fever. That is that they can plan their economic future. Mexico's economic not the way this country hIlS been built into a national eco­ future is so closely intertwined with our own country's future nomic empire .

an to have a stable supply, domestic supply, of oil. And I LaRouche: Set need some money ....If people want to sell oil at $10 a oil parityprice barrel or $5 a barrel, let them sell it. We'll buy it. but we'll put a tax on it so that itbecomes $15- or $20-a-barrel At a Jan. 29 gathering of congressional candidates backing oil by the time it gets insidei the U.S. market. And let the .. emergency economic measures proposed by presidential government keep the change . candidate Lyndon LaRouche, LaRouche called for a tax The government would :get about $5 billion in 1986, on importedoil . if crude oil imports continued at a 1984 average import In answer to a question on what steps to take against rate . The United States curtently imports about one-third the Gramm-Rudman amendment or Rostenkowski tax bill, of its annual oil consumption needs. Oil experts vary on LaRouche came back on the oil issue: "First of all, I would what would be the appropriate U.S. oil parity price, be­ do one thing right away. As President, I could raise some cause of the difference in crude oil types, and the wide­ more taxes ...with $10 [a barrel] oil. I've got to save ranging differences in efficiency, technology, and indebt­ our good people down in Texas and Oklahoma, and a few edness of oil well production operations. other places. I've got to help our friends in Ibero-America, However:, in order for the United States to maintain a such as the Mexicans, who are about to be ruined .... reliable, adequate oil supply, there is an average price "I would slap a tax-an import tax-on petroleum, which needs to prevail, in order to not only continue oil where the tax would be equivalent to the amount at which production in the short term,! but guarantee constant initia­ petroleum was sold below a parity price for the United tives of oil exploration and new well development. While States petroleum. Because I would have to protect our a parity price could be as lo� as $20, a price of $27-28 per petroleum industry . . . for military as well as other rea­ barrel would guarantee the healthiest augmentation of re­ sons. Therefore , I cannot have wells shut down. I've got serves.

62 National EIR March 21, 1986 and NDPC-backed Republican candidate for attorney-gen­ eral, were also challenged. Bradley is a prominent lawyer LaRouche slate takes who last year filed suit to prevent a drug mafiatakeover of Cincinnati's Home State Savings and Loan. In the course of on Ohio dope mob his campaign. he had promised to make public further reve­ lations on the workings of the dope mob and its financial networks in Ohio. by Marla Minnicino A spokesman for the NDPC slate described the chal­ lenges as "nit-picking political harassment." Such efforts, he A bipartisansla te of LaRouche candidates in Ohio has opened said. were the "only recourse the dope mafia'sflunkies have fireon the "dope mafia,"which controls both political parties left in Ohio" and only served to "intensify the committment in the state. Although Ohio's liberal Democratic Party lead­ of the LaRouche candidates to unseating the incumbents of 'ership is among the most corrupt in the nation-after years both parties in November." on the payroll of indicted drug banker Marvin Warner-the The Ohio slate. comprised of farmers. businessmen, and Republican Party has also shown its colors by publicly "di­ veteran political activists. is led by Don Scott, a former sowning" those LaRouche candidates who are running as congressional candidate who is challenging incumbent Sen. Republicans. John Glenn in the Democratic primary. Scott won the 7th That might seem surprising, since those candidates' pro­ C.D. primary in 1984 despite the Democratic Party's refusal gram is based on support for President Reagan's Strategic to endorse him. and polled24% in the general election. He Defense Initiative, an expanded space program, low-interest charged that the "drug mafia has almost completely taken loans for farmers, and an all-out war on drugs. Perhaps it is over the U.S. banking system" and is "bleeding industry, the last point that especially disturbs them. labor, and farmers dry. " Ohio Republican Party spokesman Dave Garick has stat­ There is ph;:nty of dirt for the LaRouche candidates to ed that the LaRouche candidates present a problem only for clean up. For example, Home State's owner, Marvin War­ the Democratic Party. LaRouche candidates may be "running ner, helped Jimmy Carterbuy the 1976 election in Ohio, and as Republicans, [butl they are uninvolved in the mainstream was instrumential in financing the campaigns of Governor of the Republican Party. We don't pay him or them much Celeste, Senator Glenn, and others. Warner was recently attention. " indicted by a state grand jury in connection with the March Said James Cary, political director for the Ohio Demo­ 1985 collapse of Home State Bank, which pulled the plug on cratic Party: "They are not part of our party. They don't savings and loan institutions throughout Ohio. subscribe to our beliefs." He said Ohio Democratic leaders Ohio plays a crucial role in shaping industrial and agri­ would be notifiedof LaRouche candidates in their areas and cultural policy nationally. When the editors of Newsweek would be urged "not to support them." were looking for a typical American community to profile, What has them so worried? they chose Springfield. Ohio-the district won by Don Scott On Feb. 20, twenty-one LaRouche supporters filed peti­ in 1984. The region is now among the states hardest hit by tions in Columbus to qualify for the May 6 primary bailot as the "economic recovery," with unemployment at record lev­ candidates for Congress, and were endorsed by the National els, factories and farms abandoned. and only bankers flour­ Democratic Policy Committee, the political action commit­ ishing. tee which reflects the ideas of LaRouche. NDPC-backed The NDPC candidates have made defense of the nation's candidates also filed for U.S. Senate, governor, lieutenant­ productive sector their key campaign plank. "The industrial governor, state attorney-general , and Republican and Dem­ and agricultural production base of the U.S. economy is in a . ocratic Party positions at the state and county level. shambles and getting worse every day, . says Scott, "We must Immediately, a major effort was mounted to keep La­ produce ourselves out of this mess" by establishing a new Rouche candidates off the ballot. The petitions of U.S. Sen­ world monetary system "with equity in trade among all na­ ate candidate Edgar Bradley, a well-known Republican po­ tions throughout the world." Scott recently joined political litical activist, were challenged on technicalities, as were leaders from the United States and lbero-America at a con­ those of gubernatorial candidate Dave Muhlenkamp-the ference of food-producers in Sonora, Mexico, discussing only announced opponent of Gov. Richard Celeste in the ways to increase agricultural production. Democratic primary-and Tracy Prudhoe, candidate for A campaign press release labels the Gramm-Rudman­ lieutenant-governor. Election officialsalso refused to certify Hollings law. which 16 out of Ohio's 21 congressmen backed, the petitions of five NDPC-backed congressional candidates, "overtly treasonous," and a threat to the nation's industrial citing "irregularities." Bradley, Muhlenkamp, Prudhoe, and infrastructure and defense. It also states that the population the , other candidates will now run as independents in the is threatened with AIDS and other pandemics, while Con­ November general election. gress, state and local governments, even publiC;health agen­ The petitions of Ron Bradley, the Senate candidate's son cies, defend the "civil rights of AIDS carriers."

EIR March 21, 1986 National 63 Federal prosecutor in the dock: the sonyperf onnance of Daniel Small

On February 28, 1986, Boston Assistant United States At­ tation, ordered Small to appear in his New Jersey court to torney Daniel Small, the prosecutor who, for over one year, testify about the entire matter. has conducted a politically vindictive grand jury probe of The nervous demeanor and equivocating testimony of Lyndon H. LaRouche, Jr. and his pol itical associates and Mr. Small made it clear from the outset who the guilty party supporters, testified for two hours in the case of The La­ was. The witness's equi vocationscaused Judge Ackerman to Rouche Campaign. et al. v. First National State Bancorpor­ jump into the fray and conduct the cross-examination himself ation. et al.• a breach-of-contract and libel action pending in at various key points. Below he begins by asking Small about Federal District Court in New Jersey. The unusual appear­ Reinfeld's Aug. 7 letter: ' ance of a federal prosecutor as a witness in a private civil proceeding occurred because Small submitted an affidavit in Q: He wants to inspect th¢ documents and obtain copies of defense of the Bank, now known as First Fidelity , an act the relevant documents? which in itself raised grave issues of prosecutorial propriety. Small: Yes, sir. The testimony of Small confirmed beyond any doubt that his Q: That is very clear. Is there anything anbiguous about that grand jury is a political inquisition and nothing else. request, sir? The circumstances giving rise to Small's day of infamy Small: No, your Honor. began when the magistrate supervising, pretrial discovery, Q: What I cannot understand in my own mind at this time, if ' Serena Perretti, ordered The LaRouche Campaign (TLC) and that were the request, what was the problem? In other words, Independent Democrats for LaRouche (IDL) to provide in­ he wasn't lookingfor the originals. He wanted copies. Copies terrogatory answers to a third party defendant in the litiga­ means copies. What was the problem? tion. Since the information could only be obtained from credit Small: Your Honor, if all he had said was he wants to make card documents (the criminal investigation involves allega­ copies or obtain copies- ' tions of credit card fraud)which had already been produced Q: That's all he said. to the Boston grand jury, TLC attorneyJoel Reinfeld, sent a Smal�: Your Honor, wh� he specfically said, both in the letter dated Aug. 7, 1985 to Mr. Small's boss, William Weld, letter and in every conversation that I had, was to inspect the informing him ofthe New Jersey court order. Reinfeld further original documents and o�tain copies. It wasn't a matter. requested an opportunity to inspect and make copies of the Q: In order to make a copy you have to have the original? documents. Small: Not necessarily, your Honor. We could make copies Small informed Reinfeld and several other attorneyswho of copies. made inquiries on behalf of the two organizations that all of the records were in Washington D.C. at the FBI Laboratory The judge quickly grows impatient with 'the little cat-and­ lijld would not be made available to TLC and IDL. On Oct. mouse game that Small is playing with the Court . He picks 1, 1985, Magistrate Perretti peremptorily levied a $500 per up a calendarwhich had b�n lying on the bench and says: day fineagainst the two campaigns for failure to comply with her courtorder. TLC and IDL appealed this rulingto Judge Q: But you would make a copy of the original. So he would HaroldAckerman , the presiding judge on the case . have access. In other wor�s, I'm holding in my hand a cal­ On December 7, 1985, two days before the appeal was endar. I don't want to give you this original. You say, "Lis­ heard by Judge Ackerman, First Fidelity submitted an op­ ten, I want a copy." All I do is go to a Xerox machine. I make position which contained an affidavitfrom Daniel Small. In a copy. You have a copy of the original. What is the differ­ this sworn statement, Small claims the plaintiffs' lawyers ence? never made it clear what they wanted from the grand jury Small: Well, your Honor, if they had asked me then, then records and why they wanted it. Judge Ackerman, confronted there wouldn't have been a problem. My understanding was, with conflicting statements and accusations of misrepresen- and becausethere werethese creditcard typerecords , it made

64 National EIR March 21, 1986 some sense that they wanted to inspect, in the words of the Reinfeld did not tell me at the time there were sanctions. letter, the original documents. All I did was tell them that Q: Did you ever think of that Mr. Small, realistically? some of the originals were not available. Small: Did I think of it? Probably. Q: All right. I'll back up Mr. Small. I'll back up. Did you Q: Probably. Okay. Okay. So having thought it-having say to him: "Listen, I don't want to let you see the real McCoy thought it, let's take this back to August-August, now, they but I'll make copies for you. You pay, for it. You pay for it. send you this letter. They make this request. You're not I'll make copies of the originals"? going-not having kind feelings toward them. Not only I don't want to get this conversation on an asinine level. wouldn't you jump through a hoop for them but you're not I'm trying to think of some reasonable modality to accom­ really going to put yourself out for these people, are you? modate the interests that you speak of. What I'm asking you They've been giving you a hard time? is when you received that letter did you say to Mr. Reinfeld, Small: On the one hand, I was not going to put myself out "Listen, I don't want you to see these but we'll get you copies for these people. On the other hand, they had filednumerous of the originals"? Did you say that to him? suits in various places against all kinds of banks. And if there Small: No, your Honor .... was a way, and there is a certain amount of sympathy for the banks who were being used to get discovery in the criminal Further, in the proceedings, Judge Ackerman realizes case, basically- that there may be an ulterior motive governingthe seemingly Q: Oh? irrational conduct of the prosecutor from Boston. He asks Small: I was not going out of my way for them. But I was Small point-blank: not, certainly not going to do anything to interfere with the case. Q: I know it is never a happy occasion when there are criminal Q: Let me pursue that a bit further. In other words, when this proceedings which are participated in by an AUSA [U.S. request was made you were aware of the fact that they had Attorney] and certainly a defendant who doesn't look kindly instituted suits in various places against various financial on an AUSA and that sort of thing. Let me put it to you very institutions? clearly. Was there bad feeling here on your part with the Small: Yes, your Honor. LaRouche people, putting it as plainly as I can? Q: And do I perceive that you viewed this as a pattern of Small: I wouldn't say there was bad-well, they've taken a conduct on their part? In other words, this was their MO, in lot of-spent a lot of time insulting my boss, Mr. Weld, plain language? calling him a dupe of the dope lobby. Small: Absolutely, your Honor. Q: What else? ' Q: Oh. All right. So that in a sense you viewed the plight of Small: A Harvard punk and a liar and all kinds-the chants the Fidelity Bank somewhat sympathetically in light of your outside every time we have a grand jury . We have little chants knowledge in what the LaRouche people had been doing, outside, "William Weld is a fag." Those kinds of things. correct? ( ...) Small: Correct, your Honor. Q: Obviously you were offended by these alleged sayings? Q: And so when they checked in with this request, is it fair Small: No one had insulted me at that point, your Honor. for the Court to conclude you weren't too sympathetic toward Not me personally. whatever problems they had? Q:I was about to say Mr. Weld was the target ofthese alleged Small: I wasn't sympathetic to LaRouche .... character assassinations, and the like, right? Small: That's right. Finally, under cross-examination by IDL attorney, Ar­ Q: And you were offended by it, right? Vicariously? thur D'ltalia, Small admitted that his "sympathy" for the Small: Vicariously, yes. Bank was more than abstract. Small confessed to numerous Q: Now, when you heard that they had problems down in contacts with the law firmof Hannoch, Weisman, the Bank's New Jersey, in a civil case, do I detect that you weren't attorneys in the action, a condition which strongly suggests overwhelmed with sympathy for their plight? that the Boston U. S. Attorney is ,coordinating the civil case Small: I was not overwhelmed either with sympathy or with in New Jersey. This close relationship between a prosecutor surprise, your Honor. The pattern was quite familiar to and private litigants is highly improper since it threatens to me .... turnthe civil action into a mere arm of the grand jury inves­ Q: And Mr. Reinfeld asked you previously whether you had tigation. The Bank's lead attorney, Albert Besser, admitted said, "Well, it couldn't have happened to a nicer bunch of as much last fall when he declared, "I am going to make the guys" [referring to Small's reaction upon hearing that the government's case for it. " magistrate had levied the $500per day fines against TLC and If Mr. Besser is serious, he might think about filing ajob lOLl . Do you deny saying that or you have no recollection application in Boston. Afterthe sorry pe.rformance of Daniel of ever saying that? Small, U.S. Attorney Weld is probably in the market for a Small: No. I did not say that, your Honor. Because Mr. new assistant.

EIR March 21, 1986 National 65 Eye on Washington by Nicholas F. Benton

from anti-defense arguments he has very h.d time convincing our NATO l;>een using for years. Even the audi­ allies to increase their defense budg­ ence of Harvard University alumni . ets, given that the U. S. cut its real Weinberger- Kennedy: found it hard to stomach his assertion defense budget-thanks to Con­ that it was the U. S. nuclear freeze gress-'-by6% in the last year. Cap wins- and loses movement, based, as he put it, on mil­ Ke�nedy took the contrary view In the much-heralded debate between lions of grass-roots Americans who that theEuropean NATO allies cut their Defense SecretaryCaspar Weinberger knew nothing about the intricacies of defense obligations to NATO because and Senator Ted Kennedy here on the nuclear issue, that brought the So­ the U.S. increased its defense spend­ March 14, Weinberger repeatedly viets to the negotiating table at Gene­ ing in the early I 980s (sic)! He argued sounded the warning first fully docu­ va. that the:! U.S. could have spent less, mented by EIR a year ago, that the and forced the Europeans to spend Soviet military strategic doctrine is a more . He cited the efforts of Sen. Sam war-winning doctrine based on a first Gramm-Rudman Nunn to legislate U.S. troop with­ strike. drawal from Europe, as having been On the defense issue alone, if this peril to security frustratc:d by the Reagan administra­ had been a debate between presiden­ Kennedy blamed the MX missile and tion. withdrawal from Europe , as hav­ tial candidates, Weinberger would SOl program for increases in the de­ ing been frustrated by the Reagan have won readily. However, Wein­ fense budget that are entirely unac­ administration. berger's Achilles heel was the eco­ ceptable, he said, to the Congress un­ Another questioner posed the Her­ nomic question. While warningof the der the Gramm-Rudman restrictions. itage Foundation crackpot formula that effects of Gramm-Rudman for de­ Weinberger, on the other hand, wamed if the U.S. forces the Soviets to in­ fense, he said ,the only way to avoid of the dire consequences of Gramm­ crease defense spending, theeff ect will the danger would be to make the deep Rudman for national security. He said be to undermine the Soviet economy. cuts in domestic spending proposed that under the provisions of the budg­ Weinberger denounced this ploy, by PresidentReagan 's current budget. et-balancing law, there are no priority saying tpat it is in no way in the West's Kennedy unashamedly echoed the areas in the defense budget that can be interest to compel the Soviets to hike Soviet argument against the Strategic excluded from cuts once the automatic their military spending-but only to Defense Initiative by asserting that it sequestering procedures of the law go reduce it. He said that in the Soviet would give the U.S. a first-strike ca­ into effect. system,: there is no guarantee that cur­ pability, and ignored the fact, reiter­ "Every one of the 3,250 accounts tailing military spending will have any ated by Weinberger, that the Soviets in the defense budget will be cut positive benefit on Russians' living have been working on an SOl of their equally under the sequestering of standar�s, but asserted that it is the own for 17 years. Gramm-Rudman," Weinberger said. administration position to support The problem of the arms control "This would mean the loss of 280,000 achieving major reductions in missiles talks, Weinberger countered, was that personnelin next year's budget if such on both sides to the level of real parity, they occur in a context in which the sequestering becomes necessary. It based on thorough verifiability, and Soviets "believe a nuclear war can be would cause very deep, serious and then to bring on line the SOl to "elim­ fought and won." Later, he under­ dangerous reductions in the military inate OJ\ee and for all the threat and scored: "Philosophically, the Soviets security of the United States." horror of nuclear weapons." believe they can win a nuclear war, A Harvard alumnus asked Wein­ As realas the Soviet threat is, there and that if they can get their forces berger about U.S. commitment to is no way the Defense Secretary's sufficiently out of balance with ours, NATO, and whether or not our allies warnings are going to be heeded un­ that they can make a first strike." He should be asked to make a greater less Gramm-Rudman is repealed, and added that all military decisions in the commitment themselves. monetaO' reforms in the tradition of Soviet Union are ultimately made by Weinberger stressed that the Washington and Lincoln, as proposed "four, five, or six men in the Politbu­ NATO alliance was as much in the by Lyndon LaRouche, are carried out ro," and without the scrutiny or pres­ U.S. interest as in that of our allies, to protect the population from the dev­ sure of public opinion. and that "we all need to be doing astating effects Gramm-Rudman will Kennedy had nothing new to say more ." He added that he will have a inflict ..

66 National EIR March 21, 1986 Kissinger Watch by M.T. Upharsin

graduate Kurt Biedenkopf to be the Readers of Kissinger Watch will head of the North Rhine-Westphalia recall that in May 1984, we reported region Christian Democrats. What, if that Kissinger was the honored gUj!st anything, does Georgetown have to of Androsch, at a symposium and din­ say about its only West German trust­ ner in Vienna. Guilt by ee now being in jail? What does Bie­ Androsch, too, is one of the key denkopf have to say? Biedenkopf advocates of expanded East-West Kissinger association himself, our sources say, has a lot his trade, in Western European banking Once upon a time, when Henry Kis­ own "skeletons in the closet. " circles. His bank interfaces with im­ singer would visit West Germany. he • Extending this line of analysis portantVienna-based operations of the would be invited to dinner. as guest of one step further, we find that the Club of Rome, and the International certain of the leading bankers and "Muenchmayer" in question, Alwyn Institute of Applied Systems Analysis leading families of the Federal Repub­ Muenchmayer, is one of the West (IIASA), two institutes that serve as lic. Today. however. if Henry Kissin­ German members of the Trilateral key back-channels for deals with the ger were to want to have dinner with Commission, on which Kissinger sits Russians. one of his favored hosts. he would as an Executive Committee member. Androsch was caught, several have to do it in a federal jai I. Muenchmayer is an enthusiast for the months back, in a tax evasion viola­ The case involves a certainCount Trilateralists' policy of expanding tion. Now, in the firstweeks of 1986, von Galen. a leading figure in the Western contributions to the Soviet he has been charged by the state pros­ Schroeder, Hengst, Muenchmayer economy. His daughter, named Frau ecutor, with what would be called in banking group. Von Dalen is now lan­ Breuel by marriage, today is the eco­ English, "false testimony," which is guishing in detention. for having en­ nomics minister of the state of Lower one step short of actual perjury. gaged in what could be tnost simply Saxony, and is a vocal sponsor of Androsch's case has been receiv­ labeled a "fraudulent bankruptcy." As "post-industrial" economics. One in­ ing considerable play in the Austrian the bank for which he was employed teresting fact about Frau Breuel, is that press. was having severe financial difficul­ she is a founding member of Kurt Bie­ As of this writing, it can not be ties, Count von Galen was caught si­ denkopf's Institute for Science and said with certainty, where else we will phoning off hundreds of millions of Social Studies in Bonn. Small world! see Kissinger Associates in dire straits. deutschemarks. into a "shell" con­ Another interesting fact, known to as­ One point for the astute reader to struction firm. The German authori­ tute investigators, is that Frau Breuel watch, is Turin, Italy, and the nexus ties have rejected a large bail offer is herself implicated in a scandal, of Gianni AgnelIi of Fiat. During mid­ from the Count's legal war-chest. and whereby she has set up special oil­ February, the Italian Christian Dem­ he remains in detention. trading relationships with Ayatollah ocratic daily /I Giornoleaked that Ag­ The case has received a certain Khomeini's Iran, interceding for oil nelli and his financier friend in Ven­ amount of international notoriety. but refineries in Lower Saxony. ice, Carlo De Benedetti, were procur­ certain interesting questions have • The "Schroeder" in question, is ing, gratis, the services of a practition­ tended to be buried. Let us present from the same banking group, Schroe­ er of "white magic," one Signor RoJ. these now: der's Bank, which sponsored the rise It is not known why Giorno chose to • The "ties that bind" Count von of the Adolf Hitler regime in the early leak this select piece of information, Galen and Henry Kissinger are more 1930s. but it is known that Gianni AgnelIi is than whatever passed over dinners . personally unhappy about the leak The Count is the only West German having beenmade . And on to Vienna trustee of Georgetown University in Agnelli is one of Henry Kissin­ Washington. D.C. Georgetown, of Matters don't stop here. ger's longest-standing buddies in Ita­ course, is one of Kissinger's head­ Another good banking friend of ly. He is one of a circleof Kissinger's quartersfor operations. The "George­ Henry Kissinger, Hannes Androsch, friends who are also close to Israel's town Mafia" in West German politics the head of Austria's largest bank, Ariel Sharon and to some of New has become more interesting, in view Kreditanstalt, is in deep trouble these York's most prestigious "blueblood" of the recent ascension of Georgetown days. families.

EIR March 21, 1986 National 67 CongressionalCloseu p by Ronald Kokinda and Suran Kokinda

If it's Monday, we must N.J.). Cranston has announced that he Washington Post's Katherine Graham be overthrowing Freedonia may also try to block the delivery this have been trying to coopt Garcia's ini­ In view of the magnitude and diversity June of five AWACS radar-warning tiative and blunt his leadership in the of congressional activity aimed at de­ planes approved by Congress in 1981 , drive for financial reorganization. But stabilization of U.S. allies at any one afater a bitter fighton the Senate floor. the Times, closer to Wall Street, dares time, EIR will try to keep its readers In a revealing statement, Cranston not eVen print the name of Garcia. No as current as possible. This week's attacked the notion that "U.S. interest mention of him or Peru appears in the agenda includes South Korea andSau­ in the Gulf region could best be se­ published version of the Schumer op­ di Arabia. curedby aggressively arming the Shah ed. • South Korea: House Foreign and the Saudis. Despite the fact that Schumer, a member of the House Affairs Committee chairman Dante one pillar has fallen in Teheran and Banki\1g Committee, wrote that the Fascell (D-Fla.) took to the floor of despite the actions of the Saudis in banks should write off that portion of the House on March 12, to urge his scorning basic American interests in the dept that is "clearly unpayable"­ colleagues to tum their attention from the region," the United States contin­ as much as 30¢ on the dollar-and the Philippines to the "disturbing ues its support for Saudi Arabia. implellDentthe "25% solution." With­ events" taking place in South Korea. Clearly, Cranston is hoping that out thq specificsof the 25% cap, Schu­ Citing the Korean government's re­ the second pillar will fall. He is show­ mer hfid introduced an amendment, action to recent opposition party ing himself to be a valuable ally of the incorporatingthese ideas, to the Inter­ moves, Fascell fulminated, "These KGB-Israeli Mossad alliance known national Monetary Fund reauthoriza­ actions are but the latest in a series of as theTrust. He is also up for reelec­ tion biJl in 1983. repressive moves by the Korean gov­ tion in a state where Jewish support is Apparently referring to the Schu­ ernment against its own people .... crucial for a Democrat. mer article, Treasury Secretary James I realize that comparisons with the Baker defended his own proposal at Philippines are not very appropriate Senate Appropriations Committee for Korea ....Howev er, one lesson hearings on March 12. "The people does seem worth heeding: President Schumer backs '25% who have labeled it [the Baker pro­ Marcos lost his mandate to rule as he solution' to debt crisis posal] a plan have missed the point. It violated the rights of his people and Representative Charles Schumer (D­ is a principle, an initiative, or a con­ frustrated their longing for democratic N. Y.), in a commentary in the March cept, and I haven't heard of an alter­ rule .... The United States simply 11 edition of the New York Times, at­ native except writing down the debt, cannot condone the continued tacked the Third W orId debt refinanc­ and that would only cause a serious abridgement of freedoms in Korea." ing proposal of U.S. Treasury Secre­ 'hit' tQ our banks and the loss of spme • Saudi Arabia: One of the KGB's tary James Baker (the "Baker Plan") democ;ratic countries in Latin Ameri­ top activists, Sen. Alan Cranston (D­ as '100 little, toolate ." Schumer called ca." . Calif.) has turned his sights on Saudi for a solution to the Ibero-American Congressman Schumer has repre­ Arabia, spearheading the congres­ debt crisis based on limiting annual sented a "realist" faction of the finan­ sional opposition to the administra­ service charges to 25% of the debtor cial community, which is ready to cut tion's proposed sale of Sidewinder, nation's export earnings. its los�s, in order to maintain ultimate Stinger, and Harpoon missiles to that In the draftof the article originally control of the international financial Mideast nation. Cranston announced submitted to the New York Times, system. on March 11, that he will offer a res­ Schumer had reportedly singled out Schumerappears to be staking out olution of disapproval of the sale. That positively the actions of Peruvian the "left-wing"alternative to the Bak­ resolution will be cosponsored by President Alan Garcia, who has im­ er iniqative. Similar ideas about debt Senators Bob Packwood (R-Ore.), plemented a similar "10% percent so­ relief were recently put out in a book Alan Dixon (D-Ill.), Al D'Amato (R­ lution." called From Debt to Development, N.Y.), and Frank Lautenberg (D- In recent months, the likes of the published by the Debt Crisis Net-

68 National EIR March 21, 1986 h

work-a conglomeration of left-wing should recognize that that rent is a bar­ rna. The erstwhile "patriot, Dr. Spa­ groups such as the Institute for Policy gain, compared to the funds we dis­ dafora," was actually a left-wingrev­ Studies and Bread for the World. tribute each year to Turkey and Greece olutionary turnedright-wing gun-run­ and Spain." ner," who was probably murderedby Melcher could have made his au­ the Nicaraguan "contras" for being a dience squirm even more had he added double agent (see Feature. p. 26). Melcher scores U.S. that the U.S. aid policies were execut­ role in Philippines ed for the purposes of overthrowing Speaking at a forum on the Philippines Marcos. organized by the Fund for New Prior­ In a 1985 interview with EIR . Sen­ Strange bedfellows, ities, Sen. John Melcher (D-Mont.) ator Melcher had charged the Inter­ Chapter 79 ••• laid the blame for the economic prob­ national Monetary Fund with carrying On March 12, Sen. Bob Kasten (R­ lems of the Philippines, in part , at the out policies disruptive of the Philip­ Wisc.) introduced S. Con. Res. 116, feet of the U.S. government. Melcher pines economy. relating to the famine in Ethiopia and lambasted the United States for not the government's resettlement policy. meeting its economic obligations to Kasten was joined by a mixed bag of the Philippines and called on the bothconservatives such as Orrin Hatch United States to increase aid. Who's to blame for (R-Utah), Don Nickels (R-Okla.), and Much to the dismay of Rep. Ste­ the crisis in Panama? Chuck Grassley (R-Iowa), and liber­ phen Solarz (D-N.Y.) and other at­ Joining Sen. Jesse Helms's (R-N.C.) als such as Mark Hatfield (R-Ore.), tending congressmen and senators, bandwagon to destabilize Panama, Carl Levin (D-Mich.), Dale Bumpers who prefer to portray the economic Rep. Webb Franklin (R-Miss.) added (D-Ark.), and Alan Cranston (D-Cal­ problems of the Philippines wholly as to the flow of disinformation about that if.). an outgrowth of former President Fer­ cotmtry currently clogging foreign This flurry of activity around the dinand Marcos's "corruption," policy channels. brutal policies of the government of Melcher detailed the policy actions of On March 12, Franklin inserted Ethiopia has one fallacy of composi­ the United States which helped disrupt into the Congressional Record an ar­ tion: It ignoresthe role of the Interna­ the Philippines economy. Pointing at ticle from the Feb. 7 Star-Ledger. tional Monetary Fund in creating the the crucial sugar industry, Melcher written by G. Russell Evans. The ar­ continent-wide economic holocaustin said: "Until 1982, the Philippines sug­ ticle begins: "When things go wrong the first place, and proposes nothing ar quota was set at 27% of that im­ in the Republic of Panama, the United that would reversethe IMP's policies. ported into the U . S. In 1982 that quota States is often blamed. Recently, ac­ Among the groups cited by the was cut, practically in two. The mills cording to a foreign broadcast from "conservative"spokesm en, as on-the­ and plantations connected to the sugar Panama City, the U.S. State Depart­ ground experts in the matter, is Cul­ industry were set back drastically. We ment was charged with a 'seditious tural Survival, a leftistanthropologist should correct that if we can. Further­ scheme' against the country, provok­ grouping which has profiled "native" more, we imposed a duty on sugar ing internal problems, and 'discredit­ insurgencies in Thero-America, Afri­ which was entirely uncalled for. We ing' the military. But the problems ca, and the Philippines. Speaking in don't do it to other countries, but we were all generated by the . . . [Pana­ the House on March II and in the Sen­ do it to the Philippines." manian] Defense Forcesthrough their ate on March 12, Rep. Toby Roth (R­ Melcher also reported that about implication in drug trafficking and Wisc.) and Sen. Paul Trible(R-Va .) $450 million in U.S. aid to the Phil­ murder of patriot, Dr. Hugo Spada­ cited Cultural Survival as authorities ippines is stuck in the pipeline. "These fora." in the matter. CulturalSurvival is sup­ arefu nds that are due and payable. We The cited foreign broadcast was ported by the international oligarchy, carryobligations for base rent [for Su­ based on information fromEIR on the and Queen Margerethe of Denmark is bic Bay and Clark Airfield-ed.]. We Stat,: Department plot against Pana- its honorary chairman.

EIR March 21, 1986 National 69 NationalNews

the first principle of the American economic for land-based nuclear missiles, if it proved system. Since, therefore , the United States fe asiblt;. cannot produce goods that are competitive Reagan cautioned that to deploy a partial Chicago declares itself with those produced by the Japanese, the defense "without a lot of further meetings Japanese must be prevented from producing and exchanges" could make it seem that the 'nuclear free zone' and selling such goods in the United States. United States "might be seeking to get a The nation's largest "nuclear free zone" was first-strike advantage," which would be "the created on March 12 when the Chicago City most dangerous thing in the world." But if a Council passed an ordinance banning the partial deployment were technically feasi­ design, production, or storage of nuclear ble, said Reagan , the United States might weapons in Chicago. No one in Moscow Vatican disciplines "go earlier to both our allies and to the others was immediately available to say whether and say: 'Look , here is the potential now for Soviet missiles would, in tum, be retargeted American heretic this we�pon and we want it to be used for all away from Chicago. manking,' and see what we could work out." The Vatican has cracked down on a leading ' The ordinance, adopted on a voice vote, American heretic, Fr. Charles Curran, pro­ The original concept of the President's requires a phase-out of Chicago's nuclear fe ssor of moral theology at Catholic Univer­ Strategic Defense Initiative envisioned a weapons industry within two years. Alder­ sity in Washington. layered defense system, capable of inter­ man David Orr, author of the proposal . Curran disclosed at a press conference cepting enemy missiles in their boost phase claims that Chicago has few companies and yesterday that Joseph Cardinal Ratzinger, and mid-flight trajectories as well as tinal. few jobs that will be affected by the ordi­ prefect of the Congregation for the Doctrine point defense of targets. Whereas opponents nance. of the Faith, had sent him a letter Sept. 17, of the program like Zbigniew Brzezinski and Illinois Gov . James Thompson called the warning him he will be stripped of his right Henry Kissinger have demanded "point de­ ordinance "stupid and un-American." A to teach as a Catholic theologian , if he does fe nse ollly" deploymentto protect U. S. mis­ spokesman for the Governor quoted him as not "reconsider and retract" views that differ sile silos, but not population centers. the stating: "Are we supposed to just lay down from official church teachings on questions President's remarks gave no indication that for the Russians?" of sexual morality. he has adopted this view, but only that. were point defensecapa bilities to come into being Curran said he had been informed by first. he might deploy them. Ratzinger in a personal meeting in early March, that Pope John Paul II had approved the findings of an inquiry which concluded Rudman in new that he no longer meets the definition of a tirade against Japan Catholic theologian. Curran would be hard-put to deny Rat­ Sen. Warren Rudman (R-N.H.) burst into a Did Tower resign zinger's charge, to say the least: He is pro­ tirade in the Senate against Japan, after the abortion, pro-homosexuality , pro-euthana­ posting of a record U.S. trade deficitof $50 overi Pentagon post? sia, pro-masturbation, ad nauseam. He as­ billion with Japan. Rudman, of Gramm­ John Tower's resignation March 10 as chief serted yesterday, "I cannot and do not re­ Rudman bill fame , a member of the Senate American representativeto the strategic-arms tract" the view that "dissent from authorita­ Appropriations Committee, stated: talks in (Jenevamay have been prompted by tive , noninfallible church teaching is possi­ "I have had it. I'm tired of their polite his realization that the post of defense sec­ ble and in certain cases is justified." and protracted negotiations, of the befud­ retary , which he has coveted since 1980, dling and befogging of the issues. Maybe will nol open up during the Reagan admin­ the only way to get their attention is to hit istration. them right square between the eyes with a Wdting in the New York Post on March bat, and some of us are willing to pick up I I. Niles Lathem reported that the former the bat." Reagan says 'partial Texas senator had decided to leave his cur­ Rudman was joined in this vein by Sen. rent po�ition , because of the failure of his Dale Bumpers and Sen. Ernest Hollings, defense' possible year-long drive to replace Caspar Weinber­ who threatened trade legislation against Ja­ President Reagan said he might consider de­ ger. "Weinberger had been at the center of pan . ploying a partial strategic defense, in an in­ an intense, year-long bureaucratic war over Their display is consistent with the terview published March 13 in the Balti­ his opposition to cuts in the defense budget Gramm-Rudman-Hollings budget-cutting more Sun. Reagan said he would "have to and his hard-line views on arms control ." bill. which, exempting only fe deral debt seriously think" about whether he would fa­ noted Lathem. "His enemies in the admin­ payments from budget cuts, raises usury to vor partial deployment of a point-defense istration and Congress had hoped to use the

70 National ElK March 21, 1986 Briefly

• SEN. SAM NUNN will soon reintroduce a treasonous measure to withdraw U.S. troops from Europe . according to a spokesman for the In­ Packard Commission Ion defense reform to committee member Malcolm Wallop (R­ I stitute for East-West Security, which get rid of Weinberger and replace him with Wyo.). are strongly hinting that Durenber­ overlaps with the Trilateral Commis­ Tower." ger should give up the committee chairman­ sion. The issue of withdrawing The strategy failed . Lathem said. when ship. because its highly sensitive nature is American troops fromEurope "is sure Weinberger appeared to accept the Pa.ckard incompatible with unstable personal behav­ to become a major topic in Congress Commission's recommendations. Rhett ior. "When you get playing around with an­ soon." said Terry McNamara, be­ Dawson. chief staff member of the Packard other woman. that can cause problems cause of Gramm-Rudman budget­ Commission. was formerly a top aide to [threatening national security interests J. cutting pressures. He "doubted" that Tower. probably more than being on narcotics." the more than a "token number of U.S. Tower has been replaced by Ronald March 1 2 Washington Times quoted Gold­ troops. probably around 20-30.000." Lehman. currently deputy assistant for na­ water as saying. would actually be withdrawn. tional security affairs at the National Secu­ A product of the Benedictine St. John's rity Council. College in Minnesota and a close friend of • MONEY· LAUNDERING leg­ On March II. Weinberger said that Zbigniew Brzezinski. Jimmy Carter's Na­ islation was the subject of hearings "some of these things can help. and some of tional Security Adviser. Durenberger has al­ begun in the Maryland state legisla­ them would cause a certain number of prob­ ready backed some highly questionable pol­ ture on March II. The bill. intro­ lems." in reference to the "reform" propos­ icies. including his early demand that the duced by legislator Clarence Davis als'of the Packard Commission and Senate United States mount covert operations to and backed by the National Demo­ Intelligence Committee . destabilize the Marcos government of the cratic Policy Committee . would make Philippines, and his recommendation that it a crime for banking officials and Washington unilaterally withdraw its tacti­ institutions to launder drug money. cal nuclear missiles from Western Europe. Davis was supported by a contingent of 20 NDPC activists and candidates Is intelligence chairman plus 50-60 black junior high school target for blackmail? students from his district. They ap­ plauded when he stated: "Mr. Chair­ Serious questions are being raised about New York Rabbi says man, we 've got to get the scum off whether Sen. David Durenberger should the streets. but we also have to go continue as chairman of the Senate Intelli­ Koch 'has moral AIDS' after the big boys at the top." gence Committee. fo llowing revelations that Rabbi Yehuda Levin. former Right-to-Life the Miimesota Repulican is experiencing se­ candidate for Mayor of New York. said rious problems in his personal life. which March II that City Mayor Ed Koch "has • THE NEW JERSEY State Sen­ could make him susceptible to blackmail by moral and political AIDS. and he' s trying to ate voted overwhelmingly in favor of the KGB or other foreign intelligence ser­ infect you all." Levin spoke at a preliminary bill sponsored by Sen. Frank Graves vices. City Council hearing on a homosexual "non­ for a mandatory three year minimum According to accounts in the Washing­ discrimination" bill which had been ap­ sentence for drug pushers. The bill ton Post. Washington Times. and other proved by a sub-committee of the council 5- was approved 35-2 after nearly an newspapers. Durenberger recently conclud­ I. Mayor Koch. a bachelor. has strongly hour of debate in which supporters ed a lurid. extramarital affair with his former supported the bill. argued that the state is 10sil1g the war 28-year-old secretary; is seeing a psycholo­ While the city's Catholic. Protestant. and on drugs and that new, tougher mea­ gist; was arrested early this year on disor­ Jewish religious leaders led an opposition sures are needed. derly conduct charges in Boston; and has force to the hearings. "gay advocate" An­ two sons with serious drug problems. Dur­ drew Humm replied . "You may think of me • THE PENTAGON has enjoyed enberger himself admitted in an interview as a faggot. but you will not make me an "inflation windfall," according to with a home-state newspaper that because ashamed of the way I live and I love." for a new report by the General Account­ of "marital problems." he has taken up res­ which he was applauded by the homosexu­ ing Office . Inflation. claimed the re­ idence in a Christian retreat house. and is als in the audience and kissed by the man port. was "overestimated," and making "sort of a historical review of some sitting next to him. therefore , since September the Pen­ of the events in my life and how I was un­ When Mayor Koch gave a detailed anal­ tagon has received several billion happy in my relationship with my wife and ysis of the bill's good points. the Hassidic dollars more than Congress intended. with other people." Jews in the audience stood up en masse and The GAO, of course, assumed an in­ Several of Durenberger's colleagues. turnedtheir backs. The gesture was morally flationrate of 3-4%. EIR has proven including former Intelligence Committee understandable. if. perhaps. an unwise that inflation is now actually 14%. chairman Barry Goldwater (R-Ariz.) and temptation.

EIR March 21, 1986 National 71 Editorial

The post-Reagan era has begun

In the second issue of 1986, EIR 's editorial promised Part of the new "Reagan doctrine" is also to destabi­ that this would be a "tumultuous year." Today, we lize South Africa . Assistant Secretary of State Chester survey a world panorama, as the first quarter of the year Crocker designated the African National Congress, a draws to a close, that more than testifiesto the accuracy Soviet -controlled terrorist organization , as "freedom of that forecast. fighters ," just as the South African government took As President Reagan's fore ign policy speech of steps to fulfill its pledge to eQd apartheid. March 16 established, the post-Reagan period definite­ We may even be at war with the Soviets by the end ly began with his second inauguration . The truth is, that of this year, because of another war between North Ronald Reagan is essentially working under license Korea and South Korea, set off by the stupidity of from Soviet party boss Gorbachov, in a deal worked "Jimmy Reagan's" policies. A State Department offi­ out at Geneva. He probably does not know all the de­ cial told the New York DailyNews on March 2 that the tails of the deal ,· but that does not change the situation. State Department will carry out toward South Korea He wants to impotently throw American support behind the same policy it did towarq the Philippines-that is, a gang of drug pushers and mercenaries, against the aiding the destabilization of the country . The opposi­ Sandinistas, that nest of Soviet-Cuban power which tion NKDP party in the Republic of Korea makes no Jimmy Carter brought to power in Nicaragua. pretense of hiding its overriding aim to overthrow the The irony is that Reagan has done the same thing in governmentof President Chun Doo Hwan; and it is tied the Philippines as Carter did in Iran , and he is in the to an emerging anti-government student agitation which process of destabilizing the government of Panama, is boosted by North Korean infiltrators . which is only hanging on by a thread . Under the tutelage of "heavy metal rock" fan Rich­ This is the situation which "Jimmy Reagan" has ard Burt as U.S. envoy to Bonn, the United States is created, and is creating around the world. Mexico will preparing to give West Germany away to the Soviets. be destroyed within three months, because President The outcome of the French election March 16, in which Miguel de la Madrid is doing the International Mone­ the opposition led by Jacques Chirac won an absolute tary Fund's bidding, while taking self-righteous pride majority , and the March 12 referendum in Spain, in that he is "incorruptible ." Colombia, as an article in which the majority of Spanish voters expressed a pro­ this issue details, has between 120 and 180 days to NATO view, represent opPQrtunities to stem the tide survive as a nation. toward the "decoupling" of Europe from the United AIFLD, the State Department-funded American In­ States. stitute for Free Labor Development, which promotes This can only occur ifthe population is transformed the drug-trafficking mafia and the dirty work of Fidel into a republican movement that sees the world as a Castro's protege Robert Vesco, has several operations whole from the perspectiveof making history. We must going in Argentina . AIFLD will move in on Peru once become , as Peru'sPresident Alan Garcia addressed the it has been isolated. challenge to the parliament of Argentina during his The U. S. government is about to overthrow the speech of March 14, "the protagonists of our historical government of Tunisia, whose prime minister, M'zali, destiny." represents the stability and continuity of one of the few We believe that the United States, and the world, real allies of the West in the southern Mediterranean, are ready for such a change . To achieve this, there is and an actual democracy. If Tunisia is toppled, the no alternative to the rapid growth of the number of whole of Africa goes. subscribers to EIR . The next weeks will be decisive .

72 National EIR March 21, 1986 State Department coup in the · Philippines Who Said it First? EIR Did!

How did the U.S. State Department destroy Ferdi­ nand Marcos, America's long-term ally in the Pa­ cific? EIR on-the-scene reporters had the story. seven months before the Philippine tragedy unfolded. and President Reagan succumbed to the State Department conspiracy: they documented how traitors in the U.S. State Department and Senate had a/read\' plotted a coup against Marcos. By August 1985 . Ph ilippine traitors Lt . -Gen. Fidel Ramos and Defense Minister Juan Ponce Enri le had been tapped to lead the coup.

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