cultural Por there is nought God lwes, be it not one who dwells with WisllDm . . • wickedness pre1Jailsnot wer wisllDm. -Wisdom, 7:28-30.

Call (703) 777-3661 or Let your loved ones dwell with Wisdom Toll-Free (800) 453-4108, this Christmas, with beautiful books from Ben Franklin Booksellers, Inc. Ben Franklin Booksellers 107 South KingStreet Leesburg,Virginia 22075

No. Please send me: copies Total The Unknown Leonardo. Large, hardcover edition full of paintings and draw­ ings of this important Renaissance artist. A must for all art lovers. (Many other art Unknown Leonardo $37 __ ___ books also available.) $37. The Writing of Swift $22 -- ---

Complete Works of William Shakespeare. Beautiful leather cover, hardbound Life of Douglass $15 edition. $25. Life of Beethoven $37

The Writings: Jonathan Swift. A wonderful collection of Swift's works. Essays ofM. Carey $10 Paperbound. $22. Leonardo da Vinci $22 The Life of Frederick Douglass. The autobiography of a runaway slave who Aesop's Fables $19 became Abraham Lincoln's adviser and Consul General to Haiti. Paperbound. $15. Subtotal Thayer'sLife of Beethoven, 2 vol. set. A must for any music library, the most Sales tax comprehensive treatment of Beethoven available. Paperbound. $37. (Va. residents add 4.5%)

Shipping __ Miscellaneous Essays of Matthew Carey. Contains many little-known works of ($4.00 first book, $.50 each additional book) thisgreat nation-builder, including "History of the Yellow Fever," "Essays on African Colonization," and "Critical Examination of the Tragedy of Hamlet." Hardcover. $10. TOTAL

FOR CHILDREN Enclosed is my check or money order, payable to Ben Franklin Booksellers, Inc. Leonardo da Vinci, by Richard McLanathan. For readers ages 10 and up. Visa Contains many excellent reproductions. Hardcover. $22. Charge my Mastercard

No. ______Aesop's Fables. A wonderful hardcover collection of these classic tales for the young child. $19. Expir.Oate ------

Signature ______Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Edward Spannaus, Nancy Spannaus, Webster Tarpley, e close out our last issue of 1993 with seve l unique reports. Carol White, Christopher White W � Science and Technology: Carol White In International we have the only U.S. coverage of an important Special Services: Richard Freeman recent conference on Bosnia-Hercegovina in Germany; Part 2 of the Book Editor: Katherine Notley Advertising Director: Marsha Freeman scalding interview with Russian anti-communist I opposition leader Circulation Manager: Stanley Ezrol Urazhtsev; and a blow-by-blow account from our Colombia bureau,

INTELLIGENCE DIRECTORS: of how drug lord Pablo Escobar met his end. Agriculture: Marcia Merry On the centerfold, pp. we focus on the �ellout of Ukraine Asia: Linda de Hoyos 36-37, Counterintelligence: Jeffrey Steinberg, by the West, which is bound to escalate the consolidation of power Paul Goldstein Economics: Christopher White by a "Third Rome" military-based regime inside the former Soviet European Economics: William Engdahl Union. On the eve of the rigged Russian Dec. 12 ballot, Lyndon Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus LaRouche has pointed to this strategic blunder as a potential trigger Medicine: John Grauerholz, M.D. for war. Russia and Eastern Europe: Rachel Douglas, Konstantin George In Economics, John Hoefle's speech to a reoent conference in Special Projects: Mark Burdman Mexico, exposes the looming financial crash that lies behind the United States: Kathleen Klenetsky North American Free Trade Agreement and the Federal Reserve's INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura . plan for dollarizing Ibero-America. From Europe, Mark Burdman Bogota: Jose Restrepo reports on the Jubilee orgy of the Club of Rome, the oligarchist Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen institution which has promoted the demise of the human race for 25 Houston: Harley Schlanger years. Lima: Sara Madueiio Melbourne: Don Veitch I am sure there is no need to urge readers to tum to the Feature, Mexico City: Hugo Lopez Ochoa an interview which Lyndon LaRouche granted to our sister Spanish Milan: Leonardo Servadio New Delhi: Susan Maitra magazine. In our next issue, dated Jan. 1, 1994, we will mark the 30 Paris: Christine Bierre years since the death of JFK with an in-depth r�port on what has Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson happened to the U.S. physical economy since tli! Apollo Mission Washington, D.C.: William Jones was replaced with the Great Society. Wiesbaden: Goran Haglund Commenting on the repair of the Hubble space telescope by EIR (ISSN 0273-63/4) is published weekly (50 issues) Shuttle astronauts on Dec. 8, LaRouche said, "WhtttNASA is dOIng, except for the second week of July, and the last week of December bv EIR News Service Inc., 3331/2 and God bless it for that, is saving-and dramatically with this Pennsylvania Ave.. S.E" 2nd Floor. Washington. DC 2 0003. (202) 544-7010. For subscriptions: (703) 777- work-the space capability. It is preventing us from losing every­ 9451. thing we built up in space capability" since Kennedy's death. The European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH. Postfach 2308, physical side of the work is "impressive in itself," he said. "But 65013 Wiesbaden; OUo von Guericke Ring 3, 65205 Wiesbaden-Nordenstadt, Federal Republic of Gennany the point is, they made an all-out effort to do the job right," and Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, Michael Liebig "demonstrated that we still have the capability to get off the 'mud of In Denmark: EIR. Post Box 2613, 2100 Copenhagen OE, go some place and Tel. 35-43 60 40 this planet and do something�rather than sit at In Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 home and complain about so-called overpopulation. Colonia San Rafael, Mexico DF. Tel: 705-1295. That should be Japan subscription sales: O.T.O. Research Corporation, . ..a matter of national pride. And presumably, 'that might spread Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. and become infectious, and get some other Americans out of the Copyright © 1993 ElR News Service. All rights reserved. mud mentally Reproduction in whole or in part without permission strictly and doing some thinking, and being proud of being prohibited. Second-class postage paid at Washington D.C., human or being Americans once again." and at an additional mailing offices. Domestic subscriptions: 3 months-$125, 6 months-$225, I year-$396, Single issue-$l0 Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. TIillContents

Interviews Departments Economics

52 Junichi Hirokami and 60 Report from Rio 4 Derivatives regulators set Yasukazu Uemura The barracks are boiling. course for disaster The conductor of the Norrkoping Th� Bank for International Symphony in Stockholm, Sweden 61 Report from Bonn Settlements is forcing the smaller and the president of the Tokyo German democracy in a profound players out of the market, as U.S. College of Music spoke with EIR crisis. reglIlators tum a blind eye to the while the college's orchestra was fad that derivatives are swallowing touring the United States. 72 Editorial up Fhat remains of traditional Full speed ahead on cold fusion. inv�strnentbanking . 54 Vitali Urazhtsev A member of the now-abolished 6 W f are heading toward the Supreme Soviet, Mr. Urazhtsev biggest financial collapse in headed the firstindependent trade Correction: In our issue of Nov. hi�tory union of Russian military 12, we misspelled the name of the A speech by EIR's John Hoefleat a servicemen, Shield. He is now in translator of Kepler's New mec:ting of Mexican farmers in hiding, having been accused of Astronomy, William H. Donahue. Cit.jdadObregon . "organizing mass disorders" because of his actions in defense of 12 A.L favorite Soros helped the Constitution suspended by Nazis loot Jews Yeltsin. The conclusion of a two­ part interview. 13 Currency Rates

14 U.�. Unemployment Photo and graphic credits: Cover, Cc)verup EIRNSISalvador Lozano. Page 14, EIRNS/John Sigerson. Page 17, 15 Royal fest for Club of EIRNSIStuart Lewis. Page 27, Rqme bodes ill for EIRNS/Javier Almario. Page 31, Europe's future UNICEF/Ray Witlin. M*k Burdman reports from Hahover, Germany, from a gathering of malthusian ghouls. Dotumentation: Club of Rome prqmotes "ozone hole" fraud.

18 L�Rouche and the war of id�as against the Club of Rome

20 B"siness Briefs Volume 20, Number 49, December17, 1992

Feature International National

32 Drug lord's death gives 64 Pollard clemency fight new chance for the war on revives bro,der spy probe drugs The fact that Pollard's purloined The death of Colombia's Pablo military secrets made their way not Escobar has set back the projects of only to Israel, but from there to the the drug legalizers. Soviet Union, was first exposed by Documentation: A chronology of EIR back in 1986. Now, the rest of Pablo Escobar's reign of terror. the world is finallycatching up, and some people may end up in hot Young violinists Eleonora and Ludwig Garcia per­ water very soon . form for Ibero-American collaborators of LaRouche 35 Ukraine gets remake of in Tiaxcala, Mexico, May 1992. To deprive a people Munich betrayal of Classical culture, promoting instead the degeneracy 66 Justice Department, FBI of "multiculturalism," is the road to national suicide. misconduct coming under 36 Anglo-Americans strike increased attack deal with Russia to sacrifice 22 The cultural basis of There are signs that some people in Ukraine strategic policy for Ibero­ Washington, as well as a group of America federal judges, want to clean up the In this interview with EIR's 37 NATO bows to Russia on mess left over from the Reagan­ Spanish-language publication eastern Europe Bush years. Resumen Ejecutivo, Lyndon LaRouche lays out the political 39 Bosnia-Hercegovina: 'The 68 Kevorkian exposes show tasks facing patriots in Ibero­ greatest obstacle to peace is Satanist at lVork America. They must rise to a higher the policy of Great Britain' level of grand strategy, he says, A report from Konigswinter, 69 Is George W. Bush as bad rather than running defensive Germany. as he looks? maneuvers from a cabinet warfare The newly declared candidate for standpoint. 42 Venezuela: Sao Paulo governorof Telltas profileshimself Forum loses in elections as an opponent· of outcome-based education koolqery. But scratch the 44 The Chinese Democracy· surface, and you finda free market Movement lives on, say its version of the same thing. exiled leaders Documentation: The Seattle 70 National News Declaration.

46 Will Mexico disintegrate in next year's presidential elections?

48 Voters hand major parties a surprise in India state assembly elections

50 Australian education goes from bad to worse

62 International Intelligence �TIillEconomics

Derivatives regulators set course for disast�r ! I by Anthony K. Wikrent I I

Demonstrating afreshthat they know nothing, and care less, each day. More about this, latlerI . about real economic processes, financial 'regulators in the The Price Waterhouse stpdy was led by Peter Cooke, United States and Great Britain are preparing to impose a former chairman of the Basle!Committee. Cooke gloats that new regime of rules that will supposedly bring financial de­ those banks attempting to enter the derivatives markets will rivatives under control. Derivatives are the paper instruments findthe task of establishing tJlte required data collection and like financial futurescontra cts, options, interest rate and cur­ computing systems "particularly onerous." The cost, rency swaps, foreign exchange contracts, that now comprise Cooke's study states in plain Jt;nglish, will "force some ofthe an explosively growing world-wide market of over $1 trillion smaller players out of the matket." every day. In fact, the derivatives matket is already completely dom­ The latest development in the tragicomedy was reported inated by the "larger playersi" In mid-November, the New by the London Financial Times on Dec. 7: A study, by the York City publication Swap� Monitor published the results giant accounting firmPrice Waterhouse, of the likely effects of its survey of the swaps mat1cet. The ten largest interest rate of the implementation within the European Union of the swap dealers accounted for 49% of their market worldwide, capital adequacy standards of the Bank for International Set­ according to the report. , tlements' (BIS) Basle Committee, found that "banks will But swaps are just one part of the derivatives market. In have to set aside more capital to cover securities trading and the United States, swaps account for 26.44% of notional underwriting risks." The Price Waterhouse study, which is principal amount of all derivatives, according to the figures based on interviews with 35 banks, investment firms, and fromthe Officeof the Comptroller of the Currency, released regulatory agencies, concluded that many banks that have to the House Committee on' Banking, Finance and Urban not already developed the management systems needed to Affairs on Oct. 28. These OCC figures show the top 25 assure adequate supervision and control of "both risk and commercial bank and trust companies in the U . S. accounting allocation of capital," are likely to findthat the costs of adding for $10.53 trillion in notionallprincipal amount of all deriva­ such systems are greater than the cost of new capital. tives outstanding, out of a tqtal $10.949 trillion. (Notional principal amount is a measur� of the underlying principal on Smaller players to be forced out which derivatives are based,' with each derivatives contract Those few firms that are already firmly entrenched in counted only once; the dollar amount of trading of deriva­ the derivatives markets will pretty much have the field to tives is 30 to 50 times either notional principal amount, or the themselves. In fact, the Financial Times reported, "large actual cost of the derivative, with each derivatives contract firms which had already invested in risk pricing models for counted each time it changes hands. ) their securities and derivatives trading businesses tended to Only 0.32% of the nati<)n's 77,800 banking and trust welcome the directive because they believed it would give companies-three of every 1.000---controis 96. 18% of the give them an advantage." "Risk pricing models" refers to the largest and fastest-growing financial market. Narrow the extraordinarily complicated computer programs required to focus a bit more, and the pic�ure is even worse: The largest "mark to market" a bank's derivatives portfolio at the end of ten banks control 91.78% of the derivatives market; the

4 Economics EIR December 17, 1993 largest fivecontrol 75.52%. Now comes Cooke, who deigns 1992, to $1.537 trillion on June 30, 1993. That increase of to infonn us that the latest regulations proposed by the BIS $523 billion is just slightly smaller than the total amount will "force some of the smaller players out of the market." of commercial and industrial loans outstanding at all V.S. commercial banks in April 1993-$589.7 billion. In other Regulators 'see no evil' words, one single institution, J.P. Morgan, increased its de­ It seems past time to call in the supposedly now aggres­ rivatives paper in one year by just about the same amount of sive Anti-Trust Division of the V.S. Department of Justice, bank loans to all industrial and commercial finnsin the entire especially since V. S. regulators have repeatedly said they V.S. economy. see no problem. V.S. Comptroller of the Currency Eugene In fact, while Morgan and the other large money center Ludwig told the House Banking Committee on Oct. 28 that banks were expanding their derivatives portfolios by 40-50% "by separating out the risk components of traditional financial or more, the total amount of commercial and industrial loans instruments, derivatives can-and do-lower the risk of fi­ outstanding was shrinking. From April 1992 to April 1993, nancial transactions for banks and others .. ..Any regulato­ the amount of commercial and industrial loans out to V.S. ry approach we take to derivatives should recognize and businesses fell from $609.2 billion to $5 89.7 billion-a de­ respect the important and legitimate functions that these fi­ cline of 3.2%. nancial instruments serve." As bad as these comparative figureslook , the situation is In an interview in the Financial Times on Oct. 22, V.S. even worse, because most of the money center banks' profits Federal Reserve Board Governor Wayne Angell dismissed now come from taking "speculative" positions, using the fears about derivatives, saying that whatever risks derivatives derivatives they have created. That is, banks like Morgan are pose to the banking system could be ameliorated by making no longer primarily in the business of issuing and administer­ the global banking system better able to settle and pay within ing loans; they are "day traders," moving in and out of equity, 24 hours. "I consider derivatives simply a product ofthe free bond, futures, options, and currencymarkets several times a market system," Angell stated day, sometimes even several times an hour. David Berry, In an address on derivatives to Women in Housing and director of research at Keefe, Bruyette and Woods, Inc., Finance, Inc. on Dec. 7, another Fed governor, Susan Phil­ presented figures to the House Banking Committee on Oct. lips, stated, "I do not believe that supervisors should discour­ 28, showing that in 1993, Morgan is expected to realize age banks from assuming [derivatives] risks. Rather, we $1.453 billion in profits from trading' for its own account; should seek to ensure that the risks they assume are prudently Bankers Trust, $1.182 billion; Citioorp, $1.507 billion; managed." Chase Manhattan, $548 million. No wonder Michael G.J. One suspects that perhaps the regulators don't want to Davis, deputy head of risk management for Chase, told the jeopardize their future careers when they leave "public ser­ New York Times Aug. 4, "The bank's biggest fear would be vice," perhaps hoping to follow fonnerNew York Federal a long period of calm and stability in the markets, which Reserve Bank President E. Gerald Corrigan into "retirement" would lull companies and investors into slowing their trading at such places as Goldman Sachs (where senior partners are activities. The worst thing for us is a marketplace where being paid a bonus of $5 million this year; junior partners nothing happens. " will have to struggle home with only $1 million). However, No small part of the banks' proprietary trading is under­ again, it is perhaps best to leave this issue to the V.S. Depart­ taken for the purpose of "dynamic htdging"-that is, ad­ ment of Justice. justing the banks' risk profile by moving in and out of the various financialmarkets , depending on what the banks' de­ Banks cut loans for productive activity rivatives holdings are. The largest firms, such as Morgan, The real risk inherent in derivatives can only be seen by now do computer evaluations continuously through out the asking: What is the function of a banking system? It is to day and night. The regulators are dembnding that the banks supply new credit for the expansion of those companies in­ now "mark to market" their derivatives holdings at the end volved in the production of real wealth. In 1990, when all of each day, so that weaknesses can be itnmediatelyidentified V . S. companies raised a total of $446 billion in new financing and acted upon the next day. (not even new capital-only $24 billion was raised through Rather than forcing banks back into the business of pro­ equity; $291 billion was borrowed, and $131 billion was viding loans to commerce and industry, regulators are ex­ privately raised), the notional principal amount of derivatives acerbating the problem. For the regulators to say that their outstanding increased from 1990 to 1991 by $1.863 trillion­ new rules will keep derivatives "under oontrol," is like saying over four times more than the 1990 amount of new financing you are still in control of a car that has plunged over a cliff, raised, and almost three times the $701 billion of new financ­ because you still have your seat belt 00, and that the blame ing V . S. business enterprises raised in 1991. lies not on the fact that you were asleep at the wheel, but on The OCC figures show that Morgan's total portfolio of the car's speed and steering angle at the point that the car all derivatives had grown from $1.014 trillion on June 30, began its plunge.

EIR December 17, 1993 Economics 5 We are heading toward the biggest financial collapse in history , by John Hoefle

The /ollowing speech was delivered by Mr. Hoefleat a meet­ intelligence network operatin� along the Rio Grande tried to ing o/ the Permanent Forum o/ Rural Producers in Ciudad break off a portion of Mexicq and create the Republic of the Obregon, Mexico on Nov. 11. Rio Grande. In 1851, these petworks tried again, with La Republica de la Sierra Madre! For the past four years, I have been the banking columnist The leaders of this netwprk included Charles Stillman for EIR magazine, and prior to that I covered the Texas banks and Capt. Richard King. Stillman made a fortune running for EIR's Houston bureau. From this vantage point, I have riverboats along the Rio Grande, and King was one of his witnessed the virtual disappearance of the Texas banks, captains. Stillman eventuallYJ returned to New York, where where seven of the eight biggest banks in the state failed, to his son James Stillman used tijismoney to found the National New England, where the region's second-largest bank failed City Bank, which today is known as Citicorp. The Stillman and the State of Rhode Island declared a banking emergency. family later married into the I infamous Rockefeller family, But these regional crises, as devastating as they were, are which controlled Chase Man"attan Bank. merely reflections of a much larger crisis which is now un­ Prior to the outbreak of th¢ U.S. Civil War, Captain King folding, leading inevitably to the worst financial collapse in used his share of the loot to �reate the giant King Ranch in centuries. This is what is behind the North American Free south Texas, which played a crucial role for the Confederacy. Trade Agreement (NAFTA) and the Federal Reserve's plan As that war progressed and j other Confederate ports were for the dollarization of Ibero-America, and is the reason why blockaded, the port of Matambros , Mexico, became a crucial these powerful U.S., Canadian, and British banks are so deter­ port-afterthe fall of New Orleans, Matamoros became the mined to throw you offyour land and take it for themselves. only Confederate port for fOrelign waterbornecommerce; and the road to Matamoros led right through the King Ranch. Citicorp The King Ranch became � major transshipment point for The prime example of the bankruptcy of the international cotton moving south, and for supplies and munitions moving banking system is Citicorp, the biggest bank in the United north, as well as the base for (::onfederate intelligence opera­ States. Citicorp is insolvent-so insolvent that three years tions in the area. The steamboats used by Stillman, King, ago, it was secretly taken over by the Federal Reserve Bank and their friends were crucial for moving the Confederate of New York. Just before Thanksgiving Day 1990, Gerald goods. When Abraham Lincoln ordered the blockading of all Corrigan, then the president of the New York Fed, sum­ Confederate goods on the Rio Grande, the boats were "sold" moned Citicorp chairman John Reed to his office to inform to Mexican members of the pperation. The cotton also be­ him that the Fed was taking control of the bank, to prevent it came Mexican, so that Rebel cotton continued to flow from collapsing. That control continues to this day. through the Rio Grande as Mexican cotton on Mexican boats. The Fed's de facto nationalization of Citicorp, and the The rebels knew that Lincoln would not blockade Mexican multibillion-dollar bailout which followed, stands in stark shipping even if it hurt the war effort due to his support of contrast to the demands of these same Wall Street financiers, the administration of Benito Juarez, despite the fact that the that Mexico privatize its banks. Juaristas did not control the port of Matamoros. This apparent contradiction is not a contradiction at all. During the intervening 1ears, and especially since the Instead, it proves the true nature of the enemy: They wield early part of this century wheJllCiticorp became the only U. S. ideologies as weapons, advancing whatever arguments they bank with deposit-taking br�ches in Mexico, Citicorp and need to help them survive, no matter what the cost, in human its allies have worked to s�bvert Mexico from within, to lives and misery, of their success. saddle the Mexican people With monstrous debts, and then Citicorp has a long history of attempting to destroy Mexi­ to destroy them in the name df debt collection. co, dating back some 150 years, even before the bank was Whenever Citicorp pretends to be the friend of Mexico, founded. In the late 1830s and early 1840s, a freemasonic one should recall this 150 ye�s of treachery .

6 Economics EIR December 17, 1993 Beginnings of the bubble FIGURE 1 On Sept. 1, 1982, President Jose L6pez Portillo, in a Number of bank failures in tllle United States, historic defianceof the international banks and their Interna­ 1934-91 tional Monetary Fund, implemented many of the policies 250 outlined by EIR founder Lyndon LaRouche in his "Operation Juarez" debt moratorium and global development plan. L6- pez Portillo asserted Mexico's sovereignty by nationalizing 200 the Bank of Mexico and the country's private banks, and setting up exchange controls to stop the flight of capital. Were the other countries in lbero-America to have found the courage to stand with Mexico, the control over your 150 economy by these international bankers would have been broken, and you would today be prosperous, instead of facing destruction. 100 Responding to L6pez Portillo's actions, then-Citicorp chairman Walter Wriston displayed the stupidity for which he will soon become quite famous, by claiming that "coun­ 50 tries do not go bankrupt. Any country, however bad off, will own more than it owes." In other words, to the bankers, in even the poorest coun­ O �nn���Trrrrrr� 1934 37 40 43 46 49 52 55 56 61 64 67 70 73 76 79 B2 85 88 91 tries, there is always something left to loot. Lyndon LaRouche responded with an open letter to Wris­ Source: FDIC. ton, appealing for Wriston and the banking community to come to their senses, and support Operation Juarez. Only such action, LaRouche warned, could prevent a "chain reac­ policy of deregulation, and the return to rational rules and tion collapse of that trillion dollars of imminently worthless regulation?" debt about to crush Westernciviliza tion. " But sanity did not prevail. Instead, the bankers, foolishly Collapse of the banks believing in their ability to defy the laws of God and nature, Let us take a look at what has happened to the U. S. banks embarked upon the creation of the largest financialbubble in since 1982, as a result of this deregul�tion frenzy. history, a bubble the very existence of which depends upon Figure 1 shows the number of bank failures from 1934, the escalating looting of the physical economy. when the Federal Deposit Insuran�e Corp. (FDIC) was On Oct. 15, 1982, some 45 days after L6pez Portillo's founded in the wake of the massive bank failures of the Great actions, President Reagan signed the Garn-StGermain De­ Depression, through the end of 1992. As you can see, aftera pository Institutions Act into law, escalating a patternof de­ flurryof failures between 1934 and 1942, bank failures virtu­ regulation of the banking system which continues to this day. ally disappeared. In the 38 years from 1943 to 1981, only 232 As I stated in my testimony before the House Banking U.S. banks failed. But from 1982 thrClmgh 1992, a staggering Committee on Sept. 8 of this year: 1,475 U.S. banks failed, representing two-thirds of all the "Since 1978, the financial communityhas repeatedly in­ bank failures in the last 49 years. In one year alone, 1988, sisted upon the deregulation of banks and other financial bank failures numbered 220. I institutions, while demanding austerity and cutbacks every­ The regulators, of course, claim Utat the drop in failures where else. Every time we have done this, it has led to since 1988 proves that the banking q:risis is over. Afterall , disaster, as the destruction of the airlines and the S&Ls, and they say, a mere 122 banks failed in :1992. Of course, that's of the U.S. work force attest. still the seventh worst bank failure t�al in FDIC history, but "In response to these disasters, the bankers demand fur­ who's counting? ther deregulation and deeper cuts. What the failure counts do not shCi)w, however, is the size "Now, with NAFfA, the bankers are demanding that of the banks which failed. Part of the reason is that the failure the United States deregulate its international political and count includes hundreds of small nxas banks. Texas law financial relations the same way we've deregulated inter­ prohibited branch banking, so each bank office in that state nally. The purpose of NAFfA is to open up Mexico and was a separately chartered bank. Wpen a big bank holding eventually all of Latin America for unbridled speCUlation and company like First RepublicBank of Dallas failed, the 120 looting, of the sort that has already devastated the American or so individually chartered banks owned by First Repub­ economy and bankrupted our banking system. licBank also failed. Except for a handful of big-city banks, "When are we ever going to learnthat the answer lies not most of these failed banks were relatfvely small. in more deregulation, but rather in the abandonment of the In states which allow branch banking, such as the New

EIR December 17, 1993 Economics 7 FIGURE 2 FIGURE 3 Assets of failed banks, 1934-91 Balance of FDIC's Ban� Insurance Fund (billions $) (billions $)

70 20

15 60

10 50

5 40

--- O J--...... - 30

·5 20

·10 -tnrTTI'TT"lrT"n'TTTTT'1TTTTrrTTTTrTTTTTTTTTTlTTn-rrrnrrrrrnrrn'Tl 10 1934 37 40 43 46 49 52 55 58 64 67 70 73 76 79 82 85 88 91

Source: FDIC. O��TnTnTrr� 1934 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91

Source: FDIC. of New England, one of the re�ion' s largest banks. The Bank of New England was closed by federal regulators on Jan. 6, 1991, to head off runs after the bank revealed that it was England states, the failure of a bank holding company would insolvent. Actually, the bank �ad been dead for more than a count as one failure. That is what happened when the Bank year before it closed, kept ali� by huge cash infusions from of New England, which at its peak was roughly the same size the Boston Fed. as First RepublicBank, failed. Runs also hit Citicorp, mainly in Asia, when Rep. John Figure 2 shows the total assets of these failed banks. Dingell (D-Mich.) announcediin July 1991 that Citicorp was Again, the regulators argue that the drop in failed assets "technically insolvent" and ''\Struggling to survive." Once shows the banking system is healthy, but one glance at this again, massive cash infusionsj this time from the New York chart disproves that contention. Fed, allowed the bank to ride �ut the panic. Furthermore, these statistics are phony. According to the To soothe worried depositors, the banks and regulators FDIC, 169 banks with assets of$15. 7 billion failed in 1990. pointed to the deposit insuran4e provided by the FDIC. This Had the FDIC included the secret nationalization of Citicorp , is an illusion, however, as Fipre 3 shows. From a peak of the picture would have been much different, pushing the $18.3 billion in 1987, the bottom fell out of the bank insur­ failed assets closer to $230 billion. That certainly would have ance fund with the wave of fa_lures. By the end of 1991, the changed the picture dramatically. so-called fund to protect defjositors was itself complefely But the real impact of the admission of Citicorp's failure bankrupt, $7 billion in the hol�. would likely have been to set off a full-fledgedbanking panic Since then, of course, the bank insurance fund has made in the United States, with depositors around the country pull­ a remarkable recovery. At thl;: end of September, the fund ing money out of the banking system as fast as they could. had a claimed balance of $10.5 billion, having risen $10.6 New England was, in fact, hit with runs against some of billion in just nine months. Tqe fund is doing so well, acting its banks at the beginning of 1991. In Rhode Island, the FDIC chairman Andrew Ho\ie recently told the American failure of a private deposit insurer which protected some 50 Bankers Association, that it .will soon be able to cut the banks and credit unions, led to runs against those institutions, premiums banks pay for deposit insurance. prompting the governor of the state to declare a bank emer­ Judging fromthe officialnumbers, the U.S. banking sys­ gency on New Year's Day 1991, closing all the suddenly tem, which was in such trouw.e in the late 1980s, has com­ uninsured institutions. Some of these depositors only re­ pletely recovered. The banks ¢laimed record profitsof $32.2 cently got back their money. billion in 1992, and reported $121 billion in profits for the first The big crisis in New England, however, was the Bank six months of this year alon�. As Hove told the bankers,

8 Economics EIR December 17, 1993 system as a whole has nearly $300 b�llion in equity capital, FIGURE 4 and is getting stronger with every parsing day. The bottom u.s. banks are overstating their equity capital line, however, tells a different story� showing what banks' (billions $) capital would look like had they fully reserved for just their 300 admitted non-performing loans. The bankers don't like this graph, which shows them some $225 billion in the hole. But they shouldn't complain, since the truth is orders of 200 magnitude worse. Reported equity capital Which brings us to derivatives, and the looming interna­ tional financial collapse. 100 , , Pop go the derivatives , The dominant characteristic of a financial bubble, is that , o , it must keep growing, or it will collapse. Like a pyramid , scheme, the amount of money needed to feed the bubble / ...., ' grows geometrically. The days when developing sector Equity capital ...... , -100 with 100% , loans, commercial real estate, junk bonds, and leveraged write-offof , buyouts were sufficient to keep the bubble going, have reported bad loans , , passed. The bubble is now living off something even more -200 , insane: derivatives. , " Derivatives are somewhat hard to explain, since they bear ...... little connection to the real world. A derivative is a financial -�0 4-"-''-''-''-Tl-.,-.-ro-.,-ro-r'-TirTlinstrument designed to profit off price differences between 1987 88 89 90 91 92 93 interest rates, commodities, and curr¢ncies. Banks and other Sources: FDIC, EIR. financialinstitutions use de.rivatives to speculate on the future prices of interest rates, commoditie.li, and currencies, and upon indices of these prices, and indices of these indices, "Banking is having its best year ever." and so on, ad nauseam. But the year is not over yet, and banking's best year may The banks like thesederivatives, since the ratesof returnon well tum out to be its worst nightmare. derivatives transactions dwarfs the amcj)unt of money thebanks can earn from making ordinary loans. Returns of 10-15% are Phony profits common in the derivativesmarkets, and theycan go to 2,000% That the banks are reporting record profits whilethey are or higher. This makes for huge profits! at least on paper. dying, says volumes about the collusion between bankers The derivatives market has explodedin recent years, espe­ and their regulators, and about the ability of accountants to cially since the U.S. stock market cr�sh of October 1987. At cook the books. They deserve some credit: It takes a lot of the end of 1992, the face value of derivatives instrumentsout­ very creative work to make these zombies look solvent. standing worldwide was an estimatedi$12 trillion, or 12 times These guys could teach the morticians a trick or two about the $1 trillion outstanding at the end of 1986, on an annual making their clients look good. turnover of$I00-$125 trillion (see Figure 5). Some$400-500 The trick in making a dead bank look solvent, is to count billion of derivatives is traded every IlIsinessday worldwide. every possible dollar as profit, while ignoring all the losses. The explosive growth of derivatives trading can also be It's a variation of the three monkeys approach: hear no bad seen in the rise in trading in financial futures contracts (Fig­ loans, see no bad loans, report no bad loans. The banks love ure 6). This shows that financial sMculation, or gambling, this approach, and so do the federal regulators, who have has become the dominant feature of \fIorld financial markets. adopted a virtual "no such thing as a bad loan" policy and Operating in collusion with the lFederal Reserve, eight made sure their bank examiners toed the line. money center commercial banks an4 four investment banks The name for this policy, in banker-speak, is "reducing dominate 95% of all derivatives tradipg in the United States. the regulatory burden." The bankers also like to speak in The banks are Citicorp, J.P. Morgan� Bankers Trust, Chemi­ sports metaphors, using terms like "level playing field." Of cal, Chase Manhattan, BankAmerica, First Chicago, and course, to these bankers, a level playing field is one where Continental Bank. The investment b�nks are Merrill Lynch, your money rolls downhill into their pockets. Morgan Stanley, Goldman Sachs, aQd Salomon Brothers. Figure 4 shows the cosmetic effect of hiding bad loans. The size of the banks' exposure to derivatives is stag­ The top line is the equity capital-or net worth-claimed by gering, especially when compared toltheir nominal assets, as the U.S. banking system. It shows that the U.S. banking shown by Figure 7. The banks' deriVatives holdings are not

EIR December 17, 1993 Economics 9 •

FIGURE 5 FIGURE 6 Face value of worldwide derivatives Number of futures contr�cts traded per year transactions, at year's end (millions of contracts) (trillions $) 160 12

140 10

120

80 100

60 80

40 60

40 20

$1 20 O �-----r-----.------.------.-----'------' 1986 87 88 89 90 91 92 O ��" Sources: International Liquidation Bank. EIR. 1970 74 78 82 86 90 part of their official assets and liabilities, but instead are considered "off-balance-sheet liabilities." As of mid-1992, the bulk of which came from their derivatives operations. At the eight commercial banks just mentioned had $6.8 trillion this rate, the big banks will rack up $7.8 billion in trading in off-balance-sheet derivatives exposure, compared to total revenue this year, a 50% incr¢ase over the $5.2 billion in official assets of $876 billion, or nearly $8 in derivatives for trading revenues in 1992. Sin�e 1983, Citicorp alone has every dollar of assets. Citicorp alone had $1.4 trillion in accounted for 25% of the trading revenue of the big banks, derivatives, compared to assets of $213 billion. Chemical and the New York banks as a wbole have accounted for 85%. Banking had $1. 3 trillion in derivatives compared to $140 The banks don't report ntH trading revenues, but ac­ billion in assets, and J.P. Morgan-supposedly a conserva­ cording to Goldman Sachs, trading accounted for $900 mil­ tive bank-had $1 trillion in derivatives and assets of $103 lion in profits at these big bankS, or 40% of their $2.2 billion billion. Bringing up the rear were Bankers Trust with $958 in profits for the quarter. billion in derivatives, Chase Manhattan with $837 billion, When the derivatives bubble pops, as it inevitably must, BankAmerica with $795 billion, First Chicago with $387 these derivatives portfolios will evaporate, taking the banks billion, and Continental with $136 billion. with them. The off-balance-sheet figures, more than anything else, show the fraud of the FDIC's official banking statistics, Banking on chaos which look at just one-eighth of the total exposure of the big The banks are so hooked onlderivatives, that mere specu­ banks. lation is no longer enough. They have become predators, When I wrote a column entitled "They're Not Banks targeting whole sections of the world for looting. Former Anymore," on these off-balance-sheet figures, U.S. Con­ Federal Reserve chairman Paul,y o1cker used to call this pro­ gressman Henry B. Gonzalez (D-Tex.) entered the column cess "controlled disintegration.P' Current Fed chairman Alan into the Congressional Record, later pointing out that his Greenspan prefers the term "cI!eative destruction." But Mi­ Banking Committee hadn't been able to get those figures. chael G.J. Davis, the deputy l)ead of risk management for Figure 8 shows how much the banks have come to de­ Chase Manhattan, said it even more clearly: "The bank's pend upon derivatives for their income. It's actually worse biggest fear would be a long period of calm and stability in than it looks, since the data for 1993 is just for the first nine the markets, which would lull �ompanies and investors into months, compared to 12 months for the prior years. During slowing their trading activities;. The worst thing for us is a the firstnine months of 1993, the seven top derivatives banks marketplace where nothing ha�pens." reported a combined $6.2 billion in gross trading revenue, Reflect upon that statement for a moment. Here we have

10 Economics EIR December 17, 1993 FIGURE 7 FIGURE 8 Derivatives portfolios versus reported assets Trading revenue of the top seven U.S. ; at big U.S. banks commercial banks (billions $) (billions $) 7

First Chicago 6

Bank of America 5

4 Chase

3 Morgan

2

Citibank

BankersTrust 0 4---,---,---,---,---_.--�--_.--_.--_.--, 1983 84 85 86 87 88 89 90 91 92 93

Source: Keefe, Bruyette & Woods. Chemical

The idea that Soros "broke the pound" is ludicrous. He $0 $1.000 $2.000 did no such thing. George Soros is an agent of Anglo-Ameri­ • Derivatives • Assets can finance,deployed by the British R(>thschildsand the U.S. Federal Reserve, to manipulate the markets. When you know Source: Comptroller of the Currency. which way the markets will go, you canmake a lot of money. In the case of Soros, the proof is clear. Soros was not only joined, but also funded by Citic!orp in his attack upon one of the top risk managers, at one of the biggest banks in the ERM. They were partners in the icrime. And when this the United States, saying that his bank's biggest fear is stabili­ occurred, Citicorp was being run directly by the Federal ty in the financial markets. Reserve Bank of New York. If stability is the enemy of the banks, then volatility and Not only that, but the Fed was, according to reports we chaos must be allies. have received, providing Soros with. inside information on But the banks like a special kind of chaos-the chaos they the financial reserves and strategies of the European central organize and control. They use chaos as a form of financial banks, allowing him to more precisely target his attack. warfare against nations and peoples, to create the conditions This is the policy of chaos at worl¢. It is evil at work. under which they can loot. For proof of this, one need look no further than our friend Never capitulate Citicorp. During the European currency crisis of September The policy of the bankers is to destroy everything in the 1992, Citicorp gained some $1 billion in revenue from cur­ world which is capable of standing in their way. They will rency trading. sacrifice nations and peoples, spread misery farand wide, sub­ The nominal cause of the European currency crisis was vert, corrupt, and murder those who oppose them. That they American speculator George Soros, who supposedly would steal the lands of farmers, when much of the world is launched an attack against the British pound. When the dust starving, tells you all you need to know about their morality. settled, the European Exchange Rate Mechanism, a device We must join together and organilze our fellow man; we to calm fluctuations among European currencies, had been must use the power of reason given to us by God. By that dealt a severe blow. The pound and the Italian lira dropped power, through science and culture and economics, we can out of the ERM, and most of the other currencies were deval­ defeat this evil and get to work building a better world for ued. Soros walked off with more than $1 billion in profits, ourselves and our children. No one will do it for us, we must and the title "the man who broke the pound." do it ourselves. But do it we can.

EIR December 17, 1993 Economics 11 several business associates of George Soros, suchas the Reich­ mann family, who, after the barikruptcy of their $26 billion real estate firm Olympia & York, �ame Soros's partners; and R. ADLfa vorite Soros Mark Palmer, who as U.S. ambassador to Hungary had helped Soros implement International :Monetary Fund shock therapy helped Nazis loot Jews and start a neo-liberal free marxet training center called the Central European University. Palmer is a protege of former Secretary of State Lawrence leburger. by Scott Thompson � According to a former merttber of the State Department's Bureau of Intelligence and Research, the ADL's defense of Financial speculator and self-proclaimed philanthropist CEDC stems from the Reichjmanns' ties to former Prime George Soros, during an April 15 , 1993 broadcast by WNET/ Minister Margaret Thatcher. j'\s Thatcher confesses in her Thirteen TV, made a startling admission on the secret of his memoirs, she took every available step to block German success. Asked by moderator Adam Smith how, in Septem­ reunification.The CEDe, with its anchor in the Reichmanns' ber 1992, he could have gone "eyeball to eyeball with the Canary Wharf office complex lin London and a regional hub Bank of England," making a fortune of $I-2 billion from the in Budapest, was intended to butflank German influence in devaluation of the British pound and the Italian lira within the East, by gaining control of �anking and by building stock, two weeks, Soros responded: bond, and real estate markets. ! "It really started in 1944, when Hungary was occupied The ADL became involve� when the Hungarian govern­ by the Germans, and me being Jewish, I was in danger of ment booted the CEDC's crqoks out of Hungary, forcing life.... When the Germans came in, he [Soros's father, a relocation to Berlin. In its �cember 1991 pamphlet titled prominent Budapest attorney] said, 'This is a lawless occupa­ Anti-Semitism in Eastern Eurdpe: Old Wine in New Bottles, tion. The normal rules don't apply. You have to forget how the ADL singled out Istvan qurka, then the vice-chairman you behave in a normal society. This is an abnormal situa­ of the Hungarian Democratic I Forum, as an "anti-Semite." tion.' And he arranged for all of us to have false papers, Csurka, who led opposition tQ the looting schemes of Soros everybody had a different arrangement. I was adopted by an and the CEDC, now heads a p�liamentary faction known as official of the ministry of agriculture, whose job was to take the Hungarian Renewal Movetnent. over Jewish properties, so I actually went with him, and we More recently, ADL West Coast director David Lehrer took possession of these large estates. That was my identity. teamed up with the Simon Wiiesenthal Center to mount an So it's a strange, very strange life. " attack against Hungarian Merdber of Parliament Viktor Mol­ Commenting on Soros's admission that he had been a nar, according to an article in the Oct. 1 Los Angeles Times. Nazi collaborator in a June 23, 1993 radio interview, Lyndon The Times followed the ADL' s script calling Molnar an "anti­ LaRouche said: "Soros is doing essentially the same thing Semite," but the only "proof" provided was the fact that now, in terms of what he's doing to easternEuropean econo­ Molnar's newspaper Uj Vilag �ad attacked George Soros ! mies and others, which he did by looting dead and dying Soros has his own ADL-oopycat outfit, the Institute on Jews in Hungary. It's a horrible image of one whom one Nationalism and Liberty at th4 Budapest branch of the Cen­ would be more likely to call 'Golem Soros' than George tral European University. The INL is run by anthropologist Soros. But that's what he does." Ernest Gellner, who had beenlat the London School of Eco­ nomics when Soros studied tlilere. Foxman said that INL's The looting of Hungary main purpose is to destroy tIlte so-called "nadi" or "ultra­ For those familiar with the dirty dealings of the Anti-Defa­ nationalists," who have expos�d Soros as a thief, not a bene­ mation League of B'nai B'rith, it is no surprise to find that factor of Hungary. Soros is also under the ADL's protection. Last Aug. 11, ADL National Chairman Foxman told this journalist that the ADL's perfidy exposed . League's highest priority in Hungary is to protect George Soros Former Irgun Zvei Leumii member Ben Hecht, in his from those Hungarian leaders who charge that he is looting the famous book Perfidy, exposed the deeper evil behind Soros' s economy. Foxman added thatgiven the ADL's resources, they tale that he learned to steal w�ile working for an employee have focused more on Germany and Russia, but they are pre­ of the ministry of agriculture to loot wealthy Jewish estates paredto defend Soros, even thoughhe has never given part of during the war. his fortune to the ADL, nor is he a practicing Jew. Nominally, that ministry Would have reportedto Admiral Foxman added that the League's next highest priority was Hortby, regent of Hungary, who had protected Hungarian to protect theCentral European Development COIp., headed by Jews before the 1944 Nazi ! invasion. As Hecht writes: Esree Lauder's son, the former U.S. ambassador to Austria, "Throughout the bedevilment! and extermination of Hunga­ Ronald Lauder. As Foxman pointed out, the CEOC includes ry's Jews, he [Horthy] remajned verbally opposed to that

12 Economics EIR December 17, 1993 project." However, Horthy was a prisoner of the Nazis in his palace, and his ministers acted at the sufferance of the urr Nazis-including, of course, the agriculture minister for C ency Rates! whom Soros's "protector" worked. Hecht writes that every aspect of the looting of Hungary's Jews was directed by SS The dollar in deutschemarks I Lt. Gen. Kurt Becher, who ran what was called the Econom­ New York late afternoonIIxIDa ics Department. 1.70 General Becher personally looted the bigger estates, as ...... in the case of the estate of the Manfred Weiss family, the r 1.60 richest Hungarian Jews. This identifies arch-war criminal

Becher as the overseer of the activity in which Soros admits I.SO to having collaborated. According to Hecht: "Becher distinguished himself as a 1.40 Jew slaughterer in Poland and Russia. He became an impor­ tant liaison figure between Hitler and Heinrich Himmler. He 1.30 was appointed by Himmler as Commissar of all German 10120 10117 11/3 11110 tVl" 11114 1211 12/8 concentration camps and made Chief of the Economic De­ The dollar in yen partment of the SS Command in Hungary. Together with New York late afternoonfIxInI! Becher in the 'Economic Department' was Adolf Eichmann.

The Economic Department was . . . a German locution . . . 140 ; for the Germans employed in removing the gold fillingsfrom the millions of teeth of the dead Jews . . . and in figuring out 130 i effective methods of torture to induce the Jews awaiting death to reveal where they had hidden their last possessions. " 120 I

Soros's apprenticeship in the looting of Jews for the Nazis !i ; fitsinto an even darker picture, of British use of the holocaust 1111 - for geopolitical ends. Perfidy tells the story of a postwar ; .100 i Israeli official, Dr. Rudolf Kastner, who had been wartime 10110 10117 11/3 11110 11111 11114 1211 1218 head of the British-spawned Jewish Agency in Hungary, and who was charged with collaboration with General Becher in The British pound in dollars: I the extermination of 600,000 Hungarian Jews. Courtroom New York lateafte rnoonftxlru! testimony proved Kastner's guilt, but also showed he was "just following orders." 1.70 As Hecht puts it: "The Nazis' patronage of Kastner, and 1.60 their agreement to let him save six hundred prominent Jews,

were part of the plan to exterminate the Jews .. ..Kastner's I.SO

. . . agreement fixed the division of the nation into two un­ - - ;- equal camps: a small fragment of prominents, whom the 1.40 Nazis promised Kastner to save, on the one hand, and the great majority of Hungarian Jews whom the Nazis designated 1.30 for death, on the other hand. " 10110 10117 11/3 UI10 11117 11114 1211 12/8 Hecht asserts that Dr. Kastner was merely following Jew­ The dollar in Swiss francs ish Agency policy: "It remained unwavering in its loyalty N ew \'ior k teIa emoon aft ftxI IIR to British policy. When British policy required silence and I

inaction toward the extermination of Hungary's Jews, the 1.60 Jewish Agency and its now world famous factotums upheld

this policy." Hecht also reveals, "Jewish Agency collabora­ 1.50 - tion with the British ...sabotaged the rescue of Europe's - � Jews and contributed to their annihilation." A prime example 1.40 was the response to "Eichmann's offer of a million Jewish lives for a few thousand trucks" in 1944. Lord Moyne, head 1.30 of the British Mandate over Palestine, dictated the response I 1.20 of the Jewish Agency: "What can I do with this million Jews? 10110 lUm 11/3 IVI0 1111' 11114 l2/1 1218 Where can I put them?"

EIR December 17, 1993 Economics 13 u. s. Unemployment Coverup

Official unemployed 8,252,000 Last month 8, 78 7,000 "Want a Job now" 6,523,0001 Last month 6,523, 0001 Part-time for economic i reasons 6,033,000 Last month 6, 175,000

Total I 21 ,808,000 Last month 21,485, 000

Civilian labor force 128,633,000 Last month 128, 714,000

Employed 120,387,000 Last month 119,928, 000 Non-farm payroll emplqyeea 110,857,000 Last month I 110,644,000

What the graph shows Total unemployed and partially employed The U.S. Labor Department's monthly un- (1965-93) employment rate (U-5b) is based on a sta- (in thousands) tistical sampling of approximately 57,000 Piart-time Total households. But in order for someone to be I for unemployed counted as unemployed, the respondent Civilian Official "Want a e.onomlc and member of the household (often not the per- unemployed job now" !asons underemployed son who is out of work) must be able to labor state what speCific effort that person made force % % % % in the last four weeks to find a job. If no spe- Year (a) (b) (bla) (c) (cia) (�) (d1a) (b+c+d) (b+c+dya cific effort can be cited, the jobless person is 1965 74,455 3,366 4.5% na1 1,�8 2.6% na1 classified as not in the labor force and is 1970 82,771 4,093 4.9% 3,881 4.7% 2,1i98 2.7% 10,172 12.3% ignored in the official unemployment count. 1975 93,775 7,929 8.5% 5,271 5.6% 3,541 3.8% 16,741 17.9% But over 6 million of these discarded people are also reported on the quarterly survey in- 1980 106,940 7,637 7.1% 5,675 5.3% 4,Q64 3.8% 17,376 16.2% dicating that they "want a regular job 1985 115,461 8,312 7.2% 5,933 5.1% 5,334 4.6% 19,579 17.0% now." These appear in the graph in dark 1990 124,787 6,874 5.5% 5,473 4.4% 4,860 3.9% 17,207 13.8% gray shading. In addition, over 6 million more people are forced into part-time work 1991 125,303 8,426 6.7% 5,736 4.6% 6,d46 4.8% 20,208 16.1% for economic reasons, such as slack work 1992 126,982 9,384 7.4% 6,181 4.9% 6,$5 5.0% 21,950 17.3% or inability to find a full-time job. These 19932 127,928 8,767 6.9% 6,4283 5.0% 6,�0 5.0% 21,543 16.8% people show up as employed in the official , statistics, even if they worked only one hour 1. "Want a job now" category estimated as 3,350 or 4.5% for bar graph. during the survey week. These appear in 2. Average to date of monthly seasonally adjusted figura. the graph in lighter-gray shading. 3. Weighted average of quarterly compiled figure.

14 Economics EIR December 17, 1993 Conference Report

Royal fe st fo r Club of Rome bodes ill fo r Europe's fu ture by Mark Burdman

Is it any wonder that the western world is in such disarray, if Jubilee gathering of the Club of Rome is taking place its leading figures elaborately patronize an organization here in Hanover." which attacks the idea of progress, fosters the creation of an So, as boring, pompous, and vacuous as many of the "ecologically sustainable steady-state economy," and seeks speeches might have been during the three days of sessions­ to phase out manufacturing and industrial investment in favor such as Russian systems analysis big�hot Dzherman Gvishi­ of a "service economy" and "non-material activities"? This ani's senile dribblings about his first !meetings with Club of is the question any sane person would pose, observing the Rome founder Aurelio Peccei some 30 years ago-the high­ 25th anniversary ("Jubilee") of the Club of Rome at Han­ level support for the Club of Romers !Underscores that a fac­ over's garish Maritim Airport Hotel from Dec. 1-3. tion of European elites wants to pro�ote the ideas that the More obscene than the fact that the ghouls of the Club of neo-malthusian organization expounqs. Rome were gathering from around the world to pat them­ Aside from the presence of the gFtterati, there was also selves on the back for the damage they have done to humanity the matter of conference financing, 'to the tune of several since they published their Limits to Growth fraud in 1972, million dollars, from a host of Gerniany's more influential was the lavishness with which the event was patronized by institutions, including the Bertelsmaqn Foundation (Bertels­ leading business, banking, and political institutions of Ger­ mann is one of the largest publishin� houses in the world), many. This was in evidence not only at the official proceed­ Siemens, Norddeutsche Landesbank,! Volkswagen, and oth­ ings at the Maritim Airport, but at receptions at the eminent ers. In the case of VW, the company'� much-publicized cost­ Herrenhausen Castle and Kestner Museum in Hanover, and cutting policy obviously does not extend to the Club of Rome. other events. There were certainly no "limits to growth" The formal organizer of the event was a Hanover-based of the midriff bulge of participants gorging themselves at grouping called the InternationalPartnership Initiative E. V., luncheons and banquets as they discussed how to reduce which includes on its board of goverqors top representatives world population and to make the planet "sustainable." of VW, the Robert Bosch electronids giant, Siemens, and The whole event was choreographed like a coming to­ Deutsche Bank, as well as Club of Rbme President Ricardo gether of royalty. Spain's Queen Sofia was the royal "fairy" Diez-Hochleitner of Spain. I presiding over the event, sitting at the same podium with former Soviet President Mikhail Gorbachov at the opening 'A break with the old idea of progress' session Dec. 1. Gorbachov had absolutely nothing of impor­ The conference title was "Europe Vision 2020: Its New tance to say during the week, but the paparazzi and media Responsibilities in a Changing Worldl." The Club of Rome's mavens were out in force observing every movement he or patrons are hardly unaware that Eurqpe is entering a period his wife Raisa made. He was photographed literally rubbing of profound crisis, and that the neo-li�eral ideas of the 1980s noses with Queen Sofia. no longer work. This awareness is reflected in the many High society was otherwise represented at the hotel criticisms of "liberal free trade," "International Monetary in the person of Baron "Heini" Thyssen-Bornemisza from Fund shock therapy," etc., voiced in various speeches or Madrid, one of the richest men in the world, and at the papers at the conference. What is neteded, they are aware, Kestner Museum dinner on Nov. 30, in the person of is a new post-liberal "paradigm." Billt this paradigm must the daughter of the Princess of Hanover, who happens absolutely not be one that favors the irevival of the physical to also be the Duchess of Braunschweig and Lueneburg. economy and production, along the lines of Lyndon As the guests at the Kestner ate the mutton and eel LaRouche's "Productive Triangle" infrastructure develop­ delicacies for which Lower Saxony is famous, Mayor ment program for Eurasia. Club of �ome insiders are well Herbert Schmalstieg declared it to be "an honor that the aware that, from the period from tJ/le last weeks of 1989

EIR December 17, 1993 Economics 15 to the present, LaRouche's program has received massive bers of the Club of Rome repr�sent a break with the old idea circulation and growing support in East and Central Europe. of progress." The Club of R�me is bringing "respect for They are perfectly willing to steal and co-opt LaRouche's nature and people back into c�ntral focus." Schroeder was diagnoses, while seeking to channel ferment into fascistic seconded by Club of Rome co.jrounder Dr. Alexander King, directions, by counterposing the virtues of austerity (al­ speaking on the afternoon pan�l of Dec. 1. "Have we forgot­ though not for Club of Rome activities) and "ecologism" to ten that economics is for people, as it was in the days of the banes of the "hedonistic, materialist" West and to the Ricardo?" he exclaimed. Eco,omist David Ricardo (1772- ravages caused by shock therapy policies. 1822) was an outspoken oppoqent of technological develop­ Ironically, the event was staged in Hanover, which, as ment and improved social conditions, and an admirer of Par- more than one speaker recalled, is known as the "Leibniz son Thomas Malthus. I city," in honor of the long years in which Gottfried Wilhelm Insisting that the Club of R�me' s members "are not zero­ Leibniz, the great universal thinker of the 17th century, re­ growthers," King got to his main point: "But the fact is that sided there. Just one weekend later, the co-thinkers of Leib­ economic growth cannot go on forever, and this is something niz's greatest living admirer, Lyndon LaRouche, held their that economists have forgotten. John Stuart Mill foresaw a own conference in another part of Germany, to discuss how steady-state economy, with the concentration of efforton the a Leibnizian direction can be found out of today's world growth of quality. We have to! look at the matter of growth crisis, based on the theses LaRouche recently presented in from a long-term perspective, land look more at quality and his article on "History as Science" in the Schiller Institute not at quantity." He soon the�after reminded his audience publication Fidelio (Fall 1993). that the "carrying capacity" qf the earth was such, that if The opposing perspective guiding Club of Rome partici­ "American-level standards ofl living" were guaranteed for pants was stated by Lower Saxony Gov. Gerhard Schroeder, every inhabitant of the planet, �here could only be 1.8 billion the official conference patron. At the introductory session people sustained. i Dec. 1, flanked by Gorbachov and Queen Sofia at the podi­ Club of Rome General Sectetary BertrandSchneider had um, he welcomed the Club of Rome by saying: "The mem- made the same points, in essente, at the previous day's press ! i

to exaggerate the impact that m makes on the biosphere. Man has less impact than we �bave said he has." At first, he blamed "the media." How,ver, when asked whether Club of Rome promotes the Club of Rome itself may h.ve created a "global Fran­ 'orone hole' fraud kenstein," by having induced ja whole generation of ex­ perts and young people into bejlieving that man's produc­ tive activity is inherently destI"4ctive,he responded, "That A leading collaborator of Club of Rome co-founder Dr. may be the case, indeed. It alIi may have gone too far. A Alexander King confessed that the Club of Rome practices younger generation in the Clu� of Rome is less convinced scientific fraud as a matter of course, but insisted that ofthis notion of 'limits,' the pr�blem is the older members this practice must be continued, in order to maintain and who have gone so far out on a limb that they have created strengthen its global influence. During a private discus­ a trap they can't get out of." I sion with EIR following the Nov. 30 Club of Rome press He also noted that the p$t years have proven that conference in Hanover, this individual brought up the fact the methods and statistics use� in the Forrester-Meadows that internationally there has been great exaggeration of Limits to Growth report were lall wrong, but "it was the the role of man-made chlorofluorocarbons (CFCs) in de­ best they could come up with �t the time; it was not con- pleting upper-atmospheric ozone. He reported that the scious fraud." I scientific community is now realizing that volcanic erup­ Beyond all this, this indivi4ual insisted: "I have differ­ tions are vastly more important in sending chlorine up into ent views as a businessman apd scientist than I do as a the atmosphere than are the industrial processes using member of the Club of Rome. j'\sa businessman or scien­ CFCs. Even beyond this, a Club of Rome researcher Mo­ tist, I find many scientific bre*throughs compelling and hammed al-Kassas of Egypt, who is an expert on deserti­ attractive. But I am cautious a$ a Club of Rome member, fication, has come up with findingswhich prove that chlo­ concerned about 'sustainability.' The Club of Rome, you rine sent up into the atmosphere from the desert dust is of see, is an important institution, it has a lot of influence, central importance. Also important are the winds which including with many governtqents, and I would hate to carry chlorine from the oceans into the upper atmosphere. see that influence challenged, jeven if some of the direc­ This source stated candidly, "Our pride forces us tions the Club has taken are du�ious." 1

16 Economics EIR December 17, 1993 conference, in response to a question from EIR on the Club of Rome's view toward building a "wall" (or "Limes," to use the Roman Empire's term, which is becoming popular again) between the countries of the North and the South. Without directly responding in the affirmative, Schneider ranted that the problem is that western "governments, technocrats, en­ terprises and engineering companies" had insisted on bring­ ing "large, spectacular projects" to the South, rather than meeting the "primary needs" of the populations there.

'The conventional wisdom has collapsed' The Club of Rome is aware that the key battleground is in the field of ideas. American consultant Martin Lees, who works in France, told attendees: "The conventional wisdom on which everything has been based for the last 40 years has collapsed. The difference, now, is that people are willing to admit that. We are at a turningpoint in the history ofthought. In 1982 , associates of Lyndon Lat(OUCn!': We must dramatically change the concepts on which human fo under Aurelio Peccei, sitting at left , activity is based." policies meant the murder of billions. Frenchman Andre Danzin had his own way of attacking the "conventional wisdom," combining what would appear to be a cogent attack on "free market" policies with a demand an Entrepreneur: Practical Steps the Introduction of a that Europe move into what he calls the "non-material" age. Market Economy to Eastern According to Danzin: "Planned economies are now bankrupt. The book is sprinkled with Free market economies are headed for a major accident. The for the East," attacks on economic breakdown will shock the established industrial therapy policies, and sensible countries if the plague of unemployment becomes insupport­ corps of small and medium-size able: One-quarter of all young people will not have jobs, similar to Germany's Mittelstand, university diplomas will be useless, executives will lose their East. jobs at middle age. This kind of social situation will have However, that is his secondary Steilmann 's central severe repercussions throughout the world ....Contrary to thesis is that there must be an allrc;" "u" IIIJa�M effort to today's popular opinion, classic free market economic theory and that "the legal sys­ is incapable of supplying the necessary answers for the chaot­ tem must put human rights and 's rights into effectwith ic modern world; the theory is based on laws established equal emphasis ....Man and nature are not separate, but during the industrial age, and it does not express the laws form a dialectical unit which cannot ccommodate any priori­ j which dominate the economy of non-material activities. Con­ ty given to human interests with ut considering those of sequently, the solutions proposed by the nations which are nature." This proto-Marxist verbiage is mixed with praise for ' apparently the most powerful, especially the G-7 , are anach­ the ecological work of U.S. Vice P esident Albert Gore, the ronistic and contribute to the chaos. The economic crisis and work of the 1992 "Earth Summit" i Rio de Janeiro, and so the unemployment problem in the countries of the OECD on . will not be solved by a cylical return to growth. This theory The publicity-hungry Steilman is known in the German confuses the therapy needed for a cold with that of advanced press as the "ecological-entrepren ur." He is an honorary cancer. " consul of the Ukraine and Presidium Member for Germany But Danzin' s solution would seem to be to treat advanced in the International Committee fo I Economic Reform and cancer by giving the patient AIDS. He insisted that Europe Cooperation in the Commonwealtli of Independent States. redirect its energies to the areas of "information, communica­ This only gives a taste for how the bub of Rome strives to tions, intelligence, and non-materials." pervert the legitimate aspirations f the populations of the A more lurid version ofthe same view was that presented formerly Communist domain of East and Central Europe and by German textile magnate Klaus Steilmann, one of the initi­ the former Soviet Union. ators in Germany of the strategy of industrial "relocation"­ The conference, indeed, had aljlI impressive representa­ or, to avoid neologisms, shifting partsof the industrial pro­ tion from these countries. Aside from Gorbachov, there was cess of a firmto where labor is cheaper. Steilmann, who only Hungarian President Arpad Gonct Bronislaw Geremek, joined the Club of Rome in 1992, is now one of its most deputy chairman of the Democrattc Union of Poland; top outspoken and enthusiastic members. He circulated, gratis, Russian scientist S. Kapitsa; and number of others from copies of his new book, System Transformation-As Seen by Russia, Poland, Romania, Bulgaria and Croatia.

EIR December 17, 1993 Economics 17 From 'pure manufacturing' to 'service economy' One arena where the Club of Rome is concentrating its efforts is in the "future of work," for which a special task force has been created. Alexander King introduced this theme at the beginning of the Nov. 30 press conference. He proclaimed: "Full employment as we've known it in the past will never happen again. We need different approaches to LaRouche and thewar activity, with a smaller part of the population involved in gainful employment and a larger part in other forms of ac­ of ideas against tivity." This leitmotif of "work" (or perhaps no work) and "solv­ ing the unemployment problem," was repeated incessantly the Club of Rome during the firstcouple of days of the conference. Obviously, by Mark Burdman there is a very real and dangerous problem in Europe and other parts of the world with growing unemployment, but finding a real solution, based on increasing production, has Since its inception in 1968, the!Club of Rome has been the nothing to do with the Club of Rome approach. Hence, in his quintessential counter-movement to the Leibnizian Academy opening address, Lower Saxony Gov. Gerhard Schroeder movement created by Lyndon LaRouche during 1966-68. praised to the skies the new Volkswagen arrangement of a Hence, it is ironic that the Club would choose to hold its 25th four-day work-week, as a positive "crisis-management alter­ anniversary get-together in Ha�over, the city of Gottfried native" to layoffs . VW, of course, is one of the big supporters Wilhelm Leibniz, whose philiosophical writing inspired of Club of Rome activity. LaRouche during his teens. Another angle on this was presented Dec. 2 by Orio In the 1966-68 period, LaROuche was building the seed­ Giarini, head of the Geneva Association, the think-tank of crystal of what would later bec

18 Economics EIR December 17, 1993 credibility zoomed, support for his movement grew, and it LaRouche. Laszlo is today a hero of n\lmerous gnostic move­ was clear that the world was at a crossroads: the future would ments, including the Baha'i Internatf,onal and the London­ witness either some kind of positive, ordered transformation, based Lucis (formerly Lucifer) Trust. centered around a reorganization of the world economy and a renewal of industrial growth and scientificand technological Refuting zero growth progress, or a tum toward fascism. It was the aim of the Club The battle between the LaRouche movement and the neo­ of Rome and its founders and backers to actualize the latter malthusians took a new direction when LaRouche's wife, alternative. Helga Zepp-LaRouche, founded the (:lubof Life, explicitly The roots of the battle between LaRouche and the Club as a counter to the Club of Rome. 1fhe Club of Life was of Rome go back to the period from 1948 to 1952, when officiallyfounded at a conference in Tfome in October 1982. LaRouche was making a fundamental breakthrough in prov­ Soon thereafter, Lyndon LaRouche frote a book on behalf ing that the claims of the crowd pushing the new fashions of of the Club of Life, entitled, There a� No Limits to Growth. "artificial intelligence" and "cybernetics"had no correspon­ In the first chapter,. "Mother Nature Kills German Forests," I dence with the reality of human creativity, human history, LaRouche wrote: and the laws of physical economy. "It is not the growth of indust� which destroys the The Club of Rome represents cybernetics and systems world's forests. In most cases; the caUse is a lack of industrial analysis run amok, epitomized by Meadows and Forrester's output, a lack of good industrial management of the eco­ Limits to Growth. Their projections of world "carrying ca­ sphere. Over the past 15 years, the gi"eatest single cause for pacity," "limited resources," etc., were based on the input of destruction of the world's 'ecology' has been the toleration linear equations that axiomatically excluded the possibility of the policies demanded by the so-called 'ecologists,' the of the effects of scientificand technological progress, which so-called 'neo-malthusians' of the Cliub of Rome, of the In­ would remove such "limits," the kind of progress on which ternational Institute for Applied Systems Analysis (IIASA), all of human history has been based. of the World Wildlife Fund, the Aspen Institute, the Ford Foundation, the Rockefeller Foundrtion, the U.S. Sierra LaRouche's just economic order Club, and so forth and so on." He dC1nouncedthe Forrester­ The battles between the Club of Rome and the LaRouche Meadows report as "conspicuously fraudulent," because of movement continued throughout the 1970s, not necessarily its axiomatic exclusion of technologi¢al progress, and raised out in the open, but often in the corridors of power in many the following point: I countries. Hence, over 1974-76, as LaRouche was promot­ "How could anyone have believe4 such nonsense? Every ing the concepts of a general debt moratorium for the devel­ qualifiedscientist knew that the kind� of arguments used by oping sector and the creation of an International Develop­ the Club of Rome were a fraud. Mbst engineers knew it. ment Bank around which a new, just world economic order Industrial corporations knew it. If tile news media checked could be built superseding the predatory InternationalMone­ with scientists, they, too, would ha�e known it. If govern­ tary Fund and Bretton Woods system, the Club of Rome was ments and political parties had beh�ved responsibly, they expanding into the Third World, presenting top ministries of would have denounced the Club of �ome and its Limits to Iran, Egypt, Venezuela, and other countries with the "region­ Growth as a monstrous hoax." ; al studies" contained in the 1974 book Mankind at the Turn­ It is slightly more than 10 years $ince those words were ing Point, co-authored by Case Western Reserve Universi­ written. Any sober evaluation of the �resent world situation ty's Mihajlo Mesarovic and Hanover's malthusian planner, would have to concur that the persist�nce of leading interna­ the late Eduard Pestel, an intimate of Alexander King and tional figures, foundations, governments, and media in pro­ Aurelio Peccei. That book began with the warning: "The moting the Club of Rome's ideas, Us only made far worse World Has Cancer and the Cancer Is Man." the problem identifiedthen by LaRouche. Had his proposals Further Club ofRome assaults came with the 1976 publi­ for a sane reorganization of the world monetary system, cation of Re-Shaping the International Order, and in 1977, linked to the promotion of the most �vanced forms of tech­ Goals fo r Mankind. The latter, a bitter attack on industrial nology and the frontiers of science, been adopted, the world growth and urban civilization, was written by Dr. Ervin Lasz­ would now be looking at a future �f vast promise, as we lo, at the time head of the "Project on Futures" of the United head toward the next millennium. Our accompanying article Nations Institute for Training and Research (Unitar). illustrates that the Club of Rome mafllllges to receive backing Throughout the late 1970s and into early 1980s, Laszlo was from some of the westernworld 's mO$t prominent and power­ a compulsive profilerof LaRouche activities and writings, ful institutions. Again, and under f¥ more perilous condi­ and was caught by a LaRouche representative, at a confer­ tions, we are at a branching point: WillIour leaders and popu­ ence in Trieste in 1983, twisting some of LaRouche's ideas lations continue to be hypnotized by the insane prescriptions on Plato and the German mathematician BernhardRiema nn, of the Club of Rome, or belatedly will they heed the warnings in order to come up with conclusions opposite to those of and advice of Lyndon LaRouche?

EIR December 17, 1993 Economics 19 Business Briefs

Development countries, where the desert is eating up the land dent Mitterrand threatened on Dec. 3 and AIDS is endangering the people and cor­ that Swede�!'s bid to join the European Union New dispute erupts on ruptionis paralyzing the government.Or it can could be bl ked as a result of the rej ection of policy, says Swiss paper become an Asia, or Europe, or America. I the Volvo �erby Volvo's board, despite the think the basic aim should not be just to have factthat Volvo is a private company. peace but to promote the standard of living to The sec�ndto fall was Stig MaIm, perhaps Developing countries that are well on the way a modem height," Peres said. the most po.,verfui SocialDe mocratin Sweden, toward industrialization arebecoming increas­ In a related development, the European head of the lnational LO trade union organiza­ ingly critical of the free market model , the Union has announced its support for Palestine tion, who � forced out over revelations of a Swiss daily Neue Zurcher Zeitung reportedon Liberation Organization Chairman Yasser series of finlmcial scandals and influence-ped­ Nov. 28. Arafat to become chairmanthe of Palestinian dling affairs!. Maim had been key in securing The paper reports on a study by the Economic Development and Reconstruction tradeunion !jupportfor theVolvo-Renault merg­ Prognos Institute in Basel, which discovered Agency. The move, announced in a letter by er deal. men, Gyl\enhammer, Malm, a growing "disparity" between two groups of the Norwegian foreign minister, counters an and Palme, formed a circle of insiderdeal ­ developing countries. The first group, espe­ attempt by the World Bank to force the creation ings in whicThe�:three Palme's gov ernment in the I980s cially in Asia, can no longer be called devel­ of an agency independent of Arafat and the often exte huge state benefits to Volvo for oping countries because they will soon reach PLO, which it claims are.corrupt. The World building ne� factories and other business deci­ the status of industrialized countries. This Bank has clearly come out in opposition to seri­ sions despit¢ Gyllenhammer's nominal creden­ group includes Hongkong, Singapore, Tai­ ous economic development in the Middle East tials as a m� of the Liberalparty . wan, South Korea, and perhaps also China and since the Israel-PLO peace accord was signed. India in the near future . But there are other countries, especially in black AfriCa, wracked by economic and political crises, which are Unempl ment losing any hope for a better future . Sweden r While the Soviet empire existed, the dis­ Free tOtde exacerbates pute was between proponents of marketecono­ Two believed ousted my and state interventionism. Now, the eco­ crisis, s AUais nomic policy of "the West is criticized over globalization fight tarn precisely by those countries which leading are The major ! problem facing France and the the train of economic growth," the paper re­ Two key operatives of the old Olof Palme So­ world econ�my as a whole is unemployment, ports . That is, countries in Asia "are rejecting cial Democratic corporatistmafia inside Swe­ and the free!tradeapproach is only makingthe with sound intensity the idea of exclusively den wereousted fromtheir positions within24 problem w�rse, NobelPrize economist Mau­ leaving their economic future to the market hours of each other. Given the intimate ties rice Allais ed in acommentaryin the Nov . forces," and instead using "interventionist are between the two, there is speculation inside 29 Paris da· y Le Figaro. Unemployment has instruments ." The paper, organ of the Swiss r Sweden that the ousters arepart ofa broader increased 8 % over 1970-93, from 530,000 financialestablishment, rejects this approach, reaction among Swedish elites against global­ to 4.7 milli�n. saying that "the so-called third way will in this ization of the economy, i.e., the dismantling It woul be"at minimum adventurous, and case, too, lead to a dead end." 4 of industry and highly skilled labor in search in reality v�ry dangerous," to give in to the of cheap-labor manufacture. demands ot1the General Agreement on Tariffs First to go was Pehr Gyl\enhammer, who and Trade, lhe International Monetary Fund, was forced to resignas chairman of Volvo by and the W

20 Economics EIR December 17, 1993 Brifdly

• RUSSIAN Deputy Prime Minis­ ter for Foreign Economic Relations Aleksandr Shbkhin, after signing several arms contracts with the Unit­ ed Arab Emirates, said that Russia The "Armenian winter" wamed about by Health will soon increase its arms trade from Ukraine's deputy energy minister, is not some $2.5 billion a year now to $9 billion. future threat, but present reality, he warned. Another AIDS scandal hits For this purpose, Russia plans to es­ On the energy front, barring a reversal of tablish an export-import bank spe­ Europe, this time Spain American-led western and Russian policies, cializing in the arms trade. Ukraine is doomed to copy the Armenian ex­ perience, whereelectricity and heat for homes The tradeunion of doctors in Madrid has ac­ • AN AIDS TEST developed at the and factories are rationed to only a few hours cused the governmentof failing to ensure that University of Tokyo is estimated to a day • and arecut offin many public buildings. blood and blood products weretested for AIDS be 4,000 times more precise than pre­ On the food front, most Ukrainians can proba­ until February 1987, although the AIDS test vious ones, and can detect the HIV bly scrape by through private "arrangements" was available much earlier. Between 1985 and virus much earlier. Older tests could made between urban families and rural rela­ February 1987, at least 179 patients became only detect an infection 6-8 weeks tives, he said. But, caught betweensuperpow­ infected with HIV through bloodtransf usions. after it occul'$d. The new method ers, Ukraine's ability to survive into the middle Spain has the highest rate of infection (41 %) can also dete¢t the AIDS virus in of next year as an independentcountry is high­ among hemophiliacs in Europe, 3% higher urine and saliva. than France. ly questionable. The head of the union, Antonia Rivas, is • 11 % OF POLISH families are now investigating how and whether blood forced to have their children work to products are beingmade safe today. "We be­ make a living� according to a new lieve that a huge part of those cases which are official statistical report. Some 71% thought to have occurred heterosexually, do of Poles do not see any improvement not have their causes in sexual intercourse. in the near to medium term, and a Kenya . Millions of patients every year get • gamma majority expect 1994 to bring a wors­ globulin' -we think that these products could ening of conditions. play an important role in infecting patients," IMF austerity causes he told media. more ethnic conflicts • THE GERMAN steel sector will Meanwhile, doctorsat a conference of the begin extended short-work periods German Society for Hospital Hygienics before Christmas, which will last wamed thatthere is a risk of infection with the Evidence that the austerity policies of the Inter­ through 1994. Companies do not ex­ AIDS virus fromthe use of medical examina­ national Monetary Fund (IMF) are driving Ke­ pect the situation to improve, follow­ tion equipment such as endoscopesornew mi­ nya into tribal-ethnic conflicts was provided ing a 15% loss in new contracts in crosurgery equipment which cannot be suffi­ by the Paris daily Le Momie on Nov. 24, as the 1993. There are reports that 50,000 ciently sterilized. "consultative group" of aid donors for Kenya jobs will be eliminated over the next wound up its Nov. 22-23 meeting in Paris. three years, more than one-third of A freeze in aid which had been decided the industry's work force. upon by the IMF and western governments Ukraine was originally supposed to have lasted only six • 40,000 ROMANIANS demand­ months, but "in reality, as the adjustment of ed the resignation of their govern­ Domestic measures won't the Kenyan economy was not carried out, the ment and President Ion Iliescu in la­ donor countries prolonged it. As a result, in bor protests onNov. 29. Some waved work, warns economist two years, Kenya has lost around $800 mil­ loaves of bread on sticks, symboliz­ lion, of which85% was to have beenbalance of ing hunger. One protester shook clat­ Prof. VolodymyrChernyak, a memberof the payments support. And several development tering ox bone� and carried a placard Ukrainian Rukh independencemovement and projects have been suspended." Furthermore, with the wor�s "food of the pen­ a leading economist, warnedthat the nation's "strangled by the pressure of the disbursers of sioner." economic collapse is now beyondrescue sole­ funds (a near-zero percent GNP growth is ex­ ly through domestic measures, in a Nov. 26 pectedthisyear) , Kenya has suspendedthe ser­ • EXXON Corp. signed a contract interview with "Rukh Press." (See EIR . Dec . vice on its debt beginning in mid- 1992, and Nov. 30 to begin oil and gas explora­ 3 for an interview with Professor Chernyak.) today owes close to $700 million in arrears ." tion in the East China Sea, Xinhua Chernyakstated that "even the imposition PartIy as a result of this economic crisis, news agency reported. The contract, of an economic state of emergency and ra­ Kenya is being rockedby tribal conflictswhich signed with thi:: China National Off­ tioning cannot rescue the collapsing econo­ have attained a magnitude "rarely seen in shore Oil Con>., was the seventh my ." He added that the "strictest rationing can­ Kenya." The U.N. Development Program es­ awarded by Cbina for the East China not ensureeven minimal sufficientenergy and timates that there have been 1 ,000deaths and Sea since Junel. food supplies." 250,000displaced.

EIR December 17, 1993 Economics 21 ITillFeature

The cultural!b: asis of strategic policy for lbero-AItierica An interview with Lyndon LaRouche

In an interview with Robyn Quijano of EiR's Spanish-language publication Re­ sumen Ej ecutivo, conductedfrom prison on Oct. 3, i1993, Lyndon LaRouche gave a wide-ranging picture of the strategic and jinancilJlsituation confronting Ibero­ America, as well as the cultural and educationa( issues which are the key to solving the current crisis. The excerpts we publish here constitute about halfof the fu ll interview, which was published in Spanish in Resumen of Nov. 1, Nov. 15, andDec. 1, 1993.

Q: As the collapse of the financial system accelerates, Ibero-America is being brought into a new level of looting. Right now, they're setting up commodities markets, derivatives markets, and a new level of speculating on Latin America is going on. This is being sold to Ibero-America as a great boost to their economies. What do you think about that? LaRouche: It's a new stage of looting, period. EXe!mplary is the crisis which has erupted-a mini-crisis of sorts-around the North American Free Trade Agree­ ment, with the [Rep. Henry] Gonzalez inquiries into the Federal Reserve opera­ tion, with the New York banks, the big ten, but the seven in New York, in planning the financial side of what's called NAFTA. Sinc¢ virtually everything else is already in the works, except the financial part, it's obvious that the signing of NAFTA means purely the financial part. Now the thing is buried out of sight of official responsibility of the U.S. governmentin the negotiations occurring between interested parties in the South and the Federal Reserve System. That's the only information which is confirmed. But when you say "Federal Reserve System," and tpe New York system bankers are going to conduit financial arrangements, that c�n mean only one thing .... The other aspect is already in place, the runaway s,ops, the great sucking sound that Ross Perot talks about-that's been going 0ill for some time. He doesn't mention the other sucking sound, though: the sucking ofthe Mexican blood, which

22 Feature EIR December 17, 1993 Mexico City'sZocalo , the central square, in September 1982 , when President Jose Lopez Portillo announced the nationalization of the banks. "We must have unity. " says LaRouche. "We saw that in Mexico in 1982 , when the Brazilian government and the Argentine junta capitulated. Mexico was destroyed and they were all put in the soup as a result of their fa ilure to stand by Mexico ."

has also been going on . So you 've got a great Moloch in New Biche and Mouche of today , York, who is sucking two things: jobs and businesses out of frontmen for the New York banks the United States and blood out of Mexico, along with a few coordinated interests, are doing all the world. They're . other incidental commodities. looting countries en masse , in way that the House of But the financial situation is a much more dangerous and Bardi and Peruzzi in the early century was looting higher level, which overshadows absolutely everything done all the countries of Europe , all little principalities here so far. The fact of utter destruction of the sovereignty of and there , by pyramiding debts, the way it's hap- every nation in the western hemisphere , including the United pened since 1982, but even before , ince the petrodollar debt States itself, which means setting up what , under Bush, was expired . Pyramiding debts until, in 345 approximately, the called "globalism," but is properly otherwise known as king of England repudiated his , and the whole thing "globaloney ." (I guess it's baloney that glows!) ... came down. And then Biche and disappeared, hav- ing stolen the national treasury of and the papal trea- Q: A few days ago the New York Times had an ad , an inter­ sury , and disappeared into with the proceeds and view with Paul Soros , the brother of George . He directly afterhaving stolen the papal which they got in trust. says: "In Latin America, whenever the army , as an institu­ And this is what we're talking with Paul and George tion, is part of the country's power structure , all investments Soros. They are not people; Iy they're persons, in are discounted , because that introduces an element of insta­ some sense, but they are more a than persons. So bility. As an investor, one likes stability." when one talks about them, one not talk about them Now the kind of stability he 's talking about obviously is as personalities, but as a disease, just stability to loot. kind of phenomena, of which Why are these swindlers so worried about the Ibero­ terms of recorded history is B American military? fourteenth century . They're just . They're not Robin LaRouche: First of all, you have to think of George and Hoods; they steal from the poor for rich, until the rich go Paul Soros as the late twentieth-century parody of the two bankrupt . And they're running a which most nearly most notorious characters of the first half of the fourteenth represents not only the bubble of Law , the South Sea century, who had the nicknames of B iche and Mouche. Island and Mississippi Bubbles of early eighteenth centu­ These characters , representing a group of banks of that ry , but they're running a bubble also represents the period-the Venetian-Lombard banks--did precisely what debt bubble which collapsed in mid-fourteenth century

EIR December 17, 1993 Feature 23 i In Ve nezuela. the military. while doing something wh�h was patriotic, dlifending the Constitution against a runaway, unconstitu nal presidency, did not really understand the principles qfpolit ics; they we e running coups fro m a cabinet warfare standpoint, not a competent political-s; ategicoverview.

and was the characteristic of the New Dark Age. Refer to the case of the Mi dIe East. What befuddled So if Satan required a couple of imps, he required no many people, even people who lieved, on both the Israeli better service, perhaps, than Paul and George Soros, the and other sides, that there shoul be an economic develop­ satanic imps of internationalor globaloney finance during the ment basis for peace which woul give rights to the Palestin­ late twentieth century. . . . ian Arabs-they didn't underst nd how this worked. They didn't see that economic develo ment was the alternativeto Q: They obviously think they have it sewn up, except for bloody war. ' this slight element, that the Ibero-American military still In the case of Central and Sbuth America, the problem exists, which they want to get out ofthe way. Can you discuss is, they have to see that free trade� land what is called democra­ the question of what role the Ibero-American military should tization are the enemies of hu nity; and these ideas and play in countering what is essentially an invasion of the coun­ principles have to be opposed a treasonous; and therefore, try by this financialswindle? their weakness is on the political strategic side. LaRouche: The problem of the military is their training So they limit their politics 0 an extension of military under Yankee and post-World War I and II influences. They posture in a political crisis. The do not see militaryactions were trained to be a police force in their own country, to of institutions as instruments of strategic policy, in the true protect the interests of the U. S. banks, which then seemed to sense. And that's because you hlljvea number of officerswho have an industrial and related orientation, in the old days, in get together and say, "What they're doing to our country is which Grace was the most evil name you could mention on terrible. We've got to stop it, the country is going to be the continent relative to the United States. "There but for destroyed. If somebody doesn't

24 Feature EIR December 17, 1993 fightingfor a cause which is justifiable; and that's where they the child, and when you molest the qhild, you can produce a failed. satanic personality. Now how about producing satanic per- We must have unity. We saw that in Mexico in 1982, sonalities on a mass scale? I when the Brazilian governmentand the Argentine junta capit­ Remember aBE is designed by people who arecolla bora­ ulated. Mexico was destroyed, and they were all put in the tors of the Satanist known as JulianlHuxley. Julian and Al­ soup as a result of their failure to stand by Mexico, in July dous Huxley were Satanists. They �re proteges not only of through August to October 1982. When they failed to do H.G. Wells, who was a Satanist, but of the more overtly that, they betrayed their own countries. They said, "We can­ Satanist Aleister Crowley, who was their immediate mentor. not risk our countries for Mexico." But they betrayed their They were close collaborators of a pdrsonwho was an incred­ own countries, because once Mexico, which is the second­ ible Satanist, Bertrand Russell, probably the most evil man largest nation of Ibero-America, went under, they had no of the twentieth century, the most jracist, pro-genocidalist chance of defending themselves, because they couldn't get figure. More of a genocidalist thaI) Adolf Hitler, because together. Adolf Hitler limited his ambitions to !partsof Europe. Russell They couldn't get together, because they could not agree had global ambitions for mass murder. that free trade is evil. They could not agree and understand So these people, including RobeI1Mueller, were proteges that the fightbetween Moscow and London and Washington, at Unesco of Julian Huxley. Julia* Huxley is one of the was largely real, but also fraudulent, in the sense that it most satanic, most evil figures of th� twentieth century, who was based on a condominium, a condominium in which the dominated much of the second half �f the twentieth century . Soviets as well as the Anglo-Americans were betraying all The ideas that are used, are the ideas of people like Alice the developing countries. Bailey, a professed Satanist. Not o�ly do these ideas come So the problem with the military , is they must sit back from Satanists such as Willis H�an of the Stanford Re­ and say: We were deceived. Now we must undeceive our­ search Institute, a confessed Satanist; but they also represent selves. We were not betrayed by personalities; we were be­ an efficientway of turningyoung children into Satanists. trayed because we were being deceived as to what the reality So it's not merely that these p¢ople happen to go to a was, and what methods had to be used to save the nations of Satanist church, or something, an� otherwise, six days a that time. week, are not Satanists in practice. 'ifou know, "The guy may They have to go through another leap of maturity, a leap be a Satanist, but he's a good acc�untant"; "He may be a upward. But they do not yet know, as institutions what to do. Satanist, but he's a good schoolte�her." Believe me, that And they have to understand and make a very quick leap in does not function. The Satanist is much more proficientthan understanding and comprehension of reality. . . . professed Christians in these matters. Satanists practice their religion 26 hours a day, 7 days a w�ek. And they are never Q: The New Age education is very, very far developed in not practicing their religion. If youl've got a Satanist in the lbero-America at this time. We are actually investigating neighborhood, you'd better just trylto purge them, get your something that has happened; we were late on this one. And local priest to perform the operaticlm to purge them of the we're finding that it is very much what is going on in the demon. Give up all other methods. I United States. It's U.N.-sponsored, and one of the major What are they doing? They're �oing it explicitly in the parts of it, is to have education that's differentfor the country­ United States, and they're doing itl everywhere else. South side; in any area where there are Indian languages spoken, America, Central America, will b¢ key. The basis for the Spanish will not be taught. It specifically states that Spanish entire educational process is that th� church and Spanish are should not be taught, that Spanish can be used, but should the enemies. They must be destr

EIR December 17, 1993 Feature 25 they see a satanic gleam in the eyes of that child, directed LaRouche: This is literally sa$nic. That statement of plea­ against them. Pure, satanic hatred against them, which is sure-that is literally satanic. The pleasure principle. motivated and shaped by "school counsellors." "I like my There should be more effectiveattacks on Freud, because teachers, I don't like you, you're no good. You're not my lurking in the background, is what Freud represents. The real family. My real family is my school." fact is that Freud was B 'nai a'rith; Freud was satanic; a We are getting that out ofthe mouths and eyes ofteenage homosexual, satanic, in this respect. Freud and Nietzsche­ and younger people, in defense of their teachers in OBE, at there is very little difference b¢tween the two. In terms of parent-teacher meetings throughout the United States. philosophy, Freud, Nietzsche, Hitler, and the French exis­ I said, "This is evil." And people didn't think it was that tentialists are pretty much the sa(nethi ng. They're just differ­ serious. They thought we had to present alternativesto try to ent varieties, competing varieti¢s, of the same thing, whose win people, "Well, this would be better than that." I said, ideas tend to merge and cross lind cross-fertilize. And this "No, this is satanic evil." should be openly attacked. This:is as bad as the International Now, once we began to scratch the surface, we found, Monetary Fund; this means the destruction of the nation by first of all, what the counsellors and so-called facilitators destruction of its people. This is menticide. This is the murder were. We began to get glimmerings from some teachers who of children. This is treason against the nation. had quit the system, who were complaining about it. That Let me step back and restat¢ it. I've indicated the point, wasn't the worst, but it's bad. I think usefully, and maybe it �an be better restated some­ Then we began to get a picture, in some encounters, of time, in "History as Science" I [published in Fidelio, Fall . what these counsellors do. Then we saw the real face of 1993]. . . . Satanism. We saw what these counsellors had done to some We have to deal with Platoni� methods. Without Platonic of these children, where the children would get up at meet­ methods, it's impossible to deal with these kinds of ings, and would actually militantly defend Satanism, and problems. defend their counsellors as the apostles who taught them this, What we have today, is ai fight between entropy and and who had freed them from their family. And the child negentropy, as it will be describ�d by some people. Between says, at a school meeting in Barrington, Illinois, "Now, they those who are for deconstruction--entropy--deconstruction didn't teach us all sex. They taught us anal sex." of economy, the elimination of commitments to scientific When you're getting this, it means that this is the time to and technological progress, anq so forth and so on, against destroy your school. You have no choice. Don't try to reform the commitment to technologkal, scientific, and related it; eliminate it and start a new school. That's the only thing progress. I you can do. This is not an issue of reform. This is a pestilence! For example, I'm most plea$ed with the modest but very And you must get these people who are behind this, out of significant progress we've madei in music. We have made, in the community. You must look, constantly, to extraordinary a sense, a revolution in musi

26 Feature EIR December 17, 1993 A children's chorus performs in Colombia . "The child is a process of development, not a fixed thing with fixed op inions. . . . The education of this imago Dei quality in the child is the essence of being human."

best terms to put it in: the question of God and the Becoming. al object. It is rather the principle of development which Is God in Time? Is God confined in Time? Does God corresponds to the infinite, timeless ood. have a limited place in Time, as an existent? Of course not. Therefore , human beings are s(gnificant as human be­ Therefore , you have two views of the universe: God's view ings, in the image of God; which mtans that the individual, and man's, because man's view is always located in the through creative reason, can contrib�te by assimilating ideas Becoming, is finite in Time. Our influence may be transfi­ and by transmitting them-and als by creating them--can nite. We can change the outcome of the past; we cannot contribute to change which belongs t the category ultimately change the past, but we can change its outcome, as Cusa of the timeless good. And thus the individual is not only changed the outcome of the work of Archimedes, by revolu­ imago Dei, by virtue of creative re�son, but is capax Dei, tionizing it. So Archimedes continued not really as Archi­ because he par ticipates in the tim�less God, the timeless medes' own work , but Archimedes' own work from the past, existence of God, the unbounded exIstence of God, by doing was revolutionized to a higher level by Cusa. something which is timeless in natute, which is inthe image We can do that. We can determine the future , or the of God. foundations of the future . The individual can determine, in The only thing that could corres ond to that, is creativi­ some degree, the shape of all human existence past and pres­ ty-true creativity. ent. But nonetheless, that individual is located in Time. His If we take that away , what do e have? We don't have or her existence has a beginning and an end, though its effect man; we have man bestialized; because man has no soul. has no beginning and no end. He's an Aristotelian who has no sou , as Pompanazzi argues. So the individual can participate in God, only by becom­ He belongs to a collective soul. But if he doesn't change, if ing timeless. To become timeless, you must participate effi­ he is like the Emperor Diocletian, ho chained the society , ciently in the past and the future , in a creative way , which which is what these guys are proposingt , that's evil. That's makes the past and the future better-or less bad. the evil of paganism in the extre b , and of those cultural , Thus we see, that if God is real-and we can prove that relativists who argue, on anthro� ological grounds, that He is-then the idea of permanence attached to an object of "we've got to return these people t their natural aboriginal the Becoming, is a false idea, or is a superficial idea. That state ." Their natural aboriginal stale does not exist. It was l reality lies in that aspect of the object, which is permanent, only a downward change into deg adation and deprivation which is timeless-which is not the object as a simple, sensu- and bestiality .

EIR December 17, 1993 Feature 27 For example, we saw this outside of Mexico City, at the thing. This is the center of the uhi verse. " pyramids. I knew that there had been wheels in Central and A friend of mine told me ab�ut this. Her child was seven South America, because the civilization could not have exist­ years old, in second grade, Wh he did this. And the child ed previously without wheels. We found the wheels­ said, "Oh, it must be God." A d the counsellor said, in a where? Not in the carts used by the people; but in the carts very embarrassed way, "God wt uldn 't fitin this box." used as toys by the children. A perfect example of this. Then she goes around to every individual child and has So these are degenerate cultures. And to replicate them, them look in the box. And of c�urse what's in the box, is a is suicide. If you tell people, "You're going back to your mirror. i ancestors, rather than justifying your ancestors by becoming Talk about psychosis! I something good today," then you put them on the track of When 1 studied to teach y�ung children in the 1970s, self-destruction as a people. And the evil ones in London sit when everything started going 4razy, the older texts always back and say, "We fooled them. We told them to go back to said that what you're trying to te,ch a child, is that they're not their ancestors and they all died. And we didn't have to the center ofthe universe. When tachild out of kindergarten, a kill anyone, because they killed themselves. They wiped first grader comes in, they thin� they are. So the process of themselves out-except the two we have in a museum over education is to teach them that t�ey're not. here, in a theme park we keep for exhibition purposes." LaRouche: That's exactly wh�t this does. It turns children That's what they're doing with the Australian so-called abo­ into beasts, little savages. Iimitive savages. Precisely rigines. The same kind of thing. that. . . . i That's what the issue is. The dignity of the individual is being challenged. Q: The Mexican situation, wh�I ch a short time ago seemed We have to make this clear in education. Education is not somewhat tied up in favor of Pr�sident Salinas's policy, in a learning. Education is re-experiencing creative discoveries certain way, has taken a very b" change, as the agricultural which are made by people before you. Education is turning producers organized themselves many of them basing them­ the mind of a child, which has only potential but no competent selves on a program very similar to what you wrotein Opera­ opinion-making ability, tion Juarez � and giving that child, step by step, in 1982. I'd like to ow how you see this devel­ through various kinds of tutelage, the ability to become an opment and what kind of pow¢r this particular movement adult. The child is not responsible and capable of adult opin­ could have in turning things around. ions about society until it becomes an adult, though the child, LaRouche: You have to understand, first of all-which in the process of development, will increase this quality of some North Americans forget-that the Mexicans are human insight and morality and tutelage all the way through. beings. Certainly, a lot of the State Department and Wall The child is a process of development, not a fixed thing Street planners forgot that. They isay, "We've got these Mexi­ with fixedopinio ns. cans in our pocket!" "We've got the President! We've got The child learns how to build with blocks; the child repli­ the Presidents in our pocket. We have the PRI in our pocket. cates a discovery which was made a long time ago. Every­ We have the institutions in our pocket; and we're destroying thing the child learnsis a replication of the mental experience them at our leisure--crushing themlike nuts, one at a time." of some discoverer hundreds of thousands of years ago and They forget the Mexicans are hUman beings. even older, over the past 2.2 million years of existence of The North American takeover of Mexico in 1982 was not mankind on this planet. a seduction; it was a rape. A very important consideration. We have to fight forthat . Because it is that-the educa­ Now, the rapist had armed guards, weapons, and the victim tion of this imago Dei quality in the child, which is the did not. And so the victim, being the nation of Mexico, essence of being human. Those who say no, are against said, "Look, we're being raped, but we'd better become humanity. They are turning humanity back into destruc­ accustomed to it, because there's nothing we do about it. So tion-they call it deconstruction, which is destruction. we better get the best possible conditions as a victim of They're murderers. And they have to be dealt with. You rape. " ... can't say, "Oh, they have some interesting ideas ...." I Now, where is U.S. policy? The international financial disagree. That's some kind of nonsense! Worse than Hitler! system is in an explosive conditiJon; the East European, Rus­ These people make Adolf Hitler look like a benign old coun­ sian state is about to blow in a bloody business. There goes try gentleman living on the next block, serving cookies and Francis Fukuyama's End of History. History resumes in the tea. bloodiest imaginable fashion. China blows up. They say, "Well, that's good, we'll get rid of the former communist Q: In Virginia, this has been going on for a number of years. opposition." But then-boom!-the Anglo-American fi­ The guidance counselors come in to the grammar schools nancial system blows up. with a box, and they say, "I have something in this box, and If people don't fully understand this, they can smell this; it is the most important thing in the world, the most wonderful and when the victims, particularlythose who have been raped

28 Feature EIR December 17, 1993 My being in prison is a very relevant thing. No one is going to survive in this world based on salvation qfon e country. There's no Ve nezuelanJormula, no ColombianJo rmula. Somebody 's got to put the world back in order; otherwise, nobody, in any partqft he world, isgoin g to survive.

and are now about to be murdered, smell that the master, the than 5 billion people in it, which h�s fivecontinents , and so giant, the ogre, is in trouble, they may begin chopping at the forth. You've got to control the process, change the process. beanstalk. Well, who in the world has bef1ntalking about this crisis and this process in the recent qUar1\er-century?Where in the Q: We have a very interesting situation in Venezuela. The world has anyone been talking about this, and analyzing the hated Carlos Andres Perez, or CAP, is finally gone (we process, and proposing? think); and there is a moment of opportunity that is very The Venezuelans, like others, are going to have to study short, and fraught with tremendous dangers, because there the time line of what we have experienced in the past 25 years, are not too many people around who really want to stand up and compare this with what was discussed in Venezuela and and fightin the right way. What you just said about the ogre other places [by LaRouche and hili associates], to see who being ready to fall, probably would have a decent impact­ has understood. Because you're Qot going to jump off the LaRouche: That means that somebody's got to chop at the diving board into an empty pool. You've got to have water beanstalk, otherwise this is not going to work. in the pool before you jump offth� diving board. Do we have water in the pool? "In the past, these guys Q: Do you have any advice for the Venezuelan population have been consistently right. Theyive made these consistent and politicians who are right now trying to figure out what proposals, said the alternative to �ccepting these proposals they're going to do in the post-CAP era? will lead to the following result. Tbat is what has happened." LaRouche: You see, my being in prison is a very relevant They're not going to buy a formula. They're not going to thing for them. buy a populist-you're not going, to build anything worth­ The problem is, they don't think in world terms. They while on that. You're going to build on authority, by defining may think as commentators in some world terms, some of the authority of that to which they bave to tum for leadership, the time. But they don't think, in a practical way, in world the conceptions to which they have to tum for leadership. terms. Otherwise, why should anybody jump off their diving No one is going to survive in this world based on salvation board? Is there any water in the SiWimming pool? Water in " of one country. It doesn't exist. There s no Venezuela formu­ the swimming pool is an accredited, established authority, la; there's no Colombian formula; there's no Brazilian formu­ which has a unique authority versus everybody else who had la-though I think Brazil may be tempted to think in that a different policy. I'd say, "Well ,i at this stage, since that's direction. There's no Mexican formula. the only car in town that runs, we'd better use that one, rather Somebody's got to put the world back in order; other­ than these scrapped-up wrecks hanging around the streets." wise, nobody, in any part of the world, is going to survive. And in Venezuela in particular� through the press, partic­ You cannot have two-thirds of the world going up in smoke, ularly in the recent years, ever since CAP's reelection, Vene­ and the other third on the verge of doing so, and expect that zuelan politics, since 1985-86, JIas centered around my you've got some little gardening program for your country name. There has not been a Venezuelan crisis or issue at any politically, which is going to make the country quite happy time, in which my name has not come into the press as a and prosperous and you can ignore the outside world. factor. And that's what they're going to have to recognize. It's not enough to contemplate the outside world; there If they don't reckon with that! these fellows in jail who has to be something being done about it. don't want to reckon with my name-they're idiots! They Where is the international movement to deal with the don't understand the ABCs of military-political strategy. world at large-a precondition for the solution for Venezue­ They say, "Well, we'll keep awa� from him, because they la? You can have solutions for Venezuela provided they're hate him." Well, if you can't deal with me, then you haven't integral to that process; without that process, you can't guar­ got the guts to take these guys on. And that's the proof you antee success of anything. Because you'd be crushed. haven't got the guts. If you're alfraid-"Well, we can do So you've got to control the larger world, not of 18-20 everything, except we can't men�on that name" -whoever million �ople; you've got to control a world which has more says that, "Okay, we know you h�ven't got the guts. Maybe

EIR December 17, 1993 Feature 29 i we'll finda rear echelon position for you if we can trust you; to know what he is; you have to know what he is pUblicly: because you have no guts for this, if you're afraid of even his public image, his Campaign mage, his book. His close mentioning a name? You coward! You contemptible association with [former Virgin a Attorney General] Mary coward!" � Sue Terry tells you a great deal. . hink ofthe people who are That's what l would recommend. I findmyself in a unique attracted to this. situation, as being the central figure of a policy exposition A scientifically, maliciously $cientificallyill iterate, pop­ which, over the past 25 years in particular, is the only sound, ulation. Most people who are ru�ming U.S. corporations to­ proven policy perception anywhere on this planet, with both day, in the age of, or 10-15 yearsJ after the age in which U.S. the local situation and the global situation. If they want to corporate life was taken over b)1the raiders, by the hostile come to that, they come to it. If they don't, they are losers. takeovers, by the financial swind)ers; who's running the cor­ They're cowards, they haven't got a chance in this life .... porations today? Financial swi�lers, like the people who took over RJR Nabisco. Those are the people who arerunning Q: There is a great potential for the United States to have the United States today. trade relations that would further the [infrastructure develop­ The United States therefore ftannotprod uce. My aim is ment] you have discussed. Could you talk about that a bit? to make the United States again a productive nation, not by LaRouche: The United States has a real problem, because businesslike methods, but probaljlly by some superbusiness­ people don't realize that the wealth of the population of the like methods, like mass infrastrudtural programs, which gen­ United States over the past 25 years has increased in only one erate, beginning in ten years, a �opulation which is capable respect: in the amount of stupidity which we own. of doing what they were capab�e of doing in 1982, when This is partly the result of the rock-drug-sex countercul­ I presented what became know* as the Strategic Defense ture. Look at our universities. They teach sociology and Initiative (SDI). I similar things; where's the science? We have in large part At that time, we could do thin�s we can't do today, partly a scientifically illiterate population. We have a population because of the generational gap. I which, among youth, are not qualified, in general. Look at the ranks of scienti�s. Look at the way things Probably the most qualified technological area for em­ line up on solid state fusion. Th�e people are incompetent. ployment-and not very technological or industrial-are the Look at Sherwood Rowland, thej author of the ozone hoax, farmers. Because on the farms, which are being broken up, putatively; head of the Americ� Association for the Ad­ the young farmers, or the young prospective farmers who vancement of Science-fakers 011this type. grew up on a farm, have a mechanical aptitude for fixing I emphasized in the "History las Science," that language machinery, using machinery, things like that, which is proba­ as a cognitive process, from a c�gnitive standpoint, as op­ bly greater than that of the average citizen. posed to from some other descriptive standpoint, has three So that gives you an image of most of the population. elements. First, well-tempered *ning of vocalization. The Now then, on the management level: Pick the population asymptotic freedom in music coqverges upon the well-tem­ under 46 years of age. We know these people, because we pered, polyphonic system, and converges upon the principle know them from the 1966-72 period. In 1972, on campus, of Motiv!iihrung, as Haydn has described it. That's how we we fought them. We opposed them. They were the majority get the idea of metrical qualiticl;; that's what Kepler was of the graduates of universities in that period. We know saying, in effect. That's what Leqnardoda Vinci was empha­ them very well; they're degenerates, in terms of intellectual sizing; that's what Plato was em�asizing, implicitly, if you development. They have crazy ideas; they lack morality. look at it from this standpoint, �ckwards, today. We now They may have tinges of conscience and compassion, but understand Plato better than he cpuld have been understood they lack a consistent morality of any kind. in his own time, if we look at it frlom this standpoint. These people-the people we knew as our political ad­ The other aspect, which is crucialup to a point, is ge- versaries on campuses in the 1966, '72, '73, '74 period-are ometry. I now running universities, running university departments, Now geometry, if it is taug� at all in school today, is in all categories. They are running the Modem Language taught as a way of constructing ill",strations of algebraic func­ Association and all education. If they're not chief executive tions; in some cases not. But the algebraic non-function is not officers of corporations, they're one step below--division well understood, even among pepple with doctoral degrees managers and things of that sort. They are shaping policy in graduating fromuniversities today. government. The Clinton administration is an example of In 1958-59, they began to inttoduce the New Math. The what this yuppie phenomenon is. nub of that, was the beginning of Ute real New Age takeover So we have a scientifically illiterate population, as typi­ of education, as opposed to the Qeweyite type of corruption fied by Vice President Gore's constituency. Gore typifies a which had already occurred. The}'took Euclidean geometry malicious quality of scientificilliteracy , in the book that was out of the schools. Now, Euclide$l geometry as taught is not written for him. Look at what he stands for. You don't have the greatest thing; but remembet, there are two aspects to

30 Feature ¢IR December 17, 1993 study. One is, what is being taught; and the other thing, is the effect on the student's mind. The student has certain potentials. Geometry is natural to language, a natural part of lan­ guage. In language, we're talking about plus, less than, greater than, and so forth; we're talking about altering of relations. That's all language is, in terms of the verb. Start with the verb. The language is the way of showing the order­ ing of relations, and then identifying certain singularities which cannot be shown in relationship within those terms. So geometry is essential to understand function, causali­ ty-anything. Algebra, if properly taught, is taught by geom­ etry as a description of geometric proofs-not geometry as a description of algebraic proofs-on the basis of a rigorous education in the Classical sense of geometry, as Cusa did (or as Archimedes got him to do). Take what is called Euclidean geometry and present it, not from the standpoint of the for­ malism, but present it as Archimedes did. Present a construc­ tion, and as Cusa did, with his limited excursions into this, look at it from that standpoint. That is the basis for scientific competence. When we took geometry out of the schools, we produced scientific illiterates. This is so essential, that if a child does not begin to get geometry at the age of 10, 11, 12, virtually irreparable dam­ A day-care center in Bolivia . "If a child age is done-not necessarily in every individual case, but geometry at the age of 10. II. 12. among students in general. done ." Students in general who do not begin to have geometry taught to them at the age of 10, 11, 12, will never become scientificallyliterate . That is, in general. They will not even which can be sold to the "woikers" know a couple be competent engineers. They can't be. We've had experi­ of people who have that nuts! The "woikers" ence with that on the SOl, one notable case. Talked great, are demoralized. They don't have any more; it was feeble in terms of grade averages, terminal doctoral degrees the "woikers" of our dear friends up in Quad Cities, the from the best universities-incompetent for precisely that workers of Davenport, Illinois, voted for no levees. reason. Because they were dependent upon the personal com­ The "woikers" of today are stupid, they're younger; puter-type of approach, putting in algebraic formulations, they're not the old "woikers" of years ago. This is the functions, algorithms . They can do perfectly with algo­ younger generation, of terrified , who are afraid that rithms. But in reality? No, they don't know what they're their children are going to kill them quick "death doing. They're nominalists .... with dignity," to get the inheritance. Desperately clinging to People say that Colombia could argue with the United little crumbs, of very short-term span, who sit in States today, that by becoming a better market for U.S. capi­ front of their television sets and do things. They're tal goods exports, this would be beneficial for the United trying to expiate their existence diversions, so-called States, and the good trade unionists here, like populist idiots, pleasures of that pitiful type. should understand that; and therefore they should be for Co­ Only by a movement in the U States which says, lombia having the right to do this. we're going to change this, we're to revolutionize the Well, that was finefor us to say in the 1960s, 1970s, even United States, we're going to get rid this garbage, now we in the early 1980s, because you still had a constituency in the need to develop the United Sra{C�s--tunQlerthose conditions, United States which believed that, and you still had U.S. that's the way to get the interest. people of the United industry. Today, you no longer have U.S. industry. Ten to States, whether they know it or have a vital interest, in 20 years later, you have a scientificallyillit erate popUlation; survival for their children and 'ldren, in this happen­ feminist irrationalism-dominated population; ideological fa­ ing in Colombia. Not the idea of export market as such; natics, utopian fanatics of one sort or another. yes, there are export relations, but old idea of our advan- The only way this can be approached, is not from a popu­ tage., the simple material , no longer exists, be- list standpoint. Anyone who's trying to put formulas in words cause of the culture transformation.

EIR December 17, 1993 Feature 31 �TIillInternational

Drug lord's death givesnew

chance for the war on drugs

by Our SpecialCorrespond ent

The myth of the impossibility of defeating the drug-traffick­ The surrender was supposed to have occurred while his ing cartels and the narco-terrorists who are ravaging Colom­ family was en route to Gennanjy. When Escobar failed to turn bia vanished on Dec. 2, when three special agents from the himself in, the Gennan governmentdeported its unwelcome National Police and three from the Colombian Anny broke guests back to Colombia, where the Escobar family was once into the hideout of Pablo Escobar Gaviria, Colombia's most again placed under the protectfon of the prosecutor general's wanted criminal, and killed him. office. The story of his pursuit and demise, contrary to the way The crack "Escobar Search Team," a joint AnDy/police it has been played in the international media, and especially special forces team which had been pursuing the cartel chief­ that of the United States, not only testifiesto the efficacy of tain since his 1992 escape fr� jail, took full advantage of a well-orchestrated military offensive, but should inspire the the Gaviria government's provision of a luxurious suite at international community to finallyprosecute a serious war Bogota's Hotel Tequendama f,!>rthe Escobar family, to moni­ on drugs, until that plague is eradicated from the planet. tor all calls coming in or out. �t 3:00 in the afternoon, Pablo The news was at firstreceived by Colombians with incre­ Escobar called into the suite; III Search Team agent notified dulity; the capture of Escobar seemed as impossible as the his Medellin colleagues by r�dio, and sophisticated equip­ fall of the Berlin Wall once had. Escobar was wanted for the ment was put to work tracing the call. In less than two min­ assassination of a presidential candidate, a justice minister, utes, the source was found to � a middle-class home which a fonnerju stice minister, judges, police and Anny officers, few would have suspected as the hideout of the multi-billion­ journalists, more than 500victims of indiscriminate terrorist aire Escobar. attacks, the blowing up of a commercial airliner in mid-flight, Without helicopters or the mass mobilization of AnDy and for having kept the nation in terror and its politicians troops and police, three police IIlgentsand three soldiers from blackmailed for more than a decade. Now, Escobar was the elite Search Team entered �e house from front and rear. dead. Escobar expected to do what h� had always done, which was Activities in most of the country's businesses and offices to have his bodyguards stall the police while he made his came to a halt, while everyone waited by the radio to confinn getaway. This time, unaware of other agents placed on near­ or deny the rumor. by rooftops, Escobar took justone bodyguard with him to minimize detection, and fled � the window onto the roof of Judiciary taken by surprise the house. The bodyguard wa$ dead within the firstseconds The office of the prosecutor general, headed by drug of the operation. legalization advocate Gustavo de Greiff, had made a deal Minutes later, after firing 13 of the 16 shots he had in his with Escobar, according to which the drug trafficker and two automatic pistols, Pablo Eacobar lay dead. mass assassin would surrender in exchange for a government pledge to provide a protected residence for his wife, Marfa The press came late Henao de Gaviria, and two children, either in Gennany or Unlike other operations of �he Search Team, which were England. always transmitted by radio like a soccer game-with the

32 International EIR December 17, 1993 team's positions given in advance!-the press arrived late to ed a telephone call to Deputy Attorney General Guillermo this one. Villa Alzate, in charge of monitoring the judicial police Ten minutes after the shootout was over, the first report­ (DUIN) , by the Cali Cartel's Mig\.lel Rodriguez Orejuela. ers approached one of the agents who had mounted guard at Rodriguez demanded that Villa ord¢r disciplinary sanctions the scene. "You may not pass," said the agent. "But I can tell against Colonel Arango, the DlllN" s director, for having you that the most wanted criminal in Colombia has fallen included the Cali Cartel in an intelligence report on the drug here." "Who? Who?" asked the incredulous reporters. "The trade. head of the Medellin Cartel," was the answer. Still incredu­ That Villa carried out "favors" !for both the Cali Cartel lous, the journalists asked if it was Pablo Escobar. The agent and Medellin Cartel is no contradicti6n. Despite all the rivalr­ responded, "Gentlemen, tell Colombia and the world that ies and internecineviolen ce, there has always existed but one this is the spot where Pablo Escobar, head of the Medellin cartel. In fact, Gilberto Rodriguez �rejuela and his brother Cartel and Colombia's most wanted criminal, fell." Miguel had been Escobar's partnens for years. Despite all One of the most surprised was Juan G6mez Martinez, the U.S. media claims that the Cali Cartel is made up of governor of Antioquia province of which Medellin is the "businessmen" who eschew violence, it is known that capital. G6mez Martinez had done everything in his power Rodriguez had participated in several political assassina­ to "make peace" with the drug traffickers, and had spoken tions, along with Escobar. with Escobar and served as his messenger to the government The first such murder, the assasStination of Justice Minis­ on numerous occasions. Indeed, one of Martinez's estates ter Rodrigo Lara Bonilla, was financed bycir culating a purse was once raided by the Search Team, when a tip was received among all the cartel druglords, including at the time Carlos that the governormight be sheltering the cartel chieftain. Lehder Rivas, Gilberto Rodriguez, Gonzalo Rodriguez Ga­ The next day, after Escobar's mother identifiedthe corpse cha, Evaristo Porras, and others. Th¢ objective was to collect and the fingerprints of the dead drug trafficker were con­ money from everyone, so that later, no one traffickercould firmed as Escobar's, the country breathed a huge sigh of denounce the others. The same systqm was used in the assas­ relief. Medellin's inhabitants were perhaps the most relieved sinations of newspaper editor Guill�rmo Cano and many of of all. That city had been the miserable hostage of the drug the politicians and magistrates who �upported the extradition I trafficker for nearly 20 years. Suddenly, it discovered that of traffickers. it was not some appendage of a gang of drug-trafficking Fortunately, Deputy Attorney General Villa Alzate was assassins, and it remembered once again the era in which exposed and purged before he couIkl carry out Rodriguez's Medellin was known as Colombia's leading industrial center, demand. It was learnedthat Villa ke�t an army of 20 lawyers a bustling, friendly, Catholic city, the "city of flowers" and on duty for the task of hamstringingfany Search Team offen­ of "eternal spring." sive by putting together "abuse doSsiers" on Search Team In acknowledging Escobar's demise, President Gaviria members, and by leaking information to Escobar. changed his usual rhetoric. During the award ceremony rec­ Immediately after Villa's purgel and the scandal that the ognizing the members of the Search Team in Medellin for attorney general's office was infiltrated by the cartels, the their victory, Gaviria declared, "Antioquia's values repre­ Search Team picked up Escobar's cold trail and pursued it to sent the best of Colombia's nationality. They are values its end on Dec. 2. which our parents and grandparents have inculcated in their It was during this same time thatlthe Search Team's intel­ families: loyalty, Christian faith, love for Colombia, honest ligence personnel discovered that !personal bodyguards of work, and always fulfilling our duties. These values must be Attorney General Carlos Gustavo Arrieta belonged to the defended, must be recovered, now that the chapter on narco­ narco-terrorist FARC guerrillas, while personal bodyguards terrorism has been closed." of Prosecutor General de Greiffwere in contact with cartel Not a few Colombians squirmed at Gaviria's hypocrisy, chieftains. It came as no great surpmse; after all, if the attor­ given that his administration has been committed since day ney general himself is negotiating With the cartels, why not one to the elimination of Christian morality 'as the basis of his subordinates? social behavior in Colombia, and to its replacement with a supposed "lay ethic" premised on a pragmatic and temporary Despite Gaviria's appeasement social consensus. Escobar's death took place despite Gaviria's appease­ ment policy. In fact, just one month earlier the legislature The enemy has many faces approved a new penal code-draftedin concert with the Cali Escobar's death occurred after a purge of narco-terror­ Cartel's lawyers--offeringsuch concessions as house arrest, ism's spies from the prosecutor general and attorney gener­ waived or drastically reduced sentences, retention of assets, al's offices, which was begun largely on the initiative of and so forth, as a reward for the drug traffickers' surrender. police colonel Alonso Arango Salazar. And yet, despite these generous Offers, dubbed by some Arango became famous after the secret service intercept- analysts "the legalization of the d�g traffickers," the cartel

EIR December 17, 1993 International 33 bosses had failed to surrender. Only police/military action immunity. He is expelled from Congress later that year,after against the cartels has brought any successes to date. a debate promoted by Sen. Rodrigo Lara Bonilla. The fact remains that even should Gaviria be forced to August 1983: Lara Bonilla is appointed justice minister order a military/police mop-up of the Cali Cartel and their by President Belisario Betancur i Over the next eight months, Marxist narco-terrorist partners, the drug-trafficking hydra he begins to investigate the cart¢l's penetration into politics, will continue to regenerate itself as long as the political god­ sports, business, and finance, apd starts to build up the first fathers of the drug trade remain at large. If the war on drugs real intelligence dossiers on the �rugtrade and drugtraffick­ is going to be won, it is the likes of former President Alfonso ers. He urges use of extraditionl against the cartel; conducts Lopez Michelsen, who has repeatedly advised the cartels on the first major bust of the cart¢l, and uncovers irrefutable how to impose their will in Colombia, who must be prosecut­ evidence of collaboration betiween communist guerrilla ed. And the list is a long one, including Antioquia Gov. Juan groups and the cartel. He sponsors the first efforts to use Gomez Martinez and federal prosecutors Carlos Gustavo Ar­ herbicides against drug crops, �nd makes the firstefforts to rieta and Gustavo de Greiff, who continue to use their posi­ forge an Andean-wide war on dJ,tugs. tions to promote appeasement and legalization. April 30, 1984: Lara Bonilla is assassinated by cartelhit­ men. His death triggers an intf1nse but short-lived military war on the cartels. May 1984: Escobar meets �ith former Colombian Presi­ dent Alfonso Lopez Michelsen and Attorney GeneralCarlos Chronology Jimenez Gomez, to try to iron out an amnesty for the cartel. The proposal is rejected by the governmentof PresidentBe- tancur. I Escobar is photographed by! informant pilot Barry Seal, using a Nicaraguan (Sandinis�a) government airstrip to Pablo Escobar's smuggle cocaine. Seal's info�tion serves as the basis for a U.S. indictment of Escobar and other cartel chieftains. reign of terror Seal is later assassinated while iq the U. S. witness protection program. I Mid-1970s: Pablo Escobar steals and resells cemetery July 16, 1984: Patricia Lon�ono, editor of Guerra a las tombstones in the city of Medellin , moves on to stealing cars. Drogas (War on Drugs) magaz�ne in Colombia and wife of Arrested for car theft in 1974, he has the witnesses killed, Anti-Drug Coalition head MaxiJiniliano Londono, is abduct­ and escapes. By 1976, he is running cocaine into the United ed and tormented by elements of Universal Christian Gnostic States through Ecuador. Church, which is linked to Lopez Michelsen and the M-19 June 1976: Pablo Escobar and cousin Gustavo are arrest­ narco-terrorists. ed for cocaine trafficking and attempted bribery, and jailed. Nov. 6, 1985: As the Colombian Supreme Court consid­ Eight months later, the Escobars are released from prison ers several extradition cases, E$cobar's Medellfn Cartel fi­ afterall witnesses against them are killed. nances M -19 guerrillas to the tuneof $5-1 0 million to besiege The United States has accumulated a crime dossier on Colombia's Justice Palace, mutder more than half the Su­ Escobar, which it provides to Colombian authorities. Esco­ preme Court magistrates, and btirn its archives. The justice bar is linked to a ring of assassins-for-hire. system has not recovered to this k:\ay. December 1979: The Colombian Anti-Drug Coalition is Nov. 17, 1986: Col. Jaime Ramirez Gomez, Lara Bonil­ founded, dedicated to exposing the political and financial la's right-hand man in the war on drugs, is assassinated by networks protecting the drug cartels. cartel hitmen. 1981: Escobar and his partners in the Ochoa clan join Dec. 17, 1986: Anti-drug newspaper publisher Guiller­ forces with trafficker Carlos Lehder-a partner of fugitive mo Cano, a fierce opponent of! drug legalization who had banker Robert Vesco--to forge a global trafficking cartel fought any appeasement tendeI).cies in the government, is that comes to control 80% of the world's cocaine trade: the murdered by cartel assassins. Medellin Cartel. Jan. 11, 1987: Lara Bonilla's successor as justice minis­ Over the next decade, Escobar amasses a personal fortune ter, Enrique Parejo Gonzalez, barely survives an assassina­ estimated at $3 billion, and builds an army of assassins and tion attempt by Escobar hit team in Hungary, where he is terrorists. He acquires vast properties, purchases politicians, serving as Colombia's ambassador. priests, and informants in the security forces, and buys him­ Jan. 25, 1987: Anti-drugl Attorney General Carlos self a fanatic following in the Medellin slums. Mauro Hoyos, who had initiate� the first significant confis­ 1982: Escobar "wins" an alternate congressional seat, cations of cartel property, is assassinated. He is the last Co­ plus a multiple-entry U. S. visa and temporary parliamentary lombian attorneygeneral to stand up to narco-terrorism.

34 International IEIR December 17, 1993 Aug. 18, 1989: Presidential candidate Luis Carlos Galan, a close friend and colleague of the murdered Lara Bonilla, is assassinated by the cartel, triggering a bloody war-includ­ ing the bombing of a commercial airliner in which 114 die, Ukraine ets remake the bombing of Bogota's security police headquarters, the g I bombing of the offices of the paper El Espectador. and nu­ merous other terror attacks. Galan's elimination from the of Munich bt1trayal race paves the way for the May 1990 victory of President Cesar Gaviria Trujillo. The westernattitude toward UkraiJileis "a remake of Munich August 1989: After Galan's murder, President Virgilio 1938," which could lead to a new general war on European Barco declares a "war on drugs" and seeks military aid from soil, Ukrainian writer Yuri Pokalcbuk writes in a guest com­ the United States. The necessary materiel is not made avail­ mentary in France's Liberation daily on Dec. 8. able. Covert amnesty negotiations with the narco-terrorist Pokalchuk begins by noting thit force has "succeeded so M- 19 are begun. well" in the internal affairs of Ru�sia, that there is no way October 1989: Cartel lawyer (and Escobar's godfather) Russia won't be tempted to use thteatening speech vis-a-vis Joaquin Vallejo Arbelaez reveals that the cartel had consid­ its neighbors. This is clear in the ".ggressive posture toward ered hiring Henry Kissinger as their Washington lobbyist. Europe" adopted by intelligence chief Yevgeny Primakov in Kissinger's officeref uses to confirmor deny having received his Nov. 25 press conference, in which he rejected NATO such an offer. attempts to integrate central and eastern European countries February 1990: Escobar's narco-terrorist partner, the into the NATO structure. M-19, is granted a political amnesty by the Barco govern­ Pokalchuk stresses that if Russia takes such a hard line ment. The M-19 is later incorporated into Gaviria's cabinet on matters pertaining to countries ofthe former Warsaw Pact, and is instrumental in getting extradition constitutionally how much harder will its attitude betoward the formerSoviet banned in Colombia. republics. After Kiev refused, on Nov. 18, to unconditionally September 1990: Weeks after his inauguration, Presi­ transfer to Russia the totality of itsistrategic missile capabili­ dent Gaviria ends Barco's war on drugs and offers the cartels ties, the Russian ForeignMinist ry �sued a declaration calling lenient prison terms and immunity from extradition. Ukraine "a threat for the security lof Russia." Furthermore, June 1991: Escobar "surrenders" to a jail of his own the recently released Russian military doctrine gives Russia construction, with guards of his own choosing, and continues the right to a "nuclear firststrike" if it claims to be threatened to traffic drugs and murder opponents. He announces his by a nuclear state. Is Ukraine meant by this? intention to study law and run for the presidency, and gives The writer wonders whether aU the noise being made by an interview to the Washington Times stating that "legaliza­ Russia about the missiles, the Black Sea Fleet, Crimea, etc., tion is the solution to put an end to drug trafficking." takes on meaning if one keeps in mind the Russian desire to July 1992: Revelations of Escobar's continuing crimes place Ukraine under Russian influenceaga in. It is only in this force Gaviria governmentto tighten prison conditions. Esco­ context, he stresses, that one can :understand the Ukrainian bar escapes with all his henchmen and relaunches terrorism. reticence to transfer its missiles to Russia. The missiles are 1993: Governmenttries to negotiate new surrender deal "the only bargaining chip that Ukrainehas , to exchange them with Escobar. A powerful "vigilante" group called PEPES for a guarantee by the United Stat¢s or Europe for Ukraine's surfaces and begins to kill cartel members and lawyers, bomb national independence and territorial integrity." Escobar's properties, and threaten his family. A joint Army/ But, he goes on, the West is abandoning Ukrainein its National Police task force, dubbed the Escobar Search Team, unequal confrontation with Russia, hoping that Russia will is initially hard on Escobar's heels, but the trail grows cold succeed, "one way or the other," in bringing Ukraine under amid police charges that the attorneygeneral 's officeis sabo­ its bondage. The Ukrainians feel f'insulted and embittered" taging Search Team efforts. before this "remake of Munich." !The western wager is that October 1993: Gaviria government passes legislation Ukrainian "cowardice and resignation" will prevail, but this designed to give virtual amnesty to the rival Cali Cartel; the is "not assured. For after the Ukraiinians, they risk having to deputy attorney general overseeing police affairs is discov­ make the same wager again respelcting the Moldavians, the ered to have been an agent of the drug cartels, passing securi­ Belarussians, the Baltic countries, and-why not?-the ty information to both the Cali and Medellin cartels; with his Poles, the Hungarians, and the Ozechs. If the bet failed, a purge, the Escobar Search Team's efforts revive. Several Yugoslav-style war would threaten Europe. Even worse. Is cabinet members of the Gaviria government publicly pro­ Europe so myopic, so forgetful and so deaf to its own securi­ mote drug legalization. ty-the same Europe which, twol times in this century, has Dec. 2, 1993: Pablo Escobar is killed in shootout with seen the flames of war, flames which were lit at the borders the Escobar Search Team. of Mitteleuropa1"

EIR December 17, 1993 International 35 Anglo-Americans strike deal WithI Russia to sacrifice Ukraine by Irene Beaudry

On Dec. 2, U.S. Secretary of State Warren Christopher we note with satisfaction . . . the progress in withdrawing the threatened to cut Ukraine off from almost all financial aid, remaining Russian forces from the Baltic states." Therefore, unless Ukraine immediately does the bidding of imperial Hurd added, Ukraine will be removed from the NorthAtlan­ Russia and dismantles all of its nuclear weapons. Ukraine, tic Cooperation Council, and woutd not be allowed to partici­ however, is steadfastly refusing to budge in face of these pate in the new NATO "Partnersmp for Peace" program (see threats. Ukraine has repeatedly insisted that it very much article, p. 37), if it does not takc.1 "swift action" on the de­ wishes to get rid of its weaponry, but that, given the very mands made by NATO that it denuclearize. dramatic events unfolding in Russia, it needs assurances that Is the Anglo-Americans' �at real, or is this all just its borders will be secure. doubletalk to mask the new condominium deal? Russia's new Ukraine·'s position was underscored on Dec. 4 by Ivan military doctrine makes very plain how utterly duplicitous Plyushch, the head of Ukraine's Parliament, who told Reu­ the Anglo-American geopoliticiaQs are . The doctrineempha­ ters news service that his country's position is non-negotia­ sizes Russia's right to first use oflnuclea r weapons, specifi­ ble. Plyushch said that Ukraine did not fear this would isolate cally in the case of "defending"i itself or any ally against Ukraine internationally, despite the strong internationalcriti­ "aggression" employing conventibnal weapons, if the coun­ cism of the conditions which the Parliament imposed when try concerned is the ally of a nuclear power (see EIR , Nov. it gave partial approval to the START arms limitation treaty 12, p. 36). in November. "This issue can only be re-examined if there is In that light, Christopher's s�tement to the Ukrainian a basis for doing so," Plyushch said, and "there can be only Presidium of the Supreme Councijlduring his trip toUkraine one bas.is:agreement with Ukraine's two basic conditions­ on Oct. 25, is double-edged: "Some among you believe that providing us with nuclear fuel and a collective security Ukraine's security concernscoul d best be met by renouncing agreement. " the commitment of this body and the governmentof Ukraine But it is precisely this demand to which the West will not to a non-nuclear future. I disagree. Retention of nuclear agree, because the Anglo-Americans have already forged a weapons would diminish rather �an enhance your security. deal with imperial Russia allowing it to restore its empire­ It would impede, if not imperil,lthe process of integration and that emphatically means retaking Ukraine. As Lenin was into the world community of deqtocratic nations that is the wont to note, if Russia loses Ukraine, it loses its head. only real guarantee of Ukraine' s �curity. " Behind Christopher's word$ lies the veiled threat: Free at last Ukraine had better get rid of its j nuclear weapons because Two years ago, almost to the day, on Dec. I, 1991, the the Anglo-Americans will certai*ly not come to the aid of Ukrainian nation overwhelmingly voted for its independence Ukraine once Russia invades it,l and so, better that there from imperial Russia. For the very first time since 1918, be no nuclear weapons on its territory, or indeed, a worse Ukraine was an independent, free country. catastrophe than Chernobylcoul dioccur. But now, the geopolitical machinations of the Clinton Former Ukrainian Defense Minister Gen. K. Morozov, administration doom that nation to once again go under the in a recent interview, characterized Kozyrev's threats as yoke of Russia. British Foreign Minister Douglas Hurd, cur­ "nothing short of barbaric, cruel, and anti-Christian." rent chairman of NATO's Council of Ministers, quite will­ On the same day that Hurd announced the new condomin­ ingly spilled the beans that such a deal had been made. He ium deal in Brussels, Ukraine Ftesident Leonid Kravchuk told a press conference in Brussels on Dec. 2 that the highest made yet another appeal for help and that Ukraine not be priority of NATO was to establish closer relations with Rus­ forced to its knees. "Other states must understand, that if we sia. "A strong friendship between Russia and NATO is essen­ move gradually, taking account of our situation, we shall tial to the security of Europe. The process of political and [disarm]. ...We should not have to take a decision on our economic reform in Russia continues to move forward and knees," he said.

36 International EIR December 17, 1993 But on their knees they must go, for Hurd's statement is in direct reaction to the fact that the Ukrainian Parliament did ratify the START I accord on Nov. 18, but only with 13 conditions for implementation. NATO bows to Russia "Ukraine ratified this START accord without guarantees of national security, without indispensable financial aid from the West, and without compensation for its tactical weapons on easternEurope transferred to Russia," said the chairman of the parliamentary working group and deputy chairman of the Parliament, Vasyl by Kathleen Klenetsky Durdynets. "But we are not losing hope that the West will take steps NATO foreign ministers conferring �n Brussels, Belgium on to meet us, and will give us monetary aid for the destruction Dec. 2 delivered a sharp rebuffto easternEuropean attempts of nuclear weapons," he said. to obtain security guarantees against the potential for aggres­ Ukraine estimates that it will cost over $2.8 billion to sion from a Russia increasingly dominated by the imperial dismantle its entire nuclear arsenal, and about $1.6 billion to "Third Rome" ideology. dismantle 36% of the nuclear weapons as specified in the Rejecting eastern European membership in NATO for START I treaty Ukraine ratified. the foreseeable future, the foreign ministers meeting, which As outlined by Oleh Bilorus, Ukraine's ambassador to the was attended by Russian Foreign Minister Andrei Kozyrev United States, at a Washington, D.C. pressconference on Nov. and several of his Russian colleagu�s, instead gave its infor­ 19, some of the conditions are: that Ukraine considers the nucle­ mal endorsement to the Partnership for Peace plan promoted ar weaponson its soil to bethe "state property of Ukraine;" that by U.S. Secretary of State Warren Christopher. Ukraine does not consider Article V of the Lisbon Protocol to Under this scheme, which was firstproposed by the Clin­ be binding and, therefore, will not accede to the Nuclear Non­ ton administration earlier this year and is expected to receive Proliferation Treaty (NPT); that if dismantling of the weapons formal approval when NATO heads of state meet in January, occurs outside of Ukraine, Ukraine must directly control the NATO would extend a security "partnership" to a number processto ensurethat thenuclear material is not used to develop of countries, including eastern European countries formerly new weapons;and that the reductionof Ukraine's nuclearweap­ under the Soviet dictatorship. ons cannot occur without economic and technical assistance According to discussion at the ,NATO conference, the from the international community. Partnership for Peace would allow these countries to partici­ Why would the United States not help financially? Why pate in NATO military exercises and to collaborate with not offer some deal to aid Ukraine's catastrophic economy NATO in peacekeeping enterprises; it would also provide in return for dismantling the weapons? Again, Christopher assistance to "partner" countries in military budgeting and blurted out the truth in his Oct. 25 visit to Ukraine: He sug­ other areas. But it would deny to them the all-important gested that the United States could expand trade and private security protections afforded full-fl;edged NATO members investments by lowering tariffson Ukrainian goods and help­ by Article V of the alliance's chatter. In other words, if ing Ukraine join the General Agreement on Tariffs and Trade Russia were to attack Poland, the Czech Republic, or Slovak­ (GAIT). According to Ukrainian-based American press re­ ia, NATO would stay out of it. Instead of getting direct ports, Christopher said that if Ukraine is indeed committed to military assistance from other NATO members in the event market reforms, the United States could mobilize substantial of a military attack, a "partnership'� member would receive economic support channeled through international financial only a "pledge of consultation," as Christopher put it. institutions. In other words, Ukraine must give itself up to The booby prize of "consultationr' will prove small conso­ International Monetary Fund (IMF) shock therapy, a La Po­ lation to the victim of aggression. "That's like having the cops land, or no aid. hold your hand while you're getting mugged, instead of stop­ So it is plain: Ukraine's resistance to being looted, as ping the mugging," commented on� Washington observer. Poland and others have been by shock therapy, has neverthe­ Rubbing salt into the wounds, Christopher gave an inter­ less resulted in that country's total economic collapse. view to the Dec. 3 London Independent, in which he stated Ukraine is among the top three economies of the world with that it was just too bad if Poland, Hungary, and other coun­ the highest rates of inflation-along with Brazil and Zaire. tries of East and Central Europe were dismayed by NATO's Now, because Ukraine refuses to meekly join the Russian actions. "There may be a momenta!}'disa ppointment if they empire, it is to be brought, by western agreement, not to its had high expectations of imminent [NATO] expansion," he knees, but to its death. As Ukrainian writer Yuri Pokalchuk said. But these countries should realize that "membership of put it in a guest commentary in the French daily Liberation NATO is a very serious business. It!s not a social club." on Dec. 7, "The West is suggesting to Ukraine that it lie The NATO decision represents craven kowtowing to down and die before Russia." Russian hard-liners, who have publicly insisted that the West

EIR December 17, 1993 International 37 the 1930s that we were not goibg to world war when we were; we're in that same kind of delusion now. Ukraine a trigger point [Yet] before World War I; the British and leading Americans around Wilson and Roosevelt in this country, In a radio interview on Dec. 8, Lyndon LaRouche com­ for example, knew we were going to war ....In the mented on NA TO's decision to exclude eastern European 1930s, all the leading establishment, from at least 1936 countriesfromjoining the alliance. Excerptsfollow: on in the United States, knew the United States was going to war against Germany .. ..TOday , the difference is, the A new generation is now leading the United States, which highest level of policy-shaping in London and in Wash­ has inherited the terrible features of policy-shaping left ington, those in power around the Clinton administration, over from the wreckage of the Bush administration, which around Major, don't know ....1 is still all over the Clinton administration. They have a Bush made a speech in Kiev! ...and told the Ukraini­ very specific, easily recognized problem, easily recog­ ans to submit to Gorbachov and not to seek independence. nized to anyone who has studied the history, for example, ...You had two key people in the Bush administration, of the 18th century in Europe or the early 20th century. apart from Baker. . . . Now, who are Brent Scowcroft This problem, in technical language, is called a cabinet and Larry Eagleburger? They were formerly employees warfa re mentality. But they are people who have . . . of Kissinger Associates. . ..1 Now, the Eagleburger/ never been educated in history ....They don't under- Thatcher/ScowcrofUBush policy-is still the policy ofthe stand what cabinet warfare is ... . Clinton/Christopher State Department, in modifiedterms : In the Ukraine case, the administration is operating It's differenttheor ems, but the $ame axioms. ...together with London ...to establish Bush's policy Ukraine is a trigger point for general world war. If the of a new global-imperial condominium, with Russia. United States backs down on tlhis issue of Ukraine, then This is also a delusion, one should be reminded, like they set the forces in motion for a Russian Third Rome the delusions of the early part of this century, before dictatorship with very confidently aggressive foreign World War I, and the greater delusions which took over aims, beyond the so-called Near Abroad, for a present­ much of U. S. policy among the more credulous people in day Russia.

not extend security guarantees to Moscow's former eastern very comforting and they have �een very supportiveof it." European colonies. Not surprisingly, the NAT(j) decision elicited strong re­ sponses from those who see it as yet another indication that Russian armtwisting the West, and the United States and Britain in particular,are Russian pressure on NATO on this issue has been intense. seeking to establish a New Ya.ta deal with Moscow, at the A week before the Brussels meeting, Russian foreign intelli­ expense of smaller powers. gence head Yevgeny Primakov issued a statement warning Polish officialswere amon� those said to be "deeply dis­ NATO not to oppose Russia's wishes, ominously asserting appointed" with the outcome df the Brussels meeting. The that an expansion of NATO would force Moscow into "fun­ Polish deputy defense ministe� gave a press conference on damental" countermeasures. In effect, westernEurope and Dec. 7 in which he asserted thatlNATO membership remains the United States have given Russia a veto over NATO af­ one of Poland's chief strategic �oals, and assertedthat Rus­ fairs, and, in the process, have de facto conceded that the old sian fears on this score were grQundless. Soviet sphere of influence in eastern Europe remains-no Jan Nowak, national director of the Polish American matter what talk of "peace and democracy" Boris Yeltsin and Congress, believes that the Clinton administration's Partner­ his entourage may indulge in. ship for Peace plan "may be perceived in Moscow as a 'green Foreign Minister Kozyrev made no bones about the fact light' for ambitions to restorei the Russian empire and to that Russia was pleased with NATO's capitulation. After regain its sphere of influencein: East Central Europe." meeting with Christopher in Brussels following the NATO "What looked like prompt acceptance by the United conference, Kozyrev gloated to reporters that the Partnership States and its allies of Moscow's 'veto' against the NATO for Peace is "a good idea. Partnership is the key word." membership of Poland, HungaIjy, and the Czech and Slovak And Clinton Defense Secretary Les Aspin, speaking at a republics will have an encouraiging impact on those politi­ conference in Washington on Dec. 3, commented (with no cians around Boris Yeltsin whp are seeking recognition of irony apparent) that NATO's adoption of the Christopher Russia as the sole 'peacemaker' for the entire area of the plan "gives Russia less heartburn.This is a proposal they find former Soviet Union," Nowak warned.

38 International . EIR December 17, 1993 Bosnia-Hercegovina I

'The greatest obstacle to peacJ is the policy of Great Britain' by Our Special Correspondent

All quotes are paraphrases, typed upfr om handwritten notes, taking over the presidency of the E rope an Community as of as there were no offi cial stenographers and no offi cial min­ January 1994; third, what to do bout the inaction of the utes taken of the proceedings. Clinton administration; and fourth, how to deal with the U.N. cut-off of food aid to Bosnia. The e agenda items were de­ On Dec. 1 and 2, there took place in Ki:inigswinter, Germany bated, despite attempts by Dr. Tillran Zulch of the Society a remarkable gathering under the heading "Conference of for Endangered Peoples to deflect attention away from Great International Parliamentarians and other Citizens against Britain by making Croatia the wor 'S bogeyman. Genocide in Bosnia-Hercegovina," organized by the Friends lt of Bosnia Action Group Malaysia, and the German Members Britain complicit in genocide of Parliament Dr. Christian Schwarz-Schilling and Stefan It was highly instructive to he firsthandthe unvarnished Schwarz. views of Dr. Ganic, the Bosnian ice president, viewed by Among those who attended were Dr. Ej up Ganic, vice many as the backbone of the Bos ian resistance. Dropping president of Bosnia, who was present throughout, and Euro­ all pretense of diplomacy, Ganic said that to his mind, there pean, Malaysian, and American parliamentarians, including could be no shadow of doubt Great Britain is indeed U.S. Reps. Frank McCloskey (D-Ind.) and Charles Wilson complicit in genocide, through to uphold the arms (D-Tex.); Daniel Picotin; Gabrielle Traxler, MP, (Vienna); embargo upon Bosnia. It is she, said, who has kept the Dominic Puthucheary; Gen. J.A. Count von Kielmansegg, the former NATO commander in Bosnia; George Kenney and Marshall Freeman Harris, both formerly of the U.S. State Department, and about 40 others, including military experts and foreign policy advisers. From the German side, the moving spirit was Mr. Schwarz , who was also the parlia­ mentarian leading the campaign to force the German Parlia­ ment to face the truth of the Serbian-run concentration camps and rape camps in Bosnia; two weeks before, he had been deselected by his party, the Christian Democratic Union, and will not be allowed to stand on the CDU ticket for the upcoming elections. The reason given by party spokesmen was that Mr. Schwarz is "a giraffe with his head in the clouds"; the actual reason appears to be that the 34-year­ old, who is perhaps the only CDU politician left whom the population does not despise, has not been shy with respect to his public statements on the role of Great Britain in instigating the war in the Balkans. The consensus at this meeting was that the "greatest ob­ stacle to peace in Europe is the policy of Great Britain," to use Schwarz's words. Four items were placed onto the agenda by u.s. Rep. Frank McCloskey (D-Ind.) "rpspnlPfl. to the conference the most prominent MPs present: first, how to handle the a resolution to endorse s suit against Great British problem; second, how to handle the related problem Britain, which charges Britain with in genocide . The of a power allied to Serbia and Great Britain, namely Greece, resolution was accepted.

EIR December 17, 1993 International 39 believe that there is only one chance left to get around the U.N. High Commission for Refugees (UNHCR) sabotage and feed the Bosnian people: private aid organizations; the The Konigswinter same has been recently confirmedby aid organizations con­ final communique sulted by EIR . It was felt by everyone present-and David Owen, the pro-Serbian "mediator," in his Guildhall speech a I week earlier, made little attempt;to hide this-that the pur- Dr. Ganic's press conference, given on Dec. 2 in the pose of the UNHCR food cutoff .s to blackmail the govern­ press room of the Bonn Parliament, and to which he ment and Armed Forces of Bosni� by starving out their popu­ was accompanied by a dozen foreign parliamentarians lation, and thereby force the Bosnian authorities to their who sat with him on the podium, was blacked out by knees at the Geneva talks. In the words of a well-known the German press and electronic media. No sooner had journalistpr esent: "The whole U.N. aid operation is nothing Dr. Ganic finished speaking, than a dozen television but a fig leaf. We are keeping people alive to watch them camermen ran in for the next press conference, which be killed ....David Owen is an accomplice, a criminal was about forest ecology. There can be little doubt that accomplice. Germans MPs must do everything to prevent this was a calculated offense by the German govern­ Owen from speaking in the name10f the EC." ment, the more so, as not a single German paper, to our knowledge, ran a report, nor did they reprint the Demand that British and french troops leave final Konigswinter press release, the main points of That was the context in whichlRep. Charles Wilson asked which are as follows: the conference participants whetllerthey should not vote up • rejects the Owen-Stoltenberg proposal to create a resolution demanding that the French and British troops in "a new state along ethnic lines"; Bosnia be withdrawn. Supposedly there to guard convoys, • calls for the resignation of "mediators" David he said, they are in fact being held in Bosnia as hostages of Owen and ThorvaldStoltenberg; their governments to block any iU.S. attempt to militarily • condemns the present interruption of humanitar­ intervene against Serbia; in his ;view, these troops should ian aid to Bosnia as a crime against humanity, notably leave forthwith. A consensus was not reached on Wilson's stating: "We condemn David Owen's suggestion that proposal, however. humanitarian aid might have to be withdrawn if there The following day, Dr. Ganic intervened again, on the is no agreement in Geneva"; Geneva talks: "We are under m�sive pressure to sign a so­ • demands that the economically and strategically called peace agreement. I can teU you something of what the vital Tuzla Airport re-opened; internaldiscussion is at Geneva. We are being told: 'You can • condemns the new German-French proposalto save your people, or save your �ountry ....Nothing will lift sanctions against Serbia if the latter cedes a little happen to save you, so cut a deali now, you'll get 30% of the more land; territory. ' When I reject this madIkess, they say I am a radical! • calls for liftingthe arms embargo against Bosn­ David Owen has been going round telling people: 'Dr. Ganic ia-Hercegovina and for the use of force, including air can afford to refuse a deal, bec�se he is a mathematician, strikes, against those who obstruct the movement of and can get a job in the U.S.�. any time. But you, the supplies. Bosnian people, you have to stay there. So tell Ganic to cut the deal. ' Geneva is the worst; itlis so bad, there is such low talking, it is so miserable wha� goes on there. And Lord Owen is trying to say: I am the world, I am European democ­ other western countries in line. The vice president recalled racy. And he is not. how his own father would always refer to the British sellout "When I proposed to move the talks from Geneva to New of Czechoslovakia (in 1938) in terms so unflattering that one York, so that we could not be carved up in silence, [U.S.] hesitates to repeat them here; he noted that it was almost Secretary of State [Warren] Christopher said to me, 'You impossible, during World War II, to get the British press to want to create a media zoo in New York, Dr. Ganic.' It is publish anything on the existence of the concentration camps. always through British channel� that the State Department Now that I am on the receiving end of the same policy, he handles the media in Europe. That is what I am told. That is said, I have finallyunderstood what my father meant. a big problem. It is Dr. Ganic's informed conclusion that Unprofor, the "There are many spy agenclies in Bosnia, but only 85 U.N. so-called peacekeeping force, is anything but neutral: registered mujaheddin. I went to the 85 registered mujahed­ "They decide who shall live in Bosnia, and who die," by their din and I said, 'You are a head*he. All you 85 do is bring finger-tipcontrol over the food supplies into the country. This the attention ofthe westernpress onto 'fundamentalism. ' But point was also raised by Traxler and Schwarz, both of whom we Bosnians will never be fundamentalists. As for the rest of

40 International EIR December 17, 1993 the so-called 'muj aheddin,' well, they are finely equipped de III of the Genocide Convention. The suit, the strongest and kitted out, their English is terrific, but strangely, they card Bosnia has to play if the westernpopulations and press speak no other tongues. are to understand what this war is ,actually about, was sup­ "As for the conflictwith the Croats, it was much support­ posed to be presented on Dec. 6 before the InternationalCourt ed from outside. of Justice in The Hague, The Netherlands, but, although "We need 20,000 demonstrators in Frankfurt or Berlin, announced by worldwide press release, this has not yet oc­ 50,000 in London. Western newspaper editors have instruc­ curred at the time of writing (Dec. 9). tions not to cover Bosnia unless there are 25 dead per day or Representative McCloskey presented a verbal resolution more, or unless at least nine children are killed. to the participants of the conferenc¢, which was accepted, to "There is a huge operation by British intelligence to de­ endorse the suit against Great Britain; this has been prepared stroy the Muslims from the inside. Abdic is a creation of on behalf of the government of Bosnia by Prof. Francis Lord Owen. Owen told him at Geneva, go with it! But Abdic Boyle, a leading authority in international law , who teaches was not able, so they had to drop it, they said to him, we at the University of Illinois at Cbampagne, and who has gave you everything, but you didn't fly! recently pursued Serbia under the Genocide Convention at "If Bosnia survives, which I hope and pray she shall, we The Hague. Known internationally for his interventions in shall be the most stable country in the world! They have favor of Bosnia's right to statehood, McCloskey has called given us every poison to drink, we have drunk it, and yet, we for air strikes against Serbia, liftingthe armsembargo against are still there!" Bosnia, and the removal of Lord Owen as "negotiator"; he stated that the government of Bosnia should not allow itself to be held back for any reason whatsoeverfrom prosecuting Legal proceedings against the suit against Great Britain. He was strongly seconded in this by an Englishman from a group founded by Prof. Adrian Great Britain for genocide Hastings, "Alliance for Bosnia," which is the center of oppo­ sition to Foreign Officepolicy in Great Britain. The congress­ One of the critical issues raised during the debates was man also called upon Vice President Ganic to convey the the question of the suit brought by the governmentof Bosnia urgency of this message to the presidency and government against Great Britain for complicity in genocide, under Arti- of Bosnia, and to the Bosnian people.

Why U.N. plans ;'or world government must be stopped a new special report from Executive In telligence Review $250 .240 pages with authoritative case studies of Make checks payable to: • maps Iraq. Cambodia. EI Salvador. Somalia. • charts ElK News Service. Inc. and the former Yugoslavia . • illustrations p.o. Box 17390 Washington, D.C. 20041 -0390

EIR December 17, 1993 International 41 In a letter to U.N. Secretary General Boutros Boutros­ Ghali, Sir David Hannay, Great Britain's ambassador to the Venezuela U.N., said that the "British government rejects as totally without foundation the allegations contained in the Republic of Bosnia-Hercegovina's statement of intention to institute legal proceedings against the United Kingdom. If such pro­ ceedings are initiated, they will be vigorously defended." When the Bosnian suit was first announced in November, the London Daily Telegraph promptly quoted anonymous Sao Paulo FOnIm sources in the British governmentwarning that humanitarian aid to Bosnia could be cut off at any time if such "ungrateful­ ness" were indeed shown. In the meantime, as one might loses in electionsi expect, a full-scale British intelligence ploy has been mount­ by Cynthia R. Rush ed behind the scenes, to armtwist the governmentof Bosnia into dropping its suit. The Sao Paulo Forum, the coalition of lbero-America's 'Moral appeals are useless' narco-terrorist organizations created by Cuba in 1990, failed Among the more extraordinary interventions were those in its attempts to install one of its members as President of of Gen. J .A. Count von Kielmansegg, fonnerlyNATO Com­ Venezuela in the Dec. 5 election!!. With 20% of the vote, the mander for the NorthernRegion , and until recently head of candidate of the left-wing Radi

42 International EIR December 17, 1993 no choice but to follow suit. A heavy military deployment eignty, unleashing ethnic conflict, civil war, and imposing nationwide also had its effect. fascist social control in the vacuum leftby institutional col­ lapse. No overwhelming mandate Just days before the Dec. 5 elect�ons, the Clinton admin­ The question now is whether Caldera will actually break istration sent Assistant Secretary of State for Inter-American with Venezuela's elites, with whom he has a long asso­ AffairsAlexa nder Watson and RichardFeinberg , the Nation­ ciation, and adopt the policies required to rebuild the coun­ al Security Council's man in chargt of Ibero-American af­ try . He does not have an overwhelming mandate and is fairs, into Caracas to baldly support the Causa R candidate expected to have little congressional support. But any at­ and to threaten Venezuela's Armed Forces not to consider tempt to go back to the free trade economic recipes applied coup action should Causa R win. Feinberg, a former presi­ by former President Carlos Andres Perez would immediately dent of the Dialogue, stayed through the elections. Watson make the country ungovernable. In the aftermath of Calde­ carried a letter from President Clinton to Venezuelan Presi­ ra's victory, spokesmen for the international banking elites dent Ramon J. Vehisquez in which Clinton warned that "there have already expressed the hope that he will become another is no possibility of normal relations between the United States Carlos Menem, the Argentine President who campaigned and a non-democratic Venezuela." In a speech Dec. 3 before in 1989 on a nationalist platform only to embrace harsh the Venezuelan-American Chamber of Commerce, Watson austerity policies. elaborated that a military coup in Venezuela would lead to a The electoral outcome and the basis on which Caldera cutoff in all bilateral trade relations, and revocation of visas campaigned have caused considerable nail-biting among the for travel to the United States. Anglo-American political and financial leaderships. For de­ cades Venezuela was the showcase of Ibero-American "de­ What's next? mocracy"; but in the past two years it has been shaken by The fightto determine the character of the Caldera presi­ social unrest caused by the government's application of Inter­ dency, which will begin in February j has already begun. It is national Monetary Fund austerity policies, as well as by nu­ not encouraging that one of his key advisers is Julio Sosa merous corruption scandals involving President Carlos Rodriguez, a member of the Inter-American Dialogue whose Andres Perez. In 1992, nationalist military forces twice at­ name has been mooted as a possible finance minister in the tempted to overthrow CAP; finally, he was removed from new regime. Several international JIlews media insisted on officeby congressional action in mid-1993. Dec. 7 that most of what Caldera said during his campaign The Anglo-Americans fear that universal hatred of the was just "populist bluster," and that he didn't really mean it. banking community's economic reforms, and of corrupt po­ More than one source reported that be had sent his financial litical parties and bureaucracies, will overturn their insane advisers abroad during the campaigJll to reassure foreign in­ reforms. Sebastian Edwards, the World Bank's chief econo­ vestors and had already put together a management team that mist for Ibero-America who was quoted in the Dec. 7 London included many advocates of free market reforms. Financial Times, expressed this concern clearly when he In his firstpr ess conference on Dec. 6, Caldera carefully predicted that the Venezuelan election results "will be felt reiterated his campaign themes. Calling for a great "national beyond Venezuela's borders." Noting that this is the first accord" of all Venezuelans, he statedlthatfree marketreforms electoral triumph of a presidential candidate in a leading must be modifiedto bring greater socfal justice to the millions Ibero-American economy who is "explicitly opposed" to of his impoverished countrymen, altbough he gave no details market-oriented economic reforms, Edwards warnedthat the on which reforms he would modify. He restated his vow that election shows that "economic reforms have not been consol­ he would eliminate the 10% value-added tax, and announced idated in Latin America," and added, "I think this will pro­ that he is seeking "reasonable solutions" to the problem of vide some kind of signal to other politicians in the region." the foreign debt. A priority task, he said, would be to reunite The only countries in which the reform process definitely the country's Armed Forces whose !support for democratic can't be reversed, he said, are Chile and Mexico, and Argen­ institutions is vital. tina is "debatable." Causa R is contesting the vote :count which shows its This is why agencies such as the Inter-American Dia­ candidate in fourth place, and is claiming that the party is in logue (lAD), the Clinton administration's chief adviser on fact the country's most important political force which in­ Ibero-American policy, and the U.S. State Department have tends to be a "scrupulous watchdog" Mthe new government's joined with Fidel Castro in promoting the Sao Paulo Forum's functioning. Caldera would have to work with Causa R, he candidates throughout the continent: to counter growing mili­ said, because the new government, "can't get the country tary and civilian resistance to these nation-wrecking strate­ running on its own." Following Caldera's press conference, gies. The Forum's affiliated presidential candidates are not Causa R Secretary General Pablo Medina told the President­ only committed to continuing the free market madness. They elect, "You can count on us," and suggested a meeting to intend to rip apart national institutions which defend sover- discuss collaboration.

EIR December 17, 1993 International 43 The Chinese Democracy Movement

lives on, say its exiled leaders I

by Cho Wen-pin

On Nov. 14, the very last day of the Third Plenum of the The following is the first p�blication in English of the Chinese Communist Party held in the People's Hall on Seattle Declaration. It was translated from the Chinese news­ Tiananmen Square, police took away two dissidents, Yang paper World Journal from Nov.1 23. Zhou and Qin Yongmin, after a meeting in which nine dissi­ dents signed a preliminary draftof a "peace charter" on politi­ The Seattle Declaration I cal reform. We, the undersigned, see ourselves as members of an The peace charter, which reads, "we all agreed on the international coalition of inde�ndent democratic organiza­ principle of open, non-violent action to open the unified tions as well as individual and intellectual dissidents, assem­ movement to protect human rights on a national scale," was bling here during the Asia Paf,::ific Economic Community initiated by Qin Yongmin, and written to promote non-vio­ conference and Sino-U.S. summit meeting in Seattle, with lent political reform, individual rights, the release of political our moral commitments and under the name of civilized prisoners, and to stimulate dialogue. The movement was human consciousness, to state our fundamental position on joined four days later by representatives of the new Unified the major issues facing our country, and to express our deep Movement to Protect Human Rights, based in the central city concerns over the future and thj:: happiness of all the people of Xian . and nations in China. During the Asia Pacific Economic Cooperation confer­ Today, everyone-no matt�r how much one's ideology ence in Seattle, six overseas Chinese organizations gathered and political position differ from those of others-should to protest the visit of China's President, Jiang Zeming. On sense from his daily life that the whole world is undergoing Nov. 21, Ni Yuxian (who was twice jailed and barely escaped a profound and drastic change as it is about to enter the 21st death for his struggle for a democratic China) and others century. After the collapse of the Communist Alliance and initiated the Seattle Declaration, signed by 39 democratic the end of the Cold War, a half-century of confrontations movement leaders in exile. The signers include Liu Bingyan, between the two blocs and genocidal clashes over ideologies senior journalist, now head of the China Initiative, based in is being gradually replaced by imovements for freedom and Princeton, New Jersey; Wang Bingzhang, founder of China democracy under a rational and peaceful theme; a historical Sp ring magazine; Wang Che, founder of the Christian Demo­ anomaly that isolates a quartet of the world population in cratic Alliance; Zheng Yi, the reporter who shocked the China from the rest of the worlc!l, and opposes Chinese mod­ world with the story about the practice of cannibalism during ernization, is disappearing, irreversibly, from the scene. the Cultural Revolution; Li Lu, Wuer Kaixi, Zhang Boli, Protecting human rights and the dignity to realize the true and Xiang Xiaoji, all students leaders in 1989 in Tiananmen value of a human being has become the basic demand among Square; and Wang Ruowang, dissident journalistand senior the new generations in China. I writer. However, the political syStem in mainland China is Wei Jingshen, jailed for 15 years as a political prisoner, founded on a basis that only guarantees the privilegesof a few in a recent article accused the United States of putting money cliques-not elected by the p�ople-maintained by using before morality. He called President Clinton's new policy of violent political methods and depriving the majorityof basic "constructive engagement" with Beijing a "misguided shift" human rights. The truth of in�sputable facts, sounder than which will be taken by the Chinese people as proof that the any arguments from the curre�t regime and its supporters, Communist Party had been right to charge that "the American speaks loudly: No one with an iindependent character would governmentis controlled by rich capitalists. All you have to indefinitely tolerate this unlimited political and economic do is offer them a chance to make money and anything goes." slavery. Thus, people would take any opportunity to rebel This hero of the 1979 Beijing Spring had no illusion that for theirrights to live. As was d¢monstrated in the Tiananmen economic modernization could possibly succeed if freedom Square Student Movement, and again in the recent "Peace of ideas is crushed by a tyrannical regime (see EIR , Feb. 14, Charter" Democratic Manife�to, no one can ever kill 1992, p. 32). freedom.

44 International EIR December 17, 1993 For more than two score years , China has been ruled chance China has to transform itseIjfinto a peaceful society. under one party which in tum has been run by one man, a For the sake of 1.1 billion Chi�ese, we hereby honestly political system needed for the military communist economy. appeal to the Chinese Communist gime: Face the reality of This personalized system, which features an absolute author­ this new political era, take this istorical opportunity to ity under absolute control, could only be created under lasting change course toward what willlea ', to the current ofbenevo­ civil wars and a violent international environment. Now, lence and improved livelihood of thf people, take the follow­ long wars , extreme austerity, and general illiteracy-the ing necessary steps for the benefitJ �f China, its people, and : very sustenance fostering that system-is being overturned. the governmentitself: "Furs can't grow if there is no skin," as the old Chinese 1) Announce the unconditional release of all the political proverb says. China can't generate another strongman like prisoners and overturn all the charg�s made against innocent Mao Zedong or Deng Xiaoping to sustain the corrupt and people who were politically pers�cuted over the past 40 falling house of tyranny. Now, everyone sees clearly the years , retract all the slanders again�t the political dissidents, coming devastating chaos in the system after the death of and allow all those in exile to retunihome from overseas. Deng Xiaoping. Due to the historical burden the Chinese 2) Guarantee freedom of speec� and freedom of press. Communist Party inherited from its past mistakes, and due to 3) Open the society so people c�n assemble in public and the contradictions within the current structure of its political can organize political groups and �ssociations; and all the system, the so-called "core" leadership appointed by a few peaceful political activities of there groups should be al- cannot possibly fillthe power vacuum caused by the death of lowed. i Deng Xiaoping; Chinese society would not accept any man­ 4) Let the people elect major +ffices of government at made "savior." The day when the last political strongman all levels, and let citizens freely pfuticipate in elections as dies would be the time of the very collapse of the current candidates. I political system. All of the above four points ar� the essence of the mini­ The Chinese Communist Party uses violence to suppress mum democratic rights of citizen$ who live in a modem the yearning for democracy by the people, and to maintain civilized country, only remotely proaching our objective rule by a few privileged cliques. It appears to some that each of a truly democratic state. Yet, onl if the current regime of time the regime has gained for itself a temporary political the Chinese Communist Party pro �. 'ses the above items, can stability with armed action, the inhuman brutality plants it demonstrate to the country and tlie world that the Chinese seeds of hatred among the people. Over 40 years, communist government has determined to ren�w itself according to the rule has caused the death of more than 40 million Chinese. tide of the times, thus laying a peaC UI cornerstone for social Hostility grows daily among the countless compatriots who transformation. Needless to say, the Chinese de! ocratic movement criti­ are suffering from the atrocious reign. The economic reform program-having, relatively, un­ cizes the current political system i� China, while remaining leashed some economic potential which was suppressed for opposed to the latter. But the only �eason for our fight is to scores of years, and making some increases in productivity, establish a system that protects b�ic human rights and to thus offering a better material life for those who benefitfrom have a society in which all Citizens' can enjoy their political this reform-however, has not brought a change in the liveli­ right to choose their own governm nt in order to provide a better livelihood, prevent further s; ffering, and protect the hood of the majority in the country nor a reduction of com­ plaints and anger from its vast population. There was no freedom of all the people of all the rations in China. We do fundamental change in the obsolete political system which not harbor hatred toward any partifular political figure nor ensures the few privileged cliques the opportunity to carve to any particular political group, q,rganization, or faction, up state properties and to loot the poor. The degenerate ruling including the Communist Party , n

EIR December 17, 1993 International 45 Will Mexico disintegrate in next year's presidential elections? by Hugo L6pez Ochoa and Gretchen Small

It surprised no one that Luis Donaldo Colosio used his accep­ But a statement by Bank elf Mexico director Miguel tance speech Nov. 30 as the presidential candidate of the Mancera on the very day Colosio was "unveiled" as the PRJ's ruling PRI party to announce that, if elected, his mission will candidate, provides a more accurate translation ofwhat Colo­ be to continue, now in the context of the North American sio means by "creating jobs": The time has come to promote, Free Trade Agreement (NAFTA), the International Mone­ "preferentially, projects which llfe labor-intensive, and not tary Fund economic policy imposed since 1983 by Presidents capital-intensive," Mancera said, arguing that the lack of Miguel de la Madrid and Carlos Salinas de Gortari. "There capital or domestic savings left no other choice. will be no deviations, let that be clear," he said. "Financial Back in March 1993, the Ibero-American Solidarity discipline has arrived to never leave again." Movement of Mexico issued a statement entitled "Down with From his post as president of the PRI in the firstyears of the Mexican System of Genocide!! Neither Economic liberal­ the Salinas government,and then as secretary of ecology and ism nor the Farce of Pronasol!" which denounced Colosio's social development, Colosio, baptized by the PRI as the Solidarity program as the equivalent ofthe slave labor armies candidate of "Unity and Hope," was always the standard­ created under Hja1mar Schacht,! Hitler's Economics Minis­ bearer of "social liberalism," the slogan with which the so­ ter. It can well be said that Prona�l implements the education called "generation of change" has tried to disguise the cruel which Colosio received at the University of Pennsylvania's effects of the savage financecapitalism imposed upon Mexi­ Wharton School and Austria's InternationalInstitute for Ap­ co as a condition for signing NAFTA. plied Systems Analysis, two of the world's top planning centers for the ma1thusian Club cl>fRome . Slave master for genocide Colosio consolidated his aura of power within the Mexi­ Succession not guaranteed can system when, as PRI president in 1991, he set up the In previous years, it has been! safe to assume that whoever Program for National Solidarity (Pronasol) of supposed so­ the President of Mexico "unveils" as the PRJ's candidate cial aid which has now become the hallmark of the Salinas will, with surety, become the next President, the months regime. Because of that program, Colosio was credited with of election campaigning and voting serving only to rubber­ being the architect of the PRI' s triumph in the 1991 mid-term stamp the President's choice. Fpr the first time in decades, elections, which momentarily rescued an image oflegitimacy however, this can no longer be llI'sumed. There is no guaran­ for the Salinas regime which it had not enjoyed since the tee that the PRJ's candidate, Colosio, will indeed become PRI's electoral debacle in the 1988 presidential elections. Mexico's next President in 1994. That election convinced many that the party had won only by Two processes have oveIt4rned the field upon which fraud. The tales of the supposed success of the Solidarity Mexico's presidential elections have long been based. program have reached such heights that the Anglo-American Across the globe, political parties and institutions are oligarchy now champions it as a model of how to keep Inter­ shattering under the weight ofl usurious financial policies national Monetary Fund (IMF) policies intact for all Ibero­ which violate the laws of physical economy, and Mexico is America. no exception, wishful delusions about Pronasol's power to The PRI machine is presenting the 43-year-old Colosio contain the crisis notwithstanding. Even the farm vote, a as a sensitive man concerned about poverty; a social fighter traditional bastion of support for the PRI due to the enormous since his youth when he participated as a leader of the student control which the partyexercises over the poor communities movement which shook his native state of Sonora in 1967; and collectivized agriculture, already threatens to vanish by and, of course, a man influencedby the 1968 student move­ next year. Throughout 1993, and increasingly since August, ment-"the generation of change." Indeed, in his acceptance mobilizations by farmers and pe/lsantshave been multiplying speech, Colosio promised to resolve the unemployment and against farm foreclosures and the government's austeritypol­ wage problems, and support small and medium-size in­ icies which have driven the MeXican farmsector into bank­ dustry. ruptcy.

46 International EIR December 17, 1993 Piggy-backed upon that political upheaval, however, is racy" through the upcoming elections. Invitees included rep­ the strategy of some in Washington and their Wall Street resentatives of the State Department's Agency for mentors, to direct the effectsof that crisis to obliterate Mexi­ International Development (AID), the U.S. Information co's national institutions, now that they have shredded its Agency (USIA), the Carter Center of Atlanta, the left-wing national economy with the imposition of NAFfA. At the Washington Office on Latin America, the Foundation for center of this operation are the radical "democrats" of the Democracy, and the National Endqwment for Democracy's Inter-American Dialogue, a bankers' policy group which two branches-the National Democratic Institute and the today tightly controls the Clinton administration's Ibero­ National Republican Institute-am(imgothers . American policy. Deploying Castro's Sao Paulo Forum parti­ Robert Pastor, chief of Latin American affairs at the Car­ es as their instrument, the Dialogue has set out to unleash the ter Center and a participant in the State Department meeting, dogs of war and terrorism against national institutions across hailed it as a sign that for "the first time in a long time the continent. Here, too, Mexico is no exception, despite the ...Washington , in this case the Clinton administration, has illusions of many that no one in Washington could be so begun to address the issue" of Mexican democracy. insane as to push the United States' closest neighbor into As an AID officialexplained to a journalist from Mexi­ civil war. co's El Financiero, one item on the agenda was how to help Mexican "civic organizations" monitor the elections, oversee The crisis has just begun election booths as supposedly "non-.;partisan"observers , and For 24 hours after the nomination of Colosio, the Mexi­ set up "independent" systems of parallel vote counting. The can political class was thrown into panic when it was not model for such an operation is the State Department-run known what Manuel Camacho Solis, the powerful mayor operation against Ferdinand Marc(>s in the Philippines in of the Federal District, would do. Camacho had been the February 1986, where it was a fTlludulent "non-partisan" principal rival of Colosio for the PRI' s nomination, and upon vote-counting organization-run by foreigners-that was losing it, rumors flewthat Camacho would accept nomination central to overturning the election and installing Corazon as the presidential candidate of the rival Democratic Revolu­ Aquino. tionary Party (PRD), replacing its currentcandidate , Cuauh­ U . S. monies have already begun to flow to set up this temoc Cardenas. operation. One of the primary beneficiaries of National En­ Cardenas is one of the stars of the Sao Paulo Forum, and dowment for Democracy financingtoday is a "civic organiza­ thus the PRD has become the leading instrument of the Inter­ tion" set up by the Cardenas campaign. American Dialogue in its war against Mexico. Camacho's favors to Cardenas and the PRD machine became notorious Gore follows Dialogue script while he served as mayor, and he has many personal friends One year ago, the Inter-Amerioan Dialogue announced in the party. At the last minute, Camacho fell back into that with NAFfA would come a war against Mexico's institu­ line and accepted the post of foreign minister in Salinas's tions. The Dialogue report, Convetgence and Community: government-the mere refusal to accept a new post would The Americas in 1993, declared: "For NAFfA to succeed have provoked a crisis-but a split in the PRI remains a ...Mexico must open its politics, end electoral fraud, and possibility on various fronts. fully respect human rights." At a press conference releasing Then, 24 hours after resolving the Camacho affair, anoth­ the report, Dialogue president Richard Feinberg emphasized er crisis exploded under the PRI in the state of Yucatan, that there is "a strong political component" to NAFfA, sin­ when the provisional governor, Dulce Maria Sauri Riancho, gling out Mexico as a target for pOlitical "reform." Today resigned in the wake of the wild electoral fraud perpetrated Feinberg heads Latin American affairs for the National Secu­ by the PRI against the rival National Action Party (PAN) in rity Council. the Nov. 30 state elections. This was also the message given by Vice President Al The response to Colosio's nomination from Wall Street Gore in his visit to Mexico Dec. 1, immediately following and Washington provided another warning that these elec­ the nomination of Colosio. Gore lectured 5,000 business tions will not follow the rules of the past. The New York leaders gathered at Mexico's National Auditorium that what Times greeted the news with an editorial Dec. 1 declaring must follow NAFfA is the spread of "democratic political Mexican democracy to be "a cynical joke." Salinas has made culture" across the continent. To be sure the message was "only marginal changes in a political system built on blatant heard, Gore used the word "democracy" 12 times during patronage, physical intimidation and pervasive electoral his simple half-hour speech! Gore then announced that the fraud .. ..But Mexicans and their neighbors arenot inclined United States will soon invite the heads of state of those to wait much longer," they threatened. countries deemed democratic by the United States, to partici­ Two days later, the State Department hosted a meeting pate in a western hemisphere sUDlll)it-something the Dia­ of governmentagencies and 12 non-governmentalorganiza­ logue has been championing for somj;!time-inorder to "cod­ tions (NGOs) to discuss how to reconstruct "Mexican democ- ify" the principles of democracy and free trade.

EIR December 17, 1993 International 47 I Voters hand major parties a �rise in India state assembly electi�ns by Ramtanu Maitra

In November, fiveIndia n states, with a combined population machal Pradesh, the tables wer� turned, and the BlP could of over 270 million, went through their state assembly elec­ muster no more than one-third o. the total seats, making way ' tions. Although the results have failed to gladden the hearts of for the Congress party to take c trol. In Rajasthan, another any of the three major national parties-Congress, Bharatiya traditional stronghold of the Co gress and BlP, the verdict lanata Party (BlP) , and the lanata Dal (JD)-there is con­ was split, with the BlP coming 0� t as the single largest party, ' vincing evidence that the Indian electorate is undergoing but without an absolute majorit : As it stands now, the BlP a phase change. This became particularly obvious in Uttar is in the process of wooing a few ndependent candidates who Pradesh, the most populous state, which, if it were a country, won at the hustings, to form tl e state government. As in would be the sixth largest nation in the world. Himachal Pradesh, the BlP rec 'ved a drubbing in Madhya State assembly elections in four states-Uttar Pradesh, Pradesh, and the Congress is n w poised to form the state Madhya Pradesh, Himachal Pradesh, and Rajasthan-be­ government. t came necessary after the dismissal of all four state govern­ I . ments in December 1992, when they were all under BlP Shocker in Uttar Pradesli rule, following the demolition of the Babri Masjid mosque The biggest surprise of ther$all , however, was in store in Ayodhya. The governmentof Prime Minister P.V. Nara­ in Uttar Pradesh, where a rece�tly formed coalition of the simha Rao was forced to dismiss them because of allegations Bahujan Samaj Party (BSP) an4 the Samajwadi Party (SP), that the BlP had implicitly helped, through its campaign to the latter a breakaway faction lof the lanata Dal, won an build a Hindu temple on the site where the mosque is situated, astonishing 177 seats out of the 4lz1 assembly seats contested. in bringing down the 16th-century mosque. A fifth state, The BlP came in second wit� 176 seats. Since both the Delhi, went to the polls because its status had been upgraded Congress and the lD had camp�igned primarily to stop the from a union territory surrounding the national capital of BlP juggernaut in that import�nt state, both these parties New Delhi, not unlike the District of Columbia, to a full­ with about 60 seats between the�, have thrown their support fledgedstate . behind the new combine to d�ny the BlP power in Uttar From the very outset, it was evident that the main tussle Pradesh. I was between the Congress Party and the BlP. While the From every angle the electi�n result was a shocker. The Congress-ruled I}ational government is keen to prove that BlP was spending freely to ke�p control of this vital state, its interim policy and its decision to dismiss the four state and the Congress, which previ�sly held 46 seats, was keen governments had met the approval of the Indian electorate, to prove that it had made a com�back. The lanata Dal, which the BlP was out to prove that New Delhi's act itself had given had 90-odd seats before the eledion, had regrouped primarily BlP a political momentum and the party was in the process of to do well in Uttar Pradesh. B�t the strategies of all these growing. The third party, lanata Dal, which had undergone major parties failed, and it is eyident in hindsight that none multiple fragmentation since 1991, in order to survive, had of them had any feel for what v�ters were thinking. recombined in order to fight at the polls. From the end of Instead, the outcome suggejsts a very different develop­ October to almost the end of November, campaigning for the ment. The Bahujan Samaj Party, led by a former scientist polls was the sole preoccupation of the political big-wigs. in the Defense Research org ' ization and a member of a One estimate indicates that the election campaign consumed scheduled (i.e., lower) caste co munity, is a party of sched­ about 10 billion rupees, close to $30 million. uled castes, demanding politici power for this vast majority However, the results have failed to convince anyone that which has been overtly exploitt¥by the major political parti­ the objectives of the major parties have been met. In Delhi, es over the years. Scheduled ca�tes had in the past studiously the traditional stronghold of the BlP and Congress, the BlP backed the Congress, except In 1989 and 1991 when the won most convincingly, routing the Congress party. In Hi- caste-based politics of former �rime Minister V.P. Singh of

48 International EIR December 17, 1993 Janata Dal had taken them into his party's fold. However, identifying with the party or the party's leadership. This time they soon realized the phony caste politics of the Janata Dal around, however, the Muslims identifiedthemselves with a and had shifted their allegiance to the Bahujan Samaj Party, vast majority of socially downtrodden Hindus and with lead­ which preaches political power for the scheduled castes. In ers like Mulayam Singh Yadav and Kanshi Ram, the BSP addition, the Muslims in Uttar Pradesh, frightened by the chief. This development, given the frequently tense Hindu­ growing might of the Hindutva, or Hindu soul, preaching of Muslim relations in India, is a most refreshing development, the BJP, voted en bloc for the BSP-SP coalition to give them and it indicates that the Muslims ar� now willing to play a the edge. role in the future political development of the country. The returnof the Samajwadi Party at the center of power is also a surprise. In 1990, when BJP leader L.K. Advani led Firm rejection of BJP the chariot procession across northern India which culmi­ The other lesson from the five state elections is a clear nated in Ayodhya for the purpose of building momentum on verdict against the Bharatiya Janata Party. Not only could behalf of constructing a Hindu temple where the Babri Masjid the BJP not recapture the states it had hitherto ruled, but it mosque was located, the Uttar Pradesh chief minister was also simply failed to generate enthusiasm about the party's Mulayam Singh Yadav, now the supremo of the Samajwadi goals. One of the reasons for the pOQ!'showing of the BJP is Party. During the 1990 incident, Mulayam Singh had fired the decision of the party leadership qotto change its posture upon the BJP volunteers, causing a massive stampede and as a Hindu chauvinist party. Like some of its own leaders, innumerable deaths. At the time, many political analysts who the electorate was expecting the BQaratiya Janata Party to were gazing at the crystal ball projected a grounds well for "grow up" and act as a responsible n�ional party. While few the BJP in the coming years and wrote Mulayam Singh's Indians will disagree that the partition of India was hideous, political obituary. It is astounding that the former chief minis­ and was perhaps the cause ofmost evils that haunt the subcon­ ter, still campaigning against the BJP, has been voted over­ tinent today, the electorate wanted the BJP to address the whelmingly back into power. bread-and-butter issues-its policy toward industry, labor, and foreign policy-in a more cogent and serious manner. An affirmative vote, not a backlash As one senior Bharatiya Janata theotetician told this author There is no question that what happened in Uttar Pradesh following the elections, it is time to completely reorient is a phenomenon that requires close observation. For the thinking. first time, according to some eyewitnesses, thousands and If the BJP has been humbled and: its juggernaut success­ thousands of scheduled caste members marched on poll day fully stalled, there is little reason for r¢joicing in the Congress to exercise their franchise, something which had never been camp. Uttar Pradesh, the heartbeat ofIndia 's Independence seen before. This implies that the scheduled castes have con­ movement-besides being the home: state of more than 140 fidencethat they can gain political power and that an environ­ million Indians, and the state that has provided the country ment in which a free and fair poll could be conducted has seven of its nine prime ministers so f

EIR December 17, 1993 International 49 Five students operated above the minimum level ofcompe­ tence. Other reports have identifiedhigh levels of adult illiter­ acy, some pointing to adult illiteracy in Australia as high as 20%, and the government's own Economic Planning Advi­ sory Council (EPAC) has fouQd that 25% of children who began secondary schooling could not read and write properly. There has been a call for g¢ater value for the education Australian education dollar from business circles such as the Chamber of Com­ merce and Industry. In one state!of Australia, Victoria, which goes from bad to worse is led by the conservative Liber�l government ofPrime Min­ by Don Veitch ister JeffKennett , the educatioh budget has been cut by 5% in real terms, 7,000 teachers have been made redundant, dismissed, or not replaced, and some 200 schools closed. Education in Australia is in a state of turmoil. Beginning Other schools are to amalgamate. in the early 1970s, attempts were made to carry out social The response of the curre�t Labor government to the engineering programs through the education system. Now, a falling educational standards and parent concern has been new wave of outcome-based education (OBE) is developing to push for a national curriculum. The proposed national with the push for a national curriculum. curriculum has eight key learn�ng areas, including English, In the early 1970s, educational experimenters seized technology, health, physical elducation, mathematics, and control of the education system, but for all the millions of science. Ministers of education from all six states of Australia dollars spent and the dozens of top-level commissions and have just met in the southernI capital of Hobart to plan a inquiries recommending reform, no worthwhile change has national educational syllabus. ll'his battle for a national sylla­ occurred. One major report, the Karmel report, which was bus has gone on for fiveyears . ,Earlier attempts, in 1989, to the basis for a wave of educational experimentation during introduce a "National Outcomes" study, foundered because the government ofGough Whitlam (1972-75), quoted Mao of resistance. But the push has recommenced. Zedong as an educational model-"Let a hundred flowers More generally, the push failed because of objections bloom. Let a thousand schools of thought contend." Is it to the "lack of rigor" and theJ dubious content within the any wonder that it all has come to nought? In those days in curriculum. For example, one troup of four professors from the 1970s, small was beautiful, but now there are moves to the physics and mathematics department at the University of get big and to centralize curriculum at the national level. Adelaide claimed that the propbsed national curriculum was The last 20 years of experimentation and change for the a smorgasbord of "politically dorrect" axioms and had little sake of change in education have done nothing but destabi­ to do with education. lize and confuse teachers, students, and parents; in fact, the The Business Council of Australia, a rat's nest of oli­ 20-year period has been a disaster. Into the vacuum and garchs, through its offshoot, th¢ National Industry Education demoralization in education which is now developing has Forum, is pushing hard for the! national outcome-based cur­ come the New Age educationalist, the deconstructed mind, riculum. The forum believes tQat young people should come and the politically correct curriculum. Lurking in the back­ out of the education system wjth skills useful in commerce ground are InternationalMonetary Fund (IMF)-inspired aus­ and industry. EPAC recommends more vocational education terity measures and the Anti-Defamation League of B'nai to ensure the education system trains workers more effective­ B'rith (ADL) types advocating "multiculturalism" and racial ly. The goal of education, EPAt believes, is to make Austra­ awareness. lia "internationallycompetitive ."

Standards are falling No disagreement from the states Standards of learningare falling. In one state, New South As of mid-December 1993 ,Ithe federal Labor government Wales, education authorities in 1990 introduced basic skills has been forced to backpedal on its plans for a national testing and found to their horror that more than 25% of Year schools curriculum because oflpolitical gamesmanship from Three students are unable to read at a level appropriate to that the Liberal-National parties which dominate state parlia­ grade, and the majority of these students are still impaired ments. Under the constitutional arrangements, the states have when they go on to high school. In another study conducted responsibility for education, but it is the Commonwealth at LaTrobe University in Victoria, it was found that 40% of which has the financial clout!. The state governments are science students fail basic tests of literacy, despite having really only fightingfor "states" rights," and in no way appear passed senior level English. The Australian Council for Edu­ to dissent from the New Agel education. The conservative cational Research studies, a top-level think-tank funded by parties' major dissent would bt over support for capital pun­ the federal government, has shown that only 52% of Year ishment. The states and the federal governmenthave agreed

50 International EIR December 17, 1993 to cooperate with the federal government through a body Ltd. Lieberman claimed that "marktH systems here generally known as the Curriculum Corporation. have done more than political systems to equalize the human The syllabus is also under attack with New Age principles condition," and that this "equality" could be enhanced even being inculcated at the earliest stage of education, the pre­ further by "liberating" poorer stliPents from school and school level. allowing them to work earlier. According to this quack idea, A storm of controversy has arisen over a manual, Quality "early entry into the labor market would be a major step to Improvement and Accreditation System Handbook. released equalizing the life-time earnings ofthose who do not benefit by the minister for family services. The manual sets out from extended formal education." principles to be adhered to in pre-school kindergartens and And the Anti-Defamation League in Australia has been are mandatory before funding will be granted. The minister busy for some time. In 1985, a teacihingkit about the Holo­ has been accused of experimenting with the nation's chil­ caust was designed by the B 'nai : B'rith and released to dren. The 52 regulations are a catalogue of politically correct secondary schools in New South Wales. In 1987,. the New outcomes and prescriptions designed to develop a New Age South Wales Anti-Defamation Commission of B'nai B'rith person. Included in the directives to child-care workers are: received a $25,000 government grant to publish The Preju­ banning either the singing or playing of traditional Christmas dice Book. a book based on the "rac� awareness" campaigns carols in child-care centers because they are "culturally irrel­ of the ADL in the United States. After the success of this evant." Principle 21 from the guidelines condemns the "con­ propaganda effort, in March 1988, ithe Israeli consulate in­ stant repetitions of Christmas songs as background at the end troduced "educational" kits into 410 high schools in New of the year," and claims that these are "culturally irrelevant"; South Wales. In a more recent dev¢lopment in Victoria, an deprives boys from playing with toy trucks, trains, and bull­ inquiry into race hate recommend¢d that all schools have dozers on the grounds this promotes sexist stereotypical be­ race awareness committees to monttor "race" issues. havior; requires centers to learnmulticultura lism, to build a All this is a long way from wh�t is really needed, that sense of cultural variety; and stops the use of stencils and is, a new educational approach based on the education princi­ coloring books, because these encourage "uniformity." ples of Lyndon LaRouche, where students learnto think by "Staff should support pretend play by providing appropriate replicating the great scientificand technological discoveries materials and these should reflect the multicultural nature of down through history. Australian society. The Family Services minister is responsi­ ble for the disbursement of $460 million in annual funding for fee relief and those in the child-care network who do not follow prescriptions in the guidelines, risk losing funding," it reads. According to Julian McGauran, a National Party senator for Victoria, this is an "appalling effort to politicize the na­ tion's pre-school child-care environment." The vice presi­ dent of the Child Care Association has claimed the regula­ tions are "the most insidious form of blackmail"; that the handbook is "not satisfied with children being encouraged to explore and respect other cultures. It virtually makes it compulsory for children to believe in the federal govern­ ment's political policy of multiculturalism."

Market solutions for education The New Right "Thatcherites" who largely control the political and economic agenda of the public service, the Liberal Party, and the Labor government, have attempted to up the propaganda effort in recent times. The free-trade, market solutions which spell the end of a sensible, properly funded state school system are being peddled even more vigorously. Dr. Myron Lieberman, a "leading American educational consultant" who recently arrived in Australia, spoke to a group called the Australian Adam Smith Club in Melbourne. The Adam Smith club is chock full of elements who are pro-English establishment, primarily located in the large mining companies such as Western Mining Corp.,

EIR December 17, 1993 International 51 •

Interview: Junichi Hirokami and Yasukazu Uemura

Tokyo College of Music lunichi Hirokami emphasizes western classics

The TokyoCollege of Music is the oldest private school dedi­ Hirokami: Yes, we want to this basic education cated to the preservation and development of western Classi­ through the music to everyone. cal music in Japan. It was fo unded in 1907, toward the end Uemura: Because this will the general level of culture of the Meiji Era, by Japanese private contributors, to bring of the population, the same you have with your maga- the best ideas from the West. zine, in promoting Classical in the United States. By The orchestra toured the United States in November fo r raising the level of culture of the , we are raising the only the second time in its history, playing at Orchestra level of their personal respolnsllb�llt) and morality, through a Hall, Chicago; debuting at Carnegie Hall, New York; and deeper understanding of music, by this, the students will performing at Washington's Kennedy Center. make an impression on the , which raises the general The college's fo unding principle is "not to have every level of morality of the society a whole. Of course this is ,1 student become a professional musician," Maestro Junichi a high ideal, but this is what we at least trying to do. Hirokami told EIR, but that "by studying music, through this development of the heart, the personal strength of the EIR: One of the fathers of the individual and the contribution one can make to society are zawa. The basis of Meiji I , he once said, was advanced." that "I regard the human indi as the most sacred and Specifically, the aim is "to build the character of the responsible of all orderings on " He said that the pur­ individual which is necessaryfo r the study of especially west­ pose of his work in trying to ' I western culture into ern Classical music," TokyoCollege of Music President Ya­ Japan was to raise up this idea. sukasu Uemura said. Fukuzawa's behind the The college has almost 2,000 students, including 200 in Hirokami: Originally, the a special music kindergarten program, 300 students of the individual students in the music Tokyo College of Music High School, and 1,500 university be true that, while following the of western music, that undergraduates. In April 1993 , the firstclass wasformed of that quality of individual method and individual its new graduate school. character is rapidly developed. must be thought about Maestro Hirokami is a graduate of the college, and now individually, ideas about it be created within each indi- conducts the Norrkoping Symphony in Stockholm, Sweden. vidual mind. This interview with Maestro Hirokami and TokyoCollege of Uemura: Yes, to build the ch,lrilc:ter Music President Yasukazu Uemura was conducted by Kathy is necessary for the study of ejsf)eClally western Classical Wolfe in Washington on Nov. 17. music. In this way, something else said will also come EIR: The Tokyo College of Music was founded in 1907 , at about: that through the itself, this kind of training the end of the·Meiji Era. What was the school's mission? of individuals will also make students ready to become Hirokami: The purpose was not for every student to become citizens of the world, not just Japan. One of the major a professional musician, although of course some will be­ purposes of our school, of , is to help the students come professionals. Others would become workers or understand all aspects of culture. We have·a number housewives. However, by studying music, through this de­ of exchange programs; we have for example, with Indi- velopment ofthe hearl, the personal strength of the individual ana University School of Music Bloomington, run by Neil and the contribution one can make to society are advanced. Tuttle, and the purpose is to these young people feel that they are an important part the world, not just of Japan. EIR: For the entire population, not just for the elites? That's one reason why we take performance trips like

52 International EIR December 17, 1993 • this, not just to perform, but so that the students will see why Japan is now so strong. what's going on in the world. And it was also at that time when people in Japan first became interested in western musi¢ at all. I studied piano EIR: Fukuzawa also said that what really interested him from the age of six, not so seriously, but when I was in junior about the large cannons which U.S. Commodore Perry had high, I began talking about music, studying more seriously, on the ships which he sailed into Tokyo Harbor was not the then entered Tokyo College of Music for my university. guns per se, but the "philosophy behind the guns." Is there a similar idea at your school, to try to study the philosophy EIR: But how did you decide just from playing piano, that behind what would enable Beethoven or Mozart to construct you wanted to be a conductor? such great music? Hirokami: From the beginning I \\jas planning to be a con­ Uemura: Yes, we do have that idea. It's not just the tech­ ductor! Bascially, I just really like to move my arms; I felt I nique of western music that we're after; the school and the had a natural talent to express things with my body. Of teachers all want to teach the full background of the world's course, then you must learn all the s�ores, the structure of all music. Together with the music, we want students to pay the music. attention to the entire history, language, and culture behind But before that, if you feel some�hing, that when you are all the music of these countries. When Ryohei Nomoto, who listening to music, you can move your body to it in a certain built up the school afterthe war, was president, he brought way, then this indicates an important natural talent for con­ in foreign professors to teach, for example, the religious ducting. background of westernClassical music, the Bible, the entire background, as well as English and all the other languages. EIR: Does that mean you also wan_ed to compose? And then, afterwe do this, we have an additional project: Hirokami: I tried that, but I had no talent for it. Even though to mix this with Oriental philosophy, and with our own Japa­ I've now become a conductor, I'm �ot so sure that that was nese music-for example, Zen has some very pure and un­ a good idea, either. The more my careeradvance s, the more usual ideas from the western standpoint-to refine the mix­ intense it becomes; now I have a European orchestra, I have ture, and then to re-export it! a Japanese orchestra, and sometimes I really feel that my For example, that's what we're doing this time with the talent is too small for all this. But you must never give up! Japanese samisen concerto, which was composed by a stu­ I think that's the most import�nt sentiment in music: dent of ours, Mr. Hirohisa Akigishi, who studied western Never give up! And that's what I've been trying to show the music with us and then also studied Japanese music. Now students, when I conduct them now, especially for this tour: he's composing many things mixing western and Japanese No matter how tired you are, no matter how nervous you are, music, and we want to show that to the world. just keep on going, do your best! One of the points of the tour this time, is to show what This is my U.S. debut. When we first got to Chicago, the Japan has done with westernmusic-in performance of west­ students didn't have the confidence to go on and play in em music and in composition of new works. Carnegie Hall-the CarnegieHall debut was too big a dream. So I just kept telling them: Don't gi!Veup ! And I have to be EIR: You have almost 2,000 students, including 200 in a an example for them. This is my firsttime in America, too, I special kindergarten music program. Why the gap between told them, I'm in the same boat as :you. And I had all this kindergarten and high school? conducting to do, I had teaching to dp, I was exhausted-but Uemura: In Japan, everyone can go to a public school very they all know my history, that I'm frQm the same background easily for free from grades one through junior high school, as they are; I had to show them how �o do it. so we can't compete. To get into the best high schools, the And if they continue to remem�r this trip, it will influ­ exam competition becomes more difficult, so then we get ence the rest of their lives, and help each of them to have a students, at the high school level, when they also have to better life. That's really why, I thi�k, we really made this begin to choose a major. tour, and these kids will remember this. We do have, for students in grades 1-8, a Saturday "acad­ So this is exactly as Fukuzawai said, with all his ideas emy," similar to Juilliard Prep, where students come every about the how to improve the individual mind. Because you week to take lessons from the teachers at the school, with an have to do your best, to improve your mind. You can never eye toward later matriculation. give up, because music depends on 4very single individual's best possible personal effort. EIR: Maestro, tell us about your own training. I also want to thank the America� people and the person­ Hirokami: My parents were against my becoming a musi­ nel in Chicago, Carnegie Hall, an(j\ here, for such a very cian, because a musician never knows about his future. I warm welcome to the students and �o me. Your hospitality was an only child, born in 1958, and at that point all boys, was incredible for a student orchttstra with an unknown ' especially an only child, had to become businessmen; that's young conductor, and we will never forget it.

EIR December 17, 1993 International 53 Interview: Vitali Urazhtsev

What reallyha ppened in Moscow on Oct. 3 and 4

This is the second and final installment of our interview with Square? Furthermore, I was not the organizer. The organizers Vitali Urazhtsev, done on Nov. 26, 1993 in Russia. Mr. were People's Veche and Trudovaya Moskva [Working Mos­ Urazhtsev is an elected People's Deputyof the Russian Fed­ cow]. Ilya Konstantinov came jlp and said that we should eration, a member of the Supreme Soviet, or Parliament, take the people somewhere, in view of the possibility of which was abolished by Boris Yeltsin's Decree No . 1,400 of provocations. Sept. 21, 1993. 1n 1988, hefoundedShield, thefirstinde pen­ I had people form ranks and! led them along Lenin Pros­ dent trade union of Russian military servicemen, and was pect, from the center of the city. I had a bullhorn. I was expelled fr om the Soviet Army the next year. Just as he op­ leading this huge crowd of people, and going very slowly. posed Soviet Communist power, Urazhtsev also rejected Then a young guy told me that the police had cut us off from Yeltsin's imposition of rule-by-decree in September of this behind, so that there were only 110,000people following me. year. At the present time, he is in hiding. (See EIR, Dec. /0, I realized that the police were preparing a trap, and gave an p. 29fo r Part 1.) order to tum back to the squar¢. When we returned to the square, I decided to lead peopl� along the Sadovoye Koltso EIR: There are many rumors circulating about the events of [Garden Ring Road] . Oct. 3 and 4 in Moscow. Please tell us about what you When the column got to the Krymsky Bridge, I had to witnessed. decide whether to continue on the Sadovoye Koltso across Urazhtsev: My role in these events has been greatly exag­ the bridge, or to hold a rally at tilepark . Across the Krymsky gerated. In reality, I had in my hands the Mossovet [Moscow Bridge from us were three ranks of OMON [Internal Affairs City Council] resolution on people's right to hold peaceful special forces]. I looked back add saw about 100,000people demonstrations and street marches, in support of the constitu­ coming behind me from Oktyabrskaya Square. I started ne­ tional order. This right is guaranteed for the citizens of Rus­ gotiating with the police colonel, and cited the Mossovet sia, by the Constitution. document in asking him to let th� demonstrators through. He There were rallies in Smolenskaya Square, at the Barri­ said he needed 10 minutes to discuss this with higher-ups. kadnaya metro station, and in Oktyabrskaya Square. Already Fearing provocations, I told hinithat was too long, and gave on Oct. 2, some 50,000 people gathered at Smolenskaya him three minutes, afterwhich 'fiewould begin to move. Square. That evening, I, People's Deputy Ilya Konstantinov, I was at the head of the column. Singing, it began to and Mossovet Deputy Andrei Babushkin dispersed people to move. Then I was hit on the he,d by an OMON man with a their homes. They wanted to stay all night on the barricades, nightstick, and fell. But the police couldn't do anything with but we feared they might be beaten up by the police, so we such a huge crowd. The OMaN fell back, dropping their convinced them to go home for the night. I invited everybody sticks and shields. People began to throw the sticks and to come to Smolenskaya Square at 10 a.m. on Oct. 3, for a shields into the Moscow Rivdr. Helmets and bulletproof rally and demonstration. But on Oct. 3, the police did not let vests, too. They started beatingithe policemen, in retaliation us into the square, although I showed them the Mossovet for their violence. I demanded a halt to the beatings, saying resolution. We went over to Oktyabrskaya Square, where that it was not the policemen's!fault. Young men, 18 to 25 30-40,000 people had already assembled. It was 2 p.m. years old, started putting on tl�e bulletproof vests and hel­ Oktyabrskaya Square was also ringed by police. There was ments and taking the shields. I a huge number of provocateurs . Then provocateurs among us started throwing tear gas Suddenly some woman ran up to me and slipped me a bombs and small explosives at bur feet. We sped up, to get note, supposedly from [People's Deputy Viktor] Anpilov, away from the clouds of gas �nd smoke. Another row of which proposed to bring people to Ilyich Square. But I didn't policemen loomed up in front of us. They were pouring some recognize Anpilov' s signature. I couldn't see why such a kind of caustic liquid across thb road, and throwing smoke note had been brought to me. Why take people to Ilyich bombs. We were walking ahead, eyes tearing up so that we

54 International EIR December 17, 1993 couldn't see anything, and coughing. I ordered people to run, ons. There is no evidence that anybody was killed by citizens to get past that dangerous area. using these weapons. People arrested Braginsky, a henchman We reached Zubovskaya and Smolenskaya Squares. We of Luzhkov. Luzhkov himself wasn't there; he was hiding. were chanting slogans: "Rutskoy Is President," "Fascism I entered the White House through entrance No. 1. The Will Not Stand," and "Put Yeltsin's Band on Trial." We OMON and Internal troops were retteating in haste. Their moved like an avalanche, but in our midst were provocateurs bosses were leaving in cars. from the Ministry of Security and the Ministry of Internal We pushed back the special spiral barbed wire with our Affairs. We seized several vehicles, abandoned by the po­ hands. Many people were injured by !this razor wire, which lice. We seized police ammunition. There were no weapons. cuts the face and hands at the slightest �ouch. Within an hour, The police didn't have them, nor did we. In Smolenskaya the blockade of the White House w�s completely liftedby Square, there were barriers of police and trucks. Upon seeing those who today continue to be s�ared as "red-brown" the huge crowd of people, the policemen got scared and [communist-fascist] , crazy people, or drug addicts. Every­ started to run away. A large number of trucks, which were body was ecstatic, crying from joy, bJltthere was no violent positioned across the road, started to tum around at high rampage or fanaticism. speed and run people over. Policemen were driving the We hadn't been inside the parliament building for five trucks. Twenty or 30 people might have been killed or badly days. The policeman of the White House guard let us in hurt. They were going to use firehoses against us in Smolen­ without a document check. He recognized us. There was a skaya Square, but they didn't work. There was no water, for light burning, and it was quiet, cleap, and cold. Deputies some reason. greeted me with hugs and kisses, saying, "Freedom! Free­ We reached New Arbat Prospect and turned toward the dom!" It echoed through all the floor

EIR December 17, 1993 International 55 the microphone of our amateur radio station. This was an Three minutes later, word pame that all deputies should extraordinary, blood-stained day. And I suspect that not all assemble in the Council of Na.ionalities hall, the only well­ of my impressions are precise and irreproachable. They are protected room with no windows. It was loud and rumbling scattered and fragmentary, so please forgive me. outside, and nobody could saylexactly what was going on. I I hardly slept at all, the night of the 3rd. First, we were went to see Rutskoy, but found! out he was at Khasbulatov's. working on proposals from the Army Reform group, about The chambers of the chairman of the Supreme Soviet were worl< among servicemen. I took them to A. Rutskoy, whom I heavily guarded. The entranc�s were blocked with safes, found on the fifth floor, surrounded by his staff. The Acting overturned armchairs, desks, aJidchairs . President[of Russia, according to the Constitution abolished by I'll say right here, that A. Rutskoy and R. Khasbulatov Yeltsin--ed.] was in a g90dmood, and receivedme cordially. I acted normally, with a full aense of their responsibility, read him the document, which he liked. He sent me to his chief aware that they would set the moral tone for everybody pres­ of staff, Valeri Krasnov, to preparean instruction. We worl

56 International EIR December 17, 1993 tanks? How was this felt by the people inside? asking for representatives of the eI1/lbassies of France and Urazhtsev: The tank shelling started at 11 a.m. or 12 noon. Turkey to be present as guarantors of the security of people, Paratroopers from the 106th Division fired on the White among whom there were women andichildren, as they exited House from machine guns. They arrived at 11 a.m. By an the White House. irony of fate, it was in the 51st Guard Regiment of that The forces that stormed the White: House committed real division, that I began my service as an officer. Now my atrocities. They killed the wounded, as well as people who regiment-mates were firingon me. were trying to carry the wounded away. Alpha could not Rutskoy was constantly reporting to me the number of guarantee our security, because they were not acting in coor­ dead. He was getting reports from couriers from the first, dination with the storm forces. The st(>rmersthe mselves were second, and third floors, which were already seized by the shooting each other, and blaming u�. The French camera­ storm forces. They had seized the first floor by 9 a.m. The man, by the way, was killed by OM(j)N troops. upper stories were burning. Among the defenders of the It was obvious that there was no point in remaining in the White House, not a single deputy fireda shot, although they White House. Khasbulatov and Rutskoy agreed to leave the had weapons. At 3 p.m., I said goodbye to my bodyguard broken and burned buildjng. We prqpared to hand over our and let him go, so that he could tell what he had seen. I didn't weapons. There were a lot of weapons. know if ! would perish. I came out through the bright, but cold and unpleasant Between 12:30 and 1 p.m., there was a lull in the firing, front entrance. The glass was all brqken. The scars of auto­ and we received a proposal to surrender. At 3 p.m., Baranni­ matic weapons and artillery fire lWere everywhere. No kov showed up, tall and broad-shouldered, and with genuine corpses were in sight, only puddles of blood on the floor. It concernon his face. He came into the officewhere Rutskoy's was about 5 p. m. There were rows of soldiers in front of the brother and I were broadcasting. We had resolved to stay to first entrance, and about 400-500 ptople in front of them. the end. These were staffers and defenders o�the Parliament. There were two officers from the Alpha group [Ministry From over by the Mayoralty, disqrganizedheavy artillery of Security special unit] and the directorate of Yeltsin's firewas audible. We went down the s.eps to the embankment, guard, with Barannikov. They said they were empowered to where the buses were supposed to be waiting. They immedi­ negotiate with Khasbulatov and Rutskoy. Barannikov invited ately put Khasbulatov, Rutskoy, Ba(annikov, Achalov, and our leaders into the officewhere Rutskoy' s brother and I were Dunayev on the firstbus and took them away. sitting. And so the talks began, under the echo of gunfire. There was more firingfrom the Mayoralty building. Bul­ One lieutenant colonel said he wanted to help us, and that lets whistled over our heads. I look¢d back at the House of Alpha had refused to use force and shed blood, although Soviets-a terrible sight. The upper part of the building was the order was given to raze the White House and annihilate entirely black. Tongues of flame were shooting from the everybody. It was clear that this was coming from Yeltsin upper stories. and his camarilla. The lieutenant colonel proposed that we It became clear that the buses were not coming, so we hand over our weapons and exit, under Alpha's guaranteed were let go. I went to a building on the right, where my aunt protection, through entrance No. 1, where buses would wait lives. Right away I saw blood on tqe floor and a mound of to take us home. I didn't believe a word about "taking us corpses. And some submachine-gun,ers and boxes of booty . home," of course. Alpha guaranteed a special pathway, They aimed their guns at me. I ran put onto the street, and where we wouldn't be touched by the military. He warned then got into the courtyard through t�e entrance that accesses several times against exiting through entrances No. 8, 14, or it. I met a group of the people withl whom I had exited the 20, since there was a large number of riled up and drunken White House. All along the walls oflhat entrance therewere armed people there. bloodied bodies. I Khasbulatov, Rutskoy, and Barannikov went into con­ At the end of the building, we foUnd a lighted entryway, sultation. Khasbulatov was collected and outwardly calm. where we could hide from these thug�. There were about 200 Rutskoy was stroking his mustache. There was concern, that of us. The shooting was still going on. We collapsed onto the the lieutenant colonel's promises would be broken. We need­ stairs. It was clear we couldn't stay Ithere, because we were ed representatives from the foreign embassies. Rutskoy essentially corralled. asked me to call my father by radio telephone, and my father, The only way out was along th'1 embankment. In every Georgi Urazhtsev, went to the French Embassy. The ambas­ other direction, there was shooting �nd searches under way. sador did not receive him. And so we went. An hour and a half after we leftthe house on the embankment, I was at the Muse on Mosfilm Street, EIR: It was reportedin the West thatKhasbulatov and Rutskoy where my mother-in-law lives. No�ody was home. Then I supposedly asked the Turkish Embassy for political asylum. started off to my wife's. Just then, �everal shots at my back Urazhtsev: We did try to appeal to the Turkish Embassy as sounded from a pistol with a silencer. The shots came from well as the French, but not for political asylum. We were a car standing next to the entranc¢. I plunged into some

EIR December 17, 1993 International 57 I am amazed that the world communityplacidly watches this comedy called the "elections." ...At the Lenin Humanitarian MilitaryAcade my, everyonehas already voted. The ballot boxes that will be in the precincts Will be replaced by other ones, pre-stuffe d with the right ballots.

bushes and jumped into some kind of hole that was there, person of Russia's rulers, are deranged people. Everything where I nearly broke my legs. I lucked out, because some is decided under the collectiveipseudonym "Yeltsin." We strangers gave me refuge, where I could hide for a long time. can only guess at who has his bands on the controls of the Russian state. The influenceof .he military is growing. The EIR: How would you characterize Yeltsin's armed action Army demands payment for its services. The Ministry of against the Parliament? Security demands the same. i Urazhtsev: It is very important that the storming forces fired I am amazed that the world community placidly watches three types of cartridges, including bullets with a displaced this comedy called the "election$." Any observer who comes center of gravity, long ago banned under international law. to Russia today, should clearly �nderstand that he is a con­ They also used plastic bullets, which cannot be found by X­ scious participant in deception. We have thousands and thou­ rays. And there were bullets with a special chemical filling, sands of electoral precincts in �ussia. You have to know which rots the body so that the person dies. We are investigat­ the special tricks of our systeml For instance, at the Lenin ing all this with what forces we have, but it is very difficult. Humanitarian Military Academ)-', everyone has already vot­ Therefore it is essential, that independent internationalorga­ ed. The ballot boxes that will ibe in the precincts will be nizations help in the investigation. replaced by other ones, pre-st4ffed with the right ballots . This cannot be monitored! EIR: What do you think of elections under these circum­ What has Yeltsin gained? llhe Russian citizen today is stances? immersed in his own problems, �nd the main problemhe has Urazhtsev: Unquestionably, the results of the elections will is how to survive. What's the pqint of elections? be falsified. A. Rutskoy told me that during the referendum I of April 25, 1993, some 7 million fake ballots for Yeltsin EIR: How do you see the role

58 International EIR December 17, 1993 He works only two or three hours a day. You can't run realizing that the people had ceased to support him, resorted a huge country, where every region has its own situation, to force. As a result, he has gotten an ¢mbittered public, hard like that. The staff Yeltsin has today is incompetent and to manage, hard to control. · unprofessional. And now, potential dangers may await Yeltsin from all The only thing left for Yeltsin is repression. As far as I sides. There are searches going on in Moscow against people know, the plan of bloodletting and terror is for many years, from the Caucasus, and the police are shooting to hit. This for the long term. The latest phase of this plan's implementa­ didn't happen even under the czar. But we will findout the tion is to give the regime a democratic face. This is why the truth, nevertheless. We need an ind�pendent investigation. so-called elections were needed, which are also largely for The Shield Union, which I headed, conducted such investiga­ the purpose of deceiving the world community. Twenty-five tions after the events in Tbilisi, Bak\l, and Vilnius [violent percent of those who vote, never mind the citizens of Russia repressions by Soviet authorities in 1989-91-ed.J. Not one as a whole, will not yield legitimate laws, legitimate repre­ of our findings was ever disproven. But today I am under­ sentation, nor a legitimate Constitution. And this Constitu­ ground, and Shield has been banned by Yeltsin. tion, moreover, establishes the legal basis for totalitarianism. The system of centralized management is obsolete. The EIR: What might continued support for Yeltsin mean for economic interests of the regions prompt them to distance the West? themselves from the center more and more. Moscow could Urazhtsev: A regime will conduct tbe same sort of interna­ ultimately be isolated. It will be without electricity, funds, tional policy, as it does inside the cO\lntry. A regime at war and food. It will tum into an appanage principality. For Mos­ against its own people, sooner or later will tum its predatory cow is not all Russia. And all Russia is impoverished today. gaze at neighboring territory. I don't believe it will not desire There are forces who rely on violence, who think to to reanimate the U.S.S.R., perhaps b� force. improve their life by killing as many of their fellow citizens Russia today is a hellish explosive device for the world. as they can. It won't work. Our Army is poor today. It is not It is a source of hatred of humanity, nationalism, and hege­ separate from the people and will not fightagainst the people. monism. It strives to regain superpower status at any price. These people realize that they are being dragged into a bad It has revanchist plans for creating a powerful superpower, business. There is no money to pay the Army decently. And which would be a counterweight. not only money is lacking. One needs to have a perspective, NATO in its majority does not want to admit the countries a program, an honest evaluation of what happened. of the former East European bloc because Russia doesn't want this. It would mean that the East-West confrontation EIR: What tasks did A. Rutskoy give the forces defending practically approaches the borders of Russia. I am not sure the White House? that this showdown between our military men, who are most­ Urazhtsev: I can say with certainty, that not a single deputy ly straight-arrow, non-dialectical p�ople, will not lead to fireda single shot. There was a huge number of provocateurs bloody clashes. They will also be seduced in this direction in the White House. Extreme conditions were created and by the deterioration of the economic situation. The economy maintained there for two weeks. Before the shooting started, will never come to life under these conditions, because you people had been in isolation for two weeks. They were de­ can't filla bottomless barrel. faming us. The Yeltsin regime started beating people in the streets, and spilled the firstblood . Yeltsin exploded the civic EIR: What ways out of this situatioQ do you see? peace. Whole units and divisions of the Army refused to obey Urazhtsev: Any regime that rests on lies and violence is his orders. On the night of Oct. 3, Moscow was without doomed. Yeltsin's popUlarity rating �s falsified. If his popu­ any law enforcement. This shows yet again that there were larity is so high, why doesn't he want new presidential elec- sensible people there, too, who did not want to spill the blood tions? I of their fellow citizens. They refused to inflict terror and to In Russia today, much depends on findinga person who act as gendarmes. These people are paying for this today, could unite the majority of the citizens. At least 51 % of the being firedand deprived of their social guarantees. citizens of Russia would have to support this person, so that he could restructure our political' life on new principles. EIR: How do you estimate the number of casualties? These principles should not be invented by anybody. The Urazhtsev: It is politically very important to determine how world community has already developed the criteria. Without many people actually perished. The true casualty figurecould self-cleansing, self-criticism, reeval4ation of what they have fundamentally change people's attitude to what Yeltsin did, done, and repentance on the part of the regime, nothing will including among his supporters. On Oct. 4, I learned the change for the better. If Khasbulatov .and Rutskoy are put on figure of 4,000 killed and wounded. trial, then Yeltsin, too, must be tried. For it would be absurd Sooner or later we will find out the truth, just as it was to try the people who defended the Constitution and the law, found out in October 1917. Hundreds of thousands of people and free from responsibility those Who crossed beyond the knew what happened. And what happened, was that Yeltsin, law and became common criminals. I

EIR December 17, 1993 International 59 Reportfr om Rio by Lorenzo Carrasco

The barracks are boiling enormous Ivacuum of power, the The fa st-spreading corruption scandal in Congress is Armed For

60 International EIR December 17, 1993 ReportFrom Bonn by Rainer Apel

German democracy in a profound crisis potash miners of Bischofferode The fo rmer communists are reaping the benefitsof the economic against the closureof their mine. collapse fo rced on Germany by the free marketeers. PDS mayoral candidate Rolf Kutzmutz, whose party had 38.4% of the vote on Dec. :5, could never have received the 45% for himself, had he not been backed by non-PDS voters. The CDU of Pot�dam lost 7% of its hancellor Helmut Kohl's Chris­ But even if Kutzmutz were defeat­ 1990 vote, and lo�t 11.3% on average tianC Democrats (CDU) suffered a hu­ ed by an all-party alliance of SPD, on the state level.: miliating defeat in the Dec. 5, munici­ CDU, and others, he would still be the The PDS gains and its strength in pal elections in the eastern state of decisive factor of municipal policies the bigger cities have implications for Brandenburg, the first testof electoral in Potsdam, because the PDS, being a the national party; political landscape. strength in the East since December centralist party, would represent the Actions like the dne in Bischofferode 1990. On the state average, the CDU most coherent and strongest factor of have boosted the image of the former finishedthird behind the PDS, the par- power, and would have close to 50% communists to · an extent that latest - ty of the "converted" communists, of the vote in any case. A newly elect­ opinion polls give;them a voter prefer­ which gained second party status be­ ed, non-PDS mayor might not be able ence of 6% on lIhe national level­ hind the Social Democrats (SPD). to stay in office for long anyway; in­ enough to meet . the mandatory 5% The state average, however, does cumbent HorSt Gramlich is the third level for a seat in the national parlia­ not tell much about real party strength mayor in three years, since the 1990 ment. By German election laws, in individual municipalities. In the elections. however, a party: only needs ditectly four big cities of Brandenburg, the The secret to the rise of the PDS elected candidates in three districts, PDS finished first in Potsdam and in all five east German states, is the irrespective of tije national percent­ Frankfurt/Oder, and second in Cott­ sentiment building among voters age, to be seate4 in the parliament. bus and Brandenburg/Havel. But in against the "Bonn parties," and Building on its tains in the Dec. 5 Cottbus, the vote total is only 0.3% against the western system of free municipal vote, the PDS is now in between the SPD, which had 28.4%, market economic policies that has a position to copsider a victory in and the PDS, which had 28.1%; and eliminat.ed 75% of the industrial jobs Potsdam, FrankfUrt/Oder, and Cott­ in Potsdam, the PDS gained more than which the east German state still had bus as realistic possibilities. 11%, and its candidate for mayor of in early 1990, created real unemploy­ This does not imply that all of Ger­ that city, Rolf Kutzmutz, crushed the ment rates of 40-50% in nearly all many will tum cCilmmunist, or "post­ incumbent mayor, Horst Gramlich of cities of the East, and led to a collapse communist," as have Lithuania and the SPD, with 45% against 29%. of domestic security and the spread Poland; but the erosion of the constitu­ It cannot be ruled out that in the of drugs and prostitution. The PDS, encies of the established Bonn parties second round on Dec. 19, Kutzmutz adopting a strategy of admitting that (CDU, SPD, and FDP) which typify may be elected as the new mayor of "we were wrong in the past, but the the postwar political system and the Potsdam-the state capital of Bran­ others are much more wrong at pres­ type of "social" market economy that denburg and a symbol associated with ent," has fared quite well. has kept west Ge;rman society stable the history of Prussia. Corruption scandals such as the and calculable through 44 years, is While the former SED commu­ one that forced the entire CDU-Ied reason for major �oncern. nists always posed as the "red Prus­ cabinet of the state of Saxe-Anhalt to The established parties are also sians," everybody knew that they had resign on Nov. 28, have contributed losing voters at an alarming pace. come to power not through normal to the rise ofthe PDS as well. Another Some 40% of the voters are so fed and free elections, but by the force factor of its broadening resonance also up that they don't vote anymore. This of the Soviets, the postwar occupying among non-PDS supporters has been process is hitting all areas of Germa­ power in Germany's East. If Kutz­ spectacular publicity stunts such as ny: In the Sept. 1:ZMunich municipal mutz were elected mayor on Dec. 19, the logistical and legal assistance elections, voter participation was at it would be in a free, democratic vote, which the PDS of Thuringia lent to 62%; in BrandeQburg on Dec. 5, it and the PDS as a whole would benefit. the hunger strike this past summer by was 59.2%.

EIR December 17, 1993 International 61 International Intelligence

I Enrico Mattei's efforts to orient Italy away central Eu�opean states which have ex­ German Jews see ADL ' s from NATO and toward the Third World, pressed an iltterestin joining NATO, Lands­ reputation as ruined Ciampi said that Italy would devote a sig­ bergis points out, but implicitly threatens nificantpart of its energy as chairman of the the rest of NATO as well. CSCE over the next year to ensuring that the The Jiidische Allgemeine Wochenzeitung, "There is no evidence more compelling organization responded to what he called published in Bonn, Germany the first week than this to �how that Russia itself, as in the of December, wrote that the U.S. Anti-Def­ "the Mediterranean dimension." past, constitutes a problem for the world." Ciampi said that with the CSCE's cur­ amation League's (ADL) reputation is irrep­ arably damaged, despite the deal with the rent preoccupation with Central Europe and ! the former Soviet Union, it risked further San Francisco District Attorney's Office Film slfi/ts blame fo r marginalization of those countries on the which let it off the hook without indictments other side of the Mediterranean which aspire the Lodkerbie bombing last month. The article makes clear that the to a partnership with their neighbors to the district attorney made the deal only to avoid north. Iran, not Li ya, is to blame for the bombing a lengthy and costly trial. � "Interdependence between Europe and of Pan AIJ¥!rican Flight 103 in December "The lawyers of the ADL, who control � the Mediterranean appears to be the only 1988, WhiC 'lled 270 people, according to a $30 million a year budget," made clear alternative to the risk of conflictinherent in Scottish L ur parliamentarian Tam Dal­ they would fightthe prosecution to the bitter the spread of intolerant and radical visions yell, citing forthcoming film expose on the end. The paper mentions the ongoing civil and ...profound economic inequalities," terrorist att ck. "The filmwill show Teheran suits against the ADL by civil rights organi­ Ciampi said. Without such cooperation, commissio ed the attack and arranged for it zations and others whom it spied upon. In there is a risk of "uncontrolled migration to be carri out by Syrians," said Dalyell, commenting on the ADL's claim to defend between the two shores," he added. a longtime! campaigner on the Lockerbie democracy and civil rights against extrem­ bombing, who has charged a coverup by the ists, the paper comments, "But that is whis­ authorities pn both sides of the Atlantic. tling in a dark forest. The leadership and The 9Otminute, $938,200 film is being members of the ADL know, and admit it Landsbergis hits new financed b)\ Metropole Hotels, part of Tiny privately: The once immaculate reputation Rowland's I British conglomerate Lonrho of the organization is darnaged-despitethe Russian militarypo licy PLC, and Ime-third owned by the invest­ closure of the investigation and independent ment arm

62 International EIR December 17, 1993 • IT ALlAN JUstice Minister Gio­ vanni Conso on Pec . 1 recommended disciplinary acti!on against 19 judges who were foun� to be members of secret freemas(J)nic lodges. Conso ' also recommen ed that three other but anonymous Christian Democrat, in ref­ was travelling and let the terrorists in. After judges be tran erred to new posi­ erence to the period before the fall of Chan­ the assassination was committed, the mur­ t tions. The deci ion ended a Justice cellor Helmut Schmidt. "At that time, the derers were released. Ministry investigation of alleged ties only open question was how the split would The former commander of Unprofor in to freemasonryf f 75 judges. be handled, and especially, who would get Bosnia and Hercegovina, Lewis Macken­ the blame for it. " zie, a retired Canadian general , has diplo­ • ISRAELI I1Time Minister Yit­ Three cases of moves by the Free Demo­ matic immunity, making it impossible for zhak Rabin addressed the European cratic Party that have undermined the coali­ Bosnia to prosecute him. U.N. Secretary Parliament in BIJUsselson Dec. 1, and tion in the recent weeks were cited by the General Boutros Boutros-Ghali has refused called on Europ4:to supportthe Mid­ article: I) the refusal to support the Christian to suspend Mackenzie's immunity. east peace agre�ment by giving Pal­ Democrats' phone-tapping bill against orga­ estinians financ.al support and Israe­ nized crime, 2) the support of a separate lis a better tra!le deal. "This is a FOP candidate for President in 1994, Hilde­ Dutch euthanasia policy justified deman41," he told reporters gard Hamm-Briicher, and the propaganda surpasses Nazi law afterwards. "W¢ want quick negotia­ attacks on the Christian Democratic Union tions so that Olt people can realize candidate Steffen Heitmann (who has since The government of the Netherlands has that our effortslin the field of peace withdrawn), and 3) the decision of the FOP passed the most advanced euthanasia law in are understood pot just by beautiful in the state of Saxe-Anhalt to call for early the world, one which surpasses what even words but by d,ds." elections rather than vote for a continuation the Third Reich wrote into public law. On of the state coalition with the CDU. Nov. 30, the Senate, the upper house of the • KING HUSSEIN ofJordan, in a Kurt Biedenkopf, the Christian Demo­ Dutch Parliament, narrowly passed a bill speech on Dec .•, urged Arab leaders cratic governor of the state of Saxony, pre­ which allows physicians to murder patients to mend their rijt'ts and draw lessons dicted in an interview with the weekly Der for any reason, whether the person asks to from ChangeS 'WeePing the world, Woche published Dec. 2 that the CDU will die or not, and be granted virtual immunity including the c llapse of the Soviet lose in 1994, and there will be a "Grand � from prosecution as long as they follow the Union. "Our [ ab] nation has got to Coalition" of all major parties in Bonn, government's new reporting rules. appreciate thes� changes and prag­ dominated by the Social Democrats. For decades, the active killing of patients matically deal With them in accor­ hasbeen illegal inthe Netherlands, but tolerated dance with its qwn capabilities, po­ in cases in which "tenninally ill" patients in tential, aims a d the aspirations of Bosnia demands U.N. great pain allegedly ask repeatedly for it. In its peopleand tj eir yearningfor total reality, the law is openly ignored. freedom from b ,ckwardness, oppres­ probe of assassination Opponents of the new law are concerned sion and Plunde ng," he said. that it will broaden the already rampant kill­ r The governmentof Bosnia and Hercegovina ing, especially given the economic impetus • JAPAN Ar-r» CHINA will re­ has sent a letter to Thorvald Stoltenberg, to cut back medical services. The Nether­ sume security tjUks early next year, the head of the Unprofor "peacekeeping" lands today has one-third of its work force which have n suspended since 11 on unemployment, welfare, or disability. 1989, Japane�Defense Agency of­ forces, reminding him that it has been � I months since the assassination of Bosnian The new law stipulates that any doctor ficials said. lite Japanese Foreign Deputy Prime Minister Hakija Turajlic, and who administers voluntary or involuntary Ministry is exptlcted to send officials the promised investigation of the killing has euthanasia must inform the coroner after to China in J anujuyto attend a bilater­ not materialized. According to TWRA press each killing and report that he has paid strict al security conf�rence. service, the letter notes that the United Na­ attention to all legal requirements. But, the i tions has not revealed the findings of the coroner is not allowed to do an autopsy to • PHILIPPIr-fE lawmakers re­ investigation, even though it had promised confirm the cause of death. The public pros­ stored the deatl' penalty on Dec. 1. to do so. ecutor is not allowed to investigate beyond President Fidel Ramos welcomed the Turajlic was killed while under protec­ a review of the doctor's own report. move and said I it "would boost his tion of the former commander of Unprofor, The Netherlands policy is being pro­ campaign to br4ak up the private ar­ P. Morillon, who did not try to protect him moted as a model for other countries, in­ mies of polit�cal warlords," ac­ from the bullets of Serb terrorists fired at cluding the United States. The governments cording to Reut�rs. The death penalty close range . Also, some officers , including of Italy, Austria, and Germany, along with was abolished by former President French officers , opened the door of the ar­ every medical association in Europe, and Corazon Aquin

EIR December 17, 1993 International 63 �ITillNatio nal

Pollard clemency figbt revivesbr oader spy probe I

by Jeffrey Steinberg

i The public plea to obtain presidential clemency for convicted release that saw hundreds of lobbyists descend on Capitol spy Jonathan Jay Pollard has reopened a nasty can of worms Hill last month. I that could implicate high-ranking former national security President Clinton referred t�e clemency request to Attor­ officials, and at least one well-known leader of the Anti­ ney General Janet Reno, and a,nounced that he would make Defamation League of B'nai B'rith (ADL), in espionage. a decision on the Pollard case �s soon as he receives formal Pollard was part of an espionage effort which was de­ recommendations from the Department of Justice (DOJ). scribed by former federal prosecutor Joseph DiGenova, inter­ With those DOJ recommendations expected any day viewed in the New York Times. as "the largest physical com­ now, a ferocious public debatd has broken out over the pros promise of United States classified information in the 20th and cons of the clemency requek New evidence has surfaced century." DiGenova, whose views reflect those of a a broad on the seriousness of the damage done by the ex-Naval In­ range of senior Pentagon and U. S. intelligence officials, told vestigative Service analyst's s{tring. The Washington Times, the Times that if Pollard is granted presidential clemency, he citing DOJ officialswho oppo�e the early release of Pollard, would fightto have the Justice Department's damage assess­ reported that there is an ongoing criminal probe of possible ment report on the Pollard spy ring declassified. This lengthy co-conspirators in the mid-198�s espionage. "We're strongly secret report, submitted to Pollard's sentencing judge, details opposed to the release of Jonatfuan Pollard. It would be disas­ the national security consequences of the Pollard spying. The trous for pending prosecution�. ," an unnamed DOJ official report was buttressed by another secret memo, an affidavit told the Times. by then-Secretary of Defense Caspar Weinberger, providing In 1986, Washington Pos. editor Bob Woodward pub­ an assessment of the damage. lished a front-page story revealing that Pollard had not acted Although federal prosecutors had promised Pollard a re­ alone, but was abetted by a i high-ranking official in the duced sentence in return for a guilty plea that would avert a Reagan administration's nati nal security apparatus who complicated and security-compromising trial, Judge Aubrey was providing the Israeli govetnment� with code numbers on Robinson gave Pollard a life sentence, which meant that he specific secret documents. Wqodward dubbed the unknown would not become eligible for parole for 10 years. second spy "Mr. X." Accord�ln g to Woodward's story, the During his state visit to Washington, D.C. in November, Israeli spy unit, Lekem, hea4ed by senior Mossad officer Israeli Prime Minister Yitzhak Rabin formally asked Presi­ Rafi Eytan, passed code num�ers of specifictop secret files dent Bill Clinton to grant clemency to Pollard and release to Pollard, who would retrieve;the documents and photocopy him from prison on the basis of the eight years he already them at a safe house provided by a prominent attorney, Har­ served. At the beginning of December, Israel's Attorney old Katz, who had dual U.S.I and Israeli citizenship. Katz General David Lebai met with his U.S. counterpart, Janet was later implicated in an insi4er trading scandal that rocked Reno, and also lobbied for Pollard's release. Rabbi Avi the Israeli Air Force. He w�s linked to the activities of Weiss of New York City and Rep. Charles Schumer (D­ Drexel Burnham's junk bond : swindler Michael Milken. N.Y.) have led a high-profile campaign for Pollard's early Time magazine reported �m Dec. 13 that at least one

64 National EIR December 17, 1993 crucial U.S. national security document that Pollard provid­ Pattern of corruption ed to Israel made its way into Soviet KGB hands. The Justice Department and Pentagon �fficials have been ex­ document, which Time described as "a huge National Securi­ pressing outrage at the prospect of an early Pollard release ty Agency compendium of frequencies used by foreign mili­ from prison. The Washington Post epitorialized on Dec. 7 tary and intelligence services," cost the United States billions that Pollard should be forced to serv� out at least the mini­ of dollars to assemble. But once Pollard passed it on, the mum sentence, two more years, and Chen make his pitch for data became worse than useless; foreign agencies, aware parole. that their codes had been compromised, would likely have The controversy at the Justice D�partment involves far used the frequencies to transmit disinformation. Moreover, more than just a matter of the fairnesJ of Pollard's sentence. "officials fear the data in the book were so specific that its The department is under the gun for a series of cases involv­ discovery may have cost informants their lives." ing corruption, unbridled violence a ainst private citizens, and political influence peddling on tlilel part of such private LaRouche and EIR are right again groups as the ADL. EIR was the firstpublication to reveal the Soviet angle on Lyndon LaRouche, whose own case was heavily contam­ the Pollard spy ring. In two special reports, published in 1986 inated by ADL pressure on Justice D�partrnentprosecutors , and 1987, EIR documented the collusion between the Lekem commented on the complexities of tJIe Pollard case in his unit under Eytan, a longtime ally of former Israeli Defense Dec. 8 weekly "EIR's Talks" interview with Mel Klenetsky: Minister Ariel Sharon, and the Soviet KGB and GRU. "This is a complex business. . . . Y qu have to compare the In 1986, EIR also published a dossier on a dozen top Pollard case with something on the qrher side, which is the officialsof the Department of Defense who were then under Demjanjuk case [see p. 66] and th¢ case of me and my investigation by the Pentagon's General Counsel as suspect­ friends. Now in the Demjanjuk case!, it is perfectly docu­ ed Pollard collaborators. Rather than hunting for an elusive mented that a systemic fraud upon tbe court existed. And "Mr. X," EIR exposed the existence of an entire "X Commit­ anybody who looks at the record kno'1"s that in my case, I'm tee" in and out of governmentthat was behind a vast Israeli a victim of a massive fraud upon the �ourt. Now, the fear in spy apparatus engaged in passing vital American national the Justice Department is that if it �leans up some more security secrets to Moscow in return forexit visas for thou­ garbage, like the [Randall] Weaver qase or the cover-up in sands of Soviet Jews to enable them to move to Israel. the Banca Nazionale del Lavoro (BN�) Atlanta case, sooner EIR also was the first news agency to publicize the role or later, the whole Justice apparatu� as we knew it under of top officialsofthe ADL in the Pollard spy ring. Ruth Sella, Bush, will come under scrutiny and th� whole thing will blow wife of Israeli Air Force Col. (later promoted to general) up. Therefore, they say, we'll turn L�ouche free, we'll give Aviem Sella, Pollard's recruiter and handler, was employed him parole, but we're not going to e�onerate him, because by the ADL as an attorney working directly under then­ that will uncork all the worms. I national ADL chairman Kenneth Bialkin. On the day of Pol­ "Then they confront the Pollard :case. Some people in lard's arrest, Bialkin flewto Israel to confer with government Israel, who are not bad people, are !laying through Rabin: officials on a damage control strategy. free the guy. He worked for us. And the Justice Department There are also ties between Pollard and ADL Washing­ reacts, saying: if we free Pollard, sODllebody is going to say, ton, D.C. fact-findingdirector Mira Lansky Boland. Lansky 'What about LaRouche, who certaidlY did nothing of that Boland was Pollard's graduate school classmate at the Fletch­ sort? You are going to let the ADL get its boy out, and yet er School of Diplomacy at Tufts University in a program the person victimized by the ADL �emains under stigma? directed by Dr. Uri Ra'anan. In the 1960s, while working for No, it doesn't function.' I the Mossad, Ra'anan was assigned as the liaison between the "Then, you mention on top of it that there are certain spy agency and the ADL. Boland retained her ties to Pollard aspects of the Pollard case which have not yet hit the public, after the two graduates went to Washington, D.C., where he which really stink. Some of the garbage which Pollard was went to work for the Navy and she joined the CIA and then stealing ended up promptly in Moscor-v, through people like the Defense Department, before going to work full-time for Shabtai Kalmanowitch. And this was yery sensitive informa­ the ADL in 1982. tion which resulted in the deaths of some American agents. On May 11, 1993, Village Voice reporter Robert Fried­ "Now, the further thing is that Pollard was not a lone man revealed in a lengthy cover story about ADL espionage agent of the Israeli intelligence servife. Pollard was a con­ that "Pollard wrote to friends that a prominent ADL leader tractor, under a Navy contract, who !had privileged access. was deeply involved in the ADL spy operation." Although But to access the documents, he ha� to first get the codes. the Pollard letters, written to members of the Gush Emunim Who gave him the codes? We don't �now, but it had to be movement in the Israeli Occupied Territories, named the someone in the Joint Chiefs of Staff�r the Defense Depart­ names of several prominent ADL officials involved in his ment apparatus. The dirty finger of slllspicion points to Rich- " spying activities, the names have never been made public. ard Perle and others."

EIR December 17, 1993 National 65 I Justice Department, FBI mi$conduct coming under increased att�ck' ! by Edward Spannaus

· Is a long-overdue housecleaning in the U.S. Department of of their ability to control misc nduct by federal prosecutors. Justice (DOJ) and the Federal Bureau of Investigation (FBI) Some Capitol Hill sources m intain that federal judges are about to take place? It may be too early to say, but misconduct issuing increasingly harsh rul� ngs in cases of prosecutorial by federal prosecutors and law enforcement officialsis com­ misconduct because of their frustration over recent years' ing under increased scrutiny, and there are signs that some Supreme Court rulings, whic� severely restrict their ability people in Washington-as well as a group of federal judges to fashion remedies to redres� wrongdoing by prosecutors ' around the country-want to clean up the mess left over from and law enforcement officials the Reagan-Bush years. Last January, the Washin ton Post ran a prominent six­ The leading indicators of a movement in this direction part series of articles on pro� ,ecutorial misconduct, which are the following: was widely regarded as setting the agenda for reforming the • Federal judges continue to issue rulings castigating the DOJ after 12 years of Repubjican rule which had built the I DOJ for prosecutorial misconduct and abuse of power. The federal law-enforcement systept into a powerful police-state latest is the dismissal of the felony indictment against Sen. machinery with few if any c straints. The series opened by David Durenberger (R-Minn.) on grounds that prosecutors noting that the Justice Dep ment budget had gone from violated the Constitution and misled the court. This followed $2.3 billion in 1981, to $9�.3 billion in 1993, and that the I by only a few weeks the scathing attack on DOJ conduct number of Justice Departmentllawyers had doubled over that issued in the case of John Demjanjuk, wrongly accused of 12-year period. I being Nazi concentration camp butcher Ivan "the Terrible" At the same time, the P�st noted, Justice Department Marchenko, where a federal appeals court ruled that Justice policies and Supreme Court tidings gave prosecutors much Department lawyers suppressed evidence, committed "fraud more power, and made it morje difficultto hold prosecutors on the court," and were overly eager to please outside pres­ accountable for improper or iVegal tactics. "These tactics," sure groups such as the Anti-Defamation League (ADL) of said the Post, "include manip�lation of grand juries, failure B'nai B'rith. to disclose evidence favorable · to a suspect or defendant, • The FBI and the U.S. Marshals Service, both compo­ government intrusion into th� relationship between defense nents of the Justice Department, are under investigation for attorneys and clients, intimidjation of witnesses, and blitz­ their roles in an August 1992 shootout in a remote area of krieg indictments or threats o� indictments designed to force Idaho. The investigation reaches to the top level of both capitulation without the need fora trial." agencies, and could result in high-level shakeups and disci­ Steps have recently been .aken to implement two of the plinary actions. reforms advocated in the Wa#Zington Post series. The DOJ recently changed its policy of seeking multi-district indict­ Judges revolt ments of targets-a tactic use

66 National EIR December 17, 1993 Durenberger had been indicted last April on two felony of the Weaver case was firstreported in the Nov. 25 New charges, stemming from a 1989 probe by the Senate Select York Times, and then subsequently by other services. The Committee on Ethics which charged that he had falsifiedhis Times said that Justice Department investigators have told expense accounts. FBI officials and agents, and also ffideral prosecutors, that Judge Urbom found that Justice Department prosecutors "they could face civil or criminal charges, including obstruc­ had improperly presented sections of the Senate Select Com­ tion of justice and violations of civil rights law." mittee on Ethics report to the Durenberger grand jury in Those being investigated include topofficials of the FBI's violation of the "speech and debate" clause of the Constitu­ Hostage Rescue Team (HRT), as w¢ll as FBI Criminal In­ tion, which protects members of Congress from inquiry by vestigative Division head Larry Potts; The Times also report­ other branches of government. ed that investigators have, or soon will have questioned for­ Furthermore, Judge Urbom found that two attorneysfrom mer Marshals Service head Henry Hl).dson, former Attorney the DOl's Public Integrity Section had misled the court, General William Barr, former FBI pirector William Ses­ when they flatlydenied that passages from the Select Com­ sions, and FBI Deputy Director Floyd Clarke. Potts, Clarke, mittee on Ethics report had been presented to the grand jury. and HRT leader Richard Rogers were all key witnesses de­ The fact that the DOl's lawyers had used ethics committee fending the FBI at the House Judiciary Committee's hearings proceedings only surfaced after Judge Urbom ordered a full on Waco last April. in camera inspection of the grand jury proceedings, which The probe concerning the Weaver case centers on the unearthed the ethics committee documents. Only at that point actions of the FBI's Hostage Rescue Team and its command­ did Justice Department prosecutors concede the point. er, Richard Rogers-who reportedly bas refused to cooperate The Washington Post commented: "Urbom's criticism of with the investigation. After receiving a briefing from the the Justice Department's conduct is the latest in a series Marshals Service-a briefing which some FBI officials re­ of judicial findings that have threatened major, high-profile gard as "flawed"-Rogers and Potts made the decision to prosecutions and raised questions about the Department's change the Hostage Team's rules of engagement, giving FBI ability to police the conduct of its lawyers." agents the green light to kill any armed adult male in the area, This followed the Nov. 17 ruling by the U.S. Court of whether or not he posed any immeldiate threat. It was in Appeals for the Sixth Circuit in the John Demjanjuk case, carrying out this policy that an FBII sniper shot and killed which blasted the Justice Department's Office of Special Randy Weaver's wife. Earlier, Marshals had killed Weaver's Investigations (OSI) for withholding evidence and de­ 14-year-old son. frauding the court (see EIR , Dec. 3, 1993, p. 64). FBI agents say they were given a briefing by the U.S. Moreover, during the summer, three separate federal Marshals which portrayed Weaver �s a Rambo-type who judges in Chicago overturned guilty verdicts in cases of the wanted to kill as many federal agent!!as he could. But later, notorious EI Rukn street gang, findingthat a federal prosecu­ according to some FBI officials, they:came to regard Weaver tor had failed to disclose evidence that could have discredited as "a hapless malcontent" who had withdrawn from main­ his two star witnesses. Federal Judge Marvin E. Aspen said stream society rather than confront it. "Despite his belligerent that his ruling was "the most painful decision" he had ever talk," wrote the New York Times, "there is no evidence that rendered, and that it was a "tragedy" that convictions of some he initiated any illegal conduct even after his wife and son of Chicago's "most hardened and anti-social criminals" had had been killed." to be overturned. Aspen said that the prosecutor, in his zeal to obtain convictions, "was willing to abandon fundamental Top Hooverite is out notions of due process of law." Floyd Clarke, the number-two officialin the FBI, is al­ It is not only liberals who are calling for cleaning up ready on his way out of the Bureau, and will retire in January. the DOJ. Syndicated columnist Paul Craig Roberts wrote The New York Times reported that Cl;u-kewill become a "vice recently that the DOJ itself should be a prime candidate for president for corporate integrity" at a New York financial application ofthe newly revived independent prosecutor stat­ firm ledby corporate raider Ronald O. Perelman. ute. "Evidence is piling up that prosecutorial misconduct Clarke is regarded as the top-ranking officialof the "neo­ and abuse of power are routine at the Justice Department," Hooverite" triumvirate in the Bureau which includes, besides Roberts wrote. "Only after a thorough cleansing will the Clarke, Oliver "Buck" Revell and lohn Otto. Former FBI Justice Department again be worthy of its name." Director Sessions and his wife Alice,both accused Clarke of leading the "cabal" which sought, anp got, Sessions's ouster The Randy Weaver case earlier this year. Clarke is also said to have been close to Misconduct by FBI officials and U. S. Marshals is the Bush's attorney general, William Barr. Barr had told Bush focus of an ongoing DOJ investigation into the shootout be­ that Clarke should become FBI directorif Bush won the 1992 tween FBI agents and Randall Weaver which took place in elections. Earlier press coverage described Clarke as the Idaho in August 1992. The hitherto secret DOJ investigation FBI's "pipeline" to the Justice Department.

EIR December 17, 1993 National 67 for 20 more murders), obituary forms, and films of future victims' death requests, sought,a high bail for Kevorkian at his Dec. 1 arraignment in that death. Kevorkian exposes Oakland County Medical ijxaminer Dr. L.J. Dragovic ruled that all of the Kevorkian 4eaths that have come before show Satanist at work him were homicides; that is, sbmeone else, other than the victim, was actively involved inlcausing the death. Last year, Dr. Dragovic, among other doctors and psychiatrists, told by Linda Everett EIR he was concernedthat a "PlSychiatric disorder may be a motivating factor in these death$. It's a question of insanity. " For over 42 months, Jack Kevorkian, Michigan's homicidal Kevorkian, 65, reportedly has �ever had a relationship with maniac, has methodically carried out 20 known murders. a woman. His penchant to kill vulnerable women was so But, for the firsttime , Kevorkian's "controlled experiment," pronounced that police officers: at the crime scene were re­ in which citizens are the subjects to be brainwashed, is begin­ minded of Jack the Ripper and his female victims. One judge ning to crack. The "compassionate retired pathologist" ve­ told EIR that after observing K�vorkian in court, he sensed neer is slipping for Kevorkian, who was for years "unem­ that Kevorkian had another ag4nda, which "reminds me of ployable" and living on welfare . Since he began his something along a sexual or �dophilia line ....It 's the movement to "help people kill themselves"-a beginning same kind of thing, like a seriall rapist." which he compares to the birth of Christianity-his Michigan Attorney Constance E. Cunllbey, an investigator of New and Californiamedical licenses have been suspended, and he Age kookery, told a Michigan tiadiohost that Kevorkian is a has been exposed as a "student of Lucifer," a modem-day follower of Lucifer and Alice A. Bailey, who founded the Dr. Mengele who endorses Nazi experiments and performs Lucifer Trust in 1921. Cumbey �aid that excerptsof Bailey's bizarre experiments such as transfusing blood from corpses latest anthology, Death: The Great Adventure, were found into live SUbjects. filled with Kevorkian's annqtations. Bailey's writings, Kevorkian violated Michigan's law against assisted sui­ which are influential in the New Age movement, show viru­ cide five times since it passed in February. So far, he has lent hatred of Christianity-which explains Dr. Death's at­ been charged in three of the last four deaths he's caused since tacks against Judeo-Christian tenets. Bailey embraced Aryan August. In each case, Kevorkian was released based on his racism and believed that one hblped the "inferior" ranks of promise to stop killing. In each case, he killed again, once humanity by killing them, alloMng them to returnvia rein­ within hours of his arraignment. When bail was increased in carnation-inwhich Kevorkian also believes. November, Kevorkian refused to pay and was incarcerated. In his 40-year obsession with death, Kevorkian has stud­ He was released afterhis bail was paid by a rankled opponent ied every ghoulish detail about �nflicting death upon another who said he was tired of hearing hourly media reports about human being-and still has h�d time to paint with human how "this is the end for poor Jack," who staged a hunger blood and build "Mercitron" ni.achines to terminate the life strike in jail. of a client answering his ads fet death services. He has also Kevorkian told police of the latest murder on Nov. 23 by advocated "terminal human ex�erimentation," in which con­ announcing that "the firstmedicide has been accomplished." demned prisoners volunteer t� die by having their organs His victim was a Chicago physician, Dr. Ali Khalili, 61, harvested under anesthesia, or to undergo experiments from who had bone cancer. Khalili was found in the apartment which they would never recov�r. In his book, Prescription: Kevorkian rented to kill his 19th victim a month earlier. He MEDICIDE, Kevorkian said �xperiments on the brains of was gassed with carbon monoxide. We're told that Khalili living prisoners could "unravel �he mechanisms of a criminal was in "unspeakable pain." Yet, from the time he was first mind-a capitally criminal mirld" (emphasis in original). diagnosed, he rifused all chemotherapy prescribed by the Newsweek on Dec. 6 expos�d even more horrific propos­ Mayo Clinic; was medicated for "anxiousness"; and only als to carry out experiments on ¢omatose, mentally incompe­ received a very low dose of morphine via an intravenous tent, or uncommunicative patients, including infants, chil­ pump-which could have easily been adjusted for more ap­ dren, and all living intrauterine, aborted, or delivered propriate relief. Khalili also could have used a newly ap­ fetuses. That Kevorkian sees o\Jrmore vulnerable citizens as proved, non-sedating drug called Mestatron, which wipes so much lab material is hardly Isurprising. In a 1986 article, out bone cancer pain for six months. he wrote that Nazi experiments;on concentrations camp pris­ oners, such as dropping them into icy water to see how quick­ Sanity questioned ly they froze to death, were "n(/)tabsolutely negative. Those Oakland County investigators , after finding evidence of who can subordinate feelings lof outrage and revulsion to Kevorkian's role in an Oct. 22 "suicide," including receipts more objective scrutiny must admit that a tiny bit of practical for the purchase of 35 carbon monoxide canisters (enough value for mankind did result." I

68 National , EIR December 17, 1993 able to afford" a private school. Gov. Ann Richards, at­ Outcome-Based Education tempting to diffusethe school choice issue, has reversed her­ self and announced that she will consider an experimental voucher program. Texas teachers' unions, instead of fighting from a principled stand, have taken a lesser-of-two-evils posi­ Is George Bush tion, supporting the idea of "charter Schools," experimental W. schools in which existing, mandated curricula and contracts ? are suspended to allow New Age prqgrams to be tested on as bad as he looks children. Aware that a change is in the air, Houston's School Superintendent Petruzielo held a press conference in early by Brian Lantz November to announce that that district's next Bellaire-area middle school may be contracted out to a private company to George W. Bush, son of former President George Herbert operate. Walker Bush and managing partner of the Texas Rangers In Texas, the major vehicle for "choice in education" baseball team, is now a candidate for governor of Texas, propaganda is the Texas Public Policy Foundation. George portraying himself as an opponent of outcome-based educa­ W. Bush is an active member of the board. In 1990, the tion (OBE). A number of people active in opposing New Age institute produced and disseminated a little study titled, school reforms in Texas have known the Bush family since "Choice in Education: Opportunities For Texas." The Educa­ the 1960s, when their party of choice, the Republican Party, tion Task Force that produced this prJmotion for school pri­ was a very small club. They are now being reminded that vatization was chaired by John E. Cqubb, Senior Fellow at George W.'s father did win the state of Texas in the 1992 the Brookings Institution in Washington, D.C. Mr. Chubb is presidential election. "Maybe," they say, "George W. Bush also a "core-team member" of the Edison Project. is our best hope. Maybe George W. isn't as bad as he looks." The Edison Project is being promoted in Texas by George But George W. Bush is worse than he looks. In his educa­ W. Bush and the Texas Public Policy Foundation; it is bank­ tional proposals, he is fronting for the same dirty Wall Street rolled by the Dutch multinational Phillips Electronics and the crowd as his father did while occupying the White House. London-based Associated NewspaperHoldings. The spokes­ The "choice in education" reforms are being bankrolled by man for the Edison Project is Chris Whittle, creator of the the junk bond and "venture capital" crowd of Michael Mil­ commercial Channel One TV cable' network for schools. ken, Henry Kravis, and others. Corporate raiders are now Henry Kravis, President George Bush's crony and the lever­ eyeing the public education system of the United States. As aged buyout operator who put together the RJR Nabisco junk Milken told Forbes magazine (March 16, 1992): "I think bond buyout, was sought out by Whittle for financingof the education in this country is going to be a multihundred-bil­ Edison Project, according to U.S. News and World Report lion-dollar industry. That's where I'm going to put my time of Aug. 16, 1993. The chairman and CEO of RJR Nabisco and money." sits on the board of NASDC. Satanic outcome-based education, being instituted The Edison Project incorporates the "Great Books" cur­ throughout Texas in public schools, is also the curriculum of riculum of Mortimer Adler: Adam Smith, promoter of opium the "choice in education" mafia.The New American Schools trade and usury, passes for economics; Thomas Hobbes re­ Development Corp. (NASDC) and the Edison Project, places the Founding Fathers; Aristolle's "ethics" replaces ! among others, have beencreated to implement the OBE New Christian-Platonic morality; politics boils down to greed. Age agenda. Who better than convicted felon Michael Mil­ Edison schools will be divided into "houses" of 90 students ken to teach children to be greedy, immoral little monsters? combining two or three grades. Each student would have his own personal computer. A network would make available Privatization of the schools system-wide electronic "assemblies" and lectures, thereby George W. Bush is a supporter of the Edison Project and cutting teacher costs. advocate of "schools of choice." The Edison Project is a To make more money, Edison schools would lease out for-profit venture now planning private-sector takeovers of floorspa ce. Retailers will sell videos 'Indhawk other artifacts public schools around the country. Bush, who prefers to refer of "pop" culture to uplift grade sc�oolers. Psychologists to vouchers as "scholarships," is making the Edison Project, would have their offices nearby. Whittle's Channel One TV and similar privatization schemes, a major part of his cam­ network will air in Edison schools, cdmplete with paid com­ paign for governor. mercials targeting the youth market. Condom ads? Robocop Bush announced his candidacy for governoron Nov. 8. XXX? "The school model is priced dpwn to the pencils and According to his campaign press secretary, Deborah Burs­ erasers. There is ample margin to �ttract investors," says tion-Wade, Bush is "quite interested in a test project aimed Edison Project operative John Chubb (U.S. News and World at parents, kids, and families who would not necessarily be Report, Aug. 16, 1993).

EIR December 17, 1993 National 69 National News

rather funny: While Margaret Thatcher is Additi�nally, team members "will listen traveling around the world as a baroness, to people it;business and higher education Lady Thatcher, presumably reaping in great to see wh� kinds of skills and knowledge Welfare 'reform' will amounts for autographing broomsticks, graduates will need to be successful in life. George Bush, whose presidency was the Then, WO ing backward bring back slavery from what stu­ most benighted perhaps in the 20th century dents shou� d know, they'll develop ways to A special task force assigned by President in its own way, has been viewed by the test wheth r they've mastered those skills Clinton to examine methods of implement­ British monarchy, perhaps as barrenas Mar­ and knowl�dge." ing his campaign pledge to "end welfare as garet Thatcher's policy. This is a very bad I we know it," has produced a draftdiscussion joke. i document whi"h puts heavy emphasis on "In a sense," he concluded, "it reveals the fact that the crowd in Britain around the I shunting welfare recipients into low-wage I "workfare" programs, and also makes it a monarchy, including the people who owned Studellts rally to back priority to reduce the number of children Margaret Thatcher, are still running u.S. bornto people on welfare . policy; and that people go to London to be fired afgebra teacher According to published reports, the ad­ knighted as a part of the British Empire for Georgeto�, Virginia high school students ministration's reform proposal calls for lim­ the greatest blunders in U.S. history. It's rallied to s�pport their algebra teacher who iting to two years the length of time an indi­ really quite an ugly, disgusting spectacle. " had been tifed last spring for giving out too . vidual can receive welfare benefits; after many fail g grades. In a recent interview two years , he or she would be forced to take that appe ed in the Dec. 2 Daily Press. a minimum-wage "community service" job, Adele Jon� s, a lO-year tenured teacher, de­ if one were unable to find employment in fended he . teaching practices against offi­ the private sector. Minnesota to have cials who '-temanded that she "ease up on The plan contains an explicit anti-family her grddin and change her teaching style." bias in its emphasis on reducing the preg­ outcome-based diplomas Jones's ef� rts onbehalf of her students in­ nancy rate among welfare recipients. Ad­ Minnesota expects to be the first state to cluded arri ing early to help them, offering are ministration spokesmen stressing the completely change its graduation require­ tutoring urttil 5, 6, or 7 at night, making problem of teen pregnancy, in an obvious ments to reflect "outcome-based education" herself ave/ilable to students at home , and attempt to build public support for the pro­ including with state-approved testing lead­ devoting r free planning period to help posal . However, reportedly, the draft pro­ ing to an "outcome-based" diploma, by the them. "I t t' I the students: 'You're going to posal suggests that individual states be al­ year 2000 . OBE stresses "affective learn­ have to w rk hard. I don't believe in ex­ lowed to limit payments for any additional ing" and narrow job-related skills, rather cuses. MaUt is math. Either you know a children born to women on welfare , a vi­ than traditional academic excellence. It has mathematical concept or you don't,' " she cious policy already adopted by several been widely denounced as New Age brain­ said. I states, led by New Jersey-despite criticism washing. Three �undred students at Sussex Cen­ that it will lead to more abortions and even The legislature approved $4.4 million tral, wherq Jones taught, staged a walkout greater impoverishment for children whose last spring for 13 school districts to develop afterher fi · ng. Her defenders included both mothers receive welfare . outcome-based tests and to train teachers. those who iassed her classes and those who The state has identified25 "content" or "aca­ had been fl nked. Some wore signs reading, demic" outcomes, which have been divided "I failed N1s. Jones' class and it was my up among the 13 pilot site districts. They fault." must also, according to the Nov. 29 St. Paul LaRouche comments on Pioneer Press, work on assessments for six "comprehensive" outcomes, which include George Bush knighthood "broader goals," such as "makes life-work Former President George Bush was re­ decisions." Teams including teachers, par­ BufTalh proclaims ents, and community and business represen­ ceived into the Order of the Bath by Queen 'Mari n Anderson Day' Elizabeth II on Nov. 30, finallyjo ining Ron­ tatives are developing the testing models. a ald Reagan, Caspar Weinberger, and Nor­ The Rosemont district team will work on The Com�on Council of Buffalo, New man Schwarzkopf in the league of knighted three content outcomes, such as: "under­ York passljda resolution on Nov. 30 declar­ Americans. stands relationships among living things and ing Dec. 4� 1994 "Marian Anderson Day" in Lyndon LaRouche, who ran for Presi­ their environments; understands the physi­ honor of tijegreat singer Marian Anderson, dent against Bush in 1988 and 1992, re­ cal world, earth, and space; and understands who died �t the age of 96 on April 8. The marked in his weekly radio interview "EIR the interaction of people and economic, po­ resolution Ilcknowledgeda concertin Buffa­ Talks" the next day that he "thought that was litical and governmental systems." lo on Dec. 4, the Schiller Institute's "A Trib-

70 National EIR December 17, 1993 I Brildly

• CLARK CLIFFORD was ex­ cused from trial by the New York State Suprem� Court in the case in­ ute to the Voice of the Century," as part of According to the report, while there is "no volving the Bank of Commerce and a series of concerts featuring "artists per­ credible evidence that President Reagan vi­ Credit International's secret owner­ forming Ms. Anderson's traditional reper­ olated any criminal statute, he nevertheless ship of CliffQrd's First American toire of lieder, opera arias, spirituals, and set the stage for the illegal activities which Bankshares. Clifford, 75, was ex­ choral works ." ensued." The report notes that Reagan made cused because of his age. His associ­ In motivating the resolution, which was comments which left National Security ate , Robert A:ltman, was acquitted sponsored by Councilman David A. Collins Council staffer Lt. Col. Oliver North feeling earlier this year. and unanimously passed, the Common as though he had "an invitation to break the Council noted: law." • MINNESqT A grain farmer "Whereas: Marian Anderson, one of the The report also said that Bush's claims Andy Olson addressed 15 members greatest artists of classical music perfor­ that he was "out of the loop" were a lie, and of Poland's neiN Parliament on Nov. mance in the past 200 years, passed away in that "contrary to public pronouncements, 24, and called for an international April 1993; and Bush was fully aware of the Iran initiative." farmers' movement against free trade "Whereas: As one of the first African Sources say that there remain seven unan­ policies, inclu�ling the North Ameri­ American artists to break the color barrier in swered questions about Bush's knowledge, can Free Trade Agreement (NAFTA) the performance of the classics, she was a which Walsh intended to raise at the trial of and the General Agreement on Tar­ true pioneer in her chosen fieldand an inspi­ Reagan Defense Secretary Caspar Wein­ iffs and Trade (GATT) . Olson was ration, both as a performer and a standard berger. The trial was scuttled when Bush, in Europe on behalf of the Schiller bearer, to countless people; and as President, pardoned Weinberger. Institute, fouqded by Lyndon and "Whereas: Described as the embodi­ Helga LaRouc�e. ment of integrity and of the beautiful soul of classical culture, Marian Anderson could • PRESIDENT CLINTON has have made a career in Europe, where she appointed fotimer Iowa legislator was appreciated as an artist, but instead Schlesinger denounces Paul Johnson t() head theSoil Conser­ chose to display her talent in the United vation Service� While in the legisla­ States, where her perseverance and dignity flawed foreign policy ture, Johnson �ponsored laws taxing served as an example and inspiration to peo­ Former Defense Secretary James Schlesing­ fertilizers at t�e rate of a nickel an ple of all races and backgrounds; ... er charged the Clinton administration with acre, and raised registration fees on "Now, therefore be it resolved: That the falling prey to that American ideological pesticides. The revenue went to Common Council of the City of Buffalo join flaw known as "exceptionalism," while found the anti-farmerLeopold Center with the sponsors of 'A Tribute to the Voice "turning a blind eye to the incongruity of for Sustainabl\! Agriculture at Iowa of the Century' in honoring both the memo­ our own actions," in an opinion column in State University. ry and living spirit of Marian Anderson; and the Dec . 5 Washington Post . . . . that this honorable body proclaim Sat­ He cited several examples: • STUDENlS at the University of urday, December 4, 1993 'Marian Ander­ In Haiti, the United States has not hesi­ Pennsylvania have founded a "First son Day' in the City of Buffalo." tated to use the food weapon for political Amendment Coalition" at the univer­ ends, even while denouncing the Serbians sity to challepge political correct­ and Saddam Hussein for doing the same to ness. Founder. Dave Gentry told the achieve their political ends . Schlesinger cit­ Dec. 3 Washi/fgton Times, "The Ivy ed the Harvard study on starvation in Haiti, League schools are the trendsetters Iran-Contra report and described Haiti's ousted President Jean­ for the rest of>the nation ....If we Bertrand Aristide as "badly flawed." can put a stay Qn PC at the Ivy League blasts Reagan and Bush In former Yugoslavia, the Clinton ad­ schools, that will speak to the Iran-Contra special prosecutor Judge Law­ ministration blamed Germany. France, and nation." rence Walsh released the final conclusions Britain for its own policy failures, and then of his investigation early this month, which compounded the problem by announcing • HARVARD BOY, Vice Presi­ holds President Ronald Reagan responsible plans to abandon a "Euro-centric" policy for dent Al Gore told an audience of bus i­ for "setting the stage" for the illegal activi­ an Asia-oriented one . ness leaders in!Mexico on Dec. 1 that ties that were conducted on his watch, and In Asia, the United States continues to he never had � doubt that Mexican which accuses his vice president, George bash Japan, and then expects the Asians to President Carlos Salinas de Gortari Bush, of lying outright about his familiarity greet its claims of a new priority toward their could do a gOQd job. "I always knew with the guns-for-hostages swap. part of the world without skepticism, and that a 40-year�0Id Harvard graduate The full report, which is soon to be re­ otherwise "presumes to instruct them on could be a gool1President here," said leased, has already been read and de­ how they should conduct themselves," he Gore. nounced by Reagan and Bush's lawyers. wrote.

• EIR December 17, 1993 National 71 Editorial

Full sp eed ahead on coldjusion

On Nov . 24, a meeting was held in Asti, Italy on cold cold fusion research program. fusion research. What was unusual was not the an­ Press coverage of the Asti lneetingquoted Dr. Pons nouncement of any special scientific breakthrough nor out of context, to the effectth �t he may be able to offer the quality of technical discussion, but the fact that it the world home heaters within six years. The reality, was convened jointly by the two largest Italian industri­ as he and Dr. Fleischmann a�sert, is that there is no al conglomerates, Montedison and Fiat. Not only did reason that such practical applications cannot occur, they sponsor the event, they gave a prize amounting to but the present stage of the w�rk is still basic science. just under $5,000 to Russian physicist Yan Kucherov, Of course, there are still mary breakthroughs being for his inventive experiment in cold fusion. reported on cold fusion, some,more plausible than oth­ Major European media were alerted about the meet­ ers; but fundamentally, the experiment still needs to be ing, and it received wide coverage not only in Italian understood and controlled utader a variety of condi­ newspapers , but also in the German tabloid BUd Zei­ tions. tung, and the British Reuters wire service. This is as it should be w�th such a revolutionary It does not take an enormous imaginative leap to discovery, which challenges 'many scientific precon­ suppose that on the eve of the Dec. 5-9 Fourth Interna­ ceptions. Even were cold fusion to be proven impracti­ tional Conference on Cold Fusion, hosted by the Elec­ cal in the end for technical applications, or in the worst tric Power Research Institute (EPRI) and Stanford Re­ case simply wishful thinking; even should it occur search Institute (SRI), someone finally decided that (which seems increasingly unFkely) that the high tem­ Europe cannot afford to let this new frontier of science peratures generated by the eJtperiment, which appear pass them by. to indicate a non-chemical generation of excess heat A corroborating signal: Just ten days earlier, Carlo from an atomic process, are irtdeed chemical in origin: Rubbia convened a meeting to discuss what he called a Still, not to have a fully ela.�orated program of cold revolutionary breakthrough in the field ofnuclea r fis­ fusion research at this time is !l crime. sion. He has invented a thorium reactor which he says This is so, regardless of tile technical applications, would be extremely cost-effective, and which would if the phenomena are finallydetermined to be atomic in forestall the danger of proliferation of nuclear weapons. origin. Not only are the gains to be realized from cold At this meeting, the two discoverers of cold fusion, fusion processes potentially �normous, but the insight Drs . Martin Fleischmann and Stanley Pons, were in­ into solid state physics gained by ongoing research, is vited to hold a cold fusion panel. Rubbia is the director bound to spill over into many areas of solid state phys­ general of the European Center for Nuclear Research ics. Should cold fusion by some strange chance prove (CERN), which up until now has been renowned for not to be atomic in origin, it �ould still in all likelihood harboring such vehement critics of cold fU SIon as Dr. lead to important possibilities' for energy storage. Douglas Morrison. We welcome the participation of major industries On Dec . I, the Japanese Ministry of International abroad in offering support to ¢old fusion research. But Trade and Industry (MIT!) held a press conference to it is high time the U. S. Department of Energy face the announce that a Fleischmann-Pons cold fusion cell had enormity of its mistake when :it refused to underwrite a been delivered to them by Technova Corporation, the major cold fusion research effort, and instead lent sup­ sponsor of the two scientists. They will be testing it port to the witchhunt climate which drove Fleischmann along with another cell given to them from the cold and Pons out of the United States and forced them to fusion laboratory of IMRA Japan. This is a first mile­ lose precious years while they had to reassemble their stone along the road of an elaborated four-year MIT! work abroad.

72 National EIR December 17, 1993 SEE LAROUCHE ON CAB L E TV

All programs are The LaRouche Connection unless otherwise noted. ALASKA DISTRICT OF COLUMBIA • MINNEAPOLIS-Ch. 32 OREGON • ANCHOR E-ACTV EIR World News AG Ch. 40 • WASHINGTON-DCTV Ch. 25 • PORTLAND-Access , Wednesdays-9 p.m. Sundays-1 2 Noon Saturdays-9 :30 p.m. Tuesdays-9 p.m. (ChI 27) • ARKANSAS ST. PAUL-Ch. 33 Thu rsdays-4 p.m. (Ch. 33) FLORIDA ElR World News - LlTILE ROCK-Storer Ch. 18 • PASCO COUNTY-TCI Ch 31 PENNSYLVANIA . ' Mondays-8 p.m. T ues-9 p.m., Th urs-8 p.m. Tuesdays-8 .30 p.m. - PITISBURGH-PCTV Ch. 21 NEW JERSEY GEORGIA Mondays-7 p.m. _ STATEWIDE-CTN ;t5Wc���\CI Ch. 19 • ATLANTA-People TV Ch. 12 TEXAS (Check Local Channel) Thursdays-9 :30 p.m. Fndays- 1 :30 p.m. • HOUSTO N-PAC . • Mondays-2 a.m. DOWNEY-Conti. Ch. 51 IDAHO The LaRouc�e ConnectIOn Thursdays-9 :30 p.m. . . NEW YORK • MOSCOW-Ca bleVlslon Ch. 37 Mondays-4 .30 p.m. • E. L.A. to SANTA MONICA- • BRONX-BronxNet Ch . 67 Clinton s Crises Wednesdays-7 pm. . Century Cable Ch. 3 S atur d ays- 6 pm S a. t , D ec. 18-6 p.m ILLINOIS • M d n y 5 (th D 20) BROOKHAVEN-TCI Tues., Dec. 21-4:30 p.m. _ CHICAGO-CAN Ch. 21 (E. Suffo lk, LI) 1 Flash or Ch. 99 _ E.SA� �ER N�·�·ho �� LL��- VIRGINIA United Artists Ch. 25 Mon., Dec. 27-9 p.m. Thursdays-1 '30 pm. - ARLINGTON-ACT Ch. 33 Sun-3:30 p.m., Fri-8:30 p.m. • QUAD CITIES-Cox Ch. 4 _ BROOKLYN-BCAT Sun-1 p.m., Mon-6 :30 p.m. • LANC.lPALMDALE-Jones Ch. 3 Mondays-9 :30 p.m. Ti me-Wa rner B/Q Ch. 34 Wednesdays-1 2 Noon Sundays-2 p.m. INDIANA CableVision of NYC Ch. 67 • CHESTERFIELD-:-Storer Ch. 6 _ MODESTO-Access Ch. 5 • Wednesdays-1 1 :30 p.m. SOUTH BEND-TCI Ch. 31 The SchIller InstItute Show Th urs., Dec. 16-6:30 p.m. Thursdays-1 0 p.m. • BUFFALO-BCAM Ch. 18 Tuesdays-9 a.m . Th urs . , Jan . 6-. 6'3 0 pm.. Mondays-6 p m MARYLAND • FAIR FAX-FCAC Ch. 10 • MTN. VIEW-MVCTV Ch. 30 • HUDSON VALL'EY' -Ch. 6 _ BALTI MORE-BCAC Ch. 42 Tuesdays-1 2 Noon Tuesdays-4 p.m. 2 n d S un d ay mon thl y-2 p.m. Mondays-9 p.m. Th -7 S -10 - PASADENA- - MANHATIAN-MNN Ch. 69 s • MONTGOMERY-MCTV Ch. 49 • LE BUR ab Visio · . 6 Crown Cable Ch. 56 Saturdays-12 Nc:>on �S ��C �� � �h Tuesdays-1 1 p.m. Mondays-7 p.m. Kinneloa Cable Ch. 46 • OSSINING-Continental Thursdays-2 :30 p.m. • MARTINSVILLE-Cable Thursdays-4:30 pm Southern Westchester Ch. 19 Ch . 6 • WESTMINSTER-CCTV Ch. 19 SSome a t ur d ays-8 p.m. • SACRAMENTO-Access Ch. 18 Rockland County Ch. 26 Tuesdays-3 p.m. Some Sundays-1-5 p.m. 2nd & 4th Wed-1 0 p.m. 1st & 3rd Sun -4 p m MICHIGAN • RICHMOND/HENRICO- • SAN DIEGO-Cox Ch. 24 • ROCHESTER-":'GRC Ch·. 15 Continental Cable Ch. 38 Sundays-12:30 a.m. - CENTERLINE-Ch. 34 Fri-10'30 p m Sun-7 pm " The Schiller Institute Show • SAN FRANCISCO-Ch. 53 Tuesdays-7 :30 p.m. • STATE N ISL:-'CTV Ch. 24 Tuesdays-6 :30 p.m. Fridays-8:30 p.m. _TRENTON-TCI Ch. 44 Wed-1 1 p.m., Sat-8 a.m. p.m. • SANTA ANA-Comcast Ch. 20 Wednesdays-2 :30 _ SUFFOLK, L.I.-Ch. 25 WASHINGTON Sundays-4 p.m. MINNESOTA 2nd & 4th Mondays-10 p.m. • SEATILE-Access Ch. 29 _ W. SAN FERNANDO VALLEY- _ EDEN PRAI RIE-Ch. 33 _ WESTCHESTER-Access Ch. 18 Thursdays-1 p.m. (thru Dec.) CVI Ch. 27 Wednesdays-5 :30 p.m. Fridays-6 p.m. • SPOKANE-Cox Ch. 37 Tuesdays-8 :30 p.m. Sundays-3 :30 p.m. Sun., Jan. 2-6 p.m. If you are interested in getting these programs on your local cable TV station, please call Charles Notley at (703) 777-9451.

I would like to subscribe to Executive Executive Intelligence Review for Intelligence o 1 year 0 6 months 0 3 months

I enclose $ _____ check or money order

Review Please charge my 0 MasterCard 0 Visa

Card No. _____Exp . date ______

u. s. , Canada and Mexico only Signature ______Name ______

1 year ...... $396 Company ______6 months .$225 Phone ( 3 months . $125

Address ______

Foreign Rates City ______

1 year .. _ $490 State ______-L Zip ____ _ 6 months .$265

3 months . $145 Make checks payable to EIR News Service Inc., P.O. Box 17390. Washington. D.C. 2004 1- 0390.

------� St. Peter and St. John Healing the Cripple, by Albrecht Duerer, 1513

What doth it profit, my brethren, though a man say he hath fa ith, and have not works? can fa ith save him?

- If a brother or sister be naked, and destitute of daily fo od,

And one of you say unto them, Departin peace, be ye warmed and filled; notwithstanding ye give them not those things which are needful to the body; what doth it profit?

Even so, fa ith, if it have not works, is dead, being alone.

--The Epistle of James, 2, 1 4- 1 7.

Wishing Yo u the Peace and Joy of this Blessed Season Th roughout the Ne w Ye ar

The Editors and Staff of Executive Intelligence Review