The Truth About The LaRouche Trial

• The rush to trial only 37 days after indictment.

• Four years of federal investigations and a "warm­ up" trial where jurors reported they would have voted unanimously for acquittal.

• The role of Henry Kissinger and the "Get LaRouche Task Force."

• The judge's decision to grant a special motion in limine to block the defense case.

• Full text of appeal papers filed by LaRouche's attorney, former U. S. Attorney General Ramsey Clark, and distin­ guished international jurists.

$1 0 ppd., 664 pages Available from

Name ______Executive Intelligence Review

Address ______

City ______State ___ Zip ___

Telephone ______

Ma�e checks payable to: Executive Intelligence Review P.o. Box 17390, Washington, D.C. 20041-0390 Founder and Contributing Editor: Lyndon H. LaRouche. Jr. From the Editor Editor: Nora Hamerman Managing Editors: John Sigerson and Susan Welsh Editorial Board: Warren Hamerman. Melvin Klenetsky. Antony Papert. Gerald Rose. Allen Salisbury. Edward Spannaus. Nancy Spannaus. Webster Tarpley. William Wertz. Carol White. Christopher White Science and Technology: Carol White As I write on Nov. 4, one million people are reported to be demon­ Special Services: Richard Freeman strating against the Communist regime in East Berlin_ The upheaval Book Editor: Katherine Notley Advertising Director: Marsha Freeman in the Soviet bloc, of which the revolt in the Soviet Occupied Zone Circulation Manager: Cynthia Parsons of Germany is the shock front, is the direct result of devastating INTELLIGENCE DIRECTORS: shortages of food and basic consumer goods: a reality which Gorba­ Africa: Mary LaleVl!e Agriculture: Marcia Merry chov and Bush, in their search for "matching perceptions," have Asia: Linda de Hoyos sought to deny. And behind this, is the reality of a full-scale physical Counterintelligence: Jeffrey Steinberg. Paul Goldstein breakdown crisis_ Economics: Christopher White In Chicago, the leadership of the "Food for Peace" movement, European Economics: William Engdahl. Laurent Murawiec called into being last year by American statesman and economist Ibero-America: Robyn Quijano. Dennis Small Lyndon LaRouche, is meeting today, and mobilizing to rescue the Medicine: John Grauerholz. M.D. Middle East: Thierry Lalevee nation of Poland from terrible starvation this winter. In her video­ Soviet Union and Eastern Europe: Rachel Douglas. Konstantin George taped address to that conference, Helga Zepp-LaRouche points to Special Projects: Mark Burdman her husband Lyndon's proposal for German reunification, based on United States: Kathleen Klenetsky a "Food for Peace" intervention by the West into the Polish economy _ INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura This farsighted proposal, which many thought utopian when he made Bogota: Javier Almario it one year ago at the Hotel Bristol in Berlin, has proved to be the Bonn: George Gregory. Rainer Apel Copenhagen: Poul Rasmussen only viable proposal on the table at this time. Houston: Harley Schlanger She adds, "It is a complete travesty from the standpoint of world Lima: Sara Madueiio Mexico City: Hugo Lopez Ochoa. Josefina history, that the man, who has foreseen that the world food shortage Menendez would bring us to this point of disaster, at this point has to sit in jail. Milan: Marco Fanini New Delhi: Susan Maitra I ask you to do everything possible to help to get Lyn out." Paris: Christine Bierre The political movement to· free LaRouche is inseparable from Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio. Stefania Sacchi the tidal wave of the anti-Bolshevik resistance. It.will make use of Stockholm: Michael Ericson the first major legal victory for LaRouche against his political ene­ Washington. D.C.: William Jones Wiesbaden: Goran Haglund mies. This was achieved on Oct. 25, and is the subject of our Feature. Judge Martin V.B. Bostetter, 15 months after the trial of the involun­ EIRIExecutive Intelligence Review (ISSN 0273"{)314) is published weekly (50 issues) except for the second week tary bankruptcies forced upon three LaRouche-linked entities 1987, of July and last week of December by EIR News Service ruled that the U. S. government had acted in "bad faith" in its zeal to Inc . . P.O. Box 17390. Washington. DC 20041'()390 (202) 457·8840 shut down a movement led by a man they considered a "political European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, extremist." By dismissing the bankruptcies brought by the lawless Dotzheimerstrasse 166, D-62oo Wiesbaden, Federal Republic of Germany "Get LaRouche" task force, the decision underscores the basic con­ Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. Michael Liebig tention of the LaRouche movement that the whole package of "crimi­ In Denmark: EIR, Rosenvaengets Aile 20. 2100 Copenhagen DE, Tel. (0 I) 42-15-00 nal" cases against them is a fraudulent, bad-faith action spurred by In Mexico: EIR, Francisco maz Covarrubias 54 A-3 political hatred. May it be only the first such ruling, restoring law to Colonia San Rafael, Mexico DF. Tel: 705-1295.

Japan subscription sales: D.T.D. Research Corporation, the United States. Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821.

Copyright © 1989 ErR News Service. All rights reserved. Rep�uction in whole or in part without pennission strictly prohIbIted. Second-cIass postage paid at Washington D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single issue-$IO

Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. TIillContents

Book Reviews Departments Economics

9 The worldwide impact of 50 Report from Bonn 4 Polish cataclysm will Friedrich List's ideas East Berlin's race for time. destroy the 'New Yalta' Friedrich List-politische With yorbachov's approval of the Wirkungsgeschichte des Vordenkers 51 Panama Report "reforms" now being carried out in der europiiischen Integration, by Invasion mooted at summit. Poland, he has endorsed his own Prof. Dr. Eugen Wendler. death warrant. Part I of a series by 52 Report from Rio Webster Tarpley. 48 Simon Wiesenthal: A real "Green terrorism looms." Nazi-hunter draws the 5 LaRouche rips Sachs's lessons of history 53 Andean Report fascist recipe for Poland Justice n' est pas vengeance: une Peru doesn't have to lose cocaine autobiographie, by Simon war. 7 Currency Rates Wiesenthal with collaboration from Peter Michael Lingens. 72 Editorial 8 Thatcher takes a pounding The real science frauds. Her refusal to move Great Britain 66 Don't let Matamoros file into the European Monetary System be closed! has caused a revolt in her own Cauldron of Blood: The Matamoros cabinet. Correction: A number of errors Cult Killings, by Jim Schutze. crept into the article, "Supreme 10 Eye on Washington Court Backs RICO Use Against The need to invest in "human Science & Technology Political Groups," in the Oct. 20 capitaL" issue. 1) The Court did not uphold 16 Picowave processing can the Third Circuit Court of Appeals safeguard your food decision approving the use of RICO 11 Agriculture The Bush pesticide bill. Researcher Neil E. Nielson reports against an anti-abortion group; it on this entirely safe technology for declined to grant a petition for eliminating bacteria and extending certiorari (review) of the lower 12 Dateline Mexico shelf-life of foods, and the attempts court ruling. A denial of certiorari The "Dorian Gray" economic Pact. by anti-technology crackpots to cannot be cited as having any value prevent us from enjoying its as a precedent. The ruling therefore 13 Medicine benefits. stands as a precedent only for the Can coughing transmit AIDS? Third Circuit, and the other 11 Circuit Courts are free to ignore this 14 Business Briefs ruling if they wish. (The Supreme Court only accepts about 160 out of 5,000 cases submitted for review each term.) 2) The government has not yet used the criminal or civil provisions of RICO against any political group, as may be inferred from the article-although the threat is certainly there, that it may do so in the future. The Pennsylvania case was a civil action brought by private parties. •

Volume 16 Number 45, November 10, 1989

Feature International National

32 Soviet High Command 56 His presidency adrift, Bush sounds alarm, as crisis embarks on summit at sea deepens The "non-summit summit" Faced with growing numbers of supposedly has no set agenda, but draft dodgers, draft card burners , Gorbachov will be coming with a pacifists, and even physical assaults list of economic demands-in a on military personnel, the Red last-ditch effortto shore up his Army has had enough, and is desperate regime. readying itself to extinguish the Padlocking three publishing and distribution compa­ opposition. 58 Kafka in Roanoke: Judicial nies in an involuntary bankruptcy that ftoutedthe clear provisions of the law in April 1987. was the firstjunc­ barbarism in the trial tion on the railroad of LaRouche and his associates. 34 The neutralization of against Michael O. Now it has been overturned. NATO's southern flank Billington

24 Bankruptcy judge: U.S. 35 Mitterrand defines a grand 60 American patriot and acted illegally against design world citizen LaRouche The decision by federal judge 36 Australian patriot is 62 Cali Cartel's lawyer was Martin Bostetter to overturn the frameup target cleared by U.S. "Get LaRouche" task force's Department of Justice attempt to shut down firms run by 38 NATO Autumn Forge LaRouche associates, is not just a exercises a victim of Vienna 64 Krasnoyarsk radar: victory for LaRouche's political conventional forces talks? movement, but represents a victory another glasnost hoax for the principle of government by Even the Soviet foreign minister law. 41 Beijing declares war on now admits the radar station is for China's elites and their own beam weapons defense system. 26 1987 bankruptcy: first stop peasantry on the railroad 68 Congressional Closeup Without the government's illegal 43 Jammu and Kashmir crisis bankruptcy seizure in 1987, threatens Indian Lyndon LaRouche would not be in Subcontinent's stability 70 National News prison today. 45 The 'Tiny' Rowland file 28 From Judge Bostetter's The biggest bank robbery in British decision of Oct. 25 history.

54 International Intelligence ITmEconom.ics

Polish cataclysm will destroy the 'New Yalta'

by Webster Tarpley

On Oct. 11, the Polish Communist General Secretary Miec­ come the detonator for the third world conflagration of this zyslaw Rakowski met in the Kremlin for three and one-half century. hours with Soviet party boss Mikhail Gorbachov. At the But if nothing changes radically and quickly, Poland will close of the meeting, Rakowski told reporters that Gorba­ be destroyed. The coming destruction of Poland will be a chov, whom he described as a "great friend of Poland," had direct product of the policies of the New York-London-Mos­ expressed approval for the process of economic reform now cow "Trust" faction of usurious financiers and Communist being carried out in Poland. In addition, Gorbachov optimis­ commissars. The great historical irony is that the coming tically ascribed to himself a further year of longevity for his bloody explosion in Poland is sure to destroy the U.S.-Brit­ "reform" programs. ish-Soviet condominium, the "New Yalta" of superpower With that, the Soviet leader has formally and officially agreements and crisis management which, in the opinion of endorsed his own death warrant. No amount of intrigue at its beneficiaries, is the final,terminus ad quem of human the Dec. 2-3 Malta "lifeboat" summit of the two superpowers civilization. will change anything in this picture. The Polish crisis will inevitably destroy the superpower This Kremlin meeting is symbolic of the tragedy that condominium, quite independently of all the other lethal cri­ is now stalking Poland, Europe , and the world. For unless ses that guarantee the final collapse of 500years of Muscovite something changes radically in the current economic, politi­ empire. It will do so because Poland is the nation where the cal, and strategic constellation, Poland is not going to make concentrated predatory insanity of the Trust is playing out it. Poland, that gallant, long-suffering, and much-betrayed with the most devastating effect. The Polish explosion will nation, that front-line bastion of Latin Christianity and West­ bring down Gorbachov-if nothing else already has-by ern civilization against barbarism, is now being impelled forcing the hand of the dozen or so groups now preparing toward a deadly physical collapse in economic activity, with putsches against him in the Soviet Nomenklatura. A massa­ the inevitable concomitants of popular insurrection and revo­ cre of Poles by the Red Army will also make the political lution, with the likely intervention of the Soviet Red Army, position of New Yalta proponents in the Western world un­ massacres, and civil war. tenable, and thus break offthe condominium itself. There is still perhaps a small chance that this could be avoided by a radical and rapid change in the policies of the Gorbachov's economic stupidity French and Federal German governments; in addition, we The most pronounced trait of Gorbachov and his group must not desist from our attempts to compel a policy change is an aggressive, militant ignorance of real economic theory, on the part of the United States, even at this late hour. Our and an arrogant disregard of economics as natural law. In urgency flows fromour admiration for the Polish people and this, he is not original; his abysmal economic stupidity is cast their magnificent courage. It also flows from our historical in the mold of his predecessors, Nikolai Bukharin and Nikita memory of what the Bush administration ignores: that World Khrushchov, whose economic failures are legendary. In­ War II began in Europe as a conflict involving Poland. That deed, Bukharin, Khrushchov, and Gorbachov, along with conflict has never been resolved, and now threatens to be- Yuri Andropov, Otto Kuusinen, Eugen Varga, Leon Trot-

4 Economics EIR November 10, 1989 So says JeffreySa chs in the Washington Post "Outlook" section on Poland. He states thathis measures would prob­ ably not be easily applied in a country such as the United LaRouche rips Sachs's States, but might be in Poland because the repressive apparatus exists intact, independent of and mobilized out­ fascist recipe for Poland side the ranks of the governing party, Solidarnosc. What Lyndon LaRouche, candidate fo r Congress in Virginia's he proposes essentially is genocide. It's also insanity. And 10th Congressional District, issued this statement on Oct. as I've indicated earlier, there's another implication to 29. this. This Polish experiment, if the Sachs version were The Sunday, Oct. 29 issue of the Washington Post con­ allowed to proceed, would be, over the course of the tains a feature by Harvard so-called economist Jeffrey winter, one of the most hideous and mostgenocidal expe­ Sachs on the subject of Poland. After the sickening experi­ riences Poland has known since the Nazi occupation, ence of reading through the entire article, one realizes that maybe worse than the Nazi occupation in some respects, Sachs is a fascist in the tradition of John Maynard Keynes. in what it leads to. Thus by the end of winter, if not earlier, This is no mere characterization. It is key to understanding this experiment in Poland would become the basis for the crucial strategic flawin what appears to be the present probably the overthrow of Gorbachov, or at least of Gor­ U.S. policy toward Poland. bachov as he is presently viewed. This experiment in It should be recalled that in 1936, John Maynard Poland could ruin everything and could bring us more Keynes published the firstedition of his The General The­ rapidly toward the brink of Soviet military attack on the ory of Employment, Interest, and Money in a German­ world outside, sometime perhaps between the years 1991 language edition. This edition had a special forward in and 1992. which Keynes stated that he thought the host countryfor JeffreySa chs must be reined in. And only sane people, this publication, Nazi Germany, was among those best not fascists from Harvard, must lead in helping the Polish suited for the application of his economic theories. opportunity, somehow, to succeed.

sky, and many more are typical of the cosmopolitan or inter­ painfully aware that the Western usurers are committed to nationalist school of Kremlin leaders. Gorbachov, like his the rape and plunder of Holy Mother Russia as well. There predecessors in this school, typically argues that in order to the Third Romers draw the line, as in such typical moments thrive, Holy Mother Russia must pragmatically adapt to the as 1927-28, when Stalin ousted Bukharin and abruptly termi­ rules of the game in the gambling casino that is the world nated the foreign concessions to Western imperialists that of Western finance. The Gorbachov school aims at getting had been permitted under the New Economic Policy (NEP). economic and technological assistance from the West to pull One featureof Stalin's victory over Bukharin deserves to the Soviet Empire through its periodic bouts of exhaustion. be mentioned today because it bears upon the irreversible In order to do this, they propose that Russia make concessions process that is now leading to the overthrow of Gorbachov to what they (with some empirical justification) understand within the next six to seven months, at the hands of rivals to be the essence of Western economics-usury, moneta­ who will necessarily tum out to be closer to the Third Rome rism, and rapine. School: A decisive contributing factor for Stalin's ascen­ The Russian cosmopolitan school is distinguished in this dancy was the incipient breakdown crisis of Westernecono­ regard fromthe fanatics of Moscow the Third Rome and the my, finance, and banking leading up to the crisis of 1929- apocalyptic destiny of the Great Russian Master Race for 33. An economic depression undermines the ability of the world conquest, of whom the archetype is of course Josef Western Trust financiers to deliver the economic goods, and Stalin. This latter group is the inspiration for today's fascist also makes their demands increase in rapacity. Today's Pamyat (Memory) movement and for other political expres­ breakdown crisis in the West is thus another nail in Gorba­ sions in Russia. For the Third Rome Great Russian school, chov's coffin. the Western Trust financiers and monetarists are to be culti­ For Lord Victor Rothschild, Armand Hammer, Dwayne vated, primarily because their looting practices contribute to Andreas, Henry Kissinger, David Roekefeller, and the rest the more rapid rotting away of the putrid West, in contrast of the Western branches of the Trust, the positive aspects of to the opposite effect of industrial capitalists and production Gorbachov and his fellow Russian cosmopolitans are to be managers. But at the same time, the Third Rome school is found precisely in their willingness to make concessions to

EIR November 10, 1989 Economics 5 Western usurious financial practices. The Western Trust ex­ ponents are prevented by their own obsessive ideology from realizing that it is precisely the pro-usury side of a Gorbachov which, when superimposed on a communist primitive accu­ mulation war economy already deep in its own lethal break­ down crisis, constitutes the most deadly economic poison known to man. The Western Trust financiers are absolutely purblind to the fact that what they like most about Gorbachov are exactly those policies that doom him to an early and probably violent demise. For the Western Trust and Gorba­ chov both worship at the altar of the god of usury, and Ar­ mand Hammer and Lord Victor simply cannot understand why that should suddenly become such a heresy for a Russian politician. But Holy Mother Russia will not tolerate their god of usury; she tolerates no gods but herself. Solidarnosc, Communist chief Rakowski, andMikhailGorbachov are all backing an austerityprogram that will mean disasterfo r A nation betrayed Poland. Shown here is a Solidarnosc election poster in Krakow, Poland is the advanced march of Westerncivilization, the next to a poster fo r Communist-backed candidates in the August cockpit of Europe, and fronts on the fault line of demarcation election. between Latin West and Byzantine East. The Poles were partitioned in the 18th century, brutally repressed in the 19th century, repeatedly rolled over and crushed when they tried form communist" governmentin power at that time; Poland's to assert their independence in the 20th century. The Poles foreign debt is $39 billion, of which $9 billion is owed to the have been betrayed by the West, and it is no good saying foreign commercial banks assembled in the so-called London that the Poles are responsible for their own problems. Polish Club. According to Wroblewski, this debt was being regular­ losses in World War II were proportionally greater than those ly serviced under an agreement with the London Club. The of any other nation; Warsaw was razed to the ground and 1 Polish debt to the Paris Club, which represents the interests million residents, virtually the entire population, slaugh­ of state-to-state and government-guaranteed credits, was tered. The crisis of the Polish economy today has two basic pegged at $24 billion. During most of 1987 and 1988, Poland causes. The first is that since 1945, Poland, the largest and was in almost total default on the debt owed to the Paris Club, most populous of the Eastern European nations enslaved by having paid only certain fees to the amount of $140 million. the Soviets in World War II, has been mercilessly squeezed In addition, Poland has a hard currency debt to the U.S.S.R., by the Soviet war economy. The looting of Poland began the as well as to the CMEA (Comecon) banking system and other moment the Red Army crossed the border, and has only East bloc institutions. There are also debts to countries which increased over the years, with a very notable tum of the screw are not members of the Paris Club. coming in 1982-83, when Gen. Wojciech laruzelski was If Poland were fully to service all this debt, the yearly given new delivery quotas dictated by Marshal 'NikolaiOgar­ interest charges alone would be in excess of $3 billion. As kov's war buildup. of February, Poland was paying at a yearly rate of interest of $1.702 billion. (In mid-October, Warsaw television reported Origins of the current economic crisis that Poland would be forced to default on $500 million owed The second looting of Poland began especially during the to Western commercial banks due at mid-December. Poland 1970s, when the government of Edward Gierek attempted to was offering to pay 15% and then reschedule the rest, and procure capital goods on credit from the West. To modernize the banks seemed to be agreeing. Some countries, including the economy, Poland went into debt. Whatever Gierek's notably the Federal Republic of Germany and Austria, have problems were, he cannot be blamed for two oil shocks, the granted Poland various kinds of debt forgiveness.) Volcker interest rate crunch, the black market hemorrhaging But against this $1. 7 billion of debt service stand total of Poland's currency, the zloty; and unfavorable terms of export earnings that were running at only $1 billion per year trade on Polish raw materials exports like coal, and their in early 1989. Whatever ameliorations may have been grant­ sequelae. These were the handiwork of the Western Trust ed to the post-communist government, it is very likely that financiers. But the result was that Poland was soon being Poland, just like Ibero-America, is experiencing a negative bled dry to service almost $40 billion of hard-currency debt, net resource transfer toward the Western banks. A compre­ especially to the deutschemark area. hensive debt moratorium on all interest and principal owed by According to a statement made in February 1989 by An­ Poland is thus mandatory in the name of Westerncivilization drzej Wroblewski, the finance minister in the Rakowski "re- itself.

6 Economics EIR November 10, 1989 '. Paying this debt is pointless for Poland in any case: No matter what is paid, the country is denied normal internation- C ....-.&&�ency .. ' Rates al commercial credit. Poland is forced to pay cash. According to Rakowski's Minister of Industry, Mieczyslaw Wilczek, The dollar in deutschemarks speaking at a February 1989 symposium for the foreign press: New York late afternoon fixing "For several years we have been buying only for cash. I do , not have to explain to you how cumbersome it has been. The 2.00 whole world is thriving and is made to go 'round by credits." r-...... Has the enlightened West changed this policy under the new 1.90 "'""'\ - government? "'-- 1.80 "'" Structural weakness 1.70 The structural weakness of the Polish economy goes back to ·the Stalinist period under party boss Boleslaw Bierut. As 1.60

Zbigniew M. Fallenbuchl told the Joint Economic Commit­ 9/13 9/20 9/27 10/4 10/11 10/18 10/25 1111 tee of the U.S. Congress some years ago, the main features of the modernPolish economy were dictated by Stalinist war The dollar in yen New York late afternoon fixing planning: "The stress was on coal mining, the iron and steel metallurgy, heavy machinery and metal constructions and 150 on the so-called 'heavy' chemical industry. All 'modern' branches, such as electronics, synthetic fibers, plastics and 140 '-.. � no: - other sections of the petrochemicalindustry were neglected, -- together with agriculture, infrastructure, and the production 130 of all consumption goods industries. " The resulting economy could produce "a very large number of manufactured con­ 120 sumption and, above all, producer goods, on a small scale, at.a high unit cost, with a relatively backward technology 110 and low quality, as it was impossible to expand research and 9113 9/20 9/27 10/4 10111 10/18 10/25 1111 development in all these fieldsto a significantextent ." The British pound in dollars Agriculture was collectivized on the Russian model until New York late afternoon fixing the Poznan riots of 1956, when it was mercifully rescinded, but this lefta repeatedly subdivided crazy-qUilt of small hold­ 1.90 ings. (Smaller tractors would,.be appropriate for these par­ cels, but all governments up to now have insisted on buying 1.80 the licenses to produce only the largest Western tractors at the Ursus and other tractor factories.) 1.70 The 1956 Poznan riots brought in Wladyslaw Gomulka, 1.60 - who tried a "selective growth strategy" which led to the --"" "- Gdansk riots of 1970, which ushered Gomulka out and rv � rv I.SO brought Gierek in. Gierek's policy of going into debt for 9/13 9/20 9/27 10/4 10/11 I 10118 10/25 1111 development imports was overtaken by the firstoil shock, in 1973, which deprived the country of foreign exchange and The dollar in Swiss francs caused the bureaucracy to abort many half-finished projects New York late afternoon fixing to save hard currency. A large number of unfinished invest­ ments from that period continue to rust away in various cor­ 1.80 ners of Poland. Under Stanislaw Kania, General Jaruzelski, 1.70 and the December 1981 martial law, U.S. sanctions forced -- the country to retool moreand more towards Comecon. After '-. L-/ 1.60 � J'II:o,. 1985, Poland was caught in a crunchbetween declining dol­ lar prices for exports like coal, and a more expensive deut­ I.SO schemark, needed to pay large portions of the foreign debt. The worst conditions prevailed in agriculture, where no sig­ 1.40 nificantnew investments have been made since the 1940s. 9/13 9/20 9/27 1014 10/11 10/18 10125 1111 To be continued.

EIR November 10, 1989 Economics 7 called Europe's Single Market.or simply "Europe 1992," has been adopted by all 12 nations, which is supposed to create the world's most powerful economic bloc by January 1993. Thatcher takes Borders between member states will go; trade, people, and finance will flowfre ely. a But the real heart of the Delors plan is the controversial pounding proposal to create a single, autonomous supranational "Fed­ eral Reserve" -style central bank with one single currency. by William Engdahl Such a scheme would effectively imply surrender of all na­ tional economic sovereignty. There are some indications that the surprise resignation Oct. Thatcher has been an ardent opponent of the European 27 of Britain's Chancellor of the Exchequer Nigel Lawson is central bank scheme, and has insisted that 1992 can go ahead part of a well-planned ambush to get Prime Minister Margaret with a "free market" instead. Her main backer in the debate Thatcher. The British press headlines of the following week has been her Washington-based monetarist adviser Sir Alan read like a carbon copy of the same press 22 years before, in Walters, widely mooted in London to be her unofficialpolicy October 1967 , when the pound sterling crisis triggered the liaison with the Bush administration. Walters came out with beginning of the end of the postwar gold exchange system of an article the week of Lawson's resignation, in a U.S. eco­ Bretton Woods. The London Times financial page blared, nomic journal, in which he referred to the European Mone­ "Bank Averts Pound Crisis," referring to intervention by the tary System and super-central bank plan as "half-baked." Bank of England in the wake of Lawson's surprise announce­ Nigel Lawson had attempted for some years to bring ment the day before that he was resigning as Prime Minister Britain into the EMS, as a firststep to full integration into the Thatcher's principal monetary and finance cabinet officer. continental European monetary union. Thatcher reluctantly The pound plunged to a two-and-half-year low against the agreed earlier this year at an EC heads of state summit, to German deutschemark, and London's stock market dropped allow Britain finally to join the limited EMS agreement, sharply on Oct. 27 on news of the Lawson crisis. The follow­ an initial attempt to stabilize· internal European currencies ing week, although the pound for the moment seemed calm­ among the European trading partners as a defense against the er, informed City of London reports were that the ground is wild dollar gyrations of the Jimmy Carter presidency in the being prepared for a direct attack on the prime minister by the late 1970s. powerful financial forces of the world's third most important The EMS was founded by French President Valery Gis­ financial capital. card d'Estaing and German Chancellor Helmut Schmidt. Stage One, which has been in effect since 1979, calls for Monetarist's dilemma member states to maintain currency parities within a tight What is this all about? The real issue has been the subject limit of variance, in most cases within 2.5%. Britain, linked of intense back-room battles inside the British establishment to huge oil earnings and the dollar, has refused to formally for months. Britain has been a member of the European peg to the EMS. Thatcher is known to resist, believing that Common Market only since 1973. It has continued to waffle the German deutschemark, as the currency of Europe's between its interests in cultivating its "special relationship" strongest economic power, would dictate the value of the with the United States, and its role as a member of the 12- British pound. nation European Community (EC). Key to this ambivalence It's all quite byzantine, but it's at the heart of the future is Britain's financial links to the dollar and its trade links to of European and Westerneconomic developments. Some 18 the continent of Europe . months ago, Lawson tried to peg the pound to the deutsche­ "The battle is a replay of the wars of Spanish Succession mark instead of the dollar as It first step to EMS entry, but [in 1702-13], in which the Whig Party argued that Britain's was forced to abandon this whenThatcher was notified. future destiny lay with continental Europe, versus the Tories Lawson has powerful backers in the British financial es­ who demanded Britain play a global role. Thatcher is a classic tablishment. Bank of England Governor Robin Leigh-Pem­ Tory in that sense, and the modem day 'Whigs' see Britain's berton told a gathering of City of London bankers as long future as the dominant financialcenter ofEurope 's emerging ago as March 9, "The single European market offers a consid­ Single Market," commented senior City of London econo­ erable opportunity for London ....I think it will bolster mist Stephen Lewis in a recent discussion. London as Europe's principal international capital market." Since the October 1987 U.S. stock market panic, power­ Some in London say there is a move to abandon the sinking ful financial interests in Europe have moved with unprece­ ship of the U.S. financial "casino" and lock into the firmer dented force to reshape the political and economic map of foundation of continental Europe. They predict that scandals WesternEurope. Under the guidance of French Socialist and will soon target Thatcher directly if she continues to stone­ former Banque de France official Jacques Delors, a plan wall on the EMS issue.

8 Economics EIR November 10, 1989 scrutiny: List explicitly defended the Qation-state, which to­ day's "Single European Market 1992" plan will undermine, and attacked the harmful effects of free trade , which is the dominant ideology behind the current integration push. The worldwide impact of List's impact in Eastern Europe, Asia Friedrich List's ideas Because of the ferment now in the Soviet bloc and China, but also, because the impact of List's economic theories there by Elke Fimmen is so little known, the chapter on List's influences on the eastern countries and on Asia deserves special mention. This is where List's importance even today for developing na­ tions, as the opponent of the Adam Smith-modeled free trade Friedrich List-poHtische system, becomes particularly clear. Wendler points out that Wirkungsgeschichte des Vordenkers der a considerable amount of List's influence can likewise be europiischen Integration found to this day in Ibero-America, and apologizes for his by Prof. Dr. Eugen Wendler inability to follow this up for lack of time and finances. Oldenbourg-Verlag, West Germany, 1989 List's importance for Hungary, Romania, and even Rus­ 238 pages with index, hardbound, DM 76.- sia, however, is very well documented: This reaches from his direct personal influence upon the Hungarian freedom fighter Lajos Kossuth (1802-94), through the Romanian Eugen Wendler's book, which in English would be titled economist and politician Aurelian (1833-1909) and finally Friedrich List-The History of the Political Effe ct of the to the Russian statesman Sergei Witte (1849-1915), whose Forerunner of European Integration was brought out for the economic modernizationprogram could have preserved Rus­ occasion of Friedrich List's 200thbirthday on Aug. 6, 1989. sia very well before the horror of the Bolshevik Revolution. Friedrich List was a German who became one of the great In all these examples it is shown, that List's ideas for the "American System" economists in the early 19th century, buildup of an independent manufacturing power, combined after spending years in the United States, and working, upon with his demand for individual freedom and education for his return to Germany, to forge the institutions of a modem the entire populace, are universally valid. industrial nation there. List is appreciated also in Asia for his ideas, which have Despite one serious flaw-Professor Wendler's mistaken significantly shaped the economic development of Japan, thesis that List was a forerunner of today' s European integra­ India, and also China. Wendler points this out in the example tion movement-this book is well worth reading for anyone of India, and explains that it was precisely the battle against with a know ledge of the German language, and merits transla­ British colonial domination, which caused the Indian free­ tion into other languages soon, as well as a paperback edition dom fighters as early as the last century to seize upon the inside the Federal Republic of Germany, to make it accessible doctrines of the strongest adversary of British free trade and to a wider public. The author sketches an impressivepicture colonial politics. They used List's National System of Politi­ of List's international impact, not only in his own lifetime, cal-Economy in order to develop their own concept for India. but also the influenceof his ideas after his death . Regarding List's influenceon China, it would certainly be Wendler writes that he wants to give new stimulus, with worthwhile to follow up still further the direct influence of his work, to the discovery of List's life and his ideas of List's ideas on the founder of the Chinese state, Sun Y at-sen. national economy, and to reduce the large deficit ofinforma­ Beyond doubt, Sun Yat-sen' s economic buildup program for tion even among students of economic science. This deficit China-with its special emphasis on develoment of infra­ unfortunately exists not only in the academic arena, but also structure and of railroad systems as well as the necessity of among politicians and captains of industry, who nowadays their own industrial buildup-corresponds to List's ideas. see their well-being in savage monetaristic adventures in­ Wendler does mention the economic theorist and politician stead of, as List demanded, concerningthemselves with "the Ma Yinchu, who was already propagating List's ideas in Chi­ growth of the productive powers of the nation." na in the 1920s, as well as Wang Kai Hua, who translated the The book is subdivided into four thematic areas: The National System of Political-Economy into Chinese in 1925 . first is concerned with List's influence upon contemporary List's self-conception, namely to serve both fatherland thinking and statesmen, while Parts 2 and 3 deal with List's and mankind with his ideas, becomes beautifully clear influence upon later economic theorists and statesmen, with through all these examples. For, as Friedrich List said, a particular regard to his influencein Asia. In Part 4, Professor nation's greatest wealth is the intellectual capital of its popu­ Wendler interprets List as the champion of European integra­ lation. And that can only be achieved through contact with tion. This last notion, however, does not stand up to serious the writings of the greatest German economic theorist.

ElK November 10, 1989 Economics 9 Eye on Washington byNicholas F. Benton

The need to invest in 'human capital' fore a small group mostly of fellow Economists are seeking ways to remedy underLying faLLacies economists, reflects a growing move­ Leading to the coming economic crash. ment in Washington driven by the re­ ality of impending U.S. economic collapse. Some have developed con­ cepts such as "human capital," and are calling for adjustments in national in­ come accounting methods as a way of , getting a betterhandle on what it takes Investment in Education and U. S. expenditures of educational institu­ to achieve real, as opposed to ficti­ Economic Growth" was the title of a tions for teachers and other personnel, tious, economic growth. paper delivered by Harvard economist buildings and equipment, and materi­ Those among this current believe Dale W. Jorgenson at a conference of als can be compiled from accounting that three categories should be shifted, the American Council for Capital For­ records. This information can be sup­ as Jorgenson's paper suggested, from mation here in October. Dr. Jorgenson plemented by estimates of the value the "cost" to the "investment" catego­ asserted that investment in one year of of time spent by students and their par­ ries in the national income accounting education---even the below-par stan­ ents as part of the educational process. ledger. Thethree categories are: 1) re­ dard of education currently available Costs of schooling and the value of search and development, 2) educa­ in U.S. schools-contributes more to the time spent by students can be used tion, and 3) national infrastructure. the growth of the U.S. economy, per to measure the flow of resources into They argue that instead of being capita, than any other form of invest­ schools and universities." viewed as net expenses, and therefore ment. He cited a trend among scholars He continued, "While costs of ed­ retarding influences on the growth of to "characterize the benefitsof educa­ ucation are highly significant in eco­ capital in· the economy, these three tion by means of the notion of invest­ nomic terms, the cost-based approach categories should be seen as inputs ment in human capital," noting that to measurement of educational invest­ that will stimulate growth. "this idea captures the fact that invest­ ment ignores a fundamental feature of Failure to view them in this way ment in humanbein gs, like investment the process of education. This is the has contributed to a skewed thinking in tangible forms of capital such as lengthy gestation period between the in Washington, resulting in self-de­ buildings and industrial equipment, application of educational inputs­ feating decisions to cut funding in generates a stream of future benefits." mainly the services of teachers and the these categories, ostensibly in the These benefits, he pointed out, are time of their students-and the emer­ name of economic prudence. Fully a mainly in the form of increased pro­ gence of human capital embodied in third of the nation's roads need repair. ductivity for the economy as a whole. the graduates of educational institu­ Chiseling on investment in such infra­ However, he said, national income tions. " structure will cost the nation countless accounting-the process that gener­ Jorgenson attempted to "present billions in economic output in coming ates the so-called Gross National new data on investment in education years . Failure to build the visionary Product (GNP)--does not take this that will make it possible to analyze "North American Water and Power obvious relationship into account. the impact of educational investment Alliance" water, hydroelectric, and As a result, he said, priorities get on U.S. economic growth." Putting transportation grid in the western skewed. Instead of measuring "the together a lot of detailed data and esti­ U.S., Canada, and Mexico in the contribution of changes in the educa­ mates, including "an estimate of the 1960s, when its plans were first ex­ tional composition of the labor force impact of increases in educational at­ plored by Congress, has already cost to increased output," this factor "is tainment on the lifetime incomes of all the U . S. economy enormously. confounded with a host of other omit­ individuals enrolled in school," Jor­ The basic idea is that it is not near­ ted factors that affect productivity," genson concluded, "Our most impor­ ly as costly to build, as it will be not he said. "The most common approach tant finding is that investment in hu­ to. The same goes for development of to compiling data on educational in­ man and nonhuman capital accounts "human capital" as Dr. Jorgenson said vestment is to measure the inputs, for the largest part of U.S. economic in his paper. But such insights come rather than the output, of the educa­ growth during the postwar period." as far too little, too late unless a crash tional system," he added. "Data on the Jorgenson's paper, presented be- program for their realization occurs.

10 Economics EIR November 10, 1989 Agriculture byMarciaMeny

The Bush pesticide bill procedures needed to remove an ag­ The EPA's newfede ralfood safety billsfollow the "green ricultural chemical from the market from the current four to eight years, agenda" to drastically cut U.S. food production. down to two years. EPA head Reilly said, "We suspend trading in a bad stock quicker than we suspend a pest­ icide." The reception tothis bill in the me­ Amidst great fanfare on Oct. 26, set by this book-endorsed by the dia was to attack it for not going much President Bush and William K. Reil­ U. S. Department of Agriculture-are further to ban farm chemicals. The ly, head of the Environmental Protec­ that farmers around the world must Bush bill prohibits states from passing tion Agency, released a draft bill on forego today's "conventional" farm more stringent rules on pesticide use food safety , setting new regulations orientation to producing plentiful, and presence, than the federal govern­ for the use of pesticides in farming, wholesome food, and instead must ment specifies. Scmate Agriculture and the presence of residues in food . switch to "alternative" low-energy, Committee Chairman Patrick Leahy Prior to the Bush bill came the low-technology farming, to protect (D-Vt.) said, "I believe the states Food Safety Assurance Act (H.R. the environment, and to produce less, should have the right to set tougher 3292), introduced earlier in October but "purer" food . standards on pesticides." by House Agriculture Committee "Less" food is genocide. World­ Several states, especially Califor­ Chairman Kika de la Garza (D-Tex.) wide, less grain has been produced nia, New York, and Massachusetts, and fellow committee members . than consumed annually for three have been moving toward stronger On the occasion of the announce­ years in a row . Grain stocks have been rules than the ones proposed by Wash­ ment of the new administration bill, drawn down to below danger levels. ington, D.C. media magpies were all screeching Domestically, stocks of dairy foods Another issue under dispute in about how the bill didn't go far enough and other vital products are inade­ this "greener than thou" debate to allow states to restrict the use of quate. Farmers are being driven off among policymakers is the permissi­ chemicals in farming and foods. the land. ble level of detectable chemicals in What's all the fuss about? Are The "pure food" craze has been food. The President's plan sets a people falling dead in the streets from initiated and is funded by the major single standard of "negligible risk" unsafe food? international commodities and bank­ for assessing alleged cancer dangers Just the opposite. There is not ing cartel interests who are prepared in raw and processed foods. The enough food , safe or otherwise, for to see millions die to protect their own EPA is to interpret this by guidelines all the people in this nation nor for perceived financialinter ests. This cir­ based on the latest scientific findings. millions abroad. People are becoming cle operates through a front of ecology Federal authorities also have the dis­ sick and are dying from lack of food­ groups, paid to rant and rave about cretion to okay a pesticide if eco­ not from unsafe food. food safety and the environment. nomic and health oonsiderations off­ These new food bills, and all the One ofthe sponsors of the Alterna­ set a risk from tbe substance that media fuss, are part of a "greenie" en­ tive Agriculture book is the Rockefel­ exceeds the "negligible risk" cri­ vironmentalist blueprint on how to di­ ler Brothers Fund. When the book was terion. vert public attention from the domes­ released Sept. 7, its authors stated that Therefore , this is another bone of tic and internationalfood crisis, which most farm chemicals are used only for contention among those wanting to is worsening by the day. "cosmetic" reasons on fruits and vege­ strike a good greenie pose on the pure Congress, the administration and tables-not against pests-and can be foods issue. Rep. Henry Waxman (D­ the media are following a script, prac­ eliminated. This is untrue. The au­ Calif.) and Sen. Edward Kennedy (D­ tically word for word, laid out in docu­ thors also imply that the use of pesti­ Mass.) recently introduced a bill that ments from the radical ecology lobby, cides per se is hazardous to human would set an extreme standard about such as the book, Alternative Agricul­ health. This is also untrue. But truth pesticide residue, and would allow no ture, released in September by the Na­ and consequences do not matter to the consideration of its economic impact tional Research Council (National media or lawmakers. on farmers who are to provide food in Academy of Sciences). The "issues" The new Bush bill streamlines the future.

EIR November 10, 1989 Economics 11 Dateline Mexico by Carlos Cota

The 'Dorian Gray' economic Pact ternational reserves at $6.6 billion, The Salinas governmentseems to think it can keep the Economic less than half of what Mexico had in August 1988. By the end of 1989, the StabilityPact sinning against the economy fo r ever. government is promising inflation of 18-20%, and an internal interest rate annualized at 32%. In fact, inflation by year's end will be above 30%, and Since December 1987 , the Mexican edly denied the new loans, which are the financialwizards are trying in vain economy has been ruled by a series supposed to amount to 30% of the total to keep the interest rate from going of "stability pacts" intended to fight debt renegotiated. The promises of higher than 42% . The galloping infla­ hyperinflation. In December 1988, new funds have not even reached 20%. tion is due to the hushed-up, selective when the Salinas de Gortari presiden­ Jose Angel Gurria, Mexico's debt freeing of the prices of some products, cy began, the Pact was extended until negotiator, was as welcome as a dog in response to pressure from business June 1989 , and then to April 1990. in church when he toured the world circles which are insisting that Mexico The Pact was designed to "freeze" the financial capitals. In Paris, the bank­ has entered the danger zone compara­ economy-prices, wages, and ex­ ers dismissed him with icy skepti­ ble to that experienced by Brazil's change rates-so as to shrink infla­ cism. "Lending money [to Mexico] Cruzado Plan and Argentina's Austral tion. It assumed a reduction in the in­ again doesn't tempt anyone," said Mr. Plan. They say a serious financial ternal interest rate and, if not a reduc­ Vienot, president of France's Societe breakdown and danger of shortages tion, at least a freeze, of the public Generale. Gurrfa was almost run out are imminent. deficit, through reduced public in­ of London, told that the British credi­ The labor unions are demanding vestment. tors "prefer SWAPs," an alternative an end to the wage freeze and emer­ From its results, one could com­ not included in the Brady Plan's three gency hikes in the minimum wage, pare the Pact to the one Dorian Gray options. In Tokyo, even before which fell this year by 7 % with respect made with the devil in Oscar Wilde's Gurria's arrival, the Bank of Tokyo's to 1988. famous story. Gray would stay young president stated that it would be "very Interest rates have entered into the forever and remain as dashing as in a difficultto convince the banks to par­ game of the "financial bicycle," as it portrait a friend painte� of him, but ticipate in new financing." is known in Argentina. If rates are the portrait would grow older and ugli­ According to the schedule set by lowered or kept fixed, capital flight er for every sin he committed. His the Bank Advisory Committee, the goes up. If the rates are raised to stop sudden death would occur when his creditors were to have their answer to capital flight, the pressure rises on the wickedness finallyattacked the one he the "financial menu" presented by the federal deficit and the internal public most loved. Mexican government by Halloween. debt. The Salinas government has com­ Oct. 31 came and went, and the witch­ The government's economic wiz­ mitted so many sins against the na­ es' cauldron of new finances is still ards are aware of their failures, but tional economy that its portrait has fJarelysimmer ing. say they still have one more card up grown shabby indeed, but it seems to Mexican foreign trade has hit its their sleeve, namely, foreign invest­ think the Pact can go on forever, be­ nadir. According to the government, ment. The Trade Secretary has author­ cause it apparently loves no one. imports in 1989 were expected to ized more than $2 billion in direct for­ The whole premise behind the grow 1 1.6%, or $20.7 billion. But im­ eign investment in Mexico. The prob­ Pact was "a successful renegotiation ports have already grown 35% each lem is that only $562 million worth of of the foreign debt," to obtain finan­ quarter, nearly $2 billion above pro­ foreign investment has materialized in cial resources for internal investment. jections. Despite the fact that a serious the firsthalf of 1989 . After two years of "sacrifices," the trade deficit is predicted for the last The Mexican government's own good news promised by government quarter, the government is reporting studies confirm that the "orthodox economic forecasts has disappeared with its usual hoopla that the GNP will programs" of other countries have into thin air. grow 3%. failed miserably in their "final The Brady Plan (the "successful Where will the foreign exchange phases." Nonetheless, the wizards renegotiation") has proven a fiasco. come from to stabilize Mexico? Pri­ hysterically insist, "The Pact will con­ The pri vate creditor banks have repeat- vate sector economic studies place in- tinue at all costs!"

12 Economics EIR November 10, 1989 Medicine by John Grauerholz, M.D.

Can coughing transmit AIDS? ported on. The first coverage of the Some scientists say there'sjust too much evidence to ignore the conference, published in May in the New York Times, only mentioned the possibility of respiratory transmission of HIV. debate between Temin and Lederberg in passing, and gave no details of the actual content of the discussion. In contrast, an Oct. 8 article in the Wash­ ington Post went into the respiratory T he possibility of respiratory trans­ a mutation is not necessary for HIV transmission issue in much more mission of the AIDS virus, HIV, was to be able to infect the lungs. All detail. debated by two Nobel Prize winning that is necessary is that the virus is It is interesting to speculate on virologists at a seminar on virus dis­ delivered to the lungs. This requires why this issue was publicized at this eases held this past May in Washing­ that it be present in aerosolized drop­ time, especially as a number of other ton, D. C. In the course of the seminar, lets that are small enough to be issues in the epidemiology of mass ep­ Dr. Joshua Lederberg, president of inhaled into the lungs, just like tu­ idemics, which had been raised by Rockefeller University in New York berculosis. The monocyte-macro­ Lyndon LaRouche and his associates, City, got into a debate with Dr. How­ phages are present in all body tis­ were also raised in the Washington ard Temin, of the McArdle Cancer In­ sues, including the very superficial Post article, and, to a lesser extent, in stitute of the University of Wisconsin , skin. For respiratory transmission to the earlier New York Times article. on the potential for the AIDS virus to be efficient, as opposed to simply The Post piece, adapted from a mutate to a form which could be being possible, requires a patient or longer article in Science News, was spread by respiratory aerosols, like patients with active HIV lung disease entitled Viruses: The Next Plague? the common cold. who are coughing up infected secre­ and dealt with the more general ques­ Expressing concerns about HIV tions in an environment where other tion of the emergence of new viruses that had been raised in EIR over four persons can inhale the aerosolized which might threaten the human race. years ago, Lederberg cited the fact secretions, just as with tuberculosis. Precisely this possibility was raised by that HIV was now known to infect a Since the virus has been demon­ Lyndon H. LaRouche and a Fusion group of white blood cells, known as strated to infect superficial skin mac­ Energy Foundation task force in a monocyte-macrophages, which are rophages, known as Langerhans cells , 1974 study on the biological effects of particularly abundant in the lungs, and the problem is that it doesn't even the same policies which created the opined that even a relatively minor have to get to the lungs to infect a present economic and financial col­ mutation would enable the virus to di­ susceptible cell. So it is indeed possi­ lapse now under way throughout the rectly infect the lungs, especially ble for it to spread like the common world. Using the LaRouche-Riemann since the virus is already known to cold which infects the upper respirato­ economic model as a starting point, a produce a primary infection of the lun­ ry passages, rather than the lungs. model was developed, predicting non­ ' gs, known as chronic lymphocytic in­ All of this has been known for the linear bursts in the spread of AIDS un­ terstitial pneumonitis (CLIP). last three or four years . In fact, EIR less economic policies are reversed. Temin's response was that if the published a scientific article written It is probably more than just coin­ virus did mutate to a form that could by Dr. John Seale of Great Britain in cidence that LaRouche's analysis of be transmitted by coughing and sneez­ 1985 which documented the possibili­ the biological holocaust, albeit ing, it would be more communicable , ty of respiratory transmission of HIV, phrased in appropriate establishment but would probably no longer cause based on a study by the Pasteur Insti­ terms, is appearing in the media at the AIDS and would simply become an­ tute in France which documented that same time as recognition of the truth other cold virus. When Lederberg ex­ the virus was prsent in the lung secre­ of LaRouche's economic analysis. pressed skepticism, Temin conceded tions of a patient with chronic lymph­ While the physical economic break­ that "anything is possible," but that ocytic interstitial pneumonitis. down is more readily apparent, and he "wouldn't lose any sleep over it." What is perhaps more interesting hence acknowledged, the fact that the Lederberg's rejoinder was, "I'm glad than the question of respiratory trans­ biological issues are also surfacing in­ I worry for both of us, Howard." mission of AIDS, is the fact that the dicates that we are being prepared for It is important to understand that debate itself took place and was re- another dose of unpleasant reality.

EIR November 10, 1989 Economics 13 Business Briefs

Corporatism America, theywill not beable to supply them­ ing plans as the priceof crudedoes ," the Wall selves even with their most basic needs. Street Journal reported Oct. 27. The newspa­ Gorbachov reforms Americans today make money by shufflingit percited Franco Reviglio, chairmanof Italy's around, instead of creating and producing ENI oil company, saying he is looking for assailed as fascist goods with some actual value. sweeping structural change in the oil indus­ "I delivered a speech in Chicago entitled try-"he calls it a 'revolution' requiring huge MatjorieBrady, deputy director ofthe Russian 'Ten Minutes versus Ten Years.' I stated that investmen�as a result of environmental Research Foundation in London, attacked So­ we Japanese plan and develop our business issues." viet leader Mikhail Gorbachov's so-called re­ strategies 10 years ahead. When I asked an I.C. Kerridge, vice presidentof the Hous­ foons,in a commentary, "The Fascist Element American money trader, 'How far do you ton-basedBaker Hughes Inc., whichissues re­ in Perestroika," published in the Wall Street plan?' the reply was '10 minutes'. . . . ports on the rig count, said that the slight in­ Journal Oct. 31. ''The American economy is, then, an creasein rigs engaged in the searchfor oil and Brady wrote, ''The new Soviet economic economy without substance. It must return to gas does not make up for the drop in produc­ and social structures areintended to confoon a real production economy, but a lO-minute tion. In August 1989, therewere 5% morerigs to a model other than that of the market. . . . profit cycle does not permit companies to in­ in operationin theUnited States than in August While Mr. Gorbachov wishes to move away vest in long-teon development. Business, in 1988, thus a small increase in exploration. from some rigid central controls, he is bent my mind, is nothing but 'value added'; we However, in August 1988, U.S. outputaver­ on creating economic structures of a kind that must add value and wisdom to things, andthis aged 8.079 millionbarre ls perday, compared would scarely findfavor with the Austrian or is what America seems to have forgotten-and with only 7.545 million barrels per day in Chicago schools of economic thought. . . . this is the most deplorable aspect of America 1989. Mr. Gorbachov seeks a 'third way. ' today. "The closeness of Soviet perestroikato the "The collapse of the American economy fascist social blueprint of Mussolini was evi­ would cause a worldwide disaster; 1987's dent when Mr. Gorbachov presented his eco­ Black Monday chilled all nations momentari­ Income nomic vision to the Soviet Congress," she con­ ly, I amnot a pessimist,butI cannot help think­ tinued. "Contraryto widespreadbelief, Mus­ ing that unless the Bush administrationhandles u.S. national wealth solini failed to live up to his promiseto make economic issues very seriously, a worldwide the trains run on time; it is doubtful whether collapse is not just a worry, but a very real increase slowing Soviet-style corporatism will make Soviet possibility. " trains run on time, or fillthe shops with goods TheofficiaJ1y tallied increase inU . S. "national that the consumers so desperately crave." wealth" in the 1980s has been increasing at only one-tenththe per capita rate of the 1970s, Oil according to a Federal Reservestudy recently published. Post-Industrial Society Bush signs tough law The decline in the rateof increase is stag­ gering, even with the phony figures used by Sony chairman says U.S. on offshore drilling the Fed-apd iffigures for actualwealth and a real inflation rate were used, there would be economy lacks substance President Bush signed into law tough new re­ a substantial decline . In current dollar teons, strictions on offshoreoil drilling and pre-lease while U.S. domestic net worth, or national Akio Morita, chainnan of Japan's Sony Cor­ preparations activity that will further under­ wealth,has increased over 200% in the last 10 poration, denounced "post-industrial society" mine the ability to produce oil in the United years(1 978-88), "real"wealth-L e., deduct­ obsessions for undermining productive capa­ States. ing for inflation-rose only 18.4% (or only bilities and turning the U. S. economy into an The measure imposes a moratorium on 6.7% perperson) versusan 84% increasefrom "economy without substance," in a new book drilling and explorationoff the coasts of Cali­ 1968-78. Last year alone, the increase in do­ co-authoredwith ShintaroIshihara entitled A fornia, Massachussetts, an area of the outer mesticnet worth was just 1 .4% afterinflation, Japan That Can Say No . Excerpts were pub­ shelf stretching along the Mid-Atlantic states, even lower than the 100year average of lished in the Oct. 29 SundayTimes of London. the eastern Gulf of Mexico, and the Florida 1.9%-versus a 7 .1% increasefrom 1968-78 . "It has been said that America is entering Keys, until a task force conducts studieson the At theend of 1988, U.S. assets abroad to­ a so-called post-industrial society, where the environmental impact of offshoreoil develop­ taled $738 billion, versus $1.3 trillion in for­ weight of the service industry sector is grow­ ment, which could take months to years. eign-owned assets in the United States. Only ing, yet when people forget how to produce "Environmental concernsare beginning to five years before , U.S. assets abroad totaled goods, and that appears to be the case in have as much influence in oil industryspend- $575 billion, versus $503 billion in foreign-

14 Economics EIR November 10, 1989 Briefly

• CITIBANK has agreed to market "perestroika bonds" for the Soviet Bank for Foreign Economic Affairs, according to the Center for Security owned assets in the United States. From 1968 cules" by using a previouslyunknown interac­ Policy in Washington, D. C. The cen­ to 1978, national assets(ad justed for inflation) tion detected accidentally while conducting ter recommended congressional rose 82% or 6.9% per year on average; from otherexperimen ts. hearings on the implications of the 1978-88, they rosejust 13%, or 1 .3% peryear Dr.Jene Golovchenko made the discovery Soviet move, as well as an intelli­ on average. Last year, they rose only 0.5%. in collaborationwith Drs. Michael Bums and gence assessment of the national se­ Jean-MarcFournier of the Rowland Institute. curity risks involved. Previously, the only known method of binding matter involved the exchange of elec­ • THE DEPRESSION of 1990 of­ Environment tronsbetween atoms. This gives rise to forces ficially began on Friday, Oct. 13, that stabilize the matter in everything from 1989, according to Ravi Batra, pro­ Canadian study debunks pencilsto planets. In the new work, laser light fessor of economics at Southern focusedon tiny plastic spheres causedthem to Methodist University in Dallas. "A global warming hoax move toward each other and bond. mild shock in the stock market leads Inexplaining the "binding force ," the sci­ to a big bang in the economy," Batra A teamof Canadian scientistsreleased a study entists said the spheresact like miniature an­ said, adding that the level of debt is in the Oct. 5 issue of Nature magazine which tennae that pick up and re-radiate light. This higher now than in 1987. shows that vegetation in northern latitudes is scattered light combines with that coming di­ not reacting to any "global warming" trend. rectly from the laser, giving rise to forcefields • BUBONIC PLAGUE has killed From analyses of tree rings and growth that bind the small spheres together in space. fivepeople in Botswana and 19 others forms of subfossil sprucesfrom northern Can­ The length and strength of the bonding was have the disease, the official news ada, the authors discovered that at these high controlledby the intensity and wavelength of agency in Baborne reported Oct. 25, latitudes (wheregreenhouse warming should the laser. When the light was turned off, the according to Reuters. be pronounced), the spruce flourishedduring matter returnedto its original random motion, the previous periodsof "global warming," be­ which meansthat light-assembled matter falls • MAURICE ALLAIS, the tween 1435 and 1570. But today they could apart if anentropic reductionin the energy state French Nobel Prize-winning econo­ detect no reaction from the vegetation to an occurs. Dr. Golovchenko has been able to mist, again warned of an imminent allegedly warmerworld. maintain structuresformed by light by freezing world financial crash in an address in Scientist Serge Payette of the Centred'E ­ or by certainchemical methods. Nice, France. "We can have a new tudes Nordiques at the Universite Laval in stock market crash at any moment. Quebecrecords the effectof a series of changes Speculation could be a good thing if over the past 1,000years, indicating a period we were in a situation of monetary of cool weather (1305- 1435), a warmperiod Aerospace stability. But presently it is funda­ (1435-1570) and the littleice age ( 1570-1 850). mentally destructive," he said. Payette says, "Although recent climatic data Indian rocket indicate sustained global warming during this • JAPANESE WAGES are in­ century, no conclusive evidence of a positive test successful creasing, while those in the U.S. are vegetation response to such warming has yet collapsing, ac¢ording to a study by been identified at these exposed tree-line A major milestone in India's space effort was the U.S. Natipnal Bureau of Eco­ sites." crossedOct. 21 when the giant firststage motor nomic Research. From 1979 to 1987, of the Polar Satellite Launch Vehicle (PSL V) earningsof recent high school gradu­ underwent a successfulground test in Andhra ates in Japan increased 13% after in­ Pradesh. flation, while earnings of those in the Science The motor, 20 meters long and 2.8 meters U.S. declined 17%. in diameter, is the biggest ever designed and Atoms bound fabricated in the countryand contains 128 tons • THE FRAUD in U.S. govern­ of solid propellant. It is the third largest solid ment statistics was attacked in a com­ together by light boosterdeveloped in the world. With this test, mentary in the Oct. 29 New York all the propUlsionmodules for the PSL V have Daily News by Irwin L. Kellner, the In a discovery expected to have profound im­ undergone successful testing on sea-level chief economist of Manufacturers plications for science, researchers at Harvard beds. Hanover, who moans that "constant University and the RowlandInstitute have dis­ Developed at the Vikram Sarabhai Space revisions" in statistics make forecast­ covered a way light canbind matterinto mole­ Center, the 44. 18 meter long PSLV is sched­ ing and planning difficult. cules. The scientists formedthe "optical mole- uled for its firstlaunch in early 1991.

EIR November 10, 1989 Economics 15 �TIillScience & Technology

Picowave processingcan safeguardyo urfo od

Those who would delay or prevent the use qfthis technology are condemning millions to unnecessary illnesses and' even death! ResearcherNiel E. Nielson reports.

After more than 30 years of investigation, to a depth of ize (in several ways) upon the lack of understanding of the understanding unprecedented in food processing and food technology by that segment of the public which is distrustful safety, the Food and Drug Administration issued regulations of governmental agencies and/or the scientifically based in­ in April 1986 enabling the use of electromagnetic energy stitutions (both in and out of government)and which chooses at picometer (one-trillionth of a meter) wavelengths in the to believe unsupported sources of information, and processing of foods. The safety of use of this technology has 3) newly formed groups and organizations that have gone been confirmedby everyestablished , recognized, profession­ to legislatures, boards of supervisors, city councils, and so al organization and regulatory agency knowledgeable in mat­ on, with half-truths, with long-since-discredited scientific ters of food safety and the other disciplines concerned with works, with quotations from"authorities" who have already use of this technology. No other food processing technique been discredited, and with publications by authors not recog­ enjoys this level of support for its safety (certainlysuch long­ nized by the respected scientific community-all with the used processes as broiling, toasting, and baking at high heat intention of impeding or stopping the use of picowave pro­ don't, because it is now believed that these processes can cessing of foods. produce carcinogens). No other food processing technique In spite of the overwhelming support by the most respect­ has been so thoroughly investigated ! No other food process­ ed of scientists and organizations throughout the world for ing technique offers the potential for immediately (as its use use of this picowave food processing technology, the groups becomes widespread) reducing the several thousand deaths that would obstruct use of this technology have "sold" some that result annually from"food poisoning," and the thousands elected officials and state legislators and even convinced of cases of distress and incapacitation that occur annually as some legislators, city, county. and state officials, and others, a result of "food poisoning." to sponsor bills, resolutions, and ordinances to create impedi­ Extremely well qualified scientists from many profes­ ments to or even to block the use of this technology. Appar­ sional and governmental organizations have concluded that ently there are officials and legislators so totally ignorant of use of picowaves in the processing of foods would not, in the recognized scientific institutions and the processes they any way, increase risks for consumers or significantly reduce employ in reaching a collective position on matters in which vitamin content in foods. they are expert, that they have "bought" the unsupported In spite of this there have recently been: allegations of the antinuclear activists. In light of the over­ 1) a number of questionable, unacceptably supported, whelming scientificand regulatory agency support for use of publications questioning the safety of using electromagnetic this technology, the efforts to impede the progress of the use energy at picometer wavelengths in the processing of foods; of this picowave processing of foods are at least misguided. 2) organizations formed by persons who wish to capital- In light of the illness, death, and financial loss that could be

16 Science & Technology EIR November 10, 1989 avoided or reduced by widespread use of this technology, the actions of opportunists with any scientific training of significance, who would influence others to prevent its use, are irresponsible. It is the widespread and authoritative conclusion of the Niel E. very cautious, established, recognized scientific communi­ Nielson ty, and the regulatory agencies, that use of this picowave The author was born processing technology on foods will not increase risks for in 1929, has a degree consumers. In addition, there is widespread belief in this in Physical Sciences, knowledgeable, established scientific community that there and has spent most of is strong scientifically undeniable evidence that widespread his professional ca­ use of this picowave processing technology will enable reer as part of, or as very significant improvements in the quality of life for all Chief Operating Of­ of mankind. ficer of, organiza­ This author would think that those who have in good tions and efforts to faith supported the leaders of the opportunistic anti-food bring new scientific developments into practical use. irradiation organizations trying to prevent use of thi,s pico­ For more than 20 years, he has been involved in provid­ wave processing technology would be very angry at being ing the public sector with the means to use electromag­ so badly deceived by those leaders. netic energy at wavelengths of one-trillionth of a meter In congressional testimony given on Nov. 18, 1985, (picowaves) for purposes of improving public health before the subcommittee on Operations, Research and and the quality of life for all mankind. Foreign Agriculture of the House Committee on Agricul­ ture, this author described just how these opportunists and obstructionists use the scientific community's own very thorough and open practices and procedures to twist information contained in scientific publications to suit The expression "food irradiation" is an overly broad, their own purposes. These opportunists use the classic unnecessarily alarming name for the application of any spe­ approaches of half-truths, omissions, out-of-context quota­ cifictype or wavelength of radiation to food. Its literal defini­ tions, and fail to cite any pertinent work except that which tion includes every form of radiation being applied to food, they can use to their own advantage, or fail to cite including effective but safe types (such as electromagnetic discrediting subsequent work or reviews. In short, these energy at picometer wavelengths, which is the principal fo­ opportunists who would impede or prevent the use of this cus of the regulations) , ineffective types (small amounts of picowave processin� of foods are at least dishonest, and visible light), and including dangerous types (exposing foods their actions, even if only partially successful, will bring to high-energy neutron radiations). unconscionable, unnecessary grief, distress, and even death Many more knowledgeable authorities use the expression to citizens of the United States and other nations. "picowave processing of foods" because of its accurate defi­ The purpose of this paper is to substantiate the forego­ nition of the type and wavelength--electromagnetic energy ing, to highlight the important considerations in this (that is, waves) at picometer (one trillionth of a meter) wave­ involved and sometimes complex subject, and to give lengths. some guidance on where to find authoritative information It is important to point out that picowaves can be generat­ to any reader who is seriously interested in finding more ed not only by radioisotopes but also by electronic devices information on any aspect of this subject and in honestly called linear accelerators that have added conversion devices. trying to find the truth. The accelerator is like a giant version of the "gun" in a television set's picture tube, and the conversion device is like The term 'food irradiation' the TV screen which converts the electron energy to light. For purposes of clarification and accuracy, it must be There is not much doubt that this electronic technique for pointed out that the obstructionists worked very hard to have picowave generation will be by far the most widespread in the FDA require the use of the expression "food irradiation" large-scale food processing plants of the future. Now, radio­ instead of "picowaved" in the regulations and the labeling, isotopes cobalt-60 and cesium-137 are the most preval'ent and were successful in having the FDA change the regula­ source of picowave energy. A significantfraction of all medi­ tions already signed by then-Health and Human Services cal disposables and personal hygiene items, for example, is Secretary Margaret M. Heckler in 1986. They have done the sterilized with picowaves using these radioisotopes as the public, as well as the FDA , a very obvious disservice, as this source of energy, today. The disadvantages of these radioiso­ paper will make very clear. tope sources are that they are very limited in availability,

EIR November 10, 1989 Science & Technology 17 they must be disposed of when their usable lifetime is ended, and must be questioned. and they have to be replenished at least annually. In addition, the wavelengths of cobalt-60 and cesium- 137 emissions are What are the facts? fixed and can't be varied. Thus, electronically generated pi­ Here are some of the facts about the use of picowave cowave energy can be considerably more effective in pro­ technology in food processing that are supported by a great cessing pallet loads of goods, since that energy can be pro­ many responsible agencies and individuals throughout the duced with much shorter wavelengths. world (see box on page 22): Most important, the use of linear accelerators to generate 1) There are no repeatable, verifiable, acceptable studies picowaves removes one of the main arguments of the antinu­ concluding that there will be an increase in riskfor consum­ clearobstructionists who make an issue of the use, handling, ers from eating fo ods processed with picowaves!1 transportation, storage, production, and disposal of radioac­ There is one specific example that is constantly repeated tive materials used to produce picowaves in their effort to by the antinuclear obstructionists who allege that picowaved stop the use of this technology in the processing of foods. foods increase risks, despite the fact that this particularexam­ Since this author and most of the processors of the future ple has been discredited by the scientific community. This will be involved only in the use of electronically generated example concernsconclusions drawn in several publications picowaves, this argument will be invalid. (1975 and 1978) on three studies by scientists of the India Those who would obstruct or prevent use of this pico­ National Institute of Nutrition (Vijayalaxmi, Sadasivan, and wave processing technology on foods are saying that they Bhaskaram) which contended that abnormal white blood cel­ have all of the right answers, and that the recognized techni­ ls (chromosomal changes-polyploidy) resulted from a small cal and scientific community, worldwide not only doesn't number of badly malnourished ohildren, monkeys, and rats , know what it is talking about, but also is trying to deceive being fed irradiatedwheat . These National Institute of Nutri­ and poison the world. Obviously, these recognized scientists tion (NIN) studies were proven to be incorrect, mutually and institutions are not incompetent, and it is totally irrespon­ contradictory, and unacceptable by investigations conducted sible of any group to even suggest that such scientists and by a government-convened Committee of Indian Scientists organizations would advocate use of a technology about and by officials from WHO, FAO, and IAEA. Of special which there were any remaining concerns for safety of the significance is that the NIN researchers reported a normal consumer. It must be obvious that the objectives of those chromosomal condition for the children fed the irradiated who would try to prevent use of this technology are suspect wheat, and an abnormal situation for those children fed the

FIGURE 1 PrinCipal elements of the picowave processing centers

Very thick walls of concrete, lead, sand, etc., for absorbing picowaves not absorbed by materials being processed

Source: Niel E. Nielson.

18 Science & Technology EIR November 10, 1989 non-irradiated wheat. 2

2) There is no scientifically supportable reason (whether FIGURE 2 by experimentation or by well-supported theory) to believe Electromagnetic waves that there will be any greater (ifas much) destruction of vitamins and nutrients to result from processing fo ods with Type of Wavelength Some Comparative radiation In Meters Applications Sizes the doses of picowave definedin the FDA 's regulations than will result from use of various common practices. Examples of such common practices include letting fruit juices be ex­ posed to light from essentially any source for a few minutes, Radio waves 103 heating essentially any food (whether in ovens, pans, or AMradio pots), boiling essentially any food, heating processes neces­ FM radio sarily employed in many fumigation practices and proce­ Man TV dures, or letting fruit dry/cure in sunlight. In other words, J "Microwaves" Microwave* cooking picowave processing will not do as much to reduce the the { 3 } 10- Radar nutritional content of foods as is now being done by common { COmmunications Infrared Broiling cooking, canning, or disinfestation processes. 3 Visible light 10-6 Photosynthesis Bacteria 3) Both the obstructionists and the knowledgeable scien­ CD ." tific community know that there is no absolutely safe fo od C " Ultraviolet Sun-drying/curing Atoms known to exist. Therefore, in spite of the obstructionists' a:: 10-9 c devious writings suggesting that the picowave processing of 0 ;: fo ods should be proven absolutely safe , " X-rays \ they know that the '0-" } ;; Irradiation processing proof they purport to want can never be realized. Anyone " a:: Gamma rays Picowaves (.12-2x 10-12 who has taken the time to study this subject of food safety ." meters) c 10-15 will have studied the excellent, updated publication by the N C National Academy of Sciences "Toxicants Occurring Natu­ .2 Cosmic Rays rally in Foods" (ISBN 0-309-021 17-0) and will have already FIGURE 2a concluded that the proving of absolute safety in foods is an Scientific notations impossible objective.4 3 1 X 10- = one-thousandth milli- Further insight into this food safety question can be real­ *Misnamed by today's standards 6 1 x 10- = one-millionth micro- -should be milliwave. 9 ized by reading the publication resulting from congressional 1 x 10- = one-billionth nano- 12 hearings on the subject. The Senate Agriculture Committee 1 x 10- = one-trillionth pico- held hearings on this subject of food safety in 1979 and 5 published "Food Safety: Where are We?" in July 1979. Source: Niel E. Nielson. This document should be studied by anyone interested in establishing a true perspective in matters of food safety. From another viewpoint, annually there are significant Furthermore, the credentials of the "experts" used by numbers of people who are made ill, seriously ill, and even these obstructionists are suspect. For example, one of the killed as a result of complications resulting from ingesting antinuclear "experts" most frequently quoted is one Dr. John bacteria and microbesin foods. 6 In the briefest of summaries, Gofman, who has advocated these multi-year studies. Here the United States enjoys some of the safest food in the history is how Judge Patrick F. Kelley of the U.S. District Court in of mankind, but it is not absolutely safe, and probably never Kansas characterized Gofman in a I SO-page decision that he will be. Those who would obstruct use of this picowave food wrote after 42 days of testimony by 53 witnesses, 5,400 processing technology fail to tell those who will listen to pages of trial transcripts, and 10 months of study: "This Court them about the truth and perspectivesin food safety, and hope does find that Dr. Gofman's dramatic conflict with all of the to block the use of the technology by having an uninformed world's experts creates a bias in him which destroys his populace insist upon absolute safety. credibility as an expert witness in radiation cases. His obses­ 4) Another fo cus of those who would obstruct use of this sion blinds his obj ectivity." picowave processing technology on fo ods concerns "ex­ 5) There are no Unique Radiolytical Products (URPs) perts" who advocate long-termfeeding studies (that is, those produced by picowave processing of fo od to be ingested by more than 20 years) using human beings. Obviously, there consumers, ifby unique is meant that they are not already would be no way, in a free society, of having such rigorous contained in the air, fo od, and water we routinely ingest. controls and tests on thousands of individuals for large frac­ The allegation that the obstructionists often make is that there tions of their lives. This condition, therefore, could never be are such URPs-unique chemical forms being produced by met. picowave processing of foods.

EIR November 10, 1989 Science & Technology 19 The FDA, years ago, defined URPs as products that are close to one-millionth of a meter in wavelength. They go not in the foods prior to "irradiation." This FDA definition through all of the successively s�orter wavelengths of elec­ of URPs has caused them many hours of explanations, since tromagnetic energy, including the shortest of the ultraviolet there are no chemicals produced in foods by "irradiation" wavelengths (0.013 millionths of a meter) , the industrial and that are not already being ingested by mankind, routinely, medical x-rays (approximately 200 trillionths of a meter in either because they are naturally found in some foods, or wavelength), and into the shortest portion of the safely usable because they are the result of chemical changes caused by electromagnetic spectrum, the picowaves, which include x­ cooking, preservation, drying, or curing. rays and gamma rays at almost precisely 1 picometer wave­ Anyone knowledgeable in food safety matters knows that lengths. it is impossible to put any significant amount of energy into In terms of food processing with "ionizing radiation," foods without causing chemical changes in the foods. All one must realize that broiling over hot coals or under glowing forms of energy, all cooking, all drying/curing, and so forth, elements, toasting, and sun drying and curing are excellent cause very significantchemical changes in foods, including examples of processing foods with a great deal more "ioniz­ "destruction" of vitamins. With picowave processing, very ing energy" than processing foods as the FDA's regulations small amounts of energy are put into the foods, with the would permit using picowaves. result that very small amounts of vitamins are changed. 7 We can gain perspective in the amounts of ionizing radia­ The amount of chemical change is almost always in direct tion already being applied to foods in the oldest, and most proportion to the amount of energy put into the foods. widespread, worldwide food preservation technique when The energy equivalent to that allowed to be put into foods we consider use of the Sun's ionizing radiations in the curing 8 within the FDA's "food irradiation"regulations is extremely of foods after harvest. It is a fact that 5% of the Sun's rays small when considering any other processing of foods (that that reach the Earth's surface are ionizing radiations in the

is, 100 kilorads = 1 kilogray is approximately equivalent to ultraviolet spectrum. It is also a fact that during the warmer one-half BTU: One BTU is the energy required to raise one six months of the year (in central California) the amount pound of water one degree Fahrenheit). It is easy to see that, of solar energy reaching the Earth's surface is something among the other ionizing food processes, pasteurizing milk considerably more than 2,000 BTUs per square foot, per subjects foods to more than 200 times as much equivalent day.9 energy, as picowave processing at 100 kilorads does. Baking From these facts, it is easily calculated that foods absorb foods at 350°F subjects foods to more than 600 times as much megarads (millions of rads) of ionizing radiation when left energy; microwave cooking subjects the interior of the foods in the Sun for days for curing and drying (the ionizing ultravi­ to more than 200 times as much energy to achieve the same olet radiation from the Sun kills the exposed microbes and degree of microbial kill; and charbroiling subjects the surface causes the ionizations that result in the chemical changes). It of the foods to much more than 1,000 times as much energy. is important to note that the "skins" of living plants and It is easy to understand why proceising with picowaves pro­ animals selectively "shield" the, interiors from the harmful duces far fewer chemical changes than does any of the other ultraviolet radiations, and thus foods processed with the ionizing heat-employing processes. Sun's ionizing ultraviolet radiations must be opened up or Another perspective can be realized by calculating the have the skins removed, in order to allow the ultraviolet to theoretical number of molecules in foods that would be af­ reach the interior of the foods. fected by l00-kilorad doses of picowaves. A prominent re­ To complete this understanding of "ionization": a) the searcher in radiation chemistry and physics at the University term simply means the addition

20 Science & Technology EIR November 10, 1989 who would attempt to frighten the public with unfamiliar thousands of deaths per year, in the United States alone, terminology, fail to tell the public about these true perspec­ by routine processing of a great number of foods with this tives in "ionizing radiations" and to explain to those who will technology. listen to them what ionizations are. The USDA, the U.S. Centers for Disease Control, and Because of more than 30 years of intense study and hun­ others have published the results and statistics of studies dreds of millions of dollars invested in those studies and of the incidence of infections resulting form eating foods research by highly qualifiedscientists in academia, industry, containing the more frequently encountered disease-causing and regulatory agencies worldwide, it is a fair statement to bacteria and parasites. The USDA has attempted to assign a make that the scientific community knows more about the dollar value to the cost to the nation's citizenry for the infec­ chemistry and microbiology of processing foods with pico­ tions of these food-borne diseases, and the number is in waves than it does about processing foods with any other the range of $1 to $10 billion annually, without taking into technology, including all of those commonly used by indus­ consideration the costs of the human suffering involved. try,commercial kitchens, and domestic kitchens. From all of In terms of the diseases salmonellosis, campylbact­ this study and research comes the learned consensus among eriosis, toxoplasmosis, and trichinosis, the statistics and pro­ those truly knowledgeable in this field, that there is no reason jections can be summarized as follows: 12 to believe that there will be any increase in risk for consumers Mild cases= >4 million cases/year of foods processed with picowaves under regulations issued More acute, or very serious = > 140,000 cases/year by FDA . Deaths = >4,500 cases/year. Three factors are important to understanding just how Decrease in illness and death routine processing of foods with picowaves could materially But there is more! In addition to knowing with the highest reduce the incidence of disease and even death from a too possible certainty that there is no reason to believe that there high count of disease-causing bacteria and parasites in the will be any increase in risk from eating picowave processed foods, in the United States alone: foods, it is also widely known in the scientific community 1) Most of the bacterial infections that occur are caused knowledgeable on this subject that there is great promise held by organisims with 90% kill sensitivities of much less than for reducing risks for consumers from food-borne disease 100 kilorads (l kilogray) of picowaves (the upper limit for (both serious and inconveniencing) and even for preventing most foods as defined in the FDA regulations.)

NEW JERSEY IS THE MOST fOLLUTED... THE HOST CONTAMli'I'\1Ell... 1HE MOST AJPULATED 51ATE. MUST WE NOW EAT HAZAROOU5 fOQD tll..SO ?

Free fo od distribution in Washington, D.C. The already dwindling fo od supply is under fu rther attack fr om groups 5preading hysteria against picowave fo od processing . such as the one that circulated this leaflet (inset) in New Jersey. targeting afood irradiation plant. Are you gullible enough to let the anti-nuclear fr eaks ready a hungryfu ture fo r your fa mily?

EIR November 10, 1989 Science & Technology 21 WHO: World Health Organization F AO: Food and Agriculture Organization Whois backing IAEA: International Atomic Energy Agency food irradiation? AMA: American Medical Association CAST: Council for Agricultural Science and Tech- nology Some of the institutions, organizations, and agencies 1FT: Institute of Food Technologists which have gone on record with conclusions to the effect ACSH: American Council on Science and Health that there will be no increase in risk for consumers from NAS: National Academy of Sciences "irradiated" foods include the following: NSF: National Science Foundation FDA: The U.S. Food and Drug Administration, and NIH: National Institutes of Health (another branch of in this matter, especially, the Center for Food Safety and FDA) Applied Nutrition (formerly, the Bureau of Foods). FDA R&DA: Research & Development Associates is part of the Public Health Service, a division of the NFPA: National Food Processors Association Department of Health and Human Services, and under the CFI: Coalition for Food Irradiation Federal Food, Drug and Cosmetics Act, has jurisdiction AIF: Atomic Industrial Forum on the applications of radiation to the processing of foods. CRA: Committee on Radiation Applications USDA: U.S. Department of Agriculture, especially ESNA: European Society for Nuclear methods in the Food Safety Inspection Service (FSIS) Agriculture EPA: Environmental Protection Agency OSTP: The President's Office of Science and Tech­ NFS: National Fisheries Service, within the U.S. De­ nology Policy partment of Commerce ANS: American Nuclear Society

2) Most of the parasites (for example, trichinae and other of unwanted post-harvest chemical additions to the foods for worms) are made incapable of reproduction and thus incapa­ insect disinfestation, but they still do not allow the higher ble of causing problems in human beings with doses of much doses or applications to meats, poultry, or fish and seafoods less than 100 kilorads of picowaves. (although petitions for these are reportedly now in the 3) Most of the bacterial infections require some minimum works), which will be necessary for this technology to reach number of infecting organisms to be present (that is, salmo­ its full potential in terms of improvements in public health nella are beliexed to have to be in concentrations of approxi­ and in the quality of life. mately 10 cells per gram of food) before a normally healthy Still another public health benefit, and reduction in risks person's immune system cannot prevent discomfort or seri­ for consumers from eating foods, comes from the ability to ous illness, or death. use this picowave food processing technology to control the 4) Most food contaminations are in low enough concen­ post-harvest movement of insects from one region to another, trations (that is, number of cells per gram) that a greater than thus reducing the need to disinfest the fresh fruits and vegeta­ 14 90% kill of those bacteria present would reduce the incidence bles by using chemical fumigants. Further reductions in of disease by very significant numbers. chemical additives such as nitrites to the foods could result 15 One conservative, highly respected European scientist from use of pic ow aves in preservation processing. and researcher in food irradiation makes the statement in a paper dated May 1986, "Extensive literature supports the Summary conclusion that radiation treatment at doses that do not cause From all of these studies and authoritative conclusions, unacceptable changes in organoleptic qualities can effective­ by recognized scientists and institutions throughout the ly eliminate potentially pathogenic non-sporing bacteria world, and the many references each of these publications from red meat, poultry and fishery products under normal makes, the following obvious conclusions can be drawn: commercial conditions for products which are marketed in 1) There will be no increase in risk for consumers as a ,, both fresh and frozen stage. 13 result of eating picowave processed foods! The FDA regulations issued on April 18, 1986 concern­ 2) Those who would delay or prevent the use of this ing food irradiation are extremely well supported by the sci­ picowave processing technology on foods are condemning a entific community, but still are drafted with an ultra-conser­ statistically significant number of people in the United States vative approach to use of this picowave processing technolo­ (and in the many other nations of the world who use the gy. The regulations will allow a reduction in the quantities FDA's food laws as their own) to unnecessary distress, ill-

22 Science & Technology EIR November 10, 1989 nesses, and even death! Tour the 3) In order for anyone to not agree with the preceding Solar System two conclusions, they must believe that the established, most highly respected scientists and scientific institutions in the Year-round world are incompetent and do not know what they are talking with about. Such a belief is obviously an absurdity, and thus it 21st CENTURY'S must be concluded that: These people who are working to 1990 Calendar obstruct or prevent use of this picowave processing technolo­ gy on foods must have objectives which have nothing to do 12 beautiful fo ur-color illustra tions with real, actual improvements in public health, improve­ of the planets and their moons, 8 1/2 x 11" ments in environmental health, and/or improvements in the quality of life for all of mankind, since all of these benefits $10 each 2 fo r $15 3 fo r $20 (postpaid) are sure to be realized by widespread, expanded use of this For fo reign orders, add $2 per calendar. Foreign payment picowave processing applied to foods! must be an international draft only.

Enclosed is $__ fo r __ copies of 21st Century's Notes 1990 calendar. 1. See the World Health Organization, Food and Agriculture Organization, ______and InternationalAtomic Energy Agency's joint pUblication, "Wholesome­ Name ness of Irradiated Food," WHO publication Technical Report Series 659, Address ______WHO, 1981. See also the U.S. FDA's Rules and Regulations publication in the Federal Register, Vol. 51, No. 72, "Irradiation in the Production, Processing, and Handling of Food"; Final Rule, April 18, 1986. ______2. "Wholesomeness of Irradiated Foods: A Review ," by Ari Brynjolfsson, City State Zip Department of Biological Sciences, Massachusetts Institute of Technology , Make check or money order payable to : April 1985 . 21st Century 3. See the aforementioned FDA and WHO publications, and their several Dept. E, P.O. Box 65473 references. Washington, D.C. 20035 4. See the aforementioned FDA publications of April 1986 and December Telephone (703) 777-7473 1988. 5. Stock No . 052-070-050232-3. 6. See the FDA's "Workshop on New Microbiological Concerns," April 8- 9, 1986. A presentation abstract is available from FDA, Center for Food Safety and Applied Nutrition. 7. See the FDA's aforementioned April 18, 1986 and Dec. 30, 1988 publica­ CONS(JLTING tions in the Federal Register; see the WHO 1981 publication "Wholesome­ ness of Irradiated Food"; see "Nutritional Aspects of Food Irradiation: An ARB 0RlST Overview ," by E.S. Josephson, M.H. Thomas, and W.K. Calhoun, MIT, Dec. 18, 1978. Available to Assist in 8. See the FDA publication of April 18, 1986. 9. See ASHRAE Handbook of Fundamentals, and "Input Data for Solar The planning and development of Systems ," a U.S. Department of Commerce National Climatic Center publi­ cation, 1978. wooded sites throughout the continental 10. See "Preservation of Foods by Ionizing Radiation," E.S. Josephson United States as well as and M.S. Peterson, eds., sections by Simic, M.O., Taub, I.A., and other sections, CRC Press, 1983. See also, "Wholesomeness of Irradiated Foods: A Review" by Ari Brynjolfsson, the aforementioned FDA pUblications, and The development of urban and the many references in all of these publications. suburban planting areas and 11. See "Chemiclearance of Food Irradiation Process: Its Scientific Basis," by A. Brynjolfsson, a reprint from "Combination Processes in Food Irradia­ tion," published by IAEA, Vienna, 1981; "Radiation Chemistry and Radia­ The planning of individual tion Preservation of Food," by Irwin A. Taub, Journal of Chemical Educa­ homes subdivisions or tion, Vol. 58 No. 2, February 1981; "Radiation Chemistry of Major Food industrial parks Components ," by Elias and Cohen, Elsevier/North Holland Biomedical Press, ISBN 0-444-4 1587-4, as updated, original copyright in 1977. 12. See "Food Irradiation: New Perspectives on a Controversial Technolo­ gy," by Morrison and Roberts, Economic Research Service, USDA, De­ cember 1985, prepared for the Office of Technology Assessment, the U.S. For further information and availability Congress. please contact PerryCrawford III 13. J. Farkas, Central Food Institute, Budapest, Hungary, "Disinfection, Including Parasite Control of Dried, Chilled, and Frozen Food by Irradi­ ation." Crawford Tree and Landscape Services 14. See EPA's RPAR listings and attendant reports. 8530 West Calumet Road 15. See paper 8.2, "The Use of Irradiation to Reduce or Eliminate Nitrite Milwaukee, WisconSin 53224 in Cured Meats ," by Eugen Wierbicki and Ari Brynjolfsson, U.S. Army Natick R&D Command, 25th European Meeting of Meat Research Workers , August 1979.

EIR November 10, 1989 Science & Technology 23 TIillFeature

Bankruptcyju dge: U. S. acted illegally against LaRouche

"It's springtime in November for the LaRouche political movement," announced Warren J. Hamerman, the chairman of the political action committee of the LaRouche wing of the Democratic Party , at the National Press Club in Washing­ ton, D.C. on Nov. 2. He was commenting on the ruling by a federal bankruptcy judge, exactly one week earlier, that threw out as illegal , the involuntary bankrupt­ cies initiated by the U.S. government against three publishing and distribution companies associated with former presidential candidate Lyndon H. LaRouche, Jr. on April 21 , 1987. "The bankruptcy action taken against Campaigner Publications, Caucus Dis­ tributors , and the Fusion Energy Foundation two and a half years ago was the first junction on the LaRouche railroad," Hamerman stressed. On Oct. 25, 1989, Judge Martin V.B. Bostetter dismissed the bankruptcies, finding that the government had committed fraud, and acted in "bad faith" in the action . The ruling came 15 months after a trial in Judge Bostetter's court in early May 1988. Lyndon LaRouche was reported to have commented on the Bostetter decision, that although it comes two and a half years late, "it is.important not only for us"­ the LaRouche political movement-"but also for the country. It means that the principle of law can still be defended ." Warren Harnerman told the press, that attorneys are now in non-stop planning "about how to take this victory and press forward to reverse all the unlawful atrocities that happened to LaRouche and his supporters . " Attorney David Kuney, who represented Campaigner, Caucus, and Fusion in the case, also addressed this Washington press. conference. Speaking as a professor and as a bankruptcy practitioner, he said, "This is a great victory for the entities involved, and for the legal system and the bankruptcy system," and he hailed the 106-page decision by Judge Bostetter as both "j udicious" and "courageous."

24 Feature EIR November 10, 1989 The "Get LaRouche" taskforce has received its firstmajor defeat in the courts. Shown here are some leading operatives of the taskforce: (left to right) Boston FBI agent Richard Egan; U.S. Attorney Henry Hudson of Alexandria, Virginia; William Weld, who as U.S. Attorney in Boston started the fe deral prosecution of LaRouche, befo re being transfe rred to head the Criminal Division of the Justice Department; Chief Judge Albert V. Bryan; Jr., of Alexandria , who boasted that he "should have gotten a cigar" fo r railroading through the December 1988 criminal conviction of LaRouche and six associates.

"Were it not for the bankruptcies, not only would Lyndon Bryan ordered that these facts of financial warfare and the LaRouche and six others, who have now served over 300 bankruptcy not be revealed to the jury, both the prosecutors days in jail, never have been imprisoned, but they would and that judge knew the indictment and prosecution were one never have been indicted in the first place ," Hamerman , the giant lie. Judge Bryan knew it was all a big lie," LaRouche chairman of the National Democratic Policy Committee, had written. pointed out. As for the other LaRouche associates being tried for alleged fraud in New York and Virginia, and other Hudson's bad faith trumped-up' cases hinging on the failure of the LaRouche Judge Bostetter has determined that the forced bank­ political movement to pay debts after the companies were ruptcy was an unlawfu l act, in "bad faith ," conducted by bankrupted, Hamerman asserted , "they would never have U.S. Attorney Hudson, who knowingly perpetrated a fraud gone to trial ." on the court on April 20, 1987, Hamerman announced. He pointed to a passage in the book Railroad! U.S.A . Twice in the ruling, on page 14 and on page 42, Judge vs. Lyndon LaRouche, et al., part of the preface written by Bostetter wrote that he found Hudson's admission , as a LaRouche from prison in June 1989, which pinpoints the role U.S. Attorney, that he knew there were more than 12 of the bankruptcy in the frameup: "In April 1987, Alexandria creditors involved, to be a crucial fact. Technically, this U.S. Attorney Henry Hudson sent his minions to padlock would require that at least three of the creditors would the doors of the three firms, and to cut off all further repay­ have to bring the request for involuntary bankruptcy, but ment of these firms' creditors . This action by Henry Hud­ the U.S. government ignored this requirement and, with son's section of the 'Get LaRouche' strike-force, was carried what Hamerman described as "unparalleled arrogance of out through Chief Judge Albert V. Bryan , Jr.-'s Eastern power," moved alone to have the companies closed down, District of Virginia Federal Court; Bryan , who personally put under interim trustees, and all operations ceased for supported that bankruptcy, knew that the prosecution's in­ two and one-half years. dictment was a big lie. In the lengthy footnote 25, on page 42, Judge Bostetter "On Oct. 14, 1988, Henry Hudson presented an indict­ supplied the court record of a number of such admissions by ment of LaRouche and six others in Judge Bryan's Eastern Hudson and his office, and concluded: "On the basis of the District of Virginia, accusing LaRouche and these six others above, the government's actions could be liken[edl to a con­ of intending, during as early as 1983-84, to bring about that structive fraud on the court, wherein the court may infer the non-repayment of personal loans which Henry Hudson and fraudulent nature of the government's conduct." (See p. 28 Bryan's District Court caused to occur on April 21 , 1987. below for text.) When Hudson's office prosecuted the indictment, and when Hamerman said that another individual whose miscon-

EIR November 10, 1989 Feature 25 duct stands exposed by the decision is U.S. District Judge if the bankruptcy had not occurred." Albert V. Bryan. Bryan was told by the companies targeted He promised, "This decision will have a tremendous for the forced bankruptcy, that he was the more appropriate effect on the appeals for the defendants" in the Alexandria judge to hear the constitutional issues involved, including case, which is currently before the Fourth Circuit Court of the potential violation of the Fifth Amendment protection Appeals. against self incrimination, the companies were targets of a federal criminal investigation before the bankruptcy occur­ Vindication red. But Bryan said that the bankruptcy proceeding should "Lyndon LaRouche and his politicalmovement have con­ stay in bankruptcy court, and that it was in good faith. stantly said, especially over the past half-decade, that the Then, in the criminal case, the same Judge Bryan granted federal government of the United States has engaged in an a pre-trial in limine motion presented by the government, unlawful series of actions to put a political movement out of which excluded from the trial all mention of the U.S.-insti­ business," Hamerman noted. "I am overjoyedthat this press gated forced bankruptcy. Thanks to this motion, "the defen­ conference is taking place in the First Amendment room of dants were forced to lie in court about the bankruptcy, by the National Press Club, because Judge Bostetter's decision not being allowed to say the government bankrupted defends, by implication, a basic constitutional principle. A them," Hamerman pointed out. "Hudson cleverly shaped scientific association and a national newspaper were put out the indictment to end on April 19, 1987"-two days of existence simply because of their political agreement with before the bankruptcy-he went on, but "there is no way Lyndon LaRouche's ideas." that LaRouche and his friends would have been indicted Although the First Amendment issue was not explicitly

after the trial by attorneys for the three companies. These provided a documented, detailed, step-by-step description of how the U.S. Department of Justice planned and carried out the involuntary bankruptcy, in which every proposed finding is documented by reference to testimony or other 1987 bankruptcy:first evidence adduced at trial . The central argument presented is that the bankruptcy­ stop on therailroad a civil proceeding-was actually conducted as part of the government's criminal prosecution against the LaRouche Thefollowing is adaptedfrom the opening section of Chapter movement. The involvement of the Alexandria prosecution 2 of the book, Railroad! U.S.A. vs. Lyndon LaRouche et al. team-U.S. Attorney Henry Hudson, Assistants Kent Rob­

(Washington. D.C.• 1989), pp . 219-251 . inson and John Markham, and FBI agent Tim Klund-in the planning and execution of the bankruptcy, is documented To understand the Alexandria case, it is first necessary to from the evidence presented at the bankruptcy trial. understand the government's unprecedented use of an invol­ Prosecutor John Markham confirmed the truth of this untary bankruptcy against the LaRouche political movement. argument when he subsequently declared that the bankruptcy This was the opening shot of the Alexandria trial. First, had helped to accomplish the prosecutorial objectives of the the Alexandria U.S. Attorney shut down three publishing government. Shortly after the Alexandria convictions the companies, operated by associates of LaRouche, throwing Boston U.S. Attorney submitted a motion to Judge Keeton over a hundred employees out of work and freezing the busi­ in Boston seeking to dismiss the Boston indictment. In addi­ ness's debts. This action was upheld by Judge Albert V. tion to the Alexandria convictions of LaRouche, Spannaus Bryan. Then, the very same U.S. Attorney indicted La­ and Billington, and over 20 other indictments, he cited the Rouche and six associates for not repaying the companies' shutdown of Campaigner Publications, Caucus Distributors, debts-the same debts which the companies were legally and the Fusion Energy Foundation as evidence of "the inter­ prohibited from paying! And then Judge Bryan ordered the ests of the United States in effective law enforcement having defendants to lie about what had happened in the bankruptcy. thus been served from the point of view of both deterrence Three court documents summarize the facts of the and punishment." Later in the same memorandum, under bankruptcy. One is Judge Bryan's July 15, 1987 order on the section captioned "Deterrence Has Been Achieved," the the bankruptcy. The second is the opening section of the argument says: "Three . . . of those entities have been placed pre-trial brief filed by attorneys for the three victimized in bankruptcy and their assets have been seized." Campaign­ companies. This memorandum was filed just prior to the er and Caucus had been indicted in Boston. All three were trial of the bankruptcy case, which ran from May 4-9, targets of the Alexandria grand jury investigation at the time 1988. The other is the "Proposed Findings of Fact" filed of the bankruptcy.

26 Feature EIR November 10, 1989 raised in the bankruptcy trial, the illegal federal action shut 'Courageous, scholarly decision' down New Solidarity newspaper and Fusion magazine, each "Judge Bostetter has made a courageous and scholarly of which served over 100,000 subscribers. Judge Bostetter decision," attorneyDavid Kuney said. "He had to resist tre­ did rule that the Fusion Energy Foundation and Caucus Dis­ mendous pressure by the government, which was asserting tributors, Inc. cannot be the subject of an involuntary bank­ that because the cited companies were linked to someone ruptcy proceeding. As "eleemosynary" institutions, whose they considered a 'political extremist, ' they are therefore not primary purpose was the dissemination of educational ideas entitled to the protections of the Bankruptcy Code. and political views, they are not "truly commercial in na­ "The government will probably defend itself by saying ture," the judge wrote. they lost on a mere technicality," Kuney went on. In fact, It could be called poetic justice, Hamerman remarked, in his public statements after the decision, U.S. Attorney that Judge Bostetter cited precisely the same paragraph from Hudson has tried to present it in that light. "But the three an internalmemorandum that had been repeatedly used in the creditor requirement is not a technicality; it is what prevents trials against LaRouche and his associates to chargefrau d, as the oppressive use of the Code." evidence that "the debtors strived moreto expose the world Moreover, Kuney pointed out, Judge Bostetter also found to its political viewpoint than attain private monetary gain. that the government failed to fulfill anotherrequirement of While the governmenthas alleged that their methods of fund the Bankruptcy Code, as it failed to prove its contention that raising were reprehensible, that alone does not change the the three companies were not paying their debts. debtors' status and provide the appropriate basis for the invo­ Also, although Judge Bostetter made an "almost academ­ cation of this Court's jurisdiction." ic" distinction between the "objective" and "subjective" bad

Involuntary bankruptcy they exercised their Fifth Amendment right not to testify, A word of explanation, as to how an involuntary their silence could be used against them-and the compa­ bankruptcy proceeding works, is in order. It is normally nies-in the civil (bankruptcy) proceeding. This issue, initiated by a petition of three or more creditors, and is among others, came before Judge Bryan. opposed by the "alleged debtor"-called "alleged" because Bryan was an active participant in the bankruptcy pro­ the allegations of the petitioning creditors that the debtor ceeding, fullyaware of what the governmentwas doing, and is insolvent must be proven in court. It is an adversary indeed, approving it. The Bankruptcy Court in which the proceeding , operating like a civil case, with pre-trial case was brought is part of the Eastern District of Virginia discovery and a trial. Normally, only after the debtor is federal court, where Bryan is the Chief Judge. He personally proved insolvent (either through summary judgment, or at made two rulings in the bankruptcy case. (Decisions of a trial) is the debtor company liquidated. Bankruptcy Judge, like decisions of a U.S. Magistrate , are Here, in a highly unusual procedure, the three alleged first appealed to the U. S. District Court before going to the debtor companies were seized and shut down before any Court of Appeals.) trial; Bankruptcy Judge Martin V.B. Bostetter ordered the The first motion before Bryan was to appeal the April companies padlocked in a secret, ex parte proceeding, of 20-21 ex parte order and seizure. The grounds for appealing which .the companies had no notice. Judge Bostetter's order included the secret ex parte nature At the May 1988 trial , the chief arguments made in oppo­ of the proceeding, and the fact thl1t the U.S. government sition to the government's petitions were: was exercising prior restraint against these companies' First 1) that the procedure was illegal because there was only Amendment rights to publish. The hearing was so secret that one petitioning creditor (the United States government), not it was not even stenographically recorded as is standard three as required by law; operating procedure. Judge Bryan denied the motion. 2) that the petition was brought in bad faith, and for an Later, attorneys for the debtor companies sought to uti­ improper purpose; lize a provision which allows the entire case to be "removed" 3) that two of the three debtor companies were non­ to federal court, when important legal or constitutional issues profit organizations, therefore not subject to an involuntary are involved. This motion was also heard by Judge Bryan. bankruptcy. The major argument for removal was the constitutional con­ A critical aspect of the bankruptcy proceeding was the flict created by the efforts of the U. S. Attorney to compel government's efforts to use it to extract and compel testimo­ testimony of company officersin the bankruptcy proceeding, ny fromthe officersof these companies. Many of the officers at the same time the U. S. Attorney was conducting an active were already under indictment, and all were under investiga­ grand jury investigation of those same companies and indi­ tion by Hudson's office. Because of the pending criminal viduals. Judge Bryan denied the motion for removal on July proceedings their lawyers all advised them not to testify 10, 1987, saying he would consider the matter anew if it when the government tried to take their depositions. But if later became a problem.

EIR November 10, 1989 Feature 27 faith of the government, ruling that he did not have the evi­ Inc. ("Campaigner"), and Fusion Energy Foundation, Inc. dence to impugn the U. S. Attorney's intentions, the entities' ("Fusion"). The involuntary petitions, which request relief contention that the governmentdid act in bad faith was vindi­ under Chapter 7 of the United States Bankruptcy Code ( ..th e cated. Code"), were filedon April 20, 1987 ....The United States Mr. Kuney said that he was evaluating the decision also based the petitions upon claims outstanding against the debt­ from the standpoint of a professor of bankruptcy law (he is ors totaling approximately 16.,million dollars. The claims Adjunct Professor of Law at American University in Wash­ c'onsisted of contempt fines imposed upon the debtors for ington). He answered affirmatively when asked whether he their failure to comply with grand jury subpoenas. The Unit­ thinks this ruling may become a "classroom text." It "will ed States filedthe petitions as a sole petitioning creditor and become a leading, seminal decision." did not make reference to the total number of creditors of "They shut down three companies for two and a half each debtor. years, and put them under interim trustees. Can the govern­ Upon the denial of two motions for dismissal , answers ment now just walk away and say, 'We're sorry?' " to the petitions were filedon June 25, 1987. The government Attorney Kuney was asked whether he believed the gov­ then filed a motion for summary judgment in each case. ernment will appealthe Bostetter ruling. He replied that Hud­ Afterthe filingof the debtors' answers but before the Courts' son has said that they will, "but I do not think they will." disposition of the motions for summary jUdgment, creditors intervened in each of the petitions, bringing the number of Hudson should be investigated petitioning creditors to a minimum of three in each case. One reporter at the press conference asserted, "I happen On March 8, 1988, this Court issued a memorandum to know of well-substantiated allegations about a major Viet­ opinion, which clarifiedthat the United States was the holder namese mafiaoperating in the northern Virginia area, which . of a claim, which was not contingent as to liability, nor Henry Hudson refused to allocate the manpower to investi­ subject to a bona fide dispute ....This Court denied the gate. Do you have any idea of the amount of investigative government's motion for summary judgment, however, on manpower Hudson applied to this case, that was taken away the basis that a genuine issue remained as to whether Caucus from such serious cases?" Hamerman replied that he thought and Fusion were debtors against whom the United States may the Government Accounting Office ought to be called upon proceed, and whether the debtors were generally notpaying to do an audit of U.S. AttorneyHudson 's misuse of manpow­ their debts ....Accor dingly, the Court declined to rule on er and funds for the fraudulent bankruptcy action, as well the issue of whether the government filed the involuntary as other "Metro-Goldwyn-Mayer-style actions by Hudson, petitions against the debtors in bad faith .... such as the June 1988 Pentagon raid conducted under Opera­ A trial on the issues remaining for adjudication was held tion III Wind." and at the close of the government's case, counsel for the debtors moved again to dismiss the involuntary petitions .... Documentation The first basis asserted by the debtors in support of the instant motion to dismiss is that the government should not be allowed to proceed as a matter of law in an involuntary bankruptcy proceeding against parties whom the government also is prosecuting for criminal violations in another forum. FromJudge Bost etter's Secondly, the debtors assert that an involuntary petition filed by a sole petitioning creditor withthe knowledge that a debtor decision of Oct 25 has in excess of twelve creditors warrants dismissal as a matter of law. We consider these grounds in the order proposed. Below are excerpts fr om the J06-page ruling in the United States Bankruptcy Courtfo r the EasternDistrict of Virginia, Parallel criminal proceedings Alexandria Division, In re: Caucus Distributors, Inc., debt­ At the time the involuntary petitions were filed, the al­ or, Campaigner Publications, Inc., debtor, and Fusion Ener­ leged debtors had been the subject of criminal investigations gy Foundation, Inc., debtor. Footnote numbers have been for approximately two and one-half years .... omitted, except fo r the instance where we are reprinting the With respect to the alleged debtors' contention that they relevant fo otnote. were unable to defend themselves adequately in the instant proceedings, we note that such an argument only has merit, Memorandum opinion if any at all, if the outcome of these cases is unfavorable to This matter is before the Court upon the involuntary peti­ the debtors. We, therefore, decline to consider this argument tions in bankruptcy filedby the United States against Caucus as a proper element of the debtors' motion to dismiss. Distributors , Inc. ("Caucus"), Campaigner Publications, Accordingly, we findno improprieties in the prosecution

28 Feature EIR November 10, 1989 of parallel criminal and civil proceedings against the alleged faith is determined by the totality of the circumstances). It debtors in the instant cases, and deny the debtors' motion to may well be that a creditor who filedan involuntary petition dismiss on this basis. Whether the governmentacted in "bad with knowledge that the debtor has more than twelve credi­ faith" by pursuing relief in this Court with a "prosecutorial tors acted in bad faith. but the two issues are not necessarily mind-set" is a differentquestion entirely and must be exam­ one and the same .... ined in view of the totality of the circumstances in these On the basis ofthe foregoing, we find that the government cases. We , therefore, defer our examination of the issue of had actual knowledge that each of the debtors had in excess bad faith until we have evaluated the defenses of the alleged of twelve creditors on the date the petitions were filed. The debtors to the instant petitions. government's decision to filethe petitions despite that knowl­ edge constituted an improper use ofthe involuntary bankrupt­ Three creditor requirement cy statute and consequently an improper invocation of this ...We note, however, that it is precisely because the Court's jurisdiction; we, therefore, dismiss the involuntary jurisdiction of this Court may be invoked so easily, thrusting petitions pending against the three named debtors. We again an unsuspecting debtor into the uncertain status imposed dur­ note that to determine whether the government acted in "bad ing the "gap" period of an involuntary petition, that this Court faith" in filing these involuntary cases, we must examine the has the obligation to determine once a petition is filedwhether totality of the circumstances surrounding the decision to file. to retain jurisdiction if the circumstances of the filingindicate We , therefore, proceed at this time to examine the merits of a dismissal is warranted. Moreover, despite the govern­ the government's cases against the debtors. ment's having avoided a finding of actual fraud, by making no statement regarding the number of debtors' creditors , we Moneyed, business, or commercial find the government's deliberate actions and omission of an corporation allegation pertaining to the number of the debtors' creditors . . . Turningto the evidence proffered by Fusion Energy to evidence the improper use of the statute and invocation of Foundation, the exhibit upon which it primarily relies is its this Court's jurisdiction. 25 corporate charter. . . . The charter reflects that Fusion was In contrast to the narrow legal issue of whether a deficient founded in August 5, 1975 and provides in pertinent part: petition intentionally has been filed, the issue of bad faith is factual , see United States Fidelity& Guar. Co. v. DJF Realty 3. The purposes for which the corporation is to be & Suppliers. 58 B.R. 1008, 1011 (N.D.N.Y. 1986) (bad formed are for scientific, educational and charitable faith in an involuntary petition is a factual issue), and based purposes within the meaning of Section 501 (c)(3) of upon the totality of the circumstances, see In re Elsub Corp., the InternalRevenue Code of 1954 and in this connec­ 66 B.R. 189, 193 (Bankr. D. N.J. 1986) (existence of bad tion are:

25 Although the government ultimately conceded that it knew that the Id ., p. 24 . debtors had in excess of twelve creditors, the government was less than In March of 1988, the government indicated in answers to interrogato­ forthright in revealing its actual knowledge. ries that it "reasonably believed the alleged debtors had other creditors[,]" On April 21, 1987, the day after the petitions were filed, counsel for and that "the documents seized in the October 1986 search do contain what the alleged debtors argued specifically that the government alone could not appear to be numerous loan filesindicating many creditors." filethe involuntary cases in view of the references to "numerous creditors" in (Responses to Interrogatory No . 4, Interrogatory No. 5, respectively, the petitions. Transcript of Hearing on April 21 , 1987, p. 18. In responding, filed March 15, 1988). counsel for the government addressed not the issue of the government's On March 23, 1988, the Court addressed in a telephone conference call actual knowledge, but rather its right to filea petition as a single creditor , between the Court and counsel what the Court believed to be an admission and wait for the debtors to state in their answers that they had more than in the answers to the interrogatories: twelve creditors and file a list of creditors in accordance with Bankruptcy COURT: In this connection, the government has admitted it , as Rule 1003 (b). /d. at 42; see Bankr. R. P. 1003 (b), supra note 9. The I understand it, and they can say "No" now if they don't, that the government noted that until that was done, "there [wa]s no jurisdictional debtor has more than twelve creditors. argument to make." Transcript of Hearing on April 21 , 1987, p. 43 . MR. SZYBALA: Yes, your Honor, thl\t's been our position at the On June 15, 1987, United States Attorney Henry Hudson testified: outset. We have already stated that at the first hearing. [T]he Government would be less than candid with the Court if Transcript of Hearing, March 23, 1988, p. 3. The government did not we were to mention to you that we weren't aware or suspect (sic) state affirmatively the extent of its knowledge to the Court until the second that there were more than 12 creditors at the time this petition was day of trial, May 6, 1988. Tr. Vol. III, pp. 83-85 (see text, supra p. 14-15). filed. Onthe basis ofthe above, the government's actions could be liken[ ed] to a constructive fraud on the court, wherein the court may infer the fraudulent Transcript of Hearing on June 15, 1987, p. 21. nature of the government's conduct. See Kitchen v. Throckmorton, 223 Va. The Court at that time formed the following opinion: 164, 171 , 176, 286 S.E.2d 673, 676, 679 (1982) (court adopted definition [T]he Government concedes that they suspected that there were of constructive fraud as a "breach of legal or equitable duty which, irrespec­ more than 12 [creditors] . I don't have any evidence that they know tive of the moral guilt of the fraud feasor, the law declares fraudulent because there are more than 12, but certainly from their pleadings one would of its tendency to deceive others, to violate public or private confidence, or have to draw the inescapable conclusion that they suspect there are to injure public interests[;]" and determined that administratrix had perpe­ more than 12 creditors. trated a constructive fraud upon the court).

EIR November 10, 1989 Feature 29 a. To provide sustained intellectual and financial bankruptcy proceeding." ...With respect to [the petition­ support and direction to educational and scientific ac­ er's pre-filing inquiries---ed.], this court need not dwell upon tivities directed to the achievement of industrial-scale what inquiries the governmentmade and whether the govern­ fusion power, and to initiate and conduct campaigns in ment should have known that the alleged debtors had in its own name to that end. excess of twelve creditors, in view of its admission on this b. To sponsor and receive studies relevant to scien­ issue. It is clear that the governmentknew of the number of tific and technical strategies for the achievement of a the debtors' creditors, and chose to file as a single Manhattan Project -type crash program for the develop­ creditor .... ment of fusion energy on an industrial scale, and rele­ With respect to the pre-filing inquiries into the substan­ vant to the economics of fu sion-based production. tive aspects of the instant petitions, we note summarily that c. To disseminate the results to government and the government's decision to file in the instant case reflected international officials and bodies, the press, and the less the good faith extension of the law, than a questionable population-at -large. reliance upon existing law. While one court has indicated d. To establish liason (sic) with representatives of that the lack of time may justify a less than complete examina­ labor, farms, anti-fission and environmental groups, t�on of the law on involuntary bankruptcy petitions, the gov­ scientists and other professionals, and governmental ernment did not face an inflexible deadline in the instant and international agencies. cases. See In re Turner, 80 B.R. 618, 620, 626-27 (Bankr. e. To produce, buy, distribute and lease film and D. Mass. 1987) (existence of the first of two ex parte court related media and material on the nature and necessity orders approving attachments' on debtor's homes required of fu sion power for the achievement of purposes stated counsel to make a quick decision to prevent attachment from above paragraphs a, b and c .... becoming immune from attack as a preference.) Accordingly, an evaluation of the government's filing on In one of the internaldocuments to which the government an objective level leads this Court to conclude that the alleged has directed our attention in connection with the issue of the debtors have established that the government filed the peti­ debtors' eleemosynary status, we took note of the following tion in bad faith . It is not the filing of an involuntary petition excerpt: by the United States that constitutes bad faith , as suggested 1984 was the "Year of the Loan" in which a majori­ by the debtors, in that we are aware of at least one instance ty of income was comprised of loans. Infrastructure where the government filed an involuntary petition without loan principal (including the firstquarter of 1985) now notoriety in Missco Homestead Ass'n v. United States, 185 stands somewhere around $10,000,000.About 90% of F.2d 280 (8th Cir. 1950), but the failure to comply with the these notes come due in 1985. The attempt to change applicable provisions of the Code that compels this conclu­ the composition of income is not only necessary from sion with regard to the objective prong of the bad faith test. the standpoint of..expanding our numbers and educating It is quite apparent that a determination of the subjective our base. It is also the case that we are losing a large motivations of a petitioning creditor is a most difficult task. number of supporters (and some quite bitterly) who While in some instances courts may have the benefit of direct made 1984 loans in the $1000-$5000 range. evidence or testimony regarding the creditor's decision mak­ ing process, it is the more usual situation that courts must Exh. 79, p. 1. This passage is representative of many surmise the petitioning creditor's intent based upon the cir­ within the internal documents seized by the government, cumstances of the case. In this regard, one avenue of the which has led this Court to conclude that tt.e debtors strived courts has been to grant liberal discovery requests to enable more to expose the world to its political viewpoint than attain a debtor to determine better what the petitioning creditor's private monetary gain .... motivations were . See In re Elsub, 66 B.R. 189, 196 (Bankr. In view of the foregoing, this Court findsthat the govern­ D. N.J. 1986) ("[I]t is clear that this court must permit [the ment could not proceed against the alleged debtors, Fusion debtor] to conduct further inquiry into the pre-filing inquiry and Caucus, in an involuntary bankruptcy proceeding. In so and objective and subjective motivations of [the petitioning holding, we seek not to protect the promotion of a particular creditor] in filing the involuntary petition[.]"); see also In re ideology, but to preserve the intention of the Act and now Turner, 80 B.R. at 620-28 (reviewing extensively the pre­ the Code to limit the application of involuntary bankruptcy filing considerations of petitioning creditors and their coun­ proceedings to only those entities truly commercial in sel). This Court in an effort to understand fully the basis for nature .... the filing of these involuntary petitions, agreed to review research notes and documents created in preparation for liti­ Bad faith gation by the government in camera. While declining to We examine first whether a "reasonable person in the reveal in detail the contents of each document, we have incor­ position of the petitioning creditor would have initiated the porated our in camera review into our findings.

30 Feature EIR November 10, 1989 The alleged debtors have in their post trial memoranda consistent with the Bankruptcy Code. . . . outlined extensively their perceptions of how the government In determining that the bad faitij of the government has conceived and developed the idea to file these involuntary not been established on the facts of this case, we do not petitions. Essentially, the debtors maintain that the govern­ diminish the concerns of the alleged debtors who sought ment has initiated criminal investigations of organizations vigorously to expose the allegedly improper motivations of affiliatedwith Lyndon H. LaRouche because of the govern­ the governmentthroughout this litigation. We note here that ment's belief that Mr. LaRouche is a "political extremist." the government itself may have fostered suspicions by its Accordingly, the debtors assert that the civil division of choice of words, and litigative zeal. An excerpt from one of the United States Attorney's Office derived its inspiration the government's pre-trial filings is revealing: to file these petitions from the criminal division, and thus proceeded to filethese petititons with a "prosecutorial mind­ The United States filed pursuant to the Court's pre­ set." The debtors maintain that evidence of this mind-set is trial order, April 20, 1988, United States' exhibits 1- found not only in the lack of evidence to support the filingof 129 in support of its involuntary Chapter 7 bankruptcy the petitions and in the decision to ignore more traditional petitions against the debtors. As a whole, the exhibits means of collection, but by the testimony of the officialswho demonstrate beyond any reasonable question that the shared responsibility for the decision to file. debtors have consciously and maliciously engaged in The government consistently has responded to these alle­ a scheme to defraud banks, merchants, suppliers, and gations by noting that it was not operating under the direction, most cruelly the elderly by incurring debt without in­ or on behalf of the criminal division, and actually had three tent to repay the indebtedness. 'Ole Court is not likely very distinct policy reasons for filingthese petitions .... to see an involuntary case where entry of the orders for Upon a review of all of the evidence, and the serious relief is more appropriate than these cases. With the concern of the debtors that they have been targeted by the debtors, the facts mandate entry of orders for relief. governmentin view of their association with a figureof alleg­ edly "political extremist" views, we findthat it is mere specu­ Memorandum of Law in Support of Admissibility of United lation that the government was influenced by the media, States' Exhibits, Filed April 29, 1988, p. 1. and/or the criminal division of the United States Attorney's It is possible that mixed with the government's conviction Office, and that the alleged debtors have not proven their that the bankruptcy forum was the best one to address all theories by a preponderance of the evidence. Rather, we are of the alleged claims against the debtors was its sense of impressed by the government's primary motivation that the obligation to enforce the laws of this country. With this possi­ involuntary mechanism was the most appropriate under the bility, the question arises as to whether a bankruptcy court is circumstances. Where the government's motivations may a permissible forum for the governmentto enforce its claims have been suspect to the alleged debtors, but the primary and the claims of other citizens by seeking an involuntary basis for filing the instant petitions was consistent with the liquidation. This question was of grave concern to the instant Bankruptcy Code, it does not appear appropriate to condemn debtors who maintained that by considering the status of the government's action as constituting bad faith. See In re other "aggrieved creditors," perhaps even before its own Turner, 80 B.R., 618, 627 (Bankr. D. Mass. 1987) (noting standing as a creditor, the government somehow corrupted that suspicions of debtors did not taint petitioners' actions or exploited the involuntary bankruptcy process .... with bad faith) ...... [T]his Court is without authority to determine that A petition may be deemed to have been filed in bad any involuntary petition filedby the United States Attorney's faith where the petition does not accomplish the goals of Office against a debtor who is the SUbject of a parallel crimi­ bankruptcy and alternatives methods were available to the nal proceeding is by its nature improper, or executed in "bad petitioningcreditor. In re McDonald Trucking Co., 74 B.R. faith." We suggest, therefore, that the policy considerations 474, 478-79 (Bankr. W.D. Pa. 1987) (noting that no evi­ cited by the debtors may only be addressed by Congress. dence was offered to indicate that petitioning creditor consid­ Accordingly, this Court grants the motions of Caucus ered any of the less radical and more traditional methods of Distributors, Inc. Campaigner Publications, Inc . , and Fusion debt collection); In re FRP Indus., Inc. 73 B.R. 309, 313 Energy Foundation, Inc. to dismiss the involuntary proceed­ (Bankr. N.D. Aa. 1987) (noting that petitioning creditor ings pending against them. Upon the filingof an appropriate made no effort at all to avail himself of collection remedies motion and a hearing thereon this Court will consider the provided under state law and true motive was to use Bank­ alleged debtors' request for cost and fees under 11 U.S.c. ruptcy Code as a means of effectuating a takeover of the § 303(i). debtor corporation). After reviewing all of the evidence, it An appropriate order shall enter. appears that the decision to file the instant involuntary peti­ Dated: October 25th 1989 tions by the government may not have been the best one in Martin V. B. Bostetter, Jr. hindsight, but was made with the attempt to accomplish goals Chief Judge

EIR November 10, 1989 Feature 31 �ITillInternational

SovietH igh Commandso unds alarm, as crisis deepens

by Lu ba Georg e

The Soviet Military High Command has broken its silence to the spread of "pacifism." to announce that it is fast losing patience with the breakdown The Soviet military is not acting alarmist for propaganda of authority in the country. reasons. October has indeed witnessed a qualitative shift in This breakdown derives from the ongoing discreditation the scope of mass resistance against military service among of the civilian Communist Party and state leadership, especially non-Russian populations. which has been unable to prevent the empire's shattering economic and social crises from worsening every month. Mass draft resistance Throughout October, the alarm was sounded by leading Oct. 17: Mass demonstrations against military service Soviet military figures. The Army is saying it has had started in cities and towns throughout the Muslim Transcau­ enough; that the breakdown crisis in society is spilling casus republic of Azerbaijan and continued for at least six over into the military itself, as reflected in the growing days. number of draft dodgers, pacifists, as well as a growing The protests were also against severe mistreatment in pattern of physical assaults on military personnel. At the military of Azerbaijani conscripts, most of whom are Soviet institutions of higher learning, protests and boycotts relegated to hard labor constmction battalions. More than have been spreading against military preparatory depart­ one-half of the recruits in the battalions belonging to the Road ments on campuses from Riga to Irkutsk. Besides the . and Railroad Construction Troops are from Central Asia. Baltic and Siberian cities, student protests have been Jews and recruits from the Caucasus, Baltic republics, and reported in Tomsk, Leningrad, Moscow, Kiev, Odessa, the WesternUkraine (with its stronganti-R ussian, anti-Sovi­ Voronezh, and Tashkent. et sentiments) are disproportionately high as well in the con­ The most poignant warning was delivered in the Oct. 18 struction battalions. Sovetskaya Rossiya by General of the Army Vladimir Lobov , The demonstrators included both youth and relatives of the Warsaw Pact Chief of Staff: "We soldiers and generals Azerbaijanis serving in the Soviet Army. Azerbaijan Muslim are worried, we are very worried indeed ...the military conscripts have been subjected to especially brutal treatment. press has recently and justifiably raised the alarm ...the According to the Azerbaijan Popular Front, in the past year Army must be protected from outrages against its history and alone, nearly 100 Azerbaijani conscripts died as a result of desecration of its relics ....We must restore the centuries­ beatings and punishments they received in the military . old principle of honor in service." Oct. 11: In the Georgian capital of Tbilisi and other This message was also explicit in an Oct. 21 speech by major Georgian cities, demonstrations were held against the Defense Minister Dmitri Y azov to a military conference on military draft. Demonstrators included young conscripts. ideology, in which he denounced the growing ridicule and Oct. 12: In the Armenian city of Idezhevan, students attempts to "besmirch" the Armed Forces. Yazov demanded went on strike in support of Armenian conscripts who have a restoration of the image of the "glorious army," and an end been demanding that they be stationed and serve only in

32 International EIR November 10, 1989 Armenia. This was followed by a demonstration of 30,000 kinds of pacifistsentimen ts." Responding to demands of non­ in the Armenian capital of Yerevan Oct. 19, supporting the Russian nationalists calling for the establishment of national conscripts' demands and calling for the establishment of na­ military formations, Krivosheyev said: "The task of defend­ tional military forces for the respective republics of the ing the Soviet Union is a national task." Moreover, the in­ U.S.S.R. creasing number of deferments of military service for stu­ Nov. 1: Hundreds of protesters staged a sit-down strike dents was putting undue strain on the rural and industrial in Tbilisi at the site of the April 9 massacre, when dozens of working classes to defend the U.S.S.R. In addition, the sud­ innocent Georgian women and children were slaughtered den withdrawal of all mid-term students, he wrote, had de­ by Soviet troops. The protesters accused Defense Minister prived the Armed Forces of "crew and unit commanders, Yazov of responsibility for the massacre. radar operators , high-class specialists on surface ships, sub­ This autumn, 1,000 Lithuanians refused to serve in the marines and in combat units ....There are actually no per­ armed forces. On Oct. 7 in Kaunus, the republic's second sonnel to replace them at present." largest city, there was a congress of draft opponents which issued a declaration calling military service in the Soviet Civilian incompetence blamed Armed Forces illegal, based on the 1949 Geneva Conven­ On July 11, the Supreme Soviet passed a decree releasing tion, which forbids forced service in an occupation army. all Soviet students serving in the military. In an interview Protesters have been filling out printed slips citing the provi­ with Krasnaya Zvezda Aug. 31, General Krivosheyev at­ sion, and refusing to serve their terms of conscription in the tacked the decree on two counts: for the chaos it had caused Red Army. The Soviet news agency TASS charged that the in the Armed Forces, which lost in August and September procedure "distorts" the Geneva convention. The demonstra­ their 200,000 best-educated conscripts. The other reason was tors also demanded the establishment of national military "social inequality"; that the new law was creating an army formations. almost solely based on poorly educated youth from the urban The West German newspaper Suddeutsche Zeitung re­ working class and rural areas . ported Nov. 2 that in Latvia, young soldiers continued to The most significant feature about the interview was that stage protests. Part of the protest was that members of ethnic it marked a watershed in the military's currentresurge nce. It minorities were brutally mistreated by Russian nationalists was a direct attack on the civilian elite strata which, in one in the military. stroke, through the July 11 decree, freed themselves and In the Ukraine, too, Lviv, Odessa and Kiev were the their children from military service. Krivosheyev attacked by scenes in October of anti-Soviet military protests and boy­ name "representatives of the administrative and governmen­ cotts. Demonstrators protested the barbaric mistreatment of tal apparatus and of the scientific, creative, and technical non-Russian Orthodox conscripts--especially Ukrainian intelligentsia." He concluded by warning that the civilian Catholics (Uniates) and Jews-in the military. They de­ elites' interference in the military was forcing a reversion to manded freedom from religious and ethnic discrimination "the old, romantic designation of the Armed Forces in our and the right to be able to attend religious services. society-the Workers' and Peasants' Red Army" of the Writing in KrasnayaZvezda Oct. 28, the dailyofthe Sovi­ 1920s. By referring to the army of that day, Krivosheyev et Defense Ministry, Gen. Lt. Norat Ter-Grigoryants, deputy was invoking the army of the period before Marshal Tukha­ chief ofthe Ground Forces Main Staff, warnedof an alarming chevsky modernized the armed forces in preparation for patternof young recruits tearing up their induction cards. "All war-a time, in other words, when the Red Army was puny the more worrying," he said, "is that the geographical map in size and technically incapable of waging war effectively. of those refusing completely overlaps the map of nationalist The same precise denunciation, not accidentally, was activity." At the same time, there are "frequent violent en­ voiced by General Lobov in Sovyetskaya Rossiya of Oct. 18: counters between soldiers of different nationalities." He "The military press has recently and justifiably raised the added that this was occurring "in the full view of the party alarm about the Soviet Army's possible tranformation into a and the law enforcement organizations," who "pretend that Workers' and Peasants' Red Army." nothing is happening." In one case, Soviet General Major Ar­ These attacks by the Soviet Military High Command utinian (head of the Military Commissariat, or the draft board come to the very heart of the crisis facing Moscow: that military manpower pool agency for Armenia, was nearly beat­ the systemic crisis and civilian incompetence have not only en to death by a mob: "For more than 20 minutes the enraged created an abominable mess economically and socially in the crowd beat him. It was just luck they did not kill him." empire, but incompetent tampering inside the military's own Following the Ter-Grigoryants article, Gen. Grigori Kri­ sphere, which through measures like the July 11 decree are vosheyev, deputy chief of the Soviet General Staff and head threatening to destroy what is primary to the military leader­ of its Main Directorate for organization and mobilization, ship: the military's ability to retain a sufficientpool oftechni­ and thus in charge of military manpower, wrote in Krasnaya cally qualified cadres, the precondition to waging and win­ Zvezda warning that "conscripts are being poisoned by all ning future wars of expansion.

EIR November 10, 1989 International 33 of U.S. jet fighters deployed in Turkey; reduction of U.S. military training flights; restrictionson U.S. warvessels an­ choring in Turkish ports; and restrictionof the movement of U.S. military personnel on Turkish territory. Should the Dole bill pass Congress, it will generate "the worst crisis between The neutralization of Turkey and the United States since World War II," in the words of a senior Turkish official-:-even greater than the NATO 's southern flank mid- 1970s U.S. military embargo against Turkey following the Cyprus crisis. Congress is to vote next spring on renewing the bilateral by Thierry Lalevee treaty of military cooperation between the two countries. Should Turkey maintain its sanctions against U.S. military George Bush's planned meeting with Mikhail Gorbachov on activities by then, Congress will certainly veto the treaty. Dec . 2-3 in the middle of the Mediterranean, just off the Formally, this may not mean ending Turkish membership in coast of Malta, is symbolic in many ways. One of them NATO, just as the 1974 embargo did not hinder Ankara's is the implicit acknowledgement of the Mediterranean as a commitment to Western defense. But the situation has common American-Soviet Mare Nostrum, though neither changed a great deal since. country has any common shores with that sea. Having noth­ From a Turkish point of view, it ominously coincides ing to do with symbolism, but a very concrete matter, is with assaults on several fronts. For example, by breaking its the fact that by the time they meet, the process of military agreement of 1987, Syria has dropped all pretenses and is neutralization of that region, under their joint overlordship, publicly harboring the Kurdish terrorists of the PKK. Since will have moved a step further. the beginning of this year, there has been again a continuous For example, whatever the results of the national parlia­ escalation of PKK terror actions against Turkey, on a scale mentary elections in Greece, the process leading to the evacu­ not seen since early 1987. It reacheda point critical enough ation of the U.S. Air Force base near Athens, is unlikely to for Prime Minister Turgut Ozal-who is to become Turkey's be reversed. And even if the next Greek government were eighth President on Nov. 9-to warnthat Turkey may simply to prove a hardened supporter of the old NATO line, the cut off the water from the Euphrates flowing into Syria, as a American Congress has announced that 12 U.S. military retaliation. The threat for Syria is serious enough. There is an bases abroad are to be closed down. The bases on NATO's additional rationale for the move from Turkey's standpoint: SouthernFlank are high on the list. Because of the spring and summer drought, Turkey is very short of water this year, and will have to import close to $1 Crisis brewing over Turkey billion worth ofagricultural goods. This is also the rationale that stands behind the sudden At the very same time that the PKK was going on a outburst of crisis between Washington and Ankara. Publicly, rampage, Socialist International networks gathered around the crisis is over the fact that Sen. Robert Dole (R-Kan.) the mercurial Danielle Mitterrand, the French President's succeeded in getting a bill through a Senate committee, call­ wife, met in Paris to herald the cause of Kurdistan. She then ing for April 24 to be designated Armenian Genocide Day. went on to Washington to lobby for the Kurds. Earlier this The next step should be for Congress to ratify the proposal year, she had created a scandal by visiting Turkey for several and for President Bush to sign it. This is unlikely to happen, days without making any public comments, but as soon as in the present circumstances; but what is at issue is not so she got back to Paris, she had held a press conference to much the question of Armenia in itself, as the timing and the blast Turkish treatment ofthe Iraqi Kurdish refugees. In the political will behind the move. Dole's intentions have not polemics that ensued, many forgot that Turkey has welcomed been lost on Turkish officials. Last July, he made headlines tens of thousands of Iraqi Kurds-who have been rejected through a violent denunciation of Israel for its kidnaping by most members of the European Community (EC). Adding of a terrorist Hezbollah sheikh, a denunciation which, in insult to injury, Amnesty International has just put out a retrospect, was all the most cynical and hypocritical, given report on "Torture in Turkey," and the European Parliament that only two months before, the Department of Justice and is calling for suspensionof economic aid to Turkey. Congress had just approved a proposal allowing the FBI to According to Turkish officials, the name of the game is kidnap and arrest anyone, anywhere, ignoring the national simple: Isolate Turkey. "It is a game which is sponsored by sovereignty of the territory they were operating in. What both the U.S. and the Soviets, just as they are sponsoringthe Bush could not say publicly, Dole did for him. creation of a disunited state of Europe, which they would So, such a slap in the face could not go without retalia­ totally control." From all evidence, the EC members, for tion. On Oct. 18, Ankara started to implement fivecounter­ their own reasons and shortsightedness, are playing that dan­ measures, including bringing down to 24 from 36 the number gerous game.

34 International EIR November 10, 1989 Mitterrand defines a grand design

The acting President qfthe Europ ean Community callsJo r aidJorJr eedom in Eastem Europ e, development in the Third World. By Christine Schier.

French President Fran�ois Mitterrand broke with the suprana­ should be a coordinated mission of the 12 member coun­ tional plans for a Single Europe 1992 during his speech to tries." The French government had announced that morning the European Parliament on Oct. 25. For the firsttime , Mit­ a program of emergency aid worth $630 million for three terrand definedEurope 's role as a pole of development for the years . Mitterrand proposed to the EC "some coherent great rest of the world, bypassing the sterile internal discussionson projects, as priorities: agriculture, transportation, telephone. what institutions and agencies the 12 countries should set up How to finance them? I thought for my country of a Franco­ and when. At a time that Eastern Europe's hopes center on Polish center for promoting investments, with an initial en­ Western values, and the Third World looks toward Europe dowment of 300 million francs per year." Together, Europe for a solution, the European Community (EC) must find the could do much more. means to respond to these expectations, Mitterrand insisted, To those who predict that the collapse of EasternEurope often with verve. will bring a dislocation of Western Europe, Mitterrand Internally, Europe's main objective is to accelerate eco­ replies: "Shouldn't this destruction of structures in the East nomic and monetary union. Abroad, he insisted on the urgen­ produce the contrary effect in the West? Strengthening and cy of solving the debt crisis in the Third World and granting accelerating the political construction of Europe is the only new credits for development, citing two main areas of grave answer to the political problem." As for German reunifica­ concern: the fight against drugs and stopping AIDS. He an­ tion, a legitimate wish of the German people, French policy nounced two concrete initiatives, a summit between Ibero­ is to firmly anchor Franco-German cooperation and pull the Latin American countries and the EC, and another between East toward it. Arab countries and the EC before the end of 1989. As for Now, as EIR has often pointed out, the "Europe 1992" Eastern Europe, "What elan! What hope !" We are "witness­ proposed until recently would only lead to a loss of national ing the undoing of the order of Yalta." sovereignty. However, the premises of those plans have been "As during the great moments of 1789, it is the people changed, on the one hand by the events in the East bloc and, who raise their outcry. It is the determination of a people on the other hand, by the complete lack of confidence in the taking control of events which forces walls and borders to Bush administration. European leaders have no illusions that collapse. The people themselves are now defining the path the U. S. governmentwill be able to avoid a financialcrash or upon which our century will draw to a close and future times solve the monetary chaos. A Soviet -U. S. condominium is not will embark. This, in itself, is great news. Once again, the to the liking of the Europeans--especially not the French gov­ people are on the move, and when they move, they decide. ernment. For the sake of what? For freedom, very simply." So the challenge is to give political content to the new The challenge for Western Europe is to help those coun­ European institutions. This poses basic problems, including tries out of their crisis. "Why not create a bank for Europe to what extent national independence should be subordinated which, like the European Investment Bank, would finance to interests of the European Community. President Mitter­ great projects, including on its Board the 12 Europeans [EC rand made clear to the European Parliament in Strasbourg member nations] and others, Poland, Hungary ...why not that the Single Europe Act of 1992 must not be based on the Soviet Union?" There are echoes here of proposals made financial deregulation, nor on "survival of the fittest" in the over the past years by Lyndon LaRouche: to set up new institu­ monetary jungle. tions to finance specific development projects at preferential He scored attempts to "create, under the pretext of dereg­ conditions and penalize purely speculative uses of money. ulation or liberalization, unfair competition and new barriers. Mitterrand limited himself to one concrete case during This remark pertains especially to the liberalization of capital his speech: Poland. "I suggest a Euro-Polish solidarity loan, flows and the concentration of companies ....I draw your a kind of emergency plan for each country, for each city, attention to the danger of a competitive lowering of taxes on which could take responsibility for a region or city of Poland savings. I am sorry to say that the policy of withholding taxes and supervise the delivery and distribution of aid ....This proposed by the [European] Commission, is not unanimously

EIR November 10, 1989 International 35 approved." In France, those taxes are used to finance infra­ structure and public investments in schools, hospitals, re­ search, etc., and France is opposed to lowering them. "The absence of harmonization contradicts in any case the spirit of the Community. But we must avoid emphasizing differ­ ences, or accepting, for example, that banking secrecy cover up fraudulent operations, or, worse still, dirty-money laun­ Australian patriot dering." This clarification is of the utmost importance, since the free flow of capital and of goods could also lead to free ar flow of drugs and drug money. is frameup t get A true economic and monetary union should lead to "a by Allen Douglas common monetary policy, a common currency, and a central bank," he said. "This union will be a decisive step toward the objective of a political union of the Community." Mitterrand Readers of EIR may remember thehumorous but devastating insisted then on the importance of a social policy for Europe expose of the "greenhouse effect" and "ozone hole" frauds and protection for workers . "Building Europe without the in our Oct. 27 issue, by Australian publisher Peter Sawyer. help of the workers would be building it against their inter­ The expose, one of the most effectiveon the subject produced ests. This hypothesis is all the more absurd since social policy anywhere, was particularly useful coming from "down un­ is . . . indispensable for economic progress." der," since the Fabian Socialist governments of Australia and The French President's view of Europe goes against that New Zealand have been leading the charge in international of British Prime Minister Margaret Thatcher and the Anglo­ forumsfor supranational police-state measures to be enacted American financial interests, and opposition from that quar­ to "save the environment." ter will be enormous. Although Mitterrand's attacks In his Inside News newspaper, over the past couple of remained oblique, they have certainly been clearly under­ years, Sawyer has produced several similar exposes which stood. have rocked Australia and have forced themselves onto the floor of the Federal Parliament. Most pointed have been his The developing sector revelations on Soviet penetration of Australian politics, and Relations between developing countries and the EC was on the buildup of police-state measures in the country. another major aspect of Mitterrand' s considerations. "I find it For instance, Sawyer first blew the whistle on the true intolerable that Europe , our Europe , is not always as active, role of the Deakin Center in the nation's capital of Canberra. as alert, as prompt as some other powerful forces in the The Deakin Center was alleged by the government to be a world ....We have our say, but generally in an isolated telephone exchange, but it turnedout to bea massive comput­ fashion. . . . This is where the political absence of Europe is er center with centralized data on all Australian citizens and sorely felt ." On the internationaldebt crisis, "the case-by-case satellite links to the U.S. National Security Agency. In anoth­ approach, in favor today"-especially in Anglo-American er article, Inside News exposed the now-defunct National circles-"is not enough, since it exposes developing countries Safety Council as a CIA-funded private political police force. to economic and strategic pressure ....We need a global The NSC's exotic range of weaponry, as well as facts which approach. . . . We need to create a multilateral fund with new came out in March 1989-when NSC head John Friedrichs money." disappeared, leaving a $35 million-plus hole in the NSC's He also appealed to all European countries to intervene accounts--confirmed Sawyer's charges. much more fervently on behalf of Lebanon, a nation fighting Inside News has caused a great deal of grief to Australia's for its very survival . establishment, and to its Fabian foot-soldiers in government. "Europe of the Economic Community is not a fortress. Now, according to reports reaching EIR from several She has no drawbridge. She has no weapons in the nooks, sources, that establishment has decided to get rid of Sawyer, nor thick walls of protection . She rather wants to tear down with help, in particular, from the CIA and from British MI- walls." Fran<;ois Mitterrand has outlined a political project 5 and MI-6, agencies which have always been extremely for Europe , one which fo sters a Grand Design for the East, active in Australia. economic growth for the South , and a pole of development The plot is fairly simple. hostile to speculation in the West. This perspective, adopted Several months ago, these sources report, bank accounts by a head of state, is promising. Now translating words into were opened up in the names- of Sawyer and nine others actions must begin. The political battle to bring such a Europe loosely associated with him in what Australians refer to as into being will be tough-very tough-and a firm, principled the "Freedom Movement," a loose-knit grouping of individu­ alliance among France, Germany, Italy, and Spain is a pre­ als and organizations bitterly opposed to the economic and condition for victory . political destruction being wreaked on the country by its

36 International EIR November 10, 1989 Fabian leadership. Funds have regularly been put into these In addition to his political exposes, Sawyer has been bogus accounts over the past few months, and some time predicting an economic collapse, both for Australia and glob­ soon, a raid will take place on Sawyer's house in the state of ally, for some months now. As that collapse accelerates, he Queensland, coincident with raids on the houses and busi­ has an excellent chance of being elected to the Australian nesses of others being so framed. Lo and behold, drugs will Senate, for which he is expected to run. be found, and Sawyer and his Inside News will be trumpeted Of course it would not only b� Sawyer who might be in the press as a drug distribution network. It will be an­ elected as an independent, but enough other groups and indi­ nounced that "hundreds of others" of Sawyer's subscribers viduals are now preparing to run as independents, that they are also under investigation. That the charges will ultimately could possibly hold the balance of power between Labour be thrown out, is not of concernto those arrangingthe frame­ and Liberal-National, giving them great political clout far up; the idea is to put Sawyer and others like him out of beyond their numerical strength. commission in the period between now and the expected A foretaste of what might be expected in the national national elections in February or March, so that no new politi­ elections may appear in the state parliamentary elections cal force emerges in those elections. in the key state of Queensland on Dec. 2. Establishment One inside source who had details on the plot was sched­ newspapers such as the Sydney Morning Herald have uled to expose it on the popular Brian Wilshire show on voiced their anxiety that some "new force" might take Radio 2GB in Sydney, on Monday, Oct. 23. On the way to several seats, the most likely candidate being the Citizens' the station, that person was shot. Electoral Councils (CEq, which are running several vigor­ ous campaigns. The CEC, also loosely part of the "Free­ The setting dom Movement," burst into national prominence in 1987 To understand the priority that Australia's establishment when it swept to victory in the Barambah electorate, the puts on getting rid of Sawyer et aI. , it is necessary to appreci­ most entrenched National Party seat in the country. The ate the extraordinary rate of economic collapse in the coun­ CEC now has over 150 councils spread across Australia, try . Australia, a nation of only 16 million people, has a and has been under intensive attack from the same forces federal foreign debt of over $100 billion, which makes it a trying to eliminate Sawyer politically. vastly more indebted country per capita than Brazil (popula­ The alarm with which the Australian establishment tion 145 million, debt of $120 billion) or Mexico (population views Sawyer and the hundreds of thousands, or millions, of 85 million, debt of 105 billion). Interest rates for farm of independent-minded "Aussies" who think like him, is loans arecurrently at 23.5% (25% for overdraft), and are only best captured in the words of one of its spokesmen, Labour slightly lower for businesses; home mortgages are running at Member of Parliament Keith Wright. Last year, Wright 17%, an all-time high. Prices for wheat and wool, two of the called for an all-party inquiry into a plot to take over the country's three top exports, have collapsed over the past six country by "the most sophisticated political structure in months; wool revenue dropped from $6 billion to $4 billion this country [which] has carefully and strategically infil­ annually. This, together with the stratospheric interest rates, trated what could add to hundreds, if not thousands of has produced record failures among Australia's businesses organizations and associations across the country." Wright and farms. The situation is so bad, that there have already branded this movement of ordinary Australians as "the been rumors of the formation of a "national unity govern­ most insidious, sinister, and extremist threat coming from ment" among the existing major parties, i.e., Labour and the the most extremist force that this nation has ever seen or Liberal-National coalition. witnessed. " Despite the fact that all parties in the Parliament agreed Parties in crisis that such an investigation should take place, one year later Both the unpayable foreign debt, as well as the collapsing precisely nothing has been done. As Sawyer has noted, one standard ofliving, are causing disgust with the existing politi­ of two possibilities accounts for this: Either the Australian cal parties. This disgust registered loud and clear in the early Parliament has been criminally negligent in not following up 1989 elections for the newly established Legislative Assem­ on this "extremist threat," or, no such threat in fact exists. In bly of Canberra. Independents running on a variety of slates, the latter case, an attempted political witchhunt is under way, from the "Abolish the Self-Government Slate" to the "Sun­ and all the bluster about "extremism" is to set the stage for Ripened Tomato Party ," received more votes than both of eliminating political opponents. the major parties combined, and this in a situation where an In a recent issue of Inside News, Sawyer exposed the unprecedented balloting procedure was used precisely to try joint CIA-KGB operations to blame then U.S. presidential and avoid this result. candidate Lyndon LaRouche for the murder of Swedish In this situation, Sawyer's Inside News, read by an esti­ Prime Minister Olof Palme. He argued that if the CIA would mated 200,000Australians each issue, is acting like matches do this to a patriot of its own COUDtry, what might they not tossed onto gasoline-soaked rags. do abroad?

EIR November 10, 1989 International 37 NATO Autumn Forge exercises: victilll of Vienna conventionalfo rces talks? by Dean Andromidas and Chris Lewis

NATO recently completed its annual Autumn Forge series istration notified British Prime Minister Margaret Thatcher of military exercises, the smallest in over a decade. The that, under an agreement that could emerge from the Vienna contrast to previous years was dramatic: talks, the United States would pull out of four Air Force • The United States canceled Reforger, an exercise that facilities based in the United Kingdom. According to the for the last 10 years demonstrated U.S. commitment to rein­ report, the U. S. Defense Department expressed "incredulity" force WesternEurope . about such a proposal, and a spokesman for the Third Air • In 1989, only a little more than 200,000 troops took Force stated that its command was never notified of it. Over part in the Autumn Forge exercises. In 1988, over 280,000 32,000 servicemen and their dependents are based at the soldiers participated. facilities, and one of these is the headquarters of the Third • NATO's Air Forces Cold Fire Exercise, which exer­ Air Force. Another is the home base for six squadrons of A- cises air support for NATO ground forces, was cut in half, 10 aircraft that are the backbone of American ground support conducting 400 sorties a day this year, down from 800 sorties fighter capability for two U.S. Army Corps based in West a day last year. Germany. Still others have important logistics functions for • Both the West German and U . S. field trainingexercise both U.S. and NATO capabilities. Nonetheless a State De­ lasted only one week, down from two weeks last year. partment source is quoted saying the bases were definitely • Citing concern over possible damage to the environ­ on the cutback list, because they "are just excess real estate" ! ment, the American exercises employed only 50% of the Although, officially, NATO cites environmental and po­ vehicles normally deployed for such maneuvers. litical reasons for the scaling down of the exercises, their The cutbacks must be seen in the context of ongoing smaller size conforms with proposals the United States pre­ negotiations between Washington and Moscow, which could sented to the Vienna conference in September. One proposal very well lead to an American strategic withdrawal from was to limit exercises to 40,000 soldiers and 800 tanks, which Western Europe. The Conventional Forces in Europe talks coheres precisely with the size of the American Fifth Corps beingheld in Vienna are going into their second year. On the maneuver, Caravan Guard '89. The West German national table are American proposals for parity between NATO and exercise "Offenes Visier," was also held below the 40,000 Warsaw Pact troop and air forces at a level 15% below current soldier count. NATO levels. This would leave 20,000 tanks , 16,500 artil­ lery pieces, 28,000 armored personnel carriers, and 5,700 Soviet threat still visible combat aircraft. The proposals also call for U. S. and Soviet Perestroika and glasnost may have lessened the "per­ troops stationed outside their national territory in Europe not ceived" threat, but not the real threat. The Soviet arms control to exceed 275,000 each. Although this would entail deep initiatives are coordinated with an ongoing reorganization of cuts by the Warsaw Pact, it would also mean withdrawing Soviet armed forces coherent with a new, evolving Soviet 30,000 American soldiers, or a 25% cut in the fighting military doctrine (see EIR , No. 42, Oct. 13, 1989). This strength of American ground forces in West Germany. A much-touted "defensive military doctrine" is, in fact, a war­ withdrawal of U.S. troops would extend 6,000 kilometers winning strategy based on a "leaner, meaner" force structure. back to American territory , whereas Soviet troops need only Furthermore, equipment modernization programs continue withdraw 600 kilometers to reach Soviet territory . unabated, with growing numbers of modem T -72 and T -80 Proposals are being made both without regard to military tanks as well as even more modem tanks coming on line. strategy or doctrine, and without consulting the relevant mili­ Many thousands of TOWed artillery pieces are being reI aced tary commands. with new and more capable, tank-like self-propelledarti llery, One such proposal was reported by the U.S. Armed Forc­ such as the 122 millimeter 2S 1 and the 152 millimeter 2S3 es daily paper Stars and Stripes. On Sept. 8, the Bush admin- self-propelled howitzers, and the 240 millimeter self-pro-

38 International EIR November 10, 1989 pelled mortars . Many of these are nuclear-capable. While "As a military commander I must deal with realities, not the number of Soviet tanks in Soviet regiments has de­ wishful thinking. History has shown us that it takes a long creased, the number of armored personnel carriers is increas­ time to build up economic and military capabilities-but ing. This conforms with putting even greater emphasis on intentions can change overnight." spetsnaz (special forces) and airborne assault forces armed with post-nuclear weapons, such as radio-frequency devices Defending NATO's Central Front and hand-held nuclear devices for deployment deep into The purpose of Autumn Forge is to deter war through NATO's rear areas . The military responsibilities of East Ger­ accomplishing three missions: 1) Training NA TO's ground many and Czechoslovakia have been dramatically upgraded, fo rces. These exercises are cornerstonea of trainingthe com­ with these forces receiving more T-72 and T-80 tanks, and mon soldier, giving him an opportunity to exercise in large SS-21 rocket launchers. Their air forces have also been up­ formations on the same terrority he might one day have to graded with MiG-29s, the Soviets' most modern fighters. defend. 2) Providing a vital example of alliance cooperation A far more unpredictable danger is the growing economic in large-scale joint exercises, which only occurs during Au­ and political instability of the entire East bloc . A deep con­ tumn Forge. One of NATO's greatest assets is its determina­ cern about lowering NATO's profile in this climate was ex­ tion to fight as a multinational force. 3) Politically demon­ pressed during Autumn Forge by Lt . Gen. Sir Peter Inge, strating alliance cohesion by showing that all 16 nations of Commander of the First British Corps in Germany. Quoted NATO are committed to the common defense of Western in the British press, the British commander declared, "I agree Europe and Turkey. that in the present climate of East-West relations the threat This year's Autumn Forge provided some very important of war seems far less likely. But we simply don't know if and innovative training. One of the most outstanding exercis­ Mr. Gorbachov will overcome the horrendous problems he es was the Franco-German Champagne '89 Exercise, which, faces ....In the meantime we could be moving into a period although not formally part of the Autumn Forge series, wit­ of great instability. nessed an "invasion" of France by German tanks, simulating

NATO forces in Central Europe

NATO 's central region-the Federal Republic NORTHAG of Germany, Belgium, Netherlands, and Great Britain-is the keystone to the defense of Western Europe. The basic operational fo rmation on the Central Front is the corps, comprised of 24 divisions. Each nation deploys I or more corps along the German­ German and West German-Czech borders . Hanover . BERLIN . The U.S. deploys 2 corps and the Canadians I (British) Corps maintain I brigade . While each corps is under � corpS its respective national command, in wartime they come under the command of higher ��.. (\ multinational NATO Army Groups, the Army \� CO Group North, (NORTHA G) based in 08(((\8(\) Munchengladbach and the Central Army . \ \\ � (CENTAG) group based in Heidelberg. These Bonn ,COt96 are, in turn, integrated into the Allied Forces " \\) .5., Central Europe Command, a multinational command based in Brussum, Netherlands . Although France is outside of NATO's intergrated military command, in wartime, France would almost automatically reintegrate itself. It maintains its own corps on German soil, under the Allied Powers occupation rights. NA TO's air fo rces are organized along a parallel command structure, with the mission to defe nd the FIRST FRENCH ARMY Central Region's airspace as well as to provide air support to the groundforces.

EIR November 10, 1989 International 39 a Soviet invasion, attesting to the growing Franco-Gennan cooperation of the last few years. Another first was a series of exercises conducted by the British Army of the Rhine whose purpose was to test the transport of a British brigade and other reinforcements from the United Kingdom to the continent. But the most interesting of this series was Exercise Key Flight, which included participation from the new 24th Air Mobile Brigade, which was created to counter Soviet air­ borne tactics. Key Flight demonstrated how Soviet methods of combined airborne and annored warfare tactics could be countered. During the exercise an enemy tank column was destroyed while attempting to link up with a group dropped Welcome guests: NATO tanks in autumn 1989 maneuvers in West by air in the British rear area. Germany. The 24th Air Brigade itself is quite an impressive opera­ tion and this exercise enabled its commander, Brig. George Kennedy, to really detennine what was needed to move the tion is interfaced with the "real" action in the field. entire brigade and deploy it into fighting positions: It took 40 Although the U. S. commanders were very confident of Annyhelicopters , 12 Royal Air Force Pumas, and 10 Chino­ the success of the "Train Smart-Maneuver Smart" concept, ok helicopters. Despite the great success of the maneuver, this confidence was apparently not shared by other national the future of the brigade is up against a lack of resources commanders. Lt. Gen. Sir Peter Inge, Commander of the because the British government is pressing for cuts in the British Anny of the Rhine, was quoted in the British press defense budget. as saying, "I have a lot of sympathy with the need to protect EIR had the opportunity to directly observe the American our environment, and I am equally conscious that some of V Corps' Caravan Guard '89. The original plan was to in­ our exercises considerably inconvenience the population and clude troops brought over to Gennany as part of Reforger can damage the environment. ...But I have to live in the '89, which was canceled. real world. Soldiers have to train, because, if they failed to Caravan Guard is the V Corps' annual fieldtraining exer­ do so, they would not only be wasting taxpayers' money, but cise; this year the Corps' Third AnnoredDivision squared off also failing to provide NATO with effective military force. against the Eighth Infantry Division. The Corps' Eleventh "People say that we can use computer simulators to re­ Annored Cavalry Regiment took time off from its full-time place our field exercises-but this is not so. Simulation has mission of patrolling the Gennan-Gennanborder, which oth­ a very important part to play-but in the end, all you are er units took over for the duration of the exercise. Also in­ doing is playing against a computer, and you know you are. vOlv'ed were the Fifth Gennan Grenadier Brigade and the You can never replace the divisional commander and his Fourth Canadian Brigade. staff having all the nightmares of having to actually move The exercise saw sharp reductions in men and equipment thousands of men and vehicles in the middle of the night deployed in the field. Only 40,000 troops, 12,000 wheeled when the men and the commanders are tired and cold and vehicles, and 600 tracked vehicles participated. This is a wet." fraction of the number of tanks and annored personnel carri­ The success or failure of using computer simulators will ers for such exercises, which usually exceeds 3,000. have to measure up to how well they succeed in accomplish­ The sharp reductions appeared to be a concessions to ing the training goals for the common soldier. the environmentalists. They were the result of the so-called Traveling out to the field, EIR did not experience any "Train Smart-Manuever Smart" concept handed down by hostility from local inhabitants toward the maneuvers. In NATO Commander Gen. John R. Galvin, aimed at limiting fact, as is the case in all these maneuvers, their biggest sup­ damage to the environment by tank and annored personnel porters appeared to be the children who would take every carriers. The reductions were accomplished through combin­ opportunity to view if not climb all over the huge tanks and ing what are called "command post exercises" and "com­ annored personnel carriers rumbling through their neighbor­ mand fieldexercises" with fieldtraining exercises, The inter­ hoods and surrounding countryside. From among many of face was provided by the Joint Exercise Simulation System the older fanners, we could oftenoverhear , "better American (JESS) , which employs military computer-driven simula­ than Russian." The most important participants are the sol­ tors, where the simulators replace real men, vehicles, and diers themselves, whose predominant mood is enthusiasm even entire regiments in the field.Everything from firepower for their mission, and the conviction that the most serious and attrition rates, to the logistical requirements such as refu­ danger to the environment is the Warsaw Pact and not their eling and even dinner breaks, is programmed in. The simula- Abrams tank or their Bradley Infantry Fighting Vehicle.

40 International EIR November 10, 1989 Beijing declares \\Tar on China's elites and peasantry by Linda de Hoyos

In its zealous drive to re-establish the central control of Morning Post Oct. 21, students are being required to give Beijing over the economic and political life of the 1.2 billion daily accounts of their movements during April I5-June 4, people of the People's Republic of China, the Chinese Com­ the period of the Beijing demonstrations, and to write long munist leadership has taken upon itself a formidable, and essays on what they think about the democracy movement. likely impossible, task. With the exception of the military They are also being encouraged to report on each other. Many and urban workers, the Beijing regime has effectively de­ students have "disappeared" since June 4. Many students clared war on every stratum of society. who fledBei jing have been summarily killed by local police The lead-charge for this assault is the Aug. 19 announce­ when found. Other students, the Post' s source said, have ment by Communist Party General Secretary Jiang Zemin succumbed to mental illness under the pressure brought to that the party leadership will carry out a thorough purge of bear on them; such victims are simply tied to a bed and given the 48-million-member party. In particular, Beijing reports tranquilizers. indicate, the party doors will be closed to "entrepreneurs"­ In the aftermath of the Tiananmen Square massacre, the that is, those who have engaged in private enterprise, includ­ party's lenient attitude toward religion inaugurated over the ing the bringing in of foreign investment. The party leader­ reform years, has also been reversed. The Peasants Daily ship is determined to root out all those who have shown Oct. 18 declared, "We cannot underestimate such bad influ­ sympathy with the democracy movement, including many of ences" as religion, which are "feudal and superstitious" in the intellectuals in the party itself. Given that that support their nature and which "have poisoned the masses." The for the democracy movement was widespread in the party, East Asia Buddhist Society has been banned and its leader especially in Beijing and Shanghai, the party will be axing incarcerated for suspected involvement in the democracy many of its previous policymakers-those who have formu­ movement. Another target is the Roman Catholic Church. lated and implemented the Deng Xiaoping reforms. Those More than 10 priests have been arrested in northern China expelled, the Beijing leaders might note, however, represent since June 4, with prime targets being those clergy who an alternative leadership base as the Chinese political and confess their loyalty to the Vatican. In Hebei province, economic collapse ensues. priests are no longer permitted to say mass. Students-the future leaders of the party-have also come under strong attack. The student popUlation has been Command control of the economy decreased this year by approximately 20%, particularly Under the direction of Vice Premier Yao Yilin, a com­ enrollment in Beijing University. Prospective students must rade-in-arms of the pro-Moscow Premier Li Peng, the leader­ first do a stint in the military before being accepted in ship is attempting to re-assert its control over the economy. schools. Once enrolled, students must participate in "politi­ In the last 10 years, regions, provinces, and districts have cal seminars" three to five times a week on the lessons been given broad powers to seek investment and determine to be learned from "Mao Zedong Thought." No students how that investment is used--once their obligations to will be permitted abroad, until they have worked in the Beijing have been met. (This arrangement has also given country for seven years. Latest reports from Chinese locals the opportunity to significantly skim off investment students in the United States also indicate that those who monies.) Now plans are afoot for Beijing to take back such have been given permission to go abroad-hoping to powers . According to reports in the South China Morning continue their education in the United States-are instead Post, the State Planning Commission, under Yao Yilin's being shipped off to the Soviet Union, a country Chinese direction, is devising a plan to place all areas under the strict students view with deep distaste. control of "regional bureaus" controlledthrough Beijing. Aside from the bureaucratic maneuvers against students, The Post, citing a Beijing economic source, says that repression has been coming down hard since the June 4 mas­ "the heads of the bureaus will function as economic czars sacre at Tiananmen Square . According to the South China who will tightly oversee economic and business activities

EIR November 10, 1989 International 41 within their jurisdictions. The insertion of an administrative The strongest opponent of the contract responsibility sys­ tier between the provinces and central party and government tem has been octogenarian Chen Yun, the political godfather authorities will enable the Politburo and State Council to ofLi Peng and Yao Yilin. In 1985, Chen Yun argued vocifer­ ensure that their orders are obeyed throughout China." ously from his wheelchair that the contract system would The plan revives the wartime regional system used by the result in a dangerous decrease in grain production, as peas­ Communists up to the mid- 1950s, and is believed to be a step ants sought to diversify into more profitableventures requir­ in the militarization of the economy. ing less input. Accordingly, B�ij ing is now mooting that it The central-command policy is ostensibly being carried will rip up the contract responsibility system to once again out to permit Beijing to reorder economic priorities. Instead place the countryside under central control. of seeking foreign investment for construction and trade­ The rationale for this assault on the peasantry is that related production-the policy of ousted General Secretary the family holdings are too small to permit an increase in Zhao Ziyang which favored the coastal provinces-Beijing productivity. This is seen to be an urgent problem, since is seeking to establish tight control over investment and fun­ Beijing's grain production has .not risen above 400 million nel it toward basic industries and infrastructure, particularly tons since 1984, while the population has risen by 75 million. the development of energy and transport. In itself, the eco­ As the Zhongguo Tongxun She daily explained Oct. 18, the nomic content of Beijing's desires is not in the wrong direc­ contract system was actually only "Step 2" in Beijing's revo­ tion; however, politically, the Beijing regime can expect lutionary policy for agriCUlture. "Step 3" is the transition to difficulty implementing it. fairly large scale land operations. The smaller plots have The World Journal has reported that the provincial gover­ caused the "disintegration of the system of water conservancy nor of Guangdong, Yie Xianpeng, the southeast province facilities and made large farm machines unable to play their that is home to Canton, has refused to carry out Beijing's part." The daily cites the success one Xinmouli village in order that people buy government bonds. According to the Liaodong peninsula, where only 30 peasants are operating London Financial Times, Yie told reporters that he would all the village's land, while the rest have been sent to work not allow political ideology to interfere with business man­ in village-run factories. agement in Guangdong. He has refused offers to take a posi­ However, the article admits that the large-holding system tion in Beijing. In addition, a senior official in Guangzhou will drive millions of "superfluous agricultural workers" off (Canton) has proclaimed that his city will forge ahead with the land. How are they to be absorbed? For that, Beijing has a HK$18 billion investment plan, despite Beijing's order no plans at all. The rural enterprises that have sprung up for austerity. The investment package is for 10 projects, over the past five years, which have concentrated on low­ including an electrical plant and a steel factory. Guangzhou technology, labor-intensive industries for export, have come does not intend to lose its status as the most developed com­ under attack since June. The complaint is that they drain off modity economy in China, the..official said. investment which would be put to better use in centrally­ Guangdong's resistance to Beijing's austerity and com­ controlled large projects. Over 18.8 million township enter­ mand-control demands is likely backed by the regional mili­ prises have sprung up, absorbing 100 million peasants. Now, tary cOrDmanders, who traveled to Beijing in August to lobby as Beijing prepares to throw �illions off the land, 15% of that Guangdong's economy not be throttled. the country's rural enterprises have shut down, and that is just the beginning. War on the rural population Hence, mainland economist Song Ja Wu warned with Having declared war on the party elites and the local good reason Oct. 27 in a conference with international busi­ bosses, Beijing is also training its eyes on the countryside. nessmen that unemployment in China will soon soar. Song Contrary to its credentials as the product of a peasant revolu­ expects that 80 million more farmers will become unem­ tion, the Beijing regime has always subsisted through brutal ployed, and that another 20 million will be laid off from accumulation off the backs of the peasantry. There remains state enterprises. Given Beijing's overall plans, that is an a vast gap between the standard of living in the cities and that underestimation. in the countryside. The only constituency Beijing has attempted to "keep The Deng Xiaoping regime gave peasants their first on its side" are city workers. Inflation of food and other "break" by dissolving the communal system and placing the commodity prices in the cities has been stopped, through farmers under contract. Under this system, peasant families government intervention with large subsidies. Reports are were given back their land to become tenant farmers for the that the announcement in mid-May of the formation of an state. Once the family has coughed up its quota to the state, autonomous trade union in Beijing panicked the Communist it is permitted to grow whatever it likes. This social policy leaders, and is the incident that prompted the imposition of boosted agricultural productivity, but only up to a point; martial law . Beijing is reportedly terrified that it could meet overall investment in agriculture decreased during the Deng the same fate as Communists in Poland, where the workers years. have turned against the party .

42 International EIR November 10, 1989 Jammu and Kashmir crisis threatens Indian Subcontinent's stability by Ramtanu Maitra

With less than two weeks left before millions of Indians Indian part of Kashmir, where the Muslim community is a exercise their franchise for the ninth time since India's inde­ large majority. Over the years Kashmiri chauvinists seeking pendence to elect a representative government,parts of India to form an independent Kashmir have manipulated the Mus­ are undergoing convulsions. Violent riots involving the two lim population, and brought into their fold the fanatic mullahs dominant religious groups, Hindus and Muslims, have taken with the aim of disrupting law and order in the state. In recent place in the states of Uttar Pradesh, Madhya Pradesh, Raja­ years , on a number of occasions, the Indian tricolor was sthan, Bihar, Gujarat, and Jammu and Kashmir. While these denigrated and the Pakistani flag hoisted to give expression riots are sporadic and incidental, due to a steady growth of to their solidarity with the Islamic Republic of Pakistan. militant Hinduism and the role of opportunisitic politicians, During the last fiveyears , since the Khalistani secession­ the case of the strategically located Jammu and Kashmir is ist movement in the Indian state of Punjab took a violent tum, somewhat different. Jammu and Kashmir has been volatile Jammu and Kashmir has become the safehouse of Punjabi for a long time, with Kashmiri secessionists and Muslim secessionists fleeing from the Punjab police. There, the fundamentalists joining hands. Kashmiri secessionists have developed a wide network of Kashmir, located just south of the Sino-Soviet borders, anti-national forces, and Indian security forces have less ca­ has remained a disputed territory since 1947 when the British pability. Terrorism in Kashmir, in the form of bank robberies partitioned the Subcontinent between India and Pakistan, and and murders , began long before the secessionist movement left. The state was one of the 500-odd Indian princely states in Punjab gained momentum. Events, for example, such as ruled by fuedal kings whose status remained theoretically desecration of the Al Aqsa Mosque inJerusalem , the hanging ambiguous, because the British, prior to their departure, took of Pakistani Prime Minister ZulfikarAli Bhutto by the Paki­ the view that the rulers were free to accede either to India or stani military strongman Mohammed Zia ul-Haq, and the to Pakistan. In most of the princely states, the choice was sudden death of Gen. Zia ul-Haq himself, unleashed waves dictated by geographical considerations. But Kashmir was of rioting in Kashmir. In the spring of 1988, when the Ojheri located along the borders of the two new I y founded countries, ammunition depot at Rawalpindi, Pakistan, was blown up, whose birth had brought indescribable misery to millions and Jammu and Kashmir experienced atson and violence. institutionalized immense hostility in the process. Just before the Kashmir Maharaja, Hari Singh, could Who fishes in troubled waters? announce his preference to align with the Indian Union, the But although the violence in Kashmir often has little to state was invaded from the west. The Pakistani invaders, do with any event that occurs within Kashmir, incidents are dressed in tribal attire, were eventually stopped by Indian oftentriggered by the separatists on-the-ground to stage anti­ troops, but not before almost half of Kashmir was occupied India demonstrations and polarize the population. Kashmir by the so-called tribals. This part of Kashmir aligned with is therefore not simply an India-Pakistan issue. Long before Pakistan and came to be known as Azad Kashmir, while Kashmir became a disputed area, the British rulers had pres­ the other half, under India, came to be called Jammu and sured Maharaja Hari Singh to lease the northern part of the Kashmir. Despite prolonged debates in the United Nations state, Gilgit, for 60 years for strategic reasons. Although the and prompt side-takings by the superpowers in the 1950s, lease is now void, the British interest in watching the Chinese the Kashmir issue has remained undecided, and the territory and the Russians, and Indians and Pakistanis, from a "neutral is still under dispute. Neither India nor Pakistan has shown nation" like Kashmir, has far from waned. It may be no any inclination to give up any part of Kashmir; it remains the coincidence that top Kashmiri terrorists have found London most difficultbarrier to normalized relations between the two an effective base of operations. countries. At the same time, Pakistan has considered Kashmir to be The dispute over Kashmir has provided ample opportuni­ the proverbial feet of clay of the Indian giant. Because of its ty to various groups-including the superpowers and Com­ large Muslim population and mountainous terrain, Kashmir munist China-to fish in troubled waters, particularly in the has been considered by all Pakistani leaders to be an ideal

EIR November 10, 1989 International 43 location for subversive actions against India. Every Pakistani mentalist Jamaat-e-Islami, to give up its anti-India activities. leader has sworn to recover Kashmir from the clutches of It was then that the government of India, armed with the "Indian infidels," and as late as 1987, the late President Zia information that the Tulaba was being funded by Libya's ul-Haq was planning a military operation to "liberate" Kash­ Muammar Qaddafi, called off an international Islamic Stu­ mir from India. It is also widely known that most Kashmiri dents' Conference organized by the Jamaat and which was secessionists travel freely between India and Pakistan scheduled to be held in Jammu �d Kashmir. Recent reports through the state's porous borders, and find refuge in Pa­ indicate that the Jamaat-e-Islami has issued instructions to kistan. its own student outfits, such as the Islamic Student League, to carry out their activities independently of groups like the Neutrality talks go nowhere Kashmir Liberation Front "which believes more in the cre­ A recent spate of intelligence reports in India indicates ation of independent Kashmir than in its accession to Pa­ that in the first week of August, an important meeting was kistan." held in the Kashmir Center at Rawalpindi-a garrison town The kingpin of the notorious J amaat organization is Syed in Pakistan under the control of virulently anti-India military Ali Shah Gilani, who was once arrested but released dramati­ officers. The meeting was organized and hosted by Sardar cally in 1984. Gilani has consistently eulogized Pakistan and Abdul Qayyum Khan, president of Azad Kashmir. Sardar has been promoting secessionism. Gilani's main demand is Qayyum Khan, who worked hard to bring down the late for a free plebiscite whereby the Kashmiris will be given the Prime Minister Zulfikar Ali Bhutto and became a close asso­ option to vote on a referendum Qn whether to stay with India ciate of President Zia ul-Haq, is now a close friend of Punjab or accede to Pakistan. Chief Minister Mian Nawaz Sharif (whose only political Beside Gilani, two other fundamentalist leaders, Mir­ identity is that he wants "to dump the remaining Bhuttos in waiz Maulvi Farooq and Mirwaiz Qazi Nissar, are extremely the Arabian Sea"). Sharif has often accused Prime Minister active in fomenting trouble within the Indian state. Mirwaiz Benazir Bhutto of selling Kashmir away to India. Farooq is a nephew of Maulvi Yusuf Shah, who had been What emerged from the meeting, which was attended actively promoting an independent Kashmir under the Maha­ by 12 political and religious organizations within Azad raj a of Kashmir in 1947 . Mirwaiz Farooq has grown in stature Kashmir and a number of secessionist groups, was a clear significantly in light of the weak political leadership that the signal that the so-called liberators are becoming less state presently offers. interested in aligning Kashmir with Pakistan, and instead, Mirwaiz Qazi Nissar, who enjoys the support of the fund­ plan to carve out an independent Kashmir. The concept amentalists in the southern part of the state, is generally is to make this "independent Kashmir" a "neutral" nation described as the "Bhindranwale of the valley"-a reference along the lines of Switzerland. Reportedly, Hashim Qure­ to the Sikh fundamentalist le�der who died when Indian shi, a founding member of the Kashmir Liberation Front troops stormed the Sikh religious temple at Amritsar in 1984. who achieved notoriety in the e�ly 1970s following While there is very little difference between Maulvi Farooq the hijacking of an Indian Airlines aircraft to Pakistan, and Qazi Nissar, it is said that Farooq equivocates when condemned some of the violence allegedly organized by asked his opinion about the accession to India. Qazi Nissar the Pakistani Inter-Services Intelligence (lSI). "Explosions apparently considers accession to India final, and calls orga­ in buses and bathrooms and causing death and injury to nizations such as the Kashmir Liberation Front "anti-na­ hundreds of innocent Kashmiris can hardly be described tional. " as an armed struggle for the liberation of people justifying Jammu and Kashmir, because of its strategic location, an expenditure of crores [tens of millions] of rupees by will continue to remain a trouble spot unless a mutually bene­ Pak agencies," he is said to have told the gathering. ficial understanding, which rules out the formation of an The depth of Pakistani or other foreign agencies' involve­ "independent Kashmir," is reached between India and Paki­ ment in Kashmir is difficultto pinpoint. The recent arrest of stan. Only then can the threat of terrorists and fundamental­ Shabir Shah, a top terrorist belonging to the so-called Peo­ ists be negated through the political process and imposition ple's League faction, at Ram ban, Jammu and Kashmir, of strict law and order. The present situation, however, does which sparked off large-scale arson and looting, revealed that not allow any politician to speak out freely or organize against Shah was on his way to Pakistan when he was apprehended. It the terrorists. was also reported that Shah had with him a significant sum Over the years, political forces in the state have become of money in b('th Indian and Pakistani currency. weaker and fragmented, and despite their intentions, many have had to align with the fundamentalists and secessionists Terrorist-fundamentalist nexus to survive. Today the ruling National Conference, a mish­ Almost a decade ago, in 1980, then chief minister of mash of nationalists and chauvinists, is being put under in­ Jammu and Kashmir, the late Sheikh Abdullah, had warned creasing pressure from the militant factions and shows signs the Jamaat-e-Tulaba, the militant youth wing of the funda- of caving in.

44 International EIR November 10, 1989 The 'Tiny' Rowland file

Part II qfan EIR investigative series fo llows the trail qf the Israel British Bank and Lonrho.

On Sept. 23, 1974 the London and Tel Aviv-based Israel close friend of Rowland and visits him whenever he is in British Bank (IBB) declared itself bankrupt with over $103.3 London. million in losses to its creditors. Seventy international banks and the U. S. Federal Deposit Insurance Corporation were hit Who killed Walter Nathan Williams? by the shockwaves of its fall. It was the largest collapse of a There were even more disturbing events which arose in British bank since the early 18th-century South Sea Bubble, the Rowland-IBB connection. The founder of the IBB was and it caused a major international diplomatic incident among Walter Nathan Williams, a prominent figure in Jewish phil­ the United States, Great Britain, and Israel. Right in the anthropic circles who had played a rolein founding the nation middle of it all, sat Tiny Rowland, chief executive of Brit­ of Israel. Williams had four daughters, two of whom married ain's Lonrho multinational. Harry Landy and Joshua Bension. As Williams got older, The bank collapsed because two of its principal officers Landy and Bension assumed control over the day-to-day siphoned off tens of millions of dollars in loans to dummy functioning of the bank. According to one of Williams's corporations in Liechtenstein. The results of an investigation granddaughters, Francesca Pollard, in 1970-7 1 Williams was by the British government were suppressed. No one knows complaining about how Landy and Bension were handling where the $100 million went. the IBB's affairs, about their "new friends" (i.e., Rowland), Some things, however, are known: and about their plans to sell the production rights to the • Tiny Rowland was and is intimately associated with Wankel. the two figures who swindled the bank: its London branch Williams fell seriously ill in 1971, but was recovering head, Harry Landy, and its Tel Aviv branch head, Joshua fine when he suddenly died in October. His daughter, Pol­ Bension. Harry Landy is today employed by Rowland, who lard's mother, charged that he had been murdered. The cir­ put up £100,000 bail for him during his trial . Many other cumstances of his death were certainly curious. His death members of the Landy family are on the Lonrho payroll as was not registered for one year afterward, and his will was well. not probated until 1976. In 1974, his sons-in-law Landy and • When the IBB collapsed, Rowland wound up with Bension suddenly produced a document to which they had many of its key pieces. For instance, Rowland became the been the only witnesses, allegedly written by Williams, chairman (and Landy the managing director) of London City which stated that all of Williams's estate should be used to and Westcliff Properties, an IBB subsidiary and one of the back up any loans whatsoever, either then or in the future, largest real estate companies in London. Under Rowland, which any family members might take from the IBB. Thus, the LC&W provided free apartments for Rowland and other Williams had ostensibly issued Landy and Bension, with Lonrho executives. whom he was having sharp disagreements, a blank check to • In 1971 Lonrho, although it was in a severe liquidity loot the IBB, with the knowledge th�t his own estate be used crisis, was negotiating to buy production rights to the to guarantee the "loans." His sudden death on Oct. 30, 1971 Wankel rotary engine, which were owned by an IBB occurred in the same month when lonrho's liquidity prob­ subsidiary. The IBB group was led by Capt. Stefan Klein, lems were at their most severe. And in November, Rowland reportedly once a homosexual lover of Rowland. Somehow acquired the Wankel engine, to which Williams had been Lonrho's liquidity crisis-which was so severe that its opposed. merchant bank, Warburg's, quit Lonrho-was not only Even more curious, the law firm which probated Wil­ solved, but the Wankel rights acquired as well, precisely liams's estate was the same which had handled the estate of at the same time that Rowland's partners in negotiating Tiny Rowland's father, who died in London in 1974 at the the Wankel deal, Landy and Bension, were swindling age of 93. And it had been Rowland's own attorney, John $100million out of the IBB. To this day, IBB's attorney, Cama of Cameron Markby, who under false pretenses con­ Mossad-connected Tel Aviv attorney, Eliahu Miron, is a vinced members of the Pollard family to sign away their

EIR November 10, 1989 International 45 rights to the Williams estate, thus freeing it up to be sucked himself from major responsibilities in the department, be­ into the IBB which Rowland's pals were looting. cause he was a distant cousin of the Guinness family, whose Francesca Pollard claims that Rowland himself may have brewing empire was then under investigation for substantial forged her grandfather's signature on the guarantee witnessed fraud . With Shannon's recusal, a great deal of power fell by Rowland's two cronies, Landy and Bension. The claim into the lap of the DTI's number-two man, its minister of can not be dismissed out of hand, because not only has Row­ corporate affairs, Michael Howard. Abruptly, charges which land always refused to provide Pollard with a specimen of Tiny Rowland had made against the takeover of the House his handwriting to make a comparison, but a former LOnrho of Fraser by the Al Fayed brothers, which had been examined board member was emphatic in stating that Rowland regular­ by several successive DTI heads and deemed not actionable, ly used to forge Angus Ogilvy's signature on bank papers were accepted by Michael Howard, and an investigation was and other documents. launched into the Al Fayeds. Pollard has been on a campaign for years against Why had Michael Howard acted, in effect, on behalf of Rowland. Insiders report that Rowland is terrified of her, Tiny Rowland? Howard, it emerges, is not merely a personal and what she might bring forward were he to ever wind friend of Rowland employee (and, some would say, co-con­ up in court with her. She has been offered £1 million to spirator) Harry Landy, but is Landy's firstcousin ! The close relinquish all claims to the Williams estate and cease her ties between the Landy and Howard families go back to the · attacks on him as the looter of that estate. Besides that early part of this century, to the same little Welsh town carrot, Rowland is apparently brandishing a stick as well: fromwhich both families come. Rabbi Morris Landy, Harry a series of break-ins and beatings have struck Pollard's Landy's cousin, married Michael Howard's parents. Harry family recently, in an obvious attempt to shut her up. But Landy owns a reported £500,000 worth of Lonrho stock; as one City of London insider who has examined the case Rabbi Morris has been a big Lonrho stockholder. And when in depth remarked, "It is perfectly clear to me that he has one of the Landy clan died recently, a big notice of sympathy ripped off her and the Israeli British Bank and taken over was inserted in the London Times by Michael Howard and all that company at virtually no cost to himself. Enormous his family. assets, in what could only be a criminal conspiracy. And he has never been prosecuted." Or, as a former longtime The Meyer Lansky connection Rowland associate commented, "You do not blow up a According to sources intimately familiar with the Ben­ bank that size without assurances that there won't be sion family, Tiny Rowland's friend and business partner repercussions." Clearly, those assurances were given: The Joshua Bension was on very close terms with the late under­ IBB (London) is the only fully authorized British bank world kingpin Meyer Lansky. So close were the two, that ever allowed by the Bank of England to collapse. Lansky was a guest in Bension 's home during his early 1970s Not only was the money never found in this unprecedent­ stay in Israel. Lansky at the time was heavily funding the ed bankruptcy, but RoWland's two cronies who swindled the country's "religious right," in hopes of being granted the money were let off virtually scot-free. Harry Landy was right to stay in the country. The Bensions were also reported acquitted upon appeal, and Joshua Bension was set freeafter to be squiring Mandy Rice Davies, of Profumo sex scandal serving only two years, due to the personal intervention of fame , around Israel, introducing her into the best country his in-law, Israeli Prime Minister Menachem Begin. clubs, etc . One of Lansky's associates during his stay in Israel was The House of Fraser investigation a man named Richard Amsterdam. In 1981, as Lonrho was The cast of characters in the IBB affair re-emerged in a preparing to raise $1 billion to buy the House of Fraser, ' curious way in Rowland's long, obsessive battle to win con­ Amsterdam's name would surface again. According to in­ trol of Harrod's department store and its holding company, formed sources, in September 1981, Lonrho chairman Wil­ House of Fraser. During an investigation by the British gov­ liam DuCann was attempting to raise $1.1 billion, part of ernment's Department of Trade and Industry (DTI) into the which was reportedly for an unspecified"operation" concern­ takeover of the House of Fraser, IBB attorney Eliahu Miron ing the House of Fraser, and part for Lonrho' s Beira pipeline and some of his friends were investigated to see if they had in Mozambique. In January 1981, Lonrho had launched a illegally bought shares in the House of Fraser on Rowland's bid for the House of Fraser, and by the autumn of that year behalf. Miron, who counts many very wealthy Israelis among was expecting a go-ahead from.the Monopolies Commission, his clients, admitted that he had offered to do so, but insisted at which point it would need massive funds to augment its that Rowland had turnedhim down. 29 .9% stake in House of Fraser. The connections of Rowland and his IBB friends, particu­ The loan DuCann was working on was most curious. larly the Landy family, to the House of Fraser saga did not Normally one might expect that Lonrho, one of the top 40 end there. corporations in Britain, would go to a regular bank or insur­ In 1987, Paul Shannon, the head of the DTI, recused ance company to secure the funds. Nor was DuCann raising

46 International EIR November 10, 1989 the money openly on Lonrho's behalf. The intended recipient Products, Matrix Transvaal, and MatrixNatal-all of which of funds was a company represented by DuCann, the Jersey are closely linked to the state arms company, Armscor. Island-based West of England Development Co. (Jersey) That Rowland's name should therefore emerge in the Ltd., had a paid-up share capital of $9. The company from Iran-Contra hearings, as it did in the U . S. Senate when Sen. which he was trying to secure this huge loan was an equally William Cohen (R-Me.) exclaimed in a horrified voice, shadowy entity, the Liechtenstein-based Linsher Anstalt, "Didn't any alarmbells go off within the administration say­ with a tiny share capital of 20,000 Swiss francs. Linsher was ing, 'If Tiny Rowland is involved, my God, who else is controlled by Joseph J. Hirsh, the true party with whom involved?' " should not be surprising. For several years DuCann was negotiating. Hirsh, an American financierand Rowland has been deeply involved with Iran, of which his reputed licensed gold bullion dealer, was the senior partner gun-running there is but one aspect. The following are some in Joseph J. Hirsh Associates of 20 l E. 79 St. in New York features of this Rowland-Iran connection. City. To establish his bona fides, Hirsh provided a list of nine • Rowland's New York attorney is Sam Evans, who personal references, the last four of whom were Richard is also a close friend and partner of Rowland pal Adnan Amsterdam, Raymond Johnson, Jack Pearlman, and Max Khashoggi in gun-runningventur es. In 1986, U.S. Customs Gross-all reputedly longtime associates of Meyer Lansky! officialscaught Evans in connection with an undercover sting operation which also netted Cyrus Hashemi, Israeli Gen. Rowland and the Iran-Contra scandal Avraham Bar-Am, and others, who were supplying guns to In 1987, and again in 1988, an independent team of ac­ Iran. Though caught red-handed, all charges were subse­ countants (as opposed to Lonrho's "in-house" firm of Peat, quently dropped. Marwick) undertook a review of Lonrho's accounts. They • In 1987, Lonrho took a 50% holding in a trading sub­ not only found the company to be in possibly shaky financial sidiary of the West Germansteel firmKrupp , forming Krupp­ condition, but made one additional observation. In the words Lonrho, and making Lonrho in effect a partner with Iran, of a source familiar with the review, "The accountant certain­ which owns 25.01 % of Krupp. In 1988, Lonrho negotiated ly took the view that the whole structure of the company, with Teheran to buy its stake as well. with its 800 or so subsidiaries, could only be explained by a • Throughout 1987 and 1988, Rowland was flying in desire to confuse. " and out of Teheran, often accompanied by German arms Much of the "desire to confuse" has to do with gun­ dealer Wolfgang Michel or the former United Arab Emirates running. Though Rowland has always claimed, as he did in ambassador to the United Kingdom, drug smuggler Mahdi 1986, that "Lonrho has never been involved in arms move­ Al Tajir. His aim was to set up a $1 billion South African ments," a quick overview of Lonrho subsidiaries shows how arms-for-Iranian-oil deal, and he had two people from Matrix ridiculous that statement is. Products in Teheran earlier this yearworking on the deal. Most notorious is the case of Lonrho's Tradewinds sub­ • The first recorded weapons shipment to Iran, the one sidiary , which has been sold off since then. From 1969-75, credited with having kicked off the whole Iran-Contra affair, Tradewinds made huge losses as it worked with CIA agents was financed by a $7.5 million loan from Rowland to Adnan Frank Terpil and Ed Wilson in arming Libya's Muammar Khashoggi to purchase arms. Rowland later claimed he had Qaddafi . Since Rowland has always claimed with great pride no idea what his longtime business partner Khashoggi was that all subsidiaries of Lonrho are profit-making, and Trade­ doing with the money, for which he took mortgages on Kha­ winds was racking up losses year after year, clearly Trade­ shoggi's planes and yacht. winds was not merely, or even mainly, a normal commercial • The three key figures from Israel involved in the Iran­ company; nor is the mysterious Lonrho North Africa, which Contra affairwere: David Kimche, formerdirector of Israel's also runs at a loss year afteryear. Foreign Ministry and head ofthe Mossadfor Africa; Amiram Another Lonrho subsidiary, Armitage Industrial Hold­ Nir, former security adviser to thePrime Minister; and Yaa­ ings, Ltd. is a company whose annual report, every year, cov Nimrodi, former station chief in Teheran of the Israeli states: "The company did not trade this year." Its only asset intelligence service, Mossad. Kimche is now employed by is one airplane. The airplane is used, and has been for years, Lonrho's African Investment Trust Ltd.; Nir, according to to shuttle between Mozambique and Libya with weapons on Israeli sources, was employed by Lonrho at the time of his board. Still another Lonrho subsidiary (through Lonrho's sudden death in Mexico in December 1988; and Nimrodi is 50% ownership of the German freight forwarder Kuhn and currentlythe broker for Lonrho in its attempt to acquire the Nagel), Red Baron, was caught red-handed in 1980 at Lon­ Aviya Sonesta five-starlUXUry hotel inTaba on the Red Sea. don's Gatwick Airport trying to smuggle arms to South Afri­ The Dec. 5, 1986 Jerusalem Post :reportedthat Rowland, ca. In addition, numerous of Lonrho's subsidiaries are Israel, and the CIA were going to ship armsto Iran via Zaire. cloaked in "national security" secrecy, where the only infor­ Rowland claims that the deal did not go through. mation on file is a "dispensation not to file." This is the case with Lonrho' s three arms producers in South Africa-Matrix Next week: Whom does Tiny Rowland really workfor?

EIR November 10, 1989 International 47 Simon Wiesenthal: A real Nazi-hunter draws the lessons of history by Laurent Murawiec

it in in the hope of saving him from a death sentence. Ultimately, this does not matter; I am glad he said it." Justice o'est pasvengean ce: une This makes the point, as does the book's title, that Wie­ autobiograpbie senthal seeks justice, but not revenge. Is "revenge" not by Simon Wiesenthal with collaboration from incommensurable with the crime, anyway? The author ex­ Peter Michael Lingens. translated by Odile presses the same when he reports on a debate with young Demange Robert Laffont. Paris. 1988 Germans: "Try to disassociate this question from the Jewish 394 pages. 115 French francs question-it is genocide per se that interests me. . . . Geno­ cide is the crime that most fatally threatens mankind."

The Waldheim affair The autobiography of Simon Wiesenthal has just been Some courage was required for Wiesenthal to tackle the published in French, in translation from the original true causes of the ruckus raised against Austrian President German written in collaboration with Austrian journalist Kurt Waldheim: He shows how the Austrian Socialist Party , Peter-Michael Lingens. What impressed me reading it is even before Bruno Kreisky was its leader-and especially the passion for the Law displayed by the famous "Nazi­ under Kreisky, and ever since--+-hadbought a good chunk of hunter." Wiesenthal considers himself a survivor, one that its political success on an armistice with Austria's Nazis, only chance and accident saved from the Holocaust, and and, worse, with Nazism. He proves that the Austrian Social­ one indebted to those who did not survive; it is in their ists could not have cared less about justice on that account, name, and to repay that debt, that he has since the war but launched the Waldheim affair for despicable reasons of worked against the barbarism that caused the slaughter. gutter-level politics. He details the abhorrent complicity His book of memoirs shows it. [Mittiiterschaft] and role of the so-called World Jewish Con­ Let us see him in the Eichmann affair and the Waldheim gress and its head Edgar Bronfman-those who issue charges affair: Greatcrises reveal personalities. In the first case, his firstand investigate last, to quote Wiesenthal's scathing char­ meticulous intelligence work gave Israeli intelligence the acterization. He shows how Bronfman and his clique merely data required to locate and identify, and then snatch the used that one piece of dirty Austrian political laundry to serve bureaucratic organizer of the "Final Solution." Wiesenthal their own ends and goals, which have nothing to do with specifies that Israel must be thanked for having given Eich­ Jewry, justice, or hunting Nazis, but everything to do with mann due process. That trial established concretely that Bronfman's stinking businesses. there is a Law higher than the victors' law (contrary to the This being said, Wiesenthal has no love lost for Wald­ Nuremberg trials), a law higher than "might makes right." heim-the lily-livered, flabby opportunist, always crawling The Eichmann trial showed that crimes against mankind can to currythe mighty's favor-but demands that the defendant be tried, and the criminals broughtto justice-justice is not be given due process: presumption of innocence, fair and based on territorial or jurisdictional considerations. Con­ equitable trial, the right to defend himself and prove himself cluding this chapter, Wiesenthal reports Eichmann's final innocent, if he be so. He concludes that the Austrian Presi­ statement at the trial, "I must admit that, today, I consider dent had never been a Nazi, but showed by his very attitude the extermination of the Jews as one of the worst crimes how unworthy he was of his high position. ever committed in mankind's history. We must do all in The gallery of portraits drawn In the book is not very our power to prevent such a thing from happening again." inviting. The reader encounters the banal monsters, the bu­ Wiesenthal's comment: "I do not know whether this sentence reaucrats of crime, the professionals who commit slaughter was sincere or if his lawyer had suggested that he squeeze without batting an eyelid-they kill, for such is their job,

48 International EIR November 10, 1989 what their superiors ordered them to do. Wiesenthal de­ society, that expressed in the COII1fI1andment "Thou shalt scribes them as socially well-integrated , acting within the not kill." "Professor Hackethal demands of himself and his guidelines set by institutional power, allowing them later to colleagues to overcome this inhibition. This frightens me. I argue, "I was only obeying orders"-not to speak of the do not like hasty comparisons, but this self-same argument cowards who knew nothing, saw nothing, and guessed noth­ had already been raised by some doctors under the Third ing---quite a lesson for today's events ! Reich: It was medical ethics that demanded murder, in order Some portraits are overwhelming testimonies to the mor­ to avoid something worse-in the event the Judaization of al beauty of mankind: concentration camp inmate Dr. Ade­ Germany, or the spread of hereditary, diseases." He correctly laide Hautval, who put her life at stake when she flatlyrefused points out that there was no difference between the Nazis' to take part in the atrocious "medical experiments" inflicted "T4" program that prescribed euthanasia against the so-called upon prisoners, and did not hesitate to drive home her point "incurables," and then against the "mental defectives," the in the following exchange with SS doctors: "What do you elderly, and finally, Jews and gypsies. mean, you do not want to operate on healthy human beings? Don't you know that there is a difference between human Nazism equals Bolshevism beings? You're being told to operate on Jewesses." She an­ From Wiesenthal's narration, the Soviet Union and its swered: "Of course there are differences between human satellites emerge branded with the Mark of the Beast. The beings. Between you and me, for example." book shows unambiguously that Soviet Russia is in no way Wiesenthal also introduces us to two members ofthe Nazi second to the Third Reich, that Mosc

EIR November 10, 1989 International 49 Report from Bonn by RainerApel

East Berlin's race for time aim at a redefinition of the key "trea­ Both the East German regime and the opposition are under time son" and "political crime" articles in the penal code of law, a relic from pressure, to escape economic and social chaos. the Stalinist period of the 1930s and 1940s. The ban on unauthorized travel abroad-still considered "illegal bor­ der-crossing" and a crime against the T he leadership of East Gennany's tance of the armed forces. "There are, state-is to be lifted. The one-party communist party, the SED, is trying nowadays, mass protest actions where rule of the SED would yield to a de­ to contain the public protest move­ the slogan 'We are the people' can be gree of pluralism that pennits other, ment and to have refonns, if only to heard. I want to emphasize that the non-Communist parties to emerge and stabilize the one-party rule, but seems 'people' includes everybody-also grow, and to have free elections to a to be provoking ever greater protest the members of the army, the border free parliament. Also new legislation rallies and marches against the re­ troops, and other armed forces, who definingthe role of the police and state gime. Refugees are still leaving the are seeing to it that nonnalcy rules at security forqes (operating in an abso­ country as well, with almost 4,000 the dividing line between socialism lute gray zone now), and a "freedom crowded into the West Gennan em­ and capitalism every minute of the of infonnation act" for the citizens, bassy compound in Prague, Czecho­ day . are urgent. slovakia. "Generations of socialists and Furthennore, the movement is There are no illusions among refu­ communists have worked for this first calling for free laborassociation out­ gees or those who are still engaged in socialist state on Gennan soil, and we side of the hitherto SED-controlled la­ protest actions, about the new man at will not give it up, just to hand it over bor federation. There are calls for the the top, Egon Krenz, whose remarks to the forces of capitalism as if it were deregulation of the monstrous but in­ at an international press conference a bankrupt venture. We will work on, efficient industrial combines, to make after talks with Gorbachov in Moscow with joint forces, to make socialism way for the growth of productive pri­ Nov. 1 revealed that he does not con­ more perfect. " vate sector initiatives like crafts shops ceive of himself as a "refonner." Krenz knows he doesn't have and medium-sized ventures. Also the Krenz's Moscow remarks in re­ much time to get the explosive social agricultural �ooperatives are to be de­ sponse to press questions from the situation in East Gennanyback under regulated, for the sake of establishing floorread like a Stalinist consolidation control. True, he is in command of a private sector farming. program: "Whether or not I am a hard­ powerful police-state apparatus, but The restoration of the ailing rail­ liner in your eyes, is not the question. even a Communist with 25 years of way system, the development of I am a Communist, in the first training in the hands of the Soviet strong sectors producing consumer place ....I have had, and still have, KGB like him, has to weigh the ques­ goods, civilian electronics and ma­ to fulfill certain tasks in my function tion whether it is opportune to go the chinery, is another demand on the at the party top, for which lam held Chinese way and order a bloody movement's priority list. Over the responsible at the party; the aim of my crackdown on the opposition, pro­ past 20 years, hardly any new invest­ policy is to make socialism stronger voking a stream of refugees which ment has been made into these sec­ on Gennan soil." brings down the regime by mere de­ tors, while massive investments were Krenz reiterated his "finnconvic­ sertionto the West, or to grant conces­ pumped into the military sector and tion that the system of socialism is the sions to the growing anti-regime cash-oriented export industries pro­ better one, a real alternativeto capital­ movement. ducing for dumping offensives on ism." He said his offerof "dialogue is Opposition leaders are also under Western markets. addressed to all those that share the time pressure to get refonns on the Finally, the demilitarization of the postulates of our constitution for so­ way, but their prospects are dim. Up­ education sector is being called for, cialism." front in the demands of the movement aiming at the withdrawal of the pre­ Two days earlier, Krenz are calls for substantial modifications military training from the curricula addressed a meeting of cadets from in the political and judicial system, the and an end to the mandatory training Warsaw Pact military academies in economy, and the education sector. in special camps for secondary and East Berlin, emphasizing the impor- The proposed political refonns university students.

50 International ElK November 10, 1989 PanamaRep ort by CarlosWe sley

Invasion mooted at summit sassination" of Noriega during a tele­ Panamanians warnedBu sh that Noriega's assassination will vised interview, charged Panama's Interior and Justice Minister Renato bring reprisals fr om all [bero-American nations. Pereira. Reportedly Endara said that Noriega would leave office "dressed in wooden pajamas before the end of T he assassination of Gen. Manuel stay away. Billed as a celebration of the year." Noriega, commander of the Panama­ the centennial of Costa Rican democ­ Hauled before the authorities upon nian Defense Forces (PDF), and plans racy, the summit was really intended returning to Panama, Endara denied for a military intervention against to provide a forum for Bush to tell that he had called for Noriega's assas­ Panama were among the topics Ibero-American leaders to get behind sination, but admitted to making "jok­ discussed by President George Bush the U.S. power-sharing arrangements ing" remarks that could have led to and Ibero-American leaders at the with the U.S.S.R. The expectations that conclusion. hemispheric summit held in Costa were that the U.S. ouster of Noriega For the Panamanians, the murder Rica Oct. 28-29. At a press confer­ would serve as an object lesson for of Noriega is no laughing matter. The ence in San Jose, the Costa Rican cap­ any other leader who dared to chal­ national committee of the rulingDem­ ital, Bush claimed that Noriega is lenge the new order. This scenario, of ocratic Revolutionary Partyapproved doomed. "The day of the despot, the course, fell through after the Oct. 3 a resolution on Oct. 28 saying, "We day of the dictator is over," he ranted. attempted coup fiasco. hold the Bush administration and its Venezuela's President Carlos An­ In the end, the summit degener­ internal allies responsible for the un­ dres Perez, along with Costa Rican ated into a circus, with no substantive fathomable consequences which the President Oscar Arias, who hosted the discussion of any of the serious points plans to murder Commander Manuel summit, worked with Bush to provide on the agenda: debt, development, Antonio Noriega imply for Panama a cover for a U.S. military interven­ drugs, and "democracy." And while and the continent." They warnedthat tion. The plan would "enlist token Panama's President Francisco Rodri­ any attempt against Noriega would be Latin American military forces or aid guez was not invited because "he was countered in such a way, "that no in any U. S. armed action against Pan­ not democratically elected," the head place in our country or Latin America ama," reported the Baltimore Sun on of Nicaragua's Sandinista regime, will be safe for the enemies of national Oct. 28. Daniel Ortega, was. liberation. " Perez, who collaborated with Bush and Ortega engaged in a silly In an open letter to the Presidents Bush in the failed Oct. 3 coup attempt game of "photo opportunity," with of Latin America, President Rodri­ against Noriega, worked with Arias to Bush doing his darndest to avoid be­ guez repeated the offer he made to the draft statements condemning Noriega ing photographed with Ortega. "He's United Nations on Oct. 3, for Panama for adoption by the summit. Among always sidling up to me looking for to be the headquarters of a multina­ the proposals was a plan for the na­ some kind of photo op," said Bush. tional force against drug trafficking, tions ofIbero-America individually to Ortega, who presides over a Soviet provided "that such a force is estab­ break diplomatic relations with client-state, got his picture. He also lished through an international treaty Panama. hogged the headlines by first cancel­ that guarantees that the sovereignty But the summit concluded without ing, then reinstating, and then cancel­ and territorial integrity of nations is issuing any declarations on Panama ing again a cease-firewith the Nicara­ respected." or any other topic. President Carlos guan Contras, whom the United States The Panamanian President chas­ Salinas de Gortari of Mexico did not is sacrificing in the horse trading with tised his Ibero-American colleagues show up. Neither did the Presidents of the Russians. for calling for democracy in Panama, Bolivia, Guatemala, the Dominican While in Costa Rica, Bush met "without once mentioning the merci­ Republic, Paraguay, or Peru; and with Guillermo Endara and other lead­ less economic, political, and diplo­ without their public endorsement, any ers of the Panamanian version of the matic aggression that the U.S. has condemnation of Panama would be Contras, the CIA-financedPanamani­ launched against us, and without men­ meaningless. an Democratic Opposition Civic Alli­ tioning the permanent harassment by The summit was doomed to failure ance (ADO-C). After the meeting, U.S. armed forces against our ter­ long before those nations decided to Endara "practically called for the as- ritory. "

EIR November 10, 1989 International 51 Report from Rio by Silv ia Palacios

'Green terrorism' looms monwealth. , Since its founding, Brazil's terrorists from the197 0s are suddenly veryconce rned Greenpeace has accumulated capabil­ about saving the ecology. ities quite atypical of an international lobbying effbrt. For example, it pos­ seses an international fleet of ships, which enables its forces to deploy globally to �y point of military or T he Brazilian environmentalist nounced that the two parties would commercial ;interest; it has sophisti­ movement is getting ready to enter dedicate their efforts to sabotaging the cated electronic surveillance equip­ into a pre-terrorist phase, with its most continued nuclear deal between Brazil ment and a:complex computer net­ visible targets being advanced science and West Germany. That deal has al­ work worldwide. research centers, military technology, readybeen shrunk to a mere shadow of To these ecologist pressures on and energy production facilities. its former self, a result of the financial Brazil can be added that of the United In October, several ecologist straitjacket that has been imposed by States, which is determined to block groups attempted by legal means to the International Monetary Fund on development of the Brazilian aero­ block military maneuvers in the state Brazil. space program, and the rantings of the of Mato Grosso do Sui, with the argu­ The Greens in both countries ad­ international ecological-fascist ment that those maneuvers would vocate the installation of small hordes who seek to impose the con­ damage the environment. They also hydroelectric and thermal plants­ cept of "limited sovereignty" over the attempted to halt the operations of the part of the "appropriate technologies" Brazilian Amazon. It was this "Ama­ Angra I nuclear plant, and to shut strategy encouraged by the World zon" lobby which sponsored the dem­ down the army's Technological Cen­ Bank-and urge rationing of energy onstrations in front of the Brazilian ter in Rio de Janeiro. On Oct. 26, a consumption by 20%. Such rationing embassy in London on Sept. 13. The horde of greenies "occupied" a will be the inevitable catastrophic re­ entrance of the embassy was blocked hydroelectric plant in Sao Paulo. Ap­ sult, in any case, of the serious lack by a mountain of mailbags containing proaching the plant by river, they at­ of investment that Brazil's energy sec­ letters demanding that the Amazon re­ tempted, without success, to discon­ tor is suffering-another consequence gion be treated as "the common patri­ nect the motor on a water pumping of the genocidal colonial policies im­ mony of humanity," instead of as the device. posed on Brazil by its international territory of a sovereign nation. As elsewhere in the international creditors. Participating in that demonstra­ ecology movement, the leadership It came as no surprise when Tani tion were, among others , Greenpeace, nucleus of Brazil's "greenies" is Marilene Adams, the Ibero-American Survival International, and Friends of made up of a group of "former" representative of the international the Earth-all coordinated by the Bra­ terrorists from the 1 970s . Among ecological terroristmovement Green­ zilian Network. Some of these are also them is Fernando Gabeira, head of peace, announced Oct. 16 that that or­ connected to the Ecological Assem­ Brazil's Green Party, and various ganization will be opening offices in bly, an entity in Mato Grosso do SuI militants of the old Alian<;a Liberta­ Brazil, its first in a developing sector which has sought to prevent the hold­ dora Nacional (ALN), the best orga­ nation. Adams said that Brazil's par­ ing of military maneuvers. nized terrorist group of that decade, ticipation in "the world debate on the The intent of these coordinated ac­ led by urban guerrilla expert Carlos environment is indispensable," and tions is to force the Brazilian govern­ Mariguella. that Greenpeace in Brazil would serve ment to abandon its commitment to Recently, the Brazilian Green Par­ as a major distribution center for infor­ researching and implementing mod­ ty formalized its relations with its mation to other groups throughout the em technologies, such as nuclear and West German counterpart, the continent. aerospace. They want to force the Greens, who already hold seats in the In the 1970s, Greenpeace boasted government, by means of terrorist West German parliament. Both parti­ of being "the ecology movement's blackmail, to sign the nuclear Non­ es decided to combine their fascist shock troops." Now, Greenpeace Proliferation Treaty, which has been goals. At a press conference given serves as an intelligence agency for properly viewed by the majority of Oct. 24 , the general secretary of the several countries, but principally the Brazilians as a clear violation of na­ German Greens, Eberhard Walde, an- Soviet Union and the British Com- tional sovereignty.

52 International EIR November 10, 1989 AndeanRep ort by Mark Sonnenblick

Peru doesn't have to lose cocaine war Shining Path called an "armed The Catholic Church and some militaryand political/actions strike" for Nov. 3 and is well on its way to disrupting the Nov. 12 munici­ are resisting the surrender to narco-terrorism. pal elections. Over 60 candidates and office holders have been assassinated in the past month. Hundreds of others have quit in the face of death threats. Peru is being destroyed as a sover­ ic output to drop 20% in the past year. Security sources · say the terrorists eign nation by the idea that it is "too Poverty and misery are ubiquitous. A could prevent elections in a third of poor" and "too dependent on the co­ senior Bush administration official Peru's territory. caine industry" to eradicate it. When admits, "This country is in the middle "Tell Luis Vasquez we will put Alan Garcia became President in of an economic crisis" and "doesn't a bomb in your offices at any mo­ 1985, he rallied his nation to fight have the money" to stop a 20% in­ ment," an anonymous caller to the drugs, usury, and communist terror. crease in coca production this year. offices of the PeliUvian Labor Party The drug mafiawas hit hard. Ifhe does The politicians-from left to right­ threatened on Oct. 17. Vasquez, not soon resume the moral initiative, conclude that Peru needs the $3 billion Secretary General of the PLP, is Peru will be destroyed. brought in yearly by cocaine exports. an associate of American statesman Peru has stopped coca bush eradi­ But an EIR study has demonstrated Lyndon LaRouche. Since the Co­ cation. Prime Minister Guillermo Lar­ that Peru's dependence on coca dol­ lombian government went to war co Cox cynically suggested that the lars caused rather than alleviated the against the drug cartel in August, United States should buy the coca leaf economic collapse. the Labor Party has been campaign­ crop . President George Bush equally The war on drugs has ground to ing for Peru to do the same. cynically stated on Nov. 1 that the An­ a halt. Gen. Alberto Arciniega, army Two weeks before, PLP organiz­ dean countries, the front line in the commander in the major coca zone, ers had found painted on their office cocaine war, could only get U. S. aid argues, "Most of my troops come door, "Death to Informers-Shining "to encourage and support fundamen­ from this area. In effect, the police Path," and a hammer and sickle. Lat­ tal economic reform in the countries were wiping out their families' liveli­ er, the telephone lines in the office of of the region on the basis of market­ hood while I was asking them to fight the PLP were suddenly disconnected. driven policie!i." Such policies are the Shining Path [terrorist gang] , Telephone company technicians re­ precisely what has fa cilitated drug which was sworn to protect growers . ported there had been "an act of sabo­ trafficking. Shining Path looked like heroes. It tage, deliberately disconnecting the Garcia is doing just what Bush de­ was a crazy idea." lines. " manded. In the next few months, Peru The Bishops Council ofthe Catho­ Retired military officers have is­ will take investments in exchange for lic Church condemned the politicians sued a call for immediate action to relief on its foreign debt, open up free in the United States and Peru hanker­ save Peru while it is still possible. ports, and host an InternationalMone­ ing for "dialogue" with narco-terror­ "President Alan Garcia [must] make tary Fund mission. ists and legalization of drugs. It de­ the political decision . . . to combat The Garcia government's cutting manded "radical action against the co­ terrorism before it is too late," the As­ farm subsidies is "contributing to the caine traffickers and the corrupt civil sociation of Retired Armed Forces Of­ propagation of narco-terrorism," a and police authorities implicated by ficials demanded in an Oct. 17 re­ faction of his own APRA party omission or commission in the per­ lease. Peasants, local officials, and charged. In an Oct. 24 newspaper ad, verse drug trade ." It noted that the ter­ members of the Armed Forces and po­ the Cultural Association for the Social rorists "ally with the heads of the drug lice are being massacred, while the Protection of Youth and the Popula­ trade , to expel civil and police authori­ Military High Command and politi­ tion demanded "a radical change in ties from the zones where they oper­ cians look out for "their personal polit­ our agrarian policy." It urged Peru to ate . In exchange for protection and ical interests," they charged. join "the total war on drug trafficking" services given their business, the drug The retired officers blasted the declared by "our sister Colombian re­ traffickers supply the terrorist groups "cowardly attitude" of the military public." with weapons, money, food, and brass, which sends soldiers to battle Garcia's policies caused econom- transport. " without equipment.

ElK November 10, 1989 International 53 12 International Intelligence

who recently pardoned Seineldin and 181 from the resale of the drugs. The money is British SAS training other officers whowere involved in military laundered through tax havens and offshore Cambodian guerrillas uprisings during the 1983-89 regimeof Raul banks." Alfonsin. Seineldin has stated that he will not con­ British Special Air Service troops have been test the decision, but Menem can disapprove training Cambodian guerrillas who are now Bonn offi cialattacks it. fighting with Pol Pot's Khmer Rouge, A hero of the 1982 Malvinas War, Seine­ Sachs's role in Po land Jane's Defence Weekly reports . ldin led a December 1988 uprising against At the behest of the United States, the Alfonsin's anti-military policies and de­ We st Ge�an Chancellor Helmut Kohl's British Ministry of Defense approved the manded that steps be taken to restore dignity National Security Adviser Horst Te ltschik SAS involvement in 1985, and Hong Kong to the institution of the Armed Forces. At the attacked the role of "Harvard economists" sources report that Malvinas War veterans time, Seineldin was stationed in Panama, in giving advice to Poland, while We stern were flown to Thailand to create a "sabotage serving as military attache and adviser to the governments have come up with precious battalion" ostensibly commanded by troops PanamanianDefense Forces. little in the way of financial aid. loyal to former Cambodian ruler Prince Si­ The board charged Seineldin with hav­ The criticism was directed notably hanouk. These troops are nowintegrated in ing abandoned his post in Panama "without against Jeffrey Sachs, whose widely touted the "national army" of the four-party Cam­ authorization," with "surreptitiously enter­ plan to "save" Bolivia turnedthat nation into bodian resistance dominated by the Khmer ing the country," and with formulating "de­ a drug plantation, and who has drawn up an Rouge, by far the best armed and most pow­ mands ...referring to the government's austerity program for Poland at the request erful of the groups. Under dictator Pol Pot, military policy." The effect of the decision of the new government there(see EIR , Sept. the Khmer Rouge killed 3 million Cambodi­ is to nullify the recentlygranted pardons for 21, 1989 "The 'orthodox' road to a dope ans during its brief rule. the nationalists, while leaving them in effect economy"). On Nov. 15 Britain will co-sponsor a for those who "disappeared" thousands of "The Poles don't need Harvard profes­ resolution at the U.N. General Assembly citizens in the 1970s war against subversion, sors telling them what to do," Te ltschik said. which "deplores foreign [i.e. Vietnamese] and for the leftist terrorists they were "What is really important is to give the Poles armed intervention in and occupation of fighting. the means and chances for reform, and time Kampuchea," the Independent newspaper is pressing." reported Oct. 31. The U.N. resolution calls Hinting that Kohl will give credit guar­ for a "comprehensive solution" in Cambo­ antees for a new 3 billion deutschemark dia, and refers to the U.S.-Chinese plan for emergency investment package when he including the Khmer Rouge in a coalition French minister calls visits W/Vsaw on Nov. 9, the chancellor's governmentin Phnom Penh. adviser called for "assistance also by other fo r total war on drugs We stern countries."

"A total war must be waged against drugs, Argentina's Seineldin the plague of modern times," wrote French Two Franco-German Deputy Foreign Minister Edwige Av ice, in fo rced to retire the French daily Le Figaro Oct. 25 . military projects cut Avice demanded that "economic, public Col. Mohamed Ali Seineldin, leader of the health, social, and public order solutions" The We st German government has elimi­ nationalist wing of the Argentine Army, has be adopted. ''The U.N., the Americas, and nated two joint German-French military been forced into retirement by a decision Europe resound with the echoesof President projects for "budgetary reasons." of the Army Promotions Board and Army Barco's speech . . . it is impossible not to The cuts are occurring against the back­ Chief of Staff Gen. Isidro Caceres.Colonel choose sides." ground of stagnating Franco-German rela­ Seineldin was eligible to bepromoted to the The Socialist minister explained that tions. But Horst Te ltschik, We st German rank of general in December ofthis year, but "the drug trade reportedly has a turnover of Chancellor Helmut Kohl's national security in a decision announced Nov. 1 in Buenos $500 billion, that is 40%of the entire Third adviser, was at pains to stress how greatly Aires, General Caceres said that Seineldin World debt, or the entirety of Latin Ameri­ Bonn values its ties to France. "Next to was "unfitto continue in active service." ca's debt. The collapse of the price of Co­ friendship with the United States, the top The decision is the work of the High lombian coffeehas caused an immediate in­ priority in our policy is friendship with Command, which has long wanted the colo­ crease in coca cultivation in Colombia. But, France." The chancellor went to France on nel removed from active duty. Its action is a the income received by the farmers cannot Oct. 24 for meetings with French President slap in the face to President Carlos Menem, compare with the millions of dollars drawn Francois Mitterrand.

54 International EIR November 10, 1989 Briefly

• ISRAELI FINANCE Minister The projects affected by the cuts im­ monitoring military activity in the Port of Shimon Peres will visit the Soviet posedby the fiscal commission of the parlia­ Rotterdam, which is NATO's most impor­ Union in December, on the firstvisit ment, are the PAH-2 anti-tank helicopter tant logistical port, the spies were trying to there by an Israeli minister since (night combat-capable) and a modernized recruit technical and university students as Moscow sever�d diplomatic relations version of the French Exocet air-launched spies. with the Jewish state in 1967 . "The missile. Soviet Union has changed its aims also in regard to the Middle East," Angry receptiongreets Peres said. "They have a keen interest Hungarian defense chief in economic ties with us, and we have 'cannot exclude ' civil war Samper Pizano in Europe a keen interest in economic ties with them." Ernesto Samper Pizano, the Colombian Hungarian Defense Minister Gen. Ferenc presidential candidate who is a top interna­ THE FIRST 'CENTER Karpati stressed how grave the Hungarian • for In­ tional promoter of drug legalization, found crisis has become, presenting a picture in ternational Environmental Law" has a less than friendly reception during a Euro­ which bloody civil war cannot be ruled out, been opened in Great Britain, based pean tour at the end of October and begin­ at King's College, London, and will in an interview with the French daily Le ning of November. Wherever he went, and have an office in Washington, D.C. Figaro Oct. 26. tried to pass himself off as an "anti-drug Times "Politically, we have many problems, the of London reported Oct. fighter,"the Schiller Institute blew his cover many conflicts. And there is little hope our 31. by circulating the facts on his pro-legaliza­ situation will get better. Therefore we're tion stand. SHINTARO ISHIHARA, poli­ very concerned," Karpati said. Asked • In one such instance, in Stockholm, A Japan that whether the crisis in Hungary could become tician and co-author of Sweden, the institute distributed leaflets Can Say No, an armed conflict, he replied, "I can't ex­ writes that he is afraid around government buildings prior to a clude the appearance of an armed conflict. that one day the United States and meeting between Samper Pizano and the Theoretically, everything is possible." Soviet Union will decided to gang up Swedish foreign minister, denouncing the Karpati's remarks were the firsttime that on Japan, whichhas no nuclear arms, Swedish governmentfor sabotaging the Co­ the defense minister of a Warsaw Pact nation "since both Aptericans and Soviets lombian government's war on the drug has publicly stated that bloody civil wars are white," the Daily Telegraph re­ could erupt from the East bloc crisis. cartels. portedOct . 31. Swedish National Radio news on Nov. 1 picked up the campaign and blasted Samper • CHAIRMAN MAO is making a Soviet shipp ing agency Pizano as a proponent for legalization of comeback in Communist China, ac­ drugs: "If legal and police efforts fail, I am cording to Reuters, which reports exposed as spy center for legalization of drugs, says Samper Piza­ that Beijing's hardline leadership is no from Colombia, on a visit to Sweden. trying to resurrect him as a national A Soviet shipping agency, Tr answorld Ma­ But legalization of drugs, he claims, is not hero, in order to defuse popular resis­ rine Agency, based in Rotterdam, the Neth­ something that can be done unilaterally; it tance to the Communist regime. erlands, regularly plays host to KGB agents, has to be a multilateral decision ....His according to a leading Rotterdam financial critics claim that he is serving the drug traf­ • FIDEL CASTRO told the Papal daily, NRC Handlesblad. on Oct. 21. fickers' interests by his unclear stand on Nuncio in Havana that he would wel­ Last April. G.S. Karpensyenkov, a drugs and his demand for a dialogue with come a visit by Pope John Paul II. known KGB officer who used his position the drug barons." as a trade representative at Transworld Ma­ SamperPizano is fraudulently trying to • THE TRILATERAL Commis­ rine as a cover, was expelled from the Neth­ portray himself as a close friend of Luis sion's Europe� branch met in Lon­ erlands for engaging in espionage, after try­ Carlos Gahin, the presidential candidate don Oct. 27, with a specific agenda ing to bribe a police officer who was in­ whose assassination · by the drug mafia last to consider the British political situa­ volved in monitoring Soviet seamen and summer triggered the government'sshift to­ tion. It was hosted by Sir Michael other Russians there . Europe's largest-ever ward a military war on drugs. But as the Palliser, a senior Foreign Office in­ seizure of heroin was from a Soviet ship in Swedish radio broadcast pointed out, "Ga­ fluential who has long been activein the Port of Rotterdam in 1986-a shipment hin had a very clear standpoint on fighting Anglo-Soviet "Trust" circles and is arranged through Tr answorld Marine the drug barons. The man who is going to now a director at the Midland Monta­ Agency. succeed him is much more unclear in his gu investment bank. In addition to trying to bribe police and stand on drugs."

EIR November lO, 1989 International 55 �TImNational

His presidencyadri ft, Bush embarks on summit at sea

by Nicholas F. Benton

Just as critics of President Bush began taking their gloves off replaced by a racist, hardline regime that would resort to the to condemn his lack of leadership, the President announced "Beijing solution" of brutal internal repression, and renewed an unstructured December "non-summit summit" with Sovi­ military threats to the West. He cautioned the U.S. to take et President Mikhail Gorbachov at a White House press con­ adopt a "wait and see" posture, making no commitments, ference Oct. 31. The summit, or "meeting," as Bush officials especially in arms control or economic bailouts, until at least insist on calling it, is scheduled to occur aboard two ships, next summer. one U.S. and one Soviet, off the coast of Malta in the Medi­ terranean on Dec. 2-3. U.S. asked to accept crackdown The "non-structured" character of the meeting, as de­ For his part, Gorbachov has let it be known that he is scribed by Bush during his rambling press conference, has prepared to adopt "Beijing solutions" of his own against experts alarmed. One journalist could not help raising the dissenters. As the Soviets announced the Dec. 2-3 meeting spectre of the close call at Reykjavik, Iceland in October in Moscow simultaneously with Bush's announcement in 1986, when Gorbachov nearly took President Ronald Reagan Washington, senior U.S. administration officialsnoted that to the cleaners in a similar "non-summit" called on short Gorbachov has privately told Bush to expect "some steps to notice. Although the U. S. administration denies that there be taken within the Soviet Union that might be inconsistent have been any pre-set agenda items, and that "both sides will with democratization." Gorbachov will repeat this line dur­ be free to bring up whatever ideas they want," there are ing the December meeting, according to the administration widespread reports that the Soviets will be coming primarily source quoted in the Nov. 1 Washington Post. He will "ap­ with economic demands. peal for U. S. understanding and restraint" as "he may be Gorbachov will be looking to come out of the December obliged to take steps that seem inconsistent with his goal of meeting with promises of an economic bailout to salvage his democratizing Soviet society"-namely, a domestic position within the Soviet Union, where he faces the gravest crackdown. challenge since he took power in March 1985. Despite seek­ Citing the economic crisis within the Soviet Union as ing support within the Supreme Soviet for a ban on strikes the cause for the unrest requiring the repressive measures, during the severe Soviet winter, Gorbachov has already seen Gorbachov is expected to press Bush for an economic bail­ some potentially crippling strikes break out. If they spread out, which would include removal of the U.S. Jackson-Yanik to the transportation sector, the country will be paralyzed, Amendment that prohibits granting the Soviets "Most Fa­ and the growing legions of Gorbachov enemies will use the vored Nation" trading status with the U.S., and relaxation of occasion to dump him. the COCOM restrictions on high-technology trade between Soviet expert Gen. Paul Albert Scherer, the retired head the West and the East bloc. of West German military intelligence who was in D.C. to Western experts fear that, given what they call Bush's brief officialsfor two weeks just before the announcement of "almost pathological inability to make command decisions," the December summit, said that Gorbachov has no more displayed over recent months, he might cave in under the than seven months left. He warnedthat Gorbachov would be pressure of long, arduous, unstructured private talks with

56 National EIR November 10, 1989 Gorbachov and give the Soviet leader almost everything he This reporter followed up: "Do you think if thereis any­ wants-much as Reagan did in Reykjavik. Under such cir­ thing that you could do to help strengthen his position in the cumstances, Gorbachov could also commit Bush to huge Soviet Union that you would do it?" reductions in conventional forces in Europe. Helping to con­ Bush answered, "Well, I think we've got to know what vince Bush of the virtues of such a deal will be the impact of 'it' is. But this is the kind of discussion we can have. I say the Fiscal Year 1990 budget sequester, which his vacillation this: I don't think you base the foreign policy of a great power permitted to extend more than a month into the new fiscal like the United States on one personality." year, and which could become permanent. The budget se­ Later in the press conference Bush repeated, "We are not quester could force a U.S. military manpower reduction of basing the foreign policy of the U.S. on any individual," as many as 120,000 in 1990, and Bush might look at a new, adding, "We've got to look at broad changes, we've got to sweeping conventional forces reduction offer by Gorbachov look at commitment from all elements of leadership in the as an answer to his budget dilemma. Soviet Union, where they come from-fascinating meeting Experts fear, of course, that such a development, com­ the other day with Mr. Primakov here-and assess all of this bined with anticipated rapid progress toward a strategic nu­ and spell out as clearly as you can what's in the interest of clear arms (START) accord by early next year, could result the U.S. and the Alliance. in restoring to the Soviets a decisive war-winning military "And this meeting will help in that regard. But it's not margin over the West, which could be lethal in the hands of predicated, our whole arms control agenda, on Mr. Gorba­ either Gorbachov or his successor. chov. Similarly, I don't think they do that on a U.S. President What experts fear most in the context of the superpower at the time. . . . You hear a lot of cross-currents about how relationship is the overall pattern of Bush's behavior since successful perestroika is going to be. But one thing you get taking officelast January. The most common expression cir­ back fromall the Soviet leaders is, look, the clock isn't going culating in Washington currently is that Bush "still thinks he to be set back and we-'we'-are going to go forwardwith is the vice president." Namely, he still thinks he is in a perestroika. Whether it's Mr. Yeltsin when he was here or job that requires only ceremonial, but not decision-making Mr. Gorbachov's statements and visits with Shevardnadze, duties. He has the travel schedule of a vice president, hitting visits with Mr. Primakov; and then others meet with other the road almost weekly to stump for a candidate or push layers of the Soviet bureaucracy. And you get the distinct some symbolic program, while refusing to make command feeling that the clock is not going to be set back to square decisions. one." Driven by such an obsession that the Soviets cannot fail As a result, the nation has ground to a virtual standstill but to move forward, Bush is prone to look at any evidence domestically, with the failure to resolve a FY90 budget re­ to the contrary, such as a brutal internal crackdown, the sulting in the looming threat of a permanent across-the-board overthrow of Gorbachov or even the outbreak of civil war "sequester" under the Gramm-Rudman deficitreduction law, within the Soviet Union, through the same rose-colored and the inability to pass legislation to raise the U.S. debt glasses. ceiling to $3.2 trillion threatening to push the government In reality, as General Scherer pointed out during his re­ into formal default. Sale of individual U.S. treasury bonds cent visit to Washington, conditions in the Soviet Union was already suspended Nov. 1. are now so unstable that, in the wake of a coup against By reacting to events rather than taking initiative, as Gorbachov, civil war would lead to a disintegration of the other critics have seen him, Bush is particularly vulnerable to country into fractured regions dominated by contending war­ manipulation by Gorbachov. This is particularly true because lords, creating a circumstance in which one such warlord of Bush's continued insistence that it is his duty "to help "might actually be willing to push the button" to launch a perestroika" (Gorbachov's military reform program) suc­ nuclear strike against the West. ceed. In his press conference announcing the Dec. 2-3 meet­ But Bush's "perestroika is irreversible" line is new, a ing, Bush categorically refused to entertain the thought that, departure from statements he made earlier this year when he even with the threat of unrest and coups in the Soviet Union, justified a "go slow" approach to the Soviets. Secretary of the progress toward positive reform would fail to occur. State James Baker III has helped shape this new thinking by Bush, reflecting in two major speecbes recently-one to the Bush thinks perestroika irreversible Foreign Policy Association in New York Oct. 16 and another In a tell-tale exchange, this reporter asked Bush: ''There's to the Commonwealth Club in San Francisco Oct. 23-the been a lot of talk around town about the survivability of concept that "the cold war with the Soviet Union has ended." Gorbachov, especially going into the winter months and the But experts with a longer view of history view the Dec. prospect of strikes and so forth . When you say you would 2-3 summit aboard ships in the Mediterranean as ominous. like to see perestroika succeed in the Soviet Union, do you They recall that the 1 807 summit between Napoleon and Czar equate that with the success of Gorbachov personally?" Bush Alexander I at Tilsit was held aboard a ship. That historic replied, "I think it's tied up in that right now, yes." precedent for the summit-at-sea resulted in war.

EIR November 10, 1989 National 57 Kafka in Roanoke

Judicialbar barism in the trial against Michael O. Billington by Gail Billington

From a speech preparedjor deliveryon Nov. 5 to the Food And it meant ripping apart the biggest lie of all, the jo r Peace conference in Chicago, Illinois: lie that underlies every prosecution against the members of LaRouche's philosophical association, and that is, that Lyn­ I am here today on behalf of my husband, Michael O. don LaRouche is the evil genius of a tightly knit criminal Billington. Mike has been a political associate of Lyndon conspiracy, whose sole purpose for existence is the self­ LaRouche since 1972. Since 1982, Mike has worked as aggrandizement of LaRouche, of aiding and abetting his a political fundraiser. In fact, Mike is a very good "lavish lifestyle." fundraiser-too good for the political enemies of Lyndon This defense "strategy," if you will, had been discussed LaRouche. From 1982 until the government-imposed in­ among Mike, his Alexandria codefendants, and legal counsel voluntary bankruptcy in April 1987, Mike had raised repeatedly from January to July. Up until two days before approximately $5 million in sales of political literature, the start of Mike's trial, there was a clear outline of the outright contributions, and political loans. From April strategy, tactics, and witnesses Mike would insist be called 1987 through January 1989, Mike doubled that amount in in his defense. sales of literature and contributions alone. In the closing days of the 1984 presidential campaign, the political Defense lawyer joins the prosecution enemies of Lyndon LaRouche launched an all-out attack Then, all hell broke loose. On Sept. 14, Judge Clifford to "Get LaRouche." As part of that offensive Mike, and Weckstein denied Mike's motion to dismiss the case on others like him, had to be put out of commission. grounds of double jeopardy. After that hearing, Mike's attor­ Mike is one of the siX. people tried and convicted with ney Brian Gettings told Mike that he could not wage the kind Lyndon LaRouche in federal court in Alexandria, Virginia, of defense Mike wanted, unless Mike gave up his fundamen­ and sentenced to three years in federal prison in January tal constitutional right to a jury trial and put his fate in the 1989. Until September, he was serving time in a minimum­ hands of the judge. Gettings argued that a judge would be security federal prison. Mike is also the second of 16 individ­ more lenient than a jury in sentencing, were Mike found uals and fivecorporations to face trial in the Commonwealth guilty. of Virginia, on charges that the political loans they raised Mike did not dismiss the proposal out of hand. He told were "securities." Mike was charged in Virginia on nine Gettings he would consider it, and would consult other law­ counts, carrying a maximum sentence of 90 years. yers and friends, including Lyndon LaRouche, over the next Mike saw his trial in Virginia as his moment to do what few days. This he did, and concluded that the only acceptable was made impossible by the rocket-speed of the Alexandria result was total acquittal, which he believed could only be court. This meant completing the job started in Boston, possible in Virginia with a jury trial. He refused to be intimi­ which had led that jury to say they would have acquitted all dated by the threat of a 90-year sentence by a runaway jury­ the LaRouche defendants, because of the stench of govern­ as had happened with Rochelle Ascher's 86-year sentence­ ment misconduct. Mike determined to put the whole truth on and he insisted that presenting the whole truth was the only the table, including the direct role of the Oliver North/Spitz chance for justice. Channell/Iran-Contra crowd in disrupting the fundraising of That's when Soviet-style justice moved in. Mike's law­ LaRouche's associates. It meant ripping apart the govern­ yer threw a fit. He accused Mike of offendinghis professional ment's lie that fundraisers used the War on Drugs as a gim­ pride, even though he admitted that the choice of jury trial mick to raise money, but putting on evidence of the was entirely up to the defendant. He denounced Mike as LaRouche movement's two-decade collaboration with heads mad, and accused him of taking orders from LaRouche. of government, military, and political leaders to build an At an emergency hearing on Sept. 18, the eve of Mike's alternative to the multibillion-dollar drug economy. scheduled trial, Gettings introduced a motion to withdraw

58 National EIR November 10, 1989 from the case. His motion was carefully craftedto invoke the knowing that it was an opportunity for those enemies to open Virginia statue calling for Mike to be declared incompetent a Pandora's box of attacks on his friends and associates. by the court. On the suggestion of the prosecution, Gettings He refused, knowing that he was running the risk of facing seconded a proposal for Mike to undergopsychiatric evaLua­ contempt of court. tion. Mike protested, and was supported by the judge, who On Sept. 26, Judge Weckstein, instead of citing him for agreed with Mike, but felt overruledby the prosecution and contempt, declared that he found "not an iota, not a scintilla" defense attorney's request. of evidence of Mike's incompetence, and also supported Mike's concerns that the ILPPP is hardly what you would Solitary confinement call a "disinterested party ." However, that same day brought What came into play at the same time, was the second a new level of Kafkaesque insanity, when the judge ruled trackof egregious violations of Mike's civil liberties. During that Mike had to proceed to trial the next day-with Brian the trial, Mike was detained at the Roanoke County Jail, Gettings as his counsel of record! having been moved from a lowest level federal security facili­ From this point forward, Gettings's overriding concern ty . For reasons never explained, Mike was immediately seemed to be to argue for his view thllt Mike was "directed" placed in solitary confinement, and allowed to make phone in his approach to the case, and not defending Mike against calls only to his attorney. To this day, Mike is being held in the criminal charges brought against him. The prosecution solitary confinement, confined to a 9-by-12 cell 24 hours a proceeded to jam the record with the most outrageous preju­ day, given only three hours a week in the gym to exercise, dicial hearsay evidence, including, not direct testimony from and no calls but to his lawyer. To this day, he is not allowed lenders, but testimony of their children and lawyers! to call me, his wife; calls he has made are cut off. I am Mike filed no fewer than four separate motions, pro se allowed to talk to him through a glass window 15 minutes a (on his own behalf), pressing for substitution of counsel. day, two days a week. Two of the motions requested mistrial on the grounds that he On Sept. 16-17, while Mike was considering the issue of could not exercise his constitutional right to testify in his own ajury trial, the sheriff suddenly withdrew paralegal visitation behalf or to call witnesses. rights to the two people who have worked on his case for two Mike's jury trial lasted exactly 15 days, from selection and a half years, myself and Martha Quinde. So Mike was to verdict. The coup de grace came with the closing argu­ effectively cut off from contact with everyone except an ments on Oct. 23. Brian Gettings told the jury that, indeed, in attorney who was committed to proving his client mentally some cases, these political loans were securities, and implied incompetent to assist in his own defense! that Mike may have committed fraud, but begged for lenien­ Mike did allow a psychiatrist to interview him for one cy. His parting words were high praise for the prosecution. hour in the jail on the evening of Sept. 18. The following The judge, for his part, concluded the day by chastising Mike morning the local newspaper blared, "LaRouche aide trial that, were he in Mike's shoes, he could not have wished for delayed: Billington to undergo mental test." a better closing argument than Mr. Gettings's. In court on Sept. 19, the psychiatrist declared Mike to be In the Soviet Union, where the judge, the prosecutor, the sane, that he could find no disorders; but under questioning local law enforcement, and defense counsel are all employed by the prosecutor and Mike's attorney, he admitted he was by the state, it is not unusual for the lawyer of a defendant not an expert in cuLts, and therefore would welcome a second accused of a political crime to argue that his client is insane, opinion! mentally incompetent, as demonstrated by his refusal to ad­ here to the belief structure of the state. More often than not, Enter Dope, Inc. 's psychiatrists such prisoners are placed in so-called mental institutions, for Prosecutor and defense attorneyjoined forces and imme­ "observation" and "treatment." diately demanded a second, in-depth psychiatric exam, and Mike has no doubt about his own competence, and has 10 and behold, prosecutor John Russell knew just the place doggedly pursued his objective of putting on the table the to send him: the Institute of Law , Psychiatry and Public whole truth, and that means acquittal for all the LaRouche Policy at the University of Virginia in Charlottesville. defendants. It is precisely the extremes of judicial barbarism What is the ILPPP? It is financed by, and enjoys a that will backfireon their perpetrators. "strong" relationship with, the Virginia Attorney General's In a recent letter to his friends, Mike wrote how elated office-theprosecutors against Mike-and the FBI, two cen­ he was at the news of the bankruptcy ruling [see Feature, tral elements of the "Get LaRouche" task force. Its director, page 24] . In closing, he wrote, "Time is short, but the mo­ Richard Bonnie, prides himself on being the "grandad" of ment is ripe. The ground is shaking under the Olympians' the movement to decriminalize drugs in the United States, feet, and Reason awaits our call." which had been exposed, and politically set sharply back, by Friedrich Schiller wrote, "Eine Grenze hat Tyrannen­ the LaRouche-led forces in the late 1970s. macht!" There is a limit to the tyrant's power. And that idea Mike refused the second exam by these political enemies, lies at the very heart and soul of this nation.

EIR November 10, 1989 National 59 could serve there militarily in good conscience. Because he Michael Billington was at the top of the "Draft Lottery," having drawn number 13, he was scheduled to be drafted if he did not go on to graduate school or finda deferrable position. As it happened, this was the one year in whicH graduate school was not an exemption from the draft.

Service in the Peace Corps Billington had been offered a full scholarship as a Fellow in the Center for InternationalStudies at Columbia University as part of the Columbia Business School Graduate Program. This was appealing in many regards, but he was morally tom over what he perceived as a disastrous U.S. policy in the Americanpatriot Third World, but also his sense that the U.S. did have and must have a positive role to play in the underdeveloped coun­ andworld citizen tries, or face a world collapsing into chaos. He thus applied to the Peace Corps for a position in Michael O'Mara Billington was born to Ruth and Joseph Southeast Asia, thinking this might serve as the "bridge" Alford Billington on July 8, 1945 at the U.S. Naval Base between what he believed to be his responsibility to his coun­ Hospital in Jacksonville, Florida. His father had been com­ try and to the world as a whole. He was instead accepted [or missioned as an officer straight out of college in 1942, and a program in Guyana, South America, and decided to take was stationed in Jacksonville. that position anyway. Two years later he accepted a special Afterthe war, they returned to Cleveland where his par­ position in Thailand for a second, two-year Peace Corps ents had been after their marriage in 1939. There his older assignment. brother and he , and three subsequent siblings, grew up in the In Guyana, he taught mathematics in a government sec­ suburb of East Cleveland. His father was a manufacturer's ondary school-the first secondary school ever built in the representative, selling forgings and castings for industry and province he lived in. He saw the hope and optimism of the the military through his own company, Billington Metal children of this poor and backward nation, and confirmedhis Sales, Inc. His mother was a community and church activist, beliefthat reversing the economic backwardness of the Third involved in civil rights issues, in particular, during the hey­ World was entirely possible, and necessary . day of the civil rights movement. AfterGuya na, before accepting the Peace Corps position The family lived in a large but modest house on a residen­ in Thailand, he applied to the U.S. State Department for a tial street, and the children attended the local public schools, position as aU. S. Agency for International Development and engaged in various community activities. His own in­ officerin Vietnam, for reasons similar to his earlier decision cluded participation in several musical endeavors: school to join the Peace Corps. He told the State Department that he chorus and ensemble, school musicals, several Cleveland­ was opposed to the war, but wished to help in other ways, wide choruses (Handel's Messiah, etc.), and a semi-profes­ and he was accepted for the U.S. AID position. A hiring sional musical comedy company. They all participated in freeze was on at the time, and he subsequently went to Thai­ school sports and student council activities. He graduated land instead as a PeaceCorps vblunteer. When the U. S. AID from Shaw High School in 1963. position opened up a few months later, he decided to stay Billington was offered several scholarships for college, with his Peace Corps position in Thailand. and accepted the William G. Mather Scholarship to Trinity In Thailand Billington helped direct a Ministry of Educa­ College in Hartford, Connecticut, a scholarship offeredyear­ tion teacher-training program to introduce modem mathe­ ly to a Cleveland area student. While his first year in a de­ matics to the nation's secondary schools. Working with one manding academic situation was extremely difficult, he other American and four Thais, they wrote teacher guides pulled together and achieved dean's list standards during his in the Thai language, ran teacher seminars, and visited the last three years. He majored in mathematics, with extensive nation's secondary schools to provide on-site training and minors in philosophy and music, earning a B.Sc. in Mathe­ demonstrations. He also saw the U.S. military presence up matics in 1967. close, and the pervasive effect ofthe drug trade on the sol­ Upon graduation in 1967, he faced three alternatives: diers and others stationed there. graduate school, military service, or alternate government Billington toured the Golden Triangle drug producing service. He was not a pacifist, but was already disillusioned nexus with two French intelligence stringers who asked him by the U.S. military role in Vietnam and did not believe he to join them as an interpreter. They wanted to join the opium

60 National EIR November 10, 1989 of education came to our school, and the choir sang. Head­ masters from other school districts invited the choir, 'Aj ust and decent citizen' which went on tour to their schools, and was heavily applauded wherever it performed. . . . Mrs. Gail Billington has made available to EIR a letter The Coffe e Shop: In Anna Regina it was customary sent by Florida attorney Alli B. Majeed to U.S. District for youths to spend theirevenings on street comers, sitting Court Judge Albert V. Bryan in January, attestingto the on bridge rails, and drinking booze. He was singularly remarkable moral dedication of Michael Billington-a responsible for conceiving this idea. He arranged with the quality which strikes everyone who meets him. The letter government authorities, to make a small room available, reads in part: free of charge, and then put the concept into action. The coffee shop was slow in getting an encouraging response. I am an Assistant State's Attorneyin Melbourne, Brevard But after a very shaky start, the youth!! startedto respond. County, Florida. Prior to this I was an Assistant Public They leftthe street comers, and came to the coffee shop, Defender in Orlando, Orange County, Florida. Before to play dominoes, cards, ping pong, chess, checkers, and

migrating to Florida, I engaged in a solo general practice on rare occasions drank coffee. . . . in Philadelphia, for seven years. During the years I knew Mike in Guyana, and during I first met Mike in 1967, when I was a high school the times we met during his LaRouche tenure, he has teacher in Guyana, South America. Mike was assigned to never evidenced selfish motives, or a desire for personal our village of Anna Regina, as a Peace Corps volunteer aggrandizement. Mike has consistently displayed a deep of mathematics. Between 1967 and 1969, Mike and I commitment to work diligently and industriously to im­ became very close friends, and I had ample opportunity prove the lot of others, believing firmly that Lyndon La­ to observe him at work, and in the community. . . . Rouche was just the kind of leader who will: The School Choir: Mike organized the first and last 1) Arrestthe spread of the deadly AIDS epidemic. choir at our school. He got no help on this project from 2) Resolve the present severe deficitfacing the Amer­ others, because none of us knew how to go about it. ican economy, and prevent the collapse of the internation­ This was an undertaking that demanded many hours of al economic structure. patience, discipline, and dedication fromMike . The result 3) Implement a solid core curriculum in our schools, was refreshinglywonderf ul. Lunch hours werecut in half, which will emphasize both an education in the natural with the other half going into choir practice. School hours sciences, and an appreciation of the fine arts . were extended, for more choir practice. At first we all 4) Attack and remedy hunger and starvation among laughed and joked, because of how terrible everyone the Third World nations. sounded. Students began to stay away, embarrassed at It is these aims, and these goals to which Mike has their own disharmony, but Mike persisted. dedicated his ceaseless energies. There is no doubt that Finally it all came together. The laughter and jokes Mike and his colleagues are convinced by their enigmatic, stopped. The sounds of many students blended into melo­ charismatic, and articulate leader Lyndon LaRouche that dious harmony. We had a choir. It was Mike's doing, but theirs is a just, honorable and urgent cause, to which all it was our choir. It became the joy and pride of the school, decent citizens must dedicate themselves. and the community. The Governorof Guyana came to our Mike is a just and decent citizen, who is now made to village of Anna Regina, and the choir sang. The minister answer for his dedication.

caravan, which they knew traveled across Red China to Hong High, in East Cleveland. He then moved to Oakland, Califor­ Kong via donkey train. They did meet up with the caravans, nia, where his brother Joe was living, and spent the next two and toured the opium production areas, where the hill tribes years substitute teaching in Berkeley and doing occasional lived in Stone Age conditions, producing the opium. Pictures escort/interpreter jobs for the U.S. StateDepartment , helping from that trip were later used in the book Dope, Inc., pub­ government guests from Thailand on official tours of the lished by New Benjamin Franklin House. United States. Upon his return to the United States in 1971, Billington During these years Billington became acquainted with stayed for about six months with his parents in Cleveland, the various political movements of the 1970s, from left Ohio, doing substitute teaching in his old high school, Shaw to right. He first read Lyndon LaRouche's works in 1972.

EIR November 10, 1989 National 61 He recalls that two things struck him about his work, drawing him into collaboration with LaRouche. First was LaRouche's passionate commitment to the development of the Third World; the right wing seemed to be unconcerned about the Third World, and the left wing seemed concerned only with "liberation from imperialism," and not the actual solutions to economic backwardness. Second, LaRouche's economic method was derived from the same current of philosophy and the physical sciences that Billington him­ self had come to adopt as his own during his college studies, thus surprisingly unifying his scientific worldview with his fundamental moral commitment to contributing to the development of our world. Cali Cartel's lawyer Billington began informal collaboration with the Na­ tional Caucus of Labor Committees (NCLC, the philosoph­ ical association founded by LaRouche) in 1972. By 1974, was cleared by DoJ he had joined. He settled in New York, driving a cab part-time while organizing and writing with the NCLC. Michael Abbell, former director of the Officeof international He worked on Asian and Middle East intelligence, doing Affairs of the U.S. Department of Justice, and now an attor­ research and writing articles for the newspaper, New ney and consultant to lawyers of Colombia's drug-pushing Solidarity. He also became more involved in public politi­ "Cali Cartel," says he was cleared of any conflict of interest cal activity. In 1977 he ran for County Executive in by the Justice Department, giving him a green light to repre­ Westchester County (north of New York City), and for sent his controversial clients. U.S. Congress in 1978. Around 1979 he stopped driving This adds a new wrinkle to a much-debated story in a cab and began receiving a weekly stipend to support Washington, D.C. legal and law enforcement circles, high­ himself from Caucus Distributors, Inc. (CDI), the distribu­ lighting what some have called a "fifth column" in President tor of New Solidarity and other publications. Bush's War on Drugs. The debate was sparked by a front­ In 1981, he began full-time organizing and fundraising page piece in the Oct. 2 issue of the Washington Post, profil­ by telephone from the officesof CDI. He lived in New York ing the activities of the former DoJ official. or the vicinity (except for one year, 1983, spent in Boston), Abbell defends his work as an expert on extradition for until spring 1985, when he moved to Leesburg, Virginia, lawyers of cocaine kingpin Gitberto Rodriguez Orejuela as when a number of companies run by LaRouche associates "ethical." Gilberto and his brother Miguel, among other Cali moved their national headquarters from New York City to Cartel heavies, recently made it onto AttorneyGeneral Rich­ Virginia. ard Thornburgh's "Dirty Dozen" list of "most wanted" fugi­ In addition to the organizing work, Billington has been tives. "I have worked for people who are allegedly members responsible for various aspects of the NCLC's work on per­ of the cartel or their lawyers as a consultant, " Abbell ex­ formance and composition of great classical music. He re­ plains. "I headed the office at the Department of Justice ceived vocal training from Maestro Jose Briano of the Auton­ which oversaw extradition matters . I went into private prac­ omous University of Mexico, who is an expert in the classical tice, 'of counsel' here [at the law firm of Kaplan Russin bel canto method of singing. Billington subsequently taught and Vecchi) . I was asked by (epresentatives of Rodriguez bel canto singing to hundreds of NCLC members and sup­ Orejuela to serve as a consultant to a Spanish and Colombian porters in the course of developing choruses in New York, lawyer in connection with an extradition case in Spain. I Boston, and Virginia. He has conducted several concert per­ wrote to the Department of Justice to determine whether it formances, and has performed several solo and vocal ensem­ perceived any conflict of interest in my taking on this ble concerts as part of the political/cultural endeavors of the role ....I received clearance." NCLC and the Schiller Institute. Abbell's clearance was obtlained back in 1985 from the In 1983, Billington met his wife Gail, who is also a Deputy Assistant AttorneyGeneral , then heading the Crimi­ member of the NCLC. They were married on Dec. 2, 1984. nal Division. His father died of cancer in 1978. His mother, who worked Abbell has written several tomes on the constitutional as a librarian and teacher in a school for emotionally disabled aspects of extradition law and ,has advised and lobbied the children for about 10 years, retired in 1985. His brother Senate Foreign Relations Committee on pending extradition Pete began working with his father in 1971 and took over treaties. He argues that extradition laws have been improper­ Billington Metal Sales, Inc. about one year before his father ly used against international drug pushers. "What you have died. is narco-McCarthyism," complainsAbbell .

62 National EIR November 10, 1989 Although he maintains that he has never received a single English models of drug legalization, especially the Liverpool penny from the Cali Cartel for his researchand writings that "Harm Reduction" program of free needles and free drugs; criticize laws that would make it easier to prosecute narcotics • "Coping with Stress and Corruption: the Police and traffickers, Abbell is quite candid about his supportfor drug Criminal Justice System in the Drug War," developing the legalization. He says that it is based on the "Milton Friedman idea that drug police are inevitably corruptedby the attempt principle" and a study of the U. S. experience under Prohibi­ to suppress trafficking; tion. In an open letter to drug czar William Bennett published • "The Campaign to Reestablish Heroin and Marijuana in the Wall Street Journal on Sept. 7, Friedman, a Nobel as Medicines." Laureate in economics and guru of "free enterprise," advo­ cated the legalization of all controlled substances, including Law firm upset heroin. On Oct. 23, the WasMngton Post reported that Abbell "You ain't going to deal with drugs through the criminal had resigned from the firm of Kaplan, Russin and Vecchio law," says Abbell. "It is a public health problem. The monies The New York Post, which carried the same story, titled it would be better expended to educate people not to take drugs, "Drug-fighter Turned Defender Quits Law Firm in Flap." to rehabilitate those who are taking drugs, and to diminish the The article reported that " Abbell, who once supervised U.S . incentive for addicts who are dependent on drugs to commit efforts to extradite Colombian drug traffickers, said he will crimes to support their habit. All of this could be financedby continue to represent reputed drug boss Gilberto Rodriguez taxes on the sale of drugs." Orejuela and other accused Cali traffickers whose extradition is wanted by the U.S." Druglegalizers convene Abbell explained to EIR on Oct. 20, "The real problem Abbell also seems to be a "fellow traveler" of the pro­ that was arising is that we [the law firm] do a commercial legalization Drug Policy Foundation, which started a confer­ law practice in Colombia. There was a tension developing ence in Washington on Nov. 2, which he recommended as a between my representation of individuals over there who are source of further information. Titled :'Beyond Prohibition: allegedly connected with drug trafficking, and the perception Practical Alternatives to the War on Drugs," the conference of U . S. corporations and businesses who the firmrepresents is expected to issue a plan for achieving "drug peace" through or would like to represent in Bogota." legalization, as counterposed to the "current war-like Although Abbell has tried to put a good face on his sepa­ approaches to drug control" which are being carried out by ration fromthe firm, someone at Kaplan, Russin and Vecchi "drug war extremists." has not been happy with all the media coverage and contro­ According to Kevin Zeese, a colleague of Abbell and versy. On Oct. 16, three days after EIR published a story adviser to the foundation, the conference will "paint the pic­ about Abbell based in part on the Washington Post piece, our ture of what the world would look like without prohibition," Washington, D.C. bureau received a letter from Abbell's and will showcase an array of luminaries from the academic, now divorced law firm threatening legal action if any report legal, and political spheres who demand national surrender were to be published "linking Mr. Michael Abbell to the firm to drugs. of Kaplan, Russin and Vecchi." Among the scheduled speakers at the 4OO-person confab The letter reads, in part, "Please be advised that this firm were such well-known pro-drug lobbyists as Dr. Arnold has never represented any members of the Colombia drug Trebach, president of the foundation; Kurt Schmoke, mayor cartel, nor has this firm represented any clients, Colombian of Baltimore, who is scheduled to receive the Richard Dennis or otherwise, directly or indirectly, in criminal matters. Mr. Drugpeace Award of $100,000 for Outstanding Achieve­ Abbell was never an employee or member of this firm. He ment in the Field of Drug Policy Reform; Lester Grinspoon, rented office spacein the firm's Washington officesand was M.D. of HarvardMedical School; Princeton University Prof. listed as 'of counsel' to the firm while he was researching Ethan Nadelmann; Marco Pannella of the Italian Radical and preparing a multi-volume work on InternationalJudicial Party; and Judge Georges Apap of France. Assistance in Criminal Matters, which supplements an earli­ Large delegations were scheduled to attend from among er two-volume work on InternationalJudicial Assistance in British drug-legalization groups and from the international Civil Matters published by one of our partners five years anti-prohibition group run by networks of the Italian Radical ago." Party. The main British connection to the Drug Policy Foun­ Reached at the officesof Kaplan , Russin and Vecchi four dation is the Drugs Advisory Group, which received a grant days after EIR received the letter, Abbell was somewhat from the EuropeanCommunity in Brussels to produce a re­ miffed that a former colleague would describe his relation­ port outlining the pro-legalization arguments. ship with the firm as that of having "rented office space." "I A similar conference was held last year, featuring work­ was 'of counsel,' "he said. shops on the themes that characterize the currentcampaign: The letter stated, "Mr. Abbell has terminated his of coun­ • "The Dutch Approach," highlighting the Dutch and sel relationship with this firm."

EIR November 10, 1989 National 63 "mistaken" and "immoral" "run parallel" to Secretary of State James Baker's expressions of hope concerning im­ proved U.S.-Soviet relations. The secretary had made his sanguine observations in two major foreign policy addresses given in New York and San Francisco. Tutwiler added that Krasnoyarsk radar: Shevardnadze's admissions cOncerningKrasnoyarsk and Af­ ghanistan were "welcome reflections of new thinking in the hoax Soviet Union." another'gl asnost' At a press briefing held earlierTuesday at the Pentagon, Department of Defense (DoD) spokesman Fred Hoffman re­ by Argus ferred only tangentially to the Shevardnadze speech. Hoff­ man said that the Pentagon had no comment on the Shevard­ Argus is the pen name of a leading U.S. analyst of Soviet nadze address "at this time." The Pentagon was chesting its policy, especially in the military arena. He has been an cards; Secretary Dick Cheney was in Portugal attending a observer of Soviet affa irs fo r the last 40 years. NATO planning session; maybe he would have a comment to make later. Foreign Minister Eduard Shevardnadze's well-PR'ed "con­ On their part, Codevilla, Cohen, and Staar noted that the fession" that the Krasnoyarsk anti-ballistic missile (ABM) missiles-NATO code-named SA (surface-to-air)-lO radar installation is a violation of the 1972 ABM treaty is no "Grumble" ("G" for ground)-are mobile. Therefore, obvi­ news to objective arms specialists. To the many peaceniks ously, they are hard to detect or destroy in war. Scattered in and media mavens who habitually give the Soviets the benefit considerable numbers (see DoD estimate below) about the of the doubt and who pooh-poohed the Pentagon's warnings Soviet Union, they are anti-missile capable. concerning the Krasnoyarsk installation, Shevardnadze's In his article, Codevilla reproduced a DoD map whose "revelation" was an embarrassment. The New York Times' caption read: "Anti-Ballistic Missile Radar in the Soviet erstwhile Moscow correspondentDavid K. Shipler had writ­ Union." Codevilla noted that the "network is backed up ten blithely as follows about that much-touted show-and­ by the newly modernized Moscow ABM Complex." While tell visit to the radar site by three ill-informed Democratic this is allowed by the 1972 treaty , he continued, the congressmen in September 1987: ''The delegation found that Soviets' new SH-11 high-altitude interceptors fired from the facility had certain characteristics that argued against underground launchers, which already incorporate Strategic its being used either for space-tracking or for anti-ballistic Defense Initiative technology stolen from the United missile (ABM) defense. [The facility] radar's frequency [is] States, are not. These missile interceptors cover much of unsuitable for space-tracking" (New York Times, Sept. 9, European Russia. 1987). In addition, he noted that the Soviets "are producing the Not surprisingly, Shevardnadze's "disclosure" is regard­ SA-12 mobile ABM, allowed by the ABM treaty because it ed by some leading arms expertsas a hoax and a "diversion." is dual-purpose." Finally, he said that the Soviets are produc­ In their comments to this writer concerning the Siberian ra- ing "a host of other rapidly deployable ABM components � 'dar, Dr. Richard Staar, Hoover Institution scholar and Sovi­ and squirreling them away who knows where." The ABM etologist, and Dr. Samuel Cohen, nuclear physicist and in­ treaty, he noted, says nothing about production specifically ventor of the neutron weapon, described Shevardnadze's so­ of ABM radars in the Soviet Union. called "revelation" as a "ruse." However, in its own, sulbsequent reproduction of the Staar referred to an analysis by Angelo Codevilla, former same map on Oct. 24, the New York Times captioned it: intelligence committee aide, published in the Wall Street "Disputed Radar: A History. '1 The liberal mouthpiece failed Journal Oct. 6, as a case in point. In Staar's words, para­ to indicate that Shevardnadze 's "confession" had omitted any phrasing those of Codevilla, the Soviet Union presently has reference to these "peripheral radars"! "extensively deployed phased-array radars along the periph­ Yet past editions of the Pentagon's Soviet MilitaryPow­ ery of the country." These radars, Cohen added in his obser­ er, which, presumably, are in the Times' library, have shown vations, "are 'locked in' to several recently upgraded ABM the locations of these ABM-capable installations on maps missile batteries, which aremasked by the Soviets as 'anti­ and disclosed their anti-missile function that is in clear viola­ aircraft'batterie s." tion of the ABM treaty. These observations contrasted to the U.S. State Depart­ The new 1989 edition of the Pentagon's Soviet Military ment's reactions to the Shevardnadze speech. The very next Power describes these ABM-capable radars and missiles as day in Washington, State's press officer, Margaret Tutwiler, follows: "In the mid- 1970s, the Soviets began building a said that Shevardnadze's admission concerningKrasnoyarsk network of large phased-array radars (LPARS). Currently, and his characterization of the Soviet war in Afghanistan as there are nine in various stages of completion. The entire

64 National EIR November 10, 1989 network is expected to become operational by the mid- 1990s. lobby in Washington touted the visit as proving thatKrasnoy­ When fully operational, this network will provide highly arsk constituted no violation of the ABM treaty. It was, redundant coverage of the main [missile] attack corridors they insisted, "primitive" in its components and, in fact, into the [Soviet Union] . Most of this coverage will also be inapplicable to the anti-missile uses to which the Pentagon redundant with the coverage of the [NATO code-named] had attributed it. Hen House ballistic-missile detection and tracking radars. In The report writtenby the three Democra ts, Reps. Thomas addition, LPARS can track far more objects than the older Downey (N.Y.), Jim Moody (Wis.), and Bob Carr Hen House radars while providing improved impact predic­ (Mich. )-an extremeemb arrassment in the light of Shevard­ tion accuracy. " nadze's "confession"-stated that "we judge [the radar in­ As to the anti -missile SAs, Soviet MilitaryPower reports: stallation] not to [be a] violation of the ABM treaty at this "Since 1985 the number of strategic SAM (surface-to-air) time." Yet the reportadded that"due to its ambiguous nature, missile sites and launchers has remained about the same; we would no longer be able to make that statement if the however, the engagement capability of strategic SAMs has project were carried through to completion." This analyst's significantly increased with the deployment of the SA-lO survey of printand broadcastmedia coverage of the Septem­ [Grumble] . ber 1987 visit findsthat generally no referencewas made to "The SA-lO's ability to engage several targets simultane­ the latter caveat. ously and its increased firepower (fourmissiles per transport­ Of the misleading, hypocritical nature of current Soviet er-erector-launcher, or TEL) have enhanced the Soviet new thinking, Cohen said that he believes the Soviets "are Union's air-defense capability. It also may have a limited engaged in wholesale deception-strategicdecep tion. While capability to intercept some re-entry vehicles (RVs) and their military buildupcontinues unabated, theyare trying to cruise missiles. Presently, the SA-lO system comprises ap­ soften up opinion and divertour attention by such things as proximately 15% of all Soviet strategic SAM launchers." Shevardnadze's speech. They are trying to melt down our Interestingly, the less bowdlerized previous year's resolve and, of course, to defeat SDI." (This writer's term (1988) Soviet Military Power had made a bolder statement for Soviet PR is "NATO fabric-softening.") concerning the peripheral radars and the ABM capability of Dr. Staar noted what he called the "precise timing" of the SA-lOs. Of the latter, it stated: "All [Soviet] LPARS, the foreign minister's address in the last week of October. including the Krasnoyarsk radar, have the inherent capability Shevardnadze, he remarked, "had availed himself of a won­ to track large numbers of objects accurately. Thus, they not derful opportunity. I note that [the speech] was timed to only could perform as ballistic-missile detection, warning, coincide with [Secretary of State] Baker's two speeches, in and tracking radars, but also have the inherent technical po­ New York and this weekin San Francisco." In both address­ tential, depending on location and orientation, of contribut­ es, Baker sounded hopeful about Soviet intentions allegedly ing to ABM battle management." to reduce strategic arms. Ofthe congressional visit to the Krasnoyarsk site, Soviet "However, the Soviets go righton building up their stra­ .. Military Power (the 1988 edition; the 1989 issue omitted tegic arms as well as their defenses against our missiles" in this) had asserted that the delegation "was allowed to view violation of the ABM treaty. As Carter'sDefense Secretary selected areas of both the transmitter and receiver facilities. Harold Brown put it: "When we stop, they build." No information derived from this visit, however, changed Several analysts added that Gorbachov himself had ad­ the assessment that the radar is designed for ballistic-missile mitted that the Soviets are performing research on an SDI­ detection and tracking." like anti-missile shield. Estimates are that they have already Cohen and Staar speculated to EIR that the Krasnoyarsk spent $150 billion on such R&D. Gorbachov admitted to installation may have been a "Poternkin Village" from the NBC anchorman Tom Brokaw in December 1987 that "we beginning. Built in the late 1970s, it has since "become rust­ have our own SDI program." ed," said Cohen. "In my opinion, it did serve to divert U.S. As to Soviet claims about the level of their expenditures attention away from the peripheral radars that are masked by on defense: This nonsense, or gas-nost, about their "modest" the Soviets as 'anti -aircraft batteries.' " It also "tested U. S. defense expenditures is very revealing. Moscow claims that resolve," Dr. Cohen said. "We complained but that's all we its defense expenditures are around$77 billion. But the West­ did do." em defense establishment estimate is that they aresome three Other analysts have described the visit by the three con­ times that amount. Earlierthey had also fudged on the expen­ gressmen to Krasnoyarsk as a piece of Soviet PRo Even Wil­ ditures, claiming that they were around $22 billion. So, as liam J. Broad, defense analyst and knee-jerk Pentagon-bash­ one can readily see, they are still putting out false statistics er, was obliged to admit in the New York Times, after his on this score. returnfrom the congressional visit to the site, that much had The Renaissance tactician, author of The Prince, Nicolo been obscured from the view of the visitors. However, peace Machiavelli, observed: "Theprince should never attempt to advocates, much of the yak-yak media, and the arms-control win by force what he might otherwisewin by fraud."

EIR November 10, 1989 National 65 of the Constanzo/Hernandezdrug gang headquarteredthere , attempted to escape their roadblock. At the ranch, police found a blood-drenched, stinking shack outfitted with an altar designed to accommodate a human body, and idols and artifacts linked to voodoo-likePalo Mayombe rituals, a blood Don't close the relative of the primitive Caribbean religion, Santeria. The police also found a witches' cauldron, a sacred tool of Adolfo Matamoros file ! de Jesus Constanzo, the high priest of Palo Mayombe, filled with blood, with turtle parts, with a severedgoa t's head ... by Michele Steinberg and Denise Ham and human brains. Within the day, police unearthed 13 mutilated corpses, whose hearts, brains, and spinal cords had been tom out while the victims were still alive, whose testicles and penises Cauldron of Blood: The MatamorosCult had been severed, whose legs bad been sawed off just below Ki11ings the knee; and the world knew that Mark Kilroy, a 20-year­ by Jim Schutze old university student from Texas, was one of the victims. Avon Books, New York, 1989 Kilroy had vanished while on a semester-breakvacation with 248 pages paperbound, $4.95 a group of his friends, in frontof a seedy tavern in Matamo­ ros, Mexico. For weeks, his family, including his uncle, U.S. Customs Service Special Agent Ken Kilroy, based in Los Angeles, had carried out an unrelenting campaign to find Like the Jonestown mass suicides in which more than 900 the youth. members of the People's Temple died in Guyana in Novem­ The disappearance of Mark Kilroy and the gruesome ber 1978, at the command of "Reverend" Jim Jones-an finding of his remains at Rancho Santa Elena, corroborated artificially created cult leader producedby the controllers of the patterninvestigated by EIR, that many of America's miss­ the drug culture project MK-Ultra-the horror ofthe Mata­ ing children (estimated at 200,000 ayear) may be the victims moros murders of the Texas-Mexico border drug world will of Satanism. For a short time after Matamoros, Satanic ter­ never diminish with the passingof time. rorism, and its integration withthe international drug trade, Cauldron of Blood is one of the most frightening books became an undeniable reality .. available today. Not only because of the graphic details of the 13 Satanic mutilation/murders carried out by the Matamoros Drugs and human sacrifice cult, but also because some of the most crucial leads in the Jim Schutze reopens the books on Matamoros, and on case have been covered up. the extent of Satanism in the empires of the drug lords, who The most serious aspect of the coverup is the now infa­ run the Western Hemisphere franchise for the estimated mous statement of Kenneth Lanning, a special agent of the $500-700billion annual global drug trade. The book can be U.S. Federal Bureau of Investigation and head of the FBI's commended for its exposure of the hoax perpetrated by so­ "Sex Crimes" unit, who stated in the aftermath of the Mata­ called cult experts, who claimed after Matamoros that this moros revelations, "More children have died and have been was not a "classical Satanic group," but just a superstitious abused in the name of God and Jesus than in the name of gang of psychopaths. Schutze reports that in the 1950s, Cu­ Satan." According to numerous law enforcement authorities ban scholar Lydia Cabrera uncovered widespreadexistence interviewed by EIR , the majority of Satanic crimes investi­ of the human sacrifice rituals of voodoo, Palo Mayombe, gated and prosecuted by police involve sexual abuse. If the Abakua, and Santeria, which had been reported for decades nation's leading law enforcement "expert" in this domain, to have been wiped out. Schutze locates the rituals of Adolfo Lanning, dismisses Satanism so glibly, there will be no seri­ Constanzo as the classic "Shango" (god of war, identified in ous investigation. these cults as St. Barbara of Christianity)ritual . Author Jim Schutze raises more questions than he an­ Shutze describes the Shango ritual from early-2Oth-cen­ swers in Cauldron of Blood, but those questions merit a full tury reports about Haiti. The witch doctor performs a service investigation by the U.S. Congress to end the coverup of roughly translated as "The Goat Without Horns" ritual. A Satanic terrorism. young boy and an even younger little girl are stripped and On April 11, 1989, newspapers throughout Texas, and painted white, then carried in to an altar. The witch doctor then throughout the United States, exploded with headlines, "becomes Shango" in a frenzy and ritualistically asks the such as "Cannibalism Found at Site of Satanic Murders ." little boy what he wants, to which the boy answers, "a vir­ Mexican police officials invaded the desolate Rancho Santa gin." The children are slit open, and their hearts, still spurting Elena near the town of Matamoros, when a low-level soldier blood, are tom out and brought to the lips of the Shango,

66 National EIR November 10, 1989 then passed to the congregation. This ritual is used to counter­ Mexico's movie, television, and entertainment industry, act spells and curses from one's enemies. LaVey enjoyed a similar role in Hollywood, including such According to the confessions made to police by followers well-known stars as Sammy Davis, Jr. and the late Jayne of Constanzo, the Shango ritual was Constanzo's specialty Mansfield. in Mexico City, in Miami, and at Rancho Santa Elena, where • Is there a link between the Satanic killing of Mark Kil­ Constanzo had taken virtual control over the Hernandez drug roy and the 1985 killing, in Mexico, of U.S. Drug Enforce­ operations through his hold over Elio Hernandez, the young ment Administration agent Enrique Camarena? A year before leader of the gang, and the use of Sara Aldrete, Constanzo' s Adolfo Constanzo took over the Hernandezdrug family, Saul "high priestess," to sexually entrap victims. Hernandez, the founder of that gang, which had a full distribu­ tion branch for cocaine and marijuana in Houston, was killed Investigative leads in a double assassination in Matamoros. Murdered with Saul Author Jim Schutze is blindsided by an anti-Mexico polit­ was his partner, one Toms Modet, � former official of the ical bias which keeps him from drawing out the full implica­ Mexican DFS (Directorate of Federal Security), who had once tions of the Matamoros investigation. Schutze repeats well­ been accused, but was later cleared of spspicion, in the Camar­ known slanders about Mexican corruption, superstition, and ena murder. Model had a number of unusual jobs in the DFS, stupidity that have become the hallmark of the U.S. State including assignments as Henry Kissinger's bodyguard Department's efforts to wage a war on the sovereignty of whenever Kissinger was in Mexico. After being firedfrom the Mexico, instead of a war against the drug traffic. Were he DFS , Modet moved to Matamoros and became a key player not blinded by this pre-packaged bias associated with U.S. in the Hernandez family drug operations. "Mexico specialists," Schutze might have been able to put With the death of Saul and Modet, the control of the the jigsaw pieces in place and would have at least posed the family's drug operations went to Elio Hernandez, who be­ . following questions: came a devotee of the witch doctor Constanzo and his high • Was Kilroy really just a victim chosen at random, as priestess, Sara Aldrete, known in the ,cult as "La Bruja" (the the officialstatements of the agencies investigating Matamo­ witch). ros insisted? In the early press coverage of the Matamoros • Is the Texas Southmost College a center for recruiting murders, Texas newspapers reported that nearly all of the students to Satanism? Both "La Bruja1' Sara Aldrete, and her victims found in the unmarked graves, were persons who had onetime boyfriend, Serafin Hernandez, Jr. , the nephew of crossed the Hernandez family in some way in drug deals, Elio Hernandez and son of the Hernandez drug distributor including one Mexican police official. (One exception was a in Texas, were students there . Serafin Hernandez, Jr. was young nephew of the Hernandez brothers, whose death was studying law enforcement and Aldrete studied physical edu­ described as an accident that occurred out in a "religious" cation, but both of them, now under arrest for the murder of frenzy.) The same reports emphasized that Mark Kilroy was Kilroy and the other Matamoros victims, studied with the in no way involved in anything that would intersect the drug same professor of anthropology, who, according to Schutze interests of the gang. and news accounts, taught them classes in Santeria, using Schutze stresses that Kilroy was the nephew of a high­ video filmsabout the rituals. level U.S. anti-narcotics agent. Why was the fact that Mark • Has corruption been covered up in Grimes County, Kilroy's uncle, Customs Agent Ken Kilroy, was a drug in­ Texas, near Houston, where Schutze alleges that Hernandez vestigator along the Texas-Mexico border, kept quiet? As family drug drops were made at an "instant" airstrip on land recent events in Colombia's war on drugs indicate, and as owned by the Sheriff Bill Foster? Schutze details in descriptions of the revenge tactics of the • Why was evidence destroyed at the Rancho Santa Ele­ Colombian drug lords, the families of the drug lords' enemies na? According to Schutze, the search for bodies was suddenly are the most frequent targets. called off without explanation after 13 were found. Why was Revenge is identifiedas the justificationfor human sacri­ the shack where the murders took place burned down in a fice in The Satanic Bible, by Sandor Anton LaVey, self­ "cleansing ritual" by another witch doctorto "purge" the evil described magus and head of the Church of Satan. LaVey spirits? According to Schutze, Texas and U.S. law enforce­ writes in a chapter called "On the Choice of a Human Sacri­ ment agents were on the scene during the excavation of bod­ fice": "The question arises, 'Who, then, would be considered ies at Rancho Santa Elena. Were the reports of what they saw a fitand proper human sacrifice, and how is one qualifiedto funneled into the FBI's Lanning, who appears to have a pass judgment on such a person?' The answer is brutally commitment to closing down the Matamoros case? simple. Anyone who has unjustly wronged you-one who Contrary to Schutze's claims, criminal trials are public has 'gone out of his way' to hurt you." in Mexico. So, at some point in the very near future, such a • Did Constanzo, an American-born citizen, also carry trial may take place, and much more may come to light about his activities into Hollywood? As Adolfo Jesus Constanzo the Matamoros narco-Satanist cult. In the meantime, the file was the spiritual adviser and spell-binder for personnel in cannot be permitted to be closed on this hideous episode.

EIR November 10, 1989 National 67 Congressional Closeup by William Jones

Senate approves death durable power of attorney to persons tal gains tax proposal. penalty for terrorists who could then decide whether treat­ As a result of the failure to reach On Oct. 26 the Senate, in an over­ ment were to be continued or termi­ an agreement, the federal govern­ whelming 79-20 vote approved a mea­ nated, were the patient unable to de­ ment's temporary $2.87 trillion debt sure that would allow federal courts cide himself. Care providers under limit expired at midnight on Nov. 1. to impose the death penalty against federal programs would also be re­ Subsequently the Treasury suspended individuals who murder Americans quired to "inquire whether a patient sales of U. S. Savings Bonds, pending during terrorist activities abroad. has such a document or person desig­ legislation to raise the federal debt The legislation, sponsored by nated" to make such decisions. limit. In order to avoid default by the Sen. Arlen Specter (R-Pa.), was con­ In a press release, Senator Dan­ government, the lawmakers must pass sidered separately from an omnibus forth lamented the fact "that modem legislation raising the limit to $3.12 bill which aimed to reinstate the death medicine is capable of prolonging the trillion by Nov. 8. penalty for more than 20 federal process of death for interminable peri­ Bush has said that he is willing to crimes. An alternative proposal, pre­ ods of time," calling that capability let the $16 billion cuts imposed by the sented by Sens. Mark Hatfield (R­ "playing God by medicine." Danforth sequestration stand. At a press confer­ Ore.) and Carl Levin (D-Mich.) was and Moynihan have sent out a circular ence on Oct. 31, he tried to shift the voted down 70-29. The Hatfield-Lev­ to gather support for the measure, blame for the impasse onto the Con­ in bill would have set a maximum pen­ which they say is the first stage in a gress. "I think the American people alty of life imprisonment without pa­ strategy designed to "reevaluate see that it is this Congress that is frus­ role for terrorists who commit mur­ health care practice and policy from trating getting the deficit down," said der. Levin argued that a death penalty an ethical, human and caring per­ Bush. "And so they ought to move and would make it more difficult to get spective." move promptly." "The President has countries like Colombia to extradite Danforth was the primary oppo­ gone theextra mile to extend the hand drug traffickers to face charges in nent of an amendment, submitted last of bipartisanship," chimed in Vice American courts. year by Sen. William Armstrong (R­ President Quayle in an address to the Colo.), which attempted to stop an­ American Stock Exchange that same other form of euthanasia-patient week, "and now is the time for the starvation. Danforth has also opposed Congressto respond." the catastrophic care bill, since, he Most government departments reasoned, the governmentwas paying have rtot yetbeen able to say just what Euthanasia lobby for acute care the elderly shouldn't be impact the cuts will have, but every launches offensive getting. The Danforth-Moynihan bill program will be reduced except Social The congressional euthanasia lobby is also supported by Sen. John Heinz Security and certain programs for the started flexing its muscle in the U.S. (R-Pa.) poor, and will hit almost every Ameri­ Senate, when John Danforth (R-Mo.) can. Bush's confrontation with Con­ and Daniel Patrick Moynihan (D­ gress could accelerate the rapid N. Y .) introduced a bill to ensure a pa­ plunge of the U.S. economy into the tient's "right to die. " throes of a deflationarycolla pse. The bill, entitled the Patient Self­ Budget impasse Determination Act, would give the threatens automatic cuts patient the "right to refuse treatment," The Democratic-controlled Congress and would require providers of health and the Bush administration are still care under Medicare and Medicaid to wrangling over a budget agreement Congress to sanction create procedures "to inform patients which meets the Gramm-Rudman missile exporters of their right to make decisions about deficit-reduction targetsand thus halts The Bush administration expressed care" and "to take other steps to ensure implementation of the Gramm-Rud­ opposition on Oct. 31 to legislation to that patient decisions are carried into man sequestration (automatic budget impose sanctions against companies effect." cuts), which went into effect on Oct. contributing to the proliferation of Among the "rights" is the right to 16, as the administration dropped its ballistic missiles. Richard Clark, As­ have a living will, or to delegate a insistence on pushing through its capi- sistant Secretary of State for Politico-

68 National EIR November 10, 1989 Military Affairs, told the Senate For­ in November. Saner voices are trying into that category, Ukrainian Catho­ eign Relations Committee that the to expose the hoax, although their lics and Ukrainian Orthodox believers adoption of such legislation would voices are still unheeded. Sen. Mal­ do not, unless so designated by the hamper the administration's efforts to colm Wallop (R-Wyo.) said on Oct. Attorney General. stop the spread of missile proliferation 25 that "there appears to be a growing Lautenberg had introduced a simi­ through diplomatic means. urgency to do something, even though lar amendment in: June which had in­ Clark's testimony, however, did it is becoming clear that this some­ cluded Ukrainian$ in the refugee cate­ not seem to faze committee members. thing may be in response to a phantom gory. According to sources in the "Congress must act to make illegal problem." "Before we rush forward Ukrainian-Americpan community, traffic in these technologies very haz­ with this urge to legislate," cautioned Lautenberg had been encouraged to ardous to the pocketbooks of certain Wallop, "we should have the issue in change the bill under pressure from kinds of corporationsand their subsid­ clear focus." the Anti-Defamation League. As the iaries," commented Sen. Albert Gore U.S. becomes more restrictive in its (D-Tenn.), one of the authors of the immigration policy, the ADL is con­ legislation. cerned that the rdstrictions fall more Recently the Pentagon acknowl­ Congress agrees on heavily on groups other than Soviet edged that it was attempting to stop minimum-wage bill Jews. France from selling rocket technology Congressional Democrats and the ad­ Lautenberg claims that the Ukrai­ to Brazil and India, and was con­ ministration agreed on a compromise nian Catholics can no longer be con­ cerned aboutIsrael 's continuing coop­ minimum-wage bill on Oct. 31, pro­ sidered a refugee group since Gorba­ eration with South Africa's missile viding for the first increase since chov is in the process of legalizing the program. 1980. Ukrainian Uniate (Catholic) Church. In June, Bush had vetoed an in­ This issue is expected to come up crease saying he wouldn't accept any when Gorbacho,:, visits Pope John minimum-wage rise that went beyond Paul II in November. But it is not cer­ Environmentalists seek limits he had earlier set as acceptable. tain that Gorbachov will make such a action on global warming The compromise was a softer version move. The environmental lobby in Congress of what the White House had said it is demanding the Bush administration would accept. Under the agreement do more to halt the alleged "global with the House and Senate leaders, warming" trend, by imposing controls the minimum wage will rise from the Conference committee on industry to prevent carbon dioxide current $3.35 an hour to $4.25 an hour guts SDI program emissions. by April 1991. Employers could also The defense conference committee Industrial reaction to the Bush pay a sub-minimum "training wage" approved a $305 . .5 billion defense bill Clean Air Bill, which could put a good for 90 days to new workers who are Nov. 2 which included a $3.8 billion number of industries out of business up to 19 years old, and then for anoth­ for the Strategic Defense Initiative, because of the added costs, is to fight er 90 days if the company institutes a $800 million short of the $4.6 billion hard to prevent any drastic action. specifictraining program for the new­ Bush administration request, and $1.8 Sen. Timothy Wirth (D-Colo.) ac­ comers. billion less than the Reagan adminis­ cused the administration of "dragging tration had requested for FY I 990. its feet" on Oct. 24. "We're getting Senate Armed Services Commit­ the wool pulled over our heads by a tee chairman Sam Nunn (D-Ga.) caus­ group that has its head in the sand," Ukrainians could face tically remarked that the reason for the he said. denial of refugee status cuts was that the mission of the SDI But even environmentalist Repub­ In an amendment introduced on Sept. program under the Bush administra­ licans like Sen. John Chafee (R.I.) are 20, Sen. Frank Lautenberg (D-N.J.) tion remained "undefined." "They've urging Bush to "put the United States proposed establishing new categories changed the program so many times in a position of world leadership" at for those who qualify for refugee sta­ and the architecture has never been the upcoming international environ­ tus. While "Soviet nationals who are really a fixed architecture," said mental conference in the Netherlands Jews or Evangelical Christians" fall Nunn.

ElK November 10, 1989 National 69 NationalNews

(D-Colo.), an old Harvard classmate, who has led the campaign against the Strategic Defense Initiative in the Senate. Gray sup­ Savings execs fight ported Sen. Frank Church (D-Id.) in his los­ Supreme Court to ing race against Republican Steve Symms. decide LTV case government railroad And in 1978, Gray backed Democrat The Pension Benefit Guaranty Corporation Two fonner savings and loan institution ex­ Charles Ravenal in a losing bid to unseat (PBGC), a quasi-governmentagency which ecutives have launched legal actions against Sen. StromThunnond (R-S.C.). insures pension plans, is appealing to the the Federal Savings and Loan Insurance Gray began contributing to the Wom­ U . s. Supreme Court tooverturn lower court Corporation (FSLIC) , which challenge gov­ en's Campaign Fund in 1978. In 1983, rulings exempting LTV Corp. fromrespon­ ernment attacks on the industry and efforts while counsel to Bush, he contributed sibility for pension programs. The PBCG to reorganize the U.S. banking system. $5,000, the maximum amount allowed un­ argues in its brief that an LTV victory will Stanley Adams, fonnerchairman of the der federal law. The most recent contribu­ transfonn the agency into an "open-ended Lamar Savings Association of Austin, Tex­ tion listed in FEC records was $1,000 in source of industry bailouts," the Wall Street as, filed a civil action in the Western District 1987. The organization describes itself as Journalreported Oct. 31. of Texas against the reconstituted Lamar Fi­ "the only political action committee devoted When LTV declared Chapter 11 bank­ nancial Corporation and the FSLIC, charg­ solely to recruiting, funding, and helping ruptcy in 1986, it terminated three LTV ing them with a conspiracy to destroy him elect viable women candidates who favor Steel pension plans in order to keep the and the S&L through actions described in passage of the Equal Rights Amendment agency's insurance liability from increas­ the suit as "arbitrary, irrational, offensive" and freedom of choice on abortion." Jane ing. A few months later, LTV instituted a and which "were undertaken willfully and Danowitz, the executive director, says that new pension program to provide benefits intentionally in violation of Adams' consti­ the fund also supports public funding for similar to the tenninated plans. The PBGC tutional rights." abortion. viewed the new plan as an abuse of federal Thomas Gaubert, fonner chairman of The fund is currently supporting fonner pension law, and ordered LTV to resume the board ofIndependent American Savings San Francisco Mayor Dianne Feinstein and funding and liability for the tenninated Association, was given the right by the Fifth Texas State Treasurer Ann Richards, who plans, including covering the $2.3 billion Circuit Court of Appeals in New Orleans to are running for governor of California and shortfaU. LTV won both its challenge and sue the Federal Home Loan Bank Board, the Texas, respectively. the appCal in court. Federal Home Loan Board-Dallas, and the FSLIC to recover $25 million lost when In­ dependent was forced to merge with a fail­ ing thrift, Investex Savings, in 1984, and was declared insolvent. Gaubert had been Court upholds ban Pickens blamed for forced to sign a personal guarantee that the net worth <;IfIndependent would not fall be­ on AIDS testing Phillips explosion low minimum regulatory requirements prior The u.s. Supreme Court let stand a land­ Corporate raider T. Boone Pickens was to the closing of the merger, which was de­ mark ruling on Oct. 30 which had barred as blamed for the Oct. 23 Phillips Petroleum layed due to a fe deral investigation of anoth­ unconstitutional, mandatory AIDS testing explosion in Pasadena, Texas, in an article er S&L owned by Gaubert. for employees at state facilities for the men­ in the Oct. 29 Houston Post. tally retarded. The Bush administration had Columnist Joseph A. Kineey wrote , urged the court to reject the appeal . "Already, the Occupational Safety and The court's action grew out of a case in Health Administration has an investigation Nebraska, in which a state agency had ruled under way. Unfortunately that investigation What C. Boyden Gray that workers who have close contacts with is not likely to yield much fruit because the residents of such facilities be tested for OSHA inspectors will not talk to the right does with his money AIDS and Hepatitis B. The agency said that man: T. Boone Pickens." In 1984-85, Pick­ White House Counsel C. Boyden Gray has such testing was necessary to protect the ens, head of Mesa Petroleum, led a raid on been funding Democrats and pro-Equal health of mentally retarded patients. Phillips, forcing the company into a huge Rights Amendment and pro-abortion politi­ A federal appealscourt ruled last Febru­ stock buy-back scheme. This in tum forced cal action committees, while serving as ary that the testing was unconstitutional . Phillips to lay off 10,000 of its 25,000 em­ counsel to George Bush, the Legal Times The state agency then appealed to the Su­ ployees, most of whom were in middle and revealed Oct. 31. preme Court, asking it to decide whether an lower management. Among those employ­ Federal Election Commission records employee's right to privacy outweighed the ees tenninatedwere safety and maintenance reviewed by the Legal Times reveal that government's interest in a safe working en­ engineers. Gray gave $2,600 to Sen. Timothy Wirth vironment for employees and patients. In recent months there have been explo-

70 National EIR November 10, 1989 Briefly

sions and loss of life in petroleum industry­ constitutional authority forcing a state to related accidents in Richmond and Tor­ allow a third party to exercise a right of • GEORGE BUSH said the "econ­ rance, California; Indiana; and the Gulf of refusal on behalf of an incapacitated patient. omy keeps moving reasonablywe ll," Mexico, all of these incidents involving The Agudath Israel brief declared, "The in a New York Times interview Oct. small companies. Court's decision will set standards and 24. "If you had a more difficulteco­ Government data show that workplace guidelines that will have ramifications far nomic situation, then I think you'd injuries have been increasing since 1984. beyond the individual patient whose life have a more urgent feeling. Today The number of permanent job disabilities hangs in the balance here. Many, many lives it's not urgent." has increased from 60,000to 70,000 ayear, will be affected by the Court's decision­ according to a recent report. and so too will the general moral health of • VINCE DEMUZIO, Illinois American society. The choices before the Democratic Party chairman, has es­ Court are stark; the issues to be decided, tablished a "LaRouche hotline," the profound; and the stakes enormous." Chicago Sun Times reported Oct. 30. "In 1986 two LaRouche candidates Orthodox Jewish group won upset primary victories and spoiled the gubernatorialbid of 'Sad­ attacks euthanasia ly' Adlai Stevenson to unseat Gover­ Agudath Israel, the leading Orthodox Jew­ Judge orders discovery nor Thompson." ish advocacy group, has filed an amicus curiae brief with the Supreme Court, oppos­ in PANIC frameup case • JOHN POINDEXTER, former ing euthanasia in the case of a brain-dam­ Los Angeles Judge Michael Hoff ordered Reagan national security adviser, can aged patient, Nancy Cruzan. Cruzan's par­ the California Attorney General's office on subpoena the private papers of Ron­ ents sought to kill her by removing nourish­ Oct. 27 to allow attorneys for defendant ald Reagan and renew his request for ment, but a Missouri court ruled to prevent Bruce Kilber access to 12 boxes of "AIDS Bush's, Judge Harold H. Greene de­ the murder. Initiative Investigation" materials seized by cided Oct. 24. David Zwiebel, general counsel and di­ the Attorney General. The defense victory rector of government affairs for the group, on the discovery motion is the firstcheck to • A CARTER administration re­ says this case is particularly important be­ the witchhunt by Attorney General John union will be hosted in Washington cause it is the first time the Supre�e Court Van de Kamp against organizers of the Pre­ Nov. 4-5, the Washington Post re­ will address the value to society of life, and vent AIDS Now Initiative Committee ported Oct. 31. A "town meeting" its voluntary and involuntary termination. (PANIC), which placed an anti-AIDS initia­ will be held at Georgetown Universi­ "It is a basic principle of Jewish law and tive on the Californiaballot in 1986. ty followed by a symposium on ethics that man does not 'own' his own life Judge Hoff stated that he was issuing the "Waging Peace" at the Dirksen Sen­ or body. We believe that the teaching as order based on the "potential for invidious ate OfficeBu iltling. expressed in the general disapprobation of prosecution" against Kilber, and that the suicide and euthanasia has served as one of case addressed "strong constitutional is­ • JIM BAKKER will be assigned the pillars of civilized societies throughout sues" which involved the individual's rights to the Rochester, Minnesota federal the generations," Zwiebel told the press. regarding the electoral process, "and that is prison facility, the current location of The notion that diminished levels in quality what this country is all about." He also stat­ Lyndon LaRouche. AP reports that of life deserve diminishing levels of life pro­ ed that in his 12 years on the bench, he the televangelist, who was sentenced tection is particularly troubling he said. had never heard of anyone being prosecuted to 45 years, is not being assigned for "Only half a century ago , our numbers were under the statute under which Bruce Kilber medical reasons, but will be in the decimated by a society that 'progressed' was indicted-illegally registering to vote, general prison population. from its 'enlightened' practices of 'mercy with the intent to leave the state. killing' to the mass slaughter of millions of Deputy District AttorneyKenneth Free­ • SEN. JOE BIDEN (D-DeI.) human beings deemed physically or racially man, in opposing the motion, charged that apologized for . underestimating the inferior." the defense had "other motives," that there importance of the Soviet radar facili­ The two major arguments in the brief is "no evidence of selective and vindictive ty at Krasnoyarsk, on a television talk are: I) even were it clear that the patient action," and therefore that Kilber should be show Oct. 29. "S o I was wrong. Mea herself did wish to have nutrition and hydra­ denied discovery. Kilber's attorney shot culpa, mea culpa. So what else do tion halted, the state's interest in preserving back, "If there is evidence of other motives, you want to talk about?" he snapped. human life outweighs the individual right to produce the evidence. Where are your Soviet Foreign Minister Shevardnad­ refuse medical treatment; and 2) any right a papers?" ze had just admitted the facility vio­ patient may have to refuse medical treat­ A status conference on the motion is set lated the ABM Treaty. ment is inherently personal and there is no for Dec. I.

EIR November 10, 1989 National 71 Editorial

The real sciencefr auds

In 1986 a group of biologists was accused of fraud. scandals against scientists .. They were modeled upon Among those who came under attack at that time was the infamous "Pentagate" proceedings which have Nobel Laureate David Baltimore , who has now been done a lot to close down much-needed research and appointed president of Rockefeller University. The is­ development work in the defense sector. Fortunately , sue involved whether or not certain data had been and in large measure because of Dr. Baltimore's spirit­ fudged in a published research report, although the ed counterattack on the arrogance of laymen presuming findingsof the paper itself have never been challenged. to judge the motives of a scientist whose work they did One-third of the faculty of Rockefeller University not understand , that appeared to end the matter. has come out in the press opposing Baltimore's ap­ Now the case apparently is being reopened. We pointment. While the commission of a fraud would by would urge those who are genuinely concerned with no means be a recommendation for such an appoint­ the issue of scientific fraud, to investigate instead the ment, it seems to us that in this instance not only was systematic coverup by the National Institutes of Health Dr. Baltimore not complicit in a fraud, but also that to and other government agencies, on the increasing dan­ label the publication of incorrect data a criminal act ger of the AIDS epidemic . As we have reported, it is would be to set a very dangerous precedent. now for the firsttime being �dmitted that in some places Moreover, on the scale of scientific malpractice, in Africa as many as one in four people are infected we would place the deliberate suppression of the truth with the disease. Similar statistics are being found about the extent of the present AIDS crisis as far more among the homeless in U.S. cities. For years Lyndon reprehensible and dangerous. We would also place LaRouche and his associates have been predicting, vir­ hoaxes such as that fabricated around the "ozone hole" tually alone, that with sufficient density of infection, in the same category. the disease can be transmitted by insects and by aerosol The controversial paper was not even done in Balti­ means. This was the basis for the two defeated referen­ more 's laboratory (his name appears on the paper be­ da in California which asked that public health mea­ cause one of the students whom he supervised, worked sures be taken . on the overall project it reported upon.) The accusation The LaRouche proposals were greeted by hysteria about the data was originally brought by a postdoctoral by the NIH , and attacked as panic-mongering. Other student, Dr. Margot O'Toole. people have gotten the same treatment. Several manu­ Peer review substantiated the particulars of Dr. facturers of aerosol sprays who advertised their product O'Toole's charge , but allowance was made for the fact as killing the AIDS virus, have been ordered to with­ that later experimental evidence amply substantiated draw the advertising by the Environmental Protection the contentions of the paper. There matters would have Agency. The reason given is not that the advertising is stood, were it not for the intervention of an employee misleading or untrue-but that it would expose the of the National lnstitutes of Health , Walter W. Stewart, government coverup of the dangers of "casual" trans­ who fancied himself a whistle-blower. He learned of mission. the case and vigorously pursued it. Ultimately, with The chief of the Environmental Protection the support of the American Civil Liberties Union, Agency's antimicrobial prqgram branch , Juanita Wills, Stewart enlisted Rep. John Dingell's (D-Mich.) House explained that the EPA "doesn't want people to start Energy and Commerce Committee to hold hearings on thinking, 'The government and doctors have been ly­ the case in the spring of 1988. ing, and I really can get AIDS fromthat table .' " Surely The presumptions underlying the Dingell hearing this is an incident of deliberate fraud which Congress­ would have been the entering wedge for a series of man Dingell might well investigate !

72 National EIR November 10, 1989 THE POWER OF REA SON

An exciting new videotape is now available on the life and work of Lyndon LaRouche, political leader and scientist, who is currently an American political prisoner; together . with six of his leading associates. This tape includes clips of some of LaRouche's most important, historic speeches, on economics, history, culture, science, AIDS, and the drug trade. This tape will recruit your fr iends to the fight fo r Western civilization! Order it today! $100.00 Checks or money orders should be sent to: Human Rights Fund P.O. Box 535, Leesburg, VA 22075 Please specify whether you wish Beta or VHS. Allow 4 weeks fo r delivery.

I would like to subscribe to Executi�e Executive Intelligence Review for Inte�ence D 1 year D 6 months D 3 months Review I enclose $ _____ check or money order Please charge my D MasterCard D Visa

Card No. Exp. date ____ _ U8., Canada and Mexico only Signature ______1 year ...... $396 Name ______6 months ...... $225

3 months ...... $125 Company ______

Foreign Rates Phone ( Central America, West Indies , Venezuela Address ______and Colombia: 1 yr. $450, 6 mo. $245.

3 mo. $135 City ______

South America: 1 yr. $470. 6 mo. $255. State ______,L,Z ip ______3 mo. $140. Make checks payable to EIR News Service Inc .. Europe, Middle East, Africa: 1 yr. OM 1400 . P.O. Box 17390. Washington. D.C. 2004 1· 6 mo. OM 750. 3 mo. OM 420. Payab le in 0390. In Europe : EIR Nachrichtenagentur deutschemarks or other European currencies. Gmb.H. Postfach 2308. Dotzheimerstrasse 166. 62 Wiesbaden. Federal Republic of Germany. I· All other countries : 1 yr. $490. 6 mo. telephone (06121) 8840. I

mo. ------$265, 3 $ 145 --- -' �o you needt 0 be plugged 1D. to thew orld's best intellig ence se""'... .''';...ce?

A\ert ential d cbes fi dispat S n s neW orld. t w o IR ge d tbe . E n c )' day l arou ss to ver s al cce E ureaU get a our b r . yOU nt rn frotn scribe poria Easte t sub st itn g In S . Ner be tno rewIn we U . I\S an on t d tion b se of e stor)' ers an eVolu collap al insid y-tnal< l will Witb r slcal nanCl tbe poliC ateria e pby d a t\ tnOng biS tn pe . lb us . an )' nds a b of t Euro und ay ver tre . �uc else! all aro oU tn tnents wbere . otnY ger . y overn d any econ ir-trig news . g bliSbe a ba f tbe be pu sb on ad o never ise cra be atte conc ed to 10-20 a5S ell ne s yoU rst-c1 w EIR bring . by t\ o tbe Nert weel< . ibe t et EIR ice a arge) ubscr you g tns . tW tra cb yoU s vice . s ile no e" When rt ser tbe neW aJ' (at al Ne ng on by f denti penl e ll-Or cont\ 's bap befor tna wbat onts . ies on egic fr s . or stor strat r pres and egula notniC tbe r eco al< In es bre e cris ad. tb ur he au yo down

mbH . e: ur G urop agent 166 , In E chten erstr. achri zheim EIR N 8 Dot h 230 .R.G . : stfac den , F ble to po iesba s paya e 200 W check rdc D_6 Make se NeVIS !lIlt 0 7 390 -039 BOX 1 20041 P.O . , D .C . ngton washi