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For shipping and handling, add to all Ben Franklin Booksellers orders: $3.50 first book, plus $.50 for $ . each additional book. 107 South King Street Leesburg, VA 22075 Phone: (800) 453-4108 (703) 777-3661 Visa and MasterCard accepted. Virginia residents please add 4.5% Fax: (703) 777-8287 sales tax. Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman. Melvin Klenetsky. Antony Papert. Gerald Rose. Edward Spannaus, Nancy Spannaus, Webster Tarpley, he Feature this week is directed to independent thinkers. The Carol White, Christopher White Science and Technology: Carol White upsurgeT in both Nazi and "anti-fascist" violence in Germany has Special Services: Richard Freeman received much international media attention (especially the former, Book Editor: Katherine Notley although the latter is equally a threat). This medi� campaign is de Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol signed to weaken Germany as a potential force for the good in
INTELLIGENCE DIRECTORS: the world, by portraying Germans as innately prone to right-wing Agriculture: Marcia Merry fascism. Our report shows that whatever ideological flaws a tiny Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, minority of Germans may harbor, Germany's gravest error has been Paul Goldstein to tolerate the meddling into its economic, political, and cultural life Economics: Christopher White European Economics: William Engdahl by racists of the Anglo-American oligarchy. Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus Meanwhile, that oligarchy, operating through Its "secret govern Medicine: John Grauerholz, M.D. ment," handed a fresh setback to the cause of justice in the United Russia and Eastern Europe: Rachel Douglas, Konstantin George States, when a jury in Alexandria, Virginia on Dec. 31, 1992 acquit Special Projects: Mark Burdman ted four defendants on trial for conspiracy to kidnap 36-year-old United States: Kathleen Klenetsky Lewis du Pont Smith, an heir to the du Pont fortune, and his wife INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura Andrea Diano-Smith, and "deprogram" them of their allegiance to Bogota: Jose Restrepo the political cause of Lyndon LaRouche. The decision came after Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen the judge in the case, Timothy Ellis, undermined the charge he had Houston: Harley Schlanger made only one day earlier and in effect ordered the jury to acquit on Lima: Sara Madueiio Melbourne: Don Veitch bizarre technical grounds, despite the massive evidence of a crime Mexico City: Hugo Lopez Ochoa which had been presented in the courtroom_ Milan: Leonardo Servadio New Delhi: Susan Maitra Before the verdict was ordered by a corrupt j�dge, the trial first Paris: Christine Bierre exposed in a courtroom the blatantly criminal m�thods of the "Cult Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson Awareness Network" against LaRouche. The transcripts of taped Washington. D.C.: William Jones conversations between the defendants are now a· permanent part of Wiesbaden: Goran Haglund the public record_ EIR will be involved in the publication of these
EIR (ISSN 0273-6314) is published weekly (50 issues) records and we urge you to assist us in circulating:the truth as widely except for the second week of July. and the last week of December by EIR News Service Inc" 3331/, as possible. Pennsylvania Ave" S.E .. 2nd Floor. Washington. DC 20003. (202) 544-70/0. For subscriptions: (703) 777- The interview with Lyndon LaRouche in Economics offers a 9451. fresh portrait in his own words of the man the Ang.lo,American European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, establishment most fears, because his moral and scientific approach 0-6200 Wiesbaden. Otto von Guericke Ring 3, 0-6200 Wiesbaden-Nordensladt. Federal Republic of Germany to economics is one essential element for getting �he world out of its Tel: (6122) 2503. Executive Directors: Anno Hellenbroich, Michael Liebig current dangerous mess. Finally, we would stress, inharmony with In Denmark: ElR, Post Box 2613. 2100 Copenhagen 0E. Tel. 35-43 60 40 the Bosnian foreign minister's statements in the U.S. on Dec_ 18 In Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 (see p. that the criminal western indifference to B9snia still can, Colonia San Rafael. Mexico OF. Tel: 705-1295. 54)
Japan subscription sa/es: O.T.O. Research Corporation. and must, be reversed. Takeuchi Bldg .• 1-34-12 Takatanobaba, Shinjuku-Ku. Tokyo 160. Tel: (03) 3208-7821. Copyright © 1993 EIR News Service. All rights reserved. Reproduction in whole or in part without pennission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months-$I25, 6 months-$225, 1 year-$396. Single issue-$IO Postmaster: Send all address changes to EIR. P.O. Box 17390, Washington, D.C. 20041-0390. ,�TIillContents
Interviews Strategic Studies Economics
7 Lyndon LaRouche 26 Qin Shi-huang, Klein, and 4 B�nkers push forbearance The economist and statesman the destruction of China to �eep debt bubble a80at speaks from his prison cell on the The P.R.C. government's The con job by the banks to save deadly disease of "political announcement of a new annual thelDselves by further looting the correctness," the crisis in Russia, fe stival, dedicated to the most economy and the public, is being and what to do to solve the world infamous tyrant of Chinese history., pre�ented not as the thievery and economic depression, is equivalent to holding a fe stival in fraud that it is, but as an attempt to the West in honor of the Roman stiIfulate the "recovery." 28 Lawrence Klein Emperor Caligula. Not The former director of Wharton coincidentally. it coincides with 6 Gaidar is out, but his Econometric Forecasting at the strengthened ties to U.S. economist policies remain Whart
Photo credfts: Cover, EIRNS. 17 Currency Rates 52 Andean Report Page 8, Ford Motor Co. Pages 10, 49 , Stuart Lewis. Pages 27, 33, Shining Path steps up war in Peru . 18 Vatican's Cardinal Sodano EIRNS. Page 39, Prints and backs neoliberal economics 53 Panama Report Photographs Division/Library of , Congress. Page 39, Triangle Studio POWs score prelate's "complicit 20 Transport associations of Photography. silence ." att�mpt to head offClinton retreat 72 Editorial The; President -elect has already Cold turkey. begun to backpedal from the cen�rpiece of his economic stimulus program: a $20 billion increase in spending on U.S. phy�ical infrastructure.
23 AgHculture Australian farmers fight back.
24 BU$iness Briefs
a Volume 20, Number 2, January 8, 1993
Feature International National
42 Beijing and Moscow enter a 60 Bush pardons 'political' 'new era' in relations targets-but not LaRouche Boris Yeltsin's visit to China, and If Bush were truly concerned, as he the array of agreements signed there says he is, about "criminalization of in all areas, point up the abject policy differences," he would have failure of Anglo-American policy granted executive clemency to toward the East. Lyndon LaRouche. Instead, observers are asking whether Bush 44 From the sellout of Bosnia will pardon himself next. A scene in a Gennan city: Rightist graffitti urging that to the maelstrom of World foreigners be expelled. have been painted over with 62 Corrupt judge fixes counter-slogans urging that the Nazis be expelled. War III Who benefits from the rising tide of violence? acquittal of 'Kidnapers, 46 Inter-American Dialogue Inc.' gang in Virginia 32 Anglo-Americans fostering 'sharpens dagger' against Nazi revival in Germany national sovereignty 64 Congress continues BNL The Nazi revival would not be Documentation: Excerpts from probe despite Justice occurring except for a sweeping Convergence and Community: The Departmeat coverup destabilization of Germany by the Americas in 1993. same British, American (and, now, 66 U.S. family farmers tell Israeli and Zionist lobby) factions, 50 The Dr. Alvarez Machain story of usury and hUinan which earlier supported the rise of case: Thornburgh's rights violations Adolf Hitler to power in 1933. kidnapers knew it was A report from the Dakotas on' wrong man public hearin,s cond�cted by:a 35 Antifascists vs. anti Schiller Institute committee headed antifascists: the 'strategy of ' 54 International Intelligence by retired W ashingto� State : tension' Supreme Court Justice William C. Goodloe. 38 ADL creates Ku Klux Klan and Nazi chaos in Germany 70 National News, �TIillEconomics
Bankers push forbe�ance to keep debt bubble �oat by John Hoefle
I u.s. bankers and banking regulators have launched a full combination of government funds and unreported losses scale push for forbearance, and for further deregulation of which has allowed the banks tpI claim record profitsfor 1992. the already-insolvent and fast-sinking U.S. banking system. Those artificial profits, and Ithe corresponding phony in This con job by the banks to save themselves by further creases in equity capital, are the cornerstone of the pretense looting of the physical economy and the public, is being that the banking system returrted to health in 1992. But were presented to the public not as the thievery and fraud that it these claims of financial healt true, there would be no reason is, but as an attempt to stimulate the "recovery" and benefit for this near-hysterical push f*� r deregulation. the consumer. In fact, 1992 was a disastrous year for the U.S. banking The bankers and their pet regulators are pushing the line system. Many problems wereiswept under the rug during the that "overregulation" of the banks is hampering their ability election season, and those problems are now resurfacing with to make loans and thereby help the economy. Ease up on us, a vengeance, much worse fOlt having been ignored. That is the bankers recently told President-elect Bill Clinton, and we especially true with real estatef where values continue to drop can pump $86-100 billion in new loans into the economy, with no end in sight. Many ijanks will attempt to clean up and get this recovery moving. their balance sheets in the coming period, writing off some That's like a vampire telling its victim, "Let me bite you of their real estate and other losses. At some point after and I'll fill you with blood." Congress reconvenes, the R�solution Trust Corp. will be The claim that regulators have been too hard on the banks refunded, and the liquidation �f S&Ls will resume, dumping is ludicrous. There is no adversarial relationship here: the even more real estate on aq. already-overloaded market. regulatory system is, as a whole, dominated by the big banks Many real estate developers apd other investors are also try and exists to protect and subsidize them-at the expense of ing to sell their properties in orfler to meet their debt payments the economy and the population. or cut their losses. With more than $850 billion in direct real Over the past year, the government has pumped billions estate loans on their books, a�d property values down 50% of dollars into the· big banks to keep them afloat. The most or more from their peaks in !ffiany places, the banks have hlatant example is the Treasury securities scam, in which suffered catastrophic losses .• t is against that backdrop that government lends the banks money at 3% interest rates to the latest push for forbearance must be viewed. buy Treasury securities, for which the governmentthen pays ·thehanks 7-8% interest, giving the banks a 4-5% profit. This Replay of the S&L crisis lire--support system amounts to a direct government subsidy Forbearance, which essentjiallyis the practice of allowing iOOlthebanks , with the taxpayer picking up the tab in the form banks to lie about the values of the assets and liabilities on nfinoreasedfederal debt. their balance sheets, is nothing new to federal regulators. :;r' WJbilethe goVernmenthas been pumping money into the Regulators routinely overloo�ed the losses run up by the 'p,anksrit has also conspired with them to hide the extent of S&Ls in the late 1980s, helpin� to turn what could have been their losses from'.Jbad loans and devalued assets. It is this a manageable problem into a trillion-dollar fiasco. In the
EIR '4 Economics January 8, 1993 wake of the so-called S&L bailout, regulators and politicians eliminating the politically unattractiv¢ spectacle of closmg fell all over themselves promising that such forbearance banks during an election year, " House Banking Committee would never happen again. But then the banking crisis hit Chairman Henry B. Gonzalez (D-Tex.) observed at the time. with full force, and the cries for forbearance began anew. On April 24, President Bush anno�nced a series of regu But this time, the word "forbearance " being politically incor latory reforms for financial instituti<)ns which would, he rect, the code phrase "deregulation " is being used. claimed, save taxpayers "tens of billions of dollars. " Among The policy of forbearance was stated explicitly one year the items in the package was one to red�ce the number of bank ago by federal regulators, who summoned 500 federal bank examinations by federal regulators, while another measure examiners to Baltimore, Maryland on Dec. 16, 1991, to would allow banks to avoid propert� appraisals when the demand that the examiners overlook the lies on the banks' banks felt they were unnecessary. . balance sheets. "You have a tough job, " Deputy Treasury In June, the administration sent to Congress legislation to Secretary John Robson told the examiners. "We want you to repeal parts of the FDIC ImprovementJAct of 1991. Treasury carry it out in a way that promotes economic growth and Secretary Brady called upon legislatorsto repeal "antiquated protects the public .... You are encouraged to give the laws" that prohibit big banks from establishing nationwide benefit of the doubt, even if it might ultimately tum out to be branch networks and underwriting and selling securities and a misjudgment. insurance. "These reforms are long, long, long overdue," "Do not assume a doomsday scenario, " Robson instruct Brady told bankers at the International Monetary Conference ed the examiners. "Our economy will tum around and so will in Toronto on June 1. troubled credit. " "If America's banks are the engines for growth in this country, then you are at once the throttle and Unjustifiable actions the governor, " Treasury Secretary Nicholas Brady added. The effect of these so-called refci)rms were not lost on "On the one hand, your decisions and examinations can some regulators, however. "It is difficult to even imagine, choke expansion. On the other, you can foster the injection let alone justify, why such actions are being taken while a of fuel that will lead to solid economic growth. " record number of bank failures are occurring, and that the Having informed bank examiners of the virtual no-such Bank Insurance Fund has a $7 billiolil deficit, " Comptroller thing-as-a-bad-loan policy, federal regulators then began to General Charles Bowsher told the House Banking Committee dismantle regulations which exposed the unpleasant truth on June 30. about the health of the banking system. In July, Standard and Poor's released a report which In January 1992, the Federal Reserve, the Comptroller claimed that U. S. banks are "substantially over-reserved" for of the Currency, and the Federal Deposit Insurance Corp. their loans to lesser developed countries, in large part due to (FDIC) eliminated the requirement that banks report sepa the increased creditworthiness of the:major '1bero-American rately their highly-leveraged transaction (HLT) loans. HLT debtors. "The primary lesser developed country lenders loans are the loans which occur when buy-out bandits take Bank of America, Bankers Trust, Chase Manhattan, Chemi over a corporation with borrowed money, then make the cal Bank, Citicorp and J.P. Morgan...;-arenow able,to rede acquired company pay the debt. Many of these takeovers ploy a portion of their LDC reserves to cover currentdomestic were funded with nearly worthless junk bonds. The effect of problems, " S&P claimed. this rule change is to further hide the losses to the banks What made these countries suddenly more.creditwtlrthy, arising from the junk bond-takeover bubble. even as they are being bled dry by the Jlanbandlnternational On April 2, the Federal Reserve cut to 10%, from 12%, Monetary Fund conditionalities? According to June 30 testi the amount of reserves a bank must set aside for transaction mony by Gonzalez, the "U.S . Treasury [is] ba�kingdeiVel accounts such as checking accounts and negotiable order of oping countries' bond issues, " providing "guarantees" to withdrawal accounts. By doing so, the Fed supposedly gave "big, big private banks " that "have been, for at least 2-3 the banks an additional $8-9 billion with which they could years, being rescued by the U. S. Treasury." . .' ) make loans. The primary beneficiaries of this change were In October, federal regulators decided to further,relax the big banks, which used much of these new funds to buy guidelines on real estate lending, and in December ...Amerklm Treasury securities instead. Banker reported that regulators are planning to ease restric;
On April 7, the FDIC board overrode an FDIC staffrec tions on banks' securities dealings. 0) 1>6' I 1)1(: ommendation and postponed action on a proposed 8% in Finally, the Federal Financial Institutions Examinatioris crease in the insurance premiums charged to the banks for Council, which consists of the Fed, the FDIC, the CQlPpttl0L deposit insurance. This, at a point in which the FDIC's Bank ler of the Currency, the Office of Thrift,Supervisioh:,/aod Insurance Fund was admitted to be some $7 billion in the the National Credit Union AdministratiolIjreleased;8'Il'epOrt red, having lost money for six straight years. which concluded that "the regulatoryburden on thebfi'Dking "Deferral of the increases until next January provides a system is large and growing, " an� caHed:.for "statutmy politically attractive means of reducing costs to banks and changes to further reduce regulatoryiburden'?' :. ')[ " ,:H
EIR January 8, 1993 EconomiCS .S agreement. Instead, Russia will merely be allowed to contin ue suspending all debt prinqipal repayments for the fourth quarter of 1992, and through March 31, 1993.
Gaidar is out, but Political unrest This feeds political instability, as even reflected by opin his policies remain ion polls; 38% of Russians polled by the news agency Interfax said that they were convinced the economy was headed in the wrong direction, and 37% deemed the situation "much by Denise M. Henderson worse " than a year ago. The Civic Union lodged protests with Yeltsin over the To the surprise of many westernobservers, Russia's Seventh fact that the core of the Gaidar team remains in the cabinet, Congress of People's Deputies, which met Dec. 1-14, suc including Aleksander Shokhin as deputy prime minister, ceeded in unseating the Anglo-American financiers' choice Anatoly Chubais as deputy pnme minister in charge of priva for prime minister, Yegor Gaidar, who promptly was ap tization, Andrei Nechayev as economics minister, and An pointed by President Boris Yeltsin to the post of presidential drei Kozyrev as foreign minister. The latest protest came on adviser. Gaidar was replaced by the Civic Union political Dec. 26 from Aleksander Vladislavlev, a Civic Union lead lobby's choice, Viktor Chernomyrdin. ing figure, who complained that Yeltsin was able to exercise The Civic Union represents three main political groups "too great an influence" in appointing the "new " cabinet, (directors of large state industrial enterprises, to whom indus while Prime Minister Chernpmyrdin was unable to put in tryis a pork barrel, not the locomotive for the regeneration of place a team that could implement his economic ideas. the entire economy; the military leadership concerned about Moreover, the new Rus�ian deputy prime minister for industry from the standpoint of overall national interest; and economic policy, Boris Fyodorov, has pledged to continue the Democratic Party, a mixture of democratic and Great Gaidar's shock therapy at a slower pace. Fyodorov stated Russian populism and nationalism). It had hoped to see a that for the near future the slate will continue to subsidize policy favoring state industry come out of the change in industry, but not over an undefined longer term: "The state leadership. Yet it seems as though for the moment Gaidar's sector has not yet adapted to the new situation, and therefore policies-and most of the members of his cabinet-will needs help to pass the market:economy challenges. " remain. In effect, the compromise worked out between Yeltsin 'Fascism and war stalklour nations' and the Civi� Union favors a continuation of the shock thera One independent voice has attempted to warn Russia of py economics championed by Gaidar, with minor conces the hazards of continuing tOlfollow shock therapy. As the sions to the Civic Union. Gaidar's policies have included Seventh Congress convened on Dec. 1,the New Europe bloc, allowing prices for basic consumer goods such as food to rise comprised of parliamentarians from eastern Europe and the "as the market dictates, " making it difficult for Russians in republics of the former Soviet Union, wrote to the Congress: certain'parts of the country to even purchase bread. Gaidar "Let the Harvard economists measure the depth of the depres has also taken a "sink or swim " approach to industries former sion into which their policy. within the framework of the ly run by the Soviet government. If a factory can't tum a International Monetary Fund� has sunk the entire world, a profitor finaa buyer, it is deemed bankrupt and closed down, depression worse than that of the 1930s. Then as now, fas thuscausing unemployment, something previously unheard cism and war stalk our nations;. In the Balkans and the Cauca of in Russia. sus looms the specter of a Thirty Years' War, which could Russia's economy is already so unstable that in the con spread like wildfire through04t Europe and Asia. " sumer sector, Izvestia reported on Dec. 19, "The cost of New Europe's statement k:ontinued, "The precondition baste necessities is now so high that they swallow up all the for peace, the precondition to solve existing political conflicts population's resources and people cannot afford anything rationally, is economic development for all the nations, from ex.tra. �' And Rossiyskaya Cazeta added that "prices are rising the Atlantic to beyond the Urals through to Asia. We call faster than wages and salaries. " Internationally, Russia is not upon western Europe, particularly Germany and France, to faring much better. On Dec. 23, it was reported that Russia deploy their full economic power in order to build up a mod . hat! defaulted on its U. S. agricultural loans, a total of $95.7 em infrastructure network, along the lines of the well-known ,inilliom:;' and ovemll, Russia's exports declined in 1992 by 'Productive Triangle' program.. ..Let us ...demand that
·26%. in each nation, there be set up � National Bank, with the task Af' The day the Seventh Congress opened was also the day of issuing credit to be applied to productive investments, '.thattaMes began with western bank creditors. Russia did not and to rebuild our agriculture and industry in the domestic I1get what she wanted, a comprehensive debt rescheduling markets of our national economies. "
\'6 �&:onomics EIR January 8, 1993 Interview: Lyndon LaRouche
Return to fundamentals of production-based economics Thefollowing interview was conducted with U.S. economist tem and free market policies? and statesman Lyndon LaRouche fr om his prison cell in LaRouche: The free market system IS insanity. We fought Rochester, Minnesota on Dec. 28, 1992. The interview was our [American] Revolution for indepe�dence against the pol conducted by Mel Klenetsky fo r EIR's radio show "Talks icies of what were then called Adaln Smith's doctrine of With Lyndon LaRouche." wealth of nations, which was a milder, less radical version of free market than is being pushed by Sachs and others EIR: We're coming up to the one-year anniversary of the today. formation of Commonwealth of Independent States, and of These fellows look only at buying cheaply, from the l the Yegor Gaidar and Jeffrey Sachs "shock therapy" pro cheapest source, and destroying ever)! part of the world econ gram, which has given the former Soviet Union 2,000% omy which does not meet that price lof cheapness. This, in inflation. Can any country survive that kind of policy? its milder form, the Adam Smith form of the British East LaRouche: No, absolutely not. It's a rather complicated but India Co., destroyed many economi s. Every time we tried important point, important not only for eastern Europe, but this model in the United States, as we did under Presidents also for the United States, that no nation, including our own, Jefferson, Madison, Jackson, Polk, Buchanan, or Pierce, we can survive the kinds of so-called free market deregulation destroyed our economy and went into a deep depression. The policies which are currently advocated by the U.S. govern United States never had a depression! which was not caused ment, by people at the Harvard University economics depart by our submission to some version of this so-called free ment, and so forth. It just cannot be done. It is a radical form market economy. And the only wa� we ev.er got out of a of monetarist policy, absolutely wild, which is guaranteed to depression, was by rejecting that free market ec.onomy, as destroy any economy which is foolish enough to accept such it's called now. r., policies. {. In the case of the so-called shock therapy, this little fellow What are the principles of shock therapy? EIR: IN Sachs, educated in the modern fads in economics, that is, in LaRouche: There's no principle a I all. You)simply allow totally incompetent economics, has proposed to use the shock no protection for your economy. You d[(l)p prices below re therapy to destroy the structures of economy which were placement costs; you pile up debt- t looks like; a loveraged associated with the former communist economies, in order takeover. VI' ':Ifl (PI to clear the way for the gradual mushrooming, beginning What happened in Poland, for example ; " as sh0ck therapy, with little peddlers, of a new so-called free market economy. is not much different than what hap I enecdrto No11thwestAir And what he gets, is a combination, on the one side, of a lines, which is not yet bankrupt, and to a lot of otheralrlines, total destruction of the economy, piece by piece; zooming which did go bankrupt. Somebody moved�n with a lev.eraged inflation as a result of a collapse of the economy-for no buyout; they took over the econom�, or the company.in:this other reason-and then a host of speculators playing upon case. They piled on a lot of debt to dost gf acquisition which the shortages thus created to make superprofits. was piled on the company, They sol off aFldothel'Wise hlpte.d The image of the Mercedes Benz 600 vehicles in Moscow parts of the company, cut wages, and s�\ forth ilfl�, so ,00-': amid the relative hunger, is an example of that, or the virtual all in the name of paying offthis deb , whicil'hadbeen created total collapse of the economy of Poland relative to what it in the process of the takeover. 151 . .)lJffJ � j'r£ I was before Sachs got in there. And the same thing is true in In the United States, there are a buntih of.' sharkS1ba.,do the United States. Britain is destroyed as an economy, and this. They'll take somebody, set hi up,finNestinhim,>lJjuii d the United States is destroying itself as an economy, all as a up his company; he'll buy a lot of assets. And then at one result of the same kind of philosophy of economics. point they pull the string and artifici lly dlive him.inkfbank
ruptcy, and then, one of the credito�s enoS' 11P. buyinMnlttbe EIR: What is shock therapy, and what is a free market sys- other creditors, taking over the who e cmnpanyat 2�H\lO¢A�n
EIR January 8, 1993 � Economros 07 "We have to have a policy of capital intensity that is, a lot of investment in producti ,I n, machinery, equipment .... We have have an emphasis on scientific and progress, and we have infrastructure." Shown, at Ford Motor Company's complex in Dearborn, in a busier era.Inset: aerial I view.
the dollar. That's what shock therapy is in practice, as applied s in universities today is in Poland. person who has successful , is a fa ilure. If you EIR: Free market and free trade policies are what everyone , they'll ruin it. If you tum learns when they go to school; they're told that protectionism them loose in a national , they'll ruin it. is bad. And yet, what you're telling us is that protectionism Economy has nothing to with this free market non- is the system' that built this country. sense. Economy is the relationship of the individual and the LaRouche: Yes, precisely. There is the case of Prof. Robert society to nature. It's a matter 6f how we, as human beings, Reich, who's been designated by President-elect Clinton to manage to produce enough an I increase our productivity to become the secretary of labor. Now prior to that announce the point that we as a nation, as a people, are able to survive. l ment, there was much mooting of the possibility that Reich, And we look at the nation, and e look also at the individual who presumably hild been one of the leading advisers to the in that connection. We also look at the family, because the governor on economic policies for his presidential campaign, family after all is the unit whidh reproduces the individual; might become the so-called economics czar. There was a and therefore the development of the individual within the grearprotest from various people, saying, well, Professor family, up to the point of maturit\ y at least, is the crucial point Reich doeS admittedly write a great deal on economic policy of the development of economy. and1teaoh on it, but remember, he's not accredited as a ten Now, you don't develop an :economy just simply by pro ured professor where he's teaching, because he has not quali ducing enough. In order to produce, you must have what we fied'bini.�elf in the requisite academic courses in economics. call infrastructure. You must have water management, land
N· . , Itlaughed about that, and I said, that's the very reason improvements, transportation, dnergy supplies, and so forth, h thiglYt be qualified. which are all infrastructure. Yo must also have in a modem n:Adybody who has been educated in the college level, for economy an educational syste1p which teaches something e-xlimpl'e,.in what1ts called microeconomics and macroeco which is not the so-called currentfad in economics. You must nomics, is unqualified to be hired for an administrative posi also have a health delivery syste ; otherwise your population tion i any branch 'of government or any company firmtoday. may be dying of lack of sanitati(i)nr or lack of care.
8 -Economics EIR January 8, 1993 So, these ingredients called infrastructure, which include people who go out and work as cheap�y as possible to satisfr the local city library for example, are absolutely indispens the demands of the consumers. An when the consurnel'il 4 , able to the functioning of productivity of society. They are don't have anything, the consumer are willing to pay a the first costof investment in maintaining a modem society. higher price; and when they do have s mething in abundance, And today, we have a collapse in the United States of infra they will pay only a lower price. That s essentially the whole structure. We have a water crisis, which is going to kill us theory. we're beginning to look like Africa, not as bad, but we're The fact of the matter is, that s 'Ciety is based not on headed in that direction. We have an energy crisis. We're consumption-obviously, we have t ,?onsume. But society going to brownouts and blackouts with no energy supplies to is not driven by consumption. Society economies, are driven replace it. We have no transportation system; the rail system by production. They're driven by th� productivity of labor. is collapsed, and rail is still the cheapest and best way of They are determined by how much qrthe physical needs of long-distance freight movement, apart from the bulk freight mankind can we get from an avera;e squ� mile of land which we move by water. area, by aid of human production. sjupply and demand has We don't have a health care system, our health-care ca nothing to do with that. pacity is 20% below the needs of the population. We have For example, the belief in supply and demand, an(i the no educational system to speak of. use of that as an argument policy�shaping, is th ' re8:son in e ' For example, even Stanford University, which is a highly why the British economy is the use�ess rust bucket today, respected university formerly, is one of those which has gone and why the United States is headed �n the same directjon. into the policy of not teaching students the writings of what We're not being cheated by Japan! We're not being c"beat are called "dead white European males." Now it happens that ed by Europe. They're not unfair wi� us, we're unfair with the bulk of all human knowledge to date involves dead white ourselves. We shut down our inf�astructure investment, European males of the past 2,500 years, beginning with peo which Japan did not do, which Eur�pe has not done to the ple like Solon, Homer, Plato, Pythagoras, and so forth. All degree we have. We shut down our investment in technology, of our knowledge is based on the development of the ideas which they did not do to that degree. We did all these crazy developed by these people. And a university which is not things, and we ruined our economy. Everything that trans teaching the work of dead white European males, has no formed us from the world's envy in economy at the beginning physical science, no music department, virtually no literary of the I 960s , to virtually becoming a Third World nation department-nothing! On the high school level, we have today, is the result of our own doing, our own stupidity, and again the political correctness program spilling down. The what is taught as economics is largel)!responsible for shaping "World of Difference" program, for example, put in by the the policies which have turned us frOm a proud, prosperous Anti-Defamation League, is destroying much education in nation into a junkheap today. parts of the country. But one thing I agree with the Wall Street Journal on, is that "political correctness" on the uni EIR: If the law of supply and demaqd and free trade policies versity level is destroying it. do not lead to infrastructure developlnent, how do you get it So we have no infrastructure . We don't have a labor force going? which is as qualified to produce as it was 20 years ago, and LaRouche: It has to be done by th� state. Firstc;>f all, you all as a result of these kinds of crazy ideas associated with have to start with this question of Dloney. According.to our the current fads in economics. federal Constitution, the creation of money and the circula tion and regulation thereof, is a monopolistic responsibility EIR: If you go to an economics class today on the university, of the federal government. Under Alexander Hamilton, and the main philosophy is the law of supply and demand. Why under all sensible presidencies, the way we've gotteQ money does the law of supply and demand not solve these problems? is not to have a Federal Reserve Sys�em prany centFal�k Why does it fail? ing system, not to allow it. That's how we're looted., LaRouche: It always did. Supply and demand is a piece of The way we're supposed to get money, is, as the�pll�i� idiocy. It was dreamed up during the 18th century in particu tution says, the President goes to t� CQn,gress and a§}Qf,.the lar. It was revised in the 19th century . Congress for a bill, which authori�s thP, Executive �r� It's nonsense. If you don't produce the supply, you can to print and circulate money or to c�ate �pecie. ActiJlg!llf.,9Q demand all you want, you're not going to get it. If you don't the authorization of that congressional'l bill, the Pr¢*,�t, have infrastructure, you won't get it. This is a long and more instructs the secretary of the Trt!asUry 1Q..proceed. Andj� complicated problem, which goes to the axiomatic roots of proper procedure is that the secretary of.�e Treasury�e�r' the incompetence of what is taught as economics. Its advo the money. paper money, specie, aqd sQ(forth, or authori?:es cates argue that you start with a fund of money. Where this someone else to do it on the TreasurY's btjh,alf, like apri�g:. fund comes from, is a big mystery. Then, they argue that company or a mint, for example. i [I!" ,�J'Ofl there are consumers, who buy, and that producers are merely This money is then properly p�cedtJ.n a national bD�,ij
EIR January 8, 1993 EconomicoS::)398 LaRouche: The Federal Resyrve is a private corporation; licensed, franchised by the federal government. A group of private bankers, domestic as well as foreign (but through domestic banking channels), s I ts up a bank called the Federal Reserve bank. They run it. Now, they create money. or example, today, the Feder al Reserve System will issue money at less than 3% to New York bankers and similar people. They print it by discount I mechanisms. These banks in turn will loan that money to the federal government by bu ing federal debt at 5.5%, or
something like that, or on Ion I bonds they'll go as much as a 5% spread. So what we have is the pectacle of money which is created out of thin air, loaned at 3% or less to banks and others who in turn loan that fiat moneyl to the federal government at up to a 5% spread. So the debt is being created, the federal debt is being built up to bail oLt the private banks. And the federal government, in order t� conduct its own operations, in order to pay the debt servi e that it already owes to the banks and similar people, bdrrows money, federal debt, "The federal debt is being built up to bail out the private banks . which it pays for by this means. And so the federal debt is . . . Our problems today are centered on the operations of the built up precisely because of this Federal Reserve System. Federal Reserve System, " charges LaRouche. Pictured: The U.S. Federal Reserve building. EIR: Assume that we get our frastructure going again, we create a national bank. How dabsl the United States compete It's not spent usually for government expenditures directly. with countries like Japan and G rmany, who are so far ahead It's not paid @ut by the government. But it's put in a bank. at this point in terms of infrastrilicture? When it gets to the bank, it is loaned. U.S. government LaRouche: We really don't h e to worry about competing, money is loaned at a low interest rate to governmental agen except in the sense of realizinarthat the level of technology cies such as state governments, state projects, or federal in these countries represents a ltandard with which we must corporations, that is, corporations which are authorized by have parity. We don't have to ave exactly the same indus- I the federal government, like water project companies or the tries, or the same complex of industries they have; but we Tennessee Valley Authority, for example. These companies have to meet that technologi I al standard, That means a use that money to create wealth in the form of infrastructure. change in our policies presentl�; our tax policy, our credit The m())ney is also to be loaned, mixed with private savings policy-all have to change. and lQam,nt0 priv.ate companies for worthwhile categories of For example, let's start withI the farmers-agriculture. privateJinv.estments to build up the economy generally. And Most people don't know it and most wouldn't even believe thafsr IQ I Economics! EIR January 8, 1993 trade. We have people who were former Cargill officials, but we need all of these farmers to pro�uce an adequate food former Cargill attorneys, Cargill assets, running the agricul supply, and that's the way we calcula� parity. So when you ture department. These guys have been looting the farmer. force prices of commodities below pa ity, you are bankrupt- People like Dwayne Andreas have been looting the farmer. ing farmers. � So, farmers are going out of business. They didn't go out I of business all at once; they got into governmentdebt . Then EIR: Who's forcing them to Produc below parity? the governmentturned the screws, often illegally, violating LaRouche: The U.S. government i�� backing up the grain the law, to put the farmers out of business, even put them in cartel. The grain cartel comes in, cu a contract, and says jail, for doing nothing other than trying to keep the farm we'll buy at this price. And they �se� their monopolistic going and supplying food to the United States and the world power against the relatively small bu�inessman, the farmer, at below the cost of production. taking him on one at a time, and theyl crush him. And if the I So obviously, we have to build up the agricultural sector U.S. government does not intervene �gainst these monopo- again, to the point that we can produce enough food so we're lies, these oligopolies-they're actUlUly violating the anti not dependent upon foreign countries for our food supply, trust laws, in principle-to prevent t�em from abusing the which is what we've done by sinking the American farmer. farmer, then the farmer will be crush�d, because the farmer We have to do the same thing in the manufacturing sector. is a small businessman up against a �iant like Cargill .. How We have to create more jobs in manufacturing and transporta is a small farmer, grossing a coupl� of hundred thousand tion and so forth. We have to have a larger percentile of the dollars year, going to compete in thd so-called free market total labor force involved in producing wealth and a much against a $40-billion-a-year giant, �ich, with its friends, smaller percentile of the labor force involved in low-grade the Union-Pacific crowd in Omaha,j controls the Chicago service industries, or in financial services and outright para market, controls the grain trade deals! in Minnesota? How is sitism. We have to have more people in production, more that individual farmer going to compete in the marketplace, people employed in science, and fewer in, shall we say, low which is rigged by these powerful grain cartels, with the grade social services. We have to have a policy of capital assistance of a complicit agriculture department? intensity, that is, a lot of investment in production, in machin The U. S. government creates double talk. They call ery, in equipment, and a relatively shrinking percentile of parity a "subsidy" for the farmer, and say that's coming out investments in the simple direct cost of production. And we of the mouths of babies. Bunk. What we're subsidizing, by have to have an emphasis on scientific and technological not maintaining a parity policy, is these cartels which are progress. We have to supply the infrastructure, including the looting the farmer. transportation systems, the energy systems and the water systems which are necessary to allow industry and agriculture EIR: Farmers are being driven off their land. Who's buying to function. Those should be our objectives. up the land? LaRouche: Sometimes they're not !even buying the land; EIR: Why do farmers need parity to survive? they're taking the land for a song. There are many people LaRouche: A high-quality farmer will run a family farm involved; it's a complicated question as to what's happening. of maybe 400 acres of land. He's a small businessman But we are ruining the land. We're forcing the farmer,down actually, farmers are among the best small businessmen in to dustbowl conditions, or something similar, by forcing the United States. They were better at managing the farm him to produce from stored-up values in the land and in than probably 80% of the businessmen, including some large capital goods, until the point that the whole machine essen corporations, were at managing their companies, in terms of tially breaks down. He's out of business, saying, "I just efficiency, everything considered. They worked harder, they can't do it any more." It's a cruel story, but the pointis , the had a higher degree of competence for their work, and their whole thing is based on the lie that parity is a violation'of product was relatively superior. free market; and if Americans want to sustain that lie, they're Now, parity reflectsthe average paid-out cost of produc going to findth emselves going very hungry-because. ofa tion for these farmers, plus a small margin of return on shortage of supplies and because we can't afford to import investment, to cover borrowing costs and profits . That's all them. And the dumb American, who thinks that cheap: food it is. prices based on a bankrupt farmer is somehow good fOr\the So when you say "parity," you're not saying some magic consumer budget, who thinks that he or she gets his or har . term or some made-up term. Parity is simply the average food from the supermarket and doesn't have to be concerned , cost of production plus a small percentage for borrowing with the farmer, is going to be punished by his or her own costs and profit. That's all it represents. Some farmers are stupidity. . (, ; ).l[o{ much more productive; therefore, that means a fairly sub We are now in a grievous worldwide ,food shortage;Jallll stantial profit to them. Other farmers are less productive, acute one. People are dying of famine altlOverthe place" futl� EIR January 8, 1993 Economics 1 D United States with other cou tries masks the problem. The problem is worldwide. Generally, the level of education, the competence of people grad4ating from high schools and universities, is such that often the university graduate of today would not be qualifiedI or a high school diploma in a respectable high school , say of 25 years ago. And that's where the problem lies. The key to this, which is why I find myself in this uncomfortable alliance with the Wall Street Journal against I political correctness, is that if we allow these thugs, the so- called deconstructionists (the I arne they use for themselves), these modern Nietzscheans, to use the Modern Language I Association and other vehicles in colleges and high schools to introduce this political corlectness program where truth fulness is no longer a standard of teaching, but rather sensi tivity as they define it, is th It we're going to find that we have a bunch of barbarians. I refer people to Jonathan Swift's Gulliver's Travels, which many people think is l imply a children's book; it is not. It's a very powerful sati e on the condition of England at that time . And I refer them to the famous story about the Houyhnhnms-Houyhnhnms being horses. Poor Gulliver lands in the land of the Houyhnhnms, and he finds that High- technology hog fe eding in Iowa. "If Americans want to horses, i.e., a parody of the �ritish aristocracy, are running sustain the lie that parityis a violation of the 'free market,' they're going to find themselves going very hungry. " the place , and that human bfings exist only in the form of baboon-like immoral , disgusting, ignorant, speechless specimens called Yahoos. A�d that's what's happening. many reasons. But essentially the reason that we're having Our high schools and universities , and our general cultur this food shortage, is because of the very policies of the al system over the past 25 yearf has been turning the Ameri ' U.S. government, which many foolish consumers in the can from a proud human being into an illiterate, drugged, United States think are good for the consumer budget. ignorant, babbling, disgustin I Yahoo. And if we want to have a civilization, let alone compete, we better start at EIR: If the United States is going to restore itself as an tending to remedying this sicNness . Do you want your chil economic: power, it will have to deal with the educational dren and grandchildren to be a species of Yahoos who are level in this country , which, according to statistics,· has unfit,unqua lified, to survive? : r do you want grandchildren fallen behind the level in other industrialized countries such left behind you who amount 01to something? I think if we as Germany and Japan. How does it do that? focused on that moral question, we would find that the LaRouche: First of all, look at how we went down. Forget economic questions would fa II into place for us. the statistics. They're bunk. Yes, we are falling way behind these other countries, no question about it. That's obvious. EIR: If we look at the cabi let which is being chosen by But we're falling behind ourselves. If we look at the content Bill Clinton, it seems to be a paradigm of political correct of education in the 1950s and 1960s , the first half of the ness. We have a certain numbd of women, a certain number 196{)s, in particular, when the National Science Foundation of minority groups. Is this g ing to present a problem for grants to education were still in progress, for example, the this country? av:enlge graduateof a university today, including many with LaRouche: Absolutely. One shouldn't look at it too sim do.etoral degrees in social sciences, could not pass a compe plistically. In framing a government, at least in terms of t,eri�,high school standard of education from that period. nominations so far, what the Clinton team has done, is to -c�_Similar thing l are occurring in Europe. For example, provide an assortment of repre entation to every geographic belM'een 1968 and 1972, German education was collapsed area of the country , and every part generally of the spectrum byl he so-called J�randt reforms of the late Willy Brandt, of the so-called political, sociological rainbow. Now, what's who was then chapcellor. The German who is coming out been created by doing so, in onomics, for example, is at ofJ,'il_,high school in Germany today is virtually a barbarian least four different mutually toonflicting points of view on cgmpared with hi older brother or parent who came out of economic policy, all equally r�presented. an equivalent high school in 1966-68. So, comparing the Sooner or later, those conflicts are going to have to be f2 Economics EIR January 8, 1993 sorted out, and something, either one of the four or some "Okay, we'll go through this period o�deconstruction. We'll thing else, is going to have to take the place of most of the go through a period of placating Jeffery Sachs and the Inter policies coming in there . national Monetary Fund. We'll go through hell, but we're What you have is really the beginning of a rough-and going to let our people see what it 100*s like . They think that tumble; not a policy. In this rough-and-tumble, admittedly, they want the American system. Weill let them see what it's we have some very bad things. We have this rainbow politi like these days. And when they get e�ough of the American cal correctness idea-it's going to be a disaster. None of it's system, they'll come back to us." : going to work. The U.S. economy is going to become worse That is generally the thinking in sbme sections of the old until it changes. So therefore, whatever happens, if the apparatus, the nomenklatura. And you'll see that expressed political correctness prevails, to that degree you will have a among military voices more clearly t�an anywhere else, but failure. The administration is going to have to choose poli the military voices are speaking for ai broader group of peo cies, or tilt toward policies, which are against failure, which pie. This is true in Central Asia. The IRussian troops will sit will tend to be against political correctness. back, let the people shoot each other;! when they get tired of shooting each other, and call for the *,ussian troops to come EIR: The backdrop of the incoming Clinton administration in and save them, the Russian troopsiwill come in and save is a world in turmoil-the former Soviet Union, Europe, the them-maybe not promptly, but sloVily. So that process is developing sector. How do we restore some direction to the going on. world strategic situation? To develop these areas, to render them stable, requires LaRouche: I see things becoming much worse than that. fairly large-scale infrastructure proje�ts. The problem of the The former Soviet Union is not going to disappear; at pres Soviet economy, up to the point of ithe dissolution, was a ent, it's being reconsolidated. What's happened is that the rapid disintegration of infrastructure! And this occurred for Russian nomenklatura (some of the old communists, of many reasons. But this disintegratiop of infrastructure will course, are in it) is sitting back and saying, "Okay, these prevent any economic development frbm occurringon a large fellows want independence from us. Let them have it for a scale. So they're going to have to t*kle this infrastructure while, let them try to swim on their own. They'll sink, and problem. That will require, from theijrstandpo int, some sort they'll beg for us to come back in." If you look at what's of integrated effort, and Moscow, �turally, would like to happening, you will find that the communists, with the have this integrated effortoccur undeI1Moscow 's dominance. blessing of Lawrence Eagleburger and others, especially the And that's what Gorbachov is reflecti�gwhen he makes those British government, that the Serbian fascists of Slobodan kinds of observations. I'd say that's .. fairly good estimate of Milosevic are committing genocidal atrocities, with concen the direction of things. And remem1i>er, the former Soviets tration camps and genocide, which are beyond those even have about 30,000 warheads and a strategicnaval fleetwhich of World War II. It's unbelievable. It's the worst extremes is very impressive, so they still are Ii superpower, whereas of the Nazis and beyond that. These are communists . And the United States and Britain and s� forth collapsed, partly that's destroying that part of the world, threatening a Balkan because ofthis crazy Balkan war whidh the Anglo-Americans war there. started and have kept going. We're going to find that the The Russians are going to come back as an imperial Russians, even though they've gon� back a great deal, will power very rapidly, partly through agreements with forces be relatively stronger, relative to theiUnited States andBr it in China, but otherwise, the United States will be disinteg ain, than they were in '89. Very sOQn, they'll be ahead, the rating-while willing to play the role of world policeman, way things are going now. we'll collapse on the basis of our economic collapse here at home, which is now ongoing. So, we're in a terrible mess, EIR: In terms of the strategic situa�ion, is there any 'policy and we have to recognize firstof all that we're in a terrible that can be quickly pushed in motiorjin terms of Europeand mess. the former Soviet Union, that the Bnited States should be looking toward? I '" , EIR: The former President of the former Soviet Union, Mi LaRouche: Yes. Forget the military policies as such; that's khail Gorbachov, recently said that he expects to see a return a longer subject. Go back to fundamentals. FundameFltals to some of the integration that existed in the former Soviet are economics. We need to scrap every economic policy Union. What is going to happen in terms ofthe Soviet Union, which was introduced as an innovation during the past·'25- and what will this mean for the world strategic situation? odd years, and go back to the kindOf thinking in econonlic LaRouche: It's hard to say exactly what will happen. Gor policy which was characteristic of!the period of the Jbhri bachov is correct in seeing the shift back in that direction. Kennedy administration. This is the *ghtpolicy for the world That was obvious to me from what I've seen from various as well as the United States. That's the fundamental thing we sources. Some of the thinking among the leading Russian have to do, and that's what they're ijlockmg on in Washing. nomenklatura, back when Gorbachov fell, was that they said, ton these days. ,,_ . iU EIR January 8, 1993 Economics 13 Keynes's fascism a British face with I Jonathan Tennenbaum warns the patriots qfeastern Eur ope and the Third World not tojalljorjascisteco nomics in Keynesian disguise. The combination of savage monetary austerity and radical arranged dust which conceals, the real John Maynard Keynes "free market " deregulation has wrought such wholesale de from critical view. struction upon Poland and other nations of eastern Europe and the Third World, that all but a tiny minority in those Keynes and the Nazis nations are desperately looking for another solution . Those The quickest way to dispose of the "liberal" Keynes, who continue to promote "shock therapy" and other forms among civilized persons, is simply to quote his own introduc of International Monetary Fund (IMF) austerity, do so in tion to the 1937 German edition of his famous General Theo increasing political isolation, branding themselves as either ry of Employment, Interest, and Money. There he warmly lunatics or "bought and paid for " agents of foreign influence. recommends the Nazi fascist state as the most favorable con Not surprisingly, interest grows daily for the economic text for applying his economic theories: policies of Lyndon LaRouche-policies which include large "Thus I may perhaps expect to findless resistance among scale credit generation through Hamiltonian forms of nation German readers than among English ones, when I put before al banking; dirigistic methods of promotion of technological them a theory of employment and production as a whole, ly progressive, productive investment into domestic agricul which differs in important respects from orthodox traditions. ture and industry, and massive state investments in basic But can I hope to overcome Germany's economic agnosti infrastructure . The time for these policies is overripe: Clear cism? Can I convince German economists that methods of headed people who are concerned with the future of their formal analysis can make an limportant contribution to the nations, will automatically gravitate toward at least a prag analysis of present-day eventsiand the formulation of present matic agreement with LaRouche's policies . If the "law of policies? After all, it belongs to the German character to be gravitation " appears to be suspended in many cases, it is fascinated by theories. How hungry and thirsty must German chiefly due to blindness born of professional miseducation, economists be, having gone for so many years without such and a tendency to cave in to the kinds of blackmail and a theory ! It is certainly worthwhile for me to make an attempt . bullying associated with the names George Bush and Henry And if I can contribute some tidbits to a full meal, prepared A. Kissinger. and served by German economists and adapted to German It happens that some well-intentioned, but poorly in conditions, then I will be content. For I must admit that much formed individuals in the Third World and eastern Europe in the following book was written and illustrated in reference sometimes associate the name of British economist John to the situation in Anglo- Saxon countries . Nevertheless, the Maynard Keynes with alternatives to "shock therapy" and theory of production as a whole, which is the object of this otheI:ilMF policies . Not only is such a reference false and book, can be much better adapted to the conditions of a misleading-Keynes was himself a chief architect of the totalitarian state, than the theory of production and distribu Bretton Woods system, including the IMF, World Bank, and tion of wealth under circumstances of free competition and the 1�1 EconomicS EIR January 8, 1993 and consolidate the fascist economy in Germany. of people. Keynes pleads for a more "moderate" course, Was Keynes himself a supporter of fascism, as the cited demanding a revision of the treaty whith would give Germa quote would strongly suggest? Whatever specificob jections ny a chance to rebuild its economy. All this would seem it Keynes may have voiced against the Hitler regime, the funda laudable performance. It certairtlyas�ured a relatively posi mental answer to the question is yes: Keynes must be regard tive reception for the 1937 publicatioJII of Keynes's General ed as a principled supporter of fascism, on the following four Theoryin Germany. essential counts. But if we disregard the mere semblance of sanity in First, Keynes was an open supporter of eugenics, or what Keynes's 1920 statement, and pay attention to what he actu the Nazis called "race hygiene." He was a leading member ally says, a different picture emerges. Keynes is in entire of the British Eugenics Society, which into the late 1930s agreement that the German and conti�ntal European econo hosted and praised some of the same Nazi "race scientists" mies, in the form they had existed �rior to World War I, who went on to design Hitler's "final solution" policy and should be destroyed! As an avowe� follower of Parson were finally condemned at Nuremberg for mass murder. Thomas Malthus, Keynes is filled wjth a passionate hatred Second, Keynes was a fanatical malthusian, sharing for the Leibnizian principles upon which Vom Stein, List, thereby the same underlying philosophy which moved the and their counterparts in France an EIR January 8, 1993 Economics 1�1 Keynes proceeds to attack the "American System" of in the daily conditions of life of the mass of the popUlation, investment in technological progress, whose documented Society was so framed as to throw a great part of the increased success, both in the United States and continental Europe , �ncome into the control of th'e class least likely to consume refuted Malthus's lies: It. l "Europe [before World War I] was so organized socially 'The immense accumulations of fixed capital which, to and economically as to secure the maximum accumulation the great benefit of mankindl were built up during the half of capital . While there was some continuous improvement century before the war, coultl never have come about in a 1 society where wealth was divIded equitably. The railways of the world, which that age bupt as a monument to posterity, were , not less than the pyramids of Egypt, the work of labor which was not free to consurAe in immediate enjoyment the fu ll equivalent of its efforts." In memoriam:' Keynes chooses to ignore I the essential point, that in con trast to unproductive pyramid-building (which Keynes later Minorurroyo da recommends as the path to "full employment"), the construc tion of railroads in the United States and Europe increased The editors of EIRr a e saddened to re,port that Mr. the per capita productive po I ers of labor; and this increase Minoru Toyoda passed away on Dec. ,...15 at the age in turn permitted both an increase in living standards and an of 79. Throughout bis life, Mr. Toyoda was actively increase in the wealth investbd in expansion and improve involved in developing the Japanese automobj]e indus ments of the means of prod�ction. Keynes completes his try, and the Toyota automobile conglomerate and asso lying attack on the American System as follows: ciated industrial spinoffs. Mr. Toyoda believed that it "Thus this remarkable sysiem depended for its growth on was necessary for Japan to also play an active role in a double bluff or deception. bn the one hand the laboring fosteringthe development of fundamental science, and classes accepted ...a situati In in which they could call their for that his country had an important role,to play hu own very little of the cake, that they and Nature and the manity as a whole. capitalists were cooperating tb produce. On the other hand In 1989. when Martin Fleischmann and Stanley the capitalist classes were all�wed to call the best part of the Pons announced their discovery of cold fusion" Mr. cake theirs and were theoretically free to consume it, on the friendship Toyoda invited,themto Japan , and a devel tacit underlying assumption th�t they consumed very little of oped. And whe,n the international science community it in practice. The duty of 's�ving' became nine-tenths of turned against the two chemists, Mr. Toyoda offered virtue and the growth of the dke the object of true religion. ou "And so the cake increased; but to what end was not them a laboratory where they c ld continue their re searches . On the morning of his death, Mr, Toyoda clearly contemplated. Individbals would be exhorted not so associates , much to abstain as to defer, add to cultivate the pleasures of had met with, a, group of his who briefed him on the latest de velopments in cold fusion. He was security and anticipation. Saving was for old age or for your virtue of the cake happy and interested in all of the progress . children; but this was only in I heory-the . EIR Science and Technology Editor Carol White was that it was never to be co sumed, neither by you nor by wr0te· of bis singular contributionsin ber Dec. J 1, 1992 your children after you ....The cake was very small in Conference on proportion to the appetites of onSumption, and no one, if it Featllre on tne !fhird International Cold Fusion . Whit� !observed on "While r were shared all around, woulj be much the better off by the Dec. 28: I neve I a personal cutting of it. Society was working not for the small pleasures met him persoo\il1y, I fe lt his death as very being, and by all of today but for the future sec�rity and improvement of the loss . He was aO'extraordinaryhuman 'Mcounts a joyous man, whose friendship was cher race-in fact for 'progress. ' "I.lshed by all thQ$e who were privileged to know him ." "If only the cake were not cutI but was allowed to grow in J-Ie was �honorary cbairman of Technova inc., the geometrical proportion predicted by Malthus of population, .he in but not less true of compound interest, perhaps a day might , f,a t�ink tanki I' 16 Economics EIR January 8, 1993 ly, in war, the consumer of all such hopes." Here we find, clothed in Keynes's habitual sarcasm, al ready the kernelof his strategy for destroying the orientation urr toward scientific and technological progress, which had be C ency Rates come a leading feature of the continental European and The dollar in deutschemar� American economies under the policies of Leibniz, Hamil New York late afternoonflxlna ton, and List. 1.70 Post-industrial fascism Keynes's strategy is very simple: To maintain technologi 1.60 - v '" � � cal progress, an economy must produce a margin of material � - I.SO ! surplus or "profit" which can be reinvested in the form of improved and expanded productive capacity. Keynes pro 1.40 poses to sabotage this process-which he denounces as a "double bluff or deception"-by establishing what became 1.30 known as the post-industrial or consumer society. The princi 11111 11/18 11125 Il/02 Il/Ol1 12/16 Il123 12130 ple is, " Enjoy now, don't think about the future !" By inflating the consumer goodsand service sectors of the economy, the The dollar in yen margin for technologically progressive investment is "eaten New York late afternoonftxlng up" and finally eliminated entirely. Meanwhile, the popula 140 tion, whose morals have been destroyed by the orgy of con sumerism, spread of hedonistic culture, and decline of real 130 productive employment, doesn't notice that it is cannibaliz ing the physical basis for its own existence. 120 This is exactly what has happened to the U.S. economy over the last 20 years, under the influence of Keynesian 110 policies which began to be implemented already in the 1950s. Characteristic for these policies was a massive expansion 100 both of governmentspending and of credit, which however 11111 11118 11125 Il/02 Il/C19 12n6 Il123 Il1JO (with the partial exception of the Kennedy administration) The British pound in dollar$ was channeled mainly into a vast expansion of superfluous New York lateafternoon ftxinl consumerism and parasitical service-sector employment. : Meanwhile real investment into basic infrastructure and the 1.80 productive industry fell below the break-even point. The result is the worst economic crisis of U. S. history. The same 1.70 thing, of course, is happening in western Europe now. The 1.60 murderous, "malthusian" effects are best seen in the starving ! � billions of people in the Third World, who were excluded ""'" � 1.50 � r , from the Keynesian consumer boom in the rich, so-called advanced countries, and who are paying for it with their 1.40 cheap laborand resources. The present wave of "ecofascism" 11111 11n8 11125 12102 lud9 12/16 1lI23 Il1JO is in fact a lawful continuation of Keynes's policies, whose essence is to prevent modem technology from being used in The dollar in Swiss francs the Third World, on the pretext of "saving the environment." New York late afternoon ftxInI At the same time, a new demand is opened up inthe industri 1.50 alized countries for "environmental products," thereby con suming whatever time, energy, and resources would other .... - I- 1.40 � IV - '" .A.-- .f wise be available for real economic recovery. I At the end of the line, what started out as a "liberation 1.30 from the Puritan work ethic" and a victory for the philosophy of Alles ist erlaubt, is transformed into savage, malthusian 1.20 austerity, as the productive base of society collapses. At that point-too late to be corrected-the mask falls from 1.10 Keynes's British-style "fascism with a liberal face." 11111 11118 11125 Il/02 12./t!1 12/16 Il123 12130 EIR January 8, 1993 Economics 17 Va tican's Cardinal Sodano backs neoliberal economics by Carlos Mendez Cardinal Angelo Sodano, the secretary of state of the Vati precisely this neoliberal economic model which is foisting can, told a press conference in Santo Domingo last October conditions of genocide upon , the subcontinent of Ibero that Mexican President Carlos Salinas is part of "a new and America (and elsewhere) in or 18 Economics EIR January 8, 1993 43 million Mexicans subsist in extreme poverty." world scale." That CELAM chose to give credibility to that Nacional Financiera, a state investment institution, re conference and its conclusions flies in the face of Biblical ported on Oct. 27 that unemployment by the end of 1992 teachings which give man dominion over the Earth, and would reach 35 million Mexicans. not the other way around: "Be fruhful, and multiply, and Thus, the "success" Cardinal Sodano would attribute to replenish the earth, and subdue it. 'I Mexico's anti-inflation efforts has been achieved at the cost At the Rio de Janeiro conferenCe, a deformed concept of the impoverishment of the majority of the population. of ecology was offered as a pretext fprblocking the develop This same "success" story is being repeated across Ibero ment of, especially, the countries �f the Third World, by America, as in the case of Argentina where more than 500 condemning them to the use ofbacklward"su stainable" tech retirees have committed suicide in the recent period because nologies incapable of producing sufficient food and other their pensions had been reduced to below survival levels. goods required to guarantee a dignifledexi stence for an ever : Thanks to President Carlos Menem's so-called "moderniza expanding population. It is, in fact, no accident that Eco '92 tion" policies, the vast majority of the country's officially also insisted on the need to dramatically reduce population registered 3.2 million pensioners today receive a monthly growth. equivalent of $150, while the basic monthly "market basket" Further, the Rio conference incliuded as one of its activi for a single worker in Argentina costs $1,000. ties the so-called Kari-oca conferen�e, subtitled World Con "If one does an analysis of the number of [retirees'] ference of Indigenous Peoples on I Territory, Environment suicides in any part of the world, one will see that the figures and Development. The Kari-oca conference stated in its final here are normal; the suicide index is normal," President declaration, "We maintain our rig�t to our traditional way Menem defensively argued Sept. 17. Could the Argentine of life," which means to condemp the Indian population pompadour be one of those Presidents described by Cardinal to eventual extinction by hunger and disease. Venezuelan Sodano as part of "a new and important generation of politi anthropologists have observed, for example, that the Yano cians concerned with the progress of their people"? mami Indians who inhabit the Venezuelan and Brazilian Amazon have an average life span of barely 30 years. CELAM: adjustments 'could prove beneficial' Point 17 of the Kari-oca Declaration states that "We In its final document entitled Conclusions, the Fourth maintain our right to our spiritual w!lyof life," which implic General CELAM conference reproaches "the neoliberal poli itly proposes a returnto the human sacrifices of the Aztecs cy that predominates today in Latin America and the Caribbe and to other aberrations which cqaracterized the cultural, an," but then goes on to state that "economic adjustments, • religious, social, and political "life-styles" of many of the although they can prove beneficialin the long run, by braking ancient primitive indian cultures. inflation and stabilizing the economy, usually cause a serious These two points of the Kari-Qca Declaration also find deterioration in the living standards of the poor" (emphasis an echo in the Conclusions document of the CELAM confer added). ence which, under the title "The Earth: Gift of God," states, Herein lies the error of the CELAM document, since "In our continent one must consider two opposing views "economic adjustments" as conceived within the neoliberal with regard to the Earth: model can never be "beneficial," nor can they help solve "a) The Earth, within the set of elements which form the economic instability or runaway inflation, either in the short indigenous community, is life, a sacred place, the 'feminine or long term. On the contrary, by imposing bankers' account face of God,' the integrating center of community life. With ing techniques upon real nations, by forcing them to slash in her they live and coexist in communion with their forefa health, education, and defense budgets, to shrink agricultural thers and in harmony with God; for this same reason, the and industrial credit, to eliminate infrastructure expendi Earth, their Earth, forms a substan�ial part of their religious tures, to privatize strategic sectors of the economy, these experience and of their own histotical project. Among the economies are being asset-stripped, sacrificedfor criminally indigenous there exists a natural rflspect for the land: She is usurious debt repayment to keep the bankers' house of cards the Mother Earth which nourishes ,her children; that is why from collapsing. she must be protected and not mistIl!ated, and her permission sought to sow. CELAM and Eco '92 "b) The mercantilist view considers the land from the This economic outlook, reflectingthe CELAM conclud exclusive standpoint of exploitation and profit, even to the ing document's fundamental weakness, is not accidentally point of dispossessing and expelling its legitimate owners." linked to its tolerance of a malthusian-ecologist view of the After500 years of the evangelifation of the New World, world as well. The Conclusions document, for example, one is forced to ask if the Latin Arterican Bishops Confer states that "the United Nations Conference on Environment ence really wants to include such I pagan concepts of Earth and Development [Eco '92], held in Rio de Janeiro ...has worship and malthusianism in thej,r final document, which emphasized the seriousness of the ecological crisis on a presumably represents Catholic Church doctrine. EIR January 8, 1993 Economics 19 Transport associations atte�pt I to head off Clinton retreat by Anthony K. Wikrent Even before he is sworn in, President-elect Bill Clinton has The implication of these storie�, is that it is no use trying to already begun to backpedal from the centerpiece of his eco stimulate the economy by prOlViding increased funding for nomic stimulus program: a $20 billion increase in spending infrastructure, since at best, the money wouldn't even be on U.S. physical infrastructure. In an interview with the Wall spent, and at worst, it would be Mrasted on porkbarrel projects Street Journal on Dec. 18, Clinton indicated that he was and graft. prepared to devote greater attention instead to the problem Another story floated in tIlte national newspapers soon of reducing the deficit, as demanded by a wide range of after the November election, was that the recent crop of Anglo-American financial spokesmen, such as International "good" economic statistics indicates that the V.S. economy is Monetary Fund director Michel Camdessus and Henry Kauf coming out of recession "under its own power." An economic man, the former chief economist of Salomon Brothers during stimulant is not only not needed, according to these stories, the junk bond years of the 1980s. but might actually do more harm than good, by injecting On Dec. 21, the Wall Street Journal reported that Clin unneeded billions of dollars of demand in the middle of an ton's advisers had deliberately held back information from economic upswing, reigniting the fearsome fires of inflation Clinton about how quickly the U.S. federal budget deficit that were supposedly vanquistied by Paul Volcker after he was growing. Their silence reportedly allowed Clinton to pushed V.S. interest rates thrOllgh the roof in 1979. maintain an aura of sincerity as he unfolded his economic Countering this propagandlj" in his Dec. 16 news release plans before the nation. But now, with the election safely Aashto president Wayne Muri� chief engineer and adminis behind them, Clinton's advisers can confront the Arkansas trative officerof the Missouri Highway and Transportation governorwith the grim realities of deficitsapproaching $300 Department, stated, "I want tq dispel the rumors being re billion for each of the next few years, terrorizing the new peated by the media, that states. have no capacity to use President to fall in line with the financial ukases dictated by additional funds ." Camdessus, Kaufman, et al. Why would the media be floating stories aimed at stop The prospect that the Clinton regime may not deliver ping any increase of spending do V .S. infrastructure? If any the extra $20 billion a year that was promised during the thing was newsworthy, it sMuld have been the fact that campaign, has spurred some U.S. trade associations con Clinton's $20 billion increase! per annum in spending on cerned abouttransportation infrastructure, to raise their voic physical infrastructure was a pitiful joke compared to the es in protest. In a news release dated Dec. 8, the American trillions of dollars backlog in deferred maintainence and can Association of State Highway and Transportation Officials celed construction the V.S. hao accumulated during the so (Aashto) declared that "state highway and transportation de called "Reagan boom years." partments collectively could spend an additional $8.5 billion Muri explained that in fact, t'Since the19 70s, the nation's in federal highway funds for 1993," over and above the investment in transportation, and particularly highways, has amount of funds already appropriated, and that they could decreased in constant dollars by about half of the amount prior spend an extra $22.8 billion if a major infrastructure program to that time. The result is a huge b0cklogof needed but unfunded going beyond Clinton's proposal were actuall y implemented. projects. The most desperate need is for rehabilitating our ex isting facilities. Rehabilitation contracts can go to contract Wall Street mythology quickly, and are labor intensiVe!. There is a large capacity of The Aashto release is noteworthy because it directly con idle construction workers that couldbe mobilized quickly, The tradicts a story purveyed by major U.S. newspapers that impact of an acclerated transportntion spendingprogram to the states have been barely able to effectively utilize the infra public both in jobs and improVed highways would be very structure funds they already have, and that in fact billions of impressive. . . . A total of 34 states have sufficientpro jects 'on dollars of appropriated funds are still sitting around unused. the shelf to fully utilize ...additional funds." 20 Economics EIR January 8, 1993 Muri 's statement was based on the results of a survey of eral Contractors of America (AGC) stated that "Construction the highway authorities of all 50 states, released on Dec. 8. is an engine of economic growth! . . . Simply stated, a Aashto executive director Francis B. Francois explained in healthy economy depends on a healtby constructionindustry. that news release, "The Federal Highway Administration But America's construction industry is not healthy--despite estimates that $45.7 billion is needed annually from all levels some recent indicators suggesting that some segments of of governmentsim ply to maintain the current system of high the economy may be improving." The AGe noted that the ways and bridges. In order to improve the system, an esti construction industry has lost 781 ,qoojobs since the begin mated $74.9 billion is needed. Yet in 1991, our federal, state, ning of 1990, and suffers from an u�employment rate that is and local governmentscombined only invested $36.2 billion. twice the national average. Moreov�r, that portionof Gross "For transit, the situation is similar. The Federal Transit Domestic Product accounted for by new construction has Administration estimates that an annual expenditure of $7.5 declined for every year since 1985, and is now at the lowest billion is needed for capital investments. The ISTEA [Inter percentage of GDP in more than 30 years. modal Surface Transportation Efficiency Act, passed in "The severely depressed state of the construction indus 1992] would have provided $5.2 billion, but the Congress try," the AGC stated, "is the result of 1) poorprivate market provided only $3.8 billion." conditions; and 2) the failure of goyernment at all levels to provide adequate investment in the nation's public infrastruc $20 billion wouldn't make a dent ture .. .. What Muri and Francois are demonstrating with clear "Adequate investment in public infrastructure is vital and simple numbers-put out by the government itself-is for providing the underpinning that is essential for a that just one type of physical infrastructure, namely high productive and competitive U.S. economy. Unfortunately, ways-never mind the other types, such as waterways, ports, investment in physical infrastructUre, as a percentage of railroads, and urban mass transit systems, water and sanita GNP, has declined over the past 20 years in the United tion systems, airports, electric generation and distribution States. Today, as a nation, we linvest a much smaller systems--could easily consume the entirety of Clinton's percentage of our income in infra$tructure than all of our meager $20 billion increase in spending on infrastructure. major global competitors." The same point was forcefully made by the U.S. Confer Directly addressing Clinton's, professed concern for ence of Mayors last spring, with the release of a voluminous solving the long-term problems ubderlying the economic report listing 7,252 "ready to go" public works projects in decline of the country, the AG� stated, "This failure 506 cities that would create 418,415 jobs this year, if only to adequately upgrade, repair, and expand the nation's funds were forthcoming. The Conference of Mayors report infrastructure over the past 20 y� was a major policy was in response to a request by members of the U.S. Senate mistake and a prime contributing factor to the nation's in January for a list of public works projects that could be current economic woes." initiated immediately, but which lack funding. Citing the finding of Aashto and the U.S. Conference The Dec. 8 report released by Aashto is similar. In re of Mayors, the AGC stated, in !bold type, "More than sponse to a request by committee leaders of Congress-and enough idle capacity and manpowtr currently exists within members of Clinton's transition team-Aashto surveyed the the construction industry to im�ediately take on this highway authorities of all 50 states, plus the District of Co increased workload without any adverse economic con- lumbia, and found that "if the highway program is fully squences." , funded for FY 1994 at the $20.469 billion level set in the In fact, according to the American Public Transit Associ v ISTEA, all of the responding 50 states could fully obligate ation, 6,000 jobs are created by e ery $100million of new the funds." Moreover, "States also have the capacity, collec construction or rehabilitation of urban mass transit systems. tively, to obligate at least $8.5 billion in federal-aid highway The American Road and Tranportation Builders Association funds during FY 1993, beyond the $18 billion approved by estimates that an extra $6 billion spent on new highway Congress. That is $6 billion over the amount that would be programs would create 246,000jObs . available if the ISTEA authorizations were fully funded .. .. But with such Wall Street luminaries in the Clinton If an expanded federal-aid highway program were continued constellation as Robert E. Rubi�o-chairman of the last through fiscal year 1996, the large majority of states (39) remaining privately held major inlvestment bank Goldman estimate that they could have projects to let, with a total Sachs, where even the junior partners reportedly earned value of $22.8 billion above the amounts available under the more than $1 million each last y,ar-and Roger Altman, ISTEA." vice-chairman of the secretive iJllvestment boutique The Blackstone Group, it's no wonder that Clinton is already Construction industry is sick making noises that he is more worried about reducing the Aashto was not alone in its rearguard action against Clin deficitthan about repairing three d�ades of neglect of U. s. ton's retreat. In a Dec. 15 news release, the Associated Gen- physical infrastructure. EIR January 8, 1993 Economics 21 by Rainer Apel Report from Bonn Blue overalls, not blue helmets ago, on a comparatively small scale, Germany needs a "Peace Corps" fo r development and can be done in any other emergency reconstruction missions in the Third World. zone in the i developing sector, or in the war-striqken Balkans. The firstphase of the creation of a German Peace Corps would be orient ed toward relief missions, carriedout according to a map of those regions of n Sunday, Dec. 20, half a million 1990 by Jurgen Warnke, then minister the Third World that are most exposed GermansO of all ages took to the streets of Third World affairs. He said that to disasters and epidemics: Black Af protesting the recent racist terrorist at after theend of the Cold War, the unit rica as a whole, most of Ibero tacks against refugee hostels and for ed Germany should become a "big America, Central America, large eigners in the country. The demon power for peace," a state that played parts of Asia, large parts ofthe Middle strators carried lighted candles-a a leading role in Third World develop East, and the territory of former Yu symbol of non-violent action that was ment. Wamke proposed the creation goslavia aft�rtwo years of war. used effectively during the events of a Peace Corps separate from the The second phase, to begin al leading up to the fall of the Berlin Armed Forces, which would draw on ready during the implementation of Wall. the desire of the youth to help and the first phase, would envisage long This was the first timethat Germa build, rather than to shoot and kill. term development projects as a means ny had witnessed non-violent mass The Peace Corps would operate of preventing the outbreak of disaster protests of such a scale since the pre like a rapid intervention force, draw before the crisisesc alated into the col war Persian Gulf crisis of late 1991, ing on idle transport capacities and lapse of the basic civilian instrastruc when several hundred thousand materiel of the German Armed Forc ture, into cohflictand war. youths took to the streets, protesting es, operating like the military but The trarasport aspect is crucial. against the imminent danger of war. without firearms. The forces would Mobile bridges and some air transport The candlelight rallies, human not have blue helmets, but blue over capacities are there already: Germany chains, vigils, and other forms of pro alls, and would be equipped with por inherited eqgineering materiel from test represent a light of hope that the table energy-generators and water the abandoqed East German Armed German population may change the processing kits, fieldhospita ls, kitch Forces, witQ the unification ofthe two style of the nation's politics so that it ens, and the like. German sta1les in October 1990, and can make a unique contribution to the The Peace Corps would use Army more of this special equipment can be creation of a world whose affairs are engineering methods, where they produced. ruled by the principle of non-violence. have proven to be efficient. There is a The Pea�e Corps would also need One of the new institutions that recent example of how this could a contingent of specialists in the con is now under discussion, which could work. Two years ago, shortly before struction of homes, highways, and further this goal, is a national Peace Christmas 1990, a team of German railroads, of systems of fresh water Corps. It could, as is currently being Army pioneers completed the con supply and ' efficient power gener discussed in Germany around the in struction of a hospital from prefabri ation. tention to send Army non-combat cated Army materiel in the city of By 1996, Germany intends to units to Somalia for irrigation, trans Rudbar, in the middle of the Iranian have a reduced standing Army of portation, and reconstruction proj Elburz Mountains. The region had 370,000 me;n and women, some of ects, be deployed in emergency situa been turned into a wasteland by a whom will 1:>e assigned to "blue hel tions in the developing sector. This heavy earthquake several months be met" missions of peacemaking and would be a quasi-civilian mission of fore . No more than eight German peacekeeping under the auspices of special sections of the Armed Forces, Army pioneers and 30 Iranian work the United Nations. What Germany operating through an existing military ers, who received instruction on the should contributebeyond that, are the command structure. site, built the modem hospital with same numberof men and women that A proposal for the conversion of 2,100 square meters of medical facili can be deplioyed in "blue overalls" Army units into task forces for relief ties, in no more than 14 weeks. missions oIf the type described missions was first made in October What worked in Rudbar two years above. 22 Economics EIR January 8, 1993 Agriculture by Nigel M. Gleeson Australian farmers fight back government support for drought The cartels which are moving to dispossess fa mily fa rms in stricken farmer!> amounted to only $9.5 million, which was used either Australia, now have to reckon with an an international coalition. to destroy stock, or else went directly to the banks in the form of debt repay ments. "But never mind, this will all be turned around with free trade," ac cording to the government. This, de t 5:00 a.m. on Nov. 4 at Mount Julie Warnerhad gone on a live radio spite the fact that Australia's dollar AMorris, a central Queensland cattle show to denounce the assault on farm reached a new five-year low in No and sheep station in northeasternAus ers everywhere, and to rally people vember of 67.5'¢ to the U.S. dollar, tralia, Elders Pastoral, a large rural to fighttogether . She began receiving and its foreign �bt rose dramatically. based cartel company, moved their phone calls from all across Australia. With only 17 mjillion people, and the trucks onto the property of Adrian and Julie Warner stressed that while second-largest c1ebtin the world, Aus Julie Warner and removed all their she and Adrian had been hit by this tralia "enjoys" the highest per capita livestock. The pre-dawn sweep was seizure of stock, they are both "look debt in the world. the followup to an interest rate hike ing at the fight on a much broader Australia ahteady has a virtual free which had raised the Warners' debt scale ....One has to fight on a na trade system, which has destroyed the from A$85 ,000 to A$1 00,000 tional and global basis if you are going economy. Under this type of trade (US$57,000 to US$67 ,000). to win .... You can't get bogged practice, for example, the private The seizure took place under false down with your own problems, no slaughterhouses in Queensland which pretenses, and came out of the blue matter how bad they might be." have been shipping beef halfway about two weeks ahead of a court date Among the immediate causes of across the PacificOcean , are now be scheduled to settle the farm debt issue the farm crisis in Australia are the near ing told by the Bush administration on Nov. 18. Since then, the Warners total failure of wheat crops in the east that the United States doesn't want have lost the courtcase , and the banks ernstat es, and a continued depression their produce , anymore-Australia now have official custody of the in the wool market due to a govern can keep it. However, the latest offer property. ment policy of high interest rates, re from U.S. free trade food brokers is In many respects, the Warners' gardless of cost. In addition, there are that the United States will think about case is not unusual. Thousands of new restrictive environmentalist laws. buying more Australian beef-if the Australian farmers are burdened by Last year, sheep prices went price is dropped 25%! impossible debt, and cartel food com through the floor, and farmers were There is a prediction of an 80% panies, insurance companies, banks, advertising thousands of sheep to give drop in sugar pIlicesin the near future. and other entities are moving to dis away. The federal government de Sugar prices arc:currently below $135 possess them, making way for vast creed a "sheep kill"-a scheme a ton, which doesn't even cover the collective, factory farms. The Bureau whereby they paid farmers 81¢ a head cost of producdon. of Agricultural Economics admits to shoot their sheep, rather than send Orange fannersin Mildura, Victo openly that the average farm income them to such countries as Ethiopia and ria are also saying that their industry is negative. At present, the average Somalia. At the same time, they paid will cease to ex�st if the flood of cheap Australian farm posts a $30,000 nega out $1.1 billion in overseas aid! imports from Birazilis not stemmed. tive annual income. In addition, in some places the av It is in this context of free trade But the Warners stand out in one erage loss of stock due to drought that the big insurance companies are respect. They are leaders in a national alone in the past year has been esti seizing prime land in conjunction with drive to restore the Australian econo mated at 40%. Within the span of the bank foreclosures on farmers. The re my and to restore hope and develop last two years, Australia has seen the ality ofthe crisis situation is highlight ment worldwide. Before the raid on destruction of an estimated 40 million ed by statistics, showing that 10 to 12 their property, the Wamers had hosted sheep because of immoral govern years ago Aust�alia had 150,000 farm a farm organizing meeting in Charle ment policies and general collapse. ers, whereas if now has fewer than ville. The very day of the Elders raid, During this time period, federal 50,000 produqng farms left. EIR January 8, 1993 Economics 23 ? Business Briefs Trade tion of the poor. the worrisomezones of mis ConferencJ on AIDS in Africa, leaving Afri ery. and the discriminate social relationsin the cans almost alone "in the face of an epidemic Swiss vote down joining world" have to stop. "I would like to call atten which will .rfect morethan 15 million persons European Economic Area tion to the threat to peace posed by poverty , on this content by the end of the century," the especially when it becomes destitution .... Dec . 12 Frenchdaily Liberationreported from These situations constitute a grave affront to Yaounde, Cameroon, where the conference The citizens of Switzerland dealt the latest human dignity, and contribute to social insta took place. blow to Euro-federalist "free trade" schemes, bility. " Dr. Kapita, from Zaire, reported that, of when a majority of the country's 23 cantons all the conferencesso far held on AIDS in Afri voted on Dec . 6 not to join the European Eco ca, this one is the least attended by western nomic Area (EEA) , which has often been de expertssuc� as RobertGallo, Luc Montagnier, scribed as "the world's largest free-trade Russia and MyroniEssex (all of whom stayed away). zone ." Another unnamed Africandoctor said bitterly, The Swiss rejection of the EEA, following New state banking system "The West Js in Somalia, but not with us, to the Danes' rejection of Maastricht, was the combat the ivirus." second decisive shock in Europe to free trade needed, says Kulikov The coiference was co-sponsoredby the schemes, BBC reported. The Swiss "no" also World HealthOrganization, and top AIDS-ex underminesBritish Prime Minister John Ma-' Instead ofinternationalMonetary Fund (IMF) perts from ;the WHO were there, including jor's scheme for the "enlargement" of the Eu guidelines, Russianeeds a sovereign monetary Drs . Mich�l Merson and Jonathon Mann. ropean Community, which Major, in his ca policy and a new centralized state banking sys Mann decrfes the lack of funding for AIDS pacity as prime minister of the country that tem, Valerian Kulikov. deputy directorof the programsin Africa,and warned thata growing currently occupies the EC presidency. was Russian Central Bank, told an industrialists' "complacerpcy" has set in about the AIDS hoping to make a central part of the mid-De council, Izvestia reported on Dec . 21. problem siqcethe beginningof the 1990s. This cember Edinburgh EC heads of state summit. Advocating a split exchange rate mecha is intolerabk, since "the right tohealth is a fun The Euro-federaIist mob is in a frenzy nism for the ruble and the implementation of a damental ri�ht," he said. about the Swiss result, with EC ExternalRela new independentRussian currencyin the near tions Commissioner Frans Andriessen of Hol future, Kulikov said that Russia should recre land expressing his dismay that "the Swiss ate a system of large statebanks like those that people have opted for isolation. " existed in the former U. S.S. R.-the Industrial Health Construction Bank, the Agricultural Bank, and others of that type . Commercial banks that Drug-resistant TB have sprung up like mushrooms under the Debt Gaidar liberalization policy, and upon the ad strains i worry doctors vice of western experts, are not capable of Repayment obstacle fundingthe needs of Russian production, Kuli "We have e,ded up with adisease that we don't an kov stated. know how co prevent, and we arenot surewe to peace, says cardinal Kulikov harshly criticized the relationship can cure '' r. Thomas Frieden, of the New ' between Russian banks and the IMF, and the York City ureau of Tuberculosis Control, One of the main obstacles against an improve previous governmentfor being a transmission told the De . 10 Scotch daily The Scotsmanon ment ofliving conditions in the Third World is belt for monetarist policies. "Unfortunately, the new tuberculosisoutbreak. The amount of its massive foreign debt, and creditors' insis everything was decided by the IMF instead of drug-resis�tJ TB is astounding and the treat tence that the debt be paid is undermining the the Central Bank, and we had to act like robots, ment is incrhIibly complicated, Frieden said. peace and may provoke new conflicts, de obediently following the goals set for us," he Those who work with suffererssay , with great said. clared Roger Cardinal Etchegaray on Dec. II seriousness\ "This makes treating HIV look on behalf of Pope John Paul II,as part of the easy," he �rted. papal message for World Peace Day on Jan. l. In New1 York City, studies now suggest "Perhaps the time has come to reexamine that seven o",tof ten peopleare newly infected the problemof debt and to give it the priority AIDS with TB have strains which can fight offmost it deserves. The conditions for total or partial of the drugs'availableI • to treatthem. Five years repayment need to bereviewed ," the cardinal Researchers ignore ago, these strams wereregarded as f reaks, of said. "Is it not the poorest groups which often no great mddical significance, and limited to have to bear the major burden of repayment?" disease spread in Africa those who ilad already misbehaved while be Poverty and underdevelopment are un ing treatedfO rTB. Now we know they arecon dermining peace and can lead to the outbreak American and EuropeanAIDS researchersdid tagious and dangerous. "Most people with of tensions and war. Therefore , "the exploita- not bother to attend the Seventh International multi-resis�tTB got it frombad luck," Frie- 24 Economics EIR January 8, 1993 • THE NORTH AMERICAN Free Trade Agreement was signed on Dec. 17 in c�emonies in the United States, Canada, and Mexico. A coali den said, "not becausethey were bad in taking fundto the EC's EuropeanInvestment Bank of tion of labor, environmental, and po their medicines." roughly $6 .4 billion, plus another loan guaran litical organizations charge that it The greatest risk for TB is among the poor tee fund of$2.5 billion. The two funds are ear will cause "devastating" job losses, est: peoplealready infected with the HIV virus marked for identified infrastructure projects, depress wage and displace millions which causes AIDS, junkies, the homeless, dubbed "missing links," and are intended to be f' of farmers in ll three countries. and new immigrants. Medicine for these peo a catalyst, together with local government and r ple hardly exists given the present crowding private industry investment, in large European KAZAKlISTAN and Russia in hospital emergency rooms. "All we need is infrastructure projects. • reached an epergy cartel agreement another epidemic," wamed Dr. Lee Reich Christophersen said the funds ear are in mid-Decep1ber which will pool man, of the American Lung Association, and it marked for high-speed rail and energy infra both republics' resources, invest will become impossible to staffcity hospitals. structure, and highway links across Europe. ments, pricing policies, and related Those hospitals, which are most likely to see He added, "Until now most European infra measures into a coordinated strategy TB patients , are the ones least likely to be able structure has focused on North-South connec in talks with other states, especially to afford the precautions to stop TB spread for tions. Now we must have the emphasis on westerncartcls and clients. lack of money. In New York hospitals, some building West-East European infrastructure TB patients were found wandering the halls, links." URUGUAYANS, by 69.3% to sitting in communal lounges with no mask, • 30.7%, voted against a law permit even though they have active TB . ting privatization, stopping the pro Since TB is contagious and can be passed cess of privatizing the national tele in an ordinary social encounter, The Scotsmnn Aerospace phone company and national questioned what to do with the even more dan railways. Pr�sident Alberto Lacalle gerous patients, those who have previously U.s. flying mach 8 admitted to the Buenos Aires daily failed to finish their course of treatmentagain aircraft since 1985 Clarfn that the vote was "punish and again and are now going around, spread ment" for hi$ policies. ing drug-resistant TB . The U . S. Air Force has beenflying since 1985 a hypersonicjet aircraft capable of achieving • CHINA will have 70 million eight times the speed of sound, according to bachelors by. the end of this century evidence presented in an upcoming article in if families dO not start having more Infrastructure Jane's MilitaryReview, the Wall Street Jour girl babies, 'the Chinese Farmer's nal reported in December. Daily warned. Already, 51.45% of EC gives high-speed Among the evidence cited is a 1989 China's 1.1 billion people are men, sighting by a trained aircraftobserver working and the per<1entage of males is in rail project a priority on an oil platform in the North Sea of a 70° creasing in ypunger age groups. delta-shaped aircraft being escorted by an F- High-speed rail infrastructure between eastern 16; repeated reportsby people livingin the area • MONG<)LIA'S attempt to build and western Europe was officiallydeclared a of Beale Air Force Base, California(where the a now nearly:completed 100,000ton priority of the 12 member states of the Europe Mach 3 SR-7 1 Blackbird was based) of earth capacity ste� mill paid for by a four an Community in the Dec. 12-13 Edinburgh tremors thatgeophysicists can findno explana year, $65 mi,lion loan from Japan, is summit. The plan marks the first time in the tion for other than an aircraftoperating at hy being oppo�d by the International recentglobal economic crisis that a multi-gov personic speeds; the highly unusual passivity Monetary F�nd. "Without it, [Mon ernment commitment to significant modem displayed by the Air Force when the SR-7 1 golia] has nd possibilities, and has to rail and energy infrastructure has been ap was taken out of service in 1989; and the im be dependent on others," said Sanjaa proved. Observers noted that the size of the probability that the United States has fielded giyn Ganjuurjav, director of the Dar plan is less important than the opening of the the technical breakthroughs needed to allow khan Mini Steel Mill. debate, in which the "Productive Triangle" reconnaisance satellites to take pictures as proposalfor massive investments in the Paris, good as those that can be obtained by an air • POLAND is heading into a gen Berlin, Vienna area put forward by U.S. econ craft. eral strike Wave, after government Jane's omist Lyndon LaRouche to lead a world eco surmises that only a handful of such labor talks broke off on Dec. 21. It is nomic recovery, can become a central focus. aircraft have been built, at a cost of about$1 expected thatbrown-coal miners will Much to the discornfort ofBritish Chancel billion each; and that the cost of such a program join the ongoing strike of 320,000 lor Norman Lamont, the heads of state ap closely matches unaccounted-for funds be coal miners� and that the Silesian proved a proposal presented by Danish EC lieved to have been spent by Lockheed's ad Railway wotkers union, which con Commissioner for Economic AffairsHenning vanced aircraft development facility, the se trols 70% df the national rail grid, Christophersen. The plan, ultimately cutdown cretive "Skunk Works," where the U-2 and the will follow suit. in size, gives a temporary low-interest loan SR-71 were developed and built. EIR January 8, 1993 Economics 25 �TIillStrategic Studies Qin Shi-huang, Klein, and the destruction of China by Michael O. Billington Between Oct. 2 and 6, the governmentof the People's Repub he killed more "counter-revolutionary intellectuals" than his lic of China (P.R.C.) initiated a new annual festival, dedicat mentor Qin Shi-huang, a fact de+ply ingrained in the memory ed to the most infamous tyrant of Chinese history, Qin Shi of the repressed intellectuals in today's China. huang. Qin, the "Legalist" emperor from the third century B.C., built the Great Wall of China with slaves impressed A 'Greater China' alliance from among the poverty-stricken population, burned the clas The Xinhua news agencY'$ announcement of the Qin sical Confucian texts, and burned alive the intellectual elite festival also provided insight into the political and economic and Confucian scholar-officialsof China. A few weeks later potential for a "Greater China" alliance among Hong Kong, on Nov. 10, the government strengthened its official ties to Taiwan, Singapore, and the P.R.C. which has been the sub British-trained, American Nobel Prize economist Lawrence ject of several recent studies by Anglo-American and Chinese Klein, who has been instrumental for over 10 years in the think-tanks. Said Xinhua: "The restivalaims to reinforce the "colonization" of the Chinese economy and maintaining in unity of all the Chinese people !in the world, and to further power the butchers of Tiananmen Square. develop economic and cultural ; exchanges with the outside The two developments are an expression of the major world." Unity based on such a .yrannical, "Legalist" model danger facing China today. The Qin Shi-huang celebration of political economy is also t�e approach favored by the is equivalent to holding a festival in the West in honor of British, since it parallels their o�n Adam Smith "free trade" the Roman Emperor Caligula (A.D. 12-41), infamous for tradition of unfettered freedom tor international financial in passing dozens of despotic laws and for his senseless cruelty. terests coupled with dictatorial dontrol over subject peoples. Caligula said, for example, that he regretted that the Roman EIR has regularly reported qn the impending internaldi people did not have a single neck, to be severed with one saster being created by the "free market" reforms under Deng blow. It is a gruesome premonition of the direction of policy Xiaoping and his friends in the West led by Henry Kissinger. in the P.R.C. The flow of cheap labor into the coastal zones depends on On the one hand, it is a confirmation of the regime's the continually expanding "blind flow" of over 100 million "Legalist" intention to maintain an iron-fist dictatorship over desperate, unemployed rural workers. As the P.R.C. regime the population, crushing any political or intellectual opposi continues to ignore the collapsipg infrastructure of the vast tion. Also, however, this will remind the Chinese of the last interior, the remnants of the old industrial structure have years of Mao Zedong's Cultural Revolution, when Mao and no chance of survival, let alone expansion, even with state the Gang of Four launched a brutal assault against any linger support to prop them up. Now, h�wever, government support ing morality in the terrorized population, with an "anti-Con is being removed under the slogan of "free enterprise," and fucius" campaign, explicitly honoring Qin Shi-huang as the the skilled work force is being dpmped into the "blind flow" greatest figureof Chinese history, while denouncing the hu from the countryside. manist Confucius tradition entirely. Mao even bragged that The anticipated economic explosion was acknowledged 26 Strategic Studies EIR January 8, 1993 in a Nov. 15 article in the People's Daily, which quoted offi cial figures showing that, while certain manufacturing indus tries are being stoked up by enormous government credits and subsidies under Deng's hyper-growth policy, the output is primarily oflow quality and unmarketable. The unsold inven tory of industrial goods grew to 135 billion yuan ($25 billion), a shocking 20% increase between January and October. The People's Daily hinted at the disastrous state of infra structure: 'The growth of investment in fixed assets is re la tively large , but it is not being directed toward the good of the production system. Investment in duplicating low-quality production and common processing industries is reap pearing, while both bank credit and the pressure to put more money into circulation is growing." Bank loans in the first half of 1992 were twice the officialtarg et, at 120 billion yuan ($22 billion). Much of this credit is feeding the speculative bubble in the new stock markets and in real estate in the free trade zones. Looting the labor force Lawrence Klein. pictured here on a vi Two thousand years ago, under Qin Shi-huang, the un been hired as an economic adviser by employed were considered guilty of being poor and were China. impressed into slave-labor brigades to build the Great Wall. Unknown numbers died in the process. Thus far, the Chinese Communist Party (CP) policy has been to channel the "redun als by Britain's colonial governor Hong Kong, Christopher dant" labor to foreign investors at slave-labor wages in the Patten, to slightly enlarge "democratic" rights in the electoral free trade zones, providing primarily British and American process before the 1997 return of the colony to China. While interests a source of short-term returns (while their own econ it is clear that Patten's proposals ar� a calculated provocation omies back home are collapsing). (Britain has , afteral l, ruled Hong Kong as a total dictatorship What happens to China when the current binge of misdi under the British drug banks for 0 er 150 years), the conflict rected credit extension and speculation ends?,The CP is aware should not obscure the fact that the Hong Kong (British) free that the emerging crisis will provoke angry and desperate re trade model of economy is, in fact, being implemented in sistance from much broader layers of the population than oc stages throughout the mainland. The 1997 transfer of power curred during the student-led resistance of 1989. Reuters over Hong Kong may be more ccurately described as a Beijing correspondent David Schlesinger recently obtained a "merger," with the British banks b sed in Hong Kong gaining copy of an internal document circulated before the 14th CP increasing power over the Chinese economy. Congress held in October. The document said in part: "Securi Perhaps the clearest sign that this process will continue ty work should be strengthened at factories, mines, oil fields, unabated is the announcement 0 Nov. IO that the P.R.C. and other large and medium enterprises and key state projects. State Planning Commission, whioh governs China's econo ...The legal authorities must strongly support enterprises as my, has now formally hired Unive sity of Pennsylvania econ they deepen their reforms and change the structure of their omist Lawrence Klein as an "adVIser" to "help pilot the na management ...[a nd] be alert to the appearance of factors tion's economic reforms," as the official People's Daily said. which could lead to instability , and prevent people with ulteri Klein, an authority on "econometrics," the computer analysis or motives from stirring up workers to riot. ...We must of economic data, and winner of the 1980 Nobel Prize for swiftly investigate and deal severely with any cases of revenge economics, was guest of honor at a ceremony on Nov. 9 held against, or harm to , a factory director or manager, while enter by the State Planning Commission, and was dubbed by the prises are deepening their reforms." People's Daily as "an old friend of China." I "Deepening reform" is a euphemism for "shock therapy" Klein, a former member ofthe Communist Party U.S.A. , closings or cutbacks in state industries. The school campuses was trained in economics in the � 940s by Prof. Joan Rob were also targeted for even tighter repression of dissent. inson, head of the Communist Party cell at England's Cam bridge University, and in fact h has advised the Chinese Beijing appoints Lawrence Klein reformers for more than 10 years to maintain the iron-fist The press is currently full of reports and analysis of the dictatorship at all costs . In a recdnt interview, he endorsed l confrontation between London and Beijing over the propos- Kissinger's praise for the brutal c ackdown in 1989. EIR January 8, 1993 Strategic Studies 27 Klein told a journalist in early December that he did not supportthe students in Tiananmen Square, because"the students Interview: Lawren e Klein didn't know what they wereasking for. You can't have a country � runby young kids!" he said. Granting political freedomto China would be"very disruptive" to the socialisteconomy . The Tian anmen Squaremovement "was not the movement that was need China 'economic czar': ed, or desired, at that time," he said, and when Kissinger said dissent could not be tolerated, "I agree with that. My friends in China, with whom I associate most closely . . . said that we Don't devel quickly couldnot tolerate political instability." qp Klein's economic advice is just as brutal. He praises Dr. Lawrence Klein, longtime Idirector of Wharton Econo himself as the architect of China's "step-by-step reform pro metric Forecasting at the Wha�ton School of the University cess," which he and other Anglo-American economists op of Pennsylvania and now Professor of Economics at the Uni pose to the International Monetary Fund "shock therapy" versityof Pennsylvania, was offi cially hired on Nov. 10 as which has destroyed most of the factories and brought chaos chief economic adviser to the SlatePlann ing Commission of to eastern Europe. What Klein means by "step-by-step," the People's Republic of China. The State Planning Commis however, is to "stay backwards," and in fact "stay commu sion runs China's economy. nist." Klein told the interviewer that he is advising the Chi In an interview on Dec. 4, KLeintold a freelance journal nese "not to go to capitalism" but to stay with "socialist ist that he has infact been "actihg economic czar" for China planning . . . trying to modernize thesocialist economy. . . . since 1979, and that his Chines'estudents of the early 1980s That's a legitimate goal." He is advising China, he said, to set up the information division iof the State Planning Com stay with "reformed communism." mission. Klein brags that he advised against the initial 1979-8 1 efforts, at the beginning of the reform, to launch great proj Q: There is a line in the U . S. prttssthat the easternEuropeans ects such as nuclear power plant electrification and modem, used "shock therapy" and tried lo do too much too fast, but high-technology infrastructure development. Building Japa the Chinese are doing it differently. Would you advise them nese-style high-speed Bullet trains to unify the nation would to do it differently? be "too much of a luxury," Klein said. China should stick Klein: Yes, that's a perceptiVe! point of view, that China's with upgrading their coal locomotives to U.S. 1960s-level done it right and the easternEuropean countries have done it electrical and diesel locomotives, "to have just the next stage, wrong-that's my opinion, andI've had a lot of discussions to go step by step." China should absolutely "not build nucle with Chinese officials on that i�sue. Just a year ago we had ar plants," he said, but stick with the older "kind of power meetings in Stockholm, the jubilee meetings for all living plants which were built in the '60s" in the West. laureates of the Nobel Prize, arid one session I participated This, he claimed, is because China's engineers are "not in was entitled "The Demise of Socialist Planning." My par as well qualified"as the French and Japanese, who have gone ticipation in that panel was to �ay, "There is still socialist nuclear. "Nuclear power is a very expensive technology, if planning and over a billion peop�e are involved and it's trying you do it right with the right safeguards," he said. It's "too to modernize." ...Tha t's where socialist planning is still expensive for China." very much alive and they're trying to modernizethe socialist Klein's economics are just another variety of the British economy. malthusian anti-technology and anti-infrastructure policy to maintain cheap labor; it is identical to "shock therapy." The Q: And that's good? results are the same: While a vast unemployed work force is Klein: They are doing it well; I think it is possible to do that. made available to western investors desperate for quick Time magazine said it's an oxytn0ron, "market socialism," profitsfrom a cheap labor source to prop up the depression but they're morons, if this is an 28 Strategic Studies EIR January 8, 1993 Q: What institutions were you working with? should go step by step. And one of the steps along the way Klein: I led a National Academy of Science and an Amer will be political reform. cian Social Science Research Council team of economists; our counterpart was the Chinese Academy of Social Scienc Q: Are you saying that political freedom is economically es. Now there's been a further development where, on the disruptive? ! State Planning Committee, there's a State Information Cen Klein: If you do it all at once when t�ere hasn't been political ter, where economic planning has been centered. I've been freedom, it can be very disruptive. at the State Information Center many times over the past several years since it was created in the mid- 1980s, so the Q: Theoretically, if we could, witHout bloodshed, bring to appointment was formalizing what I've already been doing power the Student Democracy Movement which sat in Tian for a good many years. anmen Square calling for freedom \ you would not be for The people who originally worked with me were all from that? the Chinese Academy of Sciences. At some point some of Klein: No. The students didn't know what they were asking them stayed there, and others went and set up the State Infor for. You can't have a country run by young kids! The Chinese mation Center. And I began working with that. [leadership] attitude was, that they went throughthe Cultural I've always worked closely with the Ford Foundation in Revolution, when the young people ran amok, and it was a China, which has always heavily supported teaching modem disastrous period in their lives and they don't want to repeat economics in China. And I've been on the exec uti ve commit it. ...The reason the Chinese didn't want to give in to the tee for that forthe Ford Foundation. students was that they didn't want td returnto the days of the Cultural Revolution. . ..The students were calling for a Q: Regarding Hong Kong, the Chinese say they will have government that was a total turnoverof what existed, and it "one country, two systems." But doesn't that really mean was like the shock therapy treatment, of doing it in the politi that Hong Kong's economy will take over mainland China? cal sphere before the economy had 1l>eenmade ready for it. Can you really waterdown communism? But that was not the movementi that was needed, or de Klein: It's a reformed communism. I was at a meeting in sired, at that time ....The logic ohhe students was not the September sponsored by the U.N. Development Program in logic for the proper economic development of China. Bucharest, and I gave a paper, entitled "The Mixed Econo my," saying that "when the [Asian communist] economies Q: In other words, you agree with Dr. Kissinger's statement reform, they're not going to go to the epitome of capitalism that the Chinese could not tolerate this uproar? like Hong Kong, or to the epitome of centralized planning Klein: That's right. I didn't read what Kissinger said, but if which was the old Soviet Union. They're going to end up that's what he said, I agree with that. ...But my friends in somewhere in-between, with features of state intervention China with whom I associate most closely said that we could and features of market clearing." not tolerate political instability. Some who thought you had to go one way , or another, said that you had to do the shock therapy, introducing capital Q: How do you "free up" agriculture, for example? ism right away, privatize right away. But I said, "No, you Klein: Some 80% of the people ate rural-based ....I ad- first control inflation, get the economy growing on a stable vised them to let people "have" their own land ....Now it path, get things in order, then start introducing prices, free could be only on a leasehold basis br on an ownership basis up the agricultural sector, free up small enterprise, then grad (that's just a technical issue), but at least be allowed to work ually transform." the land and to get the crops in. Now, that has been more or less the path of China, and [it has been] very successful. My argument is that it's a better Q: But they haven't given it to th�m, you say, just allowed path to establish economic democracy first, get the economy them to work it? on a sound and growing basis, and then gradually introduce Klein: I don't think in a technical legal sense that they have political liberalization. property rights on the land. But they. have rights to use the land. . . . Q: On the political liberalization: Why wait? Why not give The next part was to have smaUienterprise freed up. I told them democracy? them, "It's too big ajob, too compJlicated, to plan the minute Klein: Because they're not prepared to govern yet . That details of every company." I said that it's better to run these takestime . Look at the Soviet case, glasnost went ahead full things on a small scale. speed, everybody stood on street comers discussing what should be done , and nothing got done. You cannot disrupt Q: How could a Chinese buy a small factory? an economy overnight and change everything, and throw Klein: I just advised them to fret it up, the techniques of people out of work and stop the production process. You doing it were all their own. I did s¢e a lot of foreigners, that EIR January 8, 1993 Strategic Studies 29 is, Chinese-Americans, who had a fair amount of money, Q: Some people think that if you put in your highest technol who came in and opened it up--foreign capital. ogy first, you get a bigger overall rise in productivity for the buck, so it's not a luxury. Y OIJ disagree with that? Q: So, the state didn't tum things over; rather, people came Klein: Yes, as a general prmciple I would disagree with in with foreign capital and bought them? that. In scientificmatt ers, highrtech is being introduced. Say, Klein: To some extent, and now they're coming in from in software; it's okay for com.puter software. But in very Hong Kong and Taiwan .... expensive hardware like the Bullet train, not right away. Q: Isn't it true that all this foreign money is going in there Q: For the other infrastructur�, China can't afford that? because this became the cheapest labor on the block, that Klein: They're doing some n",clear, but that has problems. these people had never worked for market-level wages On the whole, I don't say they should go back to the 1930s before? style, but they should go to the kind of power plants which Klein: That's right, at least not for variable wages. They got were built in the 1960s and '70s. a wage, but it was fixed. Q: They should not build nuclear power plants? Q: Wasn't one of the reasons you didn't want to have politi Klein: No, because that's n Q: The students in Tiananmen Square might not have? Profile: Lawrence Klein Klein: Well, who knows what might have come of that. That's one reason a lot of foreign investors are very wary Lawrence Klein began his c 30 Strategic Studies EIR January 8, 1993 right safeguards-too expensive for China. they're accumulating is high-grade plutonium and other nu The Chinese have the brainpower, but they don't have clear materials for a weapons plant. . . . Iraq said that they the training. It's the training that is needed. were just building a power plant. Q: But this is China, they can do what they like. Q: But I'm asking you as an economist: How we can get a Klein: They still need worldwide technology. . . . lot of cheap electricity in China very fast? Klein: And I say, you can't, er, ii's not going to be done Q: You mean they can't get the technology because foreign fast through nuclear. Not only the U.S. government, but any ers won't sell it to them? government that has all the know-how, they want to guard Klein: I don't know how the French are doing it, how they're against nuclear proliferation. safeguarding it. The French are not in there building nuclear plants for them. Q: The infrastructure seems to be going to go fairly slowly? Klein: It has gone slowly, but it's moving. Transportation Q: What about the United States? is better than it was. To give you a simple example, it was Klein: Well, we've given up on our own. I don'tthink we're almost impossible to make round-trip ticket reservations for doing it for anyone else. That may be on a prohibited list. airlines travel. Now that's possible ....Bi t by bit it comes in. In the hotels you can now make direct-dial overseas calls, Q: A power plant? you can have faxes come in. All these things are now possi Klein: No, the nuclear technology. ble. Year by year, some new item like this advances. That's what the country needs to do, is make steady advances, not Q: To run a power plant? to do it all at once. Klein: To build it, to build it safely. There are a lot of problems about accumulation of nuclear materials. Many Q: Slow, but steady? countries say they're just building a power plant, and what Klein: That's right. .. Both Sraffa and Robinson were then members of the Cam Driven out of Michigan for his communist affiliation bridge cell of the Communist Party of Great Britain. Kim in 1954, Klein went to England for advanced training at Philby (now a KGB general), Guy Burgess, and Donald the Oxford Institute of Statistics. Maclean, the intelligence-trained scions of British oli While he was out of the United States, Strategic garchs who "defected" to the Soviet Union in the early Bombing Survey personnel arranged a series of confer 1950s, belonged to the same CP cell. ences to transfer the next stage of �he Cambridge econo Klein enrolled in these networks in 1946, becoming a metric project to the United States. The leading institu member of the Communist Party U.S.A. Although Klein tions represented at these confeqmces during 1955-56 now says his CP membership was merely an "incident," were U.S. Air Force Intelligence, the RAND Corp., and he later acknowledged his intellectual debt to Robinson the Brookings Institution. and her colleague, the Polish economist Michael Kalecki. Klein returned to the United States in 1958 and was Shortly after his first econometrics work, Klein was placed in charge of the most advanced of the ongoing I brought into the National Bureau of Economic Research projects, that at Brookings. by NBER's founder, Wesley Mitchell, and was subse In 1963, the model was shifte�to the WhartonSc hool quently given a job working for Mitchell. Mitchell was at the University of Pennsylvania for commercialization. an early collaborator of the Fabian Society in England The reasons for choosing Wharton are not entirely known, who build up the economics faculty at the University of though the fact that Wharton was the base of operations Chicago. In the same postwar years that Mitchell took for Eric Trist, another of the senior British operatives Klein under his wing, he was training Milton Friedman of the Tavistock psychological warfare division, was an and the rest of what is today known as the "Chicago important factor. Wharton Econometric Forecasting As School." sociates was born. In 1950, Klein went to the Survey Research Center of In 1969, the special targeting OifMexico began. Klein, the University of Michigan, just formed by Kurt Lewin, who sells his Wharton models as "socially progressive" one of the directors of the British psychological warfare economics of a differentbrand from Friedmanite "shock division at the Tavistock Institute and a central figure in therapy," was later hired as an e�onomic adviser to the the Strategic Bombing Survey. Mexican government. EIR January 8, 1993 Strategic Studies 31 TIillFeature Anglo-Americans fostering Nazi revival in Gennany by Jeffrey Steinberg If 1990 was remembered as Germany's year of hope and opportunity, following the fall of the Berlin Wall and the collapse of the communist dictatorship in the East, 1992 will be remembered as the year of chaos land despair, when the streets of Germany were the scene of violent clashes betWleen left-wing and right-wing gangs, and foreigners were the targets of Nazi gangs. The news media in the United States, Britain and Israel have been running amok in criticizing Germany for the revival of Nazi violence in and against Germany. But this revival would not be occurring except for a sweeping economic and political destabilization of the Federal Republic by the same British, American (and, now, Israeli and Zionist lobby) factions, which earlier supported the rise of Adolf Hitler's Nazis to power in 1933. Then, as now, the Anglo-Americans' geopolitical game ruled out a strong and peaceful German republic as a threat to the British Empire and to Anglo-American imperial power. Thus Hitler's insane dictatorship was boosted into power and armed by the Montagu Norman clique, the Cliveden set, the Harrimans, Morgans, Rockefellers, du Ponts, Sulzbergers, and Warburgs. Today's Nazi revival and the threatened plunge into terror and counter-terror are a cynical antidote to the threat of German economic strength-strength which couJd indeed help make Europe or all of Eurasia a superpower uncontrollable by the Anglo-Americans. With the adjacent Balkan region in a state of civil war and genocide on a scale not seen since the close of World War II, and with the world economy already in the throes of a second Great Depression, the effort to throw Germany into chaos again by means of radical movements could trigger a new Thirty Years' War across Eurasia and beyond. The following report includes information gatherred by our bureau in Wiesba den, Germany, and a study by a Washington-based counterintelligence specialist who has reviewed archive files documenting the role of the Federal Bureau of Investigation (FBI) and the Anti-Defamation League of B'nai B'rith (ADL) in penetrating and taking over the Nazi milieu in the United States. The information 32 Feature EIR January 8, 1993 Wer ist das? The Anglo-Americans are propagating a Nazi revival in Germany, just as they did in the 1920s and 19305, features left-versus right, gang-versus-countergang violence. Left, a cartoon asks, "Who is this? " referring to a leftist beaten up other lejiists who mistook him for a Nazi because of hisshort haircut.Right, rightist graffitti urging that fo reigners be expelled, written by leftists urging that Nazis be expelled. is preliminary; we expect to expand it and make it more public. Groups like "Slayer," ," and "Napalm precise in the coming weeks and months. However, there is Death" appear in concert decked in Nazi attire . Their songs enough already in the public domain to conclude that Nazism call for violent attacks against , and in recent years, today , as earlier in this century, is not a home-made product, some of the most brutal attacks r nst foreign workers and but injected by Anglo-American interests into Germany. refugees have occurred immedi y after such concerts. Nazi computer games, although outlawed in Germany A counterculture project since 1988, also make up an important feature of the recruit There is no question that an ugly movement driven by a ment pitch for these neo-Nazi gangs. Such computer games xenophobic hatred of foreigners has been built among Ger as "Clean Germany ," "Anti-Turf Test," "Concentration man youth, particularly youth from the eastern zone who Camp Manager," and "Aryan Test ' circulate through a black have been hardest hit by the collapse of industry and skyrock market. Investigations by German security services indicate eting unemployment in the past year. This movement has that these computer games are being dumped on the German been further fueled by the flood ofimmi grants from the Bal market by British, Canadian, antl American distributors , kan war and the economic crises in the former communist some apparently working in leagu I with former East German states of Central Europe that have been ravaged by the Inter Stasi operators who traditionally ave run smuggling routes national Monetary Fund's "shock therapy" policies. through Central Europe into the eastern zone. r That movement is also a product of the drug-rock-sex Of the estimated 4,200hardcore �azis operating today in the counterculture which is spreading into Germany from its Federal Republic, according to the 1991 year-end report of the birthplaces in England and America, with the assistance of Federal Bureau for the Defense of the Constitution (Bundesamt such German-based "psychological warfare" outfits as the fUr Verfassungsschutz, BN), nearly all are skinheads-i.e., Frankfurt School for Social Research, a onetime arm of the products of this drug-rock countercblture experiment. Communist International ("Comintern") more recently ab But the role of foreign intelligel ce services in fueling this sorbed into the U.S. - and European-based Zionist lobby . crisis goes far beyond the atmospnerics of the violent, often Just as the radical left-wing anarchist milieu in Germany overtly satanic counterculture . It i! a matter of public record r and elsewhere is a product of the degenerate counterculture , in both Germany and the United States that for the past five so too is the neo-Nazi "skinhead" phenomenon . Among the years, several leading fi gures in the U.S.-based Ku Klux crucial "recruiters" to this burgeoning skinhead movement are Klan and other racist movements Ihave been making regular the growing number of "death rock bands," mostly from the trips to Germany, Austria, and ot ler countries in continental United States and England, that have toured the Federal Re- Europe , actively working to build up a violent underground EIR January 8, 1993 Feature 33 movement. In Berlin and several cities in the eastern zone Germany's industrial strength rather than its war machine. where police have recently arrestedNazi skinheads for car Former prime minister Margatlet Thatcher and her onetime . rying out arson attacks and beatings of foreigners, Confeder transportation secretary Nicholas Ridley assailed the reunifi ate flags and KKK literature from the United States has been cation of Germany following th¢ fall of the Berlin Wall in such found in their homes. alarmist terms, and their venom was matched by the London For every publicly documented instance of U.S.-based Times's Conor Cruise O'Brien on scores of occasions. KKK or Nazi activists transiting the Atlantic, there are doz German investigators have also assembled extensive evi ens of unpublicized instances of covert assistance, including dence that the November 1989 assassination of Deutsche paramilitary training, bulk distribution of Nazi propaganda, Bank President Alfred Herrhausen was carried out by "west and other technical assistance. ern intelligence services," probably led by British MI-5. This activity is not the result of a burgeoning Ku Klux Herrhausen, the leading economic adviser to Chancellor Hel Klan revival in the United States. All available evidence mut Kohl, had advocated a plan for the systematic economic suggests that these American circles have been so heavily integration of easternGermany based on an overall develop penetrated by the FBI, the Treasury Department's Bureau of ment and debt forgiveness scheme for the former communist Alcohol, Tobacco, and Firearms (BATF), and "deputized" states. Herrhausen' s proposals, partially paralleling the "Pro private groups like the ADL, that they have no significant ductive Triangle" plan put forward by American political organized existence outside of that controlled by these offi economist Lyndon LaRouche .a year earlier, would have cial and semi-officialagen cies. meant the successful buildup of the economy of the eastern As early as 1975, EIR was publishing eyewitness ac zone, and could have also laid theeconomic foundations for counts of Nazi groups in the United States and Canada being a peaceful transition from corp.munism. With Herrhausen covertly controlled by the U.S. National Security Council, assassinated and LaRouche thrown into federal prison in the then headed by Henry Kissinger. If anything, those controls United States, those prospects were dashed. The past 24 have been tightened even further over the intervening years. months of economic collapse and ethnic violence were the Is there aU. S. government covert hand behind this Nazi intended result. and KKK invasion of the Federal Republic? There is little doubt that the answer is "yes." Bronfman and the ADL In September 1989, in a speech delivered to the Los Another indispensable component of the ongoing "strate Angeles World Affairs Council, then-CIA head William gy of tension" directed against Germanyand its Central Euro Webster identified America's leading "economic competi pean neighbors is being carried out by the ADL, and the allied tors" (Germany and Japan) as primary targets for U.S. covert World Jewish Congress (WJC) 'and Institute for Jewish Af operations: "Our political and military allies are also our fairs (UA). Just before the fall of the Berlin Wall, WJC presi economic competitors," he told the audience. "The national dent Edgar Bronfman was awarded the highest civilian honor security implications of a competitor's ability to create, cap given by the East German communist regime. At the award ture, or control markets of the future are very significant." ceremony, Bronfman vowed to $ED (communist) party chief Webster's successor, current CIA chief Robert Gates, reiter Erich Honecker that he would put all the resources at his dis ated that perspective on repeated occasions. posal into the fight to prevent reunification. Since then, the Sources inside the U.S. Pentagon's special forces com WJC and the ADL have carried out a non-stop propaganda munity have also confirmed that U.S. covert operators are barrage decrying the Nazi revival in Germany. As one of the active in the on-the-ground destabilization of the Federal accompanying reports will show� the ADL is one of the crucial Republic in pursuit of this doctrine outlined by Webster and agencies covertly running the U.S.-based Ku Klux Klan net Gates. Israeli sources have told EIR that both Israeli superspy works providing aid to the GerdIanskinhea ds. "Dirty" Rafi Eytan and his onetime CIA counterpart Theo While the behavior of British, American, and Zionist dore G. Shackley are involved inside Germany helping to circles toward Germany today is an echo of their criminal fuel the "strategy of tension" through covert support to the policies of the past, the vast majority of Germans, on the anarchist leftist and neo-Nazi rightist gangs. According to other hand, are outraged at the skinhead violence. In every these reports, the "money is coming from the United States" major German city, Christmas iseason vigils protesting the and the on-the-ground efforts are being "steered by Israelis violence drew some 300,000 citizens. and former Stasi operatives." The alleged U.S. official role Privately, German security services are well aware that is part of a larger mosaic that makes up this "strategy of their country is a target of a covertwar involving foreign intel tension" against Germany. ligence-directed violence by both left-wing and right-wing Since former President Ronald Reagan made his trip to gangs. In one of the most dangerous vestiges of the postwar Bitburg, Germany in 1985, the British Crown and its leading orchestrated "collective guilt," they will not bring to public spokesmen in the British government and press have been light what they know about this foreigninvolvement . It is the trumpeting the threat of a "Fourth Reich," this time fueled by kind of error that gives rise to real-world tragedy. 34 Feature EIR January 8, 1993 Antifascists vs. anti-antifascists : the 'strategy of tension' by Angelika Beyreuther-Raimondi The fo llowing article first appeared in the German weekly intelligence services," and will s\lcceed in uncovering this newspaper Neue Solidaritat on Dec. 23 . American racist group's organizational structure in Germany. When American KKK terrorists visited Germany in 1991 in It is known that the KKK has hFcome especially active in order to build neo-Nazi cadre groups, Neue Solidaritiittook Germany's new eastern states. A growing body of evidence ! this signal very seriously, because ultimately, neither left nor indicates that the organizational and social milieu of the right terrorists can possibly exist without covert ties to the Stasi, the former East German in$lligence service, is at the logistical structures of governmentintelligence services. center of the KKK recruitment activities. This includes both It is also well known to the German authorities that for formal and informal Stasi collaborators, as well as a family decades, the KKK in the United States has been infiltrated to a milieu of former Stasi people. . high degree by the FBI and other American security agencies. Conspiratorial KKK cells hav� been intimately involved But the German federal government has imposed on itself a in the coordination of attacks on (oreigners and their dwell mental prohibition against inquiring why the KKK has been ings, attacks which have led especially in the U.S. media, to activated at this time in Germany. We do not share that outrageous portrayals of all Gennan citizens as neo-Nazis. reluctance, especially given that American authorities have The Nazi-skinhead scene is becoming increasingly danger done nothing against these international KKK activities. ous, aggressive, and bru'al, and is organizationally tying Especially the events of the last few months have shown itself into the militantly racist secret society. Both feel com that the deployment of these neo-Nazi terrorists has negative mitted to the "battle for the white race." The KKK cells ly influenced Germany's internationalposition and its ability meanwhile are also building their own "anti-antifascist" to act as a sovereign nation. We must ask: Cui bono? Who structure, which promises to further escalate the spiral of benefits? violence between left and right. ;In KKK publications, the The further escalation of the internationallyorchestrated first lists have turned up, bearing names and addresses of "black propaganda" characterizing the lawfully constituted political opponents. state of the Federal Republic of Germany as a new "Fourth Reich," comes on top of Germany's complete domestic pa Left and right have similar 'scenic structure' ralysis domestically in the face of great economic and securi Both the right-wing and left-wing extremist "scene," as ty problems. This has produced a situation in which Germany it is called, utilize essentially tbe same logistical means, could indeed regress toward "Weimar conditions." The including modem computer technologyand information sys large-scale deployment of left-wing and right-wing terrorist tems. In order to evade the gra� of federal investigators, gangs, who are out to infest the country with tiny and unpre their central logistical components, such as publications and dictable group lets whose ambush tactics will spread panic bank accounts, are being shifted lnto foreign countries. For throughout the country, is creating a dynamic best described example, on the left, the underground tabloid radikal, and as a "strategy of tension." on the right, the newspaper and bank account named Co This dynamic can only be halted if German politicians thinkers of the New Front, have been moved to Holland. break with several taboos of the past 40 years. In May 1989, radikal reported that "there is hardly any An investigation has now finally been launched against area more deeply rooted in the autonomous movement, than the German section of the KKK, on suspicion that it has anti-fascist work," where "autonomous organizing and con formed a terrorist association. Here it should be pointed out crete alliance work have progre�sed so far." Their demand once again, how little the U.S. authorities appear to have at the time was: In order to be prepared for future battles, done to put a stop to the doings of the KKK in the United streetfighters should "train their own! bodies and armthem- States. It is to be hoped that the German investigations will selves." not draw back out of fear of possible conflicts with"friendly The anti-antifascist groups COnsciously borrow from the EIR January 8, 1993 Feature 35 successful model of the autonomous antifascists. The goal of rally was mistaken for a "fascho" and was clubbed by his the right-wingers is to answer the violence of the autonomous own comrades, sending him to the hospital with severe head groups with counterviolence. Neo-Nazi leader Christian wounds. Worch is intent on setting up a "scenic structure" for the nationalists according to the model of the leftauton omists, a 'Pleasure in violence an murder' structure which would be difficultfor security authorities to The skinhead magazine F4anzines and the heavy metal monitor. records with their fearsome, in�uman texts which go all the One autonomist in October 1991 described to radikal way to inciting people to m�rder, are largely produced this "scenic structure," whose "actions" (he used the English abroad, and are then brought into the country and passed from word) operated on three levels: "The firstlevel refers to com- hand to hand around the "scen�." New supplies continue to poUr in. Whatever think tank this "culture" was created in, and whether for the right or the left street fighters, it is all It should be recalled that in thejinal based on the same nihilistic world outlook of Friedrich Nietz sche and of Hermann Hesse, vyho in his book Steppenwolj days the We imar Republic. the described the mental state of the left or right radical "street Communists (KPD) and the Nazis fighter" as follows: "Then there flares up inside me a wild who had beenjighting hunger for intense feelings, fdr sensations-a fury at this (NSDAP) . gray, flat, normalized and sterilized life, and a raging fury to each otherJo r years. smashed the beat something to pieces, perhaps some store or a cathedral, republic iTljoint actions and paved or myself; to commit reckless pranks ....To seduce a little the wayJor the catastrophe. In girl, or to wring the necks of Ii few representatives of the bourgeois world order." The strttetfightermentality is exactly Joseph Goebbels's words. "the the same for the member of the 1f.lazi Sturmabteilung (brown extremes are meeting." shirts) of the 1930s, as it is for the skinhead and the autono- mist of the 199Os. I Police reports containing thd confessions of right -extrem ist perpetrators of violence, s�w that often what was in ing along with many others to demonstrations, to organize volved was simply "pleasure in violence and murder." Re political campaigns, i.e., to do fully legal political work . As garding "militant small groupsr' that do not eschew terror the second level, I understand letting loose with many others attacks, Heinz Fromm of the the Hesse state Verfas at night, jamming locks-a kind of mass militance. And a sungsschutz reports: "At the 'Werewolfs-Senftenberg third part ...are then the clandestine militant actions, such Hunting Unit,' for example, a Iweapons cache was uncov as planting firebombs, etc." ered, which included hand grenades. The German National The experiences ofsocial worker Wolfgang Bartsch, who Party in Erfurt holds regular military exercises. Something worked in Hamburg with disoriented youth inclined toward is coming up on the terrorist front in Saxony. And it's certain right radicalism, were described in the German weekly maga that it's more than what is knowlnat this point." In extensive zine Der Sp iegel in the following key passage: "Often police raids over the recent peridd, entire weapons stockpiles Bartsch was even successful in turningthese Rabauken com have been seized. In mid-DeceQiber, among the members of pletely around [i.e., converting them from skinhead to anti the underground organization National Offensive , police fascist types]. For youth in search of comradeship, the ex also found objects which were lintended for the production tremes were often interchangeable." A new observ 36 Feature EIR January 8, 1993 is to be waged with even more militance. The specificactions On Dec. 9, there appeared a "Rostock Declaration," in are: searching out the meeting groups, groups, and individu which a neo-Nazi "Taunus Front" spoke out against the arson als on the right-extremist scene, and the publication of that attacks on the houses harboring fqreigners seeking asylum information in brochures, leaflets, and so-called warrants ." in Germany. The authors, who ch.racterized themselves as These left terrorists' motto is, "Beat their bald heads, till "radical, autonomous, nationalist, and socialist," wanted the they're down!" (Haut die Glatzen, bis sie platzen!). declaration to be understood as a ba$is for discussion between parties, organizations, and associations of national resis Surveillance against each other tance, and their political and philpsophical enemies." Just The latest issue of the newspaper Antifaschistische Nach like the "left," these "right-wingers" fear that that "an escala richten (Antifascist News) sounds the alarm: "Recently a new tion . . . was provoked by the relevant interior ministries in slogan is making the rounds in the neo-fascist scene: 'anti order to produce the necessary pressure on the streets, in antifa[scistJ .' Under this slogan, the reader is exhorted to order to make possible the enforcement of new laws against do reconnaissance on the structures of the anti-fascist inner asylum-seekers as well as agains� nationally minded Ger circle, to collect information about us, and to publicize it in mans." Is this Taunus Front also a phantom, like the "third publications of the Nazi scene. " generation" of the Red Army Fraction (the Baader-Meinhof In order to prepare themselves for attacks from the right, gang)? At any rate, the purpose of the Rostock Declaration the left is discussing a "thoroughgoing improvement" of its is clear enough: Might it not be! better for right and left structures through "modem communication structures" and extremists to fighttogether againsHhe hated state? regular meetings, at which the "possibilities for self-defense Both the Republikaner party and what remains of the and measures which should make it more difficult for the orthodox (West) German Communist Party (DKP) are al fascists to spy on our connections," are discussed. ready trying to form a "broad an�i-capitalist protest move In August 1992, the neo-Nazi taboid Index contained a ment from below," a "fundamen�al opposition." The "reft comprehensive presentation of this "anti-antifa" concept. An and light" together are thus becoming a threat for the constitu impressive documentation of the meeting points of the leftists tional state. It should be recalled that in the final days the and anti-fascists had its intended effect. Just like the "antifa" Weimar Republic, the Communists (KPD) and the Nazis sheets, now the Nazi tracts are also issuing "warrants" for (NSDAP), who had been fighting each other for years, political enemies, with exact addresses and photographs. In smashed the republic in joint actiqns and paved the way for Wiesbaden there is an "Anti-Intifada," the firstright extrem the catastrophe. In Joseph Goebbels's words, "the extremes ist information telephone, which gives out the latest news on are meeting." on the "scene" and on the political enemy. But in this terrorist guerrilla war against the German In Hamburg, neo-Nazi Christian Worch, who is national republic, is there an "interested third party," who wants to ly accepted as the leader of the "legal" wing of the neo-Nazi use the destabilizing effect of thili unprecedented crisis for movement, has already planted an "anti-antifa" logistical their own strategic and/or tactical goals? Without at least network in many German states. This is supposed to make his asking the question "cui bono?" German politicians and in fighters "betterable to switch over from reaction to action." vestigators can indeed proceed to �utlaw extremist organiza These diverse right and left autonomous "commandos" tions of various stripes; but in the end, unless they do so, have at their disposal comprehensive data banks on the Ger they will not be able to get the upper hand over left and right man extremist scene. Worch's own "right-wing" information terrorism, and will lose the battle in this "strategy oftension." collection is already in the hands of the "left" autonomists. On May 20, 1989, a "Mobile Antifa Commando" (MAK) forced their way into his Hamburg home. A letter written by GIVE THE GIFT THAT the intruders said, "On the night of May 19-20, we went to CHALLENGES THEIR MINDS, pay a visit to the Worchs at their home, in order to take Without Straining their Eyes . possession of their documents. The fact that the Worchs .. sustained no bodily damage, can be ascribed to the fact that they strictly carried out our instructions. We knew that we EIR AUDIO IREPORT would meet them both at this time, and we proceeded from One Hour Eaqh Week. the idea that about 40-50 fileswere there. But we had in no Exclusive Interviews and News. way expected that fascists like Christian and Ursula Worch, Statements by Lyndon laRouche. who had been in this business for such a long time, had $500for 50 issues. S$nt FirstClass. hoarded so many personal papers, addresses, card catalogs, Make checks payable to: and name registers, and that they would tum over their ' com EIR News Service rades' to us, just like that. We took it, thanked them, and p.o. Box 17390. Washington. D.C. 2004 1 -0390 pocketed everything." EIR January 8, 1993 Feature 37 ADLcre ates Ku KluxKlan and Nazi chaos in Germany by Scott Thompson Behind the atrocities of various right-wing and Nazi groups Nazi salute and, in one instance, staging a cross-burning. in Germany against foreigners lies an operation straight from Mahon's message, like that offLa uck, is hatred of foreigners the pages of the infamous Counterintelligence Program seeking asylum and work in Germany. (According to Lauck, (Cointelpro) run by the Federal Bureau of Investigation in foreigners violate a heritage '!from the Teutonic Knights to the United States from the mid- 1 960s until afterthe end of the the Waffen SS.") Wilcox told! this author that he has reason Vietnam War. In this current program to disrupt Germany, a to suspect, on the basis of firstl-hand knowledge, that Mahon faction of U.S. government intelligence services is being is under the control of the U. S. Department of the Treasury aided and abetted by the Anti-Defamation League of B 'nai Bureau of Alcohol, Tobacco, land Firearms (BATF), whose B'rith (ADL), which inherited the Cointelpro program after extensive involvement in Cointelpro operations was largely the FBI's role was exposed by three congressional commit overlooked by congressional �nvestigators, who focused in tees during the mid- 1970s. stead on the FBI. Mahon, who served in the U.S. Armyand For example, it has been known since the 1970s that 95% later as a mechanic at the TWA overhaul facility in Kansas, of all Nazi literature circulating in Germany is produced made a big splash when he ¢merged as a self-proclaimed by Gary Rex Lauck's NSDAP-AO (National Sozialistische Klan leader around 1988. It seems that with the outlawing of Deutsche Arbeiterpartei-Auslands und Aufbauorganisation) the FBI's Cointelpro, there were only a few KKKers left. based in Lincoln, Nebraska. Lauck was proclaimed persona According to Wilcox, the BATF immediately tried to get non grata in Germany in 1974, and he was arrested on his a counterterrorism-trained member of the Platt City, Kansas returnin 1976. Yet, his German-language paper (now known police department to plant a bomb on Mahon, so that they as NS Kampfruj) was being smuggled into Germany on a could control him. When the policeman refused, the BATF route that went through Communist Hungary to East Germa caused the officer to be fired and deployed an individual it ny under the Honecker regime, showing that the East German had recruited from prison, wbo quickly became Mahon's secret police (Stasi) collaborated in this effort to disrupt West security chief. Like other agents provocateurs, this BA TF Germany. Since reunification, elements of this same Stasi informant helped Mahon's Klansmen arm themselves to the have formed an underground, which proved to be a key ele teeth for an appearance at a . local TV station. When the ment in the neo-Nazi violence and rioting that erupted in Klansmen left the station, they were immediately arrested. Rostock, Germany last fall. Those who did not become informants served prison terms. According to Laird Wilcox, a writer on left-wing and Mysteriously, Mahon, who openly called for racial bomb right-wing extremism in the United States, Lauck is widely ings, continually escaped arrest, as did the BATF agent who believed to be an asset of the ADL, whom the ADL has was his security chief. According to sources familiar with protected from prosecution on charges ranging from evasion Mahon, throughout much of his meteoric rise as an interna of taxes to mail fraud to the shooting of his brother. The case tional KKK figure, he was an active member of the Oklahoma of Lauck, with his apparent longstanding "working relation National Guard. In 1980, he ! was sent to Liberty City in ship" with the East German Stasi, calls to mind the fact that Miami, Florida when riots broke out in that predominantly ADL honorary vice chairman Edgar Bronfman received the black ghetto. highest civilian honor of the East German state from Erich Through his provocative activities, Mahon became a con Honecker, afterBronfman promised to do everything in his venient target for a former communist named Leonard power to stop the reunification of Germany. Zeskind ofthe Center for Democratic Renewal (CDR), which works closely with the ADL. Zeskind screamed about the The case of KKK leader Dennis Mahon emerging Klan danger, and staged riotous counter-demon Lauck is just one example of the ADL-U.S. intelligence strations at many of Mahon's public appearances. In addition assets that have been deployed to destabilize Germany. to working with the ADL, the CDR is also closely associated Shortly after reunification, Oklahoma-based Ku Klux Klan with Gerry Gable's Searchlight magazine in England, which leader Dennis W. Mahon toured Germany, giving the banned has consistently blown out of proportion the danger of "Ger- 38 Feature EIR January 8, 1993 British and U.S. intelligence agencies, and private organizations such as the Anti-Defa mation League, have a cOlllrolling interest in the Ku Klux Klan and similar organizations. The photos show a KKK fu neral in 1924 and a KKK "baptism" of an in/alll, mock-Christian ceremonies conducted in the era when the Klan was commilling ritual satanic murders of black people all over the U.S. South, with impunity-and Ivhen the Anglo-American elites were backing Nazi eugenics in Germany . man revanchism." These European efforts, paralleling the of July 15, 1979 reported West ADL-CDR activities in North America, were always con Gerhard Baum saying that as much I ducted in concert with the Association of Victims of the Nazi ture in Germany originated from 's base in Lincoln, Regime (VVN), and more recently with the World Jewish Nebraska. The German Interior Ministry has repeatedly Congress of Edgar Bronfman. The VVN, one of the so-called asked the United States that Lauck be stopped from printing anti-Nazi groups formerly based in East Berlin, has been his Nazi literature for distribution in their country . Lauck has identified in the annual report of the West German Interior not only broken German law by printing decals and papers Ministry as being run by the Stasi, which was itself an inter bearing a Nazi content, but he has also called for selective mediary for the disinformation section of the KGB . bombing of officials in the United States who favor racial Wilcox believes that since Mahon and Zeskind shared integration, such as those who advo ate busing . Lauck is the ties with the BA TF, they were playing out the "gang versus head of a violence-prone organizdtion that merits serious countergang warfare" made notorious in the United States investigation by law enforcement agencies. through the writings of Brig. Gen . Frank Kitson and exposure Lauck's U.S. organization is mall, but he publishes of operations like Cointelpro. The Center for Democratic newspapers for four countries: the nited States, Germany, Renewal devoted its main feature in its May 1992 issue of Hungary, and Sweden. Moreover, h has reportedly fu nneled its report, The Monitor, to Lauck and Mahon's successes in money through Swiss accounts to foreign supporters . The recruitment in Germany. German Interior Minister Rudolf question is raised: Where does Ga Lauck get his money? Seiters reported in May 1992 that since Mahon's trip to Ger Has it had anything to do with the assistance of the Stasi in many, the KKK had established branches in at least three smuggling his papers into Germany10r possibly to other U.S. German cities (Berlin, Essen, and Herford), where their main intelligence organizations targeting Germany, in league with targets have been foreigners living in Germany. the ADL? Lauck's following in Germany is significant. It was built Where does Lauck get his money? up in large measure under the leade ship of Michael Kuhnen Lauck was kicked out of West Germany by the Interior in Germany and Gottfried Kussel i Austria. Kuhnen died in Ministry in 1974 after being proclaimed persona non grata 1991 from AIDS , shortly after servIng a prison term. Kussel for illegal political activities, and he was arrested and de has been imprisoned for violating tustria's anti-Nazi laws. tained for four months in 1976 when he returned to continue However, the base of Lauck's orga�ization, as with Mahon's his Nazi organizing. The Nebraska Omaha World Herald KKK, are not Nazis, but skinhea s, a racist creation of a EIR January 8, 1993 Feature 39 counterculture program of the Frankfurt School, who adopt According to former U. S . ntelligence officers , this , was Nazi-type insignia. not the only klavern of the KK that was entirely run by the FBI or another U.S. intelligen organization. . Metzger woos the skinheads When Cointelpro was ta shed through congressional Tom Metzger, who has been described as "the Lenin of hearings and the press, the FBI egan to look for alternatives the American right-wing," runs an organization based in Fall to hands-on involvement in c ntinuing the same program. Brook, California called White Aryan Resistance (WAR). One of the main substitutes t at willingly agreed to work Sources report that in the December issue of his publication, with the FBI, was the Anti-De mation League. Not coinci WA R. also titled he listed 15 right-wing racialist organiza dentally, it was AttorneyGener I Edward Levi, a close ADL tions in Germany with which his group is affiliated. In a associate, who authored the fa ous "Levi Guidelines" that recent taped message, Metzger condemned the German gov officiallyshut down the FBI's i filtration/provocateuropera ernment for "stamping out natural racism with unnatural tions into the radical moveme ts. Like the CIA during the force ." He said the repression from Bonn will only boomer Reagan era, the FBI took the' covert operations "off the ang, because it will make the resistance grow. He condemned reservation" and handed those tivities over to the ADL and the German outlawing of the swastika and celtic cross, telling kindred organizations. The res lt was an even more aggres listeners to take them out, polish them, and wear them. sive, and illegal, infiltration an4 activation program. As with Mahon and Lauck, Metzger has made a deliber Documents released under �OIA show that the ADL and ate attempt to recruit skinheads, including by use of satanic the FBI had longstanding, cord al relations, such that in the rock with racial and violent lyrics. One group with which 1970s, for example, there was r!a Special Agent in the New Metzger works is White Lightning, which does rock songs York FBI Field Office assigned �o be in liaison with the ADL like "Aryan Homeland." Metzger is also said to be a friend of (FBIHQ File 100-530-5 1 1). W�en William Webster became Ian Stuart, the leader of the British rock group Skrewdriver, FBI director in 1978, this relatiohship was upgraded-initial which has broad appeal with skinheads. To a great extent, ly, accordingtoFBIFile632-1 1 $203-3, to carry out joint FBI the skinhead phenomenon, like that of the Beatles before ADL operations against Lynd� H. LaRouche, Jr. and his it, originated in Britain. Metzger apparently believes that associates. However, in a Feb.: 4, 1985 airtel addressed to explicitly racialist and violent rock is a way to recruit to his all FBI regional offices, Director Webster gave the following movement. order: i "The Anti-Defamation Lea�e of B 'nai B 'rith (ADL) has Operation Cointelpro undertaken to monitor and repQrt the activities of domestic What is being unleashed in Germany is the equivalent of terrorist groups, particularly th Ku Klux Klan. On 1118/85 the FBI's Operation Cointelpro , which pitted left versusright the New York Division initiattd+ contact with [names de and black versus white. The Cointelpro method was most leted] . These individuals were *dvised of the primary juris clearly discussed in a book entitled Gangs and Count diction of the FBI in civil right� matters. Further, they were ergangs. written by British Army Brig. Gen. Frank Kitson. advised that any legitimate civ� rights allegation should be According to documents released under the Freedom of In immediately brought to the attebtion of the appropriate FBI formation Act (FOIA) , by the mid-1960s, the FBI had 2,000 Office. [Name deleted] express d his desire to cooperate and dI informants working on "racialist" matters, many of whom, stated he would notify all regio�al ADL Officesof the FBI's like Gary Rowe, were agents provocateurs stirring up Klan responsibility. It was also esta�lished that each FBI Office violence against the civil rights movement. Three congres contact each regional office to �stablish a liaison and line of sional committees during 1975-77 investigated Cointelpro communication to promptly recleive any allegations of civil afterthis monstrous project had been partially exposed. The rights violations. I highest estimates of Klan membership in the mid- 1 960s were "Each receiving office [of t�is airtel] should contact the 30,000, which means that one in every 15 KKKers was an Regional ADL Director(s) liste4 in your Division and estab FBI "sheethead." lish this liaison. FBIHQ need n�t be notifiedof the results of The final report in 1976 on Cointelpro of the Senate Select these contacts with the excepti� of any significant cases or Committee to Study Governmental Operations reveals on problems. These contacts shoul� be documented in each field page 45: office44-0 file." "The second kind of 'notional' was the fictitiousor gani zation with some unsuspecting (non-informant) members. The kosher Klansman For example, Bureau informants set up a Klan organization One of the best known ADL informers in the right -wing is intended to attract membership away from the United Klans James R. Rosenberg (a.k.a. Jim$y Rosenberg/Jimmy Mitch of America. The Bureau paid the informants' personal ex ell/Jimmy Anderson), who is eI\nployed by the ADL's Fact penses in setting up the new organization, which had, at its Finding (i.e., dirty tricks) unit �n by Irwin Sual!. Rosenberg height, 250 members." was the ADL's paid infiltrator into a Ku Klux Klan klavem in 40 Feature EIR January 8, 1993 Trenton, New Jersey, who attempted to provoke the KKK into Levy's real controllers-the ADL a�d the FBI. Headlines for bombing the Trenton chapter of the National Association for the articles included, "Is the JDL Behind the Nazis Permit?" the Advancement of Colored People (NAACP). "Nazi Rally-Rouser Really Jewish," and, "Is Everybody in In 1981, a female JDL contact using the code name the Nazi Rally Crazy?" "Ricky," following threats from Rosenberg, gave the follow This rally is a typical example of the "gang versus count ing background on him. She said she met Jimmy in Israel in ergang" warfare which was at its height during Cointelpro 1978 when she was at the Kfar Saba kibbutz, and took pity in the United States, and which is now being shopped into on Jimmy, who was an outcast, constantly bragging about Germany by the ADL and a faction of U.S. intelligence. how he worked for the ADL to infiltrate the Ku Klux Klan. But by far the most telling incident of ADL-FBI collusion According to the source, Jimmy "got all messed up on Vali in fomenting KKK violence in Amei-icaca me to light in 1970 um .. ..He even had to go for drug treatment and that upset through an expose in the Los Angeles Times. The story re him because he got impotent for about six months. . . . There counted a June 30, 1968 ambush in Meridian, Mississippi was some things about the KKK that Jimmy really agreed outside the home of ADL official Meyer Davidson. A local with," Ricky said, adding: "He calls the Syrian Jews 'nig schoolteacher, Cathy Ainsworth, was killed by police, and a gers,' and he was always talking about going to South Africa second person, Thomas A. Terrants 1II, was critically wound to kill blacks." While in Israel, Jimmy became a "jobnik" ed by 70 separate gunshots firedby 22 FBI agents and police. (paper pusher) with the Israeli military . Terrants and Ainsworth were �KK members who were On his return to the United States in 1979, the ADL sent by local KKK leaders Alton Wayne Roberts and Ray used Rosenberg's military experience to have him infiltrate mond Roberts to plant a bomb at Davidson's home. What paramilitary groups. In an expose entitled "Armies of the the two would-be bombers didn't know was that the Roberts Right," aired on Minneapolis television, the producer quoted brothers had just been paid $69,000 by the New Orleans so-called right-wing leaders spewing out anti-black and anti office of the ADL to work as agents provocateurs. Ains Jewish filth and calling for violence. By far the most racist worth's murder was stage-managed by the ADL, apparently and disgusting on the show was Rosenberg, who was intro in an effort to instigate a KKK scare in the community and put duced as the head of a Queens, New York chapter of the Davidson forward as a hero and "victim" of racist violence. Christian Defense League. At no point in the broadcast were At the time that New Orleans ADL official Adolph Bot the viewers told that Rosenberg was an ADL undercover nick passed the cash on to the Roberts brothers (with the full agent provocateur. approval of local FBI officials), the Roberts were suspects in 10 separate terrorist incidents in the previous year. They were The ADL informant's Nazi rally under federal indictment for the 1964 murders of three civil Mordechai Levy is another major informant shared by rights workers, Andrew Goodman ,: James Chaney, and Mi Irwin Suall and the ADL with the Federal Bureau of Investi chael Schwerner,in Philadelphia, Mississippi. As aside ben gation. In 1979, Levy was caught brown-handed organizing efitof their collusion with the ADL and the FBI, the Roberts a Nazi Party rally in Philadelphia, Pennsylvania, which was brothers received slap-on-the-wrist sentences for the Phila supposed to lead to a melee with the Jewish Defense League, delphia murders and their other terroristesca pades and were of which Levy was also then a member. On Feb. 16, 1979, eventually squirreled away into the Federal Witness Protec using the phony name "James Guttman," Levy applied for a tion Program (FWPP). rally permit from the National Park Service in Philadelphia, to hold a joint demonstration of the Klan and the Nazis at Magnitude of the control Independence Hall. Levy/Guttman's statement on the permit With U.S. - and British-based raPical racist organizations application stated he would hold a "white power rally to show identifiedinternat ionally as key players in the recent buildup white masses unity of white race, and to show the world of racially motivated violence in Germany, an obvious ques niggers and Jews are cowards." Under the category for "dec tion is begged: Is the entire deployment of these skinheads, orations ...equipment ," Levy wrote, "swastika banners, KKKers, etc. part of an Anglo-American joint covert opera Nazi uniforms, KKK paraphernalia ... will bum cross, tion to throw the Federal Republic of Germany into chaos swastika picket signs ...[sa ying] Hitler was Right-Gas and create the pretext for an international Germany-bashing Commie Jews." On the application, Levy identifiedhimself propaganda drive? There is little doubt that the answer is (Guttman) as the "leading coordinator" for the Chicago "yes." based National Socialist Party of America, whose fuhrer High-level police sources in t� Federal Republic have is Frank Collin, a notorious ADL agent provocateur who stated off the record that they know Germany is the target of organized a Nazi march through Skokie, Illinois, an area one of the most aggressive foreign intelligence operations in with a large number of Jewish survivors of the Holocaust. decades. However, there is fear that a broadside attack on Eventually, Levy's cover was blown, and the Nazi Party the role of U.S. and British intelligence-deployed agents rally received major coverage in the press, which protected provocateurs would only make ma�ters worse. EIR January 8, 1993 Feature 41 �TIillInternational Beijing andMos cow: enter a 'new era' in relations by Linda de Hoyos There is one reason why the Dec. 17-18 state visit of Russian intelligence chief Yevgeni iPrimakov. Yeltsin came to President Boris Yeltsin to Beijing attracted so little attention Beij ing for the formal signiqg of over 20 agreements for in the western press: The visit and the array of prepared cooperation in all fields. His d�legation of 100 people, requir agreements signed by Yeltsin and his Chinese counterparts ing three planes, indicates the importance Moscow placed on points to the abject failure of Anglo-American policy toward the upgrading of relations witb China. Yeltsin was accompa the East. The "shock therapy" administered to the Russian nied by Russian Foreign Mini�ter Andrei Kozyrev, Security Federation by the InternationalMonetary Fund has propelled Minister Viktor Barannikov, I�ternalAffairs Minister Yerin, Moscow to tum to the communist superpower, the People's Atomic Energy Minister Mikbailov, Deputy Prime Minister Republic of China. As Chinese commentaries pointed out Aleksandr Shokhin, Academy of Sciences President Arkhi before the visit, Russia was promised $24 billion in aid by pov (a former ambassador tol China), and leaders of other the West, but has received in fact only $1 billion. republics. On the other side, the western-promoted policy of free The planned three-day tri� was to have included a visit economic zones in China and development of labor-intensive to the Shenzhen free economid zone in the South, but Yeltsin consumer industries for export has enabled the Chinese to cut his stay short for domesti� reasons. This was no snub to accrue a hefty pot of foreign exchange ($65 billion) and Beijing, but only underscored Russia's own weakness and enabled the Chinese communists to emerge in the 1990s as instability compared to ChinaJ the preponderant power in Asia. President Yeltsin's visit to Yeltsin was there long enough to sign all prepared agree Beijing has bolstered that position. ments, the centerpiece of wh�h was a Joint Declaration of The immediate beneficiary of the bilateral relations is principles for bilateral relations. According to the pro China. Most significant is the high level of transfer of military Beijing Hong Kong daily We� Wei Po. Russia had wanted technology to Beijing. President Yeltsin revealed during the this document to be a "treaty, " 'but Beijing declined the offer. visit that in 1992, China was the recipient of $1.8 billion in The Chinese word used to d�scribe the document is "joint armaments. "There have been attempts to keep this secret," declaration," while the Russiap word translates as "manifes he told the press in Beijing. Agreements signed by the two to." The declaration, as report¢d by Chinese President Yang countries allow for that flow to increase, and also assure Shangkun, affirms "non-antagjonism, non-alignment, good Beijing of spare parts for any military transfers in the future. neighborly relations of frienqship and mutual benefit and Moreover, Yeltsin' s visit to Beijing, marks a major diplo cooperation based on the Five Principles of Peaceful Coexis matic success for Beijing, as did the visit of Japanese Emper tence." or Akihito in October. To impress upon Yeltsin the might of The document also inclu4es a clause committing both the potentate he was dealing with, upon arrival, the Russian sides to oppose "hegemonism" and global power politics, delegation was hustled off to the Great Wall for "sight which Japan's Kyodo wire service interpreted as a "strong seeing." message to Washington that the United States should not Every detail of the trip had been prepared beforehand, assume it is the world's only �uperpower and global police including by a secret four-day visit to Beijing by Moscow men." Chinese President Yang further emphasized to Rus- 42 International EIR January 8, 1993 sian correspondents Dec. 15 that both China and Russia are but forced to accept them nonetheless. permanent members of the United Nations Security Council, Cooperation will extend to othet strategic areas: and both play significant roles in world affairs. As nuclear • Intelligence. Russian Foreign Ministry spokesman powers, the two countries also pledged in the "manifesto" Sergei Yastrzhembsky reported that Security Minister Baran their commitment to nuclear non-proliferation. nikov would sign a cooperation agreement with China's Pub lic Security Ministry covering terrorism, illegal arms sales, Cooperation across the board drug control, and crimes involving transport and communica- The joint declaration is the foundation for the 20 other tions. , agreements signed between the two governments. • Nuclear energy. Russia will �elp build a 2,OOO-mega A Memorandum of Understanding on Military Coopera watt nuclear reactor in Liaoning province in northernChina , tion was signed, reportedly on the insistence of Prime Minis one of the largest construction vertures in the history of ter Li Peng, affirming Russian delivery of spare parts for Russo-China relations. The reactor !will be of the VBR, and military equipment. The memorandum also affirmedthe con not Chernobyl, type. Russia will also build a conventional tinuation of talks to turn the 4,000-kilometer border between power plant in the Shantou special economic zone in southern the two countries into a zone of peace and security, leading China. to the "real disarmament of the Asia-Pacificregion ." • Trade and economic integration. In March 1992 Russia Back in Moscow, Yeltsin told reporters that there was no and China granted each other Most Favored Nation status, and linkage between the START talks between the U. S. and trade in 1992 was over $5 billion, the highest ever. China will Russia and defense agreements with China. There will be no now provide Russiawith commoditycredits worth $51 million. creation of a Russo-Chinese military bloc against the West, This will take the form of two credits, one of which will be he said. used to purchase Chinese grain. Chinese commentaries like to However, military cooperation between the two coun point out the "complementarity" of �he Russian and Chinese tries will be extensive. According to a Kyodo wire of Dec. economies. While Russia is able to give China militarytechnol 16, the Chinese Communist Party Central Military Commis ogy, "China's development, research, manufacture, and intro sion instructed the governmentin May 1992 to increase im duction of equipment are ahead of R�ssia and are also suitable ports of modernweaponry from Russia, stating that "stronger for Russia. China maintains technological superiority in light military cooperation with Russia and other former Soviet industry, textiles, and the electroni¢s industry." China also, republics is a prerequisite for breaking the western embargo Ambassador Rogachev indicated, has a key roleto play in the on military technology." The 1992 military budget was in conversion of Russia's defense indu$tries to civilian use-aid creased 40% over 1991 to aid in military modernization for which Russia will pay dearly. through such imports. China has already bought 24 Su-27 • Transport. Russia will sell China seven heavy trans military aircraft from Russia and is reportedly interested in port planes, Ilyushin-76 MDs, at about $20 million each. acquiring state-of-the-art MiG-3 I fighterjets . Russian Am Other Russian planes, such as the Tupolev-1 54M and Yak bassador to China Igor Rogachev also indicated that there ovlev-42M, are also in great dema�d in China, reported In would likely be agreements to modernize some of the muni terfax. China is also looking to expand transportroutes into tions plants the Soviet Union had established in China in Russia, as most of the trade between the two countries takes the 1950s. According to the Russian Interfax news agency, place on a local level across the bQrders. Heihe is building China wants to acquire aircraft carriers from Russia, but a Chinese-Russian Heilongjiang bridge which will link the their sale is unlikely. However, China invited Russia to give railroads between the two countriesf "technical assistance" for the building of Minsk and Novoro • Scientificcooperatio n. Agree�ents in this area include ssysk type aircraft carriers, and Chinese delegations have a joint R&D project in fusion ene�gy between the Russian already been to Russia to begin the process. Institute for Atomic Energy and t�e Chinese Academy of Russia is willing to sell tanks and submarines to China, Sciences. An agreement was also signed for joint work in reported the dailyKomsomolskaya Pravda Dec. 11, but Chi space exploration. na is expected to also acquire the S-300, which is reportedly Lastly, the two countries mad� a commitment to forge superior to the U.S. Patriot missile. The paper also reported cooperative policy toward other countries in Asia. As Rus that in November, Russia signed a secret deal to supply China sian Ambassador Rogachev put it: �'Russia and China share with components for satellites. Military sales for 1993 are a lot of common points on many urgentinterna tional issues," expected to exceed $2 billion. However, according to the and their cooperation in the worlq ar ena, the Asia-Pacific article, only 35% of the military sales to China were paid in region in particular, is "crucially iJinportant." For example, hard cash. The rest of the payment came in the form of without "active involvement" and. "close cooperation" by Chinese-made consumer goods-"Chinese running shoes, Russia and China, the Cambodia guestion cannot be thor parkas, canned meat, and other goods. What can you do, if oughly settled, and equally unimaginable is a resolution to it is easier to get hold of aircraft in our country than pants?" the Korean peninsula issue. Russia has reportedly completely The Russian side is unhappy with the quality of the goods, adopted the Beijing position of suzerainty over Taiwan. EIR January 8, 1993 International 43 Russian General Te lls the Truth From the sellout of Bosnia tol the maelstrom of Wo rld III War I by Katharine Kanter I A little over a year ago, Helga Zepp-LaRouche wrote that government of Yeltsin, run b an American Jew called Jef "Vukovar is the future of Europe" unless the western Europe frey Sachs," would soon be re aced by "parallel structures" an elites moved to stop the Balkans war. She was writing as of the National Salvation Fro t, which will take over the Serbian artillery was pounding the besieged Croatian city i country and place its resources iat Serbia's disposal. of Vukovar, terrorizing its helpless civilians and wantonly General Filatov was a fello much seen around Baghdad destroying its historic monuments. Now a public statement just before the war broke out; ecently, he has been sighted from Russian Gen. Viktor Filatov, which one might fairly in Serbia accompanying group of Russian military "volun describe as "refreshingly frank," has put that writing on the teers" on their way to join Serb· an companies. He is a mem wall for all to see-all that is. save the western elites who ber of the National Salvation ront and chief editor of the can't tear themselves away from the dirty movies on cable Interior Ministry's magazine, ituatsia. When not engaged television long enough to read anything. in this refined theoretical-liter work, he shows a practical Filatov, who clearly has no time to watch cable televi side by recruiting Russian "v lunteers" to go and fight in sion, chose the German daily Berliner Zeitung on Dec. 28. Bosnia. It is important to unde stand two things: 1) General to send his New Year's greetings to the western world. "Rus Filatov is not talking pie in thet sky. He is simply describing sian oil will continue to flowto Serbia. If anyone tries to stop what the Russians are actually oing, and telling, or warning us, they will find all our missiles on alert. Let them try to if you prefer, what they are abo t to do. When Foreign Minis stop us from delivering oil to Serbia. As for soldiers, we have ter Kozyrev caused the big stir t the Conference on Security unlimited reserves. Professionals, between 20 and 45 years and Cooperation in Europe ( SCE) in mid-December by of age. When the West sends Mudjaheddin in for the Mus reading a speech about Serbia n the Filatov line, he was not lims, and Catholics in for the Croatians, then it will happen lying, for once, when he said he speech had been dictated in a flash of lightning. Our tempers are up, all we await is to him by nationalist circles. 2 General Filatov's charming the signal. Watch me. When I tum up in Yugoslavia, then friends are about to come to po er in Moscow, verysoon . there will be a Russian battalion there." You have no doubt got the ilatov message: The Russians According to Filatov, about 4,000 Russian soldiers have smell blood, they smell the s· kness, the weakness of the been fighting for Serbia over the past year--crack troops, western elites. The shoe is off it is pounding the table, and including Afghantsi, veterans of the Afghanistan war-in a they are shrieking: "We will bury you. We get what we campaign for the Orthodox religion. Rather than send Rus want, or you get war." Americ ns who have not the slightest sians to Argentina, he said, we have spoken to the Serbians, interest in Bosnia, "a far off ountry, of which we know who are excited about the idea of settling a million Russians nothing," might do well to thin again. in Serbia, i.e., 300,000 families, whose men and youth can It is no accident, that Filato makes his calculated "Watch fight for "Orthodox Serbia" against Croatians and Muslims. out, we are stark raving mad" ove, the very week that the Of course, when Filatov speaks of "Serbia," he is referring western powers feebly mootedf the idea that at some remote to most of Croatian, Bosnian, and Kosovan territory, which time in the future, an air inter ict against Serbia might per the Serbs and Russians say are "Orthodox Serbian lands, haps be enforced. Filatov kno s that he is dealing with west historically." Filatov boasted that "in uniform, I went to ern leaders devoid of any loy ties or moral principles, but Belgrade and campaigned for Milosevic in the elections, on committed to the new world 0 der, i.e., the world as a law TV." Seselj , leader of the overtly fascist Radical Party, he free looting ground, swept by nglo-American police opera described as "my friend." tions. Indeed, following the ev nts in 1989, the same Anglo In conclusion, Filatov said that the "U.S.- run occupation American think tanks which s at upon Lyndon LaRouche's 44 International EIR January 8, 1993 Berlin-Paris-Vienna Productive Triangle proposal to develop Labyrinth" to free Sarajevo , Cyrus Vance's spokesman Fred Russia and eastern Europe, plotted to grab chunks of the Eckhardt stated that Vance and Lord Owen are "greatly con former U.S.S.R., under the cover of western "peace-mak cerned" by this Bosnian move, as it will jeopardize their ing" police operations. That is the evil which the National "negotiated rather than military" solution. Salvation Front seeks to deflect, characteristically, by more So we see, that the so-called we�tern superpowers, name evil. ly England, France, and the Unitedl States, all of whom pos sess nuclear weapons and have little to fear from Serbia, have What could have been done purposefully rejected every bloodless means of putting an Had the western powers wanted to muzzle the Filatovs end to Serbia's war of aggression. Neither Bosnia, nor Croa of this world, and hold Serbia back from her course of aggres tia, is anything to them. Their care is, first, to blow up conti sion, this could have been done without shedding a drop of nental Europe and drive a wedge between Russia and Germa blood. Now, after 18 months of casting away every effective ny . Second, to tear up the law, aM re-write it as they go measure proposed to them, with 200,000 dead, these same along, turning Bosnia, like Iraq and Somalia, into a "law powers claim that only military means will stop Serbia. But free" playground. National sovereignty is to disappear, ex what were the other means available? cept of course, for England, the United States, and Russia. 1) Recognition. Had the westernpowers wanted to pre vent Serbia from moving outside her borders, that could have Bosnian government is right been done, easier than falling off a log in June 1991, just by And so we have the governmePt of Bosnia, a lawfully recognizing Croatia and Slovenia right after the popular vote elected governmentof a nation, reoognized by most nations in favor of independence from Yugoslavia. But, given what on this planet, and this government, in classic international Msgr. Tauran called in Le Monde on Dec. 27, "a terrifying law, is responsible for defending t1!le lives of its citizens by lack of political will in Europe," it was child's play for En upholding Bosnia's sovereignty. This governmentof Bosnia gland, France, and the United States to block recognition does not want 12 or 15 different for¢ign armies, in the flimsy until finally, the Vatican forced everyone's hand in Decem disguise of U.N. soldiers, but in reality under the sway either ber 1991. By that time, Vukovar had fallen, tens of thousands of Russia or the Anglo-Americans, stomping all over their had died, and Croatia had lost 30% of her territory. territory. They simply want arms to defend themselves, and 2) The blockade. After Serbia's winter skiing holidays the back-up of a blockade agains� Serbia. That is denied were over, she fell upon Bosnia, as the entire world knew them. This governmentwants Tuzhi Airport opened, so Bos she would, in March 1992. There was a simple, elegant, nia might receive foodstuffs and weapons, and reestablish bloodless way to stop Serbia in her tracks within a fortnight: their authority over Northeastern Bpsnia. The British forces Enforce the blockade over the Serbian stretch of the Danube. and the U.N. denies that to them. llhis governmentdoes not Enter England, France, and the United States, playing the want Bosnia to become a U.N. Prqtectorate, but now hears European Commission and the U.N. Security Council for all that this solution "may have to be ; imposed. " This govern they were worth, obstructing every attempt to enforce the ment has rejected every single demand that the Republic blockade, secure in the knowledge that as soon as the U.N. of Bosnia be partitioned and yet, we are told, by Vance's got involved as arbitrator, Russia and China on the Security spokesman Eckhardt in Geneva, th�t "map-drawing is mak Council would veto every move against Serbia. ing progress along roughly ethnic lilles." The government of 3) Financial strangulation. The British-run isle of Cy Bosnia is right, and law, natural laW , is on its side. prus is, as this magazine reporteda few weeks ago, the center Now we are supposed to believelthat NATO, or the U.N., for all Serbian overseas trading operations today. Were the or my great-grandmother, can start "lasting Serbian installa westernpowers to close down, in a stroke, the whole Cyprus tions into the dust, or blowing th�ir planes out of the air, banking system, Serbian procurement would grind to a halt without declaring war on Serbia, .nd this will be the law, within a fortnight. Nothing whatsoever has been done to seal because this week, the British and the Americans feel like off Cyprus. it-but maybe next week, Zagreb '+VilIbe in the line of fire, 4) Allow Bosnia and Croatia to defend themselves. if they "feel like it." Just as on MOnday, Dec. 28, French Instead, England, France, and the United States added Bos "U.N." troops stopped 500 Bosniaq men from leaving Sara nia and Croatia to the arms embargo against Serbia. Had jevo at gunpoint, because the French "felt like it." In fact, Bosnia and Croatia access to the international arms market, the Bosnians are believed to have b�n wending their perilous they could push Serbia back to her June 1991 borders without way up toward Mount Igman, to rejpin Operation Labyrinth. any outside "help." The U.N., by taking over the "cease The most fundamental right is �he right to life, and the fire" zone in Serbian-occupied Croatia, has physically pre most fundamental law , the positive! duty to protect the weak vented the Croatian Army from going to the aid of Bosnia. against the strong. Bosnia can still be saved, Serbia stopped, On Dec. 29, as it became public that the Bosnians were about and Russia rolled back. But not b)i our present leaders, for to launch a large force from Mount Igman, in "Operation whom law means their whims, and rights, their lusts. EIR January 8, 1993 International 45 Inter-AmericanDi alogue 'sh�ens dagger' against nationalsove reignty , by Gretchen Small At a Washington, D.C. press conference Dec. 8, the Inter should not be "a shield behind which governments or armed American Dialogue released a blueprint for the elimination of groups" can hide. He added that what the Dialogue is propos national sovereignty, de jure and de facto, from the Western ing for the Western Hemisp�ere "is consistent with what Hemisphere, in the immediate period ahead; The Dialogue's the international community �s doing in Somalia." For Co latest report, Convergence and Community:The Americas in Chairman Peter Bell, the "w�ole terrain [of sovereignty] is 1993, outlines a strategy for crushing the nation-state, and in evolution. What is signific�nt is the self-conscious sense replacing its functions with a network of supranational insti that we're entering a new pdriod." Bell told the press that tutions run according to the dictates of the InternationalMon anti-sovereignty precedents a�e being set one after the other, etary Fund (IMF). as seen in Haiti, Peru, and nO\flSomal ia. Bruce Babbitt, who The importance of the Dialogue project extends beyond replaces Bell as Dialogue co-qhairman in January, hailed the the WesternHemisp here. As the speakers emphasized, estab current period as "a historic turning point in the history of lishing supranational governance in the Americas through the hemisphere," out of whiclt the Dialogue seeks "to build the creation of a WesternHemisp here Community of Democ a model for the rest of the world" of the institutions required racies is designed to advance the one-world project for the by the "post-Cold War" world. elimination of the sovereignty of all nations. Founded by Citing his authority as a le4ding member of the Democrat David Rockefeller and the U. S. government in 1982, the ic Party, Babbitt assured his l$teners that the Clinton admin Dialogue now serves as the Trilateral Commission's leading istration will "warmly embraqe"the principal components of policy body for the Americas. the Dialogue program. Indee�, several Clinton advisers are There is another lesson to be learnedfrom the Dialogue's associated with the Dialogu�-Richard Feinberg, Jimmy Convergence report, addressing that frequently asked ques Carter, and Henry Cisneros, among them. tion as to why the Anglo-American establishment is so intent on eliminating national sovereignty. The so-called democrat Elimination of the opposition ic world which emerges from the pages of Convergence is an The arrogant claim by aU the speakers that everyone in Orwellian nightmare, where international financial interests the Americas has now "convctrged" on a consensus in favor rule through an interlocking network of supranational non of this one-world plan, was Interrupted, however, the mo governmental organizations (NGOs) and official bodies, ment the question period begah . The first dose of reality came which sets the rules and suppresses all independent forces from a journalist who asked: "What will it mean for the outside their control . The supranational "democratic" project convergence you are discussi�g, if there is a military govern being pushed worldwide is the instrument of the IMF; it is ment in Venezuela by the tim!!the embargo [on publication] usury,not humanitarian concern, which drives it. of your report is lifted [Dec. l3]?"-a rather pertinent ques In January 1992, under Richard Feinberg's direction, the tion given that, not two weeks before, top officersof Venezu Inter-American Dialogue initiated its project on Redefining ela's military had led a sec(Jnd rebellion in 1992 against Sovereignty, dispatching academics and policymakers to the leading spokesman for supranational ism in that country, draw up the legal and conceptual parameters for the "new President Carlos Andres Perez. world order." The project is ongoing, with its conclusions An E1R journalistquesti oned whether the Dialogue's ex scheduled to be published in a book under that title in 1993. pressed concern for human tights violations had led them Convergence and the press conference called to announce it to discuss the international s¢andal developing over human made clear that elimination of sovereignty is the overriding rights violations in the United States, where innocence is no concern of the Dialogue today. longer a protection from a statt-ordered execution, and where Dialogue President Feinberg bluntly told the Washington gross political abuse of the judicial system has been demon press that the Dialogue members are agreed that sovereignty strated in the case against the nation's leading anti-establish- 46 International EIR January 8, 1993 ment political figure, Lyndon LaRouche. has disappeared," it is nonetheless 11 fact that, with the lldop The speakers asserted that the Dialogue had never raised tion of the Santiago Resolution of �he OAS in 1992, which either the death penalty or the implications of the LaRouche mandates international response to domestic political events, case in their deliberations. As for Venezuela, they responded governments are already "on record1' accepting limits to sov with threats that the "international community" would em ereignty. "That's what is behind thei term, collective defense bargo Venezuela's oil if there were a coup. Not only would of democracy," Botero declared. a military coup in Venezuela be a major setback to "conver Collective defense of democra¢y-thus admitted to be gence" in the hemisphere, Peter Bell answered, but the plan but a politically acceptable name fcj)r limited sovereignty also faces another major vulnerability: "If the North Ameri is the second pillar of the Dialoguers proposed "Communi can Free Trade Accord [NAFTA] does not pass, it will be a ty." To enforce it, the Dialogue prbposes that the OAS be body blow to the whole set of recommendations" contained provided with far-reaching intelligerlceand policing capabili in the Dialogue's report. ties so that it can, as Feinberg put it, identify which measures, directed at the right "pressure points," can "alter the internal Free trade vs. sovereignty balance of power" of a target nation� NAFTA is the first ofthree pillars upon which the Dia Convergence demands the broadest possible mandate for logue's proposed Western Hemisphere Community of De when supranational OAS intervention should be activated: in mocracies is to be based-NAFTA as a precursor to the "countries where internal order has! collapsed or is severely Western Hemisphere Free Trade Accord, which they seek to threatened, where repression andJ�r violence has become have established as soon as politically feasible. From their rampant, or where communication �tween contending polit standpoint, NAFT A/WHFTA has a two-pronged function in ical forces has broken down." Everi before these conditions hemispheric affairs. The first is the more obvious economic are reached, governmentsmust "be pressed to accept interna one. Convergence specifiesplainly that Ibero-America's role tional observers to monitor electoral processes-from the in the WHFTA is to supply raw materials and cheap labor. conduct of the campaign to the cou'ltingof the ballots." The principal purpose of these accords, they explain, is Acceptance of these rules is not a voluntary matter. As to make free trade looting so permanent in the hemisphere Feinberg emphasized, the Dialogue deliberately chose to por that no nation can break from its grip far into the future. tray the sanctions which the OAS can wield to enforce its Convergence writes: rule, as "a dagger," whose tip is �ormed by multinational "Free trade agreements, in short, serve as both an incen military intervention (see Documetbation). Because "exter tive and an anchor for trade liberalizing measures and other nal military involvement ...in tM domestic affairs of any economic reforms. These reforms, once bound by interna nation remains an issue of extreme �nstivity in inter-Ameri tional agreement, are insulated-at least to some degree can relations." Convergence report$ that Dialogue members from domestic political reversal. For some, the 'locking in' are divided over whether or not the time has come to discuss of economic policies might be considered a cost, not a bene publicly the need for the OAS to develop its own military fit,because it restricts national sovereignty and may constrain capability. national responses to special problems. But the intent of all No such division of opinion exists in Dialogue ranks over international agreements is precisely to limit the sovereign the need to break up national military forces in the region, choice of the contracting nations." however. The Dialogue has been working on the demilitari WHFTA is also needed to enforce political condition ali - zation project since 1986, when they created a task force to ties. The Dialogue demands that "commitment to democratic study civil-military relations. What �istinguishes this report, governance and respect for human rights" be made require is the explicit linkage of the use of internationally run "peace ments for membership in this "club," and points to Mexico processes" with the campaign to destroy the military. They as the first target of this policy. For NAFTA to succeed, demand that Guatemala, Colombiaj, and Peru be subjected Convergence argues, Mexico must "open its politics, end to "persistent diplomatic and political pressure" until they electoral fraud, and fully respect human rights," while Fein negotiate power-sharing with the terrorists under suprana berg specified in Washington that the 1994 Mexican presi tional supervision, as occurred in El Salvador. International dential elections must be monitored by the Organization of financial institutions must, meanWhile, "monitor military American States (OAS). spending" of all nations to ensure that their budgets are cut. Collective defense of 'democracy' An IMF -NGO dictatorship I Challenged at the press conference as to how Ibero The third pillar of the Dialoguers proposed Community American governments will respond to this limited sover are programs for governmentsto "fi$ht poverty." Answering eignty doctrine, Dialogue Co-Vice Chairman Rodrigo Bot the prejudices of their banker codstituency, Convergence ero explained that, while it would still be "difficult for any adopts the terminology of the eug�nics movement when it governmentto endorse a statement that national sovereignty answers its own question, "Why worry about poverty and EIR January 8, 1993 International 47 • j inequality?" It argues that programs are required, not to elim inate poverty, but to control the political unrest of the "un Documentation derclass" expected from the increased poverty they admit their free trade scheme will cause. Programs are required to control "the prospective losers from hemispheric integration," as major sections of the ex Sanctions to b¢ imposed isting economies are shut down under the WHFfA, Conver gence argues. "Workers who lose jobs and communities Convergence and Community: IThe Americas in 1993 con which lose important sources of livelihood as free trade trans tains a list of escalating sanctionswhich the Inter-American forms patterns of investment and production" might other Dialogue suggests can be appli41against governmentswhich wise threaten the "democratic" order. violate the rules of their would-'be supranationalord er. The The Dialogue's proposed "anti-poverty" measures will authors did not merely list th� sanctions, but designed a further destroy the advanced productive capabilities of Ibero graphic to display them, as /J)ialogue President Richard America. Money for the hand-outs which they suggest only Feinberg emphasized, in thefotm of a "dagger," which the for the most wretched of the poor, is to come from raising Dialogue wishes to see placed i� OAS hands. The "dagger" taxes throughout the hemisphere, cutting military budgets, section reads asfollows: I and transferring resources out of universities and hospitals, into primary schools and low-technology clinics. They pro Political and diplomatic ; mote the most unproductive "informal" sector of the econo • Denial of travel visas to 'coup leaders and close sup mies, and identify the women of Ibero-America as the great porters. est "underutilized" source of work to be tapped. Their • Suspension of the offendfng country's membership in programs to enhance women's work in "subsistence agricul sub-regional organizations (suc� as the Group of Rio) and in ture and small commerce" are nothing more than a barely broader regional institutions (sUch as the OAS). disguised program for population control. • Exclusion from Latin Aimerica and Western Hemi- The program they outline is to be imposed by external sphere caucuses in internationa�agenci es. conditionalities. Writes Convergence: "External agencies • Withdrawal of ambassad9rs. play the lead role in setting the international development • Withdrawal of formal diplomatic recognition. agenda, establishing global norms for confronting key prob • Direct financial and pOlitical assistance to democratic lems, and fixing priorities for action ....International fi opposition groups. nancial institutions-including the Inter-American Develop ment Bank, World Bank and IMF-have considerable scope Economic . . . for exerting economic pressure on unconstitutional re • Suspension of bilateral e40nomic assistance programs gimes." These institutions "should support ...in itiatives (except, perhaps, for humanitatjian aid). to strengthen legislatures and judicial systems"-Dialogue • Suspension of trade prefelrences. President Feinberg suggested in Washington that the IMF • Embargo of vital exportsiand imports. should "teach" the Brazilian Congress how to draw up the • Embargo of all trade. country's budget-and "condition their support in ways that • Suspension of all economic and commercial ties. ...press for such policy initiatives as tax reform and cut backs in military expenditures." Military To succeed, the financial institutions must "seek opportu • Termination of military aid. nities for collaboration" with that strange animal known as • Withdrawal of foreign mUitary missions. the non-governmental organization (NGO). Dialogue presi • Embargo of military supplies. dent Feinberg called for a "de facto alliance" between the • Imposition of a blockade� IMF and the myriad of NGOs dealing with human rights, • Multilateral military intervention against the de facto environmentalism, "civil society," etc. To help this along, government. the Dialogue itself has set up an umbrella organization for NGOs in Washington, D.C. to deal with Ibero-America, 'Architecture' of supran tional rule whose declared purpose is to "build stronger bridges between Convergence proposes that fo ur� new supranational institu the NGO community and the U.S. government." tions be created to oversee the 4estruction of national sover Thus has the supranational net already been tightened, eigntyin the hemisphere, in ad4ition to broadening the pow and a new instrument of anti-national power been quietly ers of the already-existing Inter-American judicial and constructed. When Feinberg crowed on Dec. 8 that "the era human rights systemand OAS. 'rheseinclude: of the NGO has arrived in the Western Hemisphere," it was of this net that he was speaking. 1) A new multilateral orga�zation to "guide and coordi- 48 International EIR January 8, 1993 • nate progress toward a Western Hemisphere Economic Com munity." The organization could "evolve from the proposed NAFfA commission," or be set up through collaboration between the Inter-American Development Bank , OAS, and the Economic Commission on Latin America of the United Nations. Private business, trade unions and non-governmen tal organizations are also to be involved . This institution's assignment is "to collect, systematize and disseminate statistics on trade , capital flows and macro economic indicators; to analyze issues and policies re lated to regional integration ...in cluding ...harmon ization of economic regulations; to review and evaluate proposed trade and related agreements among nations; and to serve as a source of expertise and technical assistance to individual countries. Over time, it could be entrusted with more sensi tive tasks such as defining rules to guide negotiations, medi ating negotiations, investigating violations of trade and eco nomic accords, and settling disputes over many aspects of Bruce Babbin (right) and Peter Bell Dialogue's plan fo r ending national hemispheric integration ." press conference on Dec. 2) A Pan-American Environmental Organization. This 8. suggested institution should be modeled either on the Pan . American Health Organization or the Inter-American Human vestigating potentially eruptive . . [It must) e�- Rights Commission, and given policing attributes. tablish regular channels of comm ation ," perhaps thrcugi. its assignment: "to gather and analyze data on environ "informal advisory bodies," with multitude of non-gov- mental issues, furnish technical assistance, evaluate compli ernmental organizations, foreign national, that are active ance with agreed-upon targets, and spotlight violations." in such areas as human rights, h manitarian aid, refugee 3) Establishing an OAS intelligence capability to advise protection, press freedom, and judi ial and electoral reform ," OAS diplomatic missions. The centerpiece of the Dialogue's so that the OAS could "make use Of them to reinforce its own proposed restructuring of the OAS is the expansion or trans efforts . " / formation of the newly formed Democracy Unit in the OAS 4) Establish "a permanent foru "to oversee the demili into an independent agency with fu ll policing powers . Con tarization of the nation states: vergence proposes three means to accomplish this: provide "The OAS should consider orgarizing a permanent forum the �AS's new Unit for Democracy with a fact-finding and of civilian defense ministers , arm d service commanders, analytic capacity; transform the unit into an "Lnter-American and key members of legislatures, to develop regionwide Commission on Democracy," modeled on the lnter-American norms of civil-military relations and the evolving missions Commission Human Rights (HRC), with its own governing of armed forces in the Americas. dearly, such norms would board and independent mandate; or, expanding the mandate not immediately be adopted by al armies, but they could and resources of the HRC itself to include responsibility for lead to a growing convergence of attitudes and behavior as promoting and defending democracy. This is necessary be has happened on such matters as thd conduct of elections and cause: economic management." "Good quality OAS decisionmaking requires accurate , 5) Strengthen Inter-American jpdicial powers to police timely, and nuanced assessments of the key political actors "human rights" violations by se iurityI forces. The HRC (including the military) and their changing positions and alli should be given even greater powers to police and prosecute ances, the points at which different kinds of pressure would the military in the region. Converg nce states: be most effective, and the main options for proceeding. Such "Western Hemisphere countrier should expand the re assessments require continuing consultations across the polit sources available to the lnter-Amer'can Commission on Hu ical spectrum and among many different sectors of society." man Rights and the associated Court and Institute, and vigor Therefore , this institution must "have the capacity to ously pursue the findings and reoommendations of these gather and analyze information on countries where the consti agencies. Governments and multilateral institutions should tutional order has been swept aside or is under siege .... also give careful attention to the r ports and recommenda During a period of crisis, it should be able to draw on a tions of the many credible non-go ernmental organizations wider, previously organized network of academic and policy professionally monitoring human r·ghts . Such actions could experts ....At other times, staff would be responsible for help diminish the violence and hUlpan rights abuses perpe monitoring democratic progress in the Americas and for in- trated by Latin American security fbrces." EIR January 8, 1993 I International 49 I citizen accused of running afoul of U.S. laws. Dr. Alvarez Machain Case This "doctrine" was first employed against General No riega in December 1989, in a military invasion which claimed the lives of thousands of innocent Panamanians and wreaked untold havoc on that nation. But the doctrine was only for mally turned into law in June ,1992, with a Supreme Court decision on the legality of the! Alvarez Machafn kidnaping following a challenge from Jucte Rafeedie. Thornburgh's kidnapers Since then, it has been foll 50 International EIR January 8, 1993 by Silvia Palacios and Lorenzo Carrasco Report from Rio The end of the Collor farce I as head of state" ColIor led a gang of Having rid themselves of Colior de Mello, Brazilians must now thieves in lootin� the public treasury while keeping the immense majority undertake to chart an opposing policy course. of the Brazilian population under the worst conditions of economic aus terity. The final and long-awaited deci sion of the Senare following its mara ernando Collor de Mello's resig in supersonic military jets, driving thon session of Dec. 29 through dawn Fnation from the presidency Dec. 29, around in tractor-trailors, and racing of the 30th, was to findCollor guilty. after having exhausted all the legal speedboats, the country was suffering As a result o£the Senate trial, Col dirty tricks up the sleeves of his law the worst assault on its sovereignty in lor loses all political rights in Brazil yers, put a welcome end to the politi history. During two and half years of for eight years. But this is not all. At cal farce that had put the reckless ad a Project Democracy government: torney General Aristides Junqueira is venturer into the driver's seat of the • the state security apparatus was readying crimirtal charges against largest country and most important destroyed; Collor, which could take the former economy in Ibero-America. • efforts were launched to dis President directly to jail, where he Collor formed part of a crop of mantle the Armed Forces; may find himself sharing space with Ibero-American Presidents elected by • the "internationalization" of such generous colleagues as his for means of nearly identical multimil Brazil's strategically key Amazon re mer campaign treasurer Paulo Cesar lion-dollar publicity campaigns spon gion was begun, placing Brazilian ter Farias, who was at the center of the sored by the Anglo-American estab ritorial integrity at risk; corruption scandal that eventually led lishment, for the purpose of defending • the country imposed upon itself to Collor's downfall. what it calls Project Democracy. That a devastating "technological apart Perhaps the most tragic aspect of project amounts to the intended de heid" against ongoing research and the Collor de M¢llo phenomenon has struction of national sovereign institu development in sensitive high-tech yet to be revealed. But for now, the tions across the Ibero-American con nology areas; magazine Veja has devoted its mid tinent. • the public sector was virtually December issue to an interview with Such was the overwhelming for crushed, leading to the near-bankrupt the former President which paints a eign backing that Collor de Mello re cy of such lucrative companies as Pe devastating portrait of the gloomy ceived, that he became convinced, trobras; mental state of a person destroyed by virtually overnight, that he was above • private companies were driven uncontrolled greed and ambition. At the law-human and divine-and that into bankruptcy, causing a collapse of once cold and delirious, Collor makes by some invisible hand he had been one-fourth of all economic activity in every effort to pide his guilt, while led into the ranks of the illusory First the country; and above all, denying the most overwhelming evi World. One of the first signs of such • the country was thrust into an dence against him. The portrait is of lunacy was revealed when Collor an accelerated moral collapse. a ghost of a President still trying to nounced that the country, whose For any one of these crimes, Presi maintain the rites and rituals of power. Achilles' heel is its deficient energy dent Collor de Mello would merit con Collor de Mello's resignation was supply, should call a halt to nearly all viction in an impartial trial of public received by the entire nation with re of its energy projects, especially nu responsibility for crimes against the lief and joy, as well as with hope and clear energy, because technological dignity of the presidency, as estab expectation that the country may now advances in the near future would lished by the Brazilian Constitution. chart a course diametrically opposed allow energy to be stored on computer Indeed, the overwhelming majori to the suicidal one the former Presi disks. ty decision of the Senate fo llowing the dent had imposed upon it. The end of While President "Indiana Jones" reading of Collor's resignation mes the Collor de Mello farce may now Collor (as he was baptized by George sage was to proceed with an impeach also precipitate the finaldays of those Bush, who one year ago described his ment trial and to condemn him for sibling regimes begotten in the womb Brazilian counterpart as "my kind of these crimes, in light of the fact that it of Project Democracy, and suckled by guy") was flying around the country has already been demonstrated that, the International'Monetary Fund. EIR January 8, 1993 International 51 AndeanReport by Gretchen Small Shining Path steps up war in Peru ment and tlhe labor movement. The Behind both the resurgence of terror and growing military unrest latter was �ready enraged at the gov lies the government's pro-IMF program . ernment's oommitment to IMF auster ity, and Huillca had led a march against these economic policies the day before he was killed. Shining Path's gambit failed, ftera several-month period of dis year on its foreign debt. however, when police arrested six of orientaA tion, the Shining Path terrorists How these two problems feed the terrorists who had participated in launched a series of politically pin each other was brought home by Shin the attack,' and they were, indeed, pointed attacks in Lima during the last ing Path's December attacks. found to be Imembers of Shining Path. half of December, their first signifi The most politically devastating But instead of being able to ad cant military acts since the police and was the assassination Dec. 18 of Pe vance against the enemy, the Fujimori Army succeeded in capturing not only dro Huillca, secretary general of government now faces growing fac chieftainAbima el Guzman, but most Peru's largest trade union group, the tional confliict in the military. A for of the Maoist gang's Central Commit General Labor Confederation eign diplonltat based in Lima went so tee last September and October. (CGTP). Huillca's murder exhibited far as to pre�ict to the Miami Herald of Whether the weakened Shining all the characteristics typical of Shin Dec. 21 that "there is a real possibility Path has been able to reconstruct its ing Path's modus operandi: A seven that the institution [of the Army] will command structure sufficientlyto sus or eight-person "annihilation squad" collapse." i tain this renewed military offensive in machine-gunned the labor leader and Here the U.S. State Department the capital for any length of time re his son as they lefttheir home. The son has played ia particularly dirty role in mains to be seen. The problem is, was gravely wounded, while a woman encouraging dissension inside the mil however, that the governmentof Pres leader of the squad delivered the coup itary, charging that Fujimori's war ident Alberto Fujimori has run up de grace against the labor leader at against ten10rism violates "democra against two critical constraints on its point-blank range. cy" and therefore has isolated Peru ability to prosecute the war; these Shining Path had circulated from its allies. But the only reason must be overcome if it is to carry out leaflets threatening Huillca in the State Deparitmentmeddling has gotten its intention to eradicate terrorism weeks before his death. But Huillca's as far as i� has, is due to spreading from Peru by 1995. friend, former President Alan Garcia, anger withip the military over the ab The first, is the need to take apart and the CGTP immediately issued solute pov�rty into which IMF poli the aboveground political and intelli statements denying that Shining Path cies have driven the military and pop gence infrastructure without which had killed him, and blamed the gov ulation alike. Shining Path and the other terrorists ernmentin stead. The rebellion in military ranks could not function. These include the Garcia, who from his exile in Co against the�e economic policies did fifthcolumn which dominates the "hu lombia has been coordinating closely lead Fujim�ri to send IMF managing man rights" groups, and has heavily with the U.S. State Department in its director Michel Camdessus a letter penetrated much of the press and the war against the Peruviangovernme nt, shortlybefore Christmas advising him so-called legal left, largely untouched accused President Fujimori of having that Peru ntiededmore time to "evalu by the government's crackdown thus personally ordered Huillca killed. The ate" whether the terms of the 1993-95 far. CGTP, founded and controlled by the accord negptiated with the IMF "fit The second is the government's Peruvian Communist Party, went one within the �rincipal medium-term na continued commitment to the brutal step further, demanding that a U.N. tional objedtive, which is the defeat of anti-growth policies of the Interna commission come to Peru to investi terrorism and national pacification." tional Monetary Fund (IMF). Among gate their charge that the government No sign h$ appeared yet, however, other things, this insane course has ordered the killing. that Fujimori has faced the fact that leftthe governmentso bankrupt that it The Garcia-CGTP line played only a break with IMF policies, and the is sending its soldiers to the battlefield right into the hands of Shining Path, adoption ot a national war economy, bootless and without ammunition which sought to use the murder to set will generate the economic resources while paying out $750 million last off full-scale war between the govern- and moralelrequired to win the war. 52 International EIR January 8, 1993 by CarlosWe sley PanamaRep ort POWs score prelate's 'complicit silence' posts for followi g the law; of the cor Three years after the invasion, the U.S.-installed government ruption of prose��utors. " Many of the prisoners have b�come gravely ill dur refuses to release prisoners of war. ing their incarcerrtion, "but they have been inhumanel� prevented from re ceiving hospital �ttention." Pope John P Ul II, they write, in sists that mercy i the beginning ofjus n the eve of the third anniversary known to evade justice"-a reference tice. "Mercy an�, forgiveness are not ofO the U.S. yuletide invasion of Pana to those who served in the Panamani opposed to justi¢e, they demand it," ma, the scores of Panamanian civil an governmentalong with Gen. Man says the pope, aqcording to the letter. ians and military personnel who were uel Noriega, a POW of the United The authors also *mind the Panamani taken prisoner by the invading forces States government. an primate that 'fthe hierarchy of the and who remain jailed, sent an open The writers remind McGrath that Panamanian ca OliC Church cannot letter to Archbishop Marcos McGrath they were all taken prisoner at the time be perceived as t ing sides, as sectari demanding that the Panamanian Cath of the invasion. "Besides the thou an, as siding wit the oligarchy, but as olic Church's hierarchy act in accord sands leftdead and wounded, during a source of inspi tion of the causes of with the tenets of Christian charity. our captivity our human rights were all Panamaniansf,.. McGrath, along with former Pan systematically violated, as were those Finally: "w re convinced that amanian President Nicolas Ardito of thousands of other Panamanians by the truth will m� e us free and that Barletta, was one of the co-authors of the U.S. Armed Forces on behalf of someday it will be recognized how the 1986 Inter-American Dialogue the government sworn in at a [U.S.] much injustice a inst us is being done proposal to selectively legalize drugs. military base. The Catholic Church in this country, i the name of a poorly More recently, he and Barletta (whose kept a complicit silence then." It also understood Dem cracy." presidential campaign was financed remained silent "when the hostilities Lending co firmation to their by the Colombian cocaine cartels) ceased, and in open violation of the charges of prosl cutorial corruption, signed on to the Inter-American Dia III Geneva Convention of Aug. 12, on Christmas E e, Attorney General logue's blueprint for the elimination 1949 regarding Prisoners of War, we Rogelio Cruz wa� firedand placed un of national sovereignty, Convergence were handed over to the Panamanian der arrest on dru�-related charges. and Community: The Americas in authorities although there were no The lnterna�ional Federation of 1993 (see article, page 46). charges pending against us." Journalists has ajnnounced that it has In their letter, published on Dec. Those charges were concocted lat asked the Unit�d Nations Human 13 by La Estrella de Panama, the de er' when the U.S.-installed regime Rights Commissjion in Geneva to in tainees accuse the regime of drug used the media to solicit people to ac vestigate the riolitical persecution bankers named as the government of cuse the prisoners of crimes, say the against several Panamanian jour- Panama by George Bush, of absolute prisoners in their letter. "The hierar nalists. , disregard for human rights and the chy of the Catholic Church in Panama Among thos�I being persecuted is rule of law. The Panamanian POWs kept silent in the face of all of that," newscaster Juliq Ortega, who is ac are particularly upset by the Church and remained silent "when our fami cused of the "cOljnmon crime" of "un hierarchy's opposition to a bill being lies were persecuted by the national lawful possessi�n" of government considered by the legislature to am authorities. " property. Alth0tlgh there are no wit nesty the victims of political perse The detainees note "that justice nesses against Ortega, and despite the cution. cannot be dispensed by a system that fact that the pr�secutors admit that McGrath's auxiliary bishop, the has proven not to have the moral au most of the itemslin question were tak Spaniard Jose Luis Lacunza, attacked thority to dispense it." The Church en by the invadilng U. S. troops, and the proposed amnesty has "inoppor acts as if it were unaware ofthe virtual that he never "pe sonall y received" the tune." It makes no distinction between circuses that are organized when pris items, still the U�.s.-installed govern "political and common crimes," he oners are called to testify; "of the lack ment insists that Ortega is criminally of judicial independence; of the "responsible" �nd must be im- said, and "it goes too far in allowing ' the worst delinquents this country has judges that have been firedfrom their prisoned. ElK January 8, 1993 International 53 InternationalIntel ligence i The action has drawn an angry response tion part�, went from 9.3% to 8.1 % In Mon- French Socialists in Mexico, including from the government. za, anothFr northern city, the DC got 16.8% in 'damage control' Speaking before the meeting of OAS foreign ( - 19%) 'j the Socialists 5.5% (-12%), the ministers in Wa shington, D.C., Mexican League f .l% (+28%), the PDS 10.3% Foreign Minister Fernando Solana warned Until the national elections on March 18, the (- 1%). I that Mexico "will not subject foreign policy leading circles of President FrancroisMitter The �overnment parties collapsed also to foreign definitionsor to democratic con rand's Socialist Party are engaged in efforts in the squthern city of Reggio Calabria, cepts. In no way will we support modifica to "control the damage" to the party, ac where v es went to the fascist MSI, which tions in the bases of the OAS that relegate cording to reports from senior Socialist got 16.7 (+10.7%). to it nearly supranational powers. While A no sources. The Socialists are trying to pre linear phenomenon is the rise of Mexicans recognize · the necessity of im La Rete , the serve at least 60% of their present number party led by former Palermo proving the political systems of many of our mayor oluca of pari iamentary seats, though this itself Orlando, born as an anti countries, we consider that it is the exclusive mafia m vement but may be overly optimistic, according to in soon developed as a responsibility of each people to decide how nationwi e anti-establishment party. La formed observers. it will do so." Rete w0 8.2% in Reggio Calabria, 6.5% Knowing the extraordinary dissatisfac 4 He warned that the proper job of the in Monz , and 5.5% in Varese, more than tion with Socialist policies among the elec � OAS is to aid development, to attack at their dOUbling itS former results. In November, torate, the government has not even sought root the most urgent and lacerating problems Orlando ad sent a message of support to the to gain votes and hold its rule through short of the region, "without an interventionist founding� meeting of the "Solidarity" civil term Keynesian public project spending. character." rights m vement in Germany (a movement They realize it would be "wasted," with the The Mexican Senate and House on Dec . launched by Helga Zepp-LaRouche, leaders opposition conservatives reaping the politi 16 rejected the modification of the charter. of the U ..civil rights movement, and other cal credit. Recent press headlines around the The Senate passed a seven-point resolution, internati nal human rights advocates). An banks' need for as much as an 80 billion affirming national sovereignty as a funda other R e representative, Sen. Carmine franc S. $14. 55 billion] state "bailout" for l u. mental principle, and insisting that the Mancuso had previously endorsed Lyndon their bad real estate loans, are reportedly a norms of the international order are based LaRouch in his campaign for President of cynical effort by the Socialists to salvage on an accord among members of the com the Unit States. their financial base before turningover pow munity of nations, but which requires the er to a conservative or liberal regime in unrestricted respect for the sovereignty and March. independence of each State. For some weeks, Mitterrand's govern The House of Representatives likewise Bosn n castigates ment has had a consensus on key aspects of rejected any attempt to modify the OAS foreign policy with the liberal UDF party of or ind fe rence charter in a way to make the body a judge t if former President Valery Giscard d'Estaing. over member states, or to turn it against the The centerpiece of this consensus, intended "Bosnia as become the prism in which all essential principles of international law, to remain in place after March 18, is the tensions e reflected," warnedBo snian For such as non-intervention and the self-deter importance of maintaining the Franco-Ger eign Mi 'ster Dr. Haris Silajdic, at a press mination of peoples. man core relationship inside the European conferen e at the Carnegie Endowment for Community. Otherwise, the Socialists are Internati nal Peace in Washington, D.C. on preparing for at least two years out of power Dec . 18. The world "does not fully under until the 1995 presidential elections. Separatists win in stand the impact of destroying such a suc cessful el of cultural civilization as Bos several Italian cities nia is," h said. OA S changes its charter "We arnedthose who either do not care The separatist Northern League won elec or do no� know, that Bosnia is going to be over Mexico's protest tions in several Italian cities on Dec . 13-14. paid hea ily [sic]. They thought it was far The voting involved about I million voters. fetched, t's just a small place; it may be a The Organization of American States on The government parties collapsed: In small pI e, it's only 5 million people, but Dec . 15 voted to amend its charter, as pro the northern city of Varese, the Christian then, it c ies a great weight, historically, posed by Argentina and the United States, Democracy (DC) went from 29.9% to civilizati nally, and culturally. We warned to allow for suspension of member states 17.7%; the Socialist Party, the DC 's main about tha , and now the time is coming when charged with violating democracy. The vote partner, went from 15.6% to 4.2%. The we can s y, 'They did not listen to us, and was 30 to 1, with Mexico opposing , and one Northern League jumped from 20.8% to because �f Bosnia, or encouraged by Bos abstention. 37.3%. The PDS , the main national opposi- nia, therq are dangerous movements in Eu- 54 International EIR January 8, 1993 • THE BEI.JINGForeign Ministry said on Dec . 2J8 that "Iraq's unity and territorial inte�rity should be respect ed." A minisutY spokesman, asked to comment on the downing of an Iraqi rope, in Asia, in the former Soviet Union.' " Iran as the moral equivalent of war," and plane by aU. fighter over southern He further underlined that 128,448 per that, therefore , Iran should consider follow $. Iraq, replied, "The Chinese govern sons have been killed in Bosnia-Hercegovi ing the example of China, "where family ment . . . do�s not want to see the na as a result of the war-a number equiva size is dictated and its violation is punish situation in �e Gulf region become lent to "an attack by an A-bomb." "I was able. If the Iranian government does not tense and me>re complicated once asked the other day," he continued, "how want to apply downright coercion in this again." many children died in Bosnia, and I an respect, it should at least intensify the mes swered: all of them. Those who are really sage so that parents who indulge in bal • SOUTH kOREA'S President dead are dead, sometimes cruel deaths; but looning the size of their family would feel elect, Kim Y ng-Sam , has pledged those still living are not children any more, pressure around them." To this end, the edi � to bring the �.N. to bear on Seoul's because they experienced the rapes of their torial endorses the U.N. Population Fund J "nuclear impai;se"with North Korea. mothers, deaths of their friends, sisters, and 1993 conference as a "positive step in con "I plan to offi Liberal democracy and the end of mankind I by Mark Burdman this book had become a chief eXpression, has become untena ble. An anti-Iiberal-democrac)!backlash has begun sweeping The End of History and the Last Man Ibero-America, eastern and central Europe and the former by Francis Fukuyama U.S.S.R., and parts of Africa �nd Asia, while the nominally Free Press. New York. 1992 liberal-democratic bulwark n�tions of western Europe and pages. hardbound. Av on. New York. 418 $24.95; North America are swept wit� profound social, economic, 1993. paperb ound. $12.50; and moral crises that have call�d into question the axiomatic Hamish Hamilton. London. 1992. hardbound. premises that they have ten¢d to accept over the recent £20 years. What has become obviou$ to millions of people across A reader of The End of Historyand the LastMan should have the globe, over the course of 1992, is that liberal democracy, immediate sympathy for those civilian and military forces as meant by Fukuyama, his State Department cohorts like in Venezuela. Peru, Brazil, and other countries that have U. S. representative to the Or�anization of American States mounted resistance over the past year to so-called liberal Luigi Einaudi and by the "Project Democracy" mob more democracy. The world view in Francis Fukuyama's book is generally, does not have the b�nevolent connotation in prac abhorrent, heralding the end of man as a moral and creative tice, that the media like to Qonvey by the words "liberal species, and should be opposed by all means consistent with democracy. " Liberal democraqy in practice has become asso the Augustinian-Christian notion of "j ust war." ciated with a new totalitarianism, a modem-day variant of The End of Historyand the Last Man is both a book and classical fascism, in which na ons and peoples are held sub a phenomenon, albeit of a negative sort, and a review of it ject to the arbitrary whims of, the International Monetary must face an unavoidable paradox. On the one hand, it was Fund and the oligarchical elit4!s who control the policies of certainly one of the most talked-about books of the past year the IMF and the banks. I internationally. This reviewer attended three different con The End of History andthe Last Man has become neces ferences in Germany and Austria, at which discussions of sary reading for those seeking to understand the mind-set of the "Fukuyama thesis" were prominent on the agenda, as "Project Democracy" and thei architects of the "new world putatively representing the thinking in Washington in the era order"; there can be little do�t that it is being decreed re of an emergent "new world order." quired reading on university �ampuses both in the United Yet during the same year, the mood of triumphal ism States and in many countries �round the world. At the same about the "irreversible historical victory of liberal democracy time, it shows what it is th�t more and more people are over all possible alternatives," which followed the Gulf war rebelling against. even if thqse rebelling may never have and then the collapse of the Soviet Union, for which mood heard of Fukuyama or know V{hathe has to say. Hence, The 56 Books EIR January 8, 1993 End of Historyand the Last Man has, to some extent, become have leftonly one competitor standing in the ring as an ideol a curious and perverse metaphor for the year of 1992 as a ogy of potentially universal validity: liberal democracy, the whole. As for 1993, the prospect is of a battle between two doctrine of individual freedom and popularsovereignty .. .. trends: the rejection of liberal-democratic tyranny, vs. the Indeed, the growth of liberal democracy, together with its promulgation, including by leading forces within the incom companion, economic liberalism, has been the most remark ing Clinton administration, of a neo-imperialist doctrine that able phenomenon of the last 400years . . . . There is a funda upholds the "right of intervention to restore democracy" into mental process at work that dictates ia common evolutionary nation-states whose sovereignty is declared "limited." pattern for all human societies-in short, something like a Universal History of mankind ini the direction of liberal The State Department view democracy. . . . If we are now at � point where we cannot In identifying Fukuyama's production as important from imagine a world substantially diff¢rent from our own, in a critical-clinical standpoint, this reviewer nonetheless feels which there is no apparent or obviou$ way in which the future pangs of guilt that EIR readers might be motivated to obtain will represent a fundamental improvement over our current the book and subject themselves to the agonies of reading it. order, then we must also take into consideration the possibili Not only is the content of Fukuyama's argument abhorrent, ty that History itself might be at an end." but the argumentation is so confused as to make the book That mouthful is bad enough, but it gets worse when one often unreadable. It is the work of an intellectual charlatan, takes into account what the commeiltaries generally ignore, who spends a good deal of his time either outrightly lying, namely the seoond half of the bodk title, "the last man," or adopting pseudo-intellectual postures which betray a com which is a term taken directly from :the 19th-century Swiss plete misunderstanding of the subject he presumes to be ex German philosopher and forerunner of fascism Friedrich pert in. Nietzsche. Basically, what it signifies, as per Nietzsche, is Fukuyama is an important charlatan. He is former deputy that once liberal democracy of the form envisioned by Hob director of the U.S. State Department's policy planning staff bes, Locke, Hegel, and others takes hold, the human type and has been patronized by some of the chief institutions and produced by that culture will inevitably be a satisfied, smug ideologues of the American "neo-conservative" movement. bourgeois, or what in more recent parlance might be called These have included the RAND Corp. think-tank in Santa a "bored yuppie." That "last man" can, in Fukuyama's analy Monica, California; the recently deceased Prof. Allan Bloom sis, either revert "peacefully" to a state of an "animality in of the John M. Olin Center for Inquiry into the Theory and harmony with nature," or, as per Nietzsche's own prefer Practice of Democracy at the University of Chicago (the ence, produce a counter-reaction, that brings about wars, related John M. Olin Foundation is one of the prime funders chaos, the destruction of all Christian values and morality, in the United States of activities linked to Project Democra and the emergence of the "(jberm�nsch." But either way, cy's National Endowment for Democracy); and erstwhile Nietzsche 's "last man" is the ultimate product of "the end of Trotskyist Irving Kristol of the American Enterprise Insti History" and the triumph of "liberal idemocracy. " tute, whose National Interest magazine published the origi Were this analysis to be written as a warning, Fukuya nal Fukuyama "End of History" article which generated the rna's book might have merit. But it is not. Fukuyama is controversy that led to the writing of the book-length version. lauding what he asserts to be the inevitable end result of a Some months back, Kristol featured Fukuyama as a speaker so-called historical process, which :ends up in a world that at an AEI-sponsored conference on the importance of "Amer is Nietzschean. Indeed, Fukuyama ihas a shameful, slavish ican popular culture" as an expression of the liberating effects fascination with the man who, m(j)re than any other, has of "American-style democracy" worldwide. inspired fascist and other anti-Christian, "Aquarian Age" movements in this century. Fukuyama's "new world order" The oligarchical historical line is the entry-point to the "new Dark Age." , The smell of fascism is in much of what Fukuyama The slavishness to Nietzsche is part'of a more general writes. The predominant thesis draws upon the intellectual slavish loyalty to a philosophical and scientific tradition, tradition that produced fascism. which is Gnostic in content, that includes Francis Bacon, The first halfof the thesis is what the first halfof the book Rene Descartes, John Locke, Thomas Hobbes, Immanuel title says: "the end of history" (or "History," with a capital Kant, G.W.F. Hegel, Friedrich Nidtzsclte; and the modern "H ," as Fukuyama prefers it, in the supposed tradition of day professed philosophers Alex.nd�' ;Kojeve and Leo Hegel and Hegel's 20th-century epigone Alexandre Kojeve Strauss. Here is where the charlatanry!�nd fraud enter in of France). Most commentaries on Fukuyama have only force. Fukuyama presents this oligQ1tchicltt.line of philosoph drawn attention to this part of the thesis. The essence of it is ical-scientific thinkers as if they represeht the only tradition that: of thought in history, while willjullyj Ol1dltfn'gfrom his heavi "As mankind approaches the end of the millennium, the ly footnoted tome any mention of $uclt;figures as Nicolaus twin crises of authoritarianism and socialist central planning of Cusa, Gottfried Wilhelm Leibni21, and-Friedrich Schiller, EIR January 8, 1993 Books 57 who represent the opposing Christian republican tradition. conception of the human race, which is rather a picture of an Hence, the whole book is fallacy of composition accom un-human, or anti-human race.1 plished by omission. A great deal of his writin� is devoted to the overriding To the same point, the man who has revived the Christian importance in man's make-up 58 Books EIR January 8, 1993 True republican cultures, including in societies where to capture the highest aspirations 9f an era . . . for there Christianity may not be the predominant religion among the would be no new eras and no part�cular distinction of the population, are based on fostering such capabilities in all its human spirit for artists to portray. They could write endless citizens. This is the opposite of the eclectic, anomic "fulfill poems on the beauties of springtinie or the graceful swell ment of the need to be recognized" for which Fukuyama lauds of a young girl's breast, but they tould not say anything "liberal democracy" as the end achievement of "History." fundamentally new about the human situation." In Kojeve's own words, "philosophy or the seatch for discursive Wis 'What disappears is Man' dom" would "disappear" among "these post-historical an From such psychopathological premises, Fukuyama, not imals." surprisingly, becomes hypnotized by the writings of Nietz Sinking to the depths of swini�hness, Fukuyama then sche, as we indicated above. Without going through all the writes: "The revolutionaries who blhtled with Ceausescu's gyrations this involves, we let Fukuyama speak, about how Securitate [secret police] in Romania, the brave Chinese stu he envisages the "end of History" and the arrival of the "last dents who stood up to tanks in Tianan�en Square , the Lithua man" to evolve. nians who fought Moscow for their ;national independence, As Fukuyama blatantly states, citing his adored mentor the Russians who defended their Parliament and President, Kojeve, the satisfied, smug "last man" will likely revert to the were the most free and therefore the most human of beings. stage of an animal. He quotes Kojeve: "The disappearance They were former slaves who proveid themselves willing to of Man at the end of History, therefore, is not a cosmic risk their lives in a bloody battle to frde themselves. But when catastrophe: the natural World remains what it has been from they finallysucceed , as they eventua�ly must, they will create all eternity. And, therefore, it is not a biological catastrophe for themselves a stable democratic society in which struggle either: Man remains alive as animal in harmony with Nature and work in the old sense are made uqnecessary, and in which or given Being. What disappears is Man properly so the possibility of their ever again bfing free and as human called ..." (emphasis in original). as in their revolutionary struggle had been abolished." The Fukuyama's comments immediately following give a reader is then referred via footnote, to a quote from Leo flavor of the amoralismlimmoralism that permeates page Strauss, the late University of Chic,go "conservative" phi afterpage of his book: losopher and regular correspondent of Kojeve: "The state "The end of history would mean the end of wars and through which man is said to becom¢ reasonably satisfiedis, bloody revolutions. Agreeing on ends, men would have no then, the state in which the basis of �an's humanity withers large causes for which to fight. They would satisfy their away, or in which man loses his hu�anity. It is the state of needs through economic activity, but they would no longer Nietzsche's 'last man.' " have to risk their lives in battle. They would, in other words, But the swinish Fukuyama has rorgotten a few things. become animals again, as they were before the bloody battle The students in Tiananmen, like the iLithuanians and others, that began history. A dog is content to sleep in the sun all fought their fight to the sounds of *ethoven's Ninth Sym day provided he is fed, because he is not dissatisfied with phony, which either blared from loudspeakers or was played what he is. He does not worry that other dogs are doing better and sung by orchestras and choruse$ supporting the revolu than him, or that his career as a dog has stagnated, or that tions themselves. If, today, a demoqllized Lithuanian popu dogs are being oppressed in a distant part of the world. If lation is voting communists back in power, it is not because man reaches a society in which he succeeded in abolishing the promises of liberal democracy hlj.vebrou ght them "satis injustice, his life will come to resemble that of the dog. faction," but because the ravages o� liberal economics have Human life, then, involves a curious paradox: it seems to destroyed their society'S ability to reproduceth emselves. If, require injustice, for the struggle against injustice is what in Lithuania, or in China, or in Ro�ania; the revolutionary calls forth what is highest in man." spirit is rekindled, the sounds of Beethoven's Ninth Sympho Here is not the point to speculate what my pet Labrador ny might be heard again, because, 'fvhether the popUlations retriever, could she speak, would say about this idiotic neo in question knew it at the time as a c�nscious fact, they were Pavlovian misrepresentation of the beloved canine species. fightingfor republican societies, in Which man's worth as an We allow Fukuyama to continue: "Unlike Nietzsche, Kojeve "inner-directed" individual fightingj for 'Goo'skingdom on did not rage at the return to animality at the end of history; earth, would be realized. i . rather, he was content to play out the rest of his life working As cited above, Fukuyama has a�propriatedan important in that bureaucracy meant to supervise construction of the idea for the wrong purposes: Indee�, "tile ' struggle against finalhome for the last man, the European Commission. In a injustice calls forth what is highest i* man." The problem is, series of ironic footnotes to his lectures on Hegel, he indi the name for injustice is Francis Fhkuyama, and "what is cated that the end of history meant also the end of both art highest in man" would mandate a reJentfhis.struggle to rele and philosophy, and therewith, his own life activity. It would gate "State Department man" to the dustbtnof history where no longer be possible to create the great art that was meant he belongs. , :;' EIR January 8, 1993 Books 59 �TIillNational Bush pardons 'politi al' targets but not L ouche by Jeffrey Steinberg On Christmas Eve, President George Bush issued a statement officers Clair George, Dewey Claridge, and Alan Fiers. Lt. which read in part: "The prosecutions of the individuals I am Col. Oliver North and Adm. John Poindexter, two other pardoning represent what I believe is a profoundly troubling principals in the push for the LaRouche railroad, were not development in the political and legal climate of our country: included on the pardon list b cause their convictions have the criminalization of policy differences. These differences been overturned by appeals co rts. should be addressed in the political arena without the Da Although the White House claimed that the pardons were mocles sword of criminality hanging over the heads of some not issued to Gen. Richard Sec rd , Albert Hakim, and Thom of the combatants .. .. as Clines, who were convicte in the Iran-Contra affair, be "In recent years, the use of criminal processes in policy cause they "profiteered" fro their secret parallel govern disputes has become all too common. It is my hope that the ment activities, sources have old EIR that this trio worked action I am taking today will begin to restore these disputes behind-the-scenes for the Cli ton-Gore campaign and that to the battleground where they properly belong." , this was the real reason they re left off Bush's pardon list. The statement'accompanied the announcement that Presi Hakim has been known to be an Israeli Mossad agent since dent Bush was issuing "executive clemency" to 26 indi his firstinvolvement with Sec rd in Iran in the mid-1 970s. viduals. Were Bush an honorable man and did his words have real The Weinberger case meaning, Lyndon·H. LaRouche, Jr. would have headed the Establishment news cover ge of the Bush pardons largely list of those graritdd presidential pardons. No other case in focused on the case of for r Defense Secretary Caspar recent memory more clearly reflectsthe "criminalization of Weinberger, who was indicat d only recently by Iran-Contra policy differences'" than that of LaRouche, who has been Independent Counsel Lawre e Walsh. Weinberger's trial unjustly sitting in federal prison since the week of Bush's had been scheduled to begin 0 Jan. 5, 1993. 1989 inauguration. For four years, Bush personally sat on Weinberger's indictment as one of the most controver crucial national" �ecurity files that would have proven sial of the Walsh action� of h s six year investigation of the LaRouche's inno(!ehce. Those same files would place the Iran-Contra affair. There is n question that evidence shows onus of criminal' aetivity on senior officials of the Reagan that Weinberger was consist ntly opposed to the policy of and Bush administrations, including top officialsof the White swapping arms for hostages ith the Ayatollah in Iran, and House and the Department of Justice, as well as such private was hardly an enthusiast of he Contra aid program. Ac parties as Henry Kissinger and the Anti-Defamation League cording to Weinberger associ tes. he remained in his post at of B'nai B'rith. 1j!,: the Pentagon despite those di. greements with White House Instead, Busft"i� sued pardons to four of the leading Iran policy because he believed t ere were "big)!er fish to fry" Contra defendantsiwho were part of the very apparatus that than the Sandinista regime or 'reeing the American hostages joined in the rail¥6ading of LaRouche and his associates. in Lebanon. Although initia ly skeptical, Weinberger be These individuafs)�ere former State Department officialEl came a champion of the Rea an administration's Strategic liott Abrams, an avowed LaRouche hater, and former CIA Defense Initiative and focuse his effortsas secretary on the 60 National EIR January 8. 1993 primary strategic conflictwit h the Soviet Union. months for a Weinberger pardon. IIljfac t, Clark and a group In fact, observers of the Walsh probe believe that Weinb of California and East Coast "Reag�nauts" had broken with erger's indictment was only handed down after all other ave Bush on the eve of the presidential elections. While they had nues of inquiry leading to the role of Bush in the Iran-Contra many reasons for opposing Bush's reelection, the Weinberg scandal were shut off due to White House and related cov er indictment represented the last straw, according to one erups. Bush was scheduled to be called as a witness in the well-placed Republican. Weinberg�r allies report that the Weinberger trial, and this would have been the first ques White House knew at least two months in advance that Walsh tioning of Bush about his role in the Iran-Contra fiasco. The was considering an indictment of the former defense secre Weinberger pardon was in effect a "self-pardon" by Bush, tary. Despite furtive pleas, the Pre�ident made no effort to enabling him to once again side-step any questioning about prevent that move, as he was widely believed to have done his role. Following Bush's pardons, rumors began circulating in the case of his own former national security aide Donald around Washington that Bush might resign early in order to Gregg. allow his "successor," Dan Quayle, to grant him a formal The Weinberger indictment not !only sealed Bush's fate pardon. in the eyes of a powerful wing of th� GOP. Walsh's election In fact, the pardon decision came only after Walsh's eve reindictment of Weinberger, complete with damning new office had been informed on Dec. 11 that there were numer documents showing Bush's role in pushing through secret ous typed transcripts of Bush's personal observations about arms shipments to the Iranians, was an important factor in the Iran-Contra scandal between November 1986 and the Bush's electoral defeat. The momentum that the Bush cam 1988 presidential election that had not been turned over to paign had built up in the to-day periCi>dleading up to the Oct. the special prosecutor. Walsh's office received a telephone 30 reindictment-when pollsters weredec laring the election call from an unnamed White House staff attorneyon Dec. 11 "too close to call"-was completely lost when the President alerting them to the existence of the Bush notes. Asked by was forced to appear on nationwide TV sheepishly defending the Washington Post why the White House staffer had come his Irangate actions. forward with the damaging new information, Walsh could If, as some Iran-Contra watchersinsist, Walsh was really only speculate: "You have a disintegrating staff. Some peo after Bush's scalp, he succeeded in helping to stymie the ple may be more willing than others to cover. " President's reelection comeback. And that may have been (Washington sources have told EIR that some of those far more of an accomplishment than an indictment. notes had been turned over to Walsh's officebut that a "mole" in the special prosecutor's officehad buried them. The Dec. Bush a 'subject' of Walsh p�be 11 call, according to this version of the events, alerted Walsh "Executive clemency" is a presidential prerogative that and Weinberger prosecutor James Brosnahan to their exis cannot be reversed. However, it nqw appears that with the tence.) Dec. 11 revelations about the Pre,ident's 1986-88 notes, soon-to-be "citizen Bush" is not off the hook. Walsh, in a Did Walsh 'get his man' after all? hail of angry press statements folloWing the Christmas Eve The decision to pardon Weinberger and the Iran-Contra pardons, announced that Bush is o�ce again a "subject" of players gained momentum after Walsh became aware of the his investigation. I Bush memos on Dec. 11. According to a Dec. 30 Evans and It is also likely that several cong�ssional panels will take Novak column in the Washington Post, Bush chaired a series up the Bush role in Iran-Contra anq will also scrutinize the of Oval Officemee tings beginning on Dec. 18 to discuss the performance of the Walsh team. I pardon. Reportedly, Vice President Quayle, his chief of staff There are a vast number of skel�tons in both the Demo William Kristol (a leading pro-Israel neo-conservative), and cratic and Republican closets when: it comes to the foreign White House General Counsel C. Boyden Gray all argued for policy fiascos of the Reagan-Bush era. Nobody, for example, the pardon. Sen. Daniel Moynihan (D-N. Y.) phoned Bush to has seriously probed the guns-for-drpgsprogram at the heart say that he would support a pardon, so long as it included his of the Contra supply operation. Were that Pandora's box to former aide Elliott Abrams. Other congressional Democrats, be opened, some of the beneficiari¢s of the Christmas Eve including House Speaker Tom Foley (D-Wash.) and House pardon, along with North and Bush, might' wind up in federal Armed Services Committee Chairman Les Aspin (D-Wisc .), prison for drug trafficking. were reportedly among them. According to the New York Perhaps the biggest injustice o� all is that LaRouche is Times, these Democrats realize that the Congress badly still sitting in jail. Bush definitelyha4 a point when he decried botched the 1987 Iran-Contra probe and wish to prevent a the "criminalization of policy dispu�es." In the three weeks rehash of "an investigation the Democrats bungled the first remaining in his presidency, he could still redress some of time." the wrongs by granting "executive qIemency" to LaRouche. Long-time Weinberger associate and former Reagan Na It would not "decriminalize" the Iltan-(::ontra affair, but it tional Security Adviser William Clark had been pushing for would free an honest man. EIR January 8, 1993 National 61 Corrupt judge fixes acquittalof 'Kidnapers, Inc.' gang in Virginia In a shocking and blatant act of political corruption, federal was defended by a team of lawyers led by John Markham, Judge Timothy Ellis intervened in the "Kidnapers, Inc." trial the former federal prosecutor! in the LaRouche case, who proceedings to fix the jury and cause the acquittal of former represented Newbold Smith. '(0defend this conspiracy, an Loudoun County Sheriff's Deputy Don Moore and three oth" other LaRouche prosecutor, Virginia's Assistant Attorney ers charged with conspiring to kidnap Lewis du Pont Smith, General John Russell lied, as ekposed by the prosecution, on an associate of political leader Lyndon LaRouche and an heir the witness stand. to the du Pont fortune. It were not surprising that f�deral Judge Ellis acted openly This travesty occurred in federal court in Alexandria, corruptly, even contradicting �is own earlier rulings, at the Virginia on Dec. 31, 1992. last moment, to defend the codspiracy. Another judge in the In response to questions from the jury while they were Eastern District, Judge Albert Bryan, had behaved similarly deliberating, Judge Ellis created a novel and restrictive stan in presiding over the 1988 railroading of Mr. LaRouche and dard of conspiracy that made it impossible for them to render his associates, and in subsequ�nt appeals, as has been docu a guilty verdict. His rulings are in sharp contrast to the very mented in motions filed by Mrl LaRouche's lawyers. broad instruction on conspiracy given to the jury by Judge In response to the jury's r�quest for clarification, Judge Albert Bryan, Jr. in this same court in the LaRouche case in Ellis declared that for anyone Ito be guilty of the conspiracy 1988. to kidnap charge, two or more jof the defendants had to agree This time Ellis's rulings effectively allowed the jury to on a specific common plan tor a way to kidnap; general ignore the contents of hours of surveillance tapes that fea agreement on a kidnaping was,j in the judge's unique determi tured the would-be kidnapers plotting the kidnaping and dis nation, not sufficient reason tolfor a guilty verdict. cussing contingencies, including the possible murder of Lew The hours of tapes played for the jury featured numerous is should the plans go awry . discussions of plans for kidnaping and apparent general A short time after hearing the judge's ruling, the jury agreement that a kidnaping of lewis should take place. This returnedwith a not guilty verdict for Moore, self-proclaimed point was emphasized during tjis testimonyby chief prosecu deprogrammer Galen Kelly, lawyer Robert "Biker Bob" tion witness, former Loudoun Sheriff's Deputy Doug Poppa, Point, and the conspiracy's alleged ·paymaster, millionaire who served as a governmentidform ant. Mr. Poppa unwaver E. Newbold Smith, Lewis's father. Afterthe acquittals were ingly maintained under cross�examination that a kidnaping announced, Judge Ellis compounded the outrage by announc of Lewis Smith was in plac� when the conspirators were ing that it was his opinion that evidence on the tapes did not arrested Sept. 30. I constitute a crime' and scolded the prosecution for bringing Judge Ellis also ruled thatlfor anyone to be guilty of the the case to trial. '. ' . soliciting to kidnap charge, there had to be specificsolic iting of Poppa for a kidnaping. Surveillance, said Judge Ellis, Scope of the ceDspiracy even in support of a kidnap, �as not a crime. Mr. Poppa, The trial, and· �specially the more than 60 hours of se according to the taped conve$ations with Don Moore, was cretly recorded tapes,brought into the daylight the dirty side asked to become part of a tekm that was to kidnap Lewis of the conspiracy arrayed against the LaRouche political Smith. This point was corrob�rated by testimony from Lou movement. This· (\onspiracy, which has perverted and cor doun County Sheriff's Deput� Pete Bracera. rupted the U.S. justicesy stem to achieve its aims, would use In his initial charge to the jury, Judge Ellis had made no any and all of the methods describedon the tapes in the voices such restrictive rulings, makihg it appear that a conviction of the defendants 62 National EIR January 8, 1993 tions brought "the final doubters around" to a not guilty their content were the core of the case, with the jury having verdict. heard, in the would-be kidnapers' own words, their plans and contingencies for kidnaping Lewi�. Newbold Smith, said Judge buys defense's view Mr. Leiser, went on the stand and cla�med this was all hypo The judge's speech following the acquittals betrayed a thetical . Mr. Smith, said the federal prosecutor, tried to offer prejudice and animus against the prosecution case that he had interpretations of his meanings of t�e words "lift," "wet' kept under wraps during most of the trial. work" and "snatch." Which is mort credible? Mr. Leiser He characterized the entire affair as a tragic rift between asked: the tapes and transcipts of p¢ople who don't know a father and son, and not a federal kidnaping. Judge Ellis when they are being recorded or the interpretations of people stated that he hoped that the father now realized that he can't who testify after they have been charted? control his son's life and shouldn't have hired a gang who In his rebuttal , Mr. Leiser argued that if there was no couldn't shoot straight. Ellis then made a gratuitous attack agreement, then why did these men g<)on talking month after on Lewis Smith's association with the LaRouche movement month about all these details? He said that this was a hard by stating that he now hoped that Lewis realized that his case involving a family tragedy. Butif Lewis found out his relation to his father was more important than his political father was having an affair, he couldn't break the law and. beliefs. have his father kidnaped to have his brain rescrambled. The judge said that he was glad that in the trial, the son There is a tragedy here but there is also law, Mr. Leiser and father didn't have to testify against each other. He didn't said. Edgar Newbold Smith was not iman enough to say he mention that Newbold Smith had spent much of his testimony crossed the line. Instead he got on the witness stand with all attacking his son's political beliefs and slandering the his hypotheticals. His testimony wall incredible and is the LaRouche political movement. Judge Ellis decided on Dec. best proof of the crime. The others played him like a guitar 28 not to allow either Lewis, or his wife Andrea, also a but a guitar who wanted to be played. Mr. Leiser said they LaRouche associate and target of the would-be kidnapers, or wanted to have a kidnaping but debatqd how to do it and how her mother, to testify to rebutt Newbold Smith's testimony to remain safe afterwards. This is notlsome crazy hypotheti that Lewis was "brainwashed." cal or a fantasy but a group of men conspiring for a common Turningto the prosecutors, Judge Ellis said that when the goal to commit the violent crime of ki4naping , the prosecutor government learned of the alleged kidnap, instead of getting concluded. wiretaps and surveillance, they should have gone to Newbold Smith and told him that kidnaping is a crime! One has to Russell lied wonder whether Judge Ellis would offer the same advice Along the way, the prosecution demolished the testimony for someone found planning a possible murder or to other of key defense witness and Virginia LaRouche prosecutor criminals, or whether this is special treatment for Establish John Russell, who had testified on 1>eha:lf of Don Moore. ment figuresli ke Newbold Smith. Aside from testifying that he knew Mt. Mooreto exaggerate During the trial, it was revealed in testimony, that New and stretch the truth, Mr. Russell, wjho is,·a close friend of bold Smith was fully aware that kidnaping was against the Mr. Markham, claimed that Doug PQPpa was not a reliable law, yet persisted in planning to kidnap his son. witness and would fabricate evidence. He claimed to have In rebuking the other defendants, Judge Ellis ignored the gotten that information from several �urclts, most of whom evidence presented that these were dangerous men, capable were involved with prosecution of William Douglas Carter. of even murder-a fact that makes his stem words mild. To Poppa's testimony overturneda wrongfully-obtained convic Galen Kelly, he said that one man's cult is another man's tion in the Carter case. Russell also mentioned that he had community. He told Don Moore that he had said outrageous spoken to two state police officers wbo recently disparaged things, that he came within a hair's breadth of conviction, Poppa's credibility. and that he should grow up; this is all consistent with defense One of those officers, William Shind)fl'state police offi statements that Mr. Moore exaggerates and is a "legend in his cer since 1976 and director of the m�lti-jucisdictional anti own mind" and "the G. Gordon Liddy of Loudoun County." drug task force since 1985, testified :for'tbe prosecution in Finally, he told "Biker Bob" Point that as a member of the rebuttal that Doug Poppa never lied: and �as truthful and bar, he should have stood up and stopped this. honest. He said that he had not spokej1ta Mr. Russell since 1986 or 1987 and if Mr. Russell haU testified that such a The prosecution's last words conversation had taken place, "He wquld::lutvebeen mistak The prosecution in their summation and rebuttal to the en." The second officer was not calaed�llbut, press reports defense summation Dec. 29 presented a sharply different indicate that federal prosecutors repoI'k:dlty ;have begun an view of the dangerous character of the would-be kidnapers investigation into whether Mr. Russe"'s.. �timony conflicts and their plans. with a tape recording that the officeri� sm'(l!tohave made of Prosecutor Larry Leiser told the jury that the tapes and the conversation. I db/ EIR January 8, 1993 National 63 BNL Congress continues probe toverup despite Justice Department ! by Edward Spannaus u. S. congressional leaders are vowing to continue the inves by one individual, BNL Atlanta branch manager Christopher tigation of the Banca Nazionale del Lavoro (BNL) case, Drogoul. Once the Bush adniinistration had discovered, in despite the whitewash report issued by the Justice Depart 1990, that Iraq's Saddam HUSsein was "the new Hitler," it ment's so-called independent counsel Frederick Lacey on scrambled to cover up its owIj. embarrassing involvement in Dec. 9. Lacey's report to Attorney General William Barr the BNL affair. presented the remarkable conclusion that there was no evi dence of a coverup, and no evidence that the CIA or anyone Whitewash else had deliberately withheld evidence. In his Dec. 9 report, Lacey went to great lengths to exon Rep. Henry Gonzalez (D-Tex.), who was singled out erate those DOJ and CIA officialsinvolved in the BNL cov for attack by Lacey, said that he and the House Banking erup. In fact, the report reads like a defense lawyer's brief, Committee which he chairs will continue to investigate the not a neutral assessment of the facts. Just as a defense lawyer scandal. Gonzalez said also that he will ask Bill Clinton to has to take the evidence again�t his client and explain it away, broaden the scope of the "Iraqgate" inquiry to include the or else interpret it in the mos� favorable light, Lacey tries to providing of false testimony to Congress by members of the put the most favorable construction on the evidence that a Bush administration, and also what he calls the illegal arming coverup occurred. of Iraq. The chairmen of the House and Senate Judiciary Given Lacey's ties to the f13Iand the intelligence commu Committees, Rep. Jack Brooks (D-Tex.) and Sen. Joseph nity, it is not surprising that heiadopted the role of anadvocate Biden (0-Del.), both said that they will continue to seek on behalf of the very govenllment agencies which he was appointment of a special prosecutor. charged with investigating. F(j)rex ample, Lacey often simply relies on self-serving statements from high-level officials as A not-so-independent counsel proof of their intentions. How does he know that they had no On Oct. 16, Attorney General Barr appointed Lacey as "corrupt intent," or that they h�d made no effortto improperly an in-house independent counsel to investigate whether there influence prosecutors or to mislead the judge involved in the had been criminal violations in the BNL case. Barr's action BNL Drogoul case? Why, because they told him so! was taken only under enormous pressure, after the country Lacey's most glaring omi�sion is with respect to the CIA's had been treated to the spectacle of the CIA, FBI, and Depart role in the scandal. One of the major allegations of the BNL ment of Justice (DOJ) all accusing each other of withholding scandal was that intelligence jnformation was withheld from evidence and providing misleading information to the court the judge and local prosecutOrs by the CIA and/or the DOJ. hearing the case. Lacey deals with this in Part Uofhis report, which is classified Rather than seek the designation of a court-appointed 'Top Secret-Codeword." HI!devotes all of seven out of 190 special prosecutor, Barr instead appointed Lacey under DOJ pages in the public part of hi$ report to the CIA issue. internal regulations. Had Barr applied to a judicial panel as His method here, as throughout the report, is to ask DOJ provided by the now-expired Ethics in Government Act, he and CIA officials what they �ere thinking at the time, and would not have been able to choose or control any indepen then draw his conclusions from these self-serving statements. dent counsel whom the court appointed. Much of this section is devot¢d to rebutting charges made by The background of the case is as follows: BNL's Atlanta Gonzalez. Gonzalez had aired charges of a CIA coverup in branch had provided $4-5 billion in "off the books" loans connection with a DOJ letter indicating that the CIA had and credits to Iraq during the period 1985-89. Allegedly, only "publicly available infOlimation" suggesting that BNL's a significant amount of this was used by Iraq for military Rome headquarters knew ofthe Atlanta loan scheme-omit procurement. Despite evidence that BNL's Rome headquar ting any reference to CIA private source information. ters was aware oqhe loans, as were the Bush administration After Gonzalez made his 4harges, DOJ and CIA attorneys and U.S. intelligeqceagenc ies, the DOJ built its case around met, and decided not to make any changes in the DOJ letter. the theory that th,¢,loans were all "unauthorized" and done Says Lacey: "Neither the DOJ nor the USAO [Atlanta U.S. 64 National EIR January 8, 1993 Attorney's Office] thought that the letter was misleading or against western military aid to Iraq since the mid-1980s. inaccurate at the time." The CIA then wrote up a statement Some elements in the U.S. govern,*nt believed they were which was to be included in a DOJ press release. This idea was "tilting" toward Iraq in the mid- 1980sito prevent Iraq's defeat quashed by a top DOJ official , Robert Mueller. Says Lacey: by Iran and to prevent the spread of thb greater evil of Islamic "Mueller did not believe he was concealing important infor fundamentalism. The CIA was deeply involved in providing mation by withholding a statement he viewed as inaccurate." military and other assistance to Iraq fromat least 1982 on. There are certainly many inmates in federal prisons today But the deeper level of the storY came out during the who would not be there, had the government offered such a London trials in the Matrix-Churchillicase a few months ago: generous interpretation of the evidence as Judge Lacey offers that op le els of the British establi hment believed that it � � . � here ! was m their mterest to arm both Irani and Iraq, and let them bleed each other to death. 'The loan assassin' The Israelis, having a slightly [more parochial view, The Bush administration's handling of the BNL case is didn't so much mind the sale of contentional arms to Iraq, reminiscent of other coverups which have revolved around but they objected to more sophistic�ted weapons systems. finding a "lone assassin" on whom the blame could be Thus, the Israelis had begun to threatejn, blackmail, and even dumped, and then labeling any critics of his approach as assassinate arms dealers and scien(ists involved in Iraqi loony "conspiracy theorists." In this case, the scapegoat was weapons programs. They also orch�strated a propaganda Christopher Drogoul, the local branch manager, who has campaign against Iraqi weapons prOj::urement in the press. charged that he is being made to "shoulder the burden for The London Financial Times was oneiof the key instruments BNL, the Iraqi government, and U.S. foreign policy." ofthis, starting in 1988. BNL was an early target of Financial There are actually two issues involved in the BNL scan Times reporter Alan Friedman. dal: 1) the so-called "loan scheme" of off-the-books loans Thus, afterthe outbreak of the Gu1f war, the Bush admin made by BNL-Atlanta to various Iraqi entities, and 2) the istration was in effect hoisted on its Qwn petard. Anxious to Bush administration's embarrassment over its involvement deflectcha rges that it had armed "the! Beast of Baghdad," it in encouraging the loans and assistance to Iraq prior to the sought to cover its own tracks and hi4e its own involvement 1990-91 Persian Gulf war. in perfectly legal assistance to Iraq. t Despite all the hoopla in the press about "illegal loans to Lacey has successfully played onithese weaknesses. For Iraq," there was in fact nothing inherently illegal about what example, he offers the conclusion th.t the delays in issuing BNL-Atlanta was doing-except for the non-reporting of the the indictments against Drogoul and his local co-defendants loans to U.S. and Italian regulatory authorities. The federal were not due to a coverup, but rather to disagreements be prosecutors constructed their case around the theory that Dro tween DOJ officials in Washington attd local prosecutors in goul was defrauding BNL-Rome by carrying out an unreport Atlanta. Prior reports had already indicated that some offi ed loan scheme. cials at DOJ headquarters suspected th� involvement of BNL BNL-Atlanta was able to extend billions of dollars of Rome and wanted to investigate the ccjmplicityof BNL head loans, allegedly without the knowledge of BNL-Rome, by quarters. Not surprisingly, the officials who were pressing to taking advantage of BNL-Rome's AAA credit rating; this go after BNL-Rome were some of theimost notorious Israeli enabled BNL-Atlanta to go to the money markets directly agents-of-influence in the DOJ, such �s Theodore Greenberg ' and borrow Interbank Funds at or below the London Inter-. and Mark Richard. Bank Offering Rate (LIB OR) on a daily basis. These funds Lacey is thus able to present his case that there was no were transferred to BNL-Atlanta's holding accounts at Mor coverup, just honest differences of ppiniOl1 as to whether gan Guaranty Trust Co., and then re-Ient as uncollateralized BNL-Rome was the "victim" of the lQan scheme or a partner loans to Iraqi entities at profitable rates, but in violation of in it. In order to reach his conclusion, Ii-acey provideda point BNL's own internalregulation s. by-point refutation of the findings oflJudge Marvin Shoob, The official version of events is that two employees of the federal judge hearing the BNL cafe in Atlanta, who had BNL-Atlanta went to U.S. law enforcement authorities and accused the DOJ and CIA of misleading him. The day after told them of the scheme. Federal Reserve officialsregarded the Lacey report was issued, Judge Slloob-told the New York the matter as presenting a "threat to the stability of the world's Times he was "disappointed" in the ¢p()l!t, and that he still monetary markets" (according to Lacey), and the shutdown believes he was misled by the CIA !pld the Department of of BNL-Atlanta by the FBI was then carried out in close Justice. I ,L , coordination with U.S. and Italian central bank officials. Lacey even disputed the findingso f tht!·'1talian parliamen That is the origin of the BNL matter as a criminal case. tary commission investigating the $attiiF; ' And more re The political-intelligence side of the matter is more interest cently, Italian prosecutors preparing itheit'case against top ing. Israel, which regarded Iraq as its principal threat in the BNL officials have concluded that BNL-Rbmewas shipping Middle East, had conducted a covert and overt campaign arms to both Iraq and Iran in violatio� of 1t�lian law. EIR January 8, 1993 National 65 family f ers tell storyof u. s. arm usury humanrights violations and I by Suzanne Rose At the request of Rev . James Bevel, the running-mate of tion (FmHA), to eliminate the family farmer in the the course former presidential candidate Lyndon LaRouche, a commis of this credit crisis. TragicaUy, the very same international sion was formed in December to investigate human rights banks which popped the farm credit bubble made more profits violations against family farmers. During the course of his from the destruction of the farmer. The international agri campaigning in the farm states, Reverend Bevel had met business bank RaboBank, ai holder of farm credit bonds, many farmers who had been victimized by usurious farm bought farm loans which were guaranteed by the FmHA and credit policies, and who had been removed from their land cashed in from the taxpayer When the farmer was forced out against their will, at times through the use of force. Impressed of business. by the seriousness of the crisis this has produced in rural Testimony from farmers and ranchers underlines the hu areas, and cognizant of the ultimate effecton the food supply man rights violations which I were committed in a process of destroying the family farmer, Reverend Bevel requested which has resulted in the restructuring of U.S. agriculture, that the Schiller Institute form a committee which, sometime from family-sized farms to "agribusinesses" under the domi afterthe elections, would hold hearings and investigate what nation of the internationalgrain traders. the farmers were saying. Atkinson's testimony was supported and given further In response to the request, Judge William C. Goodloe, a detail by another former FCS.loan officer, Keith McGruder, former justice of the Washington State Supreme Court, and who testified at all four hearings. McGruder explained that civil rights leader Wade Watts of Oklahoma, a former mem both the FCS and the FmHAladopted a policy in name only ber of the Civil Rights Commission, convened an investigat of restructuring or forbearance toward their borrowers. Liq ing committee with Schiller Institute Food for Peace repre uidation or foreclosure was 66 National EIR January 8, 1993 afterhaving paid $36,000 back in the first three years. When "central entity." The Committee alsQ received evidence indi his land was taken, it was worth more than he owed. cating that the "central entity" plan hilSinternational implica- Kay Zenker, a North Dakota farmer, testified that her tions. i banker had failed to disclose her existing debts and falsified IV. Public law 100-233, Jan. 6, 1988 Agricultural Credit her cash flowpro jection, in order to get a government loan Act of 1987: guarantee. After the loan guarantee was obtained, the loan "(3) Limitation onforeclosure-No qualifiedlender may was sold to RaboBank, the Zenkers were forced into bank foreclose or continue any foreclosurelProceeding with respect ruptcy, and RaboBank collected the loan guarantee. to any distressed loan before the le�der has completed any pending consideration of the loan fOl1 restructuringunder this section. "(C) Meetings--On determination by a qualified lender Documentation that a loan made by the lender is or �as become a distressed loan, the lender shall provide a rea*onable opportunity for the borrower thereof to personally meet with a representative of the lender- From the Final Report "(1) to review the status of the lqan, the financial condi tion of the borrower, and the suitabili�y of the loan for restruc Public Hearings were held in the states of North and South turing; and Dakota, as follows: North Dakota Heritage Center, Bis "(2) with respect to a loan that is1in nonaccrualstat us, to marck, Dec. 7; Hettinger County Courthouse, Mott, N.D., develop a plan for restructuring the loan if the loan is suitable Dec. 8; Fargo Public Library, Fargo, N.D., Dec. 9; Sioux for restructuring." Falls Public Library, Sioux Falls, S.D., Dec. 10. V. Congressional Record-Hou,se, H. 2625, May 13, The Committee heard 20 hours of testimony from 41 1986, ,"Farm Credit System Guidelfnes and definitionsJor witnesses over four days. Members of the Committee are: Restructuring Troubled Loans, May �, 1986" : Justice William C. Goodloe, Chairman; Washington General: "The banks and associ�ions of the Farm Credit State Supreme Court (ret.); System will administer troubled acc EIR January 8, 1993 National 67 make every effort to restructure loans before they consider to a maximum thirty years itnprisonment and one million ' foreclosure . Congress after all supported a restructuring of dollar fine. This would invol any knowing false statement the Farm Credit System, restructuring to help the fa rmer or report or willful overvalul tion of any land, property or not just the lender. The loosened regulations should give the security submitted to influenc . the government's action on a lenders the tools to exercise more forbearance. We expect loan guarantee. I lenders to use these tools" [emphasis added] . The purpose of this letter iIs not to frighten anyone but to Comments by Hon. Byron Dorgan: "I urge my colleagues advise all those dealing with tIiegovernment that all dealings to support House Concurrent Resolution 310, which ex must be scrupulously honest. there is no room for anyone to presses the sense of the Congress that the Federal Farm Credit take illegal shortcuts. The following are examples of activi Administration and its associated agencies and lending insti ties which may be suspect: tutions should use their existing authority to restructure loans I-Submitting application packets for guaranteed loans for viable farming operations and to take other actions to help which contain false or misleading information and/or fail to farm families while protecting the financial integrity of the disclose material information.: Farm Credit System .... 2-Using real estate appr4isals that have been signed by "Mr. Speaker, it is certainly no secret that the Farm Credit a qualified appraiser, but we� completed by another either System will soon return to Congress to request additional qualifiedor unqualifiedappra. ser. appropriations. During deliberation of the issue I believe 3-Providing real estate appraisals that do not accurately Congress should mandate a policy of fo rbearance rather represent the fair market valqe of the property either at the than fo reclosure outlined by House Concurrent Resolution time the guarantee document� are submitted to the govern 310 [emphasis added] .. .. ment or when a guarantee is i�sued. "In summary, House Concurrent Resolution 310 will cost 4-Providing false chattellappraisals or chattel appraisals no money. It will not mandate that the FCS make any changes that have not been completed �y the appraiser who examined in loan procedures that would endanger the stability of its the property. resources. Instead, it provides a clear indication that the FCS 5-Disregarding normal i chattel appraisal procedures should apply fo rbearance to its fo reclosure policies if it ex which require the appraiser t� review the property close to pects the Congress to lend a sympathetic ear to its problem" the time that the appraisal is cpmpleted. [emphasis added]. 6-Submitting false finapcial statements that are ob VII. "Criminal Violations." U.S. Department of Justice, tained as a result of false c�ttel or real estate appraisals, Northem District of Iowa letter of April 24. 1992. addressed e.g. financial statements whi 68 National EIR January 8, 1993 any of the things mentioned in the letter, feel free to contact 2. That the plan described in Conclusion I appears to be this office. part of a master plan entitled "Project 1995" whic.h contains Sincerely, international implications and indicates that the actions of Charles W. Larson, United States Attorney North and South Dakota bankers are more t.tian a local problem. The warningscontained in the above letter have been system 3. That the execution of the scheme has included threats atically circumvented by lenders, to the effect that loan offi and acts of retaliation against objectors causing a veil of fear cers use federal laws and standards for opposite results-to to exist among citizens who have experienced the damages wit: to liquidate the farmer-debtor by imposing conditions of of the plan. restructure on the debt that must inevitably lead to eventual 4. That the Federal Trust Responsibilities of Indian lands liquidation of the farmer-debtor, in violation of the intent of are being violated and ignored resulting in the checkerboard Congress. depletion of Indian lands by foreclosures and work-outs. Procedure [Reference: Farm Credit Bank of St. Paul, 5. That the administration oflaw and order on Indian lands Manual on Loan Workouts fo r all FCS Institutions; and Farm are in violation of due process and equal protection causing Credit Banks of Louisville, Credit Manual (Indiana, Ohio, fear and a lowering of self-esteem requiring a total reorganiza Kentucky, Tennessee), Volume 4 C, p. 2070. 1 (5-14-87).] tion of the constitution and laws of Indian Reservations. Evidence was received that the U.S. Internal Revenue 6. That the Judicial Systems of North and South Dakota Service compounded each restructuring or work-out plan have allowed these injustices to be perpetuated. As a re sult, with penalizing tax burdens which impaired the farmer's these Judicial Systems are held in low esteem by farmers ability to adopt any plan. and others who hold a well-grounded belief that widespread . All Public Hearings were limited by fear and reports of injustices are caused by corrupt or poorly trained lawyers and threatened retaliation and politically-motivated actions by some judges who do not meet the standards of fairness and prosecutors were common in each area in which Hearings impartiality . • were held. Respectfully submitted, Evidence was received concerning serious violations of William C. Goodloe, Chairman the Federal Trust Responsibility for Indian land. The Federal Wade Watts Trustee of Indian land is allowing creditors to take Indian Phil Valenti tribal land by failing to ensure appropriate remedial measures to provide adequate protection. U.S. environmental groups Further evidence showed a very high degree of fear were given millions of dollars throughout Indian Reservation caused by reports of over 40 unsolved Indian homicides on Standing Rock Reservation in the past :five years to alone. Examples of harassment include shots fired at the spread scare stories ab out a homes of protesters , vandalism, and in one case threatened eviction. In addition to fear, the absence of due process and man-made ozone equal protection results in low self esteem among individual hole that would Indians, and lack of trust and respect for their government and laws. cause cancer The legal system in North and South Dakota came under on Earth. severe attack indicating a lack of trust, the extent of which . was that few farmers considered the system protective of Now, for only $15, you their constitutional rights. This mistrust was particularly ex pressed in regard to lawyers , but cases of improprieties by can learn the truth both federal and state judges were heard. Opinion expressed about the ozone scare. placed the judicial system in very low esteem and confidence in the quality of justice was totally lacking. Conclusions THE HOLES IN 1. That the finance industry in North and South Dakota is operating under a collusive plan to liquidate farmers by unlaw THEThe Scientific OZO EvNEidenc eSCARE That the Sky Isn't Falling ful over-reaching, foreclosures , and work-outs. This plan is being implemented to create a unification ofland under central Send checks or money orders (U.S. currency only) to ownerships, forcing citizens to leave the region by the tens of 21 st Century $1 5 plus $3 shipping thousands , leaving economic depression behind. P.O. Box 16285, Washington, D.C., 20041 . and handling EIR January 8, 1993 National 69 National News Los Angeles, where the riots had begun on nation?" I April 30. The amendment was sponsored by Col The incident conformed to the modus orado for Family Values, a statewide group High court to hear operandi of the Maoist provocateurs in begun in response to the adoption of "gay volved in the April-May riots: The initiaJly rights" ordinances 'hate crimes' challenge by the cities of Denver, provocative but peaceful demonstration Aspen, and Boulder. The group gathered The U. S. Supreme Court agreed in Decem turned violent when a number of "onlook slightly less than 50,000 signatures to place ber to hear the case of Wisconsin v. Mitchell, ers"-principaJly gang .members and white the measure on the ballot, then won the elec which chaJlenges Wisconsin's "hate Maoist crazies-began blocking the inter tion despite being outspent by opponents by crimes" sentencing enhancement law. The section and throwing rocks and bottles at almost two to one. legislation was based on the model drafted passing vehicles. One passenger in a pick by the Anti-Defamation League (ADL) of up truck was hit in the head when an object B'nai B'rith, which increases the sentence smashed through the rear window. At least of someone who is convicted of a crime a dozen people were injured, and there were already on the books, if the defendant "in two fatal shootings in the general area of the Religion professor calls .tentionaJly selects the person ...[or) prop disturbance. A fire department ambulance erty because of the race, religion, color, dis was attacked with rocks and bottles while CAN � dangerous cult ability , sexual orientation, national origin en route to an emergency call in an nearby Prof. Larry Shinn, a Bucknell University or ancestry of that person or the owner or area, and a service station was vandalized religion professor who has studied cults and occupant of that property." and looted. is an exp!!rt in cult-related criminal trials, The court's decision to hear the Wiscon The police department responded in has publi<:ly denounced deprogramming as sin case comes less than six months after force, declaring first a tactical alert in the "the most destructive of the legacies of the it ruled St. Paul , Minnesota's hate crimes South Division, then a city-wide alert which great American cult scare." Shinn says that statute unconstitutional in the case of R.A. V. lasted into the night. The area was success deprogra¢tming was born of the anti-cult v. City ofSt. Paul. The St. Paul ordinance fully cordoned off for several hours, and fever that raged after the Jim Jones affair, effectively made "hate" itself a crime. the violence was abated. At least 60 people but now cult membership is slackening. The Wisconsin Supreme Court had were arrested. Star "deprogrammer" Galen Kelly struck down the sentence enhancement law, charges as much as $10,000 per deprogram because it effectively punished thought, rul mingo Shinn told the Dec. 14 Philadelphia ing: 'The Constitution may not embrace or Daily News-which was covering the trial encourage bigoted and hateful thoughts, but of E. Newbold Smith who, along with Kel it surely protects them." Colorado amendment ly, was charged with conspiring to kidnap The ADL, whose model legislation has his son, LaRouche supporter Lewis du Pont been adopted in some 30 states, issued a defends human dignity Smith-groups such as the Cult Awareness press release saying that it welcomed an op In last November's election, Colorado vot Network (CAN) promote hateful and irra portunity for the law to be tested by the ers adopted an amendment to the state's tional att�cks on any group formed around Supreme Court, since it means the court Constitution barring "gay rights" laws. This a deeply �eld belief. The result, he told the "recognizes that its decision last June in action has subjected the state to a pro-homo paper, is that "CAN is much closer to a R.A. V. St. Paul v. Cannot be the final word sexual boycott movement, promoted by the destructive cult than most of the groups they on the constitutionality of hate crimes media and Hollywood. attack." statutes . " The measure on the Colorado ballot, ap proved by a margin 813,000 to 710,000, has hardly ever been directly quoted in aJl the fury of media abuse. The reason for this censorship is obvious from the text of the Hooded Shining Path Maoist provocateurs try ballot initiative: "Shall there be an amendment to Article backers march in D. C. again in LO's'Angeles II of the Colorado Constitution to prohibit About 20 hooded individuals from the Mao A Dec . 14 demonstrationin "support" of the the state of Colorado and any of its political ist Revolutionary Communist Party (RCP) black Los Angeles defendants charged with subdivisions from adopting or enforcing any staged a demonstration in support of their beating white trucker Reginald Denny dur law or policy which provides that homosex terrorist friends in Peru's Shining Path on ing the April-May riots blew up into a vio ual, lesbian, or bisexual orientation or con Dec . 16 fufront of the Library of Congress, lent confrontation with police. The demon duct, or relationships constitutes or entitles where a forum was taking place on "The stration was held "at the intersection of a person to claim any minority or protected Role of the United States and Other Hemi Florence and Norrnandie in south-central status, quota, preference or discrimi- spheric Countries in the Peru Crisis." Spon- 70 National EIR January 8, 1993 • AUSTIN, 'Texas City Council passed a resolution calling for the public statue of Ku Klux Klan found • er Gen. Albert 'Pike to be removed in sored by the Congressional Research Ser that it is anti-Semitic to even observe that Washington, I1>.C. on Dec . 18. So vice, the conference featured all sorts of "Jews pretty much run the movie and televi far, five city councils around the "Peru hands," including, apparently, Gor sion industries," noting, "had had the time I country have passed such resolu- don McCormick from the CIA-linked and opportunity, I would have cited several ' tions. RAND Corp. McCormick was the "expert" books to back me up. One of them would who a week earlier was praising the Shining have been the delightfully written An Em SEN. SA NUNN (D-Ga.) and Path gang as "robust," "disciplined, created pire o/ Their Own: How the Jews Invented • M Richard Lugllf (R-Ind.) called on in the likeness and image" of its leader Hollywood." President-elecG Clinton to appoint a Abimael Guzman, and which is carrying out Cohen chided the ADL survey for "czar" to handl� all U.S. negotiations a "social insurgency," not committing claiming it is anti-Semitic for someone to with Russia, ill a Washington Post genocide. lament the disproportionate power of the guest editoria. on Dec. 22. They The RCP demonstrators , who share the Zionist lobby. "Non-Jews know better than warned that it Is urgent for the U.S. ideology of Cambodian mass murderer Pol to comment about what is before their very to finalizea striM ofstrategic nuclear Pot with the Shining Path, handed out a eyes. Should they answer forthrightly, they arms pacts. ' leaflet blasting "Yankee imperialism" and might well be denounced for anti-Se Peruvian President Alberto Fujimori, but mitism." SEN. LE HAMILTON (D praising the "victorious revolution led by In conclusion, Cohen observed that • t Ind.) added hi� voice to the string of the poorest people" and McCormick, "the such ADL surveys may serve to further fuel Democrats deriandingthat a Clinton RAND Corp. expert who will testify . .. the very prejudices that they purport to com White House �tarve Haiti into sub [about] the immense support and participa bat: "As I read some of the statements, it mission. In a qec. 22 Christian Sci tion of the indigenous peasants in the Peo struck me that I would not always have ence Monitor �inion column, Ham pie's War, and of the significant support the given the 'right' answers, and that a non ilton argues, "'A stiffer embargo revolution has among the masses who live Jew might have answered them 'right' by would impose �dditional pain, but it in the vast shantytowns surrounding lying. Maybe we are , at last, becoming a could end Hai�i's crisis more rapid Lima-as well as among large sections of nation of unbiased people. On the other Iy," he stated. i the students, teachers and professionals." hand, maybe we're just becoming a nation of liars." • STANFO ' UNIVERSITY and the Univ ity of Chicago ex- tended familyt enefits to partners of homosexual erttployees last month. Columnist chides ADL Privileges and *enefitsinc lude health insurance, tuit on "bi:nefits, and li over 'anti-Semitism' poll � Military takeover brary privilege, . ' Richard Cohen, writing in his regular Wash of FEMA proposed ington Post Magazine "Critic at Large" col • THE FIFTk CiRCUIT Court of umn on Dec. 20, castigated the Anti-Defa A still-secret study conducted by the con Appeals ruled t�at a capital defendant mation League for its recent public opinion gressional General Accounting Office received inade9uate legal representa poll which demonstrated that the American (GAO) has proposed that the Pentagon, or tion because hi� lawyer was paid only people still harbor anti-Semitic views. Co possibly the White House, take over the $1 1 .84 per hout . The defendant, they hen begins his column with the following Federal Emergency Management Agency wrote, "was dcp iedhis constitutional blunt observation: "The Anti-Defamation (FEMA), according to a mid-December ar right to adequa�e counsel in a capital League, having commissioned the Boston ticle that appeared in the Miami Herald. case in which actual innocence was a polling firm of Marttila and Kiley to deter The study is highly critical of FEMA's close question.l : ':"':(Unfortunately, mine the level of anti-Semitism in America, performance during Hurricane Andrew. Ac the justice sy*m got only what it ' came up with a most gratifying finding. cording to the Herald, the issue of the mili paid for." . ',�'" There is less anti-Semitism than there used tary taking a greater role in emergency oper , "'" ,' to be but more than enough to keep the ations came up repeatedly during a meeting • JOSEPH ¢ALJ�ANO, Jimmy Anti-Defamation League in business. As a which the GAO convened in Washington Carter's secret� of'health and hu Jew, I can say that last part with tongue in last month to discuss the status of U. S. man services, y.'amcd of the "three cheek and with a certain amount of impuni emergency preparedness. The Herald headed dog fronL , Hell"-drugs, ty . You had better keep your mouth shut. quoted one participant, FEMA advisory AIDS, and TBrin,i column in the The last sentence is predicated on the as board member Robert Kupperman, stating Washington Post ,on Dec . 21. Ca sumption that you, the reader, are not that the military must become much more lifano argued Ifonmore condoms, Jewish." directly and consistently involved in domes clean w .:dles, l\lldresearch money. Cohen honed in on the ridiculous notion tic emergency planning and operations. EIR January 8, 1993 National 71 Editorial Cold turkey The New Year is a time to take stock, to resolve to do among the American electorate . better. With this in mind, we suggest "cold turkey" on Clinton was not seen as �n acceptable alternative. television viewing. If we had to encapsulate what is He had no positive attraction for any large proportion wrong with the American population in just one word, of the population. There was just nothing there . Indeed, that one word would be "television." The situation is it was because of Clinton's poor quality that he ended not much better elsewhere in the world. up with a smaller percentage of the vote than Michael Television is a mind-bender-a brainwashing me Dukakis, the loser, got in I ?88. Because of the poor dium. From the supposed news shows to the soap op quality of Clinton as an alij!rnative, Bush was very eras, it is designed to dull the mind of the unwary close to getting a plurality or the vote, up until the last viewer. It is the equivalent of the bread and circuses days before the election. offered to Romans, in the decadent Roman empire . Yet, especially following the Democratic and Re Particularly with U.S. television, sports competi publican conventions during the summer, the Ameri tions and game shows, and the continuing saga of soap can people adopted the mentality of sports fans, and opera characters, merge with "the real life dramas" this was the environment in iwhich the debates among shown on "news" shows. Rather than a citizenry pre Bush, Clinton, and Perot wereheld . The majority shift pared to debate the proper course of public policy and ed away from seeking genuine alternatives, into the then act with resolve, Americans have become a nation mood of fans going into a sports competition-a league of passive observers-television viewers. This is also competition, a league runoff� increasingly true in Europe, where there is yet no mass Of course, things can and will change again. For outcry over policies which are igniting a series of one thing, the world economy is sinking rapidly, de "small" wars that threaten to become another unstoppa spite the fanciful propaganda being spread to the effect ble world conflagration. that we are in the midst of a recovery . Th is reality The U.S. population's moral and intellectual level cannot be ignored forever. Unemployment is spread this year is markedly below that of last year. In January ing, benefits are being cut �ack, and the numbers of 1992, the presidential election campaign, at least in its homeless grow-whether threy be hapless refugees, or first stages, offered an arena where protest could be those who have been dispossesed from decent housing voiced, and alternative policies debated. That was the because of their poverty . real significance of the first campaign of Ross Perot. Under these circumstanqes, we must still arm our The hope which that phase represented was quickly selves with hope. Men and �omen of good will must dissipated, and Americans went back to their stupefied step forward to offer leader�hip, as the masses of the addiction to a packaged emotional life dominated by world's population wake up to reality and seek a solu soap opera, game shows, MTV rock music extravagan tion to the crisis. zas, and hour after hour of spectator sports. This is not That means we must go against conventional wis only a moral illness, but it is mental illness as well, on dom , as peddled by the Anglo-American establishment the scale of the whole culture , for which real life is and packaged by the televisi(>nmog uls; such "wisdom" dominated by fantasy. is the enemy of truth . Demahding of one's fellows that In early f992, and especially following Bush's they tum off thatbla sted TV tnaynot make one popular, vomiting incident in Japan, there was a very significant but it is the essential first step which must be taken if tum in manifest public opinion trends. By about April, we are going to reverse the present downward slide to a "Dump Bush" mood could definitely be observed a disaster which may destroy our very civilization. 72 National EIR January 8, 1993 SEE LAROUCHE ON CAB L E TV ALASKA ILLINOIS • BUFFALO-BCAM Ch. 32 VIRGINIA • ANCHORAGE- • CHICAGO- The LaRouche Connection • ARLIN GTON-ACT Ch. 33 Anchorage Community TV Ch. Chicago Cable Access Ch. 21 Tuesdays-6 p.m. The LaRouche Connection 46 Masonic Treason • MANHATTAN (Upper & Sundays-1 p.m. ., The LaRouche Connection Thurs., Jan. 14-9 p . m . Lower)- Mondays-6:30 p.m. Wednesdays-9 p.m. Masonic Racism, Part 1 MNN Ch. 69 Wednesdays-12 noon The LaRouche Connection • CALIFORNIA Fri., Jan. 22-8 p.m. CHESAPEAKE Masonic Racism, Part Saturdays-12 Noon ACC Ch. 40 • MODESTO- 2 Thurs., Jan. 28-10 p.m. • ROCHESTE R-GRC Ch. 19 The LaRouche Connection Public Access Bulletin Board The LaRouche Connection Ch. 5 MARYLAND Thursdays-8 p.m. • The LaRouche Connection • MONTGOMERY COUNTY Fridays-10:30 p.m. CHESTERFIELD COUNTY Saturdays-1 1 a.m. Th urs .. 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Box 17390, Washington, D.C. 2004 1- 0390. ------� Challenge to U.S. Science Policy • • Paul Ehrlich Given society's record in managing technology, the prospect of cheap, inexhaustible power fr om fu sion is "like giving a machine gun to an idiot child. " memorandUlll Jeremy Rifkin Lyndon LaRouche "It's the worst thing that "These cold fu sion could happen to our planet." experiments, taken together with other experiments exhibiting related kinds of anomalous Na ture magazine results, should "The Utah phenomenon is become fe atured literally unsupported by th e elements of a special evidence, could be an artifact, research project--a and given its improbability, is 'mini-crash program' mos� likely to be one." of fu ndamental research--enjoying the moral and material support of appropriate public Th e New Yo rk Times and private "Given th e present state of institutions of the evidence fo r cold fu sion, the United States and government would do better other nations." to put the money on a horse." LaRouche's memorandum is available fo r $25 postpaid from The Schiller Institute, Inc. P.o. Box 66082 Washington, D .C . 20035-6082