• DOPE, INC. Is Bacl{!

Third edition of the $16 plus $4.50 shipping and handling. Order today!. explosive best seller Make check or money order payable to: DOPE, INC. Ben Franklin Booksellers 107 South King Street, Leesburg, Virginia 22075 PH: (800) 453-4108 FAX: (703) 777-8287 updated and expanded Visa and MasterCard accepted. Virginia residents please add 4.5%. sales tax. ( Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Melvin Klenetsky, Antony From the Associate Editor Papert, Gerald Rose, Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, Webster Tarpley, Carol White, Christopher White Senior Editor: Nora Hamerman T he spiffy new design format which we introduce in the Associate Editor: Susan Welsh Special this week, is in response to the upgrading of our economics Managing Editors: John Sigerson, Report Ronald Kokinda coverage over the past year, and specifically to the need to present Science and Technology: Carol White more graphic material, in a more effective way. Using the resources Special Projects: Mark Burdman Book Editor: Katherine Notley of an expanded data base, and the LaRouche-Riemann Method of Advertising Director: Marsha Freeman analysis of the physical economy, we are now able to show, as never Circulation Manager: Stanley Ezrol before, what is really going on in the economies of nations-contrary INTELLIGENCE DIRECTORS: Agriculture: Marcia Merry to the financial statistics and other hocus pocus that Nobel Prize­ Asia and Africa: Linda de Hoyos winning economists and other quacks take as their point of departure. Counterintelligence: Jeffrey Steinberg, Paul Goldstein In this "maiden voyage," our team of economists analyzes the Economics: Christopher White world crisis in food production and consumption, demonstrating European Economics: William Engdahl Ibero-America: Robyn Quijano, Dennis Small that the shortage we currently face is the result of a deliberate and Law: Edward Spannaus avoidable policy by the British-dominated international food cartels. Russia and Eastern Europe: Rachel Douglas, Konstantin George Currently in production is a for our first issue of United States: Kathleen Klenetsky Special Report which will present a broader picture of the worldwide econom­ 1996, INTERNATIONAL BUREAUS: ic collapse, proving that unless the financial system is put through Bangkok: Pakdee Tanapura, Sophie Tanapura Bogota: Jose Restrepo bankruptcy reorganization, civilization is not going to survive. Bonn: George Gregory, Rainer Apel Buenos Aires: Gerardo Teran This week's news coverage provides some striking examples of Caracas: David Ramonet what is happening to those who have chosen not to heed the warnings Copenhagen: Poul Rasmussen of and Lyndon LaRouche. The award for the most imbecilic Houston: Harley Schlanger EIR Lima: Sara Madueiio statement of the week goes to France's new foreign minister, Herve Mexico City: Hugo Lopez Ochoa Milan: Leonardo Servadio de Charette, who was asked by our correspondent whether a free­ New Delhi: Susan Maitra trade policy for the Mediterranean would not yield results as disas­ Paris: Christine Bierre Rio de Janeiro: Silvia Palacios trous as it has in eastern Europe and Russia. "History shows that no Stockholm: Michael Ericson economy can be developed through Statism," he replied-referring Washington, D.C.: William Jones Wiesbaden: G6ran Haglund to the dirigist policy by means of which, in fact, the French economy did develop, whether under Louis XI or Charles de Gaulle. The EIR (ISSN 0273-6314) is published weekly (50 issues) except for the second week of July. and the last week of French government'sshift toward a British free-trade austerity policy December by EIR News Service Inc .• 317 Pennsylvania is already taking a high political toll, as strikes and protests sweep Ave .. S.E .. 2nd Floor, Washington. DC 20003. (202) 544-7010. For subscriptions: (703) 777-9451. the country. European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, In Mexico, the "economic miracle" of former President Carlos D-65013 Wiesbaden, Otto von Guericke Ring 3. D-65205 Wiesbaden, Federal Republic of Germany Salinas de Gortari-the Harvard graduate and protege of George Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, Michael Liebig Bush-is going up in smoke, as several of Salinas's relatives are In Denmark: EIR, Post Box 2613. 2100 Copenhagen 0E, under arrest for illegal financial transactions, in a melodrama which Tel. 35-43 60 40 In Mexico: EIR, Rio Tiber No. 87, 50 piso. Colonia Henry Kissinger compares to "a Shakespearean tragedy." Cuauhtemoc. Mexico, DF, CP 06500. Tel: 208-3016 y 533- 26-43. Japan subscription saks: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku. Tokyo 160. Tel: (03) 3208-7821.

Copyright © 1995 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months-$125. 6 months-$225, I year-$396. Single issue-$l0

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

Special Report Book Reviews Departments

Dirty U.S. military Editorial 67 72 networks implicated in An end to kings, queens, and King assassination oligarchs. Orders to Kill: The Truth Behind the Murder of Martin Luther King. by William F. Pepper. Photo and graphic credits: Cover, Daily Globe, Worthington, Minn.lBrian Korthals

The transportation network required to move grain page 4, USDA. Pages 15, 31, 57, has broken down, with the result that millions of EIRNS/Stuart Lewis. Pages 6-14, bushels are rotting on the ground. This is no "natural 17-23, EIRNS/John Sigerson. disaster," but the result of strategic policies taken by the commodity cartels, mostly centered in London.

Who is responsible for the 4 world food shortage The grain transport breakdown is but one recent example of breakdown in the food supply in what is considered the most food­ secure nation in the world, and i\1ustrates the fact that "natural disasters"-bad weather, floods, droughts-are not the cause of the world's food crises.

World food shortage 6 follows imposed import­ dependency By John Hoefle and Marcia Merry Baker.

Kissinger's plan for 15 1974 food control genocide The infamous NSSM 200 revisited.

The Windsors' global food 16 cartel: instrument for starvation

Control by the food cartel 25 companies: profiles and histories

The cartel 'experts' decide 31 who e�ts Profilesof Lester Brown and Dennis A very . Volume 22. Number 49. December8. 1995

Economics International National

34 New banking crisis is set to Mexico's free-trade 60 Clinton trip marks death 42 rock France 'miracle' is based on dope knell of British Empire Two processes-social chaos and a and looting The President's visit to England. financialblowou t-are intersecting The truth about one of the most NorthernIreland. and the Irish to create one of the most unstable favored "Bush babies," former Republic. was one of the most political and financial conditions in Mexican President Carlos Salinas important events in his Presidency. the industrial world. potentially de Gortari. is finallycoming out in rivaling the ongoing Japanese public. and the ramificationsgo far, 62 Republicans respond to crisis. far beyond Mexico. Bosnia accord

36 Currency Rates The fall of the House of 44 63 Newt's freshmen are Windsor is on 'gangsta reps' 37 Brazilian government The sleaze factor in the makes a death pact with the 46 Euromed in Barcelona: Congressional Cloakroom: the case banks noble ends, but can 'free of Enid Waldholtz. trade' attain them? 39 Australia becomes a A conference report by Muriel 65 Emergency call goes out to colonial quarry Mirak -Weissbach. stop Newt

Afghansis draw blood in 40 Business Briefs 48 66 Black leaders demand war against Pakistan hearings on DOJ abuse

50 Colombia: Samper must 70 National News go, for democracy to survive Documentation: Death threats escalate vs. EIR in Colombia: a chronology.

53 Narco-terrorists behind Brazil Raytheon scandal

54 Dialogue sets Haiti trap for Clinton

56 Presidential election in Poland: shock therapy now from the left

58 International Intelligence �� Special Report

Who is responsible for the world food shortage by Marcia Meny Baker

�s week's cover photograph, showing grain piled on the �ground, out in the open, near grain storage elevators, is representa­ tive of the disintegration of the food supply system the world over. While the U.S. Midwest com and soybean harvests were coming in this fall, the U.S. rail freight system broke down. After years of financial mergers, asset stripping, and rail track removal, such companies as Union Pacific, which are considered to be financial "suc­ cesses," failed miserably on the eco­ nomic front, and could not even sup­ ply engines to move the grain cars. Millions of bushels of grain are sit­ ting, rotting on the ground. This grain transport breakdown is but one recent example of break­ down in the food supply in what is considered the most food-secure nation in the world, and illustrates the fact that "natural disasters"-bad weather, floods, droughts-are not the cause of the world's food crises. These examples, and equivalent situ­ The food cartel firms own much of the shipping capacity, barges, grain elevator storage, and other infrastructure, giving it chokepoint control over the food chain, and greater capabilities than most ations all around the world, are governments. Shown here: a railroad yard in New Orleans. "unnatural" disasters, caused by years of takedown of agriculture infrastructure under wrong policies Dozens of nations, oncy self-sufficient in many food staples, and assumptions, in particular, serv­ ing the interests of private financial have been forced into food import dependency over the past and commoditIes control circles, cen­ 30 years. And now, neither the food stocks, nor the financing, tered mostly in London. The worldwide food crisis is mea­ exists for their food supplies. surable in the decline of grains, of all

4 Special Report December 8, 1995 EIR types, produced per capita yearly. To pro­ Alliance (Nawapa), which would divert stand the crisis situationin depth, in order to vide every person with a daily diet of their river runoff from flowing into the Arctic intervene, and reverse it. preference, with sufficient calories and Ocean, southward. The Mexico College of We provide 1) the statistical overview of nutrients, would require well over 3 billion Engineers produced plans for sister the past 30 years of forcing food import tons of grain produced annually. But as of hydraulic projects. dependency on nations; 2) the record of around 1990, less than 1.9 billion tons were • In Eurasia, blasting was started on Henry Kissinger and the use of food control being produced yearly, and since then, world Siberian water diversion projects to channel as a weapon; 3) the names of the companies annual production has declined. flow southward from the Ob and Irtysh and individuals who make up the fmancial An estimated 800 million people are suf­ watersheds, to relieve the endangered Aral and commodities cartels controlling food fering from some degree of malnutrition. Sea Basin. supply lines. Besides the nearly continentwide food sup­ • Development of the Mekong River in These reviews are not the usual represen­ ply crisis in Africa, there are other locations, Southeast Asia, and improvements in the tation of today's food crisis. The "common­ such as Russia and former Soviet bloc Indian subcontinent, were outlined. sense" reasons for food shortages that you nations, plunged into crisis. Even under the But by 1975, most of these projects were usually hear-bad weather, backwardness, Soviet command economy, Russia's annual shelved. In the eyes of today's "countercul­ civil strife, etc.� all wrong. grain production averaged 100 million tons. tured" generation, they have receded into the Worse, the "authorities" on food and But output has fallen each year since 1991, mists of science fiction, if they've heard of agriculture who are usually presented by the to only around 65 million tons this year. these projects at all. media, will tell you specific lies that have Over the 1970s, the shift was made to been pre-approved for public consumption No paradox "post-industrial" policies, casino economics by the financial and commodities cartel What does the international community (speculation, derivatives), and free trade interests that created and continue to back say? Officially, the United Nations Food and demands, enforced by the IMF Bretton such bogus authorities. For example, Lester Agriculture Organization (FAO) and sister Woods system. And now that financial sys­ Brown, of Worldwatch Institute, who spoke U.N. agencies-the World Bank, the tem itself is in the process of blowout. The at the U.N. FAO 50th anniversary, is con­ International Monetary Fund (IMF), the food crisis is the evidence. stantly in the media, charging that the General Agreement on Tariffs and Trade Dozens of nations, once self-sufficient in world's population has outstripped the (GATT), and the World Trade Organization many food staples, have been forced into world's resources base, and demanding that (WTO)-blame hunger on "poverty." food import dependency over the past 30 popUlation be cut because it cannot be fed. The FAO gala conference in Quebec years. And now, neither the food stocks, nor We supply the pedigree of Lester Brown, City in October, for the FAO's 50th anniver­ the financing, exists for their food supplies. and other hired hands of the food cartels, so sary, celebrated the fact that world tonnages The GATT launched the "Uruguay Round" you know where the lies are coming from. of food have increased over five decades, for free trade in 1986, under the slogan, but lamented that 800 million people don't "One World, One Market," which culmina­ Emergency measures required have enough to eat-a "paradox," according ted in the creation in 1995 of the World The information below (with more to to the conference speakers. But most of the Trade Organization. But the cupboard of the come in follow-up reports in 1996), has been 100 or more agriculture ministers present "World Market" is bare. assembled in order to spur the mobilization knew better. Nevertheless, in 1996, the U.N. plans for emergency fmancial and economic mea­ The last 25-30 years have seen a consis­ another World Food Summit, on the theme sures to deal with food shortages and the tent decline of agriculture output potential in of "food security," while millions more peo­ overall physical economic breakdown. almost all countries. Necessary ratios of ple go hungry. Several rear-guard actions were launched infrastructure (water, transport, electricity) Behind the scenes, the private financial in 1995. They are well motivated, but they and inputs (chemicals, mechanization, quali­ interests served by the U.N., IMF, and other will not do the job. A bill is before Congress, ty seeds and stock) have fallen, to the point Bretton Woods agencies, are making sweep­ sponsored by Sen. Tom Daschle (D-S.D.) where output per capita is sharply declining. ing moves to acquire food stocks for hoard­ and others, to create a special commission to At mid-century, after World War II, there ing, and to take controlling positions in food investigate control over the U.S. food supply were mobilizations to improve agriculture commodities production, processing, and by a "concentration" of processors. An output potential on every continent. shipping. Agriculture Department investigation is • In western Europe, the Common This is the last phase of an era of food­ under way of the monopolistic actions of Agriculture Policy (CAP) of the European as-a-weapon politics, officially ushered in in IBP, the Nebraska-based, London-associat­ Community saw spectacular rises in agricul­ 1974, when then-U.S. Secretary of State ed, largest meat processor in the world. The ture productivity. Henry Kissinger (now Sir Henry KCMG) Justice Department Anti-Trust Division has • In Africa, the wave of newly indepen­ gave the keynote speech at the Rome World grand juries working on international price­ dent nations, such as Sudan (1956), made Food Conference, the predecessor to the fixing charges against the London-associat­ technology-based agriculture the keystone of 1996 Food Summit. In 1974, Kissinger pub­ ed cartel companies Cargill Inc., ADM, Tate national development plans. The "Atoms for licly talked of food security, while privately & Lyle (A.E. Staley), and CPC. Peace" movement backed such designs as the he worked to use food control as a weapon But dealing with the famine-scale food continental electrification of Africa, and the against a target list of nations. crisis, and financial disintegration, requires provision of nuc1ear-power-based energy more than prosecution of isolated acts of gridsin Egypt, Iran, and other countries. Name the names wrongdoing, or mere "bigness." Read on, to • In North America, plans were drawn In this Special Report, we have assem­ fmd out what every citizen needs to know to up for the North American Water and Power bled the documentation required to under- do the right thing.

December 8, 1995 SpecialReport 5 EIR World food shortage follows imposed import-dependency by John Hoefle and Marcia Merry Baker

he currentworld food crisis is usual­ for several years in the 1980s (see EIR, Sept. 490 million metric tons in the late 1980s, ly portrayed as a grains shortages 15, 1995). This means that more and more down to less than 250 million tons projected crisis. Annual world grains output people don't have the food they need. And for year-end 1995-the level of stocks in (grains of all kinds, including wheat, corn, whatever stocks of grains were on hand in 1969. Tbarley, millet, rice, etc.) has stagnated, or recent years as carryover from harvest to The only reason that there are stocks declined, to around 1,900 million tons or harvest or reserves for emergencies, have reported at all is thatconsumption itself (for less for the past fiveyears (see Figure at been, relatively speaking, wiped out. Only in livestock feed, cereals consumption, etc.) is 1), a time when, based on 1980s population fig­ exceptional places, such as India, are there, declining. This has been apparent for the ures, over 3,000 million tons of grains pro­ at present, significantreserves. past few years. duced annually is required to ensure that Today, world grains carryover stocks are If this grains gap is obvious on the crude dietary needs are met globally. There is at the same absolute levels they were 20 scale of world tonnage statistics, it is even something radically wrong when the total of years ago. Stocks have dropped from460- more manifest at the local level, where there the world's grains harvested stagnates, or drops. The picture is even worse on a per-capita FIGURE 1 basis (see Figure For everyone to have . ' ...... ' '. ..'. \: 2). World g,.lns utillzat'on'i&�. . J. . decent daily rations, whatever the relative production, .•toc�'.,""J+,@. millionsof metric tons ' " ,'. percentages of cereals, animal proteins, and I . ..' :.. the other food groups that anyone's dietary 2,000 preferences dictate, there needs to be well 1,800 over 14 bushels of grains available in the Production" world food chain per person, on average. 1,600 But millions are without even their daily bread. For millions, there are fewer than 10 1,400 bushels of grain per capita in the food chain. 1,200 1 .....If!!!!!� ...... " Production is below ,000 Utilization 19805 level of use 800 An indication of just how low annual grains output is, is that production is below 600 the average utilization level of the 1980s 400 (see Figure 1). Today's global grains output 200 ...""Zl __ ...... _-- I11..".....",-.....:u...... -- -- of about 1,900 million tons a year, means that annual grains output is dropping below o 1961 1965 1969 1973 1977 1985 the level of yearly global grains utilization (for direct human consumption, livestock SoufQl:Agrostats: FAO feed, seed, and all other uses) which existed

6 SpecialReport December 8, EIR 1995 are millions of undernourished people at points of need around the globe. FIGURE 2 FIGURE 3 Thus, the situation in grains production World grains production, World cereals food aid and shortages is a good marker of the overall per capita drops food crisis. Dozens of countries, with mil­ metrictons per capita millions of metriotons lions of people, have gone from national 0.38 15 self-sufficiency in basic grains, to dependen­ cy on imports or donated cereals aid. And 14 now the grain isn't there. Figure 3 shows the decline in annual global food aid in 0.36 13 grains from the World Food Program over the past 10 years, from a peak of 15 million 12 tons, down to little more than 7 million tons 0.34 this year. 11

Decline in national food 10 self.sufficiency 0.32 The decline in national food self-suffi­ 9 ciency for certain food items is shown in 8 Table for 15 selected countries at two 0.30 1 points in time, 1963 and 1990. The countries analyzed include the 13 nations specified in 7 National Security Study Memorandum 200 0.28 6 (NSSM-200), prepared under Henry 1961 69 77 93 1976 79 8 91 94 Kissinger in 1974 (see article, p. 15), plus 85 82 85 8 Source: FAO Agroslats. Source: FAO AgrO$ta\s. the former U.S.S.R. and China (see Figure 4). All 15 nations are hereafter called the "targetted" group. By 1990, there were significant drops in food self-sufficiency over the prior 27 -year period. Look first at cereals (Table I, col­ TABLE 1 umn one). In 1963, Mexico was 100% self­ National food self-sufficiency declines, 1963-90 sufficient in grains output; it was a grains­ 100% '" food self-sufficiency; under 1 00% = deficit; more than 1 00% ,. surplus exporting nation. As of 1990, Mexico was Cereals Pulses Oils· only 79% self-sufficient, Le. , a grains­ Milk Nation 1963 1990 1963 1990 1963 1990 1963 1990 importing nation. The situation is even WESTERN HEMISPHERE worse today. Mexico 79% :57% 68 Elsewhere in the Western Hemisphere, 100% 104% 85% 110% 87% % Brazil 89% 76% 100% 96% 105% 118% 96% Brazil was about 90% self-sufficient in cere­ 96% 86% 87"k 100% 76% 79% 91% 79% als in 1963, but dropped to 76% self-suffi­ Colombia ;94% cient in 1990. Colombia remained about the AFRICA same, staying at only 86-87% self-sufficient. Other nations in Thero-America (not shown), saw drastic declines in basic grains self-suf­ ficiency. For example, Haiti, in 1970, was close to 95% self-sufficient; but, as of 1990, self-sufficiency had dropped down to 45%. In Africa, Egypt was 84% self-sufficient in cereals production in 1963, and only 62% self-sufficient in 1990. Ethiopia was over 100% self-sufficient in grains supply in 1963, and dropped down to 81 % self-suffi­ cient in 1990. Nigeria remained at 99% self­ sufficiency in grains the entire period, but, as will be shown below, grains declined markedly as a component of the daily diet. Other locations in Africa saw drastic declines in grain self-sufficiency. For exam­ ple, Algeria was 76% self-sufficient in grains in 1970; in 1990, Algeria was only

December 8, 1995 SpecialReport 7 EIR FIGURE 4 Countries included in this study

Export source ���� United States ,-� Canada Argentina France South Africa Australia

Targetted • countries: by NSSM 200: Bangladesh Brazil Colombia Egypt II! Ethiopia India Indonesia Mexico Nigeria Pakistan Philippines Thailand Turkey non-NSSM 200 targets: China U.S.S.R.

44% self-sufficient. China, throughout the period, was 95- 57%; and in milk, from87% self-sufficiency On the Asian subcontinent, the cereals 100% self-sufficient in grains, with changes down to 68%. Brazil became a source of self-sufficiency ratios show no declines for from year to year from being a net importer soybean oil exports over this period-for the India, which went from 96% to 105% over or exporter. cartel companies. 1963 to 1990, and Pakistan, which stayed at The Soviet Union, likewise, remained Egypt's self-sufficiency in pulses and the 93-95% level. India has managed to grains import-dependent throughout the oils declined. Nigeria, which had been a stockpile as much as 40 million tons of 1963-90 period, showing about 87-89% source of cartel tropical oils exports, experi­ grains as of year-end 1995, and may under­ cereals self-sufficiency. enced a decline as well. In 1963, Nigeria take certain exports. However, Bangladesh was 207% self-sufficient in oils, and in has gone from 106% grains self-sufficiency Grains supply is misleading 1990, only 102% self-sufficient. in 1963, down to 87%, and is subject to However, restricting the food crisis to the On the Indian Subcontinent of Asia, note wide swings from year to year in grains sup­ metric of the grains supply situation is a the declines in Bangladesh's self-sufficiency plies. deliberately misleading practice (see article, in pulses and milk between 1963 and 1990. In Southeast Asia, wide annual swings in p. 16) which leaves out the essentials of the In Southeast Asia, various patterns are staple grains are also now common. In 1963, crisis that has come, over the past 30 years, apparent. The Philippines dropped in self­ Indonesia was 89% self-sufficientin cereals; to extend throughout the entire national agri­ sufficiency from 97% to 47% in pulses, and in 1990, it was 100% self-sufficient. But in cultural sectors and food supply systems. also declined as a source of tropical oils several years since then, it has fallen back to Many of these 15 nations also became commodities for cartel export. rely on imports. Similarly, the Philippines supply-short and import-dependent, i.e., China remained relatively the same in stayed at 80-83% self-sufficiency levels for experienced food self-sufficiency declines, self-sufficiency for these staples. And, like­ 1963 and 1990, but in recent years has seen for other basics in their diet. Also shown in wise, Turkey and the former U.S.S.R. did growing dependency because of shortfalls in Table I are pulses (peas, beans), oils (tropi­ not experience radical changes. rice. Thailand, from which the cartel trading cal, olive, com, or other vegetable fats), and Overall, the increase in food import­ companies export many kinds of commodi­ milk (including dairy products other than dependency during 1963-90, although hailed ties (corn, livestock feed, meat, processed butter). by United Nations officials and the com­ foods, etc.), was 159% self-sufficient in Note the sharp declines in food self-suf­ modities cartel-backed "experts" and others cereals in 1963, and 131% in 1990. ficiency in non-grains diet staples. For as reflecting geographical "competitive In Western Asia, Turkey was 113% self­ example, for pulses, Mexico dropped in self­ advantages," "consumers' rights to access sufficient in grains in 1963, and was still sufficiency from 104% in 1963 down to world markets," or other such euphemisms, 99% self-sufficient in 1990. 85% in 1990; in oils, from 110% down to in fact, reflects the impact of successive

8 Special Report December 8, 1995 EIR to be eating for a decent diet, but rather, FIGURES FIGURE 6 merely show what part of their diet, howev­ Mexico loses cereals Mexico's per-capita er inadequate, is imported. Look at what this self-sufficiency cereals consumption means in the case of Mexico. percent self-sufficient kilograms per person Figures 5 and 6 show the drop in cereals self-sufficiency in Mexico from 1970 to 110% 480 1994, and the drop in per-capita cereals con­ 105% 460 sumption (whether for direct consumption, or via the animal protein cycle) over the 440 100%��------�-- same time period. It is estimated that up to one-third of the Mexican population is now 420 95% suffering some form of malnutrition. In the 400 spring of 1995, the federal government 90% declared 12 official hunger zones in the 380 republic. 85% 360 Start from food use profiles 80% To provide an overview of the world 340 food crisis, apart from any one food com­ 75% 320 modity, one country, one crop season or har­ vest, we here publish a series of figures 70% 300 based on the U.N. Food and Agriculture 1970 74 78 82 86 90 94 1980 82 84 86 88 90 92 94 Organization agricultural database. The fig­

Source: EIR. Source; EIR. ures take 14 basic food groups common to most countries' diets, and their tonnages in terms of annual supplies, over the time peri­ years of International Monetary Fund (IMF) increasingly forced into food import-depen­ od approximately 1960-90, in terms of sev­ conditionalities and Bretton Woods policies, dency. At the same time, cartel commodities eral ratios, including production compared in which developing nations were denied the companies made a killing in profits off of to "supply" (the quantity available from pro­ means to build up needed agricultural infra­ their domination over both the export-import duction, plus the net adjustment of stocks, structure (energy, water, transport, handling, trade, and domestic food processing and dis­ plus the net adjustment for imports and storage, processing) to provide for national tribution. exports), and production and supply per food supplies. The deficits in food supplies shown in capita. Over this period, nutrition levels have the food self-sufficiency ratios in Table 1, The 14 food groups are listed in Table 2. dropped in most countries, as nations were are not measured against what people ought For purposes of comparison, we have not

TABLE 2 FIGURE 7 food list World food supply utilization EIR billions of metrictons

6

5

4

3 ��fYpl' "

2

1964 1967 1970 1973 1976 1979 1982 1985 1988 Feed Food Other uses Processed Seed Waste • • II I III • Source: FAO Agrostats.

December 8, 1995 SpecialReport 9 EIR FIGURE 8 FIGURE 9 North America food supply utilization Ibero-America foodl su pply utilization millions of metric tons millions of metric tons

600 900 800 700 I 600 I 500 400 300 200

Feed Food Other uses Processed Seed II Waste Feed Food Other uses Processed Seed Waste • • � f III • • It III II Source: FAO Agrostats. Source: FAO Agrostats.

FIGURE 10 FIGURE 11 ! Western Europe food supply utilization Eastern Europe food :supply utilization millions of metric tons millions of metric tons I 800 1,000 '\ j 700 900 800 600 700 500 600 400 500 4 0 300 0 300 200 200 100 100 o 1961 1964 1967 1970 1973, 1976 1979,

Feed Food Other uses Processed Seed Waste Feed Food Other uses Processed • • II III II • • I! Source: FAO Agrostats. Source: FAO Agrostats.

FIGURE 12 FIGURE 13 Africa food supply utilization Middle East food supply utilization millions of metric tons millions of metric tons

450 120 , 400 100 350 .� 300 80 250 60 200 150 40 100 20 50

Feed Food Other uses Processed Seed Waste Feed Food Other uses Processed III See Waste • • i I III II • • It 1 d II Source: FAO Agrostats. Source: FAO Agrostats, t

10 Special Report December 8, 1995 EIR FIGURE 14 FIGURE 15 I i Indian Subcontinent supply utilization East Asia food supply utiliZation food ¥ i millions of metric tons millions of metric tons

800 600

500

400

300

200

100

Feed Food Other uses Processed Seed Waste Feed Food OtheJ uses Proc ssed Seed Waste • • •• III Ii • • II III Source: FAOAg ats. Source: FAO Agrostats. rOst

listed seafoods. continent. Beginning in the 1970s, the use of sugar We begin by looking at the world profile • Food. Africa shows the highest rela­ cane and other biomass for alcoh01 fuel, of annual utilization of the total tonnages of tive share of food going for direct human e.g., "gasohol," was initiated on a large these 14 food groups, and major geographic consumption. This reflects the extensive scale in Brazil. In the United States, begin­ regions. We then proceed to look at the food subsistence production of cassava and vari­ ning in the late 1970s and increasingly up supply and import-dependency ratios on a ous grains, that do not go through even to the present, com has been processed for per-capita and national basis for two select­ intermediate processing. ethanol. ed groups of nations, as explained below. • Other uses. Extensive use of agricul­ • Processed. The regions show differ­ Figure 7 shows the total tonnages of tural commodities for non-food or feed ences in the degree of intermediate process­ annual use of the 14 selected food groups, uses show up dramatically in the Americas. ing of food commodities, with the least pro- from 1961 to 1990, in terms of how much tonnage goes for feed (food for Hvestock), FIGURE 16 FIGURE 17 food (direct human consumption, the largest Targetted countries food Source c untries food tonnage), "other" uses (ranging from using b production and supply biomass for fuel, to plastics), processing production and supply (intermediate stages of food preparation), metric tons per capita metric tons percapita seed, and waste. 2.0 The increase from less than 3 billion tons of basic food commodities in the food sup­ ply to close to 6 billion tons over the rough­ ly 30-year period, comes out to a change per capita of from about 2,050 pounds of food 1.5 commodities per person in 1963, to about 2,200 pounds per person in 1990. However, on a regional and national scale, the vol­ umes and ratios differ greatly. 1.0 The next series of figures (Figures 8 through 15) show the food supply utilization profiles for major geographic regions-the Western Hemisphere, western and eastern Europe, Africa, the Middle East, the Indian 0.5 Subcontinent, and East Asia. Some of the most striking differences, even at this gross level of aggregation, are noted, taking each of the uses for food com­ modities in order shown on the graphics. • Feed for livestock. North America and 1963 1967 1970 1980 1990 1963 1967 1970 1980 1990 Europe show relatively the largest volume of Production II Supply II Supply agricultural commodities going into live­ • • ProdLction stock feed. In contrast, very little goes for Source: FAD Agrostats. Source: FAO Agrostats. livestock feed in Africa or in the Indian sub- !

December 8, 1995 SpecialReport 11 EIR cessing being done in Africa and the Middle FIGURE 18 East. Per.capita food production in six export source countries • Seed. The necessary volumes of seed metric tons per capita for the annual crops cycles are shown for each geographic region. 4 • Waste. Relatively the largest volume of food commodities wasted shows up in Africa and in eastern Europe. What this reflects is the absence of protection-stor­ age facilities, pesticides and other chemicals, 3 refrigeration, and transportation. Loss rates to waste add up to 40% in many tropical regions.

Who eats, and who doesn't? 2 For a closer look at the food supplies cri­ sis, we focused on two groups of countries (see Figure 4) for five points in time from 1963 to 1990. There are the "targetted" nations, the 13 designated in the Kissinger NSSM-200, plus China and the former U.S.S.R. In contrast, there are the "export source" countries--the United States, Canada, Australia, France, South Africa, and Argentina. These latter six nations together are o 1963 1967 1970 1980 1990 the origin for a large percentage of the total tonnages of food products that the commodi­ USA Canada • Argentina France • South Africa Australia • • • ties cartels control and use to dominate world Source: FAO Agrostats. trade and food supplies (see article, p. 25). Compare Figure 16 with Figure 17, and

FIGURE 19 FIGURE 20 FIGURE 21 Mexico food production Nigeria food production Bangladesh food and supply and supply production and supply metric tons per capita metric tons per capita metric tons per capita

2.0 2.0 2.0

1.5 1.5 1.5

1.0 1.0 1.0

0.5 0.5 0.5

o o o 1963 1967 1970 1980 1990 1963 1967 1970 1980 1990 1963 1967 1970 1980 1990 Production Supply Production Supply Production Supply • II • • • • Source: FAO Agrostats. Source: FAO Agrostats. Source: FAO Agrostats.

December 8, 1995 12 Special Report EIR deterioration in the composition of the diet FIGURE 22 FIGURE 23 can be seen by looking in more detail at the India food production China food production constituent food groups that make up the and supply and supply diet. Look, for example, at Nigeria. metric tons per capita metric tons per capita Figure 24 shows the relative percentages

2.0 2.0 of the different food groups that make up the total annual food utilized in the country, in 1963, and then in 1990. We are looking at production, because it is about equivalent to supply in Nigeria. 1.5 1.5 The largest component is starchy roots, about 56% of the diet in 1963. In 1990, this has gone up to almost 67% of the diet. Mostly, this is cassava, which, along with a variety of companion foods, is part of West 1.0 1.0 African cuisines. However, the increased use of cassava from 1963 to 1990 reflects not a dietary preference, but rather a forced reliance on the root vegetable as a heavy­

0.5 bearing crop, on which people can subsist, i.e., it's filling, but not nutritious. This monoculture reliance is labeled a "success story" by cartel-affiliated groups active in promoting cassava in Nigeria and o Zaire, such as, for example, the International 1963 1967 1970 1980 1990 1963 1967 1970 1980 1990 Institute of Tropical Agriculture and the International Food Policy Research Institute . Production Supply Production Supply • III • Ii What is shown as the "other" segment on Source: FAO Agrostats. Source: FAO Agrostats. the Nigeria food charts, is the total of all 12 other food types. In 1990, this included 5.4% vegetables; 3.5% fruits; 2% peas and you see that, per capita, the levels of food supply come near that of the "export source" beans; 1.6% sugar crops; 1 % meats, and production and supply are about the same in nations. even lesser amounts of the remaining food the "targetted" nations; but in the "export groups. source" group of nations, production far Diet deteriorates For comparison, look at the shares of dif­ exceeds supply. While Figures 19 to 23 indicate how low ferent food groups in the U.S. diet in 1967 Moreover, the level of production and the absolute tonnages of food production (Figure 25). This shows supply, not produc­ supply in the targetted nations is less than a and supplies are in the targetted nations, the tion, because the United States is a cartel metric ton per capita per year, whereas in the "export source" nations, there are about l.75 tons of food supply per capita per year. FIGURE 24 Over 1963-90, there is an increase in the Nigeria food production, and per-capita production and supply levels in 1963 1990 percent of total annual food utilized the targetted countries, from 0.7 metric tons in 1963 up to 0.9 tons in 1990, but the tar­ getted nations group never comes close to even the 1963-67 level of supplies per capita in the "export source" nations. Furthermore, Figure 18 shows the food production per capita in each of the six "export source" nations. Look at the high tonnages in Australia and Canada, in partic­ ular-the Commonwealth nations used as postwar "granary" economies for London­ interlocked commodities cartels. Now look at certain individual nations in the other group, the "targetted" nations, in terms of levels of production relative to sup­ f ply (Figures 19 to 23). Shown are Mexico, 1990 1963 ! Nigeria, Bangladesh, India, and China. In Source: FAO Agrostats. none of these nations does production or

December 8, 1995 Special Report 13 Em time periods, from 1963 to 1990, for the FIGURE 25 United States and the two economic groups States food supply, United 1967 of the study. percent of total annual foodutilized Over 70% of the work force of the "tar­ getted" nations were in the agricultural sec­ Other (2%) tor in 1963; and during the subsequent three­ decade period of increasing world food Vegetables (5%) import-dependency, and poorer diets, this percentage fell to only about 58%. ex l d ng wine) (6%) Moreover, for most countries, this does not Fruit ( c u i reflect greater agricultural productivity Cereals gains, but rather a dispossession of farm beer) populations, and their migration into the Oilcrops(7%) (excluding (43%) shanty camps of urban areas. In the United States, the percentage of the work force in agriculture dropped from 5% in 1963 to under 3% by 1990. In the Sugar crops (12%) "export source" nations. overall, the percent­ age of workers in agriculture dropped from 11 % in 1963, down to 4.5% by 1990. In the next installment of this EIR series excluding butler Starchy ro ts (4%) on food import-dependency and free trade, Milk (15%) o we will show in detail the lack of necessary • Source: FAO Agrostats. ratios of inputs (fertilizers, mechanization, transport, and other infrastructure) that char­ acterizes the agriculture sectors over the past "export source" nation. The most striking quate in amount and make-up, nevertheless 30 years. feature of the U.S. food supply, is the variety involves most of the time and effort of the and quantity of many different foods. populations in the "targetted" group of ... For further comparison, look at the rela­ nations. FIGURE 27 tive shares of food groups in the food supply One measure of the burden of producing workers as in China, in 1963 and in 1990 (Figure 26). the daily diet is the relatively large percent­ Agricultural work age of workers engaged in agriculture, as percent of total Burden of producing food opposed to manufacturing, construction, force These data document the worsening and socially necessary tasks such as educa­ 80% inadequacies in the food supplies of many tion, transport, and other infrastructure. nations, from the 1960s to the present. But, Figure 27 shows agricultural workers as a producing the food supply, however inade- percentage of the total work force, for five

60% FIGURE 26 food supply, China 1963 and 1990 50% percent of total annual foOd utilized

40%

30%

20%

10% 'boO 0/01 I 1963 1967 1970 1980 Targ tled countries • e source countries Export 1963 1990 United States • Source: FAO Agrostats. Source: FAO Agrostats.

14 Special Report December 8, 1995. EIR Kissinger's 1974 plan fo r fo od control genocide by Joseph Brewda

n Dec. 10, 1974, the U.S. National would quickly increase their relative politi­ Security Council under Henry cal, economic, and military strength. Kissinger completed a classified For example, Nigeria: "Already the most 2oo-page study, "National Security Study populous country on the continent, with an MemorandumO 200: Implications of estimated 55 million people in 1970, Worldwide Population Growth for U.S. Nigeria's population by the end of this cen­ Security and Overseas Interests." The study tury is projected to number 135 million. This falsely claimed that population growth in the suggests a growing political and strategic so-called Lesser Developed Countries role for Nigeria, at least in Africa." Or (LDCs) was a grave threat to U.S. national Brazil: "Brazil clearly dominated the conti­ security. Adopted as official policy in nent demographically." The study wamed of November 1975 by President Gerald Ford, a "growing power status for Brazil in Latin NSSM 200 outlined a covert plan to reduce America and on the world scene over the population growth in those countries through next 25 years." birth control, and also, implicitly, war and famine. Brent Scowcroft, who had by then Food as a weapon

replaced Kissinger as national security advis­ There were several measures that HenryKissinger oversaw the preparation of er (the same post Scowcroft was to hold in Kissinger advocated to deal with this alleged National Security Study Memorandum 200, the Bush administration), was put in charge threat, most prominently, birth control and which wrongly equated population reduction of implementing the plan. CIA Director related population-reduction programs. He with U.S. national security interests. George Bush was ordered to assist also warned that "population growth rates · Scowcroft, as were the secretaries of state, arelikely to increase appreciably before they on birth control programs unnecessary. treasury, defense, and agriculture. begin to decline," even if such measures "Rapid population growth and lagging food The bogus arguments that Kissinger were adopted. production in developing countries, together advanced were not original. One of his A second measure was curtailing food with the sharp deterioration in the global major sources was the Royal Commission supplies to targetted states, in part to force food situation in 1972 and 1973, have raised on Population, which King George VI had compliance with birth control policies: serious concerns about the ability of the created in 1944 "to consider what measures "There is also some established precedent world to feed itself adequately over the next should be taken in the national interest to for taking account of family planning perfor­ quarter of century and beyond," he reported. influence the future trend of population." mance in appraisal of assistance require­ The cause of that coming food deficit The commission found that Britain was ments by AID [U.S. Agency for was not natural, however, but was a result of gravely threatened by population growth in International Development] and consultative western financial policy: "Capital invest­ its colonies, since "a populous country has groups. Since population growth is a major ments for irrigation and infrastructure and decided advantages over a sparsely-populat­ determinant of increases in food demand, the organization requirements for continuous ed one for industrial production." The com­ allocation of scarce PL 480 resources improvements in agricultural yields may be bined effects of increasing population and should take account of what steps a country beyond the financial and administrative industrialization in its colonies, it warned, is taking in population control as well as capacity of many LDCs. For some of the "might be decisive in its effects on the pres­ food production. In these sensitive relations, areas under heaviest population pressure, tige and influence of the West," especially however, it is important in style as well as there is little or no prospect for foreign effecting "military strengthand security." substance to avoid the appearance of coer­ exchange earnings to cover constantly NSSM 200 similarly concluded that the cion." increasingly imports of food." United States was threatened by population "Mandatory programs may be needed "It is questionable," Kissinger gloated, growth in the former colonial sector. It paid and we should be considering these possibil­ "whether aid donor countries will be pre­ special attention to 13 "key countries" in ities now," the document continued, adding, pared to provide the sort of massive food aid which the United States had a "special polit­ "Would food be considered an instrument of called for by the import projections on a ical and strategic interest": India, national power? ...Is the U.S. prepared to long-term continuing basis." Consequently, Bangladesh, Pakistan, Indonesia, Thailand, accept food rationing to help people who "large-scale famine of a kind not experi­ the Philippines, Turkey, Nigeria, Egypt, can't/won't control their population enced for several decades-a kind the world Ethiopia, Mexico, Brazil, and Colombia. It growth?" thought had been permanently banished," claimed that population growth in those Kissinger also predicted a return of was foreseeable-famine, which has indeed states was especially worrisome, since it famines that could make exclusive reliance come to pass.

December 8, 1995 Special Report 15 EIR The Windsors' global fo od cartel: instrument fo r starvation by Richard Freeman

n to twelve pivotal companies, companies were created by having had a larly France and Germany; the British assisted by another three dozen, run section of this ancient set of Mesopotarnian­ Commonwealth nations of Australia, T:the world's food supply. They are the Roman-Ve netian-British food networks and Canada, the Republic of South Africa, and key components of the Anglo-Dutch-Swiss infrastructure carved out for them. New Zealand; and Argentina and Brazil in food cartel, which is grouped around The Windsor-led oligarchy has built up a Ibero-America. Through the centuries, the Britain's House of Wm dsor. Led by the six single, integrated raw materials cartel, with oligarchy has taken control of these regions' leading grain companies-Cargill, three divisions---energy, raw materials and markets, and thus over the world food sup­ Continental, Louis Dreyfus, Bunge and minerals, and increasingly scarce food sup­ ply. These four regions have a population of, Born, Andre, and Archer Daniels plies. Figure represents the situation. At at most, 900 million people, or 15% of the 1 Midlandlfopfer-the Windsor-led food and the top is the House of Windsor and Club of world's population. The rest of the world, raw materials cartel has complete domination the Isles. Right below are two of the princi­ with 85% of the population-4.7 billion over world cereals and grains supplies, from pal appurtenances of the House of Windsor: people-is dependent on the food exports wheat to corn and oats, from barley to the World Wide Fund for Nature, headed by from thoseregions. sorghum and rye. But it also controls meat, the Doge of London, Prince Philip, which British food cartel control intensified dairy, edible oils and fats, fruits and vegeta­ leads the world in orchestration of ethnic after World WarII. Regions such as America bles, sugar, and all forms ofspices. conflict and terrorism, such as the British­ had long been seen as important areas in Each year tens of millions die from the created afghansi movement; and British which to increase control, in order to main­ most elementary lack of their daily bread. intelligence's Hollinger Corp. of Conrad tain the cartel's global domination, especially This is the result of the work of the Windsor­ Black, which is leading the assault to around the turn of the twentieth century led cartel. And, as the ongoing financial col­ destroy Bill Clinton and the American when Minneapolis, under the control of the lapse wipes out bloated speculative financial Presidency. Pillsbury and Peavey families, replaced paper, the oligarchy has moved into hoard­ The firms within each cartel group are Hungary as the world's major miller of grain. ing, increasing its food and raw materials listed. While they maintain the legal fiction But beforeWorld War II, the amount of grain holdings. It is prepared to apply a tourniquet of being different corporate organizations, in that crossed borders, or oceans, seldom to food production and export supplies, not reality this is one interlocking syndicate, exceeded 30 million tons a year. America's only to poor nations, but to advanced sector with a common purpose and multiple over­ share of that was usually 10 million tons or nations as well. lapping boards of directors. The Windsor­ less. This was a substantial amount, but small The use of food as a weapon can be centered oligarchy owns these cartels, and compared to the levels of trade that would found at least four millennia ago in Babylon. they are the instruments of power of the oli­ follow. World War II ravaged the globe, cre­ Imperial Rome took this tack, as did Ve nice garchy, accumulated over centuries, for ating mass hunger, especially in Europe and and various Ve netian offshoots, including breaking nations' sovereignty. what is today called the Third World. Under the Antwerp-centered, powerful Burgundian The control works as follows: The oli­ the impetus of American programs such as duchy, and the Dutch and British Levant garchy has developed four regions to be the "Food for Peace," PL 480, the worldwide companies, East India companies, and We st principal exporters of almost every type of trade in grain shot up to 160 million tons by India companies. Today, food warfare is food; the oligarchy has historically acquired 1979. Today it is 215 million tons per year. firmly under the control of London, with the top-down control over the food chain in In addition, tens of millions of tons of other help of subordinate partners in especially these regions. These four regions are: the foodstuffs, from meat to dairy, are traded Switzerland and Amsterdam. Today's food United States; the European Union, particu- each year.

16 Special Report December 8, 1995 EIR FIGURE 1 House of Windsor control of raw materials

Fund for Nature

Hollinger Corporation

Royal Dutch Hanson Trust Archer Daniels Grand Metropolitan Anglo-American Shell Midland (Pillsbury) Enron Lonrho Cargill RTZ j Barrick Gold British Unilever Rothschild • Cadbury N.M. Petroleum U Nowmj1 M'o''''

Edible fats Sugar, Beverages, Food Grain Meat Dairy and oils cocoa drink distribution

Continental IBP Nestle Unilever Nesti8 Guinessl Nestle Cargill ConAgra Borden ADM Ta te & Lyle Bass Grand Metropol.ilan Bunge & Born Cargill Kraft Proctor Cadbury Seagra & (Pillsbury) Gamble 1 Louis Sara Lee M.E. Frank CocaCol,a RJR Nabisco Dreyfuss I Hormel Hougwegt PepsiCola Phillip Morris ADM-Toepfer Unilever AnheusJr- Kellogg Andre Busch General Mills Quaker Oats United Biscuits BSN Hillsdown Holdings Ralston Purina Safeway Chiquita International

December 8, 1995 SpecialReport 17 EIR FIGURE 2 FIGURE 3 FIGURE 4 Control of international Control of international Control of grain U.S. wheat exports coarse grain exports exports by largest cartel percent of total ! million tons percent of total ! millions of tons companies percent of total U.S. grain exports 100% 97.2 100% 69.9 6 � Haam 100%

80% 80% 80%

60% 60% 60%

40% 40% 40%

.20% 20% 20%

0% 0% 0% Exports Production Corn Barley Sorghum Corn Oats Sorghum ,. Argentina Other Argentina Other • Largest cartel companies Other Canada and Australia • Canada and Australia, South Africa • • United States European Union United States European Union Sources: EtR Interviews; The Grain Traders. • � • � SOurce: U.s. Department of Agriculture, Economic Source: u.s. Department of Agriculture. Economic Research Service. Trade Analysis Branch. 1994/5 Research Service. Trade Analysis Branch. 1994/5 crop prodUction figures. crop production figures. more detailed profile, with names and addresses, of the key forces in the cartel's control of the world's food supply. It is proper for countries with grain, In 1983, Robert Bergland, President meat, dairy, and other surpluses to export Jimmy Carter's agriculture secretary in Concentration in them. But the cartel's four exporting regions 1976-80, told an interviewer concerning four food groups were given preeminence in a brutal manner, Cargill, the world's largest grain company: Grains and grain products, milk and while much of the rest of the world was "Cargill's view is ...[that] they generally dairy products, edible oils and fats, and meat thrust into enforced backwardness. The oli­ regard the United States as a grain colony." provide the majority of the intake of calo­ garchy denied these nations seed, fertilizer, Bergland continued, "When [in 1979] the ries, as well as proteins and vitamins, which water management, electricity, rail trans­ Russians invaded Afghanistan and Jimmy keeps the human species alive. Grain and portation, that is, all the infrastructural and Carter asked how much grain the Russians grain products can be consumed as animal capital goods inputs needed to turn them had bought [from the United States] ...we feed (especially com and oats), and directly into self-sufficient food producers. These couldn't tell him because we didn't know." for human consumption, sometimes in grain nations were reduced to the status of vassals: But Cargill and the other grain cartel compa­ form (the case of rice or barley), but often in Either import from the cartel's export nies knew. In 1976, when Cargill, a milled form, such as in bread and tortillas. regions, or starve. Continental, and other grain cartel compa­ The "Big Six" leading grain cartel com­ Meanwhile, the Anglo-Dutch-Swiss food nies sold the Russians a record 12.4 million panies are: Minneapolis- and Geneva-based cartel reduced the export regions, which tons of American and Canadian grain (creat­ Cargill; New York-based Continental; Paris­ supposedly enjoy favored status, to a state of ing a grain shortage in the United States), based Louis Dreyfus; Sao Paulo, Brazil- and servitude as well. During the last two the administration of President Gerald Ford Netherlands, Antilles-based Bunge and decades, millions of farmers in the United learned of the sales only after the fact. The Born; Lausanne, Switzerland-based Andre; States, Europe, Canada, Australia, and grain may have been American grown, but and Illinois- and Hamburg, Germany-based Argentina have been wiped out. For exam­ the Anglo-Dutch-Swiss cartel disposes of it Archer Daniels MidlandlTopfer. The first ple, in 1982, the United States still had as it pleases. five of the companies are privately owned 600,000 independent hog farmers. Today, This article will document, for the first and run by billionaire families. They issue that number is less than 225,000. The food time, the extent of concentration and control no public stock, nor annual report. They are cartel companies have concentrated hog pro­ that the British-centered raw materials cartel more secretive than any oil company, bank, duction into their own hands. Farmers were exercises over both the international and or government intelligence service. Just two paid far below a parity price, i.e., a price that domestic trade in food. It will look at the of these companies, Cargill and Continental, covers costs of agricultural production plus a food cartel's international and domestic con­ control 45-50% of the world's grain trade. fair profit for investment in future produc­ trol of grains, milk, edible oils and fats, and We look at the food cartel's control over tion. meat. The article which follows provides a each of the four dominant food groups.

18 SpecialReport December 8, 1995 EIR Grains: Grains, or cereals as they are trol 60-70% of France's grain exports. domination. No other forces in the world, often called, consist of wheat; the coarse France is the biggest grain exporter in including governments, are as well orga­ grains, including corn, barley, oats, Europe (the world's second largest grain nized as the cartel, and therefore, London's sorghum, and rye; and rice. exporting region), exporting more grain than power in this area remains unchallenged. The Anglo-Dutch-Swiss cartel's control the next three largest European grain export­ Milk and Milk Products: The big over wheat exports is shown in Figure 2. ing nations combined. exporters of milk and milk products are For the crop year 1994-95, the cartel's four Figure 5 shows that the Big Six, along three out of the cartel's four basic export food export regions produced and traded with some affiliated Argentine companies regions: the United States; the European 88% of the world's wheat exports of 97.2 such as Nidera and ACA, control 67.8%, or Union plus Switzerland (which is not an EU million metric tons. two-thirds, of Argentina's grain exports. member); and the British Commonwealth But, the four cartel food export regions, Argentina is the fourth largest grain exporter countries of New Zealand, in particular, and while accounting for 88% of worldwide in the world. Australia. wheat exports, accounted for only 39% of Canada and Australia combined are the In 1994, the cartel's domination of dairy all the world's wheat production of 522.4 world's third largest grain exporting region, and dairy products was astonishing. Figure million metric tons in the 1994-95 crop year after America and Europe. Although they 6 shows that the cartel's food export regions (see Figure 2). That is, their share of world have their own unique internal picture, with controlled 89% of the world's export of wheat exports was more than double their a modicum of political influence from farm­ whole milk powder, of 1.08 billion metric share of world wheat output. This under­ ers, both are British Commonwealth nations, tons; 94% of the world's export trade of 653 scores the point that the cartel built up four under the thumb of Queen Elizabeth II. million metric tons of butter; and 86% of the regions as the choke points over the world's In sum, the Anglo-Dutch-Swiss food car­ world's export trade of 1.11 billion metric food supply, even though these regions, col­ tel dominates 80-90% of the world grain tons of cheese. It also controlled a huge por­ lectively, are not often the largest producers. trade. In fact, however, the control is far tion of the export of condensed milk. Figure 3 shows, for the 1994-95 crop greater than the sum of its parts: The Big Six The case of whole milk powder exempli­ year, the percentages that the cartel's four grain companies are organized as a cartel; fies the process of the cartel's control. Milk food export regions control of the exports of they move grain back and forth from any is not usually exported in liquid form, except the leading coarse grains. They control 95% one of the major, or minor, exporting for short distances over nearby borders; it is of world annual com exports, of 69.9 mil­ nations. Cargill, Continental, Louis Dreyfus usually exported either as whole milk or lion metric tons; 76% of world barley et aI. own world shipping fleets, and have skim milk powder, or as condensed milk. exports, of 14.8 million metric tons; and long-established sales relationships, finan­ When it is exported as whole milk powder, 97% of world sorghum (milo) exports, of 6 cial markets, and commodity trading it is reconstituted upon delivery, usually at million metric tons. exchanges (such as the London-based Baltic the ratio of 10 parts water to 1 part whole Within these export regions, the cartel's Mercantile and Shipping Exchange) on milk powder. Of the world's export of 1.08 six leading grain companies have, historical­ which grain is traded, which completes their billion metric tons of whole milk powder in ly, built up total domination of the external grain markets. While the cartel's export regions dominate 76-97% of the world's FIGURE S grain trade, depending on the grain, the car­ Nine members of the grain cartel cont ! .. two-thirds of 1 tel's six grain companies also control the Argentina's grain exports exports of the four regions. percent total Argentina graine xports l.••• of For example, in the 1994-95 crop year, the United States exported 102 of the world's 215 million metric tons in grain exports, nearly half the total. It accounted for 33% of world wheat exports, 83% of world corn exports, and 89% of world \ sorghum exports, making it the leading , exporter in each of these three markets. ! Now, let us turn to the leading grain companies' command of America's grain export market, with America itself control­ NIDERA (1 1%) ling nearly one-half of all world grain exports. Figure 4 shows that the cartel's Big Six grain trading companies own and con­ trol 95% of America's wheat exports, 95% of its com exports, 90% of its oats exports, and 80% of its sorghum exports. A few smaller companies, almost all in the grain & cartel's orbit, control the remaining market Bunge Born (7%) share. The grain companies' control over the INDO (7%) American grain market is absolute. Source:Ambito Financiero (Argentina). Sept 28. 1993. The Big Six grain companies also con-

December 8, 1995 Special Report 19 EIR were SF 56.9 billion, or $45.5 billion. Its FIGURE 6 1994 profits were $4.8 billion, bigger than FIGURE 7 Control of international all but a half-dozen companies. Control of international and milk products Nestle chairman Helmut Maucher is on exports milk meat percent of lolal l million,s of Ions the board of J.P. Morgan, British intelli­ gence's leading bank in the United States. Its 100% 5.5 board of directors serves as a retirement home for the world's central bankers: Fritz 80% Leutwiller, former chairman of the Basel, Switzerland, Bank for International Settlements, the central bank of central 60% banks, is on Nestle's board, as is Paul Volcker, who, as chairman of the U.S. Federal Reserve Board in 1979 and the early 40% 1980s, put the world economy through what was referred to as "controlled disintegra­ 20% tion." Borden is the second biggest milk pow­ der producer, through its KLIM milk pow­ 0% der division. It is also one of the world's Milk Butter Cheese biggest condensed milk producers, through Powder its Eagle Brand sweetened condensed milk. and Veal Other In 1995, Borden was bought by the lever­ II � China, Taiwan, and Hongkong Australia and New Zealand aged buy-out firm of Kohlberg Kravis Argentina and Brazil Other • • Union and Switzerland Roberts, which is headed by Henry Kravis, Australia, New � European • Canada, Zealand United States who was finance committee co-chairman of United States European Union • George Bush's 1992 Presidential campaign. • � Source: Food and Agricultural Organization of the As a result of the 1988 merger of R.J. Source: U.S. Departmentof Agrtcutture, Economic Unlted Nations, 'Commodity Review and Outlook, Research service, Commercial Agricuttural 1994·95," 1994 production figures. Reynolds and Nabsico, KKR now owns Division, 1995 produCtion figures. 33% of, and effectively controls, RJR Nabisco, which produces nine of the top ten cookies and crackers brands sold in 1994, the developing world imported 885 America. KKR also owns a portion of force in the energy cartel. million metric tons, or 82% of the total. Beatrice Foods, a conglomerate, which Meat: The cartel's four major export Nestle Corp., S.A., based in Vevey and makes KKR one of the top five food compa­ source regions (the United States; the Cham (near Geneva), Switzerland, and nies in the world. European Union; the British Borden, Inc., based in Columbus, Ohio, are Completing the picture of world control Commonwealth countries of New Zealand, the two largest exporters of whole milk of whole milk powder is Unilever, a large Australia, and Canada; and the Ibero­ powder in the world. Founded in 1867, player in this area as well as the number-one American nations Argentina and Brazil) Nestle grew significantly in 1905, when it world producer of ice cream and margarine. exert enormous dominance over meat merged with the Anglo-Swiss Condensed Typifying the Anglo-Dutch oligarchy's joint exports. As well, a Chinese bloc of China, Milk Company, also of Switzerland. Nestle control over raw materials, Unilever, which Taiwan, and Hongkong (the last nation a re­ S.A. illustrates the food cartel's global is the result of a 1930 merger of a British exporter) is important in pork and pOUltry reach: It is the number-one world trader in and a Dutch firm, has headquarters in exports. whole milk powder and condensed milk; the London and Amsterdam. On the Unilever Figure 7 shows that for 1994, the cartel's number-one seller of chocolate, confec­ board is Lord Wright of Richmond, GCMG. basic food export regions commanded 85% tionery products, and mineral water (it owns From 1986 through 1991, he was head of of the world's export of beef and veal of Perrier); and the number-three U.S.-based Britain's Diplomatic Service and also per­ 4.95 million metric tons; when the Chinese coffee firm. Its products include Nestle manent undersecretary of state at the British market is added in, these regions command­ chocolate and candy; Libby fruit juice; Foreign and Commonwealth Office. Lord ed 92% of the world's export trade of 2.1 Carnation Condensed Milk; Buitoni Wright is also a director of Barclay's Bank, million tons of pork, and 93% of the world's spaghetti; Contadina tomato paste; Hills which is a major funder of Prince Philip's export trade of 5.84 million metric tons of Brothers and Nescafe coffees; and Stouffers' World Wide Fund for Nature. poultry. The export of pork and pOUltry in restaurants and frozen foods. (It also owns Unilever is an example of how the differ­ China and Taiwan is increasingly run by the 26% of the world's biggest cosmetic compa­ ent corporate entities operate as part of one food cartel. ny, L' Oreal.) All told, it is the biggest food interlocked syndicate. The former chairman Four of the cartel's biggest companies in company in the world. In 1994, there were of Unilever, M.P. Van den Moven, now sits beef export are Cargill, Archer Daniels 13 countries in which Nestle had sales of I on the board of the other Anglo-Dutch giant, MidlandITopfer, ConAgra/Peavey, and Iowa billion Swiss francs or more, including all Royal Dutch Shell Petroleum, the world's Beef Processors, now called IBP. The advanced sector nations. Its total 1994 sales largest marketer of oil and a controlling Dakota City, Nebraska-based IBP exempli-

20 Special Report December 8, 1995 EIR fies how the oligarchy employs its corporate and soybean cannot be eaten in their ume­ offshoots. Once owned by Armand FIGURE S fined form (excluding sweet corn, which is Hammer's Occidental Petroleum Co.; today Control of international eaten by humans, but which is a minuscule 13% of the stock of IBP is owned by FMR soybean and soybean percentage of the annual corn harvest). The Corp., the holding company for Fidelity product exports grain, or soybean (which is a legume), must Investments, the largest family of mutual percentof total ! millions of tons be processed. The same is true of meat, funds in the United States, which is run by which must be slaughtered and cut, before it 100% the Boston Brahmin oligarchical families. is fitfor human consumption. FMR is interlocked with other parts of the This is where the processing-milling Windsor cartel-it is a large owner of raw industries, in the case of grains and soybean, material cartel companies, including shares and the packing/slaughtering industries, in of 5% or more of Homestake Mining, Coeur the case of meat, come in. D' Alene Mines, and Santa Fe Pacific Gold Taking America as the test case, in order Corp., three of the world's largest gold min­ to make the case generally, one can see the ing companies. cartel's domination. Through IBP, the food cartel is interven­ For example, Figures 9, 10, 11, and 12, ing in the U.S. Presidential elections, giving demonstrate that the main grain companies heavy backing to the "free enterprise" of the oligarchy's food cartel control 71% of Presidential campaign of Sen. Phil Gramm the milling of America's flour; 57% of the (R-Tex.). On IBP's board of directors is Alec dry milling of America's corn; 74% of the Courtalis, a Florida real estate magnate who wet milling of America's corn; and 76% of was national finance co-chairman of the the crushing of America's soybeans. 1992 Bush-Quayle campaign, and is current­ (In the dry milling of corn, the corn is ly chairman of the futuristic Armand turned into corn meal, muffms, corn flakes, Hammer United World College and finance Argentina and Brazil •• Other etc. In the wet milling of corn, the corn is committee chairman of the Gramm for .Indi.a turned into sweetener, starch, alcohol, President campaign. In addition, Gramm's • United States � European Union ethanol, etc. Of America's corn crop of 7.4 wife, Wendy Gramm, is an IBP board mem­ Source: u.s. Departmentof AgrlcuHure, E,conomic million bushels, 5.6 million bushels will be Research Sarvice,Trade Analysis Branch, 1994/5 ber. From 1988 to 1993, Wendy Gramm crop produclion flgures. consumed as animal feed; 1.5 million chaired the Commodity Futures Trading bushels will be wet milled; and 0.3 million Commission, during which time the CFTC bushels will be dry milled.) rigged the explosive growth in speculative Figures 13, 14, and 15 confirm that the derivatives instruments. He is a longtime enemy of Lyndon largest meat companies in the food cartel Edible oils and fats: The United States, LaRouche. (IBP, ConAgra, Cargill, and two smaller the European Union, and Argentina and Feed and seed: The cartel also controls companies) control 72% of America's beef Brazil thoroughly dominate the export mar­ feed for animals and seed for planting. slaughtering/packing; 45% of its pork ket in the soybean and its by-products, the British Petroleum, through its Nutrition divi­ slaughtering/packing; and 70% of its sheep most basic source of edible oils and fats. sion, is the largest feed producer in Europe. slaughtering/packing. The meatpacking Figure 8 documents that the food cartel Having bought Purina Mills from Ralston industry demonstrates the accelerated rate at export source sectors are the masters of 90% Purina Company, British Petroleum, one of which the cartel is building its concentration of the international trade in soybeans, of the House of Windsor's key energy compa­ in these industries. In 1979, the top four 32.1 million metric tons per year; 90% of nies, is now the second largest feed producer packers controlled 41 % of the industry. the international trade in soybean meal, of in America. Cargill, the world's largest grain Today, they control 72%. 31.1 million metric tons; and, along with exporter, through its Nutrena Feed division, Finally, as Figure 16 shows, four of the British Commonwealth member India, 92% is also the biggest producer of animal feed six leading grain cartel companies own 24% of the 31.1 million metric tons of soybean and hybrid seed in the world, while of America's grain elevator storage capacity. meal exports. Continental Grain, through its Wayne Feed However, this figure is deceptive. Many of According to spokesmen for the U.S. division, is one of the biggest producers of the grain elevators in America are in local Department of Agriculture, as well as pri­ feed and a major force in hybrid seed pro­ areas, where there is a substantial degree of vate industry, the same six companies that duction. individual or cooperative ownership. When dominate the international grain trade also one gets to regional grain elevators, the dominate the international trade in soybeans Domestic markets grain cartel's ownership percentage is high­ and by-products. The one additional cartel The cartel exercises an iron hand over er. And at ports, where grain is transshipped, member company which is influential in the the domestic agricultural economies of the same four grain cartel companies own soybean trade, and which is smaller than the nations, especially those that comprise the 59% of all American grain elevator facili­ leading six companies, is S.1. Joseph Co. of four export source regions of the food cartel. ties. Minneapolis, Minnesota. Burton Joseph, This is exercised through the processing A farmer must sell his grain either to a chairman of this company, is a former industries: If one controls the processing grain elevator, or, in the rarer case where he national chairman and a leading member of industries, one controls domestic trade. can afford transport, to a grain miller. In theAnti-Defamation League of B'nai B'rith. Except for use as animal feed, corn, wheat, either case, it is a grain cartel company to

December 8, 1995 Special Report 21 EIR FIGURE 9 FIGURE 10 Four members of the cartel control members of the grain cartel control grain Five of America's flour milling almost of America's dry corn mill ng 71% 60% i percent of total U.S. flour milling capacity percent of total U.S. drycorn m illing capacity

(LauhoffBunge Grain) (18%)

Other (43%) Illinois Cereal Mills (14%)

Oats Quaker (7%) ConAgra Oaily milling capacity= 1,259,296 hundredweight of wheat (IdncolnGr ain) (8%) SOurces: 1994 Grain and MillingAnnual. Milling and BakingNews magazine; Dally grind = 670,000 bushels of corn research of William Heffernan and Douglas Constance. Departmentof Rural Sociology.UniVersity of Missouri. Sources: Com: Chemistryand Technology: research of Heffernan and Constance.

which he must sell. By this process, the Babylon/Mesopotamia 4,000 years ago. In became the basis of the empire. Rome was the grain cartel sets the price to the farmer-at Greece, the cults of Apollo, Demeter, and center. Conquered outlying colonies in Gaul, the lowest level possible. Rhea-Cybele often controlled the shipment of Brittany, Spain, Sicily, Egypt, North Africa, grain and other food stuffs, through the tem­ and the Mediterranean littoralhad to ship grain The control apparatus ples. In Imperial Rome, the control of grain to the noble Roman families, as taxes and trib­ The controlof food for use as a weapon is ute. Often the grain tax was greater than the an ancient practice. The House of Windsor land could bear, and areas of NorthAfrica, for inherited certain routes and infrastructure. instance, were turned into dust bowls. FIGURE 12 One finds the practice in ancient The evil city-state of Venice took over Five cartel grain . grain routes, particularly after the Fourth members control of 76% Crusade (1202-04). The main Venetian thir­ soybean crushing U.S. teenth century trading routes had their east­ FIGURE 11 percent of total U.S. soybean crushing ern termini in Constantinople, the ports of grain cartel Four the Oltremare (which were the lands of the ",embers dominate 74% crusading States), and Alexandria, Egypt. wet corn mill n of U.S. i g Goods from these ports were shipped to percent of total U.S. wet corn milling Venice, and from there made their way up the Po Valley to markets in Lombardy, or over the Alpine passes to the Rhone and into France. Eventually, Venetian trade extended to the Mongol empire in the East. By the fifteenth century, although Venice was still very much a merchant empire, it had franchised some of its grain and other trade to the powerful Burgundian duchy, whose effective headquarters was Antwerp. This empire, encompassing parts of France, Sources: Feedstuffsmagazine; Bruce W. MariQn extended from Amsterdam and Belgium to "Concentration and Donghwan Kim. Change in the much of present-day Switzerland. From this Selected Food Man,ufacturing Industries: The Influence of Mergarsversus Internal Growth,"Food Venetian-Lombard-Burgundian nexus, each Performance System Organization. and Public of the food cartel's six leading grain compa­ PoliCies. Working Paper No. 95. October 1990. SOurces: Milling and BakingNews; Milling Directory. Madison. Wisconsin: University of Wisconsin. nies was either founded, or inherited a sub­ 1991),research of Heffernan and Constance. Departmentof Agricultural EconomiCS, Food System Research Group. stantial part of its operations today. By the eighteenth and nineteenth cen-

22 SpecialReport December 8, 1995 EIR turies, the British Levant and East India companies had absorbed many of these FIGURE 13 Three food cartel members control of U.S. beef Venetian operations. In the nineteenth centu­ 64% ry, the London-based Baltic Mercantile and packing Shipping Exchange became the world's percent of total U.S. beef packing capacity leading instrument for contracting for and shipping grain. National Beef (4%) The five privately held grain companies Beef America (4%) were carved out from the centuries-old Mesopotamian-Ve netian-Burgundian-Swiss­ Amsterdam grain route, which today extends around the world. The Big Five are Cargill, Continental, Louis Dreyfus, Bunge and Born, and Andre. The Continental Grain Company is run by billionaire Michel Fribourg and his son Pau!' Simon Fribourg started the company in 1813 in Arion, Belgium. He moved the company to Antwerp, and then, in the 1920s, to Paris and London. Today, it has a New York office, along with a strong Swiss-French base. In 1852, Leopold Louis Dreyfus, who was born in Sierentz, France, established wheat-trading operations in Basel, Daily capacity = 138,000 head of cattle Switzerland. In this century, except during Sources; Meat and Poultry magazine; research of Heffernan and Constance. World War II, Louis Dreyfus has been head­ quartered in Paris (part of the old Lombard­ Burgundian route). Switzerland. Cargill's international trading arm, Tradax, Bunge and Born was founded by the Cargill Company, the world's largest Inc., is headquartered, having been estab­ Bunge family from Amsterdam in 1752. The grain company, is based in the Minneapolis, lished there in 1956 (technically, Tradax is a company was eventually moved to Antwerp Minnesota suburb of Minnetonka. It was Panamanian-registered company). Tradax (today it is technically headquartered in Sao founded by Scotsman William Cargill, in has divisions all around the world, including Paulo, Brazil and the Netherlands Antilles). Conover, Iowa in 1865, and has been run, in Argentina, Germany, and Japan. It is the The Andre Company was founded by since the 1920s, by the billionaire major source for Cargill's international trad­ Georges Andre in Nyon, Switzerland, and MacMillan family. But the true nexus of ing; Cargill has a lot of money invested in it, today is headquartered in Lausanne, Cargill is in Geneva, Switzerland, where and Cargill reaps a large return from

FIGURE 14 FIGURE 15 FIGURE 16 Four food cartel Four sheep slaughterers Four gr in cartel members control of firms control of U.S. membe 45% 70% -!s own 24% of pork slaughtering capacity grain elevators U.S. U.S. percent of total U.S. pork slaughtering percentof total U.S. sheep slaughtering percent of total U.S. grain elevator capacity

Sources: Successful Farmingmagazine; Feedstuffs Sources: American Sheep Industry Association; magazine; research of Heffernan and Constance. research of Heffernan and Constance.

December 8, 1995 SpecialReport 23 EIR Tradax's operations. Tradax also has partial to Tradax International in Panama, which vention to a 'market driven' economy." Swiss ownership. The Lombard, Odier will 'hire' Tradax/Geneva as its agent; Today, Cargill Company is privately Bank, as well as the Pictet Bank, both old, TradaxlGeneva then might arrange the sale owned and run by the MacMillan family. private and very dirty Swiss banks, own a to a Dutch miller through its subsidiary, The MacMillan family's collective wealth, chunk of Tradax. The principal financier for Tradax/Holland; any profits would be at $5.1 billion, according to the July 17, Tradax is the Geneva-based Credit Suisse, booked to TradaxlPanama, a tax-haven com­ 1994 Forbes magazine, is larger than that of which is one of the world's largest money­ pany, and TradaxlGeneva would earn only a the better-known Mellon family. The launderers. 'management fee' for brokering the deal MacMillans have always been of service to Archer Daniels Midland's purchase of between Tradax/Panama and Tradaxl the British. John Hugh MacMillan, president Topfer, a Hamburg, Germany-based grain Holland." of Cargill from 1936 to 1957, and then company, vastly increased ADM's presence While evading taxes and inspection, chairman from 1957 through 1960, held the in the world grain trade.Topfer 's tradeis sit­ Cargill also uses its network to move large title of "hereditary Knight Commander of uated within the old Venice-Swiss­ shipments of goods anywhere on the globe, Justice in the Sovereign Order of St. John Amsterdam-Paris routes, and it has exten­ on split-second notice. It has an in-house (Knights of Malta)," one of the British sive business partnerships with the British intelligence service that matches the CIA's: Crown's most important orders. Crown jewel, the Rothschild Bank. It uses global communication satellites, weather-sensing satellites, a database that The drive to the East Secret intelligence utilizes 7,000 primary sources of intelli­ The food cartel continues to consolidate The manner in which the grain cartel gence, several hundred field offices,etc. its worldwide control in the face of the companies operate is highly secretive. All Cargill is representative of all of the grain oncoming financial disintegration. In the but ADMffopfer areprivate companies, and companies, and a brief examination of it past four years, the food cartel has bought Bush ally and former Cargill employee gives insight into all the others. Cargill, which up many milling-processing plants and bak­ Dwayne Andreas runs ADM as his personal had $5 1 billion in annual sales in 1994, has a eries throughout the former Soviet Union fiefdom. dominant position in many aspects of the and East bloc, bringing these nations under A strategic profile of each of the leading world food trade. It is the world's and the tight food control. Recently, IBP moved to food cartel companies is contained in the fol­ United States' number-one grain exporter, dump cheap Mexican meat there, in order to lowing article, but it is worth noting here a and has a market share of 25-30% in each of bankrupt beef producers. The Clinton few critical points about how they work. several commodities. It is the world's num­ Agriculture Department has brought them Much of their workings is shrouded in mys­ ber-one cotton trader; the number-one U.S. up for investigation. tery, because they release little information to owner of grain elevators (340); thenumber­ The food cartel has also built up its con­ the public. People who have attempted to one U.S. manufacturer of com-based, high­ trol, in the food distribution industries, write books about the grain companies have protein animal feeds (through subsidiary through such combines as Philip Morris, spent years without getting a single interview Nutrena Mills); the number-two U.S. wet Grand Metropolitan-Pillsbury, and KKR­ from any of the reigning grain company fam­ com miller and U.S. soybean crusher; the RJR-Nabisco-Borden. In the case of Philip ilies. Unlike many American companies, number-two Argentine grain exporter (10% Morris, which owns Kraft Foods, General where the founding family has long since of market); the number-three U.S. flour miller Foods (Post cereals), the Miller Brewing departed the scene, such as in the case of (18% of market), U.S. meatpacker (18% of Company, and a host of other brand names, Morgan bank or Chrysler Corp., the grain market), U.S. pork packerlslaughterer, and 101. of every $1 that an American spends on cartelcompanies arerun by the same families U.S. commercial animal feeder; the number­ brand-name food items is for a Philip Morris that have run them for centuries. The inter­ three French grain exporter (15-18% of the product. married MacMillan and Cargill families run market); and the number-six U.S. turkey pro­ The food cartel's power must be broken. Cargill; the Fribourg family runs Continental; ducer. It also has a fleet of 420 barges, 11 This year, the U.S. Justice Department's the Louis Dreyfusfa mily runs Louis Dreyfus; towboats, 2 huge vessels that sail the Great Anti-Trust division launched an investiga­ the Andre family runs Andre; and the Hirsch Lakes, 12 ocean-going ships, 2,000 railroad tion into price-fixing in the case of corn­ and Born families run Bunge and Born. hopper cars, and 2,000tank cars. based fructose and lysine, by Archer Daniels However, the little that has been gleaned Cargill has been able to place its people Midland and some of the other food cartel is very revealing. In 1979, Dan Morgan in top posts around the world. Daniel companies. The case, if brought to trial, wrote The Merchants of Grain. about the Amstutz, a 25-year Cargill man, was U.S. could provide valuable information and help world grain trade. He disclosed that Cargill's Undersecretary of Agriculture for to expose and possibly halt, in a limited way, Geneva-based trading arm, Tradax, operates International Affairs and Commodity a few of ADM's practices. But the Anglo­ not only such as to park sales of grain in Programs in 1983-87, from which post he Dutch-Swiss cartel is playing for high order to escape taxes in the United States decided on the export policy of U.S. grains. stakes-the ability to constrain thesupply of and most countries, but it confounds anyone He later became a leader of the U.S. trade raw materials, and above all, food, to tum trying to follow Cargill's grain movements. commission in the General Agreement on back the clock of history, and reduce In his book, Morgan reported: Tariffs and Trade (GATT) negotiations on mankind from the 5.6 billion population it "When Cargill sells a cargo of com to a agricultural trade. Meanwhile, the head of currently enjoys to the state of a few hun­ Dutch animal-feed manufacturer, the grain is Bunge and Born, Nestor Rapanelli, became dred million semi-literate souls scratching shipped down the Mississippi River, put Argentina's economics minister within out a bare existence. aboard a vessel at Baton Rouge and sent to weeks of Carlos Menem coming in as That assault cannot be fought timidly. Rotterdam. On paper, however . . . its route Argentine President in 1989. Rapanelli The full truth about the food cartel must be is more elaborate. Cargill first sells the com began shifting Argentina from "State inter- known.

24 Special Report December 8, 1995 EIR Control by the fo od cartel companies: profiles and histories

by Richard Freeman

ere are strategic profiles of 11 of the hopper cars, and 2,000tank cars. officer. The other force was a Byelorussian principal companies that constitute Cargill and its subsidiaries operate 800 Jewish grain merchant, Julius Hendel, who the Anglo-Dutch-Swiss food cartel. plants. It has 500 U.S. offices, 300 foreign joined the company in the late 1920s. It The profiles confinn that through mUltiple offices. It operates in 60 countries. would seem odd at first thata European, and Hforms of concentration, these companies History: Shortly after the Civil War, a Jew at that, would be admitted into the dominate grain, meat, dairy, and other food William Cargill, a Scottish immigrant sea inner councils of a rock-ribbed Scottish­ production, and the processing and distribu­ merchant, bought his first grain elevator in American finn, but this indicates the inter­ tion system of food, all the way to the super­ Conover, Iowa. In 1870, with his brother national scope of forces that shape the grain market. Very little food moves on the face of Sam, William Cargill bought grain elevators trade. Hendel would later also school the earth without the food cartel having a all along the Southern Minnesota Railroad, Dwayne Andreas, when Andreas worked for hand in it. at a time when Minnesota was becoming an Cargill after World War II. important shipping route. But Cargill's During the mid- 1930s, Cargill used cut­ biggest break came when he bought eleva­ throat tactics. In September 1937, com was tors along the line of James J. Hill's Great a scarce commodity. The 1936 American Northern railroad line, which went west of crop had been a failure, and the new crop cargill Minneapolis, and into the Red River Valley would not be harvested until October. Headquarters: p.o. Box9 300, 15401 as far as North Dakota, and also into South Cargill bought up every available corn Road, Minnetonka, Minnesota Dakota. Hill was the business partnerof Ned future, to the tuneof several millions of dol­ McGinty 55440-9300 Harriman (father of Averell Harriman), who lars, and created a squeeze on the market. InternationalTrad ing: Tradax Division of became the business agent for England's The Chicago Board of Trade ordered Cargill Cargill, registered in Panama and Queen Victoria's son, Prince Edward, later to sell some of its futures to relieve the Geneva. Switzerland Salesand billion in 1994 King Edward VII. Through a preferential squeeze. Cargill refused. The CBOT production:$51 rebate system, and other arrangements, expelled Cargill from the Board of Trade. No. 1 U.S. grain trader/exporter (25% of Hill's rail line helped build the Cargill oper­ The U.S. secretary of agriculture accused market, which is equivalent to Cargill export­ ation. Cargill of trying to destroy the American ing 25.1 million tons or 1.0 billion bushels of Twice during the twentieth century, the com market. grain); No. 1 world grain trader/exporter Cargill firm nearly went under. William In 1922, Cargill had opened up a New (25% of market, which is equivalent to Cargill, Jr., the son ofcompany founder Will York office; in 1929, it opened an Argentine Cargill exporting 52.9 million tons, or 2. 11 Cargill, made some bad investments in office, and it continued to expand, especially billion bushels of grain); No. 1 U.S. owner of Montana during the first decade ofthe twenti­ after the Second World War, as the United grain elevators (340 elevators); No. 1 world eth century, and between 1909 and 1917, States exported large quantities of grain to cotton trader; No. 1 U.S. manufacturer of Cargill hovered on the brink of bankruptcy. Europe and other parts of the globe. In 1953, corn-based high-protein animal feeds Some British capital came in to rescue the Cargill established Tradax International in (through subsidiary Nutrena Mills); No. 2 company. William Cargill, Sr. had a daughter, Panama to run its global grain trade. In U.S. wet com miller; No. 2 U.S. soybean Edna, who married John MacMillan. The 1956, it set up Tradax Geneve in Geneva, crusher; No. 2 Argentine grain exporter (10% financiers designated John MacMillan and Switzerland, as the coordinating arm of of market); No. 3 U.S. flour miller (18% of the MacMillan family to come in and reorga­ Tradax. Tradax subsidiaries were set up in market); No. 3 U.S. meatpacker, through nize Cargill. This was the period in which the Germany (Deutsche Tradax, GmbH), Excel division (18% of market); No. 3 U.S. MacMillan family started running Cargill. England (Tradax Limited), Japan (Tradax pork packer/slaughterer; No. 3 U.S. commer­ Cargill also nearly went under following Limited), Australia (Tradax Limited), France cial animal feeder; No. 3 French grain the 1929 U.S. stock market crash, and ensu­ (Compagnie Cargill S.A.), and so forth. exporter (15-18% of market); No. 6 U.S. ing Great Depression. There is not a word of Thirty percent of ownership of Tradax is turkey producer. what happened to Cargill Co. during the held by old-line Venetian-Burgundian­ Cargill raises 350,000 hogs, 12 million depression in the History of Cargill, 1865- Lombard banking families, principally the turkeys, and 312 million broiler chickens. In 1945. But two forces came to the rescue: Swiss-based Lombard, Odier, and Pictet the United States, it owns 420 barges, 11 John D. Rockefeller's Chase National Bank, banks. The financier for Tradax is the towboats, 2 huge vessels that sail the Great which sent its officer John Peterson to help Geneva-based Credit Suisse, which has been Lakes, 12 ocean-going ships, 2,000 railroad run Cargill. Peterson became Cargill's top cited repeatedly for drug-money laundering.

December 8, 1995 Special Report EIR 25 On Feb. 7, 1985, the U.S. government den Democratic Party of Minnesota, Walter tionally. In 1920, the headquarters moved caught Credit Suisse and other large banks Mondale was elected a director of Cargill. again, this time to Paris, and the company's laundering $1.2 billion in illegal money­ In 1983-84, the family-controlled Cargill name changed to Compagnie Continentale. much of it suspected drug money-to the Foundation contributed $50,000 to the Thus, 100 years after its founding in 1813, First National Bank of Boston. University of Chicago's monetarist the Continental Company had established In 1977, Cargill's involvement in a Economics Department. firm links into the cities and channels of the "black peseta" -laundering operation at European grain trade, as well as to Australia, Cargill's officesin Spain was revealed. through London. Cargill has been repeatedly cited for �Contin.ntal -_ Grain . In 1921, the Continental Company "blending"-that is, adding foreign matter opened an office in Chicago, and another in an PaI'kAven ue, New to its grain. For example, an export contract . Headquarters:Yo rk, NewYork 10172 New York. In 1930, it leased a terminal in may allow for 8% of the grain volume that a Sales and ptoduction: billiOn Galveston, Texas. During the Depression of company is exporting to be foreign matter. If ..$17-18 in the 1930s, the Continental Company made 1994 Cargill's grain load is only 6% foreign mat­ out like bandits. As reported in one history, ter, it will mix in dirt and gravel. A Cargill No. 2 U.S. grain trader/exporter (20% of the head of the family, Jules Fribourg, superintendent told the Kansas City Times in market), and No. 2 world grain instructed his New York agent to buy July 1982, "If we've got a real clean load, trader/exporter (20% of market) (according Midwest grain elevators, which were at we'll make sure we hold it until we can mix to official Continental documents). No. 1 depressed prices, with the instructions, it with something dirtier. Otherwise, we'd be U.S. exporter of soybean products and deriv­ "Don't bother to look at them-just buy throwing away money." atives (through joint venture called Conti­ them." The Fribourgs lived very, very well. Cargill has expanded into every major Quincy Export Co.); No. 1 world cattle feed­ Rene Fribourg, the co-head of the company, crop and livestock on the face of the earth, lot operator (7 feedlots in southwestern and lived like a Medici prince, collected gold in over 60 countries. It has also expanded plains states of United States); No. 1 shrimp snuff boxes and Louis XV and Louis XVI into coal, steel (it is America's seventh farm in Ecuador; reportedly No. 2 French furniture, and dined off eighteenth-century largest steel producer, owning LTV), waste grain exporter; No. 3 owner of U.S. grain china. But when the Nazi Army invaded disposal, and metals. Today, Cargill runs one elevators; No. 3 or No. 4 U.S. animal feed France in June 1940, the Fribourgs fled to of the 20 largest commodity brokerage fIrms manufacturer (through subsidiary Wayne America. in the United States, trading on the Chicago Feed Division); No. 3 or No. 4 world cotton In 1968-69, the Fribourgs, working with and world markets, which is larger than exporter; No. 8 Argentine grain exporter (7% the Cargill company, and through an agent those of most Wall Street brokerage houses. of market). of the grain cartel in the U.S. Department of Another division, Cargill Investor Services, Continental processes and markets 2 bil­ Agriculture, Clarence Palmby, helped has offices throughout the United States, as lion pounds of poultry, beef, pork, and destroy the American merchant fleet, by well as in London, Geneva, and Zurich. seafood, along with 5 million tons of animal convincing President Nixon that the "50- Key personnel and policy: The com­ feeds and wheat flour. The company trans­ 50" provision, by which half of all bined Cargill and MacMillan families of ports nearly 75 million tons of grains, American grain exports had to be carried on Cargill own 90% of the company's stock oil seeds, rice, cotton, and energy products American vessels, should be abolished, in (the rest is owned by company executives). annually, an amount that exceeds the annual order to land a large Russian grain deal. They are one of the ten richest families in production of almost every country in the Almost all of the grain went on Russian­ America: According to the July 17, 1995 world. bottom boats. Various favors paid off,for, in Forbes magazine, the combined Continental owns a fleet of towboats and 1973, the Russians rewarded Continental by Cargill/MacMillan families are worth $5.1 500 river barges. It owns over 1,500 hopper making an unprecedented purchase from billion, making them richer than the cars. It has offices and plants in 50 countries, the company of 6 million tons of grain and Mellons. Whitney MacMillan, W. Duncan on 6 continents. soybeans. The head of Continental was and MacMillan, John Hugh MacMillan III, and History: Simon Fribourg founded the remains Michel Fribourg . His personal Cargill MacMillan, Jr., are each worth $570 predecessor organization as a commodity­ fInancial adviser, Sasha Maximov, was the million. trading company in Arion, Belgium in 1813. son of the last czarist ambassador to The British connections of the By the middle of the nineteenth century, the Constantinople, a post usually held by a MacMillan family are evident. John Hugh Fribourg family went into milling, building Ve netian agent. MacMillan II (1895-1960) was the president mills in Luxembourg and Belgium, especial­ In 1976, Continental was fIned $500,000 of Cargill from 1936 until 1957, and was ly Antwerp, which, with its deep harbors and for short-weighting ships. In the late 1970s, chairman from 1957 until 1960. He was a connections to the Rhine River, transported when Zaire, which was very poor, was hereditary Knight Commander of Justice of Fribourg flour and wheat to and from the unable to pay its bills, Continental cut off the Sovereign Order of St. John, the chival­ rest of Europe. Toward the end of the nine­ food shipments to that starving nation. In the ric order run by the international oligarchy teenth century, Michel Fribourg, a great­ 1970s, Continental became the fIrst grain grouped around the Anglo-Dutch monarchy. grandson of founder Simon, went with bags company to sell grain to China. Whitney MacMillan, chairman of Cargill of gold to Bessarabia (today Moldova and Key personnel and policy: The heir from 1976 until 1994, was educated at the Romania) to buy grain. This was a large apparent of the company is Michel exclusive British-modeled Blake School grain-producing region. By 1914, the heirs Fribourg's son, Paul, who, at the age of 41, (where the chairman of General Mills was of the family, under the name Fribourg is president of Continental. Michel Fribourg, alsoeducated), and then Yale University. Freres, moved operations to London, to cap­ great-great-grandson of Continental's Showing the link with the gangster-rid- italize on the ability to trade grain interna- founder, and his immediate family, own

26 SpecialReport December 8, EIR 1995 90% of Continental's stock (other members law. It owns 49% of the shares of the co-op Ernest Bunge emigrated to Argentina in of the Fribourg family own the rest). The Union Fran,

December 8, 1995 SpecialReport 27 EIR enough soybean meal to feed 13 billion poor, depending on which devout An... chickens-twice as many broilers as the Mennonite perspective you prefer." ADM L$:usElnt'le, United States produces. foIe8(lqQ�; $witzerIQnd was convicted. In 1976, the company plead­ RI.l8/je1's, GaI'tlaq Gl"I'lit'l History: In 1878, John W. Daniels began ed no contest to federal charges that it had lye$!.IbSldiary Of crushing flaxseed to produce linseed oil and systematically short-weighted and misgrad­ •. �nShaW{lee I

28 Special Report December 8, 1995 EIR resigned from ADM board); Robert Strauss, ConAgra. panies in the United States. George Bush's ambassador to Russia, 1991- ConAgra also bought Elders, the largest History: Formed in 1960 by A. 93, and a long-time friend of Andreas. beef producer/processor in Australia and the Anderson and C. Holman, as Iowa Beef Strauss is also a member of the board of largest beefand lamb exporter in the world. Processors; the first plant was in Denison, British intelligence's chief propaganda ConAgra continued its takeover binge: Iowa. IBP broke with tradition: It built the mouthpiece, the Hollinger Corp.; Brian Since the mid- 1970s, ConAgra has acquired plant in a rural area where the cattle was Mulroney, former prime minister of Canada, over 100 companies. It bought the Chung raised. In 1967, it took another step: Its and associated with the Hollinger Corp.; King line of foods; Beatrice Foods, includ­ Dakota City, Nebraska plant cut the meat several members of the Andreas family, ing Butterball Turkeys; Peter Pan peanut and shipped it, pre-cut, in vacuum packs to including Dwayne's brother Lowell butter, and others. stores (called boxed beef). IBP reached a Andreas, and his son, Michael Andreas, who Major brands: Hunt's Tomato Sauce marketing agreement with Cactus Feeders, is also ADM's vice chairman and the heir and Ketchup; We sson Oil; Banquet TV din­ the nation's largest commercial feeder, to apparent. ners; Armour, Swift, Eckrich, and Hebrew supply it withbeef cattle. In the early 199Os, National meats; Healthy Choice foods; it purchased 40 hog-buying stations from Orville Redenbacher popcorn; Peter Pan Heinhold Hog, Inc. in Missouri, Iowa, peanut butter; LaChoy Chinese foods; Swiss Nebraska, South Dakota, and Minnesota. Miss cocoa; Reddi-Whip whip cream. IBP makes money by driving down the Key personnel and policy: Board of wages of its workforce and the price of directors: Dr. Ronald Roskens, president of beef paid to farmers. IBP tried to ban union Action International, former president of the wages and the union. In 1965, a strike University of Nebraska, reportedly dis­ against this IBP policy became so violent missed for pedophilia, and George Bush's that the governor of Iowa had to intervene No. 1 U.S. flour miller (24% of market); No. director of the State Department Agency for to settle it. A 1969-70 strike, provoked by I U.S. sheep slaughterer (33% of market), International Development; Marjorie IBP, resulted in one death. A similar pattern through Sipco and Montfort meats; No. 2 Scardino, chief executive of the Economist prevailed in the 1980s. On Aug. 15, 1995, U.S. beef slaughterer (20% of market); No. 2 Newspaper Ltd. and Economist magazine, the Wa ll Street Journal reported: "In May, U.S. pork slaughterer; No. 4 U.S. dry com which is jointly owned by Britain's the Immigration and Naturalization Service miller (8% of market); Rothschild and Lazard Freres banking hous­ arrested 24 illegal aliens, who worked for History : ConAgra was founded in es, both close to Britain's royal family; an IBP contractor, at the company's Omaha, Nebraska in 1919 as Consolidated Charles Harper, chairman andchief execu­ Council Bluffs plant: a month earlier, 35 Mills, a grain processor. (The name was tive of RJR Nabisco. illegals were arrested at an IBP plant in changed to ConAgra in 1971.) In 1982, Minnesota." ConAgra bought the Peavey Company. For the third quarter of 1995, IBP's net Peavey, along with its Minneapolis confed­ income/profit rose to $85.4 million, an erates, the Pillsbury and Washburn families, increase of 74% from its net income of dominated the milling of American flour, HeadqlJ�rrers:i. ISP "'veFlll�, !;J;()· �o� $49.2 million during the third quarter of which came up the Mississippi River or ".515, [)aI

EIR December 8, 1995 Special Report 29 and bus transportation to its employees (paid densed milk and Carnation breakfast bars; express the joint interests of the Anglo-Dutch for by the Gramm campaign), if they would Coffee-Mate creamer; Stouffer's restaurants, monarchies. go to the Iowa Republican Party Presidential frozen foods, and other products; Findus and Brand names: Breyers, Good Humor, straw poll and vote for candidate Phil Surgela frozen products in Europe; Nescafe Klondike, Magnum, Carte D'Or, and Gramm, whom IBP backs, over local instant coffee; Taster's Choice coffee; Nestea Popsicle brands ice cream; Bird's Eye and favorite, Kansan Bob Dole. Also on IBP's instant tea; Buitoni spaghetti and Contadina Igloo frozen foods; Ragu and Chicken board is Alec Courtelis, a Florida real estate tomato paste, sauce, and Italian food prod­ Tonight pasta and meal sauces; Lipton Tea developer and the nation's largest Arabian ucts; Friskies cat food; and Alpo dog food. and Brooke Bond Tea (leading European tea horse breeder. Courtelis was National Nestle's also owns Alcon eye products, company); Lipton soups; Continental Cup-a­ Finance co-chairman of the 1992 Bush­ such as Opti-Free, and 26.3% of L'Oreal, the Soup; Country Crock, Blue Bonnett, Flora, Quayle campaign, and is now Finance world's largest shampoo and cosmetics com­ Becel and Rama margarines; Bertoli and La Committee head of the Gramm for President pany. Masia olive oil; Wishbone salad dressing; campaign and chairman of the Armand Key personnel and policy: Board of Boursin and Milkana cheeses; Bon Vivant Hammer United World College. directors: Nestle chairman Helmut Maucher cookies; Pepsodent, Close-Up, and is also on the board of J.P. Morgan Bank, Mentadent tooth pastes; Dove, Lux, and British intelligence's leading bank in the Lever soaps; Wisk and Surf laundry deter­ United States, and Allianz Ve rsicherung of gents; Vaseline Intensive Care, Pond's Cold Munich, an insurance firm; Fritz Leutwiller, Cream, Elizabeth Arden, Faberge (Brut, who was also chairman of Swiss National Chloe) and Calvin Klein skin care products Bank and, in 1982-84, of the Bank for and cosmetics. International Settlements, the central bank of Key personnel and policy: Board of the central banks; Paul Vo lcker, chairman of directors: Lord Wright of Richmond, GCMG, U.S. Federal Reserve Board of Governors from 1986-91, permanent undersecretary of No. I world food company; No. 1 world 1978-85, currently chairman of Blackstone state at the British Foreign and trader in milk powder; No. 1 world trader Group, a Wall Streetinvestment firm. Commonwealth Office and head of the dry of condensed milk; No. I seller of chocolate Diplomatic Service, also a director of and confectionary products; No. 1 world sell­ Barclay's Bank; Sir Derek Birkin, from 1985- er of mineral water; No. 3 U.S. coffee firm. 91, chairman of London-based RTZ (Rio In 1994, there were 13 countries in which UUnil.ve' Tinto Zinc), the world's second largest min­ Nestle had 1 billion Swiss francs or more in Jolntheadq\.la!1eI'$: Unilever PLC, P.Q, ing company, in which the Queen of England sales; the countries (with sales in billions of Box ea, House, Blackfrial'$, has a substantial investment; Frits Fentener London UnileVEC4P f)r480 Swiss francs in parenthesis): U.S. (SF 12.2); Van Vlissingen, from 1974 through 1991, Unileve.t, P. O. Box France (SF 6.5); Germany (SF 6.1); U.K. 760, Rotten:Jari1, � member of the Supervisory Board of the (SF 3.3); Italy (SF 3.2); Japan (SF 3.1); Netheriand$produ ction;l$47:5bl.r oll giant Rotterdam Bank of the Netherlands; Sir Sales and 1994 Brian Hayes, former permanent secretary of Brazil (SF 2.9); Mexico (SF 1.8); Spain (SF (£29.7bijfjon) in (WUh prootsof 1.8); Australia (SF 1.1); Switzerland (SF $4billion) Britain's Ministry of Agriculture; Viscount 1.1); the Philippines (SF 1.1); Canada (SF Leverhulme, KGTD, grandson of William 1.0). Nestle's has 400 manufacturing facili­ No. 1 world producer of ice cream; No. 1 Lever, largest stockholder in Unilever, and ties on 5 continents. world producer of margarine; one of the top funder and builder of Prince Philip's World History: In 1866 in Cham, Switzerland, five world exporters of milk powder; No. Wide Fund for Nature the coordinat­ dry (WWF), Charles Page founded the Anglo-Swiss 1 European tea seller; No. 2 or No. 3 world ing arm for British intelligence. Condensed Milk Company. In 1867, in nearby producer of soaps and detergents; one of the Ve vey, Henri Nestle founded Farine Lactee top five world crushers of palm oil and palm Henri Nestle. In 1905, Nestle and the Anglo­ kernel; one of world's largest producers of Swiss Condensed Milk Company merged. olive oil. In 1922, a banker, Louis Dapples, took History: In 1885, Englishman William over management of the company, and even­ Lever and his brother James formed Lever tually became chairman of Nestle. Over the Brothers. It produces Lux, Lifebuoy, Rinso, next 70-odd years, Nestle made one takeover and Sunlight soaps. In the Netherlands, rival after another, especially during the past ten buttermakers Jurgens and Van den Berghs years. It controls the export of powdered were pioneers in margarine production. In No. 2 world food company; No. 1 U.S. milk to the developing sector. 1927, they created the Margarine Union, a food company of every $ 1 Americans (1O¢ Brand names: Nestle's chocolate mix cartel that owned the European market. In spend on branded food items in the United and chocolate milk; Nestle's candy bars, 1930, the Margarine Union and Lever States is for a Philip Morris/Kraft food prod­ including Crunch, Butterfinger, Kit-Kat, Brothers merged, forming Unilever. This uct); No. 1 world processed cheese seller; After Eight dinner mints; Peter-Cailler­ paralleled the merger of Royal Dutch Oil No. world cream cheese seller; No. 1 U.S. 1 Kohler Chocolats; Perrier, Vittel, Fuerst Company and Britain's Shell Transport seller of luncheon meats; No. 1 U.S. seller of Bismarck, Spring, Arrowhead, and other Company at the tum of the century, to form powdered soft drinks; No. 1 world cigarette brands of bottled mineral water; Libby fruit the Royal Dutch Shell Oil Company, the producer; No. 1 U.S. and Japan cigarette pro­ juices; Hills Brothers, Zoega, and Dallmayr world's largest. Both Unilever and Royal ducer (44.8% of U.S. market); No. 2 U.S. roasted coffee; Carnation sweetened con- Dutch Shell are corporate entities that beer brewer, through Miller Brewing; No. 3

30 SpecialReport EIR December 8, 1995 world beer brewer; No. 3 world confec­ Focus: Lester Brown. Dennis Avery tionery business; No. 3 U.S. breakfast cereal company (Post cereals). History: In 1847, Philip Morris opened a The cartel 'experts' London tobacco store, and by 1854 he was making his own cigarettes. In 19 19, U.S. financier George Whelan purchased the decide who eats rights to market Philip Morris brands such as Marlboro, Ovals, Players, and Cambridge. by Charles Tuttle and Marcia Meny Baker Ten years later, Whelan's successor began manufacturing the cigarettes in Richmond, Virginia. mong the most prominent of the so­ In 1985, Philip Morris bought General called experts on food and agricul­ Foods, producer of Jello brand gelatin and ture policy that you are likely to see Post cereals, for $5.75 billion. In 1988, Philip yakking in your newspaper and on television, Morris spent $12.9 billion to acquire Kraft Aare Lester Brown and Dennis Avery. Their Foods. notoriety does not reflect aggressive public Brand names: Kraft Products, such as relations work, but rather the fact that these Kraft Mayonnaise and Miracle Whip and individuals are the figureheads for 20-year-old Kraft cheese; Velve�ta; Philadelphia Cream propaganda machines that are "approved" and Cheese; Dairylea; Cool Whip; Post cereals; bought and paid for by the commodities cartel Entenmann's Cookies; Jello; Kool-Aid, interests. Country Time, Crystal Light and Tang pow­ Brown, who heads up the Washington, dered drinks; Maxwell House, Sanka, D.C.-based Worldwatch Institute, and Avery, Maxim, Gevalia, Jacobs, Kaffe Hag, and head of the Virginia-based Center for Global Carte Noire coffees; Milka and Toblerone Food Issues, a division of the Indianapolis­ confectionery chocolates and candies; Jacobs based Hudson Institute, are usually portrayed, Suchard, a Swiss maker of chocolate and like Punch and Judy, as having opposing Lester Brown pushes one side of food cartel coffee (Philip Morris bought it in 1990; viewpoints, usually "left" and "right," respec­ propaganda, that population is outrunning the world's resources and ability to feed Jacobs Suchard is one of the ten largest tively. However, they serve the same inter­ itself. Shown at a press briefing on China on European food companies); Tombstone ests, and their job is to lecture, travel, and Aug. 24, 1994. Pizza; Miller, Miller Lite, Molson, issue reports on food, agriculture, and related Lowenbrau, Red Dog beers; Oscar Mayer, matters, in such a way as to manipulate pub­ Louis Rich, Simmenthal and Negroni lunch lic opinion favorably to cartel interests. Lester Brown meats; Lender's Bagels; Budget Gourmet The characteristic Brown line is that world Lester Russell Brown has been president frozen dinners; Shake N' Bake; Stove Top population numbers have exceeded the of the Worldwatch Institute since its creation Stuffing; Log Cabin syrup; Good Seasons world's natural resources base, and population in 1974. Often called "Dr. Doom," or salad dressing; Marlboro, Lark, Philip must be cut. And to "save" the world's envi­ "God's Scorekeeper," Brown's entire career Morris, Benson and Hedges, Chesterfield, ronment, Brown demands that the use of is associated with Worldwatch Institute, Virginia Slims, Merit cigarettes. advanced agriculture technology be limited to which was created for propaganda purposes. Key personnel and policy: Board of only certain people and places (determined by Brown was born in New Jersey in 1934, and directors: Rupert Murdoch, chairman of the the food commodities cartel companies). was elevated into his role as an "agriculture News Corporation. The Australian-born The characteristic Avery line is that the authority" as a young man in Washington, Murdoch runs major propaganda organs for world can support billions more people, as D.C. in the 1960s. the British, including his company's flagship long as freetrade rightsare extended to certain Funding: The 1974 start-up grant for newspapers, the Times and Sunday Times of people and companies (of the food cartels), Worldwatch Institute was $500,000 provid­ London; Richard Parsons, president of Time which will provide the needed food. He sings ed by the Rockefeller Brothers Fund. The Warner. The publisher of Time magazine and the praises of biotechnology, i.e., the particular chief funders of Worldwatch over the suc­ of Warner records, Time Warner is partially advances whose use and patent rights are con­ ceeding years include the following founda­ owned by the mob Bronfman family of trolled by the cartel companies. tions: Ford, Rockefeller, John D. and Seagram's Liquor, which family is reputedly What Brown, Avery, and others like Catherine T. MacArthur, Andrew W. a major force in the world's illegal narcotic them have in common, is that they never Mellon, [Ted] Turner, William and Flora trade; Stephen Wolf, senior adviser of Lazard name the names of the individuals, corpora­ Hewlett, Charles Stewart Mott, Geraldine R. Freres investment bank. tions, and entities that gain from food com­ Dodge, Edward John Noble, W. Alton Jones, Philip Morris is one of the largest corpo­ modities control. Both Brown and Avery Curtis and Edith Munson, Frank Weeden, rate sponsors of Prince Philip's WWF. It is were created as bogus food "authorities," by Energy, George Gund, Surdna, Public one of the largest smugglers of illegal ciga­ these interests. Welfare, and Edna McConnell Clark. rettes, both for sale and as barter for other Here we provide the background, fund­ Other Worldwatch funding agencies illegal goods. It has been cited repeatedly in ing, and pedigree of Brown and Avery, and include the U.N. Environment Program, the the Italian press as one of the world's largest report on some of their propaganda activities U.N. Population Fund, the Rockefeller marijuana dealers. in 1994-95. Brothers Fund, the Winthrop Rockefeller

December 8, 1995 SpecialReport EIR 31 Trust, the Lynn R. and Karl E. Pickett Fund, Hesburgh was chairman of the board. tion the "big issue" for agriculture. the Robert R. McCormick Charitable Trust, Brown calls this period with the ODC For example, Brown counts among his and the Pew Charitable Trusts. (1969-74) "the beginning of 26 rewarding greatest accomplishments, working with Associations: Brown is a member of the years spent on Massachusetts Avenue's Freeman in the 1960s, in their efforts to per­ following groups: New York Council on 'think-tank row. ' " suade the U.S. government to insist upon Foreign Relations, Zero Population Growth, Worldwatch chroniclers like to cite a fundamental changes in India's food policy Common Cause, and World Future Society. specific discussion that Brown had with as a condition for food shipments from He is a board member of the Institute of 21st William Dietel, vice-president of the United States. Century Studies, the Population Reference Rockefellers Brothers Fund, at the Aspen Brown's claim to fame in economics? Bureau; and an advisory council member of Institute in Aspen, Colorado in the summer His specialty is to assemble and cite any the Commission of National Institutions for of 1973, as the point of origin of the found­ incident or statistics, from which he can the Environment. He is on the advisory ing of Worldwatch. They cite the men's adduce whatever his backers want to hear. committee of the Institute of International "shared common interests in forming a An early example, the chroniclers report, Economics, a consulting group run by C. small research institute to do integrated dates from when Brown made a tour to India Fred Bergsten of the Trilateral Commission, study and analysisof global issues," specifi­ in the 1960s. He showed his self-professed which acts in close association with the cally environmental and environmentally "knack for putting together a lot of bits and International Monetary Fund. related issues. pieces of information no self-respecting Education: B.S. from Rutgers During the early 1970s, Brown was State Department analyst would use," and University; masters degree in agriculture active in many locations. He was faculty he produced arguments and "predictions" of economics from theUniversity of Maryland, member, Salzburg Seminar in American an imminent countrywide drought and threat 1959; masters degree in public administra­ Studies, summers 1971 and 1974; guest to the food supply, based on reports such as tion from Harvard University, 1962. scholar, Aspen Institute, summers 1972-74. one from a duck hunter that his favorite lake Background: Brown worked at the U.S. (He was MacArthur Foundation fellow in had dried up. Department of Agriculture in Washington, 1986.) In 1974, the Worldwatch Institute Author: Publications include: D.C. in 1959-69, starting out as an analyst was officially created. 1963 "Man, .Land and Food: Looking Ahead for international agriculture in 1959-63, and These Aspen Institute links are critical. at World Food Needs," (USDA-FAS otherwise working in the USDA Foreign Aspen was founded by Robert Maynard study, tying global agriculture forecasts to Agriculture Service. During this period, Hutchins, the longtime chancellor of the population growth forecasts) Brown was groomed for service by University of Chicago, who was the leading 1965 Increasing Wo rld Food Output Secretary Orville L. Freeman. American ally of the late Lord Bertrand 1970 Seeds of Chnnge Freeman, as secretary of agriculture in Russell, the international socialist who advo­ 1972 Wo rld Without Borders the 1960s, was, in tum,beholden-as he is to cated the elimination of science and the sys­ 1974 In the Human Interest the present day-to the London-centered tematic elimination of the darker-skinned 1974 By BreadAlone, with Erik P. Eckholm, financial and food commodities interests races. To this day, Aspen is one of the leading for the Overseas Development Council operating out of Minnesota, Freeman's home Malthusian policy snake-pits in the world, 1978 The Tw enty-Ninth Day: Accommo­ state. Freeman started out as a lawyer in peddling the idea of ''food as a weapon." dating HumanNeeds and Numbers to the 1947, and was elected governor in 1955. He Awards: 1965 USDA Superior Service Wo rld s Resourr:es was part of the Hubert Humphrey political award; 1965 Arthur S. Flemming award, for 1981 Building a Sustainable Society machine, including all its connections to one of 10 outstanding young men in federal 1995 Who Will Feed China? Wa ke-up Call organized crime and international free trade. government; 1981 A.H. Boerma award of fo r a Small Planet Freeman has served as chairman of the the United Nations Food and Agriculture Editor: 1988-, Wo rldWatch magazine; Wo rldwatch Institute's board of directors for Organization; 1982 National Wildlife co-editor, 1991, Saving the Planet: How to its entire 20 years, and serves on many simi­ Federation Special Conservation award; Shape an Environmentally Sustainable lar boards, for example, the Club of Rome­ 1985 Lorax award of Global Tomorrow Global Economy; 1984-, State of the Wo rld linked World Future Society. The World Coalition (the group associated with the annual reports, now issued in 26 languages, Future Society is one of the biggest propo­ Malthusian Donald Lesh and Club of in multi-thousands of copies. nents of the insane ''Third Wave" theory that Rome); 1986 MacArthur Foundation society has gone into a post-industrial epoch, "Genius" fellowship award; 1989 World Dennis Avery peddled by Alvin Tofflerand Newt Gingrich. Wide Fund for Nature International award; Dennis Avery has been, since 1989, the In 1964-66, Brown was given the role of 1989 U.N. Environment Prize; 1991 director of the Center for Global Food adviser on foreign agriculture policy to American Humanist Association, "Humanist Issues, part of the Hudson Institute, for Agriculture Secretary Freeman. Then, after of the Ye ar"; 1991 Pro Mundo Habitabili which he also serves as senior fellow. Avery another Freeman appointment, Brown award of King Carl XVI Gustav of Sweden. resides as a "gentleman" horse and cattle served as administrator of the USDA Markers: During the 1960s, Brown cul­ rancher near Swope, Virginia. International Development Service in 1966- tivated the reputation for being the "whiz Funding: The operations and policy of 69. Brown went on to help found and work kid" who could connect the issues of popu­ the Hudson Institute are funded by founda­ with the Overseas Development Council lation growth rates with food availability. tions including: the Charles Stewart Mott, (ODC), started in 1969 with the backing of Orville Freeman and other mentors of John M. Olin, Harry and Lynde Bradley, many private corporations, foundations, and Brown realized that in Brown, they had a Carthage, Sarah Scaife, Starr, Smith individuals; Freeman was on the board, pliable personality who could be counted Richardson, 1M, General Mills, and Bristol­ James P. Grant was president, and Theodore upon to make the issue of population Iimita- Myers Squibb. Funding also comes from the

32 Special Report EIR December 8, 1995 Pew Charitable Trusts, the Lilly Endowment Research Institute (based in Washington, Called "The Greatest Opportunity in Inc., Sandoz Corp., ConAgra Inc., Archer and founded in 1975 as part of the Farming History," the conference was held Daniels Midland, Philip Morris Companies Kissinger-era food control politics), where in Indianapolis, Indiana, the headquarters of Inc., IMC Fertilizer Inc., Louis Dreyfus Avery restated his customary theme that the the Hudson Institute since it moved from Corp., British Petroleum Oil Company, world's population has exceeded the "carry­ New York, where it was founded in 1%1 by PfIzer Inc., Amway Corp., Sunkist Growers ing capacity" of its resource base. Later in Herman Kahn (known as "Mega-Death" Inc., E.I. du Pont de Nemours and Co., the year, Brown toured Asia to trumpet this Kahn for his advocacy of the usefulness of Exxon Corp., Procter and Gamble theme, and to focus on China as the "face of nuclear war). Company, David H. Koch, Richard Dennis the enemy" in terms of producing too many The official host groups were the (who funds many Libertarian causes, includ­ hungry mouths that will threaten to consume Competitiveness Center and the Center for ing the Drug Policy Foundation which backs the world's scarce food supplies. To under­ Global Food Issues of the Hudson Institute. drug legalization), and Jay Van Andel (of line this, he released his 160-page tract, Who The financial sponsors were top cartel Amway Corp., also a big funder of the Will Feed China? Wa ke Up Call fo r a Small firms, including Cargill, Inc., ConAgra, Heritage Foundation). Planet. In October, Brown spoke on the Sunkist, AGP Cooperative, Inc., Coun­ Background: Avery received a B.A. need for population reduction in Quebec trymark Cooperative, Inc., DowElanco, and degree in agricultural economics from City at the 50th anniversary of the U.N. Miles Laboratories. Michigan State University in 1957, and an Food and Agriculture Organization. M.S. from the University of Wisconsin­ As the loyal opposition, Avery also Free trade pushed Madison in 1959. He worked as an editor at attended a food conference in Beijing this The theme of the conference was that the USDA in Washington, D.C., in 1959-67, fall, along with George Bush (who is associ­ free trade must be expanded (beyond even and 1 %9-7 1. He was a staff member of the ated with the British food cartels), and spoke the North American Free Trade Agreement U.S. Food and Fiber Commission, 1967-68. at numerous Washington, D.C. conferences; and the General Agreement on Tariffs and In 1971-74, he was a policy analyst for the for example, a September conference of Trade, or GATT), which, it was argued, USDA. In 1974-80, he was assistant to the U.S. dairy farm interests, heavily lobbied by would allow international "competition" in vice-chairman, U.S. Commodity Futures the British company Grand Metropolitan farming, through which, from interven­ Trading Commission, in Wa shington, D.C. ("Good Humor") and Philip Morris tions of selected biotechnological and In 1980-88, Avery was chief analyst for ("Kraft"). Avery's refrain is that billions other high-technology inputs, plenty of global agricultural issues at the U.S. more people can be fed. In particular, his food would be produced for future billions Department of State. He was an analyst for theme is that the Pacific Rim will offer an of people. Former Vice President Dan World Perspectives in Washington, D.C. in export boom market for the United States. Quayle gave the conference keynote on 1988-89. Avery is a member of the National But his unstated theme is that free trade and "American Agriculture as a Growth Association of Business EconomistS. cartel food control must be absolute. In par­ Opportunity"; he called free trade the Author: Publications include: ticular, he demands that Asian nations better friend of the U.S. farmer. Other speakers 1968 Food and Fiber fo r the Future open their domestic markets to private inter­ included Paul Faeth, economist from the 1991 Global Food Progress national companies, or else. A quick review World Resources Institute; Dean Kleckner, 1993 "Biodiversity: Saving Species with of last year's conferences shows how the head of the American Farm Bureau; and Biotechnology" (brief) Brown andAvery vaudeville act works. many former USDA officials. All made 1993 "Frontline Perpetuates Pesticide The year started off with the release in special pleas for the rights of the food car­ Myths" (article) January of the Worldwatch annual "State of tel (euphemistically called "U.S. national 1994 "The Organic Threat to People and the World 1994," preceded, as usual, by a interest") to operate freely, outside any Wildlife" (brief) press briefIng in December 1993. The usual national controls. 1994 articles: "Boosting Crop Yields notes were struck about population exceeding In particular, Avery and the Hudson Saves Wildlife," "Hi-Yield Farming and food supply capacity, etc. The report was Institute-cartel crowd demand exclusive Wildlife Preservation Change Terms of the released in each of 26 languages, in several control over present and future biotechnolo­ Environmental Debate," "Avery Tackles Dr. thousand copies, all designed to shape both gy breakthroughs. They demand the arroga­ Gloom at Senate Hearing," "Fighting public and scholarly opinion. It became tion of sweeping patent rights and exclusive Famine Is Politically Incorrect," "Saving the required reading in hundreds of colleges. "intellectual property" rights, to be enforced Planet with Pesticides and Plastic: The Throughout the year, Brown authored under the GAIT Uruguay Round and World Environmental Triumph of High-Yield various statements on how population has Trade Organization, to control innovations Farming." exhausted resources, that were released to in food and fiber from seed to table. Editor of the Hudson Institute's Global media as opinion columns, in particular, For example, the cartel company W.R. Food Quarterly. before the Cairo U.N. Population Grace, in October 1992, received patent Conference, whose backers are the same as rights to all genetically engineered cotton, of The propaganda conferences those of World watch. any type, by any means, produced in the Through publications, conferences, and Enter Avery. He, too, authored dozens of United States until the year 2008. Grace is media events, Lester Brown, Dennis Avery, columns and releases in 1994, in apparent thus entitled to a royalty on any plant or seed and others in their networks keep up a bar- opposition to Brown, saying, "Billions more of genetically engineered cotton, the fourth­ ' rage of hokum for the gullible. people can easily be fed." But a look at a highest-value U.S. crop, no matter how the In June, Brown was among the featured 1994 Hudson Institute conference on the genetic matter was introduced or by whom. speakers at a Washington, D.C. conference, subject shows what a sham their pro-popula­ Similarly, Monsanto has a sweeping patent hosted by the International Food Policy tion, pro-technology position is. for engineered wheat.

EIR December 8, 1995 SpecialReport 33 �ITillEconomics

New banking crisis is set to rock France

by William Engdahl

A new phase in the French banking crisis is programmed to rates to defend the French franc from speculative attack. erupt early next year, just as the country and the government Under terms of the proposed European Monetary Union are struggling with the most serious economic crisis since the (EMU)-the so-called Maastricht Treaty-France must have 1930s. The intersection of the two interconnected processes, a "stable" currency for a considerable period, before it can will create one of the most unstable political and financial be admitted as a participant in the new European currency. conditions in the industrial world, potentially rivalling the The high interest rates and simultaneous severe economic ongoing Japanese banking crisis, which was examined by recession in Germany, France's largest export market, in Kathy Wolfe in EIR two weeks ago. 1993 , collapsed demand for expensive new office space This past summer, just weeks after Jacques Chirac won which was being built, notably around Paris, as France's French Presidential elections, sweeping the Socialist Party economy went into recession. At present, an estimated 5 of former President Franc;ois Mitterrand out of power, the million square feet of new office space stand vacant, a testi­ European Union Commission in Brussels agreed to permit mony to the frenzy of the speculation over the past decade. the French governmentto make a second, extraordinary State According to informed accounts, just as in the S&L specula­ bailout of 145 billion French francs ($30 billion) to prevent tion in the United States, a significant portion of the funds the collapse of France's largest commercial bank, Credit which poured into real estate projects in France, was tied to Lyonnais. In return for their approval, necessary under the the international laundering of illegal narcotics profits. Law terms of the European Union Single Market directives, the enforcement sources report that France became a focus for French government agreed to a massive restructuring of the such illegal fund flows after 1992, when political corruption bankrupt State-owned bank. Part of this restructuring in­ scandals in Italy forced a shutdown of many of the previous volves taking the huge portfolio of non-performing real estate Italian-Swiss money-laundering routes. assets from Credit Lyonnais, putting them under a separate agency, Consortium de Realisation, a mini-version of the France's real estate bubble Resolution Trust Corp. in the United States, which handled But regardless of the source of the funds which went into and sold off real estate assets of defunct savings and loan the French real estate bubble, the problem now, is that all associations in the early 1990s. French banks have heavy exposure on mortgages on the now­ Here is where the danger lies. Beginning early next year, empty real estate holdings. In addition to Credit Lyonnais, this state consortium is mandated by Brussels to sell, "at the largest creditors include Groupe Suez, Paribas, and BNP. market price," $10.3 billion worth of the real estate formerly If they were all to mark the valuation down from the high held by Credit Lyonnais. Three years ago, the largest real levels hit during the bubble speculation, many banks would estate speculative binge in French history came to a halt, as show huge losses, rather than their currently reported small the Bank of France was forced to sharply raise its interest profits. Until October, an informal , air-tight pact among

34 Economics December 8, 1995 EIR French bankers , had been keeping the non-performing real European economies, instead of moving to have French in­ estate on the books of French banks as assets at the peak price dustry play an essential cooperating role with Germany in levels of three years ago. All had agreed not to sell those that task. assets, so long as the market for real estate remained de­ pressed. Another victim of British geopolitics But after almost three years, and severe economic reces­ Underlying this destructive French policy impulse, is sion, French banks are now finding it increasingly difficult the doctrine that caused two world wars in this century: to make profits in other banking areas; the bad real estate Halford Mackinder's British geopolitics. Under that doc­ hangs like a millstone around their neck. Two weeks ago, trine, first made public in 1904, British geopolitics seeks Barc1ays France became the first bank to break the pact. always to prevent the emergence of a Eurasian economic Barc1ays France revealed that it had vigorously sought to sphere, based on strong economic and political alliances dump some $4 14 million of its real estate onto the market at between the countries of Central Europe, with Russia and the huge discount, but had so far failed to find buyers . Now surrounding States. The argument is that this combination Credit Lyonnais' $10 billion will force real estate prices would create an overpowering combination which would across the greater Paris region to plunge in nominal value. end British global hegemony. British elites, most notably As a Paris real estate analyst put the problem, "Right former Prime Minister Margaret Thatcher, adamantly adhere now, the market is overvalued, simply because there are no to this doctrine, which has shaped British policy toward transactions. But any attempt to sell large amounts of real France and Germany. estate would shatter the market." Estimates are that prices Rigid adherence to the strict Maastricht Treaty conditions would immediately be marked down by at least 30% . In were sold to Britain and France in 1991, as a way to contain Japan, real estate valuations have fallen by about 60% since German economic domination of eastern Europe, and hence the peak in 1990 (see graph in EIR , Nov. 24 , 1995, p. 13). of all Europe. This attitude remained French national strategy Such a sharp collapse in paper assets on the books of until the end of the Mitterrand era in May 1995. During French banks will have a devastating impact on their overall the following six months, it appeared that his successor, credit standing, some more than others, but also on their will­ President Jacques Chirac, was having grave doubts about the ingness to lend to business. Here is where the banking prob­ wisdom of continuing the Maastricht monetary austerity; he lems intersect a disastrous French government economic had won the election largely on his pledge to create hundreds policy. of thousands of new jobs in a revived French economy. The Maastricht regimen, however, forces the opposite: Through Maastricht: France's Gingrich austerity its strict budget austerity-a Europeanversion of the discred­ In early November, aftermonths of vacillation, the gov­ ited Gingrich "balance the budget" folly-Maastricht forces ernment of Prime Minister Alain Juppe announced that its severe cuts in State spending. In France, where State sector "top priority" would be to impose sufficient budget cuts and industry is a major part of the overall economy, such cuts tax hikes, in order that France qualify as one of the founding immediately cause soaring unemployment. countries in the proposed Single European Currency. In De­ Following his London meeting on Oct. 29 with Britain's cember 1991, in the wake of German reunification, the 12 Prime Minister John Major, Chirac reneged on his campaign Heads of State of the EU met in Maastricht, the Netherlands promise, and announced that henceforth, his "top priority" to sign a Treaty on European Union. The heart of this docu­ would be to meet the severe austerity demands of Maastricht, ment, is a plan to create one currency out of the disparate and to bring France's budget deficit down from its current economies by 1999 at the very latest. Since this is a ratified 5% of Gross Domestic Product, to 3% by 1997. To reach the treaty approved by national parliaments, any proposed Maastricht-mandated goal would mean severe budget cuts or change reopens the entire ratification debate in national par­ tax hikes equal to $27 billion. Such severe cuts in less than liaments. Four years ago, when the treaty guidelines were two years, at a time when the same Maastricht ·austerity agreed upon, the assumed outlook for EU economic growth demands are pushing the German economy and the rest of was optimistic. The conventional wisdom was that the new Europe into a new recession or worse, are all but politically markets of eastern Europe would create the basis for enor­ impossible. Recent strikes which have brought French trans­ mous economic expansion in EU industries, making the port to a standstill, as well as sit-ins in schools and universi­ Maastricht convergence targets feasible. ties across France, are merely the first, modest response to The opposite has been the result, largely because of ideo­ the proposed cuts. logically motivated insistence by the French and the British, In early November, Prime Minister Alain Juppe an­ that German economic expansion be "controlled." Tragical­ nounced draconian cuts in health care and social security and ly, France has been plunged into its deepest postwar reces­ state pension benefits in order to reduce the deficit (see EIR , sion since 1991, largely as a result of its effort to sabotage Nov. 24, 1995). Major had evidently convinced Chirac that a successful German economic strategy to rebuild eastern Maastricht containment of a growing Germany was more

December 8, 1995 Economics 35 EIR important than the health of France's own national economy. But already, French official unemployment is 11.5% and rising. An even more alarming sign is youth unemployment CurrencyRate s in France, currently running over 23% officially. The series of measures being proposed in the past month by the Juppe The dollar in deutschemarks government-sharp cuts in social security and health bene­ New York late afternoon fixing fits, severe rationalization of the state railway, and general budget cuts and new taxes-guarantee that, all else being 1.50 equal, the French economy over the coming months will 1.40 1000 plunge far deeper into depression. -- - To reduce the French budget deficitfrom 5% of GDP to 1.30 3% by 1997 , will mean that hundreds of thousands will be

forced out of state jobs, from the state railways, the airline, 1.20 and public services. It is a cruel irony that the austerity will only worsen the deficit, as overall tax receipts to the govern­ 1.10 ment fall . France's public sector forms a predominant share 10111 10118 IOns 11f1 1118 11f15 11122 of the overall economic activity-some 40% of GDP, far The dollar in yen higher than in Germany or the United States-so cuts here New York late afternoon fixing hit the economy most directly.

100 Caught in a blind alley of debt The present situation underscores the trap waiting for most governments of the European Union. Ever since the oil shocks of the 1970s, most European governmentshave gone IIR deeply into debt to finance oil imports and maintain "full employment." France today has a total national debt of more 7R than $828 billion. Germany's public debt will top $1.4 tril­ lion by year-end. Italy has well over $1 trillion debt. The 10111 10118 10125 11f1 1118 11f15 11122 Maastricht Treaty, under these conditions, imposes the worst possible deflationary engine upon the European economies, The British pound in dollars just when their economic necessities demand radical new job New York late afternoon fixing and infrastructure-creation expansion policies. To reduce deficits, France, Germany , and other European 1.80 Union countries are also introducing severe new tax burdens 1.70 on industry. This, in tum , is accelerating the trend to industri­ al "globalization." Large French and German multinationals 1.60 are going to cheaper production sites in Asia or eastern Eu­ � - rope in order to lower production costs, leaving a growing 1.50 army of unemployed behind, who draw even more on the State welfare deficit. 1.40 The situation is a vicious, self-feeding downward spiral . 10111 10/18 10125 11f1 1118 11f15 11122 On the one hand, the Juppe government demands that State The dollar in Swiss francs employees work several years longer to qualify for pension New York late afternoon fixing benefits. But that only means fewer workplaces for young workers , as the economy contracts. The high interest rates of 1.30 the Bank of France, needed to keep the franc stable for the

Maastricht Treaty, prevent significant business and job cre­ 1.20 ation in France. Massive job eliminations in State companies from railways, aerospace, and electricity generation further 1.10 ensure loss of tax revenue. Into this volatile situation, the triggering of a new banking crisis through liquidation of 1.00 billions of dollars of French office space at fire-saleprices in coming months, gives us all the ingredients for a financial 0.90 and economic explosion. 10111 10118 10125 llfl 1118 llfl5 11122

36 Economics December 8, 1995 EIR Brazilian government makes a death pact 'With thebank s by Lorenzo Carrasco Bazua

Less than three months afterit intervened in Banco Econom­ ter, held 17% of the bank's stock. ico to prevent its bankruptcy, Brazil's Central Bank had to To finagle the sale of Banco Nacional, the government act again, on Nov. 20, this time to force Brazil's seventh­ financed a $1 billion loan at super-subsidized rates; but this largest bank, Banco Nacional, to sell the healthy part of its is a small part of the bank's estimated $4 billion in losses. assets to Unibanco, while the Central Bank itself will cover The loan was made possible because of a law which the the bank's bad debts . Unibanco paid $1.04 billion to acquire federal government itself imposed on the Congress, under Banco Nacional's retail and international operations, and, the pompous title of Program to Stimulate the Restructuring with the acquisition, becomes one of Brazil's three largest and Strengthening of the National Financial System private banks . (PROER). The law, which is intended to promote bank merg­ Once again the governmentof Fernando Henrique Cardo­ ers, was adopted after the direct intervention of the Federal so has acted to patch over the state of bankruptcy of the Reserve Bank of New York. country's national financial system. Despite efforts by Cen­ In fact, the PROER doesn't even begin to cover up the tral Bank President Gustavo Loyola and Finance Minister rather perverse relationship which President Cardoso main­ Pedro Malan to minimize and suppress knowledge of this tains with the leading national and internationalbankers , who crisis, it has reared its ugly head. Nacional's exact losses dominate every aspect of national life. As Veja magazine have not yet been revealed, and according to Brazilian bank­ reported on Nov. 22, an anonymous minister of State said ing analysts, this is what the financialmarkets want to know . that "N acional won't go under because it can't. If this hap­ The Nov. 23 Tribuna da lmprensa warned that the "rotten" pens, others will go down with it. This is a government debts of one bank are a good indicator of the distribution decision." This idea of rescuing bankrupt banks by any of risk throughout the entire system, and if the figure for means possible was the most relevant aspect of talks that Nacional's bad debt is high, this would exacerbate the crisis took place between Mexican President Zedillo and President of the system as a whole. Fernando H. Cardoso, during the October summit of lbero­ Nor is the crisis in Brazil's banking sector an isolated American heads of State in Bariloche, Argentina. case. The bankruptcy of the international monetary system The essence of this relationship is based on the promiscu­ has rocked the economies and banking systems of most Ibero­ ity which has existed between Brazil's public finances and American nations. Argentina's banking system has never the private financial system, to the point in which several of recovered from the Mexican devaluation crisis of December the private banks' leading executives came from the Central 1994 , afterwhich it lost almost $8 billion in deposits-which Bank's board of directors . The government can't let the have yet to return. While the Carlos Menem governmenthas banks collapse, because it assumes that with them, the entire resorted to an array of rescue measures, the system remains structure of internal public financing would also collapse. extremely fragile. The Mexican banking crisis is even more With this logic, and according to its own monetarist dogmas, severe than Argentina's, and the Ernesto Zedillo government the government can also set usurious interest rates at astro­ has had to enact several emergency measures in an attempt nomical levels, which the banks will agree to impose on the to keep the banks afloat. economy as a whole. It is this insane relationship which, Banco Nacional was founded 51 years ago by Jose de so far, has made it possible to maintain so-called monetary Magalhaes Pinto, a powerful politician and governor of stability-despite the destruction of Brazil's physical Minas Gerais state. He was known as the civilian commander economy. of the military movement which overthrew President Joao Goulart in 1964 . Banco N acional' s problems became particu­ Why the financial system is a wreck larly thorny for President Cardoso, due to family involve­ Monetary authorities claim that the banking system is in a ment: his daughter-in-law, Magalhaes Pinto's granddaugh- phase of "accommodation," due to the reduction of inflation,

December 8, 1995 Economics 37 EIR which had been the source of the financial system's gigantic exchange rate which, together with the lowering oftariffbarri­ profits. While there is some truth to this, it by no means ers, allowed the country to be flooded with cheap imported explains the banking system's real difficulties. products, to the detriment of national industry and agriculture. The system is in bankruptcy because the physical econo­ Second, the freezing of agricultural prices below the level my at all levels is in bankruptcy. It is not only that thousands of the minimum cost of production. And third, winning the of industrial and agricultural enterprises are simultaneously world's usury championship, with annual interest rates of ceasing to pay their debts and laying off their employees and 200% , while inflation was supposedly close to zero. technicians. On a mass scale, individuals are also failing to The first of these policies caused a decline in economic honor their personal debts with banks and businesses. activity, although officialstupidity refuses to call this a reces­ This dramatic reality is reflected in the growth of debt sion, much less recognize the reality of a deep depression. payment arrearages (loans more than 60 days overdue), and The second led to a transfer of profit from the agricultural in non-performing debt (loans more than 180 days overdue sector of at least $15 billion, despite the largest grain harvest with insufficient collateral, or 360 days overdue with suffi- . in Brazil's history. And the third pushed the entire economy cient collateral). According to the Central Bank's November toward the abyss, through the disproportionate growth of 1995 bulletin, the total amount of debt arrearages, as of last forced indebtedness. July, was $26 billion, an increase of 130% over July 1994 With these policies, the governmentca used an explosive when the "Real Plan" was launched. growth of indebtedness at the federal , state, and municipal Of this total amount of arrears , the rural sector accounts levels, while the effects of monetary policy led to a drop for $4.3 billion; industry, $8.4 billion (an increase of 150% in tax revenues. For example, internal debt in government in one year); business, $3.3 billion (an increase of 300%); bonds, which are negotiable within the financial system, dou­ and personal arrearages, $2.2 billion (an increase of 500% bled beginning in July 1994, when the Real Plan was compared to July 1994). All together, the level of non-pay­ launched. That debt was $70.2 billion, with the federal gov­ ment represents 12% of all credits granted by the financial ernment accounting for $59.5 billion, and the states and mu­ system to the private sector. Although Central Bank figures nicipalities accounting for $20.6 billion. By October 1995, aren't available for subsequent months, the pattern of non­ the amount had grown to $140.3 billion, of which $103.2 payment continues to grow, placing the entire banking sys­ billion corresponded to the federal government's share, and tem in jeopardy. $37.1 billion to that of the states and municipalities. A former justice minister and former Supreme Court So that the reader may have a more precise idea of what ' magistrate, Paulo Brossard , characterized the PROER in his this means, the government's debt grew during this period at column in Porto Alegre's Zero Hora on Nov. 13. He wrote a rate of $1 billion per week, and this has now increased to that the government, already in possession of certain privi­ $1.5 billion per week. What this means is that every working leged information, authored a law and sent it "in the early day, the debt in bonds of the federal , state, and municipal hours of a Saturday before the light of day appeared on the governments increases by $300 million. horizon ...to rescue the financial system, which has for so As a result of this exploding debt, through August of this long benefitted from the usurious policies which corrupt, year, the public sector had already spent $20 billion in interest subvert, and destroy the work of Brazilians in agriculture, payments. Combined with the fiscal contraction, this caused industry, and trade ." Brossard continued, "Brazilian society a deficit in public accounts of $21 billion as of September, has been whipped by official plunder, and no one benefits the equivalent of 4.36% of Gross Domestic Product. more from it than the financial system; and now the govern­ This hemorrhaging of public resources caused a current ment comes, in the dark of night, to reward finance capital , account deficit of $13.7 billion up through September, now granting it special credits as well as tax benefits." being financedby the enormous inflowof speculative capital. With the crises of Banco Economico and Banco Nacio­ As of September, the liquid amount offoreign capital invest­ nal , the government has already injected over $5 billion into ed in Brazil was $23.7 billion, of which $18 billion corre­ the banking system. And now with PROER, it will be free to sponded to the third quarteralone , thus reversing the outflow help the bankers with another $10 billion or more , which is of capital which occurred after the Mexican devaluation crisis the minimum amount which banking analysts estimate is of December 1994. needed. While it is true that the governmentof FernandoHenrique Cardoso will not confront a short-term exchange crisis simi­ Usury bites its own tail lar to Mexico's, and that it has raised its foreign reserves The level of arrears , on which there is little hope of future to almost $50 billion, the effects of monetary stabilization payment, is a direct result of the very dynamic of the govern­ policies, particularly the usurious interest rates which attract ment's monetary stabilization plan. It's worth repeating what foreign capital , are leading the entire national economy into EIR has reported many times before . The Real Plan is based bankruptcy. And what the governmentdoes through PROER on three monetary artifices: First, the fixing of an artificial is irrelevant.

38 Economics December 8, 1995 EIR In addition, Prince Philip's old Navy buddy, and former private secretary , Cmdr. Michael Parker, was on the board of ACF and is on the WWF's board of trustees. Former Prime Australiabe comes Minister Malcolm Fraser was a founding member of ACF, and on the WWF' s board of trustees. Although not a raw materials a colonial quarry executive, Fraser was the chairman of the U.N. Committee on African Commodity Problems. As the report points out, "There has only ever been one commodity problem in Africa, by Michael J. Sharp which is that the Crown-linked multinationals have been rip­ ping off Africa's mineral and agriculture commodity wealth The Citizens Electoral Councils (CEC), the co-thinkers of for less than on the dollar, for over a century." I ¢ Lyndon LaRouche in Australia, have just released 25,000 Through various ploys, 32% ofAustral ia has been locked copies of an explosive new special report , Behind the 'Land up in either "conservation" or Aboriginal land rights. TheNew Rights' Scam : The Oligarchy's Raw Materials Grab, outlin­ Citizen's report reveals that Aboriginal organizations (Abo­ ing how Australia is set to become the world financial oligar­ rigines are 1.5% of Australia's 17 million population) hold chy's private quarry . 77 cattle ranches, making them the largest land-holders in Since January, the CEC's New Citizen newspaper has Australia. These vast ranches are acquired by Aboriginal or­ featured a series of special reports exposing the British ganizations, through government funding. Once acquired, Crown's hand in preventing Australia from developing as a "land claims" are filed, to make it Aboriginal land in perpetu­ sovereign nation-state, showing that Prince Philip and the ity . The purpose is not development, for Aborigines or anyone oligarchical elites of the Club of the Isles founded Australia's else. Much of the area becomes wasteland, through neglect. environmentalist and "indigenist" movements. The most re­ cent issue, entitled "The Rise and Fall of Australia," empha­ Two case studies sized how Queen Elizabeth had personally directed the sack­ The report illustrates this using two case studies: the I) ing of Prime Minister Gough Whitlam in 1975, because, Kimberleys region of Western Australia, where cattle sta­ despite his shortcomings, he had a grand vision to industrial­ tions are carrying only 10% of their capacity after being taken ize and settle the entire continent, and to take back control of over by Aboriginal organizations with government money, the vast natural resources of the nation from the oligarchical and 2) the Northern Territory, now 47% "Aboriginal," with multinationals that controlled 62% of the nation's minerals many land claims pending. In both cases, the self-appointed and energy wealth at that time. Aboriginal organizations overseeing "Aboriginal rights," The special report showed how these elites control the have played very shady roles. The Kimberley Land Council raw materials cartel firms, such as Rio Tinto Zinc (RTZ) and intends to tum a vast swath of northwesternAust ralia into an ICI. It is therefore lawful to find these mining and commodi­ autonomous nation within two years. ties firms funding the radical environmentalist-indigenist The Northern Land Council, the Northern Territory's movement in order to lock up vast resource-rich land from Aboriginal land group, has a deal with RTZ's subsidiary , development. CRA Ltd., for an area of some 4,300 square miles, in which the NLC will get funds for the area it claims, whether or not Oligarchs fund indigenists the NLC is finally granted the land in court. A prime example is Sir Maurice Mawby, CBE (Com­ Australia's most graphic example of radical indigenism mander of the British Empire) . Mawby was the firstchairman can be seen in the state of Western Australia (W.A.), where of Conzinc Rio Tinto of Australia Ltd . (CRA), RTZ' s subsid­ 95% of the state 's mining leases are under Aboriginal claim. iary, and the Chairman of Benefactors of the Prince Philip­ The Kimberleys goldfields is one of the world's wealthiest founded Australian Conservation Foundation (ACF), i.e., its gold deposits, where in some cases, Aboriginal land groups chief fundraiser. Mawby was also on the board of RTZ have registered up to four separate land claims over the same (London). area. Some 420,000 square miles, or 30% of the state, are Richard Austin and Charles Warren Boynthon are other under claim by Aboriginals, including the world's largest examples of mining and raw materials executives sponsoring diamond deposit, owned by RTZ. the ACF-World Wildlife Fund (WWF) . Austin, aBE (Order To illustrate how wild these claims are , New Citizen listed of the British Empire), was deputy director of the Australian some of them: The Swan River, the capital city of Perth's Secret Intelligence Service; he held various senior positions main waterway; Perth Airport; the entire Ord River hydro­ in RTZ and was on the board of trustees of the WWF in electric scheme in the northwest of W. A.; an area extending Australia. Bonython AO, KStJ (Knight of St. John), was a from W. A. to South Australia (the neighboring easternstat e), board member of ICI Australia in 1940-66, is a foundation going about 100 miles out to sea and taking in the Great member of ACF, and is on the WWF's board of trustees. Australian Bight.

December 8, 1995 Economics 39 EIR BusinessBrief s

Corporate insurance system in the next session of parlia­ could lead to loss of valuable strains, and re­ ment. He said that would differ in key aspects lease of extremely lethal microorganisms. Germany's Mittelstand from the U . S. Resolution Trust Corp. , set up "This summer Vektor State Science Cen­ in 1989 to handle failures of savings and loan ter director Academician Lev Sandakhchiyev hit by credit squeeze institutions in the United States. No decision successfully used these arguments to persude has beenmade on whether to funnel taxpayers' the Ministry of Finance to cover the Vektor Gennany's small and medium-sized industry , money into the new body. Finance Minister electricity bill," Literaturnaya Gazeta report­ called the Mittelstand. is threatened becauseof Masayoshi Takemura said that such funds ed on June 15, 1995. In contrast, 18 months a creditsqueeze by the Gennanbanking sector, might be extended to a special deposit insur­ earlier, the same ministryrefused to fund "nor­ the Nov. 20 Wall Street Journal reported. ance account that might be set up to deal with mal activities" at the State Science Center for "A record 28,000 othersmall to mid-size failed financial finns. Applied Microbiology in Obolensk--

40 Economics December 8, EIR 1995 Brilffly

GERMANY will see 2 million more• jobs "phased out" in the next few years, because of job rationaliza­ tion, the "recession," and outsourc­ ing, according to a forecast by the Roland Berger consulting firm. The At the momenUhere is a lot of talk by envi­ "free market" policies, and theestablishment firm is a partner of Deutsche Bank, ronmentalist institutions about the so-called of an "independent" central bank. which has recently abandoned tradi­ "external costs" of transport infrastructure, The Catholic Church has beengiving simi­ tional industrial banking for British i.e., environmental damage, land use, and pol­ lar wamings. "We are havinga lot of talks with banking methods. lution. The idea is that these "external costs" the government concerningthe danger of the IMF and Soros forCroat ia," a source close to should bepaid by the "consumer of transport ARCHER Daniels Midlandis buy­ services," thereby making them much more the church told EIR on Nov . 20. So far, the •ing up 30% of the stock of Mexico's expensive. The European Commission is contacts have been private, but voices may Grupo Maseca, the national monopoly working on a Green Paperon "extemal costs" soon be raised publicly against the attempt of for production, processing, and mar­ Soros and company to take over the financial of transport infrastructure, and the German keting of cornmeal , Reforma reported Federal Statistical Officeis planning to release institutions of the country. The Catholic lead­ on Nov. 23. The daily noted that ADM figuresperiodically on the "Ecological Social ership is well awareof the danger of the usuri­ is accused of "predatory" practices. Product," in order to contrast it to the usual ous policies ofthe IMF and World Bank, and, in particular,of the roleplayed by Soros. "You Gross National Product. LLOYD'S of London insurance Baum noted that 50% of the productivity don't know how much Sorosdid to disruptre­ •syndica te will reach total cumulative increase of the German economy during 1960 lationships inside Croatia," the source said. losses since 1988 of $17.73 billion through 1990 is a consequence of the improve­ The Catholic Church in Croatia has been by next spring, according to a report ment of the transport system, allowing for shocked by the resultsof the Polish elections. released in November by a Lloyd's much higher transport volumes. He said that "Cardinal Glemp called for voting forWalesa advisory committee. In mid-Novem­ he has calculated that a \0% increase in road and you saw what happened. The rootof that ber, chief executive Peter Middleton infrastructure would lead to a 2% increase in defeat is in the penetration of these usurious resigned, as a growing number of GDP. economic programs. These areabsolutely op­ "N ames" are suing Lloyd's over their positeto the social doctrineof the church," the open-ended liability. source said. CHINA will cut tariffs on two­ thirds• of imports by 30% next year, Economic Policy President Jiang Zemin said at the APEC meeting in Japan on Nov. 19, Bosnia, Croatia warned Eastern Europe the International Herald Tribune re­ of IMF, Soros danger IMF blamed for return ported. The cuts will bring down tar­ iffs to 24-25%, still higher than de­ The governmentof Croatiais being wamed not of command economy veloping nations' average of 15%. to adopt International Monetary Fund (IMF) policies, nor to listen to speculator George If there is a resurrection of Soviet command INDIAN Prime Minister Nara­ Soros. economics, the International Monetary Fund •simha Rao called an for an Indian The Bosnian magazine Lj iljan recently (IMF) and World Bank areto blame, declared Ocean economic bloc, at a three-day featuredFaris Nanic, the secretary general of Belarus President Aleksandr Lukashenko, in conference in New Delhi, according the ruling Bosnian Democratic Action Party an interview with the German financialdaily to wire reports on Nov. 20. It would in Croatia and secretary of the International Handelsblatt on Nov. 21. These, and other, include India, South Africa, Austra­ Parliamentarians AgainstGenocide In Bosnia. western financial institutions intend to "ruin lia, Malaysia, Mauritius, Oman, and Nanic wamed the government against ac­ the economies of Belarus,Ukraine, and also Singapore. ceptingthepromises and conditionalities of the Russia," and the threevictims of this policy IMF and World Bank. The pointis not just to might be forced to join in the defense of their BAD HARVESTS in other parts receive some money from these institutions, national interests, he said. of• the world are to the benefit of Eu­ Nanic said, but to establish who will be in With the exception of Germany, Luka­ rope, declared John Bensted-Smith, chargeofthe funds and how they will beinvest­ shenko charged, western nations are closing senior aide to European Union Agri­ ed, i.e., in the real economy, or to create a off their marketsto Belarusprodu cts. This left culture Commissioner Franz Fisch­ debt that will deliver Bosnia into the hands of Belarus no choice but to form a customs union ler, in Vienna on Nov. 20. EU grain "creditors." In 1992, Lj iljan interviewed Lyn­ with Russia, to seek trade preferences. He reserves have dropped from 33 mil­ don LaRouche. added that close economic and political rela­ lion tons to 5-6 million tons in only a Recently, an IMF and World Bank team tions betweenBelarus and Russia is also relat­ few years, but he said that it is now visited Sarajevo, promising minimal funds in ed to the fact that 2.5 million out of the 10 possible to get better prices. exchange for adoption of "privatization" and million citizens of Belarusare ethnic Russians.

December 8, 1995 Economics 41 EIR �TIillInternational

Mexico's free-trade 'miracle' is basedon dope and looting

by Valerie Rush

The Nov. 15 arrest in Geneva, Switzerland of the wife and Directive 42, which specifiedthat leading money-laundering brother-in-law of Raul Salinas de Gortari, as they tried to centers in the world-such as Switzerland-will pay a heavy withdraw nearly $84 million out of a Swiss bank under one price in U. S. retaliation if they fail to cooperate in anti-drug of Raul's aliases, confirms in spades what EIR has been investigations, such as that of Raul Salinas. Authorities in all saying since at least May 199 1, when it issued a Sp ecial three countries are now trying to identify other bank accounts Report on "Auschwitz Below the Border": The free-trade under Raul's alias , and to track down others who may have "economic miracle" imposed on Mexico by Raul's brother had access to those accounts. Carlos Salinas de Gortari , and by the administration of Pres i­ Charges of illicit enrichment have been added to the mur­ dent George Bush in Washington, was nothing but a looting der charge which Raul Salinas is facing in Mexico, and there mechanism of the firstorde r, under which usury , speculation, are reports that charges of laundering drug money are being drug trafficking, terrorism, and money-laundering flourished considered as well. He is currently injail awaiting trial. with abandon. There are insistent reports that ex-President Carlos Sali­ The corruption of the "Salinas model" is now a matter nas, Harvard economics degree and all, was complicit in of public record, and its demise has ramifications that go far brother Raul's criminal activities. Although Carlos quickly beyond the victimized nation of Mexico. Salinas's "mira­ faxed a press release from an undisclosed location to the cle"-codified bythe North American Free Trade Agreement media, denying any knowledge of the origin of his brother's (NAFT A)-was a showcase model for George Bush and Mar­ multi-millions, a source at the U.S. Drug Enforcement Ad­ garet Thatcher's "new world order." That model, imposed ministration told the Mexican daily Excelsior that "we report­ through the International Monetary Fund (IMF) on countries ed directly, and at the highest level, on the suspicious trans­ around the globe, from Russia to Argentina, has in every case fers abroad" carried out by Raul during his brother's six­ resulted in the destruction of the physical economy ofthe tar­ year term. Inside Mexico, there is widespread belief that getted nation, the looting of its raw materials and workforce, the former President is lying outright about what he knew. and the growth of usurious speculation, illegal narcotics traf­ Eighty-one of 300 congressmen from the ruling PRI party ficking, and attendant criminal mafias in its stead. have already publicly called for both Salinas brothers to be When she was arrested, Paulina Castanon de Salinas, thrown out of the PRI. Raul's latest wife, was using false documents, and carried documents giving her power of attorney in the name of Juan Wall Street attempts damage control Guillermo Gomez Gutierrez, to empty one or more bank The City of London and Wall Street banking crowd that accounts of millions. The arrest was the result of careful put the Salinas team in power and promoted them as a model coordination between the Mexican, Swiss, and U.S. authori­ globally, have leapt to their defense, and are tryingto control ties, according to statements from U.S. Justice Department the damaging fall-out from the scandal. Back in April of this officials. It was one of the first such actions carried out under year, Wall Street J oumal editor RobertBa rtleypenned a sym­ the aegis of President Clinton's recently decreed Presidential pathetic interview with the former Mexican President, who

42 International December 8, EIR 1995 is today a member of the board of Dow Jones, Inc., which This is a perfect example of how "free trade" works. publishes the Journal. Bartley quotes Salinas insisting that Before Salinas came into power in 1988, Mexico was nearly the murder evidence against his brother is just "hearsay. " The self-sufficient in com, beans, and other basic food staples, interview also cites Carlos Salinas's "gratitude" to Sir Henry and was importing only 5 million tons. Between 1988 and Kissinger KCMG, the self-proclaimed British agent of influ­ 1994, grain imports zoomed. Now Mexico is importing 15 ence and longstanding admirer of the Mexican "miracle," for million tons of grain a year, equalling 25-30% of the coun­ coming to his aid with a public lunch invitation. Perhaps think­ try's total grain imports. Equally important, Mexico has no ing of his own role as a modem-day lago, Kissinger called money to pay for it, and its population is faced with a very the Salinas brothers' troubles "a Shakespearean tragedy." real threat of mass starvation and epidemics in the immediate In a June interview with Mexico's EI Financiero, Kis­ period ahead. Outrage is so widespread, that journalists are singer Associates' vice-president Alan Stoga declared that already suggesting that the real source of Raul's millions any trial of Raul Salinas would "not get past the first round," comes from the killing he made while destroying the nation's because it was "very weak, based 100% on verbal tes­ farm sector. timony." It is said that public servant Raul, whose official annual On the other hand, the evidence of Raul Salinas' corrup­ income was $180,000, amassed a multibillion-dollar for­ tion under his brother's reign is now so overwhelming, that tune, stashed away in scores of bank accounts around the the disgraced President appears to have fledto Castro's Cuba, world. His links to various of Mexico's drug-traffickingcar­ leaving his sponsors to worry that their carefully crafted "Sa­ tels were universally known. Raul's terrorist capabilities linas model" could go down the tubes, in Mexico and else­ were at the same time key to protecting his brother's "mira­ where. As one prominent columnist in the daily Excelsior cle"; the assassination of at least one of several prominent put it on Nov. 27 , "What will be the response of Salinas's Mexican figures murdered in the latter part of Salinas's term domestic and foreign allies to this new situation, [of] figures because "they knew too much"-in the words of one colum­ . . . like George Bush or Henry Kissinger in the United nist-has been officiallylaid at Raul's door. States, who have been key in building the image Salinas knew how to project?" The 'Salinas effect' Wall Street's response, as is typical of the Bush-Kissing­ Like the so-called "tequila effect" when the first collapse er crew, has been to threaten Mexican President Ernesto tremors hit Mexico's free-trade "miracle" last December and Zedillo to back offon the investigations, or else. An article then spread outward across the continent, the "Salinas effect" in the Nov. 27 Wall Street Journal, explicitly warnedZed illo is already being felt elsewhere. In Venezuela, President Rafa­ that he "is playing a dangerous game in pursuing new charges el Caldera gave an interview on Nov. 27, in which he point­ against Raul," since, as academic Delal Baer puts it, "To the edly observed, "The situation in Latin America is very seri­ extent that Zedillo shares the economic views of the previous ous. Look, until December 1994 , they presented the policy administration and those views are discredited, it makes it of President Carlos Salinas de Gortari of Mexico to us as the difficult for Zedillo to continue with those economic poli­ model. Very distinguished Venezuelans who had been [to cies." A Dec. 1 article in the Washington Post attempted Mexico] , said, 'Caldera, what has to be done, is what Salinas to whitewash the Salinas scandal, arguing that it is really de Gortari did. ' Why are they silent now? Why don't they say President Zedillo "who had the chance to make things right. anything? Why don't they talk about Salinas de Gortari?" Instead, he is making things worse." One week earlier, Caldera's Finance Minister Luis Matos Azocar firedthe head of Venezuela's Investment Fund (FlV) , Portrait of 'free-trade' sleaze Carlos Bernardez, whose pro-IMF views had repeatedly Raul Salinas de Gortari held several plush posts during clashed with those of the government. Bernardez' s dismissal, his brother's six-year reign, including "technical director" of at a moment when the Caldera administration is in delicate a vast slush fund known as Pronasol, which Raul turned into negotiations with the IMF, triggered a new round of attacks a private fiefdom run by an army of "ex"-communists and against the Caldera government, led by "consultant" Steven "former" terrorists. It was this network and Pronasol funds Hanke's threat that Venezuela could become "the Nigeria of which provided critical support for the January 1994 Zapatis­ South America" if it persists in defying IMF "recommenda­ ta narco-terrorist insurgency in the southernMexica n state of tions. " Chiapas. Raul also ran Conasupo, the state's staple food Hanke, a Mont Pelerin hatchetman who is a persistent distribution agency, which oversaw import and export of advocate of British-style "currency boards," served as an meat, milk, and grains; Raul used Conasupo' s immense pow­ adviser to Bernardez, and is now out of a job in Venezuela. ers, in collaboration with speculators and the international Venezuelan government official Roosevelt Velasquez was grain cartels, to destroy Mexico's grain, cattle, and dairy quick to note in response to Hanke's threat, that "but of industries, while making a killing for himself and his family course, [Hanke] was an adviser to Mexican President Carlos on the side. Salinas de Gortari. "

December 8, 1995 International 43 EIR versus oligarchism is not a settled matter, even in the United States: "Not even Pat Buchanan is lobbying for hereditary mon­ archy, even if he is a little soft on the old Hapsburg empire. But the truth is more complicated. Monarchical and aristo­ cratic yearnings lie just under the surface in many of the The fall of the House democracies as voters translate their impatience with politi­ cians as a group into a wish for something resembling 'a of Windsor is on better class of people' to run things. If you want to be a real republican (that's small or' and can be defined here as the opposite of a monarchist), you don't have to love politicians, by Jeffrey Steinberg and Paul Goldstein but you do need to respect their craft." He concluded: One year after Lyndon LaRouche wrote "The Coming Fall "Politicians are what you get when you toss out the kings of the House of Windsor" (see EIR , Oct. 1994, p. and princes ....Free citizens should neither need nor want 28, 12), the British monarchy is going through the gravest existential hereditary or even personalized symbols of unity. Monarch­ crisis since the American Revolution. And, while there are ies were junked precisely because people traded their faith in various groups in and around the London-based Club of the symbols for a confidencethat , for better or worse, they could Isles oligarchy who are taking up factional positions on the (and ought to) rule themselves." fate of the Windsors, a far more fundamental battle over Asked about the significance of this debate about the the issue of republicanism versus oligarchism has suddenly future of the Windsors, Lyndon LaRouche, during a Nov. 29 broken out in the pages of the Establishment media. "EIR Talks" radio interview, linked the fall of the British The ostensible trigger for this latest upsurge in Windsor­ royal family to the imminent collapse of the present financial bashing was the British Broadcasting Corp. 's hour-long system. "Panorama" interview with Princess Diana, the estranged "Obviously," he said, "the institution of the monarchy is wife of Charles, the Prince of Wales and the heir-apparent to finished. Nothing can be done about it, because the entire the English throne, which aired on British and American international monetary system will end within months. television in late November. In addition to her soap opera There's no way of getting around it. Either it will end by tales of marital infidelity, spousal abuse, and "low self-es­ disintegrating, spontaneously, or it will be ended, that is, put teem," Lady Di declared bluntly that Charles is unqualified out of its misery, with key parts being put into receivership to serve as king. by relevant governments. In the aftermath of her TV appearance, the very existence "But either way," he continued, "the kind of power, fi­ of the House of Windsor and the British monarchy has been nancial power and monetary power which London has exert­ called into question. ed, is coming to an end. And in the process, it's obvious that the British monarchy, in its present form at least, is doomed. American Founding Fathers Were right It's an archaic institution anyway, and who needs it? In one of the most blunt commentaries, Washington Post "So various people in the situation are playing it. On columnist EJ. Dionne, Jr. , who is known around town as a the one side, you have some people associated with [former "close friend" of the Clinton White House, wrote a Nov. British prime minister] Mrs. [Margaret] Thatcher, who 28 column headlined "The King Is Dead," in which he stated: never got along with the queen anyway , but for different "The world should be grateful 'to this Windsor lot for proving reasons than I did (I don't get along with Mrs. Thatcher, what our American forebears understood long ago: that re­ as you know), are playing the Lady Di side. Others are publics are better than monarchies, that monarchism and its playing it. philosophical ally, aristocracy, are dead ideas that deserve to "Some people who are in the British oligarchy, essential­ stay dead." ly, even though they're not Brits by pedigree-they're Dionne quoted Tom Paine on the issue ofhereditary mon­ Dutch, Germans, and so forth-from the outside are also archies: very upset, and think the monarchy is anachronous and "One of the strongest natural proofs of the folly ofheredi­ should be discontinued. tary right in kings is that nature disapproves of it. Otherwise, "So, one should not look at the affair as a soap opera," she would not so frequently tum it into ridicule." Paine's LaRouche cautioned, "even though it has some aspects of comments, directed at "mad" King George III, fitthe present that. But this is a reflection, a symptom, of the doom of a Windsor lot to a tee. long out-lived archaic institution, the British monarchy. And Dionne warned, however, that the issue of republicanism this is the way it goes."

44 International December EIR 8, 1995 Ravings from the royal fringe Second, the unraveling of the internationalfinancial sys­ The Princess Di appearance on BBC, in rekindling the tem that has been one key power base for the Club of the "Royals" debate, has dragged some bizarre proponents of the Isles, has provoked a "falling out among thieves." Over the ancien regime out of the woodwork. past several years, Dutch, German, and American financial On Nov. 29, Donald Forman, head of the Monarchist institutions have moved in to bail out some of London's League, a London-based advocacy group peddling the reviv­ oldest and most regal institutions, including Barings Bank, al of every dead and near-dead royal household on the Euro­ Lloyd's, and Morgan Grenfel. As a result, there has been a pean continent, told reporters that "republicanism doesn't power tilt within the Club of the Isles, with the House of work." Citing the example of the current chaos in France, Windsor and the City of London being relatively weakened, and recent coverage in the French daily Le Figaro attempting and a Dutch-German combination gaining strength. to rehabilitate the reputation of Napoleon III, Forman argued Among the British elites, there is a revival of the debate that there is at least 20% support among the French electorate that broke out at the time of the American Revolution, when for a revival of either the Bourbon, Orleans, or Bonaparte some oligarchical families seriously considered dumping the royal houses. Hanoverians altogether and running the empire directly The following day, former London Times editor-in-chief through the British East India Company and its adjuncts. Lord William Rees-Mogg penned a rabid Times commentary According to several well-placed sources, today there are defending royal blood lines. "In the 20th century," he wrote, at least six factions inside the British Establishment waging "the hereditary principle has been widely discredited in appli­ a war over the future of the Windsors and their own political cation to human beings, though it is still generally accepted survival. Among the monarchists, there are advocates of the for race horses. Yet the more the scientists discover about status quo, who wish to see Queen Elizabeth II remain on the the human brain, the more clear it becomes that brain struc­ throne until her death. This group wishes to see Prince Philip tures are genetically determined physical realities, like our reassert his position as "chief operations officer" of the Club noses or our muscles .. ..Kings are successful both because of the Isles. A second pro-monarchist group sees the need to they have the necessary mental attributes and because they reform and "downsize" the Crown in order to assure its sur­ are trained to be kings. It seems likely that training on its vival into the 21st century. Press magnate Rupert Murdoch, own cannot produce a great monarch, any more than it can and the London Times apparatus more broadly, are represen­ produce a Derby winner. " tative of this grouping. On a slightly more mentally balanced note, royal biogra­ The Thatcherites, including the former prime minister pher A.N. Wilson wrote in the New York Times on Nov. 25 herself, oppose the queen because of what they see as her that "no one can doubt that [Princess Di's BBC interview] dismal failure to preserve the global role of Britain, particu­ was a skillfully organized attack on the institution of the larly her failure to preserve the vital Anglo-American "spe­ monarchy itself. Not just on Prince Charles. Not just on the cial relationship." The Rothschild banking interests, which queen, whom Diana obviously hates. But on the monarchy." have for a century served as the financial backbone of the Wilson proceeded to deliver about the closest thing to a Windsor Dynasty, are now hedging their bets against the direct threat to the Princess of Wales: monarchy in the interest of assuring their survival. "The war is not about individuals. It is about the oldest British Prime Minister John Major has steered the current and most durable constitutional monarchy in the world. The Tory apparatus into the camp that favors preserving the mon­ example of Wallis Simpson and Edward VIII should be archy via "reform." It was Major who orchestrated the Wind­ enough to tell Diana that when it comes to fighting a war, the sors' decision to "voluntarily" pay taxes. And, while one Establishment can get very nasty, indeed, and that for all her faction of the Labour Party, associated with its present chair­ undoubted popularity, if she continues to rock the boat in this man, Tony Blair, is also out to preserve the monarchy way, the Establishment will simply get rid of her." through reform-possibly including the drawing up of a writ­ Nicholas Soames, the Tory deputy defense minister and ten constitution significantly reducing the power of the mon­ grandson of Winston Churchill who is a close pal of Prince archy-another Labour faction is pushing for the total elimi­ Charles, publicly denounced Lady Di as a "paranoid." nation of the monarchy and the full integration of Britain into the united Europe of the Maastricht Treaty . Two tracks While this British political intrigue is of slightly more First and foremost, the assault on the House of Windsor political significance than the bed-hopping antics of Charles is part of the ongoing war between Washington and London, and Di, the real underlying issue, which has been since President Clinton made it clear that he was no longer LaRouche's point of emphasis for years, is whether this dy­ interested in the "special relationship" that has dominated ing oligarchical system is going to pass benignly from the Anglo-American affairssince the death of President Franklin earth or take down much of humanity with it in the onrush of D. Roosevelt in 1945 . a New Dark Age.

December 1995 International 45 EIR 8, Euromed in Barcelona: noble ends, but can 'free trade' attain them? by Muriel Mirak-Weissbach

No one could object to the exalted principles proclaimed at East based on the relevant United Nations Security Council the first conference of the Euro-Mediterranean Association, resolutions and principles mentioned in the letter of invitation in Barcelona on Nov. 1995 . The final document approved to the Madrid Middle East Peace Conference, including the 28, unanimously by the 27 foreign ministers who had traveled to principle land for peace, with all that this implies." The the Catalan capital from their countries in the European Union document added that the participants would undertake to (EU) , North Africa, and the Middle East, was full oflaudable "respect the equal rights of peoples and their right to self­ sentiments, regarding the three "pillars," as Spanish Foreign determination, acting at all times in conformity with the pur­ Minister Solana put it, on which the new grouping around poses and principles of the Charter of the United Nations and Mare Nostrum is to be erected: the political, the economic, with the relevant norms of international law , including those and the cultural. The vision is one of democracy, fruitful ex­ relating to territorial integrity of States, as reflectedin agree­ change of ideas, and cooperation for mutual economic devel­ ments between relevant parties." These two points acknowl­ opment. But whether the means definedby the conference are edged Syrian demands for withdrawal . A further clause es­ appropriate to reach the noble aims, is another question. tablished the need to "settle their disputes by peaceful means The issues of greatest importance discussed in the confer­ ... [and] renounce recourse to the threat or use of force ence dealt with the Middle East political situation, and the against the territorial integrity of another participant, includ­ economic perspectives for Mediterranean integration. ing the acquisition ofterritory by force ." The formulation fell Compared to the international Middle East-North Africa short of what Al Sharaa had wanted, i. e. , that the declaration (MENA) conference held in Amman, Jordan at the end of distinguish between "terrorism" and the "right to struggle October, which brought together the protagonists of the Mid­ against foreign occupation." east peace process under U.S. and Russian cosponsorship, Egypt, among other Arab states, had put pressure on the Barcelona conference did not take Arab-Israeli relations Israel to agree to the Nuclear Non-Proliferation Treaty as its central concern. Yet, several aspects of the conference (NPT). Israel demanded that any reference to nuclear weap­ had direct bearing on current and future developments there. ons non-proliferation also include reference to Iran and Iraq. In the opening plenary session, talks between the Israeli and A compromise was reached here, too, by committing the Syrian governments began, in a manner of speaking. Israeli parties to "promote regional security by acting, inter alia. in Foreign Minister Ehud Barak issued a direct offer to his favor of nuclear, chemical, and biological non-proliferation Syrian counterpart, to enter negotiations which would lead through adherence to and compliance with a combination to a peace treaty. Syrian Foreign Minister Al Sharaa ac­ of international and regional non-proliferation regimes, and knowledged the offer, by reiterating the demands of Damas­ arms control and disarmament agreements such as NPT, cus for a treaty: withdrawal of Israeli forces from the occu­ CWC, BWC, CTBT ...et c." Israel's demand was not met pied Golan Heights and southern Lebanon. Whether or not directly, but generically: "the parties shall pursue a mutually the two also had direct talks behind the scenes, was not made and effectively verifiable Middle East Zone free of weapons public , but the remaining points of conflictbecame the stuff of mass destruction, nuclear, chemical and biological, and of lengthy haggling around the formulation of the finaldocu­ their delivery systems. Furthermore, the parties will consider ment. Israeli delegates privately expressed their irritation, practical steps to prevent the proliferation . . . etc." that the Syrians would to transform this meeting into a The other significant intervention related to the Middle "try forum for their demands. " East situation came from Palestinian National Authority In the end, careful wording was chosen to satisfy both President Yasser Arafat, who reiterated the need to continue sides. "The participants support the realization of a just, the peace process in the context of the "land for peace" formu­ comprehensive and lasting peace settlement in the Middle la of Madrid, as well as the U.N. Resolutions 242 and 338.

46 International December 1995 EIR 8, Arafat renewed his call for the establishment of a Palestinian negative social consequences which may result from this State with Jerusalem as its capital, and regretted the U.S. adjustment, by promoting programs for the benefit of the Congress's resolution to move the American embassy to Je­ neediest populations." They also claim to facilitate "the pro­ rusalem from Tel Aviv. At the same time, the Palestine Liber­ motion of mechanisms to foster transfers of technology." ation Organization chairman exalted the value of the "birth­ place of Christ, Bethlehem," and said, "this city, like other Spanish farmers are better economists Palestinian cities, has suffered the decay of intentional sabo­ The most eloquent resistance to the free-trade area was tage, the Palestinian National Authority considers one of its voiced by Spanish farmers , who traveled from several cities priorities, together with the sacred city of Jerusalem." Refer­ to Barcelona, to demonstrate. The demonstrators, about ring to "one of the greatest events in the history of mankind," 20,000, who tried to bring their protest to the Hotel Juan which we are to live in four years, "the second millennium of Carlos I, where the diplomats were holed up, were held back the birth of our Lord Jesus Christ, peace be upon Him," Arafat by tear gas. Those gathering to protest included farmers orga­ hinted at a special status for the city. "In this occasion" of nized in the Coordination of Farmers and Cattlemen (COAG) the millennium, Arafat called for "participating in this great, and the Agrarian Association of Young Farmers (ASAJA). worldwide, religious and historic event, and making of Beth­ Their protest focussed on the EU policy and proposed lehem and Jerusalem the center of illumination of peace and free-trade zone, which will allow cheap food imports from cohabitation of all the believers throughout the world, and the Maghreb countries into Spain, thus wiping out Spanish especially in the land of Palestine, center of the three divine farmers. Among their demands was that the EU give subsid­ religions, Judaism, Christianity, and Islam." ies for tomatoes, fruit, and citrus products during the "ratio­ nalization" phase. The demonstrators referred to "social Real problem, false solution dumping," to the fact that the multinational food companies Although important, the Middle East peace process was buy up land cheap in the North African producer countries, not the absolute center of the Barcelona gathering. The key pay their farm laborers dirt cheap wages (ten times less than issue was economics, or better, how economic cooperation a European farmer earns), and undercut European prices. can help stem the tide of immigration from North Africa into Spanish landowners also demonstrated, separately, but for Europe and of "political Islam ," which were identified de the same reason. Also significantly, the farm union leaders facto as the twin evils to be confronted. What the EU put forward as its panacea is an "economic and financial partner­ ship" through the establishment of a free-trade zone covering the 27 countries represented. 'The free-trade area will be established through the new Euro-Mediterranean Agree­ ments and free-trade agreements between partners of the Eu­ LaRouche ropean Union. The parties have set 20 10 as the target date for the gradual establishment of this area which will cover most trade with due observance of the obligations resulting" Campaign from the World Trade Organization. The free-trade zone means that "tariff and non-tariff barriers to trade in manufac­ Is On the tured products will be progressively eliminated in accordance with timetables to be negotiated ." The free-trade area will Internet! be facilitated through "the adjustment and modernization of economic and social structures, giving priority to the promo- Lyndon LaRouche's Democratic presidential pri­

_ tion and development of the private sector." They will create mary campaign has established a World Wide an "environment conducive to investment" by eliminating Web site on the Internet. The "home pagel! brings obstacles to investment, etc. you recent policy statements by the candidate as Although the free-trade agenda had the day in Barcelona, well as a brief biographical resume. there was considerable resistance to wholesale takeovers of their economies by many participants. This is evident in 1i.lom" the LaRouche page on the Internet: several clauses in the declaration particularly regarding agri­ culture: E.g., the elimination of tariffs will proceed "as far http://www.clark.netllarouche/welcome.html as the various agricultural policies allow"; the introduction 1i.l3m" the campaign by electronic mail: of market economy will proceed "taking into account their respective needs and levels of development"; the private sec­ [email protected] tor will be privileged, but there is also reference to the "up­ Paid for by Committee to Reverse the Accelerating Global Economic grading of the productive sector." Finally, it is explicitly and Strategic Crisis: A LaRouche Exploratory Committee. said, that the participants "likewise endeavor to mitigate the

December 8, 1995 International 47 EIR who spoke at the demonstration, voiced their solidarity with the farm laborers of the Maghreb countries: Josep Riera of the COAG was quoted in EI Pais Nov. 30 saying "The free­ trade zone will encourage cheap exports from Morocco and Algeria, without strengthening the agriculture of these coun­ Mghansis draw blood tries. " Under pressure of the farmers , the Spanish Secretary of in war against Pakistan State for Relations with the EU, Carlos Westendorp, met by Susan Maitra and Ramtanu Maitra with union representatives, and agreed that Madrid would introduce graduality in the free-trade zone, guaranteeing preferential treatment for Spanish fruits and vegetables. The blowing up of the Egyptian Embassy in Islamabad on The farmers showed a better understanding of economics Nov. 19, the selected assassination of key individuals in than any of the experts of foreign ministers present. Farmers Baluchistan and Sindh, and the continuing bloodshed in Kar­ know that following free-market ideas of cheap labor and achi indicate that the viper's eggs of the afghansi (veterans of cheap produce only undermines the economic health of a the Afghanistan war), nourished from abroad and protected nation. Just how far such free-trade madness has become zealously inside Pakistan, have now hatched and are spitting official policy, even in nations with highly dirigistic econom­ their venom at their protector. In a retaliatory measure, Prime ic traditions, can be seen in the case of French Foreign Minis­ Minister Benazir Bhutto rounded up a number of foreign ter Herve de Charette . In answer to a question from EIR , nationals and arrested Anjuman-e-Sipah-i-Sahaba (ASS) on whether such a free-trade recipe would not yield similar leader Zia Rehman Farooqi, along with a number of his disastrous results in the Mediterranean, as it has since its associates. Farooqi, an infamous assassin, was in London in introduction in eastern Europe and Russia, de Charette re­ 1995 on a month-long trip to recruit for his terrorist Sunni plied that "history shows that no economy can be developed sectarian group (see EIR , Oct. 13, p. 59). through Statism" (State dirigistic policy). Acknowledging More recently, Bhutto, now under pressure from Egypt that liberalization of markets, prices, and wages will create and moderate Arab States, told the Middle East Broadcasting social dislocation, he persevered: "Every change involves Corp. in an interview that the terrorist groups threatening painful side-effects." Thus, he concluded, the wise men of Muslim countries were getting arms and active support from the EU had decided to allocate funds for alleviating the social­ the West. The statement is nominally correct as far as it goes, ly negative side effects. but Bhutto, whose image inside Pakistan has been badly The best way to sum up the significance of Barcelona, is tarnished, evaded the truth for the umpteenth time in not to look out the window, as it were, of the Hotel King Juan naming London's role behind the terrorist activities now de­ Carlos I, and catch a glimpse of reality: beyond the tens of stroying Pakistan. Instead, she reiterated the West's funding thousands of Spanish farmers in protest, to see the hundredsof of the Afghans during the Cold War days. thousands , if not millions, of French civil servants, transport Meanwhile, the afghansis, the Mohajirs, and the sectari­ workers , students, marching through the streets and paralyz­ an religious groups have dramatically raised the stakes: ing the nation's activity; and beyond, to the starving masses • On Oct. 10, the secessionist Jiye Sindh movement of formerly productive workers in Russia, Ukraine, Poland, leader Syed Imdad Mohammad Shah, son of the late G.M. Georgia. A glance a bit further reveals the record heights Syed who had led the movement for "Sindhudesh" for de­ reached on the Wall Street stock market, and the lines going cades, sent an ultimatum from London that unless Islamabad off the charts that describe the cancerous growth in financial changes its "repressive policies," it could lead to the creation aggregates of the system. The illustrious ministers at Barcelo­ of a Sindh nation. Syed Imdad was addressing the World na stood aloof from all this all-too-unpleasant reality. Sindhi Congress in London. There was one rude intrusion into the fantasy world that • Mohajir leader AltafHussain, whose ethnic group Mo­ reigned in Barcelona. A special round-up issue of the English hajir Qaum Movement (MQM) (see EIR , Oct. 13, p. 59) is edition of the Jordanian financial daily Al Aswaq, dedicated involved in terrorist activities in Karachi and some other to the recently completed Amman summit, was distributed cities of Sindh in Pakistan, has written to a former Pakistan free to the delegates and press. In it appeared the interview prime minister, Mian Nawaz Sharif, to join hands with him with Lyndon LaRouche, on development policies for the in the "struggle" against Islamabad. Altaf Hussain has been Middle East, including his proposals for a regional develop­ based in London for the last four years. In October, he for­ ment bank (for the full interview, see EIR , Nov. 17, 1995 , mally asked U.N. Secretary General Boutros Boutros-Ghali p. 47). LaRouche not only outlined his proposals for real to mediate between Islamabad and the MQM. peace through physical economic development, but also de­ • On Nov. 22, a provincial minister of Baluchistan and nounced the impending collapse of the existing financial and the election commissioner belonging to the same province monetary order. were ambushed by unknown assailants.

48 International December 8, 1995 ElK • On Nov. 21, Pakistani forces had to be deployed in tions which finance the university. In addition, on Nov. 27, Baluchistan as the situation became highly unstable fo llow­ a special anti-terrorist court issued death sentences to 13 ing the assassination of Naseer-ur-Rehman Kalpar, grandson Sunni ASS activists for the massacre of 27 Shia Muslims at of the Baluch tribal chief Wadera Khan Muhammad Kalpar. a Shia place of worship in Karachi earlier this year. Kalpar was gunned down near Pakistan's most important It is expected that more clamping down on the terrorists natural gas field near the Sui installations. will be ordered by Islamabad, particularly to appease those • The brother of the provincial chief minister of Sindh Arab nations which are complaining against Pakistan's har­ was gunned down in Karachi in early November, while wait­ boring of hard-core terrorists. These terrorists are now in­ ing in his car at a trafficsignal . volved in efforts to bring down the "moderate" governments In addition, a spate of bad news from Karachi indicates ofIslamic nations. The United States and the Philippines have that violence in the port city is fast becoming the norm. On also asked Pakistan to curb terrorist afghansi activities. average, four to five peopleare killed every day, and the situa­ Despite such requests and the "best ofintentions" in Islam­ tion is widely considered to be beyond Islamabad's control. abad, it is almost certain that the afghansi network will contin­ ue to push Pakistan toward disintegration. The afghansi net­ Belated and weak response work, which plays a key role in shaping Islamabad's policy The blowing up of the Egyptian Embassy has put enor­ toward Afghanistan and the Indian-held part of Kashmir, has mous pressure on Prime Minister Bhutto. Her stated commit­ infiltrated, directly or indirectly, every part of Pakistan ' s soci­ ment to keep Pakistan a modem and non-fundamentalist na­ o-political system. Its financial strength, due to its control tion is being called into question. Islamabad has rounded over the drug trade, its firepower, and its massive international up hundreds of foreign nationals, including three Egyptians reach have helped the afghansis to corrupt Pakistani society suspected of involvement in the bomb blast. Interior Minister at every level. On the other hand, the time has come for Islam­ Gen. Naseerullah Babar has issued a statement calling the abad to reassess its economic and strategicinter ests. IfBhutto International Islamic University, where the suspect Egyp­ is given the power to do so by the powerbrokers who control tians were reportedly enrolled as students, "a hotbed of ter­ Pakistan from within and without, then, and only then, can rorism"-a statement which has greatly upset the Arab na- the menace of the afghansis be eliminated.

government. Some of the names include: Cairo reveals names of • Mohammad Shawqi al Islambuli, brother of the terrorists in Pakistan assassin of Egyptian President Anwar Sadat. Islambuli, a top leader of the anti-Mubarak terrorist gang of the Gamaa Islamiyya, was condemned to death in absentia by Egyp­ The issue of Egyptian terrorists residing in Pakistan as tian authorities in the 1993 trial of the "Afghan veterans" part of the afghansi terrorist network has come to the accused of seeking to topple the Mubarak government. fore once again following the blowing up of the Egyptian • Osman al Samman, another top Gamaa officialwho Embassy in Islamabad on Nov. 19. But in fact, Cairo has lives in Peshawar, North West Frontier Province, along long been pressing the Bhutto government to hand over with Islambuli. Samman fled Cairo prisons and came to these terrorists to Egyptian authorities. However, the Pakistan through Libya and Saudi Arabia. Bhutto administration, under pressure from the religious­ • Mohammad Mekkawi, head of the terrorist Egyp­ political groups and the afghansi controllers within Paki­ tian group Al Jihad. stani intelligence, has declined to meet the requests. • Mustafa Hamza, a former Al Jihad member and In 1994, an Egyptian plane landed at Islamabad airport now a leader in Gamaa. Hamza is suspected of master­ in the dead of night, and unidentifiedPakistani government minding the assassination attempt on President Mubarak officials handed over five Egyptian nationals wanted in last June in Addis Ababa, Ethiopia. Hamza, who came to Cairo for various crimes. This news later caused a problem Pakistan through Yemen, is in Sudan, Egypt charges. for Islamabad. The most vocal backers of the afghansi ter­ • Talaat Fuad Qassem, another Gamaa member, is rorists, the Jamaat e Islami, a religious-political party now in Denmark, where he received political asylum. which enjoys substantial power, protested to the Bhutto Three other terrorist leaders, Ayman Mohamaad al government, and Islamabad denied the whole "story." Zawhari, Yasser Tawfiqal Siri, and Rifai Ahmed Taha, all Now, under the gun, Cairo has made known the identi­ afghansis, have now settled elsewhere and remain active. ty of a number of top Egyptian terrorists residing in Paki­ Zawhari is in Switzerland, Tawfiq in London, and Taha stan and planning the violent removal of the Mubarak in Khartoum, Sudan, according to Cairo.

December 8, 1995 International 49 EIR tus, and Presidential Decision Directive 42, which goes after Colombia the global dirty-money laundering centers, have tightened the noose around the necks of Samper and his cartel backers. Not only is President Clinton holding the issue ofU.S. "certi­ fication," with its attendant privileges, over the Samper ad­ Samper must go, fo r ministration's head, but he is simultaneously attempting to choke off the lifeblood of the drug trade which has corrupted democracy to survive governments such as Samper's, and the world monetary sys­ ternas well. The vise in which Samper and his cartel allies now find by AndreaOli vieri themselves has produced new levels of desperation on their part. On Nov. 21, cartel hit men assassinated Ernesto Vas­ Colombia's Council of State, its highest judicial body, decid­ quez, an executive of the Colgate-Palmolive subsidiary in ed on Nov. 28 to extend the mandate of Prosecutor General the city of Cali, in gangland style in broad daylight. Colgate­ Alfonso Valdivieso Sarmiento for another three years. The Palmolive is one of several American companies in Colombia decision, taken on a 12-10 vote and under intense pressure which have cancelled their contracts with the cartel front­ from the Clinton administration in the United States, repre­ companies named in Clinton's executive order, including the sents a blow to President Ernesto Samper Pizano and to the drugstore chain La Rebaja, owned by the cartel's imprisoned criminal networks of the Cali cocaine cartel, which today kingpins Gilberto and Miguel Rodriguez Orejuela. La Rebaja constitute his most important base of support in the country . is feeling the pinch: The chain is drawing few customers to Valdivieso, considered a scrupulously honest man, was its nearly empty shelves, and is barely keeping its doors named to his office in August 1994 to replace the discredited open. Workers at La Rebaja, and at other Rodriguez Orejuela pro-drug Gustavo de Greiff, now Colombia's ambassador to front-companies named by Clinton's order, have been hold­ Mexico. Since then, the task of rooting out drug corruption ing protest marches in Cali, accusing Clinton of being "impe­ has inexorably led Valdivieso directly to Samper's doorstep, rialist" and causing unemployment in Colombia. and has turned the Prosecutor General into Colombia's best One day after Vasquez was assassinated, other Colgate­ hope for finally breaking Dope , Inc . 's stranglehold on the Palmolive executives reportedly began to receive threats that country. if their company maintained the commercial blockade against Desperate efforts by the Cali Cartel and its minions inside cartel businesses, they would get it "like Vasquez." Colgate­ the government to force Valdivieso out of office by early Palmolive has reportedlybegun to send its executives abroad, 1996, failed, and their fury was registered by Samper's de­ and has taken special security measures for those remaining fense lawyer Antonio Cancino, who claimed that Valdi­ behind. vieso's ratificationwas entirely the result of pressure by the Samper and the cartel are also targettingjournalists, both Clinton administration and the U.S. Drug Enforcement Ad­ foreign and Colombian. According to a recent article in the ministration. Cancino sneeringly dubbed the highly popular magazine Cambio 16, the 60 foreign journalistsin the coun­ Valdivieso "a spectacle," and threatened that efforts to oust are convinced that their telephones are tapped. They fur­ try him would continue. "After Samper is exonerated by the [Co­ ther complain that Samper has created his own task force, lombian] House of Representatives, what will follow is a po­ allegedly to "improve Colombia's image abroad," which ha­ litical trial . . . to identify those responsible for handing our rasses foreign journalists with daily phone calls and faxes, justice system over to the United States," Cancino promised. and which smears journalists as "DEA," agents of the U.S. The threats notwithstanding, Valdi vieso will now be dog­ Drug Enforcement Administration, when their coverage does ging Samper's footsteps, and those of his cartel buddies, not meet with Samper's-and the cartel' s-approval. through 1998, when Samper-if he lasts that long-is slated The "DEN' smear has particularly threatening implica­ to leave office. tions, in view of Interior Minister Horacio Serpa Uribe's The narco-Presidency of Samper is now fighting for its ferocious attack last October on that U . S. agency, and on the life, and that apparatus is using every imaginable form of Clinton administration itself, for having allegedly authored Gestapo-tactics against its opposition, ranging from harass­ an assassination attempt against President Samper's personal ment to assassinations, including two new death threats lawyer, as part of a campaign to overthrow the Colombian against EIR ' s Colombia correspondents. President. Serpa Uribe, an intimate-and some say control­ ler-of the President, has been described as close to the Desperate straits narco-terrorist National Liberation Army (ELN) guerrillas. President Clinton's Executive Order 12978, issued Oct. He was also just chosen by Samper to head a new nationwide 22, which declares war on the Cali Cartel's financial appara- intelligence system, with wide-ranging powers.

50 International December 8, 1995 EIR The "DEA" smear was also used in the latest death threats Almario, was attacked by two lumpens, brandishing ma­ delivered to Javier Almario, EIR's correspondent in Bogota, chetes, who tried to rob her (although she hadn't a penny on and to Maximiliano Londono, a collaborator of EIR and pres­ her) , as she was leaving the apartment of EIR collaborator ident of the Ibero-American Solidarity Movement in Bogota. Maximiliano Londono at 5:30 p.m. Elizabeth tried to run, For two decades, EIR has been exposing the networks in­ but was seized by her jacket. A neighborhood guard on his volved in narco-terrorism, and naming the names of the indi­ way to work, got off his bicycle and confronted the thugs, viduals and institutions which have created and protect them. and entered into a fightwit h bricks and stones. The thugs ran Over the last year especially, Almario, Londono, and their offand the guard escorted Mrs. Almario away from the place. families have been subjected to a campaign of almost daily Starting in early December, especially December 1994: telephone harassment, muggings, break-ins to vehicles, on weekends, a campaign of phone calls to the Almario home apartments, and offices, and repeated death threats to Almar­ began, with no one speaking on the oilier end-the kind of io and Londono. The latest, delivered in written form on Nov. calls used by burglars and kidnappers to determine the rou­ 28, states: "DEA SOB You'll have a widow and orphans ." tines of prospective victims. In March and April of 1995, persons began to ask for Javier or Elizabeth Almario; as soon as the Almarios would identify themselves, the caller would hang up. For two weeks in March, the calls were daily, usually occurring just when one or the other Almario would returnhome from work. Unidentifiedpersons broke through the Death threats escalate March 4, 1995: metal door of the Almario residence, in an apartment house with a security guard, wrecking clothes and books, and steal­ vs . EIR in Colombia ing various objects, including a stereo and a child's violin. A group of knife-wielding thugs attacked March 1995: Thefollowing chronoLogy documents the past year' s escalat­ EIR employee Virgilio Rativa, and stole his wedding ring, ing threats against EIR in Colombia, and its employees. the only object of value in his possession. • Unidentified persons broke into the van belonging to EIR of Colombia booked a room in the EIR , and usually driven by Maximiliano Londono. The indi­ Nov. 2, 1994: Bogota Royal Hotel for a Nov. 3 conference by Ibero­ viduals apparently tried, but unsuccessfully, to hot-wire the America Editor Dennis Small, on "The Coming Fall of the vehicle. The "thieves" stole various tools and damaged its House of Windsor; How Colombia Became a British Colo­ electrical system. ny." On Nov. 2, the hotel manager called EIR's office to • Unidentified persons broke into the trunk of Javier report that important British investors, owners of the hotel, Almario's Renault, stealing his spare tire. had ordered the cancellation of the conference, which they • The National Electoral Council verbally communicat­ considered an insult to Great Britain. The executive said that ed with EIR that it had decided to cancel the legal status of if he allowed the conference to proceed, he would lose his the lbero-American Solidarity Movement (MSIA), ostensi­ job. However, he promised to find EIR a room in another bly because the MSIA had not won 5,000 votes in the last hotel, given that EIR had been long-standing clients. The election. Later, officialnotice was delivered. conference was eventually held in the Bogota Plaza, located Unidentifiedpersons tried to break into April 16, 1995: some 10 blocks away. the EIR offices. The alarm was set off, frightening off the A letter arrived at the EIR office, ad­ intruders before they could steal anything. The alarm simul­ Nov. 17, 1994: dressed to Javier Almario, and signed "A British Friend." taneously alerted the police, and Almario and Rativa's The letter threatened EIR for attacking Queen Elizabeth and homes. Almario arrived in precisely 10 minutes, and entered "the august Prince Philip," and criticized the theme of the with two police agents; nothing was stolen and there was conference on the "Fall of the House of Windsor." Particular­ apparently no entry. ly distressing for this "friend" was the second half of the Patricia de Londono, wife of Maximil­ April 23, 1995: conference title, referring to Colombia as a British colony. iano Londono, received a phone call at their apartment at The letter expressed an interest in talking with Almario, if 1:30 a.m.; a man's voice said: "Tell Maximiliano Londono the latter were "seriously" interested in learningabout British Penilla to be careful, because we're going to make mince­ culture and in leaving that "extremist" U.S. organization to meat out of him." which he belonged. The British "friend" offeredthe newspa­ 28, Javier Almario answered a call to the April 1995: per El Tiempo to serve as an "impartial" liaison for contacting EIR office at 7:45 p.m.: "Son of a bitch, we're going to f­ him. you." Almario's wife, Elizabeth Vasquez de Patricia de Londono received another November 1994: May 1, 1995:

December 8, 1995 International 51 EIR call, in which the voice-which appeared to be tape-record­ ANUC, or her links to the MSIA. ed-said repeatedly, "be careful, be careful, be careful. .." • At 2 a.m., nearly simultaneous "heavy-breather" calls until she hung up. were made to the apartments of Londono and Almario. The third threat in less than a month was The Cali section of the Administrative June 27, 1995: Sept. 15, 1995: phoned at 8: 15 p.m. to the home of Maximiliano Londono. Security Police (DAS) called the EIR office in Bogota to A male voice asked, "Is this the home of Maximiliano Lon­ inquire about the threats to Almario and Londono. The DAS dono?" When told it was, the caller said: "Tell him to shut agent asked if EIR had officesin Cali. When he learnedit did his trap . Or doesn't he want to think about his wife and kids?" not (it had been closed 18 months earlier), he said he would One week earlier, by mail, Londono had received a death write a report to send to Bogota, which would be the investi­ notice, or obituary , in his name. gating office. This is the first time a State security agency Au . At 9:50 a.m., Almario received a call g 3, 1995: showed any interest in the ongoing threats. from a man with a marked Cali accent: "You are going to pay • On the Sept. 15, a caller to the the EIR office simply for writing such garbage." whistled into the phone. A second call, at 1 a.m. on Sept. 16 Au . Almario received a call at 3:55 p.m., in to Londono's home was a "heavy-breather" call. g 4, 1995: which a woman's voice whispered, "Be careful, jerk!" An individual with an American accent Sept. 25, 1995: Au . Londono received another call at 7 p.m., called the EIR office, asked for Londono, and asked to know g 26, 1995: in which he could only hear dance music in the background. what EIR stood for. Told it was Executive Intelligence Re­ Londono hung up, and immediately received another call. view, a magazine founded by Lyndon LaRouche, the individ­ This time , with the same music in the background, a woman's ual burst into laughter and then said, "Ah, LaRouche, son of voice was heard: "Fool!" a bitch." Au . Telephone call at 6:45 a.m. to Almario "Heavy-breather" call came into Lon­ g 28, 1995: Sept. 26, 1995: home. A man's voice said: "You won't make it past this dono's apartment at 7 p.m. week." A male caller to Londono's apartment Sept. 28, 1995: Au . The conservative daily El Nuevo Siglo, at 6 p.m. said, "son of a bitch," and hung up. g 30, 1995: run by Alvaro Gomez Hurtado, published an EFE wire, date­ Bogota police discovered a bomb one Oct. 9, 1995: lined Washington, reporting on the death threats against block from EIR's offices, and the entire area was cordoned Almario and Londono, who are identified, respectively, as off from 7-8:45 a.m., while the bomb squad successfully correspondent and collaborator of EIR , "financed by the ul­ deactivated it. The bomb was composed of 10 kilograms of trarightist group led by Lyndon LaRouche ." the explosive pentrite and a lot of shrapnel designed to cause Au . Caracol FM Radio, on its program Viva maximum fatalities. The bomb was to be detonated by remote g 31, 1995: FM , broadcast a brief live interview with Almario at 9 a.m. control and supposedly targetted a police bus carrying 25 Before the interview, the newscaster read parts ofthe Aug. 30 agents that was to have passed at 9:30 a.m. Although the EFE wire which said that EIR was founded by "ultrarightist bomb would not likely have reached EIR's offices, it could Lyndon LaRouche." Caracol FM Radio asked: What kind of have injured or killed an employee passing through the area. threats have you been receiving? What have you been writing Gilberto Mora Mesa, manager and owner Oct. 12, 1995: that has caused them to threaten you? Afterthe interview with of the company Miami Spy Representaciones Ltd., with Almario, his apartment received 15 silent, "heavy-breather" which EIR of Colombia had a verbal agreement to install calls. telephone call tracing equipment at its offices, was arrested Phone call at 10 p.m. to the Londono by the National Police on charges of illicit enrichment. He Sept. 5, 1995: home, answered by Patricia Londono. A woman said: was named as the Cali Cartel's chief of telephone intercep­ "Fools, don't you realize we're following you?" tion. It was Mora who had tapped the phones of the U.S. • Strangely, a shipment of EIR's Spanish-language bi­ Embassy in Colombia and produced the tapes used by M-19 monthly Resumen Ejecutivo carrying the special report on congressman Carlos Lucio to try to prove a U.S. Drug En­ Ernesto Samper Pizano and the drug trade, "disappeared" at forcement Agency (DEA) conspiracy to overthrow Samper. the Bogota airport. A vianca airline owned by the Santo­ Although the deal between EIR and Miami Spy was never domingo financial group which supports Samper, claimed concretized, Mora Mesa was given information about EIR's the shipment never arrived in Colombia. phone lines, as well as those of Londono and Almario. Jeny Valencia, supporter and lawyer The EIR office alarm went off twice on Sept. 12, 1995: Oct. 16, 1995: for the MSIA who represented the MSIA and its president this holiday, at 10 a.m. and 12:30 p.m., indicating attempts Maximiliano Londono in a suit against the National Electoral at forced entry . Council, received a telephone death threat. Dr. Valencia is Identical written death threats were Nov. 28, 1995: also lawyer for the National Peasant Association (ANUC), slipped under the door at Almario's apartment, addressed to whose president had been assassinated one week earlier. It is him, and at the EIR office, addressed to Londono, reading, not clear if the threat is connected to her representation of "DEA SOB, you'll have a widow and orphans .. .."

52 International December 8, 1995 EIR two defense companies competed fiercely for the project, Raytheon of the United States, and the French company Thomson, to the point that President Bill Clinton intervened personally on behalf of the U.S. company. The Brazilian governmenthad finallysi gned a contract with Raytheon, but the phone-tapping scandal revived efforts by opponents to scrap the project. Narco-terroristsbehind More than internationalcompetition over a business deal is at stake in this contract, however. The entire Amazon BrazilRa ytheonscandal region in South America has become the transshipment cen­ ter of the Western Hemisphere for international drug-traf­ by Silvia Palacios and Lorenzo Carrasco fickers. The vast majority of the Amazon lies in Brazil; with­ out the radar system, Brazil has no means to identify , and A great scandal broke in Brasilia, the capital of Brazil, on stop, the dozens of small (and not-so-small) airplanes which Nov. 20, when the press disclosed the contents of various the traffickers flyin and out of the area daily. private conversations of Ambassador Julio Cesar Gomes dos Thus, it is not surprising to find that Graziano and the Santos, head of protocol at the Presidential palace, Planalto, operatives caught running this latest attempt to scuttle the obtained through wiretaps. A judge, it was reported, had radar project, are high-level activists of the Brazilian branch authorized the Federal Police to tap Gomes dos Santos's of the Sao Paulo Forum, the continental narco-terrorist appa­ home telephone. ratus founded by the Cuban Communist Party-the same Sao At first, the scandal appeared to be simply a case of Paulo Forum which has declared that it will block installation influence-peddling within Planalto by individuals seeking of an equally strategic anti-drug radar planned for Puerto favors for the U.S. defense contractor, Raytheon. Before Rico, by terrorist means if necessary. The Forum's networks, the news broke, President Fernando Henrique Cardoso had and its Puerto Rican anti-radar operation, were documented already requested two resignations, that of his chief of proto­ by EIR in its Nov. 10, 1995 Sp ecial Report, "New Terror col, Gomes dos Santos, and Air Force Minister Brig. Mauro International Targets the Americas." Gandra, the latter because the tapes revealed he had once stayed for three days at the home of Raytheon's representa­ Ousting a military opponent along the way tive in Brazil, with whom he had been a friend for ten years. The resignation of the Air Force minister was considered Those who set up the phone-tapping operation, at the of added benefitto this crowd, because he had served as one highest levels of the government, thought that the scandal of the major obstacles to the policy of reducing the central would remain targetted against the ousted officials and Ray­ institutional role which the Armed Forces have historically theon. But the angry reaction of the Air Force high command, played in Brazil, a policy which President Cardoso has car­ and the military crisis provoked by the forced resignation of ried over into government from his previous leading roleon Air Force Minister Gandra, who had not committed any act of the executive committee of the fanatically anti-militaryInter­ corruption, turned the scandal back against its perpetrators. American Dialogu,e. Investigations began into who had ordered the tapping of Brigadier Gandra had publicly challenged the President's Planalto personnel's telephones. closest advisers, and the international non-governmental or­ It was discovered that the leaks to the press and the circu­ ganizations apparatus, over a series of measures which they lation of the transcripts of Ambassador Gomes dos Santos's had imposed, which, although disguised as seeking respect telephone conversations, had been from top advisers to Fran­ for human rights, sought in reality to punish the Armed cisco Graziano, director of the Agrarian Reform and Coloni­ Forces in revenge for its participation in suppressing the zation Institute (INCRA), who had served until recently as communist terrorism in the 1970s, and ensure it takes no private secretary to President Cardoso. On Nov. 27, Grazia­ action against renewed terrorism today. no was forced to resign, after the Air Force high command, On Sept. 21, for example, Gandra had protested the Pres­ backed up by the Army and Navy, threatened an open rift ident's decision to force the Army attache in London, Col. with the President, unless Graziano was dumped. Armando Avolio Filho, to resign because of accusations by British intelligence's instrument, Amnesty International. Strategic anti-drug project at issue Gandra called Avolio's forced resignation a violation of the The objective of the phone-tapping operation, was to Amnesty Law which had been passed to close the book on block installation of the Amazon Surveillance System the 1970s war against terrorism. Likewise, Gandra protested (SIV AM), a sophisticated network of radars vital to protect a law, drawn up by another intimate of the Presidential circle, the strategic Amazon region. From the moment the Brazilian Secretary General of the Justice Ministry Jose Gregori, which government announced its decision to implement SIVAM , orders the government to pay indemnities to the families of

December 8, 1995 International 53 EIR some 150 "disappeared" activists from the 1970s. Gandra charged that the law would be "the same as the Army making claims on leftist politicians." Dialogue sets Haiti A parallel power structure Discovered in the wake of the scandal, was that Francisco Graziano was part of an entire clandestine network, which trap fo r Clinton included sectors of the Federal Police operating outside the by Carlos Wesley official hierarchy. Formally, the Federal Police are subordi­ nate to the Justice Ministry, yet when the wire-tapping scan­ dal came to light, Justice Minister Nelson Jobim reported The Inter-American Dialogue, the Washington-based bank­ that he knew nothing about the order to tap Ambassador ers' pro-drug legalization lobby that serves as the primary Gomes dos Santos's telephone. On Nov. 23 , Jobim con­ channel of British policy into U.S. policymaking toward firmedto Gazeta Mercantil that Graziano had participated in Ibero-America, unleashed another bloody crisis in Haiti this the operation. past month, when it publicly urged Jean-Bertrand Aristide to One of Graziano's advisers, Federal Police officer Paulo ignore his deal with President Bill Clinton to leave officeon Chelotti, had provided the tapes made by the Federal Police, Feb. 7, and instead hang on to the Presidency for at least which then were brought to the President. Paulo Chelotti, another three years. whose brother, director general of police Vicente Chelotti, Aristide immediately jumped at the opportunity, and un­ had participated in Cardoso's Presidential campaign. leashed a wave of violent demonstrations of his Jacobin Sociologist Graziano belongs to the President's inner cir­ mobs, demanding that he stay on as President. The Clinton cle, and flaunts his personal friendship with the President and administration is insisting that Aristide leave on schedule, his wife, anthropologist Ruth Cardoso. It is to the latter, it is but is nervous that if they push the psychologically unstable said, to whom Graziano owed his appointment as head of Haitian leader too hard, he will give the green light for anoth­ agrarian reform at INCRA-a shocking appointment, given er giant wave of boat people refugees to head for the United Graziano's long-standing role in the liberation theology cir­ States, which would be a political disaster for Clinton in an cles which created the Landless Movement (MST), a Zapati­ election year. sta-like operation run by the Workers Party (PT) which is The crisis exploded just as Clinton was proposing to send currently organizing violent land seizures across Brazil, in 20,000 U.S. troops to Bosnia, as part of the NATO the name of "agrarian reform ." The same Workers Party peacekeeping force to help implement the U.S.-brokered co-founded and runs the Sao Paulo Forum with the Cuban Dayton peace accord, which the British were opposed to. Communist Party today. Thus, Conservative Revolution press hounds in the United Graziano named as his chief of staff at INCRA, Paulo States seized on the "unravelling" of Haiti-where Clinton Loguercio, a leading member of liberation theology's Pasto­ last year foolishly deployed the U. S. military to restore Aris­ ral Land Commission (CPT) out of which the MST was tide to power-to challenge the administration's planned created. When he left the CPT to join Graziano at INCRA, Bosnia operation. Loguercio named as his replacement, Joao Stedile, today one of the principal leaders of the MST. Graziano also Lighting the match named a former PT municipal president as one of INCRA's The signal to ignite Haiti was given in an internationally directors. One of Graziano's chosen gurus in agrarian re­ syndicated column by Peter Hakim, the president of the Inter­ form , is his uncle, Jose Gomes da Silva, an agronomist American Dialogue (lAD), who called on the Clinton admin­ linked to the PT . istration to allow Aristide to extend his mandate. According In light of the network uncovered, political analysts have to the Spanish-language version published in Argentina's taken note of the fact that the trade union of the Federal daily La Nacion in early November, Hakim admitted that Police is formally affiliated with the PT's trade union arm, besides violating the agreement with Clinton that restored the UnifiedWorkers Central. Aristide to the Presidency, it would be a violation of Haiti's Even after the Graziano-Federal Police-PT network was Constitution were Aristide to remain in office. He also recog­ revealed, President FernandoHenrique Cardoso leftGrazia­ nized that Aristide, a defrocked priest, is "an aspiring dictator no in his post, until the Air Force, supported by the Army ready to perpetuate himself in power. " and Navy, threatened, not so quietly, an open fight with the But, Hakim cynically argued, since whoever becomes President, over the fact that he had moved with such alacrity Haiti's next President will be "handpicked" by Aristide any­ when it came to dumping the Air Force minister, but showed way, it would be better for the United States, in the interestof no interest in removing the party caught illegally attempting "transparency," to let Aristide revamp Haiti's Constitution. to torpedo the radar deal . "Regardless of whether he is committed to democracy or not,

54 International December 8, 1995 ElK he continues to be extremely popular, and would win any sons, it was his penchant for "necklacing"-placing a gaso­ elections in a landslide," lied Hakim. Given that Hakim's line-filled, burning tire around the neck of a victim whose alter ego is Richard Feinberg, his predecessor as president of arms have been chopped off-that led Haiti's military to the lAD who is currently in charge of Latin American policy overthrow Aristide in 1991. at the U.S. National Security Council, the article was read On Nov. 24, Aristide personally escalated the chicken inside Haiti as a green light for all hell to break loose. game, when he agreed to submit to his cabinet a resolution, On Nov. 7, unidentified gunmen shot two members of passed by a government-sponsored three-day "National Dia­ the Haitian Parliament linked to Aristide's Lavalas political logue" of reconciliation, held at a luxury hotel, calling for a organization, one of whom, Jean-Hubert Feuille, a former three-year extension of his mandate. bodyguard and relative of Aristide, died. Aristide blamed the The move shook the U . S. administration and forced Clin­ killing on the opposition, and police raided the home of Gen. ton to send some of his top aides, including National Security Prosper Avril, a former President, shot up the place, arrested Adviser Anthony Lake, to convince the defrocked priest that his daughter, and forced Avril to seek diplomatic asylum he had to leave office. with the Colombian ambassador. Aristide acquiesced-for now--on Nov. 29, just two Lavalas mobs in the town of Les Cayes burnedthe homes weeks before Haiti was to hold its Presidential elections, of presumed opponents, and beat to death a man they claimed making those proceedings even more of a sham: The winner belonged to an anti-Aristide paramilitary group. The same is expected to be Aristide' s former prime minister, Rene happened in Cap Haitien, Port-au-Prince, and elsewhere, Preval . Every serious opposition candidate was terrorized causing scores of deaths. In Gonaives, there were reportedly away from participating, or eliminated. This is the secret clashes with U.N. peacekeepers. People in Cite Soleil, a behind Aristide' s much-vaunted popularity. In fact, many of slum in the outskirts of Port-au-Prince, the capital, burned Aristide's better-known former supporters, including former down the local police station and killed two policemen, after Port-au-PrinceMayor Evans Paul and famous popular singer one had accidentally killed a six-year-old. Residents took Emmanuel "Mano" Charlemagne, who is currently mayor of to arming themselves with knives and machetes to protect Port-au-Prince, have broken with him because of his dictato­ themselves from roving gangs armed with machine guns ter­ rial methods. rorizing the area. Everywhere the mobs demanded that Aristide remain in The refugee weapon office, and threatened to kill anyone who filedas a candidate In exchange for withdrawing, Aristide apparently ex­ for the Presidential elections scheduled for Dec. 17. tracted a promise that the U. S. administration will return thousands of documents taken by U. S. troops last year. His am the State' government wants the records in orderto move forward its 'I The violence had markedly intensifiedfollowing the eu­ vengeful persecution of supporters of the former military logy Aristide delivered at the funeral of the slain parliamen­ regime, supposedly for violating "human rights." tarian Feuille, in which he urged the masses to practice vigi­ The big cudgel Aristide wields against Washington, is lante justice, and demanded complete disarmament of the the threat of floodingthe United States with a wave of "boat population. "Do not sit idly by, do not wait; accompany the people." On Nov. 24, forty-seven people died off Haiti's policemen when they are going to enter the homes of the north coast, when their vessel capsized. Three days earlier, people who have heavy weapons, give them information, do the U. S. Coast Guard intercepted 516 Haitians aboard a not be afraid of them. When you do that, tell the policemen coastal freighter about 150 miles off the coast of Florida, and not to go only to the poor neighborhoods, but to go to the another 60 undocumented Haitian immigrants were inter­ neighborhoods where there are big houses and heavy weap­ cepted recently off the Bahamas. ons," he said, according to a transcript of the speech pub­ Haiti's economy is a disaster, made worse by the fact lished by the U.S. government's Foreign Broadcast Informa­ that Aristide signed on with the InternationalMonetary Fund tion Service. "I am the head of State in charge of the safety before he was overthrown. Furthermore, the U.S. adminis­ of each Haitian. I want, I want, I want, and I can. I want and tration is pushing the lAD's disastrous privatization program I can. It is over, it is over, it is over. I want and I can. It is in Haiti. Across the border, in the Dominican Republic, the over," Aristide said. fear is that Haiti's crisis will spill over, leading to a U.N. He openly blackmailed President Clinton: "The month of trusteeship over both countries. December ·1995 must be a month of peace, a month of suc­ Meanwhile, the lAD is exploiting the Haiti situation to cess. So the month of November 1996 can be a success also advance its plot to destroy the Ibero-American armed forces. in the United States, this month must be a month of total and On Nov. 19-26, former Costa Rican President and lAD mem­ complete disarmament. " ber Oscar Arias sponsored a travelling road-show and meet­ The eulogy recalled his earlier speeches praising the ing of Costa Rican , Haitian, and Panamanian lawmakers and "necklace" as "a beautiful instrument." Among other rea- journaliststo "institutionalize demilitarization."

December 8, 1995 International 55 EIR Presidential election in Poland: shock therapy now from the left by Elisabeth Hellenbroich

On Nov. 19, Alexander Kwasniewski, the chairman of the alism-and that in a country with traditional Christian val­ Social Democratic Party in Poland (SDRP) and fraction lead­ ues. It was Kwasniewski who, as Minister for Youth, started er of the mainly left-wing alliance SLD, was elected Presi­ a new culture in Poland, and with that image his Presidential dent of Poland, with 51.4% of the vote . Lech Walesa, the campaign was oriented. President and legendary labor leader, received only 48 .6% The international markets reacted calmly to the election, of the votes in this run-offelection . and within financial circles it is expected that Kwasniewski

The result of the election has internal political conse­ will go on with the IMF/World Bank reform policy, under a quences in Poland, as well as the effect of sending a signal left-liberal camouflage. abroad. Political observers expect the coming elections for the Russian Duma (the lower house of the Russian Parlia­ International reactions ment) to show a considerable loss of votes for the so-called While the Italian press commented that Kwasniewski reformers , and a significant gain for the communists, nation­ would be seen as a person who would try to keep things calm alists, and followers of Gen. Aleksandr Lebed. from the markets' standpoint, the Wall Street Journal wrote, Similar to the situations in Lithuania, Hungary, and Bul­ quoting a Barings Securities Ltd. analyst in London: "Mr. garia, where the former commmunists have also celebrated Kwasniewski will sooner shy away from the idea of trade comebacks, the election in Poland was a "logical" reaction liberalization with the EU [European Union] than was the to the reform policy followed by President Walesa, a policy case under Walesa." A French diplomat commented in the imposed at the beginning of the 1990s by speculator George daily Le Figaro: "The heirs of Lenin are now sleeping under Soros, Harvard "economist" Jeffrey Sachs, and the Interna­ the cover of social liberalism," and Kwasniewski's adviser tional Monetary Fund (IMF). That austerity/free market poli­ for public works, Jacques Seguela (who also advised former cy has caused catastrophic upheavals in the economic and French President Fran�ois Mitterrand), mused that "Mr. social structures of every easternEuropean country where it Kwasniewski is the most capitalistic, liberal, and modernist has been imposed. politician I have ever met in Poland." President-elect Kwasniewski received the most votes And while the Bonn correspondent of Le Figaro wrote from those social classes who were embittered at the govern­ that this election is also a warning to German Chancellor ment's economic policy, protested Walesa's reform policy, Helmut Kohl and must be seen together with the success of and set their hopes on the new President to make changes. the post-communist PRD party in East Berlin, the British These expectations were especially prevalent in the north­ Guardian opined that in the light of the results of economic eastern districts, in Lower Silesia, and in central Poland, shock therapy, no eastern European regime has any choice where, in rural areas, the unemployment rate is as high as but to seek the lesser of two evils: "If the ex-communists 40% . Kwasniewski also got many votes from young voters; would govern with more sensitivity than the Thatcher ideo­ over 1 million of those under 24 are unemployed. logues, all the better." "The economic measures, which The 41-year-old Kwasniewski is a careerist who was a Kwasniewski will take , will disappoint many voters too, but member of the Communist Party (KP), and from 1988 to these measures are as necessary today as yesterday," stated 1989 was Minister for Youth and Sports in the Rakowski the Spanish daily El Pais. government. Since 1990 , he has been chairman of the SDRP; The architect of shock therapy, Harvard economist Jef­ since 1991, a member of the Sejm (the Polish Parliament); frey Sachs, voiced enthusiasm in an interview in the National and since 1993, chairman of the Constitutional Commission Public Radio program Market Place, broadcast on public of the National Congress. Whatever the voters may hope, he radio stations throughout the United States. "After fiveyears stands for the continuation of the neo-liberal reform of the of reform policy Poland's economy is undergoing a boom­ IMF with only minor modifications. they will continue to make market reforms." No investor in From the standpoint of cultural policy, he stands for a Poland need fear, because "Kwasniewski will make a very "paradigm shift" in the direction of "post-modem" left liber- favorable impression in the coming weeks. He knows what

56 International December 8, 1995 EIR the foreign investors are looking for. ...I am cautiously optimistic. Poland has struck out on a dynamic path , and it will go further on this path," Sachs said.

painful 'upswing' A EIR spoke to a London-based figure who has been, over the past several years, a senior adviser to the "reform" group­ ings in various Polish governments, and who now holds a senior advisory post with the Polish Central Bank. This source had been one of the few individuals accompanying global-speculator George Soros to Poland during the mid- 1980s, before the fall of the communist system. He had worked with Soros, to bring "shock therapy" lunatic Jeffrey Sachs into Poland, in the post- 1989 period. In the discussion on Nov. 21, he gave some revealing indications about what "the recovery" (as he called it), has meant for large numbers of Poles. He said that there has been a "very deep shift" from the former concentration in mining and heavy industry , toward "services and consumerism." This individual asserted that "during the recovery, the so­ called heavy industrial sectors-power, electricity, steel­ have remained stagnant or in some cases declined, while those areas of manufacturing most strictly linked to consump­ tion-chemicals, printing, paper production, textiles, even Polish President Lech Walesa (left) was defeated in the recent elections because he embraced the free market policies pushed by food processing-have risen." George Bush (right) and Margaret Thatcher. He noted: "The effect on the population has been very hard. In the last five years, the consumption level, overall, has increased by 20%. But this is, in reality, very unequal . an overwhelming majority as the candidate of the left, in For the top 5%, there has been an increase of 100%, so that Poland a new social ferment against the reform policy will affects the overall average. In other words, a small percent­ break out among broad layers against the government. age has become fabulously wealthy. But significant sectors Prime Minister Gyula Horn'sIMF- ordered austerity poli­ of society, especially in agriculture , show very considerable cy, which led to plummeting of aid for children, massive cuts decreases in consumption over five years , down some 30- in the social safety net, and the lowering of real wages, in the 40% . It is the hostility of this section of the electorate to service of Finance Minister Barkos's line of "ending the Solidarity, which explains, in large part, why Walesa was welfare state," has led to an enormous loss of respect for the defeated. The agricultural labor force is 20% of the overall Horn government. On Nov. 11, some 25,000 employees of labor force, and one-third of all Poles live in the countryside. the health care sector demonstrated in front of the Parliament Also, in the small cities, there is significant unemployment." building in Budapest, who have to get by on a monthly in­ He insisted, however, that "the situation in Russia is come of about $200 . School teachers are also out demonstra­ worse than that in Poland." ting in the tens of thousands, demanding a 25% salary hike. This scenario could certainly repeat itself in Poland, if Like Hungary? there is no real economic policy change. The question that Too late did President Walesa try to distance himself remains open is what role the Solidarity movement is going somewhat from the IMF policies; too late, also, did the Ro­ to play in this. Badly divided, it was the real loser in the man Catholic Church begin to mobilize behind Walesa as election. Some factions, for example parts of the Jacek Kuron an alternative to Kwasniewski, whom Warsaw Archbishop faction and followers of Jan Olszewski, voted in the second Cardinal Jozef Glemp, on the day he cast his vote, called a round for Kwasniewski. The other losers are the center-right "neo-pagan" candidate. camp and the Catholic circles, who relied on anti-communist The election was a protest vote against the dominant rhetoric without any economic program or vision of the fu­ reform policy, but at the same time it involved the real hopes ture. For these circles, the elections could lead to a healthy for a genuine change of many Poles who have been economi­ shock and force them to bring into the debate a financialand cally and socially shunted aside. To the extent that Kwas­ economic policy based on physical economy, which would niewski embarks on a political course like the Social Demo­ include a policy of infrastructural and industrial buildup for crat Gyula Horn, who was elected in Hungary in 1994 with Poland.

EIR December 8, 1995 International 57 International Intelligence

sources point to a possible internal power gained the cooperationof Zairean President Kinnock seeks 'Marshall struggle in the regime. According to these Mobutu Sese Seko. In November, Carter Plan ' approach to East sources, Boutighane was not a hardliner, visited Uganda, Rwanda, and Burundi. At­ and was part of the patriotic nationalist fac­ tending the summit were President Yoweri Neil Kinnock, European Union transport tion in the military. Although not known as Museveni of Uganda-whose National Re­ commissioner and former head of the British one of the leading officers, he was very close sistance Army has supplied the leadership Labour Party, called for Europeans to take to PresidentLiamine Zeroual. of the now-ruling Rwandan Patriotic Front an approach similar to the postwar Marshall Therefore, it could be seen as a warning (RPF) in Rwanda; President Sylvestre Nti­ Plan, to build up the economies of eastern to Zeroual on the question of negotiations bantunganya of Burundi; Rwandan Presi­ Europe so that they could join the EU, the with the opposition. In any case, the report dent Pasteur Bizimungu; Zaire's President that he was killed while "shopping" lacks Mobutu; a special envoy from Tanzanian London Financial Times reported Nov. 28. He was speaking at a private conference credibility, these sources point out, since President Benjamin Mkapa; and Egyptian sponsored by the German Siemens corpora­ senior government officials never do such President Hosni Mubarak. tion in London on Nov. 24. He also spoke errands . Carter's effort was made jointly with against a too-rapid and too-rigid approach former Tanzanian President Julius Nyerere, to applying the Maastricht Treaty criteria for who continues to be the effective head of Tanzania; and Anglican Archbishop Des­ monetary union in westernEurope . China's Qiao Shi visits "I continue to believe that employment, mond Tutu of South Africa. investment, and productivity should be tak­ Indiafo r six days The summit has not raised the hopesof en into account, if not as formal criteria then the Hutu refugees, who are not represented as measurements of real strength," Kinnock Chinese National People's Congress chair­ at the summit. The Rally for the Return of said. While supporting the EU intention to man Qiao Shi made a six-day visit to India Refugees and Democracy in Rwanda offer full membership to 10 central and east­ Nov. 15-20, where he met the President, the (RDR), composed of Rwandan leaders not em European nations, Kinnock opposed the prime minister, and other leaders, the China involved in the bloodletting of summer 1994 current EU economic strategy. Daily and Hintiustan Times bothreport ed. in that nation, has been excluded. The westernnations must, he said, "take In his arrival statement, Qiao Shi em­ an approach to the east that is similar to that phasized the importance Beijing attaches to taken towards the war-ruined economies of developing "good neighbor" relations with India, and his aim to increase high-level Europe in the 1940s and 1950s." He con­ Education minister to get trasted the policies of that period-which contacts between India and China. Qiao de­ included suspension of full currency con­ scribed India and China as two "ancient civi­ the Rabin treatment? vertibility for 1 0-12 years, a combination of lizations," and "our friendly exchanges over protectionism and import promotion, state­ 2000 years have forged profound friendship "AfterYitzhak Rabin, Amnon Rubinstein?" funded reconstruction of basic industries, between the two peoples." He compared the begins Patrice Claude, writing from Jerusa­ and $300 billion in grant aid over four world's two biggest developing countries' lem for the Paris daily Le Montie Nov. 28. years-with the current polices, which in­ similar historical experiences of colonial "Less than a month after the assassination clude a rush to convertibility, a commitment oppression, and said their common task was of the prime minister by a religious agitator to free trade with no demands on industrial to develop their national economies and im­ for 'Greater Israel,' several rabbis of the policy, and total aid, including that only prove the people's livelihood. extreme right, according to Israeli journal­ "committed," of $85 billion since 1989. ists, met Sunday, Nov. 26, at a secret site in Jerusalem, to pronounce a pulsa denora, a Carter holds East Africa 'flagellation by fire,' in literal Aramaic­ that is to say, a mortal malediction, or curse, meeting in Cairo aimed at the minister of education and Algerian general's death culture." may be warning to Zeroual Former U.S. President Jimmy Carter Claude says this "malediction" comes opened a heads-of-state summit of the East from the "Jewish cabbalistic tradition." The A senior Algerian military officer, Gen. African countries Nov. 27 in Cairo, Egypt, same ancient "prayer," a "virtual appeal to Mohammed Boutighane, the commander of with the purpose of finding away to repatri­ murder," had been read out loud, seven the coast guard, was assassinated in the Bir­ ate more than 2 million Rwandan Hutu refu­ times in sequence, at full volume, in front mandries suburb of Algiers on Nov. 28. Al­ gees now in camps in Zaire, Burundi, and of the official residence of Mr. Rabin, by a though press reports attributed the assassi­ Tanzania. group of ten cabbalistic rabbis, dressed in nation to Islamic militants, senior Algerian Carter organized the summit after he had prayer shawls. This was done a little more

58 International December 8, 1995 EIR j, Brild1!J

RUSSIA'S terrorism problem is • mainly coming from Islamic organi­ zations, an unnamed source in Rus­ sia's Federal Security Service was quoted on Russian NTV on Nov. 25 . More than 60 such organizations are than three weeks before the assassination of ing the 250 participants in the day-long con­ accredited in the Russian Federation, Nov . 4. In the terms of the cabbala, the ference , that one year ago, in November he alleged, and many "tourists" who target of the pulsa denora must die within 1994, Gail Billington and Richard Freeman visit Russia from Muslim countries 30 days of the pronouncement. " of the LaRouche movement and EIR had become Islamic preachers once they Rubinstein's "crime"? To have author­ visited the Philippines and warned of the arrive , and set up terror organizations ized archaeological digs, in areas recently danger of an imminent explosion of the de­ and recruit people for training abroad . uncovered by researchers, where the war­ rivatives bubble. A month after their warn­ like Maccabees lived, whom the Greater Is­ ing, the Mexico crisis exploded. Now Kata­ BEQING city police arrested rael fanatics idolize. Also, after the murder pat has invited Dennis Small and Gail • Wei Jingshen, China's most promi­ of Rabin, Rubinstein decided to cut off pub­ Billington back , to speak on the Mexican nent pro-democracy dissident, on lic subsidies to religious schools which pro­ and world financial crisis, on whether the Nov. 21, on the capital charge of try­ mote political extremism. Philippines "is going down Mexico way," ing to overthrow the government. and what can be done about it . Wei, 44, has been held incommunica­ All participants received from the con­ do since April 1, 1994, after he met fe rence organizers a packet containing a with a visiting senior U.S. human Sudan leader slams study of the Philippine economy prepared rights official. Wei was nominated for by a Katapat economist; the text of Small's United States the 1995 Nobel Peace Prize last year. speech and graphs; the Guadalajara Mani­ fe sto of the Mexican National Forum; and Sudanese leader Gen. Omar Al Bashir, in SWISS FARMERS, in a sur­ the Forum's Draft Legislation forNational • remarks attributed to Sudan's official news prise move, blocked distribution cen­ Economic Recovery, submitted to the Mex­ agency SUNA Nov. 23, slammed the Unit­ ters , central bakeries, and meat de­ ican Congress earlier this year. ed States by name as working with other partments of the two big food chains "arrogant, hegemonistic and colonialist in Switzerland, Migros and Coop, in forces" inciting neighboring countries to at­ mid-November. These two compa- tack Sudan. "The United States and its allies Alain Madelin makes . nies control 80% of the food market have succeeded in tempting these countries of the country. The farmers were pro­ against Sudan due to its Islamic orienta­ comeback bid in France testing against the sudden and drastic tion," he said while on a visit to the eastern fall in farm prices. Sudanese town of Gedaref. "These arrogant Alain Madelin, the Mont Pelerin Society countries have lost hope of involvement in operative in France who had to resign as INDIA'S greatest strategic chal­ • a direct attack because of the hard blows minister of economy and finance when his lenge is China, according to the they received in Somalia, so they have taken austerity measures enraged labor this past "highly influentialRAND Corp. stra­ to launching war on Sudan through its August, has published a book, When the tegic analyst" George Talham, neighbors," he added. Ostriches Will Raise Their Heads . The daily quoted in the Hindustan Times Nov . "We hail Kenya, Zaire , Central African Le Figaro on Nov. 23 devoted two-thirds of 19. The U . S. analyst contends that In­ Republic, and other African countries that a page to an interview with Madelin, and dian Prime Minister Narasimha Rao' s have shunned the temptations and resisted one-third of a page to a wildly enthusiastic "look East" policy is driven by the de­ westernpressure , adhering to their indepen­ endorsement of him by neo-conservative sire to reach out to Southeast and East dence and will," he was quoted as saying . ideologue (and occultist) Louis Pauwels. Asia's growing nations, and that se­ Figaro wrote that, in a "symbolic ges­ curity matters will get more important ture," he gave the first copy of the book to as smaller nations worry about the Katapat movement French President Jacques Chirac . Madelin "growing giant" China. recalls that he was sacked in August, from fo unded in Philippines the governmentof Prime Minister Alain Jup­ LOUIS FARRAKHAN is not • pe , for antagonizing the trade unions, but he "even allowed to step foot in Great EIR's lbero-America editor Dennis Small intends, with his book, toremind people that Britain," thanks to the World Jewish was the featured guest speaker at the found­ he was the first toinsist that "reduction of the Congress and its British affiliate, ing conference of "Katapat," a political public deficit" was the highest priority . His brags WJC president Edgar Bronf­ movement of Filipino nationalist business­ speech to this effect, in August, was judged man in a fundraising letter. Bronf­ men and consumer groups , held in Quezon to be "politically incorrect" then, but now , man smears the Nation of Islam lead­ City, Philippines, on Nov. 23 . this theme has "become the leitmotif' of the er as a spreader of "racist, anti­ Katapat coordinator Antonio "Butch" government, since Juppe is now adopting his Semitic demagoguery. " Valdes introduced the presentation by tell- austerity prescription.

December 8, 1995 International 59 EIR �ilillNatio nal

Clinton trip marks death knell of British Empire

by William Jones and Edward Spannaus

It was an unprecedented scene. In all the pomp and circum­ Ireland, the Bush policy, which was well-coordinated with stance that only the halls of Westminster could provide, an Britain's Margaret Thatcher, was moved from war and con­ American President, Bill Clinton, spoke before an assembly flict,toward a policy of peace and reconciliation. More im­ comprising most of the names in Burke's Peerage as well as portant, and a prerequisite to the shifts, Clinton broke the the members of the House of Commons, to outline to them Anglo-American "special relationship"-a fact that was his vision for the post-Cold War world. The ironies of the more widely acknowledged in Britain than in the United situation were manifold. Since taking office, President Clin­ States, where most citizens remain ignorant of Clinton's for­ ton has been consistently attacked and reviled by the moguls eign policy revolution. of the British media such as the London Times's Lord Wil­ This was most evident in the role that President Clinton liam Rees-Mogg and the Sunday Telegraph's Ambrose was taking in relation to the conflict in Northern Ireland. In Evans-Pritchard. The media hype was, however, only a no other geographic area had British imperial policies been backdrop to more serious threats to the President from the more intense. Northern Ireland was, after all, a part of "the same British circles. Isles," and a contested area long before Britain possessed an The President's three-day trip, to England, Northern Ire­ empire. land, and the Irish Republic, is one of the most important Clinton's granting of a visa to Sinn Fein's Gerry Adams events in Clinton's Presidency, and in the history of Anglo­ initiated a process leading to the "ceasefire" in NorthernIre­ American relations. The President's message to Parliament land 15 months ago. Then, administration officials estab­ was simple: The days of the British Empire, are over. But we lished contacts with the other key figures and parties ofNorth­ can still be friends. em Ireland, Ireland, and Britain. Underscoring the point, Clinton's reception in Northern As momentum in the peace process grew, even Britain's Ireland and Ireland was nothing short of phenomenal. His Prime Minister John Major was, with great reluctance, presence electrifiedthe country , with some observers on the brought on board. More recently, however, Major began scene declaring that Clinton's trip surpassed that of John F. demanding that the Sinn Fein begin disarming its members Kennedy's visit in its impact. Everyone knows, despite the before being invited to all-party talks. In the weeks before President's own disclaimers, that he is responsible for bring­ Clinton's trip, the peace talks were at an impasse, with Brit­ ing the possibility of peace to Northern Ireland after 25 years ain being rightly accused from all sides of sabotaging the of troubles. peace process. The Irish government accused the British of "cynical manipulation" of the situation, in trying to blame The Clinton policy the government of Ireland and Sinn Fein for the breakdown. It was clear from the beginning of Clinton 's administra­ In a last-minute breakthrough, Major and Irish Prime Min­ tion that the new American President would change the way ister John Bruton agreed to a "twin-track initiative," which U . S. foreign policy was conducted. In almost all important will transfer the question of the "decommissioning" of armsin respects, U.S. foreign policy was reversed 1800 from the Ireland to an independent commission headed up by Clinton's direction of the Bush years . In Bosnia, the Mideast, and special envoy, former U. S. Sen. George Mitchell. Simultane-

60 National December 8, 1995 EIR ously, the two governments would move toward setting up young and old, waving American flags. Not since Kennedy all-party talks to achieve an overall peace agreement. had aU. S. President received such a greeting in Ireland, and In response to a question from EIR , White House spokes­ never before in Northern Ireland-President Clinton is the man Mike McCurry said that the last-minute agreement was first American President to visit there. "by no means a surprise," because National Security Adviser The President cited William Penn, a native of Derry and Tony Lake had been in extensive contact with all the parties a Protestant who went from soldier to become a peacemaker. over the last few days. Clinton noted that Penn had founded the city of Philadelphia, where Irish Catholics and Protestants could live together in Clinton at Westminster peace. That same harmony must be established now, but in One of the many ironies of the visit to London was the Northern Ireland, he said. fact that the President and Hillary Clinton, together with the The President said the most important divisions were no Queen and Prince Philip, reviewed the First Battalion of the longer racial or religious, but rather the differences between Scot's Guards, part of a regiment that has rotated units in and "peacemakers and the enemies of peace, between those who out of Northern Ireland for the last 25 years . Because of the are in the ship of peace and those who would sink it." President's peace policy, these troops can now spend more On Dec. 1, the Clintons took the city ofDublin by storm. time brushing up on their parade drills, rather than shooting At least 80,000 people turned out to watch the President down innocent people on the streets of Londonderry. light the Christmas tree at City Hall, giving him a hero's Prior to his visit to Buckingham Palace, Clinton ad­ welcome. Waving American flags, the crowd chanted, "We dressed a joint session of Parliament. Under the gaze of King Want Bill"-a cry which has followed him throughout the George III and a panoply of British monarchs, Clinton held Irish leg of the trip. out an olive branch to America's historic enemy. For all of his praise of the "extraordinary relationship" between the The threat United States and the U.K., he made his own independence In London, Clinton's welcome had been mixed. Although from the old "special relationship" clear. most of the British coverage of the Clinton Westminster The speech was rife with ironies. In the heart of the speech was polite, there were a few items that indicated the country which perfected Venetian balance-of-power manipu­ degree of rage among certain unreconstructedEmpire layers. lations, Clinton spoke of bringing together former adversar­ Aside from the Hollinger Daily Telegraph, the most notable ies. In the country whose officialage ncies and private think­ outburst came from the Daily Mail's Simon Heffer, who wrote tanks and universities never cease promoting ethnic and reli­ a "Dear Bill" letter for his column on Nov. 30 entitled, "Please gious conflicts, Clinton denounced "ethnic hatred, extreme Keep Your Opinions on Your Affairs to Yourself." nationalism, and religious fanaticism." In the country now Heffercriticized the President for imagining himself as a being denounced by governments as "the center of world peacemaker. "Yesterday you arrived in England and immedi­ terrorism," Clinton denounced terrorism and "the forces of ately behaved in a way guaranteed to tum the stomachs of disintegration. " most rational Englishmen," Heffer wrote. "In the most pa­ Clinton reminded his audience of the history of U. S.­ tronizing and proprietorial tone, you praised the prime minis­ British relations, recalling the War of 1812 when the British ters of Britain and Ireland for having reached a compromise laid siege to Washington. "Indeed," Clinton commented, on Tuesday night, that would allow a target date to be set for "the White House still bears the bum marks of that earlier talks on the future of Northern Ireland ....The only infer­ stage in our relationship. And now, �henever we have even ence we could draw was that you would have regarded it as the most minor disagreements, I walk out on the Truman an affront, had a compromise not been reached. In fact, to Balcony and I look at those bum marks, just to remind myself put it bluntly, it is none of your damned business. that I dare not let this relationship get out of hand again." "You are used to acting on behalf of a great power that satisfies its need for superiority by going around the world Clinton in Ireland refereeing the affairs of Third World countries," Hefferrant­ Clinton travelled from London to Dublin and Derry ed. "Despite one or two appearances to the contrary, Britain (called Londonderry by the Loyalists). Everywhere he went, is not a Third World country. It is not a colony, or client he was greeted by enthusiastic throngs. In Belfast, Clinton state, of America." told the crowd: "If you build for peace, the U.S. will proudly One London source told EIR on Nov. 30 thatthe Thatcher­ stand with you. Northern Ireland can become a model for Hollinger-Murdoch crowd will be more opposed to Clinton tolerance ." The President made reference to the American than ever, after the current trip. They will dig themselves in Civil War and the need after it to achieve reconciliation and deeper to a hole of their own making, and their anti-American forgiveness. During stops in Belfast at a factory and at an thrust, as personifiedby Evans-Pritchard, will harden. This, industrial park , Clinton stressed the need for peace in order said the source, will increase the security threat to the Presi­ to achieve economic prosperity. dent. "The threat to the life of the President is very real," he In Derry , the town square was jammed with people, warned.

December 8, 1995 National 61 EIR President. ...We only have one President at a time. Presi­ dent Clinton is the commander-in-chief. And when he makes the case, as he started to make tonight, if he makes that Republicans respond complete case, then he should have our support." Dole said that the United States needs "to find a way to to Bosnia accord arm and train the Bosnians, because if they're going to-if we're going to depart there in six months or a year, they've got to be able to defend themselves. And we can't have this by Kathleen and Mel Klenetsky so-called build-down, with the Serbs still, you know, in a stronger position than the Croats and the Muslims combined. " The response from Republican Presidential candidates to the (R-Tex.): The Senate's equivalent of Newt Phil Gramm Bosnian peace accords, and to President Clinton's proposal "Crybaby" Gingrich went on ABC-TV's "This Week with for sending U . S. troops to the region as part of aNA TO peace David Brinkley" on Nov. 26, where he denounced President implementation force, ranged from conditional support to Clinton's work to achieve a Bosnian peaceas "social work," vitriolic opposition. Here's what the leading GOP presiden­ even while acknowledging that wereCongr ess to succeed in tial hopefuls had to say: blocking the deployment ofU.S. troops to Bosnia, this would (R-Kan.): The Senate majority leader gave the disrupt the peace agreement. Bob Dole Clinton administration's Bosnia initiative the most favorable "I don't think [Clinton] has made his case ....Foreign response of any of the Republican candidates. Dole had been policy is not social work," Gramm said. "You don't look in the forefront of Congressional efforts to lift the arms em­ around the world for things you could do to make things bargo on Bosnia, and has been critical of both the Bush and better. I think you have to have some real test for using Clinton administrations for their failure to do so. American military power. . . . "The President took the first step. It was a good state­ "This is an intervention the President has wanted to make. ment," Dole commented, in an interview with CBS News ...1 think it is an unworkable agreement. And I'm not going immediately following the President's Nov. 27 address to to feel better about adding American names to the casualty the nation explaining the Bosnian accords and why it was list. And therefore, I am not in favor of sending American necessary to deploy U.S. soldiers to implement the peace. troops to Bosnia." "We're going to be under the command of an American Asked by George Will what would happen if the United general-that's going to be very helpful. He [Clinton] didn't States, which produced the agreement, which is premised mention the United Nations. But what the President didn't on American peacekeeping, refused to participate, Gramm talk about was the failure to do anything for 30 months while replied: "I don't deny that if we decide not to send troops, if this ethnic cleansing was going on, and the fact that we tried that disrupts this agreement, that there are not costs in­ and tried and tried in a bip�isan way to lift the arms embargo volved-given what the President has done to this point." so the Bosnians could defend themselves. Had we done that Asked what would happen if the war spreads to Greece, ...he wouldn't addressing the American people tonight Gramm said that, "if the war started to spread, that is some­ be about sending 20,000 American troops." thing that we'd have to look at." Dole was reminded by the interviewer that under the The former Tennessee governorand Lamar Alexander: Bush administration "there wasn't much done." Dole: U . S. secretary of education issued a press release on Nov. 27 "That's right. I've said so-it started in the Bush administra­ objecting to the U.S. troop-deployment aspectof the Bosnia tion. President--candidate-Clinton said if he were elected agreement: he would have air strikes and lift the embargo. We talked "I would never have made a commitment to send 20,000 about that at the White House. But, again, I'm just laying the U.S. troops to the former Yugoslavia in the first place. But premise. I think the President made a good statement .. .. now that President Clinton has made that commitment, the "I obviously want to support the President. I talked to the American people deserve to know the answers to at least these President yesterday. He called me from Camp David. I have three questions: 1. Why is the protection of newly created a strong belief in the power of the President, the constitutional borders in the former Yugoslavia a vital national interest of authority the President of the United States has, and must the United States? 2. How will we know the 'peace' put on have. And no doubt about it, whether Congress agrees or paper in Dayton actually exists on the ground before we send not, troops will go to Bosnia. So those are facts. And I think American troops there? 3. How can you assure the American we need to wait and see what the American reaction is. I people you will know when the peacekeeping mission is done told him very honestly-I said, 'Mr. President, if you can't and our troops can come home? persuade the American people, I don't believe you'd be able "The President is our commander-in-chief and he has the to sway the Congress of the United States.' ... right to make his case to the Congress and to the American "We need to find some way to be able to support the people. But he has not yet done that-and he must, before our

62 National December 8, 1995 EIR troops are sent into an open-ended peacekeeping mission." the publisher of Forbes magazine whose Steve Forbes, multimillion-dollar personal fortune is fueling his dark-horse Presidential race, put out a statement on Nov. 22 calling for a Republican mobilization to block the U.S. troop commit­ ment to Bosnia: "While the settlement is applaudable and one hopes last­ Newt's freshmen ing, it would still be a murderous mistake to send American ground forces as peacekeepers. If the settlement is real, such are 'gangsta reps' a presence will not be necessary . "Putting American troops in Bosnia would set the stage by Mark Sonnenblick for another Lebanon or Somalia. Even worse, this debacle may set in motion forces that could destroy NATO and form xenophobic nationalist forces in Russia. It's no secret that, were the next elections to take placetoday , "I call upon Congress and Republican Congressional Newt Gingrich and his band of Republican "revolutionaries" leaders to fightsuch a deployment with every ounce of energy would be swept out of Congress. It's not just the "message" they have. It must be blocked." that has turned off the American public. But increasingly, Buchanan has been the most outspoken the "messengers" are turning out to be very different than Pat Buchanan: opponent of the Clinton administration's Bosnian peace plan. their slick public relations images. He held a press conference in Washington, D.C. on Nov. 27, In fact, some of Gingrich's most devoted Congressional prior to the President's television broadcast, to excoriate the freshmen are turningout to be "sleaze personified." plan: "We're here to talk about the President's plan to intervene A 'Mormon Maggie Thatcher' with 20,000 American troops in Bosnia. In my judgment, Take the case of Rep. Enid Waldholtz (R-Utah), who President Clinton has no authority to do this. These American paraded conservative Mormon virtues to defeat a feminist troops are NATO troops. Bosnia is not covered by NATO. incumbent Democrat in Salt Lake City. During the cam­ No Americans have been attacked in Bosnia. There is no paign, she repeatedly pledged, "I promise to bring Utah val­ vital interest at risk in Bosnia ....I don't know where in ues to Washington, not Washington values to Utah." the Constitution Mr. Clinton gets the authority to wage war Waldholtz came from third place in the election race to against Bosnian Serbs in a country that is not even covered win, thanks to an infusion of$I.8 million in what she claimed by NATO without the authority of the Congress of the United was "personal money." Grilled by the press as to the source States ....I think what is transpiring is an act of folly, and of the mystery money, she reassured the voters in her best it's inviting a tragedy of historic dimensions. . . . Mormon manner, "We were very blessed for our hard work." "Let me talk about the President now. While I disagree They chose to believe her. with the President and while I don't believe he has the author­ Now, the FBI is investigating the myriad of federal elec­ ity without specificcongressional approval to put an Ameri­ tion law violations by her campaign. These include falsified can army into Bosnia, he is leading. The President is taking a campaign reports to hide unlawful contributions, embezzle­ stand. He is articulating a vision about peace and democracy, ment of campaign funds, falsified personal asset reports, utopian though it may be .. ... bounced checks, and misuse of Congressional funds. Hus­ 'The Republican Party should likewise take a stand. I band Joseph Waldholtz has also been subpoenaed as a materi­ think the Republican Party should stand up and say, 'We al witness in an alleged $1.7 million check-kiting scheme. oppose American troops in Bosnia and we should deny the He is negotiating a deal with prosecutors which could include President the authority in the Congress to send those forces helping to convict his wife. The congresswoman claims that into Bosnia.' I think it's time Congress asserted a co-equal all misconduct was hidden from her until recently by "misrep­ role with the President in the shaping of foreign policy." resentations made to me by Joe Waldholtz." (R-Ind.): The second-in-command of Once in Washington, Enid Waldholtz promptly became Richard Lugar the Senate Foreign Relations Committee issued a statement Newt's darling and rose to an influential position in the class through an aide on Nov. 28: of '94. The New York Times reported, "Her fellow freshmen "His [Lugar's] general policy is that, before troops are bow exaggeratedly in her presence." Eighty-five percent of sent, there should be Congressional approval, and it has to the freshmen vote with the Speaker over 90% of the time. be a clear and defined mission. As far as the President's That huge voting bloc has been the source of Gingrich's statement was concerned, he was pleased with it, he thought power. it was positive, but he still would like some more questions Gingrich gave her a seat on the Rules Committee, much to be answered." to the chagrin of many more senior Republicans. She was the

December 8, 1995 National EIR 63 first freshman to be on Rules in 70 years. Under Gingrich, Pittsburgh stealer the Rules Committee has even more power than before. It has Joseph P. Waldholtz, 32 years old and almost 300 frequently replaced bills approved by Republican-dominated pounds, is from Pittsburgh. As a young man, he was under committees with ones which better fit the Gingrich agenda great pressure to be "successful." He was raised Jewish, but for fascist austerity. When Democrats complained about the tells Republican hot-shots that he's an Episcopalian. When Rules Committee preventing full debate on major legislation, Enid got elected, "power-tripper" Joe rented the Georgetown Enid Waldholtz was called out to accuse the Democrats of townhouse in Washington, D.C. once owned by Henry A. "hypocrisy. " Kissinger. They used it for expensive power-parties and other Waldholtz's leading role in the Gingrich kindergarten social activities which might not fitin with "Utah values." was hailed by the British media. The Times of London de­ The Waldholtzes met when she was running for national scribed her as the archetypical member of "the shock troops chairwoman of the Young Republicans in 1991. She was told of the Gingrich army ." It reported she carried the Contract that if she wanted to win, "You have to get to know that with America in her purse "like a Bible" and praised her as fat guy from Pittsburgh." Like Wendy Gramm, Sen. Phil "a self-proclaimed revolutionary with an unshakeable belief Gramm's (R-Tex.) power-hungry wife, Enid overcame her in her cause." The City of London's Economist weekly initial disgust. She was elected chairwoman, and he, trea­ anointed her "the Mormon Maggie Thatcher. " surer. Joe worked on George Bush's Pennsylvania campaign in Who done it? 1988, and, in 1992, he was made exective director of Bush's Enid and Joseph Waldholtz are now locked in a bitter campaign at the request of billionaire Elsie Hillman, George dispute over which one stole the funds which bought her Bush's cousin. In 1991-92, he was employed as her personal seat in the Congress. Enid filed for divorce on Nov. 14, political operative. Hillman is one of two Republican Nation­ charging that Joe was responsible for all the campaign fi­ al Committee members from Pennsylvania, and is the Repub­ nancing shenanigans, and that she knew nothing of them. lican boss of the Pittsburgh area. On Nov. 17, after six days in hiding, Joe turned himself in The high living which Waldholtz employed to give asso­ to federal authorities. He says he can prove that she knew ciates the impression that he was independently wealthy and and approved .of anything illegal he may have done to get "the big man on campus," was financed by his running up her elected. $100,000 in bills on Hillman's account. It took Hillman The whole affair is on its way into becoming an American some years to catch on, because she gave him management version of the Prince Charles-Princess Di soap opera. After control over a portion of her own fortune. Even when she all , didn't the English invent the mechanism of "rotten bor­ firedhim from the Bush campaign in June 1992, she protect­ oughs," by which people could buy their way into Par­ ed him, and possibly herself, by doing it in a most discreet liament? manner. This is not the first time that Representative Waldholtz Waldholtz's first political "coup" came with the 1990 has had her run-ins with campaign law. The Salt Lake City surprise victory of Rick Santorum in a Pittsburgh area Con­ daily Deseret News ran a story on Nov. 28 which details how gressional contest. Waldholtz was one of Santorum's two "she was the architect in 1992 of a situation similar to the campaign "gurus." Santorum was a product ofthe Pittsburgh 1994 problems but on a smaller scale .. ..She filed a finan­ law firm headed by Bush Attorney General Richard cial disclosure form that suggests she may not have had Thornburgh. The firm Kirkpatrick & Lockhart was sued for enough assets to legally provide the money she supplied to its role in setting up the looting of Sharon Steel by reputed her campaign, and her father ended up furnishing the cash Meyer Lansky-mob associate Victor Posner, to the benefitof that paid offcampaign debts." Mellon Bank. The next day, the Salt Lake Tribune reported that her During this period, Joe was also embezzling from his lawyer, Charles Roistacher, acknowledged that her father, own family, according to lawsuits filed by members of the wealthy San Francisco stockbroker D. Forrest Greene, was family. His family exhibits a November 1990 note from Joe the source of much of the mystery $1.8 million which she to his grandmother, Rebecca Levinson, stating that he was claims were her own personal contributions. FBI agents are managing $680,000 of her funds . He also took out a $87,000 checking reports that her father directly wired payment for loan on her house. The family was never able to get Joe to her last-minute TV ads which are credited with winning her give them income from Levinson's funds or even tell him the election. what he was doing with them. They had a subpoena out for Federal election law forbids buying of federal elections. him in mid- 1992 when he suddenly emmigrated to Salt Lake Nobody , except for the candidate, may contribute more than City. Joe listed his mother and father as contributing $1,000 $1,000 to a campaign. That prohibition includes parents and each to his wife's 1994 campaign. His father responded that spouses. Enid Waldholtz learned this in her class on election they made no such contributions; but, he wondered whether law at Brigham Young Law School. Joe had spent their inheritance in the campaign.

64 National December 8, EIR 1995 "That same Constitution, which Gingrich and all mem­ bers of Congress swore to uphold, also affirms in its Pream­ ble, a promise to 'promote the general welfare, and secure the Blessings of Liberty to ourselves and our Posterity.' "The actions of Gingrich and his allies are blatant at­ tempts to destroy that Constitution, first by pushing their Emergency call goes Contract on America, which is an attack on the general wel­ fare they promised to protect and promote, and then by ,trying out to stop Newt to break the Constitutional authority of the institution of the Presidency by means of blackmail. On the heels of the Nov. 15 conference on "Why American "We, the undersigned, welcome the action by President Voters Are Rejecting Gingrich," co-sponsored by EIR and Clinton, to honor his oath of office. We call on our fellow the Schiller Institute, the latter has geared up a campaign to citizens, and those elected officials and organizations that gather support for an emergency call for action against House represent them, to join us in an effort to defeat this assault on Speaker Newt Gingrich's anti-government terror campaign the general welfare of our people and our nation by Gingrich in the U.S. Congress. The Institute is soliciting endorse­ and his Conservative Revolution allies. Further, we dedicate ments, especially from current and former lawmakers and ourselves to a major voter registration drive between now elected officials, for a statement to be published in a major and the elections, to assure that we send representatives to U.S. daily, prior to the Dec . 15 deadline for anew agreement Washington, D.C. who will fulfill the promise of the U.S. on continuing U. S. governmentopera tions. Constitution to promote the general welfare for all the The call reads: people." "The shutdown of the federal government, caused by The campaign is giving a clear focus to a generalized House Speaker Newt Gingrich and his allies, that began on state of disgust with the dangerous antics of Speaker Newt. Nov. 14, is partof an overall back-door effort by these Con­ As of this writing, over half the elected officialswho attended servative Revolutionaries to impose their priorities on the the Washington conference, have signed the statement, rang­ nation. ing from lawmakers in the rural South to mayors in the for­ "Last spring, Gingrich threatened that he would force merly industrialized Midwest heartland. President Clinton and the American people to accept their budget, and their Contract on America, by tagging items Whined and dined of the Republican agenda, for which he had no veto-proof Gingrich himself is clearly feeling the heat. On Nov. 28, majority, onto legislation needed to raise the debt ceiling. As Newt was the featured speaker at a Washington testimonial far back as April, Gingrich boasted about bringing about a dinner for respectable Republican moneybags Max Fisher, a crisis in the fall, by shutting down the government, and push­ onetime member of Moe Dalitz's Detroit "Purple Gang." ing America into default, unless their extremist proposals Before introducing the Speaker, master of ceremonies Mi­ were accepted. chael Medved tried to deflect the increasing association of "As Nov. 13, the day that funding for the continuing Gingrich as a pampered enfant terrible, by complaining that operations of the federal government was to run out, drew Democrats and welfare recipients were turning America into closer, the Gingrichites had made little progress in passing a "crybaby society." Gingrich himself then whined about the their draconian, Contract on America budget proposals, ne­ attacks on him: "I expect the labor unions and the left to run cessitating a 'continuing resolution.' dishonest ads [about his budget-cutting mania] , because they "By tagging such items as an increase in the premiums lie," and went on to compare one newspaper, which had paid on Medicare , as well as cuts in education, and funding criticized his program to cut Medicare, to the Soviet Commu­ for the environment, onto that continuing resolution, they nist Party paper Pravda . thought they could blackmail the President into signing into After the event, pudgy Newt Gingrich socialized in the law measures that were clearly veto-bound if passed as ordi­ hotel lobby with his even pudgier British manager Tony nary budget bills. Blankley. EIR's Anton Chaitkin stepped forward and re­ "The President refused to be blackmailed. He vetoed the quested an autograph, proffering a copy of the New York resolution, defending the U.S. Constitution, which gives the Daily News that had carried a front-page cartoon of "Cry President the power to veto measures not in the public inter­ Baby Newt." A rattled Newt quickly recoiled, but then pasted est, stating: 'The Congress passes bills. The President signs a grim smile on his face, and said, "No! I won't do it. There's or vetoes them. Then, the Congress can either override the a limit to my sense of amusement." Then he grabbed Chait­ veto, which requires the support of two-thirds of the Con­ kin's arm and said, "I'll sign anything you want, anything at gress, or they can work with the President to find a bill that all, but not that." With that, he walked out of the Washington he can sign. That is the wisdom of the Founding Fathers. ' hotel.

December 8, 1995 National 65 EIR organizations, and "WHEREAS the testimony was organized around three panels: the harassment of African-American elected and pub­ lic officials-the FBI's 'Operation Friihmens�hen' ('Early Man '); the conduct of the DOl's Office of Special Investiga­ tions, particularly in the case of John Demjanjuk; and the case Black leaders demand of Lyndon LaRouche, the largest-sca le single case, involving arin DOJ the same DOJ corrupt apparatus that operated in the OSI and he gs on abuse 'Operation Friihmenschen' cases, and "WHEREAS in case after case, decisive evidence of ram­ by Marianna Wertz pant DOJ corruption, prosecutorial misconduct, withholding of exculpatory evidence, and conscious perjury and fraud Calls for congressional oversight hearings into gross miscon­ upon the court, politically motivated and designed to deprive duct by the Department of Justice were issued by the Tennes­ the American · citizen of effective representation, was pre­ see Black Caucus, during its Twenty-firstAnnual Legislative sented, not by the good word of witnesses , but by government Retreat on Nov. 16-19; and by Tom Barnes, mayor of Gary, documents, records, and memoranda, first suppressed and Indiana, at a Nov. 21 joint press conference with Schiller later obtained under the Freedom of Information Act and Institute board member Sheila Jones. In both cases, these other legal actions, African-American leaders were responding to the findings "THEREFORE, Be It Resolved that this body, the 1995 issued by an independent panel of experts following hear­ Annual Legislative Retreat, join this independent panel of ings, facilitated by the Schiller Institute, in NorthernVirginia . distinguished individuals in demanding oversight hearings on Aug. 3 1-Sept. 1, into gross misconduct by the Department by both houses of the U.S. Congress to investigate these of Justice in the LaRouche case; the targeting of African­ allegations of gross misconduct by the Department of Justice American officials; and cases involving the DOJ's Office of in the three areas of testimony heard by this panel. " Special Investigations (see EIR . Oct. 6, 1995). The Tennessee Black Caucus became the firstcaucus in Gary Mayor Barnes speaks out the United States to unanimously pass a resolution supporting Showing great courage, Tom Barnes, Mayor of Gary , the independent panel's findings. The resolution was adopted Indiana, joined Schiller Institute Board Member Sheila on Nov. 19 at the Caucus's Annual Legislative Retreat in Jones, a LaRouche Democrat who ran for mayor of nearby Gatlinburg, which brought together black elected officials, Chicago, Illinois, in aNov . 21 news conference which deliv­ educators, health care professionals, businessmen, and civil ered another blow to the dirty side of the Justice Department. rights and politicalac tivists from across the state. The resolu­ Hosting the news conference in his office, Mayor Barnes was tion firstpassed the Criminal Justice Task Force unanimous­ supported by former and current state. officials, civil rights ly, and was then voted up at the closing plenary session by leaders, Nation of Islam state leaders, lawyers, and state the entire body. It will be brought up for considerationby the leaders of the Oct. 16 Million Man March. Tennessee state legislature in January. In his remarks, Mayor Barnes presented a timeline of Justice Department targeting of black elected officials in Resolution text Gary and nationally, and concluded, "I intend, after I leave The full text of the resolution reads as follows: office, to dedicate much of my time to a full investigation of "WHEREAS a series of public hearings to investigate alle­ current cases. It is my intention today to provide you with gations of gross misconduct by the Department of Justice excerpts related to 'Operation Friihmenschen'; to provide were held Aug. 31-Sept. 1, 1995, in NorthernVi rginia, facil­ you with the transcript of the Schiller Institute's Independent itated by the Schiller Institute, and Hearings . . . and to ask you to take time to fully review "WHEREAS chairman of the Tennessee Legislative Black . . . and to obtain the full transcript or the videotape of the Caucus State Rep. Ulysses Jones, Jr. participated as a mem­ hearings. " ber of the distinguished panel that heard testimony, and Mayor Barnes then presented Sheila Jones to discuss the "WHEREAS another former member of the Tennessee importance of the LaRouche case. She said, "It is not only Black Caucus, former State Representative and former Gen­ the individuals themselves who suffer, but the voters of this eral Sessions Judge Ira Murphy presented testimony on the nation, who are deprived of representative participation in case of Tennessee Congressman Harold Ford, and determining the direction of their nation. Taking into account "WHEREAS the panel focussed on cases where there was the mass of documented evidence, nothing short of Congres­ evidence of political targetting of groups and individuals by sional hearings will suffice ....Without a reversal in the corrupt officials inside federal governmental law enforce­ LaRouche case, Newt Gingrich and his Confederates buddies ment agencies working in tandem with a concert of private have a carte blanche to impose brutal fascist policies."

December 1995 66 National ElK 8, Book Reviews

Dirty U. S. militarynetw orks implicated in King assassination by Edward Spannaus

but two things. And he died; and we hadn't learned either one of the lessons. That's tragic." Orders to Kill:The King Truth Behindthe Murder of MartinLuther 'Raul' and New Orleans by William F. Pepper Now, dramatic new evidence confirming the innocence Carroll Graf Publishers, Inc., New York, 1995 & 537 pages, hardbound, $28 of James Earl Ray, and identifying the actual killers of Martin Luther King, Jr. , has emerged in published form . Dr. Wil­ liam F. Pepper, the author of Orders to Kill: The Truth Be­ Shortly after theassass ination of Dr. Martin Luther King in hind'the Murder of Martin Luther King, had worked around April 1968, one man who was with King when he was shot Dr. King during the last years of King's life, and was execu­ down, Rev. James Bevel, urged the civil rights movement to tive director of the National Conference for New Politics, demand a fair trial for the man accused of King's murder. organized by Dr. Benjamin Spock and others, which hoped "We should not allow this country to give us a poor, defense­ to put King forward as a third-party candidate for U. S. Presi­ less goat for the body of our lamb," Bevel told a meeting of dent in the 1968 elections. the Southern Christian Leadership Conference leadership in After King's assassination, Pepper walked away from early 1969. "I don't believe Ray was capable of killing Dr. politics. But, in 1977, as the House Select Committee on King, but whether he did or not doesn't really matter now . Assassinations was beginning its investigations, Reverend Ray's execution would not take us one step further in recog­ Abernathyasked Pepper to interview James Earl Ray. Pepper nizing Dr. King's dream. It would furnish our enemies with familiarized himself with some of the background and litera­ a scapegoat. They could wash their hands of guilt." ture on the case; he later found that key books and articles on Dr. King's successor as president of the SouthernChri s­ the King assassination and James Earl Ray had been directly tian Leadership Conference (SCLC), Rev . Ralph Abernathy, commissioned by J. Edgar Hoover and the FBI, so as to firstsupport ed, and then repudiated Bevel's motion, and pub­ present a deliberately falsifiedportrait of Ray as a hardened licly censured Bevel. racist and career criminal to the pUblic. Bevel was subsequently driven out of the SCLC, in large Pepper, accompanied by Abernathy and a psychiatrist, part because of his continuing advocacy of justice for the conducted a lengthy interview with Ray in prison in October accused assassin, James Earl Ray. 1978. Ray's story centered around the man whom Pepper It is a cause which Bevel has never given up. In a January calls "the shadowy character Raul," who Ray says coordinat­ 1994 speech to a conference of the Schiller Institute in ed and directed his activity from the day Ray met him in Washington, Bevel spoke on the theme of Martin Luther Montreal in August 1967, up until April 4, 1968. The exis­ King and James Earl Ray. Bevel told of how he had fought tence of Raul (or "Raoul") was dismissed out of hand both for a fair and impartial trial for Ray since 1968. He told the by the state prosecutors in Tennessee, and by the House conference: Select Committee on Assassinations. "You're going to claim that you love Martin Luther Pepper comments that, in the initial interview with Ray, King-and James Earl Ray sits in jail for 25 years, which he and the psychiatrist noted "a vagueness and apprehensive totally denies the reason King even came to the country. He equivocation relating to any connection with persons or only preached two things: 'Don't judge a man by the color of places in Louisiana." his skin but by the content of his character,' and, 'Inj ustice Louisiana, and New Orleans in particular, plays a crucial anywhere, is a threat to justice everywhere. ' He didn't preach role in Ray's story. He had met Raul in Montreal , where

December 8, 1995 National 67 EIR Raul recruited Ray into low-level gun-smuggling operations; cial forces is more complicated. But in any event, Yarbor­ subsequently, Ray usually met Raul in New Orleans, and ough, one of the U.S. military's top experts in intelligence Raul had given him a phone number in New Orleans to and counterinsurgency, became convinced in the mid- to call for instructions. Years later, Pepper determined through late- 196Os that the United States was on the verge of revolu­ painstaking work that the building where Ray went for meet­ tion, and that the Chinese or Soviets, via Cuba, were behind ings in New Orleans was the International Trade Mart, at that much of it, and particularly, that they were bankrolling and time run by Clay Shaw, a well-known central figure in the directing black militant leaders. conspiracy which carried out the assassination of President Tompkins's account in the Memphis newspaper docu­ John F. Kennedy. mented that elements of two Army units were involved in To anyone familiar with the Kennedy assassination, such Memphis at the time of King's assassination. There was the discoveries jump out of the page. Although Pepper never southern-based lilth Military Intelligence (MI) Group, references Permindex, the international assassination bureau which conducted surveillance, and the 20th Special Forces which actually coordinated the Kennedy assassination, as Group (SFG), based in Alabama and Mississippi. The 20th well as numerous attempts on the life of Charles de Gaulle, was a National Guard unit, into which a number of Special the overlap is obvious. Permindex was established in Montre­ Forces veterans from Vietnam had been "dumped" for safe­ al in the 1950s by Maj. Louis Mortimer Bloomfield, who keeping. The 20th worked closely with the Ku Klux Klan, trad­ was detailed to the FBI's counterintelligence section, Divi­ ing weapons and training for information on black activists, sion Five during World War II. Clay Shaw was a board and it was also involved in broader gun-running operations. member of Permindex, and his Trade Mart was part of the Tompkins's newspaper account-not quoted in Pepper's Permindex ("Permanent Industrial Expositions") network. book----contained the following cryptic statement: "Eight It is this sort of item which makes Pepper's book both Green Beret soldiers from an 'Operation Detachment Alpha fascinating and extremely credible. The book is written as a 184 Team' were also in Memphis carrying out an unknown more-or-Iess chronological account of Pepper's investiga­ mission. Such 'A-teams' usually contained 12 members." tions from 1978 up through the summer of 1995. Pepper is We now returnto Pepper's narrative. not a "conspiracy buff," and he did not start with a fixed doctrine as to who was ultimately responsible for the murder The military trail of Martin Luther King. Pepper takes the reader through the Pepper met with Tompkins four months after the series process of his own discoveries, step by step, showing how was published, to see what, if anything, Tompkins knew pieces of evidence, which corroborated other pieces of evi­ about King's assassination-which was not the subject of his dence, filling out the picture, came together over a long articles. Tompkins told Pepper that he had stumbled across period of time. certain information which he could not print for lack of cor­ roboration. He said that he believed that the Army presence The 'Commercial Appeal' articles in Memphis involved more than mere surveillance, and that Indeed, Pepper's most important discoveries, regarding it had a more sinister mission relatedto the assassination. the role of U.S. military intelligence agencies, only began to Tompkins had talked with a former member of the Alpha emerge in 1993, after the publication of a series of articles in 184 Special Forces team, whom Pepper calls "Warren," who the Memphis, Tennessee Commercial Appeal on U.S. Army had left the United States for Ibero-America after one of surveillance of King's family for three generations. the members of the team had been killed. He feared that a The Memphis newspaper articles, written by reporter Ste­ "cleanup" was in progress. phen Tompkins, drew upon both Congressional hearings Over a period of a few months, Tompkins agreed to help from the early 1970s and Tompkins's own interviews with Pepper. He also told Pepper that members of the 20th Special former military personnel. Tompkins showed that Army in­ Forces Group were involved in gunrunning activities in New telligence units were on the scene in Memphis the day King Orleans, with organized crime figures tied to Carlos Mar­ was killed, but he said in the lead article, on March 21, 1993, cello. that his investigation had "uncovered no hard evidence that Another lead came through a private investigator who Army Intelligence played any role in King's assassination." had recently had a discussion with General Yarborough, who This would change. reportedly had said that he believed it was time for the Ameri­ The key protagonist in the Commercial Appeal series was can people to be told how close America was to civil warin Maj. Gen. William P. Yarborough, the U.S. Army Assistant the 196Os, and how extensive was the military preparation Chief of Staff for Intelligence (ASCI) who, prior to assuming for this. that position, had run the Army's special warfare school Pepper followed the trail, eventually succeeding in put­ at Ft . Bragg in North Carolina. Yarborough is popularly ting questions to both "Warren" and a second member of the described as the founder of the Army's "Green Beret" special Alpha team, via repOrter Tompkins. Pepper learned that the forces commandos, although the actual history of Army spe- team had been specially selected by a top officerof the 902nd

68 National December 8, 1995 EIR MI Group; unlike the geographically based MI groups, the 1968, and references Cincstrike as well as the well-known 902nd was deployed directly by General Yarborough, and "Oplan Garden Plot." It describes the mission of the team as handled highly secretive, sensitive assignments. The 902nd "recon riot site Memphis prior to King, Martin L. arrival ," to also worked closely with J. Edgar Hoover and with the head be further elaborated at a briefingat 0430 hours on April 4. of FBI's Division Five. Hoover had assigned an FBI agent, The distribution of the teletype included the Chairman of Patrick Putnam, to work directly on Yarborough's staff. JCS, the Director of the Joint Staff (DJS), Secdef (Secretary (Hoover's famed turf battles with other intelligence agen­ of Defense), other Pentagon offices, and the White House. cies did not extend to Army Intelligence. His top aide (and Pepper was told by his Pentagon interpreter that one of the reputed homosexual lover), Clyde Tolson, came to the FBI acronyms, "SACSA," was "the FBI's Special Agent in from Army Intelligence in the 1920s, and Gay Edgar himself Charge of Security Affairs ." held an honorary rank of lieutenant colonel in Army Intelli­ As EIR (see June 12, 1992, p. 57-58), and the 1972 book gence.) The Secret Team by Col. L. Fletcher Prouty (ret.), reported, While Army Intelligence had increased its domestic ac­ SACSA is actually the acronym for "Special Assistant for tivity since 1962-63, there took place a dramatic escalation in Counterinsurgency and Special Activities." This position ex­ surveillance, infiltration, and the preparation of contingency isted in the Joint Chiefs of Stafffrom 1962 to 1970, and, as plans for civil insurrection in 1967, sparked by urban rioting Prouty describes it, this was essentially the CIA officewithin and by the growth of the movement against the war in Viet­ the Pentagon; it included the "Focal Point" system which nam. The formal command structure was designated as the was, at that time, a secret and hidden channel of communica­ U.S. Strike Command (Cincstrike), headquartered at Mac­ tion within the military for the CIA. From the beginning of Dill Air Force Base in Florida (the current headquarters for its creation in the 1950s by Allen Dulles, the Focal Point the U.S. Special Operations Command). expanded to include a worldwide covert operations capability The existence of the formal command structure and the way beyond the CIA, both inside and outside the military, various units described in Pepper's book (except, obviously, free of Congressional oversight, and which utilized private the assassination teams) has been independently verified by funding for many of its operations. this reviewer consulting Congressional hearings and reports from the early 1970s. The assassination The overall planning for the Cincstrike operation took The select 20th Special Forces Group Alpha-team mem­ place in the U.S. Intelligence Board, consisting of repres en­ bers were deployed with orders to kill Martin Luther King tatives of all U.S. intelligence agencies, but heavily weighted and his aide Andrew Young. While "Warren" had Young in toward the military intelligence services. his gunsights, the shot rang out which killed King. Warren Overall policy was clearly set at a higher level of the says he was ordered to disengage, and was never given an Anglo-American establishment than this. But within the U. S. explanation as to what had happened. framework, one notable meeting took place on June 12, Pepper's conclusion is that King was shot by Raul, not 1967 , and included the Chairman of the Joint Chiefs of Staff by the Army team. In his view, the operation had at least Earl Wheeler, CIA director Richard Helms, Defense Secre­ three levels: 1) James Earl Ray, the patsy, 2) a contract killer, tary Robert McNamara, and National Security Adviser Raul, deployed and paid for through New Orleans organized­ McGeorge Bundy. Pepper writes: "Out of this session, which crime networks tied to H.L. Hunt and coordinated with J. focussed on the ever-growing combined anti-war and civil Edgar Hoover and Army Intelligence, and 3) the Army team, rights movements, decisions were made to mobilize the 20th which was on the scene as a backup in case the level-two SFG for special duty assignments in urban areas and for the operation failed. lllth MIG to provide a new analysis of the intentions of Dr. Most of the focus of Pepper's investigation has been King and his organization." The orders went out that day. on the middle level; in December 1993, Loyd Jowers, who owned Jim's Grill behind the Lorraine Motel where King 'Focal Point' was shot, confessed that he had paid the actual assassin. Pepper says that he obtained a copy of the actual deploy­ Jowers said that he had been contracted by two others, one ment orders for the Alpha team from "Warren," one of the from New Orleans. members of the team. Warren, a noncommissioned officer, Unable to get a new trial for James Earl Ray (who pleaded himself did not know the meaning of many of the markings guilty in 1969 to avoid the death sentence), Pepper filed a on the document, which a Pentagon source interpreted for civil suit against Jowers in August 1994 for conspiracy to Pepper. While the authenticity of the document is not 100% deprive Ray of his civil rights, which resulted in Ray's verifiedto the satisfaction of some experts, or to this review­ wrongful imprisonment for 25 years. In the spring of 1995 , er, the document in highly interesting-in fact, even more Pepper located the man he believes to be Raul, and on July interesting than Pepper himself realizes. 5, Raul was served with a summons and made a defendant in It is a Joint Chiefs of Staff (JCS) teletype, dated April 3, the Ray v. Jowers et al. civil lawsuit.

December 8, 1995 National 69 EIR · .. National News

the nomination." Newt failed to mention of misconduct against department officials. that Barry Goldwater, the 1964 Republican Some DOJ officialshave tried to play down nominee, lost the election to Democrat Lyn­ the increase in allegations of prosecutorial Thurmond bill would end don Johnson in a landslide. misconduct, suggesting it was simply the Asked if he would endorse Republican result of defense attorneys using the claim unanimous verdict rule front-runner Bob Dole for President, Gin­ as a "trial tactic." According to the OPR Sen. Strom Thurmond (R-N.C.) filed legis­ grich replied, "No, I won't endorse any can­ study, however, only 10% of the complaints lation on Nov. 27 to end the judicial require­ didate. I would hope that 1 would be asked came from defense lawyers, whereas 49% ment that jurors' verdicts must be unani­ to be chairman of the [party] convention. of the complaints originated from within the mous. His bill would allow jury decisions to And you could still well have a contest going Justice Department itself. be made on a 10-2 vote in federal criminal on at that stage, so I would be neutral." As According to the Post, AttorneyGeneral and civil trials. Thurmond argued that there for any Republican hopes of winning the Janet Reno instituted new procedures in De­ is no literal Constitutional requirement for a White House, Newt offered the wild specu­ cember 1993, which gave OPR more au­ unanimous verdict, despite the fact that Con­ lation that there would be five major candi­ thority to probe official misconduct. Reno stitutional practice has maintained it to safe­ dates on the Presidential ballot in November ordered that all OPR complaints be immedi­ guard the principle of "reasonable doubt." 1996, and that the entire election would be ately investigated-even when they in­ Thurmond offered the unsubstantiated thrown into chaos. volved ongoing litigations-and that OPR claim that "today the entire trial process is Even before he folded his own collapsed probes continue even afterthe targetedDOJ heavily tilted toward the accused, with tent, Gingrich had become such a political officials left the department. Under her pre­ many, many safeguards in place to ensure liability that Democrats were eagerly look­ decessor in the Bush administration, Wil­ that the defendant receives a fair trial. . . . ing for ways to tie their opponents to Newt's liam Barr,complaints against federal prose­ This change for jury verdicts in the Federal tail. California Democrat Jerry Estruth­ cutors were often not even reportedto OPR courts will reduce the likelihood of a single preparing to face Republican Tom Camp­ for centralized investigation. juror corrupting an otherwise thoughtful and bell in a special election on Dec. 12 to fill Sources in Washington indicate that reasonable deliberation of the evidence." the seat vacated by Rep. Norman Mineta there is strong White House support for (D)--sentGingrich an airplane ticket invit­ cleaning out what amounts to a rogue ele­ ing Newt to campaign for Campbell. ment long entrenched in the DOJ bureaucra­ The chairman of the Democratic Con­ cy. This may be reflected in the increased gressional Campaign Committee, Rep. clout given to Deputy Attorney General Martin Frost (Tex.), said, "I hope Newt Jamie Gorelick, known to be on close per­ Newt's White House bid comes to my district. . . . And I hope Newt sonal terms with both President Clinton and folds early in London goes to every district in the country, quite his wife Hillary . When House Speaker Newt Gingrich told a frankly." Frost said he had called for Demo­ press conference Nov. 27 that he would not cratic candidates to make "your opponent's middle name Gingrich, and that's exactly run for President in 1996, the news was al­ what's going to happen in this election." ready fivedays old in Britain. The Times of London, the favorite rag of the imperial­ Gingrich is deadliest nostalgia set, angrily reported the death of Newt's campaign Nov. 22, and even an­ disease threat to U.S. nounced that he would formally withdraw A leading health expert told EIR Nov. 28 on Nov. 27. The Times bluntly attributed DOJ c1eanout moving that the most serious infectious disease Newt's fall to his "extremism," his "mega­ threat now facing the United States "is the lomaniacal philandering," and his "bad mis­ ahead under Clinton Republican Congress." Dr. Robert Black, handling" of the budget showdown with A recently released report by the Justice De­ chairman of the International Health De­ President Clinton. partment's internalaffa irs unit, the Officeof partment of Johns Hopkins University'S Gingrich began his own announcement Professional Responsibility (OPR), reveals School of Hygiene and Public Health, said by saying, "So, there's no more speculation. that 20 Federal prosecutors quit the depart­ that Newt Gingrich and his budget-cutting 1 will not run next year for President. My ment during fiscal year 1993 , while they policies were going to severely damage pub­ intent is to run for reelection to the House were under internalinvestigation for alleged lic health in the United States. and hopefully be Speaker again." When misconduct. By comparison, during the pre­ Dr. Black, who formerly worked for the . asked whether his decision was based on vious eight years, only 22 attorneys quit U.S. Centers for Disease Control (CDC) in the fact that his "personal popularity in the while under OPR probe, according to the Atlanta, Georgia, was attending a NASA­ national polls has taken a nosedive," Newt Nov. 24 Washington Post. sponsored International Symposium on Re­ cut off his questioner and shot back, "That's The OPR's report also indicated a 78% mote Sensing and Vector-Borne Disease about where Goldwater's was when he got increase from 1992 to 1993 in complaints Monitoring and Control, in Baltimore. He

70 National December 8, 1995 ElK Bril1ly

LYNDON LAROUCHE is •among the 15 Presidential candidates selected to appear on California's March 26 primary election ballot, as told EIR that public health "experts are very partment of Education recently withdrew a announced by CaliforniaSecretary of scared," and that Americans had no idea of $ 1O ,000CHADD -produced video that was . . � State Bill Jones Nov. 27. LaRouche is the threats that they are facing. Budget cuts dlstn uted to educators in February, after . ? the only Democratic contender listed dunng the past several years, he said, have learnmg about the CHADD connection to other than President Clinton. The decimated the CDC and the U.S. infectious Ciba-Geigy. LaRouche campaign plans to be on disease surveillance network; and Gin­ Several recent national television fea­ the primary ballot in 37 states. grich's policies were likely to wreck what tures have also reported growing abuse of was left. Ritalin among teenagers and adults to "get GOV. WILLIAM WELD, the high." It has reportedly become one of the Massachu• setts blueblood who re­ rugs mos frequently stolen from pharmac­ � � ently demanded that the state privat­ Ies, and high school athletics coaches and � Ize what little remains of its vital othe� personnel have been frequently found functions, announced Nov. 29 that he U.S. DEA investigating stealIng doses prescribed for students from is running for U.S. Senate in 1996 school medicine cabinets. A recent News­ against Democratic incumbent John Ritalin lobbying group wee� article described Ritalin "snorting" �erry. "We've succeeded in chang­ The Drug Enforcement Administration p�les among high school students, and mg the political culture of Massachu­ (DEA) has been looking into the lobbying claimed that use of the drug has risen nearly setts," he said. "Now it's time to organization pushing Ritalin, a drug manu­ sixfold in the last fiveyears . change the political culture of Wash­ None of these exposes, however, actual­ fac�ured by the pharmaceutical giant Ciba­ ington, D.C." Geigy. CHADD (Children and Adults with ly questio�s the use of Ritalin for treating children. with so-called attention deficitdis­ Attention DeficitDisorder) receives close to A COLORADO state legislator order ( uch less those who are misdiag­ • half its budget from Ciba-Geigy, and has � wa�ts to eliminate compulsory edu­ been actively lobbying the DEA to reclassify nosed with Attention Deficit Disorder and catl n, or at least terminate it at age end up being "treated" with it), or the fact ? methylphenidate, the stimulant marketed as 12 mstead of 16, the Washington that widesprea administering of the drug Ritalin, used to treat the disorder. It is cur­ � Times reported Nov. 28. Under the rently cl ssified as a highly addictive drug, by school offiCials has created a climate of guise of eliminating truants who dis­ � acceptance for its use. alo�g with cocaine and various amphet­ rupt class when compelled to stay in arrunes, even though it is prescribed to mil­ school, Rep. Russ George (R), from lions of Americans, most of them children. the rural town of Rifle, plans to intro­ According to a Nov. 16 article in USA duce his ignorant bill in January. Today , recent DEA documents cite "agency fears" that "the financial relationship" be­ Gambling casinos are PRIVATE PRISONS may be • tween CHADD and the Ritalin manufactur­ a flop in New Orleans full of "pitfalls," the New York Times r is "not well-known by the public, includ­ admitted Nov. 24. Payments to pri­ � Harrah's Jazz Co. filed Nov. 22 for Chapter mg CHADD members that have relied upon vate companies, to run low-security II bankruptcy protection from its creditors C ADD for guidance." Reclassifying Ri­ federal prisons, have exceeded the � after its temporary gaming hall in New Or� talm, as CHADD is proposing, would make costs the government would have leans' municipal auditorium brought in only the drug cheaper and even more widely paid to maintain them itself. The half the revenues expected. Harrah's Jazz available. Times also noted that private prison o ne its temporary quarters on May The article claimed: "Gene Haislip, � � I, companies frequently ignore federal while It as building the city's only land­ DEA's head of diversion control, says he � guidelines on treatment of inmates based casmo, at a cost now projected at more f und arents abusing their kids' pre scrip­ and oftenare headed by former gov� ? � than double the original estimate of $425 I�n , kids selling to kids, illegal drug rings, ernment officials who can exert in­ � � million. Bank lenders cut off lines of credit illICit trafficking. Mexican smuggling rings, fluenceover governmentcontra cts. following Harrah's announcement that it even." would close the hall. According to Haislip, one study in Tex­ THE LABOR Department is in­ Two riverboat casinos also declared as shows more high school seniors were us­ v• stigating some U.S. compa­ bankruptcy in early June after only two � 300 ing Ritalin "non-medically" than those who nIes for diverting funds from their months of operation, and are now in liquida­ actually had prescriptions. Two deaths in employees' 401 (k) pension plans. tion. Hilton Hotels Corp. has also cooled on March were also reported of youngsters who The caseload has tripled since last New Orleans, and reportedly wants to sell had crushed the tablets and "snorted" the year, when Labor Department inves­ its gambling hall there . Showboat Inc. 's ca­ drug, i.e., inhaled it nasally, as a means of tigators began to scrutinize the drain sino leftlast year, and Circus Circus Enter­ inducing the rapid onset of euphoria. of 40 1 (k) pension funds by small and prises abandoned a suburban casino devel­ Haislip says CHADD "misleads" mem­ medium-sized companies. opment that never opened. bers about Ritalin's safety. The U. S. De-

December 8, 1995 National 71 EIR Editorial

An end to kings, queens, and oligarchs

The British monarchy is doomed; that is undeniable. are "genetically determined," such that what he calls But the real question is, how much of the world will a "cognitive elite" will rule the world in the coming they bring down with them? millennium. Most bizarre , he identifies the superior We are in the grip of an extraordinary crisis, with gene pool of the upcoming global elite , with the Planta­ implications far beyond the impending financial col­ genet rulers of Britain in times past. lapse. Under the circumstances, the kind of financial It seems that just as Rees-Mogg is jumping ship on and monetary power which London has exerted is com­ the Windsors, he has also ditched his recent protege, ing to an end, and with it, the reign of the mighty U.S. House Speaker Newt Gingrich. The Britishlord Windsors, whether or not they continue to parade their cites the fact that Sir Colin Powell also shares this dirty family laundry in public . Plantagenet "blood" through a 19th-century governor Britain's George III was positively demonic in his of Jamaica. To make his ludicrous point, this oligarch hatred of the new American republic. No doubt, the attempts a comparison between 18 kings of England­ revolutionary leader Tom Paine had a vision of mad from William the Conqueror in 1066 to Richard III in George before his mind's eye when he wrote his pam­ 1485-to the 18 American Presidents of this century. phlet Common Sense against the institution of monar­ He asserts that these bloodthirsty monarchs were supe­ chy, but his words were far more profound than an rior to Presidents such as Franklin Delano Roosevelt, attack merely on a particular, demented monarch. He John F. Kennedy, and William Clinton. wrote: "For all men being originally equal, no one by One day earlier. on Nov. 29, President Clinton birth could have a right to set his own family in perpetu­ addressed the British Houses of Commons and Lords. al preference to all others forever, and though himself With a certain irony, the American President addressed might deserve some degree of honors of his contempo­ the same point as Rees-Mogg, but from the opposite raries, yet his descendants might be far too unworthy point of view. After citing the "extraordinary relation­ to inherit them .. ..One of the strongest natural proofs ship that unites" the two nations, he cited some past of the folly of hereditary right in kings is that nature history of the real conflictbetween the British monar­ disapproves of it. Otherwise, she would not so fre­ chy and the American repUblic. quently turn it into ridicule." "It is perhaps all the more remarkable," President The British monarchy is not important in itself, nor Clinton noted, referring to the War of 1812, no doubt is it really English; it is merely representative of a tongue-in-cheek but nevertheless right on the mark, European oligarchy in which they play a leading role , "because of our history; first, the war we waged for our whose days are also numbered. Nor is it the case that independence, and then, barely three decades later, the British oligarchs are necessarily loyal to their mon­ another war we waged in which your able forces laid arch. It is the institution of the monarchy to which siege to our capital. Indeed, the White House still bears they are committed. On this point, Lord William Rees­ the burn marks of that earlier stage in our relationship. Mogg, a spokesman for the monarchy, is quite clear, And now, whenever we have even the most minor in his counterposition of the principle of monarchy to disagreements, I walk out on the Truman Balcony and that of republicanism. I look at those burn marks, just to remind myself that In his Nov. 30 column in the London Times. enti­ I dare not let this relationship get out of hand again tled "The Best and the Brightest, Monarchs and Presi­ [laughter] . " dents Show that Elites Are Bred, Not Born,"he laid Let us once and for all put an end to the rule of out his thesis quite explicitly. It should be noted that kings, queens, and oligarchs of all kinds ! Let us fulfill this was published while President Clinton was in Great the promise of the American Revolution, for all the Britain. Rees-Mogg's thesis is that leadership qualities peoples of this Earth !

72 National December 8, 1995 EIR SEE LAROUCHE ON CAB L E TV

All programs are Th e LaRouche Connection unless otherwise noted. ALASKA ILLINOIS NEW YORK • YORKTOWN-Ch. 34 Thursdays-3 p.m. • ANCHORAGE-ACTV Ch. 40 • CHICAG O-CATN Ch. 21 • BRONX-BronxNet Ch. 70 Wednesdays-9 p.m. Schiller Hotline-2 1 Saturdays-6 p.m. OREGON ARIZONA Fridays-6 p.m. • BROOKHAVEN (E. Suffolk) • PORTLAND-Access ' The LaRouche Connection TCI-Ch. 1 or Ch. 99 Tuesdays-6 p.m. (Ch, 27) • PHOENIX-Dimension Ch. 22 Weds., Dec. 13-9 p.m. Fri., Dec. 15-10 p.m. Wednesdays-5 p.m. Thursdays-3 p.m. (Ch. 33) Mon., Dec. 18-10 p.m. • BROOKLYN TEXAS CALIFORNIA Tues., Dec. 26-10 p.m. Cablevision (BCAT)-Ch. 67 • AUSTI N-ACTV Ch. 10 & 16 • E. SAN FERNANDO-Ch. 25 Ti me-Warner B/Q-Ch. 34 Saturdays-10 a.m. INDIANA (call station for times) SOUTH BEND-Ch. 31 (call station for times) DALLAS-Access Ch. 23-B • LANC./PALMDALE-Ch. 3 • • • BUFFALO-BCAM Ch. 18 Sundays-1 :30 p.m. Thursdays-10 p.m. Sun.-8 p.m.; Thurs.-9 p.m. Tuesdays-1 1 p.m. EL PASO-Paragon Ch. 15 • MARIN COUNTY-Ch. 31 KENTUCKY • • HUDSON VALLEY-Ch. 6 Tuesdays-5 p.m. LOUISVILLE-TKR Ch 18 Thu rsdays-10:30 p.m. • · 2nd Sunday monthly-1 : 30 p.m. MODESTO-Access Ch. 5 W e d nes ays- d 5 p.m. • HOUSTON-PAC • . ITHACA-Pegasys . . Fridays-3 p.m. Mon.-1 0 p.m., Fn.-12 Noon MARYLAND Wednesdays-8 :05 p.m. Ch. 57 ORANGE COU NTY-Ch. 3 • • BALTIMORE-BCAC Ch. 42 Th u rsdays-7 p.m. Ch. 13 VIRGINIA Fridays-evening ARLINGTON-ACT Ch. 33 Mondays-9 p.m. Saturdays-4:45 p.m. Ch. 57 • • PASADENA-Ch. 56 Sun.-1 pm; M0!1.-:-6:30 pm • MONTGOMERY-MCTV Ch. 49 • MANHATTAN-MNN Ch. 34 Tuesdays-2 6 p.m. Tuesdays-12 Midnight & Weds.-1 pm; Fri.-8:30 pm Sun., Dec. 10 & 24-9 a.m. • SACRAMENTo-Ch. 18 Wednesdays-12 Noon • PRINCE GEORGES COUNTY- • MONTVALE/MAHWAH-Ch. 14 2nd 4th Weds.-10 p.m. CHESTERFIELD COUNTY- & PGCTV Ch. 15 Wedsnesdays-5:30 p.m. • . SAN DIEGO- Comcast-Ch. 6 Th u rsdays-9 :30 p.m. • NASSAU-Ch. 25 Cox Cable Ch. 24 Tuesdays-2 p.m. • WEST HOWARD COU NTY- Last Fri., monthly-4 :30 p.m. . Saturdays-12 Noon • FAI R FAX-FCAC Ch. 10 Comcast Cablevision-Ch. 6 • OSSINING-Continental SAN FRANCISCO-Ch. 53 Tuesdays-12 N oon • Daily-10:30 a.m. & 4:30 p.m. Southern Westchester Ch. 19 Fridays-6:30 p.m. Thurs.-7 pm; Sat.-10 am MASSACHUSETTS Rockland County Ch. 26 • SANTA ANA-Ch. 53 • LOUDOUN COUNTY-Ch. 3 BOSTON-BNN Ch 3 1st & 3rd Sundays-4 p.m. Tuesdays-6 :30 p.m. • ' h Saturdays-12 Noon • POUGHKEEPSIE-Ch. 28 ' ' STA. CLARITAlTUJUNGA 64 • 1st & 2nd Fndays-4:30 p.m. • ������ls�t� King VideoCable-Ch. 20 MICHIGAN Saturdays-12 N �on • QUEENS-QPTV Ch. 57 Wednesdays-7 :30 p.m. • CENTERLINE-Ch. 34 • NEWPORT NEWS- · m. • W. SAN FERNANDO-Ch. 27 Tuesdays-7 :30 p.m. Cablevision Ch. 96 • ; ���E d' Wednesdays-6:30 p.m. • TRENTON-TCI Ch. 44 � � � (with box: Ch. 58 or 01 ) Peconic BaY TV-Ch " 27 Wednesdays-2 :30 p.m. Wednesdays-7 p.m. COLORADO Thur s d ays-.1 2 M 'I d mg h t RICHMOND-Con t' Ch 38 • DENVER-DCTV Ch. 57 MINNESOTA 1st & 2nd Fndays-4 p.m. • . I . EDEN PRAI RIE-Ch. 33 (call station for times) Sat.-4 p.m.; Mon.-6 p.m. • • ROCHESTER-GRC Ch. 15 Wed.-5:30 pm; Sun.-3 :030 pm - . ROANOKE-Cox Ch. 9 CONNECTICUT Fri 11 pm ' Sun ·-1 1 am" • MINNEAPOLIS-MTN Ch. 32 2 Wednesdays-2 p.m. • BETHEUDANBURY/RIDGEFIELD • ROCKLAN D p.A. Ch. 27 Fndays-7 :30 p.m. . YORKTOWN-Conti Ch. 38 Comcast-Ch. 23 Wednesdays-5 ' 30 pm MINNEAPOLIS (NW Suburbs) Mondays-4 p.m Wednesdays-10 p.m. • • STATE N ISL.-CTv Ch . 24 Northwest Comm. TV-Ch. 33 • NEWTOWN/NEW MILFORD Wednesdays-1 1 p.m. WASHINGTON Mon.-7 pm; Tue.-7 am & 2 pm Charter-Ch. 21 Thurs.-2 a.m.; Sat.-8 a.m. • SEATTLE-Access Ch. 29 ST. LOUIS PARK-Ch. 33 Thu rsdays-9 :30 p.m. • • SUFFOLK, L.I.-Ch. 25 Mon., Dec. 11-5 p.m. Friday through Monday SNOHOMISH COUNTY • WATERBURY-WCAT Ch. 13 2nd & 4th Mondays-10 p.m. • 3 p.m., 11 p.m., 7 a.m. Fridays-1 1 p.m. • SYRACUSE-Adelphia Ch. 3 Viacom Cable-Ch. 29 • ST. PAU L-Ch. 33 Fridays-4 p.m. (call station fo r times) DISTRICT OF COLUMBIA Mondays-8 p.m. • SYRACUSE (Suburbs) • SPOKANE-Cox Ch. 25 • WASHINGTON-DCTV Ch. 25 Ti me-Wa rner Cable-Ch. 13 Tuesdays-6 p.m. Sundays-12 Noon MISSOURI • ST. LOUIS-Ch. 22 1st & 3rd Sat. monthlY-3 p.m. • TRI-CITIES-TCI Ch. 13 IDAHO Wednesdays-5 p.m. • UTICA-Harron Ch. 3 Mondays-1 1 :30 a.m. MOSCOW-Ch. 37 • NEW JERSEY Thu rsdays-6 :30 p.m. Tue.-6:30 pm; Thu.-8:30 pm (Check Readerboard) WEBSTER-GRC Ch. 12 • STATEWIDE-CTN • WISCONSIN Sundays-6 a.m. Wednesdays-9 :30 p.m. • WAUSAU-Ch. 10 • YONKERS-Ch. 37 (call station for times) Fridays-4 p.m. If you are interested in getting these programs on your local cable TV station, please call Charles Notley at (703) 777-9451, Ext. 322.

r------, I I I Exe cutive I would like to subscribe to I I I Executive Intelligence Review for I I I Intelligence o lyear 0 6 months 0 3 months Review I enclose $ check or money order Please charge my 0 MasterCard 0 Visa

u.s., Canada and Mexico only Card No. ______Exp. date ___ _

Signature ______1 year ...... $396 Nrume ______6 months $225 Comp�y ______3 months . . . . $125 Phone (

Foreign Rates Address ___------

City ______State __ Zip ___ _ 1 year . . $490 Make checks payable to EIR News Service Inc., 6 months $265 P. O. Box 17390, Washington, D.C. 2004 1-0390. 3 months $145 his beautiful collection of Tcalenders will do more than mark the passage of time. Each one has 12 exquisite prints that can be framed to bring lasting beauty to your home or to give as a present.

Large Wall Calendars-$15.95 each lL MADONNA. 13 fu ll color reproductions by Italian Renaissance masters Angelico, Masaccio, Giotto, Raphael, Bronzino, Sano di Pietro, Botticelli, Simone Martini, Duccio, Gentile da Fabriano. 2L POMPEII. 13 fu ll color reproductions of 18th century drawings by Giffart. 3L AMERICA. 14 full color reproductions of maps of the Americas by 17th century cartographer Joan Blaeu. 4L ARCHITETTURA. repro­ ductions of architectural detail drawings by Desgodetz (ca. 1682). 5L LEONARDO. 13 of Da Vinci's most recognized drawings. 6L MANUSCRIPTS. Reproductions of 15th century manuscripts fr om the Siena Cathedral. Item No. Name Quantity Price 7L ANGELI. Reproductions ofR,e­ naissance angels by Italian Masters.

Small Calendars JWith Desk Stand) ($8.9� each) IS ANGELI. Small reproductions of Renaissance angels. 2S BOTANICA. Reproductions of

Va. residents add 4.5% sales tax Subtotal 18th century botanical illustrations by Georg Dionysius Ebret. Shipping Large calendar $5.00 Tax and handling: Small calendar $4.00 3S ARCHITETTURA. Smaller Shipping (see box) Ea. additional calendar $ .50 reproductions of 17th century TOTAL architectural detail by Giovanni Enclose check or money order, or charge to 0 MasterCard 0 Visa Battista Montano.

Card No. Exp. Signature ______4S MICHELANGELO. Sketches by Ben Franklin Booksellers one of the most celebrated artists 107 South King Street Leesburg, Virginia 22075 (703) 777-3661 (800) 453-4108 of the Italian Renaissance. ,