EXECUTIVE INTELLIGENCE

REVIEW November 21-27, 1978

Britain's bank war Dirty money, dope, and terror versus the u.s.

New Solidarity International Press Service $10 [THIS PAGE IS INTENTIONALLY BLANK] Editor-in-chief Fernando Quijano Managing Editor Tessa DeCarlo Contributing Editors Lyndon H. LaRouche Jr. Nancy Spannaus Criton Zoakos Christopher White

International Nora Hamerman U.S. Report Stephen Pepper Konstantin George Economics David Goldman Counterintelligence Jeffrey Steinberg Military Intelligence Paul Goldstein Europe Vivian Zoakos You've heard about the Science & Technology sudden influx of British and Britain's Morris Levitt other foreign banks into the Soviet Sector Rachel Berthoff U.S., and the scandal-tinged probes in the major U.S. Bank Middle East Robert Dreyfuss banks' currency operations Asia from your newspaper. In our Daniel Sneider ECONOMICS feature this War Africa week you'll find out what's Douglas DeGroot behind the headlines - one of Latin America the dirtiest operations ever Robyn Quijano Dennis Small conducted against this nation Law by an enemy power. Our story leads from the corporate Felice Gelman boardrooms of the City of London, to the machinations of Press the U.S. "Watergate" apparatus, to the illegal drug Fay Sober markets and the nests of terrorist environmentalists along Energy the U.S. East Coast. William Engdahl Included: a revealing interview with the John Dean of Production Editor the current "bankgate," David Edwards; a profile of Deborah Asch Israeli banking that ties it to Britain's secret intelligence operations in general and organized crime in particular; Executive Intelligence Review is published by New Solidarity and the shocking "Philadelphia Story" of British-linked International Press Service banking's intimate relations with drug-running and P.O. Box 1922, GPO, terrorism there. page New York City, N. Y. 10001 8 Subscriptions by mail for the U. S.: On our cover: the gist of the network that ranges from the British 3 months-$125, monarchy to the terrorists of MOVE, the dope trade, and the 6 months-$225, environmentalists. For a more extensive schema, see our coverage 1 year-$400. inside.

ISSN 0 146-9614 © 1978 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. EXECUTIVE IN THIS ISSUE INTELLIGENCE REVIEW

Israeli H-Bomb aimed at EMS THIS WEEK With the Jan. 1 deadline for the Mexico becomes the new oil giant •••.•...•••.•.•••.. activation of the European 5 A tremendous opportunity for America, if . . . Monetary System but six weeks Behind the campaign against nuclear fusion ...•••.••. away, the City of London has 8 Terror against NSfPS shows activated its "ultimate threat": an impact of drug expose •.....••.....•••••.•..••.•.... Israeli nuclear strike to destroy 8 The Shah pulls the plug on the BBC .•.•.•.....• •.•••. Persian Gulf oil supplies. Our 7 INTERNATIONAL report bares the spy scandal of the century: how the ECONOMICS Israelis stole U.S. hydrogen bomb Britain's bank war ...... secrets. Britain declares the EMS a 8 dirty money, dope, and terror "casus belli," and her agents are Will keep America in line? attempting to set the United States The dirtypolitics of 'bankergate' ....••••...... ••..• on a collision course with the Soviet 10 What's behind the Canada-U.S. bank deal ..••.••••.• Union. The result: to head off war, 12 America's European allies threaten The real Philadelphia mainline ...... ••.....••••...1 3

Israeli banking a British intelligence operation•.••..• to break up NATO. page 19 14 Also on the Philly mainline: terrorism ..•••...•.•••••18

INTERNATIONAL

Israeli H-bomb aimed at the EMS ••...... •...•19 Will Ted Kennedy A scandal that will rock the international yet become President? political scene... London's ultimate threat against the new monetarysystem

How U.S. traitors gave Israel the H-bomb ..•.••..• The results of the Nov. 7 elections 1. 19 are fueling the British war drive, 2. Carter's budget prepares America for war .•...... •21 and have made a Ted Kennedy drive 3. EMS pries London's grip from Third World •.•.•..•23 for the White House - until recently 4. Europe says 'no thanks' to arms buildup ••••..• ...24 considered an absurdity in the post­ 5. Pushing a U.S.-USSR Mideast showdown ..•....•. 27 Chappaquiddick era - a very real option. Backed up by analyses of the results in selected key states, po­ EUROPE litical analyst Dr. Stephen Pepper John Paul II's 'Augustinian' papacy ••.•.••••••..•••• 29 explains in our U.S. REPORT what Exclusive: an interviewwith a close associate happened, and what must be done to of the new Pope's from NSIPS in Rome pull together a counterpole to the Fabians for 1980, and prevent the returns from being used as a mandate for a depression this winter. page 52

© 1978 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. Capriccio Siciliano

Vol.V, No. 45 This week's issue concludes our November 21-27, 1978 exclusive translation in COUNTERINTELLIGENCE of the explosive "Capriccio Siciliano," four-part article from the Soviet SPECIAL REPORT magazine Ogonyok which bares National Security Agency caught details of the Peking-Mafia working for British intelligence ...... 31 connection to the Kennedy A report on a mail-fraud and financial-milking assassination. Our first three operation against the U.S. Labor Party by a top installments of this remarkable branch of America's intelligence services piece of Soviet journalism have already produced a major stir in COUNTERINTELLIGENCE official Washington and elsewhere - which has already led the New Capriccio Siciliano...... 35 to nervously attempt to The fourth and final installment of our exclusive York Times translation of the Soviets' politically explosive expose dismiss the Ogonyok series in a lead editorial this week. In the final installment. author Julian ENERGY Semyonov ties together the final threads linking Peking, Maoist Arabs lead UN drive for nuclear power ...... 43 Everyone else is going nuclear- where's the U.S.? terrorists in both Italy and West Includes a sharp critique of zero growth and Germany, elements of the CIA. the appropriate technologies by the head of IAEA international Mafia. and powerful Oil-producing nations join the nuclear club ...... 45 financial interests behind them. to U.S.oilm en seek expanded nuclear energy role ... ..4 6 the assassinations of both John and Robert Kennedy. page35

THIRD WORLD Indira Gandhi's political comeback- Pope John Paul II How fast? How far? ...... 47 an "Augustinian" Gandhi: India needs national unity to develop ...... 50 An interview with the Indian leader made available by the weekly New Wave In an exclusive interview in our EUROPE section. a close friend of Pope John Paul II. Dr Brasca. U.S. REPORT describes the new Pope as a Midterm elections prelude disaster in 1980 ...... 52 "humanist and an Augustinian" who An assessment that sees Kissinger and Kennedy will follow closely in the direction the big winners in many of the Nov. 7 races laid out by Pope Paul VI. Among the Maryland: USLP's Freeman claims victory topics he discusses in this candid over Mitchell in Baltimore ...... 53 and important interview: the Pope's Washington: Fabians sweep congressional races ....54 likely approach to foreign policy and California: GOP hands governorship "Ostpolitik," the Church and human to Mr. Austerity ...... 55 rights. the development of Illinois: Percy victory a setback for nation ...... 55 ecumenicism, and the possibility of New York: Kissinger the Communist participation in

kiss of death for state GOP ...... 56 European governments. page29 Pennsylvania: Thornburgh strikes rotten bargain ....56 EXECUTIVE EXECUTIVE INTELLIGENCE REVIEW INTELLIGENCE Is u.s.policy REVIEW madein Disneyland?

... GIVES YOU the intelligence you need to be making policy whether your responsibilities are in government. the labor movement. business. education. or elsewhere.

... COVERED WHAT WAS really negotiated at the July 1978 Bremen and Bonn summits of industrialized countries ... and how the European Monetary System launched at Bremen was modeled on a 1975 proposal by the American political economist Lyndon H. LaRouche, Jr. as the "seed-crystal" of a new, development-oriented world monetary system ... how the United States can get into this system and out of the depression .. ... DOCUMENTED ... REPORTED HOW what's behind the world outbreak of terrorism. fusion energy researchers in the United States the names of the global networks that deployed achieved the milestone breakthroughs reported in both "Ieff' and "right" terrorism to kill Juergen August, 1978 from Princeton, and what other Ponto, Hanns-Martin Schleyer, and Aldo Moro­ advances are coming in this clean, cheap and and plan an even bigger terror wave for the United virtually unlimited solution to the world energy States ... Executive Intelligence Review provides crisis . .. how and why there was a massive the tirst-hand documentation from the world's sabotage attempt against the U.S. fusion program, press, including accurate translations from non­ and who's backing fusion now . .. what were English sources, showing how continental Europe, Japan's and the Soviet Union's offers in 1978 to the Japan, the East bloc, the Arabs and developing USA for joint fusion R&D. sector countries are seeing and acting on events.

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Mexico becomes the new oil giant

A tremendous opportunity for America, if...

Jorge Diaz Serrano. head of implications of their country's API Convention. Given that the Mexico's national oil company (Pe­ emergence as an oil power for U.S. is Mexico's largest and mex). stunned last week's meeting relations with the U.S. in language traditional trading partner, Mexico of the American Petroleum any astute American businessmen would very much like to see the Institute's conference in Chicago could not fail to understand. establishment of a mutually bene­ with the news that Mexico has un­ Speaking at an important confer­ ficial trade and development covered a giant new reservoir that ence on petrochemicals in the state relationship. Last week it was might contain as much as 100 of Yucatan one day prior to his announced that President Carter billion barrels of oil and 40 trillion speech at the API convention, Diaz will visit Mexico in February of cubic feet of natural gas. Serrano declared that the Chi­ next year, giving the U.S. another The oilmen's response was not contepec field "represents a opportunity to reciprocate these unwarranted. Since the new find is magnificent opportunity for Mexican offers, which in the past not included in Mexico's current definitely industrializing our have been sabotaged by Energy reserve figures. which already country." At the same event Secretary James Schlesinger and place its proven reserves at 20 Industries Minister Jose Andres de National Security advisor Zbig­ billion barrels and potential Oteyza announced government niew Brzezinski. reserves at 200 billion. Mexico's incentives to domestic and foreign But Mexico is making no secret overall reserves could reach 300 businessmen who want to invest in of the fact that if the U.S. does not billion barrels! Saudi Arabia. to the promising petrochemical respond positively to its offers, date the world's oil giant. lists industry. Two days later, Finance Mexico will take its business else­ proven reserves of 150 billion Minister David Ibarra announced where. This was stated starkly by barrels. the establishment of a special $200 the head of Mexico's Central Bank As significant as the size of the million fund to begin imple­ Romero Kolbeck at a press confer­ new deposit - which Diaz Serrano mentation of the government's ence on Nov. 14, in which he described as "one of the bigger program for production of capital reviewed the effect of current U.S. hydrocarbon accumulations in the goods. And in the process of economic policies on Mexico. Western Hemisphere" - is its working out special legislation to Romero warned that the current location. The field, called "Chi­ provide the guidelines for the anti-inflation measures adopted in contepec," is in the legendary development of nuclear energy, a this country, in particular the "Golden Lane" which stretches 100 group of Mexican Congressmen sharp rise in interest rates, as well miles south from the Gulf of has called for a long-term program as the collapse of the dollar, could Mexico port of Tampico. The new which would start immediately lead to a dangerous situation of deposits are in an area which was with the construction of eleven economic depression and thought to have been exhausted. nuclear plants. "distortions in international trade In short, Mexico is moving ahead currents." Mexico is taking What will It mean for the U.S. ? with its industrialization program measures to defend its own As the U.S. and British press were at breakneck speed. As its leaders economy in light of the trend in the quick to recognize. the new oil finds have said in the past, the revenues U.S., he said, by turning to "the will turn Mexico into "the next oil from oil exports will be used to new international capital markets power." But despite the unusually import the advanced technology which are emerging in West large amount of publicity. few and manufactured goods required Germany, Japan and Swit­ ' sources in the U.S to expedite this process. zerland." Observers in Mexico in­ . have correctly discussed what it will mean to have It's no coincidence that Mexico terpreted this as a clear reference a "Saudi Arabia" south of the chose to announce the new oil to theEuropean Monetary Fund. border. In fact. it was Mexican discoveries one day prior to Diaz officials who drew out the full Serrano's speech at the Chicago •

November 21-27.1978 EXECUTIVE INTELLIGENCE REVIEW THIS WEEK 5 former employers at Kayser-Roth has uncovered a network around these individuals that can best be Beh ind the campaign described as an Israeli intelligence spy nest in the U.S. This Mossad network involves scientific espio­ against nuclear fusion nage. assassinations. and dirty money operations. as well as black When the editors of the Executive tance for nuclear power develop­ propaganda against nuclear In telligence Revie w received ment to the developing sector and energy. For the full story on how reports last week that Mr. Alfred increasing the developing sector's Slaner and a group of his cohorts in P. Slaner. former chief executive representation in the International the so-called Nuclear Club of the for the Kayser-Roth Corporation. Atomic Energy Agency (see our New York Stock Exchange have plans to finance the publication of a ENERGY Section) . functioned as Mossad's atom spy new magazine on the scientific pro­ The nasty nuclear operation. network in operations up to and spects for the development of however. does not end with Kahn­ including the transfer of hydrogen thermonuclear fusion power. we style proposals . bomb capability to Israel. see our immediately investigated. Unfor­ A closer look at Slaner and his INTERNATIONAL section. • tunately we must report that Mr. Slaner and his associates in the venture have no intention of joining the ranks of such notable publi­ cations on atomic power as the Terror agai nst NSI PS shows Fusion Energy Foundation's popular Fusion magazine. Their front money will instead be used to print an antinuclear slander sheet. impact of drug expose which we project will be dominated by the line that humanity can be At 9 p.m. local time on Nov. 11 a illegal financial operations. and saved from the destruction-and­ squad of hooded terrorists. armed terrorism. These exposures. which pollution potential of fission power with lead pipes and tear-gas have circulated widely behind the only through the development of grenades. stormed the Paris scenes in European governments solar. biomass. and other "soft" bureau of New Solidarity Inter­ and other high-level circles. are energy technologies. and the clean national Press Service at 19 rue threatening the vital lifelines of form of nuclear power - fusion. Nollet. The squad broke into the those British networks. The Labor office. throwing one tear gas Party's just-released expose of A Kahn job grenade and injuring a plain­ how this same web handed U.S. H­ This bogus fusion-versus-fission clothes police officer stationed bomb technology over to Israel. formulation is now being peddled there in response to threats reported in this issue's internationally by the upstate New received earlier. Outside the INTERNATIONAL section. is York Hudson Institute. and NSIPS office. 20 to 40 similarly upping the ante even more. Police Hudson's notorious doomsday stra­ armed and hooded thugs attempted investigators in Paris. where the tegist Herman Kahn. Over recent to cordon off access to the block at only direct physical attacks have weeks the porcine Kahn has the main intersection. taken place so far. confirm the devoted himself overtime to This attack. merely the first in a existence of plans by the so-called foisting this disinformation line on series that have unfolded over the Zionist lobby to escalate such the developing nations in par­ past week. dramatizes the forces attacks internationally as a result. ticular. The Third World. however. that have been put into play inter­ What was going on in the offices answered Kahn's suicide energy nationally to stop the damaging of NSIPS's Paris bureau when the policy proposals on Nov. 2 in the exposures by this news service. the attack occurred was a meeting United Nations. voting in a tight U.S. Labor Party. and others inter­ called to announce the upcoming bloc with the Arabs. the Soviet sec­ nationally. of the control exerted publication in the United States of tor. and protechnology Western by the British monarchy's Zionist the book Dope, In c., Th e World's European nations to pass reso­ and other networks over inter­ Biggest Business. a preview of lutions increasing technical ass is- national narcotics trafficking. which has been published in this

6 THIS WEEK EXECUTIVE INTELLIGENCE REVIEW November 21-27, 1978 review (see Executive In telligence warfare bureau have also begun to Crown) . the British Secret Service, Review. Oct. 31-Nov. 6. Vol. V. No. react. The first signals came with the Knights of Malta, and others, 42). the publication Nov. 15 and 16 of while claiming that the European Every present lead on the attack. attacks on the European Labor Labor Party is in an "anti­ according to French police. points Party in La Repubblica. a news­ communist" alliance with Italian to Israeli-intelligence controlled paper controlled by Count Industry Minister Donat-Cattin. in . groups. specifically the BETAR. Carocciolo. an in-law of the Agnelli hopes of isolating the Labor Party the equivalent of the paramilitary family. who represents the "left­ from potential collaborators Jewish Defense League in the U.S. wing" environmentalist side of among the Italian Communists. to The context for the attacks had Italy's nobility and who was whom Donat-Cattin is persona non been set up the week before by the identified as a central figure in the gra ta . That the situation could Nov. 1 publication in L'Express Labor Party's Moro dossier. move beyond the level of slander is magazine (owned by the British The Repubblica articles try to indicated by a series of murders financier Jimmy Goldsmith) of a discredit the Labor Party expose and shootings that have taken vicious interview with Darquier de by simultaneously reporting on the place in the vicinity of the party's Pellepoix. formerly Commissar for "rumors of conspiracy" involving Milan office. Jewish Affairs (responsible for the House of Windsor (the British • deportations) in the Vichy government. and now a senile cripple in exile in Madrid. The publication of the raving Nazi inter­ The Shah pulls the plug view set the stage for what was intended to be billed as a revival of on the BBC "Zionist" - "anti-Semitic" con­ frontations in France. The newly appointed military correspondents in Iran for sub­ On Nov. 13. at the daily press government in Iran is presently mitting reportage with a definable briefing held by an aide to the jamming the British Broadcasting anti-Shah tone. Since the imposi­ Mayor of Paris. Jacques Chirac. a Corporation's Persian language tion of the military government leader of the Gaullist party. programs beamed into Iran. earlier this month. foreign reporters were briefed on the According to the Nov. 16 Wa sh­ correspondents have been warned attack and the results of the ington Post, the Iranian govern­ to comply with the rules of press preliminary investigations. which ment has charged the BBC with censorship. Following his appoint­ are still continuing. Despite transmitting reports deliberately ment, Prime Minister Azhari said numerous reports sent from the slanted to provoke further anti­ that the press was in part briefing into the major press government unrest. responsible for fueling discontent. agencies. the story has been The Post reports that Tehran has Just prior to the appointment of blacked out. specifically by Agence cautioned the BBC that continued Iran's new military government a France Presse. provocative reporting could force UPI correspondent was expelled to Three days later. NSIPS's Paris Iran to impose an economic boy­ London. after he had filed a report bureau received a telephone bomb cott against British businesses that Shah Riza Pahlevi had been threat. in which the caller stated : operating in Iran. The Post adds assassinated. Shortly thereafter a "We are the Zionists you have been that not only Iran but other govern­ former official of Iran's official attacking. In 35 minutes a bomb is ments have been concerned about Information Agency was exiled to going to go off. it is filled with some of the BBC's distorted news London on grounds of circulating TNT." Police investigators coverage. The crackdown on the false information. summoned to the office found no British propaganda outlet may por­ Over the past 18 months the device. tend that the Shah's government is Iranian Foreign Ministry has contemplating nationalization of issued several sanctions against Threats in Italy British Petroleum and Royal both the BBC and even British Simultaneously in Italy. the press Dutch Shell. the City of London's Foreign Secretary David Owen for networks that had been identified on-the-scene power centers in publicly expressing anti-Shah in the widely circulated European destabilizing Iran's modernization sentiments. Iran's Information BBC Labor Party dossier on the program (See EIR's Nov. 14-20 Minister Tehrani accused the assassination of Italian leader Aldo issue). of inciting the oilworkers strike Moro as merely branches of the The Tehran government has also which cost Iran $750 million. British intelligence's psychological threatened to expel BBC •

November 21-27, 1978 EXECUTIVE INTELLIGENCE REVIEW THIS WEEK 7 ( ECONOMICS

Britain/s bank war Will dirty money, dope and terror keep America in line?

What do foreign-currency-heist specialist David original implementors of British foreign policy's Edwards, jailed Israeli financier Tibor Rosenbaum, Zionism, provide the most direct linkups to a wide and the staid Barclays Bank have in common with range of Israeli intelligence dirty operations capabili­ Weathermen terrorists, the Pennsylvania market in ties and drugrunning. In fact, a late-breaking story in illegal drugs, and diamond smuggling in Hong Kong? our accompanying INTERNATIONAL report reveals The answer is, plenty. All are demonstrably integral that these same networks have succeeded in betraying parts of a worldwide surrogate-warfare apparatus U.S. atomic secrets to Israel, giving that war-hungry which the British monarchy and associated financial nation the H-bomb! powers are now using against the United States. At the wheel is the crown's top policy-making body, the Royal Institute for International Affairs (RUA) The red-coatsare coming and the secret society with which it shares perhaps 50 Even the popular media are now reporting that a percent of its membership, the Order of St. John of number of British and Canadian banks are moving in Jerusalem, whose Grand Prior is Queen Elizabeth her­ on the U.S. The bank "invasion" is in itself, however, self. Ranged below this command center are City of merely a blind behind which a battle to the death is London and allied banking institutions and financial being waged. family dynasties, including many nominally At stake is which policies will take control American bankers and banking families whose loyal­ over world financial flows - the growth- and ties in fact lie with Britain. In particular, the famous development-based policies represented by the new Jewish bank empires of the City of London, the European Monetary System, or the no-growth

8 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW November 21-27,1978 The British monarchy

AliA . • Order of St. John of Jerusalem I I

Midland Jerusalem Barclays Bank Foundation Bank I I 1 Aothschilds Hill Samuel Charterhouse � Samuel Montagu Warburgs Japhet Lazard Freres I I

Israeli Bank Leumi intelligence operations Bank Hapoalim / I L I "

Washington Nuclear Club BCI Philadelphia Union Paco Post of Wall Street Capocetto Foundation Bank (David Edwards)

.. .. Bank Nuclear Environmentalism Illegal drugs fraud espionage terrorism

austerity and dirty money on which London and its houses - and in the process explains a number of allies have staked their future. With continental events that have been puzzling other economic Europe moving further out of London's grip every analysts, law enforcement investigators. and political day, the United States is Britain's last hope - and a observers. stranglehold is being tightened on the U.S. to force it First. we have the story - much of it in the back from collaboration with the EMS forces. principals' own words - of how a series of contrived For if the U.S. were to decisively shift its economic scandals modeled on Watergate is pressuring the and political strength to the EMS side of the fight, it largest U.S. commercial banks to surrender to the would not be long before the hundreds of billions a Bank of England and the IMF. year in drug and related illicit money flows would be Then. how the same networks of British and mopped up in a few well-coordinated international associated Israeli banking are using their kingpin role police actions. The EMS would relegate the London­ in international drug-dealing against the U.S., by dominated International Monetary Fund to the scrap­ examining the relationship between those banks' heap, its "surveillance" over international finance entry into the U.S. market in Pennsylvania and the affairs and its murderous austerity policies only a illegal amphetamines racket in the same area. memory. London would be through as an international Last. the kind of terrorist capability these same financial power. This is what the gamut of the crown's forces deploy is uncovered by a second look at the capabilities is being mobilized to stop. Philadelphia case. where the same bank networks and The following shows how this "bank war" is being drug companies are handing operating cash over to waged far beyond the boardrooms and investment declared terrorists.

November 21-27, 1978 EXECUTIVE INTELLIGENCE REVIEW ECONOMICS 9 The dirty politics of 'bankergate'

Remember the original Watergate? The sudden the plan, laid out by the Governor of the Bank of "conscience-stricken" revelations by insiders, the England this summer, to impose full International expose articles in the Wa shington Post, the Monetary Fund surveillance over U.S. banks in pyramiding of official investigations? Precisely the particular and international finance in general. "We same scenario is enjoying a rerun, and under the same hope for some kind of IMF ruling on this entire direction, but this time the target is not the American Euromarket question," Kramer commented. "We're presidency, but the U.S. banking system. just sorry we couldn't break the story in time for the A for mer Citibank specialist in "offshore" currency September IMF annual meeting." manipulation, one David Edwards, is taking Citibank The original London plan surfaced when Sir Gordon to court on charges of illegal activities. His case, with Richardson, the Bank of England Governor, and U.S. a hefty boost from the Wa shington Post, is acting as a Federal Reserve Chairman G. William Miller made spur for a broad attack on all the major New York identical speeches at the beginning of June, commercial banks, engendering no less than three complaining about (in Miller's words) "the unsettling federal and four congressional probes into the effects of the excess liquidity in the international country's seven largest banks. monetary system" caused by the presence of the $600 "Bankergate" went into high gear Nov. 1 when the billion Eurodollar market. Their solution was Wa shington Post printed a sensational front-page circulated more privately, in a not-for-publication article by Edwards's Washington duenna, Larry Bank of England memo which urged the imposition of Kramer, announcing a broad Justice Department­ reserve requirements on the Eurodollar market, a Securities Exchange Commission investigation into scaling down of the market itself, and mandatory all seven banks' foreign currency activities. surveillance of all Eurodollar loans by the London­ In interviews last week both Kramer and Edwards dominated IMF. (The intensive excerpts of the secret agreed that the ultimate aim of the scandal is to fulfill memo were published in the Executive In telligence

requirements and other controls on He's really out to get the banks. Edwards: 'Somebody the Eurodollar markets. Of course this would curtail British banking's Q: Wh o introduced you around has to clean out banking competitors' international Wa shington ? activities. A: Oh, Larry Kramer and the the u.S. banks' A: Exactly. Chairman Proxmire Wa shington Post staff told asked me just that : "How can your everyone all about me, and I've Th is in tervie w with form er case be used to help pass been getting invitations right and Citibank Assistant Vice-President legislation forcing reserve left since. Da vid Edwards wa s made requirements on the Eurodollar a vailable to this news service by markets?" And Reuss said 'I set itup myself' British financial sources. something similar. Q: Ho w do you know that Citibank Even better was Representative hasn 't cleaned up its actalrea dy? Edwards: For the past four years (Joseph) Minish (D-N.J.), the head A: Look, I set up the whole Nassau or more I have been appalled at of the House Banking Committee offshore Carribean operation ; I what the total lack of regulation Oversight Subcommittee, who is took over the Nassau desk in 1972 has meant to the ability of the against the banks because he's the and set up the whole thing, under banks to carry on extensive illegal former head of New Jersey COPE the auspices of ...... , the ...... (a top activities on the offshore markets, (the AFL-CIO's Committee on official whose name is being and now I simply believe that Political Education - ed.) and of withheld by this news service - somebody has to clean out the the Essex County AFL-CIO. And ed.) of Citibank UK. Then he began banks. John Conyers, Chairman of the misusing it. He even had the nerve, House Judiciary Crime when word of my complaints began Q: I gather you hope your case will subcommittee, told me: "You're to get around, to call New York and be used as a spur to Cong ress to out there all alone against the long tell senior management that under resurrect th e proposals of arms of the banks, out in the cold, UK banking law, they, not he, were Proxmire and Reuss for reserve but we're gonna bring you in, boy." responsible ....

10 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW November 21 -27. 1978 Reviews June issue.) Canada's leading RIIA representatives, the Bronfman In practice, this would jerk up the cost of Eurodollar family. (For details of the Canadian side of the bank business to U.S. banks by over 3 percent to pay for takeover, see below.) reserves, and would at the very least force a major retrenchment of their foreign operations, say banking industry sources. At worst, it could mean what one How to run a Watergate European press source called "a crash of intolerable Britain's "bankergate" began last spring when David consequences," a crash that would collapse the core of Edwards was booted out of his position at Citibank's U.S. banking. Paris office and filed a $14 million suit against the A second, not insignificant aspect is the attempt to U.S.'s No. 2 bank. Edwards charged that his dismissal halt exposure of British banking's role in the resulted from his valiant efforts to expose Citibank's international narcotics trade, and particularly to illegal foreign currency transactions. squelch a suit now pending at the Washington Federal Edwards was trained at the London School of Reserve brought by the U.S. Labor Party exposing the Economics, and passed on to Citibank in 197 2 by the RIIA-controlled Bank of Hong Kong and Shanghai's London merchant bank Samuel Montagu and Co. financing of illegal drug-running into the U.S. The During 197 2-7 4 he worked under the direction of a top heads of major American banks, such as Citibank's official of Citibank London to set up Citibank's entire Walter Wriston and Chase Manhattan's David Nassau-Caribbean offshore operations. Edwards Rockefeller, are being blackmailed by British personally designed those operations to be used for tax collaborators inside their own banks to side with evasion, foreign currency speculation, and all manner Britain against the USLP probe. If they do not, word of dirty-money laundering. will go out in Washington that, as Kramer put it, "it is The top London officials then arranged to dump the U.S. banks, not the much smaller British, who run Edwards, who conveniently began complaining to the the drug trade. " management in New York about the dirty Nassau But the prospects for banks that knuckle under are operation. Convenient, because the London official not bright. Take the case of Bankers Trust. The promptly pointed out to Citibank Chairman Walter nation's seventh largest bank announced Nov. 9 that it Wriston that under British bank law, Wriston was is selling off 89 New York City branches - its entire responsible for the entire mess - by then billions of retail business - to the Bank of Montreal, run by dollars' worth. Today, the official is senior vice-

got the Bank of Mon treal in to Q: You mean Wa lter Wriston ? A: No, but what choice do we A: Yes. But now ...... is the (top have? We're taking the position Bankers Tr ust? officer) of Citibank world that his charges are ridiculous A: You may be right. We don't see headquarters in New York, and because he's crying foul at every­ room for more than three retail I'm out in the cold. day banking practices. banking businesses in New York City five years out - Citibank, Q: But the point is that he's got a Chase, and maybe Manny Hanny full Justice Departm ent and (Manufacturers Hanover). 'Nothing to do congressional investiga tion of those everyday practices in order Q: But why does Mon treal want to with profitabi I ity' to shove reserve requirements move into a dying industry - to through on theEuromarkets. lose money? From an in terview with a A: But the big U.S. banks would A: It has nothing to do with pro­ prominent Ne w York commercial never allow it. . . . fitability of retail banking; it's banker: political. You're right about the Q: Wh at theyallow is not at issue. British and Canadians wanting a Q: What are you doing about the A: But they can't do that to Walt slice of the U.S. market, no matter Edwardscharges? Wriston ; that would collapse the what the cost. The question is, will A: We're going to have to open up ; entire credit of the U.S. banking the Federal Reserve allow it? we plan to let him inside the bank, community. My god, I can't believe We're watching the HongShang tour him around, and try to trip they have anything on Wriston. takeover of Marine Midland, him up - prove that there's He's the pillar of the community. hoping they'll stop it. nothingto what he is saying ....

Q: You think that will stop the Q: Th e British would ra ther not Justice . Department and SEC use their in/ormation - they want probe? him to play ball. Wh at do you think

November 21-27.1978 EXECUTIVE INTELLIGENCE REVIEW ECONOMICS 11 president in Citibank's New York headquarters. individuals. according to information in the hands of courtesy of this blackmail. the U.S. Labor Party who have committed grand By Feb. 9. 197 8. Edwards had been fired for his larceny to the tune of over $1 million syphoned out of expose campaign ; on July 24 he filed suit. By August 1. the bank accounts of several organizations associated the Justice Department and the SEC had launched with Lyndon LaRouche, in cooperation with the offshore practice probes of unnamed "New York Canadian Bank of Nova Scotia and the Canadian foreign exchange brokers." according to the Wall Imperial Bank. Street Journal. The entire episode followed close on It is clear that Wriston and Rockefeller must clean the heels of u.s. President Carter's acceptance of the up their banks. but how. and at what cost? Attempts to Schmidt-Giscard European Monetary System cover up past sins will be met with further scandal; package at the late July Bonn economic summit of but a clean sweep of the blackmailers and British heads of state. agents would end up in the asset column of the banks' Edwards has revealed (in the accompanying books. interview) that it was in fact Washington Post cub -·Kathy Burdman reporter Larry Kramer, under direct orders from Post publisher Katherine Graham. daughter of Lazard Freres's founder Eugene Meyer, who brought underdog Edwards to Washington and toured him What/s beh ind the around the Justice Department, the SEC, and Congress. As Edwards also says, Senator William Proxmire. Canada-U.S. bank dea l chairman of the Senate Banking Committee. "It has nothing to do with the profitability of retail specifically asked Edwards if his case couldn't be banking." a New York commercial banker told used to help legislation forcing reserve requirements Executive In teJ1igence Review this week in reference on the Eurodollar market - the Bank of England to the Bank of Montreal's recently announced move to program - along with a number of other legislators. snap up 90 percent of the retail operations of the Soon the story of the big bank investigation was nation's eighth largest bank. "It's political," he stated making headlines not only in the Washington Post, but flatly. the European financial press. The French financial Indeed. the decision of Canada's third largest bank daily Les Echos publicized the story in a prominent to take on Bankers Trust's 89 branch banks, long since column titled "Crash," accusing the American "top unanimously judged a pack of financial albatrosses, Fortune classification banks ...these 'four sisters' " appears to be the latest episode in what has shaped up and Bank America, Citibank. Chase. over the months as a politically motivated. high­ ost of their Manufacturers Hanover - of making "m powered. high-profile British banking invasion. profits from the constant movement of capital they "The volume of manage." The article continues. Hardly economical atile dollars is out of control ...The entire (their) vol There is little question that the deal represents any world is at the mercy of a crash of incalculable kind of dollars-and-cents economic gain for the Bank consequences that would make Black Friday 1929 look of Montreal. The Bankers Trust retail operations, with like a mishap." a billion dollars in assets, barely holds a sliver of the Miller associate John Heimann. U.S. Controller of New York retail market otherwise overwhelmingly the Currency. announced the same day the formation dominated by Citibank. Chase Manhattan. Chemical of a special department of "multinational banking Bank, and Manufacturers Hanover. each with far surveillance" to widen the Edwards-instigated more than 200 branches. many of which are auto­ probes. mated and offer 24-hour service. It is not exactly the type of operation that would look attractive to a $30 Will Wriston clean house? billion Canadian bank reputed to be painstakingly The real dirty laundry of these banks is that most of working its own business out of the doldrums. Edwards's accusations are in fact true - as far as they But it the economics ot the deal don't add up, the go. u.S. banks. together with British banks. are politics do. As the Canadian press has noted. the Bank engaging in all manner of illegalities. As of Montreal-Bankers Trust deal is running inter­ Undersecretary of the Treasury Bette Anderson ference for final passage of the new Canadian Banking accurately stated in an August speech. New York Act, which would formally open Canada for U.S. branches of many banks such as Chemical Bank have branch banking in exchange for deposit-taking laundered millions of dollars in small change for the operations in the U.S. - a carte blanche for wholesale illegal narcotics trade. merger of Canadian and American banking systems. The people running these dirty operations from What Bank of Montreal risks in dollars and cents, it inside the American banks - like the top Citibank secures in establishing a political-financial beachhead official blackmailing Walter Wriston - are the same inside the American banking system.

12 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW November 21-27,1978 The chain of command Brinco, like the Rothschild's Rio Tinto Zinc (RTZ) and It is most useful to take a close look at the actors in the infamous Hong Kong-based Jardin Matheson, is this otherwise improbable deal. It is not insignificant directed by one Sir Mark Turner. former head of Britain's Ministry of Economic Warfare and a kingpin that William Mulholland, president since 1974 of Charles Bronfman's Bank of Montreal and the in the United Kingdom's dope and terror war. inspiration for the "dynamic move", in the words of Significantly, New York State Superintendent of the Ne w York Tim es, earlier distinguished himself as Banks Muriel Siebert reports that her office has yet to be supplied with any details or terms for the proposed a partner in the same Morgan Stanley and Company sale or merger, which has been in the works since at which "pinned down" Bank of Montreal's interest and least July. It is likely that Mulholland and Bronfman "advised" Bankers Trust on the sale. are watching the Federal Reserve's handling of U.S. It is even more interesting that Mulholland Labor Party testimony against the Hong Kong-Shang­ distinguished himself at Morgan Stanley by sole hand­ hai Marine Midland takeover rather closely - there ling of the $500 million financing for Brinco's Churchill are indications that the Bank of Montreal may call the Falls Hydroelectric project, since Brinco is one of the Bankers Trust operation a "merger" instead of a more prominent links in the British-Canadian RIIA "sale," thereby preempting a Fed role in the sub­ political intelligence and drug running chain. versive transaction. Set up by Lord Beaverbrook and Winston Churchill,

The real Philadelphia mainline

It is not every day that the local Pennsylvania press political-economic warfare operation against treats its readers to lengthy polemics on the alleged America. merits of the "invasion of foreign banks" into the area. But then it is not every day that Philadelphia The "Pennsylvania connection" and Pittsburgh are the twin targets of an aggressive, Even a summary review of the most essential facts in tightly coordinated British-Israeli banking deploy­ the Leumi-Haopolim-Barclays affair shows it to be the ment like the one that's occurred over recent months. crux of a very black operation indeed. what might be Since June, the Bank Leumi and the Bank called the "Pennsylvania connection." Haopolim. two bright stars in the British Barclays­ Take the case of the Pennwalt Corporation. A large Charterhouse Japhet network that are otherwise two pharmaceutical firm. Pennwalt is considered by some of the big three Israeli banks. moved to open branches a monument in Philadelphia. Located at 16th and in Philadelphia. And Barclays Bank itself. together Parkway, the Penn walt Building squats on grounds wit Lloyds Bank of London and the Dutch Allgemeine owned by the Philadelphia Yearly Meeting of the Nederland Bank. moved to set up shop in Pittsburgh. Religious Society of Friends. and also houses. in Why the rush to get in under the wire of the Inter­ addition to the Canadian Consulate. the law offices of national Bank Act pushed through the Congress by Montgomery. McCracken. Walker and Rhodes - the Illinois's Senator Stevenson this summer? top Quaker law firm in Philadelphia. which represents "Some worry." noted the Philadelphia Bulletin of the Philadelphia Foundation. The Penn walt Board November 8. but not Frederick J. Heldring. president sports such well-connected directors as Dr. Jean of the Philadelphia National Bank. Declaring "little Crockett, chairman of the Finances Department of the opposition" on the part of Pennsylvania bankers. Held­ Wharton School of Economics and a director of the ring asserted his enthusiasm for the invasion. These Federal Reserve Bank of Philadelphia. and Mr. foreign banks will stimulate Pennsylvania exports. James Bodine, former president of First Penn­ Heldring told the Bulletin. sylvania Bank and currently its "advisor on founda­ The Bulletin feature was not simply the humble tion affairs" who works closely with the Philadelphia personal opinion of Mr. Heldring. who is also chair­ Foundation. man of the so-called "International City Project." and This same Pennwalt Corporation. according to Drug a member of the Dutch banking family that has for Enforcement Agency officials. together with the generations managed the Rothschild outpost in Smith Klein pharmaceuticals company. produces two­ Holland. the exclusive Pierson, Heldring and Pierson. thirds of the amphetamines produced in the United In fact. reliable observers believe that Mr. Heldring States. was hurriedly trotted out to try to head off potentially • In 1972 the DEA accused Pennwalt of "making an explosive charges that the foreign banking influx is a end run" around U.S. legal authorities by shipping

November 21 -27, 1978 EXECUTIVE INTELLIGENCE REVIEW ECONOMICS 13 amphetamines to Mexico, where Pennwalt also has plants, from its Rochester, New York plant, for reship­ ment into the United States. DEA cited numerous accounting discrepancies of Pennwalt as evidence. (It Israeli banking - British is most interesting in this connection to note that the "advisory group" for the Monterrey Group of I Mexican reactionaries - the notorious "hooded ones" ntel l igence operation who act as the Mexican connection for the inter­ national drug economy - operates out of Phila­ The Israeli banking system has been a strategic delphia's Wharton School.) British intelligence net from the beginning of the century, • In November 1976 Mike Wallace featured Penn­ running from the Mediterranean to Hong walt on CBS's "60 Minutes" show. Wallace cited a 1970 Kong and, since the 1960s, to New York City. Its corporate internal memo regarding marketing of function has been and is to conduit funds, some amphetamine diet pills to show that Pennwalt was illegally laundered, some bilked from the deliberately cultivating an addict market. unsuspecting world Jewish community, into diamond­ • In October 1977 Penn walt was fined $200,000 by the and drug-smuggling, terrorism, and political Drug Enforcement Agency for conviction of 17 counts assassination operations worldwide. of "questionable practices" in the production of drugs containing cocaine. The genealogy ·Pennwalt was reportedly ordered recently to close The control of Israeli banking by the forces of the one of its commercial raw opium warehouses (opium British crown predates British colonization of warehoused for the legal hospital-medical market) on Palestine itself. The Barclay family were generations­ the grounds that it was engaged in "leaking" opium old Quaker members of the Order of St. John when illegally onto the streets. they founded Barclays Bank in 1836. Moving overseas in 1910, they absorbed both the Union Bank and the Connections to the top Discount Bank, both of which operated in the Levant At this point, things become interesting. It seems that and Palestine. Penn walt, together with Smith, Kline, and French, Meanwhile, Sir Moses Montefiore, Lord Nathaniel were and Rohm and Haas, the major Pennsylvania drug Rothschild, and the Samuel banking family cooperating companies, contract all their packaging to the little­ closely with the Crown's empire-building known Paco Pharmaceutical Services, Inc., in Penn­ objectives in the Middle East. Among other things, they put up the capital for Zionist Theodore Herzl to sauken New Jersey. And Paco, according to horrified found the central bank of the British colony in Drug Enforcement Agency officials, is the source not only of many of Pennwalts unfortunate "leaks" from Palestine, the Anglo-Palestine Bank - today, Bank Leumi, run by its underwriters, M. Samuel and Co., the legal to the illegal drug market, but of untold and S. Japhet and Co., the London merchant banks. undetected leaks for the other drug majors as well. Barclays took direct control over the J aphet family It seems Paco takes bulk drugs from the during the 1930s and 40s. Today, through the property manufacturers and does the job of packing them into company Slough Estates Ltd., on whose board retail market packaging - a perfect leaking point in Barclays' ex-chairman Sir Robert Barclay sits, the industry, and a perfect way for the legitimate drug Barclays controls the Charterhouse Group of companies to keep themselves from more direct companies, whose top officers are the same as those of involvement in the illegal market. Slough. Charterhouse in turn absorbed S. Japhet and But this same Paco is itself 49.9 percent owned by Co. during the late 1960s, which became the none other than Charterhouse J aphet, which has Charterhouse J aphet merchant bank. The sole offices right in Philadelphia, as well as throughout the surviving heir to the Japhet fortune, Ernest I. Japhet, Far East, where the merchant bank is active in the is today the chairman of Bank Leumi and of all its Hong Kong heroin trade. Charterhouse J aphet, mean­ international subsidiaries, including Bank Leumi while, is not only wholly run by the elite Barclays Trust Co. of New York. Bank Ltd. - but, in turn, runs none other than the Following the creation of the state of Israel, Bank Leumi, through Leumi's Chairman Ernest 1. Barclays spun off the Union Bank, which, through its Japhet ! connections to the old National Bank of South Africa and De Beers, had become the chief financial institution to the Israel diamond trade, to Bank Leumi. Through Bank Leumi, by way of Union Bank, its wholly owned subsidiary - and now Israel's number four bank - some 30 percent of the world's diamond cutting is now financed. Israel's third largest, Bank Hapoalim, the bank of the Israeli-Histadrut (trade-union bloc), was created

14 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW November 21-27,1978 by the Jewish Agency, which from 1917 to 1948 under Both Leumi and Hapoalim boast a long record of British High Commissioner for Palestine Viscount funding terrorism and political assassinations. Leumi Edwin Herbert Samuel, a scion of the Samuel family, Chairman Japhet ahd Hapoalim director Zvi Recheter was the government of Palestine. both sat on the board of the infamous Banque de Ie Credit International (BC!) , founded in 1959 by and run by Tibor Rosenbaum as the central bank of the Narcotics and terrorism Mossad, the foreign arm of Israel's Shin Beth state Bank Leumi's connections to the world diamond and intelligence service. Rosenbaum, who together with gold markets have already plunged it deeply into the other members of the Sonnenborn Institute founded illegal narcotics trade. As is documented in an the Mossad in 1947 at a New York City training center upcoming book by a team of investigators from the for the Haganah, the Israeli army, was the Mossad's U.S. Labor Party, Dope, In c . . !lome 40 percent of the financial specialist. His BCI was set up in Geneva to world's gold and roughly 30 percent of the world's fund illegal arms purchases, theft of nuclear secrets diamond consumption annually go to peasants and and other Israeli intelligence projects. smugglers in Maoist China, the Southeast Asian The BCI also helped set up the Red Brigades "Golden Triangle," and the Indian subcontinent, as terrorists in Italy that murdered former Italian hard-commodity payment for illegal narcotics at the Premier Aldo Moro. The BCI was a major shareholder producer and primary-distributor level. Bank Leumi, through Union Bank, exerts effective in the Basel holding company Capocetto , which is the main financial vehicle of its general manager George total control over the flow of uncut diamonds from De Beers in London to India and on into the Hong Kong Montenello, also known as George Mandel. According diamond market because it finances the entire to a source in a European military intelligence agency, Montenello-Mandel owns the Rome villa in retailing operation, including Bank Union Bank of Hong Kong, the biggest diamond financing bank in the which Moro was held during his kidnapping. Far East, and Bank Leumi New York, which runs the According to the same source, both the Histadrut diamond center in midtown Manhattan. Through its directly and Bank Hapoalim and Bank Leumi, through historical connections to South Africa and the the BCI, for years conduited funds to Capocetto, and Oppenheimer family, Leumi also finances large parts thus to the Red Brigades, well before the Moro of the gold trade in these areas of the world. kidnapping.

police make the most ridiculous ilk, use all sorts of covers, arms Organized cr ime: coverups, they say things that are contracts, construction, and so on, outright lies and absurdities. They as covers for crime. The whole Israelis biggest say, "Such levels of crime could elite of the Labour Party is only exist if there was access to the undoubtedly tied up in all this. profit-maker highest officials, but since there isn't such access, there can't be Q: Does this tie into terrorism In a recent discussion of the inter­ such crime." This is absurd ! opera tions, given the drug angle ? national drug tra ffic, one of the There's no doubt in my mind that A: The Israelis are involved in leading experts on Isra el in the the people involved in financing the drugs, prostitution, and all U. S. , a man with strong ties to Labour Party first, and at the time accompanying crimes, as you Isra eli and European Zionist the smaller-size Herut, were suggest. Parts of the networks I am circles, had th e follo wing involved in large-scale operations mentioning go everywhere, into comments to make: of organized crime ; hundreds of France and South America. To this millions of pounds involved. The very day, the situation exists like Q: What about organized crim e in most intelligent man in the Mapai, this. Years ago, in Eastern Europe, Isra el? Ofer, committed suicide when the Jews were given certain A: My most insistent question is to somebody got on the trail of all allotted jobs. Now, in Germany, what extent the Israeli government this. And the man who was prostitution and drugs are the is itself aware of how extensive president of Bank Leumi, Asher domain of Israeli expatriates, organized crime is in Israel. Yadlin, is in prison. some of them quite prominent Of course the country is Israeli Foreign Minister Moshe people attached to old "freedom­ incredibly corrupt, but something Dayan himself, who keeps aloof fighter" networks. If you would more is happening. Everyone from people usually, is very close check, I'm sure you would find knows, after all, that in Israel to one "Mensch," a nickname for Dayan's son involved in one of there's an ever-growing frame­ the head of organized crime in these drug scandals. work of organized crime. The Israel. Mensch, and others of his

November 21 -27, 1978 EXECUTIVE INTELLIGENCE REVIEW ECONOMICS 15 Also on the Philly mainline : terrorism

"We affirm that the resources of the globe are Gross National Product ...the U.S. should finite, not infinite ...that no one nation can any reduce its consumption of resources by 80 to 90 longer effectively maintain its processes of percent. " production and monetary systems without This is from "Moving Toward a New Society," a recognizing the necessity for collaborative publication of the Movement for a New Society. The regulation by international authorities." Movement oversees all environmentalist. terrorist, and related "radical" activity in Philadelphia. The This is from the "Declaration of Independence" of the Philadelphia Foundation pays for the activities of the World Affairs Council, Philadelphia's local equivalent Movement for a New Society. of the elite New York Council on Foreign Relations. Its chairman, William Boudine, is the brother of a Drugs and the terror command director of Pennwalt Corp. who is also a trustee of the The hard evidence of illegal drug trafficking by Philadelphia Foundation. The Philadelphia Philadelphia's old-line drug firms in amphetamines, Foundation pays for the activities of the World Affairs and strong suspicion of similar trafficking in cocaine Council. and opium, is the starting point for a chain of control that ends with the retail drug trade, terrorism, and "A ...condition for achieving a new society is the crime in the streets of Philadelphia, leading through de-development of the now overdeveloped individuals in high positions in the city's top banks and countries: the U.S. and other industrialized "charitable" foundations. societies must reduce their inordinate One James Boudine, a director of Pennwalt consumption of limited resources ...the most Pharmaceuticals, is the leading connection between important (approach) is a drastic reduction in the the wholesale and street-level sides of Philadelphia's

tional, and social programs. Its his­ Ironically, foundation money is The Phi ladelphia tory of service to established com­ going to the activist groups even munity groups goes back 60 years. though most of the foundation's as­ Story starts to break But in the past 10 years a re­ sets come from old-line, eSQlblish­ latively new segment of the organi­ ment families and are noW ad­ zed community has plugged into ministered by local bankers. On No v. 13 the Philadelphia Daily this funding source - the activist News published a story reporting In some cases, recipients of groups. that the Ph iladelphia Founda tion is foundation money have even been These groups - mostly liberal in funding as many as 300 "p ublic pitted against the bankers. action " groups in Phila delphia, philosophy - are vigorously dedi­ For instance, the Citizens Com­ ranging fr om the Prisoners Righ ts cated to restructuring society mittee on Public Education in through lawsuits, legislative Council to the Boy Scouts. Th e Philadelphia, which has received article did not mention the Mo ve­ lobbying, political action and $115,340 over the past decade, filed demonstrations. ment for a New Society or MOVE, suit last year to block a $50-million however. Here are excerpts: All these activities are legal. And loan from a bank consortium to the all cost money. School District. All eight of the foundation's trust banks were con­ The Philadelphia Foundation, with According to its public reports, sortium members. $32 million in cash assets, is one of the Philadelphia Foundation has the largest community foundations given money to groups such as the In another case, Community Le­ in the country. Each year it gives Welfare Rights Organization, the gal Services (CLS) joined with the more than $1 million to 300 organi­ Prisoners Rights Council and the Consumer Education and Pro­ zations, churches and colleges. Black United Liberation Front. tective Association to fight what Yet few Philadelphians have "All of these groups we feel are CEPA Executive Director Max ever heard of it. worthy," said Sidney N. Repplier, Weiner called "sheriff sales rings" The foundation - the only one of foundation director. "What they do that involved Philadelphia banks. its kind in Philadelphia and one of is part of their act. We feel they Both CLS and CEPA have gotten 250 nationwide - supports a wide conform to (foundation) guide­ money from the foundation .... range of local cultural, educa- lines. " Repplier and (assistant founda-

16 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW November 21 -27, 1978 narcotics traffic. Until 197 7 he was president of the The Yearly Meeting is no more a religious Quaker First Pennsylvania Bank, in charge, among other institution than Seagram Liquors or Emprise are things, of its support of the Philadelphia Foundation. religious Jewish institutions, but serves as a front for Despite his departure from the president's suite, he leading British-allied banking and chemical remains on the board of directors and continues to companies of Quaker origin. The funds of the Yearly direct the bank's "charitable" activities. Meeting are controlled by Robert Boudine - of the What First Pennsylvania and other Philadelphia same Boudine family - in two secret accounts held at banks' funds went for became clear this past summer, James Boudine's First Pennsylvania Bank, and when a member of a local bestial cult, known as shunted to undisclosed activities. Among known "MOVE," killed a Philadelphia policeman with an contributions are a $2,000 donation to the MOVE automatic rifle. Heavily oriented towards drugs and group, before the murder of the Philadelphia terrorism, MOVE is part of a family ofsimilar groups policeman attracted public attention. That that functions under the umbrella of the drug-oriented contribution was discovered only after Philadelphia Movement for a New Society, one of the ugliest police moved in to clean out MOVE's headquarters, concoctions ever to appear on the streets of the United and discovered a receipt for $2,000 from the Yearly States. Meeting of the Friends in MOVE's quarters. The Movement for a New Society and its more Not only has the Movement for a New Society explicitly violence-prone outlets, such as MOVE, produced killers like those of MOVE, but its ideology receive most of their funding from the Philadelphia of drugs, homosexuality, pederasty, and Foundation and two associated funding conduits for environmentalism provides an environment that the Quaker pharmaceuticals firms and the related breeds terrorists. According to its own publications, Philadelphia banks. The other conduits are the the Movement for a New Society provided the cadre William Penn Foundation, controlled by the five who led the "Clamshell Alliance" demonstration at members of the Haas pharmaceuticals family who sit New Hampshire's Seabrook nuclear reactor site in on the foundation's board, and by the Philadelphia 1977. New Hampshire police conducted mass arrests Yearly Meeting of the Religious Society of Friends of the demonstrators after receiving information that (Quakers). the demonstrators planned terrorist action.

tion director) Ruthrauff said dona­ body as well, through taking turns "*acquire an analysis of this tions to activists did not violate this giving each other whole-body society, its problems and how it foundation rule because the Inter­ massages." functions . . . build your own vision nal Revenue Service certified these of what a good society would be The same manual also includes groups as tax-exempt. In effect, like ..." the following advice on achieving the IRS judged that these groups homosexuality, even contrary to in­ More on the "good society" from were not engaged in substantial clination : the Movem ent's "Moving Toward political or propaganda acti­ "Here are some ways in which a Ne w Society": vity .... people ha ve successfully gone about "(The de-development of the removing the blocks to gay United States) will require a wide loving ...fanta size making love variety of approaches, including What they're payi ng with a friend of the same sex. Sleep simpler technology, recycling, through a night with someone of greatly reduced waste, etc.; the for : bra inwash ing the same sex and give each other most important is a drastic reduc­ whole-body massages ....Con­ tion in the Gross National Pro­ From the Movement for a Ne w sider setting a goal of making love duct ...Harde sty, Clement, and Society's manual, "Gay with a member of the same sex Jencks believe that the United Oppression and Libera tion ": within a certain period of time." States should reduce its GNP by 60 to 70 percent. To be reasonably just "Learn eroticism from children ; From th e Movement's and ecologically safe, however, the notice how babies experience their "Liberating Sexuality": U.S. should reduce its consumption sensuality from head to foot. That "*masturbate in front of a of resources by 80 to 90 percent. potentiality is still there for adults mirror Ivan Illich ...argues ...that the too. When cuddling children, in­ "*masturbate with a friend or level of per capita energy con­ clude their genitals lest they get lover present. Watch them mastur­ sumption be above that of the poor the idea that a part of their body is bate and have them watch you. nations, but extremely below the unclean or somehow distasteful. Share information about different present consumption in the United Let them experience your adult ways to masturbate ... States."

November 21 -27, 1978 EXECUTIVE INTELLIGENCE REVIEW ECONOMICS 17 This antisocial organization receives its funds from "There are a number, perhaps a growing number, of the pharmaceutical firms and their bankers, through completely sincere humanist revolutionaries who the Philadelphia Foundation, the William Penn believe that violence is necessary, although Foundation, and the Yearly Meeting's $25 million regrettable, and that only through armed struggle can secret slush fund. The latter comes through the the powerful American Empire be toppled ...it is Philadelphia National Bank, whose president, important that we express solidarity with all who Frederick Heldring, is now so warmly welcoming share our goals," for instance, Susan Saxe and the British and Israeli banks into Pennsylvania. Venceremos Brigade. The William Penn Foundation funds the Movement The Quaker-funded Movement for a New Society to the tune of $40,000 a year. The foundation was also published a series of frankly pornographic established by the Rohm and Haas pharmaceutical manuals for their "revolutionaries," including titles company. The Philadelphia Foundation provided the such as "Gay Oppression and Liberation, " Movement's funding conduit, Neighborhood "Liberating Sexuality," and "Take Heart - All Those Resources West, with $6,472 in recorded funds in 1977. in the Struggle." These publications advocate That foundation was founded under the auspices of pederasty, "multiple sexual relationships," and officials of the Fidelity Bank of Philadelphia Banking public masturbation. "Gay Oppression and Corporation. On the Fidelity Bank's board is John C. Liberation" reports that "nongays in the Movement Haas of Rohm and Haas ; its chairman is Howard C. for a New SOCiety have made great strides recently in Petersen, who also sits on the board of Rohm and reducing their complicity with heterosexism." This is Haas. not only a breeding ground for the dope traffic and terrorism, but an expression of the cult existence Such good Friends? prescribed by the original masters of the narcotics How little the operations of the Philadelphia Society of traffic. And it is the bottom line for the William Penn Friends resemble the religious principles of and Philadelphia Foundations. Quakerism is evident from one fact : their Charterhouse Japhet's presence in the middle of this Philadelphia offices house the headquarters of Mid-Atlantic zoo is the link back to the British (1) the Venceremos Brigade, the mother monarchy and its court finances. The leading Quaker organization for the terrorist Weathermen; banking families in Philadelphia allied themselves to (2) the Susan Saxe Defense Committee, which the Baring bank and the dope traffic in the first years conducted legal efforts on behalf of Weatherwoman of the American Republic. The top British banks bank robber Susan Saxe; include old Quaker families, who have been (3) the Puerto Rican Socialist Party, which represented in the United States for two centuries. officially supports the terror-bombings of the so-called Britain's largest bank, Barclays, has been in Quaker FALN. hands for 200 years. The "Religious Society of Friends" designation is a The appearance of "Quaker" and "Jewish" misnomer. The Philadelphia Quakers operate through financiers at the center of the Philadelphia drug-and­ the American Friends Service Committee, an terror nexus is therefore no accident. Neither has any organization that religious Quakers have despised more to do with those two religions than does the since its founding. Movement for a New Society's perverted gabble. The American Friends Service Committee's spawn Under the control of the British oligarchy, they are the in the Movement for a New Society, funded through instruments of a subversion plan that, in the words of Quaker accounts, is explicitly proviolence. Its 197 6 one of the Movement for a New Society's badly printed pamphlet "Moving Towards a New Society" says : tracts, wants to "topple the American Empire."

18 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW November 21·27, 1978 III T•• NATIOIIAl ).

Israeli H-bomb aimed at the EMS London counters new monetary system with promises of war

With the Jan. 1 deadline for the activation of the Euro­ risk World War III" to sabotage the EMS. It is clear pean Monetary System but six weeks away, the City of from recent events that they are deadly serious. London has activated its last reserve options for an The following report bares the H-bomb scandal, eleventh hour sabotage of the EMS. then looks behind it: at Carter's war-austerity budget, In order to engender a new Cuban missile crisis­ the EMS's latest affront to London, Europe's reply to style thermonuclear showdown between the United U.S. confrontationism, and the war drive in the States and the Soviet Union in the coming weeks, Mideast. Great Britain has activated the ultimate threat - an Israeli nuclear strike destroying Persian Gulf oil supplies. This nuclear strike threat is the unspoken but speci­ 1. How U.S. traitors fic content behind the flood of well-publicized state­ ments issued by official and unofficial representatives of the Royal Institute of International Affairs in the gave Israel the H-bomb last week that the EMS is a "war issue." Israel's nuclear capability and intent are neither Like most major intelligence discoveries, this story fiction nor bluff. Yet Israel's possession of atomic began with what seemed to be the tail of a mouse, and weapons, while true, is in itself only a cover story. ended up hauling in an elephant. A team of U.S. Labor What we begin to expose in the following report, and Party investigators, tracking a group of sleazy will show in greater detail in our next issue, is the body individuals who used their credentials in the Zionist of evidence proving two interrelated and crucial facts. lobby to set up a phony front organization to promote First, Israel's actual nuclear strike capability is an fusion energy, have uncovered the spy scandal of the H- bom b capability. Second, Israel got the H-bomb century. through a high-level British-Israeli intelligence spy What we are previewing here is the astonishing ring that was and is still functioning in the United dossier of the nest of traitors who stole America's States. most fundamental atomic secrets, and gave Israel the In good late 1940s prose ; "Israel stole the secrets of capability to manufacture hydrogen bombs. The spy the Bomb from us ." nest centers around the "Nuclear Club of Wall The key to Britain's plan to employ the "Israeli Street," a "covert" organization by description of its card" is the current well-advanced process in the own members. Operating under the cover of partner­ Carter Administration, through which the U.S. is ships in Wall Street brokerage firms, executive being propelled, through the efforts of British agents positions in industrial companies, and hole-in-the-wall of influence who control the National Security Council, "scientific" firms scattered through the New York into a face-down against the Soviet Union. The latest Metropolitan area, members of the Nuclear Club of White House-Administration policy decisions, and Wall Street are the core of the atom spy network of press signals now reaching avalanche proportions, Israel's foreign secret intelligence, the Mossad. provide more than ample documentation that the U.S. These men are the most dangerous traitors in ship of state is being steered by Brzezinski, Kissinger, circulation now in the United States. Through their and Schlesinger perilously close to a thermonuclear efforts, Israel has the means to provoke a third World waterfall. A series of White House decisions which in War and destroy the United States. sum mean that a crisis-threatening rearmament drive To squelch any frenzied action by the Israelis, is already underway, and sudden press warnings of a namely starting a nuclear war, the U.S. Labor Party new Cuban missile crisis, form an unmistakable executive has issued a call for minimum measures for pattern. world security : that the Soviet government insist that Several high-level British-Zionist spokesmen have a nonnegotiable feature of the current round of privately remal'ked of late that "we are prepared to Strategic Arms Limitation Talks be the immediate

November 21-27. 1978 EXECUTIVE INTELLIGENCE REVIEW INTERNATIONAL 19 nuclear disarmament of Israel ; and that both super­ Energy Foundation. The same little cabal got together powers declare that if Israel explodes a nuclear over the summer - at what Nuclear Club Chairman weapon of any sort in the Mideast or anywhere else, it Myron Wein described as a "supersecret" meeting ­ will immediately be annihilated by nuclear counter­ in the boardroom of the Dreyfus Corporation at 600 attack. Madison Avenue, on July 31. One facet of their agenda The following report summarizes the evidence. was a scheme, to be funded by former Kayser-Roth Corporation chief executive Alfred P. Slaner, for a The membership roster new publication to undermine the FEF's popular Fusion magazine. That led the investigative team The membership of the Nuclear Club of Wall Street right to the center of the Mossad spy-nest. reads like a Who's Who in Israeli intelligence, with a The path of the Nuclear Club's bagman Alfred special focus on scientific, uranium-mining and Slater criss-crossed that of the identified top associated capabilities. Its operating chief is Marvin leadership of Israel's Mossad in a dozen different Rose of Allied Chemical, the firm created by Bernard ways - before Slaner and Mossad spy Dr. Hora Baruch and Lazard Freres founder Eugene Meyer showed up in the Dreyfus Corporation's midtown after World War I. Company founder Baruch was the boardroom. Fellow board member of Kayser-Roth American instrument for a British scheme to limit Disque D. Deane, limited partner of Lazard Freres, peaceful development of nuclear energy in the United was an identified ringleader of a July attempt to States, dubbed here "The Baruch Plan." Still a major murder U.S. Labor Party Chairman Lyndon H. stockholder and a director is Eugene Meyer's LaRouche, Jr. A professional Mossad hitman, �ho daughter, Katherine Meyer Graham, publisher of the served five years in a Spanish jail before he was freed Wa shington Post, and within the press, the leading in an apparent spy exchange, was brought in for part supporter of the American Zionist lobby. of the job: Zwi Aldoubi. The operation was President of the Nuclear Club of Wall Street is coordinated through old Mossad (and earlier Jeffrey Friedman, partner of the Dreyfus Corporation Haganah) professional hitman Nahum Bernstein, who - one of the most important, and best-identified, now operates under cover of the Mossad-controlled American financial conduits for the Mossad. It was "Jerusalem Foundation." Bernstein goes back 30 the Dreyfus Corporation that, through the late 1960s, years, to the old Haganah support operation, the so­ created and employed Investors Overseas Services, called "Sonnenborn Institute," with yet another the creature of Dreyfus employee Bernie Cornfeld, as Kayser-Roth partner : Abe Feinberg. Feinberg, in an "offshore" financial link to Mossad's Director of turn, ran a barely disguised Mossad financial front in Logistics, Geneva banker Tibor Rosenbaum. New York City, the American Bank and Trust, before Irving Harold Sherman, another director of the it went bankrupt in 1976. Former Sonnenborn Institute Nuclear Club, is a past vice-chairman of Becker chief Feinberg became chairman of the American Securities, owned by the top Jewish banking family Bank and Trust after it was bought by yet another Warburg's London branch. Sherman is also close to a Mossad financier, David Gravier. Gravier had bought top New York Zionist lobby figure who served as past the failing, corrupted institution from the present British intelligence station chief in New York City. head of the World Jewish Congress, Philip Klutznick, In the midst of this well-placed group of individuals who operated the American Bank and Trust's Israeli­ appeared, in the middle of last summer, one Dr. government-owned parent company in Switzerland. Heinrich Hora, a German-born Jew of uncertain The litany goes on - and will shortly appear with reputation. Hora had a background that included full documentation - but the point is that the Nuclear dismissals from laser-fusion research organizations in Club's links to Israel - Krumbein, Bernstein, both Italy and the United States, in part motivated by Feinberg, Klutznick, and others - are part of the core security problems, including overeager attempts to of the Mossad leadership going back to the 1940s. Most elicit sensitive information from his Soviet significantly, the Nuclear Club's little circuit nestles counterparts in laser fusion research. For the in to the central Israeli intelligence technology-theft layman's purposes, the field may be understood as the operation : Saul Eisenberg's United Development Ltd. same thing as hydrogen bomb research. A shelf of spy novels could be written about any of Hora is the Nuclear Club's most visible connection these gentlemen. Virtually the whole group got to the Israeli bomb program at the Soreq Nuclear together to bribe half the Argentine government in Research Institute in Israel, widely known to be the 1975 to buy Canadian instead of American nuclear production center of Israel's atomic weapons. Hora's reactors ; Gravier and Feinberg passed the money for twin on the Israeli side of the equation is Dr. Aaron D. Saul Eisenberg, identified as a top Mossad operative Krumbein of the Soreq Institute, Israel's chief nuclear in the Sept. 11, 197 8 Wa shington Post. bomb specialist. In this investigation, Hora and Krumbein first s�owed up as a team during a 197 6 attempt to Israel and the H-Bomb dismantle the In terna tionalJour nal of Fusion Energy The press has pumped out gallons of nonsense about a scholarly publication sponsored by the Fusio� Israel's atomic capability, including black-

20 INTERNATIONAL EXECUTIVE INTELLIGENCE REVIEW November 21 -27. 1978 propaganda dis information about ships full of cover, move about in perfect freedom. Their political enriched uranium disappearing in the Mediterranean allies at the center of the American intelligence Sea and ending up in the port of Haifa. The straight establishment - such as Zionist lobby agents Joseph facts of the matter are that (1) Israel has not only an Churba of Air Force Intelligence, Churba's former atomic weapon capability, but a hydrogen bomb chief Maj .-Gen. George Keegan, and "Pentagon capability ; and (2) the above-named individuals, most consultant" Edward Luttwak, among others - have of them traitors to their native or adopted United full access to America's thermonuclear secrets. Their States, got it for Israel. contacts, of the type of Aaron Krumbein and Saul Israel's capability must be evaluated first from the Eisenberg, are Mossad's top specialists in scientific standpoint that the Israeli public threat to employ nu� espionage. And their crony Bloomfield set up the clear weapons against Arab oil fields is deadly FBI's counterespionage ! serious. Not a single military expert in the world -David Goldman doubts this. Every military planning staff in the industrial sector is familiar with scenarios for Israeli destruction of the Persian Gulf, on which the survival of the West depends. These scenarios, however, pose special problems. What Israel is threatening to do if provoked - and 2. Carter1s budget military experts believe she will do - is not possible with one or two small fission warheads. Knocking out . 5 . the flow of oil would require massed nuclear weapons prepares U for war in the order of one of the acknowledged minor nuclear powers. But Israel does not have the industrial The United States is now on the path chosen more than resources to produce the large volume of enriched 40 years ago by Adolf Hitler's Third Reich: financing uranium to produce sufficient fission bombs to create short-term war preparations by cannibalizing the real this widely evaluated capability. economy, reducing overall industrial productivity, Isra el has the technology and scientific manpower and gutting living standards. to produce fusion bom bs, howe ver, employing the This is the meaning of Jimmy Carter's announce­ scarce fissionable material to trigger a much larger ment at a president.ial press conference last week amount of explosion - the hydrogen bomb. Provided that his Administration's fiscal year 1980 budget that Israel's Soreq Institute could obtain detailed would include a 3 percent increase in the military plans from the United States, producing hydrogen­ appropriation, on top of its built-in inflation escalator bomb weapons would not present major technical - in round figures, a $12-15 billion total arms boost. problems: it is the only possible course of action Meanwhile, Carter indicated nondefense expendi­ within the parameters of current Israeli military tures would be slashed. Some $15-20 billion below policy. indeed, such devices can be tested through current services levels will be necessary to finance the explosions of up to five kilotons of TNT equivalent and military buildup, said Charles Schultze, chairman of escape seismic detection. An explosion of that size Carter's Council of Economic Advisors. would be sufficient to test the fission device used to Schultze emphasized that merely holding down do­ ignite the larger fusion reaction, and the first mestic spending will not be enough. Congress will be explosive wave of fusion material. From the asked to pass laws curtailing and eliminating some standpoint of American security and elementary existing federal programs - education, pensions, intelligence judgment, it may be taken for proven that jobs, and so on - so that more can be spent on Israel has thermonuclear weapons. weapons. In the boardroom of the Dreyfus Corporation, the The very conscious decision to foster war production Nuclear Club ring could not avert a smug laugh when at the expense of actual economic development and the Federal Bureau of Investigation warns that Soviet social well-being was made explicit by President spies are loose in the United States stealing nuclear Carter's closest advisor, Special Assistant Hamilton secrets - all of which, of course, the Soviets have long Jordan, at a breakfast meeting with reporters Nov. 14. had. One of their number, Haganah hitman Maj . Louis "It's a changed picture since 197 6," declared Jordan, Bloomfield, Abe Feinberg's old comrade-in-arms "defense has a higher priority. Because of the high from the 1940s, set up the FBI's "Division Five," or rate of inflation a lot of things are going to have to take counterespionage group, under British Intelligence a back seat until we get a more stable economy." direction during World War II. Not only did Making explicit that this means a drastic change in Bloomfield, creator of Mossad's "Permindex" living for the U.S. population, Jordan added, "The assassination bureau, create Division Five under a effect of budget tightening has not been felt yet. You'll British deal with J. Edgar Hoover ; he cleared all new hear the screaming pretty soon, I expect. There'll be a personnel as late as the 1960s ! lot of well-organized and well-intentioned groups that The real atom spies, operating under business we're going to have to say 'no' to."

EXECUTIVE INTELLlG.ENCE REVIEW November 21 -27, 1978 INTERNATIONAL 21 Jordan's pronouncements were echoed by the The "guns, not butter" budget is only one of a President's chief domestic advisor Stu Eizenstat, to number of signals that the Carter Administration is on the National Press Club that same day. "The a suicidal confrontationist course. A secret White President means business and is willing to run the House document, government officials revealed this political and other risks that are associated with the week, calls for a massive gear-up of the U.S. civil effort to fight inflation," he said. Asked about Carter's defense program to protect 140 million Americans in a change in priorities, Eizenstat declared, "What it nuclear war. The program will more than double over recognizes is that every President when he comes into the next five years and expend $2 billion to make office has certain goals and no President can blindly nuclear war "thinkable." Coupled with this, the follow them ." Defense Department has drafted a final version of its The origin of this austerity-confrontation policy was supplemental budget, which includes funding for the admitted by Barry Bosworth, head of the Council on full-scale development of the MX land-based missile Wage and Price Stability, before the Detroit and the Trident 2. The MX missile, which would be Economic Club Nov. 13. After declaring that there virtually impossible to detect if it is made mobile as may indeed be a recession in "the government and proposed, would completely destabilize SALT nego­ private sectors," Bosworth stated, "Great Britain is tiations and as such has been considered a parti­ the only country that can be used as a model. Great cularly provocative weapon. Britain has been very successful in cutting inflation ; Coinciding with these announcements, the we've modeled our program on this policy." Pentagon's research director held a press conference to warn the Soviet Union that U.S. production of cruise No solution to inflation missiles, which are set to be deployed in 1982, would This austerity plan will actually increase inflation. make the Soviet's $100 billion air defense network Military spending does not increase the real "totally useless." "I would be very nervous about productive power of the U.S. population one iota - it is cruise missiles if I were a Soviet defense planner," he pure waste, and thus (except for the potential useful­ declared. ness of certain aspects of military research and Adding to the confrontation climate, columnists development for realization in the civilian industrial Evans and Novak, who traditionally promote British economy) purely inflationary. policy for the U.S., agitated Nov. 15 for a Cuban For those deluded conservatives and military men missile crisis replay. The columnists demanded that who believe the Carter "guns not butter" budget is Carter follow Kennedy's example in staging a show­ necessary to meet their assumed Soviet threat, one down with Moscow over the presence of MIG 23 planes might also point out that this approach loses wars. on Cuban soil. Simultaneously, the wire services tried Short-term production-in-width strategies geared to to sensationalize a Nov. 14 State Department response wonder-weapons, blitzkrieg wars, and the projection to a question on this issue, by running stories labeled of James Schlesinger's beloved aura of power, may "urgent" revealing the State Department's "close guarantee a U.S. confrontation with the USSR. It is study" of the "treaty violation" represented by the equally certain that shortly thereafter the Red Army MIG 23s. will occupy what remains of the United States. And, although Carter himself still speaks of steering It is the total in-depth military-industrial capability a SALT II arms-control treaty with the Soviets of an entire population, its ability to strike harder than through the Senate next year, the negotiations them­ the enemy at each successive phase of war fighting selves have been on hold for nearly a month. which wins wars, as the United States and the Soviet Last week came the announcement that the U.S. Union jointly proved in defeating Nazi Germany. If would make no objections to any Western European U.S. military planners have forgotten this lesson, the nation selling defensive weapons to the Peoples Kremlin has not. Republic of China, and would allow the Western Nevertheless the Carter Administration is still nations' COCOM group, which must approve potential occupying itself with dangerous fantasies about military-related sales to Communist countries, to be fighting a successful limited nuclear war against the bypassed. Great Britain is already planning to sell USSR. It was announced yesterday that the Pentagon Harrier "jump-jet" aircraft to Peking, and rumors of has ordered a new study on how to fight such a war in other major weapons deals with China are filling the Europe ; Defense Secretary Harold Brown has news media. endorsed the concept as an option though he is Yet Soviet leaders, including President Brezhnev, skeptical that a nuclear conflict can be contained. The have warned that SALT and detente are finished if the Soviet leadership, of course, is massively on record West starts arming China against their country ; only that any use of nuclear weapons means full-scale last week Georgii Arbatov, head of the Kremlin's thermonuclear holocaust. USA-Canada Institute, repeated this warning.

22 INTERNATIONAL EXECUTIVE INTELLIGENCE REVIEW November 21-27. 1978 IMF-World Bank by introducing fixed exchange rates - government established rates for trading 3. EMS pries London's currencies backed by centrally held gold reserves - within the European Community. European leaders are also taking every avenue to marginally strengthen grip from Third World and stabilize the U.S. dollar. pending a decision by U.S. leaders to join the EMS. In a bold confirmation of the European Monetary In a speech before the Foreign Press Association System's political aims, a widening group of de­ Nov. 13. Schmidt stated that only one year ago. he too veloping and advanced-sector nations appears to be thought that it would be impossible for Europe to link joining forces to crack open London's 200-year-old its currencies unless "divergent" inflation rates and stranglehold over international commodities trade. budget deficits were first brought under control (per Just as European Central Bankers made it public the commands of the IMF). Today. however. he is Nov. 14 that all the outstanding technical problems certain that "a return to fixed exchange rates is connected with implementation of the EMS on Jan. I , indispensable to prevent a disintegration" of the 1979 had been resolved. European leaders behind the Community. creation of the EMS revealed moves underway on Schmidt also praised the recently concluded $30 three continents to bring developing nations rapidly billion swap agreement between West Germany. into the EMS and its development bank. the European Japan. and the U.S .• to provide the U.S. Federal Monetary Fund. Reserve and Treasury foreign currency to support the Already Zambia and Malaysia. both former British chief victim of the British game of floating exchange colonies. have revealed plans to use the EMS to rates. the floundering U.S. dollar. "Were (the swap finance exports to Europe of copper and rubber. measures - ed.) taken immediately after the Spokesmen from both nations stated their economic summit in July." the occasion on which determination to bypass London's gambling casino­ Schmidt announced the founding of the EMS to styled commodities exchange. and attract capital President Carter. "the dollar would have been spared investment from France and West Germany. much of its troubles," he explained. The full range of trade and cooperation deals under The commitment by EMS-allied forces to stabilize discussion between the EMS founders and Asian the dollar from abroad was underscored by Japan this nations will be revealed towards the end of this week. week. Japan. which has contributed more than any at the conclusion of talks in Bonn between foreign other nation to bringing the Third World and EMS ministers from the ASEAN organization and West member nations into alliance. announced that as part German Chancellor Schmidt. of its "swap" agreement to lend the U.S. several Results of parallel significance are expected from billions of dollars worth of yen. Japan is prepared to the tour of Latin America by Spain's King Juan share "50-50" any foreign exchange losses which the Carlos. beginning Nov. 17. Just last week Spain U.S. Treasury is forced to assume, in case the dollar officially confirmed that. along with Greece and falls. Ireland. it will be joining the EMS on Jan. 1. By assuming this responsibility, Japan is asserting French wire services reported Nov. 15 that the its own. and West Germany's, right to increasingly overriding desire of Spain's leadership is to now use orchestrate U.S. policy from the outside, to counter Juan Carlos's meetings in Mexico. Peru. and the powerful British influence inside Washington. Argentina to launch an Ibero-American Community of Within Europe, the hegemony of the EMS is Nations led by Spain and modeled on Europe's EEC. irrevocably certified. On Nov. 13. the Nordic Council, Spain. which will soon also be a full member of the a Parliamentary group from Denmark. Norway, EEC. would then serve as the bridge for financing Sweden. and Finland, officially endorsed the new high-technology European exports to Latin Amerca. system and assigned those nations' finance ministers to elaborate a plan for monetary coordination between Stable trade and development loans Scandinavia as a whole and the EEC. Clearly Chancellor Schmidt and French President On Nov. 14, Austria announced its intention to join Giscard. the central figures behind the EMS. are the EMS. Italy is being rapidly consolidated into the determined that a visible consensus will have been French-German program by stated commitments to created by Jan. 1 throughout the Third World favoring pour capital investment into the devastated Southern the EMS over the International Monetary Fund and Italian region through the multibillion dollar World Bank. The latter British-run enforcers of European Monetary Fund. genocidal austerity use the argument that nations must be denied resources for development until they No bailout for London have proven their creditworthiness by balancing their The only nation that Schmidt et a1. have offered budgets and reducing inflation. nothing to as an enticement to join - and according to The EMS will immediately begin to overshadow the Schmidt on Nov. 13. the only European nation unlikely

November 21 -27, 1978 EXECUTIVE INTELLIGENCE REVIEW INTERNATIONAL 23 to join - is Britain. Over the last two weeks, the following chain of events unfolded. 4. Over the weekend of Nov. 4-5, the Royal Institute of Europe says 'no International Affairs held a conference to decide whether or not Great Britain would enter the EMS by thanks' to arms buildup Jan. 1. The elite of London banking left that conference preaching the need of UK adherence. The For the second time in two months, the West German characteristic line, as typified by Lloyds chairman government has found it necessary to denounce Jeremy Morse, argued that the EMS could only be officially the written allegations of a British subject, "improved" from within, with London a full-fledged Robert Moss, concerning West German defense policy member. Prime Minister James Callaghan spoke to matters. Parliament in positive tones on the issue. A spokesman from the West German Defense Just one week later, Prime Minister Callaghan was telling the audience at the Nov. 13 Lord Mayor of Ministry attacked Moss for writing in a recent London Daily Telegraph London's banquet that he was pessimistic about article that West Germany would "drastically reduce" all future NATO military whether the country would be able to join the new maneuvers on its territory. "The Daily Telegraph system by Jan. 1 or even at a later point. On Nov. 14, William Solomon of London's REA Bros. authored a may believe in the practice of getting at the truth by piece for the West German Die Welt stating repeatedly printing false and biased information. I do categorically that the City of London bankers were not not believe in such a policy," the spokesman declared. in support of the EMS as it was currently constituted The last time around, Moss had written that certain - belying the testimony of these same bankers to West German Social Democratic Party officials were Parliament just days earlier. secretly conspiring with Moscow to have West What happened? Germany withdraw from NATO. Government For one thing, the West German and French spokesman Klaus Bolling had only one word to government leaders of the new EMS made it clear that describe that allegation: "Baloney." they could not be swayed into providing bailout funds To an outsider, it may seem strange that the West for the industrially collapsed British sinkhole. Said Germans - usually so reserved in their official one highly placed West German official: "We always statements - would bother to single out for criticism Daily have to tell our British colleagues that the European the crankish lies of a writer for the London Telegraph. Monetary System is for the growth of the entire Robert Moss, however, is far more than that. Because he is part of the inner circles of the European economy, not for bailing out London." British oligarchical elite, Moss represents the crucial - Renee Sigerson obstacle to a new economic and military order currently being evolved by West Germany and France. And because Moss is controlled by the same grouping that controls NATO Supreme Commander Alexander Haig and Henry Kissinger, Moss provides the key to understanding the rapid shifts in the offing in Europe's defense posture.

The Moss line Robert Moss functions as the coordinator of the flow of dis information from the British oligarchical elite into the United States news media. Compare, for example, the following statements from his Nov. 13 Daily Telegraph article, "U.S. Defense Policy - Why the SALT Sellers Are Wrong," with what has subsequently appeared in the U.S. media: "Soviet military writers state explicitly that nuc­ lear superiority is politically usable and that the Russians believe that, if they achieve it, they would be ready to carry their advantage to the limit ....This is not to say that the Soviet leaders want a nuclear war. Of course they don't. They want to use evident strategic superiority to pursue their political objectives through a combination of diplomatic pressure, the deployment of proxy troops like the Cubans, and perhaps, in the near

24 INTERNATIONAL EXECUTIVE INTELLIGENCE REVIEW November 21 -27. 1978 future, the deployment of Warsaw Pact (It is an open secret that London, and not Paris or conventional forces." Brussels, has always been the seat of all significant It would be hard to count all the lies and distortions policy decisions within NATO.) contained in this one statement. The aroma, however, Moreover, the rapid expansion of Europe's export becomes particularly pungent when one recalls the markets embodied in the EMS concept necessarily way in which Admir;alStansfield Turner and Zbigniew means that the countries of Europe must make major Brzezinski engaged in outright lying around Cuban commitments to develop the economies of the East presence in the Shaba II affair. Moreover, any bloc countries, as well as to collaborate with these competent military thinker knows that the Soviet countries in developing markets in the Third World. Union would never launch a mere conventional One further implication of the EMS is the fact that assault on Western Europe alone. France, as a cofounder of the system, will necessarily Moss is particularly obsessed by the role of West begin to resume her proper role in the formulation of Germany in European defense policy-making: European defense policy. "According to my NATO sources, Chancellor Under these conditions, any massive buildup of Schmidt's decision to receive Mr. Brezhnev in arms and troops in Central Europe is a sheer waste of Bonn was a direct consequence of Mr. Carter's time and money. It has already been unofficially indecision on the neutron bomb and the announced that West Germany has flatly turned down embarrassment it caused Herr Schmidt a NATO proposal to increase NATO's European personally. " deployments by eight new mobile divisions. Instead, His "NATO sources" are incorrect, of course. the West German Defense Ministry has just Schmidt's primary consideration during his historic announced a five-year plan for its army that will keep meeting with Brezhnev last May was the signing of a troop levels the same, with only three new brigades to 25-year economic and technological cooperation be created out of present troop strengths. treaty which would create the long-term basis for In short, the fate of NATO as a credible institution peaceful relations through massively expanded trade. for European defense hangs in the balance during the Another part of Moss's line on West Germany oozed upcoming months. This - and not Robert Moss's into the columns of the French daily Le Figa ro. That maunderings - is the background for understanding newspaper's Bonn correspondent strongly suggested the recent unprecedented disputes between West that the new Soviet ambassador to Bonn, Vladimir German government officials and NATO Supreme Semyonov, had been sent there solely for the purpose Commander Alexander Haig. of "negotiating Germany's neutrality" and Haig was recently interviewed by Jacques "detaching Bonn from the Atlantic Alliance." "Isn't Guilleme-Brulon of the daily Le Figaro. Guilleme­ Semyonov bringing in his diplomatic pouch a new Brulon reported. version of the old neutralization plan, only this time by " ...When I brought up the recent criticisms by the detour of disarmament?" the correspondent West German Defense Minister Hans Apel of the asked. big NATO maneuvers in September which, under Chancellor Schmidt himself has refuted this the code name 'Autumn Force,' had mobilized particular slander. Speaking over Stuttgart radio he about 325,000 men from Norway to Turkey, the said that the new Soviet ambassador would be doing General refused to discuss the differences 'which no such thing. "Leonid Brezhnev and Andrei Gromyko do not exist in effect' between Hans Apel and know perfectly well that that is not possible." NATO. But he added caustically, raising his hands in the air, 'Oh, you know, it's nothing new. The The momentous shift of the EMS military make proposals and the politicians make What upsets the West German government about decisions.' " these statements, however, is not the fact that they Detente, according to Guilleme-Brulon, are stinking lies, but rather how they function to "leaves him stone-cold, insofar as he feels that it obscure a momentous shift in Europe's military is an instrument which can function according to status, which will occur Jan. I , 1979 : the the ingenuity, talent, and especially the will of establishment of the European Monetary System. those - the politicians - who are, by definition, in The concept behind the EMS - high rates of capital charge of using it." formation and massive expansion of trade based on stable currency rates and cheap credit - is directly in Haig aims at the Third World opposition to the no-growth program Britain is On the other hand, Haig heatedly defended another currently attempting to impose upon the United possible use of NATO : States. Ever since the end of World War II, Britain's "I would like to stress that our deterrent is still credibility as a viable nation has been staked on the convincing ...but I also insist on warning you, credibility of precisely this austerity model. The since it is my duty : the Soviets' forces have establishment of the EMS is a direct threat to the become global, notably their naval forces. They "special relationship" Britain has enjoyed within the are, in effect, capable of playing an offensive role NATO command since the alliance's establishment. in the peripheral regions of the Third World,

November 21-27. 1978 EXECUTIVE INTELLIGENCE REVIEW INTERNATIONAL 25 among others. We must especially not make any What will follow NATO? bad calculations as to the Soviets' intervention Another implication of the EMS not to be overlooked is capability in the Third World. in the short term." the fact that many of the Mediterranean countries The French and West German governments have may be participating in the system from the very already explicitly debunked Haig's interview point by start. Last week the Nordic Council (consisting of all point. French Defense Minister Yvon Bourges told the the Scandinavian countries plus Iceland) also gave National Assembly Nov. 7. "Never mind. we French their full support to the EMS and advised their finance believe in detente," when asked about the interview. ministers to work out a proposal for concrete On the same day a spokesman for the West German collaboration. In military terms. this means that Haig Defense Ministry said at a press conference that his and his mentors can say good-bye to another of their government is not alarmed by Haig's statement pet projects : the "weak flanks" of NATO. On cue. because NATO-linked writers in the daily Fra nkfurter "all military men call for increased armaments AllgemeineZeitung have begun to issue expressions of and criticize the government for doing too "growing concern" over the postponement of military little ....Of course we will continue to develop budget increases in both Norway and Sweden. defense. but at the same time we will continue to None of these considerations. however. answers the talk to the other side. The current situation is most important question of the future of European forcing the present rates in armament expansion. defense: if NATO ceases to be a credible institution. but this is not where the people really want to go." what will replace it? At a more recent press conference. West German Certainly the cornerstone of the new institution will Foreign Minister Hans-Dietrich Genscher repeated be French-West German collaboration in the EMS ­ his promise that his country will never tolerate the with or without support from the United States. In the " transplanting of the East-West conflict into the Third admittedly linked sphere of disarmament. France's World" - a policy which has won West Germany proposal for new comprehensive European many friends and business partners in the developing disarmament negotiations in the context of the sector over the past months. Helsinki agreements points in the right direction. So

sians must be made to measure our The Administration is simply not Using suicide to readiness without ambiguity. gauging the mood now in Israel. If scare the Soviets this ignorance continues, the Q: Th en how do you evaluate government won't last long. and recent European determination to will be replaced by a lot less tem­ Ha ns Morgen thau. chairman of the improve trade and other relations perate one. No Israeli government Na tional Committee on American with the Soviets - what some can accede to demands for linkage. Foreign Policy, made these re­ people refer to as "Finlandi­ I know from expressed views of marks in a recent interview. zation "? members of the Israeli Cabinet. in A: Well, the Germans have always private. what the mood is. and they Q: Wh at is your assessment of the had an eastern option. but under simply won't accede to the linkage effect of Camp Da vid on the U. S. the present circumstances they idea. Nor will the Knesset. posture toward the Soviet Union won't go East. The Europeans have The Administration is asking Is­ globally? to be convinced of our deter­ rael to give up all its defensible A: The Soviets have been sus­ mination to back them up. It is not borders. in a way such that by 1985 piciously quiet on the Middle East popular to pose it in this way these Israel will be faced by an Arab coa­ until now. But now they see a pos­ days, but the key question is. "Will lition with arms greater than all of sibility to try to break the Camp we blow ourselves up to save NATO put together. This will make David agreements by pushing Iraq Europe?" And the answer here is a new war soon much more likely. and Syria into conflict with Israel. decisively "yes" at this point. The behavior of the U.S. is un­ What we must do is apply the same conscionable. We need a strong Is­ readiness as we evidenced in the . In a recent statement to a pro­ rael to stop the Soviets. Israel's Isra el group, retired Gen. George October '73 war. We must put to the being strong is the only thing that test the determination that. if the Keegan made thefo llo wing attacks has kept the Saudi monarchy in Russians make a move to back up on U.S. support for a Camp Da vid power. Syria and Iraq. such as by air­ "linkage " between the Sinai and And keep in mind what will lifting troops. we will go on general West Bank-Pa lestinian com­ happen if this government falls. nuclear alert as in '73. The Rus- ponents of theac cords. Nothing stable could replace it.

26 INTERNATIONAL EXECUTIV£ INTELLIGENCE REVIEW November 21-27, 1978 also does the proposal made by Soviet Foreign Minister Andrei Gromyko on his recent Paris visit to integrate all the nuclear nations into the current SALT II negotiations. 5. Pushing a U.S.-USSR A more comprehensive solution was recently proposed by Paul Granet in the French daily Le Figaro. Basing his ideas on those of Trade Minister Mideast showdown Jean-Francois Deniau, Granet wrote: Current efforts to set the stage for a U.S.-Soviet "Political Europe is only possible in confrontation are, in the Mideast context, the direct independence, and we cannot talk about European response to growing consensus in the Arab world and independence as long as NATO exists ....In this Europe that reconvening the Geneva peace talks, area, one can only advance suggestions with rather than the Camp David fiasco, is the proper prudence ...but finally, wouldn't it be possible to forum for negotiating a peace settlement. arrive at a joint political Europe in those sectors With the Camp David accords fast disintegrating as which come into play in defense policy: a result of Israel's fanatic refusal to "link" the West computers, weaponry, space and nuclear? Bank-Gaza Strip issue to a bilateral settlement with Couldn't we endow Europe with a permanent Egypt over Sinai, elaborate efforts are afoot to under­ conference of Ministers and a permanent group to cut international pressure on Israel that could topple investigate and evaluate crises (which would have nothing to do with NATO's institutions)? Are such the Begin government. Israel has its back to the wall. Its backers know this, perspectives utopian? Times have changed." and are out to force the U.S. into line behind Israel's - John Sigerson war government by raising the spectre of the escalating Soviet threat to the Middle East. However, the principle Zionist excuse - that Israel must fight to survive as a nation - now stands

You would have chaos, one govern­ Presumably, the State Depart­ Washington Post syndicated co­ ment after another will fall, and Is­ ment prefers to encourage Arab lumnist Joseph Krait boldly called rael will be like the French Fourth solidarity rather than to strengthen lor the U. S. to lay oflI sra eI and lor­ Republic or like many recent situa­ the pro-Western regimes of the get about a comprehensive peace tions in Italian history. area. As in the past, this approach settlement. In a No v. 14 op-ed, plays directly into the hands of the Krait points out that insistence on radicals and Moscow. American an overall settlement may bring overtures to Damascus will be used down Begin 's intransigent coa­ Nix to comprehensive as a weapon against Cairo and as lition. peace proof that no "genuine" peace is possible without the cooperation of Putting new pressures on Israel at Th ese portions of a commentary by Syria, the PLO and Moscow. This is this time ...makes little sense. Joseph Ch urba, former intelli­ ecisely the disastrous formula The parts of the agreement that gence analyst for the Air Force pr envisaged in the Soviet-American make for . pressure - the parts chief of staff. appeared in the No v. statement of October, Ob­ relative to Jerusalem and the Pa­ 15 Baltimore Sun: 1977. servers will recall that joint com­ lestinians . - cannot be immedi­ The Carter Administration's cur­ munique as a major factor in ately operative anyway. Sadat does rent interpretation of the Camp prompting Mr. Sadat's journey to not need · concessions on these David accords is much more Jerusalem last November. Then, items to carry his country. So for damaging to peace prospects than President Sadat's bilateral initia­ the time being, at least, the issues anything the Soviet and Arab rejec­ tive pre-empted Mr. Carter's com­ of Jerusalem and the Palestinians tionists have so far been able to prehensive approach. The danger are secondary. What is pri�ary mount. By its behavior the today is that shifting U.S. inter­ and immediate - and what the Administration is making it highly pretations of the Camp David Carter Administration ought to con­ uncertain that the forthcoming accords intended to facilitate a centrate on almost exclusively - is Egyptian-Israeli peace treaty will wider peace are threatening to the Sinai accord between Israel facilitate any broad accommo­ destroy the prospective Egyptian­ and Egypt. dation in the Middle East .... Israeli settlement.

November 21-27. 1978 EXECUTIVE INTELLIGENCE REVIEW INTERNATIONAL 27 completely destroyed with the announcement at the which was entitled "American Policy in the Middle recent Baghdad summit meeting that the Arab heads East After the Camp David Summit," speaker after of state accept as a given the existence of the Israeli speaker discussed how best to force the Carter Admin­ state within its pre-1967 borders. istration into a strategic showdown with the Soviet Last week, Jordan's King Hussein closed out a Union in the Middle East. Among the speakers were three-day visit to Bonn, West Germany by telling the Joseph Churba, a former head of U.S. Air Force press that only a return to Geneva can rescue the Middle East intelligence and known controller of the Middle East from a "flatly unacceptable" Egypt­ Jewish defense League ; Bernard Lewis, architect of Israel separate peace. Hussein arrived in Bonn the infamous "Lewis Plan" for unleashing tribal war­ immediately after the Arab summit in Baghdad, fare against legitimate Arab-Islamic governments ; where Arab leaders issued a call for Israel to return to Edward Luttwak, author of scenarios for invading its 1967 borders as the precondition for peace. The Arab oilfields ; Robert Tucker, a leading advocate of Baghdad call shatters the myth that the Arabs do not Israel's exercising its "nuclear option" ; and Uri recognize Israel and hence are "not interested" in Ra'anan, who recommends that the U.S. "threaten peace. national suicide in a nuclear war" as a means of ter­ Standing alongside King Hussein as he called for rifying the Soviets into backing down in a strategic Geneva was West German Chancellor Helmut confrontation with the U.S. Schmidt, who nodded his approval. Summing up the prevailing attitude, conference The Europeans - in particular the West Germans chairman Hans Morgenthau of the New School of and theFr ench - and the Arabs are united in clearing Social Research told an interviewer that the U.S. had the way for a comprehensive Middle East settlement to demonstrate, first, a "willingness to blow ourselves at Geneva. They are dedicated to blocking the up to save Europe" in order to prevent the Europeans emergence of an anti-Soviet "Middle East Treaty from making ambitious trade-and-development deals Organization," which Israel's Zionists, the British with the Soviets, and second, "resolve to go on nuclear Crown, and Zionists in the U.S. have sought to shape alert as in October 1973" in response to an alleged out of the Camp David accords. Soviet design to "launch a war against Israel through Begging for war their clients Syria and Iraq." This scenario includes In the past week, no less than five major Zionist lobby opening a U.S. military base on Israeli territory to strategy planning sessions have taken place to lay out " counter Soviet designs. " thedrive for war. First and foremost was a series of meetings between Press picks up the line Israeli Prime Minister Begin and the Bronfman The line coming out of the Washington conference was family-controlled networks in Canada. In Toronto, picked up rapidly by pro-Zionist press spokesmen. Montreal, and other Canadian cities, Begin and his Since Nov. 13, Ne w York Tim es hatchetman William entourage met with hundreds of Zionist financial Safire, Henry Kissinger's mouthpiece Joseph Kraft, backers and Canadian government leaders to plot out, and Joseph Churba have written virtually identical among other things, the consolidation of an anti­ editorials blasting those State Department officials Soviet, pro-NATO alliance in the Middle East, possibly intent on achieving a comprehensive Middle East to be guaranteed by Canadian troops. It should be peace and warning that such U.S. effort could lead to remembered that it was liquor and drug magnate an Israeli preemptive strike against the Arabs. Edgar Bronfman who first put forth the idea of just In turn, this theme was picked up at a special this sort of "Middle East Treaty Organization" conference in Verona, Italy, attended by Italian and alliance. French "friends of Israel" earlier in the week. This policy line came to public light at a Nov. 10 Entitled "The Superpowers in the Middle East," the meeting in Washington of the National Committee on conference featured Israeli strategists close to Moshe American Foreign Policy, a group of rabid anti­ Dayan who insisted that the current Egypt-Israel Soviets overseen by Anglophile former ambassador to bilateral talks were "just a ceasefire," and that a new Spain Angier Biddle Duke. During the conference, Arab-Israeli war is looming on the horizon.

28 INTERNATIONAL EXECUTIVE INTELLIGENCE REVIEW November 21 -27, 1 978 John Pa ul Ills I Aug ustinianl papacy

An interview with a close associate of the new Pope

ROME - The following is the Involved in realizing the concerns Constitution that came out of Vati­ text of an NSIPS interview in la te of Christ. how could the Holy See. can II. Gaudium et Spes, was a October with Dr. Brasca. a close preparing the eternal salvation of Franco-Italian-Polish elaboration, friend of Cardinal Woj tyla. mankind that is its first duty. not and much of the Polish part came recently elected His Holin ess Pope be interested in the well-being and from Wojtyla. John Paul II. The new pontiff progress of the peoples of this greeted Dr. Bra sca with a warm NSIPS: During this century and embrace wh en. on his first trip out­ even before. a permanent fea ture side St. Peter's after theconclusion EXCLUSIVE of Va tican diplomacy has been the of the concla ve. he visited a Polish promotion of a Franco-German al­ INTERVIEW prelate in convalescence at the liance for an Atlantic-to-the-Urals Policlinico Gemelli. one of thelarg­ "grea ter" Europe within the con­ est hospitals in Rome. world?" - Here. especially at the text of a powerful thrust towards Dr. Brasca . now at th e end. there is a harkening back to world economic development. as in Policlinico Gemelli. was the direc­ Pope Paul VI and the Populorum the Pop ulorum Progressio. Wh at tor of th e Azione Ca ttolica Progressio. John Paul II is a hu­ are the new pope's views on this, (Catholic Action. thepolitical affil­ manist pope. and at the same time and how will he continue the Va ti­ iate of the Roman Ch urch in Italy) something of a mystic. can Ostpolitik of Monsignor in Milan for six years during the Ca saroli? late 1950s. At that tim e. he worked NSIPS : Pius XII. although Italian. Brasea: Since you have used the closely with Cardinal Montini, then was also a "German " pope: Pa ul expression from the Atlantic to the Archbishop of Milan. Mon tini be­ VI by the same token was French. Urals, I must tell you that the new came Pope Paul VI. wh ose 1967 en­ Ho w would you describe the Polish pope uses a very similar expres­ cyclical Populorum Progressio John Pa ul II? sion in an article of his that is about proclaimed technologically advan­ Brasea: As an Italian. with very to be published in the magazine cing economic growth as the basis close working relationships to the Vita e Pensiero. I myself have pre­ of the Va tican 's global policy. Milan archdiocese of Cardinal pared a summary of this article Colombo. with whom he met often. which will be published I think NSIPS: Ho w would you describe within a day or two in the the new pope's orienta tion in mat­ NSIPS : Ho w will the pontificate of Osserva tore Romano (official ters of theology ? John Paul II compare with the Vatican newspaper). The pope Brasea : Wojtyla is a . professed course establishedby Pa ul VI? gave us express authorization to Thomist. but he is most basically Brasea: Just a few weeks ago print this article after the conclave an Augustinian. Modern theolog­ Cardinal Wojtyla came here to had ended. In it he says that the ical writers usually present St. visit me. and was sitting in that geographical borders of Europe Thomas as being an Aristotelian. same chair where you are sitting are without question the Atlantic Wojtyla's interpretation of St. now. This was before the death of and the Urals. As for the political Thomas puts him in more of an Au­ John Paul l. Wojtyla stressed very borders, these change with passing gustinian light. If you look at the much that the line laid down by epochs. During the first millen­ speech the Pope made yesterday to Pope Paul VI is the one that the nium after Christ, the Eastern the Vatican diplomatic corps. you Church must follow. and which we border of Europe was dominated will find that the approach is Au­ must all support. I think that John by the evangelization of the peoples gustinian throughout. as when he Paul II will be an even stronger dis­ living there. including of course the speaks of an appreciation of posi­ ciple of Paul VI than John Paul I Poles. During the second millen­ tive temporal values. Then again. was. Montini and Wojtyla worked nium, this area has been marked he says : "The Holy See does not together very closely during the by military confiicts. It is very in­ wish to leave its pastoral role. Vatican II Council. The Apostolic teresting that the pope in this con-

November 21 -27. 1978 EXECUTIVE INTELLIGENCE REVIEW EUROPE 29 text mentions the Soviet Union as communist governments. but that in Poland. the Catholic Church one of the nations that has suffered merely asks to be allowed to work and the Russian Orthodox Church most from these conflicts. The unhindered. In" these questions as are in a very good ecumenical rela­ pope also warns against a tendency in others. John Paul II is a man of tionship. I expect to see. during my towards a return to neocolonialism solutions. not a man of problems. lifetime, the final reunification of on the part of Western Europe. and the Roman Church with the Eas­ tern Orthodox Churches. But as for calls upon Western Europe to open NSIPS : Woj tyla . the son of a itself to the needs of the Third sergeant, was himself a worker. a unification with the Anglican World. At the same time he calls and the first leader of the Cra cow Church. I think that is a very long for greater liberty in the countries archdiocese not to come from the way off indeed. of Eastern Europe. including reli­ Polish nobility. gious liberty. Brasea : In all of my many trips to NSIPS : One last question on Italian As for the Vatican Ostpolitik. I Poland. I have never come in con­ politics: Giulio Andreotti has now personally think it is very likely tact with members of the nobility set 1980 as a likely date for Italian that Monsignor Casaroli will be se­ there. This nobility has been large­ Communist Party entrance into the lected as Secretary of State. It ly swept away by the present gov­ government. Ho w will the new seems to me that Casaroli's poli­ ernment. and I personally think pope's presence affect this ? cies enjoy wide support among this was a good thing. Brasea : I think the Vatican will Polish Catholics. The Church is take a position of noninterference. of letting things in Italy take their telling the governments of the NSIPS: There is a long history of communist countries : we are not conflict between the Holy See and course. As long as the presence of the chaplains of the established the British Cro wn. a fa ct that was the Communist Party in the gov­ order in East or West. The Church underlined earlier this year by the ernment does not oblige the other no longer presents itself as conser­ attacks of Prin ce Ch arles on Pa ul parties to give up their own prin­ vative. as it once did. nor as revolu­ VI. Ho w do you see further devel­ ciples. as long as cooperating in the tionary. but as progressive. The opments in thisarea ? government is political. economic. Church no longer seeks special Brasea : There is a long tradition of technical. there is no cause for any privileges or concordats with the this sort of thing. I would only say great concern.

21-27. 1978 30 EUROPE EXECUTIVE INTELLIGENCE REVIEW November SPECIAl REPORT )

National Security Agency caught working for British Intelligence

Continuing investigation of an inte�linked mail-theft since the initiation and command of the overall and wire-transfers financial-warfare and "milking" operation is centered in top-level persons long operation against the U.S. Labor Party and other associated with the old British-Canadian Special organizations associated wih Lyndon H. LaRouche. Operations Executive (SOE) command. Jr. has led directly. and repeatedly. to the doorstep of the United States' largest and most super-secret Investigation number one: telecommunications intelligence agency. the National Security Agency ­ Party investigations of NSA telecommunications according to a report given by the U.S. Labor Party's operations against the domestic telephone and security section. telegraphic communications of the party and The party reports discovery was made by cross­ numerous of its members has focused on the time gridding the results of three separate investigations. interval from approximately mid-August 1977. The first of the three was an investigation of Although evidence of earlier NSA operations is widespread "black operations" traced conclusively to conclusively established. according to officials. it is an escalated NSA telecommunications surveillance the post-August 1977 escalation of NSA tele­ launched August 1977. The second investigation was a communications surveillance which is presently statistically designed test mailing, which defined most-accessible to conclusive findings. crucial features of a pattern of mail-theft being The detection of post-August 1977 NSA surveillance conducted within the Post Office. The third - incidentally. quite illegal - has been facilitated by investigation centered on fraudulent practices the wide circulation of NSA-generated monitoring of perpetrated by Canadian banks, including the Bank of party communications in variously raw. selected and Nova Scotia. content-altered formats. By inserting "black" content Findings of the three investigations dovetailed. into selected bits of raw telecommunications extracts, proving conclusively that the NSA was deploying its agencies coordinating use of NSA materials develop resources on behalf of British intelligence for a false reports of internal party communications which massive. illegal operation against the U.S. political are selectively "leaked" as purported high-grade party, party officials have reported. Facts developed intelligence information to targeted credulous coincided exactly. according to party officials. with a recipients. In addition. there are not-infrequent leaked warning from within the U.S. intelligence instances of "instant" black operations deployed community received during 1977. a leak outlining the during the course of telephone communications. crucial features of a super-secret. illegal combination Through use of "intercept" methods which do not of financial warfare (with the acronym "FIST") and depend on conspicuous forms of case-by-case '''black operations" designed to strip away party cooperation from telephone and other entities. and members and supporters (bearing the acronym with the aid of developed computer monitoring of "SWEEP"). these intercepts, the NSA has developed the ability to Although party officials report that they have not selectively monitor financial records and transactions yet discovered the official name for the target of their through tapping computers of the banking system. inquiry, investigations show that the interconnected This NSA capability is indispensable for certain of the operations triangulate on an area of coordination varieties if financial-warfare activities conducted situated immediately between the National Security through Canadian banks such as the Bank of Nova Council and NSA in the chain of command. In addition. Scotia, according to experts with whom party officials officials note. this unnamed super-secret special have reviewed the evidence collected on this group is triangulated as closely coordinating with the operation. United Kingdom Liaison Office and associated elements of the British Secret Intelligence Service Investigation number two: 'Flaps and Seals' deployed within the U.S. government. This latter Cumulative evidence of massive loss of incoming mail connection is most important. according to officials. prompted party officials to secretly launch a

November 21 -27. 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 31 statistically designed experiment to verify this the authorized agency for such operations - called evidence and to determine patterns from which the "Flaps and Seals" operations. character of culprits deployed within the U.S. postal service could be conclusively pinpointed. From Communications sent from various offices of organizations associated with the U.S. Labor Party various parts of the nation individuals including party around the nation usually get through as sent - members , non-members, and other various selected contacts, were each recruited to mail various kinds of although sometimes with delays. Communications by .correspondence, including letters containing persons outside the party do not arrive generally . subscription applications, and checks of various Some small-denomination checks do get through, but denominations. virtually no larger-denomination checks. Officials point out that such a massive, consistent and selective The test experiment's results did not exclude the pattern of mail theft requires both persons of high­ possibility that some mail theft was being conducted level authority working within the postal service. and by low-level employeesof the postal service, but it was also detailed, current knowledge of party activities proven that the pattern of results secured by the test and membership lists throughout the country and mailings required intensive manipulation of party abroad. The NSA is the lowest-level governmental mail on the kind of special basis possible only through agency which meets the required specifications of the high-level intelligenc e agencies of the U.S. agency responsible for the mail theft operations. government. The NSA is the agency which is currently

The assassination plot agai nst

Beginning in July and August 1977, two operational and the Institute for Policy Studies. The "right" assassination deployments were conducted against side of the operation includes Buckley family U.S. Labor Party Chairman Lyndon H. LaRouche, intelligence networks including Richard Viguerie, Jr. Both deployments employed international which employs the 1.0. format slander, "the U.S. terrorist networks in an attempt to create a climate Labor Party is KGB," while Ku Klux Klan and for the assauination, and were conducted in American Nazi Party networks are prepared for tandem with sophisticated financial and physical attacks on Labor Party offices and communications warfare against organizations members. associated withLaRo uche. The chronology; Aug. 8: LaRouche is threatened with eviction from the Wiesbaden apartment where he is residing. July throughAugus t 1977 Aug. l 1: The West German Maoist paper Arbeiter­ Aq. l: The U.S. Labor Party receives information kampf slanders the European Labor Party as from hiah-level U.S. intelligence sources that "fascist provocateurs" for exposing terrorist laRouche's name is high on a list of assassination attempts to disrupt the French "Super Phenix" targets in a new wave of "Baader-Meinhof" breeder reactor. Articles appear in the U.S. Village assassinations. Oresdner Bank chairman Jiirgen Voice and WIN magazine, employing the 1.0. Ponto, assassinated on July 31, had been on the format slander that the "US LP are right-wing same list, according to the source. police agents and fascists" to prepare the Au•. 2: Mitchell L. WerBell III, an internationally environment for an attack on LaRouche and the known security and counterintelligence expert, is Labor Party. officially retained to provide physical security for Aug. 17: Western Union International, linked to LaRouche, who at this time is in Wiesbaden, West Kuhn-Loeb. serves notice that it plans to cut off Germany. Labor Party AVO communications service linking Aq. 7: Information from two independent sources New York and Wiesbaden. Simultaneously, Leasco confirms that escalation of a slander and contain­ (Alanthus) begins removing domestic telex ment operation aimed at isolating LaRouche and machines from Labor Party offices in the · United the organizations associated with him is planned to States, disrupting the communications system. begin in September 1977. The coordination of this operation involves links to the Xerox Corporation of May 1978 to present Sol Linowitz, and includes both "left" and "right"­ Following the May 1978 Schmidt-Brezhnev wing slanders. The "left" . side involves the agreements and the July 1978 Bremen and Bonn American Civil Liberties Union, the Fellowship of summit meetings, a renewed live assassination Reconciliation, the National Council of Churches, operation is activated against LaRouche.

32 SPECIAL REPORT EXECUTIVE ItITELLIGENCE REVIEW November 21-27. 1978 Investigation number three: bank fraud errors of the banks involved. Officials note that if such Since late 1974 entities linked to British-Canadian clusters of errors could occur "spontaneously" within "SOE" circles have been engaged in periodic efforts the range of transactions of the accounts involved, the at massive tampering with bank accounts of entire U.S. and Canadian banking systems would organizations either associated with the U.S. Labor periodically break down entirely. Any statistical Party's leading members or the Labor Party itself. In gridding of these transactions is sufficient to prove a the first wave of such operations, Chase Manhattan very special financial-warfare operation is being Bank and Citibank were the banks targetted by the conducted against entities associated with leading operatives. Substantial deposits were wired to members of the U.S. Labor Party. It is not astonishing accounts in these banks, initially as confirmed bank to officials that the Canadian banks involved in the transfers. Subsequently, "unidentified" agencies recent pattern of developments are the same top intervened to claim these confirmed transactions to circles of Canadian politics and finance who are their own account. During a recent period. this pattern implicated in the projected assassination of U.S. has erupted again. with the bank-fraud conducted by Labor Party chairman Lyndon H. LaRouche, Jr.. leading elements of the Canadian national banking including persons linked to organizations under system. investigation by Attorney James Garrison and others It is a statistical impossibility that these several in connection with the assassination of President John clusters of developments could have occurred as F. Kennedy.

USLP chairman LaRouche

June : Coincident with LaRouche's return to the for prohibitive financial deposits. In late August, United States, a new wave of slanders is circulated confirmation is received that Walter Hesselbach, a through networks associated with Robert Moss. the board member of the West German Bundespost and Royal Institute for International Affairs. the linked to the Jerusalem Foundation, is involved in Heritage Foundation. and Francis Watson, in the operation. At the same time. a series of physical conjunction with various Zionist intelligence circles attacks is carried out against European Labor in the U.S. Party and U.S. Labor Party organizers by Maoists. July 16: An assassination attempt occurs against the Hare Krishna sect, Croatian Ustashi. and LaRouche in Detroit, where two vehicles attempt to others. sandwich LaRouche's car in the manner employed Sept. 5: USLP Congressional candidate Debra in the Schleyer and Aldo Moro operations. The Hanania-Freeman is threatened at gun-point attempt is linked to networks including the National outside the USLP office in Baltimore, Maryland. Lawyers Guild, elements in the United Auto Sept. 12: USLP members in St. Louis. Mo. and Workers. and B'nai B'rith funder Max Fisher. It is Seattle. Wash .• receive telephoned deaththre ats. coordinated with massive circulation of slander Oct. 1: A wave of J.D. format slanders erupts against LaRouche in business circles, to isolate him against the USLP and LaRouche subsequent to from potential support. Mont Pelerin Society meeting on "the LaRouche June 22: Simultaneous with the illegal entry into the problem" in Hong Kong. U.S. of Baader-Meinhof terrorists. the USLP Oct. 2: Business Week issues slander against the confirms that Heritage Foundation operative USLP written in coordination with Harvey Kahn of Francis Watson is conducting a nationwide slander the Institute for Policy Studies. portraying the campaign against LaRouche. "LaRouchies" as a religious cult. July 28 : An operation orchestrated by Zionist Oct. 16: Citizens for th e Republic Newsletter, lawyer Nahum Bernstein in coordination with Lord connected with Ronald Reagan. publishes a Caccia and Sir Harold Sebag-Montefiore of the Heritage Foundation slander, "Bizarre cult seeks British Order of St. John and the Jerusalem conservative allies." Foundation. attempts to set up LaRouche for Nov. 1: Joseph Rauh. a member of the B'nai B'rith assassination by demanding his presence in court Anti-Defamation League and co-chairman of in a trial involving an earlier assault of a Labor Americans for Democratic Action. comments to a Party leader in New York City. U.S. Labor Party member on the Mont Pelerin August : Financial harassment breaks out against Society plans to stop LaRouche: "Shoot him." the European Labor Party communications system. including arbitrary and illegal demands

November 21-27. 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 33 The triangulation already scheduled for the summer and autumn of 1977, Party officials report that the August 1977 escalation according to confidential, high-level reports from the of NSA operations against the U.S. Labor Party U.S. intelligence community to Labor Party leaders. correlates with the initiation of such an operation by "FIST" and '$WEEP" were defined in those Henry A. Kissinger's patron, George Franklin. confidential reports as a joint operation involving the Franklin, a key insider of the New York Council on NSC, NSC-controlled elements of the U.S. Department Foreign Relations, was a key official to whom Henry of Justice, and Rothschild-allied international A. Kissinger reported for direction following financial interests. The coordinating agency within Kissinger's special training by British intelligence at the government for this "black operation" against the the London Tavistock Institute. Franklin is also a key U.S. Labor Party was identified as a special, super­ executive of the Trilateral Commission, a real insider, secret entity linked to the NSC and identical in as contrasted with show-piece appointees such as character and resources with the super-secret entity former Trilateral executive Zbigniew Brzezinski. coordinating operations against the International According to cross-checked sources, including U.S Brotherhood of Teamsters. government officials, Franklin's role in the affair was According to officials, every fact developed in as follows. connection with the three-part investigation coincides During the Spring of 1977, one Gordon Novell exactly with the outline of the "FIST" and "SWEEP" developed a friendly approach to the U.S. Labor Party operation established as an operational project during for the purpose of developing information he could the Spring of 1977. Undercover and other "sell" to George Franklin, to whom he reported on investigations against British intelligence and related this account during that period. Novell, tightly tied to Zionist organizations complete the essential evidence, the New Orleans Mafia, was in serious troubles at the according to officials' reports. time, and was desperately active seeking to sell old On the U.S. government side, the chain of command friends and other political "merchandise" to the CFR for the illegal operations coordinated through crowd, ostensibly in hope that those CFR circles would Brzezinski is White House to Brzezinski, to NSA, bail Novell out of his other pressing problems. through a super-secret "plumbers unit" formally At the time that U.S. Labor Party chairman reporting directly to Brzezinski's White House office. LaRouche was being aided by the intelligence services This "plumbers unit" is coordinated directly with top of three "Western" 'governments against a Baader­ levels of British intelligence, especially the Montreal­ Meinhof assassination threat, top intelligence circles New York "SOE" networks linking "Mr. M" in London and also Henry A. Kissinger intervened in (Montefiore) to the "SOE" inner circles within the an effort to cut Baader-Meinhof target LaRouche from New York Council on Foreign Relations. Although all assistance. During the same period, Novell, Zionist organizations, especially the Jerusalem fabricating false information he purported to have Foundation (Bronfman) and top circles of B'nai B'rith secured "under cover" from an associate of security are complicit in the projected assassination of specialist Mitchell WerBell, who had been retained to President John F. Kennedy, Zionist-linked entitites, help guard LaRouche, made a recorded telephone call such as Bronfman's Permindex of the early 1960s to George Franklin. In that call, Novell purported to (e.g., Major (ret.) Louis Bloomfield), are deployed as have information that LaRouche had prearranged the potential scapegoats in case investigations of assas­ execution of Zbigniew Brzezinski, an execution, sinations should threaten to come too close to "Mr. M" according to Novell, to be activated on the command himself or the British crown. of some prearreanged signal given by LaRouche. Although the name of the super-secret Carter White Subsequent investigations traced Novell's August House "plumbers unit" is not yet known, the behavior back to secret meetings with George triangulation conclusively shows this entity to be the Franklin in New York City during the preceding coordinating agency behind the mail theft, bank spring. Franklin and Brzezinski were fully aware of fraud, and other "black operations" being deployed the fraudulent character of Novell's allegations, but (illegally) against the U.S. Labor Party. used those fraudulent allegations as a pretext for The offenses of which the Nixon Administration was escalating Brzezinski-directed NSA operations charged are "small potatoes" by comparison with against the U.S. Labor Party. what is presently being deployed from the White The "FIST" and "SWEEP" operations were House.

34 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW November 21-27, 1978 Capriccio Sici I iano

Part fo ur of th e Soviet's explosive investigation of th e JFK assassination

In the spring of 1962, the FBI arrested Joe Valacci for dealing in heroin. Known within Cosa Nostra by the In this section nickname "Cago, " he was the trusty lieutenant of This week Executive In telligence Revie w con­ Tony Bender, Genovese's assistant. cludes its exclusive translation of "Capriccio When Joe Valacci was sentenced, the police sent Siciliano," a four-part series of articles on the him to jail in Atlanta, to the very same cell block links between political assassinations and the where the "boss of all the bosses," Vito Genovese, was drug trade by Julian Semyonov which appeared imprisoned. The boss had ideal conditions in prison. recently in the Soviet youth organization's week­ His food was prepared by a cook who knew Don Vito's ly magazine Ogonyok. The series is significant tastes. On bath days a special masseur kneaded his not only for the new light it sheds on such mat­ body, before handing him over to the barber and the ters as the Kennedy assassination, the Mafia, pedicurist. Inmates who wanted to talk with Don Vito and the activities of the Maoist Chinese intelli­ submitted a written request. The audience lasted not gence apparatus, but also because it sets forth a more than 10 minutes, and questions had to be new, sophisticated Soviet perception of the inner prepared beforehand. No flights of lyricism here, just workings of British and Knights of Malta-linked business. intelligence networks. Once Don Vito came up to Joe Valacci and asked Part one of our serialization dealt with the him what he thought of Tony Bender. links between Lee Harvey Oswald, the purported "I think Bender is a fine man," answered Joe. assassin of President John F. Kennedy, and Jack He did not know that Bender had just been killed on Ruby, the man who killed Oswald; the links be­ orders from Don Vito, who had decided that his "little tween Ruby and the Mafia and drug-running ; son" was siphoning off his profits. and presented evidence linking Chinese intelli­ Genovese sighed, smiled at something and gence to both. In part two, Semyonov detailed remarked: the Mafia's ties to Italian fascism and Western "When you find a bruised apple in a basket of nice intelligence networks, and in part three he red ones, or, even worse, a worm-eaten apple - you showed how those strands led to the illegal nar­ have to throw out that apple mercilessly, don't you cotics trade and the sometimes murderous poli­ agree?" tics of international oil. Joe Valacci looked into the softly smiling eyes of the In this, the fourth and last portion of his series, godfather and was overcome with horror: "I am Semyonov draws all the threads together to under suspicion ! " reach, if not answers, then certainly the defined "If I've done anything wrong, even once," said Joe, avenues along which further investigation "and you have proof I'm guilty, give me a pill. I'll take should proceed. Notwithstanding his sometimes it right here in front of you. I'm not afraid of death, but misinformed secondary evaluations (for I can't stand disgrace." example, of Jimmy Hoffa and of the Kennedy "What are you talking about, my son?" asked family's political role) Semyonov has made a Genovese with the same soft smile, "I don't think you powerful contribution to dragging the British­ understood me. Let me kiss you as a sign of my trust in run international "black networks" to justice. you. We have the same life behind us. Are we going to (Note to readers ; Ellipses in the text are all as just forget about the past? Only crazy men forget employed by the author in the original Russian, about the past, or people who have decided to get except where enclosed in parentheses - C . . ) - friendly with nonpeople. But you wouldn't do that, which indicate occasional small deletions by the would you?" editor for purposes of abbreviation.) Don Vito kissed Joe on the forehead, kissed him with the tender kiss of an older brother.

November 21-27. 1978 EXECUTIVE INTELLIGENCE REVIEW COUNTERINTELLIGENCE ::I� And after that kiss, the whole Genovese "guard" orders on the main questions of Syndicate strategy ... looked on Valacci as a condemned man: they openly What can you do to them, sir?" suspected him of betrayal, for they all knew how many "In order to do, you have to know, Joe. You will help murders and kidnappings he had behind him and yet us learn, Joe. Everything, to the very end." he had gotten a short term, while Don Vito, the boss, "Answer me just one question, sir, but answer the got 15 years. truth. Was Luciano CIA or FBI?" Joe Valacci, a faithful Mafioso, didn't handle this The question caught Flynn by surprise. for the terrible suspicion well. He couldn't sleep. He stopped special relations of Luciano with the secret services eating, for fear of poison. was the CIA's "secret of secrets." Things came to a head when during an exercise "You see," continued Joe Valacci (henceforth "di period he seized a length of metal pipe and bludgeoned Marco"). "You had Luciano. the 'boss of bosses' on the petty swindler Straup on the head, because he your side, and you couldn't crack Cosa Nostra. Or thought Straup was sneaking up on him with a knife. didn't they let you? Robert Kennedy is a powerful Joe could look forward to the electric chair, for man, the President's brother - but even he is not all­ Straup died without regaining consciousness. powerful in this country. And if he gets stubborn on And then Joe Valacci made an offer to the prison this one, they'll hit him and hit him bad, believe me." authorities: All his near and dear ones turned their backs on Joe "Get me away from Genovese. I'm ready to Valacci. when Vito Genovese gave the signal from cooperate. " Atlanta. His son publicly denounced his father, his A few months later. prisoner Joseph di Marco was wife demanded a divorce, and his relatives spread a transferred to Westchester prison. This was the story that Joe had gone crazy. pseudonym given to the new FBI agent, Joe Valacci. Joe Valacci died in prison from a sudden and Flynn. the rising star of criminal investigations, unexplained illness. Remember the sudden and was appointed by Attorney General Robert Kennedy strange death of Ruby in prison ! to work with him. "Any other traitor is going to get the same thing." Joe Valacci told everything about himself. Flynn was the word among Cosa Nostra people. when his pretended that he found "di Marco's" testimony obituary appeared in the papers. "Sooner or later our highly interesting. He fed him dried sausage and soft vengeance will catch up with him. No one dies his own cheese, "di Marco's" favorites. And he unwound, slept death. not even in a single cell by his color TV and soft comfortably in his single cell, and "the other side" no bed." longer seemed so disgusting to him. "Among them ...To return to the relations between the Mafia and there are people too." fascism: we must review a number of postulates Flynn. having softened up his prisoner, hit him right which read as if they were specially formulated for the between the eyes : practical activity of the ' 'secret order." "Joe, everything you've told me I've known for The first postulate concerns relations with the trade years. Don't take us for stupid, Joe. We're interested unions (Cosa Nostra is constantly looking for in you because we believe you can tell us all the approaches into the unions). names, the safehouses and how to get there." "The national-socialist trade unions should by no "Get where?" means be organs of class struggle. but only organs "Joe, Attorney General Robert Kennedy didn't save of professional representation. The national­ your life so that you could read me detective film socialist state knows no classes. Both nationalist scripts. You're alive because you can help break Costa workers and national-socialist employers are Nostra." servants only of society and carry out its "You'll never break Cos a Nostra. because that's the assignments. second government of America. sir. You can't do "The spirit of class struggle characterizes not anything to the Syndicate ... What are you going to do trade unions as such. but only Marxism, which has with Joe Bonanno? Formally he runs a real estate made the trade unions a weapon in its struggle." firm. In reality - he's boss of New York. What are you The second postulate has to do with the Mafia's going to do with Joseph Profacci? He practically runs "educational work" - how to prepare gangsters. how the whole import of olive oil. You love olive oil, right? to teach them to obey blindly and carry out orders to It's good for your heart and all that. Well. Profacci is the letter : the second boss of New York. And what are you going "For centuries. the magical power of the spoken to do with Carlo Gambino? He's the chief consultant of word has been that factor which set into motion the Syndicate - but you can't pin him down to great historical avalanches, both religious and anything. even though our people don't do a thing political. The broad masses yield above all to the without his advice. And Thomas Lucchesi? He's a power of the spoken word. All great movements clothing manufacturer and also a boss in New York. are national movements. This is the volcanic Vito Genovese? He's in jail in Atlanta. but every week eruption of human passions and spiritual he gets a report from Cos a Nostra and hands down sufferings. Only passion gives - and only to her

36 COUNTERINTELLIGENCE EXECUTIVE INTELLIGENCE REVIEW November 21 -27. 1978 chosen ones - words which, like hammer blows, time in the West, since they have gas stations all over open the gates to the hearts of the people. He who the place, and gasoline is expensive. Nobody wants to is without passion, whose lips are sealed, is not the waste money, and if two or three litres evaporates, chosen messenger of the will. To the man who is that's quite a bit of money. But I, accustomed to our only a writer, let us say: 'Sit at your desk with huge distances and few gas pumps, filled the tank ; your inkwell and engage in theoretical activity, if people stared at me with their eyes popping out, that is what you have the ability to do. You were especially when gasoline bubbled up around the gas not born a leader and have not been chosen one.' " cap. In Sicily they conserve every drop, just like a The third postulate is about relations toward people, pastry chef decorating a holiday cake with very toward "the throng," "the herd," sometimes more expensive icing. politely called "the mass": The left rear tire on my Fiat was a little flat. I "The mass loves a master more than someone opened the trunk to find the jack and couldn't believe who merely requests something of it. The mass is my eyes : there was no jack and no spare tire either ! more satisfied with a teaching that suffers no I immediately figured out in my head how much it other than with the toleration of various liberal would cost to pay for the missing jack and tire ("You freedoms. For the most part, the mass doesn't live and learn, but die a fool" - I should have checked know what to do with liberal freedoms, and even the car before I left Syracuse !), compared this price feels abandoned in such circumstances." with how much money I had left, and began to feel (The author of these "postulates," so precisely somewhat uncomfortable. There might not be enough. applicable both to the rightists, and the Maoists, and I was in a very low mood when I arrived in Cefala. I the Mafia, was Hitler.) tried to fix my mind on the town, which is famous for its "coastal Mafia," but I couldn't get my head clear. An unpleasant thought, especially when it has to do A series of investigations with the next day, is like a pebble in your shoe. It's always there. ... I found no place to stay over either in Palermo or in I checked in at a medium-cheap hotel, went down to Termini. The hotel prices were sky high. the pizzeria, and ordered Italy's tastiest food, "Go to Cefala," I was advised. "It's a pretty little Neapolitan pizza. It's very similar to our Batum town, an old one right on the coast, and it has a few khachapuri, but it has tomatoes instead of eggs. hotels of different qualities." There was only one table set in the pizzeria. Five So I went to Cefala. adults - two men and three women - were sitting at I stopped at a gas station and decided to get another it. along with a dozen children, incredibly friendly, 20 litres. Usually people don't get very much gas at a noisy, and laughing little Italians. The children were

r Who's got the news that's fit to print?

Apparently word of the Executive Such acid comment was prompted tant contributions after all. Intelligence Review 's exclusive by the House Assassination Com­ The first concerns the billow of transla tion of "Capriccio Sici­ mittee and was surely justified by conspiracy theories generated by liano" is getting around. For the the way it began investigating the the Dallas assassination: the Rus­ New York Times 's lead editorial murders of John Kennedy and sians did it ; no, the Cubans; no, of No v. 16 includes a vigorous de­ Martin Luther King Jr. and the the Mafia. A Soviet writer now nuncia tion of conspira cy theories conspiracy theories generated by claims it was Peking, in cahoots in general and of an especially out­ both. Poisonous feuds and lurid with the Mafia ... Instead, the rageous such theory on the Ken­ leaks soon made the committee committee put the conspiracy nedy killing from the Soviet Union look even more irresponsible than theories on trial - and found in particular. the fearful fantasies. them invalid .... Huffs the Times : But then came a new chairman, In an upcoming issue the Exec­ Representative Louis Stokes of utive Intelligence Review wm Cleveland, and a new chief coun­ present the story behind the sel. G. Robert Blakey, of Cornell Stokes Com mittee coverup, and La w School. Abruptly, the leaks the role of whiskey king Edgar stopped and the committee's Bronfman and his Perm index work became disciplined. If it con­ organization in the Kennedy and tinues on its prudent course, the other assassinations. Wh at wm committee will make two impor- the New York Times say to tha t?

November 21 -27. 1978 EXECUTIVE INTELLIGENCE REVIEW COUNTERINTELLIGENCE 37 running around the pizzeria, the women were talking the very same caliber were found in the car used to nonstop while furiously knitting, and the men had kidnap the banker Corleo, and in Concutelli's secret their eyes glued to their newspapers. apartment 339 cartridges of that same caliber were The 13-year-old waiter, glancing over the men's confiscated, along with armed forces instruction on shoulders at the newspaper, whispered something to how to handle explosives and two blank ID car ds, the cook, who was baking pizza in a huge oven like the complete with seals and signatures, from the Italian ones in the late Aleksandr Row's films. Wiping his Defense Ministry. hands on his long white apron, the cook took off his The four criminal cases which concerned the chef's hat, came up to the men, and also peered at the commissioner above all others were the following: the paper until the little assistant cooks, standing by the murder of some court officials ; the crash of a DC-9 stove, started shouting at him. Evidently my pizza airliner in the mountains of Sicily in full view of a was burning. crowd at an electoral campaign meeting near When the party left, their newspapers were left Palermo ; four bold kidnappings ; and a series of behind. Twenty-some pages is a nuisance to carry.* I bandit raids on the western seacoast of Sicily. picked one up and looked at the headline: "Scandal of Europeo underscores: "These are all links in a Giuseppe Peri. Police Commissioner." I don't read single chain of plots, the goal of which is to inspire fear Italian, but if you know English, understand some in the population, to discredit the state authorities and German, and are studying Spanish, you can get the to use the chaos thus created to impose their own general sense. The story was about a group of Mafiosi criminal ideology. It is no coincidence that many of tied up with the fascists. I wrote down the police these crimes were perpetrated on the eve of the commissioner's name in my notebook, ate my elections with the support of a certain section of the Mafia. which would come up 'winners' in the event of a somewhat scorched pizza, went back to the hotel. and . flopped into bed. After a Neapolitan snack, the next power turnover. " day's nightmare - of paying for the credulous Commissioner Peri studied the technique of the bungling of a man used to relying on an outlet's organizing of the kidnappings. which were carried out prestige, on account of its being a government facility in order to finance the movement of the fascist and therefore highly responsible - was not as acute as organizations Ordine Nero, A vanguardia Na zionale, it had been an hour earlier. and Ordin e Nuovo. ("Maybe he'll take responsibility" - still. you must Kidnappings. like political assassinaiM�s, are agree that it's a fine thing to be able to count on it ...) thoroughly planned and even rehearsed several times. Later I obtained documents on Commissioner Peri, The first stage, the process of the kidnapping itself which were published by the Italian magazine - the riskiest part of the operation - is entrusted to Europeo. This material is of sufficient interest to be the Mafiosi living in the same region as the victim. In discussed in great detail. this way, the perpetrators are up front: "Look, there Journalist Roberto Ciodi, who reported on the they are, the scoundrels. We know these characters ; inquisitive Commissioner, claims that Peri had no there's no need to look any further." doubt of the connection between ' 'neofascists, Mafiosi, The second stage : if they do not succeed in and gangsters." channeling the investigation toward the obvious man. Peri is currently investigating four cases. On the the up-front man. in order to distract the law from surface they appear to be unrelated, but he thinks they seeking the true criminals. from the headquarters are internally linked into a single whole. which does the planning and knows what the planning Among other names, Peri is carefully studying is for. then comes the time for retribution and the Pietro Luigi Concutelli, a Mafioso whom the bosses small fry are sacrificed to the authorities. The relocated to northern Italy. He was arrested in Rome perpetrators are little fish. They are not dangerous, in February 1976 and 11 million lire was found in the they know nothing, they can't spill anything. The room where the police nabbed him. This was money he chain linking the headquarters to the perpetrators is got from Mafioso Renato Vallanzasca: the ransom for many-layered and interfaces with the criminal Signore Trapagni, who was kidnapped on orders from world's connections to the police through informers headquarters. The chain led to the neofascist Placido buried within the apparat. Morgante, who, in order to frighten the kidnapped The story of the DC-9 explosion is yet another proof Luppino, cut off his ear: "If they do not bring the of how small fry are sacrificed. There were 118 money, I will cut you to pieces;" passengers on the Alitalia airplane. One of them Commissioner Peri insists that it is Concutelli (obviously a hit man) was not identified. The himself who shot Judge Occorsioand Pietro Scoglione, remaining bodies. although torn to shreds by the the General Procurator of Palermo. He insists on this explosion, were identified. The relatives flew in, and because 30 .24-caliber cartridges were found not far received urns. Only one urn was not picked up - the from the scene of the murder. Exactly 60 cartridges of mafia bosses. of course, don't like parading around in the open. This was the man who carried in his suitcase • Pravda, the biggest of the dailies Semyonov's readers use, is usually the little package given to him at the airport. having six pages long- ed. no idea that it was an explosive and that the timer

38 COUNTERINTELLIGENCE EXECUTIVE INTELLIGENCE REVIEW November 21 -27. 1978 • would set it off at the very end of the trip, as the was a crime of many levels, we must remember that mountains of his native Sicily slowly and majestically Charles Luciano, "the narcotics king," CIA agent and went by under the wing of the airplane .... "boss of all bosses" of the American Mafia, spent Peri stresses in his analysis: "In the event of several years in Havana, turning the capital of the landing gear failure, the pilot has several seconds in dictator Batista into a transshipping center on the which to signal the flight control and security workers "Asia - Mediterranean - USA route." on the ground. Then the 'black box' record remains. It follows that in Havana tremendous amounts of But this pilot didn't report anything, meaning he did money were invested. After all, it was a world center not have that second. There was the explosion, then of the gambling business as well ! Remember how the dead silence, and nothing more." ... Mafia bores its way into banks, gets itself legalized, (I should note that until now no one has researched and penetrates into all the pores of the System. Thus yet another not unimportant circumstance: on board the Mafia had the interests of respectable capitalists the airliner was also Ignatio Alcamo, deputy general and bankers. The Castro victory was a blow against procurator in the Palermo appellate court. What bank accounts ! And to this they know only one way to matters came under his jurisdiction? How many react - attack ! Those who planned the landing of people connected with the Mafia were waiting for a Cuban counterrevolutionaries in the Bay of Pigs were summons to his office? What level were these connected in one way or another with the financial people?) groups who had a financial interest, a real interest in getting Havana back. Castro closed all the casinos, The ultraright - neofascism and the Mafia. united which cut deposits into American banks by millions, by their shared interest - strikes hard, and the stakes even billions ! And for that, they'll fight you to the are uncommonly high. Judge Scaglione, the Palermo death, as the history of imperialist wars clearly general procurator, was shot. The investigation of this illustrates. But previously the Mafia had not murder - the first assassination of this type - was penetrated so deeply into the pores of legitimate carried out by the general procurator of Genoa, business. Now a paradox arose : the bandits and Francesco Coco. Mafiosi, embedded in the banks carried along with They shot Procurator Coco, and two of his them the very financiers who pay enormous sums to bodyguards also were riddled with rounds of an army of journalists, directors, actors, and ammunition. This happened after Coco met Occorsio professors to turn out propaganda against narcotics. in court, and a very important exchange of opinions Narcotics interfere with the system of exploiting the transpired between them. workers, dissipate their strength, and, moreover, hurt Commissioner Peri concludes: " The headquarters in discipline in the armies, which are supposed to defend Rome, to which all the threads of the plot led, was very the class interests, the economic interests, of the active, but remained above suspicion. There existed strong men of this world. and still exists a powerful machine whose particular ... "The deputy boss" in the Maranzano group for business is organization of kidnappings. (280 million many years was Francesco Saveria, known by the lire was paid for a Mr. Mariano , 2 billion lire for the pseudonym "Frank Costello." He was sometimes banker Perfetti, 700 million lire for the industrialist called "premier of the underworld." The old Mafioso Campizi.) The idea-men of the organization must be liked this nickname. He had made his career in 1930, looked for in political circles which are above when he concluded a deal with Louisiana Governor suspicion. The weapons, gear, and military Hugh Pierce Long. Long gave Costello exclusive instructions found at Concutelli's clearly reveal the rights to the ownership the "gambling business" in main goal of the heads of the organization, who do not of the state. Costello hired, for double duty as deputy and disdain to use the powerful support of the Sicilian and Calabrian Mafia ...." adviser, the old fox Dandy Feel. Dandy rushed around America, putting together a ... It is clearly worthwhile to analyze thoroughly block of "strongmen." He finally proposed to the (although this is devilishly difficult; the "open" "premier of the underworld" two powerful partners : society knows how to cover up its secrets) shifts in the a Mafioso from a "good Sicilian family," Carlos economic structure : without economic shocks, Marcello, and the boss of the group of Jewish fascism, as the highest manifestation of nationalism, gangsters, Meyer Lansky. A "pact" was formed is practically impossible, since it is not profitable for between Costello, Lansky, and Marcello. They took capital. It becomes advantageous only in a critical over the casinos in most of the southern states : then situation, I would say, in a "choice" situation : Either the group began "the invasion" of Havana. the victory of the leftist forces or the emergence of the On the evening of May 2, 1957, Frank Costello dined ultraright, which can be controlled. Isn't that why the at one of the most elegant French restaurants in various Krupps and Thyssens depended on Hitler in Manhattan, L' Aiglon. Costello was famous as a the difficult years of economic crisis and the upsurge genuine gourmet. It is thought that he financed the of the leftist movement in Europe? publication of the elegant leather volume Th e Mafia Let us return to the tragedy in Dallas, to the storyof Cook Book. That evening Costello ate kidneys in red the death of John Fitzgerald Kennedy. Because this wine, "boccacini da vitello, " country sausage,

November 21 -27. 1978 EXECUTIVE INTELLIGENCE REVIEW COUNTERINTELLIGENCE 39 "semi/redo al listaccio " and a lot of strawberries - last century !); chairmen of movie industry oversight not canned, but garden fresh, with the leaves still on. boards - porno films; directors of the biggest He ate well. His friends liked to watch Frank eat. transport companies - the Mafia needs to have its Beautiful eating is a real art, a sort of invitation to people in transport ... ( ...) your companions to join a festival of gluttony. When the counterrevolutionaries' landing at the Bay Costello surrendered to the food, during those hours, of Pigs failed, a thought had to be given to the future. forgetting vain worldly cares. And on that May day he The Castro regime had proved its vitality: Cubans needed a rest, since an audit of his business was still were ready to fight with arms in hand, and going on ; he had drawn the mighty General Motors "motherland or death" was not so much a slogan as a into an interesting deal - $10 billion; the competitors, statement of fact. of course, tried to block it and a scandal ensued. Oh well, what's done is done. When you've got money Pulling all the threads together there's nothing to fear. The one who has something to fear is he who has lost and has to humbly borrow a It's still difficult to say who personally thought up the lousy hundred thousand for his daily bread. idea of killing the President. The President who could Costello left a tiP (he always left $25 in bills), asked not return Havana to its former proprietors. The for a taxi to be called, went out into the street, felt President who tried to turn the country toward reality drops of warm rain on his face, got into the car at the in assessing the new structure of the world. It was this, curb and heard a familiar voice: precisely this, that gave him his popularity. Well, but "Frank !" popularity too has its commodity value. The "premier" turned. A man walked up to him and All it took was for Robert Kennedy, on the eve of the said: elections, to repeat that if elected to the Presidency he "It's you, Frank !" would demand a review of the Oswald-Ruby matter And he emptied the cartridge clip of his Colt into the and begin an attack on the Mafia, and the half-mad "premier of the underworld." Sirhan Sirhan appeared, and shots riddled the At Roosevelt Hospital the doctors were astounded : galvanized counter at the Ambassador Hotel the bullet-riddled man was alive. restaurant. When Costello could talk, the police came to see ... The morning of that tragic day I wa·s, in Los him. Angeles, in "Bobby's" headquarters, and I spoke with "Who shot me?" Costello asked. "Look here, I have John Kennedy's former "press chief," Pierre no enemies. I am an ordinary mortal, an old Salinger, who at that time was running Robert's businessman, tired of this damned life. I'm telling you electoral campaign. the truth, I never laid eyes on the man that committed What was happening in that enormous building was this villainous act. " indescribable. Noise, shouts, laughter, ceaseless He had seen the man. In fact, he knew him very telephone rings ; young girls were giving out records well: Vincenzo, nicknamed "The Chin," a former with songs hailing "Bobby's" future victory ; a young boxer from Greenwich Village, a "hit man," whose Negro gave me a styrofoam hat with a portrait of connections can be traced to Vito Genovese, the Kennedy on it. "Bobby will win !" was written in red second "boss of bosses," Luciano's "truest friend." under Kennedy's portrait. Costello thought fast : keep quiet and maybe Salinger looked at this gay madness with a tired survive ; say a word and they'll get you. Don Vito smile: he was only getting three hours of sleep during Genovese doesn't know how to joke; evidently Don Robert's tour, and scrunched up in the seat of an Vito cannot forgive Luciano the monopoly on Havana, airplane at that. and the reason for the murder attempt probably can "Kennedy will win?" I asked. "Are you sure?" be found in the obvious features of the General Motors "60 percent," Pierre replied. scandal. Everything was precisely worked out, and a "Why not 80?" cover story was prepared to submerge the obvious. "That's impossible in America. 60 percent for us is When Luciano couldn't do anything to "get Havana like 110 for you - an absolute overfulfillment of the back," it was his turn : the Mafia, as we showed, had plan ...." become a gigantic "network of financial interests." A That evening I returned to New York and was fearful chain: the secret narcotics plantations in invited by Cronkite, the CBS television observer, to his China ; couriers carrying the goods in suitcases with program: the old ace journalist was giving his instant false bottoms ; businessmen known as "spreaders"; analysis of the likelihoods in the presidential the legal millionaires of the Mafia ; investing the primaries. Observing the television poll reports from "heroin money" in banks ; presidents of construction Los Angeles on the primaries (Kennedy's opponent firms building casinos in Las Vegas with the money ; was outstripping him by several points), Cronkite factories for production of artificial milk for babies said: (billions of dollars of profits ; a woman must preserve "Nonsense. Bobby will win. He's going to the White her figure, and breast-feeding is a barbarism from the House, he's destined to."

40 COUNTERINTELLIGENCE EXECUTIVE INTELLIGENCE REVIEW November 21 -27, 1978 We left Cronkite at midnight ; he collapsed in an against the SRs (Socialist Revolutionaries - ed. ), who armchair and a girl started to take his make-up off. On relied on terror ; the struggle of the communists American television everything is real - the against the theoreticians and practitioners of telephone really rings, rather than having an assistant anarchy; alas, how few in the West know about these off-stage with an alarm clock in hand ; the computers pages of history.) really work, they're not just lights lighting up Then came Singapore and Malaysia, the notorious numbers prepared by the props people ; it's only the "eastern-style shops," the attempt to infiltrate chief that is artificially made up. Peking's ideology into Southeast Asia using trade, the "Americans don't like old, ugly men," Cronkite creation of Maoist bases in the business world. explained. "The chief has to set a standard, that's all The more deeply I delved into the material, the there is to it." more interested I became in two aspects : first, that We said goodbye and parted : he went home and I someone was pushing the Mafia (at the end of the went visiting. 1950s, as can be traced in the documents) into the oil At five in the morning Dmitri Tyemkin called, our business. Who? Second, that at exactly the same time old friend. (Remember the song "Green Hills"? The the Maoists' narcotics supplies to the Mafia became a music for the film " A Hundred Men and One Girl"?) real "industry." Oil and heroin. Ruby, relocated by "Kennedy's just been killed." someone to Dallas, the oil capital; Ruby, without I drove over to CBS. whose permission no narcotics were sold there. Cronkite was already there. He was trembling. He Let's say what is proba ble. The first link: oil (that sat in his usual place, without make-up, gray, with is, war) - CIA ; the second link: Peking (that is, bags under his eyes. narcotics) - Mafia. Put it together and you get : oil ­ "When will this horror end?" he asked America. narcotics - CIA - Peking - Mafia. "When? Will we never learn to value and to cherish It was not in vain that I studied the history of the Man?" interlock between the Mafia and fascism : they too had I went out onto the street at seven o'clock. People ostensibly been enemies, and yet lookhow they hooked were walking around preoccupied, exchanging smiles, up ! Both the CIA and Peking, although exchanging stopping in front of shop windows, gathering around propagandistic barbs from time to time ("Love is not the tobacco kiosks, as if nothing had happened that complete without quarrels"), are both interested, night, as if the man they had applauded so much five from two standpoints, in one thing: in compromising

- hours previously had not died. the ideas of scientific communism, which has always Heavens, I thought then, can it be that today's new been against terror and any other kind of pseudorevo­ tempos have made the world so indifferent? Or is the lutionary adventures. System of racing after the mirage of success making I finished the rough outline of my version of what everyone feel stale towards one another, increasing happened three years ago, during my trip to the USA. egocentrism such as mankind has never known I am continuing the work. New facts will probably be before? Or is it that here, amid the rumble and uncovered, primarily, I should like to hope, by the hubbub, the category of the coincidental has been Americans themselves. But I still have one question : made into some kind of everyday lawfulness, as the why do those abroad only analyze the obvious, the strategists of "terror and destabilization" have superficial, the red herrings? What is it - American calculated precisely on this? rationalism? Or is someone - again via the System That morning in New York was cruel, cruel to the (through which the Mafia germinated) bitterest hopelessness. painstakingly, invisibly, and firmly deflecting the I really began to "unravel" the story of the Americans from studying allthe possibilities? (Who? assassination of the Kennedy brothers at the end of Who benefits?) 1968, when I summarized and systematized the mate­ What else is remarkable? The latest victims, who rial I had collected during my stay in heroic Vietnam, might have been able to throw light on the Kennedy with the fighters of Ho Chi Minh and the partisans of affair, were connected to the Mafia: Sam Giancano Laos. It was then that I first noticed the quiet Chinese, was considered one of Chicago's most influential those who were organizing - during the struggle of Mafiosi - he was shot at dinner, in the kitchen ; the Vietnamese people against American agression - Charles Nicoletti was a hit man in the Chicago Mafia - Maoist penetration, organizing little by little, for the he was killed ; the "CIA-Mafia" connection, Jimmy future. Hoffa, also disappeared ; John Roselli from the Sam Then was my trip to West Berlin, with talks at the Giancano "family" perished. "Republican Club" with Mahler, the theoretician of Remember: Ruby was relocated to Dallas from the "RAF" (Red Army Fraction - the Baader Chicago. And it's the Chicago "families" which have Meinhof Gang - ed.) and his staff. At the time they the best-established contacts with the "heroin were openly preaching the cult of Mao ; their main industry." Another link? A link in the chain which has ploy was to destabilize the West by terror. to be broken, so that nobody will ever arrive at the (Listening to them, I always recalled Lenin's works truth. All these murders were organized after Mao

November 21-27. 1978 EXECUTIVE INTELLIGENCE REVIEW COUNTERINTELLIGENCE 41 had already died ; it is as if someone was wiping out "Live and let live. If all cars were leased out the traces - the projected alliance of the vultures equipped with spare tires and tool kits, then what from the military-industrial complex and their would the 'Autosos' firm do? Declare bankruptcy? guardian angels at the CIA with the Peking chauvinist Or hire Mafiosi to force the leasing company to give anti-Soviets must be "irreproachable." patrons cars with defects?" ...And in Messina. where I had to turn in my Fiat. My neighbor took a small receiver out of his everything worked out. The examiner didn't even look suitcase, raised the antenna, found Radio Palermo. in the baggage compartment. I. however, said to him : They were transmitting music - it was tender and "For shame. you didn't provide any tools." heavy and full of sun and warmth, languor and The examiner answered in Italian: anticipation. "Non parlo inglese." "Capriccio Siciliano. " said my neighbor. "the "Oh well, so much the better." melody of a serene morning. Do you like it? " At night my neighbor in the next berth explained :

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42 COUNTERINTELLIGENCE EXECUTIVE INTELLIGENCE REVIEW November 21-27. 1978 Arabs lead UN drive for nuclear power

IAEA report ridicules zero growth, appropriate technologies

In a tightly coordinated maneuver in the United most of the IAEA's efforts and funding to the policing Nations General Assembly Nov. 2, the Arab bloc and of non-proliferation of nuclear weapons. leading Third World countries allied with the Soviet sector nations and protechnology Western European Annual report forces to pass two resolutions increasing technical The resolutions, which were passed by a consensus at assistance in nuclear power to developing nations and the end of the day-long debate, followed an un­ increasing their representation in the UN's precedented, strong annual report to the General International Atomic Energy Agency. The resolutions Assembly by IAEA head Dr. Sigvard Eklund. also called for the convening of a 1981 or 1982 In his speech Dr. Eklund denounced the coupling of conference on the peaceful uses of atomic energy. non-proliferation and the peaceful uses of atomic In a move which caused some surprise, the energy, and strongly criticized the "irrational" resolution increasing IAEA representation from attacks on nuclear power by those, he said, who "hide Africa, the Middle East, South Asia, and Latin behind terms like 'appropriate,' 'soft' or America was presented by the Ambassador from 'intermediate' technology" to deny nuclear energy to Saudi Arabia, Mr. Baroody, who noted that "it is very both developing and advanced sector nations. rarely that I submit resolutions." Baroody also called Eklund called upon the signatories of the July 1978 for the broadening of the agenda of the IAEA's Bonn Summit to honor their stated commitments to scheduled conference on the nuclear fuel cycle to nuclear energy and, in a pointed reference to the stress "measures to promote international United States, "not to abridge or change their supply cooperation in the peaceful uses of nuclear energy for contracts" with other nations. economic and social development, particularly in the The IAEA head also referred to the collaborative developing countries." In view of the infrequency of efforts of his organization with the Nuclear Energy Saudi sponsorship of such resolutions, and also Agency of the Europe-based Organization of because the Saudis currently occupy the Economic Co-operation and Development, and noted chairmanship of the IAEA Board of Governors, the advantages of having the IAEA headquartered in Baroody's move is seen as an indication of full and Vienna where other energy agencies, including the forceful Arab bloc support for nuclear power in the Organization of Petroleum Exporting Countries emerging nations. (OPEC), are located. But the strong and broadly based support for The IAEA is known to be strongly influenced by nuclear energy at the UN, among both developing and progrowth industrial and scientific forces who are the developed nations, also reflects the fact that the political backbone of the European Monetary System majority of the international community - hard-hit (EMS). Observers at the UN agreed that Saudi by the high cost of energy since 1974 - is increasingly support represented a close policy coordination unwilling to accept demands for austerity and between the EMS and the Arab Monetary Fund. deferral of industrialization plans. And developing In the day-long debate, Soviet bloc nations gave nations in growing numbers - including the OPEC unusually strong support for transfer of nuclear countries - are turning aggressively and with technologies to the developing countries. determination to nuclear forms of energy as the Czechoslovakia asked the Assembly to "recall that solution to their problems. Czechoslovakia is the initiator of the idea that tech­ A second UN resolution, introduced by Yugoslavia, nical assistance should be granted as a matter of a strong force in the Non-Aligned Group, called for priority to the economically least developed "much greater emphasis on questions of technical countries," while Mr. Komives, the Hungarian assistance ... on a long-term basis" to Third World representative, demanded that fusion power be nations. This resolution opposed earlier British included in the framework of the proposed conference Empire and American resolutions that channeled on new and renewable energy.

November 21 -27. 1978 EXECUTIVE INTELLIGENCE REVIEW ENERGY 43 The final sally in this important victory for world industrialized countries will affect the developing development of nuclear energy came from Pakistan, nations also. They cannot be indifferent to the possible which requested that the Saudi resolution delete results. reference to a December 197 7 Assembly resolution that coupled non-proliferation with nuclear energy Program to solve the energy shortage development. The Saudis agreed, and Mr. Maik, the On the global energy front, there are certain steps Pakistani representative said quietly, but tri­ the industrial world could take to ease the energy umphantly, "the (Saudi) proposal has the support situation. Among the more important are the of the majority of the member States of IAEA, following: including that of the Group of 77 (the Third World ... Secondly, the industrial countries must forge nations - ed.)." ahead with nuclear-power programmes, which at The response of the British Empire nations, present offer the only immediately available including Canada and Australia, and also that of the alternative to traditional means of producing United States, was to reiterate their "concerns" about electricity on a large scale. nuclear proliferation. Thirdly, as developing countries turn increasingly But they were not about to call for a vote, and to nuclear power in the next decades, they will be in allowed the resolutions to pass by consensus. This is competition with the industrial world for available all the more striking since strong U.S. disapproval had uranium resources. To reduce this competition it is squashed a similar resolution proposed by Nigeria in desirable that all countries should promote the 197 7 General Assembly. prospecting for uranium and that the development of - Lei' Johnson the fast breeder reactor should continue, since there­ United Nations correspondent by the world's nuclear-fuel resources would be extended lOO-fold. Fourthly, as I have already said, the developing countries must be helped to introduce peaceful IAEA head: developing nations nuclear-power technology wherever this is economically promising. need nuclear power The remarkable paradox that we now face is that, while the Governments of the main industrial Sigvard Eklund. director-general of the In ter­ countries are committed to all or most parts of this national Atomic Energy Agency. ga ve an four-point programme, ...the introduction of nuclear unprecedented. strong endorsement of the extension power has slowed down considerably, and even halted of nuclear power to Th ird World nations in his report in some countries. to the Un ited Na tions General Assembly on No v. 2. Som e highligh ts: Regulatory morass We now have a situation in which ...nuc lear power ...The International Fuel Cycle Evaluation which plant operators in the free-market countries are being began last year is now fully under way, with 53 compelled to turn to other sources of energy. One countries participating. ... The most important principal reason for this is the almost incredible aspect is that. if a country is prepared to renounce complexity of the regulatory and juridical procedures nuclear weapons and to accept safeguards covering that nuclear projects must now contend with. all its nuclear activities to verify compliance with that Although the time needed to build a nuclear power commitment. it is free to engage in any form of peace­ plant is of the order of six years, it can now take as ful nuclear activity, including that based on regional long as a dozen years in some industrial countries to cooperation. Indeed, the more technologically steer a nuclear project from start to finish through the advanced countries should help it to gain access to maze of juridical and regulatory hurdles. The peaceful technologies. operator of the plant cannot plan effectively over such This implies that there is an equal obligation on a long and uncertain time span, and his capital costs supplying countries not to abridge or change their spiral as interest charges mount up. The matter is supply contracts. Irrevocable safeguards must be made even more difficult by major changes and balanced by irrevocable commitments to supply .... uncertainties in Government policies in some As history shows, there is no correlation between the countries. spread of nuclear weapons and that of nuclear power ....Nevert heless, in spite of all the facts and 'Appropriate' technologies not the answer logic and against all argument, the opponents of As I said at our General Conference in September, nuclear power continue to persist, irrationally, in the reasons for this confusion are probably imbedded maintaining that nuclear power leads to proliferation. in certain fundamental changes of attitude in some The outcome of that argument and of other campaigns quarters of affluent countries towards science and being waged by the opponents of nuclear power in the technology in general. I remarked in Vienna that,

44 ENERGY EXECUTIVE INTELLIGENCE REVIEW November 21 -27, 1978 hiding behind such terms as "appropriate." "soft" or The main sources of technical assistance in the "intermediate" technology. there are many wishful nuclear-energy field are the Agency's various thinkers today who would have a world where the programmes. As the report before this Assembly developing c.ountries can make do with windmills shows. they have been growing steadily. although not while the industrial world contents itself with zero nearly as fast as many of the developing countries. growth and consumes the fruit of past achievements. and I myself. would wish. As I have said. the Agency's Let me repeat that there should be no mistake: small budget received unanimous support in September of non-conventional energy sources may provide the best this year. but there were many developing countries way of meeting the energy needs of small. rural that expressed regret that the growth in our safe­ communities. but they cannot turn the wheels of guards activity was not matched by an increase in the industry of any country nor can they help it to attain programmes designed to promote the use of nuclear eventually a self sustaining economic base. nor can power. especially in the technical assistance the industrialized world ever maintain its standard of programme.... living without expanding its energy consumption.

Oil -producing nations ioin the nuclear club

An Arab journalist recently stated that the Organ­ grams in the underdeveloped sector, Iran currently ization of Petroleum Exporting Countries (OPEC) has four fission reactors under construction. two from sees as a solution to the dollar crisis the United States the French firm Framatome. and two from West adopting a global program for fusion and fission re­ Germany's Kraftwerke Union. In total. Iran projects search and development. He indicated that the major­ that an additional 12 to 16 reactors will be constructed ity of the leaders within the oil cartel see that such a before the turn of the century. eight of which are to be resolution to the "energy crisis" led by the United supplied from the U.S. - most likely by the West­ States would trigger new confidence within the inter­ inghouse Corporation. However. the recent crisis in national community in the U.S. economy and Wash­ Iran has upset these plans. and the purchase of eight ington's commitment to economic growth. additional reactors from France and Germany has Such a sentiment reflects the growing support for been postponed for at least a year. nuclear energy by the oil producing nations as the The Shah of Iran has been one of the most vocal pro­ most viable alternative to petroleum. Despite the ponents of nuclear energy internationally. Last year much publicized myths of the "greedy sheikhs" who his government sponsored a forum attended by 41 are making millions by subjecting the world to their nations. to which the Shah sent a message of greeting "overpriced" oil. the oil producing states are in fact in­ naming fusion energy as the new energy source for the creasingly advocating the development of nuclear world in the 21st century. energy in order to conserve their precious oil reserves The Iranian Atomic Energy Organization (IAEO) to feed futur.e refining and petrochemical industries. has also begun research and development into nuclear Nuclear energy is being adopted not only as a future energy - most importantly laser technology. Earlier power generating source but as the basis for desalin­ this year the semi-official Iranian daily. Ka yhan. ation projects and for medical purposes. The size of published enthusiastic praise of fusion power and an­ nuclear programs varies between the OPEC nations. nounced that the IAEO has embarked on a program of depending upon their respective stages of develop­ laser fusion research. ment. population size and long-term development Not only is nuclear energy envisioned as a source of plans. power for Iran. but the Shah himself foresees the day But there is one invariant which characterizes all of when nuclear plants will power desalination projects the nuclear plans within OPEC. In no case have U.S. along the Caspian Sea as a means of irrigation. During companies been given contracts. As a result of the a September visit to Iran, Japanese Prime Minister Carter Administration's policies on non-proliferation Takeo Fukuda promised assistance to Iran with its and in particular Energy Secretary Schlesinger's nuclear program. Kayhan later reported that the negative position towards nuclear energy. Japan. Japanese firm Mitsubishi was planning to send a dele­ France. West Germany and the Soviets have received gation to Iran to propose the sale of reactors to Iran. every major contract. In brief. here is what the nuclear programs of five Saudi Arabia: Only over the last two years have the major OPEC nations. and the outlooks of various Saudis begun to investigate the applicability of OPEC national leaders. look like on the issues of both nuclear energy to their economic development. In fission and fusion. December. 1977 Saudi Arabian Oil Minister Zaki Iran: With one of the most advanced nuclear pro- Yam ani signed an agreement with the French for

November 21-27, 1978 EXECUTIVE INTELLIGENCE REVIEW ENERGY 45 nuclear research assistance and joint exploration of ating reactor. France will also provide highly en­ uranium in Saudi Arabia. Just last month. the Saudis riched uranium to feed the reactor. As well. Frama­ signed a similar agreement with West Germany. Both tome will sell Iraq a smaller research reactor. in a agreements portend the future supply of research deal which has yet to be finalized. It is estimated that reactors to Saudi Arabia. the power generating station will be operational by the Unlike Iran. the Saudis do not foresee the use of mid 1980s. nuclear fission as a means of generating power. but rather are looking to nuclear energy as a source of Libya : Like Iraq. Libya has kept its nuclear program massive desalination projects. As well. the Saudis are quiet. A $300 million agreement was signed two planning to employ nuclear energy for medical pur­ months ago between Tripoli and Moscow for a large poses. fission plant for power generation. Libya has also Saudi Prince Mohammed ben Faisel. as a repre­ aggressively promoted an educational drive to train sentative of his government. this summer broke the nuclear physicists both in the U.S. and in Europe. silence from Riyadh on the issue of fusion power. Speaking on New York City television. Faisel warned The United Arab Emirates (UAE) : In tandem with against scare stories from environmentalists against the creation of a board of prominent UAE political and fusion. which he termed the "energy source of the business figures to centralize industrial development. future." the UAE this summer finalized an agreement with France to establish cooperation on nuclear fission. Iraq : Iraq. like its naighbor Saudi Arabia. is just This was the first foreign agreement aimed at beginning its nuclear program. Framatome will pro­ establishing a nuclear program within the UAE. vide the Iraqis with one 600 mega watt power gener- u.s. oilmen seek expanded nuclear energy role

The annual meeting of the American Petroleum people," he continued, in an apparent reference to Institute in Chicago opened Nov. 13 with a panel some oil interests, "thought it was necessary to discussion which centered on the need for more compromise to get any bill out. The Farm Bureau is energy production - particularly nuclear energy straightforward - when we're right we're right, and production. Although the API is frequently derided as we don't compromise with someone who's wrong. "oilmen talking to oilmen." this year's meeting "We still need an energy policy," Grant continued. appears characterized by a desire on the part of the "Nuclear power is its substance. Fusion is a petroleum giants to broaden their political and promising source down the road, but atomic power. industrial-economic base. In fact. one of the which we have on line now, is the cleanest. safest, conference co-chairmen referred in his opening most inexhaustible source we have. We need more remarks to a "dialogue" that has been occuring nuclear plants ; we need the breeder reactor, at the among various U.S. forces favoring expanded energy core of a national energy policy." production. and stated that "one of the highlights of Adopting a conciliatory tone, the AFL-CIO's the dialogue has been in the NAACP energy Georgine declared that "I could speak for two hours or program." two years on our disagreements - but I came here to Featured on the opening panel were Robert speak on our common areas of agreement and to Georgine, head of the AFL-CIO's Building Trades enlarge to new areas where we can agree." Several department. Allen Grant of the American Farm times repeating that his views do not represent the Bureau, Thomas Ayres of Illinois' Commonwealth entire organized labor movement, the building trades Edison. and scientist Jerome Weisner of the Massa­ leader told the oilmen's gathering: "We share a chusetts Institute of Technology. common goal : the current and future growth of the The participants were united in either explicitly or economy of this nation, the continued growth of the implicitly criticizing the no-growth emphasis in the energy industry. including the oil industry. Our real Carter Administration energy program designed by strength is in our unity. Members of the Building Energy Secretary James Schlesinger. Declared the Trades Commission are also part of the petroleum AFB's Grant: "In effect we' have no national energy industry. The thing that unites us all is the under­ policy, despite the fact that the President signed what standing that the only real alternative is nuclear he calls an 'energy bill.' The reason we don't have an power .... Refusal to unite would ensure our defeat energy bill and the reason Congress could not agree is by the philosophy of no-growth." that the original proposal waS nonsense. Many

46 ENERGY EXECUTIVE INTELLIGENCE REVIEW November 21 -27. 1978 THIRD WORLD )

Indira Ga ndhi/s political comeback How fast? How fa r? ..

A tiny, rural parliamentary constituency in southern (produced by the resignation of the seat Gandhi won India named Chikmagalur made political history for by a Congress-I member of Parliament) , and all the the entire South Asian subcontinent on Nov. 4. During campaign issues. In all cases the Janata was out­ the March 1977 general elections Indian voters maneuvered. Gandhi started off with a strong pro­ humiliated the Congress Party government and science, pro-industry campaign style and the largely turned it out of power. This time a record 76 percent of rural population, much to the World Bank's chagrin. the eligible population cast its ballots to return the chose industrial development, despite the Janata's controversial former Prime Minister of India, Mrs. ruralist slogans. Indira Gandhi, to the national parliament. The election returns were not programmed in any International ramifications scenario-producing computers in London or All eyes are now on Pakistan, India's neighbor. As the Washington. As Western newspapers have soberly Executive In telligen ce Review has documented. acknowledged, Gandhi's presence as the unofficial Henry Kissinger's threats and blackmail against head of the parliamentary opposition puts her one step former Pakistani Prime Minister Zulfikar Ali Bhutto from the office of Prime Minister. were aimed primarily at wrecking a historic detente It was the ruling Janata Party's intention to make and development perspective for the Indian sub­ any electoral contest against Mrs. Gandhi, big or continent which Bhutto and Gandhi were in the small, a major test of its strength. So Chikmagalur process of consolidating. Bhutto today sits in a death became the scene of hectic showdown campaigning cell, condemned to hang by the ruling bogus court and with the J anata Party deploying all its party power­ the dictate of a military junta. Pakistan's military houses, including even the Prime Minister, Mr. Desai strongman, Gen. Ziaul Hague, has gone to great himself, to campaign against Gandhi. The Janata put lengths to appease India on the theme of "genuine before the population its vision for a ruralized India, nonalignment" and to enforce on his nation a policy of with Desai charging that a vote for Mrs. Gandhi was persecution, floggings, and political repression. "a vote for authoritarianism." And the Janata Party Repeatedly before the Chikmagalur campaign, lost. Gandhi spoke out for Bhutto's life. She charged that Nov. 4 was Mrs. Gandhi's day. The election victory there had been a foreign conspiracy against her is the most crucial step thus far in her bid for a poli­ government, and ·that the period of 1975-1977 saw the tical comeback. As Gandhi herself stated this week on unfolding of a plot that removed the legitimate govern­ a private visit to London, "A political comeback? I ments of Bangladesh, India, Pakistan and Sri Lanka. never went anywhere. " This was precisely the Janata Gandhi, during the electoral campaign, outlined the Party's problem. Ever since her disgraced exit from method behind her foreign policy: "It is not merely office in March 1977, the opposition has attempted having an Indian government but an Indian govern­ through false arrests, corruption commissions, ment which regards national interests, first, second criminal charges, and even threats to change the con­ and last, and which takes every decision in the light of stitution, to seal Gandhi off from the public eye. long-term interest." The Desai government's new­ It is to the credit of a small group of political found "detente" with a Pakistani junta which has advisers and Mrs. Gandhi's own courageous fighting exhibited overtly fascistic tendencies, its silence on that the Chikmagalur election was a success. Her the Bhutto case, and its effort to go,all the way toward advisers, in particular the Karnataka State Chief a meaningless India-China relationship will all come Minister Devraj Urs (who also functioned as her under heavy scrutiny with Gandhi in the parliament. campaign manager since Chikmagalur falls inside his state), refused Janata provocations to campaign on Gandhi's campaign · false issues. In mid-July, when disenchantment with Gandhi's campaign strategy was to take the offensive the Janata Party's misrule was at a high point, Urs against the Janata government's policies. The ground and Gandhi chose the electoral venue, the timing for her programmatic fight was laid when Gandhi, at

November 21-27, 1978 EXECUTIVE INTELLIGENCE REVIEW THIRD WORLD 47 the invitation of Urs, placed the foundation stone for communalist actions serve the interests of those the Mangalore steel plant. The plant is a few miles foreign powers who wish the decentralization and from Chikmagalur. Gandhi's action was directly breakup of the Indian nation. scornful of the Janata government and the World Bank promoted back-to-the-villages movement. The election outcome When the Congress-I (I for Indira) announced her Many of the diversities of India as a whole are present candidacy in mid-July, it was scoffed at, but within in Chikmagalur. Historically, it is a coffee-growing weeks the small constituency became a mi.ni-India. area, taken over by the British East India Company. Gandhi addressed seven or eight rallies a day, and When Britain gave independence after World War II, visited the villages to discuss the impact of national the coffee plantations were turned over to the 'brown policy and the need for industry and science with her sahibs' (brown masters) to run. Since the 1950s audiences. She did not speak the language of the state, Congress Party governments have tried to break the but refused to let this become a barrier. Gandhi spoke back of this social structure through land reforms, as a national leader in English or Hindi, and Urs trans­ rural debt moratoria, and special programs for the lated her speeches to those gathered to listen. Gandhi minorities, particularly the lower castes, which have chose a south Indian constituency (she is from the functioned as virtual indentured and landless labor. north) and stated repeatedly that she did not think, given the Janata government's policies against her, that she could have received a fair election in the north. She was well received on this basis. One rueful political analyst summed up the ambience of the Reason wins in Chikmagalur Gandhi campaign: "A large section of the rural population thinks that in Chikmagalur they are voting Under the headlin e, "Chikmagalur: Reason for the next Prime Minister." Wins ... Turning Poin t in Subcontinent" form er In dian Minister of Ch emicals, K. R. Ganesh The Janata strategy rated the Gandhi victory's international signi­ On the scene observers described the Janata mud­ ficance. Ganesh, one of the key political leaders slinging against Gandhi as "fascistic." This was not a nationally who campaign ed for Gandhi, ga ve his characterization of Prime Minister Desai or for that analysis of the current issue to the In dian matter Defense Minister Jagjivan Ram's wing of the newsweekly New Wave. party. But these leaders fell into line behind the left­ Indira Gandhi's commanding 77,000 margin right extremists within the Janata Party, as they have victory is the first decisive breach in the strat­ on many points of policy over the past months. egic conspiracy of the Anglo-American-Chinese Industries Minister George Fernandes, an ally of axis and their monetarist agencies to convert Willy Brandt's Second International, and the Com­ South Asia, extending from Iran to Vietnam into munist Party of India-Marxist ran the Chikmagalur an Eastern extension of NATO, as an anti-Soviet campaign against Gandhi. Posters with skulls area, by bringing about the destabilization of one dripping blood and Gandhi's photograph in the back­ after another nationalist and progressive ground were plastered up all over the constituency; regimes. Sheikh Majibur Rahman (of Bang­ riots were stage-managed by provocateurs. To the last ladesh), Bhutto (of Pakistan), Gandhi (of day. an attempt to provoke a law-and-order crisis in India), Sirimavo Bandaranaike (of Sri Lanka) the Congress Party-run state was on the agenda. and even the Shah of Iran with all the complex Fernandes' campaign issues were clear: cottage interplay of social, political and religious forces industries are India's future, Gandhi is a "fascist" in Iran, are glaring pointers to this strategy. and the Janata government means "democracy." The Their aim was to install dictatorial and CPM took a more sophisticated approach. They obscurantist regimes, or seduce and encircle charged that Gandhi was the worst of the evils that inept and weak governments. The internal sit­ plague India. The landlords of the state, so often uation in each of these countries and the attacked by the CPM, this time rather liked the CPM's omissions of the regimes no doubt facilitated the defense of their interests against Congress Party land imperialist objectives. But to deny the existence reform programs. of a conspiracy and keep one's eye shut to it is to The right-wing side of the Janata, usually led by the neglect the strategic tasks in this crucial region so-called cultural militias of the Rastriya Sevak Sangh of the world. (RSS) - the "saviours of the motherland" - The events in Afghanistan took the inter­ abandoned Fernandes. The RSS, the military arm of national conspirators by surprise. The unfolding the Jan Sangh wing of the J anata Party has been scenario in India has thrown a spanner in their deeply implicated in provoking caste and religious works. (Hindu-Muslim) strife in the north. Gandhi has made them one of her consistent targets, charging that RSS

48 THIRD WORLD EXECUTIVE INTELLIGENCE REVIEW November 21 -27. 1978 Former Prime Minister Gandhi and her chief Has Gandhi changed? campaign manager, state Chief Minister Devraj Urs, Efforts to decipher what is on Mrs. Gandhi's mind more than any other leaders are associated with this have been at the center of virtually all political effort. Gandhi's campaign slogan, "Black Money developments in India for the last year. It is exactly a Turns Yellow" also hit at the heart of the brown sahil> year since the then-Home Minister Charan Singh dirty money operations and the conversions into gold ordered Gandhi's arrest. Nobody has ever figured out of drug-related and other illegal funds. why he made this move since Gandhi was out, under The returns spoke for themselves. Out of a toal court order, in a matter of hours and on the road to an 450,068 Gandhi won by a margin of at least 77,000. In energetic, political battle. She charged that politics, the constituency 25,000 Muslims were eligible, 167,000 more than criminal or corruption offenses, was at oppressed castes. The Lingayats (the landowning and heart of the false arrest. Since then, every move by the small business caste) were the backbone of the Janata Janata Party against Gandhi has carried the under­ campaign. currents of these charges. In January of this year the Congress Party split over whether Gandhi was its Withering Janata leader above all others. But since January, candidates National political realignment is the next step. The running under the Congress-I banner have one after J anata Party has two choices. Either it fights an un­ another smashed their Janata opponents. popular anti-Gandhi battIe merely on the issue of her Gandhi and her coterie have themselves undergone alleged misrule during the State of Emergency (1975- significant changes. There are no doubts now that in 1977). Or sane Janata elements wiIl realign the party evaluating her humiliating March 1977 electoral along issues the population feels are more important defeat, Gandhi has figured out that an inside job was than the persecution of Gandhi. Desai, and a handful pulled against her. The infamous "Sanjay mafia" - of other forces know that whatever the government the group of sychophants who attached themselves to delivers on is what wiIl determine its future, rather her son and promoted full-scale sterilization programs than the bogus equation of whether Gandhi government - are today nowhere to be found. Even Sanjay is out misrule is better or worse than Janata government of politics. Instead, prominent political figures such as power vacuums. Both have played their roles in giving Urs have promoted Congress unity from Gandhi's side the World Bank and the Ford Foundation a foothold in and, during the last week of her campaign, the India. respected former Petroleum State Minister K.R. The Congress Party, led by former Defense Minister Ganesh campaigned for giving more weight to her Swaran Singh, abstained from running a candidate programmatic efforts. Ganesh is identified in against Gandhi in Chikmagalur. This was read as an knowledgeable circles as the author of Gandhi govern­ indication in many circles that Singh is determined to ment efforts during 1975 against black money and make Congress Party unity and joint action with smuggling. Indira Gandhi's Congress forces the basis for a united One crucial campaign tactic swung the voters programmatic platform. Many "left radicals" have behind Gandhi. She used the image of a united India tried to undermine Singh's determination without and recalled the programmatic campaigns of her success. While it is known that the CPM will continue father, the late humanist Prime Minister Jawaharlal its infantile radicalism tactics, its main focus is not Nehru. The Janata was boxed into an anti-Nehru Gandhi but the pro-Soviet Communist Party of India tirade, and to that extent lost the confidence of India. (CPl). The CPI opted for neutrality in the election, Even the lowliest Indian peasant, knowing little else, reflecting divisions in the party between those is aware that it was Jawaharlal Nehru who led India's favoring an open door to collaboration with the freedom movement and pulled his nation into the Congress (es) and those calling for an ultraleftist modern world united, not as a collection of petty "plague on both your houses" attitude toward the squabbling kingdoms. The Janata Party was given Janata and Congress parties. Which way the CPI and one year to follow those footsteps. Its year has gone by CPM go wiIl be important in the realignment. quickly.

November 21-27. 1978 EXECUTIVE INTELLIGENCE REVIEW THIRD WO RLD 49 Gandhi: India needs nationa l unity to develop

Th e follo wing are excerpts from an policies. They were waiting for an Q: Are they acting under foreign interview with Indira Gandhi pub­ opportunity to hit back. They did pressure or is it because of their lishedin theres pected In dian news­ hit back at Jawaharlal Nehru at own outlook ? weekly New Wave shortly before the time of the Chinese aggression A: It is a mixture of both. It is their the former Prim e Minister's by forcing Krishna Menon's outlook. I do not think they need victory in the Chikmagalur State removal which was a very big blow much pressure. BasicallY, they are parliamentary elections. to Nehru. It weakened his authority inclined towards that. But there is considerably as also the authority also pressure. no doubt. Q: Ma dam, how do you assess the of the Indian government. relevance of Ja waharlal Nehru 's As is obvious from the state­ A Fresh Consensus? developmental stra tegy, his ments of some of these people, they Q: Behind Panditji 's policies and domestic and foreign policy fra me­ are not at all interested either in development stra tegy there was a work, which the Ja nata conglomer­ industrial development or in broad national consensus which ate is trying to denigra te and de­ modernisation. They are positively was reestablished by you after the stroy? against modernisation. Then there split in the Congress in 1969. Th ere A: Jawaharlal Nehru's policies are others who may want modern­ is no such consensus at present. Do will remain relevant so long as isation or rather a superficial kind you think there is need for a fresh there is poverty, inequality and in­ of modernisation but who may not consensus among all the progress­ justice in Indian society. After all. bother about true economic inde­ ive and democra tic forces which we followed these policies not pendence as is obvious from are presently working at cross pur­ merely because they were today's industrial policy .... poses? Ifso, how do you propose to Jawaharlal Nehru's but because achieve it? we considered them relevant ; in A: I certainly think there is need Q: Are the Ja nata policies bene­ fact, only these policies are pos­ for a fresh consensus. I do not know ficial to big Indian industries ? sible in the Indian situation. And, I how to achieve it today when A: It is not benefitting all of them. think that the success we achieved everybody seems to have trained It is benefitting only a few. Look at within the country as well as out­ his gun on me. But as I have said the unfairness of the gold policy. I side was proof of this relevance. repeatedly that if somebody could do not have inside information but I What is freedom worth if a major­ wage this fight by my remaining am told that there are about seven ity of the people are not free to outside. I would have gladly done families or firms which have defin­ enjoy it? so. I did remain outside, and I itely benefitted. Perhaps this is the found nobody was doing it. In fact only way they could think of Q: Wh at. in your opinion, are the the time we lost thus is proving a turning black money. which has reasons which ha ve prompted the serious handicap now. Had we accumulated recently. into yellow. Janata party to devia te from started the fight right from the Nehru 's policies. including nuclear beginning the situation would have policy, aimed at industrial develop­ Q: Does it not harm national indus­ been different. My advice to my ment and modernisa tion of In dian tries? party was that we should go to the society? A: Certainly it does. people immediately even if we A: The reasons are that they dis­ Not only that but also buying were stoned on the day we were de­ liked the policies from the very be­ goods abroad which can easily be feated. ginning. These people. the previous produced in India. or which we can Consensus can be achieved only Union Home Minister (Charan do without. After all. we are at a by people who realise the objective Singh) . for instance. disapproved stage of development when we situation and try to persuade those policies even when he was in cannot afford luxury in place of others. The situation is far more the Congress Party. He was quite people's necessities. So the Janata serious than is realised. It is not a open about it. So many other people government's industrial, export. question of personalities or even of like the present Prime Minister and import policies are not in the parties. It is the question whether and others. who were in the Con­ national interest. The effect of it this country is going to be inde­ gress organization in 1959. also did will be felt later. It will hit us with a pendent as the founding fathers not like them. They argued against bang. When we left the government had envisaged it. It is not merely these policies. But they did not we left the economy in a very sound having an Indian government but dare vote against them in the AICC and stable shape and this is what an Indian government which because they knew the majority will keep them going for some regards national interest first. was overwhelmingly for those time .... second and last, and which takes

50 THIRD WO RLD EXECUTIVE INTELLIGENCE REVIEW November 21-27, 1978 decisions in the light of long-term removed or tilted the other way I it has not industrial strength. It interest. It is not only Indian inter­ do not know. There is a definite now hopes to build it with the help est but the interest of world peace change in the government's atti­ of America. I do not know how far and of other developing countries. tude. America would like China to There is no such thing as genuine become strong. The West wel­ India-China Relations, nonalignment. Whatever non­ comes China as a market at this Camp David alignment was, it was established moment or as a place for their Q: Ho w do you vie w the Janata's by Nehru, Nasser and Tito. We do goods. Their great disappointment foreign policy, particularly its not need Mr. Desai or Mr. Vaj­ was that India, which was a con­ China policy, and the so-called payee to tell us what the real thing siderably big market, was more policy of "genuine nonalignment" is. and more able to meet its own or the policy of equidistance ...I only hope that Mr. Vaj­ needs. So now they find there is a towards the Soviet Union and the payee is not going to jettison very big field by China. But the USA ? Wh at is your reaction to the national interest during his trip to Chinese are not fools. I just cannot Camp Da vid agreement? Peking. And also, it is not clear say in what direction all this will A: ...Our friendship with the which way China is heading ... lead. Soviet Union was in no way against And the West, which is so con­ However much the Chinese may the USA, or China for that matter. cerned about democracy in India, dislike or talk against the Soviet And we did try to befriend the USA is not concerned about democracy Union, I doubt very much whether in spite of disagreement on many in China or Pakistan and in so they would like to get involved in a points : for instance, on Vietnam many other countries where it has conflict with the Soviet Union. and their policies towards other not only not sided with democracy So far as Camp David accord is nations of Africa, Asia and Latin but often helped overthrow demo­ concerned, anything which is America. But they always had a tilt cracy and put up dictators. rejected by the Arabs cannot pos­ against us. Why has that tilt been China has got nuclear bombs but sibly succeed.

Proceedings of the Conference on

On May 2. 1978. the F(;sionEn ergy THE INDUSTRIAL Foundation assembled a select group of specialists on industrial develop­ ment. the Third World. and southern DEVELOPMENT OF Africa in Washington. D.C. They dis­ cussed solutions to the region's explo­ SOUTHERN AFRICA sive racial and political crisis based on the prospects for rapid industrial development of the entire region.

Their approach has now been put forward by leading int�rnational forces includ- ing the West German government. As the southern Africa crisis deepens. the FEF conference Proceedings are the most Participants Ipartial listing): important background briefing on Africa policy you will obtain anywhere. -David Carr National Foreign Trade Council· �------The complete proceedings 01 the Conlerence on The Industrial -Lic. Carlos Romero Barrera Development of Southern Africa are available in attractive Mexican Ministry of Foreign Relations· pamphlet form from the FEF for only $40 00 postpaid .

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November 21 -27, 1978 EXECUTIVE INTELLIGENCE REVIEW THIRD WORLD 51 Midterm elections prelude disaster

Kissinger-Kennedy machine strengthens grip on GOP, Dems

"Read 'em and weep," the comment of one observer Republicans?" In Illinois, Chuck Percy, the leading on the 1978 elections, accurately summed up the drug decriminalization advocate in the U.S. Senate, results of the fraudulent national balloting Nov. 2. The was reelected by an alleged last minute massive voter 1978 elections represent a substantial political setback shift, although two-thirds of the Republican county to the nation, and, looking ahead to 1980, a potential chairmen opposed his renomination and reelection. disaster in the upcoming presidential race. In Pennsylvania, Richard Thornburgh has been In five "megastates" - California, New York, elected governor. Thornburgh comes straight out of Pennsylvania, Michigan, and Illinois - representing the Kennedy-linked networks in the Justice three fifths of the electoral college vote necessary to Department, as did his nominal opponent Pete elect a President - operations by the Anglophile Flaherty. Further proof of Thornburgh's sentiments is nexus around Henry Kissinger and the Zionist lobby that he held back from supporting the GOP took giant steps forward to consolidate supraparty Congressional candidate in Delaware County, to rule in this country. This result greatly strengthens permit Kennedy-connected dope advocate Robert the position of City of London-mandated forces in the Edgar to win reelection. With Republicans like these, Democratic Party to seize the Presidency directly in it is no wonder that Henry Kissinger can be touted as a 1980, and to dispense with the need for unreliable GOP candidate for high office. surrogates such as Jimmy Carter. It is this prospect that underlies the Ted Kennedy boom. Michigan and Ohio The election is now being used to claim a mandate The differing results in Michigan and Ohio exemplify for austerity and genocide. New York Tim es the crimes and blunders committed by the Republican columnist James Reston dubbed last Tuesday's National Committee under Kissinger's direction. In contest "the austerity election." Michigan, where the U.S. Labor Party has been a strong political force on behalf of growth, the GOP, The national picture dominated by arch-traitor Max Fisher, sabotaged the In five key states, two-party contests are a joke. In Labor Party as an electoral force. The Republicans both California and New York the Republican proposed the notorious third-party qualifying primary candidates for governor ran their races as if lead law in 1976; they permitted massive fraud against the weights were tied to their feet. The U.S. Labor Party U.S. Labor Party's primary vote this year, thereby supplied both Evelle Younger in California and Perry excluding the USLP slate from the ballot ; and they Duryea in New York the ammunition needed to defeat corrupted the federal judge to rej ect the Labor their British-backed opponents. But Duryea in New Party's challenge to the fraud. The result of the Fisher York sat on the intelligence of the Bronfman drug and operation on Tuesday was that Republican Bob Griffin gambling money used to pay for Governor Hugh was defeated for Senate, and long-time Congressmen Carey's phony television campaign. In California, Gary Brown and Elford Cederberg also went down to Younger abandoned his earlier emphasis on nuclear defeat. Only William "Cornflake" Milliken (so-named development for industrial growth, which would have for his advocacy of cereal as an energy sour ce) won blasted "small-is-beautiful" advocate Jerry Brown reelection for Governor. out of the race. Younger's campaign was sunk when By contrast, in Ohio, the Labor Party and the he committed himself totally to pursuing the chimera Republicans have enjoyed a reasonable degree of of tax-revolt. cooperation since the fight against vote-fraud in 1976. This year Governor James Rhodes won reelection Pennsylvania and Illinois against his Kennedy-linked opp onent, Lt. Governor In Pennsylvania and Illinois where nominal Richard Celeste. Rhodes limited Celeste's plurality in Republicans won, the question is, "you call these guys CuYahoga County (Cleveland) to a mere 44,000 votes.

52 u.S. REPORT EXECUTIVE INTELLIGENCE REVIEW November 21 -27, 1978 ------)

in 1980

In Cleveland, the Labor Party concentrated its anti­ entrenched in the poverty apparatus, has long been a Kennedy, progrowth fire. The Party's candidate for proponent of low-wage public works jobs and the governor received nearly 10,000 votes there, and ran decriminalization of marijuana. Hanania-Freeman, ahead of his nominal third-party opponents by two-to­ on the other hand, campaigned on the U.S. Labor one. The Labor Party also pulled strong support in the Party's growth-oriented economic development blue-collar districts north of Cincinnati. The notorious program and against any moves to relax penalties for Ohio vote-fraud machine had to be content with the drug abuse. ouster of Ted Brown, long-time incumbent Secretary While supporters of the Hanania-Freeman of State, who led the fight against fraud in 1976. He campaign are continuing to amass evidence of was officially defeated by a margin of .038 percent. extensive machine fixing, intimidation and other irregularities, the candidate herself is proceeding The lessons of 1978 with plans to be officially certified by Congress as the The lesson for any honest politician who seeks to district's legal representative in January. "Not only defend his constituency interests is: work with the did I win the Nov. 7 election, but I alone have the Labor Party and use its political clout to destroy the credentials to represent my district in Congress," she common enemy. Unless this lesson is learned the said during a support rally in Baltimore Nov. 14. outlook for 1980 is bad. The counterpole strategy Called the Congresswoman-elect by many of her proposed by Labor Party Chairman Lyndon H. supporters, Dr. Hanania-Freeman also said, "I will LaRouche, which would permit LaRouche, or a not wait until January's swearing in of the new candidate oriented to the Labor Party's platform for Congress to take possession of my office and fulfill my U.S. economic recovery, to win in 1980, is the only re&ponsibilities to my constituents and the voters of way to prevent a Kennedy landslide into the White this nation." She is establishing a district office, which House in the next presidential election. her supporters say will have an open door to all area -Dr. Stephen Pepper residents. Hanania-Freeman's campaign to take office will indeed present problems for Congressman Mitchell. M •• YI ••• In the months before the election, as Hanania­ Freeman picked up endorsements of civic, religious, political, and social groups, the Congressman took to street campaigning in a way he hadn't since his initial Freeman claims victory election in 1970. Mitchell also attempted to scuttle voter rejection of his marijuana advocacy by trying to over Mitchell in Baltimore hide copies of such legislation bearing his endorse­ ment. For the first time in eight years, the residents of Formally, Dr. Freeman will file a "notice of Baltimore's 7th congressional district may find them­ contest" with the Clerk of the House of Rep­ selves with a new delegate to the House of resentatives. Within 30 days, Mitchell must attempt a Representatives. Dr. Debra Hanania-Freeman, an rebuttal of the included evidence of Freeman's victory independent candidate backed by the U.S. Labor and her right to the congressional seat. Then, she may Party is contesting Rep. Parren Mitchell's claim to subpoena witnesses, take depositions and so on. The have been reelected Nov. 7 with 86 percent of the vote. final verdict will be rendered by the House Admin­ The confrontation over who will be seated in istration Committee after hearings, which cannot Congress is a clash between two widely divergent occur before Jan. 15, 1979, regardless of previous political platforms and programs. Mitchell, well- judicial decisions.

November 21 -27. 1978 EXECUTIVE INTELLIGENCE REVIEW U.s. REPORT 53 In the period between Jan. 15 - when the new Congress is seated - and the House Administration WAs.,•• ro. Committee ruling, both Dr. Freeman and Mitchell will have equal access to the House floor, equal voting rights and equal right to introduce legislation as Fabians sweep Congressional delegates. congressional races Legislative priorities The Washington State election results have left the Hanania-Freeman recently issued a 3,OOO-word state­ progrowth administration of Governor Dixy Lee Ray ment on her legislative priorities. They included: in an increasingly isolated position from the state's • Integration of the U.S. into the new European congressional delegatjon. Republican congressional Monetary System, gearing the U.S. toward a national candidates who had the chance to win two seats in the economic recovery ; state delegation threw the election to Kennedy­ • Revision of the U.S. tax code to foster high rates of Jackson-linked Democrats who are notoriously anti­ economic growth in the private sector. The first of growth. these must be a combination of accelerated deprecia­ The seventh district race was the most obvious case. tion and amortization plus tax credits for capital Incumbent Republican Jack Cunningham was elected improvements in major industries. U.S. exports must in 1977 in a special election because he campaigned on be promoted by the ending of the legislative red tape a strong pronuclear platform. In that election the U.S. presently strangling them ; Labor Party candidate effectively targeted Kennedy • Reorganization of the debt of Third World nations Democrat Marvin Durning as a "radical environ­ to allow them to develop within the new European mentalist," shaping the Cunningham victory in a Monetary System. traditionally Democratic stronghold. • A new national energy policy for the U.S. with This year Cunningham, favored to win in pre­ concerted upgrading of all areas of research and election polls, ran his campaign under Richard development. Viguerie's austerity banner and lost heavily to • Elimination of the drug problem in the U.S., which Democrat Mike Lowry. Cunningham volunteered would include federal penalties against the trafficking himself as sponsor of "Nader of the right" Howard and abuse of all illegal drugs. Jarvis's tax cut bill. Lowry accurately depicted his • U.S. elections must be safeguarded from fraud vote as a "60 percent vote against Cunningham." through regulations defining election and voter Cunningham's campaign was handled entirely by registration practices. GOP operatives associated with Richard Viguerie. Will Wertz, U.S. Labor Party candidate in the Fraud tactics seventh district race was eliminated through vote fraud in the primary election. In media spots prior to "Mitchell has never won an election honestly," a resident of his district reported to Hanania-Freeman's the primary, Wertz dubbed Lowry "a perfumed campaign staff recently. That may well be the case. version of Marvin Durning," blasting Lowry's strong antinuclear, promarijuana stance. Despite Wertz's The congressman's initial election to Congress was won by a margin of less than 50 votes in a race that urging, Cunningham never once called Lowry on these was said to be riddled with irregularities. Mitchell at issues, and lost trying to out-Lowry Lowry. Similarly, conservative John Nance Garner lost to one point threatened riots if he was not awarded the seat. Later the district was redrawn to keep the Kennedy Democrat Al Swift in a contest for the second Congressman in the House of Representatives. district seat given up by Fabian Democrat Lloyd Investigators for Hanania-Freeman have already Meeds. Garner, too, limited his campaign to the tax uncovered some heavy-handed indications of fraud cut issue. which appear to have been perpetrated by Mitchell Though eliminated in the congressional races, four sympathizers. Preliminary returns for Dr. Freeman strong U.S. Labor Party state legislative races fall into two categories, with virtually little showing in focused against the planned statewide decrim­ inalization of marijuana - which Governor Ray has between. In the first category she is awarded between and 60 percent of the vote, in the second 2 to 3 promised to veto if passed - helped shape the victory 30 of progrowth forces in the state legislature. The percent of the vote, characterized as impossible by a statistician. Researchers have also revealed previous 65-33 lead enjoyed by Fabian Democrats is evidence of probable tampering with vote machine now a healthier 49-49 split. This balance, and the counters, causing totals to return to 0 after every tenth growing Labor Party influence which resulted from vote was cast. this campaign, will help mitigate Ray's isolation as Hanania-Freeman said her staff would continue the state's congressional delegation falls under total compiling proof that she was defrauded which would Jackson-Kennedy domination. be submitted to the Department of Justice. -Marianna Wertz

54 U.S. REPORT EXECUTIVE INTELLIG ENCE REVIEW November 21-27. 1978 ledged was so dirty that he doubted that · Ourb would ever again be nominated for statewide office. Curb "predicted" the indictment of Dymally on corruption charges at the conclusion of the campaign. Brown GOP hands governorship conspicuously refused to support his own Lieutenant Governor, and Curb won. Yvonne Braithwaite Burke, to Mr. Austerity a member of the Congressional Black Caucus and the Democratic candidate for Attorney General, was also Seasoned West Coast political observers believe that defeated by Republican state senator George Republican Attorney General Evelle Younger would Deukmej ian, as Brown sat on his hands. Thus the be governor-elect in California today had he not fallen forces in his own party which had bucked Brown on victim to "Proposition 13" psychosis. Despite a flood the nuclear issue were smashed, and the psychedelic of national news stories heralding the reelection of hipsters who promoted Brown and Curb even won Gov. Edmund G. "Jerry" Brown, Jr. by a 60 percent passage of a proposition banning enforcement of majority as a sweeping triumph which will boost his criminal laws against marij uana sales in the city of chances for the Presidency in 1980, the evidence shows San Francisco. In the end, Jerry Brown appeared on that Brown didn't win the election ; Younger lost it. national television on election night to proclaim his Younger, who styled himself a "moderate," victory as a mandate for "austerity in emerged the victor in a tough Republican primary last government ... the first new idea my party has had in. spring after campaigning strongly and accurately over forty years." against Brown's "Zen government," zero-growth - Donald Baier strategy for California. Particularly notable was Younger's indictment of Brown's continual efforts to sabotage nuclear power plant construction in the ." .MO •• state. Pointing out that California voters had over­ whelmingly rejected a ban on nuclear construction in a statewide referendum. Younger challenged the con­ stitutionality of decisions by Brown's handpicked Percy v ictory a setback nuclear regulatory board and supported bipartisan efforts in the state legislature to reverse Brown's for nation antinuclear policies. Initially, Younger's campaign was so brilliantly To experienced election-watchers, the election of successful that New York Tim es editor Tom Wicker. a Senator Charles Percy of Illinois smells like an devout environmentalist. wrote a series of columns international dirty operation. Alex Seith, Percy's forecasting that the nuclear issue might well send Democratic opponent. was the leading spokesman in Brown down to defeat. and launch a national trend the last election on behalf of international trade and. against environmentalism. in particular, East-West trade. Percy has been the With the passage of Proposition 13 Brown, who had advocate of no-growth policies such as the Nuclear originally opposed the measure. became an enthus­ Non-Proliferation Act and the decriminalization of iastic "born-again" tax-cutter. presiding over state marijuana. legislative sessions to determine which government Percy was opposed for renomination by two-thirds services would be scrapped and which temporarily of the county chairmen of his own party, and as rescued with allocations from a state budget surplus. recently as this summer a quiet meeting was held in Younger went on vacation in Hawaii. And when he Chicago by representatives of Midwest industrial returned. he largely dropped the nuclear issue and giants to "deal with the Percy problem." On the eve of rapidly fell into a pattern of "me-tooing" Brown's the election, the outlook for Percy was so bleak that fiscal austerity war cries. while Proposition 13 "guru" the candidate literally fainted from exhaustion and Howard Jarvis endorsed Brown's performance in anxiety. (At that time, eight days before the election, widely circulated television commercials. Younger he was 17 percentage points back in the polls.) turned in such a lackluster performance that in the Then, miraculously, on election day, Percy carried end his campaign was reduced to near-nightly subject conservative districts by wide margins. Seith carried of ridicule for late night television comedian Johnny Democratic Chicago by slim margins, and the result Carson. Brown coasted to an easy win. was a Percy victory by 10 percentage points. Meanwhile, Zionist lobby forces had engineered a The only explanation for this outcome lies outside deal with Republicans. backing MGM records "rock­ the boundaries of Illinois. Percy benefited from and-roll" executive Mike Curb for the lieutenant "bipartisan" support provided by a crucial network governorship against the incumbent Mervin Dymally. around General Julius Klein, a founder of the wartime a traditional organization Democrat. In a campaign OSS and protege of British agent Sir William that even the state Republican chairman acknow- Stephenson, and by the official Republican leader-

November 21-27. 1978 EXECUTIVE INTELLIGENCE REVIEW U.s. REPORT 55 ship of former Governor Richard Ogilivie, who Republican Senator Jacob Javits may vacate in 1980. was instrumental in blocking investig ation of vote "Senator Kissinger" is already being touted in fraud in Illinois in 1976, and who arm-twisted national business publications, and major media Republican county leaders to work for Percy. But coverage of the Duryea campaign highlighted more important for the outc ome was the role that Kissinger's presence at select Duryea fund-raiSing Klein and his associate Philip Klutznick, president of parties. the World Jewish Congress, played in undercutting Seith in Chicago. This British-style coalition backed Percy because he is the leading exponent in both houses of Congress of the program of a Massachusetts-based group, the New Alchemy Institute, in favor of deindustrialized "appropriate" technologies. Are they working on a program to turn Thornburgh strikes butter into guns? rotten bargai n

The election of former U.S. Assistant Attorney ••• YOR" General Richard Thornburgh as the Republican governor of Pennsylvania was the result of a rotten bargain struck between Thornburgh and the Kennedy Kissinge� the kiss of death apparatus entrenched in eastern Pennsylvania. Terms of the deal - reflected when a coalition of for N.Y.'s GOP black poverty groups issued a leaflet backing Thorn­ burgh in the final days of the campaign - included the Ripe for defeat after an administration characterized defeat of traditionalist Philadelphia Mayor Frank by austerity, sabotage of nuclear power, and passage Rizzo's Charter Reform proposal to allow him to seek of an unpopular drug decriminalization law, New reelection, and the reelection of Democratic Congress­ York's Democratic Governor Hugh Carey instead man Robert Edgar, a proponent of drug decriminali­ swept to reelection on the strength of a feeble and zation, in the heavy Republican seventh district. A issueless campaign run by his opponent, Assembly­ further key aspect of the deal was to defraud U.S. man Perry Duryea, with the support and blessing of Labor Party candidates of all but a handful of votes. Henry Kissinger. As a result, Thornburgh swept to victory on the Key to the Duryea defeat was the GOPer's refusal to basis of the margin provided him by the black counter­ raise the major scandal of the campaign, uncovered insurgency machine in Philadelphia. Democratic by Labor Party candidate Paul Gallagher: Carey's candidate Peter Flaherty was targeted by machine acceptance of a $300,000 "loan" from drug and leaders, including Jesse Jackson, as a "racist," and whiskey magnate Edgar Bronfman, clearly in return his plurality in the heavily Democratic city was cut to for Carey's support for drug decriminalization. a margin small enough to hand victory to Thornburgh. Carey's abrupt switch to favor casino gambling in Thornburgh's forces, on their part, helped deliver New York City. and Carey's support for a measure the coup de grace to Rizzo's Charter Reform effort. that would permit unregulated. Cayman Islands-style Informed sources report that key figures inside the foreign banking operations in New York City. Rizzo camp either wittingly or unwittingly conspired The impotent Duryea campaign also punted on the to defeat the change, functioning as a "fifth column" drug issue. allowing Carey to hush up the election's to set Rizzo up for a race war and chaos scenario other major "hot potato," a state report showing that which is now going into operation. drug use by teenage and preteen youth had sky­ Another casualty of the deal was Republican Edgar rocketed since passage of Carey's drug decriminaliza­ Kane, who ran against incumbent Robert Edgar, a pot tion law. In fact, both Duryea and his running mate, decriminalization advocate, in the seventh congres­ Bruce Caputo, had supported the measure, and both sional district. Kane was jettisoned by the county showed signs of severe embarrassment when former Republican machine, which otherwise swept the vote President Ford, campaigning on behalf of the GOP for the state legislature in that district, and Edgar ticket, came out strongly against drug use and decrim­ squeaked through by a 1,200 vote margin. The Labor inalization at a press conference. Party candidate in that race, Tony Esposito, was Whatever the deals that were made between the badly defrauded, credited with only 500 votes out of Kissinger Republicans and the Bronfman-ba cked anticipated 5,000 minimum. Esposito ran heavily on Democrats to get Carey reelected. the outcome has set the drug issue and against incumbent Edgar's support the stage for bringing Kissinger into "elected" public for decriminalization. office - with a campaign to win the seat which

56 U.S. REPORT EXECUTIVE INTELLIGENCE REVIEW November 21 -27, 1978