THE U.S. MUST HAVE ACOLONY ON MARS BY THE YEAR- 2027! [

The U.S. economy desperately needs rapid technological transformations, above the levels of existing, "off-the-shelf" technologies. This Mars project is the best weapon we have at hand, for unleashing the kind of science-driver impulse to our economy, so . urgently needed as an integral part of an effective recovery program.

�TIlli How to reverse the economic policy blunders that led to 'Ir�ngate'

CONTENTS QUARTERLY • An international financial blow-out: ECONOMIC the real story behind 'Irangate' • The technology-driver of the new economic upsurge: the forty- year Mars-colonization project

I REPORT • The explosive impact of AIDS on the world economy

EIR Quarterly Economic�Report Make check or money order payable to: First S I ,000. annual subscnption Executive Intelligence Review 5250 single issue. PO Box 17390 Quarter Washington, OL 2004 J -0390 1987 Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh From the Editor Contributing Editors: Uwe Parpart-Henke. Nancy Spannaus. Webster Tarpley. Christopher White. Warren Hamerman. William Wertz. Gerald Rose. Mel Klenetsky. Antony Papert. Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Marsha Freeman Circulation Manager: Joseph Jennings O n Sept. 25 and 26, the Commission to Investigate Human Rights INTELLIGENCE DIRECTORS: Violations in the United States will hold its first international confer­ Africa: Douglas DeGroot. Mary Lalevee ence, entitled, "The Third Trial of Socrates-The Trial of Lyndon Agriculture: Marcia Merry Asia: Linda de Hoyos LaRouche," in Paris, France. Counterintelligence: Jeffrey Steinberg. In Paris, the center of the international conspiracy to win Amer­ Paul Goldstein Economics: David Goldman ican independence, while founding father Benjamin Franklin was European Economics: William Engdahl. ambassador there 200years ago, there will be presented the evidence Laurent Murawiec Europe: Vivian Freyre Zoakos gathered in recent days in the U.S. capital, on the case that represents lbero-America' Robyn QUIjano Dennis Small the greatest test for the survival of the United States: the case of the Law. Edward Spannaus Medicine: John Grauerholz. M.D. political persecution of Democratic presidential candidate Lyndon Middle East: Thierry Lalevee LaRouche and his associates. Soviet Union and Eastern Europe: Rachel Douglas. Konstantin George In the words of Don Victor Girauta, chairman of the Fact-Finding Special Projects: Mark Burdman Committee of the Commission to Investigate Human Rights Viola­ United States: Kathleen Klenetsky tions, the Washington hearings took place "at an historic point in INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura world history." He said, "Because of the truly apocalyptic nature of Bogota: Javier Almario the crisis facing humanity, decisions taken today will affect the lives Bonn: George Gregory. Rainer Apel Chicago: Paul Greenberg of every person on earth over the foreseeable decades to come." Copenhagen: Poul Rasmussen The Washington hearings, summarized on pages 58-61 of this Houston: Harley Schlanger Lima: Sara Madueno issue, heard evidence that the entirety of the so-called legal proceed­ Los Angeles: Theodore Andromidas ings against LaRouche et al. has stemmed from the same illegal Mexico City: Josefina Menendez Milan: Marco Fanini "secret government," whose policies of selling arms to Khomeini New Delhi: Susan Maitra and supporting drug-running "Contras" were vociferously opposed Paris: Christine Bierre Rio de Janeiro: Silvia Palacios by LaRouche over the years. Rome: Leonardo Servadio. Stefania Sacchi On page 34, LaRouche himself pays tribute to the U.S. federal Stockholm: William Jones United Nations: Douglas DeGroot Constitution in his usual way, by pointing toward new knowledge of Washington, D.C.: Nicholas F. Benton Wiesbaden: Philip Golub, Goran Haglund American history and its links to a very old continental European struggle, between city-builders and oligarchs. For the occasion of EIRIExecutive Intelligence Review (ISSN 0273--fJ314) is published weekly (50 issues) except for the second week the anniversary of the 1787 Constitution on Sept. 17, we are also of July and last week of December by New Solidarity International Press Service P.O. Box 65178. Washington. pleased to reprint Pope John Paul II's speech upon his arrival here DC 20035 (202) 785-1347 (page 62), which has been downplayed by the major news media in European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308. favor of sensationalist coverage of disputes over so-caned social Dotzheimerstrasse 166, D-62oo Wiesbaden. Federal Republic of Germany issues. Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. Michael Liebig In the Feature, page 26, LaRouche continues a strong facet of In D."mark: EIR, Rosenvaengets Aile 20, 2100 Copenhagen OE, Tel. (01) 42-15-00 his work in defense of Western freedoms, developing for an audience I" M.xico: EIR, Francisco Dias Covarrubias 54 A-3 of West German military and industrial leaders the need for a crash Colonia San Rafael, Mexico DF. Tel: 705-1295. program to meet the Soviet threat in the area of radio frequency JfI(HI" subscriptio" sal,s: O.T.O. Research Corporation, Takeuchi Bldg .• 1-34-12 Takatanobaba. Shinjuku-Ku, Tokyo weapons. 160. Tel: (03) 208-7821.

Copyright © 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C.. and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single issue-$IO Academic library rate: $245 per year Postmaster: Send all address changes to EIR. P.O. Box 17390, Washington, D.C. 20041-0390. (202) 785-1347 •

TIillConteDts •

Interviews Departments Economics

18 Franklin Chang Diaz 6 Report from Rio 4 Texas bank failure shows The first Hispanic-American Brazil forced to back down. cracks in the system astronaut talks to EIR's Marsha The collapse of Houston's largest Freeman about man's role in 11 Africa Report bank doesn't reflect simply "oil space. Toward an African debt club? patch" problems, but is more likely a prelude to a broader crash. 50 Report from Rome 7 IMF gets the 'no' vote in The Green menace. Feature election defeat for 51 Report from Bonn Argentina's Alfonsin 26 Nonlinear radiation: the There are few international Why was Honecker sent to Bonn? true total war bankers who are not sweating During the span of the coming profusely as they examine the 54 Dateline Mexico four to five years, almost results. certainly, a technological At the crossroads. revolution in warfare will have 8 Currency Rates completed its first phase. It will be 55 Andean Report more awesome than that which A 'Shining Path' for Colombia? 9 Foreign Exchange exploded over Hiroshima and Europe prepares for dollar crash. Nagasaki back in 1945. The full 72 Editorial electromagnetic spectrum, from When the Japanese go marching less than 10 Hertz into the garnma­ 10 City of London out. ray region, will emerge as the Why the central bankers are arsenal which dominates the arenas worried. of strategic and tactical conflict. By Lyndon H. LaRouche, Jr. 12 Brazil achieves uranium Science Technology & enrichment and closes 30 Seminar in Munich looks nuclear fuel cycle 18 Toward a 'space agency' at radio-frequency It took eight years of intense work for all of Latin America weapons to realize the dreams of former Space Shuttle Astronaut Franklin President Getulio Vargas. Chang Diaz describes his research in fusion propulsion, and his 14 Domestic Credit AIDS Update proposal for a Latin American space agency. How far will interest rates rise? 16 Los Alamos reports 15 Labor in Focus mutation of virus 24 Brazil's ambitious program points toward Auto industry run over by "Recovery. " 65 For an Apollo-style crash continent-wide space agency research effort, and public 16 Business Briefs health measures

67 AIDS hearings: Crisis management won't work Volume 14 Number 37, September 18, 1987

Books International National

44 Washington slides toward S8 International panel blasts pact with Moscow persecution of LaRouche The Intermediate Nuclear Force "No truthful man or woman who (INF) accord would terminate the has received this testimony could U.S. nuclear presence in Western help but be struck by the power Europe, and thus leave the and influence of LaRouche and his continent prey to Soviet movement. ... We have also intimidation and blackmail-and received an enormous amount of

Starue of the first President under Constitution. George glasnost is a key part of the evidence, alarming in its Washington, by Hoodon, in the State Capital in Rich­ process. implications, of the violation of mond, Virginia, along with his present-day successor. fundamental constitutional rights 46 Arrest of Italian arms of LaRouche and those associated 34 The U.S. Constitution: two smugglers rocks West with him and his presidential hundred years later Europe's 'Irangate' campaign ... ." "Our federal Constitution of 1787 apparatus 62 Pope John Paul II has endured the tests of time, as "It's as if Rockefeller had been celebrates bicentennial of no other in the history of mankind arrested," said one observer. has been able to meet that test," U.S. Constitution writes Lyndon H. LaRouche, Jr., 48 Real issues avoided in The speech the Pontiff delivered in a Bicentennial tribute. "This Danish elections on Sept. IO in Miami, Florida, at year, we celebrate the anniversary a meeting with President Reagan. of this Constitution with the S2 Chad strikes blow against publication of a major work 64 Blind terror threat to Qaddafi currently in progress at the printer, public figures historian Graham Lowry's How the Nation Was Won." S3 Pakistan: State Dept. feeds 6S For an Apollo-style crash anti-American wave research effort, and public 37 A little Bicentennial health measures detective story S6 International Intelligence The testimony of Dr. John Anton Chaitkin looks into a new Grauerholz before the President's angle on Shays' Rebellion, the commission on AIDS Sept. 9. uprising that convinced many American leaders that a permanent 67 AIDS hearings: Crisis national government was needed. management won't work 40 The American debt crisis: 68 Elephants & Donkeys Need it destroy us? Jackson and the Democrats' David Goldman reviews The dilemma. National Debt by Lawrence Malkin and Beyond Our Means by Alfred L. Malabre, Jr. 69 Eye on Washington Washington columnist upbraids 42 Books in brief Correction: An incorrect address press corps. Mars 1999 by Brian O'Leary, and and some incorrect prices were Carrying the Fire: An Astronaut's listed in the subscription blank 70 National News Journeys by Michael Collins. (inside back cover) in our last issue, due to a printer's error. The correct information appears there 43 Books Received this week. �TIillEconom.ics

Texas failure shows bank cracks in the system

by Chris White

Houston's biggest bank, First Citicorp, associated for a long beknown that the Japanese can be counted on to help bail out time with the big respectable names of Texas politics, like the failing U.S. banking system. The failure of Houston's Connally, Strauss, Elkins, and Armstrong, has gone belly­ First Citicorp demonstrates that such thinking is actually way up. The 62 banks held by the company are being offered to out of line. Robert Abboud, Chicago-based protege of the Soviet super Then, the bank had offered itself to other buyers, in this agent, the aging Armand Hammer, with Federal Deposit case the Royal Bank of Scotland from Edinburgh. The canny Insurance Corporation underwriting of well over $1 billion. Scots weren't overly tempted to put their good money after The failure is the second biggest in American history , so much bad either. after the 1984 failure of Continental Illinois. That tremor in Within Hoqston, the MCorp had scrambled to secure the financial world was barely contained. The question FDIC backing for its own takeover of the failing institution. whether the sequelae of the Texas bankruptcy will also be, is MCorp calculated that such an FDIC credit line would, rather not so clear. than securing First Citi, permit the recapitalization of MCorp This magazine had previously warned that the Houston itself. The FDIC turned down that approach in favor of ex­ bank would be a likely candidate for rapid demise, among tending the federal teat to Hammer's protege Abboud. other Texas so-called oil patch banks. Others seemed to share Now, the Wall Street Journal crows that the independent that view, including a whole gaggle of directors of the failing financial power of Texas has been broken, and gloats that institution, who, like Anne Armstrong, of King Ranch and Texas banking can be assimilated into the East Coast-based the President's Foreign Intelligence Advisory Board fame, commercial banks' system, presumably for assimilation Elkins of the law firm Vincent and Elkins, and Theodore through asset-stripping. Strauss, the brother of Democratic Party honcho Robert It ought readily to be conceded that there is a certain Strauss, quit their positions back in July, and bailed out of craziness to that kind of thinking. Why? Well, the so-called the sinking ship. They probably were seeking to escape legal triumph may indeed prove to be short-lived. There isn't going claims for damages against the directors responsible for the to be too much to gloat about if the destructionof the Texas disaster. banking center turns out to be the prelude to the collapse of Others, too, had been offered the bank. A Japanese con­ the banking system as a whole. sortium has been asked to step in with bail-out funds. The Japanese, for their part, said "No." They probably realized Prelude to general blow-out? that the combinatio of rotten oil, real estate, and Third World It's been conventional wisdom, since the oil price nose­ liabilities, doomed the Texas giant no matter how much new dived below $15 and then $12 a barrel in the early weeks of money was to be poured in. 1986, that the so-called oil patch banks had run into deep That should be a warning sign to others who have let it trouble. This magazine was among the first to point out that

4 Economics EIR September 18, 1987 the concentration on oil lending, serious though it still might Meanwhile, Texas, Oklahoma, and Louisiana could ac­ be in disaster potential, paled into insignificance relative to count for a significant chunk of the total on their own. the speculative real estate bubble in which Texas and other This may come as a big surprisefor the President's script banks had become entrapped. The real estate bubble, facili­ writers, who seem to have thought that the uptick in interna­ tated by Treasury Secretary Donald Regan's modifications tional oil prices alleviated the problems in the so-called oil of the tax system in 1981 and 1982, had been one of the patch that bubbled to the surface as prices fell. They are the principal inducements for foreign flight -capital to enter U.S. victims of the same kind of incompetent thinking as those markets, for government-protected easy returns, during the European financial big-wigs who argue that the time has early phases of the "Great Bull Market" of the mid- 1980s. come to deflatethe world speculative bubble, so that another Thereal estate bubble was knocked out by what the President "boom-bust" cycle can begin. The continued collapse of the and his advisers call the "historical" tax reform passed in oil patch shows what will happen to economy as a whole. if 1986. The elimination of tax breaks on real estate specula­ such thinking prevails. It won' t bounce back, it will just keep tion, eliminated protection for what normal people would on spiraling down. consider to be a large-scale swindle, and prepared the way for the collapse, as we have shown, of up to $250 billion Don't ask the bankers worthof the paperassociated with the bubble. The principal problem is that the people who helped cre­ That's what is now coming down the pike, and it's not ate the mess, like the Texas bank directors who bailed out in just a Texas, or "oil patch" region problem. It's actually a the month of July, are still accorded sufficientcredibility to crisiswhich threatens the very integrity of the national bank­ be able to dictate what the solutions should be. A few more ing system. If left to run its course, there won't be any shoes falling. like the collapse of First Citi in Houston, and winnersfor the Wall Street Journalto gloat about. Unlike the it's going to be pretty difficult to maintain the conceit that the National Football League, there are only going to be losers first people whose advice ought to be sought on running a inthis one, unless thepolicies thathave caused it are changed. banking system, are the bankers themselves. So far they've For example, theFederal Deposit Insurance Corporation, done a good job of destroying one, and they've been singu­ which moved to secure Abboud's takeover with over $1 larly insane on the matter of whether their blunders can, or billion, is unlike its counterpart, the Federal Savings and even ought to be, corrected or not. Soon enough, a banker Loan Insurance Corporation. It does actually have some bearing bankers' solutions to these kind of problems, is going money in its insurance fund. The FSLIC has recently been to findhimself treated like the bearer of bad news in tragedy. empowered to "go borrow" from the markets to restock its Fortunately, the question of what must be done will not own empty coffers . The First Citi failure knocks a big hole be left up to the bankers. It's a political question, involving in the FDIC's resources, and the question must be posed, the highest matters of national security. Clearly, the United "How manymore such failures can the nation's leading bank States doesn't function in the world with a collapsed banking insurance operation underwrite?" system. Therefore the follies, and ideological incompetences Next time its funds are called on, it will most likely not of the bankers and their friends, will have to be, compensated just be one of the larger middle-sized banks, but a handful, for by executive action, or the United States, and the world fromdiff erent parts of the country. The evidence for that is credit system dependent on it, will not exist. abundant. On the West Coast, the once-mighty Bank of There are still many who think that such matters can be America is desperately trying to sell itself to the Japanese to postponed until after the elections of 1988. They count, among stay afloat. On the East Coast, Bankers Trust, among others, other things, on the newly appointed political ideologue at is desperately trying to raise new money. The almost soap­ the Federal Reserve, Ayatollah Alan Greenspan, the practi­ opera quality of the three-year decline of the Bank of America tioner of Ayn Rand-style magic, being able to help organize into insolvency, is only the most lurid example of a banking such a stalling operation. They count, in short, on their con­ system gone horriblywrong . tinued ability to manipulate the appearance of what they Down in Texas, there are some, and they are not alone, desire to seem to be going on, without reference to what is nor restricted to that part of the country, who are asking really happening. themselves the following. At the end of the second quarter, To such, the failure of First Citi should be a portent that thebanking system had to swallow about $10 billion worth they do not have such powers as their conceit lays claim to. of loan-loss write-offs. Depending on how the charade with If standing policies on the dollar, credit, and U.S. govern­ Brazil and other situations play out, the end of the third ment finances are continued, it may well turn out to be the quarter could be even worse. Perhaps the banks would have case that the U.S. banking system will be the firstvict im. We to chew through another round of paper breakfasts, this time don't think there will then be too many stupid enough to in the order of, say, $25 billion and up. Can the banking argue, as they have on other matters , that "the down-sizing" system digest that kind of loss? The FDIC certainly doesn't of the banking industry is the first necessary step toward have the funds to do anything about it on a national level. recovery. New policies will be required before then.

EIR September 18, 1987 Economics 5 Report from Rio by Andrea Olivieri

Brazil forced to back down "agreed" that Brazil would seek "more U.S. government and banks force backdown by Brazil on debt conventional" arrangements. Bress(tr's home office in Brasilia proposal. announced that they never expected the banks to agree to such a radical idea immediately. For his part, Bres­ ser tried to make it appear that the result was a compromise, in which Less than two weeks after propos­ Bresser revealed that Brazil would be Baker had agreed not to demand that ing a "radical" scheme to reduce Bra­ presenting a new proposal, with "cre­ Brazil accept IMF surveillance this zil's debt burden , Brazil's Finance ative financing ideas," at the sched­ year. Minister Luis Bresser Pereira emerged uled meeting with the banks at the end Bresser said, "We took a step for­ from a meeting with U.S. Treasury of September, and that Secretary Bak­ ward , I took a step back. a little, very Secretary James Baker Sept. 8 to an­ er had requested that Bresser outline little, step." nounce that Brazil would abandon its the plan to him as soon as possible. The b.nks· fear is that any conces­ plan and try to work out a more "con­ The proposal called for 50% of sions to Brazil will trigger a continent­ ventional" debt refinancingagreement Brazil's $67 billion worth of debts to wide rebellion against IMF and bank with the commercial banks. the banks, which are now in morato­ policy of demanding debt payments, From the Brazilian side, the pro­ rium, to be exchanged for government no matter what the internal cost. posal to make the banks eat up to $15 bonds at the rate of perhaps 70 cents On Nov. 27, the Presidents of the billion of their Brazilian loans, was an on the dollar. top debtor countries in the continent attempt by Bresser to appear to the Bresser argued that this is just, as will meet in Mexico to discuss their Brazilian population to be sticking it Brazil's debt now trades at only 55 options. The banks don't want any to the banks, given the strong and vol­ cents on the dollar in the secondary surprises at that meeting. atile nationalist sentiment in the coun­ debt market, so Brazil would give the However, the banks, Baker and try in defense of the nation's seven­ banks 15 cents more, and keep the the IMF are ignoring reality inside month-old debt moratorium. other 30 cents of the discount. The Brazil its�lf, where the IMF and its From the standpoint of the inter­ bonds would be for 20-25 years, at 3% austerity dictates have intransigent national banks for which Baker is a interest. enemies both within the ruling PMDB spokesman , it was essential to smash The remainder of the debt would party and in a powerful faction of the Bresser's proposal quickly, for fear it be refinanced conventionally, but still Brazilian military. would ignite a general movement for with the 0% spread over the London On Aug. 20, the PMDB issued a debt moratoria throughout the Third Rate, and "without the same guaran-. limited-circulation memorandum World. tee of repayment." which demanded a "unilateral" nego­ All summer, Bresser had main­ The response of the U.S. banks tiating scheme from the govern­ tained Brazil's position, that Brazil re­ was not slow in coming. The Wall ment-including refusal to make a quired a guarantee of $7.2 billion in Street Journal Sept. 8 commented that "symbolic payment" on the debt-and new loans, to be used to meet the in­ Bresser's proposal "seems to ensure replacement of Bresser's internal"ad­ terest payments on Brazil's $110 bil­ an outright confrontation between justment" program. lion debt due in 1987 and 1988. Brazil and its foreign creditors lasting On Aug. 2, Army Minister Leon­ Bresser has further demanded that many months." It quoted an anony­ idas Pires Gon<;alves delivered a sur­ this money be lent at 0% above the mous banker saying, "This would put prise television message, announcing London Interbank Rate, and he has the banks under. It's the doomsday that the army would not abandon its reaffirmedBrazil's position that in no scenario. Bresser has no idea what that plan to modernize with the most ad­ case will Brazil submit to economic kind of proposal means for the banks. " vanced technologies available. surveillance by the InternationalMon­ It was left for Treasury Secretary The army chief's announcement, etary Fund (IMF). Baker to bluntly order Bresser to drop together with the military-supervised At thebeginning of September, as his plan, in their meeting the next day. uranium enrichment breakthrough (see he departed from Brazil for a confer­ Bresser emerged from the session to story, page 12), is widely viewed as a ence in Vienna on international debt, announce that he and Baker had direct challenge to Bresser.

6 Economics EIR September 18, 1987 IMF gets the 'no' vote in election defeat for Argentina's Alfonsin by CynthiaRush

There are few international bankers who are not sweating predicted that Peronist candidate Antonio Cafiero might win profusely as they examine the results of Argentina's Sept. 6 by a few percentage points over VCR candidate Manuel mid-term elections. President Raul Alfonsin and his ruling Casella, but that the VCR would maintain its hold on the rest Radical Civic Vnion (VCR) suffered a humiliating and un­ of the country. expected defeat, handing important gubernatorial, munici­ The VCR lost its majority in the lower house of Congress , pal, and congressional posts over to the opposition Partido dropping from 130 to 117 seats, while the Peronists gained 5 Justicialista, or Peronist party . seats, giving them a total of 108. The Peronists also won six Argentina's creditors had hopedthat Alfonsfn could keep governorships, giving them control of 17 out of 22 provinces. the country under control, as he applied the same monetarist Three other provinces remain in the hands of regional or policies as his military predecessors, and called it "democ­ provincial parties, while the VCR now only controls the racy." But the voters indicated otherwise. The electoral out­ provinces of Cordoba and Rio Negro. Antonio Cafiero took come, which restored to the Peronists the voting base they the governorship of Buenos Aires, a post traditionally con­ lost in the 1983 presidential elections, represents the citizens' sidered a springboard to the presidency. The Peronists also flatre jection of the International Monetary Fund's economic gained control of 15 out of 19 municipal districts in Buenos policy, which Alfonsin has imposed under the Austral Plan Aires province, the most populous and politically important This "anti-inflationary" program produced a monthly infla­ in the nation. tion rate of 13.8% for August, and monthly interest rates of 18%, while gutting real wages and hiking public utility and 'The natives are restless' gasoline prices continuously. The internationalme dia, especially the V. S. 's East Coast In response to what analysts are describing as a "political liberal media, responded to the election results with howls of earthquake," Alfonsin is expected to make major cabinet rage, like oligarchs upset that the "colonials" weren't behav­ changes, and to alter his political agenda. As soon as vote ing properly. totals became known, all cabinet ministers offered their res­ "Argentine politics throughout this century has repeat­ ignations, which Alfonsin rejected. Finance Minister Juan edly been seized by a perverse and self-destructive impulse v. Sourrouille, considered to be the mastermind of the gov­ that has done the country immense harm. One of the bearers ernment's current disastrous economic policy, is expected to of that tradition is the Peronist movement, and unfortunately, be ousted. the Peronists are the chief winners in Sunday's elections," What bankers most fear, however, is that the Peronist shrieked the Washington Post on Sept. 8. Argentina is mov­ victory will force the governmentto take a tougher stance on ing toward the "darker and more adventurous alternatives payment of its $54 billion foreign debt, possibly in coordi­ that have always meant trouble for Argentina," it continued. nation with other Ibero-American debtors . The official Pe­ On the same day, the Wall Street Journal wrote, "The country ronist program, formulated in mid-July, calls for "an entire has rejected Alfonsfn's appeals for consistency and for un­ reformulation of the [country's] relationship with foreign derstanding of his dogged attempts to reverse a long de­ creditors and the IMF, placing the debt in a position subor­ cline. . . . Argentines have gambled instead on the un­ dinate to growth, with social justice." known. That is what Peronism is." Sourrouillejust signed a major refinancingpackage with Peronism is hardly an unknown. Today the political creditors, boasting that he had achieved "a kind of morato­ movement founded in 1948 by Gen. Juan D. Peron is deeply rium," but without the nasty confrontation with the banks, divided, lacking a unified leadership, or program. The re­ that Brazil had sought. The Washington Post editorialized in form, or renovador faction, which did well in the elections, its Sept. 8 edition that "Brazil is trying to evade the necessity has allied itself to the Socialist Internationaland the Christian for economic reforms, and if Argentina is immobilized, the Democracy, and has its own longstanding ties to the inter­ pressure on it to join a moratorium will rise." national banking community. It has made several opportun­ The electoral results stunned all observers. Polls issued a istic deals with the Alfonsfn government, against the more few days before the elections had indicated a likely win by "orthodox" Peronistgroupings which call for strict adherence the Peronists in the Buenos Aires gubernatorial race. It was to Peronism's founding program.

EIR September 18, 1987 Economics 7 It is this latter outlook which the financial community fears. Juan Peron challenged the banking oligarchy, and put Currency Rates Argentina on the road to industrial and scientificdevelopment through establishment of a dirigist credit system.He placed The dollar in yen national sovereignty and the needs of the population above New York lale afternoon fixin� those of the banks and grain cartels.

The followers of Adam Smith have never forgiven him ...l.B!.- ... �-� for challenging their right to loot Argentina's economy. To­ day, as the Ibero-American debt crisis reemerges, and with 160 an explosive social environment existing in virtually every ISO country, creditors are terrified that the "darker" side of Pe­ """""'"- ronism-what the Wall St. Journal calls "trenchant nation­ 140 �- alism"-might reassert itself. They are also aware that the "'i'""'-' debt reorganization proposals of U . S. presidential candidate 130 Lyndon LaRouche, elaborated in the 1982 work, Operation 7/21 7/211 11/4 11/11 11/18 8/25 9/1 9/11 Juarez, have circulated widely in Argentina, and have been The dollar in deutschemarks carefully studied by nationalist circles. New York late afternoon fixing Add to this the fact that the Brazilian situation is not under control, and that Mexico is in the midst of a political brawl 2.10 over the presidential succession. in which the issues of debt ! I and economIC policy are high on the agenda. The election­ 2.00 ! I I day message delivered by a nation that was supposed to be I I the star of the IMF's "democracy" movement, couldn't have 1.90 I come at a worse time, from the bankers' standpoint. � As of this writing, Alfonsin has not yet definedany major 1.80 i\.. r' '" -- changes. He has assigned Finance Minister Sourrouille and 1.70 Foreign Minister Dante Caputo the responsibility of formu­ 7/21 7/211 11/4 11/ 11 11/ 111 K/25: 9' 1 9/11 lating an economic and political plan to present to the Peron­ ists, but nothing is known at this time of its content. Analysts The British pound in dollars in Buenos Aires say they expect the Peronist-Ied General New York late afternoon fixinR Confederation of Labor (CGT) to now take a much tougher I stance on economic policy; they also predict that nationalist 1.70 military circles, which have been relatively quiet since last .. � April's Easter uprising, will now emerge more aggressively 1.60 � ,r-J � - - --' to defend their interests. - 1.50 I I 1.40

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8 Economics EIR September 18, 1987 Foreign Exchange by David Goldman

Europe prepares for dollar crash mists. "The Bundesbank has set a Great Britain may join a restructured European Monetary monetary policy exclusively based on System. its perceptions of German inter­ est. ...Now the decline of inflation and doubling of European unemploy­ ment has created a situation in which priorities for policy are likely to di­ verge increasingly in European coun­ tries ....Reforms of the system along Federal Reserve chairman Alan ters meeting in Denmark Sept. 16. the French lines would remove one of Greenspan's maiden appearance at the A turning point is Britain's likely the British objections to entry . . . Bank for International Settlements' entry into the EMS, on the strength of namely that politically the U.K. can­ monthly gathering of central bankers the changes just accomplished. The not become a mere monetary satellite appearsto have been irrelevant. After City of London previously acted as an of Germany. The entry of the U.K. his private consultations with Bundes­ appendage of the dollar sector, and into the EMS debate at this stage would bank President Pohl and Bank of Ja­ successive British governments have be of great importance." pan Governor Sumita, both officials linked the pound sterling more closely The content of the 16-page report made pro fo rma statements that the to the dollar than to the German mark. to EC finance ministers and EC central central banks would continue to sta­ That ended with Japanese finan­ bankers meeting in Basle, amounts to bilize exchange markets. cial ascendancy, and the reduction of a much greatercommitment for strong­ Meanwhile, the European central the United States to the world's big­ currency countries (i. e. , the Germans) bankers met separately, to prepare to gest debtor nation. to purchase the currencies of their handle the end of stability on the for­ Credit Suisse/First Boston econo­ weaker partners. It calls for more so­ eign exchange markets. They agreed mists Gerald Holtham, Giles Keating. called intramarginal intervention be­ upon a strengthened intervention sys­ and Peter Spencer wrote in the London fore currencies reach their maximum tem to hold together the European Financial Times Sept. 9, "The British limits under the eight-currency EMS. Monetary System, the fixed-rate governmenthas been living in sin with Also, greater use of the European cur­ alignment of European currencies, an­ the EMS . Since February, the pound rency unit for repayments within the ticipating an uncontrolled crash of the has been pegged in the range DM 2.90- short-term credit mechanisms of cen­ U.S. dollar. DM 3.00 without the U.K. actually tral banks would be allowed. Italian central bank chief Carlo joining the EMS's exchange rate France, which has sought to avoid Ciampi delivered what European mechanism." restrictive monetary measures to keep newspapers called an "extraordinary The real , underlying issue, is, its currency in line with the stronger public briefing" following their delib­ whom will the Germans subsidize? deutschemark, wanted unlimited erations. Normally, the discussions of During the first half of 1987, foreign credits.This the Germansref used, but BIS central bankers are the most se­ central banks (Japan and Germany) they allowed sufficiently greater flex­ cretive of all diplomatic gatherings. created $70 billion of their own cur­ ibility to please France, and entice The Europeans clearly intended to send rency to "stabilize" the dollar on for­ Britain. the most powerful signal they could. eign exchange markets. They printed "The point of the deal is to help France and Germany founded the that volume of their own currency to the EMS withstand strains from a EMS in 1978, at the worst of the dol­ purchase dollars, financing virtually weaker dollar," wrote the Financial lar's woes under the Carter adminis­ the whole of the American foreign def­ Times Sept 9. tration. It was then characterized as an icit on their printing presses. Whether Britain will join yet is far effortto create a "zone of stability" in Now, apparently, the Germans from clear.The Financial Times edi­ Europe, while the dollar sector tum­ have decided that this is money thrown torialized Sept. 9, "Incidentally, but bled out of control. Now more than down the drain, and they were better perhaps not accidentally, the changes ever, appears to be the thinking of the advised to purchase the currencies of go some way towards undermining the European central bankers . Their plan their European trading partners. "The British government's longstanding will be presented, and doubtless EMS has worked as a deutschemark objection that the time for member­ adopted, by European finance minis- zone," write the Credit Suisse econo- ship of the EMS is not ripe."

EIR September 18, 1987 Economics 9 City of London by Stephen Lewis

Why the central bankers are worried DM 100worth of assets held in West Short of recreating the U.S. industrial base, there are no Germany was a little over $33. solutions to the world financial crisis. Now, with the dollar trading at DM 1.80, the same German assets are worth more than $55. There is no reassurance in this, however. The argument merely illus­ trates the consequence of the persist­ ent United States trade deficits, name­ T he International Monetary Fund money flows were small. But now that ly, persistent dollar depreciation to holds its annual conference in Wash­ the trade deficit has grown, the "hot" wipe out the effective debt burden on ington on Sept. 29. Central bankers money flowshave to be on a substan­ the United States economy. assembling for this meeting know that tially larger scale. So far, the foreign holders of "hot" the world financial order is closer to The financial intermediaries that dollars have been willing to sufferthe destruction than at any time since the form the channels through which the loss in the value of their holdings for Second World War. "hot" money enters the U.S.A. have the sake of the high interest rates they The economic policies of succes­ expanded. can earnon dollar deposits and bonds. sive United States administrations, Their prosperity has been a direct With thedollar continuing to fall, which have weakened the U. S. indus­ counterpart of the decline of the U.S. however, they are now growing res­ trial base, are the chief reason for the manufacturing sector. tive. If these holdings begin to be problems which are now emerging. As the U.S. trade deficits have switched out of dollars, the decline in United States manufacturing in­ piled up in recent years, so the U.S.A., the U. S. currency will accelerate and dustry has been in decline since the as a nation, has moved into heavy debt there will be a rush for the exits. 1950s. Then the U.S.A. could claim with the rest of the world. That will spell the end for the 28% of total world exports. By 1986, From being the largest net creditor world's reserve system which is based this proportionhad fallen to only 12%. nation in the world in 1981, the U.S.A. primarily on the United States dollar. By contrast, U.S. imports repre­ became the largest net debtor by the This is why the central bankers are sented 20% of world trade in the 1950s end of 1986, with external debts ex­ worried. Nor are they likely to come but were still aroundthat level in 1986. ceeding assets by $250 billion, ac­ up with any solutions at their Wash­ This is the root-cause of the huge cording to U.S. Commerce Depart­ ington meeting. U.S. trade deficitwhich has mounted ment statistics. Shortof recreating the U .S. indus­ from $40 billion in 1981 to $166 bil­ This compares with Brazil's exter­ trial base, there are no solutions. Even lion in 1986 and, even on the calcula­ nal debt of $110 billion and Mexico's so, policytnakers will probably seek tions of United States Special Trade of $100billion. By 1987, the U.S.A.'s to delay the day when the monetary Representative, Mr. Clayton Yeutter, net external debt will have risen to order becomes unstitched, by patch­ looks as if it will be as wide again this $400billion and will probably pass the ing together an agreement to act to­ year. $500-billion level in the course of next gether in unspecifiedways to maintain The size and persistence of the year. currency stability. U.S. trade deficit has left the whole These figures, it is true , have been An agreement of this kind, reached world monetary system vulnerable to challenged by economists working in in Paris in February, was for a time external shocks, such as hostilities in the East Coast banking establishment. successful in persuading investors to the Persian Gulf or the collapse of pri­ They claim that the officialfigures un­ stick with the dollar. It will not be so vate commercial banks. derestimate the dollar value of U. S . easy to instill confidence thistime . It has done this because a trade asset holdings in foreign currencies. The central banks look like they'll deficit requires for its financing a Thisdollar value has been boosted behaving their bluff called well before matching surplus of capital inflows, as a result of the decline in the United the end of this year. that is, inflowsof "hot" money. States currency on the foreign ex­ Stephen Lewis is a Cityof London When the United States trade def­ changes. When a dollar was worth economist, who contributes this coL­ icit was relatively narrow, these "hot" Deutschemark 3, the dollar value of umn periodically to EIR.

10 Economics ElK September 18, 1987 Mrica Report by Mary Lalevee

Toward an African debt club? of low revenues from exports of com­ As famine and disease spread, Zambian President Kaunda put it modities like coffee and cotton. Asked why Zambia had rejected simply: "We cannot aim our guns at our population. " IMF demands for cuts in food subsi­ dies, he answered, "We cannot aim our guns at our population.... In November, our police had to fire on crowds and 15 people were killed.It T he Organization of African Unity our debts, but we lack the means to do is not possible to continue that." He is to hold an extraordinary summit so.Unfortunately, the means still be­ described how Zambia had devalued meeting on thequestion of African debt long to our creditors, who buy our its currency by 900%, on IMF orders, in Addis Ababa, Ethiopia at the begin­ products at low prices, and prevent us and this led directly to "people dying ning of December. This year's chair­ from securing the means to repay our of hunger." man of the OAU, Zambia's President debts." He called for a longer payback Indeed, in a report due for release Kenneth Kaunda, has called on Afri­ period and lower interest rates, and this month, the United Nations Chil­ can heads of state to work out a "com­ added, "We want the creditors to have dren's Fund (Unicef) documents how mon strategy on the debt, in order to faith in our states and in Africa, be­ governments' cutbacks on health ser­ present a common front to the credi­ cause Africa has not given up. Afri­ vices according to IMF prescriptions tors," according to the French news­ ca's resources are considerable, pro­ has led to increased deaths, especially letter La Lettre du Continent. vided we are given the means to invest among childen.Francis Stewart, a co­ It is very likely that Africa will in our countries so as not only to meet author of the report, said that Unicef follow the path of Peru, and decide on our domestic needs, but also the re­ found that the worst-hit are the poor, imposing a limit to debt repayments at quirements of the debt burden .... with malnutrition on the increase for a certain percentage of export reve­ We are, in principle, determined to most of the countries scrutinized in the nue-possibly 20%.Burkina Faso is pay our debts, but the conditions of report: "Infant mortality has been ris­ reported to have called on other Afri­ repayment should not strangle our ing in some areas after decades of de­ can governments to declare a total economies." cline, while the trend toward improve­ moratorium, but this was rejected in Zambia's economy was indeed ment has been halted in at least 21 favor of the idea of a "temporary" being "strangled" by its debt and pol­ countries.The proportion of low birth­ moratorium on debt repayments, and icies imposed by the IMF.In an inter­ weight babies increased in at least 10 the long term rescheduling of debts. view with the Italian newspaper Il countries between 1979 and 1982, in­ The West African finance ministers Giornale on Aug.23, President Kaun­ cluding Barbados, Cameroon, Guin­ meeting in July had called for resched­ da described the "economic catastro­ ea-Bissau, Jamaica, Malaysia, Rwan­ uling over 30 or 40 years, and talks phe"facing Zambia, and said that IMF da, and Tanzania." this month between Ivory Coast and policies were rejected by his govern­ "Yaws and yellow fever, once the International Monetary Fund have ment."We cannot shoot our own peo­ thought to have been eliminated, have focused on Ivory Coast's demand for ple." In an appeal to Western nations, reappeared in Ghana," she said. "In a 50-year rescheduling of its debt. Kaunda talked about "life or death" Chile and Ghana, primary school at­ In an interview to the Ivory Coast for Zambia. In addition to chronic tendance has been falling, and drop­ newspaper Fraternite Matin on shortages of basic goods, like bread out rates rising; child labor has be­ Aug. 19, OAU secretary general Ide and maize, shortages of medicine, and come more common. " Ghana has rig­ Oumarou called for action on the debt problems with public transport, Zam­ orously implemented IMF policies. crisis , stressing Africa's willingness bia is now facing epidemic diseases Given this life-or-death situation to pay, but pointing out that the low which are hitting animals (epizootic for African nations, Western nations prices paid for Africa's exports were aphtha) and grain crops (carbuncle), should support Africa's efforts to find preventing the repayment of debts. as well as a devastating epidemic of a solution to the debt crisis, along the "African states feel an increasing need AIDS. Kaunda said that Zambia's lines of Lyndon LaRouche's propos­ to be united, and to go to their credi­ economic situation was typical of als, published in EIR ' s Aug. 28 issue, tors for discussion and not for con­ many African countries, which are for the issuing of credit lines to permit frontation. We are determined to pay being forced into "autarchy" because the development of the continent.

EIR September 18, 1987 Economics 11 Brazil achieves uranium enrichment and closes nuclear fuel cycle by Silvia Palacios and Lorenzo Carrasco

On Sept. 4, Brazilian President Jose Samey announced that and which legitimize possession of nuclearweapo ns. " the country had, despite foreign pressures and impediments, The foreign minister further emphasized, "The central conquered the complete nuclear fuel cycle. Enrichment of point is that nuclear energy for Brazil is not an abstraction. uranium by means of ultracentrifuge, was achieved at the We have important uranium reserves [the fifth largest in the Institute of Nuclear Research in Sao Paulo, under absolute world], a growing domestic demand for energy, industry secrecy and naval supervision. The project, known as the capable of competing on the world capital goods mar­ Parallel Nuclear Program, took eight years of intense work ket ...." Therefore, "in international forums, we fight for to realize the dreams of former President Getulio Vargas access by the developing nations to nuclear technology, and who, together with Adm. Alvaro Alberto, attempted a similar we denounce the traps set by nations developed in the nuclear enrichment program by ultracentrifuge in 1952. field. We fight against economic trade rules that impose on "The country has conquered a decisive stage on the path the developing nations, the perpetuation of their status as to autonomy in science and technology," declared President mere consumers of sophisticated nuclear equipmentand tech­ Sarney. "The enrichment of uranium represents one of the nology, and of mere suppliers of raw materials ....In the most advanced technologies in the field of human knowl­ strategic political sector, we must not be confused, for we do edge." He also pledged, "My government is committed to not believe that proliferation of nuclear technological knowl­ the scientific and technological development of Brazil. . . . edge ipso fa cto representsproliferation of nuclear bombs." This effort should serve to encourage the Brazilian scientific This same sentiment was elaborated by the president of community to [pursue] increasingly dense and broad inter­ the National Atomic Energy Commission (CNEN), Rex Naz­ change with advanced centers of scientific production. It arethAlves , when he criticized the nuclear cooperationdeals should lead to creative cooperation with countries in the between the United States and Germany. "They will never developing world, which, like ourselves, know that progress give us full access to sensible technologies ....We favor and development cannot be achieved without the help of disarmament and non-proliferation of atomic weapons, but science and technology. " we repudiate the imposition of mechanisms which discrimi­ Despite the fact that Brazil's nuclear breakthrough was nate and inhibit peaceful technological development of nu­ accomplished over two months ago, the announcement was clearenergy . " only made now, as Brazil restarts its debt negotiations with Following the Sept. 4 presidential announcement, the international financialinstitutio ns. With the announcement, CNEN president explained to the press the reason for the the Brazilian government made clear that it is not prepared secrecy that surrounded the enrichment procedures. It was, to hand over its sovereignty to "the strategic conditionalities he said, "a shield that the country used to divert international of the superpowers. " In fact, Brazil's announcement must be intrigues that sought to prevent a client from entering into taken as a declaration of war in defense of its sovereignty, competition in a marketof morethan $50 billion a year. . . . against the policies of appeasing the superpowers with re­ The national program goes against the interests of the inter­ spect for "international safeguards." national technology cartel, which would have boycotted it, A definitionof Brazil's policy was established by Foreign either by imposingrestrictions on Brazilian imports, or by Minister Roberto Abreu Sodre, following lengthy discus­ accusing the programof having bellicose ends." sions within the foreign ministry on Aug. 12. There, Abreu He added that there are cases in which "an intransigent Sodre confirmedthat Brazil would never submit to "theories rebel is at least patriotic. Enough of foreign dependency. A like that of deterrence, which subordinate international se­ country like Brazil, with such problems in the area of health, curity to the strategic conditionalities of the superpowers, agriculture, and industrial development-problems that could

12 Economics EIR September 18, 1987 be solved through use of nuclear energy-cannot continue to State Department cry-babies pennit uncertainties in satisfying these demands ....Brazil Brazil's achievement, despite the fact that it silenced the doesn't need a Hiroshima or Nagasaki to announce its con­ U.S. embassy in Brasilia, nonetheless triggered the fury of quest of nuclear fuel production." U.S. State Department networks. The correspondent for Afterthis achievement, concluded Nazareth, "The sky's Gazeta Mercantil in Washington, D.C. reported that an uni­ the limit." dentified StateDepartment official declared that Brazil's an­ So that no doubt remained as to Brazil's policy on the nouncement would cause tremendous irritation in sections of question, the head of the joint chiefs of staff of the Brazilian the Reagan administration, which already had a highly neg­ Armed Forces, Gen. Paulo Campos Paiva, told a conference ative attitude toward the country because of the Brazilian at the Superior War College: "Every decision must be made debt moratorium. with the awareness that we are dealing · with a sovereign An official of the State Department's officeof non-pro­ nation." The developed nations are accustomed to "project­ liferation said: "Our reaction is similar to that when Argentina ing their power over the interests of the developing nations, announced its conquest of the nuclear fuel cycle. We said which generally are in no condition to neutralize" such pow­ then, and we repeat now, that these countries had better open er. Such "projections of power," said the Brazilian military up all their nuclear installations and materials to inspection chief, "are inadmissible when they represent prejudice against by the InternationalAgency for Atomic Energy. If they don't, Brazil." suspicions will arise that they are using nuclear technology for other than peaceful purposes." The vengeance of Getulio Vargas Prof. Leonard Spector of the Carnegie Endowment for In his Sept. 4 speech, PresidentSarn ey did not fail to pay International Peace in Washington said that the Brazilian homage to "the men who pioneered the Brazilian nuclear program is "reason for concern, since there is no over­ program. Among these are Adm. Alvaro Alberto, who was sight. . . . The State Department should express its displea­ responsible in the 1950s for purchasing the first ultracentri­ sure to the Brazilian government for having a programwith­ fuge machines for enrichment of uranium. Admiral Alberto's out adequate international safeguards." initiative did not advance, for a varietY of reasons linked to But even though the State Department has not issued an the environment in which the debate on use of nuclear energy official statement, it is already busily deploying its substan­ was taking place, both internationally and inside Brazil. His tial networks inside Brazil, especially through the magazine machines were deactivated, but his ideas remained alive." Veja and the daily Folha de Sao Paulo. which, according to President Sarney's reference to Admiral Alberto is of some sources, receives much of its material against nuclear major political significance. It was the admiral who con­ energy and in favor of environmentalism, from U.S. offices spired, together with German physicist Otto Hahn, against and consulates. the colonial policies of technological limitations. Hahn and The individuals that make up this network include Enio Alvaro Alberto coordinated a project for the design and con­ Candotti, vice president of the Brazilian Society for Scientific struction in Europeof three ultracentrifuges for Brazil. When Progress; Luis Pinguelli Rosa and Fernando Souza Barros, the machines had been tested at the University of Gottingen two charlatans from the Brazilian Physics Society; and on a in Germany, under the direction of Prof. William Groth, and higher level, Jose Goldemberg of the University of Sao Pau­ were already being dismantled preparatory to their delivery lo. to Brazil in mid- 1953, news of the operation-until then But the most hysterical reaction against the parallel nu­ conducted under absolute secrecy-made its way to Itamar­ clear program has come from Liberal Party congressman aty , the foreign ministry, when that ministry was headed by Guilherme Afif Domingos, who, in a letter to the president Standard Oil agent JoiioNeves de Fontoura. Within 24 hours, of the National Constituent Assembly, demanded that the Americantroops acted on information provided by Itamaraty government"no longer hide" the secret funds allocated to the to enter all German ports and confiscate the boxes of equip­ nuclear policy. Afif also demanded a"hearing" on control­ ment. Thataction was followed by a slander campaign against ling the expenses of the nuclear program: "The members of Alvaro Alberto, run by Foreign Minister Neves de Fontoura. the Constituent Assembly must do a review . . . of the secret It was this same Neves de Fontoura who took personal programs ... to learn the cost-benefits.... They don't charge of sabotaging the efforts of President Getulio Vargas know, for example, how much the government is spending to achieve economic integration with Argentina and Chile, to import material for nuclear plants. And this is all above by encouraging supposed rivalries with Argentina. board. Imagine the secret side!" protested Congressman Afif. This time, the Parallel Nuclear Program, launched by the In view of these pressures, domestic and foreign, a healthy governmentof President Geisel in response to political prov­ respons� was offered by CNEN president Rex Nazareth: "If ocations from the Carter administration, not only achieved there should be reprisals on the international level, I will not uranium enrichment but honored the memory of Vargas and remain quiet. I am a person who reacts to these kinds of Alberto. things."

ElK September 18, 1987 Economics 13 Domestic Credit by David Goldman

How far will interest rates rise? spread, the thrifts as a group are run­ Another two points will blow out the banking system, and ning at a loss, because bad loans are bankrupt another thousand thriftinstitutions . wiping out too much of their income. If the cost of funds moves up a percentage point or two, the bailout­ bill facing the penniless Federal Sav­ ings and Loan Insurance Corporation will rise from a mere $50 billion at C ity of London observers charac­ the U. S. ' s overt support are likely to present, to $100- 150 billion. terized the Federal Reserve's dis­ fail; the amount of intervention re­ Consider, additionally, the huge count-rate increase on Sept. 5 as "too quired would imply continued central bond-trading losses suffered by Mer­ little, too late." Certainly, purchasers bank loss of control over domestic rillLynch and First Boston during the of U.S. government bonds agreed, money supply expansion." second quarter. It is not merely the knocking down the price of long-term That enabled the United States to S&Ls which will fall as interest rates Treasury securities by almost 2% upon sustain an "unsustainable" deficit at rise. The entire banking and broker­ their return from the Labor Day holi­ relatively low interest rates. In 1977, age house system has held together day . British PrimeMini ster Jim Callaghan, since 1982 by speculating on rising However, the brokerage-house facing roughly the same economic cir­ securities prices. pundits who want a sharp rise in inter­ cumstances, but without the friendly Falling securities prices will cause est rates, supposedly as a guarantee help of othercentral banks, had to raise gigantic losses across the board. against renewed inflation, want too sterling interest rates to nearly 20% in The "securitization" of the bank­ much, too soon, given the weakness order to prevent the complete collapse ing system has created conditions re­ of the U.S. banking system. of the pound sterling. sembling 1929, when commercial The only important change in cap­ Depending on the extent to which banks played the stock market with ital flows during 1987, was the $70 the Japanese and Germans cut back on depositors' money. billion created by foreign central banks their subsidyto the United States, U.S. Departed Fed chairman Paul to support the dollar during the first interest rates will rise some partof the Volcker never hesitated to warnCon­ half of this year. That translates into way to 20%. gress of the consequences of trying to $70 billion of foreign central bank The problem now is that unlike financein perpetuitya trade deficitex­ purchases ofU .S. Treasury securities, Callaghan's Britain, or the pre-Volck­ ceeding $150 billion a year, propos­ taking care of the entire U.S. trade er American banking system, a mod­ ing, instead, that the United States cut deficit, and most of the U. S. Treasury erately higher level of interest rates consumption through fiscal means, by financing requirement, during that pe­ will crash the domestic financial sys­ drastic reduction of federal spending. riod. tem. Foreign central banks' refusal to That won't happen twice, laments As EIR has reported, Federal imperiltheir banking systems by con­ Salomon Bros. in a recent special re­ Home Loan Bank Board specialists tinuing the monetary subsidy suggests port to clients: calculate that a mere 2% rise in inter­ that the drastic reduction in consump­ "In West Germany, a long-antici­ est rates will wipe out an additional tion will be forced upon the United pated income tax cut of DM 13 billion 1,000 savings and loans, bringing the States by the most chaotic and de­ will be introduced in 1988, but the total number of insolvents to close to structive means. authorities have rejected calls to adopt 1,500. The Sept. 23 cliffhanger around additional measures in response to Put simply, the S&Ls now enjoy a the latest expiration of the most recent lower-than-expected economic activ­ more than 2% spread between their short-term extension of the federal debt ity. Japan has already implemented a cost of funds, and the interest rate on ceiling, will contribute to the chaos. supplementary budget for the current their mortgage portfolios. Many have Observers suggest that a contin­ fiscal year, but tax reform proposals switched almost entirely to adjusta­ ued stalemate in Congress will pro­ under consideration are expected to be ble-rate mortgages; roughly 1,000 of duce a series of short-term extensions revenue neutral . . . attempts to main­ them are stuck with fixed-interest of the federal government's authority tain the current target zones through portfolios. to spend money, stretching into next exchange market intervention without Despite the favorable interest December.

14 Economics EIR September 18, 1987 Labor in Focus by Joyce Fredman

Auto industry run over by 'Recovery' of the 7.3 million cars and light trucks As the UA W prepares its typical selective strike, industry leaders Ford has built in North America since no longer care ifthey produce cars. 1986. In such a situation, "job security," the UAW's first priority , will be hard to come by. The union is already talk­ ing about settling for annual lump-sum At 11:59 p.m. on Monday, Sept. The seven major domestic manu­ payments, instead of the usual per­ 14, contracts for 104,000 Ford work­ facturers now expect to build a total of centage increases in pay and cost-of­ ers and 335,000 General Motors about 1,375,000 cars in the United living allowances. This seems to be workers are to expire. Prospects for a States during July-September, sources the trend in labor negotiations, where new contract look dim as EIR goes to in the industry say. Thiscompares with workers have succumbed to the idea press. Third-ranked Chrysler has a August estimates for the quarter, of that they had better take what's being contract that expires next year, al­ about 1.4 million cars. The current offered, before the whole industry dis­ though just across the border, the Ca­ forecast is about 16% below the appears. Ford and GM are both dis­ nadian Auto Workers Union on Sept. 1,634,247 cars built a year ago. For cussing contracts that allow them to 2, chose Chrysler's Canadian subsid­ the period from Aug. 21-Aug. 31, buy parts and cars from outside com­ iary as its strike target. The indepen­ firmsthat build carsin the United States panies or countries, as well as close dent union said its 10,000members at reported sales of 369,597, down from plants and shrink payrolls. four Chrysler LTD plants in Ontario 450,295 vehicles during the same pe­ Perhaps the most ludicrous exam­ province will walk out at midnight riod last year. Domestic car sales are ple of the direction labor relations are Sept. 14. moving at a seasonally adjusted an­ taking is in Toledo, Ohio. There, at The problem that faces the auto nual rate of 8.2 million, while import­ the Alexis Road factory , workers have industry in America, however, is much ed car sales are running at about 12.3 produced automatic transmissions for greater than how much of a wage in­ million units. 30 years. In the past year, GM and crease they can offer. The specter General Motors' late-August sales UAW Local 14 have set up a 22-acre haunting them is the collapse of the fell 34% from last year, and in No­ "jointness" park, a 13-room "joint-ed­ U.S. steel industry, the U.S. ship­ vember 1986, GM announced plans to ucation" wing, a plantwide "joint building industry, and most of the rest shut down II of its assembly plants communicatiohs" network with 44 TV of America's industrial capacity. As and permanently dump 25,000 work­ monitors, and 2oo-plus "joint em­ GM's vice president, Alfred Warren, ers. The first of those closings oc­ ployee involvement groups." The stated earlierth is year, "People cannot curred on Aug. 26, when the last car goals range from AIDS education to believe we could stop building auto­ rolled down the assembly line at the how to invest in real estate. mobiles in the United States. I'm sure 64-year-old Norwood, Ohio GM plant. At GM, such social-control pro­ the electronics people felt the same The largest employer in the town, grams cost about $200 million last way ....I'm sure the baseball glove Norwood's closing meant no morejobs year, and Ford spent $30 to $40 mil­ ...[and] the shoemakers all felt the for more than 4,000 people . lion on such commitments. Chrysler same way, but it's all gone." The auto production that has oc­ won't disclose its amount. The steel In late August, sales of domestic curredin the United States is now fac­ and communications industries have . cars and trucks had fallen 17.9% from ing its own set of problems. Ford at set up such programs, but the auto in­ a year ago, when buyers were tempted the beginning of September recalled dustry has by far outdone the rest. into showrooms with the introduction 4.3 million cars, light trucks, and vans, This is how the business commu­ of the first buyer incentive programs. to correct fuel-system defects that have nity is dealing with the realities of the The big three (GM, Ford, and Chrys­ produced 230 engine fires and injured depression. This insanity is being ler) returned to incentives on Aug. 5, 16 people. Ford recalled 4.1 million touted as the secret to the success of but the lure no longer worked. Vehicle 1986-88 carsand 1986-87 light trucks. Japan's industries. The motto is, ifyou loan rates are now as low as 1.9%, to repair couplings on the fuel lines can't offer them a job, make sure down from last year's 2.9% low rate, that connect the gas tank to fuel-in­ there's a big playground around with but sales this year are off 10% so far. jected engines. This represents 56% a lot of TV tubes.

EIR September 18, 1987 Economics 15 Business Briefs

Asia Hicting the chief water route between the "new global approach to the problems of Pacific and Indian Ocean basins, the Straits debt, development, and the environment." Peking unveils changes of Malacca. Members include Vladimir Sokolov of the The Thai delegation visited the Suez Soviet Academy of Sciences, Colombian in economic policy Canal in Egypt as well as the KieJ Canal, environmentalist Margarita Botero, Brazil­ known as the Nord-Ost See Kanal, in Ger­ ian Secretary of Environment Paulo No­ Chinese leaders have infonned a World Bank many. They also stopped over in The Ha­ gueira Netto, fonner Sudanese Foreign delegation now visiting Peking that they plan gue, the Netherlands, and Paris. Every­ Minister Mausour Khalib, and Sen. Susan­ broad changes in the government'seconom­ where, they were given extensive briefings na AgnelIi of Italy, leader of the Italian ic policy, in the direction of "free enter­ on canal building and earth-moving tech­ chapter ofthe World Wildlife Fund (WWF) prise" and greater decentralization, accord­ nologies. and scion of one of Italf s richest families. ing to a report in the Sept. 4 Financial Times In France, one of the companies in­ The WWF mediated the debt-for-Iand of London. The Chinese leaders indicated volved in the Euro-tunnel project, Bouy­ swap in the case of Bolivia. that in the next stage of refonn, they would gues, had prepared a briefing for the dele­ At the Commission's Argentine press like entrepreneurs to tender for control of gation at its Paris headquarters. The Fusion conference, EIR correspondent Juan Jose state-owned businesses, and then assume full Energy Foundation in Paris, one of the big Balatti a$ked if the groupspecifically advo­ responsibility for profits and losses. promoters of the Kra Canal, introduced the catedplans like the recent debt-for-Iand swap The Chinese made clear to the bank of­ group to a number of French parliamentari­ in Bolivia. There was silence, until Senator ficials that they want to overturn traditional ans for discussions on the canal, including AgneJli said that she "didn't understand the policy, in the interests of makingagricultur­ the man who had been foreigntrade minister question," which was repeated. AgneJli re­ al production more efficient. The intention under Charles de Gaulle. sponded that what was done in Bolivia was is to allow coastal provinces, which are ma­ The Fusion Energy Foundation office in "good," but it would be preferable if such jor grain producers , to concentrate on cash Thailand has created a Kra Club, together schemes were imposed "by the people them­ crops and rural industry instead, while China with some 15 retired army personnel, and selves ," rather than as a matter of agreement covers its grain deficit through a marked reports that it has already received requests between the banks and governments. increase in imports. for meetings on the project from Gennan The Commission was scheduled to visit Moeen A. Qureshi , the World Bank's and Japanese companies. Peru, Colombia, Venezuela, and Uruguay. ' senior vice president in charge of opera­ tions, said the changes could be introduced becauseof the success of refonns introduced in the past nine years. He said that the Environmentalism AIDS Chinese leadership had a very practical ap­ proach to policymaking, and the World Bank Push 'debt-for-Iand' Los Alamos reports approved of almost all its policies. swaps in Ibero-America mutation of virus

The United Nations World Commission on New studies done by the Los Alamos Na­ Development Development and the Environment has a tional Laboratory show the AIDS virus to be high-powered delegation traveling around a complex family of rapidly mutating virus­ Thai MPs inspect lbero-America, promoting "an environ­ es. As a result, there must be presumed to mentalist solution to foreign debt," i.e. , debt­ be thousands of slightly different fonns of European canals for-land arrangements. Under the tenns of the virus, called HIV (Human Immunode­- agreements recently concluded by Bolivia ficiency Virus). Parliamentarians from Thailand, accom­ and Costa Rica, for example, a certain Some of the mutated fonns may have panied by members of the Thai National amount of national land was set aside to be acquired new, specialized ways of being Security Council and Anned Forces, re­ a "natural preserve,"never to be developed, transmitted, to infect different tissues, to turned from a fact-finding tour of Europe inexchange for thereturn of a certainamount evade the immune system, or to resist drug Aug. 31, well prepared to infonntheir coun­ of the country's debt paper. treatments. trymen of the techniques available to build The "Bruntland Commission," named The Los Alamos studies, according to a and operate a projected canal through Thai­ after the Norwegian Labor Party leader, ar­ report in the Washington Post, show the land's Isthmus of Kra. The Kra Canal, while rived in Argentina on Sept. 2 from Brazil, AIDS virus to be mutating five times faster spurring the industrial development of Thai­ and held a press conference to promote its than the influenza virus, thought until now land, would relieve the congestion now af- report, Our Common Future, described as a to be the fastest mutating virus.

16 Economics EIR September 18, 1987 Briefly

A WORLD SUMMIT The findings "cast bewildering shad­ vin Laird, defense secretary under Gerald • meeting ows" across the propsects for diagnosis, Ford, James McIntyre, who headed the Of­ of health ministers to thrash out a treatment, and a vaccine, one of the Los ficeof Management and the Budget for three united approach to the AIDS problem Alamos researchers, Gerald Myers, is quot­ years under Jimmy Carter; and Walter Wris­ will be held in London in January ed. ''The AIDS viruses now manifest them­ ton, former head of Citicorp. 1988, the British Department of selves as a complex family tree, sprouting Health announced Sept. 4. The three­ new genetic branches-and apparently very day meeting, sponsored by Britain and quickly at that," Myers said. the World Health Organization, is expected to include "the Russian Health minister of health, following grow­ ing interest fromMoscow," the Daily Colombian austerity Telegraph reported Sept. 5. Technology slashes medical care • EGYPT will require AIDS test 'Privatization' certificates for anyone trying to enter The Colombia Ministry of Health has ad­ the country, the health minister in threatens Landsat mitted that under current government eco­ Cairo announced. Persons without nomic policies, it is incapable of spending such certificates, including Egyp­ The government's unwillingness to under­ the sums required to keep the population of tians returning from abroad, will be write the U.S, Landsat system of Earth­ that nation healthy. Colombia's austerity immediately quarantined and tested. viewing satellites may cost America its pi­ policies are dictated by the International U.S. CONSUMER oneering lead in the industry, scientists and Monetary Fund. • debt is grow­ other users of the technology say. Minister of Health Jose Granada Rodri­ ing at an annualized rate of 7.1 %, Two years ago the Reagan administra­ guez put the matter as delicately as he could according to government figures for tion promised financial assistance in trans­ at a Sept. 1 press conference, "Health has July, released on Sept. 4. Americans ferring the key satellite program to the pri­ been the great source of sacrifice in the pro­ took out $3.46 billion more in credit vate sector, and then did not deliver. Now, cess of economic adjustment of the last few in July than they paid off. Creditcard the Soviets, in addition to France, Japan, years. " Economic adjustment, of course, is debt grew at an annual rate of 11.4% and India are gaining ground with their own . IMF-World Bank parlance for massive in July, an increase oU 1 .3 billion. government-subsidized satellite surveil­ budget cuts and other measures to free up HOLLAND'S lance programs. resources for debt repayment. • "Dr. Death," Dr. ''The Reagan adrnninistration's policy "The adjustments necessary for eco­ Pieter Admiraal, who practices and has been an unmitigated disaster," said John nomic policy, especially impelled by the advocates euthanasia for AIDS vic­ E. Pike, associate director of space policy heavy weight of the foreign debt, has been tims and others, will be a featured for the Federation of American Scientists. a factor of deterioration in the development speaker at the April 7-10, 1988 semi­ He was quoted in the Baltimore Sun Sept. of health and the social sector, two areas annual meeting in San Francisco of 8. that have been underfinanced for the past the World Federation of Euthanasia Undeterred, the administration's ex­ five years," the health minister continued. Societies, sponsored by the Califor­ treme "free enterprise" ideology received ''The tightness of the economy with respect nia-based Hemlock Society. Thirty­ new expression the week of Sept. 1, when to social assistance in the country, has gen­ two different organizations advocat­ the White House announced that a "privati­ erated very delicate restrictions," but the ing the Nazi practice will be repre­ zation commission" will be created to "pro­ government will make "efforts, within the sented. pose how we can return appropriate federal obvious budgetary constraints, to improve MANUEL ULLOA, activities to the private sector through the the situation. " • former sale of government operations and assets, La Republica , Bogota's leading daily, prime minister of Peru, will be a fea­ the use of private enterprise to provide ser­ gave the reasons why improvement in the tured participant at the "Working vices for government agencies, or the use of situation is very unlikely. In its Sept. 1 edi­ Group on Debt" sessions of Helmut vouchers to provide services to the public tion, La Republica gives estimates on the Schmidt's Inter-Action Council Sept. through the private sector ." amortizationand interest due on Colombia's 24-25 near Zurich, Switzerland. From The formationof the commission is part foreign debt for the period 1987-90, and Oct. 7-8, the Inter-Action Council's of the President's crazy "economic bill of finds that the country will be paying an av­ Executive Committee is to meet in rights," which he proposedJuly 3. erage of 45% of its export earnings for debt Budapest, Hungary. Named tothe new commission are: Mel- service over that period.

EIR September 18, 1987 Economics 17 �TImScience & Technology

Toward a 'space agency'

Spfoacer Sh alluttle Astr ofonaut Latin Fra nklin Chang AmericaDi az describes his research inju sion propulsion, and his proposaljor a Latin American sp ace agency.

Dr. Franklin Chang Diaz, the firstHi spanic American astro­ velocity in a rocket, you quadruple the power required, be­ naut, flew on the Space Shuttle Columbia in January, 1986, cause the power is proportional to the velocitysquared . That's the last mission before the Challenger explosion. He was a very serious obstacle [now] because we don't have very bornin Costa Rica on April 5, 1950. While in grade school, high power sources in space yet. The other problem is that Chang Diaz wrote a letter to Wemher von Braun, asking him very high velocity exhaust means that the exhaust has to have how to become an astronaut. Reportedly, von Braun sug­ a very high temperature, and very high temperatures mean gested that he go to school to study science in the United severe materials problems on rocket engines, or nozzles, or ' States, and in 1967 he arrived here. anything like that. He received his Ph.D. in applied plasma physics from the The way we have attempted to deal with the materials Massachusetts Institute of Technology in 1977, and at the problem and the power problem, is by going to the technol­ Charles Stark Draper Laboratory , began his research into ogy of fusion. In fusion, you deal with a plasma which is at fusion propulsion. Prior to his Shuttle flight, Chang Diaz a temperature of millions of degrees, but yet, this plasma is toured lbero-America, to encourage nations to establish a never physically in contact with the surfaces or the materials Latin American Space Agency. similar to the European Space of the container, because you have a magnetic field and the Agency. In this interview with Marsha Freeman, conducted plasma responds to the magnetic field, and stays confined. on July 20 at the third Case for Mars conference, Chang Diaz We have attempted to develop a magnetic nozzle [where discusses both his own research, and his thoughts on bringing magnetic fields would keep the super-hot plasma exhaust industrializing countries into the space age . away from the material] , not a conventional nozzle. We are doing experiments up at MIT [Massachusetts EIR: Could you describe the advanced fusion propulsion Institue of Technology] on this sort of concept, and we call concept that you have been working on? it a hybrid plume rocket. One of the attractive features of,a Chang Dw: It's really not necessarily a fusion concept, at plasma rocket like this, is that the exhaust velocity is no least not for now. We don't rely on fusion for it to work, but longer a constant [as it is when you are burning chemical it is a high-temperature plasma rocket. The idea is, the higher fuels]. You can actually change it. You can have an exhaust the temperature of any exhaust of a rocket, the higher the velocity which is relatively slow, at first, and then increase it efficiencyof the rocket. That's what we in the rocket business as the vehicle speeds up. That means that it has the potential call specific impulse. You can generate rocket thrust, either to always be optimum. The best way to match the exhaust by throwing a lot of stuff out [the back end of the rocket] at velocity to the actual rocket that you're using, is to always low velocities, or very little stuff at higher velocities. Clearly have the exhaust moving at the same speed as the vehicle. In the choice of approach is to throw a little stuff out at very that way, the exhaust particles leave the rocket with zero high velocities, because that means that you don't have to energy and they have given up all of their energy to the carry as much [propellant] and so you have less of a fuel vehicle. That is the most efficientway to operate . requirement. The problem is that if you double the exhaust If you use that idea in a given mission, you save a lot of

18 Science & Technology EIR September 18, 1987 atellite photo of the !Americas sent by GOES eather satellite to INPE �arth station in Brazil. Ifnset: Franklin Chang i[)iaz.

fuel. In a Mars mission, you even beat the most advanced field, and the more difficultit is to detatch it.There are some electric propulsion concept so far , which is a magnetic plas­ schemes-two of them that we're I king at-one is inject­ ma dynamic rocket.And it turns out that it is even better, as ing a coaxial layer of fairly high-density gas, which will you go further and further out, because you're always oper­ create a lot of collisions in the plasma and make it diffusive ating at an optimum efficiency.The problems that we have, and make it detach fromthe field.We also have other schemes are the problems of fusion, namely the problems of keeping whereby you can induce certain kinds of instabilities [in the a plasma away from the walls of the container, the problem plasma] right near the edge, which will allow the plasma to of sputtering [part of the plasma escapes to the container wall, tear off from the field.They're far from proven-we don't losing energy] , and the problem of radiation.We have a great know if these things are going to w0rk or not-and that is deal of radiation losses in this plasma, and all of that radiation basically the purpose of our experiment. ends up in the wall [of the container], so we still have a little bit of a materials problem. EIR: What kind of geometry do y see using for a fusion The other thing that happens that is very peculiar to a reactor that would be used for propulsion? plasma rocket , is that when you have a plasma exhaust that Chang Diaz: It would be a linear[o! s opposed to a closed, is confined in a magnetic field, somehow you have to force donut-shaped fusion] geometry. We will exploit the weak­ that plasma to leave that magnetic field.Otherwise the plasma ness of the mirror, which is that mi ors leak. [In our case,] will curl around your rocket and come back and give you we want them to leak.Our concept is a tandem mirror, which zero thrust.And so we have to finda way to detach the plasma operates in an assymetric way.One end is more leaky than when it leaves the rocket, and that's another serious problem. the other.We are trying to set up a contlitionwhere the plasma The hotter the plasma, the more it clings to the magnetic is actually flowing.The plasma will be injected at one end at

EIR September 18, 1987 Science & Technology 19 low temperature. It will flow in to a central region, like the normal fusion experiments, but then we take a penalty on central cell of the tandem mirror, be heated by RF [radio temperature, but that's fine. Our purpose right now is to build frequency] power, at the ion-cyclotron frequency, and then this apparatus in the lab, test it, and then perhaps very soon, we don't need a very high confinementtime , because all we if it proves to be attractive, we �ll flya prototype in the Shuttle. need is enough confinement to give energy to this flowing We'll try to deploy a [prototype plasma plume rocket] in plasma, and then let it escape. Then it will escape into this orbit, and fire it and see how it works. exhaust, which is where this new design comes in. . . . EIR: What would you use for a heat source, in an experi­ EIR: That's the magnetic nozzle? ment that is deployed from the Shuttle? Chang Diaz: Yes. The magnetic nozzle is a a nozzle which Chang Ow: Probably some sort of a power plant, such as is initially a magnetic funnel, which then blends into a con­ the SP- loo [nuclear reactor under development by NASA, ventional nozzle with an annular ejector, which injects that the Department of Defense, and the Department of Energy, very high velocity coaxial layer or annular layer ofhyperson­ which will be flight-tested in the early 1990s] or maybe even ic gas. That combination of magnetic and conventional noz­ a cluster of fu el cells, anything that would give us enough zle will allow us to solve the materials problem and also the power. It doesn't have to be steady state, it could be pulsed. plasma detachment problem. It also allows us to "tune" the So any source which could give us about 50 kilowatts of exhaust, and that's another very nice feature-that we can power, would be sufficientto test it. The point is that a lot of basically throttle this thing [run the engine at differentlev els, these experiments and machines need to be tested in the space less than 100 percent] . environment. Some of the advanced rockets put out so much material [when you test fire them] , it is very difficult to test EIR: Is that done by varying the amount of gas put into the them in a vacuum chamber [�d have] the chamber keep a exhaust stream? vacuum. Chang Diaz: Yes, by varying the amount of gas, and also by varying the magnetic field strength, and the electrostatic EIR: Almost all of the rockets we have ever developed, have potential at the end of the mirror. There are many "nobs" that been used to go from Earth to orbit, and have had to fly one can use to control the mix of plasma that comes out . We through the atmosphere. You.. rocket would only be fired in have done computer simulations for about five years now, space, so I could see why it has to be tested in the vacuum of and everything points to the fact that you can actually do this. space. So far we have not encountered any show-stoppers. It looks, Chang Diaz: The vacuum is • problem, and the more power at least in the computer, [like it will work.] That is what is the rocket has, the more difficult for a vacuum chamber to leading us into the experimental phase which is about to maintain a vacuum. There are also other plasma physics begin. considerations that need to be studied, such as the wake effects, plasma effects, electromagnetic effects, charging, EIR: We don't have a machine that can produce the fusion and so on, in a vehicle that is completely detached from its for you yet. What kinds of experiments are you planning to environment . . . so we need to start doing experiments in do, to develop the technology? space. Chang Dlaz: We don't need to have fu sion; all we need is a hot plasma. It doesn't have to fuse. In a rocket, the energy EIR: When the SP-toois tested, the power from the reactor [to heat the plasma] would be coming out from an external will be used, as I understand it , to test an electric propulsion power source, which could be a nuclear reactor, or some system. other kind of power source. Someday, when fusion is a real­ Chang Diaz: I think we need to start thinking about electric ity, then we will be able to take away this external power propulsion. The plasma rocket concept we are talking about source, and become a fu sion reactor of our own. is a form of electricprop Ulsion; in the same sort of family of rockets. We need to start moving away from chemical rock­ EIR: You are saying, then, that the propulsion part of this ets, because they just do not have the internal energy capa­ design could be tested, and even operational in space before bility that a nuclear-plasma device can have. If we're serious you have fusion? about exploringthe outer planets, in any kind of a reasonable Chang Ow: That's exactly right, and that's what we're time scale for crews to flyout there, we need to come up with shooting for. That's why mirrors [fusion reactors, which a different propulsion system. have had technical difficulties] will be useful, because we're not [necessarily] expecting to create fu sion in this configu­ EIR: Any design you can come up with for chemical rock­ ration. All we want to have, is the hot plasma-hot on the ets, leaves you on a ballistic trajectory, or unpowered flight. order of maybe 800ev [electron volts] or 2 kev-that tem­ Would the kind of system you are designing give you pow­ perature range. The density could be a little higher than eredflight?

20 Science & Technology EIR September 18, 1987 Chang Diaz: It turns out that the optimum tuning of the and really optimize it and come up with hard numbers on the rocket gives you a constant acceleration, so for a constant power levels, [trip] time, thrust, and specific impulses, and power and constant acceleration, you have less and less thrust so on. Right now, we need to just prove the concept. and higher and higher exhaust velocity. You start with a high thrustand low velocity, and end up with a low thrust and high EIR: What do you think of the work that Drs. Gerald Kul­ velocity, by the time you get to your destination. It's a lot cinski and John Santarius are doing at the University of Wis­ like a car. You start in firstgear , and then you shiftto second consin, using the tandem mirror fusion design with helium and third, and so on. It's very similar to that idea. If you can fuel, mined on the Moon? Creating fusion energy with deu­ achieve an acceleration level which is fairly constant, that terium and helium-3, as they are suggesting, would produce may even reduce the biological problems that we have to energy in charged particles, rather than in neutrons. Would contend with in long voyages to the planets, where people this move into the more advanced fu sion fuels that they are are subject to zero gravity, so to speak. If we could have a proposing, benefityour propulsion concept? ship that is always accelerating and, of course, decelerating Chang Diaz: Oh yes, very much so. I think that's very at some point, then we might even reduce the biological [important] that they're looking at that area, because it's problem. really the way to go. You want to not have anything tied up into neutrons, because the only way you can extract their EIR: Our view of this is that you are going to have to do energy is by a thermodynamic process [ extracting heat], which that. It seems unlikely that you can subject people to 18 always tied you to a thermodynamic efficiency and lots of months of virtual zero gravity on a trip to Mars. The biolog­ heat losses. If you can do everything with charged particles, ical impact of long ballistic chemical missions is going to then you can have a direct conversion possibility and also prohibit that kind of technology from being used. much higher efficiencies. That would be absolutely great. Chang Diaz: I would agree with that. We need to findsome­ thing else, not only to reduce the zero gravity problem, but Science on the Shuttle also to shortenthe trip time. EIR: What are your plans in the Shuttle program? Chang Diaz: I look forward to flyingmany times-as many EIR: In the kind of system that you are developing, what times as my body will take. I hope to be on the space station. would be the effect on a Mars mission? What kind of accel­ One of the things that I have been pushing for within the eration would you attain, and what would the trip time be? astronaut corps, is to make the astronauts more active partic­ Chang Diaz: We calculate that acceleration would be on the ipants in the science and technology that's being carried out order of one-tenth of a [gravity] maybe a third of a g, de­ on the Shuttle. In the past, there has been a little bit of a pendingon the power source. The trip time varies, depending separation between the astronaut and the scientist. A lot of also on the power source. You can get there in about two the payloads that we flew in space had only one switch­ months or one and a half months, depending on the power essentially an on-off switch. If you threw the switch and it source. A lot of the electric propulsion concepts will do that, worked, it's fine, but if it didn't work, then you could not do and this one does it a little bit better. We can save a few weeks very much about it. That to me is a very inefficient way of in a trip to Mars . If we are going out to the asteroids, we can doing science. It's also a little bit of an insult to the scientific save months over the best electric propulsion concept. So the capability of the people in the program. I think that the way further out we go, the more we save, the more attractive it to do science is interactively. Put the human in the loop and looks. All of the electricpropu lsion concepts are attractive in let the human make decisions right there . We have been going this area. into this idea of robotics and automation, and I am opposed to a lot of that because I believe that we cannot automate EIR: For a ship going between a tenth and a third g, what things that we do not understand yet. Perhaps when we un­ would be the size of the power plant you would need for the derstand them, then we can automate them, but right now we propulsion system? don't. Chang Diaz: The one that we looked at, is a megawatt of The other thing is that we need to have people who are electrical power, which is a Jot now, but for the future it able to understand the Shuttle, and the space station, because wouldn't be. It would be a vehicle with a payload weighing the Shuttle and the space station are vehicles which are part 20,000 pounds, and it will have an engine which would be of the instrumentation that you use to do your experiment. about the size of an Orbital Maneuvering System engine on We cannot send a scientist up there to do an experiment and the Space Shuttle. The thrust levels could be as high as a not have that scientist trained and understand what the vehicle couple of hundred pounds at first, and then as you speed up, that he's flyingon , is doing. That's a deficiencythat needsto you go to lower and lower thrust levels. It's far from optim­ be corrected. ized, [because] we are just trying to prove the physics of it first. Soon we'll sit down with all of our engineering expertise EIR: The Shuttle is the first space program where the com-

EIR September 18, 1987 Science & Technology 21 mitment was made that scientists would fly. How much op­ engineering. A lot of the technology tests and development portunity do you think there will be for scientists to go into that we are going to be doing in space requires engineers, space to conduct their experiments, or for their experiments people who are well-versed in EVA [extravehicular activity, to go into space, even if they can't? or space walks] techniques and understand the laws of phys­ Chang Diaz: I think that at first in the Shuttle, and in the ics very well. That's what the mission specialists are all early phases of the space station, the scientist-astronaut has about. The mission specialist is more the jack-of-all-trades. to be a generalist. He has to be able to do many kinds of Some of us have Ph .D.s and have gone deeper into certain experiments in many areas, and do them well. He has to scientific areas, but are perfecdycapable of doing other things, understand the operating constraints and the operating re­ and we are trying to diversify. I'd say about 20-30% of our gimes of the vehicle, that make that science possible. We office falls into that category. People in our office are very probably should not be thinking about very specialized indi­ operationally oriented. They want things to work. They don't viduals, but more like generalists. People who understand want a system that is limited from the time it takes off from the basic nature of the experiments that are being carried out the ground. They want a system that can be reconfiguredand and can interact with the principal investigator, the scientist changed. If we are going to flya radar to do synthetic aper­ who has spentall of his or her life doing this experiment. tures for remote sensing, we want to be able to point it We have created a new group called the science support ourselves, not to have a ground command send it to move in group, and our task is to interact with the scientists who are some unknown direction. designing experiments to fly, early on, before those experi­ ments have been completely delineated or designed. We will EIR: You mentioned before 'that the vehicle you'reflying in try to transmit as much as we can in the way of operational is part of the instrumentation of your experiment. expertise. We have gathered a tremendous amount of expe­ Chang Dfaz: Yes, that was ,very evident in the Spacelab 2 rience in 25 Shuttle flights, we know how to do things, how mission to study the behavioI1of the Shuttle and the environ­ they work and they don't work, we know experiments that ment of the ionosphere that the Shuttle flies in. The Shuttle are going to make sense, can be repaired and accessed, and deployed a small plasma diagnostics package which was we know how not to design experiments. A lot of the time allowed to free-fly away from the orbiter, and the idea was that expertise has not been transferred, so the same mistakes to study the wake effects [electromagnetic interaction of the are made over and over again. orbiter with the Earth 's magnetic fieldand environment] . To We are trying to correctthat problem. The most interest­ do that the Shuttle was flown ina very intricate set of maneu­ ing science happens right there and sometimes you don't even vers around this package to oreate differentkinds of wakes. expect it. You just happen to look at something at the right You have to understand how this wake was forming and what time, and it behaves a little differently than what you thought, it was that the package was trying to measure. If you under­ and if your experiment does not have the flexibility, you stood that, then you could flythe Shuttle to do it best. There cannot catch it. But if your experiment has flexibility, and were some instances in which we had to flythe Shuttle away the astronaut can interact, then you get the data point. That's from the plane of the orbit to set upa fluxconnection between the smart way to do things, not a black box with an on-off the Earth's magnetic fieldand the field lines from the Shuttle switch. to the plasma package and then launch Alfven waves along the direction of the field, so you have to fly at just the right EIR: This groupof astronauts will then be working with the altitude, and rate. You've gotto understand the platform , the scientists from the beginning, before they've set up their vehicle, and its operating capabilities, at the same time that experiments? you understand the science. We have not done that with the Chang Dfaz: That's right. We have also set up a new pro­ scientists that had flown in the past. Either they were scien­ gram within the astronaut office, called the science collo­ tists who just concentrated on their experiment and were not quium program, and each month we bring scientists from the trained on the Shuttle, or vice versa. We need to merge the [scientific] community in to interact with us. We are studying two together. space tethers, remote sensing, materials processing, plasma physics-a whole realm of different things. We're tryingto EIR: How will the space station open up new capabilities set up the astronaut office and corps as a very credible, very for science and technology? capable group of scientists who are also astronauts. Change Diaz: If we do it right, and we do the homework that needs to be done in the Shuttle, then when the space EIR: Do you know how many people in the astronaut corps station comes along, we will have the expertise to have a are scientists? well-integrated marriage between the operations and the sci­ Chang Dfaz: It depends. "Scientist" is a very loose term. ence. Or call it operational science-a teamof people who Some people are engineers, and some of the scientists that can best do the experimentsi. If you look at most large re­ became scientists, did their work in engineering, like me. search facilities today, you don't see a single scientist work­ I'm an engineer. That's really my background-mechanical ing off all by himself or by herself in a little project. You see

22 Science & Technology EIR September 18, 1987 teams of people working together. That's what we need to century, without having to go through all of the complicated do-operational science. It requires a whole spectrum of developing processes that the developed nations went through. peoplenot just scientists, or just technicians. That would be one thing. The other thing that happens, is that when a country develops, it becomes a consumer of high EIR: I guess you'll get a chance to go to work on the space technology, and a country like the U.S. could be a very big station? supplier to countries which are suddenly consumers of high Chang Diaz: I hope so. technology. There is a symbiotic relationship that right now is not being exploited. A space agency for Latin America A country that does not have high technology, depends EIR: You did an interview with the Spanish language Fu­ on the U.S.via foreign aid, and the U.S.has to come up with sion magazine a while ago, when you were on a tour of Latin money to give those countries so they can survive. But if they America. In that interview, you expressed your ideas on the were developed, they would be able to pay for their own importance of getting the developing countries involved in technology with their own money , and they would live better, the space program, and space technologies. What are your and it would be better for the U.S., as well. All I'm saying, thoughts on that now? is that it makes sense to develop, and develop technology in Chang Diaz: It's like what's going on in Europe . Europe those countries. I think that the basic problem in Latin Amer­ has an organization, the European Space Agency (ESA), ica is a tremendous inefficiency in land usage, resources, which represents the European Community in this space ad­ communications. It would improve everything so drastically, venture. Other communities, like the Southeast Asian coun­ if we could just communicate , if we could do it in an efficient tries, also are gathering their resources to form their own way; if we could tell the people at the shores where the ASEAN community for the same purpose . I think of the schools of fishare , so they could go fish there . developing areas of the world, only Latin America and Africa If we could tell the farmer when the floods are coming, are areasthat don't have bodies that would represent them in or what [the cyclical storm system] "El Nino" is doing, it the space arena. Therefore, only very large powerful or semi­ would be incredible . In Mexico, one of the biggest problems powerful countries like Brazil and Argentina can get in­ is that a farmer of potatoes, for example, grows a bunch of volved, [but only 1 to a very limited extent, because even they potatoes, but he doesn't know where the market is, or where cannot really compete in their budgets. to go to sell them. One way to do it is to communicate via So one of the things that I have been trying to push for, is satellite, and find out where the potatoes are needed. These the creationof a Latin American Space Agency, which would are problems that affect all developing nations, and they be a working body, very similar to ESA, to bring Latin could be solved. Americato the forefront of space technology and the benefits from it. I talked during my tour of Latin America about EIR: Should there be an effort made to involve these coun­ remote sensing as one of the most important things they can tries more directly in the U.S. program, such as the guest benefit from right away. Communications also. You know astronaut program? that thecommunications satellites are geostationary, and have Chang Diaz: If that really involves people. There is a dif­ to be in equatorial orbit. Because geostationary orbit is ference between public relations and real honest to God col­ unique,[22,300miles above the Earth], there is only a limited laboration. I think we need to move towards a more realistic numberof satellites in space. When those countries are able collaborative program. I think, for example, by having a to put their own satellites up there, there will be no room left body that could oversee this sort of participation we could for them. So all of these issues need to be resolved in an ensure, like the countries in Europe, that they are actually internationalfo rum, and they need to be looked at in a serious participating in space, and not just being awed by it or being way. In the end, I think that when we move out from the perhaps taken along to see this or that, but actually be real Earthand we are all citizens of the Earth, we will not really participants in the technology. You have to be careful as to be citizens of any given country. It would make sense that how this gets done. we start coming together, before we do that. EIR: It would likely make more sense to have 100people EIR: NASA is developing new applications of remote sen­ come up here to be trained using the technology. . . . sing technology, such as tracking the migration of disease­ Chang Dfaz: Exactly. That, to me, would be crucial. If we carrying insects, which could be extremely valuable for could use some of the [NASA] tracking stations [used to countries in Latin America. What do you think the potential communicate with the Shuttle and satellites] that we don't benefitscould be to nations in Latin America, from this kind need anymore, such as the tracking station in Chile, or in of technology? Equador that we used for the Shuttle, if we could train people Chang Diaz: I think the benefitfor Latin America would be from those countries to use those stations to interact with to be able to develop very, very quickly. It would be able to Landsat or the [French remote sensing] SPOT satellite or take a short-cut in development and get to the end of the 20th whatever, then we are doing something good.

EIR September 18, 1987 Science & Technology 23 Brazil's ambitious program points towardby Lorenzo Carrasco continent Bazua -wide space agency

In November 1979, the Brazilian Commission on Aerospace two years to assemble, and will orbit 700 kilometers above Activities drew up a plan, the Comprehensive Brazilian Space the Earth. Its lifetime will be six months, after which it will Mission (MECB), which, by the end of the present decade, be replaced by a more sophisticated model, to be launched at projects the construction of a launch base in Alcantara, in that time. northem equatorial Brazil, the construction of a satellite launch The second series of satellites will be designed to provide vehicle (SLV), and the launching of four scientific satellites. information on natural resources through visual observation The program is ambitious for a "Third World" country, of Brazilian territory . By picking up infrared images from but its greatest importance lies in the hope that it could be the the subsoil, these remote-sensing satellites will be an impor­ starting point for a long-dreamed-of Ibero-American Space tant tool for research on mineral, agricultural, forestry , and Agency. Only the combined efforts of the nations of the oceanographic resources. It will weigh 150 kilograms and continent, would make possible their meaningful participa­ will orbit the Earth at 642 kilometers. tion in the great projects of space colonization that should In satellite building, the INPE is about to make its most occur during the firstdecades of the next century. important technological leap, by putting on line this Septem­ Brazil's program is a joint effortof the Institute of Space ber an Integrated Test Laboratory (LIP). It is the first of its Activities (IAE), the Aerospace Technical Center (CTA) , kind to be built in the Southern Hemisphere and will be and the National Institute for Space Research (INPE), part of capable of simulating launch, orbit, and reentry of space­ the Ministry of Science and Technology. The INPE is re­ craft. sponsible for the design and construction of satellites, related This lab is really a battery . of laboratories spread over facilities on Earth, and the testing and operation of satellites 10,000 square meters . It is equipped with several Hewlett­ in orbit. The CTA is responsible for developing the launch Packard HP- 1 000 mini-computers. In one section, thousands vehicles and building launch facilities. of satellite components will be subjected to space-environ­ The CTA has, to date, launched four sub-orbital test ment simulations, such as extreme temperatures, from 1690 rockets and will launch three more to complete the prelimi­ Celsius below zero to 1500 above zero. They will also be nary phases for placing the firstBrazilian satellite in orbit at subjected to electromagnetic interference, and other tests. the end of this decade. Shielded echo-free chambers will be built by INPE for these The most recent test launch was in November 1985, from tests. the launching pad at Barreira do Inferno in the north . One In another section of LIP, the satellite will be put on meter in diameter and 12 meters in length, with 4 meters of vibration machines which simulate the acceleration and shock cargo space, the two-stage Sonda IV rocket traveled at 11 effects of the launch process. These tests will be performed times the speed of sound during its 20-minute flight,reaching in cylindrical chambers approximately three meters in di­ an altitude of 700 kilometers. It carried 7.3 metric tons, ameter, which will have to be recalibrated constantly. A including 500 kilograms of experimental equipment devel­ support section will take charge of calibrating the chambers. oped jointly by the CTA and the U.S. Air Force. But, beyond building a test lab for the development of the four satellites, which could be used in collaboration with The Integrated Test Laboratory other countries, the new installations will permit the devel­ The National Institute for Space Research's timetable opment of scientificequipment and technological capacities, lists February 1989 as the date for launching BRASA, the pushing Brazil's space sector toward an internationallycom­ firstof the four satellites, designed for collecting meteorolog­ petitive position. Then, in the opinion of the director general ical, climatological, and hydrological information for trans­ of INPE, Marco Antonio Raupp, "Brazil will have defini­ mission back to Earth. It will weigh 115 kilograms, will take tively reached its maturity in space activities."

24 Science & Technology EIR September 18, 1987 important that Brazil is developing the infrastructure which will enable it to participate in future projects of man's colo­ nization of space.

An Ibero-American Space Agency? The only guarantee that Ibero-American countries, in­ cluding Brazil, will meaningfully participate in, for example, the colonization of Mars, is the integration of their space programs in an Ibero-American Space Agency. This idea has repeatedly circulated on the continent, and was discussed, once again, during the Latin-American Symposium on Re­ mote Sensing, which took place in Brazil at the end of last year. INPE director general Marco Antonio Raupp advanced the idea there of putting together a joint space program, like the European Space Agency. "This is the hour to think of an agency, because its effects are long- erm," he stated. Raupp stated that space programs are characterized by large capital investments and touch upon areas beyond the capabilities of any single country . To share costs and benefits, he asserted, there is nothing like a uniting of efforts.

Communications from Brazilian satellite to Earth stations

Since the entire project will stimulate a broad variety of scientific areas and technological applications, the building --r-750 Km and testing of satellites will also be of vital importance to the development of national industry, especially the high tech­ � nology and capital-goods sectors. The Foundation for Space I�� Science, Applications, and Technology is precisely the link which connects INPE with commerce and industry. Its func­ tion is to promote the creation of space-sector industries.

Looking toward the future In addition to launch-vehicle and satellite development, the building of a giant launch complex is the pillar of the Comprehensive Brazilian Space Mission . Its siting in Alcan­ tara, in the state of Maranhao, is due to its proximity to the Equator. Launchings near the Equator save fuel by taking advantage of the Earth's rotation, which is fastest along the equatorial line . That, of course, is why the French sited their launch base at Kouru in nearby French Guyana. Fuel savings of as much as 27% in equatorial launches lead one to believe that many space launches, including those Uses of data collected of NASA in the next century, could take place at Alcantara. Meteorology To this end, the facility is being built large enough to Hydrology Ocear:1ography launch Space Shuttles, even though no such launches of that magnitude are planned in the near future. But it is extremely

ElR September 18, 1987 Science & Technology 25 ITmFeature

Nonlinear mdiation: the war btruey Lyndon H. LaRo touchetal, Jr.

Remarks to a conference sponsored by Executive Intelligence Review in Munich. Federal Republic of Germany. on Sept. 3. 1987.

During the span of the coming four to fiveyears , almost certainly, a technological revolution in warfare will have completed its firstphase . It will be more awesome than that which exploded over Hiroshima and Nagasaki back in 1945. The full electromagnetic spectrum, from less than 10 Hertz into the gamma-ray region, will emerge as the arsenal which dominates the arenas of strategic and tactical conflict. The powers which first master this field, will have gained the potential military capability to dominate this planet. This revolution in weaponry has already begun. On the basis of results of a laboratory test which I requested, I know that we in the West have the capability to construct, and to deploy for military functions, some kinds of working proto­ types of such weapons of mass-killing on very short notice. I also know, that the Russian command's currently operational pre-war war-economy mobilization, known popularly as perestroilal. has the prominentlyincluded aim, to build weap­ ons for a new orderof battle of Soviet forces, within as short a time as five years. This effort is focused substantially on the production and deployment of both strategic and tactical electromagnetic weapons of the new class. Back during 1981 and 1982, while I was working on design of what became known later as the U.S. Strategic Defense Initiative, I anticipated that by the end of the 1990s, strategic weapons-systems would go beyond the level of the beam­ weapons I proposed for strategic ballistic missile defense, into electromagnetic, strategic offensive capabilities. Electromagnetic-radiation weapons, more pow­ erful killers than nuclear warheads, were seen as inevitable for as early as the end of this century, or only slightly later. Two years later, by the firsthalf of 1984, I had seen enough evidence to prove that the deployment of such weapons was in reach perhaps as soon as 10 years earlier than I had estimated during the time I had been working on the design of SDI. Today, I find wide agreement on the early feasibility, and strategic signifi-

26 Feature EIR September 18, 1987 From left : Karl Gauss, Johannes Kepler, scientific tradition represented by these men fo rmed the basis fo r LaRouche's understanding of the way i� which the revolutionary new weapons now emerging accomplish their nonlinear effects.

cance of such weapons among relevant senior military spe­ research essential to understanding better thedesign of weap­ cialists of several nations with which I have been in com­ ons and tools designed for inorganic target-materials. I shall munication . limit my observations todayto the biological targeting. The exploration of technologies of electronic warfare has been under way since no later than the 1930s.This field has My approach to the field had increasing importance since the war-time development It is useful, to indicate the route by which my interest was of radar, and has become more and more sophisticated with drawn into this area of technology . A brief description of that the development of more ingenious uses of increasingly pow­ may help to make the subject more mtelligible to those who erful individual and coupled gyrotrons. are still perplexed by the topic of nonlinear effects. Until recently, most of the attention was concentrated on My original work in the profession of economic science, what were called the thermal effects, such as the destructive initially during the 1948-52 period, was in refuting the doc­ heating of targets irradiated with microwaves. It was only trine of "information theory" associated with such names as with great reluctance that Western nations recognized the Norbert Wiener and John von NeurJann. I attacked this mat­ importance of nonlinear electromagnetic effects, in which ter of controversy from the vantage-point of what Leibniz thermal effects have an almost irrelevant, or merely subsidi­ was first to define rigorously as "bhysical economy," the ary role relative to the crucial effect produced. study of cause and effectrelations between advances in tech­ My estimate is, that in the West, such nonlinear effects, nology and physical productivity of labor. In this aspect of such as electromagnetic solitons, began to be studied seri­ economic science, our primary researches ignorethe rolesof ously from a military vantage-point, only during the early money and prices. 1980s.Even today, much missionary work is needed to con­ My task was to show, that contrary to Wiener and von vince many working in the area of radio-frequency weapons, Neumann, the mental-creative procTsses which generate sci­ that the most significant effects are predominantly certain entific revolutions and technological progress, as causes, among the non-thermal effects of sometimes very complexly have an implicitly measurable correlation with their effects, constructed, nonlinear forms of such radiation. the increases in physical productivily of operatives obtained As a matter of emphasis, my own attention has been through advances in applied technology. focused upon biological effects achieved with what conven­ For elementary mathematical reasons, the transforma­ tional standards for thermal effects in electronic warfare would tions in economies caused by techdological progress are in­ consider very low wattages per square-centimeter of target­ trinsicallynonlinear. Similarly, if we restate scientificrevo­ area.Outside biology, some senior scientists are working on lutions in the proper choice of matHematical representation, the harmonics of the periodic table, an area of fundamental technological progress, as a productof the individual human

EIR September 18, 1987 Feature 27 nonlinear electrodynamics, th¢ desired, comprehensive bio­ logical foundation for exposing the ontology of human psy­ cho-physical parallelism could be isolated. A short bibliography It was clear, for the same reason, that the desired result could be found only along routesdefined by optical biophys­ on RFweaponry ics, defining "optical" to signify some kind of Riemannian nonlinear electrodynamic functions within the bounds of all Executive IntelligenceReview has published a number relevantportions of the electromagnetic spectrum. of articles about the technology and politics of radio My approach to biology definesthe so-called elementary frequency weaponry. Among them: physical particles, including photons, electrons, positrons, June 5, 1987: "The next Soviet 'Sputnik': strategic and so forth , as discrete singularities akin to our so-called radio frequency assault weapons," by Lyndon La­ "solitons," in a Riemannian, electrodynamic physical space­ Rouche. time continuum. It follows, for reasons elaborated by the June 12, 1987: "West must counter Soviet radio great Gauss in his reworking of Kepler's astrophysics, that frequency weapons," by Jonathan Tennenbaum; and the structure of the atom and of plasmas, and the character­ "Soviet strategic radio frequency and other assault istics of the periodictab le, are determined by a Kepler-Gauss­ weapons: a primer," by Warren J. Hamerman. Riemann kind of harmonic ordering within such a character­ July 3, 1987: "The Russian lead in radio frequency istically negentropic, nonlinear electrodynamic continuum. weapons," by Robert Gallagher. This is not merely my strong investigative hypothesis; it July 10, 1987: "How Russia's radio frequency is the standpointfrom which nonlinear effects weapons must weapons can kill," by Robert Gallagher. be understood, if our understanding is to become efficiently July 24 , 1987: "Pentagon ignoringSoviet scientific adequate. lead?" This is a view of physics consistent with the elaboration September 4, 1987: "How radio frequency waves of non-Euclidean geometry since Nicolaus of Cusa estab­ interact with living systems," by J.W. Frazer andJ.E. lished the foundations of modern non-Euclidean geometry in Frazer. 1440. This is the view flowing from the special kind of synthetic or constructivegeometry , on which the elaboration of the Gauss-Riemann complex domain is explicitly prem­ ised, both in respect to mathematical methodology, and also ontology. brain, is also demonstrably nonlinear. If Riemannian physics The fundamental question of physics posed by all nonlin­ is represented from the vantage-point Professor Riemann ear processes, especially from the vantage-point of electro­ demanded, constructive or synthetic geometry, both of the dynamics, is a veryelementary one. The elementaryquestion nonlinear processes, creative mentation and effects of tech­ of method is: How is it possible to provide an intelligible nological progress, can be given a unifying fu nctional rep­ representation of the continuous process-a continuous resentation. manifold, by means of which an electrodynamic continuum Thus, for nearly 40 years, because of the nature of my must necessarily generate subsumed singularities of the sort discoveries in economic science, I have had a special interest which appear to define, as intellible projections, the content in identifying the form of the biological processes which are of a discrete manifold? The attempt at intelligible represen­ the substrate of human creative mentation. For that reason, I tation of all true, continuously nonlinear processes, including have been grippedby a passion to understand the relationship the new weapons of electronic warfare , presents us with this between the special biological processes associated with these same question of method. brain functions and biological processes in general. To fol­ To those who have traced the internal history of natural low my own role in coordinating scientific inquiries into philosophy and modern science as a kind of continuing pro­ mattersbearing upon newthe weapons technology, one should cess of research into fundamental questions of method and know the methodological standpoint which has defined my ontology, the issues I have identified are as old as classical approach to these investigations. Greece, treated in exemplary fashion by such as Parmenides, I have adopted the very strong form of investigative hy­ Plato, and Archimedes. The most fu ndamental, persisting pothesis, that such processes could not be understood ade­ question, has been the problem of intelligible representation quately from the standpoint of molecular biology. Over the of an efficient principle of causation by which a true contin­ years, it has been my investigative hypothesis, that if the uum, initially without discreteness, necessarily generates most characteristic feature of living processes, that which what, in effect, we recognize with our mental-visual appa­ distinguishes them as living, rather than merely organic ratus as an efficient form of the discrete manifold. chemistries, were shown to be coherent with Riemannian Historically, modern science's ranks have been divided

28 Feature EIR September 18, 1987 between those, like Cusa, Leonardo da Vinci, Kepler, Leib­ oneering work of Vernadskyand Gurvitsch during the 1920s niz, Gauss, and Riemann, who based their contributions on and 1930s, placed in Soviet hands a kind of potential set of the insistence that this continuum issue was the primary fact super-weapons beyond the imagination of even most biolo­ confronted by investigations into method and ontology, and gists and electronic-warfare specialists. those opponents , such as Descartes and Kant, who insisted For reasons I shall not detail, during 1986 some of my that notions such as "creation" and "life" were intrinsically associates and I were confronted with a major non-military incapable of intelligible representation by man. The charac­ problem in applied nonlinear spectroscopy, requiringthe same teristic difference between these two modem factions in sci­ electronic technology as these large-scale-effects weapons. ence has been the preference for the standpoint of the methods We were confronted with the practical questions: What type of non-Euclidean, constructivegeometry by the one, and the of power-plant, what sorts of wave-guides, and what other opposing preference for the more or less radically axiomatic­ specialized equipment available today, would we bring to­ deductive methods of treatment of the discrete manifold, by gether to do the job? Given the kind of equipment available the other. Such were the differences, in electrodynamics, today , using the methods of work commonplace in advanced­ between Riemann and Beltrami, on the one side, and Clau­ weapons systems crash programs back during the 1950s and sius, Kelvin, Helmholtz, and Maxwell, on the opposing side. early 1960s, the package needed could be assembled within This controversy is the root of the difficulty experienced weeks, and could be packaged into a trailer truck or cargo among numerous professionals, in their efforts to compre­ aircraft. hend adequately the kinds of nonlinear phenomena confront­ We were faced with the fact, that the same package, ing us in development and application of the revolutionary configured as a weapon-system against large, targeted pop­ weapons now in progress. In the case of the nonlinear biolog­ ulations, could be produced and deployed during the same ical effects of such weapons, these issues are clear in the most period of time. We thought also, that some of the equipment immediate way. It was principally my application of this view being used by Soviet Academician Velikhov could be most of the matter to the issues of definingthe ontological form of useful as part of such a weapons-system. We were confronted living processes, which equipped me to comprehend the with the fact, that the world had already crossed the threshold manner in which the new weapons accomplish their nonlinear into the next scientific revolution in warfare. effects on biological and other targets. My associates and I continued our investigations along During afre sh discussion of this continuing work, during these lines. This overlapped one of my special projects in 1983, one among my associates who had been working on collaboration with EIR , strategic analysis of the shiftingpat­ mapping of visual functions of the brain, said to me: "Oh, I terns of relative military capabilities of the Westernand Mos­ see what you mean. I know of the work of several people in cow alliances. that field." So, I experienced one of the happier periods of Putting this technological knowledge today with my in­ my life, by being brought, belatedly, into contact with some telligence on relevant developments inside the Soviet Union, of the handful of specialists working in the fieldcalled "non­ I realized why Marshal Nikolai Ogarkov and his Soviet gen­ linear spectroscopy" of living processes. I brought some of eral stafffriends at the Voroshilov Academy were so eagerly these specialists into seminars which included senior plasma prodding Secretary Mikhail Gorbachov into luringPresident physicists, and a gifted astrophysicist doing some pioneer Reagan into a "zero option" agreement. work on anomalous objects. The presentations, and ex­ If the Soviet governmentcould reach an agreement which changes around the table in a series of seminars, brought the resulted in scrapping missile-systems Marshal Ogarkov now area into clearer focus. considers technologically obsolete, such as what we call the With that, I alerted some of the officialswith whom I had SS-20, Moscow could concentrate freed-up sectors of Soviet been working , earlier, on the design of the sm, and have military capacity on both accelerated deployment of the So­ been an active lobbyist for the cause of this line of research viet version of the Strategic Defense Initiative, and also on ever since. About the same time, our ongoing international rapid development and deployment of both strategic and tac­ seminars took up a study of this infection we call AIDS. We tical electromagnetic weapons of this revolutionary type. recognized very early, with help of information on some relevant aspects of cancer research, that biological research A new Soviet order of battle? dedicated to uncovering a general cure for the AIDS infection Now that this background has been summarized, let us would require heavy emphasis on this fieldof nonlinear spec­ examine the strategic implications. troscopy. On the basis of a daily gridding and accumulation of Most of the participants in these seminars were stunned evidence from Soviet sources, our best estimate today, is that initially, to discover the very small wattages per square cen­ Marshal Ogarkov's pre-war war-economy mobilization, timeter required to alter, or to kill tissue by appropriate ap­ called perestroika, is intended to reach its peak-levels of pre­ plications of methods of nonlinear spectroscopy . Some of us war mobilization by about 1991. Let us suppose that peres­ also recognized that Soviet work, continuing today the pi- troika slips a year or more beyond a 1991-92 target-date.

EIR September 18, 1987 Feature 29 tracing the role of Marshal Nikolai Ogarkov of KAL-007 infamy, and his numerous Red Army officer-progeny in formulating and carryingout the current Soviet technolog­ Seminar in Munich looks ical-economic war mobilization (perestroika), which is aimed both at a Soviet strategic defense capability and at radio-frequency weapons "high-tech spetsnaz." Neither the technologies for radio-frequency weapons The first of a series of ElR-sponsored seminars in West against "soft targets" (human beings), nor the specific Germany on military applications of radio-frequency Soviet commitment to fieldingthese technologies, can be technologies, "Radio-Frequency Weapons-Feasibility dismissed as "futuristic science fiction," Liebig pointed and Strategic Significance," took place in the afternoonof out-any more than the strategic conception and technol­ Sept. 3 in Munich. The seminar focused on the technolog­ ogies, which EIR introduced into NATO debates at the ical and strategic threat posed by determined Soviet efforts beginning of the 1980s, which later become known as the to field tactical battlefield radio-frequency weapons em­ SDI. ployed by spetsnaz ("special forces") as early as 1991-92, "In the combination of special forces units, whose and was addressed by American presidential candidate quantitative and qualitative importanceis dramatically in­ Lyndon LaRouche. creasingin the Russian armedfo rces as a whole, and such The more than 70 participants were almost exclusively weaponsystems on the basis of directed energy, there is a professionals: active service West German military, some new, acute threat to our security, one which has been but of whom represented units particularly relevant to the meagerly realized up to now. We simply cannot afford to possible future formation of "special forces" within the ignore this threat by high-tech spetsnaz," Liebig argued. West Germanarmed forces; representatives of most of the world-famous larger military-related industries in the Soviet prog�am an open secret Munich area, as well as a number of more specialized Jonathan Tennenbaum, an American scientist who di­ electronics-physics firms; representatives of the West rects the European Fusion Energy Foundation, dropped German intelligence community generally, in addition to another bombshell by reviewing in detail, from the open technical military intelligence; and ranking representa­ Soviet literature, efforts extending back to the 1960s to tives from the military community no longer on active fulfillVernadsky ' s program of research and development. duty. Vernadsky, the architect of the Soviet atom bomb project European military professionals hardly ever contest in the 1930s and 1940s, had predicted that the nation that the sugar-coated packaging intended to sell the Rus­ which gains control over emission of radiation over the sian-Soviet perestroika to the Westernpublic as a policy entire electromagnetic spectrum would become the world's for peace is pure subterfuge and disinformation, decorat­ dominant industrial and militarypower. ing the stage of today's so-called disarmamenttalks . But While reports from the Soviet literature on radio-fre­ Michael Liebig, who manages the West GermanEIR news quency radiation generation over broad spans of the elec­ agency, gave substance to these justified suspicions by tro-magnetic spectrum, wave-guides, and power genera-

That gives us in the West more time, but the logic of the ulations in Westernnation s. situation remainsessentially the same. Assume that the West's In West Germany today, for example, we can fairly es­ cutting of military and research and development budgets timate the deployable, qualifiedparamilitary combat forces continues the downward trend currentlyin progress. What is at about 10,000, of well-trained and other capable forces, the situation by 1992, or perhaps a few years later? coordinated by East bloc-trained paramilitary officers. The To situate the new weapons in the strategic equation, various concentric circles of less qualified sympathizers among strategic analysis must take into account the interrelationship potential riot-auxiliaries, saboteurs, and so forth , including between two general features of an altered Soviet order of such as Islamic and Kurdish residents, totals to a large mul­ battle. tiple of the hard-core forces. Kindred situations exist, and The present process of transformation in Soviet war-plan­ are developing in other Western nations. ning defines the firstline of Soviet assault, over the medium­ We must assume that this expanding capability, over the term, as the combination of paramilitary forces and active coming four to five years at present trends, combined with sympathizers of those forces recruited from among the pop- Soviet spetsnaz infiltrators, typifies the Soviets' first line of

30 Feature EIR September 18, 1987 tion, dropped to zero in about 1983, even in "civilian" Brig. Gen. (ret.) Jobst Rohkamm until recently com­ areasof application, Dr. Tennenbaum pointed out that it manded the West German Armed Forces Signal Corps is still possible now and then to find, for example, descrip­ School in Feldafing near Munich. tions of medical experiments done to determine how to He contrasted the apparent lack of a "perception of the alleviate effects of radio-frequency radiation in humans threat" in the West with Soviet-Russian forced build-up with various forms of medication, medication adminis­ of spetsnaz forces, amounting to a force of millions if the tered both before and after exposure to radiation at various trained reservists are included in the calculations. He also frequencies. drew upon the recently published book by Viktor Suvo­ Tennenbaum demonstrated the incontestable orienta­ rov, Spetsnaz, The StoryBehi nd the Soviet SAS. The per­ tion of Soviet research work toward the nonthermal and spectives and imperatives discussed by LaRouche and nonlineareffects of radio-frequency radiation. Thus, while Tennenbaum, Rohkamm argued, cannot be dismissed as continuous radiation in the millimeter ranges would hard­ figments of the imagination by anyone who knows the ly penetrate human tissue surrounding the lower base of ruthless brutality characteristic of Russian special forces. the human brain, there is evidence that the Soviets have "This is precisely the mentality capable and determined to experimented with pulsed radiation in this range, employ­ employ such fe arsome weapons." ing "bundles" of pulses at carefully designed frequencies. Given the German Wehrmacht's experience with Rus­ All of the "critical scientists" who claimed it would be sian special forces in World War II, and given these cur­ impossible to beam laser light through the atmosphere to rent developments, the general argued, the current state hit incoming ballistic missiles, have been refuted by the of affairs in the West, particularly in the Federal Republic phenomenon of "self-induced transparency." Russian work of Germany, makes a laughingstock of any defense mis­ is honing in on just this phenomenon, and applying it to sion: There are no designated special forces units in the biological organisms. (In the discussion period, several armed forces of the Federal Republic of Germany, Roh­ participants reemphasized this point, and argued that, in kamm pointed out, making the Federal Republic an anom­ this areaof physics, nonlinear spectroscopy, and optical aly among all Westernnatio ns, and all nations in the heart biophysics, anyone who argues that nonlinear phenome­ of Europe. non x, or y, or z, is "impossible," is skating on very thin Even those "deep reconnaissance" forces assigned for ice.) operations "behind enemy lines" "are given training and equipment to ensure that they are capable of nothing but Germany needs 'special forces' reconnaissance," he said. For some of the more technically oriented partici­ That state of affairs must be radically changed. Gen­ pants, Gen. Jobst Rohkamm first sketched a number of eral Rohkamm then held up to ridicule a graphic example interfaces between current state-of-the-art phased array of the defeatist mentality that would preventsuch a change: radar, and communications monitoring and jamming a three-page fashion advertisement from a current West equipment, and then, the more advanced applications of German magazine. The latest in fashion is pictured with radio-frequency weapons which Tennenbaum had re­ the hammer and sickle embossed on the breast pocket of viewed. men's shirts and ladies' dresses!-George Gregory

assault in Western Europe. crucial kinds of weapons which might be used by infiltrating The second line of Soviet assault will probably not be spetsnaz forces for the purpose of destroying Soviet first­ armored assault, but elements of Soviet regular units de­ strike strategic objectives by means other than missile­ signed to interface with the combined local irregulars and launched nuclear warheads: spetsnaz infiltrators, including special airborne units of the 1) Pre-infiltrated, compact nuclear bombs, for hard tar­ sort now forward-based in Hungary. Armored units follow, gets. not to lead the assault, but for occupying the terrain in the 2) Some selections from the repertoire of chemical-bio­ wake of the firstand second lines of assault. logical agents, for use deep in our interior. That is sufficient description to make the point summa­ 3) Pre-infiltrated, electromagnetic strategic and tactical rized here . How does such an order of battle dovetail with weaponry, for use against personnel and other vulnerable the impact of the new class of strategic and tactical electro­ targets. magnetic weapons? Since, in case of assault, Warsaw Pact forces intend to This gives the Soviet strategists selections among three overrunand exploit WesternEurope , the use of pre-infiltrated

ElK September 18, 1987 Feature 31 nuclear and chemical-biological agents must be limited to sources, in addition to conventional ones, there is the case of targets for which no alternate effective means is available. the very clever, truck-portable device developed by Soviet Electromagnetic strategic and tactical weapons fill this hole Academician Velikhov. With greaterpower supplied to com­ in the Soviet war-planning problem. plex, nonlinear electromagnetic beam-pulses, the needed With East bloc TIR trucks long circulating in the thou­ wattage persquare centimeter on target-area can be achieved sands, with impunity, throughout Western Europe , and by at correspondingly greaterdi stances, and over wider areas . other rather obvious means, the infiltration of the three class­ As electromagnetic agents of biological warfare , such es of weaponry assigned for use by infiltrated spetsnaz units weapons have potentially the killing power·of a thermonucle­ presents Moscow with no great difficulty. The largest stra­ ar warhead, without any of the unwanted after-effects to tegic electromagnetic system required for such use, could be trouble Soviet occupying forces. The tactical uses are ob­ conveyed in operational form in a trailer-truck rig, even at vious. today's level of technology. There are sublethal effects available within the repertoire It is a fair estimate, that there are approximately 250 as a whole, such as sleep-inducing effects. Or, the direct Soviet first-strike strategic targets in Western Europe . Here­ target might be an induced change in the environment, or an tofore , it has been the popular assumption that this requires a effect on vulnerable microorganisms on a large scale, and the net of about 250, missile-deployed nuclear warheads hitting physical possibility of global,·electromagnetically induced their targets, of the total warheads launched. Today, tech­ effects. nologically, potentially, all of those targets could be neutral­ Therefore, as I have said, whoever first controlsthe full ized by either pre-infiltrated, compact nuclear warheads, or range of the electromagnetic spectrum, and is able to produce strategic and tactical electromagnetic weapons, without the specific, nonlinear effects by this means, has won the power firing of a single Soviet missile. to dominate the world. We had better move quickly, before For obvious reasons, it is doubtful that Moscow would it is too late. entrust the use of such pre-infiltrated strategic weapons to It is the general rule in technology, that the technology paramilitary forces recruited from among Western European which provides a weapon of greater mobility and firepower, populations. Starting a covertly deployed, precisely coordi­ is also the technology which supplies mankind a more pow­ nated assault requires highly compartmentalized control of erful tool. Conversely, the technological principle of each disciplined units; this is a spetsnazfunc tion. The local Soviet more powerful tool , is also mote or less readily applied as a assets among trained paramilitaries and their auxiliary activ­ superior weapon. The same is trueof nonlinear spectroscopy. ists have a different assignment at the brink of war, essen­ This is the new biological science. tially an escalated form of their pre-war functions of terror I have already mentioned the importance of this line of and disruption, and also a diversionary screen serving more investigation for discovering a general cure for the AIDS or less unwittingly as logistical support for the infiltrated infection. If we could master the spectroscopy of the full spetsnaz forces. range of the mitotic process, from the existence of the parent Compact nuclear bombs are an existing technology. The cell, through to the formation of the distinct daughter cells, new electromagnetic weapons are , in some degree, at least, we would have the key to mastering AIDS. This might re­ existing, deployable prototypes, but certainly not available quire 10 years of research along'both those lines, and parallel yet in the quality and degree required for such missions. molecular biology, before a cure were discovered; the sooner Marshal Ogarkov and his general staff associates require we take this seriously, the soon¢r the research is done. several years or more of successful perestroika, and success­ Since, under presentlyprevailing public health policies, ful negotiation of a "zero option" agreement, to beadequately the group of closely related human-specific infections asso­ prepared to deploy the new order of battle for general assault. ciated with the name human AIDS could potentially render For obvious reasons, the deployment of the Soviet version of the human species extinct within two generations or so, this SOl, now in progress, must be essentially completed. Most line of combined biological researchhas properly thehighest probably, the kindof threat described is a medium-term threat. priorityof any task facing governmentsor mankind general­ Nonetheless, if we consider the tasks we must complete dur­ ly. So, the picture of the matter is, that this new biological ing the five-odd years we can allow safely for this purpose, science, which will play at least. an integral role in saving the the time for us to begin is now. human species from extinction, also bears upon the knowl­ edge which enables us to destroy life.with the least effort Where we stand applied over the broadestar ea. Recent advances in relatively higher-temperature super­ We dare not hold back the clock of science in this area. conductors, mean much more efficientelectrodes for devices Whoever develops a cure for AIDS , or better cures for can­ such as gyrotrons, perhaps two orders of magnitude of in­ cer, by help of this science, also:possesses the most powerful crease of output. There are other, more sophisticated new weapon ever conceived. We had better master this science kinds of devices, which I shall not discuss here. As for power quickly, for every reason we might imagine.

32 Feature , EIR September 18, 1987 LARouc

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by Lyndon H.hundre LaRouche, Jr. d years later

Our federal Constitution of 1787 has endured the tests of spiracy exerted a great influence on the English monarchy, time, as no other in the history of mankind has been able to nearly defeating the Duke of Marlborough and his forces. meet that test; it is today , now 200years old, the oldest living The forces arrayed around the leadership of Leibniz and constitution in the world. Swift, in Europe, reached out to the Americas, to join forces For 200 years, there has been little reason to amend it. with the Americanrepublicans then centered around the lead­ The first ten amendments, called "The Bill of Rights," stip­ ership of Boston's Cotton Mather. William Penn, the propri­ ulated lessons of law hard learned in the preceding two cen­ etor of the Pennsylvania colony, helped from, as Penn him­ turies struggle for civil and religious liberty within both Brit­ self put it, "not abovethe table," but effectively. Two royal ain and North America. Those amendments which outlawed governors, Robert Hunter (New York) and Alexander Spots­ the last remnants of slavery and extended the adult franchise wood (Virginia), chosen by Swift's faction, linked with Cot­ to all, have the character of extensions of the Bill of Rights. ton Mather's faction, produced the policies and organization Otherwise, only changes in the method of selection of, and later represented by the chosen protege of both Mather and succession to the President have a constitutional character. Spotswood, Benjamin Franklin. Over the course of time, those amendments have proven When Franklin became directly active in Europe for the necessary; however, their adoption represented no alteration cause of the future United States, beginning in 1766, it was of the original intent. the same forces earlier grouped around Leibniz and Swift The other amendments should not have been adopted as who gave the American cause the support leading to victory part of the Constitution itself; they are merely ordinary leg­ in 1783. islative law , which special interests saw fit to enact in the Heretofore, serious students of our national history have form of a constitutional amendment. recognizedthe rootsof our republic in the Massachusetts Bay This year, we celebrate the anniversary of this Constitu­ Colony prior to 1688. Those students have recognized the tion with the publication of a major work currentlyin progress spirit of the earlier Massachusetts Bay Colony reawakened at the printer, historian Graham Lowry's How the Nation in the growing resistance here to the British Liberal Party's Was Won . This book fillsin what has been previously a blank efforts to destroy our economy and local self-government. page in American history, the internal political history of the Yet, what happened, between 1688 and the onset of the colonies in North America during the fifty years following French and Indian Wars, to maintain and spread the conti­ the 1688-89 events in England. nuity of the Massachusetts Bay Colony's republicanism, re­ During the last half of the reign of England's Queen mained buried in archives, neglected by our modem histori­ Anne, an international conspiracy was raised against the evil ans. English Liberal faction around the Duke of Marlborough. Now, that glorious, previously missing page from our This conspiracy was centered around a then prospective Prime history is no longer unknown. Putting this missing page into Minister of England, Gottfried Leibniz, and Jonathan Swift its properplace , is of greatpractical importance for us today, in Ireland andEngla nd. For a time, this pro-American con- on two counts.

34 Books EIR September 18, 1987 George Washington presiding at the Constitutional Convention in Philadelphia in 1787. The crisis wasmmllron almost as bad as the one before us today .

First, knowing the historical experience which shaped parliamentary system. the opinion of the founding fathers, we have no reason to That means Mrs. Harriman's Robert Strauss, and doubt the intent of the authors of our Declaration of Indepen­ Kennedy's Democratic National Ctlamnalll, Paul Kirk. That dence and Constitution. The influential, lying socialistswhose means longstanding Soviet agent Atm,ma Hammer, and his doctrines of hatred against the Founding Fathers have dictat­ indicated successor, the wealthy Andreas. It means ed most of the history curriculum during the past 70 years or the influential Lloyd Cutler. It so, such as Charles Beard, Arthur Schlesinger, and Walter sociated with the Republican Lippmann, are now completely discredited, and the influence Were those misguided forces to $u(;ce:ed in this disgusting of their ideas on constitutional practice shown to be a false venture, the result would be a away of that form of and pernicious one. government on which our has depended for 200 Second, the timely intervention of such figures as Leib­ years, and a sweeping away of the vestige of the protec- niz, Swift,Hunter, and Spotswood occurred at a point in our tion of our Bill of Rights to C'U"''-'"''IJ; '-'"'-'' national history when we seemed doomed to lose everything Such an enterprise we must for which the Massachusetts Bay Colony had been estab­ be no greater folly than to permit lished. Chiefly as a result of the drift of our national policy forward under present conditions during the recent 20 years, our republic is now threatened now in an accelerating collapse of /lq�lclll1tlllre with a destruction of our economy and our liberties as dan­ ing, and our basic economic We are at the gerous, and perhaps more so, than that which the circles of verge of what leading bankers warnwill be the biggest finan­ Cotton Mather faced at the beginning of Queen Anne's reign. cial crash in history-worse than that which Calvin Coolidge I Knowing now, the whole sweep of our national history over bequeathed to President Herbert Hoover's administration. the period 1706-89, that history, showing how the triumph This economic decay is destroying our national defenses, at of 1789 was brought out of the catastrophe of 1688-1706, is a time that the worst strategic crisis of the twentieth century a most valuable inspiration for us today , that we might learn is building up fast. how we might again snatch victory from the jaws of a loom­ Our nation faced a crisis nearly as bad as this one, at the ing national catastrophe. time President George Washington was inaugurated. Our The danger is a real one. Mrs. Pamela Churchill Harri­ national debt was unpayable, our national credit in ruins, and man, a center of great power inside and outside the Demo­ our domestic production and commerce a shambles. Yet, cratic Party's national leadership today, is mobilizing her under the composition of government established by our forces, including Massachusetts' Senator Edward Kennedy, Constitution, the Washington ad�inistration implemented for the publicly avowed purpose of convening a constitution­ Treasury Secretary Alexander Hamilton's economic and al convention to rip up our Constitution, and to substitute a banking reforms; Washington bequeathed to his successor a system of governmentshe insists is modeled upon the British sound economy, a sound national c edit, growing prosperity,

EIR September 18, 1987 Books 35 and one of the finest quality of military forces in the world at that experiencehad proved that these objectives could not be that time. Admittedly, Jefferson and Madison frittered away realized without a "more perfect Union." our national credit, our economic development, and our na­ If there have been reasons to complain against our gov­ tional defense; but Presidents Monroe and John Quincy Ad­ ernment, and there have been many legitimate occasions to ams, returningto Hamilton's policies, restored us. curse that government out roundly for its follies, the fault There is embedded in that constitutional tradition of Pres­ does not lie in the Constitution. The fault lies in the voters. ' ident George Washington's administration, the means, under Ours is a representative system of government, which means our Constitution, and the precedent of Hamilton's reforms, that if the President or the Congress mismanage our affairs, to cope with the crises of economy, national credit, and debt it is themajority of the voters who are to blame for such bad facing us today, even to deal successfully with the biggest choices. If more among our voters troubled to discover the financialcrash in history. Without that constitutional system philosophy of government behind our Constitution, and of government, we would be almost helpless to deal with understood, the experience of history embodied in it, they those crises. Worse, under conditions of such severe, unre­ would choose more wisely, and then they and the Constitu­ solved crisis, Mrs. Harriman's parliamentary system would tion would both be better served. be but the opening of the door to some form of dictatorship, Otherwise, perhaps we should hold, instead of a conven­ probably a fascist system similar to the Mussolini model tion to change the Constitution, a national assembly to im­ which the late WinstonChurchill-her former father-in-Iaw­ provethe quality of the voters, so that they would not vote in admired so much, up until the end of 1938. the futurefor some of the kinds of mistakes they have elected One of the advantages of our Constitution is that it is so into office, so often, up to the present. brief,compared with the great length, and many self-contra­ It is that Constitution, embodying the experience of our dictoryfe aturesof other modem constitutions. Except for the precedingstruggle for a constitutional form of representative attached amendments, it begins with a Preamble, which states self-government, which built our republic to become, for­ clearly and simply the principles of universal natural law merly, the greatest, most envied nation on Earth. Upon that which definethe mission and philosophy incumbent upon all Constitution depends the continued ability of this nation of of our institutions and officials of government. The seven ours to survive. Articles are confined to establishing a system of representa­ tive self-government based on three branches, and nothing which is not essential to the process of forming such branches of government, their mutual authorities, and the relationship The story of those who paved the way for the of the electorate to this process. That is what makes it the American Revolution, long before the Decla­ bestand most durable Constitution ever adopted. ration of Independence: Massachusetts Puri­ The points of coincidence and difference between that tan Cotton Mather, Virginia's Governor Constitution and the 1776 Declaration of Independence are Alexander Spotswood, British satirist Jona­ to be stressed for proper understanding of the Constitution than Swift .... itself. That earlier Declaration based the existence of our inde­ pendent republic on the highest authority of law, universal natural law as known to WesternEuropean civilization since the writings of St. Augustine, principles richly reaffirmed by the Golden Renaissance centered in Italy. This is a universal How the law higher in authority than any constitution, any legislative act, any treaty , and any decision by any court. Nothing of this part of the Declaration of Independence Nation is overturnedby our Constitution. Rather, something crucial is added, reflectingthe bitter experiences of the arrangements America's Untold Story 1730-1 754 under the decentralized form of government given by the Articles of Confederation. The key passage is, "to form a Waby H. Grahams Wo Lowryn more perfect Union." Without that union, and without the centralized form of constitutional, representative self-gov­ Published by Executive Intelligence Review ernmentrequired to perfect that union, our nation would not Order from Benjamin Franklin Booksellers, 27 South have survived even to the beginningof the 19th century . King Street, Leesburg , VA 22075. $14.95 plus shipping: All that the Preamble of our Constitution claims as the $1 .50 for first copy, $.50 for additional copies. Bulk rates benefitsto be secured by our form of federal government, are available. the same as those of the Declaration of Independence, except

36 Books EIR September 18, 1987 A little Bicentennial detective story Anton Chaitkin looks into a new angle on Shays ' Rebellion, the up rising that convinced many American leaders that a permanent national government was needed.

This month the world observes the 200th anniversary of the ineffectiveleader of the poor, desperate debtors who attacked United States Constitution. In the spirit of celebration, we the courthouses of western Massachusetts. offer to our readers a little "detective story ," which gives a Twentieth-century historians have pooh-poohed George new slant on the dramatic events leading up to the drafting of Washington's suggestions of Tory intrigue behind the mob the Constitution. violence. It would be dangerous to allow the public to believe Following the 1783 victory in the Revolutionary War, in the possibility of "aristocrats" running such "democratic" theUnited States remained without an effective central gov­ movements. Revisionist historians have, after all, spenttoo ernment, and slid into chaos. Unable to cope with British many decades portraying the American Revolution as an trade war, the American economy collapsed. Mob violence Upper Class affair. against government facilities spread from Massachusetts to An interesting new book by Richard B. Morris, The many other states. Forging of the Union, 1781-1789, has given us a clue to the It appeared to General George Washington and other puzzle presented by Shays' Rebellion. In his Bicentennial Revolutionary leaders that the nation could lose its newly book Dr. Morris, who is Emeritus Professor of History at gained independence, and they pushed successfully for a Columbia University, has plowed through an enormous vol­ meeting of the states to form a permanent national govern­ ume of historical material, throwing out leads on many im­ ment. Washington and the nationalists warned that British portant topics for reader-researchers to follow up. As in his Tory efforts at counter-revolution might lie behind the mob prize-winning 1965 book The Peacemakers, Morris has not uprisings. paid too much attention to ideology (including that of the The 1786 Massachusetts civil disorder, which sparked participants !); but his torrent of information is presented riots throughout the country, is known to history as Shays' cheerfully and fearlessly. Rebellion. Captain Daniel Shays, a disgruntled former Rev­ Dr. Morris reminds his readers that the western Massa­ olutionary officer, was "immortalized" as the popular but chusetts rebellion did not start in 1786, but in 1782; and that

Samuel John Ely

DeaconJohn Ely Samuel Ely

� B�roft EnsignJohn I Ely = �Ely (2) lY (3) Edwln wealthy (7 Merchant, F anti-war acm..�t Rebellion" / "" D. Shays l spy (4) Justin Ely (5) Lucy Day = (6) Samuel Ely (7) Levi Ely (8) Luke Day (9) Edward Bancroft (1739-1817) (1723-94) (1744- 1821) �re I I (10) Heman Ely (11) Theodosia Ely = (12) Horace Day (1775-1852)I

Rite /Scottishleader (13) Heman Ely (1820-94) Source: Records of the Descendants of Nathaniel Ely, compiled by Heman Ely, Cleveland, 1885.

ElK September 18, 1987 Books 37 its instigator was not Daniel Shays, but one Samuel Ely . was Grand Treasurer of the Scottish Rite of Freemasonry; his These two troublesome facts about the origin of the father, Heman (no. 10) was to all appearances a British mil­ movement, it turns out, are universally acknowledged by itary intelligence officer operating in the Napoleonic wars . historians. "Troublesome"-because in 1782, unlike in 1786, So the genealogist is not forthcoming with information about the Americans were still at war with Britain. Everyone in the our mysterious Samuel Ely's ,life, besides the bare facts of revolted colonies at that time was either a Patriot, a Tory, or his parentage, his birth and death, and his two marriages. in hiding. A "people's uprising" against the Revolution, dur­ Other historians tell us that Samuel went to Yale, and the ing the Revolution, sounds pretty much like British guerrilla officialYale Dexter biography of alumni for the 1760s quotes warfare. Yale president Timothy Dwight about Samuel Ely, the rebel: And who was this Samuel Ely? Unfortunately, neither He was "voluble, vehement in address, and brazen-faced Professor Morris nor the other historians of the period provide in wickedness . . . under the accusation and proof of his any concrete biographical facts about the man, except that he crimes [Ely] would still wear a face of serenity, and make had been a preacher in Somers, Connecticut, and had come strong professions of piety. At the same time he declared across the border into Massachusetts after "factional quar­ himself, everywhere, the friend of the suffering and op­ rels . " pressed, and the champion of violated rights. Wherever he The name Ely rang a bell with this reporter; a family by went, he industriously awakened the jealousy of the humble that name was described in his book, Treason in America, as and ignorant. . . ." associated with British Tory politics in western Massachu­ Ely served as a wild fundamentalist preacher, beginning setts . Had a member of this gang been the one whose "rebel­ in 1767, in the town of Somers, Connecticut, just south of lion" pushed America to adopt its Constitution? A search the Ely family base in Springfield, Massachusetts. The "fac­ through older sources on this question proved fruitful, in­ tional quarrels" Professor Morris mentioned, was just that deed. Ely's congregation voted to ou�t him, as a similar aristocratic The Ely family genealogy published in 1885-a portion pro-irrationalist preacher, Jonathan Edwards, had been oust­ of which is shown in the accompanying illustration-com­ ed by an area congregation years before . After leading a bined with other historical material, has allowed for a positive secessionist grouping from congregation until 1773, Samuel identification ofSamuel Ely, the instigator of the uprising. Ely returnedto Massachusetts .. Historians agree that in 1782 Samuel Ely was arrested for We have established our "perpetrator"as being in a raging leading a riotous mob attack on a Massachusetts government fight against the rationalist perspective of the Americans re­ installation. Instead of being shot as a spy, he was freed from publicans. His outlook is seen as identical to the British jail by another mob. He seems to have been re-arrested, and corruptionists who scornedReason , �nd mocked Religion. was jailed in Boston. The clincher to the case, however, is in the Bancroft Was this man the same person as the Samuel Ely, number connection. (6) on the genealogical chart? If so, he is a member of a Our Samuel Ely's Aunt Mary (chart, no. 2) married one family whose head, Justin Ely (chart , no. 4) is the richest Edwin Bancroft (no. 3). Her husband soon died. But Mary merchant in Springfield, the representative of the area in the raised their two infant sons, Samuel Ely's two little cousins. Massachusetts legislature , and a massive property owner in Both of these became Tories; one of them, Edward Bancroft Massachusetts, New Hampshire and Maine. Justin Ely was (chart, no. 9), was one of the most famous spies in world later widely known as a factional leader of the pro-British history. party in Massachusetts during the War of 1812. So our rebel It was not until the mid-19th century, when the British Samuel would be a rich man's "poor man." Foreign Officereleased some relevant papers, that the world Historians also agree that a former army officer named learned of the treachery of this Bancroft, from the Ely family Luke Day was, four years later, a co-leader of the armed gang. Edward Bancroft vv�s a confidential secretary and es­ "rebellion" with Daniel Shays. pionage agent for Benjamin Franklin and the top leadership Well, our Samuel Ely is seen to have married a Lucy Day of the Americans in France during the American Revolution .. (no. 5); and Samuel's niece Theodosia (no. 11) married Luke But each week, Bancroft left a message in a hollow tree for Day's son Horace (no. 12)! The "Shays" rebellion actually his superiors in the British SecretService . continued under the leadership of the same instigating group; His payment was handsome. King George III personally the Days and the Elys are multiply connected in the area, in read his reports. His treachery was enormous: He routinely effect a single family. told the enemy about AmericaQ and allied ship movements, so that our ships could be sunk or captured. The clincher When his real side lost the war in 1783, Edward Bancroft We are getting closer to certainty about rebel leader Ely's is known to have returned to America, for an extended visit, identity. What we need above all is confirmationof his char­ before surprising everyone by permanently moving to Eng­ acter as a spook, a spy. land. We are not sure of his movements on that visit. Did he The Ely family genealogist, Heman Ely (chart, no. 13), go to Massachusetts, to help further the counter-revolution-

38 Books EIR September 18, 1987 ary "rebellion" simmering there? Certain facts make this a strong likelihood. Ely-Bancroft's boss, the official manager of agents in Europe for the British Secret Service, was one Paul Wen­ tworth, a relative of the last royal governorof New Hamp­ _Americans and the China Opium. Trade shire, Sir John Wentworth. Like Sir John, and like Justin In the Nineteenth Century by Charle. Ely, Paul Wentworth was a substantial New Hampshire land­ Clark.on Stene In this doctoral dissertation owner. based on wide research Into pr1mary resources, Stelle demonstrates that America's extensive particlpation In Royal GovernorJohn Wentworth fled from New Hamp­ the opium trade before 1858 was fo stered by the gov­ shire to Nova Scotia, the reception-ground for thousands of ernment and Involved leading merchants; also, that the Tory refugees from the American conflict; and he became decline In opium traffic by 1880was brought about by royal governorof Nova Scotia, ruling until 1808. economlc rather than moral fac tors. 160pp. $15. It was a matter of bitter experience, often complained of _The Tramc In Narcotics by H.J. An.uncer by American leaders in the years after the Revolution, that 6: WIlliam F. Tompkin8 The first fed eral Canada-still a British colony-served as the base for count­ Commlssloner of Narcotics In 1930, Anslinger consid­ less cross-border intrigues, including the close management ered the use of narcotics a crlme and a vice, rather of Indian uprisings. During the War of 1812, Wentworth's than a disease. He emphasized the need for interna­ successor inNova Scotia, Sir George Prevost, escalated from tional cooperation, compulsory hospitalization fo r the addict, and stringent penalties for traffickers. Pub­ his covertoperations to leading an army invasion across into lished In 1953, this well-documented study Includes New York. During the American Civil War, the Confederate statistics, glossary and Index. 372 pp. $30. Secret Service was headquartered in Canada. I During the "Shays Rebellion" of 1786, it was commonly Illt'ntion this ad and takt' 50(�'( ) ott !! remarked that "Canadians," including returned Tory refu­ gees, were operating in Massachusetts as anti-American AYER COMPANY PuBLISHERS, INC. guerrillas. If so, they would have had good professional management on the scene with Mr. Samuel Ely, his family 382 Main St. PO Box 958 and friends. But as to these details, we cannot yet be sure. In 8 8 these matters, there is still much mystery to be solved. \!a!:::_ � !��_ �O! _ :':;:00./

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ER AMERICAN SYSTEM CLASSICS YS ON GENERAL POLITICS, COMMERCE AND POLITICAL ECONOMY. Vol. II, II of The Works of Benjamin Franklin, edited by Jared Sparks. Reprint of 1836 ed. A· convenient collection of essays, rich in economic material of considerable originality. OF List $35.00 Special $27.50 ECONOMY. 3 volumes. Reprint of 1837 ed. ALEXANDER HAMILTON INDUSTRIAL AND COMMERCIAL CORRESPONDENCE OF ALEXANDER HAMILTON (List $87.50) Special $57.50 ANTICIPATING HIS REPORT ON MANUFACTURERS. Edited by Arthur H. Cole. Reprint THE SLAVE TRADE DOMES· of 1928 ed. Collection of Hamilton's correspondence with leading manufacturers, merchants, TIC AND FOREIGN. Why it ex­ government officials and others, in pursuit of information that would form the basis of his epochal ists and how it may be Report of Manufacturers. List $35.00 Special $27.50 extinguished. Reprint of 1853 ed. E. PESHINE SMITH (List $37.50) Special $27.50 A MANUAL OF POLITICALECONOMY. Reprint of 1853 ed. (from printing of 1877) A disciple of Carey, Smith produced this textbook to present "The American System of Political Economy-. List $27.50 Special $20.00 Order From:

Augustus M. Kelley, Publishers 1140 Broadway, Room 90 1, New York, NY 10001 SPECIAL PRICE OFFER EXPIRES OCTOBER 31, 1987. All sales final; no returns except for shipment damage or error. Add $1 for postage per k.boo (Payment by check or money order in U.S. dollars) Or Malkin: "Some of the gross debt figures are so stag­ gering as to be incomprehensible: $2 trillion owed by the Book Reviews federal government and rising; $ 1.5 trillion owed by Ameri­ can corporations; $1.5 trillion owed in home mortgages; $500 billion in installment credit; $300 billion owed in uncollec­ tible debts by Third World governmentsto American banks; and, for the first time since World War I, more owed to foreigners by everyone in America than they owe us .... By the end of 1986 the pool of debt in the United States had reached $7,87 1 ,700,000 ,OOO .OO-just short of a nice round eight trillion dollars or almosttwice the gross national prod­ uct." Both authors include a wealth ofanecdotes portrayingthe The debt crisis: miserable quality of this debt, and the likelihood of default on corporateju nk bonds, Third World paper, credit card debt, Need it destroy us? and so on, each in the irritating style of his own publication. Malkin includes a scenario modeled on Paul Erdman's finan­ by David Goldman cial-crash novels, set in 1989, on the day the Japanese stop buying U.S. Treasury securities. A fictionalizedDonald Re­ gan, back at his old firm, Merrill Lynch, bails out the Trea­ suryby marketing U.S. governmentdebt in the form of junk bonds, the high-interest paper used by corporate raiders to The National Debt financedebt-loaded takeovers on Wall Street. by Lawrence Malkin Neither has much idea why this miserable state of affairs Henry Holt and Co. ; New York, 1987 emerged, however. Malabre's first sentence betrays his own 309 pp. hardbound $17.. 95 bias: "To start, a few statistics. Nine of every ten U.S. teen­ agers have their own camera. Seven of every ten own a stereo. One in three has a television set. One in five has a personal phone. One in six has an automobile. One in eight Beyond Our Means has a computer ....The profusion of goods and services by Alfred L. Malabre, Jr. that most Americans enjoy in this century's closing years Random House; New York, 1987 reflects a very different sort of tendency: to live beyond our 175 pp. hardbound $17.95 means." It does not occur to the Wall Street Journal's chief eco­ Any fool can plainly see that America is sinking under a nomics reporterto ask how many teenagers relative to total crushing weight of debt. Two of them have published books population America has in the first place . The answer is, on the subject. Lawrence Malkin reportsfor Time magazine, fewer than during any previous period of American history; and Alfred L. Malabre, Jr. , edits economic news for the Wall the collapse of the American living standards during the past Street Journal. They attack the debt issue with the self-righ­ generation reflects itself, first, in the decline of our fertility teousness of Pollyannas turned prophets-of-doom, and rec­ rate , to less than replacement levels! ommend the worst of all possible reactions to the debt crisis, Malkin comments bitingly, "The Yuppies have done their namely, a general reduction in consumption. Both writers' sums and they know the answer, principal and interest: a publications contributed materially to the encroaching dis­ BMW costs less than a child." aster, by insisting that allwas well, when nothing was. How­ There are slightly over 150 million working-age Ameri­ ever, while Lawrence Malkin has done a reporter's day's cans. Of these, roughly a sixth sit on the social scrap-heap, work in assembling the relevant data, in such fashion to be i.e., on welfare,unemployment, or private charity. Another of use to the layman, Malabre has difficulty interrupting his sixth eams less than $4 an hour, in the retail and restaurant pompous encomia long enoughto present the facts. jobs thatprolif erated under thesupposed Carter-Reagan jobs None of the statistical data available in either book will boom, while high-paying industrial jobs disappeared. Frank­ surprise readers of EIR , which has devoted specialattention lin Roosevelt's famous "one-thirdof a nation" has reappeared to the emerging debt crisis. Malabre reports: "The magni­ in the 1980s, perhaps not as ill-clad and ill-fed as during the tudes are awesome. In all, as a nation, we are more than $7 1930s Depression, but unable to make ends meet. Malabre, trillion in debt. . . . It has nearly quadrupled since the mid- an over-age Yuppie, does not take a passing glance at the 1970s. It now approximates $35,000 for each man, woman, actual condition of the population. and child in the nation." His colleague from Time shows more sense. In a chapter

40 Books EIR September 18, 1987 entitled, "The Two-Tier Society: When Workers Take Ham­ likes to tell, of the real-estate operator who bought a series of burger Jobs," Malkin reports, "In 1985, an average 30-year­ Manhattan officebuildin gs, and, to boost their value, found­ old who bought a median-priced home would have had to ed the Chock Full O'Nuts coffee shop chain as an after­ pay 44% of his earnings in carrying charges. At that rate, he thought. The buildings' appreciation far exceeded the profits either bought a cheaper house, sent his wife out to work, or of the restaurants. both. In 1949, his father would have paid only 14% of his But that is the least interesting side of the story. Before salary for carrying charges.... considering debt, first look at the economy's capacity to "At mortgagerates of 10%, only about 30% of American produce a surplus, i.e., physical product in excess of physical families can afford an $85,000 house in the suburbs .... production costs, and the population's ability to absorb that "In 1973, the percentage of all women at work and the surplus in the form of household and industrial consumption percentageof working mothers was the same, 44%. By 1984, of physical goods, such that increased consumption increases 53% of all women worked, but 62% of all mothers did .... labor productivity. "The creation of new jobs has been the proudest boast of The crucialchange in the American economy since 1981 the Reagan administration and the Carteradministration be­ occurred in overseas trade . A fifth of the U.S. economy's fore it ....Probably nine out of ten of them were low-tech physical consumption comes net from abroad, the largest or no-tech, what are indelicately known to professional stat­ subsidy to any important economy since the Roman Empire . isticians as hamburger jobs .... America created an imperial debt system, purchasing the "In 1970, retail jobs paid a respectable two-thirds of goods of its Ibero-American debtors in 1983, for example, manufacturing wages. By 1985, they paid less than half, or for only 35% of their 1981 cost. Paper profits on real-estate an average of $9,220 a year, which is below the poverty speculation justifiedthe employment of service workers , and line." cut-price imports fed and clothed them. Malkin describes, at least, what is happening, but re­ Correspondingly, the American economy's capacity to mains at a loss to explain why. increase its debt, to maintain the existing debt bubble, de­ pends upon foreigners' willingness to continue lending Taxes and investment America $150 billion per year. Both Malkin and Malabre Among the leading industrial nations (excepting the U.K., mention the problem, without drawing the obvious conclu­ which is no longer what the Koreans would consider an sion: What must be radically reformed, is America's eco­ industrial nation), the United States has the least favorable nomic relationship to the rest of the world. tax treatment of industrial investment, and the worst credit Our imperial debt system has destroyed our markets in conditions for long-term capital investment. One startling Ibero-America and other developing nations. Our capital­ example: The investment bank S.O. Warburg recently dem­ goods industries need favored tax treatment (for rapid depre­ onstrated that adjusting Japanese corporate earningsto Amer­ ciation of new investments) and cheap long-term credit. They ican accounting standards would double the Japanese figure, also require a market for their products, and the great market because Japanese corporations depreciate their plant and of the future lies in the 4 billion inhabitants ofthe developing equipment so much faster. world. Why, indeed, have hamburger jobs taken over the labor It is well and good to speak of computerized assembly market? Malkin and Malabre both suggest that excess gov­ lines (as Malkin does in passing), and other technological ernment spending by Washington, going back to the Nixon improvements. But in our history, or the history of other era, puffed up the service sector. That makes no sense. Why nations, nothing short of a great national goal, requiring the services, and not renewal of the nation's plant and equip­ cooperative efforts of scientists and engineers, reaching down ment? Neither work mentions the impact of Jimmy Carter's to the learning-powers of skilled workers on the shop floor, insane emphasis on energy savings, as opposed to cheap has accomplished a general revolution in technology. EIR energy production (via nuclear power, among other efficient has emphasized the great national goals which require such a technologies) . mobilization: the Strategic Defense Initiative; colonization Less important than how Washington spent, is how of the Moon and Mars; a biological SDI to conquer AIDS; Washington taxed. The 1981 tax code virtuallyordered every and related work. high-income American to find a real-estate tax shelter, and Messrs. Malabre and Malkin should both be old enough produced a 25% oversupply of commercial real estate by to recall that the mobilization of economic forces to win the 1986. The 1986 tax code sought to lessen the federal budget Second World War, where a full 40% of the national product deficit,by imposing an immediate $20 billion in tax increases was diverted to defense, produced an immediate increase in on capital investment, through the rescission of the Invest­ living standards. Under conditions of national economic mo­ ment Tax Credit. bilization for these goals, why, then, should consumption Once you build the shopping center, you have to put fall? But belt-tightening is all either author has to recom­ something on it. The entire American economy during the mend. Let us tighten the belts of financial reporters , and put 1980s brought to mind an anecdote Lyndon H. LaRouche our national priorities on "no-budget" status, instead.

EIR September 18, 1987 Books 41 past two decades. The fluidflow experts who engineeredthe artificial heart came from NASA. Second-generation nuclear, solar, plas­ ma, and other potential energy technologies came from solv­ ing problems under the stringent constraints of space. The A losing Mars strategy high-temperaturematerials needed to increase the efficiency of many Earth-bound manufacturing processes, resulted from NASA-sponsored research. Portable electron-beamwelding by Marsha Freeman was developed by U.S. industry because the 33-foot-diame­ ter collar for the Saturn V rocket could not be welded with conventional technology. Estimates vary, but an average would put at a ratio of 10: I the pay-back to the economy from the money spent to Mars 1999 send men to the Moon. This benefit came from the creation by Brian O'Leary of whole new industriesand jobs , and the increase in produc­ Stackpole Books. Harrisburg. 1987 tivity in existing basic manufacturing. For a trip to Mars, both the technological challenge and the economic return, Brian O'Leary's recent addition to the fast-growing literature will be orders of magnitude greater. outlining possible manned missions to Mars, is not really a Vision, commitment, and long-range planning will get plan, but a tract which tries to "sell" such a mission, not on us to Mars, not a set of gimmicks to tryto convince a hesitant its own merits, but to meet some perceived political and Congress or a budget-weary White House. economic goals. More serious work needs to be done on developing the The political framework: "parallel U. S. and Soviet actual life support, propulsion, medical, and other technol­ manned missions to Mars before the tum of the century as ogies that will make the first human trip to Mars safe and part of a nuclear disarmament package." The "economic" productive. Less material needs to be published on fantastic justification: Water (yes, water) mined on the Martian moon "scenarios" and political agendas, by technologists and for­ Phobos, would be brought back to Earth or lunar orbit, to mer astronauts. provide fu el for near-Earth space operations. Why send people, since the Phobos mining could be more safely done robotically, assuming that was where we decided to get water from? "Only the Mars landing itself would re­ WhatMcN amara lost us quire joint U.S.-U.S.S.R. participation." O'Leary stresses throughout the book that the "spiritual" is more important than the technological in planning and by Anthony K. Wikrent executing such a mission, and left this reader with the uneasy sense that O'Leary would rather have a guru aboard , than experienced scientific and engineering personnel. No manned space mission, especially one as perilous as a trip to Mars, will ever be done on the basis of cost-benefit Carrying the Fire : An Astronaut's Journeys analysis. That method of justifying expenditures on space by Michael Collins Random House/Ballantine Books. New York. 1974 exploration nearly destroyed the Space Shuttle program, and 488 pages. paperbound. $1.95 in reality, there is nothing we can bring back from space that could possibly balance the cost of sending man there to get it. Does that mean there is no economic benefit? Quite the Collins-who piloted the Command Module on the first moon contrary. landing mission, Apollo II, 18 years ago-takes us step by Consider the following: If the Apollo program had been step through the intense trainingand preparation that he went a complete disaster within the terms that President Kennedy through to qualify as an astronaut, and then takes us along had set out, and we did not succeed in landing a man on the for the ride , describingin magnificentdetail his two voyages Moon and returning himsafely to Earth, the economic impact into space. of the effort would have been identical to that which resulted Collins is not interested in merely describing for us the from the success. wonders of spherical globs of water floating about in zero-G What the Apollo program created, in addition to scientific (although he does that). He wants to let us know what it was knowledge, pride, optimism, and other intangibles, was an like, struggling with a sextant to verify his spacecraft's p0- entire generation of scientists and engineers, who made many sition against that belched out by a recalcitrant on-board of the technological advances that are the hallmark of the computer. Without the benefit of Collins's book, a person

42 Books EIR September 18, 1987 would have had to be an employee of NASA or one of its . vendors, to have a real idea of how America's space program operated two decades ago.Watching a space launch on TV, Books Received with updates on the progress of the mission sandwiched be­ Mayday, The U-2 Affair, The Untold Story of the tween "Gun smoke " and "Bonanza, " simply cannot compare Greatest U.S.-U.S.S.R. Spy Scandal, by Michael R. with the wealth of information Collins provides. Beschloss. Harper and Row, New York, 1986, 494 As he characterizes the news media (which wanted only pages, $8.95 paperback. to know "How did it feel?" and "Weren't you scared? "): "It didn't seem right somehow for the press to have this morbid, Armed Truce, The Beginnings of the Cold War 1945- unhealthy, persistent, prodding, probing preoccupation with 1946, by Hugh Thomas.Atheneum Publishers, New the frills, when the silly bastards didn't even understand how York, 1987, 667 pages, $27.50 hardcover. the machines operated or what they accomplished." Federalism, The Founders' Design, by Raoul Ber­ It was definitely not as smooth as Walter Cronkite made ger, University of Oklahoma Press, Normand and Lon­ it sound. After describing the extraordinary contingency don, 1987, 223 pages, $16.95. planning, Collins quotes Jerry Lederer, safety chief of NASA Commander in Chief, Franklin Delano Roosevelt, at the time of Apollo 8 in 1968: A manned space flight His Lieutenants and Their War, by Eric Larrabee, Har­ involves "risks of great magnitude and probably risks that per and Row, New York, 1987, 723 pages, $25.00 have not been foreseen. Apollo has parts and 8 5,600,000 hardcover. one and one half million systems, subsystems, and assem­ blies.Even if all functioned with 99.9% reliability, we could Mortal Splendor, the American Empire in Transition, expect 5,600 defects " during a flight. by Walter Russell Mead, Houghton Mifflin, Boston, The key sentence in Carrying the Fire is: "One nice thing 1987, 381 pages, $19.95 hardcover. about Apollo was that no one ever told us that we were The Saudis, Inside the Desert Kingdom, by Sandra running the price up too high." Collins and the entire NASA Mackey, Houghton Mifflin, Boston, 1987, 433 pages, team received the level of national support that they needed, $19.95 hardcover. and deserved.Would that the same could be said of Ameri­ ca's space program today: Six astronauts and our firstteacher in space lost their lives because politicians and cost-account­ ing bureaucrats forced NASA, over the years, to skimp and save, and make any number of trade-offs between safety, reliability, and cost. The result is that today, America has lost its incontestable lead in space of 20 years ago to the Soviets. Collins hits at one of the major perpetrators of the cost­ accounting mentality that has produced this disaster: the mal­ thusian fanatic Robert S. McNamara, Kennedy's defense secretary. "The Air Force should be able to keep a stable prototype aircraft flying, winnowing, and pruning, and final­ ly selecting only the best for production, but given the McNamaras of this world, the system is not allowed to work that way. McNamara decreed that the F- l ll would be a great success before the test program began; in fact, he decreed that it would be everyplane for every purpose, sort of like building a car to drive Daddy to work, or to handle Mom's groceries, and to mix concrete on weekends, except in May when it would be busy practicing for the Indianapolis 500." This fine sense of irony Collins is able to retain through­ out; the only disagreeable part of his book comes near the end, where he feels compelled to acknowledge the "new consciousness " of the counterculture, and speculate about mission 51 -A how nice it would be if the world's leaders could view earth's Order with check or m.o. for (U.S.) $32. fragile orb from 100,000 miles away.Other than this tedious HALCYON FILMS AND VIDEO ending, Collins's narrative moves right along, as it unfolds 110 BEACH RD. BOX 15 KINGS POINT, N.Y. for us the marvels of man's technology, as applied to space 11024 m.c. or visa accepted SevenDays in Space is narrated. in part. by Rick Hauck. the scheduled commander of the exploration. next Space Shuttle mission. I Satisfaction guaranteed or money refunded. EIR September 18, 1987 Books 43 Was hington slides toward pact Moscow by Konstantin withGeorge

The climactic phase of U.S.-So viet negotiations for a "global cal views on an INF treaty. Reagan stated that there were double zero option" will begin with Soviet Foreign Minister "grounds for great optimism" respecting an INF agreement Eduard Shevardnadze's arrival in Washington on Sept. 15. and a summit; "the end of November" would be the best time Shevardnadze will be holding three days of talks with Sec­ for the meeting with General Secretary Mikhail Gorbachov, retary of State George Shultz, toward agreement on elimi­ he added. nating intermediate range nuclear missiles, and is then to be Reagan did say that an INF "agreement has not yet been received by President Reagan. reached on some points," adding quickly, "But, we're work­ Reagan has evidently deluded himself into believing that ing hard at it, and hope to reach an agreement." through such an agreement, he will secure "peace in our The same optimism was conveyed on Sept. 10 in Brussels time." by White House special emissary Paul Nitze. Nitze was dis­ The Intermediate Nuclear Force (INF) accord is a veri­ patched to brief the NATO allies on the state of the U.S.­ table "Munich II." It would terminate the U.S. nuclear pres­ Soviet talks, and reported that, as far as an INF treaty was ence in WesternEurope , and thus leave the continent prey to concerned, "Really, all the big problems have been re­ Soviet intimidation and blackmail. solved." Complementing the drive toward the INF agreement are Soviet demands concerning the 72 West German Persh­ anarray ofU.S. -So viet "regional affaiFs" talks between State ing-IA missiles were only "an artificial problem," according Department and Soviet foreign ministry officials, and the to Nitz, "resolved" by Chancellor Helmut Kohl's Sept. 2 elaborate Soviet glasnost campaign, strategic deception of declaration that, in the event of a U.S.-Soviet agreement, the West to the effect that a "liberalization" is under way in Germany would proceed to eliminate the missiles. the U.S.S.R. Yet, the Pershing-lAs had no more been part of the Ge­ neva negotiations than the French or British nuclear forces. Pre-summit euphoria in Washington The Soviets, buoyed by the Reagan administration's readi­ Reagan's pre-summit euphoria was apparent during a ness for concessions, raised .demands against Germany's Sept. 10 White House banquet in honor of Ingvar Carlsson, missiles only at the last minute. Olof Palme' s successor as Social Democratic prime minister Kohl's capitulation came on the eve of the visit of the of neutral Sweden. It is the firststate visit to Washington by Soviets' East German satrap, Erich Honecker, and was clear­ a Swedish prime minister since 1961. ly coordinated in advance with the Reagan administration. At the banquet, the President of the United States and a The State Department immediately followed Kohl's decla­ leader of the pro-Soviet Social Democracy expressed identi- ration with an announcement that, if West Germanyscrapped

44 International ElK September 18, 1987 the missiles, the United States would remove their nuclear Minister Igor Rogachev . Sigur on Sept. 13 was scheduled to warheads from German soil. proceed to South Korea, currently in the throes of a Philip­ Said Nitze in his press conference, "A lot of detail was pine-style destabilization co-sponsored by the Soviets and leftto be resolved," but the American and Soviet delegations the U.S. State Department. were already working on a "joint draft text" for an INF agree­ • From Sept. 7-10, Assistant Secretary of State Chester ment. A simultaneous press conference in Washington D.C. Crocker was in the Angolan capital of Luanda for talks aimed by Rozanne Ridgway, assistant secretary of state for Euro­ at a superpower deal on Namibia. peanaff airs, exuded the same optimism. • On Sept. 10, Soviet Deputy Foreign Minister Vladimir Petrovsky arrived in Bonn for talks with West German For­ The regional crisis management game eign Minister Hans Dietrich Genscher and leaders of the pro­ Shevardnadze's trip to Washington has been preceded by Soviet Social Democrats. Petrovsky's arrival, right in the an array of American-Russian talks at the deputy foreign middle of the Honecker visit, received almost no mention in minister (assistant secretary of state) level, discussing re­ German news media. gional situations from the Near East to the Far East. These Petrovsky had spent most of August in the United States, quiet, seemingly innocuous meetings, receiving almost no both at the United Nations, and at the huge Soviet-American press notice, have been combined with the private "interna­ gathering in Chatauqua, New York. At both locations, he tional diplomacy" of Soviet assets in the West such as Ar­ held extensive meetings with American officialsand leading mand Hammer, to form the core of an imperial effort to businessmen. redrawthe world map in Moscow's favor. The world has now witnessed the media spectacle of the Let them eat glasnost Honecker visit to West Germany. Nearly every political fig­ The slide toward "Munich II" is being accompanied by urein West Germany outdid himself in groveling before the massive Soviet propaganda concerningthe deception known Soviet satrap. Very few seem to have observed that Honeck­ as glasnost. designed to allow Western leaders to sugarcoat er's way was prepared by the private diplomatic travels of their New Yalta capitulations. The glasnost offensive in the Armand Hammer. The 89-year-old friend of every Soviet Soviet media is centered around a campaign to rehabilitate leader since Lenin spentthe end of August in Moscow, then the two leading opponents whom Stalin had murdered, Ni­ proceeded to Bonn for a Sept. 3 meeting with Kohl, and the kolai Bukharin and Leon Trotsky. next day was in East Berlin for a lengthy meeting with Ho­ If anyone wishes to review the Soviet media of 1945, necker. Stalin's media, one will find a glasnost exceeding by farthe According to the Sept. 10 Washington Post, "administra­ "democratization" rhetoric of Gorbachov. How many times tion sources" have stated that Shultz and Shevardnadze will did the Soviet press then print and reprint Stalin's promises sign an agreement to set up "nuclear risk reduction centers" that the countries of EasternEurope would be based on "free in Washington and Moscow, to prevent "accidental nuclear elections," with "all parties" allowed, etc.-all to make the war." The intriguing point about this otherwise trivial disclo­ original Yalta palatable. sure is that the agreement was worked out in May in Gene­ What better way for Gorbachov, who bears resemblance va-another secret American-Soviet meeting, this time to the young Stalin who directed a massive pre-warmilitary worked out by Richard Perle, then still assistant secretary of build-up, to fool the West than to embark on an "anti-Stalin" defense. campaign, rehabilitating Stalin's purge victims. One wonders what will be revealed afew months from According to the French journalist, Alexander Adler, now concerningthe currentround of "regional matters" talks. Gorbachov is planning to officially rehabilitate both Bukhar­ The scope of those talks is considerable, as revealed by a in and Trotsky for the "Revolution's" 70th anniversary. look at the calendar for the firsttwo weeks of September. • The Soviet government newspaper Izvestia recently • Two days of meetings between Assistant of Secretary hailed Trotsky as a "hero and martyr of the Revolution." of State Edward Djerejian and Soviet Deputy Foreign Min­ • The party paper Pravda (without mentioning their con­ ister Yuri Alexeyev Sept. 10 and 11 in Geneva, discussed the nections to Trotsky) honored two leading Trotskyites exe­ Near East, the Gulf, and Afghanistan. On the Soviet side, cuted in 1937. the talks followed several days of discussions in Moscow • Vestnik. the news bulletin of the foreign ministry, has between theSoviets and a visiting delegation from the Iranian just published an article describing Trotsky as the first chief foreign ministry, as well as a visit from Iraqi Foreign Minister of Soviet diplomacy, who "conducted himself with honor." Tariq Aziz, and a delegation from the Arab League. • Trotsky'S grandson, living in Mexico, has been grant­ • September talks in Moscow concerning Far East re­ ed a visa to attend the Nov. 7 anniversary celebrations . gional affairs feature Assistant Secretary of State for Far • Mexican and other Trotskyites are expected to receive Eastern Affairs Gaston Sigur and Soviet Deputy Foreign invitations to the anniversary celebrations.

EIR September 18, 1987 International 45 These latest signals on "left opposition" leader Trotsky were preceded by a drive to rehabilitate "right opposition" leader Bukharin. • On July 16, the U.S.S.R. Supreme Court officially rehabilitated the leading Bukharinite agrarian economists, such as Nicholas Kondratyev, who were executed during the Stalin purges. • Pravda of Aug. 9 carried a lengthy article by historian Viktor Danilov, which carried the arguments used by Buk­ arm harin in 1930 to attack the Stalin's forced collectivization of the peasants. Arrest of Italian s • On Sept. 9, the Moscow News ran an article by Yuri Afanasyev, the new director of the U.S.S.R. National Ar­ brocksy Umberto Pascali We st Europe's chives, which stated that the 1938 trial of Bukharin was "baseless" and, "One need not be a professional historian, but only a human being, to say that Bukharin had never been "This is the biggest scandal since Irangate. . . . It is as though a political criminal." Rockefeller had been arrested!" commented an American The glasnost propaganda is also focused on conveying expertimmediately after the Italian police arrested 34 people the image that the Soviet Union is now opening up its military (11 are still being sought), including one from the top eche­ facilities for American "inspection." This farce reached its lons of the Italian Establishment, the industrialist Ferdinando peak on Sept. 9 when three Democratic members of the Borletti and his son Giovanni. The accused are charged with House of Representatives were taken on a tour of the Kras­ having illegally sold weapons to Iran-the weapons that the noyarsk ABM phased array radar facility to "prove" to them Khomeiniacs are now using in their war in the Persian Gulf. that it constituted no violation of the ABM Treaty. The con­ The illegal weaponstraffic was part of a scheme involving gressmen, who could not tell the difference between an ABM prominent Sicilian mafiosi based in Trapani, acting as inter­ radar facility and the proverbial "hole in the wall," were awed mediaries with Teheran. The weapons and explosives were by the red carpet treatment. They dutifully returned to the paid for with drugs and with "assistance" to terrorists oper­ United States to issue statements casting doubt on the Pen­ ating in Italy, West Germany, and elsewhere in Europe . tagon ' s charges that Krasnoyarsk was designed to service "Our work is only beginning," declared Prosecutor Au­ anti-ballistic missile systems-of which there is no doubt gusto Lama. "We will tum half of Europe upside down." whatsover. What is emerging in Italy is part of a broader European Given such results, one can easily imagine the delighted picture, including similar and related scandals in Sweden, Soviet hosts more than willing to extend glasnost to other Belgium, Austria, West Germany, and England. Several military facilities, opening these up with much fanfare for sources in Italy are stressing that the "rotten business" came the inspection of other U.S. congressional delegations. to light after U.S. National Security Adviser Frank Carlucci Last month, quietly, another such glasnost affair was visited Italy and several other European countries, to discuss staged, when a U.S. Pentagon team was allowed to fly into their participation in the military operations in the Persian the U.S.S.R. and observe Soviet military maneuvers in the Gulf. CarpathianMili tary District, following Pentagon statements The arrests are a result of the investigations which began that the maneuvers were in violation of the Helsinki "confi­ last December, when Abu Nidal-controlled terrorists bombed dence building" agreements. the Rome airport, killing 13 people; they occurred one day If it means creating the atmosphere to get the American after the Italian Council of Ministers decided to send a con­ nuclear presence out of Europe, Moscow will gladly stage tingent of naval ships to the Gulf, in support of the U.S. more such shows, a trivial price to pay for Munich II. deployment there. The Council's decision put an abrupt end The main reason for such otherwise farcical glasnost to the strenuous opposition of Foreign Minister Giulio An­ functions, is the Western media's desire to accommodate dreotti, who is not only an advocate of "friendly" relations Moscow's description of Gorbachov's image. The rehabili­ with Iran, Syria, and Libya, but is also the top political tation of Trotsky and Bukharin provides a case in point. On protectorof the Italian military industry. Sept. 10, a day on which so much of the Western European media was engaged in "rehabilitation" coverage, the Soviet The Borletti dynasty media was granting the most space to a theme that does not By far the most important person arrested, Ferdinando quite square with glasnost-pages of articles on the occasion Borletti, is himself close to Andreotti. Borletti is president of of the 110th birthday of Felix Dzerzhinsky, "Iron Felix," to Valsella, a defense firm located near Milan, which had just use Pravda's phrase, the bloody-handed founder of the Cheka, received a commission from Teheran, to provide Khomeini predecessor of the KGB . with 2.5 million mines! Fifty percentof Valsella is owned by

46 International EIR September 18, 1987 followed by the Boustany. The modus operandi is the same. High-level and verysecretive terroristcontrollers have estab­ lished their network in Beirut, Tripoli, and several Mediter­ ranean islands. This "structure" takes care of logistics and has established an alliance with a certain mafia clan, based in Trapani. Felice Corrao and Guido Coduri, two top mafiosi of this clan, were among the 34 people arrested on Sept. 5. The Trapani clan acted as intermediaries and were paid in drugs; in exchange, they were getting a percentage of the commissions and additional money for the help they gave to sIIlugglers terrorist groups. 'Irangate' apparatus

"We will tum ha Europ e ups ide a subsidiaryof FIAT, the internationalcorporation owned by lfof the Trilateral Commission's Gianni Agnelli. Borletti is a down, " says the prosecutor who member of the Board of FIAT, besides being the chairman has arrested some oj the highest­ of the Board of the most authoritative Italian financial news­ level op eratives in the Italian paper, Il Sole 24 Ore. The Borletti family is actually more important than the illegal arms traffic. Even the Agnellis, who married into nobility, having reached their Jriends oj Fo reig n Minister Andreotti status (and their title of nobility, Count of Arosio) under the have suddenlyJound themselves Fascist regime, which the family fully supported. The Bor­ lettis became famous with the creation of the "La Rinascente" behind bars. Some oj Europ e's most supermarket chain, which was inaugurated by the firstduce , evil oligarchs are beginning to Je ar the Universal Fascist Gabriele D' Annunzio. that the hour ofrec koning is near. Target: President Reagan Shortlybefore the arrest of Borletti, in the southernItalian portof Bari, the police seized a Lebanese ship, the Boustany One, which was transportinga cargo of weapons destined for Now the investigations are proceeding full tilt, mostly Abu Nidal's commandos in Europe. According to a thick thanks to the young prosecutor Lama, who, in the words of package of documentation that the magistracy seized-some his chief prosecutors, pursued the investigations despite pres­ are comparing it to the revelations and dossiers which began sure from many sides, "including fromour own milieu," i.e. , the Propaganda-2 scandal some years ago-the Boustany from inside the Magistracy itself. The Trapani mafia clan has was supposed to have arrived in Italy around two months already been found responsible for the assassinations of sev­ ago, along with fiveother ships. Their mission was to deliver eral magistrates. New "angles" are now being opened. Be­ weapons, and possibly trained terrorists who were planning sides the obvious Iran track, there is direct Syrian involve­ an assault on the Venice summit of the industrialized coun­ ment, at the level of the secret service of that country. tries. It is worthy of note that the U. S. ambassador in Rome, The principal target of the Venice raid was President Maxwell Rabb, knew about the Italian traffic with Iran. When Ronald Reagan. Aboard the ship there was a very advanced he was recently asked by a Manhattan court whether he knew U.S.-made anti-helicopter missile, which was to be used about the involvement of the Italian governmentin delivering against the President, who, for security reasons, always trav­ arms to Iran, he replied: "My information was that they had eled by helicopter during the summit. The "Venice massacre" been very, very generous in this business." never tookplace , probably because of the strict security mea­ The arms suppliers to Iran, a far-flung group which co­ suresin place; but now the time for "revenge" had come. The incides with the pro-Gorbachov factions in Europe and the weapons transported by the Boustany, many of them pro­ "secret government" in the United States, are beginning to duced by the Borletti-FIAT firm Valsella, were to be used fear that the moment of reckoning has come. Italy has just for a European-wideresurgence of terrorism. decided to send four military ships to the Gulf. German Aboardthe Boustany were also found 4.4 pounds of her­ Foreign Minister Hans-Dietrich Genscher is sticking to his oin and 33 pounds of hashish. The magistrates investigating pro-Iranian line. According to intelligence sources, the Ital­ the Rome airport massacre have evidence showing that the ian revelations can lead to the heart of the Hamburg group of arms used at that time were smuggled along the same route oligarchs that is the power behind Genscher.

EIR September 18, 1987 International 47 put the noose around his own neck by making his economic policies the central theme of the election. While his Thatch­ erite austerity policies undoubtedly have been popular in most banking circles, they have never been the source of any enthusiasm in the Danish population. Very tough austerity packages have made the economic crisis very palpable for the population. Despite this, Schliiter copied the worst follies of President Reagan by campaigning on the theme of the Real issues avoided "Schliiter upswing." But worst of all was the lack of reality in the election in Danish elections campaign. The present unstable and incalculable situation in the Danish parliament is the natural consequence of a political by Poul Rasmussen debate, in which none of the 16 partiesrunning in the election addressed the fundamental problems of the Danish economy, the danger posed by the AIDS epidemic, the international With the results of the Danish parliamentry elections on Sept. strategic crisis, or even the question of the national defense. 8, conservative Prime Minister Poul Schliiter has provided With its ship-building industry almost gone and other heavy proof that in politics it is possible to shoot oneself in both feet industries hanging on a cliff, Denmark's economy is rapidly with just one shot. On Aug. 18, Schliiter had launched what heading toward a blow-out. he thought was a shrewd Machiavellian move, by announc­ ing that parliamentary elections would be held on Sept. 8. Crisis in agriculture, AIDS, defense This was two or three months earlier than expected, and the The spark that will ignite the bomb is the agricultural announcement left only three weeks for the election cam­ crisis. The Danish farm sector supplies the country with more paign. By this move, the prime minister had hoped to catch than one-quarterof its export income. Ninety-thousand farm the opposition partiesoff guard , giving his four-party coali­ families produce food for 15 million people, and with only 5 tion governmenta free ride to a resounding victory. On Sept. million inhabitants, two-thirds of the production is exported. 9, Schliiter found himself with two bloody feet and an un­ In recent years, the Danish farmsector has been severely hit solvable mess on his hands. by the austerity policies dictated by the European Community in Brussels, and on top of this, an insane campaign in the What went wrong? Danish media is portrayingthe farmers as the worst environ­ The Sept. 8 elections distributed the 179 seats in the mental pollutors in the world. Danish Folketing (parliament) among nine different parties, Danish farmers are faced with the worst debt crisis in in such a way, that the formation of any stable government history. Last year, their average net income was negative, became an absolute impossibility. The four conservative­ and within one year, somewhere between 5,000 and 10,000 liberal parties (Konservative Folkeparti, Venstre , Centrum­ farms will face foreclosure. If this crisis is not reversed, the Demokraterne, Kristeligt Folkeparti) that had formed the bottom will fall out of the Danish economy. With a trade coalition government led by Schliiter, collectively lost 7 of deficit of almost $5 billion last year, Denmark could not their 77 seats. Worst hit was Schliiter's own Conservative afford to lose its yearly $6 billion in net agricultural export Party, which lost 4 of its 42 seats. income. The small liberal party , Radikale Venstre , not part of the Not even the traditional farm party, Venstre , dared to coalition, but still supporting the government, increased its bring up the farm crisis in any constructive form , and they representation from 10 to 11 seats, but this was not enough paid dearly for that. Venstre lost 3 of its 22 seats in the to give a new Schliitergovernment the 90 seats needed for a parliament. majority. Schliiter's worst possible nightmare had come true: The other side of the economic crisis, the hideous AIDS He would have to form a minority coalition goverment de­ epidemic, was not addressed either. With 192 officially di­ pendent upon the support of two very different parties, the agnosed cases of AIDS, and an estimated 20,000 infected in liberal Radikale Venstreand the right-wing Fremskridtspar­ a population of only 5 million, Denmark is the worst hit tiet, led by the incalculable Mogens Glistrup. It was exactly country in all of Europe. Recently, the municipal health the same situation that last year brought down the Norwegian administration of Copenhagen, where the AIDS rate is one conservative governmentof Kaare Willoch. of the worst in Europe, announced that by 1991, the entirety Schliiterhas nobody but himselfto blame for the debacle. of the health budget of the city would be spent on treating First, he was wrong to believe the soothsayers of the public AIDS patients. But still, none of the parties took this problem opinion polls, who told him that he would win a comfortable on. majority at exactly this time of the year. Second, Schliiter The unfolding world strategic crisis simply did not exist

48 International EIR September 18, 1987 during the election campaign. Even the ongoing debate on the Danish defense budget was nicely packed away during the three weeks of campaigning. Therefore, it should surprise Prime Minister Schluter thought he nobody, that the new parliament reflects an attitude on de­ was being clever, when he called fense exactly the opposite to that of the Danish population. early elections. But now he has a In recent years, opinion polls have shown that over 70% of Danes support their country's membership in the NATO al­ bigger mess on his hands than he liance. ever did bfifore. Despite this, a solid majority in the newly elected parlia­ ment is either de facto or openly against NATO. These are the three Socialist opposition parties and the Radikale Venstre. The Danish Social Democratic Party is nominally pro-NATO, but since 1982, its policies have been contrary to those of Nobody believes that Poul Schluter's new coalition gov­ NATO. Radikale Venstre has always been against Danish ernmentwill last for more than a few months. The firstma jor membership in NATO, and so has the left-wing Socialistisk hurdle will be the parliamentary vote on the national budget Folkeparti, the major winner in the Sept. 8. elections. in October. It is doubtful that the government will survive The new party in the parliament, the left-wing Faelles even that. Kurs, led by the rabble-rousing chairman of the Danish Sea­ The one bright spot in the picture is the appointment of a men's Union, Preben Moeller Hansen (famous for his role in new health minister, Agnete Laustsen. She is a long-standing the ongoing disclosures of Denmark's link to the Iran-Contra and outspoken opponent of the Copenhagen drug haven, scandal), shows its Communist roots in a rabid anti-NATO Christiania. In her first interview to Danish Radio following policy. her appointment, Minister Laustsen said that some form of These three parties command 96 seats, a comfortable public registration of AIDS carriers must become a reality. majority in the parliament, which means a dangerous weak­ She will have to move fast to implement her program, ening of the Danish contribution to NATO. before the government falls.

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EIR September 18, 1987 International 49 Report from Rome by Antonio Gaspari

The Green menace derous Red Brigades, has resumed its Concluding a two-part report on the upcoming Italian nuclear activities in conjunction with anti-nu­ referendum, and the violent fo rees behind it. clear demonstrations. The new parliamentarians elected in June on the Green slates are all ex­ perts in "protest demonstrations. " Many of them come out of the ranks On Nov . 8-9, 45 million Italians exports abroad , for example to Egypt of the dissolved Maoist group, Con­ will go to the polls to vote on five and Latin America. The Greens and tinuing Struggle, an organization not­ referenda demanded by the Radical the Radicals also aim at cutting all nu­ ed for having given their start to many Party: They will have to write "yes" clear power exports, with a vote on individuals who laterjoined the "armed or "no" on five different issues, to be whether the state electricity company struggle. " represented by a card of different ENEL should participate in nuclear Take the case of Hon. Sergio An­ colors: "green"for the civilian respon­ poweractivities abroad . dreis. A conscientious objector, he did sibility of judges, "blue" for the inves­ The Green Party deputies are 15 months in military prison in Gaeta, tigative commission, "grey" for the pressing the Italian Communist Party lived four years in a commune in Ber­ location of nuclear powerplants , "yel­ to join their campaign for the "total lin, and played a role in the publica­ low" for allocations to regional gov­ abolition" of nuclear power, instead tion of a military map of all the nuclear ernments which host nuclear power of choosing a more diplomatic "grad­ and non-nuclear NATO bases in Italy . plants, and "orange" for the partici­ ual renunciation," due to the stiff op­ While under indictment in the Lom­ pation of ENEL, the state electricity position to the Green line from indus­ bardy region for having distributed to company, in nuclear energy activities trial workers and farmers , who are the press the secret list of risk indus­ abroad . tending to leave the Communist Party tries on the region's territory, he served The referendum is "abrogative ," over its new "green" and anti-indus­ as a consultant to Unesco and the which means that with their "yes" or trial look. World Council of Churches. "no" the voters are to cancel or con­ We will now take a look at the Another example is Michele Boa­ firm the five cited bills. The attention insane and violent ideology which has to , already a "Continuing Struggle" of the press, however, is concentrated drawn the "peace-loving" Greenies member in 1968 , with a long past of on the nuclear power issue, since it into the terroristorbit. demonstrations attempting to block­ was to abolish nuclear power in Italy The setting afire of a 70 ton cool­ ade various factories. Considered too and prevent the constru4tion of new ing motor on its way to the Montalto much of a "loose cannon on deck " nuclear plants, that the Radical Party di Castro nuclear plant, in August, was and too "workerist ," he left Continu­ gathered 1 million signatures to have only the latest in a series of violent ing Struggle in 1972 to dedicate him­ the referendum, and the Green Party incidents and threats coming from cif... self to organizing the Green slate . ran for the first time in the last national cles that previously spawned terrorist The last question which many po­ elections in June. groups. litical analysts are trying to answer is, Since Italy has only one function­ Prospero Gallinari , Bruno Segh­ "But who financesthe Greens?" In the ing nuclear plant, in Caorso(near Tur­ etti, and Francesco LoBianco, "unre­ United States a recent investigation in), the main purpose of the referen­ constructed" members of the Red Bri­ showed tl¥lt the biggest financiers of dum is to stop the so-called National gades, already in spring 1986 had put the ecologist organizations are the Energy Plan (Piano Energetico Na­ out a recruitment document aimed at multinational oil companies. In Italy, zionale, PEN) which foresees build­ the anti-nuclear groups. ENI (the national oil company) gave ing 10 more nuclearplants . The Rad­ In his 1984 and 1985 reports on the World Wildlife Fund 400 million ical Party , the Communist Party , and the intelligence services, ex-Prime liras at the last ecologist convention in the Green Party propose to accom­ Minister Bettino Craxi exposed the Assisi, and food cartel tycoon Raul plish this by cutting funds to regional flanking moves of the "armed party" Gardini, one of the world's wealthiest governments which accept construc­ conducted by pacifist and anti-nuclear men, stated on national TV that he had tion of such plants. organizations. "Worker Autonomy," voted for the Green Party . Gardini is Italy does have a nuclear energy exposed by the courts in the late 1970s now campaigning to convert agricul­ capability, which is mostly aimed at as the above-ground arm of the mur- tural grain production to ethanol .

50 International EIR September 18, 1987 Report from Bonn by Rainer Apel

Why was Honecker sent to Bonn? missiles and troops on West German .. The visit o/ the East German leader is sparking illusions about territory, and the Germans, as a non­ the fu ture of Germany. nuclear and non-SDI power, could al­ ways be kept hostage of the Red Ar­ my's war machine. A door to this grim future has been opened in Bonn during the Honecker T he German Question, the unre­ meaning, as he was the one who com­ visit. The final statement of his talks solved problem of the partitioned na­ manded, on East German Politburo with the West German governmentin­ tion, has been the weak flank of all and Soviet directi ves, the construction cluded the mutual recognition of the policy in Germany afterthe war. It has of the Berlin Wall on Aug. 13, 1961. "zero option" as desirable for a gen­ always been a strong lever for the as a symbol of the Kremlin' s claim on eral process of denuclearization in Eu­ Kremlin to influence and intimidate East Germany. rope . It referred to the Jan. 8. 1985, the West Germans. Moscow's policy As for the aforementioned second joint statement "respecting a strict on Germanyhas two primeob jectives: aim of Moscow' s policy on Germany, interpretation of the 1972 ABM treaty" first, to consolidate the Kremlin's grab the Honecker visit to Bonn opened the between U.S. Secretary of State over East Germany and to have the door as well. The Bonn government George Shultz and Soviet Foreign West Germans accept that; second, to gave formal recognition to the Ger­ Minister Andrei Gromyko, as a gen­ lure the West Germans into the Soviet man Democratic RepUblic. hoping that eral point of reference for both Ger­ sphere of power, by creating the illu­ by meeting this old demand of Mos­ man governments. sion that this might help Germany to cow's, the Kremlin leaders could be A significant obstacle to this is bereunified . warmed up for official talks on the West Germany's current involvement The first aim of Soviet policy on reunification of Germany. in the U.S. SDI effort . Germanyhas been achievedby the visit Aspects of this were discussed be­ The concluding statement on the of East German party boss Erich Ho­ tween President von Weizsacker and Bonn talks between Honecker and necker to West Germany (Sept . 7-1 1). Soviet leader Mikhail Gorbachov at Kohl speaks of "j oint initiatives" of He is the first East German leader to the Kremlin on July 7. When Weiz­ both Germanies for arms control, and be received as a state guest in Bonn, sacker brought up the German Ques­ of "high-level consultations on a reg­ with formal diplomatic protocol, and tion at that meeting, Gorbachov re­ ular basis." There will also be more for the first time, a West German army minded him that Josef Stalin once of­ exchange of scientific and technolog­ band played the tune of the East Ger­ fered reunification to the Germans in ical studies between the two German­ man anthem. March 1952, on "very favorable ies, including aspects of nuclear re­ Although in the context of the terms," but that the West German actor technology, and more exchange 1970s "detente," the Bonn govern­ chancellor-then Konrad Aden­ on the cultural and political level. ment already signed several treaties auer-turnedthe offer down. Furthermore, regular contact will with the East German regime, its for­ Adenauer. a strong proponent of a be established between the parlia­ mal recognition was always carefully German (reunified or not) alliance with ments of both Germanies, and regular avoided. With Honecker receiving a the West, had good reason to tum Sta­ contact between the political parties of formal welcome in Bonn, his regime lin's "offer" down. Stalin wanted a either side as well. The groundwork has been recognized, and thus the So­ neutralized, largely demilitarized for this was laid by the three years of viet claim on East Germany. The rec­ Germany, which was no threat to the joint work between the ideology com­ ognition was openly announced by Red Army and could be tolerated as a missions of the East German Social­ West Germany's Chancellor Helmut reunified territory , on the condition it ists and the West German Social Dem­ Kohl and President Richard von stayed away from the West. ocrats. A few days before Honecker Weizsiicker, who spoke in their Bonn The Germany Stalin envisaged in arrived in Bonn, they published ajoint dinner addressesof "two independent 1952 would have looked very similar statement speaking of alleged "com­ Germanstat es." to the Germany Gorbachov has in mind mon roots of Communism and Social Said in the presenceof Honecker, for the time after a Geneva "zero op­ Democracy in the tradition of Euro­ this statement has a special symbolic tion."There would be no U.S. nuclear pean humanism."

EIR September 18, 1987 International 51 in a desert war far away in Africa, but is a major blow to Qaddafi , and to his Soviet backers , and Chad's President Habre should be applauded for his troops' victory. Qaddafi has sent terrorists into Europe and the United States, and Chad strikes blow agents into the Middle East and Africa preaching his brand of "Islamic Revolution," and up till now, efforts to counter against Qaddafi Qaddafi's terrorism and subversion have been remarkably ineffective. by MaryLalevee Western sabotage? Some appeasers in Europe and the United States, like On Sept. 5, two thousand troops from Chad's national anned French President Fran�ois Mitterrand, who were only too forces struck a major blow against Libyan dictator Muammar happy to see Habre defeated in Aouzou , out of fear that a Qaddafi , by launching a completely unexpected attack against military destabilization of Qaddafi , or even his ouster by one of Libya's three air bases in the south of the country. dissatisfied Libyan anny elements , would endanger broader Sweeping 100 kilometers into Libya on Toyota trucks, the international negotiations with the Soviet Union, are now Chadian troops drove straight over minefields laid to protect trying to prevent Hissene Habre from taking further action. the base of Maaten aI-Sara, and in a 24-hour operation, killed Indeed, there are reports that shortages of anns, especially 1,713 Libyan soldiers, took 312 prisoners , and destroyed anti-aircraft missiles, were one of the reasons Hissene Habre nearly 30 Libyan planes and helicopters on the ground, 70 was forced to withdraw his troops from the Aouzou Strip. tanks , and a large quantity of other anns and munitions. However, Qaddafi's own actions may contribute to end­ Chad's losses were 65 dead and 112 injured . ing this appeasement. Qaddafi reacted to the humiliating Chad forces took 312 prisoners , including two Yugoslav defeat of his troops by sending Libyan bombers to attack advisers and one East German "technician." Chad's ambas­ Chad's capital, Ndjamena, and the town of Abeche in eastern sador in Paris declared that Chad had no intention of perma­ Chad on Sept. 7. One of these was shot down by French nently occupying the base: "We only wanted to destroy .one troops protecting the capital . The Libyan ambassador in Paris of the main sources of aggression against Chad. " He said that announced that Libya now considered itself in a "state of Chad has no air force, and was hence obliged to launch war" with France. Declaring that it will not fight Libya di­ ground operations to stop constant Libyan air raids against rectly, the French Defense Ministry has announced that its northern parts of his country. "What the Libyans do by air, militarydeployment in Chad will be strengthened, and a new the Chadians do on the ground," he said. air base, around Abeche, will be completed as soon as pos­ Built in 1979, Maatan al-Sara had been modernized in sible. It also reiterated that whenever the Libyans try to bom­ the last 18 months to become Libya's major air base for air bard Chadian cities, French forces will defend them. The attacks against eastern Chad, and potential assaults against United States is reported to have sent additional supplies of Chad, Sudan, and Egypt. Libya has stepped up its air attacks anti-aircraft missiles, and will possibly send Stinger anti­ on Chad since the beginning of this year, in its effort to aircraft missiles. maintain control of the Aouzou Strip, part of northern Chad, Meanwhile, at the initiative of Gen. Revault d' Allones which Libya claims, and had occupied until Chad troops and General Massu, a "Committee for the Full Liberation of temporarily seized control in August. Chad" has been created in Paris. It advocates a more offen­ The Chadian raid was led by 31-year-old Commander sive policy against Libya, and is lobbying the French govern­ Dj amous, who was responsible for major Chadian victories ment for direct military supportto retake Aouzou . The French at Fada and Ouadi Doum earlier this year. He personally led government's official position is that the dispute over the troopsin trucks over Libyan-laid minefields at Ouadi Doum, Aouzou Strip should be settled by "negotiation." While Prime to prove that driving over the mines at 90 kilometers an hour Minister Jacques Chirac has stressed his support for Chad's causes a three-second delay before they explode. He was fightto defend its integrity, i.e., including the Aouzou Strip, badly injured, using his own technique of "three seconds for Mitterrand's position is more ambiguous. a mine," but is now back in action and led the troops at While the Arab League and some Arab governments , like Maatan al Sara. Algeria and Sudan, have declared their support for Qaddafi The success of the raid confirms �at the Libyan troops in the face of Chad's "imperialist" attack on Libya's territory , are no match for a well-organized and nationally motivated as Libya describes it, Qaddafi 's desperation can be seen by anny, even far smaller in number and less well-equipped. the fact that he has now distanced himself from the Ayatollah Libya did retake the town of Aouzou, in the disputed Aouzou Khomeini, and is calling on Iran to end the Gulf War. Deci­ Strip, from Chad forces on Sept. 1, because of the sheer sive Western action against these two representatives of Is­ violence and intensity of Libyan air raids. lamic fundamentalism could bring their repressive regimes Chad's successful operation is not just another incident to an end.

52 International ElK September 18, 1987 on the $4.02 billion Pakistani aid package. Pakistan The U.S. House Appropriations Committee had ap­ proved the aid package, but then threw it into the deep freeze for several months, until a new certification thatPakistan is not making bombs is obtained. This move was prompted by the scandal created when a Pakistani businessman was ac­ cused by the U.S. Justice Department of trying to illegally export nuclear-related materials. State Dept. feeds The reaction in Pakistan, both officially and from the public, has been sharp. On Sept. I, Foreign Minister Yaqub anti-American wave Khan reiterated Pakistan's determinationnot to submit to the blackmail at a conference on nuclear non-proliferation in by Ramtanu Maitra South Asia. "The fiveweapons states can ask other countries not to acquire nuclear weapons only when they themselves are sincerely ready to destroy their own nuclear weapons," In an unprecedented display of unity, members of the Pald­ he said. stan parliament from both the ruling and opposition parties Meanwhile, Khomeini's Iran is cashing in on the State stood up on Sept. 2 to denounce the United States as an Department-sponsored anti-Americanism that is spreading unreliable friend and accused Washington of humiliating across the political spectrum. Pro-Khomeini Iranians oper­ Pakistan by demanding unacceptable conditions for aid. ating in Pakistan, as well as pro-Khomeini factions among The surge of anti-Americanism in Pakistan is a direct Pakistanis themselves, have stepped up result of the Yalta gamesmanship of the U. S. State Depart­ An Aug. 23 editorial in an Urdu-language daily from ment and the Kremlin. It is aimed at undermining the present Karachi, Nawa-De-Waqt. illustrates the point. Titled "The U.S. Gulf policy, already under fire in the U.S. Congress, New U. S. Force in the Gulf: Repercussions and Implica­ one step in the overall collapse and withdrawal of any U.S. tions," the editorial is an open attack on what it calls "U.S. presencein Pakistan and South Asia as a whole. gunboat diplomacy. " The long arm of Iran's Khomeini within Pakistan is fuel­ "Indeed, the darkening clouds of danger in the Gulf may ing this anti-American bandwagon, taking full advantage of also engulf the neighboring countries and the implications of the pressure plays by the State Department and U. S. Con­ this conflictfor Pakistan need no explanation," Nawa-e-Waqt gress to isolate Pakistan and back it into a comer. The U.S. says. "The U.S. CENTCOM chief, General Crist, has visited Gulf policy has become a specificfo cus of attack. Pakistan several times. This has created various doubts and On Aug. 30, Undersecretary of State Michael Armacost suspicions in the minds of the people." and Soviet Deputy Foreign Minister Vladimir Petrovsky met Incredibly , Nawa-e-Waqt charges that it was U.S. De­ in Washington, giving a new boost to the "Yalta" process. fense Secretary Caspar Weinberger who masterminded the State Department officials stated the meeting was "rou­ aid suspension, in retaliation for Pakistan's refusal to take a tine" -and, "not linked to the Geneva talks between Pakistan stand against Iran. 'The $4 .02 billion U.S. aid package seems and Afghanistan." to be extremely attractive," Naw a-e-Waqt states, "but in view But the meeting was held only nine days before the lith of the rapidly rising storm and the flamesof war in the Gulf, round of the U.N .-sponsored negotiations between occupied wisdom dictates that Pakistan must not bow to U. S. pressure Afghanistan and Pakistan, ostensibly to end the eight-year and must not involve itself in the dangers of the Gulf." occupation of Afghanistan. The terms on which the Soviet The pressure from Iran and its minions is noticeable at Union would agree to withdraw its 150,000 troops have not the officiallevel . In mid-August, Pakistan Defense Secretary yet been settled. Ij lal Haider Zaidi told the press in Lahore that the Pakistan And, three days later, the State Department announced governmenthad made it clear to the United States that it will that Deputy Assistant Secretary of State Edward P. Djerejian not become involved with Gulf disputes, nor will it allow its would go to Geneva on Aug. 10 for two days of talks on territory to be used against the brotherly country of Iran. Afghanistan and the Persian Gulf with Soviet Deputy Foreign In the same breath, the Defense Secretary pointedly un­ Minister Y uri Alekseyev. derplayed the large-scale infiltration by the Afghan secret service, the KHAD, i�to Pakistan. Violent incidents in Ka­ The 'bomb' ploy rachi between local Mohajirs and Phaktoon-speaking set­ The credibility of the State Department in Pakistan is tlers, in which KHAD agents are commonly known to have wearing very thin. It hit a low with Armacost's early August an important hand, have increased over the past month with visit to Islamabad to attempt to arm-twist Pakistan .President a series of bloody clashes and a police crackdown that result­ Zia ul-Haq to open up Pakistan's nuclear installations for ed in the arrest at the end of August of more than 400 individ­ inspection, in exchange for releasing the congressional hold uals.

EIR September 18, 1987 International 53 Dateline Mexico by Carlos Val dez

At the crossroads of gold in his hands labeled "interna­ Renewed threats offinancial warfare and a record $16 billion in tional reserves." reserves serve as backdrop to the presidential succession. Another headache for oligarchic circles internationally is that, thanks to the personal intervention of Peru­ vian President Alan Garcia, Mexico will be hosting what could prove to be an historic presidential summit of the One week before President Miguel may be necessary . "Group of Eight" Ibero-American na­ de la Madrid gave his fifth state of the While the political climate in tions Nov. 27-28. De la Madrid an­ nation address, new threats of finan­ Mexico has certainly become much nounced the meeting by saying that cial destabilization began to surface, tenser in anticipation of the naming of this would be the first time in recent as the international bankers' way of the ruling party's presidential candi­ history that the countries of the region warning againstany "surprises" on the date, none are as nervous as Mexico's would have the opportunity to make debt front-either during his last year foreign bank creditors . They are well "their weight fe lt" before the world. in office, or in the choice of his suc­ aware that, alongside the fiveyears of It is noteworthy in this context that cessor. devastating austerity measures im­ the same cabal of "ex-bankers" expro­ Speaking from Buenos Aires be­ posed by Bank of Mexico director priated in September 1982 by then­ fore the Fifth Annual Convention of Miguel Mancera Aguayo, the govern­ President Jose L6pez Portillo, have Argentine Private Banks Aug. 26, a ment has also managed to save a re­ succeeded in erecting an enormous former adviser to the World Bank and cord $15 billion worth of international speculative bubble of $2 1 billion to the British government, Sir Alan reserves. through the Mexican stock exchange, Walters said that Mexico "is again Despite immense pressure from the making it one of the most profitable in going to be the center of a new inter­ creditor banks to use those reserves for the world. It is already a poorly kept national foreign debt crisis, but worse debt repayment, de la Madrid is leav­ secret thatthe bankers, with the com­ than 1982." He added, "I don't know ing himself all options on this one. plicity of the Bank of Mexico's Man­ when it is going to happen, but I know The banks fear that a lame duck de la cera and Budget Director Salinas de it will happen." Madrid, like many of his predeces­ Gortari, have threatened de la Madrid Merrill Lynch is equally pessimis­ sors, may indulge in a last populist with the "L6pez Portillo treatment," tic about Mexico's future . On Aug. fling, yielding to growing domestic should he not choose the candidate who 27 , the Wall Street brokerage house demands to invest the reserves in the can guarantee "continuity of orthodox demanded that a "shock program" be economy instead. His carefully scru­ policies," as Merrill Lynch put it. That implemented following selection of the tinized address to the nation made no treatment would likely take the form PRI presidential candidate. In its lat­ mention of how the reserves would be of exploding the $2 1 billion bubble est "country study" on Mexico, Mer­ employed, and the New York Times and leaving de la Madrid to take the rill Lynch threatens massive new cap­ spoke for many nervous bankers Sept. blame. ital flight, soaring inflation, and take­ 3 when it observed that this is the most The obvious question that remains over by the "informal ," or black econ­ "pressing economic question." to be asked is, why would Sir Alan omy in the immediate period ahead, Exemplary of the domestic pres­ Walters predict a new Mexico debt should the government try to lower sures on de la Madrid is a cartooncur­ crisis, in view of the country's abun­ interest rates or slow the peso deval­ rentlycirculating in the Mexican press. dance of foreign exchange reserves? uation rate. Based on the scandal of a top mafio­ The answer is simple. Sir Alan is not Despite the brutal austerity regi­ so-just murdered-who collected a offering an objective "analysis," but men de la Madrid has imposed on the vast personal fortune through a mo­ rather is giving the signal for the "clas­ orders of the International Monetary nopoly on Mexico City'S garbage col­ sic" capital-flight scenario that always Fund and creditor banks, the broker­ lection service, the cartoon shows strikes during the succession period, age firm protests the Mexican govern­ Presidentde la Madrid as the new "king bleeding international reserves before ment's "failure to yield results," and of the garbage collectors." He is seat­ the next government can possess and suggests that a "heterodox shock plan" ed on a mountain of garbage, with bags deploy them .

54 International EIR September 18, 1987 Andean Report by Val erie Rush

A 'Shining Path' for Colombia? that the Colombian Congress support Colombia's Communists hope to exploit a weak government and the police force's right to unionize. a population desperate fo r solutions. The reference to the CUT in this Communist-concocted warning to Barco is especially significant, in light of the recent confrontation between CUT president Jorge Carrillo, and W hat Moscow has thus far failed ed upgrading of the armed forces by a Communist elements within the fed­ to accomplish in Peru, it hopes to win I % increase in income taxes and other eration over who will control thattrade in Colombia; namely the triggering of taxes, has been answered by a barrage union confederation. Carrillo an­ a coup, and consequently, civil war. of Communist propaganda, denounc­ nounced that he would never permit Unfortunately, all the conditions are ing alleged plans to launch a "dirty the federation to be used by the Com­ there, and ripe for exploitation. war," Argentine-style, against the munists as a political battering ram A narco-financed upsurge of vio­ leftistopposition in the country. Com­ against the government. "We have lence in recent weeks, including scores munist Party executive Hernando forged the unity of the workers, but of assassinations and death threats Hurtado wrote in the party's newspa­ not on the basis of abdicating our prin­ against prominent national figures, has per, Voz, on Sept. 3 that such a pro­ ciples ....The CUT [will never] be the Colombian population clamoring posal seeks "to endow militarism with used by any political party or group to for solutions. Inadequate responses instruments to improve repres­ proselytize ...in disrespect for the from the Barco government, such as sion ....In other words, this means labor movement." Apparently, the prohibiting weapons sales and ban­ that political and civil rights, already Communists aren't heeding his warn­ ning imports of high-power motorcy­ reduced, will be suppressed." ing. cles favored by mafia assassins, have A lengthy report on the recent wave Last May, the Communist Party in met with ridicule. of assassinations in Colombia appear­ Peru tried to take advantage of mili­ Tensions are also high in the coun­ ing in the same edition of Voz, is en­ tary and police discontent, an escala­ try because of the ongoing conflictwith titled, "Behind the paid assassins are tion in terrorism, and a government Venezuela over contested territorial the rulers ," and blames members of under siege from abroad, to create the rights in the Gulf of Venezuela, a con­ Barco's cabinet-in particular, the conditions for a coup in that country. flict which could still escalate into defense and justice ministers-for A suppressed Air Force mutiny was armed confrontation. On Sept. 4, the seeking to impose an "ultra-rightist" immediately followed by a Commu­ Colombian foreign ministry delivered anti-terrorist statute against "the peo­ nist-directed national strike, a sched­ a formal protest to the Venezuelans pie." The article urges a nationwide uled day of "commemoration" by over violation of Colombian airspace "civic strike against fascism" and at­ Shining Path narco-guerrillas, and a by two F- 16 fighter-bombers. The tacks those who "minimize the impor­ Communist-backed rebellion by ren­ Venezuelan ambassador to Colombia tance of masses in the streets ." egade police seeking "better working has claimed it was "unintentional." Finally, Voz published an alleged conditions. " Deportations of Colombians working letter addressed to President Barco The immense popUlarity of the in Venezuela, and harassment of bor­ from "discontented policemen," de­ Alan Garcia government, combined der merchants by Venezuelan national manding immediate solutions to their with a tough "no-negotiations" stance, guardsmen, have heightened ten­ wage and other grievances. If solu­ proved sufficientto dislodge the rebel sions. tions are not forthcoming, concludes police from their strongholds and take Barco has fled the volatile situa­ the letter, "Don't be surprised, Mr. the wind out of the sails of the Com­ tion at home by undertaking an un­ President, that this could be the point munist strike. The armed forces' com­ lucky trade trip to Asia, where he was of no return in starting a war in Col­ mand stayed loyal to Garcia, and the taken out of action by the sudden onset ombia, and also don't be surprised if terrorist threat was contained. of diverticulosis. He is currently hos­ we join the UnifiedLabor Confedera­ But Colombia, endowed with nei­ pitalized in South Korea, following tion (CUT), and go out on the streets ther a strong nor an especially popular emergency surgery. At last report, his on Nov. 5." government, is dangerously vulnera­ defense minister was with him. Not surprisingly, Communist ble to Moscow's destabilization sce­ A bill to financethe urgently need- congressmen are currentlydemanding nano.

EIR September 18, 1987 International 55 International Intelligence

notable socio-political-economic research­ extradition treaty were murdered or threat­ Thatcher to warn ers of the prestigious EIR organization, ened with murder. which is based in Washington, D.C. The In 1985, the terrorist M-19 narco-terror­ Reagan on arms deal document was first made public almost a ists conducted a raid on the Supreme Court year ago, and in it are revealed the elements in Bogota, at the time justices were review­ British Prime Minister Margaret Thatcher and factors in the destabilization campaign ing the treaty . Twelve justices were mur­ will meet PresidentRonald Reagan "to warn against Panama." dered and numerous court records on drug­ him of the dangers to Western Europe of a The EIR report, "The Crisis in Panama: traffickers were destroyed before the terror­ rushed deal with Russia on nuclear arms Who's Out to Destabilize the U. S. Ally, and ists were bloodily dislodged. cuts," a front-page article in the Daily Ex­ Why?"documented the collusion of the U.S. Subsequently, under the treaty, one of press of London reported Sept. 7. State Department, Sen. Jesse Helms, and the kingpins of the cocaine-producing Med­ Under the heading, "Maggie Warns the "Project Democracy" networks most re­ ellin ClU1el, Carlos Lehder Rivas. was suc­ Reagan of Anns Deal Danger," the paper cently associated with Lt. Col. Oliver North, cessfully extradited to the United States, says she will report to Reagan the fears of in a slander campaign against Gen. Manuel where benow awaits trial in a Florida jail. Britain's defense chiefs and experts on the Antonio Noriega, head of Panama's De­ Soviet Union, thata "zero option" deal would fense Forces. The object of the plot, which leave Western Europe exposed to the supe­ is ongoing, is to force Noriega and President riorconventional mightof the Soviets. These Eric Delvalle fromoffice , to be replacedby defense leaders fear that Reagan will be "democratic opposition" figures ranging Benedictine abbey "deaf' to the interestsof Europe, in his rush fromdrug-runners and money-launderers to tomark hispresidency with an historic arms an avowed Nazi, Arnulfo Arias. raided in France deal . The Panamanian daily's report has in The Benedictine abbey of Belloc in southern Adds the Daily Exp ress, "Privately they tum been excerpted by two Mexican dailies, France , close to the Spanish border, was are voicing fears that if Europe is stripped LaJornada and Uno mas Uno . raided by French police on Sept. 3 at 2:00 in of nuclear weapons in a superpower deal, the morning, as police hunted for French Russia might launch an invasion of Western Basque separatist terrorist Philippe Bidart. Europe, gambling that the U. S. would never Some to days earlier, Bidart had murdered risk a nuclear holocaust for Europe by un­ a French policeman. leashing their intercontinental arsenal." Colombia-U.S. extradition Since that killing, French media have Thatcher has reportedly left two days corneout with various revelations on Bidart, free following the Commonwealth Confer­ pact to be renegotiated who has been on the police "wanted" list ence in Canada in October, during which Colombia and the United States "will begin since the early 1980s. Bidart created Ipera­ she will flyfrom Vancouverto Washington as of Sept. 15 the renegotiationof the extra­ tark, the French version of the Spanish Bas­ for the talks. dition treaty signed in 1979, and whose ap­ que terroristorganization ETA, in 1973. He plicability was frozen following a decision is wanted for several murders and bomb­ by the Supreme Court to overturn the na­ ings. tional legislation approving the treaty. . . ." Not the least ofthe revelationsabout him reported EI Siglo of Bogota on Sept. 4. is that he was educated at a Benedictine sem­ Panama, Mexico media "A U.S. delegation will be arriving in inary. Colombia to discuss the new text of anex­ The weekly Le Point and the Sept. 4 Le excerptEIR report tradition treaty with representatives of the Figaro reveal that the Abbey of Belloc is La RepUblica, Panama's largest-circulation Barco government. . . . The Colombian suspected by police of being the headquar­ newspaper,published an eight-page Sunday delegation which will renegotiate the treaty tersof the "ideological masters" responsible supplement Sept. 6, composed of lengthy is made up of President Barco and officials for the idea of a separate Basque state . Le extractsfrom EIR ' s 1986 SpecialReport on of the foreign ministry," the report contin­ Point reported that Benedictine monks and the destabilization of Panama. Under the ues. other priests of the region would preach in headline, "Who Seeks to Destabilize Pana­ The outcome of the negotiations will de­ favor ofindependence, attacking the police, ma, and Why?" with a subhead: "A Docu­ pendon how well the Barco governmenthas at funerals and on other occasions. ment for History ," the newspaper's front withstood massive domestic political pres­ The monks are also suspected of being page contains a box with a picture of the sure by Colombia's drug-lobby politicians, partof a large logistical and supportnetwork report, and a caption: and a reign of terror by the drugmafias , in for the terrorists, which has allowed Bidart "In section E of this issue, we have a which numerous government officials, and accomplices to escape police dragnets revealing document prepared by a group of judges, and other public figures favoring the repeatedly.

56 International ElK September 18, 1987 Briefly

• ISRAELI POLICE on Sept. 5 charged into a demonstration staged by hundreds of ultra-orthodox Jews Though known to many intelligence cir­ He said the money was "to pay some protesting the screening of motion cles, the French developments have marked debts in the U.S."-a bit of "informal econ­ pictures on the Jewish sabbath. Po­ the firsttime that the Benedictine connection omy," no doubt. lice arrested 28 of the radicals. to separatism and terrorism has been ex­ posedto the public eye. • A GRASSHOPPER plague is hitting the Italian industrial towns of Reggio Emilia, Modena, and Parma, Dutch doctor rejects thanks to the success of an environ­ mentalist campaign against chemical Peruvian drug lobbyist trendtoward euthanasia inputs in agriculture. The Greens Six thousand to 12,000 people per year are succeeded in getting local adminis­ nabbed by Customs agents being killed in the Netherlands by euthansia trations to ban spraying of the hills A Peruvian asset of the international net­ ("mercy killing"), and the continuation of where the grasshoppers spawn. Pas­ work known as "Project Democracy" was this trend means "the end of medical sci­ turelands for the dairycattle that pro­ stopped by Customs officials in Lima, and ence," said Dr. Rutenfrans from the Catho­ duce the famous Parmesan cheese found illegally carrying $40,000in cash out lic University of Nijmegen, the Nether­ have been hard hit. of the country. Hernando de Soto is the au­ lands, in a statement distributed by the in­ thorof a book, EI Otro Sendero (The Other ternationalClub of Life. • HANS HOLMER, the former Path), which advocates legalization of the Euthanasia in the Netherlands is more chief of police of Stockholm who "informal economy," e.g., the drug trade . widespread than in any other country in Eu­ failed to find the assassin of Premier On July 28, President Alan Garcia de­ rope , and the onset of the AIDS epidemic Olof Palme, has been appointed to a clared a nationalization of the Peruvian has made the practice even more prevalent. U.N. anti-drug post covering the re­ commerical banks, in order to put an end to "Euthanasia began in the Netherlands at gions of Asia and South America. such capital flight, and particularly the the end of the 1960s," he wrote . "In several During 1982-84, Holmer chaired smuggling out of drug money . The measure books, in articles and interviews, euthanasia Palme's Commission on Narcotics, is now being hotly contested by the banking was presented as the only solution for those and used the position to break up oligarchy and its hangers-on. problems, which were said to have originat­ Sweden's most successful anti-drug De Soto, according to his report, was ed through the progress of medicine .... police team , resulting in a significant forcedto strip naked by two airport Customs The patients were declared to be victims of decline in narcotics arreststhereafter. agents, just as he was departingfor the United the medical techniques ....Curiously these States. He says he was kept waiting in a arguments were already used, when there • THE PHILIPPINES announced bathroom for an hour and a half. The police were not so many medical possibilities to Sept. 2 that it will investigate possi­ have denied the story . lengthen human life . The Social Darwinist ble American involvement in a bloody De Soto is the head of the Liberty and Erst Heckel wrote as early as 1875 ...that coup attempt against Corazon Aqui­ Democracy Institute (ILD), which pub­ hundreds of thousands of incurably sick pa­ no's government at the end of Au­ lished his book. The ILD is heavily funded tients are kept living artificiallywithout being gust. Defense Secretary Rafael Ileto by the U.S. National Endowment for De­ of service for themselves or society." said after a cabinet meeting that he mocracy ("Project Democracy"), and is a Dr. Rutenfrans concluded, "The estab­ "thought wise to consider the possi­ principal promoter of drug legalization. De lishing of euthanasia will also mean the end bility ." Several of Manila's daily Soto called an ILD board member when he of medical science ...the 2,500-year-old newspapershave reportedthat a U.S. . finally arrived in Indianapolis, to report his prohibition of euthanasia in the Hippocratic helicopter from Clarke Airbase had alleged mistreatment. Oath was an absolute condition for the de­ rescued Col. Gregoria Honasan, the The title of de Soto's book is, not acci­ velopment of medical science. The neces­ coup leader, when it became clearthe dentally, a play on the name of Peru's bar­ sity to heal people and relieve their pain coup would fail . baric narco-terrorist organization, Sendero would not have been as obligatory as it was, Luminoso (Shining Path). if one could have just killed these peo­ • SOVIET Foreign Minister Ed­ Newspapers favorable to the anti-drug ple ....There is a coherence between the uard Shevardnadze will visit Brazil government of President Alan Garcia re­ euthanasia movement in the Netherlands and from Sept. 26 to Sept. 30. He is the ported the police's side of the story: "The the ideology of the Nazis in Germay 50 years first Politburo member to visit. Pres­ only thing we did was ask him why he was ago ....This tendency in the Netherlands, ident Jose Samey will deliver to him carrying $40,000 to the United States in his which is becoming stronger and more out­ an invitation for Mikhail Gorbachov suitcase," in 20 manila envelopes contain­ rageous, is threatening the essence of our to visit Brazil. ing $2,000each . civilization. "

EIR September 18, 1987 International 57 �TIillNational

International panel blasts persecution of LaRouche

by Nicholas F. Benton

After hearing 15 hours of testimony given over two days even if the U.S. press doesn't say a word. from 32 witnesses, including leaders of government, science, The concluding statement of the Committee noted, "We the military, and the arts worldwide, supplemented by scores have read and heard in person testimony in support of La­ of written statements, a five-person Fact-Finding Committee Rouche's efforts from Peruvian congressmen and labor lead­ of the Commission to Investigate Human Rights Violations ers , from the top command of the Bolivian, Peruvian, Co­ in the United States, examining "The LaRouche Case," con­ lombian, and Mexican anti-drug efforts, representatives of cluded during a Sept. 11 press conference in Washington the governingparty of Panama, leading figures in the armed D.C. that: 1) the positive influence of U.S. Democratic pres­ forces of West Germany . '.' from several leaders of the Free idential candidate Lyndon LaRouche has been enormous French resistance against fascism during World War II . . . worldwide, and 2) the harassment of LaRouche and his sup­ from leading scientists and engineers of several nations, and porters both by elements in the U.S. Department of Justice fromartists and musicians who . . . speak with love and great and by Soviet disinformation and terrorist networks is un­ dignity about their association with Lyndon LaRouche. precedented, and, in the case of the United States, threatens "No truthful man or woman who has received this testi­ the viability of the Constitution itself. mony could help but be struckby the Power and influenceof Over 280 individuals attended the Sept. 9- 10 hearings, LaRouche and his movement. We are forced, through the which were presented before the Fact-Finding Committee sheer weight of evidence presented to us, to conclude that, composed of Chairman Don Victor Girauta y Armada, an contrary to the vast majority of press accounts , both in the attorneyfrom Spain; Secretary Dr. Edwin Vieira, an attorney United States and the Soviet Union, Lyndon LaRouche and from Virginia; Lennart Hane, an attorney from Sweden; Lar­ his associates have served the best inte,rests of the United ry Lopez-Alexander, a former judge from Colorado; and Dr. States and the free West, and have, indeed, improved the Frederick Wills, former Foreign Minister of Guyana. image of this nation abroad in the face of growing hostility Due to what EIR learned was a coordinated effort at the and resentmentagainst America worldwide, cleverly orches­ executive level, there was a total boycott by the Washington trated by Soviet assets." press corps of the Sept. II press conference reporting the The Committee also noted, "We have also received an Committee's findings, except for EIR and one Maryland ra­ enormous amount of evidence, alarming in its implications, dio station. of the violation of fundamental constitutional rights of La­ Chairman Girauta expressed amazement at this, but said Rouche and those associated with him and his presidential that because of the great interest in LaRouche by the inter­ campaign . . . of unprecedented use of government force to national press, he was confident there would be extensive close down the publishing capabilities associated with La­ coverage when the Committee presents its findingsto a meet­ Rouche ... a sequence of state and federal indictments, ing of the full Commission in Paris, France, on Sept. 25 , accompanied by lengthy jailings without bond . . . for the

58 National EIR September 18, 1987 sole purpose of what General Scherer, in his testimony, termed Movement, through his 1982 meeting with Mexican Presi­ 'psychological terror.' This has been coupled with intense dent L6pez Portillo and his "Operation Juarez" proposal, his government harassment, testifiedto by dozens of statements 1982 support for Argentina in the Malvinas War (including from those of its victims still willing to come forward . . . his 1984 meeting with Argentine President Alfonsin), and who have dared to contribute financiallyto this movement." his support for Peruvian leader Alan Garcia. He noted the The Committee quoted two experts on Soviet techniques impact of the North American Anti-Drug Coalition, founded of warfare in its concluding statement, Brigadier Gen. (Ret.) at LaRouche's initiative, from the early 1980s, and the 1985 Paul Albert Scherer, former head of counterintelligence of publication of Narcotrafico SA (Dope, Inc.), which was the West German military, and U.S. journalist Ralph De banned in Venezuela, but serialized in a leading Peruvian Toledano. The statement quotes Scherer saying, "I am con­ newspaper. LaRouche warned the Reagan administration vinced that Mr. LaRouche is neither a faker, nor an agent of against the Contra policy before 1981, proposing instead a influence, and certainly not a neo-Nazi fascist," adding that four-point Central American policy based on large-scale eco­ LaRouche is the victim of "a typical, offensive, and manip­ nomic development projects and support for the Contadora ulative intelligence-directed operation, aimed at eliminating process, and stopping gun-running and the Jesuits. an opinion-shaper who is a considerable disruption to the Robyn Quijano, editor of Resumen Ej ecutivo, the Span­ Kremlin's policies, and who can neither be silenced nor in­ ish-language version of EIR , presented 40 written testimon­ fluenced by meansof the usual financialarrangements ." ies of support for LaRouche signed by 200 lbero-Americans Quoting De Toledano, the Committee statement added, from Argentina, Brazil, Colombia, Mexico, Panama, Peru, "Whatever the substantive issues of the LaRouche case, and and Venezuela. they are small, it can be stated categorically that the Justice PERU: Four leading members of the rulingAPRA party Department has made a mockery of the First, Fourth, and presented testimony on the influenceof LaRouche in advanc­ FifthAmendments and of the Constitution as a whole in its ing the cause of Ibero-American economic integration. Not­ prosecutorial attempt to silence and suppress the LaRouche ing that such integration, as well as the measures taken by movement. " President Alan Garcia to stem the outflow of debt and to The Committee statement concluded, "We findourselves nationalize the banks, are part of the APRA program, Peru­ in full agreement with the assessments of these two ex­ vian Congressman Wilber Bendezu remarked, "We have a perts. . . . We are not in a position to bring � indictment for friend in the U.S. in LaRouche that we can count on." wrong-doing in this affair. We are , however, in a position to The chairman of the Peruvian state-owned Pesca-Peru bring the force of moral suasion and public opinion to bear fishing company, Juan Rebaza, pointed out that it was at a through the efforts of the Commission, to right the wrongs meeting of trade unionists from countries around lbero­ which have been committed against Mr. LaRouche and his America organized by the Schiller Institute, a policy organi­ associates. This we intend to do." zation founded at the initiative of LaRouche and his wife, The testimony presented to the Committee was composed Helga Zepp-LaRouche, in July 1985, that a decision was of two major parts. 'The first focused on the influence of made to support the election of President Garciaand back his LaRouche worldwide, which included the regions of Ibero­ move to pay debt equaling only 10% of the country'sfo reign America, Asia, Western Europe, and the United States. The earnings, to make credit available for domestic develop­ second centered on the harassment of LaRouche, his associ­ ment-including credit offered with no interest to small ates and supporters, including an analysis of the networks farmers . responsible for the operations against him in the United States, Congressman Juan Valdivia of Peru added that "our friend testimony on the status of the current legal offensive against LaRouche will continue to be a champion of our cause against him, and on the patternof FBI and Secret Service intimida­ drug running in Peru and all Ibero-America." The Schiller' tion of LaRouche supporters. It also included testimony on Institute, he said, "has had a great function in our fiercebattle efforts against LaRouche and his collaborators in Canada, against the drug scourge." France, and Sweden, the latter two cases specificallyinvolv ­ Dr. Ricardo Martin, the former Deputy AttorneyGeneral ing major Soviet slander and terroroperat ions. of Peru , stressed the importance of LaRouche's contributions to Peru's battle against the narco-terrorists, including his 15- LaRouche's inBuence point plan aimed at waging all-out war on them, "since they Dennis Small, Thero-American Bureau Editor of EIR , have declared war on humanity." As the General Directorof presented the Committee with an overview of LaRouche's Juridical Affairs in Peru , he headed a special operation against influencein Ibero-America in three areas: the fightfor ajust, drugs, terror, and corruption, and found that in 1982, drug new world economic order, the war on drugs, and Central bankers in Peru laundered $1.5 billion in drug money, with American policy. He traced LaRouche's influence from his the support of Finance Minister Manuel Ulloa. He noted how 1975 International Development Bank proposal, and its in­ these corrupt forces have allowed the Soviets to turn drug fluence on the 1976 Colombo meeting of the Non-Aligned traffickinginto a tool of subversion, beginning in 1960.

EIR September 18, 1987 National 59 BOLIVIA: Gen. Lucio Afiez, former Bolivian delegate economic methods to the development of nuclear power, to the Inter-American Defense Board and adviser to the Bo­ water management, and education there . In 1983, Fusion livian Joint Chiefs of Staff, detailed the brutal effects of Asia was founded at LaRouche's initiative, and participated austerity imposed on Bolivia by the International Monetary with an official government agency in a January 1985 con­ Fund, and how this has led to the growth of the "informal ference on advanced nuclear physics in Bangladesh. In 1983, sector" economy fueled by the drug trade. "Nothing is more LaRouche proposed linking the economies of the Indian and dangerous to democratic institutions than the austerity pro­ Pacific Oceans with the aid of a canal across the Kra Penin­ grams of creditor banks backed by the government of the sula in Thailand. Several conferences have been held as a U.S.," Afiez said. resultof this proposal, and it is now advancing toward reali­ "Lyndon LaRouche knows what is happening in my zation in Thailand. country ," Afiez said. "He has great knowledge of my coun­ LaRouche traveled to Japan in 1983 and 1984 to discuss try . This surprised me, because very few Americans know economic and strategic issues with leaders there , and in 1986 anything." He cited LaRouche's 15-point program for a mil­ he inspired a Tokyo conference advocating Japanese partic­ itary-style war on drugs, noting that when he first read the ipation in the U.S. SOl program. The Japanese decided to book, Dope, Inc., commissioned by LaRouche, "it seemed join the SDI shortly after that conference. like science fictionto me, because it seems unbelievable that WESTERN EUROPE: Webster Tarpley, president of people so rich always want so much more, even at the ex­ the Schiller Institute, outlined the scope of LaRouche's influ­ pense of our children." He also cited LaRouche's Operation ence in Western Europe. "Europe has the largest industrial Juarez proposal for Ibero-American economic integration, and productive potential in the world. It is the strategic key and a paper written specificallyon the Bolivian economy, he to the planet. LaRouche is passionately concerned with the said, has been studied at the highest levels in Bolivia. fate of Europe as a component of the fate of mankind," he PANAMA: Mario Parnther, a member of the National said. He outlined LaRouche's influence in the areas of 1) Directorate of the ruling Revolutionary Democratic Party of defense of its economy, 2) its battles against terrorism and Panama, officially designated by his party to testify, linked drugs, 3) its cultural values in the areas of scientific method , the destabilization of Panama to the persecution of La­ .music, culture and theology, 4) the threat of Soviet aggres­ Rouche. "Project Democracy never forgave Gen. Manuel sion and decoupling, 5) the danger of the AIDS pandemic. Antonio Noriega for his role in the Contadora, for his com­ Nationally syndicated columnist Ralph De Toledano, au­ mon purpose with Peru's Alan Garcia, and for his commit­ thor of 19 books and writer for the Copley News Service, ment to the dignity, right to national sovereignty, and self­ said that Lyndon LaRouche's suit against the Soviet govern­ determination of peoples," he said. Likewise, he said, Lyn­ ment for slander, currently before a Paris court, could have don LaRouche represents the "spirit of the U.S. founding an historic impact on the battle against Soviet disinformation fathers." The sinister interests who showed their hand with in the West. De Toledano said that "LaRouche has put the the scandal of Irangate want to carry out a coup against my Soviets on the defensive" in the trial, and that "if he wins, government, he said: "What right do they have to destroy my then there could be hundreds of thousands of libel actions country?" The Organization of American States voted 17-1, against Soviet publications, which have destroyed the repu­ with the United States the lone dissenting vote, to side with tations of good men, falsified history, and done the work of the Panamanian government against meddling in its internal Satan." affairs by the United States. De Toledano reportedon his fact-finding mission to Eu­ ' "We are fortunate that men emerge such as Lyndon rope and the Middle East to , determine whether there might LaRouche who denounce historical mistakes such as Project be any substance to the media allegations about LaRouche. Democracy, which operates a secret government that does His tour included a six-hour interview with Lyndon and Hel­ not represent the aspirations of the people of the U.S.," he ga LaRouche, and meetings with French resistence fighter said. LaRouche "tells the truth about the conspiracy against Marie-Madeleine Fourcade, and Israeli leader Meir Pa'il. He Panama." "This is concrete proof of his unyielding commit­ said that as an expert on the subject of totalitarianism, who ment to the truth about Panama," against "those who would can recognize a totalitarian mind when he encounters one, mourn thefate of newspapers in Panama that incite riots and through years of journalistic experience with Nazism and war, while in the U.S. they callously close the newspapers Communism, "Listening to LaRouche, I heard absolutely and magazines of LaRouche which expose Project Democ­ none of this , only reasoned analysis of the problems that beset racy." society, the Westernworld and civilization." ASIA: Ramtanu Maitra of India, editor of Fusion Asia He cited remarks made by Madame Fourcade, that La­ magazine, outlined how the nations of Asia have "looked to Rouche's commitment to a space shield against a missile LaRouche for guidance," beginning in 1980, when La­ attack was "above all, serious, resolute, and indifferent to Rouche commissioned a report on a 4O-year development popularpre judices in judging rightly a policy." He noted her perspective for India, based on applying American System professed "great esteem" for LaRouche's commitment to

60 National EIR September 18, 1987 "battle hunger and Malthusianism with a fight foraj ust, new 12331, 12333 and 12334, signed by President Reagan on world economic order and a new Marshall Plan." She called Dec. 4, 1981, enabled a specific network of "right-wing LaRouche "a man of heart seeking solutions with great cour­ social democrats" linked to Project Democracy to operate age," he said. Pa'il, De Toledano reported, expressed his with impunity against LaRouche and to set up the compo­ "high approval" of LaRouche's proposal for a "Middle East nents of the Iran/Contra operation. Economic Community," including Israel, noting that La­ Testimony was presented on FBI and Secret Service har­ Rouche's proposals can be construed as neither anti-Israel assment of private citizens who have contributed to La­ nor anti-Semitic. "All charges of anti-Semitism were laid to Rouche's presidentt!il campaign, supported his policies, or rest by my conversations in Israel," De Toledano said. subscribed to publications produced by his associates. Sup­ UNITED STATES: Warren Hamerman, chairman of the porters fromNew York, Alabama, New Jersey, and Illinois National Democratic Policy Committee, cited the lengthy list gave shocking accounts of FBI and Secret Service harass­ of statements of support for the Democratic presidential can­ ment, while Suzanne Rose, a volunteer for the Human Rights didate LaRouche from leading U.S. scientists, which had Commission, read letters from a handful more of the better been presented to the committee, including those of Dr. James than 1,500 to 2,000contributors estimated to have been har­ Frazer and Dr. Ben Soldano. Other scientists, Dr. Robert assed for supporting LaRouche and his policies. Equally Moon and Dr. John Seale, testified in person. Hamerman remarkable was the courage expressed by these supporters in cited representatives of political constituencies "last unified standing up to the harassment. in World War II," including: Milton Croom, of the Peace As Rose said, however, others have been silenced through Through Strength organization, who also testified in person; fear, as a result of the harassment, and even the strongest of Roy Innis of the Congress of Racial Equality; Irma Craven those who testified today admitted to experiencing the des­ of the Right to Life; Linda Everett of the Club of Life; John tabilizing effects that the harassment is intended to have. Weber, a major benefactor of Hebrew Union College; Rabbi Most of the witnesses characterized the FBI behavior as ag­ Gerald Kaplan; and former National Association of Raw gressive and threatening, and definitely a violation of their Materials President Fred Huenefeld, both of whom testified rights to freedom of association. in person. He also cited the late Hulan Jack, "founding fath­ Supporters of Democratic presidential candidate La­ er" of the U.S. civil rights movement, who dedicated a sec­ Rouche, Louis and Andrea du Pont Smith and Elizabeth tion of his autobiography, FiftyYears a Democrat to his close Rose, testified on the efforts of their families to have them association with LaRouche during his last years. declared mentally incompetent in order to prevent them from Hamerman noted LaRouche's efforts in creating a "can­ financiallysupporting LaRouche , his policies, and his move­ didates' movement" that transformed over 2,000 American ment. patriots into candidates for public office in 1984 alone, and CANADA: Attorney Gerard Guay described ongoing drew over 10 million votes in recent years. The two historic attempts by the Royal Canadian Mounted Police to deny events of 1986-the upset victory of two candidates associ­ rights of members of the Party for the Commonwealth of ated with LaRouche in the Illinois statewide primaryand the Canada to politicallyorganize at the airportsthere since 1984, collection of the signatures of over 700,000 Californians to as well as a consistent campaign of media slander which place an anti-AIDS referendum on the ballot there-were the extended to him. result of many years of effort by LaRouche, including his FRANCE: Claude Albert, President of the European initiation in 1974 of an interdisciplinary group that prepared Labor Party (POE) in France, cited two extraordinary cases: a report then on the causal relationship between economic 1) the terrorist bombings in April 1986 of the offices of the breakdown and the emergence of deadly new pandemics, a Executive Intelligence Review and POE in Paris by a group, virtual forecast of the AIDS epidemic. "Black War," linked to the "Direct Action" terrorists, which "Athens was judged by the trial of Socrates. They failed was intended, according to French police, to bum down the the test, and the result was the long dark age of the Roman entire building and to take lives, and came two months after Empire. Florence in 1302 expelled Dante, and 46 years later the Schiller Institute received a letter from the Libyan em­ came the Black Plague. History shall judge how America bassy in Bonn, West Germany, warning the group to expect judges LaRouche today," Hamerman said. to be a target of a bombing, and 2) two cases of libel against LaRouche by Soviet publications circulated in France. Operations against LaRouche SWEDEN: Michael Ericson, spokesman for the Euro­ The Oct. 6, 1986 raid and all related harassment of pean Labor Party (EAP) in Sweden, presented the Committee LaRouche and associates were run by the same "secret gov­ with the astonishing account of Soviet-directed attempts ernment" network responsible for the Iran/Contra scandal, through influence in the Swedish media (which spilled over counterintelligence expert Robert Greenberg documented in into the United States via NBC TV and other outlets) to link testimony read to the committee by his associate Herbert LaRouche and his associates to the assassination of Swedish Quinde. Greenberg showed how the intelligence guidelines Prime Minister Olof Palme, which occurredFeb. 28, 1986.

EIR September 18, 1987 National 61 Pope John Paul II celebrates bicentennial of u. s. Constitution Thejollowing sp eech was delivered by the Pope on Sept. 10 another great document, the Declaration of Independence, in Miami, Florida, at a meeting with President Reagan. The my predecessor Paul VI spoke to American Congressmen in text was distributed to the press, in an unofficialtranslati on. Rome. His statement is still pertinenttoday: "At every tum," he said, "your Bicentennial speaks to you of moral principles, Mr. President, religious convictions, inalienable rights given by the Crea­ tor." And he added: "We earnestly hope that ...this com­ 1. I am grateful for the great courtesy that you extend to me memoration of your Bicentennial will constitute a rededica­ by coming personally to meet me in this city of Miami. Thank tion to those sound moral principles formulated by your you for this gesture of kindness and respect. Founding Fathers and enshrined forever in your history" (Ad­ On my part I cordially greet you as the elected chief exe­ dress of April 26, 1976). cutive of the United States of America. In addressing you I ex­ press my own deep respect for the constitutional structure of 3. Among the many admirable values of this nation there is this democracy, which you are called to "preserve, protect and one that stands out in particular. It is freedom. The concept defend." In addressing you, Mr. President, I greet once again of freedom is partof the very fabric of this nation as a political all the American people with their history, their achieve­ community of free people. Freedom is a great gift, a great ments, and their great possibilities of serving humanity. blessing of God. I willingly pay honor to the United States for what she From the beginning of America, freedom was directed to has accomplished for her own people, for all those whom she forming a well-ordered society and to promoting its peaceful has embraced in a cultural creativity and welcomed into an life. Freedom was channeled to the fu llness of human life, to indivisible national unity, according to her own motto: E the preservation of human dignity and to the safeguarding of pluribus unum. I thank America and all Americans-those all human rights. An experience in ordered freedom is truly of past generations and those of the present-for their gen­ a cherished part of the history of this land. erosity to millions of their fellow human beings in need This is the freedom that America is called to live and throughout the world. Also today, I wish to extol the bless­ guard and to transmit. She is called to exercise it in such a ings and gifts that America has received from God and cul­ way that it will also benefit the cause of freedom in other tivated, and which have become the true values of the whole nations and among other peoples. The only true freedom, the American experiment in the past two centuries. only freedom that can truly satisfy is the freedom to do what we ought as human beings created by God according to his 2. For all of you this is a special hour in your history: the plan. It is the freedom to live the truth of what we are and celebration of the Bicentennial of your Constitution. It is a who we are before God, the truth of our identity as children time to recognize the meaning of that document and to reflect of God, as brothers and sisters in a common humanity. That on important aspects of the constitutionalism that produced is why Jesus Christ linked truth and freedom together, stating it. It is a time to recall the original American political faith solemnly: "You will know the truth and the truth will set you with its appeal to the sovereignty of God. To celebrate the free" (John 8:32). All people are called to recognize the origin of the United States is to stress those moral and spirit­ liberating truth of the sovereignty of God over them both as ual principles: those ethical concerns that influenced your individuals and as nations. Founding Fathers and have been incorporated into the expe­ rience of America. 4. The effort to guard and perfect the gift of freedom must Eleven years ago, when your country was celebrating also include the relentless pursuit of truth. In speaking to

62 National EIR September 18, 1987 Pope John Paul II on a visit to Munich , West Germany, earlier this year. Behind him is a banner of the slogan, "Peace Means Development. "

Americans on another occasion about the relationship be­ the greater becomes its internationalresponsibility , the great­ tween freedom and truth , I said that as a people you have a er also must be its commitment to the bettennent of the lot of shared responsibility for preserving freedom and for purify­ those whose very humanity is constantly being threatened by ing it . Like so many other things of great value, freedom is want and need ... America, which in the past decades has fragile . Saint Peter recognized this when he told the Chris­ demonstrated goodness and generosity in providing food for tians never to use their freedom "as a pretext for evil" (I Pt the hungry of the world, will, I am sur'e, be able to match this 2: 16). Any distortion of truth or dissemination of non-truth generosity with an equally convincipg contribution to the is an offense against freedom; any manipulation of public establishing of a world order that will create the necessary opinion , any abuse of authority or power, or, on the other economic and trade conditions for a more just relationship hand , just the omission of vigilance , endangers the heritage between all the nations of the world, in respect for their of a free people . But even more important, every contribution dignity and their own personality" IAddress at the White to promoting truth in charity consolidates freedom and builds House, October 6, 1979). up peace. When shared responsibility for freedom is truly accepted by all, a great new force is set at work for the service 6. Linked to service, freedom is indeed a great giftof God to of humanity" (Address of June 21, 1980). this nation. America needs freedom to be herself and to fulfill her mission in the world. At a difficult moment in the history 5. Service to humanity has always been a special part of the of this country, a great American, A raham Lincoln, spoke vocation of America and is still relevant today . In continuity of a special need at that time: "that this nation under God I with what I said to the President of the United States in 1979 shall have a new birth of freedom." A new birth of freedom I would now repeat: "Attachment to human values and to is repeatedly necessary: freedom to exercise responsibility ethical concerns, which have been a hallmark of the Ameri­ and generosity, freedom to meet th challenge of serving can people , must be situated, especially in the present context humanity, the freedom necessary to fUlfili human destiny, of the growing interdependence of peoples across the globe, the freedom to live by truth, to defendl it against whatever within the framework of the view that the common good of distorts and manipulates it, the freedom to observe God's society embraces not just the individual nation to which one law-which is the supreme standard of all human liberty­ belongs but the citizens of the whole world ....The present­ the freedom to live as children of God, secure and happy: the day relationships between peoples and between nations de­ freedom to be America in that constitutional democracywhich mand the establishment of greater international cooperation was conceived to be "One Nation under God, indivisible, also in the economic field . The more powerful a nation is, with libertyand justice for all."

EIR September 18, 1987 National 63 Doris E. Burdman halfway house in Youngstown. The med­ ical director of Woodside is Dr. Karipineni Prasad. Psychi­ atric consultants at Burdman House were Drs . N.R. Sarma Blind terror threat and Brian Sullivan. The leading forensic psychiatrists in Ohio, who may correspond to the suspected role of Colorado's Dr. to public figures John M. MacDonald, a specialist on threats to public officials who is under suspicion in the Hinckley case, are Drs. Howard by Ira Liebowitz Sokolov at Central Ohio Psychiatric Hospital in Columbus, and Phillip Resnick in Cleveland. The pattern of Hinckley-style "Manchurian Candidates" A pattern of "blind terrorist" incidents and threats to public in such recent incidents prompted presidential candidate Lyn­ officials over the summer, some involving mental patients don H. LaRouche, Jr. to call for immediate suspension of strikingly similar to would-be presidential assassin John psychiatric and medical licenses pending full investigation Hinckley, is a signal that a very real threat currentlyexis ts to of professionals who fail to report to law enforcement agen­ the Pope and President Reagan, as well as other public fig­ cies threats to public officials by their patients , or whose ures. patients threaten or commit violence against public officials. The Pope has been targeted by radical Jewish organiza­ tions, radical homosexual organizations, the American In­ Harvard and 'Manchurian Candidates' dian Movement, and the Paris-based Revolutionary Com­ Two incidents in New England in early September indi­ munist Party (RCP), headed by Robert Avakian. The RCP cate the danger to presidential candidates in and around New spray painted the slogan, "Kill the Pope," on the streets of Hampshire. On Aug. 31, a 22 year-old Vietnamese immi­ Detroit, where John Paul will give a public mass Sept. 19. grant, Minh Huang Le, assassinated six members of his fam­ The situation parallels that which prompted EIR ' s assas­ ily and fired upon police before killing himself in the Dorch­ sination alert on the President and the Pope in January 1981. ester neighborhood of Boston. Le was arrested and released Actual attempts were made in March and May of that year. in June 1986 by the Secret Service for breaking into the White The alert was based on evaluation of the political shifts as­ House, and had been in contact with the FBI and other agen­ sociated with the President's assumption of office, as well as cies since July 1986. a monitoring of terrorist infrastructure capabilities. Relevant On Sept. 5, Manchester, N.H. police arrested a Buffalo developments today are the United States's Persian Gulf force man, Lawrence McLane, Jr. , 21, for attempted murder of concentrations, and the Vatican's powerful defense of the two women in a Manchester restaurant. rights of Catholics and Jews behind the Iron Curtain. An ongoing investigation has highlighted a forensic net­ Two incidents among recent suspicious airline mishaps, work in New England centered on Dr. John Clark of Harvard "berzerk gunmen," and highway shootings indicate that the Medical School, which is the target of three current lawsuits. President, Secretary of Defense Weinberger, and others are Clark heads the "anti-cult" center, "American Family endangered. Foundation," in Weston, Mass, and has been a top staffer at Ralph William Myers. On Aug. 15, Army Private Ralph a spooky Harvard teaching-hospital in Belton called McLean William Myers, 32, was detained for questioning at John Hospital since 1959. McLean supervised staffing at Bridge­ Wayne Airport by Secret Service Agents following a near water Hospital until 1985. Bridgewater is a state mental hos­ collision between his plane and a helicopter carrying Presi­ pital and correctional facility in Belton, notorious for patient dent Reagan near Santa Barbara, California. Myers went abuse and suspected mind control experiments for over 20 AWOL Aug. 3 from Ft. Lewis Army Base. His whereabouts years . are unaccounted for until Aug. 15, when he rented a plane In July 1987, Roderick MacLeish of the ACLU sued Gov. ostensibly to flybusin essman Harlan Lee Jones to a meeting Michael Dukakis and Bridgewater over the questionable in Los Angeles with Donald Nixon, the nephew of former deaths of nine inmates since 1985. Celebrated filmmaker President Richard Nixon. Fred Wiseman, the producer of a 1967 documentary on Brid­ Dwain Wallace. On Aug. 5, Dwain Wallace, 30, a men­ gewater called Titicut Follies, is also suing Dukakis' s mental tal patient under supervision of the Ohio State Mental Health health system, and former Massachusetts Attorney General System in Youngstown since 1979, was shot and killed while Elliott Richardson. Wiseman seeks to lift a 1967 court order running through a Pentagon security checkpoint at a location obtained by Richardson, that bans public viewing of his film close to a meeting between Caspar Weinberger, George to this day. Schultz, and Gen. Colin Powell of the NSC. He was armed The Department of Justice's Civil Rights division also with a .25 calibre handgun when shot. Wallace had been brought suit this year against a Bridgewater sister-hospital, twice arrested for threatemng with a handgun afterwhich he Worcester Mental Hospital, for abuse and unauthorized use was confined to Woodside State Mental Hospital and the of psychotropic drugs.

64 National EIR September 18, 1987 Testimony by Dr. John Grauerholz to AIDS Commission

For an Apollo-style crash research effort, and public health measures As delivered on Sept. 9 before the President's Commission virus is only spread by sex and needles. on AIDS, in Washington, D.C. (subheadings have been In order to understand the confusion, it is necessary to added) . understand what is, and is not, known about the AIDS virus and how it is transmitted. The virus itself belongs to a group Ladies and gentlemen, members of the Commission: My of viruses known as retroviruses, for their ability to insert name is John Grauerholz; I am a physician, a board certified their genetic material into the genes of the cells which they pathologist, medical coordinator of the National Democratic infect and thus establish lifetime infection of those cells. Policy Committee, and medical adviser to Lyndon H. La­ Within the retrovirus group, the AIDS virus, HIV, belongs Rouche, Jr. , a candidate for the Democratic presidential to a subgroup known as lentiviruses (slow viruses), charac­ nomination. The formation of this Commission represents a terized by a long incubation period and slow onset of disease. belated, but necessary, step in confronting the most serious Lentiviruses have been well known in other animal species health threat mankind has faced to date, a pandemic of a since the time one such virus, known as the Maedi-Visna lethal, incurable, contagious disease for which we possess viruswas identifiedas the cause of a devastating epidemic of no preventative vaccine. Initially spreading among groups lung and brain disease among Icelandic sheep. The virus, whose behavior provided the opportunityfor highly efficient closely related to the AIDS virus, was spread when infected transmissionof a predominantly blood borne, cell-associated sheep coughed on uninfected sheep while they were closely virus, the large reservoir of infected carriers, combined with crowded in winter shelters . Infected ewes then passed the declining standards of nutrition, sanitation, and health care virus on to their lambs, either in the uterus or in the milk. infrastructure, has created a situation where this virus, like The AIDS virus also produces a primary lung infection, many infectious diseases of the past, is disseminating into known as chronic lymphocytic interstitial pneumonitis (CLIP), the general population at an increasing rate , and by previ­ which looks just like the sheep disease, under the micro­ ously less efficienttra nsmission routes. scope, and the AIDS virus has been isolated from the lung The number of cases which cannot be explained by "sex­ fluid of these patients. So there is no biological reason why ual" or needle transmissionis constantly growing and, with respiratory transmission could not occur under similar cir­ therecent report of three health care workers infected by skin cumstances of prolonged crowding, or close association, of contact with infected blood, the continued pushing of this infected and uninfected individuals, as would occur in schools "line" will only serve to increase a growing loss of confidence or crowded urban and rural ghettoes. in the health authorities on the part of the public in general, Another closely related animal lentivirus is theequine and health and public safety personnel in particular. infectious anemia virus, EIAV. EIA V produces a chronic While the Centers for Disease Control (CDC) and the anemia and fever in horses and is mechanically transmitted Surgeon General have been adamant that infection can only fromhorse tohorse by biting flies. Transmissionoccurs among be spread by sexual contact, needle sharing, and blood trans­ horses crowded in stables and is most efficient when an in­ fusion, there was evidence as far back as 1984 that other fected horse has a high level of virus in its bloodstream. We secretions, such as saliva, could transmit infection. More now know that the level of virus in the bloodstream of AIDS recently, three cases of health care workers infected by brief infected persons can vary substantially from almost no free skin contact with infected blood have cast serious doubt on virus to high levels of virus, at different times in the course the contention that the AIDS virus is difficultto transmit. In of infection. spite of this, many health officials continue to insist that the The point is that the retroviruses of animals, especially

EIR September 18, 1987 National 65 the lentivirus subgroup, are spread by three primary means question of co-factors in the progression from infection to in all other species: active disease in the infected individual. We are looking, 1) Mother-to-child transmission, either in the uterus or conservatively, at an estimated four to five million persons, through mother's milk. predominantly newborn children and young to middle-aged 2) Respiratory (coughing) and salivary (kissing or lick­ adults, infected with this virus in the United States, and tens ing) transfer. of millions in underdeveloped countries. We cannot afford 3) Mechanical transmission by biting insects. Mechanical to allow these people to progress to active disease without transmission occurs when a biting insect carries blood on its making interventions which may delay the onset of disease, mouth partsfrom an animal it has just bitten to another animal just as with tuberculosis, where the goal was not only pre­ which it bites. Since it has now been demonstrated that mos­ vention of disease transmission, but also improving the health quitoes can carry HIY for up to 48 hours, this is more than of the infected person. As with any other infectious disease, an academic point. healthy, well-nourished persons control this infection better While the CDC and other "authorities" will state that no than unhealthy persons exposed to other diseases and envi­ cases of transmission by coughing, saliva, or insects have ronmental stresses. We must create the necessaryinstitutions been demonstrated, that statement is meaningless. With the to enable the infected, asymptomatic individual to continue exception of cases such as the three health care workers making productive contributions to society, while eliminat­ referenced above, the only cases in which we know exactly ing the risk of transmission of infection. how and when a person was infected are those persons who received infected blood transfusions. All other cases repre­ Need for a crash program approach sent association, real or arbitrarily assigned, with certain The demographic groups affected by this disease repre­ formsof behavior which are officially"acceptable" means of sent both our present and future labor force, and the most transmission of the virus, i.e., sex and needles. Because of rapidly declining segments of our population, even without the long, and variable, incubation period from infection to AIDS. A policy which does not intervene to delay the onset disease, statements about how a given person became infect­ of disease in these people, and counsels those who become ed are, for the most part, guesses. ill to die quickly, and cheaply, in a hospice, is a policy of national suicide, a policy coherent with the simultaneous Applying public health law policy of encouraging our elderly, who now represent the The unique nature of this infection, with its prolonged most rapidly increasing segment of our population, to forego incubation period in individuals who are not ill, but nonethe­ such extraordinary treatment as food and water when they less capable of infecting others, presents us with two major become ill. The basis of these policies lies in a Gramm­ problems, which also represent opportunities to contain, and Rudman economics of austerity, and renunciation of tech­ ultimately eliminate, this problem. On one hand, we must nological progress, similar to that which motivated the Nazis confront the fact that this is a communicable, contagious to programs of euthanasia, slave labor camps, and gas ovens infection, requiring applicationof the full spectrum of avail­ to eliminate so-called "useless eaters ." able public health law to prevent spread of infection to unin­ Even the conservative U.S. Public Health Service esti­ fectedperso ns. This must include extensive use of testing to mate of 270,000 cases by 1991, will impos� $200 billion in identify infected, asymptomatic carriers of the virus, espe­ health care expenditures and lost productivity costs over the cially in situations in which other persons will be exposed to period 1981-91, an amount approximately equal to our an­ blood, and other infectious fluids, fromsuch carriers, as well nual expenditures for illicit drugs. To argue against an annual as use of quarantine measures as necessary to prevent expo­ expenditure of $5-10 billion a year, 5% of that amount, to sureof uninfected persons. fight AIDS, is to argue that the United States cannot afford Whenmembers of the National Democratic Policy Com­ to continue to exist, which is true under current economic mittee, associates of Mr. LaRouche, and others, nearly policy. If we are serious about stopping this epidemic, the 700,000 to be exact, placed an initiative, calling for use of government should suppress the drug traffic,and confiscate existing health law, on the Californiaballot , it was defeated those multibillion-dollar revenues, rather than engage in the by a campaign of lies. Since then, people who spoke against distribution of paraphernalia in the form of sterile needles. Proposition 64 have called for just about everything in it. Likewise, educating children to use condoms may be What their opposition accomplished was to delay the neces­ cheaper than testing for infection, but will not substantially sary measuresand increase the number of infected persons. slow the spread of infection. As one researcher has noted, At present there is an active petitioning drive to place this "The only safe sex is sex with an uninfected partner." With a initiative on the ballot once more, and signatures are being one out of six failure rate of condoms to prevent transmission collected at twice the previous rate, reflecting the public of infection, this is a policy of Russian Roulette , and sexu­ concernover lack of substantive action by health officials. alizing third graders by "explicit" sex education will simply One aspect of public health overlooked in all this, is the increase the number of times the trigger is pulled among a

66 National EIR September 18, 1987 rapid spread of the disease. Following testimony by a number of public health bureaucrats and researchers, there was a "panel discussion AIDS hearings : Crisis with interest groups. " The general tenor of this was reflect­ management won't work ed in the plea of Commission chairman, Dr. Eugene May­ berry , for testimony which did not simply consist of at­ tacks on the commission. Activities at the first day of hearings of the Presidential Things took a more serious tum in the press conference Commission on the Human ImmunodeficiencyVi rus Ep­ in the afternoon. After several questions from various idemic on Sept. 9 in Washington, D.C. exemplify the media, a "journalist" stepped to the microphone, an­ problem of the present "crisis management" approach to nounced that he had AIDS, and began ranting at the com­ this disease. The tone was set by a noisy demonstration of mission. In the course of his tirade, he bit a press club homosexuals outside the National Press Club, some of security man on the hand and drew blood. He then left, whom rushed up to commission member John Cardinal while the freaked-out security man was assured that ev­ O'Connor and thrust their bleeding sores at him, while erything was okay! screaming "bigot!" and other derogatory terms. Throughout the press conference, and the hearings, The insanity continued as Surgeon General C. Everett there was loud hissing and booing anytime anyone raised Koop denounced doctors and other health workers who any serious suggestion for doing anything to stop the spread refuse to treat AIDS patients as a "fearful and irrational" of the disease which might inconvenience members of the minority , who are guilty of "unprofessional conduct." homosexual community, who formed a preponderance of Koop called the conduct of such health workers "extreme­ those in the audience. The repeated attacks on the bias of ly serious," saying "it threatens the very fabric of health the commission were greeted with thundering applause, care in this country," which assumes that "everyone will the whole scene reminiscent of the Tom Wolfe book, be cared for and no one will be turned away." He warned Radical Chic and Mau Mauing the Flak Catchers. the commission that, "In some ways the purely scientific Following this, a Public Comment session was held, issues pale in comparison to the highly sensitive issues of in which members of the general public could make five law, ethics, economics, morality and social cohesion that minute presentations to the Commission. The first speak­ are beginning to surface." er, a leader of one of the homosexual AIDS groups, de­ Koop told the commission that it had to give prece­ nounced the slowness of the drug testing program and dence to these "highly sensitive issues of law, of ethics, accused Dr. Robert Gallo and Dr. Anthony Fauci of delib­ economics, morality, and social cohesion" over the sci­ erately holding up the development of drugs and treat­ entificissues of curing and preventing the spread of AIDS . ments for AIDS. He then treated the commission to a He then presented a series of "ethical conundrums," shaped litany of popes, cardinals, and saints, including Joan of in such a way as to argue against public health measures Arc and Saint Augustine, who were supposedly homosex­ against the virus, and, in fact enforce a fascist "let them ual! die" policy towards AIDS victims. Koop concluded with This was followed by the accompanying testimony of a plea for funding WHO's AIDS program, and forecast a NDPC medical coordinator, Dr. John Grauerholz.

group which is not presently a major source of transmission. AIDS policy at crossroads The appropriate American response to this challenge is Absent such a scientificcrash program, combinedwith a typified by the Apollo Program of President John F. Kenne­ real economic recovery, public health measures alone will dy, which mobilized the nation to a great commitment and not stop the disease, and any time they buy will be wasted. created the climate of cultural optimism of the early 1960s . This program will require billions of dollars to implement, America's unique strength is its capacity to undertake such but, like the Apollo program, will repay the investment more great tasks of technologic mobilization and succeed. This is than tenfold, and reestablish our cultural commitment to why Lyndon H. LaRouche, and the National Democratic growth and development, while providing our only hope of Policy Committee, have called for the implementation of a ultimately stopping the AIDS pandemic. If we persist in the BSm, a Biological Strategic Defense Initiative, which would present economics and culture of stagnation and decay, then create a multidisciplinary scientificmobilization to apply the the AIDS virus and many other infectious organisms, which most advanced technologies of biophysics to AIDS in partic­ in their own way are committed to growth and development, ular, and the life process in general. will prevail over us.

EIR September 18, 1987 National 67 Elephants & Donkeys by Kathleen Klenetsky

Trump card­ sian Gulf deployment, a deployment Defense Secretary Caspar Weinberger but whose is it? has identified as crucial to prevent the The latest (tentative) entry into the Re­ further spread of Soviet influence in publican Party presidential race is New the Mideast? York construction king Donald Trump. Talk aboutchutzpah ! Trump's qualifications boil down to owning big Robertson on the skids Jackson and the chunks of prime New York City real estate, and a hefty slice of the mob­ Other Republican contenders are fall­ Democrats' dilemma linked Resorts Internationalgambling ing by the wayside. Paul Laxalt has Jesse Jackson made it official on La­ casino in Atlantic City. bowed of the race , ostensibly because bor Day: He will be a candidate for the Rumors have been circulating for he couldn't touch George Bush on the Democratic presidential nomination. months that Trump was eyeing a pos­ fundraising front. (Bush has already Jackson's not-unexpected declaration sible presidential run. They took on accrued a whopping $10 million war coincided with a Time magazine poll, substance in early September, when chest, leaving all his competitors, showing the political associateof Nazi­ Trump let it be known that he had ac­ Democrats and Republicans, in the admirer Louis Farrakhan with the cepted several speaking engagements dust.) highest ranking of the Democratic in New Hampshire, and at the same Now the news comes that televan­ field: 26%. time shelled out $ 100,000to purchase gelist Pat Robertson has put his an­ That high of 26% underscores the full-page ads in the New York Times nouncement plans on hold. Robertson dilemma facing the Democratic Party: and other key newspapers, assailing said last year he would formally enter It's moved so far left, most voters con­ the Reagan administration's current the race Sept. 17 if he got 3 million sider it beyond the pale. According to Persian Gulf military deployment. signatures endorsing his candidacy. Al From, director of the Democratic The ads claimed that, ''The world But he's fallen far short of that Leadership Council, a group estab­ is laughing at America's politicians as goal. As of early August, he had gath­ lished by Sen. Sam Nunn (Ga.) and we protect ships we don't own, car­ eredonly 1 million signatures, and on former Gov. Chuck Robb (Va.), the rying oil we don't need, destined for Sept. 3, campaign spokesman Scott Democrats have "ceded to the Repub­ allies who don't help," and suggested Hatch indicated that Robertson would licans the winning issue of economic that the United States slap a "tax" on almost certainly delay formally an­ growth, opportunity, and strength." Japan and other American allies to pay nouncing whether he will become a "No single factor contributed more for the deployment. candidate until October. to the party's electoral decline than its Trump's particularly nasty and Sources say that Robertson, who identification with ideas, causes, and uninformedattack on Westernstrateg­ has reaped the whirlwind of the PTL values foreign to most Americans," ic interests, came just weeks after he and other scandals which broke this From said in an address at the Ameri­ traveled to Moscow, to hold prelimi­ year, may end up calling it quits. He can Political Science Association con­ nary negotiations with Mikhail Gor­ certainlyhasn 't learned muchfrom the vention in Chicago Sept. 3. bachov and other Russian officials on Irangate scandal: In a speech to a Re­ "If our candidates spend most of building some of his trademark glitzy publican group in Miami Sept. 4, their time before audiences of isola­ hotelsin Red Square.(Apparently, like Robertson encouraged Nicaraguan tionists or pacifists in Iowa, they are most of the Democratic presidential Contra leaders to form a government­ likely to take positions that hurt them hopefuls, Trumpthinks it necessaryto in-exile, and asserted that the key to a with key swing voters in the general get the Kremlin's green light before "free Nicaragua" includes monetary election." From also criticized "ele­ running forthe White House.) aid outside normal government chan­ ments in the party who are estranged Could it be that Trumpis trying to nels. from its mainstream roots, exhibiting curry favor with Moscow for his pres­ Who knows? Maybe Robertson an affinity for cultural radicalism, at idential bid (and maybe get a good entertains thoughts of running for home, and an extreme reluctance for deal on his proposed Soviet business President of Nicaragua someday, now the United States to exert its power ventures in the bargain) by trying to that his prospects in the United States abroad." rally public opinion against the Per- look so poor.

68 National EIR September 18, 1987 Eye on Washington by Nicholas F. Benton

ness to give a fair assessment of La­ Communists have permeated the me­ Rouche will earn him more , as he dia, schools, and colleges, every area knows. of influence on the thinking and prej­ Washington columnist He reported that a column he wrote udices of Americans." upbraids press corps on LaRouche, in which he dared to He said that this has resulted in "a say that the Justice Department was bias of the media against anyone who It is unusual these days to witness a engaged in a blatant violation of the thinks about the democratic needs of credible journalisttake his profession­ Constitution, by shutting down a the people." al colleagues to task as forcefully as newspaper and two scientific maga­ He blasted the press for its indif­ nationally syndicated columnist Ralph zines, "earnedme the hatred of fellow ference to the Justice Department's De Toledano did here Sept. 9, when conservatives. " outrageous actions in closing down the he testified before the Fact-Finding By traveling to Europe and the LaRouche-linked publications last Committee of the Commission to In­ Middle East to interview one of the April. "I can't think of a single in­ vestigate Human Rights Violations in most controversial figures of our age, stance so blatant in American history, the United States. De Toledano was only doing what al­ yet only one small Washington D.C. While he devoted most of his tes­ most any good journalist would have publicaton [a weekly giveaway tab­ timony to the impressions made on leapt at in the "good old days," when loid called the City Paper] covered him and his wife by presidential can­ journalists were interested in report­ what should be a national cause ce­ didate Lyndon LaRouche during a six­ ing on the news. lebre for the protection of freedom of hour meeting recently in West Ger­ But that's not joumalism any more . the press." many, he left time in his remarks to Popular opinion is all that counts, not De Toledano gave three reasons lash out at the media with a force that a scoop on the truth . De Toledano will why he thinks LaRouche is being at­ matched any "unbridled rhetoric" he be villified by his peers for saying tacked so viciously: has attributed to LaRouche from time something fair about a man they've all First, he said, "LaRouche is a to time. agreedto writeoff as a kook or a crook. threat to the Establishment, to the Of course, De Toledano has been They never stop to examine why they Eastern secret government and the used to taking some hits from the "Es­ adopted that agreement, except that powerful international banking inter­ tablishment" media himself over the their editors told them to , and that it ests. From their point of view, he must years, particularly for his strong views coheres with their own anti-nuclear, be destroyed, whether by ridicule, on issues of national defense. But then, anti-Sm, pro-drug prejUdices. The fact diatribe, or legal persecution." that's due in large part to the fact that they have never read anything by He added, "Lookwhat they did to he knows a few things, especially LaRouche-well, most of them don't Barry Goldwater. He tried to divorce about Soviet penetration of the insti­ read anything-and bother to know the Republican Party from the Eastern tutions of power, including the gov­ only enough to get them past their next Establishment and look what they did ernment and media, in the United assignment. to him." States. Second, he added, "LaRouche has Friend of three (Republican) Pres­ a logical mind. " Instead of just calling idents, author of 19 books, including 'Utter corruption' someone's views erroneous, La­ two novels and a book of verse, De Rouche will see how they lead to a of the media Toledano had a role in the circum­ Soviet advantage, and that logic will stances surrounding the defection of De Toledano told the Committee, lead him, therefore, to call that person Soviet diplomat Yurchenko and in ex­ when asked why the media so uni­ a Soviet dupe. That creates a great posing Soviet "scientist" Alexan­ formly accuses LaRouche of being an deal of bad blood. (De Toledano him­ drov's "nuclearwinter" hoax. "extremist," that "this is a sign of the self doesn't hesitate to accuse the na­ Serious and knowledgeable about utter corruption of the national me­ tional media of being heavily pene­ the national security interests of the dia." He said this corruption includes trated by Soviet disinformation.) United States as few of the intellectual "the penetration of Soviet disinfor­ "The third thing militating against pygmies of the Washington press corps mation which has permeated upward him," he concluded, "Is that the worst are , De Toledano admits he has made and downward in the liberal commu­ thing you can be in American politics, some enemies of his own. His willing- nity," adding, "Over the years, the is right."

EIR September 18, 1987 National 69 National News

a militarily insignificant violation of the S.C.), who has chaired SOl investigations ABM treaty ...the Krasnoyarsk radar vi­ for the House Armed Services Committee, olation goes to the heart of the ABM treaty ." saying that those Democratic presidential U.S. will close Jim McCrery then said the Soviets "have candidates who have attacked the SOl "could committed themselves, years ago , to ... have to eat some of their words." officeof the PLO serious ABM development, and . . . to de­ u. S. Deputy Secretary of State John White­ ployment as well. And we see that ...in head announced on Sept. 10 that the United the area of large radars . . . in particular, States would close down the Washington, the Krasnoyarsk radar, ... the world's D.C. office of the Palestine Liberation Or­ largest ...the world's most powerful ra­ FBI sought arrest ganization (PLO). dar. . . . It can track large numbers of ob­ The decision came while 49 senators, jects very accurately. The data from that of Lyndon LaRouche including Ted Kennedy (D-Mass.), Paul Si­ radar can be used for any number of purpos­ The FBI case agent on the Boston "La­ mon (D-III.), Barbara Milkuski (D-Md.), es to include early warning, attack assess­ Rouche investigation" tried to get an arrest Jesse Helms (R-N.C.), and Alfonse D'A­ ment, battIe management and other kinds of warrant for presidential candidate Lyndon mato (R-N. Y.), are pushing their Anti-Ter­ ABM-related functions." LaRouche during the gigantic raid of Oct. rorism Act, which calls for closing the PLO He added that the radar facility could be 6, 1987. in which a paramilitary force of offices in Washington and at the United Na­ completed in "about two more years. . . . It nearly 400fe deral and state officialsinvaded tions. takes a long time to build these radars ." the small town of Leesburg, Virginia. According to press reports, there was an Completion of the network of "nine large On the evening of Oct . 6, LaRouche, internal fight within the State Department phase array radars is projected to be com­ suspecting a plot to jail him and kill him, over the issue, with Assistant Secretary of pleted sometime in the early '90s, and so, sent a personal telegram to President Rea­ State Alan Keyes, Ambassador-at-Large conceivably, deployment of the engage­ gan, warning that an attempt to arrest him Paul Bremer, and legal counsel Abraham ment systems, the ABM sites ... could would be tantamount to an effortto assassi­ Sofaer supporting the decision, and Assis­ beginat that time or even before that time." nate him, and that he had done nothing wrong tant Secretary of State Richard Murphy of Gaffney concluded: "We should re­ to warrant being imprisoned . the Bureau of Near East Affairs opposing it. member there's another tradition in the So­ Testimony in fe deral court in Boston on viet Union, indeed going back to the time of Sept. 4 by FBI Special Agent Richard Egan the Czars, and this is the phenomenon of is the first official confirmation that a plot to showing people what you want them to see. arrest LaRouche at that time in fact existed. And this, perhaps, reached a highwater mark Egan's bombshell disclosure came during Pentagon refutes claims in the time of Catherine the Great and the testimony in a pre-trial hearing in the U.S. Potemkin Village ....[KrasnoyarskJ may v. The LaRouche Campaign case. about Soviet facility well be the Potemkin radar." Egan said that following his reading of In responseto statements by three congress­ notebooks in the office of LaRouche's as­ men who toured the Soviet Union's Kras­ sociate Edward Spannauson the morning of noyarskradar fac ility, casting doubt on Pen­ Oct. 6 (anaction not authorized by the search tagon charges that it is a violation of the warrant), he· rushed out to a nearby raid ABM treaty, two Pentagon officials have SDI will go into command post to consult with FBI and Jus­ given a complete briefing on the nature of tice Department officials. "I thought there the facility to the press. new experimental phase was a basis for additional arrests," he testi­ FrankGaffn ey, the designated secretary The Pentagon will soon announce that its fied. "I thought there was probably a basis of defense for international security policy, top policy panel, the Defense Acquisition to arrest Spannaus and to arrest LaRouche." and Defense Intelligence Agency strategic Board, has approved six satellites, weap­ When asked why the additional arrests programs officer James McCrery gave the ons, and control systems for a demonstra­ had not taken place, Egan responded lamely briefing on Sept. 9. Said Gaffney, "This tion phase of the Strategic Defense Initiative that it took a long time to "digest" the evi­ radar is a ballistic-missile detection and that could lead to their development as a first dence. (Perhaps "manufacture" would have tracking radar. As such, it is a clear-cut vi­ generation defense in the mid-1990s, ac­ been a better word.) In fact, it took the Jus­ olation of the ABM treaty. . . . cording to the Baltimore Sun Sept. 6. tice Department almost eight months, until "We didn't need on-site inspection ... The Sun comments that this new phase June 30, 1987, to finally indict LaRouche. to determine that ....We disagree cate­ will "further solidify SOl as a national fact Spannaus was indicted on Dec . 16, 1986. gorically with the contention that this is .. of life," and quotes Rep. John M. Spratt (D- Egan did not return to the premises until •

70 National EIR September 18, 1987 Briefly

• THE TEAMSTERS ran a full­ 11:30 p.m.-over 13 hours later. The long stemmed from his love of knowledge. page ad in the Washington Post on time interval, and the pattern of FBI and Moreover, in the Crito, the sequel to the Sept. 6, denouncing the Justice De­ police deployments on Oct. 6, suggest that Apology, Socrates refused to leave Athens partment's bid to put the union in re­ an intensive debate took place during the for another city, even to save his life. Where ceivership. The text: "Takeovers of afternoon as to whether or not to arrest and else could he go, he asked, where he would unions are nothing new-Commu­ jail LaRouche, which was probably not re­ be as free to philosophize? nists and Fascists have been doing so solved until LaRouche's telegram was sent "Like her modem descendant, America, for decades. It's a sad day in the his­ to President Reagan that evening. Athens was not a perfect society. But also tory of the United States and the like America, Athens was a free society-a American labor movement when such society that was free to perfect its imperfec­ tactics are even considered. AMER­ tions. As such, she won the allegiance of the ICA ...it can't happen here. Or can man who was to know , and who knew best it?" Weinberger appeals how to be free . " • MOSCOW'S U.S.A. and Cana­ to academics on SDI da Institute is putting out the evalua­ Secretary of Defense Caspar Weinberger tion that Massachusetts Gov. Mi­ spoke on Sept. 4 at the University of Wyo­ chael Dukakis will win the Demo­ ming, on the roleof the university in defense Report says U.S. cratic presidential nomination, but of a free society. "I would like to argue to that Sen. Robert Dole (R-Kan.) will you today that there is no conflict between will break ADM treaty be the next President, reported the the aims of the academy, and the defense of The Reagan White House has set the stage English newspaper The Independent our freedom in the nuclear age ," he said. for abrogating the 1972 ABM treaty , ac­ on Sept. II, citing Moscow diplo­ "Indeed, I see a great harmony, and even a cording to a report prepared by the Congres­ matic sources. fulfillment of those rightful aims of our great sional Research Service and released Sept. educational institutions. I believe that aid­ 4. The report saidthat the public record does • ARMAND HAMMER was in ing in the construction of SOl is only a part not provide conclusive proof, "however, if Moscow during the last week of Au­ of a larger obligation and a major opportu­ the administration does determine to begin gust. In an interview to Izvestia col­ nity for our colleges and universities to help the process of withdrawing from the ABM umnist Melor Sturua, he bragged that defend our republic and our freedom." treaty, it has laid important legal, political, he will celebrate his 90th birthday in "Given the real world in which we live," and diplomatic groundwork to that end." Washington in 1988, "But my lOOth he concluded, "it is not only consistent with The report, commissioned by SOl op­ birthday I promise to celebrate in the purposes of the university to assist in the ponent Sen. William Proxmire (D-Wisc.), Moscow." development of the StrategicDefense Initia­ said the case being made for breaking out of tive; it is a fulfillmentof the university's real the ABM treaty parallels that made for • MARIO CUOMO intendsto seek purpose, which is to defend the soul of free dumping SALT II earlier. "I think Congress advice from Henry Kissinger, Zbig­ society through discovery, debate, and should be on the lookout for a surprise from niew Brzezinski, and Richard Nixon, learning, and the pursuit of truth." the administration," said Proxmire, noting before headingoff to the Soviet Union · Weinberger invoked the example of that the United States and Soviet Union are Sept. 19. "I wouldn't go to Russia Socrates, to demonstrate how the man of slated to conduct a formal reviewof the treaty without talking to Nixon," the New ideas figures in the defense of his nation. "If this year. York governorsaid . I wereto search for a model of that man who Groundwork has been laid in several best embodied the love of free inquiry and areas: 1) The White House has accused the • IRVING BROWN, a long-time the love of free citizenship, it would be Soc­ Soviets of violating the treaty, and said the Europe-based operative of the AFL­ rates. He said in the Apology that Athens violations give Washington the right to CIO's InternationalDepartment, had was committing a graveinjustice against him withdraw; 2) U.S. officials have made nu­ a brain hemorrhage at the last meet­ by condemning him to death. Defiantly, merous public statements during the past ing of the International Labor Orga­ Socrates vowed never to cease from exam­ several years, to the effectthat the Russians nization in November 1986. Since ining the grounds of the well-lived life. Yet are poised to breakout of the treaty; 3) The then, "he has had periods when he he always fought his city's battles and was White House has promoted the "broad" remembers he's the old Irving. For known for his great courage in her defense. interpretation of the treaty, which would other periods, he doesn't know who He claimed that both his questioning of Ath­ permit aggressive testing and development he is," said an associate. ens and his willingness to defend his city of the Strategic Defense Initiative.

ElK September 18, 1987 National 71 Editorial

When the Japanese go marching out

Never before in the course of financial events, have so into the American Treasury debt market threatened the many done so much for so fe w. So it appears to the safety of the Japanese banking system itself. European and Japanese central banks . After printing Japanese institutions purchased a junk bond of sorts , $70 billion of their own currencies to purchase unwant­ namely the obligations of the V.S. government; their ed dollars during the first half of this year, America's trading losses on such purchases could wipe them out. trading partners have exhausted their capacity to sub­ Market reports are circulating that at least one of the sidize Washington's uncontrollable deficit. top eight Japanese banks has landed in serious trouble So much for the Reagan administration's pathetic , as a result of its V.S. speculations. The Japanese bank­ doomed effort to postpone the great financial reckoning ing system simply cannot continue buying American until after the 1988 elections. The White House has paper that has depreciated, on foreign-exchange shifts lived off the printing presses of foreign central banks alone, by 45% in the past two years , and lost an addi­ since late in 1986. tional 15% of its price due to the decline of long-term Now, just as the federal debt -ceiling cliffhanger bond prices in the V. S. market itself. reaches its end-September denouement , just as the Third To make up their losses on such purchases , they World debt crisis reaches a new pitch of intensity , and must speculate in bond futures and other financial in­ just as 10,000 bankers gather in Washington for their struments, rai sing the danger that the initial loss may annual Walpurgisnacht at the International Monetary be multiplied. That is what happened to Takeho Chem­ Fund, the other central banks shut down the game . ical , and the Japanese authorities decided to make it a July's $16.5 billion trade deficit, an astonishing horrible example, before much larger institutions went $198 billion at an annual rate , was not the last straw. the same way. That broke the back of the big subsidy two weeks ear­ Within days of the Takeho Chemical announce­ lier, when the Federal Reserve decided to blackmail the ment, the European central banks (as reported else­ Germans and Japanese , by holding back from foreign­ where in this issue) wheeled the covered wagons into a exchange market intervention to support the dollar, circle , preparing to insulate the European Monetary while the dollar plummeted from OM 1.90 to OM1. 79, System from a dollar crash . in one of history's fastest descents . It is not as if the Japanese and European central Fed chairman Alan Greenspan threatened his col­ banks had made a decision to let the V. S. banking leagues, in effect, with a dollar crash that would ruin system crash, a prospect they abhor. On the contrary: all of th em, in an overt blackmail attempt, aimed at The rudderless state of Washington compels them into forcing them to continue their huge volume of dollar an accretion of small, unavoidable actions; each of these purchases. actions, by itself, intends to postpone the inevitable, He received a response that shook world bond mar­ but the sum of them brings the inevitable closer. kets , and forced long-term Treasury bond yields up to Washington must force through a top-down reor­ their highest level in two years . Japan, Inc . placed the ganization of developing-sector debt, and an emergen­ severed head of Takeho Chemical on a pike in the cy program to provide trade-credits in cooperation with marketplace, as a stem warning to speculators . The its trading partners , such as EIR founder Lyndon H. American bond markets promptly crashed. Why? LaRouche , Jr. , has presented in various published lo­ For months, Japanese officials, and astute market cations. Pr esident Reagan must drop the illusion of observers , have known that Japanese banks' plunge recovery, before the illusion drops him.

72 National EIR September 18, 1987 In Decemb er 1986, EIR Alert told its readers about Brazilian discussion of a debt moratoriUm. On Feb. 20, 1987-it happened.

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1 $410. 6 mo. $255. South America: yr. State ______Zip ___ _ 3 mo. $140. Make checks payable to EIR News Service Inc .. Europe, Middle East, Africa: 1 yr. DM 1400. P.O. Box 17390. Washington. D.C. 2004 1- 6 mo. DM 750. 3 mo. DM 420. Payable in 0390. In Europe: EIR Nachrichtenagentur deutschemarks or other European currencies. GmbH. Postfach 2308. Dotzheimerstrasse 166. 62 Wiesbaden. Federal Republic of Germany. Asia and Oceania: 1 yr. $550. 6 mo. $300. telephone (06121) 8840. 3 mo. $150. We 've ripped the mask off Gorbachov's 'glasnost'

in EIR 's netpest special report

GLOBAL SHOWDOWN ESCALATES The Zero Option and the Berlin crisis of 1987

• On the we ekend of August 22. mass demon­ If the We st gives in to Gorbachov's "glasnost." strations were held in the Baltic re publics of andsigns a Zero Option deal with the Krem­ Latvia. Lithuania. and Estonia demanding lin, there won't be democracy and "open­ the liberty of those nations fr om the terms of ness," let alot;le peace. the 1939 Hitler-Stalin Pa ct-which subjected them to the crushing domination of the So­ There will be Mo scow's total war-a combina­ viet Union. tion' of regular and irregular warfare against We stern civilization-in alliance with the old • On August 23 . Radio Mo scow accused the Nazi International and the drug trafficking demonstrators of "questioning the legality of mafia. the 1939 German-Soviet non-aggression treaty"-the notorious Hitler-Stalin Pact!

EIR 's special report pulls together 350 pages of documentation, maps, and charts to show why the Hitler-Stalin Pact is still the key to Soviet fo reign policy. The intelligence in this report cannot be obtained from any SPECIAL other source-even with a top security clear­ ance. This is the book that will stop the Zero Option sell-out in 1987. REPORT $250 per copy. postpaid.

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