'Augustine is the originator Tour the of the modern Western Solar System Year-round conception of the creative with and rational individual� 21 st CENTURY'S 1990 Calendar

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Shipping: $1.50 for first book, $.50 for each additional book. Or, order both volumes of the Schiller, Poet of Free­ dom translations (Vol. I contains the play "Don Carlos," poems, and essays) for $25.00 postpaid. Founder and Contributing Editor: From the Editor Lyndon H. lARouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson and Susan Welsh Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Allen Salisbury, Edward Spannaus, Nancy Spannaus, t is Thanksgiving week in the United States, and indeed we must Webster Tarpley, William Wertz, Carol White, I Christopher White all be thankful to God for the new birth of freedom that we are Science and Technology: Carol White witnessing in EasternEurope. But the traditionally bountiful Thanks­ Special Services: Richard Freeman Book Editor: Katherine Notley giving dinner is becoming a thing of the past; the food supply is Advertising Director: Marsha Freeman shrinking as dramatically as the "turkey" pictured on our cover, Circulation Manager: Cynthia Parsons endangering the precious freedom for which so many have risked INTELLIGENCE DIRECTORS: Africa: Mary Lalevee their lives. Agriculture: Marcia Merry In Chicago over the first weekend of November, representatives Asia: Linda de Hoyos Counterintelligence: Jejfrey Steinberg, from five continents (North and South America, Asia, Europe, and Paul Goldstein Australia-New Zealand) met to discuss frankly the dimensions of the Economics: Christopher White European Economics: William Engdahl, world food shortage, and to map out the programs needed to reverse Laurent Murawiec the crisis. A major feature of their proceedings was the fight for Ibero-America: Robyn Quijano, Dennis Small Medicine: John Grauerholz, M.D. freedom against tyranny, because whether the solutions to starvation Middle East: Thierry Lalevee will ultimately be applied, is a political question. The Feature pre­ Soviet Union and Eastern Europe: Rachel Douglas, Konstantin George sents a panorama of that conference's panels on the food production Special Projects: Mark Burdman issues. United States: Kathleen Klenetsky Otherwise, our attention is very much directed toward Europe: INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura from the visit of Poland's Lech Walesa to Washington in mid-No­ Bonn: George Gregory, Rainer Apel vember, covered-by our D.C. correspondent William Jones (p. 56); Copenhagen: Poul Rasmussen Houston: Harley Schlanger to a report on how developments in Berlin are effecting a peaceful Lima: Sara Madueno revolution in Europe, filed by Rainer Apel from our bureau in Wies­ Mexico City: Hugo L6pez Ochoa, Josefina Menendez baden, West Germany (p. 26); to the crucial policy formulations Milan: Marco Fanini of EIR founder Lyndon LaRouche, reported in the lead article in New Delhi: Susan Maitra Paris: Christine Bie"e Economics (p. 4). Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio, Stefania Sacchi The former chief of general staff of Switzerland's Army, Lt. Stockholm: Michael Ericson Gen. Jorg Zumstein, has granted EIR an exclusive interview which Washington, D.C.: William Jones Wiesbaden: Garan Haglund we print on page 42. On the war on drugs, we have an exclusive expose of the plans EIRIExecutive Intelligence Review (ISSN 0273...(j314) is of the drug lobby to defeat the efforts of Colombia to militarily smash published weekly (50 issues) except for the second week ofJuly and last week ofDecember by EIR News Service the drug traffickers, at the gathering of the "Drug Policy Foundation" Inc., P.O. Box 17390, Washington, DC 20041'()39O (202) 457-8840 in Washington, D.C. (p. 58). Stockholm correspondent Ulf Sand­ Europltln HetUltilUlrlers: Executive intelligence Review Nachrichtenagentur GmbH. Postfach 2308. mark reports on the trip of Colombian pro-drug presidential candi­ Dotzheimerstrasse 166.0-6200 Wiesbaden, Federal Republic of Gennany date Samper Pizano to Europe, which ties into the European branch Tel: (06121) 8840. Executive Din:cto",: Anno Hellenbroich, Michael Liebig of the legalization conspiracy (p. 40). In Peru, voters have trounced In Delllllllrlc: EIR, Rosenvaengets Aile 20,2100 Copenhagen the narco-terrorists and their sympathizers at the polls-but they OE. Tel. (01) 42-15-00 III Mexico: ElR. Francisco Dlaz Covanubias 54 A-3 now have to steer clear of the "free market" version of the same evil, Colonia San Rafael,Mexico OF. Tel: 705-1295. embodied in Wall Street's favorite Latin American pornographer­ JIIptJII .ubscripllo" .lIks: O.T.O. Research Corporation. Takeuchi Bldg .• 1-34-12 Takatanobaba,Shinjuku-Ku, Tokyo novelist and presidential candidate Vargas Llosa (p. 37). 160. Tel: (03) 208-7821. Copyright © 1989 EIR News Service. All rights ",served. Reproduction in whole or in part without pennission strictly prohibited. Second-class postage paid at - Washington D.C., and at an additional mailing offices. 3 months-$I25. 6 months-$225. I year-$396. Single issue-SIO Postmaster: Send all address changes to ElR, P.O. Box 17390. Washington. D.C. 20041-0390. TIillContents

Interviews Departments Economics

42 Lt. Gen. Jorg Zumstein 13 Report from Rio 4 German unification could The former Chief of the General Narco-finances in Brazil. spark economic recovery Staff of the Swiss army warns The fears expressed by Wall Street against yielding to a political drive 50 Dateline Mexico wizards and London financiers in Switzerland to deprive the nation Salinas "Informe," a string of lies. abounhe grave dangers of a unified of an army to defend itself. Germany dominating Central 51 From New Delhi Europe, are so irrational, that it's Sinhala terrorist group decapitated. clear they're more interested in money than in real economics. Economist Lyndon LaRouche gives 52 Andean Report some advice. M- 19: wolves in sheep's clothing.

6 Poland's illegitimate debt 53 Panama Report problem OAS gives lukewarm support to On top of Soviet looting and U.S. communist mismanagement, Poland got hooked by the same 72 Editorial 1979 Westerndebt trap as Ibero­ No more balance of power politics. America.

8 Argentina's Menem faces growing strife

9 Currency Rates

10 America's pension funds are in jeopardy

11 Bankers won't invest in aged shipping fleet

12 Agriculture 'Free trade' is killing farmers .

14 Business Briefs Volume 16 Number 47, November 24, 1989

Feature International National

26 Poland, Germany, France 56 Lech Walesa calls for at the core of changes in Marshall Plan for Poland Central Europe But all he has received so far, is Out of the political shambles of the symbolic gestures, instead of the postwar order, a great new political massive economic assistance alliance is emerging in Central Poland really needs. Europe, bringing hope that true economic and political justice can 58 Drug lobby plans prevail. counterattack on behalf of pot, cocaine cartels 29 British, Soviets team up The plans unveiled at the Drug 16 The world food crisis is against Germany Policy Foundation's Nov. 2-4 here: Will war follow? conference are a major threat to The third international Food for 30 Gorbachov postpones national security. Peace conference, held in Chicago reform agenda on Nov. 4-5, could be the turning­ 61 Did the U.S. have advance point in efforts to halt the willful warning of the Lockerbie sabotage of agricultural production 31 Why Beijing fears the which is bringing the globe ever Berlin upheaval bomb plot? closer to general war. Summaries Documentation: The investigative and extracts of speeches delivered 32 Pacific Soviet 'new report on PanAm Flight 103 at that conference lay out the depth thinking' not matching released by Congressman Traficant. of the crisis as well as the policies deeds in military sector needed to reverse it. By guest columnist "Argus." 64 Defendants in New York 'LaRouche' case file motion 18 Make 1990s a decade to end 34 Socialist International for new trial starvation maps out new plan to help The dismissal of the government's Communist parties fraudulent involuntary bankruptcy 20 Where the world food crisis action, opens up new possibilities for a fair trial . stands now 35 Political stalemate continues in Pakistan 22 U.S. Agriculture Dept. 66 Eye on Washington Democratic hawks sharpen talons. turns green 37 Peruvians vote mandate for total war on Shining Path 68 Congressional Closeup 24 The crisis of U.S. food terrorists production 70 National News 40 ADC exposes pro-drug Samper in Sweden

47 The 'Tiny' Rowland file: Part III

54 International Intelligence TIillEconomics

; German unification could , spark economic recQVeIY

In an article Nov. 13, entitled "Potential Power: Two Germa­ "The authors have no understanding of the relationship nys United Would Pose Challenge to Other Economies," between the Federal Republie's economy and the rest of the Wall Street Journal endeavored to show the impact of the European economies, and therefore they don't have the German unification upon the world economy. ability to construct the future relationships within an inte­ However, the article "was misguided in two principal grated German economy, som�thing which has become im­ respects," noted congressional candidate and political prison­ mediately feasible, and the consequences for Europe as a er Lyndon LaRouche from his cell in a federal prison in whole. Minnesota, where he continues to enjoy a much finer grasp "One should simply look," LaRouche continued, "first of world events than do the Bush League bunglers who put at the normal life of transportation: of water, coastal and him there. canal capacities, railroads and highways, and then at the "First," LaRouche said in a letter to the editor of that question of energy development. Nuclear energy for the newspaper, "there are the authors' attempts to resurrect the G.D.R. would eliminate that country's dependency on lig­ old bogeyman of unified German power in the center of nite. It would clean up the mass of silt which blows into the Europe. The flightinto mysticism in paragraph 6 of the article Federal Republic every day because of this reliance on coal. in the sub-section' Potential Threat, ' is exemplary. Whatever "I've tracked through thesei things, to take up immediate­ is truthful in the account is rendered nonsensical by the im­ ly the effect on Poland, and then, the enhancement of the puted mystique of German power worthy of the irrationality effect on all of Eastern Europe. Because, with the normal, of some modernist romantic in art. historical lines of trade along the coast, combined with the "Secondly, your account actually understates the poten­ rail networks and the inland waterways-like the Danube­ tials developing from what has been set afoot in Europe. In once these are opened up for dejVelopment, and the necessary fact, it is so far off the mark that one would have to presume infrastructure is supplied, very high rates of development that the present generation at the Wall Street Journal is so become possible. This was the approach I outlined at a press preoccupied with money matters that they no longer under­ conference held in West Berlin's Bristol Hotel on Oct. 12, stand what economy is all about. 1988. "The point is that there is no bogeyman arising out of the "For the G.D.R., where energy infrastructure and pro­ developments now under way. The very opposite is the case. ductivity are not bad relative to standards in WesternEurope, There is a tremendous potential for good, not only for Eu­ the main problem is what is being looted out of the economy rope, but also for the entire world. Who, after all, is going by the Russians-extra capital, in the form of technology to save the United States from the self-imposed consequences and improvements in infrastructure. Were that looting re­ of the last 25 years or so of folly, in the form of the slide into duced, the G.D.R. 's skilled workforce would rapidly show the liberals' post-industrial society, environmentalist insani­ very significant gains in productivity. And then the G.D.R. ty, and rock-drug counterculture, unless Europe develops the becomes a consumer, as well as a supplier, of the rest of the productive potential to make that possible? integrated physical European eeonomy. This gives the entire

4 Economics EIR November 24, 1989 economy a tremendous boost! There's no question about it. the unification is occurring on the highest and best moral We should be doing it. basis possible. "So," LaRouche concluded, "there is no bogeyman aris­ "The second aspect of the unificationprocess is economic ing out of developments under way. What ought to be cause development, primarily of the physical economy. The main for concern is the dangers that arise from not pursuing that problem-aside from Soviet looting-is a shortage of basic course as vigorously as possible. When we get momentum infrastructure. This means water management, and you can going in economic development in the areas indicated, then put most of the environmental problems under fresh-water we delay, instead of accelerating, the crisis in the East bloc. management. The basic energy, transportation, and commu­ As long as the Russians see growth in the West, they are nications systems must also be upgraded. going to want to benefit from it. It is when they don't see "If this is done, as I've suggested, with review of Po­ growth, that they will become desperate, and reach out and land's development in mind, so that you have, actually, a grab what they need. We have to get a juggernautof potential European participationin Germany's key role in the develop­ production going, so that the Russians drool at the prospect ment of Poland, along the railroad artery axis, as I've pro­ that such production will be available to help get them posed, then we have an effectively European Community through the brutally tough upcoming winter. In that case we solution to Poland, and an EC economic development um­ have possibilities to control the situation, whereas those who brella for the unificationprocess occurring between the West want to terrorize the West by raising the old 'bogeymen' and East portions of Germany. " nonsense and demanding that we 'go slow, go slow,' are The second general area concerns the Warsaw Pact and actually helping create circumstances for gravest crisis, and NATO, LaRouche said, where there is a major difference in ensuring that our resources for combatting the crisis will be the missions of the two sides. The only reason for the pres­ at their least. " ence of Soviet troops in East Germany and the Bohemian region of Czechoslovakia, he noted, is for a "pre-emptive What the U.S. must do Soviet attack to the West, in the spirit of the Tukhachevsky "The U. S. policy respecting the unification of Germany," Plan of the Offensive's positioning of Soviet paratroop and advised LaRouche in another statement, "must be premised other forces back in the mid-1930s. It's an offensive position, on the understanding that it is the sovereign right of each pure and simple." people to choose its own national destiny, and that any pro­ On theother hand, LaRouche stated, the NATO forces cess of unification, we hope, will come as an affirmation of in West Germany represent no such offensive threat. They a choice by the people of the G.D.R. are , incapable of launching offensive war. "We can, there­ "Now, the question then becomes, upon what basis fore ," he said, "consider a doctrine respecting the area which would the United States recognize a process of unificationof is presently the EasternEuropean section of the Warsaw Pact, the two Germanys? This divides into two questions: first, as thateach of the nations in question can decide on a sovereign it respects Central Europe, without consideration of the two basis whether or not to allow any foreign troops on its territo­ strategic military blocs; and second, as it affects policy re­ ry. And secondly, the West can generally accept, I believe, specting the two strategic military blocs in Europe. the proposition that we will not station any of our troops in "The first question, the unification itself, should not be such territory , if the Russians pull out. premised on the East Germans accepting formally any so­ "Now, this would give the Russians what they have want­ called 'free market'principles or pluralism per se as an ideo­ ed in one respect: the zone of neutralization relative to the logical concept, as dictated by Thatcherism, or similar ideol­ two pacts' positionsin Europe. And I think that the President ogies somewhat popular currently in certain circles in the of the United States and others should consider making such West. Rather, we must say that the two Germanys are spiritu­ an offer, at least, in philosophical terms of reference, as ally united by the Weimar Classic culture associated with opposedto a concrete, detailed offer, which might be impru­ such figures as Friedrich Schiller and Beethoven, the Hum­ dent to advance too rapidly. boldts, vom Stein and others. "But in general, on the unificationof the two Germanys, "The key , therefore , to the unification of Germany has there is a spiritual basis epitomized by Schiller and Beetho­ two aspects. The leading aspect is spiritual, the affirmationof ven, and an economic basis epitomized by Friedrich List­ Beethoven, Schiller, and other examples of Germanclassical the opponent of Marx. This unification process, so shaped, tradition, as the point of active unity betweenthe two portions must be endorsed and desired by the U.S. as the onlyfe asible of Germany. This is illustrated by the free concerts provided German solution, rather than an abstract one .... in West Berlin to those who came, virtually penniless, to "TheUnited States should recognize that any such devel­ visit West Berlin from the G.D.R. The cultural unity of opment in Europe cannot but be to the benefit of Japan, the the two Germanys, and the question of the proper classical United States, and sundry other nations of the planet as a cultural spirit, means a unification process in which we in whole. We must support it, especially politically, and with the United States, and other places, could be confident that suitable formsof cooperation. "

EIR November 24, 1989 Economics 5 Poland's illegitimate debt problem

As in [bero-America, Poland was victimized by the 1979 Western tra�n top qfSoviet lootingand mismanagement. By William Engdahl.

In the recent pious pronouncements from various Western tractor imported from western Europe or the United States. capitals about aiding Poland to become the first Warsaw But all else was not equali In 1979 a Western"debt trap" Pact economy to make the transition from communism to a was sprung. Poland was caught in the jaws of one of the most "market economy," nothing has been said about the prime pernicious "scissors' crises", of recent history. Like many reason, other than the incompetence of communist economic Ibero-American countries, Poland had fallen into the trap of methods, that Poland is an economic catastrophe today. The taking "cheaper" bank loans via the London-based Eurodol­ West has locked Poland into the bankruptcy of Westernmon­ lar markets. Initial interest charges were noticeably lower, etarist accounting, ever since it lured Poland's government and were without the onerousidomestic policy termsof loans into the "promised land" of prosperity in the 1970s premised from the InternationalMonetlP)' Fund. The loans, as with all upon borrowing dollars and Deutschemarks to financeindus­ such loans, had a small paragraph inserted by the banks: trialreform. The actual details are worth reviewing. Interest rates were not fixed for the term of the loan; they First we must reexamine the history of Poland's Western "floated" as the London Inter-Bank Offered Rate (LIBOR) debt crisis. During the mid -1970s, the Polish governmentof went up or down. Edward Gierek, coming into power following a wave of Before October 1979, few paid much attention to that protest strikes in 1970, launched a series of economic reforms fact. That October, Federal Reserve Chairman Paul Adolph and industrial projects with the promise of better times for Volcker imposed his "monetary shock" to prop up the U.S. the Polish people. The projects were largely financed with dollar, then at a postwar low of DM 1. 70. The high interest Westernbank credits. By 1976 Poland, the largest and poten­ rates in the United States forced rates higher across the West­ tially most viable industrial nation in Eastern Europe, had ern capital markets. Bank rates soared close to 20% levels. contracted some $10.7 billion in hard currency debt. That Debtors such as Poland suddenly saw their debt burden ex­ year imports from Western industrial nations almost topped plode beyond belief: the wonders of Western banks' com­ $7 billion. pound interest tables! By 1979, Poland's hard currency debt had grown to $17 From interest levels of 9% in 1978, U.S. bank prime billion. When compared with the size of foreign debt of rates soared to almost 20% some 15 months later, in March Mexico or Brazil, this figure seems small. But there is a 1980. This increased Poland's annual interest rate burden by crucial difference. Since 1945 Poland has been a Soviet­ more than 100%, or 150% of annual hard currency export occupied nation, with Russian tanks and bayonets enforcing earnings! its political and economic policy. Poland is not trading with merely Western nations, but is being ripped apart from both Background to unrest West and East. Its largest trade is with the U.S.S.R. So, by This explosion of Poland's interest burden in 1979-80 1979, of the precious hard currency reserves Poland had was the real background to the domestic unrest, strikes, and accumulated to purchase needed Westernmachinery and oth­ government austerity. Imports were suddenly canceled in the er goods, the nation was forced to allocate $5.5 billion alone midst of construction of new projects. In domestic Polish to service its $17 billion Western currency debt. As a share terms, new investment plunged 9% in 1979. Agricultural of its annual hard currency export earnings, Poland was output also fell, imposing food shortages. By 1980 Poland already paying a staggering 74% for amortization of debt and had a collapse in meat production of almost 20%. That July payment of interest on the debt. the government increased meat prices by 90%. The lid blew off, as protest work stoppages spread, demanding compensa­ The price of inftation tion for the higher prices. Already by early 1979 Western inflation was soaring The Gierek government handled the situation poorly to at 12-14% annual rates in key OECD economies. This say the least. By December 1981, on orders from Moscow, meant, all else remaining equal, Poland was forced to pay Poland imposed martiallaw underGen. Wojciech Jaruzelski. 12-14% more each year for the same machine tool or farm In response, Westerngovernments broke offdebt reschedul-

6 Economics EIR November 24, 1989 ing discussions. This gave a de facto "moratorium" for Po­ sending the current Mazowiecki governmentthe same disas­ land until 1985, when martial law was finally lifted. This trous austerity message it has given to every victim debtor hiatuswas the principal reason Poland's officialhard curren­ nation since 1982: Slash imports and boost exports to repay cy debt remained relatively fixed indollar terms, rising only the debt. To control resulting domestic inflation and elimi­ from$25 .4 billion in 1981 to $26.9 billion by 1984. Poland nate state budget deficits, the IMF demands Poland freeze had almost $10 billion in arrears in payments to Western wages and devalue the zloty massively. The zloty has been creditors by January 1985. repeatedly devalued since 1985, usually 20% at a time. This means in real physical economic cost that a Polish worker Rolling debt over dead bodies must mine 20% more coal to get the same value of German But when Poland resumed Westerncreditor debt resched­ machine tools, or farm 20% more pigs for export to get the uling negotiations in 1985, the devil ran wild again. By the same value German tractor, aftereach devaluation. end of 1986, Poland's government had concluded the third But Western officials privy to senior IMF circles say "rescheduling" agreement with the 17 Westerngovernments Poland will get only peanuts in return for again committing in the so-called Paris Club of government creditors. West national economic suicide. It will at most get an IMF credit Germany, through its state "Hermes credit," was the largest of $700 million and, once it imposes IMF austerity, perhaps such creditor. another $400 million World Bank loanin 1990. But the Paris Since 1985, Poland has gained apparent short term relief Club debt burden will continue to grow. Clearly, if Western in various "grace periods" from Paris Club governments in governments are serious about helping the nation of Poland the West, at an enormous cost of shifting current interest feed and provide for its population, they will find a way to payments due to be added as principal for the total outstand­ bury the old debt forever, as they did with West Germany in ing debt to be paid at some definedfuture date. This is called the 1952 London accord. After all, no matterhow the Polish by Westernbankers, "interest capitalization. " It is one of the governmentmay have misused the original amount, the vast most insane and dangerous practices which have flourished majority of the debt is illegitimately being imposed on Poland in the internationaldebt crises of the past decade in the West. by a Western financial structure which has changed the rules Because of Paris Club government agreements since of the game repeatedly to suit the interests of select Western 1985 to capitalize the interest due, Poland's hard currency banks. debt has risen. Today, total Western debt, expressed in U.S. dollars, has soared to some $40 billion, some Westernbanks say even $45 billion, because of the various reschedulings. By end of of 1986, Paris Club creditors held some two thirds of Poland's total debt of$33.5 billion. Today, according to CONSULTING an estimate from Britain's Barclay's Bank, currently head of Poland's bank creditor committee, Paris Club governments ARBORIST hold 75% of Poland's total $40 billion hard currency debt. Available to Assist in The growth of Poland's Western currency debt, from $25 billion in 1981 to $40 billion today-a nominal increase of The planning and development of 6Oo/o--eomes from turning usurious and illegitimate interest wooded sites throughout the continental payments due into principal due at a future date ! United States as well as Thisdoes not account for the mismatch between Poland's debt being denominated largely in dollars, while most ex­ lI�rI:�The development of urban and ports, which they use to get new hard currency to pay the suburban planting areas and debt, are to West German or related D-markregions in West­ ern Europe, for which they receive payment in D-marks or The planning of individual Swiss francs. Since February 1985, the time Poland resumed homes subdivisions or negotiations with Paris Club creditors, the dollar has plum­ industrial parks meted from a high of DM 3.20 to a level near the postwar lows of the late 1970s, DM 1.75-1.85-a 44% drop ! For Poland, this has been devastating. Not only must the country For further information and availability orientto so-called "hard currencies," but it is being destroyed please contact Perry Crawford III by the instabilities among those same "hard currencies." Since it re-joined the InternationalMonetary Fund inJune Crawford Tree and Landscape Services 1986, Poland has entertained a desperate hope for getting 8530 West Calumet Road . new IMF Standby Credits as a firststep to large new infusions Milwaukee, Wisconsin 53224 of World Bank "Structural Adjustment" loans. The IMF is

EIR November 24, 1989 Economics 7 fined by the IMF and foreign creditors. A major goal of the Menem government is to restore Argentina's image with the international financial community, to convince the bankers that Argentina is a responsible debtor. The country owes $64 billion in foreign debt, and is $5 billion in arrears in interest Argentina's Menem payments. In response to the early November strikes, the Argentine faces growing strife President took a hard line. On national television he called the strikes "the work of sectors that resist reform," and vowed by Cynthia Rush to shut down transport and railroad companies whose work­ ers went on strike. He threatened to commandeer buses, if necessary, to keep transportation going. The relative calm of Argentine President Carlos Menem's The letter of intent signed with the IMF promises to first four months in office came to an abrupt end on Nov. 6, reduce the country's fiscal deficit, and overhaul the state when transport workers paralyzed metropolitan Buenos Ai­ sector through an extensive privatization program, while res in a strike over wage demands. Workers from the mer­ opening the country up to private foreign investment and chant marine, airlines, petrochemical, and subway compa­ lowering tariff barriers to imports. Restriction of wages is nies joined in sympathy, and only on Nov. 13 did the trans­ a key element in the program. Menem insists that "the port strike end. Workers from the powerful Union of Metal­ objectives of this government will not be negotiated, lurgical Workers (UOM) threatened to carry out sporadic regardless of who likes it, who cries, or who protests ... strike actions over the following two weeks, in pursuit of an whatever it costs." 80% wage increase, and numerous other unions are planning This is not what a large part of the Peronist labor base strikes over wage demands. envisioned when, during Menem's election campaign in late After six years of the social democratic regime of Raul 1988 and early 1989, he described his plans for a "productive Alfonsin, in which real wages declined by 30%, workers revolution." Many workers hoped this program would mean aren't willing to accept Menem's decision to restrict wage a reversalof Alfonsin's policiesof submission to IMF austeri­ increases to no more than 15%. Thanks to Alfonsin 's applica­ ty dictates, and a return to the dirigism which had character­ tion of the International Monetary Fund's (IMF) policies, ized the policies of Gen. Juan Per6n. Instead, they have one-third of the Argentine population, or 9 million people, seen the multinational grain cartel company Bunge and Born now lives in extreme poverty. Of 32 million people, 14 mil­ dominate government economic policies, with input from a lion have no potable water, and 17 million have no access large number of liberal free-IIDarket economists. Adalbert to sanitation services. Despite Menem's initial success in Krieger Vasena, an ultra-monetarist adviser to several mili­ reducing inflation and granting a one-time wage increase, tary juntas, and morerecently to Alfonsin's government,has social and political stability in the country remain fragile. just been formally incorporatedinto the government econom­ Buenos Aires' financial community suffered a bad case ics team. of the jitters in response to the transport strike, reflected in Following the resolution of the transport strike, in which the 14% decline of the austral against the dollar by Nov. 10. workers won a raise from 36,000 australs (about $55) to On the same day, the government deployed police into the 80,000 (around $106), Menem has adopted a more concilia­ city's financial district to clamp down on currency specu­ toryline toward labor, for the time being. He called on Interi­ lation. or Minister Eduardo Bauza and Sen. Eduardo Menem, his Nor is the situation inside the Armed Forces likely to brother, to quickly organize a summit meeting of all labor remain calm, following the Army high command's decision leaders to try to bring about the unity of the labor movement, to "retire" nationalist Col. Mohamed Ali Seineldin. An­ and advance toward the creation of a "social pact" of wage nounced on Nov. 1, this action completely ignored Menem's and price controls to be agreed upon by labor, business, and pardon granted Oct. 6 to Seineldin and 180 other officers. the government. The President's action eased tensions which had been long In mid-October, the General Confederation of Labor festering within the Army; but the retirement of Seineldin, (CGT) split over the issue of whether trade unions should and subsequent imposition of administrative sanctions on criticize the government economic program. CGT Secretary several officers--despite the pardon-is a provocation General Saul Ubaldini, who has been publicly critical of the which has heightened military discontent. Bunge and Bornprogram, and defended labor's right to strike against these policies,was ousted fromhis position by Mene­ Creditors call the shots mista leaders close to Labor Minister Jorge Triaca. Ubaldini Menem's conflict with the Peronist-run labor movement quickly threw his support behind the transport workers in stems from his decision to pursue an economic program de- their recent action.

8 Economics EIR November 24, 1989 On Nov. 17, Menem will speak before a large Peronist gathering in Buenos Aires' Plaza de Mayo, in an effort to C urrency Rates reassert his leadership of the Peronist movement and appeal for unity behind his government's program. Prior to that The dollar in deutschemarks event, Menem will meet with labor leaders from both the New York late afternoon fixing Ubaldinista and Menemista factions for further discussion. On Nov. 15, he also met privately with Ubaldini, at the 2.00 latter's request. 1.90

� Consensus for what? '- � I- Some analysts speCUlate that the Peronist President's ap­ 1.80 peal to the Peronist party leadership, attempts to unify the 1.70 labor movement, and even opening channels of dialogue to

Alfonsfn and his Radical Civic Union (UCR) represent an 1.60

attempt to broaden the political and social consensus for his 9127 1014 10111 10118 10125 1111 1118 11115 government's structural reforms. It will take more than conciliatory speeches to resolve the The dollar in yen New York late afternoon fixing conflicts in Argentine society, however. A demonstration by 2,000 workers in Cordoba in early October, over plans to ISO privatize their state-run company, offers a hint of what kind of social protest might be expected on a broader scale if 140 � "'- economic conditions fail to improve. --

It remains to be seen how Menem will deal with a brewing 130 military crisis, in which the fate of the popular and respected

Colonel Seineldfn is a key issue. Following his announced 120 retirement, the colonel reportedly addressed a letter to Army Chief of Staff Gen. Isidro Caceres challenging him not to lIO violate the terms of Menem' s pardon by arbitrarily imposing 9127 1014 10111 10118 10125 1111 illS 11115 administrative sanctions on those officerswho benefitedfrom The British pound in dollars it. New York late afternoon fixing Reportshave circulated that, despite the high command's decision, Menem might name Seineldfn to head up an elite 1.90 commando force to combat subversion and drug trafficking. As reported in the Nov. 16 Cronista Comercial, Justice Un­ 1.80 dersecretary Cesar Arias announced that a decision on the group's formation would be announced within the following 1.70 10 days, adding that Seineldfn's nomination had not been 1.60 - ruled out. The Nov. 8 edition of Somos magazine indicated, - � "--''" however, that the U.S. embassy in Buenos Aires is pressur­ I.SO

ing the government not to name "that colonel" to any such 9127 1014 10111 10118 10125 1111 illS 11115 post. The Army high command is similarly opposed, as is Defense Minister Italo Luder and Interior Minister Bauza, The dollar in Swiss francs according to this report. New York late aftemoon fixing On Nov. 11, speculation heightened when Colonel Seine­ I.SO ldfn and a group of 500 officers, many of them nationalists recently forced out of the military, participated in a high­ 1.70 profile two-hour jogging and exercise session in Buenos Ai­ res' Palermo Park. Journalists present received no response .-/ 1.60 � .A.. to their questions on whether this group might form the core -- of the rumored "special forces" contemplated by Menem. 1.50 The President has characterized the session as a "provoca­ tion" to the Army high command, although reportedly the 1.40 same officers intend to congregate regularly each Saturday 9127 1014 10111 lOil8 10125 1111 illS 11115 morning.

EIR November 24, 1989 Economics 9 How much of this represents actual crime, and how much represents the government's attempt to find scapegoats for its own failed economic policies, remains to be seen.

Insurance deficit America's pension The Pension Benefit Guaranty Corporation is the quasi­ government agency responsible for insuring the nation's pri­ funds are in jeopardy vate pension plans. It was created by ERISA, the Employee Retirement Income Securities Act of 1974, and was modeled after the Federal Deposit Insurance Corporation and the Fed­ by John Hoefle eral Savings and Loan Insurance Corporation, which insured deposits at the nation's banks and thrifts. The u.s. private pension system has been seriously jeopard­ The comparison to deposit insurance is quite apt, as many ized by a combination of economic collapse and insider abuse, observers think that the PBGC will collapse even morespec­ threatening the retirement plans and standard of living of mil­ tacularly than did the FSLIC. 'Fhe PBGC lost $1.5 billion in lions of Americans. The money that many workers have set 1988, and a 1987 study by the Government Accounting Of­ aside for their retirement will not be there when they need it. fice predicted that the pension insurance agency would be There are some 872,000private pensionplans in the Unit­ insolvent by the year 2001. ed States today, covering 76 million retired and currentwork­ "If they go bust, the taxpayer picks up the bill-just like ers, with reported assets of about $2 trillion dollars. What the S&Ls," said Joe McGowan of the Labor Department percentage of those assets actually exists is not known, due to Inspector General's office. the lack of regulatory oversight over private pension plans. The bulk of the PBGC's losses thus far have come from While the Pension Welfare Benefits Administration of the the beleaguered steel industry, with the LTV bankruptcy and U. S. Department of Labor has the responsibility for enforcing pension plan termination a case in point. That deficit could pension laws, it has a mere 300 inspectors, or one for every double, however, if the major airlines now in financial diffi­ 2,900pension plans. culty have to be bailed out, according to PBGC Executive In 1989 the Labor Department has audited only 1,553 Director James Lockhart. private pension plans, less than 0.2% of the total, and found Even if the Pension Benefit Guaranty Corporation were that 492 of them-almost one-third of those scrutinized in to remain solvent and meet alIi of its obligations-a highly 1989-were violating the law in some manner. Among pen­ dubious supposition-it would still fall far short of protecting sion plans audited between 1985 and 1987, violations were the nation's pensioners. The PBGC guarantees only 107,000 found in one out of four. Were full-scaleaudits of all of the private pension plans, covering !,ome40 million participants, nation's private pension funds to be made, the results would which means that 765 ,000pension plans, covering 36 million be staggering. participants, are not insured at all. Many of these violations are serious. Raymond Maria, the Labor Department's Acting Inspector General, recently told Leveraged blow-outs the Associated Press, "There's an insidious and steady si­ One of the more outrageous uses of pension money is phoning off, which ultimately affects employees. I am con­ the funding of leveraged buyouts, which are notorious for vinced there is substantial fraud and abuse, the extent of which throwing workers at the targe1led companies out of work. no one knows." Maria wants to force the private accountants According to a study by the Government Accounting Office, who audit the pension plans each year, to report any prohibited four out of every ten companies taken over in leveraged transactions directly to the Department of Labor. But the best buyouts have terminated their employee pension plans, and way to avoid fraud and embezzlement, he said, is to throw used the "surplus" funds to pay down their debt. more of the violators in jail, rather than merely fining them. Aside from the blatant immorality of using workers' pen­ Maria's officeinvestigated 168 pension and welfare plans sion funds to throw other workers out of their jobs, the lend­ in late 1987, and found $18.7 million in misused plan assets ing of pension funds for leveraged buyouts is quite risky and administrative violations. The survey grew out of the financially. At the end of 1987, the nation's public and pri­ I.G. 's Office of Labor Racketeering, which deals mostly vate pension funds owned 15% of the nation's junk bonds, with unions. "Through the labor unions we learned a lot worth a reputed $18 billion. As the recent junk bond collapse about schemes," Maria said. "Kickbacks, embezzlement, conclusively demonstrates, those bonds are worth far less conflicts of interests and other criminal violations were also than their nominal value, hitting the already weakened pen­ occurring in single-employer benefit plans. A new breed of sion funds which bought them with major losses. racketeers could be found in the ranks of attorneys, accoun­ The pension fund crisis is a time bomb, the explosion of tants and service providers." which will dwarf the savings and loan crisis.

10 Economics EIR November 24, 1989 Exxon Valdez is a fine piece of equipment, compared to the rest of the world's tanker fleet. But how does it stand up against the sophistication of safety features we see in the airline industry? Not well. And the reason is the shipping Bankerswon't invest industry has been building basically the same equipment for the last 20 years. That is shameful." Many seafarers are increasingly reluctant to serve on old­ in aged shipping fleet er ships, viewing them as increasingly hazardous to operate . The United States and other Western maritime nations have by Anthony K. Wikrent simply failed to produce a steady stream of well-trained, qualifiedmariners. Moreover, they have failed to offer more The results of years of net disinvestment in maritime shipping secure careers and better pay in order to retain older, more are making themselves felt, as the selling price of used ships highly skilled mariners. soars, and the Western nations face crippling shortages of This presents a classic case study of how economic break­ skilled mariners. However, marine financiers are signaling down in a society that loses its commitment to scientific and an increasing reluctance to underwrite the construction of technological progress spawns a process of cultural pessi­ new ships, as warnings increase that the world's fleet is dan­ mism and decay, which decimates skill levels, further accel­ gerously old. erating the rate of breakdown. Bowing to the pressure of the bankers, in late August Shipowners are now hoping that Eastern European coun­ three major maritime registering services, Lloyd's Register tries might be able to supply them with skilled seafarers. At of Britain, Det Norske Veritas of Norway, and Nippon Kaiji least one U. S. shipowner is looking to the Soviet Union for Kyokai of Japan created a new classification standard that skilled officers and sailors, and has been in discussions with allows ships over 15 years old to remain in service without Soviet officials, the Journal of Commerce revealed Nov. 9. penalty. The classifications are widely used by insurance The article reported that Westernshipowners are "desperate" syndicates and regulatory agencies to assess the risk of own­ to find qualified people to man their vessels. West German ing and operating a particular ship, and to determine premi­ and Norwegian owners are reportedly suffering shortages of ums charged by insurers and fines levied by government qualified electricians. regulators. View of the vultures $25 billion needed each year Despite the chorus of warnings, the financial vultures The shipping industry will need $25 billion each year in who have feasted off the remains of a collapsed world econo­ the 1990s, to replace its aged crude carrier fleet alone, Paul my, are signaling that they have no intention of financing the Slater, chairman of an investment bank that specializes in construction of new ships. At an "Investing in Shipping's ship finance, told shipping executives attending the Bulk Revival" conference held by Lloyd's ofLondon Press in New Transpo '89 conference, in September. Slater pointed out York in late October, not one banker or financier could be that 285 of the world's 400 very large crude carriers (200- found willing to even indicate an interest in new ship con­ 400,000 deadweight tons) are over 13 years old, the original struction. Adrian Doherty, a vice president of the blueblood design life for a VLCC built in the mid- 1970s. He estimated J.P. Morgan Bank, told the conference, "The ship market is that more than 50 VLCCs will have to be built each year, exposed to general economic conditions" that disfavor new beginning in 1992, with a unit cost of well over $100 million. investment. "The economic pressures on transportation will "The most immediate problem we face," Slater told the continue to limit the returns [on investment] available in the shippers , "is an elderly fleet of poorly maintained and rela­ shipping industry." tively inefficient ships carrying an ever-increasing range of Just what level of "retum" are the bankers looking for? A environmentally hazardous cargoes. They need to be re­ vice president of Citicorp's London branch, Citibank N. A., placed, and quickly, tankers in particular. ...There have announced that they were no longer investing in speculative been some horrendous unexplained marine casualties just purchases of used oil tankers because the 30-35% profit they recently. We had one ship that just disappeared off the face expected could no longer be achieved in the current market. of the earth. We had a chemical tanker that simply blew up. John Newbold, a senior vice president of Citibank in New Here we are going into the 21st century and these kinds of York, offered a chilling picture of how the bankers view things are still happening. The fleet is not only over age, but affairs, when he told a conference in October that another it's technically obsolete." disaster like Exxon Valdez may have a salutory effect: "To Pointing to the Exxon Valdez disaster, Slater said marine the extent that any accident is going to cause Congress to insurers and the ship finance community will pay dearly for clamp down [on safety regulations], that would only force the failure to invest, especially in new technology. "The freight rates up."

EIR November 24 , 1989 Economics 11 Agriculture by Robert L. Baker

'Free trade' is killing farmers production and reduced per capita de­ The U.S. is promoting the Trilateral Commission'sfree-trade mand. The Mexican National Cattle Confederation hopes to export 1 mil­ recipes, but some fa rmers are wising up . lion head of cattle to the United States during 1989-90--almost twice as many as in 1988-89. This is the free-trade nightmare Last April, with great fanfare, U. S. son said, predicted significant de­ that Yeutter is pushing, and many Special Trade Representative Carla clines in farmer incomes in most of farmers artd bureaucrats have been Hills and Secretary of Agriculture the industrialized nations, if the U. S. suckered into supporting it. Clayton Yeutter unveiled a new U.S. GATT proposal to dismantle farm Even the Concentration/Integra­ "free-trade" plan, which they said programs were implemented. "Con­ tion Task Force of the national Cattle­ would eliminate "trade-distorting" ag­ sumers will see large year-to-year men's Association came out in sup­ ricultural policies in major industrial­ swings in the prices of various food port of the suicidal free-trade line and ized countries. The plan was submit­ products due to the boom-and-bust recommended against governmentin­ ted to the General Agreement on Tar­ nature of free market agriculture," tervention to halt the cartelizing trend iffs and Trade (GATT). he said. He predicted that "consum­ toward fewer and larger operations The position of the United States ers will become more dependent on and integration of operations in differ­ in the GATT talks directly parallels uncertain foreign supplies and more ent industry segments. the initial free-trade policy paper put subject to the vagaries of a marketing Sam Washburn of Indiana, the forth by a Trilateral Commission­ system that is being concentrated task force chairman, pointed out that sponsored task force in 1985, which into fewer and fewer commercial the task fo rce was not advocating was headed up by Clayton Yeutter entities," if the U. S. plan is carried structural change. "If we are commit­ himself . out. ted to the freeenterprise system, with­ But it looks like the Hills-Yeutter The Japanese and the Europeans out government intervention and sup­ proposals are running into trouble. are equally opposed to the U. S. pro­ ports, then we must accept change and Farm leaders from the United posal, since they can see by looking, make individual decisions that will States, Japan, and Western Europe for instance, at the consolidation of make the best use of our particular re­ met in Tokyo at a symposium on Nov. the U. S. beef industry,how thousands sources." 14, sponsored by Japan 's Central of beef producers have been put out of Because of the free-trade policies Union of Agricultural Cooperatives. business due to price-depressing im­ pushed by the Reagan and Bush ad­ Many denounced the idea of total lib­ ports into the United States of low­ ministrations, today the United States eralization of farm trade, and the gath­ priced beef. finds itself the world's largest import­ ering was unanimous in protesting the Japan would be hurt because it has er of oats, an importer of durum wheat U.S. trade proposals submitted to relied heavily on the family farmsys­ because of short supplies, and an im­ GATT. tem. Yeutter and Hills are trying to porter of both pork and beef because The president of the U. S. National pressure the Japanese to reduce their domestic production is below domes­ FarmersUnion, Leland Swenson, de­ trade barriers and allow more U. S . tic consumption. clared: "Free market proposals are too beef to enter the Japanese market,thus The USDA issued a report saying radical and unrealistic and would putting many Japanese beef raisers out that "for the first time in many years, bring chaos to world agricultural of business, as has already happened rises in retail dairy prices will surpass economies. " to their counterparts in the United those of all food." These prices are He cited a recent study by the U. S. States. climbing largely because milk pro­ Department of Agriculture's Econom­ Ironically, U. S. beef producers duction "unexpectedly" collapsed in ic Research Service, which attempted don't produce enough beef to meet the midyear, thereport says. At the same to measure the likely effects of the needs of U.S. consumers, and have time that U. S. milk shortages are be­ Bush administration's proposal to dis­ been importing cheap beef from Ar­ coming headline news, the USDA is mantle domestic farm support pro­ gentina and Mexico for years. The subsidizing the sale of milk products grams. U.S. producers have been told that to France, one of the world's largest The USDA's own report, Swen- their prices are depressed due to over- dairy nations.

12 Economics EIR November 24, 1989 Report from Rio by Silvia Palacios

Narco-finances in Brazil in Brazil warning that recent changes In addition to the refiningand smuggling of illegal narcotics, implemented in the Brazilian financial system could facilitate the laundering Brazil is now usedfor laundering drug money . of dirty money, and that such "advan­ tages" made the system vulnerable to conversion into a financial center of T he Brazilian government is cur­ Sao Paulo reported on the assertion by the drug trade. In particular, the new rently investigating a multimillion­ Minister Saulo Ramos that the period kinds of short-term investments and dollar foreign exchange scandal, of greatest expansion of the fraud co­ bearer bonds, created under the aus­ which, if proven to be a laundering incided with the beginning of the war pices of a monetarist governmentpoli­ operation for illegal narcotics profits against the drug cartels decreed by the cy designed to refinance the public as is suspected, could implicate the Colombian government on Aug. 18 of debt, were mentioned. entire liberal Brazilian banking sys­ this year. For example, on Sept. 21, a com­ tem as an important financialcenter of Deputy Attorney General Samuel mentary in 0 Estado de Sao Paulo the international mafia. Ruzaglo, assigned to investigate the noted: "In Brazil, money is laundered On Nov. 9, Justice Minister Saulo case, declared Nov. 11 that the fraud on the real estate market, in agricul­ Ramos and Federal Police Director could reach the fabulous sum of $3 ture, through companies. The finan­ Romeo Tuma, who for a long while billion-representing half the value of cial marketoffers an excellent alterna­ has been on the trail of mechanisms the nation's entire foreign exchange tive for investing money in a sure created exclusively for laundering reserves. "Those $360 million are thing, without declaring the origin of dirty money, reported the discovery barely the tip of the iceberg .... In the money and with the most complete of a sophisticated exchange fraud­ just one import invoice we counted anonymity. These are the investment the largest in Brazil's history-in­ $70 million," said Ruzaglo, who funds of the short-term bearer bonds." volving at least $360 million worth of added that at least 594 irregular ex­ Federal Police director Romeo false U.S. imports to Brazil, carried change contracts had been discovered Tuma, in a Sept. 24 interview with out by non-existent "paper" com­ thus far. The fraud is of such magni­ Jomal do Brasil, declared, "For us, panies. tude that the Central Bank has an­ the laundering of drug-trafficking Some 16 Brazilian banks, includ­ nounced it will be investigating all im­ monies that passed through Brazil was ing several prominent ones, mediated port operations for the past two years, only done in the Caribbean Islands, the fraudulent operations. They are: in order to detect any other such frauds according to the insistent charges of Bamerindus, Rural Estado do Ama­ that may possibly have been com­ the U.S. government.Today we know zonas, Geral do Comercio, Banorte, mitted. that that money is laundered in Swit­ Bozano Simonsen, Multiplic, Mer­ Since the fraud implicates several zerland, and in variousother countries cantil do Brasil, Unibanco, Noroeste, well-known American banks, Brazil­ where the banking system facilitates BNCC, Credito Real de Minas ian authorities are pressuring the U. S. such activities. There is nothing to Gerais, Banrisul, Economico and government to collaborate with their prevent the same game from being Lloyds. The four American banks im­ investigation. The Justice Minister played in Brazil." plicated are Bank of New England, said he hoped the U. S. "will liftbank­ Until now, the international drug the First Women's Bank, the First ing secrecy, since there are strong sus­ mafia has been using Brazil as the ide­ New York Bank for Business, and picions that drug traffickers are in­ al place to install its cocaine refining Manufacturers Hanover. Also in­ volved in the fraud." Needless to say, laboratories, given that Brazil pro­ volved are six exchange houses: Inter­ the implicated U. S. banks are exceed­ duces industrial-level quantities of union, Vetor, Fator, DC, Incaf and ingly nervous, and the Brazilian press ether and acetone, chemicals essential BMG. is already reporting that a delegation to the cocaine-refining process. It is The daily Gazeta Mercantil re­ of directors from Manufacturers Han­ also known to serve as a drug transport ported Nov. 10 that the Justice Minis­ over Trust will be arriving in Brazil corridor for routing drugs to Europe try considers the fraud, which dates shortly. and the United States. Now, it would back to 1987, to have been carried out After Colombian President Virgil­ appear, Brazil has been "graduated" "to launder money stemming from the io Barco announced his war on drugs, to the laundering of drug money as drug trade." The daily 0 Estado de various commentariesbegan to appear well.

EIR November 24, 1989 Economics 13 Business Briefs

Medicine planning that year with 75% practicing it," she Monetary Policy said. Army training surgeons Brazil ordered in inner cities to hyperinflate Environmentalism The U . S. Army has begun training its surgeons The London Economist magazine called upon for combat conditions in inner city emergency Conference stops short Brazil to hyperinftate its economy, in a mid­ rooms. Novembereditorial . Surgeons are being sent to intern at the of extremist measures "Hyperinflate, Brazil: It's the only thing Martin Luther King, Jr. -Drew Medical Center likely to get awful government off Brazilian in the impoverished Watts section of Los Under pressurefrom the United States and Ja­ backs," was the headline. The Economist said Angeles, where 353 gang-related slayings oc­ pan, the international conference on "global that more andmore "thoughtful Brazilians" are curred last year. The hospital treated 3,500 warming" in Noordwijk, the Netherlands, looking with "wild surmise next door to Ar­ traumacases last year-nearly 40% ofthe Los unanimously passed a compromise resolution gentina, where inflation is 6,000% a year." Angeles total . on Nov. 7 that refrains fromsetting firmgoals The Economist praised Argentine President "At King, we see the kind of penetrating for reducing carbon dioxide emissions. Carlos Menem for "startingoff exactly right, trauma that we just don't see at other hospitals. The original draft committed the 72 na­ squeezing inflation, starting a privatization It's a place where the residents will have to tions to hold levels of emissions to the present prograrn that stretches beyond the dreams of treat a large volume of high-velocitywounds, level by the year2000, avery large cut given any mere Thatcherite, and recruiting his eco­ the kind we would see in war,"an Army doctor theglobal increase in emissions of over 4% per nomic ministers fromLatin America's biggest told the Nov. 8 Los Angeles Times. year, especially in ThirdWorld countries that multinational company." are attempting to industrialize. The finaldraft The editorial concluded, "Argentina and, acknowledges "the need to stabilize" emis­ earlier,Bolivia suggest a lesson for all of Latin sions, and notes that "many industrialized na­ America:that only the shockof hyperinflation Population Control tions" believe such a goal should be reached can producethe politicalconditions needed for by the year 2000. It doesnot stipulate the level sensible economics. The lesson is even truer World Bank to increase of emissions it wants stabilized, saying that for Brazil's happy-go-lucky oligarchsthan for setting this goal should be put off until a world its neighbors. ' Anelection wish for Brazilians program funding climatological conference scheduled for No­ is swift takeoff into hyperinflation, to smash vember 1990, and pleges to adopt a compre­ the powerdfthe politicianswho have ruledyou World Bank President Barber B. Conable hensive internationaltreaty on global warming so badly." pledged on Nov. 7 that the bank would nearly by 1992. tripleits spendingfor population control, from Green fascists were upset at the failure to a $100million peryear average in the past five set draconian emissions cuts. "Less than six Real Estate years to a $266 million per year average over months ago in Paris, PresidentBu sh talked of the next threeyears. He pledged that he would the urgent need to reduce carbon dioxide emis­ Bush proposals designed "personally monitor our performance in both sions," said Brooks Yeager of theNational Au­ quality and quantity." dubon Society. "Now the White House has to help markets Speaking before the InternationalPlanned sabotaged the firstinternational effort to make Parenthood Federation in Ottawa, Canada, good on the President's words. This is not the President Bush, under the guise of promoting Conable said the bank would work with private way to lead the world. . . . The concept of home ownershipfo rthe poor,will proposereal groups to make family planning "an accepted stabilizing emissions without any commit­ estate subsidies to help out the real estate and practice for at least half the couples of the de­ ment to the level at which stabilization will oc­ mortgagemarkets and tryto postpone an inevi­ veloping world by the year 2000. " cur, must be regarded either as a failure of table deflation in property prices. Several population-control advocates still nerve or cynical ploy," Yeager concluded. The program will be dubbed HOPE­ condemned the bank'sproposed population Hans Blix, directorgeneral of the Interna­ "Homeownership, Opportunityand Prosperi­ policiesas not harsh enough. Sharon L. Camp tional Atomic Energy Agency, warned a ty for Everyone." Part of the package is $1 of the Population Crisis Committee, told the U.N.-sponsored conference in Washington, billion to encourage the poorto buy thedilapi­ press following Conable's speech at Ottawa, D.C. on Nov. 10, "We can'treduce emissions dated publi(:houses they live in, and thus take "There's a need to set tougher goals." Instead of carbondioxide without an expansion of nu­ these proNrties off the government books. of a goal of 50% of Third World couples prac­ clear power. "He added that even an expansion Another partwill de facto underwritemortgag­ ticing contraception by the year 2000,the goal of nuclear powermight not be enough to per­ es for properties for "very low income fam­ should be "universal availability of family mit a reductionof carbon dioxide emissions. ilies."

14 Economics EIR November 24, 1989 Briefly

One part willlease 10% of the single-fami­ for one cannot believe it is good medicine to • THE PRESIDENTS of Argenti­ ly houses in the Federal Housing Administra­ ignore future behavior which can only exacer­ na, Brazil, and Uruguay met in Bue­ tion's huge inventory of foreclosures, to the bate an individual's problems ....The truth nos Aires to discuss economic inte­ homeless at $1 per year, with provisions for is not in condoms or clean needles. These are gration. Brazilian President Jose Sar­ their eventual purchasethrough state and local lies, lies perpetratedoften for political reasons ney said, "Our three countries today agencies, tax writeoffs , etc. This would pre­ on the part of public officials, including public are pushing for an integration con­ vent these properties from going on the open health authorities, whose political future de­ cept, inspired by links and coopera­ market and depressing price levels of reales­ pends on their controlling the spread of tion which go back several cen­ tate and mortgages, while the taxpayer foots AIDS." turies." the bill. Gallo admitted that he avoided the moral Bush also signed legislation on Nov. 9 rai­ issues involved and said he thought O'Con­ • VIETNAM will be sent sing the ceiling of federally insuredmortgages nor's speech was "upsetting," because the $250,000 worth of surplus govern­ nearly 25%, to $ 1 24,875 fromthe currentlevel cardinal spoke from the position of someone ment medical equipment, the first of$ 1O 1 ,250, again, helping the mortgagemar­ with a strong belief in life afterdeath . "In this U. S. assistance since Saigon fell 14 ket to keep the bubble from bursting. world we live in, not everybody believes in an years ago. "It is a response to the afterlife," Gallo said. genuine humanitarian needs they have," a Pentagon official told the Nov. 9 Washington Post. Retirement Nuclear Energy • BOLIVIA declared a state of Baby boomers face siege on Nov. 15 to defend the killer Seabrook to produce austerity regime of Harvard's Jeffrey poverty-level existence Sachs against striking workers. The electricity by January Bolivian Workers Center said that at A study by a groupof insurance trade associa­ least 3,000 people were being held tions says that U.S. "baby boomers" will be The Seabrook nuclear power plant in New following pre-dawn sweeps on union too poor to retire at 65 . Hampshire could be producing electricity as officesthroughout the country. The study, conducted by six U . S. and Ca­ earlyas January, utility officials said, afterthe nadian actuarial societies, concludes that no federal Atomic Safety and Licensing Board • MONEY LAUNDERING will more than half of those reaching the age of approved on Nov. 14 the emergency evacua­ be the subject of a new monthly 65 between the years 2010 and 2028 will be tion plan presentedby the Federal Emergency newsletter published by Charles A. economically able to retire, becauseof I) inad­ Management Agency (FEMA) . Intriago, a Florida attorney , the Wall equate tax incentives to encourage sufficient The licensing of Seabrook has been held Street Journal reported Nov. 8. Intri­ employer pensions and personal savings; 2) up for years by Massachusetts Gov. Michael ago "concedes that nefarious ele­ too few workers to supportbaby boomers' so­ Dukakis's refusal to submit a state plan for ments in the world of financeare also cial security benefits;and 3) escalating and un­ evacuation. An executive order issued by Pres­ likely to benefitfrom" the newsletter, affordable health carecosts . ident Reagan in November \988, directing which will be called Money-Laun­ FEMA to prepare evacuation plans where dering Alert. statesrefused to do so, removed that particular obstacle. • THE WORLD BANK has a AIDS Opponents of Seabrook have 10 days to study on Africa under way called the appeal the finding, but an appeal will not nec­ "nightmare scenario," which extrap­ Vatican attacks essarily delay the licensing of Seabrookfor full olates into the next century present power operation by the Nuclear Regulatory trends in that continent regarding official U.S. policy Commission. Opponents, such as Attorney food production, environmental General James Shannon, and Sens. John Kerry damage, and population growth. New York Cardinal John O'Connor and U.S. (D) and Edward Kennedy (D) of Massachu­ AIDS researcher Robert Gallo clashed over setts, have vowed to continue fightingto pre­ • LESTER BROWN of the World AIDS policy on Nov. 13, at the first day of vent the startup, characterizingthe rulingas "a Watch Institute says that another year a Vatican-sponsored conference on the killer lawless decision," and "an arrogant action." of drought in the U.S. could double disease, according to Reuters. Scott Denman, the director of the ecological­ or triple grain prices, "no one knows Cardinal O'Connor said the spread of the fascist Safe Energy Communication Council, how much. It would send shock disease should be stemmed by people aban­ equated startingup Seabrook with "rebuilding waves through the world economy." doning what he called dangerous lifestyles. "I the Berlin Wall."

EIR November 24, 1989 Economics 15 TImFeature

The world fo od crisis is here: Will war follow?

by Marcia Meny

Seven hundred farmers , civil rights leaders, clergymen, concerned citizens, and resistance activists fromChina, the East bloc, and manyother locations, represent­ ing five continents and 35 U.S. states, convened in Chicago, Illinois Nov. 4-5 for the third international Food for Peace conference. The purpose of the two days' intensive deliberations was to analyze the full extent of the food crisis facing mankind-a catastrophe which has been deliberately hidden from public view­ and to prepare a worldwide mobilization of "farmers and eaters" to reverse the crisisbefore it leads to world war. Back in 1976, when politicaleconomist Lyndon LaRouche ran his firstcam­ paign for the U.S. presidency, he warned that such a breakdown in world food production would occur, if theinsane policiesof the zero-growthers were allowed to continue. Farms will go bankrupt,food productionwill collapse, and there will be mass starvation, he warned. Programmatic pro�sals to solve the crisis have been a prominent feature of the work of LaRouche and the political movement associated with him in the intervening years-to the dismay of the international monetarist factions and the foodcarte ls. In July 1988, at the presidential nominating convention of the Democratic Party in Atlanta, Georgia, LaRouche circulated a reportthat led to the founding of Food for Peace in September 1988. He warned, "TheU.S. and WesternEuropean agricultural policies have successfully destroyed world food reserves just in time for the arrival of the worst world drought in the 20thcentury! As a result, there will be a painful shortage of food within the United States and also in Western Europe. At the same time the Soviet Union will be faced with acute food shortages ....There will be the strongest pressures on the Soviet regime to use its military superiorityas a lever for solving the most acute aspects of its economic crisis." In view of LaRouche's unique and indispensable role in foreseeing the crisis and in proposingsolutions to it, theparticipants in thecurrent Chicago conference

16 Feature EIR November 24, 1989 Scenes from the Food for Peace movement: Above, thousands gathered at the White House oval on Martin Luther King Day, Jan. 16, 1989, to demand economic justice and fr eedom fo r LaRouche. Inset, spokesmen fr om the U.S., Lebanon, Germany, Great Britain, Ukraine, and Poland at the Chicago conference earlier this month.

vowed to mobilize in their respective states and countries to Other sessions addressed the breakup of the Soviet Em­ secure his immediate release from prison, where he is being pire and the potential for war; and also the alternatives for held as the result of a political frameup . Asia and particularly China, where millions are oppressed under the Beijing regime. Speakers from Ibero-America Expanding production spoke on the theme, "Grow Food, Not Dope," and gave a An entire world picture was presented to the conference battle report on the war on drugs there . from first-handreports , including speakers on the deprivation After these reports , a "tribunal" panel was convened to in China, the political purges and misery in Ukraine, and review the police-state measures now in effect in the United the collapse of once-booming farming in Australia and New States, against such leaders as Lyndon LaRouche, his associ­ Zealand. ates, and others who have been opposing the murderous eco­ The central question before the conference, and policy­ nomic policies resulting in the global food crisis and strategic makers worldwide, is when and how can food production be war danger. expanded, because otherwise, millions are dying and the The conference closed with a session titled "Environmen­ conditions for war are at hand. talism Kills," in which speakers cited the ways that bogus What characterized both the speakers and the audience issues of "environmental protection"-such as scientifically was a desire to initiate emergency actions. There were many unfounded worry over ozone holes or the supposed green­ proposals from the podium, and the conference as a whole house effect, were being used as an excuse for deliberate voted up three resolutions by acclamation. A resolution on policies to dispossess citizens and sovereign nations, and to aid to Poland specifieda five-pointprogram to provide food degrade and depopulate much of the world. and to rebuild the Polish economy. A second resolution The material presented in the pages below summarizes called on President Bush and other Western leaders to recog­ some of the reports made to the conference specifically on nize Lebanon's struggle to oust Syrian occupation forces; the agriculture and food crisis. In just the 14-month period and a third resolution called on world leaders to declare a since the founding of the Food for Peace effort, the question real war against drugs, including "full support for Colombian of the world food supply has become a strategic issue of President Virgilio Barco's war against the cocaine cartels." war or peace, as can be seen clearly, for example, in the The conference was organized to present the widest pos­ developments around Poland and East Germany. With the sible picture of the crisis and the resistance movements. The outbreak of an anti-bolshevik resistance movement in the meeting opened with the topic, "The Banking Blowout and East, the political conditions are now ripe for implementing the Collapse of Physical Production." Among the presenta­ exactly the kind of program that Food for Peace is now pro­ tions by 10 speakers were first-hand accounts of the forced posing-not only for Eastern Europe, but for the whole shutdown of farms in the food-exporting nations of France, world. This will be the subject of a follow up conference in Australia, New Zealand, and the United States. Europe at the end of November.

EIR November 24, 1989 Feature 17 Organization of the United Nations, is predicting an unprece­ dented hunger catastrophe. In Mozambique, the cereal har­ vest that was gathered in April-May is now largely exhaust­ ed, and the food supply is deteriorating rapidly. Food aid requirements as calculated by the FAO were 755,000 tons of grain for 1988-89; only 218,000 tons had been delivered, with no prospect for food aid deliveries for the current year at all. In Sudan, at least 100,000 tons of emergency food relief are needed, while 5.7 million hectares of cropland in Make 1990s a decade westernAfrica are currently infested with locusts, endanger­ ing not just the harvests there, but in all neighboring countries to end staIvation as well. At the World Food Conference in 1974, a "decade to defeat starvation" was announced. "Within the next decade, by Rosa Te nnenbaum no child will ever again go to bed hungry, no family will ever fear whether it will have enough bread for the following day, Mrs. Tennenbaum is a leader of the Food fo r Peace move­ nobody's mind will be crippled, and nobody will have to live ment in West Germany. The fo llowing are excerpts fromher without a future because of constant hunger." That was the speech to the conference in Chicago on Nov . 4, 1989. promise of the world's leaders in 1974. Today, 15 years later, the world food situation is worse than it was then, and nobody Around the world, as most of you know, the conditions of anywhere seems to care .... food crisis exist, and will worsen over the coming 12 months. This year's grain harvest will only be some 6% higher It is almost as if we can hear a section of the Lord's Prayer than last year's drought-stricken harvest. For the first time, coming from the developing nations, from the poor of East­ grain harvest will be lower than demand for the third consecu­ ern Europe , from the poor, the tens of millions of poor in our tive year. The FAO reports inthe October issue of its monthly own country: "Give us this day our daily bread." With these magazine Food Outlook: "Global output will be below aggre­ words, Lyndon LaRouche, who is now a political prisoner gate utilization for the third consecutive year. As a result, in the Rochester federal prison, opened the speech he gave during 1989-90, global cereal stocks will fall further from at our last Food for Peace conference on Dec. 10, 1988 in already low levels ....For at least one more year-i .e., Chicago. until 1990 harvests are gathered-global cereal stocks will We can hear this prayer remain at or below the minimum level FAO considers neces­ much louder today , if we sary to safeguard world food security. . . . still have ears to listen. We "The world food security situation will be very delicately see 160 million people, or balanced throughout 1989-90," the FAO summarizes the sit­ 30% of the population in uation. "Over the last three years the safety net provided by sub-Saharan Africa, being large cereal stocks has been eroded and the situation could subjected to starvation. We become potentially very volatile. Any unexpected reduction see 500 million people, or in output could well lead to reduced consumption and/or 40% of the population in higher international prices. Even assuming that there are no South and East Asia, suf­ unfavorable developments for the remainder of the 1989-90 fering hunger. We see 90 season, stock replenishment and a returnto normal consump­ million people, or 25% of tion levels would have to be postponed at least until 1990-91 the population in North Africa and the Middle East, threat­ and would be contingent on a substantial increase in produc­ ened with starvation, while 163 million in Ibero-America are tion in 1990" ...(s ee Figure 1). malnourished. And we see hundreds of thousands of people standing up in the captive nations of the Russian Empire The strategic dimension against hunger and tyranny. We react to this incredible In summer last year, LaRouche predicted that the food amount of genocide being committed in front of our eyes as crisis will become the most important strategic issue. He if it were only numbers . We seem to have no ears to hear and warned that the Russian generals will find means to get their no eyes to see. hands on our food, if they can no longer negotiate the huge Whole peoples, whole generations are being swept from amounts of food shipments they need to stay in power. Three the map right now, for instance in Africa. In Eritrea, the weeks ago, Soviet Foreign Minister Shevardnadze said ex­ northern part of Ethiopia, only 21% of a normal crop could actly that, when he warned the West of "hunger wars" in a be harvested this year. The FAO, the Food and Agriculture speech he gave in New York.

18 Feature EIR November 24, 1989 FIGURE 1 FIGURE 2 World per capita grain production falls sharply Decline in food stocks of European Community in late 1980s (in 1 ,OOOs of tons; grain stocks in 1 O,OOOs of tons) Kilograms 400 Food stocks 1 ,300 350 1 ,200 ------1,100 --...... 300 ..... Cereals 1,000 ...... 900 ..... 250 ..... 800 ...... 200 700 600 150 500 400 100 300

50 200 100 O �------r-----�------�------�----� O �------r------��- 1950 1960 1970 1980 1990 2000 1987 1988 1989

Source:USDA Source: European Community

If we want to prevent hunger wars, if we want to improve 4) Disaster relief for farms in the relevant regions. the food situation, we have to reverse the farm crisis. Agricul­ 5) Immediate action to develop fresh-water management ture today is in an overall state of collapse. Farm income is systems in areas threatened by water shortages. collapsing, indebtedness is growing in every single country. These measures have to be applied in all countries. In As a result of that, farms are going bankrupt at a rate that is addition to this, all programs that limit production now, hard to keep up with. In Germany, for instance, they expect namely set-aside and conservation programs, have to be can­ 400,000 farms out of 623,000 farms to go out of business celed. Farmland areas have to be expanded wherever possi­ before the year 2000. Of the 9 million farms we have today ble. This is of particular importance for Ibero-America and in the European Community, no more than 4 million are Asia. Yields have to be exceeded by mechanization, building expectedto be in operationby the year 2000 ...(see Figure irrigation systems, by developing better seeds, and similar 2). measures. We need all these measures together, otherwise Ever scarcer food supply is an imminent danger for we will lose the war. peace, and this danger is growing exactly the way that La­ We are entering a decisive decade, because world agri­ Rouche said it would, years back. The real danger that lies culture is on the verge of losing its capability to feed a grow­ in today's policy unfolds, when we look to thefuture . Today, ing world popUlation on a long-term basis. So we announce the world population counts 5 billion people. We need to today: The 1990s to be the decade to defeat hunger and triple agricultural output within 10 years, by the year 2000. misery. We swear: This is a tremendous task, and this perspective exposes the "That in the next decade, no child will ever again go to amount of insanity thatis guiding economic policy today. bed hungry, no family will ever again fear whether it will have enough bread for the following day, nobody's mind will The solutions are at hand be crippled and nobody will have to live without a future We have to reverse that policy and we have to reverse it because of constant hunger. " quickly. To do that, we have to mobilize all reserves avail­ And we will exceed that aim. Just to be free of hunger is able. We need an emergency programto be established im­ not enough. But it is the indispensable precondition for the mediately. Mr. LaRouche identifiedthe following points as well-being of the mind. And as Friedrich Schiller said in his the most importantones in his electoral program: poem, we say today: 1) An immediate stop to all farm foreclosures. 2) Raise farm prices to at least 90% ofparity . Dignityof Man 3) Restructure the debt at prime rates between 2% and No more thereof, I beg you. Feed him, give him shelter, 4%. Supply additional loan capital on a long-term basis and Have ye his nakedness clothed, and dignity comes on its at a rate below 4% . own.

EIR November 24, 1989 Feature 19 take control (by financial trickery or sheer power) of the International Farmers Report remaining 20%; to produce goods they can stockpile or goods whose production they can control (industrial animal raising). "We are moving, in France and in Europe, toward farm­ ing deprived of any humanitarian purpose; motivation, con­ viction, and technical competence are more and more being replaced by speculation and finance.... "Measures aimed at reducing production will lead thou­ sands more independent farmers to bankruptcy, increasing the power of cartels which will be able to organize an even Where theworld food more draconian shortage. The food , produced in ever-de­ creasing quantity, by a smaller and smaller group of people, will become a terrible weapon, to the effect of replacing crisis stands now the atomic bomb in its net effect, and enslaving the food­ dependent continents. Farmers from around the world presented the Food for Peace "So, it is the duty of all countries to not only talk about conference with an in-depth report on the state of agriculture the war on drugs, or to feed the country; they have to act in their respective nations. together and as soon as possible. In fact, such a battle requires Pierre Compe, a farmer from France, underlined in his great unity; its goal should be to promote growing agricultur­ speech the moral degeneration of the Westerncountr ies, as al production, the expansion of medical care , and technologi­ manifested in the current drive for drug legalization. This cal progress in all fields. That is the only positive way to moral collapse has prevented the world from dealing with fightthe International MonetaryFund malthusianism, to save real problems, such as that of hunger in the world. He then Third World countries from their debt, and to bring to all turned to a review of how the agriculture crisis is affecting mankind peace and liberty." Europe: "Food production is no Conditions in Australia longer a priority; public de­ Ian Murphy, a sheep farmer from Australia, has been bate is concentrated on how touring the United States with his wife, Anne Marie, speak­ to reduce crops and produc­ ing to U.S. farmers and others about the international food tivity. The main goal of crisis. In his speech to the conference, he underlined that the agriculture is no longer to first step in any recovery program is, "Give honor to God." produce food, but to supply He offered a prayer, calling on the power of Satan's adver­ industry with raw materials sary , St. Michael the Archangel, to defend this movement in and land for the construc­ its battle against the Devil . tion of leisure parks . Thus In his review of the we are told that there is farm crisis in Australia, overproduction, when in Murphy reported that the reality there is a shortage of food. We proposed wheat to country's greatest export­ Poland, which we have been unable to deliver. At the same earner, wool, "has been time, though, in order to maintain good relations with the driven down in price by the Russians, we sold them butter and meat at prices lower than multinational buyers by production costs .... 40% in the last six months. "Agriculture has more and more difficulties in paying its Wool growers are currently debts, and with more than $50,000 debt per farmer on the buying back 60% of their average, that is about 30% of the average income-the farm own wool with their own sector is more indebted than any other activity. Indebtedness money, simply because the is concentrated in the hands of 50% of the farmers , who international cartels areref using to bid at the wool auctions. invest less and sometimes are pushed toward As a result of the collapse of the Australian wool market, bankruptcy. . . . sheep prices have fallen from an average $25 per head to an "In brief, we can say that the evolution in farming is average price of $7.50 .... manipulated by [the European Community bureaucracy in] "The minister for environment in the federal government Brussels, as a reflection of decisions made by the financial has stated he intends to depopulate the 'marginal' farming cartels which want: to lead 80% of farms to bankruptcy; to areas.

20 Feature EIR November 24, 1989 "Farmers in Australia and business people now have to assembly on his successful efforts to expand the agricultural pay an interest rate of 25%. This is usury at its worst. No one production of his nation, before the communists led by Pol can pay 25% interest, and as a result, farmers are losing their Pot took over in 1975 and plunged Cambodia into barbarism, farms, and business people are going into bankruptcy. " killing over I million people. "When I was secretary The plot against New Zealand of agriculture of Cambo­ John Henderson, a farmer from New Zealand, presented dia," he said, "I encour­ a comprehensive picture of the destruction of his country's aged expansion of agricul­ economy since 1976 "as a result of a systematic plot by a ture through new techno­ small handful of international financiers, working through logies, such as selection of their friends in both of New Zealand's major parties." Since seed, use of tractors to re­ 1984, under the present Labour government, the radical de­ place oxen, use of fertilizer regulation of the economy has created a disaster, including and insecticides, and also, in agriculture. a policy to protect the price "As many of you know, paid to the producers. I was tiny New Zealand is one of the first secretary of agri­ the world's largest export­ culture to explain to the government that, for example, to ers of dairy products and have rice, you have to spend 160 days from planting to har­ sheepmeat," Henderson vest. You must know each day what you have to pay to said. "With our rich soil produce the crop, so you must know if you will have the and our skilled farmers, we price. In other words, we had what you used to have in the also grow many other United States, a parity price, to cover the cost of things, including wheat. I production .... would like to use the exam­ "When I first became secretary of agriculture, we had no ple of wheat to show how tractors. We soon had more than 4,000 tractors. In a new the international bankers area to plow, to exploit by oxen, it takes five years to exploit and the grain cartels are destroying our production. one hectare; by the tractor, it takes one day for five hectares. "In 1984-85 one of the junior members of the internation­ To help people buy tractors, we protected the price of the al grain cartel, Goodman Fielder (now known as Goodman tractors with a tax exemption, and we gave an exemption Fielder Wattie), imported wheat from Australia, paying $360 from tax for buying fertilizer. We had a very large increase perton, landed at Auckland, New Zealand. At the same time, in production and exports.... the same company offered New Zealand farmers only $180 "Our reforms showed that Cambodia could be a food per ton for their wheat. At this time, we were 100% self­ exporter.... From the Great Lake to the south, all along sufficientin wheat, except for some specialist lines. Now we the Mekong Delta, there is very rich land. The Mekong flows produce only 10% of what we need. . . . from Tibet, and flows for 4,000 kilometers. The land around "This same firm, Goodman Fielder Wattie, then moved this river is very fertile. In my opinion, if we have real into the sheepmeat industry, through arrangements with Wai­ security, we could rebuild very fast." taki International,one of New Zealand's largest meat proces­ sors, and through arrangements with the New Zealand Meat Farming in Venezuela Producers' Board. Instead of concentrating on producing a Simon Pacheco, Vene­ physical product, Waitaki' s whiz kids lost $140 million spec­ zuelan president of the Na­ ulating on the foreign exchange market. The resulting col­ tional Association of Yuc­ lapse of the company allowed them to force down workers' ca Producers, proposed wages, and badly hurt the primary producers .... that his country be the host "The government is aiding this destruction of the meat of the next Food for Peace industry. One of our cabinet members just returned from conference. He outlined a signing a deal with Russia for meat at 70¢ a kilo, which is national plan to increase 2.2 pounds. If we had put any effortat all into marketing this production of yucca, a meat, instead of handing it to the Russians, we would have high-energy vegetablecon­ gotten at least $2-4 per kilo." sumed primarily in the Ca­ ribbean countries. Pacheco Cambodia could export food stressed the strategic importance of agricultural production Heng Cheng, the former President and agriculture minis­ within his nation's economy. "Agricultural policy is the ter of Cambodia, who now resides in Texas, reported to the backbone of development," he said.

EIR November 24, 1989 Feature 21 and serve the interests of Cargill; Archer Daniels Midland, and the other food cartel companies, to control our food. The USDA hasn't changed its spots overnight. Now their policy is outright starvation and genocide.. Look at the book Alter­ u. s. Agriculture native Agriculture, the new bible of the USDA .... Dept turnsgr een The book says that farmers should switch from so­ by Marcia Merry called conventional farm­ ing, to "alternative" agri­ culture. By this, the book The sp eech excerpted here was delivered to the Food fo r merely means that farmers Peace conference on Nov. 5. should not have the income and circumstances to The u.s. Department of Agriculture has turned green. You choose freely what tech­ may have known the agency was bad, but not this bad. niques they prefer of tilling, animal husbandry, harvesting, When the Department of Agriculture was founded in shipping, fertilizing, and so forth. Farmers should use only 1862 by President Abraham Lincoln, its mission was to pro­ low-cost, low-tech methods that the self-styled experts say duce good and plentiful food based on scientific methods. are good for the environment. These are the methods the Lincoln said, 'The general designs and duties [of the Depart­ hocus pocus experts call "alternative," just to use an inoffen­ ment] shall be to acquire and diffuse among the people of the sive-sounding name. United States useful information on subjects connected with Just recently, a new bill, "The Sustainable Agricultural agriculture in the most general and comprehensive sense of Adjustment Act of 1989," was introduced into Congress to that word" (May 15, 1862). help farmers "make the transition." During World War II, U.S. agriculture was heroic­ Farmers: Don't be taken in by the propaganda. Most doubling, tripling, quadrupling food output when needed. farmers would like to be in a position to change how they're Go down to Washington, D.C. today, to Independence doing things: make improvements; try something else; get Avenue and the Agriculture Department, and here's what out from under the yoke of the crop program restrictions. you get: cult material. There has been a radical change at the And this must be done; this is our Food for Peace policy. I'm USDA. They now worship a pagan goddess called "Lisa," not a soil scientist, or expert on animal husbandry. I'm not and the "Earth Team." "LISA" stands for "low-input sustain­ going to tell farmers what methods are best for each of their able agriculture." Ask yourself, "Sustainable for whom?" situations. But I tell you: If you are are falling for a policy According to the new thinking at the USDA, there are to that is designed to feed fewer people-millions fewer peo­ belower inputs per acre in farming, less energy per acre, less ple-you are being taken for a fool. And you won't be in mechanization, and so forth. The rationalization for this? farming for long. The same with questions of diet and nutri­ The lower inputs are to be "quality" inputs. More spiritual. tion. Everyone healthy has a healthy interest in mealtimes Good for the environment. Good for the birds, and the swamp and good food. I'm not a doctor or nutrition expert. But I tell things. You farmers are supposed to love this, because you you: The propaganda you are getting about pure food, safe are supposed to lower costs by not buying equipment, fuel, food, non-poisonous food is part of green fascism. fertilizer, pumps, and such things. You are supposed to put in more sweat labor, and the USDA calls this "quality of life" Who promotes green fascism for you and your family and your farm environment. The best thing you can do, is look at who is promoting Secondly, there will be less food per acre produced under this greenie food and farm propaganda. Look at just three this perspective. The rationalization for this? There may be projects and their backers. less food, but it will be "quality" food. "Pure. Safe. Natural. Firstly, look at who funded the publishing of the Alterna­ Non-poisonous. Chemical-free. Traditional. Organic. Aes­ tive Agriculture book. The Rockefeller Brothers Fund, the thetic." Andrew Mellon Foundation-the same family that founded What's going on here? The result of all this is obvious. the Federal Reserve-the W.K. Kellogg Foundation, etc. There is to be less population. Less food ...fewer people. These interests want fierce austerity so their own financial The argument is, there are to be "quality" people. White. empires can be saved at any cost. The Rockefeller famil y inter­ Elite. Select. ests were always fanatical backers of population reduction. Don't be shocked. For 20 years, the USDA has been Secondly, green, "eco" farm conferences. In January, imposing policies to bankrupt farmers, cut food supplies, there is a big gathering in California. One of the backers is

22 Feature EIR November 24, 1989 the Esalen Insitute. This outfit was founded in the 1960s, to conduct sensitivity sessions for "mind expansion." The night FIGURE 1 before the Charles Manson murders, Manson spent an eve­ Environmentalism kills ning at Esalen. In the 1970s, Esalen started specializing in Food lack­ U. S.-Soviet exchanges. Esalen favors spiritual relations with Ing for the Earth. Environmentalist Requirement for how many Another backer is the Rodale Institute. Founded in the program food production people 194Os, this group is partof the cult networks called anthropo­ sophs, connected to a mystic named Rudolph Steiner. Steiner Conservation Reserve 1 acre feeds 100 million 40 million acres in 2.5 persons once published a magazine called Lucifer, and he referredto J4 non-food .... his friends as "white magicians." Steiner's student Ehrenfeld , Pfeifferwrote an article for the firstissue of Organic FarrRing and Gardening in 1942. The article called for a "new peasant­ ry." No more mechanization and chemicals. . . .

Thirdly, there is the federal law called the Conservation Project Groundwater 1 cow feeds 37 million Reserve Program. Started in 1985, this plan aims at taking Reduce manure animals 25 children 45 million crop acres out of cultivation and putting them into non-food, wilderness use. That is the brainchild of the Conservation Foundation. This group was founded in Washington, D.C., in 1948. It was set up by racist British and Swiss oligarchs, as a replacement for their pre-war group that got a bad name Ban farm chemicals on fruit 1 tree feeds 780,000 for advocating eugenics-Master Race breeding. The first ALAR scare against apples 1.3 children director of the Conservation Foundation was Henry Fairfield ruined thousands of orchards "an apple a day" Osborne, the nephew of one FairfieldOsborne who , in 1932, had hosted, along with the Averell Harriman family, the International Eugenics Conference in New York City. Nazi race experts attended that to discuss how to purify races by exterminating "undesirables." For the last 41 years, the Conservation Foundation has carried on their advocacy of selective population reduction under the cover story of .pro­ tecting the environment. William K. Reilly, the current head eat 1,000 apples a day for a lifetime-26 million apples-to of the Environmental Protection Agency, was formerly head ingest the amount of Alar (daminozide) that produced tumors of the Conservation Foundation. . . . in laboratory rats . But now ...thousands of children won't First, there is the Conservation Reserve Program (see get any fruit. The impact of the Alar scare this spring is to Figure 1). If you figure that a farmer here in the u.S. can deprive over 700,000 people of their apple a day. produce grain on one acre for at least 2.5 people fora year, The green fascists say that insecticides pollute. In 1972, then if you remove 40 million acres from cultivation, grain William Ruckelshaus of the Conservation Foundation for 100 million peopleis not being produced. Where are they banned DDT, which controls malaria mosquitoes. In 1974, getting theirdaily bread? They're not. Russell Train of the Conservation Foundation banned diel­ Look at other foods. Milk: The "alternative agriculture" drin, which controls locusts and grasshoppers. It is now esti­ people tell you that too many cows produce manure, which mated that 100 million people die a year due to the elimina­ pollutes the groundwater. They also say that too much milk tion of these and other needed chemicals. . . . makes too much butterfat and cheese, and that fat in school Therefore, don't try to have a dialogue with the agents lunches hurts children. One decent milk cow produces of the banking families-the Mellons and the Rockefellers, enough milk for 9,000 half-pint servings a year for children. about organic farming or pure foods. They're plotting to This could give 26 children their daily milk for a year. But divert you in this way while farms-big and small, conven­ the USDA Dairy Herd Termination Programeliminated 1.5 tionalor organic-areshut down around the world, and peo­ million cows. This is milk for 37 million children. Where ple are starved. If someone says to you that they don't like will they get it? They won't. the way you farm, or they don't like your f<>9d or the way Apples: One decent apple tree gives 500 apples a year, you eat; if someone says to you that you are hurting the enough for 1.5 children to get an apple a day. But the scare environment and hurting Mother Earth's feelings, you tell about Alar and sprays on apples is bankrupting growers, and him to go to another planet. Here on Earth, we're going to ruining orchards and trees. A 4O-pound child would have to feed people.

EIR November 24, 1989 Feature 23 crisis. In 1983, President Reagan signed the "Jobs Stimulus" Farmers , Eaters Report bill. Campbell remarked, "As far as I am concerned, it did not meet the necessities of the poor." For example, at one point, Sperry-New Holland, the farm equipment manufactur­ er, closed three plants in Fresno . Suddenly, hundreds of newly unemployed needed help. The food bank and another local relief agency, the Center la Familia, were the chief sources of assistance. Yet the food bank itself is in an intense financial squeeze. In addition to the rapid growth in local needs, the costs of relief have increased dramatically: In the early 1980s, the The crisis of U.S. program paid 12¢ a pound for food provisions; today, it must lay out 25¢ for the same amount. Interests connected to the private food cartel companies food production have hampered the food bank's efforts. In one case, raisins, unsold on the produce market, were being offered for hog "How can you feed someone when you don't have it? How feed for only $45 a ton. Yet incredibly, the Fresno Food can you clothe people, when there is no wool, no cotton Bank was prevented from buying them for the poor. In anoth­ being produced?" So asked Carolyn Campbell, director of er case, there used to exist the "Senior Gleaners," a group the second-largest food bank service in the United States. that went out into the fields and orchards to pick up the Campbell's agency is located in Fresno, California-heart remaining fruits and vegetables after the farm harvesting of one of the richest agricultural regions in the world. Yet was done. But, three years ago, the farmers were ordered to today, in the lush Central Valley, hunger is on the increase, plough under their crop remainders, to "protect" their market alongside farms in crisis. prices. There are even "shakers," who are paid to go around Campbell participated in a Food for Peace conference and shake the lingering fruit from the trees so it falls to the panel on Nov. 4, called "Collapse of Physical Production of ground and rots . Campbell said, "These are horror stories, Food," sharing the podium with farmers from abroad, and but very real. " with U.S. spokesmen Lindsey Williams, noted author and lecturer on the economic crisis, and Phil Valenti, Pennsylva­ Debt engulfs production nia Food for Peace coordinator. Their presentations and other Lindsey Williams, m11""""""'''''''1i!'i'''' conference remarks by farm leaders such as Jack Hall, former known widely for his first president of the Virginia state National Farmers Union, give book, The Energy Non­ a graphic picture of how two decades of disastrous policy Crisis, described how he have created the present burgeoning farm and food crisis in and his wife traveled for the United States. The speakers were unanimous in the view four months among farrnr that the situation could be reversed if the right emergency ers, gathering facts on the measures were taken. Campbell said, "Except we come to­ farm and food crisis for his gether all over the world, we cannot succeed." book Where's the Food? Campbell reported that He said, "You would think in 1979, the Fresno Food it was Siberia, not here." Bank provided 800 fami­ "I traveled in North Da­ lies with monthly provis­ kota ...no cattle herds. We do not have the beef anymore ions. In 1989, that number on American soil. If imports are cut off,"he said, there would increased by 300% to be no food . He reported on the empty grain elevators in the 3,200 families. The food Northwest, noting with tongue-in cheek naivete, "I thought bank serves laid-off factory we had a surplus." workers as well as migrant Williams outlined the "design-plan" at work to destroy farm laborers, families, farmers. He pointed out that the largest farm in Argentina is plus hundreds of others owned by the Rockefellers. Rockefeller ships take Argentine dispossessed by the "Great wheat into the United States. This is happening because Ar­ Recovery" of the 1980s. Campbell described the succession gentina must pay debt to Chase Manhattan Bank (Rockefeller of government actions over the past 10 years. In 1982, for again) in U.S. dollars, which the Argentines can earn only example, then Agriculture Secretary John Block came to visit through exports. He said that February 1988 was "a point of California. Even then, one could see that agriculture was in no return" for the world economy, because there was more

24 Feature EIR November 24, 1989 debt to be paid than assets with which to pay it. A statement was released sent by Lindsey Williams and Williams posed the question, "What is true wealth?" He Australian farm leader Ian Murphy to President Bush . It read: answered, "The tangible objects God has created ...land" ; "The jailing of Lyndon LaRouche has sent shock waves several in the audience were heard to murmur in reply, "the round the world and through all patriots, nationalist politi­ mind." He ended by advising some "cures" for the situation. cians, and freedom-loving citizens. he said, "Attempt to get out of debt. . . . Beware of "We are shocked and amazed by the subversion of natural usury.... Set family priorities ....Get involved in gov- justice in the U.S.A. ernment ...take responsibility for your health." He said, "The question we must "Stand up to your adversity. Either you stand up for some­ ask is, 'What are the real thing, or you fall for anything." forces now persecuting Lyndon LaRouche in the Urban-rural alliance home of the brave and the Phil Valenti, Pennsyl­ land of the free?' vania Food for Peace "Lyndon LaRouche is spokesman, described the not in jail for what he has gains from concrete actions done but simply because he over the past few months is a brave and patriotic by a coalition of "farmers American standing up for and eaters." Saying that American tradition and there "can be no faith with­ truth. out works," Valenti told "When President Bush releases Lyndon LaRouche, he how an alliance of veter­ will have proved he stands for the great American traditions ans, civil rights leaders, of truth, justice, and freedom for all under God's laws." farm activists, and neigh­ bors demonstrated on behalf of western Pennsylvania farmer Bernard Tobin, whose rights to retain his farm and produce food were being jeopardized by the federal lending agency, Save thefa mily fanner! the Farmers Home Administration. So far, the FmHA has had to back down twice. Exchange visits to farms, churches, and communities This resolution was passed by the Pennsylvania affi li­ have been undertakenthrough Food for Peace, between white ate of the National Association fo r the Advancement of ruralfarm families and black inner-city families. This fight­ Colored People (NAACP) at the end of October. ing alliance has taken on the issue of giving the dairy farmers in the state-one of the nation's top five milk producers­ WHEREAS independent family farmers have been the parity (fair) prices, and exposing the price gouging by such backbone of food production in America; and monopolists as the Bronfman family, which owns many dair­ WHEREAS tens of thousands of independent family ies through its Labatt's beer and Seagrams whisky com­ farmers are being forced out of business every year, panies. while hunger and starvation increase at home and Valenti introduced to the audience a. G. Christian, a Phil­ abroad; adelphia Food for Peace activist who was a leader in his WHEREAS the main reason for the problem is the carpenters union, and for 12 yearshe aded the West Philadel­ unfavorable financialpolicies used by the power struc­ phia NAACP. Christian sponsored a resolution on behalf of ture against the family farmer; and the family farm, which passed the Pennsylvania state WHEREAS everybody's freedom is threatened if big NAACP just days before the Chicago meeting. corporations take over total control of food; and WHEREAS the food crisis is made worse by the set­ Demand justice for all aside policy, where farmers are made to keep good Virginia farm leader Jack Hall decried the police-state land out of production; and measures now in effect in his state and elsewhere. Earlier WHEREAS , as the shortage of food strikes this nation, this year, Hall joined a.G. Christian in a series of Capitol it will impact hardest on black people and other minori­ Hill meetings to pressure Congress for emergency action on ty populations of the big cities; food and farm policy, and to end police-state tactics against THEREFORE we in the NAACP resolve that every farm activists. All the farm speakers denounced the jailing effort be made to get the government to take concrete of Lyndon LaRouche and associates, and the harassment of steps to save the independent family farmer. others.

EIR November 24 , 1989 Feature 25 Poland, Gennany, France at core of changes in Central Europe

by Rainer Apel

The change of government in Poland in August, the wave of Fideiio, Act I refugees from East Germany and the mass protest rallies On Nov. 11, people along West Berlin's Kurfiirsten­ in Leipzig, Dresden, and the other major cities there, the damm avenue were singing the moving refrain "Be em­ reshuffling of the communist leadership in East Berlin, and braced, ye millions!" from FriedrichSchille r's Ode to loy in the discussion of millions of East Germans on economic and Ludwig van Beethoven's Ninth Symphony. Other popular political reforms, free elections, and German reunification­ songs were chanted as well, and thousands joined in. all these events have stirred the world and dominated the This was only the beginning: The next day, 400,000East headlines. Germans streamed into West Berlin, and I million the day But the developments which began with the opening of after. Meanwhile, faraway fromBerlin , at the new crossing­ a few new crossing-points at the Berlin Wall in the night of points along the German-German border, tens of thousands Nov. 9-10 foreshadowed the shape of a new architecture, a streamedinto the West-half a millionaltogether. Brass ban­ political structure of a Europe to replace the regime which ds from the West welcomed the visitors from the East, and was set at the February 1945 Roosevelt-Churchill-Stalin con­ bands from the East marched into the West to play as well. ference at Yalta, and which has ruled ruled European affairs The high pointof this German-German reunion occurred throughout the postwar era. in West Berlin on Sunday, Nov; 12. All visitors from East Berlin, which has been the centerpiece of the postwar Germany had free entry to all classical music concerts Iron Curtain, was changing overnight: A few hours afterthe performedin the city that day. The Berlin Philharmonic had re-opening of the sectoral border was made public, 100,000 decided to give a special, unannounced concert, and hun­ East Germans had streamed into West Berlin, mixing with dreds of East Germans, many of them young families with at least the same number of excited West Germans in the small children, took theopportunity to listen to Beethoven's streets of the city. German flags were waved, and every Symphony No. 7 and Piano Conterto No. I at the Deutsche single car coming from the East was welcomed with cheers. Oper. The concertwas conducted by Daniel Barenboim, who Thousands of people from East and West climbed on the told the audience he was proud to contribute to this special Wall, celebrating the beginning of a new era. People of all moment, and received roaring applause, with the audience ages were full of joy and tears at the same time. Relatives spontaneously rising fromtheir seats. who had not seen each other in the 28 years since the Wall Another, well-attended concert took place at the Deu­ was built embraced each other, as did people who had never tsches Konzerthaus, where a performance of Mozart's met before. No clearer expression of the Germans' feeling opera The Magic Flute was given. Other, smaller concerts as one nation could be imagined. of classical and religious music at churches all over West

26 International EIR November 24, 1989 Berlin were well attended. red-whiteand [Gennan] black-red-gold flags werefluttering West Berlin, as well as many West Gennanciti es, report­ together, while Gennan, French, and Polish students were ed massive interest of East Gennan visitors at art museums calling for constitutions and citizen rights for all Europeans, and other sites of historical interest, where long queues of and were singing songs of freedom. Speeches given at that peoplewere lining up for most of theday . event proclaimed: 'Without the freedom of Poland, no Ger­ East Berlin itself lookedrather depopulatedthat Sunday. man freedom; without Poland's freedom, no lasting peace, The square at the Marx-Engels monument, usually a much­ no salvation for the peoplesof Europe. Therefore, rise up to frequented meeting place for East Gennans, looked com­ fightfor Poland's restoration !' pletely deserted-a scene that was highly symbolic of the "Thefraternity proclaimed by the French revolutionaries: present situation in East Gennany: People have had enough Isn't that an old name for what we call solidaritytoday? This of Marx and Engels, of socialism. bond has remained, and even war and dictatorial regimes The figurespublished by the East Gennan authorities on haven't been able to tearit apart." Monday spoke for themselves, to the same effect: More than Kohl could not have chosen a better point of reference. 5 million East Gennans, roughly one-thirdof the population, The cooperationbetween the three nations of France , Genna­ had enlisted for traveling visas to West Berlin and West ny, and Poland was never again so close during the 157 years Gennany. that followed that event at Hambach Castle. And the chance It was as the writer Reiner Kunze-himself a refugee for a new era of close cooperation between the three has from East Gennany in 1977-wrote in a lead editorialin the never been so close in the past 157 years, as right now. Bonn daily Die Welt, afterthis historic weekend on Nov. 13: Fidelio, Act I-the prison gates are opening, the prisoners German-Polish reconciliation enjoy the open air after a long period of incarceration. As in Kohl's trip to Warsaw had been prepared in close consul­ Beethoven's opera, theprisoners returnedto their cells (when tation with the government of France, in several personal their visas expired), but they are determined to come back. encounters between the Chancellor and French President It is, Kunze wrote, still a long a way to go until the final act Fran�ois Mitterrand, and on the phone between Bonn and of real liberation is finally reached, but the process leading Paris. Since he was assured of full support on the part of toward it has definitelybegun. What is requirednow , in view Mitterrand, Kohl was assigned a special mission to Warsaw of these broad and intense social processes, is leadership, that only he could carry out. and reasonable action by governments and politicians. West Gennany plays a crucial role regarding Poland for several reasons: 1) it is Poland's single largest creditor and Joint heritage of Germany, Poland, France trading partner in the West; 2) it has to be engaged with As these. breathtaking developments were unfolding in Poland in a pincer-like move to support the process of politi­ Berlin, West Gennan Chancellor Helmut Kohl was in War­ cal refonnand transfonnation in East Gennany;and 3) as the saw. He had arrived for a five-day, official visit in the morn­ political-economic pivot for the ongoing process of Gennan ing hours of Nov. 9, preparedfor difficultand delicate talks reunification, West Gennany's guarantee of secure borders with the new Polish government. The developments in Ber­ with Poland is essential, because the border question must lin, this mass expression of the longing for freedom, made it be kept free of any tensions. easier for Kohl to get his specific message across in Warsaw. The reconciliation and cooperation between West Ger­ In his official dinner address that evening, the Chancellor many and France in the postwarper iod, especially the histor­ cited the joint heritage of French, nnanGe , and Polish free­ ic alliance between France's President Charles de Gaulle and dom fighters against the regimeof the Congress of Vienna in West Gennany's Chancellor Konrad Adenauer in the late the early 19th century as a crucial point of reference for 1950s and early 1960s, can serve as the model for the new cooperation of the three nations for a better Europe at the end quality of cooperation between a united Gennany and Po­ of this century . land. For the Poles, on the other hand, it is important to "Today," Kohl said, "all of Europe looks upon the great know that both leading industrial nations on the European Polish people which, not for the firsttime in itshistory , revives continent, France and West Gennany, are supporting the first the most valuable traditions of our continent to new life. non-Communist governmentin Warsaw now, at the peak of "The common desirefor freedomand self-determination: the Polish economic crisis. The combined weight of France This was also the characteristic of one of thegreatest periods and West Gennany is crucial for Poland also in political­ in the history of our two peoples. During thePolish struggle strategic tenns, because it helps to increase the maneuvering for freedom in 1830-31 and in the years after, Gennany room against the threatening Russian neighbor in the East. was seized by a wave of sympathy and enthusiasm for the It is furthennore importantfor Poland to know that France neighboring people. and West Gennany are cooperating on the question of East "The high point was, in my Palatine home-region, the Gennany with the aim of helping to remove the Stalinist Hambach Festival on May 27, 1832, at which the [Polish] regime in East Berlin and to replace it with a government

EIR November 24, 1989 International 27 that is oriented toward Western values. A reunification of Gennanlanguage . The scenes at Kryszowy and Czestochowa Gennany along the Western model is not threatening to the on Nov. 12 were highly reminis¢ent of the reunion de Gaulle Poles; indeed, it is the only guarantee for the liberation of the and Adenauer had at the Chartres Cathedral in September Polish nation from the paws of the Russian bear. 1958, at the beginning of their alliance. Kohl had to interrupt his trip to Poland for 24 hours on The next day, at the CatholiciUniversity of Lublin, where Nov. 10 and Nov. 11, to fly to West Berlin because of the Kohl received an honorary doctor's degree, the new alliance political developments around the Wall. Addressing some between the Gennans and the IPoles was deepened. "The 20,000 Berliners from East and West, Kohl said in a highly refonns in Poland and Hungary created the precondition for emotional speech at Schoneberg City Hall: "We are one na­ the changes we are witnessing now in the G.D.R.," said tion, we will remain one nation, and we belong together. . . . Kohl . "We know that without a free and stable Poland, there People in the Gennan Democratic Republic have a right to will be no free Europe, because Poland is important for all free and secret elections and a free press, and political parties. of Europe." Our fellow countrymen are fighting for these rights and we The Chancellor added: "There is nothing to fear for the are fullybehind them ....We are ready to help you rebuild Poles from the developments in neighboring G.D.R., be­ your country, you are not alone." cause support for both refonn processes, there as well as The Chancellor flewback to Bonn, got on the phone with in Poland, is in my government's genuine interest. ..The Mitterrand the same Friday night and did so again the next development of both has to be! seen in one and the same morning, as well as speaking with U.S. President George context." Concerning the German-Polish border question, Bush, British Prime Minister Margaret Thatcher, Mikhail the Chancellor said he could not iJnagineany futureexpulsion Gorbachov, and East Gennany's new leader Egon Krenz. of "millions of Poles who havel lived for three generations Afteran emergency cabinet meeting in Bonn Saturday morn­ now" in the fonnerGennan territories. There is no problem ing, Nov. 11, Kohl went back to Warsaw to resume his talks with today's borders, Kohl said, There is only a question of there . The 24-hour interlude was not to the disadvantage of their interpretation; the West Getman governmentis respect­ the Gennan-Polish talks, as could be seen on Sunday, when ing the Gennan-Polish Treaty of Warsaw signed in 1970, Kohl and Poland's Minister President Tadeusz Mazowiecki which declared there are "no tentitorial claims to Poland." joined for a visit to Kryszowy in Lower Silesia. A reunifiedGenna ny, Mazowiecki declareda few hours Kryszowy, the Gennan city of Kreisau before 1945 and after the ceremony in Lublin, is .no threat to the Poles, so since then under Polish rule, is symbolic in two ways. On long as there is a Gennan guarantee for Poland's current the one hand, it is a litmus test of whether Gennany today westernborders with East Gennany alongthe two rivers Oder can live with the fact that one of its fonner cities is now part and Neisse. of Poland. And on the other hand, it is a historic center of On Nov. 14, after Kohl and Mazowiecki signed a joint the anti-Nazi resistance movement in Gennany;the estate of declaration on the new quality of Gennan-Polish relations the landowning family of Count Moltke at Kryszowy played and cooperation in W!U'Saw, the Chancellor characterized at an essential role in the preparation of the planned overthrow a press conference his four days of talks with the new Polish of Hitler on July 20, 1944 . A museum of the history of the government as "a fateful moment of world history and of anti-Nazi resistance is to be built on the restored, fonner Gennan policy," because they offered, for the first time in at Moltke estate now, in a joint Gennan-Polish venture. least 50 years, an option for developing sound Gennan-Pol­ ish relations. Mazowiecki visibly appreciated theseremarks , Catholic Church connections especially when Kohl referred t6 the two leaders' joint visit The reunion of Kohl and Mazowiecki at Kryszowy on to Kryszowy and to Czestochowa, their public gesture of Nov. 12 became a very moving event. Father Nossol, the reconciliation there. priest of the Catholic ethnic Gennan minority in Lower Sile­ Mazowiecki said that the viSiit to Kryszowy and Czesto­ sia, welcomed "these two excellent Christian-Democratic chowa should not be misread a$ a merely tactical move of statesmen" and recommended, in his prayer, that "Poles and diplomacy, but as a real reflectionof a "new quality of friend­ Gennans shall work together for the re-evangelization of ship between the two nations." He called Kohl "a real friend Europe." Mazowiecki then embraced Kohl in an explicit of the Polish nation" and said that the two had "been able to gesture of reconciliation-also an expression of the tradition­ reach a deep level of understanding because both of us are al Peace Prayer recited by the Polish Catholics-and said: religious politicians." "There is a new Polish-Gennan feeling of fraternity upon If this level of understanding, combined with a sound which the future of a better Europe can be built." The two economic policy of industrial development in Poland and heads of state then traveled on to the Shrine of the Black East Gennany, is the basis of the new Gennan-Polishcooper­ Madonna's at Czestochowa, the cultural heart of Catholic ation together with France, there is reason to believe that Poland (and the equivalent of the Cathedral of Chartres in these fivedays between Nov. 9 andNov . 14 were the begin­ France, as many say), where a Te Deum was sung in the ning of a change in Europe for the better.

28 International EIR November 24, 1989 view of the way ahead." Recently appointed British Foreign Secretary Douglas Hurd, while visiting Berlin Nov. 16, echoed Thatcher, pro­ claiming that reunification was "not on the agenda. " One fascinating corollary of the London-Moscow pincer British, Soviets team is that both are encouraging "democratic socialism" in East Germany, as a means of heading off reunification. Erstwhile "anti-socialist" Mrs. Thatcher has become a latter-day Social up against Germany Democrat, and both the British and Soviets are supporting the Socialist International ! (See article, p. 34.) by Mark Burdman Fighting World War I again The British and Soviet governments are effectively working From the British side, several factors are motivating the in tandem to undermine the reunification of Germany, and hysteria on the German question. British insiders state frank­ to counter the nascent West German-French-Polish "axis for ly that Mrs. Thatcher is petrified that "if Gorbachov doesn't development" emerging in continental Europe. survive, she doesn't survive." Afterall, despite her occasion­ EIR has learned that a senior official of Moscow's al public skepticism about Reagan's opening to Moscow, she U.S.A.-Canada Institute, one Karaganov, has been in Lon­ has, especially recently, insisted that Gorbachov is a man "to don during the early-to-mid-November period. He has do business with." Moreover, 10 Downing Street is trying to approached leading British policymakerswith thefrank mes­ exploit hysteria about a "Fourth Reich," to divert attention sage: "We don't want reunification of Germany, and you from increasingly bitter internal squabbles. don't either. Why won't we work together to make sure it But there is something much more basic behind the Brit­ doesn't happen?" ish campaign against a reunited Germany, and charges that On Nov. 16, the Times of London, a pillar of the British a "Fourth Reich German economic superpower" will arise. establishment, published a signed commentary on Germany What erupts at such moments as these, is a British obsession, that could have been dictated from 10 Downing Street. The that might be characterizedas "18th-century balance of pow­ headline epitomizes the London-Moscow convergence: er politics." One British observer said Nov. 17: "We have "Events in Germany must not weaken Gorbachov." Writer fought countless warsto prevent one country becoming dom­ Ronald Butt insisted, "We need a stable Soviet Union. Con­ inant on the continent. In the past, it was France, Spain, trol of the vast Soviet armory must be in responsible hands just about everybody except Portugal. In this century, the as NATO and the Warsaw Pact seek to reduce their arms. problem has been Germany." That is also the crucial fact about German reunification. The Oddly enough, the main public propagandist for the danger is not of the eventual reunion of Germany, but of Downing Street-dictated "Fourth Reich" campaign has been precipitate action that might cause the Soviet Union concern Conor Cruise O'Brien, a left-liberal scribbler based in ire­ about its forces in East Germany. . . . land. Days before the Berlin Wall was opened, O'Brien "Mrs. Thatcher's reassurance that the West will not try wrote a piece in the Times of London, with the headline, to poach East Germany is timely. . . ." "Beware the Reich Resurgent." He raised the specter not just An informed London source told this correspondent Nov. of a Germany reunified, but the German people's alleged 17: "The British position, quite simply, is that everything is denial of the occurrence, and guilt for, the Nazi anti-Jewish subordinate to Gorbachov's survival." holocaust, etc., once Germany were reunified. His "Fourth Even official utterances from Moscow and London on Reich" insanity soon became a leitmotifin numerous British the subject have been complementary. Since the dramatic papers. Typical was a lead editorial in the Nov. 12 Sunday developments at the Berlin Wall beginning Nov. 9, Gorba­ Times of London. chov, Soviet Foreign Minister Eduard Shevardnadze, and On Nov. 17, Cruise O'Brien struck again, again in the other Soviet spokesmen have come out unambiguously London Times. Cynically admitting that his first article was against German reunification. Gorbachov's statement on the characterized by "hyperbole," he asserted: "The good thing subject was reportedin the Nov. 16 Daily Express of London about hyperbole is that it attracts attention." By the end of under the heading, "Gorbachov Nyet to a United Germany." the article, Cruise O'Brien revealed what his real obsession Speaking before the Lord Mayor's Banquet Nov. 13, is: the revival, not of the Nazi "Third Reich," but the "Second Mrs. Thatcher declared, "Once the demand for reform Reich" of the late 19th-early20th "HohenzollernGermany ." starts, there is a tendency for it to run very fast. Indeed, In other words: the British imperial mind-set of World the very speed of change could put the goal of democracy War I. Such hysteria points to one simple fact: the Anglo­ in jeopardy. Strong emotions have been aroused on all Soviet combination is not in control of the continental Euro­ sides by recent events. The need now is to take a measured pean political dynamics.

EIR November 24, 1989 International 29 move was in direct violation of an edict from the Sept. 19- 20 Central Committee Plenum, personally announced by Gorbachov, forbidding any republic Party to undertake such amove. On Nov. 14 the entire Lithuanian Party leadership was I summoned to Moscow to appear the next day before the Politburo. I Gorbachov postpones The crackdown will not be confined to suppression in the non-Russian republics. A national emergency, featuring reform a enda state-enforced strict rationing of food and consumer goods, g could be declared as early as December, as the hardships and privations caused by the wi�ter become unbearable. The by Konstantin George stage for this has been set by little-noticed Gorbachov speech­ es in early November, comparing the present crisis to the While maintaining a deceptive, superficially liberal or hardships faced by civilians during and immediately follow­ "hands-off' mode toward the revolutionary situations in East ing World War II. Germany, Poland, Hungary, and elsewhere in Central and The winter crisis has already caused the abrupt cancella­ Eastern Europe-because it has no choice for the time be­ tion of the Soviet Parliamentrs "economic reform law" ing-Moscow is taking an iron-fistedapproach towardsna­ agenda. On Nov. 14, Gorbachov rammed through the Su­ tional freedom movements inside the U.S.S.R. itself. The preme Soviet a resolution dumping the entire package from cutting edge of this crackdown, which the Soviet military the agenda of the Congress of People's Deputies, which con­ has been demanding for months, has struck in the republic venes Dec. 12. The resolution, which passed by a narrow of Moldavia and the three Baltic republics. Along with mass majority, bans any discussion illthe Parliament's session of repression, the Soviet leadership, with Gorbachov spear­ the proposed new laws governing property relations, land heading the move, has put the brakes on the so-called domes­ ownership, and leasing. The People's Deputies will instead tic package of "economic reforms" that was supposed to be focus on discussing the 1991-95 five Year Plan and unspeci­ passed this winter by the U.S.S.R. Supreme Soviet. fiedstep-by-step interim measures for the economy. The new The internal crackdown began Nov. 10, the same day agenda opens the way for Parliament to approve emergency the Berlin Wall was coming down. A mass protest in the measures proposed by Gorbaahov, including across-the­ Moldavian capital of Kishinyov was violently suppressed, board rationing. with hundreds injured, some critically. Two thousand interi­ Gorbachov also forced through a companion measure or troops, from elite units composed of ex-spetsnazAfghan banning any parliamentary discussion over the "leading role veterans, were flown into Moldavia. A state of emergency in society of the Soviet Communist Party." Gorbachov de­ with a strict curfew was proclaimed, putting the republic clared, "Another power, which could replace the Soviet under de facto military rule. The repression was the bloodiest Communist Party in Soviet society, is not in sight." since the April 9 "Bloody Sunday" massacre in Tbilisi, Geor­ gia. Moldavia was given a new party boss, a Russian, who replaced Semyon Grossu at a Moldavian Central Committee Plenum convened on Nov. 16. This was the firsttime that a Russian had been installed to rule a non-Russian republic, where the indigenous population, in this case Romanians, form a majority. (In Moldavia, Romanians are 64% of the population, while Russians are a mere 12%, and Slavs some 26%.) After that, Moscow moved to begin a showdown with the national movements of the Baltic republics. The popular support in these republics for independence is so overwhelm­ ing that in the last month, the Lithuanian, Latvian, and Esto­ nian parliaments all passed legislation creating the basis for popular referenda on all crucial questions, including that of leaving the U . S . S .R. The firstof the ruling Communist parti­ es of these republics, Lithuania's, declared its intention to "secede" from the Soviet Communist Party and become an independent party, no longer tied to Moscow. The Lithuanian

30 International EIR November 24, 1989 and Yugoslav leaders. They thought they at least had East Germany behind them, and now look what is going on there! "The leadership crisis was not solved by Deng's resigna­ tion yesterday. The feeling of the young and educated is that they must get out." Paramount Chinese leader Deng WhyBei jing fears Xiaoping officially retired from his last position in the Com­ munist Party, head of its Military Commission. Deng's newly appointed replacement, Jiang Zemin, the Berlin upheaval proclaimed Nov. 9 that the changes in the Soviet Union and East bloc are only "temporary in the long stream of events," by Mary McCourt Burdman the BBC reported. Jiang might well soon findhimself a tem­ porary event. An Asian source pointed out that Jiang is in the On Oct. 24 , Chinese Prime Minister Li Peng finally broke same nominally powerful position Hua Goufeng was, when the weeks of dead silence from Beijing on the extraordinary the latter was appointed to succeed Mao Zedong after his events in Eastern Europe. The People's Daily reported that death. Hua was out of power in a brief time. he told a visiting delegation from Yugoslavia that "we are An official Chinese account of the East German refugees naturally concerned about developments in some East Euro­ claimed that "when they firstarri ved . . . their general feeling pean countries." Li added that China believed reform meant is that society in West Germany is full of chaos, and there is "perfecting the socialist system." Since then, while making no guarantee of life and property . . . . Quite a number of every effort to keep the news about the open East German people have returnedhom e." borders out of China-including jamming the BBC Manda­ rin-language broadcasts as well as the Voice of America More upheaval in China? broadcasts-the Beijing government has repeatedly ex­ The Chinese are concerned for one reason: The tide of pressed its concern. Li Peng, speaking in the city of Rawal­ revolution against 40 yearsof Communist disaster, could well pindi on a visit to Pakistan Nov. 16, reiterated that no matter tum again, back to China. Since June, China's leaders have what is happening in Eastern Europe, China would not given one dire warningof harshausterity afteranother, includ­ change its socialist system. China wants to "improve" the ing a communique from the party plenum earlier this month, socialist system, he said. which said that the austerity program adopted 14 months ago Beijing has good reason for concern. The East Berlin­ would be maintained for at least two more years. The party is Beijing axis, with a third leg in the North Korean capital of determined to force inflationdown to 10% and to curb growth Pyongyang, which was consolidated around East German to 5-6%. Already, the official news agency Xinhua an­ support for the June 4 Tiananmen Square massacre, is in nounced, China will shut down 1 million rural enterprises as trouble. The Beijing-Pyongyang axis is still strong, as North part of the austerity program. The source of the "blind wave" Korean leader Kim II Sung's secret visit to Beijing theweek of 100 million homeless unemployed last year-this means of Nov. 6 attests; but it is a far weaker front than provided rural unemployment--could double or triple in the coming by close ties to East Germany. months, especially after the Chinese New Yearin February. It was only six weeks ago that Egon Krenz-before his In spite of the harsh crackdown, many leaders of the promotion to head of East Germany's Socialist Unity Party democracy movement of May and June either escaped China (SED) and East Germany's State Council-was in Beijing or were able to evade arrestfor months by going underground for a week of meetings with the Chinese leadership, at the among the people, indicating the depth of support for the time of the 40th anniversary of the Communist takeover in demonstrators in China. Two leaders-Wang Jungtao, the China. That event, and the 40th anniversary of SED rule on former editor of the Economic Studies Weekly, and Chen Oct. 6, were the reason for many exchanges of "solidarity" Ziming, former head of the Beijing Social and Economic and support for the Tiananmen massacre policy. But already StudiesResearch Institute-were finallyarrested in southern on Oct. 1, the exodus of thousands of people from East Guandong province on Nov. 10, Agence France Presse re­ Germany was in full swing. By Oct. 9, Krenz had backed ported. The pair had been at the top of a Public Security down from ordering a bloody crackdown to avoid a general Ministry list of China's seven "most wanted" intellectuals, strike, and one month later, the floodgates were opened. yet were able to avoid apprehension for a full four months. "The leaders of China are very worried about what is On Nov. 12, Public Security Minister Wang Fang warned happening in Eastern Europe and East Germany," a West that "domestic and foreign hostile forces have not stopped German journalistwho just returnedfrom a visit to the main­ their conspiratorial activities in an endeavor to overthrow land told EIR Nov. 10. "Their concern is shown by the visit the Communist Party leadership ....[There] are still many of North Korean leader Kim II Sung to Beijing, and what factors that might cause instability in society," Xinhua re­ Chinese Prime Minister Li Peng said to visiting Bulgarian ported. Xinhua, this time at least, is correct.

EIR November 24, 1989 International 31 Pacific Soviet'n ew thinking' not matching deeds in military sector by Argus

The third quarter 1989 figures on the perfonnance of the dent economist before and duringWorld War IT, the skewing Soviet economy tell it all (Pravda, Oct. 29, 1989): Produc­ of investments in favor of defense under Gorbachov is more tion of civilian automobiles was thrown into reverse and striking today than it was at any time under Stalin, except, reached only 94% of the level of production of autos achieved of course, for World War IT itself. during the same period the previous year. The statistical All this present emphasis on defense is seen right on the summary said: "Production of machinery for the agro-indus­ firing lines in Central Europe facing NATO. Here Moscow trial complex worsened during the current year." By contrast, also claims that "great reductions" in its forces-affecting however, output of the defense-oriented "machine-building" especially tanks, so it claims-are taking place. What Mos­ component of the Soviet economy (Sovietese for output of cow does not admit is the connection between what it calls tanks, armored infantry vehicles, missiles and launchers, and in the military press "accenting ,quality over quantity" in other military hardware) chalked up great gains. This sector armaments, and what is going 011 in the actually deployed also scored over double the average rate of productivity of divisions in East Gennany, Czechoslovakia, Poland, and labor of the other heavy-industrial and civilian-industrial sec­ throughout European Russia. These forces are being con­ tors. Why? Read on. stantly modernized, souped up while at the same time being About one-half of the defense factories in the Soviet recycled, pennitting "economy of forces," as Soviet military Union double, when so ordered, as producers of civilian writers say (meaning some reductions). equipment (tractors, for instance); today such "conversion" Privileged Americanobservers have seen exactly what is to civilian production is affecting only about 5-10% of the going on right under their very noses on NATO's eastern defense factories. In the meantime, heavy-industrial and de­ front. For instance, after 14 members of the House Anned fense plants, which the Kremlin clearly favors, are kept on Services Committee, under the cbainnanship of Wisconsin defense production while being given the latest computer­ Democrat Rep. Les Aspin, visited this front last summer, driven technology (for automated production lines). Early one of their number, Rep. John Kasich (R-Ohio), admitted: in the Gorbachov period, the practice of keeping to such "We bought the hype [of Soviet troop reductions] and didn't priorities in the name of "apple-of-the-eye" (Lenin) defense look at the substance." needs of the state, regardless of pressing consumer needs. While the congressmen obviously could see relatively was freely admitted in the officialpress, especially in military little with their own eyes, they saw enough to conclude what print media. this "substance" was. This is well documented in the West The above introduction is pertinent to exposing as lies in such reports as the London-based International Institute present Soviet claims that its "new thinking" is leading to for Strategic Studies' annual MilitaryBalance and thePenta­ "unilateral arms cuts" and "massive conversion" of defense gon's 1989 edition of Soviet Military Power, as well as in plants to the production of cars, television sets, personal the House committee's own ambiguous but nevertheless computers, washing machines, refrigerators,and other sore­ shocking report. Concerning tanks alone, Aspin noted while ly lacking essentials (all of which, incidentally, have turned Gorbachov had promised in his mellifluous December 1988 up serious shortfalls during the third quarter). However, U.N. speech to withdraw six tank divisions from Central the opposite of what the Soviets claim about conversion, Europe, when the congressmen arrived in East Gennany, emphasizing consumer needs, etc., is the case: Heavy indus­ they found that only a regiment from one division had in truth try and defense remain the number-one Kremlin concerns. been withdrawn. And what happened to it? It was merely Moreover, two-thirds of Soviet investments go into heavy reassigned to another division within East Gennany, the industry and defense. One objective, according to Dr. Ells­ Democratic congressman said. worth Raymond, an internationally known scholar on the Concentrating in this analysish¢re only on tanks,one must Soviet economy who was the U.S. Moscow embassy's resi- observethe following about Soviet tankstrength and quality,

32 International EIR November 24, 1989 their tank production, and the West's ability to deal with this strength.Translat ed, the latter means that the Soviets bid on traditionally offensive spearhead-arm in anyone's army, es­ the diplomatic level for so-called arms reductions, cheat on pecially one applying blitzkrieg tactics as the Soviets do: whatever reductions are agreed, while de-fanging NATO • Late-model Soviet battle tanks, of which there are with soft talk about "new thinking" while the West engages twice as many types as in the U.S. Army-T-64A1B , T- in gradual, steady disarmament. 72, and T-8O-continue to be upgraded, the latter two with So far this ploy is working beautifully for the commu­ explosive reactive armor, known by the initials ERA, which nists. And that's one of the reasons why talk of a "coup" is an Israeli invention. ERA consists of a triple-layered against Gorbachov is nothing more than Soviet-concocted "skin" of armor embedded with small explosive steel contain­ camouflage for Comrade Smiley's (with iron teeth) great ers bolted onto both tanks and the Soviets' infantry fighting accomplishments as a one-man Fabric Softener vis-a-vis the vehicles (IFVs). When hit with an enemy shell, the armor West. plate literally explodes outwards. It can readily fend off As to how NATO might overcome ERA, if it could: NATO missile warheads, chemical shells, or anything else Well-aimed shots "between the ERA explosives" might do that might be thrown at it, with the exception of the neutron it. But according to experts, this is a little like repeating Lee shell (nuclear physicist Dr. Samuel Cohen's invention), Harvey Oswald's "lucky hits" at the back of JFK's skull in whose production the United States, unlike France, unfortu­ Dallas in November 1963. To partiallydefeat reactive armor, nately declined to undertake afterthe peace movement's and Defense News recently pointed out, a NATO gunner firing liberals' vicious attacks on the concept. anti-tank, non-line-of-sight (NLOS) precision-guided, fiber­ • Production of Soviet tanks now is some triple that of optic-cable missiles must be aimed, to use the old World War the United States, which has two types of battletanks , the n tank expression, "at the bogey wheels." In the case of M-60A1I3 and the famous M-lIM- 1A1 Abrams, models of Soviet T -72s and T -80s, this vulnerability is extremelysma ll. which are exported to Arab countries, among other places To penetrate the tank, a shell is exploded directly above its (thus, their "specs" and vulnerabilities are clearly known). turret. The Soviet tank production schedule-4,200 per year!-is The West also has a more doable trick up its sleeve that keeping pace with the demand to replace withdrawn obsoles­ could work better against ERA: double-whammy shells. cent T-55s and T-62s (but not the Soviets' aging farm trac­ Known as a "tandem-charge" shell, when fired at tanks in tors). The Soviets promised to withdraw six tank divisions (at two rapidly following volleys, the first detonation activates 330 tanks per division) and an additional quantity of tanks­ the tank's ERA box in the portion that is hit, while the second totaling 5,000 by 1991. Twenty-four other motorized rifle well-aimed hit is free to deliver a penetrating blow through and other types of combat divisions are to be put on a "defen­ the now unprotected armor--orso it is claimed. sive" footing, Gorbachov claimed. This makes the much-touted (by the Soviets) factor of The Soviet-equipped Warsaw Pact forces, including es­ stealth and surprise all the more critical. The latest Soviet pecially tanks, are becoming "leaner and meaner," better military literature, dating as recently as 1988, places no less protected, more accurately firing (precision), more compu­ stress on surprise than did Brezhnev-periodwritin gs. In fact, terized, more automatic. In other words, as Defense Minister it emphasizes it even more since, it says, the morefirepower Gen. Dmitri Yazov declared at a special military conference and accuracy the enemy possesses in his weaponry, the more held in the Kremlin Oct. 21 (Krasnaya Zveula, Oct. 22, crucial tactics become. 1989), qualitative improvements are urgently required since Put another way, if the Soviets can knock out Western a "sharpconfrontation [protivoborstvo] in socialist vs. bour­ defenses (including the latest anti-tank weapons) even before geois ideology continues [and with it] the need to have an they can be brought into action against advancing Soviet tank offensive strategy [by] making predominantly qualitative im­ divisions (known as "preemption" in the literature), it doesn't provements in military technology guaranteeing the highest much matter how fancy those anti-tank and other weapons requirements for defense of the Soviet Union and of its are . allies." Reducing Western readiness-indeed, resolve-to de­ The general singled out the Soviet Western Group of fend itself is thus from a strictly Soviet militarypoint of view Forces for special attention in this regard (Krasnaya Zvezda, the main motivating factor in current Soviet arms-control Oct. 22, 1989, p. 2), and not, say, those many divisions diplomacy and propaganda. The West may be attempting to facing China. fightSoviet militarymodernization-e .g., of tanks-on one Here Yazov simply echoed former Chief of the General front, the technological, while steadily losing ground on the Staff Marsal Nikolai Ogarkov' s plea four years ago to econo­ military-political front. mize on forces (quantitatively) by making qualitative im­ As Sun Tzu, the ancient Chinese militarystrategist (who provements (along parameters of firepower, precision guid­ is praised in thecurrent Soviet MilitaryEncyclopedia) put it: ance, protective devices such as ERA) in order to use "politi­ Defeat the enemy's tactics and strategy and you will win­ cal measures" in the name of enhancing Soviet military maybe without even firing a shot.

EIR November 24, 1989 International 33 Socialist International maps out new plan to help Communistparties

by Mark Burdman

With backing of the Soviet and British governments, the told the press that an invitation ,had been extended for such Socialist International is on a mobilization to sabotage the a visit by the Soviet leadership, when Brandt visited the revolutionary political processes now breaking out in Central U.S.S.R. last October, and this invitation has been rapidly and Eastern Europe. This mobilization was mapped out dur­ accepted. Brandt also stated that the Socialist International ing a gathering of the European branch of the Socialist Inter­ will be holding its next global meeting in Geneva, Switzer­ national, the so-called "Euro-socialists," held in Milan, Italy land at the end of November, at which time it will officially during the week of Oct. 30. issue its platform for policytoward easternEurope . Well-informed Central European sources warn that the The U.S.S.R., meanwhile, is playing the "Socialist Inter­ new Ostpolitik offensive of the Euro-socialists is part of a national card" as its trump. At the Oct. 19 meeting of the broaderstrategy by the internationalsocial-d emocratic move­ Politburo of the Soviet Commuilist Party, a leading agenda ment, to ally with the communist parties of East and West item was the upgrading of relations between the party and Europe, in a new global strategic "convergence." In line with the Socialist International, according to an Oct. 20 Radio this, the head of the Italian Communist Party (PCI), Achille Moscow news item. Radio Moscow said that this decision Occhetto, announced on Nov. 14 that his party will soon hold had been taken on the basis of a reportissued to the Politburo a new convention, to "re-found" itself, and will change its by Gorbachov, on the subject of his meetings earlier that name, dropping the designation "communist." The purpose month with Willy Brandt. of this, PCI leaders frankly stated, would be so that the PCI France's Le Monde reported on Nov. 3 that a growing could officiallyjo in the Socialist International. The London number of Soviet "reformers" are citing the social-democra­ Guardian reported that this was the subject of the discussions cies, particularly those of West Germany and Sweden, as which Ochetto had during the week of Nov. 6 with British potential models for the U.S. S .R. One related proposalcircu­ Labour Party leader Neil Kinnock. PCI sources report that lating in such circles, says Le Monde, is for the re-creation Ochetto will discuss the matter with Soviet leader Mikhail of the old unified Second International, which existed until Gorbachov when the latter visits Rome at the end of No­ the time of the 1917 Bolshevik Revolution and the launching, vember. of the competingThird, or Comtnunist, International. Ochetto's Nov. 14 announcement on the PCI "name Re-creating the Second International change," and his end-of-November discussions with Gorba­ The Milan "Euro-socialist" meeting was held under the chov, should be seen in this light. coordination of Willy Brandt, the former West German chan­ cellor. Participants included Spain's Prime Minister Felipe Countering 'Food for Peace' Gonzalez, France's Jacques Delors (president of the Europe­ One obvious focus of the "Euro-socialists" has been to an Commission of the European Community), Italy's Bettino counter the "Food for Peace" initiative of Lyndon LaRouche Craxi, and Austria's Franz Vranitsky. The theme of the meet­ and associates. In a speech in Berlin in October 1988, La­ ing was to formulate a "Euro-socialist" policy approach to­ Rouche had called for providing food aidto the Soviet Union, ward the economic and political crises in the East bloc. Ac­ in exchange for Soviet recognition of a Western economic cording to reports in the Italian press, Brandt insisted that ini­ development program for Poland and the reunification of tiatives toward Eastern Europe not be taken by individual Germany. WesternEuropean countries, but rather as joint initiatives that The Milan daily Corriere della Sera on Nov. 4 cited would involve a central role for the Socialist International. Willy Brandt saying that an urgent priority of the "Euro­ On Nov. 3, Brandt announced that the Socialist Interna­ socialists" will be to create a "Food Bank" that can mobilize tional would be sending a delegation to Moscow during the immediate food aid to those countriesin EasternEurope most firstdays of 1990, headed by France's PierreMaur oy. Brandt in need.

34 International EIR November 24, 1989 But since the Socialist International has taken the lead in pushing "ecological-fascist" global initiatives that are reduc­ ing world food production, where are they going to find the food? From June 20-22 of this year, the Socialist Internation" al had its l00th anniversary meeting in Stockholm, and proclaimed "environmentalism" as the "new mission" of the movement for the coming years . Socialist International Politicalst alemate speakers endorsed the Soviet government's proposal for "in­ ternationalecological security" and embraced precisely those approaches which would guarantee a collapse of food pro­ continues in Pakistan duction-including "sustainable development," "ecological­ by Ramtanu Maitra ly balanced · development," "appropriate technologies," "in- · tensified energy conservation," and a phasing out of use of fertilizers and chemical pesticides. The conferences's policy The victory of the ruling Pakistan People's Party (PPP) gov­ document stated that controlling "world population growth" ernment over the Combined Opposition Parties (COP), by would be a high priority . defeating a no-confidence motion on Nov. 1, has provided the duly elected governmentin Pakistan another lease on life. Mrs. Thatcher, Social Democrat However, the rumblings heard in Pakistan suggest that unless In West Germany, the predominant factions in the Social Prime Minister Benazir Bhutto can come to grips with the Democratic Party (SPD), working in parallel with the West ethnic and provincial problems that are making the country German Green Party, are going to absurd lengths to destroy ungovernable, the well-deserved victory may tum out to be the political breakthroughs that have occurred in association pyrrhic. with the opening of parts of the Berlin Wall. One typical act, Prime Minister Bhutto is simultaneously facing pressures was SPD Mayor of West Berlin Walter Momper's attack from abroad, as the International Monetary Fund demands on Chancellor Helmut Kohl for using the expression "the further economic austerity measures, the drugtraffickers es­ German people." Momper insisted that there exists a separate calate their own campaign against the country, and Washing­ "East German people" that is not favorable to the reunifica­ ton, Moscow, and competing Afghan groups all jockey for tion of Germany. For those who have seen the signs carried power in the region. by East German demonstrators in Leipzig on the night of The COP, led by the Islami Jamhooria Ittehad (IJI) chief Nov. 13, calling for, "Free elections in a united Germany," and Punjab chief minister Nawaz Sharif, had sought to re­ and who have seen the joyous scenes of East and West Ger­ move the Bhutto government by initiating a no-confidence mans embracing each other at the border crossing-points, motion in the National Assembly. The charges against the Momper seems not only to be a liar, but a fool . government, succinctly expressed by Syeda Abida Hussain, Even more absurdly, the SPD is taking credit for having an independent member from Jhang, Punjab, who had sup­ caused the process of revolutionary change in East Germany, ported Bhutto in forming the government about a year ago, through its "social-democratic ideas," and through Brandt's were " inefficiency and corruption." While inefficiency and Ostpolitik. In fact, within West Germany, the SPD has been corruption are certainly problems, the political crisis that the main institutional supporter of the East German Commu­ the prime minister faces is more deep-rooted and cannot be nist party (SED) nomenklatura, having for years maintained decided by simply winning a no-confidence motion in the an SPD-SED party-to-party "round-table" structure. Should National Assembly. the protocols of some of these agreements be published now , side by side with the past period's SPD statements of support Mixed signals for the unpopular SED boss Egon Krenz, the SPD could This became evident soon after, when Baluchistan Chief suffer major political embarrassmentsin West Germany. Minister Nawab Akbar Bugti, no friend of the federal govern­ But full blame should not fall on the shoulders of Momp­ ment, told a newsman that ' 'stranger things" will soon begin er, SPD head Hans-Jochen Vogel, Brandt, and the rest. Brit­ to happen. COP leader Ghulam Mustafa Jatoi, a former PPP ain's great conservative anti-socialist, Prime Minister Mar­ stalwart and chief minister of Sind province, did not mince garet Thatcher, has come up with a new scheme to head off his words in announcing the COP's determination to continue the reunification of Germany. According to highly informed with its efforts to unseat the government. As a gesture of British sources, Mrs. Thatcher has become a social-demo­ reconciliation, Prime Minister Bhutto has reportedly sent out crat, and advocates that East Germany be encouraged to feelers to at least two prominent opposition leaders who had transform itself into a "social-democratic" nation! Perhaps fought alongside her against the martial law regime of the she plans to be a guest speaker at the next convention of the late President Mohammed Zia ul-Haq, and asked them to Italian Communist Party . resolve their differences with the ruling party .

ElK November 24 , 1989 International 35 But, as has occurred often during her one year in power, unadulterated Mohajir grouping, trying to exert its urban Bhutto's gestures are confusing. On the one hand, through muscle to control the major co�ercial centers of Sind. the so-called feelers, she is appealing to "like-minded" poli­ This situation has put the ruling party on the defensive ticians in the opposition to bury the hatchet, while on the on its own turf. While the PPP, which promotes a strong other, she has taken into her cabinet two opposition members and unified Pakistan, has long:been at loggerheads with the who voted for her in the National Assembly during the no­ Sindhi secessionists, the MQM's anti-Sindhi postures and confidencemotion and drew the wrath of the COP. The latter insistence on controlling the p0pulous urban centers of Sind move is widely read in Pakistan, particularly in Punjab, as has made the grouping unpalatable to the PPP rank and file. yet another indication that Prime Minister Bhutto is keen to Following the 1988 electioqs, Bhutto neededthe MQM's confront the opposition and not have a dialogue with them. support to form the governmeot, and entered into an agree­ Prime Minister Bhutto's major headaches are located in ment promising to meet a long list of MQM demands. Punjab and Sind. (This, however, does not mean that she has Though the MQM continued CO support the government in the other two provinces, Baluchistan and the North West the National Assembly, MQM leaders have been complain­ Frontier Province (NWFP), under her control.) ing for some time that the prime minister has done next to nothing to fulfill the post-electibn agreement. Opposition from Punjab Meanwhile, months of violence involving the MQM and Punjab, the most populous and prosperous province in the Sindhis, which continues to this day, have seen hundreds Pakistan, is under the control of the DI, although the ruling dead in both rural and urban areas of the province. It was party had won more National Assembly seats in Punjab than this more than anything else that finally snapped the uneasy the Ill. MQM-PPP alliance. Though the MQM is now firmly in the Nawaz Sharif, the Punjab chief minister and secretary­ opposition camp, it is debatable how long they can remain general of the Islami Jamhoorie Ittehad, is a man with few in a camp dominated by the Punjab-led opposition. scruples. Backed by money-power and friends in powerful More cificallyspe , the situation in Sind is fast heading places in the Army and abroad, Sharif has declared a virtual toward a point of no return,and neither Bhutto nor her party war against Bhutto and her government. A protege of the late stalwarts in Sind have shown · any effort, besides blaming Gen. Zia ul-Haq and scion of the wealthy Ittefaq group of each other, to tackle it. It is evident that the PPP workers on industries, Sharif can be crude and vulgar when he chooses the groupin Sind arebecoming increasinglypolarized against to be. Besides being powerful, Sharif is also scheming. He the MQM; bloodletting between the two groups has already has appointed a public relations firm in the United States, started. paying a tidy packet of money every month, to lobby for the Prime Minister Bhutto has� so far shown little ability to opposition in Washington. His hatred toward the Bhuttos is handle either the MQM or Nawaz Sharif. It is also evident well known; he has publicly promised his followers that he that the DI, disruptive as it is, has a strongbase in the Punjab. will throw the remaining members of the Bhutto family into This was made clear a few days after the COP's failure to the Arabim Sea. unseat Bhutto, when III scored an unexpected victory in the by-election contest for the Jehanian National Assembly seat The Sind cauldron in Punjab. The seat had fallen vacant following the death In Sind, the home province of Benazir Bhutto and the of an elected PPP member, yet in the by-election, the DI only province where the PPP secured an absolute majority in candidate, Irshan Hussain Mldtla, won the seat by 2,900 the provincial polls, an urban political phenomenon, Mohajir votes. Although the PPP has charged "irregularites" in the Qaum Movement (MQM), has become a thorn in the side of poll, some PPP insiders acknowledge that theloss of the seat the PPP. is indeed "a blow." The MQM is nominally a non-political grouping of those Continuation of the stalemate between the ruling party Muslims who migrated from India following partition in and the Opposition has dangerous consequences. Recently 1947 , and has since emerged as a well-knit group with bases ArmyChief of Staff Gen. MirzaAslam Beg remindednews­ in Karachi, Hyderabad, Sukkar in Sind. Because of a large men that his suggestion followihg theNovember elections to concentration of population in the cities of Sind, which other­ form a broad-based government is still a valid one. PPP wise consists of vast tracts of semi-desert arid lands, the officials, however, ruled out the idea of a coalition govern­ MQM has emerged as a political force. Its strength became ment with the COP at the federal level. And in anothercomer , clear in last year's election, when it captured 13 National the formerJ amaat-e-Islami chief and prominentJamaat lead­ Assembly seats and more than 25% of the Sind Provincial er during the days of Zia ul-H"I, Mian Tufail Ahmad, has Assembly seats. An Urdu-speaking group in the midst of the declared that Pakistanhas had enough of democracy. Ortho­ Sindhi-speaking provincial majority, MQM has for years dox Muslims, modestin numbersbut with connections to the challenged the Sindhi nationalists and various secessionist Army, have long been sharpel1ing their knives against the groups. Shunning political alliances, MQM has remained an PPP.

36 International EIR November 24, 1989 Peruvians vote mandate for totalwar on Shining Path terrorists by Mark Sonnenblick

On Nov. 11 millions of Peruvians braved terrorist threats to for the sake of democracy, adhered to the "strike" called by cast their votes in Peru's municipal elections. In doing so, the terrorists. they rej ected any thought of concessions to the Shining Path ("Sendero Luminoso") terrorists. Their courageous exercise Mandate against gutlessness of the right to vote under such circumstances is a mandate Peruvian pornographic novelist and presidential candi­ for total offensive war to wipe out the communist assassins date Mario Vargas Llosa was not thebig winner in that coun­ and their legal support networks. President Alan Garcia's try'sNov . 11 municipal elections, as the Washington Post ruling APRA party , which has been pussy-footing toward and other U.S. media would have one believe. The vote was Shining Path, was repudiatedeven by many of its traditional not fo r anybody . Rather it was against Shining Path, against supporters. the Marxist left, and against the economic austerity policies Shining Path'sstrategy was to move toward dual power of President Alan Garcia. Garcia was elected in 1985 with by aborting the elections in the Andean highlands and causing 48% of the vote going for his APRA party . On Nov. 11, a low turnoutin the cities. So far thisyear, 130 mayors , local APRA received only about 17% of the Lima vote and lost all judges, clerks , council members , and municipal candidates 18 of the Lima district offices it had held. Poor voters, who have beenmurdered by the terrorists. Dozens of villages and had given the hodge-podge United Left 40% of the vote in towns are at present without any political authorities. In a 1985, now repudiated it because it includes the pro-Moscow typical case, on Nov . 8 a guerrilla squad entered an Andean Communist Party and others sympathetic to Shining Path. village before dawn, herded the 200 residents to the plaza, According to one exit poll, 49.6% of the vote in Lima declared themselvesa revolutionary court, and triedand exe­ went to a television magnate Ricardo Belmont. His political cuted eight people. positions were unknown to the electorate, which appreciated Over 500 candidates dropped out of the race, leaving him for the "bread and circuses" he offered on television. scores of districts with no candidates at all. Shining Path Belmont let it be known he was supporting Vargas Llosa in believed that if its intimidation were somewhat successful the April, 1990 presidential elections. That is certainly a now, it could completely thwart the April 1990 presidential boost to Project Democracy's pretty-boy candidate. But the elections and force the governmentto its knees. This strategy candidate formally identified with Vargas Llosa in Lima failed in all places heard from so far . polled, at best, 25%-not much more than the ultra-left or In the bleak Andean city of Ayacucho, whose universi­ Garcia's candidate. ty is the birthplace of Shining Path and where it carries What's more, Belmont gave himself much needed credi­ out assassinations every week, voters defied a 24-hour bility by including on his ticket respected civic leaders such curfew decreed by the terrorists and threats that those who as Carlos Pastor. Pastor has led thousands of pensioners in voted for "the bourgeois state" would be killed. Most campaigns against what he calls the Garcia administration's ballots cast there were blank, an unmistakable repudiation "slow but sure death" policy of cutting pensionsand medical of Shining Path and of the politicians who dared not care payments to the elderly. A supporter of Lyndon La­ appear in public after the mayor was murdered. After the Rouche, Pastor is likely to fighttooth and nail against Vargas elections, at least seven people were murdered for having Llosa's pledges to impose even more genocidal cuts in gov­ voted. ernment spending. In the capital city Lima, voter turnout was so great the As for Vargas Llosa, in a five-page adulatory feature in polls had to be kept open for an extra two hours to let all the New York Times Magazine Nov. 5, he said that"People vote. Almost all voters walked to the polls, some very long have suffered so long, they are willing to suffer a little long­ distances; bus owner-operators, not willing to risk their buses er-if we can show them it is not for nothing ....We are

EIR November 24, 1989 International 37 offering them modernism, capitalism, something earth­ does not inspire confidence, a curfew could serve ill-inten­ bound, pragmatic." tioned ends ....Also , it is not good for democracy during His liberal economic "restructuring" certainly does an election period." promise more suffering. He promises to fire thousands of For him, "democracy" means dialogue with the commu­ state employees, sell offor close down state enterprises, and nist assassins. He pledged in July that, if elected, he would eliminate remaining subsidies on food and other essentials open dialogue with the Shining Path. His top adviser, Fernan­ which mean the difference between life and death for the do de Trazegnies, confirmed to the Baltimore Sun Oct. 26 poorest Peruvians. He promises to reduce consumption and thatthe candidate had offered such talks, "but he is not hold­ increase exports to resume payments on the foreign debt. It ing his breath for an answer. They are not the talking kind." is nearly identical to the program which Harvard economist He holds no such olive branch to those fighting to save Jeffrey Sachs is bringing to Poland, and to the International the republic from Shining Path. In 1984, he investigated Monetary Fund (IMP) "shock" imposed on Peru from 1976- the deaths of seven journalists apparently killed by illiterate ' 85. Those "free market" policies put Peru on the verge of village militia men who mistook the strangers for part of the being overwhelmed by the cocaine mafiaand its willing part­ terrorist band which had recently killed several peasants. He ners, the narco-terrorists. charged that the army had killed the journalistsfor trying to investigate "military atrocities. " The two 'paths' march together Much like the Shining Path guerrillas, off-beat existen­ tialist Vargas Llosa is a monster bred by foreign powers to wreck Peru. During the 1960s he devoted himself to remak­ Mario Va rgas Llosa, ing Ibero-American culture to fit Che Guevara's ideal of "the new man." He was constantly in Havana, receiving and pornographer and worse giving literary awards. He told the New York Times Magazine that he soured on Cuba in 1966, when he objected to its A distinguished militaryoffi cer. retired general German Par­ attempt to "cure" homosexuals: "Poets and dancers I knew ra Herrara. in a caustic commentarypublished in the Lima were being rounded up for 'antisocial behavior' and sent to weekly La Tribuna Oct. 23 and translated below. questions the country to work gangs with common criminals. It was the sanityas well as the moralityat the international bankers' terrible, the suffering." fa vorite Peruvian presidential candidate. who confesses that Vargas Llosa apparently also opposes "repression" of even his fa ther considered him "strange." Parra served as narcotics. He signed the Inter-American Dialogue's 1986 transport and communications minister earlier in the admin­ report, which advocated "selective legalization" of narcotics , istration of President Alan Garcia. because "waging war on drugs costs money. " The State Department's Project Democracy, a.k.a. the ...My article, "What Varguitas [=little Vargas] said about National Endowment for Democracy, picked Vargas Llosa the Army," appeared in the Lima daily La Republica on Sept. out of the literary gutter in 1987. Suddenly, he was agitating 12. In it I warn of the agnostic writers error in going to well-funded street mobs to smash Garcia's effort to change Chile to see a theater version of his novel Pantaleon and the the banking structure fromone laundering cocaine money to Visitors. In my opinion and that of my former superiors in one financing productive industry. Most of the mobs were the hierarchy, that novel offends the Army. Is it fiction or from the "informal economy" championed by Hernando de reality? Varguitas says Pantaleon and the Visitors is based Soto, a free-market ideologue who celebrates the black mar­ on a real event. On a trip to the jungle he discovered that the ket hustler as the hero in the fightagainst "statism." President border troops accepted visitors in their barracks. Reagan and Vice President Bush feted de Soto in Washing­ He says that Pantale6n shows how ridiculous military ton, holding out his theory as a model for the free market bureaucracy is. On the other hand, The City of the Dogs changes needed in Latin America. Last week, de Soto got shows the violence, hypocrisy, and deceit which could take the same reception in Moscow. He remains Vargas Llosa's place in military circles. Varguitas reveals that he came to political controller. know the military mentality and its ways while attending the Vargas Llosa is ready to subjugate the nation-state to the Military College. This knowledge made him think that the terrorists' will. President Garcia is under intense pressure prostitutes' service was organized the same way as the Army, even from within his own APRA party to recognize that a thatis, according to a very strict, very closed and hierarchical state of war exists, and to take appropriate military and other bureaucracy in which ends and means are readily deformed. measures.As terroristbombing s, assassinations, and "armed He argues that such rigid and strict hierarchies negate the strikes" escalated in the build-up to the Nov. 12 elections, individual's spontaneity, freedom and creativity .... Vargas Llosa fought even proposals for a curfew. He said in Agnostic or atheist? Varguitas confesses himself to be a Lima television interview Oct. 26, "Since this government an agnostic and not an atheist. �'An atheist believes God

38 International EIR November 24, 1989 The novel does not say whether Fonchito kept writing. The elegant and erudite form of this work does not compen­ sate for the theme: the relationship between eroticism and pornography, pornography with obscenity and obscenity with lewdness .... He makes religion pornographic: "I have prolonged and repeated orgasms . . . like Archangel Gabriel ." "The bath­ room was his temple. The sink was the altar of sacrifices. He was the High Priest." "It is possible that God exists; but, even so, at this point in history, with all that has happened to us, would it mean anything at all?" ... "We were a woman and a man, and now we are ej aculation, orgasm and a fixed idea. We have become sacred." "Defecate, excrete­ synomym for enjoyment? Sure, why not?" The author delights in unnecessary details of sense ma­ nipulation. How can that be explained? It is worth remember­ ing what Varguitas says: "The most authentic autobiography of a novelist are his novels." . . . Conclusion: Elogio de La Madrasta is irreverent. It of­ fends religion. It is pornographic, obscene, impudent, sensu­ al . It deserves the same reproach Rigoberto gave his son: "How could you have invented such indecent filthiness?" Is this merely the absence of God? The question of the agnosti­ cism of a candidate to the presidency of the republic of a Mario Vargas Liosa, the darling of the U.S. Establishment's free Catholic country is a public matter. market cult. does not exist. An agnostic declares himself incapable of postulating the existence or non-existence of God." He does not take into account that the impossibility of proving God's I n Defense Policy non-existence is the best demonstration that God exists. An agnostic does not have God before him at all. It is worse to and as a be an agnostic than to be an atheist. This would explain his Military Phenomenon lack of respect for Christian truth .... Elogio de la Madrastra. This novel [by Vargas Llosa] offendsChristia nism. Therefore, it is worth reflecting on. In brief, the novel tells the story of Rigoberto, a widower with a single son, Alfonso, who remarried one Lucrecia. Rigober­ by Professor to is a sexual pervert. He centers is pleasure on the body. Friedrich August Lucrecia is a docile lady at the will of her owner, "as a F�hr. von der Heydte Christian wife should be ." He also had sex with his servant, lustiniana, "his favorite." Alfonso, the 14-year-old "Fonchito," also showed "a sin­ Order from: gular, ingenuous infantile wickedness, accentuated sexuali­ Ben Franklin ty, and ability at writing. He was a "cruel and cold little Booksellers, Inc. deviL" He managed to seduce his step-mother. He had sex 27 South King St. with her. Cleverly and remorselessly, he let his father know Leesburg, VA 22075 of what happened by means of a homework assignment, "Composition with free choice of theme: Panegyric to my $9.95 plus shipping Step-mother. " ($1 .50 for fi rst book, He got his father to kick him out "like a dog." Rigoberto $.50 for each additional book.) later transformed himself into "a soul in pain" and "into an Bulk rates available. overly religious man and a zealot, like when men think they are going to die."

EIR November 24, 1989 International 39 dential candidate in the Liberal Party who had been an intran­ sigent enemy of the cocaine lotlds, and was assassinated by the Colombian drug mafia in August. But the sham broke down after one journalist, picking up on the content of the ADC's leaflets, asked how long would Samper be prepared to wait before he would considet the war on drugs unsuccess­ ful and propose legalization. He! answered: "Not a long war. ADC exposes pro-drug At least not one generation, because then all Colombians are dead." Samper in Sweden A journalist asked what mellsures he would take a year from now. Samper answered that it was hypothetical, but then continued: "I would perhaps re-analyze the situation. by llf Sandmark Last week's poll in Medellin �howed that 72% supported dialogue. It is understandable because people suffer. That Colombian presidential hopeful Ernesto Samper Pizano must be considered. That is wh� people ask for." slipped into Stockholm, Sweden on Nov. 1 for a low-profile Pressedon why, as campaiglk manager for the 1982 presi­ visit. The candidate of the Colombian Liberal Party's dope­ dential campaign of Alfonso U>pez Michelsen, he had ac­ pushing wing had just arrived from Paris, where his hopes for cepted a huge contribution fr<)m cocaine kingpin Carlos high-level meetings with the government had been dashed. Lehder, the candidate stammered, "That was a long time ago After the Anti-Drug Coalition (ADC) of France, founded ...the drug bosses were not known," and "that was before by co-thinkers of American statesman Lyndon LaRouche, all the killings." However Sam�r confirmed that the money circulated a fact sheet on Mr. Samper's career as the longtime had been used to buy lottery tickets in a lottery where a car mouthpiece of the financier faction that wants to legalize was the prize. . drugs, Samper, who is now pretending to be a supporter of The Swedish National Radi� news at 6 p.m. blasted Er­ Colombian President Virgilio Barco's all-out war on drugs, nesto Samper Pizano as a proponent of legalization of drugs, was exposed before the Paris press corps as having called for reporting: " 'In case the legal and police efforts fail, I am for a "dialogue" with the drug mafia only two months ago. legalization of drugs,' says Samper Pizano from Colombia, In the Swedish capital, he apparently hoped to avoid on a visit to Sweden. But legalization of drugs he claims is further embarrassment. Samper's meetings were kept secret, not anything that can be done unilaterally; 'it has to be a and the only reporters invited to his press conference were multilateral decision.' " The radio report went on to say from the Spanish-speaking programs of Swedish radio, the Samper Pizano has some chance to become the candidate of main news agency IT, and the conservative daily Svenska the Liberal Party in the upcoming presidential elections. If Dagbladet. But some other persons fromthe police and other he succeeds in that, he will likely become the next President papers attended, alerted by the informational campaign car­ of Colombia, but "His critics claim that he is running the ried out by Sweden's own Anti�Drug Coalition. drug traffickers' interests in his I unclear stand on drugs and Samper's visit was hosted by Sweden's governing Social demands for a dialogue with the drug barons. Democratic Party, which had booked the room for the press "Galan, who was the natural presidential candidate for conference in the same building as the party headquarters. the Liberal Party, was assassinated. He had a very clear The host was the party's internationalsecretary Gunnar Sten­ standpoint on fightingthe drug barons. The man who is going arv. More official support than that is hard to get! to succeed him is much more unclear in his stand on drugs," But the secrecy was spoiled by the ADC. In the morning said the radio report. the ADC poured out leaflets in the area of the trade union headquarters in Stockholm, and at lunchtime it leafletted 'Global solution' outside the restaurant where ministry employees have lunch, The new "anti-drug" cover Samper Pizano has assumed exposing the Foreign Ministry for hosting this presidential is called the "global answer," on the basis of the fact that, candidate. The ADC carried picket signs denouncing the "If you get rid of one Gacha [a cocaine kingpin] you will Swedish government for sabotaging the Colombian war on get 20 new Gachas in Brazil. Now there is a war against drugs. The protest continued outside the press conference two guys. What I want is to give the problem a global long enough to give the leaflet to Samper and his followers, solution." The former legalization campaigner's call for as well as to passersby and all the automobiles in the area. support for Colombia contained a demand for "military aid, not bombers as the Americans have supplied, but Sham breaks down electronic surveillance equipment." That was the only As in Paris, Emesto Samper Pizano presented himself as militant element of Samper's "war on drugs." His further a close friend of Carlos Luis Galan, the frontrunning presi- demands were for "economic aid to build peace" and a

40 International EIR November 24, 1989 call for the importing countries to stop consumption. action plan from the World Conference on Drugs last year. The campaign for a global war on drugs put forward Nor has Sweden even officially responded to the demands by this representative of the drug lobby in Colombia was fromPresident Barco to stop drug money laundering, and the evidently to be coordinated with similar proposals from weapons and chemicals trade with the traffickers . the European side. Italian Prime Minister Giulio Andreotti Replacing the drug plantations with more beneficialcrops met with his Swedish counterpart Ingvar Carlsson at the is presented as the "peaceful" solution. While not ,-"rong in end of September in Rome, to launch a major initiative itself, for years proposals for crop substitution have been in the drug field, on the occasion of the official visit of used to block police interventions against drug plantations, Carlsson to Italy. while U.N. "experiments with alternative crops" have been In an article in the Stockholm daily Dagens Nyheter Sept. conducted by endless groups of anthropologists. The trick 20 Prime Minister Carlsson announced that he was going to is that before an alternative is found, the villagers' drug put forward a "global action plan against drugs" at the United plantations continue in order to get their cooperation in the Nations. Carlsson, reflecting his discussion with Andreotti, "experiments . " If the military does not move in and clear out called for no direct governmentaid to Colombia. The formu­ the drug plantations, such U.N. protection and fake "anti­ lations were: "The governmentof Colombia deserves all our drug" activities can go on for years . There is no need for admiration for daring to challenge the powerful cocaine syn­ research on alternatives, since the ordinary food crops are dicates. But it is getting more and more clearthat Colombia what is needed and can be supported with dirigistic agricul­ cannot master this growing problem alone. For Colombia tural policies-in Colombia's case primarily by the restora­ and other governments in the same situation to be successful, tion of the international coffee agreement and a solution to all countriesmust conduct a global war against drugs." Carls­ the debt crisis. son went on, "From the Swedish side we are finding out Besides Italy and Sweden, the countries active in the the possibilities to increase the type of support that goes to U.N. 's informal work group for these international drug ini­

Colombia, for instance via private organizations." Carlsson tiatives are , according to one government official, Jamaica, referred to the murder of Galan and called for a halt to all the France, the United Kingdom, and the Soviet Union. suffering. A Swedish governmentofficial stressed that the interna­ Swedish police want action tional Swedish drug policy "entirely goes through the U.N." On Nov. 1, the same day Samper Pizano visited Now, when the fight is increasing, "our policy, then, is to Sweden, the national Swedish police presented their new strengtnen the multilateral cooperation," he said; i.e., no anti-drug manifesto, built around "88 clauses" about "inter­ concentration on Colombia. national and domestic cooperation against drugs, smug­ Carlsson sent his minister of foreign aid, Lena Hjelm­ gling, trafficking, drug abuse, and the treatment of drug Wallen, to Vienna to meet with the U.N. Division on Drugs, users," all in the form, "The Swedish police think to which Sweden is one of the five largest contributors, and that. . . ." It covers everything from a wish to "develop his minister of youth, Margot Wallstrom, to New York to drug detectors that can be used in field operations" to the U.N., where on Nov. 2 she presented theCarlsson Global lowering restrictions on telephone and video bugging of Action Plan Against Drugs. No minister was sent to Bogota. suspects. At the well-attended press conference, national No Swedish liaison policeman is being sent to Colombia, police chief Bjorn Eriksson in his 40-minute presentation and no Swedish bulletproof Volvos or Saabs are being given stressed the urgency of fighting the strong forces in Europe to protect Colombian judges. Military supplies, especially who advocate "drug legalization, despite the fact that for two-way radios, are not even whisperedabout, and the"neu­ the moment no Swedish proponent is actively working trality" postureof Sweden was raised, according to Swedish from such a standpoint." Eriksson warned especially about radio, by a Swedish government anti-drugofficial as a reason the strong drug-legalization drive which is under way in for not giving any supportto Colombian effort. Switzerland. Carlsson's focus, he wrote, is to strengthen the U.N. After two questions from the press on the dangers for drug control institutions (another source explained that the "personal integrity" of more bugging, an EIR reporter asked idea is to set up a "task-force," for operationalcoordina tion); Eriksson to comment on the fact that "the Swedish Foreign acknowledge the political and economic problems connected Minister and Swedish Social Democratic Party Board today to the drug problem; and give active supportto drug-produc­ hosted one of the foremost proponents of legalization of Co­ ing countries with advice on new drug control laws, efficient lombia, Samper Pizano, as their guest." The police chief organizing of the police and customs, and the U.N. 's crop insisted he had no idea of such a thing taking place. A big substitution program. silence fell on the room. Reality had struck, and no one felt At best, the U.N. channel is a smokescreen for doing eager to ask any more questions; and so, before the press nothing serious. Sweden so far has not even implemented the conference ended EIR was able to brief the press corps on 1988 U.N. Convention on micit Trafficking, much less the SamperPizano 's crimes.

EIR November 24, 1989 International 41 Interview: Lt. Gen. Jorg Zumstein

The danger of the'S witzerland without an Army' initiative

Michael Liebig and Laurent Murawiec conducted this inter­ gation since the Peace of Paris in 1815. And if the Anny is view on Oct. 18 in Miinsingen, Switzerland, with Lieutenant dissolved here , then the Swiss will no longer be capable of General (Korpskommandant) Dr. Jorg Zumstein, fo rmerly discharging their international obligation. Chief of General Staff of the Swiss Army, now retired. Thus I believe that this initiative strikes at the heart of the Zumstein emphasized that the views expressed in the inter­ Confederation. And for that reasCl>nwe must say to this attack, view as his personal views, as a private individual, and that "They beat the sack, but mean ;the donkey." They want to he bears the sole responsibilityfo r them . abolish the Anny, and thereby ate jeopardizing the state.

EIR: It appears to us that the "Switzerland without an EIR: Where does this initiative come from, who is behind Anny"initiative is directed against the fundamental tradition it? of the Swiss military system, against the tradition that de­ Zumstein: This initiative doubtless has a whole tangle of fense of Switzerland's national sovereignty is guaranteed by roots. You will understand whete it comes from if I tell you the people themselves. that the target is the "sacred cow"-the Swiss military-as Zumstein: The Swiss Confederation developed out of an Max Frisch and other writers have put it. In this country, de­ alliance of three small political units. It was a purely defen­ fensive proposals have actually Very seldom encountered any sive alliance, with the primary goal not to tolerate foreign resistance. If, for example, you consider the armamentpolicy law in the valleys of Switzerland. If you want to succeed in of the Confederation, thenessent;.ally things always or almost that,then you need militarypower and you must work togeth­ always go very well for the majoJ!armament companies. I can er. Therefore, the Confederation arose as a defensive alli­ only recall a very few proposals to which Parliament said no. ance, as a union for mutual military assistance. Therefore, Often, the parliamentary commission introduces small cor­ an initiative, "Switzerland without an Anny," is now en­ rections or requests. But, essentially, the parliamentary mili­ croachingupon the essential content of our self-understand­ tary commissions-and, with them, the upper and lower ing as a confederation. houses of Parliament-have recognizedthat what is proposed Further, this initiative is not constitutionally tenable: The is necessary. In other areas-in economic or social policy­ purposeof the Confederation is defense of the independence this is not so clear-cut; thereare frequentlyreductions or revi­ of the fatherland externally-ensuringpeace and order inter­ sions in proposals. This situation has long been a thorn in the nally and guaranteeing the well-being of the citizens. The side of certain leftist politicians.: Here is the central issue of well-being of the citizens-today that is viewed more social­ the "Switzerland without an Army" initiative. They would ly and economically. But behind that, of course, self-deter­ like to see this "sacred cow" slaughtered, and hence this cru­ mination and the guarantee of freedom are also found. sade, thisreligious campaign against the military. Naturally, The initiative is likewise contrary to international law there are among the initiators Of "Switzerland without an because we are obligated to neutrality. We must ensure this Anny" some of the dregs of the " '68ers," who wanted to neutrality with weapons. That has been an internationalobli- change the state and society using the motto, "Macht aus dem

42 International EIR November 24, 1989 Staat Gurkensalat" ("Tum the state into pickled salad"). In war. Covert war is a feature of totalitarian power, where the 1968, there wasno revolution among us-as elsewhere-but human being functions a mere object of the state . The "enemy ' the '68 generation is today settled into official positions and image" must also be seen in an abstract philosophical way. pretends to be more or less middle-class. We take the mentality of a state and proceed from that to define how the war will be constituted that can be carried on ElK: Do you have indications that the initiative is not only with such a mentality and on the basis of identifiablematerial growing on the national soil, but that there are also foreign preparations. Thus we arrive at covert war. Today, it is in connections with respect to ideology, organization, and fi­ the foreground. Our Army has fundamentally prepared itself nances? for that. Zumstein: Yes, there are . Perhaps the Swiss journalistand filmmakerBrodmann , who has sold his filmsto West German ElK: For the first time in the 40-year postwar history, the television. He is making propaganda for a "Switzerland with­ postwar structures are fluid, that is, we see a convulsive out an Army." Mr. Brodmann is active internationally; he has process in the Soviet Empire that we, however, wouldn't like very good connections in the Federal Republic of Germany. to characterize as "reform," but rather a violent reorganiza­ Then, in recent days, it has been noticed in the newspapers tion of every level of society. But this reorganization, with here that the German "Greens" are interested in this initiative. its fundamentalprobl ems, has created a situation that in many That could quickly become counterproductive, however. parts of Soviet Union is already taking on forms genuinely The Swiss like nothing less than foreign interference. As similar to civil war. And the questions to you would be, a) soon as foreign interference becomes visible, the Swiss's how do you evaluate this dynamic, and b) what conclusions in archetypical way of behavior comes into sight. Then we are your opinion can be drawn from that concerningthe security again in the time of the Battle of Morgarten, then we go at interests of the Swiss? foreigners' throats. Swiss television also had the tasteless­ Zumstein: I agree that a development is under way in the ness to present a panel discussion with foreign journalists Soviet Union that is supposedly uncontrollable in certain active in Switzerland. The concern there was not primarily regions or over wide areas . The interesting thing is that, theabolition of the Swiss Army, but rather a commemoration fundamentally, Gorbachov has developed a method that is of the Swiss mobilization in September 1939. A large number very much modeled on what we experienced in 1968. In of Swiss were upset that German and Austrians had the pre­ 1968, the attempt was made to gain leverage with the masses sumption to make a judgment on that. using new psychological methods. In this respect, Gorba­ chov, and supposedly also his wife, has received an appro­ ElK: Are there concrete indications that the Soviets or Com­ priate training. He has changed the fundamental situation munists are taking part in the Switzerland without an Army with glasnost. Right now, since the broad mass of the people initiative? is receiving a voice, letters to the editor, interventions, dem­ Zumstein: I believe that the leading personalities of the So­ onstrations, and strikes are possible, a new physics exists in ciety for a Switzerland without an Army are well educated, the society. psychologically and sociologically experienced people. I do The tragic thing, now speaking from the point of view of not think them capable of allowing themselves to be helped the Soviet Union, is that the concepts as well as the structures openly and visibly. Such things do not happen in such a crude for the now-existing situation are lacking. And so, for that manner. I wouldn't want to exclude entirely a certain indirect reason, they can't move ahead. The market-economy con­ assistance. But I have the impression that it is also dangerous cepts do not exist, and they are not prepared to consistently for Moscow to do things abroad that wouldn't be desirable do anything more here. They are stuck. Or the leadership at home. structures don't permit any change. In the Soviet Union for generations, people have been taught to lie. Everyone lies to ElK: What is your evaluation of the external threat to Swit­ everyone else. Statistics in the Soviet Union are a gigantic zerland's security? lie. The shoe factory claims that its waste is production. The Zumstein: We proceedon the assumption that the most dan­ next one who receives this statistic knows perfectly well that gerous enemy is a totalitarian enemy. We have even gotten it is not true , but continues the lie. And the lie continues to the point where we say that a pluralistic democracy of the on up to the central administration. It is difficult to build Western style today no longer has the strength for a decisive something on this basis, which touches on a question of military attack. In my view, today that applies not only to education. You cannot change this mentality overnight. They the Federal Republic [of Germany], but also France. These cannot develop their self-initiative if each is afraid of opening states, considered from the political point of view, no longer himself to criticism. have the strength for large-scale offensives. The totalitarian Russia strikes me as a field for which the farme: has no system is the most dangerous because it can carry on subver­ seed and doesn't know what season it is. Suddenly, connec­ sive, that is, covert war. Democracy cannot carry on covert tions and relations and sociological networks come into play

ElK November 24, 1989 International 43 that are strongerthan the Communism that has been preached That is, antiquated materiel,: unqualified personnel are and practiced. National feeling, language, the icons, the thrown out with great publicitYi while that which remains is priests, the familiar connections, and so forth come again qualitatively improved in every respect. and cannot be held back. Zumstein: Wouldn't that be the purest Machiavelli? I seeit that way, de facto . Whether that was the intention from the EIR: If that is the general direction in which the Soviet beginning, I still have my doubts. But it was exploited for Empire is going, then the question is, will this instability in that. And in exploiting the situations that offered themselves, a broad sense move into a disintegration process similar to a Gorbachov's mastery and that of his team have been demon­ civil war, or could the Soviet leadership set off a military strated again and again. And in this, I would like to say, he "flight forward"? is thoroughly in line with the '68ers, who taught us that Zumstein: There is no question to me that Communism is everything has two sides and that it can beturned arbitrarily. an intellectual system whose only effective side today is That is the way of thinking that leads to letting one's own still control of the masses. That is the only aspect that still weakness become a strength. functions to some degree. As such, Communism is an export I believe that, presently, there is still no genuine disarma­ article. The German Democratic Republic, for example, ex­ ment in the sense of a reduction <>fpower visible in the crucial ports so-called security experts and police specialists for the parts of the Soviet military apparatus. suppression of the masses. If this communistic mass control collapses, then developments and events are conceivable that EIR: The question is, given this fundamental evaluation, could lead to a threat to European security. I would like to how do you view the question ofthe presence of U. S. forces emphasize that before glasnost and perestroika, for example, in Europe for maintenance of a balance and a deterrenteffect under Brezhnev's leadership, the Soviet Union behaved like between East and West? the world's "troublemaker number one," but, simultaneous­ Zumstein: This question touches on the development of a ly, could be also a sort of controlauthority in the international European domestic market 1992. It is my personal conviction nexus because it had the power to stop interventions and that the next step, after the realization of freedom of move­ developments that weren't convenient to it. The Soviet ment of individuals, goods, and services, will be a common Union, with increasing internal pluralization and deregula­ foreign policy of this new Europe. And foreign policy means tion, is losing this ability to control development. Logically, security policy. And the day will come when the United that will lead to instability increasing in the world. States will say, you are strong enough, since you are econom­ ic competitors of America, to pay for your own defense and EIR: There's an interesting schizophrenia in the Soviet security. Then America can be gradually disengaged from Union. On the one hand, the civilian sector that has demon­ Europe. strably fallen into a catastrophic situation, as Gorbachov him­ Thus to the question of European security: I believe that self put it. There aren't supply bottlenecks any more; rather, it is currently right and necessary that American troops are we stand on the brink of famine . On the other hand, there is in Europe-at least, as long as the nuclear deterrenceguaran­ the military-industrial complex. There , things seem to be tee of the United States for WesternEurope remains in effect. continuing well or unaffected. How do you view this schizo­ In that connection, it should be borne in mind that the global phrenia? system of nuclear deterrencetogether with its threats of esca­ Zumstein: The military-industrial complex works there as lation is naturally closely connected with the presence of long as work can be done there without controls through U.S. troops in Western Europe; So when there are no more prices and costs. The civilian economy, in the meantime, has troops here, the deterrence will also be generally ques­ had to acknowledge that it cannot produce in a cost-effective tionable. way. They had to acknowledge mismanagement. As I see it, that is not really schizophrenia but rather a coexistence of EIR: You mentioned your opinion of the paramount impor­ two completely different worlds. The military-technological tance of covert war. If you couW elaborate on that. complex, totally freed from economic considerations, still Zumstein: My conception is this: First, a nuclear war is no functions well. Basically, the previous disarmament efforts longer feasible. With that, I am not saying anything against have only led to making the military-industrialcomplex more the necessity of nuclear deterrence. Second, even a major war modem, more efficient. carried on with conventional weapons is no longer feasible because escalation to the nuclear is always threatened. EIR: The question is, do you agree with the evaluation that Now, as before, it is a matter of being effective in power Gorbachov has succeeded in effectively selling the public politics, in exerting power. Allld here covert war presents that a modernization andrestructuring of the Soviet military itself. Covert war is the possibility that distinguishes every forces, which is considered by the Soviet military leadership totalitarian regime. And because this possibility exists with as necessary, is a policy of disarmament and arms control? potential totalitarian aggressors; the defender, organized dif-

44 International EIR November 24, 1989 ferently politically, must pay attention to these things. Other­ of bureaucratic reality. I see a certain danger of immobility, wise, he is liable to blackmail. And his classical military of lack of imagination, of inflexibility. But I have to guard methodsno longer come into play. For that reason, threshold against-and I say that emphatically-making any sort of thinkingtoday stands in the foreground. You have to be able judgment. to assert your political power claims within a certain risk The fight against spetsnaz demands a very strongmental threshold. The military method is covert war. And if you go activity, individual ways of acting, and a great readiness to one step higher, then it is limited conventional war. And still take the initiative. You can't guard against spetsnaz if you another step, conventional war carried out with chemical take out a military textbook and say, this is how you have to weapons. Those leave behind hardly a trace. One hardly do it. That is different every day and in every case. It is knowsit happened, and only sees the victims. And only then necessary that one's own units are steepedin almost the same does nuclear war become improbable and a last resort, but training. still not entirely to be excluded. EIR: Do you have such units here? EIR: Recently, there has been much talk about tanks that Zumstein: We have the beginnings of such. We have are already 20 or 30 years old in the disarmament diplomacy trained special infantry units in individual divisions-people and propaganda that is done by Gorbachov with such clever­ that we trainfor absolute independence in battle, for aggres­ ness. But there is little mention of elite units that are still siveness, initiative, for an outstanding combativeness, and being built up in a grand style-parachute forces and special for decidedly good fire power. In this sense we have that. service groups, spetsnaz. Zumstein: We have taken measures. Our army in recent EIR: A revolutionary military-technological development years has been modernized in this sense and made capable is emerging, in the East and the West. For example, the SDI of flexible deployment. We have already stationed units in complex, beam weapons, directed energy weapons. What critical areas that canbe activated very quickly. Their materi­ significance do you see in that sort of development? And let el is present in place, and all necessary preparations have me add especially the subject of radio frequency weapons, been made. That applies, for example, to our airports. Thus that is, innovative weapons employed, not primarily strategi­ we don't have to go looking for troops. They are there, and cally, but tactically, against electronics as well as biological can always be ready for deployment in a short time. And cells, based on controlled electromagnetic radiation. then there is the "sleeping" army , distributed throughout the Zumstein: These military measures stem partly from a se­ country, which can be activated within hours . With that, ries of intellectual developments in which deployment of effective action can be taken against spetsnaz and parachute system A induces system B and then a further system C, and troops landed behind the lines. So we are also in the position thus a definite technical escalation is effected. It is the old to block paratroops, in that we, for example, can detonate all joke of the navy minister who was just saying goodbye to the exits from a landing area, and thus they will be stuck. the sales representative of a new type of steel, and says We believe, therefore , that we are very well prepared in incidentally, as he stands in the door, "Mr. Minister, I also this regard-precisely because we recognize this danger. We have a new shell that is stronger than that armor." This is a have also considerably tightened up guard patrols. For some sort of thinking that is not always successful because it is years, even in peacetime, we have equipped the guards with based on a manner of action thatis possibly not at allrelevant battle ammunition. The unit is trained in that way. We could in war. I have never allowed myself to be much influenced anytime--of course, with reduced units but they are there, by such extreme technological things. But one must also look during the entire year-attack wherever a danger emerges. on the other side, that wherever physics is not respected,then We thus believe that we are in this regard very well prepared. military success is not ensured. Physics has got to be right. That has happened because we regard the danger of these But we have to guard against leaving the conduct of war to spetsnaz units as considerable. engineers. I have been much concernedwith a new infantry weapon. EIR: Again, a question to you as a military expert with an There are perhaps 800,000 guns of the most modem con­ objective judgment: You have described how the threat from struction that we now manufacture and that we then have enemy paratroops and spetsnaz has been tackled in Switzer­ in our houses along with ammunition. I believe that these land. How do you view this situation for NATO in Central weapons, regardless of the technological possibilities that Europe? Does that strike you as good? are in store for us, would have great importance in case of Zumstein: That is a very thorny question. Personally, I war. Because behind that stands a man. And if you shoot the think that people in NATO are being laid low by a danger. men who stand behind the great technology just mentioned, It is this constantly pursued planning and preparations for a then the great technology isn't worth anything anymore. And war that can be really conceived only theoretically. That for that reason we attempt here in my country to achieve a leads to ways of behaving and regulations that reflect a sort sort of combined effect. What does combined effect mean?

EIR November 24, 1989 International 45 We attempt to combine old, primitive weapons, such as a drugs. Those are things that are reality and that the Soviet gun, with modem, high-capability weapons. We have in system also must reckon with. It takes something , after Af­ service today the most modem tanks in theworld. We attempt ghanistan, to say to Soviet soldiers, you must always be to optimally exploit terrain . Terrain is a given. Whether you ready to die somewhere in the world for Communism. And move with laser weapons or other beam weapons or chemical I don't think that this motivation is so easy. weapons, you won't change the terrain so quickly. We go further. We enhance the terrainso thatthe terraincan almost ElK: We hear of and see in the Soviet Union the develop­ independently carry on the war. Today, we have 2,000mined ment of a mass movement thatis supported, not directly by structures [e.g. bridges, roads,and so forth� .] in Switzer­ the party, but by the KGB and the Army leadership . The best land, and they are already equipped with explosives. You example is the Pamyat Society, which is spreading primitive travel every day over mines without knowing it . They can Russian themes, hostility to foreigners, anti-Semitism, fanat­ be detonated very quickly. The destruction caused by the ical thoughts of Mother Russia. The Soviet Union is in an detonation is phenomenal . You can't conjure that away, it's existential crisis; the Russian winteris coming. Many observ­ there . So we are seeking a combined effect in all areas . For ers see analogies to 1904, 19Q5 . Could a new aggressive, us, it's a matter of dissuasion, and thus of a deterrent effect. ideological motivation come into existence? We want to say to a potential enemy, you will lose much Zumstein: I certainly believe .that "Little Mother Russia," time and will have to accept huge losses. This dissuasion we the Russian universal feeling, as Schubarth defined it long seek to carry out following the principle of the haystack. I before the war, is important-this being embedded in the once watched as some school boys were jumping in a farm­ enormity of the land and the continent, this spiritual land­ er's hay. They were having fun, and the farmer was irritated. scape. I certainly believe that this is a force. But will this Imagine putting splinters of glass in this haystack. No one force be successfully activated? And, a second question, will can take that. We are using this glass splinters theory. Swit­ it be possible to deploy this force again in an offensive sense? zerland cannot participate in this mutual buildup of technolo­ On that, I have some doubts. I believe that first we will gy and superweapons , only in a very limited way. experience internal struggles that reach all the way to condi­ tions similar to fratricidal war. But perhaps in 50 yearsRussia ElK: We were not thinking so much of SOl-type weapon could again be an intact nation. systems. If Ogarkov repeatedly speaks of new generations of conventional or post-nuclear weapons that are already or ElK: If we may be allowed to ask one other question in soon will be available, that in their effect come close to the conclusion: What do you wish from the United States for weapons of mass destructionbut without collateral damages, Switzerland and Europe? then that is also a critical question for Switzerland. Zumstein: I believe that America must keep track of the Zumstein: We keep track of these.things. That's obvious. development in Europe both in regard to the coming Europe Every self-respectingdef ense system must keep up with these 1992, on the one hand, and the. crisis in the Soviet Union on developments . Personally, I would simply like to somewhat the other. And that the exchange as we have it today between relativize the threat from such weapons. At the beginning, I Europe and the United States and this solidarity for the main­ said that I hardly believeanymore in a completely major war. tenance of peace must continue to be effective. We must Because today , there are other means and methods of struggle under no circumstances separate the greatest democracy in to push through power goals. I don't believe that a military­ the world from Europe . That we must not do. I believe that technological breakthrough will come that will make a de­ Europeans must not only receive but also give, and mutual fe nse, such as we have, fully illusory. And there we are , understanding between Europe and the United States must back at the beginning of our conversation. The Army is a be maintained. component of the people; it is the people at arms in a definite Americans still belong to us. We have presently in or threatening situation, and you cannot simply wipeout a peo­ local schools a young lady from the United States who be­ ple. That doesn't work. longs to a family that emigrated out of the Simmental more Coming back briefly to the Soviet Union, the military­ than 100 years ago. She's even related to me. We have seen industrial-technological complex of the Soviet Union doubt­ that a part of our essence is today in the United States. And less still functions very well. But it may now also have its that, conversely, many Americans have their roots here . Ev­ problems. But along with this military-industrial-technologi­ ery year, Americans visit us whom I do not know personally. cal complex, we mustn't overlook that there must also be I take them to the old farmers' houses, and tell them, here armed forces. Troops who employ the devices. And here it was your great-great-grandfather, and here he kept his seems to me that glasnost has already shown its effect. We horses. That's a part of it. The Atlantic must not be a barrier hear of discipline problems in Soviet units. We hear of drug but rather a connection. and alcohol addiction, of waste of materiel . It is thought­ Additionally, I believe that peace is feasible-but not on provoking to hear that soldiers sell their weapons to buy the basis of weakness.

46 International ElK November 24, 1989 The 'Tiny' Rowland File

Partill cd an EIR investigativeseries. Rowlands Lonrho was built up toerif orce colonialism inAfrica.

On Feb. 3, 1960, in Capetown, South Africa, British Prime Rowland's early sponsors Minister Harold Macmillan stunned the South African Back in London afterhis Winds of Change speech, Prime Parliament with his famous "Winds of Change" speech. Minister Macmillan consulted with his Foreign Secretary "The most striking of all impressions I have formed since (and former Colonial Secretary), Alec Douglas-Home, and I left London a month ago," he said, "is the strength of the currentColonial Secretary, Duncan Sandys, to construct this African national consciousness. In different places it the apparat which would continue colonial rule under the may take different forms, but it is happening everywhere. new conditions. This trio in tum contacted two men: Joseph The wind of change is blowing through the continent. Ball, the chairman of a little-known company called the Lon­ Whether we like it or not this growth of national conscious­ don and Rhodesia Miningand Land Corporation, Ltd., soon ness is a political fact . . . our national policies must take to be known as Lonrho, and HarleyDrayton , a powerfulCity account of it." of London financier, and the chief stockholder in Lonrho. The speech was a prelude to the declaration of indepen­ Among them a plan was hatched to vastly build up Lonrho dence by most of Britain's former colonial possessions in as one of the corporate pillars of the new strategy. The aging Africa by 1964. Yet the British Establishment, which Joseph Ball was asked to finda young man to give the neces­ designed the "winds of change" policy, was not planning to sary vigor to thegrand expansion plans. Ball chose a man he bring trueindependence to Africa, but a more insidious, and had known, or known of, from intelligence work in World more effective, form of slavery. WarII: Roland Walter"Tiny" Rowland. "Independence" was severely circumscribed by several These two men, Joseph Ball and Harley Drayton, "in­ factors: 1) The creditessential to economic development was vented" Tiny Rowland. To understand Rowland, and the controlled by genocidal institutions such as the World Bank protection he has enjoyed throughout a long career studded and International Monetary Fund, in league with powerful with criminal actions of all sorts (see EIR Nov. 3, 1989, p. private banks such as Barclays and Standard and Chartered. 45 and Nov. 10, 1989, p. 45), it is critical to appreciatethese 2) The newly independent nations were thus kept as raw two individuals. material producers for multinationals such as Shell, British Joseph Ball in 1960was nearingthe end of a long career. Petroleum, Unilever, Rio Tinto Zinc, etc., and the prices for He had been one of the most powerful figures of British their products artificially depressed by international com­ intelligence in the 20th century. Employed by MI-5 already modity cartels. 3) The new nations were kept in political in the First World War, Ball was, by the 1920s, one of the turmoil through bloody gang-countergang warfare, based on deputy heads of the agency, before he left to form the Re­ ethnic or tribal divisions, as perfected by Brig. Gen. Frank search Department of the Conservative Party, an in-house Kitson in the Mau-Mau insurgency in Kenya in the 1950s. intelligence agency modeled on MI-5, replete with agent The British provided covert or overt aid to all sides of a penetrationof the Labour Party, etc. He became,in the words conflict, precisely as Rowland is presently doing in Mozam­ of one historian of intelligence matters, "the quintessential bique, wherehe provides supportto both the Frelimogovern­ eminence grise." He also conducted sensitive foreign mis­ ment, as well as the Renamo insurgency against that gov­ sions, such as serving as liaison with Italian dictator Benito ernment. Mussolini for Prime Minister Neville Chamberlain. In World These factors , then, comprise the setting for the rise to War II Winston Churchill appointed Ball deputy chairman riches and enormous political/economiccontrol over the Af­ of the all-powerful Security Executive, which oversaw MI-5, rican continent by Roland ''Tiny'' Rowland and his Lonrho MI-6, and a bevy of otherintelligence outfits. He reorganized Corporation, beginning in 1961, the year after Macmillan's MI-5 for the war, and was responsiblefor operations against speech. Today, Lonrho is the continent's single largest food Nazi or fifth column activity in the British Isles. This job producer; it employs over 100,000 people in ranching, farm­ broughthim across the path of the young Tiny Rowland. ing, mining, manufacturing, and trading subsidiaries in 29 Joseph Ball's collaborator in Lonrho and Conservative countries; it is the continent's largest textile manufacturer, Party matters for several decades was Harley Drayton. its firstsugar producer, and a major powerin gold, platinum, Though little known to thehistory boo ks, Drayton was chair­ and coal mining. man of 23 companies, the controllerof 20 investment trusts,

EIR November 24, 1989 International 47 and one of the most powerfulpolitical and financial figures in choice of last name when he changed his name by deed poll Britain. It was he more than anyone else, as Rowland himself in 1939 to Roland Walter Rowland; it would explain his later emphasized, who provided the political and financial "adoption" (though never acceptance) , into rarefiedlevels of backing which launched Tiny Rowland and Lonrho. 1t was he British nobility and intelligence (through the good graces of who sent his personal assistant of 10 years , Angus Ogilvy, out Uncle John); and it would explain the otherwisemost-curious to Africa to recruit Rowland, and it was he who declared that fact that Sir John Rowland was a key business partnerfor the Lonrho should be runby the troika of Alan Ball (Joseph Ball's young Tiny Fuhrhop (now "Rowland") in numerous busi­ son, who became Lonrho' s chairman shortly afterhis father's nesses which the young Rowland established in postwar death), Angus Ogilvy, and Tiny Rowland. As Rowland wrote Africa. to Ogilvy on Feb. 26, 1968, "Lonrho is in my view nothing Whatever his precise ancestry, following World War I else but Alan , yourself and myself, combined in tum to give theFuhrhop family, including the future Tiny Rowland, was the company character and soul and constant and continuous persona non grata in India and was not allowed back into drive and motion ." And, Rowland wrote in still another letter, England. Wilhelm moved the family back to his birthplace of "that's the way Harley Drayton wanted it." Hamburg , and established a trading company named "India With Harley Drayton and his main investment company , Agencies" on the well-placed bUSiness streetSpitaler Strasse. the "117 Old Broad Street Group ," we approach the deep The family lived in the luxurious Klosterstern district, had power behind the miraculous career of Tiny Rowland. Dray­ several servants , and sent Raimund, their first son, to the ton's investment trusts controlled billions of pounds , funds prestigious Heinrich-Hertz Gymnasium, where Tiny soon drawnfrom the coffers of two of his major clients: the Church joined him. of England and the British Crown. Drayton was to be the According to information recounted by Rowland to Brit­ chief stockholder and stringpuller for Lonrho from 1961 ish journalist Charles Raw, Rowland joined the Hitler Youth when Lonrho was, in the words of South African minerals at the age of fifteen and a half. Doing the necessary arithme­ magnate Harry Oppenheimer, "activated," until his death in tic, this places young Tiny in the Hitler Youth in May or June the mid- 1960s . Drayton was also an early sponsor of Cana­ of 1933, an extremely early date . Rowland's later frequent da's powerful Bronfman family, through the Eagle Star In­ contention that "everyone" joined the Hitler Youth only be­ surance Company in which he held great interests, the latter came true as of 1936, when all other youth organizations the chief holding company for all the Bronfman assets. were merged into the Hitler Youth . To join in mid- 1933 was Angus Ogilvy, Drayton's assistant of 10 years already by rare enough to bespeak a commitment, personal or family, 1961, also symbolized the power behind Lonrho. For years or both, to the Nazi cause. Given Rowland's later frequent on the most intimate terms with Rowland, and provided by stories of what a fierce anti-Nazi he was, this information him with a rent-freeflat adjacent to Rowland's own in Chel­ acquires some significance. It also bears upon Roland's other sea, Ogilvy was born Angus James Bruce Ogilvy, youngest frequent claim, that his father was a "passionate anti-Nazi." son of the Earl of Airlie. The Earl, one of the premier noble­ In the spring of 1934, Roland Walter Fuhrhop was sent men of Scotland, was Chamberlain to the Queen Mother. to school in Britain, to a public schoolnear Petersfield named One son would later become chairman of the powerful Sch­ Churcher's. Roland Fuhrhop's contemporary, Philip Brown, roeder's merchant bank, while Angus would marry Her Roy­ recorded his impression of the new boy, "a German boy, al Highness the Princess Alexandra,first cousin to the Queen. aged about 17, called Roland Fuhrhop, joined the school. He was an ardent supporterof Hitler and an arrogant, nasty piece Some personal history of work to boot." Over the years , Tiny Rowland has told lie after conflict­ After a year at Churcher's, Fuhrhop went into theship­ ing lie on all aspects of his personal history: his family back­ ping business of a family relation of Muriel Kanenhoven ground, the number of siblings he has , his wartime military Fuhrhop. Given the unpopUlarity of German names in En­ role, and even his own name. The more one probes this gland at the time, Fuhrhop changed his name in 1939 by deed background, the more one realizes he has good reason to lie. poll to Rowland. And he also, according to relatives, did his According to the usual story, Tiny Rowland was born as best to try and join the British Secret Intelligence Service. Roland Walter Fuhrhop in a British internmentcamp in India on Nov. 27, 1917, the son of the German merchant Wilhelm The mysterious wartime career Friederich Fuhrhop and his Dutch wife Muriel (nee Kanenho­ Lonrho, one of Britain's largest corporations, is often ven) , the daughter of a prosperous Dutch shipping agent. But thought of, like Rowland himself, as an "outsider" to the according to a formerbusiness partner, Rowland was not the British Establishment. But an examination of Lonrho' s board product of the wedded bliss of Wilhelm and Muriel Fuhrhop, over the yearsreveals two elements which dominate it entire­ but of an affair between Wilhelm and the sister of the head ly: the presence of representatives of some of the most power­ of the Rawalpindi Railway in India, Sir John Rowland. This ful families of the British Establishment, and the presence account would certainly explain Roland Walter Fuhrhop'� of numerous ranking members of the British intelligence

48 International EIR November 24, 1989 services, such as Nicholas Elliott, at one time the number Dunkirk in the summer of 1940, Rowland's father was arrest­ three man in MI-6, and a longtime friend of Soviet spy Kim ed and interned along with 27,000 other "enemy aliens." Philby. In fact, the presence of intelligence operatives is so Mrs. Fuhrhop was also interned, first in Holloway Prison, pronounced, that one is forced to draw the conclusion that and then with her husband in the internmentcamp on the Isle Lonrho is not so much an "asset" of British intelligence, as of Man. By late 1940, as the threat of a Nazi invasion re­ it is British intelligence. Rowland's own carefully hidden ceded, only one-fourth of the original 27,000 internees wartime career fitsthat profile exactly. remained prisoners, and those 6,500, presumably the cream During the 1973-76 Department of Trade and Industry of the Nazi sympathizers in Britain, were all concentrated in investigation into large-scale criminality on the part of Lonr­ the camps on the Isle of Man. Rowland's father and mother ho and Rowland, the DTI investigators asked at one point to were two of them. look at the wartime file of Tiny Rowland. Much to their Tiny Rowland was kicked out of the British Army on Jan. surprise, the request was only granted afterrepeated vigorous 19, 1942. He maintains that this was due to his repeatedly demands, and then only in the presence of two MI-6 officers. pestering his superiors to visit his father and mother on the No photocopying or even note-taking was allowed. While Isle of Man. But affidavitsof those who served with Rowland Rowland's intelligence services fileis obviously hypersensi­ at Peebles and then at Edinburgh, tell quite a different story. tive, according to those who have looked at his Army file, James Anderson, an army sergeant who spent quite a bit of his Army records have been "weeded" into non-existence. time with Rowland, recorded that Rowland was a "pro-Nazi Why the extreme secrecy? fascist who despised the British working man; a man who Rowland was a freshly naturalized British subject whose was no use to man or beast, and certainly no use to Britain; brother had voluntarily joined Hitler's Wehrmacht after the and a complete and utter sham." Still another colleague re­ Nazi invasion of Czechoslovakia. With this background, he ported that he caught Rowland listening on a private radio was barred from combat duty. All the more reason, said late at night to the British traitor Lord Haw-Haw (Stephen his cousins, that he tried to join the intelligence services. Joyce, an associate of Captain Ramsay) broadcasting Nazi According to biographer Dick Hall, Rowland approached his propaganda from Germany. On hearing of the sinking of old Churcher's headmaster Hoggarth, to vouch for him for HMS Prince o/ Wales and HMS Repulse by the Japanese off SIS. This fact, plus the testimonies of his cousins, plus grave Singapore in December 1941, Rowland laughed and chanted anomalies in Rowland's service career, plus the testimony "sink the bastards." The next morninghe was takenaway by of a former Lonrho colleague of Rowland's that Rowland MI-5 personnel. worked for British SIS during the war, indicate clearly that After a month in Wandsworth Prison (where he met one Rowland did join British intelligence, either during the war of the people who would be a business partner in his postwar or at its very outset. firm, Articair) , Rowland was sent to the Isle of Man, and On Dec. 12, 1939, Roland Walter Rowland was con­ there internedunder regulation 18B as a "danger to the securi­ scripted into the British Army and assigned as a medical ty of Britain." He was placed under armed military guard at orderly to the Royal Army Medical Corps (RAMC). After the maximum security camp at Peel. This camp was reserved three months of basic training, he was assigned to the 75th for, in the words of one historian, "the wild men at the British General Hospital (RAMC) quartered in Peebles, 20 extremes of politics, potential terrorists and subversives," miles south of Edinburgh. A source who knew him at the including many members and supportersof Sir Oswald Mos­ time records the extremely unusual fact that not only had he ley's British Union of Fascists. After more than a year of "arrived as a patient, and was later transferred to staff," but detention in Peel, Rowland was allowed to join his parents in that even though he allegedly had tonsillitis, he was placed the married compound at Port Erin. Rowland claims, though in the surgical ward, a highly irregular procedure for persons there is no evidence to support it, that he was freed sometime with infections. in 1943 and spent the rest of the war doing odd jobs assigned Peebles, interestingly enough, was the constituency of by the Labor Exchange. Rowland's father and mother the one and only serving British Member of Parliament to remained internedto the end of the war, even though 89% of have been interned during the war as a Nazi sympathizer, the original "enemy aliens" interned had already been freed. Captain A.H.M. Ramsay. Elected Conservative MP for Pee­ This casts grave doubts on Rowland's claims that his father bles in 1931, Ramsay had created the pro-fascist Right Club, was an "outspoken anti-Nazi," but more importantly raises and was a confederate of the Russian-born Nazi spy Anna the question of why he himself-given his own marked pro­ Wolkoff. Ramsay was arrested and interned in May 1940 Nazi sympathies and the apparent apprehension with which at Brixton Prison, but not before he had struck up a close his parents were regarded by the authorities-was treated so relationship with Roland Walter Rowland of the RAMC. leniently. According to affidavits of those who served with Rowland, he frequented theRamsay house as the family's guest. Next installment: Working/or the Phi/by networks in World Meanwhile, after British troops had been routed from War II.

EIR November 24, 1989 International 49 Dateline Mexico by Ruben Cota Meza

Salinas 'Informe, ' a string of lies got such a i degree from Stanford, The President's claims of great economic gains remind many which had been the basis of his light­ ning climb to power. Spanish by birth Mexicans of the notoriously phony "Aleman smile." and a French socialist by adoption, Cordoba had been set up in a super­ ministry cre�ted just for him by Sali­ On Nov. 1 President Carlos Salinas ment was forced to use the police to nas de Gortari. de Gortari delivered his firstln forme, repress the protests. Several peOple "Herr 0Jh0" Granados, as the the annual state of the nation address were injured. presidential media man is called these that used to be given on the first of Fidel Velazquez, the leader of days, in honor of his behavioral re­ September and was moved last year to the Confederation of Workers of semblance to the Nazi propaganda All Souls' Day, some say because the Mexico (CTM), called the definition minister Goebbels, responded to the Mexican economy has turned into a of productivity presented by Salinas exposure of the hoax, by saying that ghost of its former self. The last Presi­ "an illusion." He observed that more the degree "will be granted" next dent, Miguel de la Madrid-the one and more workers are refusing to May, and that "arrangements are be­ who changed the date of the work for the minimum wage, equal ing made forthis." lnforme-and his successor, Salinas, to U.S.$4 for an eight-hour day, Various circles inside the ruling have played this gruesome Halloween since it costs more to travel to work PRI party are beginning to wonder if trick on the nation, by obeying every and eat lunch out, than what they the legitimacy of the whole Salinist demand made by the foreign creditor bring home in pay. regime does .not rest on similar "per­ banks to pay debts at the expense of Salinas also lied about "positive ception games." A well known col­ the productive economy. achievements" in the foreign trade umnist in Mexico City warned: "Sali· The lnforme was designed to pro­ balance. He claimed that "in July, nas, for the bulk of the citizens, has mote the further gutting of wages and non-petroleum exports grew 8% com­ turned into · a kind of anonymous production during Salinas's firstyear, pared to July 1988," but every Mexi­ avenger of the people, a severe as proof of his "courage" in standing can knows that in reality they dropped scourge for those who have hurt and up to popular pressure. from 20% to 8% in that period. He defrauded hi!m, and no one doubted The President vaunted the fact that said that imports had gone down from any more about his courage in making "total wages for workers in manufac­ 50% in January to 14% in July, and decisions. " turing industries grew 14% in real that the "trade surplus amounted to Howevel1, "The citizens must not terms ." Not only is this improvement $381 million," in the same timespan; keep pressuring the President (nor inadequate in itself, but it only affects but he did not mention what everyone feeding his ego, which no mortal es­ a small fraction of the workforce; no also knows-those $381 million are capes), by so highly praising his per­ such gain was seen for wages of peas­ 90% below the 1988 surplus, which sonal courage. Neither must his advis­ ants , government employees, or ser­ disappeared by the third quarter, and ers nor his counselors do this. . . . vice workers . As a result, more and that 1989 will be the first year with a Such a situation, which would always more Mexican workers are taking to trade deficit since 1981! keep increasing and growing, could the streets to demand increases in The entire firstlnf orme, and offi­ be negative for the country and for wages and benefits. cial talk in general, is replete with Salinas." Just in Mexico City alone-the such inconsistencies, which are not Some Mexicans remember that world's most populous city-more going unnoticed. Otho Granados Ral­ thepublic rebltions mavens aroundthe than 200 mass demonstrations took dan, who heads the President's Social late organizedcrime-linked President place in the last five months. There Communications office, has seemed of Mexico, the unlamented Miguel were 36 in September. On Nov. 10, more concerned lately with saving Aleman, su�enly discovered that the there were six, including teachers, face than with putting out any real then Presidenthad a "charming smile" public service workers , railroad work­ facts. and they played it to the hilt. As a ers, and retirees. The highways lead­ Takethe case of "Stanford Ph.D." result, whenever Mexicans wanted to ing into Mexico from Queretaro, Pa­ Joseph MarieCordo ba, a supersecret­ referto a lie, they would use thepopu­ chucha, Toluca, Cuemavaca, and ary of state in the Salinas government. lar saying "you are phonier than Mi­ Puebla were blocked and the govern- It was recently revealed that he never guel Aleman's smile."

50 International EIR November 24, 1989 FromNew Delhi by SusanMattra

Sinhala terrorist group decapitated ing another fight with India. General The good news fromSri Lanka doesn't bring much relief to its Sepalle all but accused New Delhi of illegally arming Tamil groups in the civil war conditions and economic paralysis . northeast in announcing that the gov­ ernment had received reports that an Indian Air Force plane had unloaded several crates at a base near Thinco­ T he news Nov. 13 from Sri Lanka President Premadasa may be malee and subsequently transported that the chief of the terrorist Janatha pleased, but hardly relieved. His des­ them south to Nilaveli. Vimukhti Peramuna (JVP), Rohana perate gambit to emerge master of the To add to his woes, Premadasa Wijeweera, and his second-in-com­ fast deteriorating situation by striking faces a no-confidence motion in par­ mand Upatissa Gamanayake, had a deal with the Tamil terrorist army , liament brought by an opposition been shot dead, was the first signifi­ the LITE, and forcing the Indian headed by the Sri Lankan Freedom cant break in the months-long offen­ Peacekeeping Force (IPKF) to with­ Party of former Prime Minister Mrs. sive by Sri Lankan security forces draw is blowing up in his face. Sirmavo Bandaranaike. Though the against the Sinhala terrorist group. On Nov. 5, within a week of the government, with 125 of the 225 seats More recent dispatches from the IPKF's withdrawal fromAmparai dis­ in the parliament, can be expected to Sri Lankan capital Colombo, citing trict, the LTIE ripped up its paper­ survive such a test, the breakdown of the capture of a JVP radio station and thin ceasefire agreement with Prema­ its recent efforts to organize an all­ all but one member of thegroup 's cen­ dasa's government, and launched a party conference on the national crisis tral committee, indicates that the pre-dawn armed attack on two rival underscores its limited political Maoist group has been decapitated. Tamil groups. The LITE men came capital. Riding the wave of discontent by boat and used rocket-propelled gre­ A less spectacular but potentially over the Jayewardene government's nades and machine guns in the attack, decisive factor in this tragic crisis is 1987 decision to seek Indian military causing an unknown number of casu­ the International Monetary Fund, assistance to quash the Tamil seces­ alties (one estimate put the toll at 50, whose insistent demands for "major sionist movement in northeastern Sri with some 150 Tamil youth taken pris­ structural adjustment" have again

Lanka , the JVP mounted a terrordrive oner by the LITE) . The government been put to the government recently. that nearly brought the now ten-mon­ was forced to deploy the Sri Lankan The IMF still refuses to release the67 th-old government of Jayewardene's army. million Special Drawing Rights sec­ successor, R. Premadasa, to its knees. The North-East Provincial Coun­ ond installment of a StructuralAd just­ A civil war was unleashed as security cil, headed by one of the LITE's ri­ ment Facility loan negotiated in forces and theirkin took vigilante ac­ vals, the Eelam People's Revolution­ March 1988, charging Sri with · Lanka tion against the terrorists. In recent ary Liberation Front (EPRLF) , failure to meet IMF targets set after weeks the JVP's target had shifted to charged Nov. 9 that the LITE attack the first installment was released. the economy, and creeping economic was undertaken with the "active con­ These targets include a virtual paralysis has accompanied the daily nivance" of the Sri Lankan army's free-fall of the Sri Lankan rupee and death toll of 30 to 100. special task force. The LTTE, for its drastic reduction of subsidies for es­ The successful strike against the part, justified abandoning the cease­ sential commodities such as flour, JVP will end the outfit's political fire with charges that India is sending rice, sugar, milk, and fuel. The gov­ thrust, though the terror and killing fresh troops to Sri Lanka in violation ernment's efforts to comply have al­ will no doubt continue. Though im­ of the withdrawal agreement, and ready lit the firesof inflation,now run­ portant, it is no longer as decisive as complained that rival Tamil groups ning at 20% or more. it might have been, say, two years wereraising a ''Tamil National Army" The IMF's demand that Sri Lanka ago-before this tortured island slid through forced conscription. torch its economy might well have into theanarchy and civil war thathas If the performance of Sri Lanka's come from theterrorist JVP or LTTE . now almost hopelessly clouded the defense secretary, Gen. Sepalle Atty­ Sri Lanka is heavily dependenton im­ way out of the ethnicconflict between galle, at a Nov. 9 press briefing is any portsto meet requirements of even the the majority Sinhala Buddhist and mi­ indication, the government may at­ basic items, so devaluation of the ru­ nority Tamil Hindu communities. tempt to bury this new crisis by pick- pee is devastating.

EIR November 24, 1989 International 51 Andean Report by AndreaOlivieri

M-19: wolves in sheep's clothing ist offensive during the past weeks, In the name of "peace," the Colombian government is letting the reminding the people of precisely what manner of "former" subversives drug cartels in through the back door. the Barco government is inviting into the national Congress. With all this, Government Minis­ ter Lemos Simmonds continues to in­ sist that he prefers "20 M-19 senators On Nov. 2, amid great political legal archives-was gutted .. to 2,000 M-19 guerrillas." fanfare, the Colombian government Less well known, but publicly Opposition to this governmentbe­ of President Virgilio Barco signed a documented, has been the M-19'srole trayal is growing. Former cabinet "Political Pact for Peace and Democ­ as armed security guards for the coca member and prominent Liberal politi­ racy" with the narco-terroristApril 19 plantations and cocaine refineries of cian Abdon Espinosa Valderrama Movement, known as the M-19. the drug-trafficking cartels, and in the wrote in the daily EI Tiempo, "No Hailed by the government as the first weapons-for-drugs swaps sanctioned democratic regime, not even the most major success of President Barco's so­ by the Cuban governmentand its resi­ tolerant, has ever countenanced such called "peace initiative," the pact is dent drug financierRobert Vesco. a course." Ana Maria Busquets de intended to lay the basis for reincorpo­ Perhaps worse than the proffered Cano, the widow of the mafia-assassi- ration of some 200 guerrilla insur­ pardon itself is the fact that the M- . nated director of EI Espectador, gents-by executive pardon-into 19 will, if the pact is approved, be wrote: "But when [the M-19's] strug­ the civilian and political life of the guaranteed the right to elect a senator gle stopped being anything positive, country, including the creation of or congressman with a mere 15% or and became sheerterrori sm, commit­ their own political party. What it less of the vote required of traditional ting atrocious crimes whose authors does, in fact, is invite some of the party candidates. For example, while have no shame in confessing, one can­ bloodiest agents of the drug-traffick­ other candidates must receive 60,000 not wipe the slate clean." ing cartels into the corridors of votes within their province to win a It is expected that Colombia's Colombian power. senatorial seat, an M-1ger will need Senate, alreadycorrupted by a combi­ The pact, which must be approved only 10-12,000 votes nationwide to nation of drug money and pure self­ both by the Senate and in a popular win. As one columnist was quick to interest, will approve the pact with the referendum next January, includes a point out, "Add several M-19 con­ M-19 in short order. It then remains pardon for the multitude of crimes gressmen to the 14 from the [Commu­ for the Colombian people to let their committed by the M- 19 during its 15- nist] Patriotic Union, and you have a opinion be known, in the January ref­ year reign of terror, and electoral con­ powerful parliamentary front com­ erendum on constitutional reform­ cessions which will give the narco­ posed of enemies of the system." The of which the peace pact is a part. Even terrorists a significant quota of seats Communists are now demanding the if the electorate rejects the proposed inside the Colombian Congress. The same electoral concessions. pact with the M -19 narco-terrorists, M-19's crimes-described as "politi­ Indicative of how unrepentant the the credibility of the Barco govern­ cal" and therefore "pardonable" by the M -19 is, is the fact that they had tried ment's heretofore serious anti-drug government-include the 1980 mass to set Nov. 6 as the date for signing efforts will have suffered a serious kidnaping of more than a score of for­ the peace pact with the government­ blow. As HI Tiempo columnist Keren­ eign diplomats, the 1988 kidnaping of the fourth anniversary of the Justice sky wrote Oct. 30, "With hands former Conservative presidential can­ Palace slaughter. The M-19's com­ joined, the guerrilla and the drug traf­ didate Alvaro Gomez Hurtado (killing rades inside the Simon Bolivar Guer­ ficker seek to strangle the Republic his bodyguard in cold blood), and the rilla Coordinating Group have issued and its democratic institutions. If the 1985 mass murder of a dozen Su­ a statement casting doubt on the gov­ proposal of dialogue with the drug preme Court magistrates during the ernment's sincerity in the peace pact, traffickers is accepted, or if the guer­ drug mafia-financedoccupation of the but embracing the M-19 nonetheless rilla is rewarded with a pardon for his Justice Palace. Nearly 100 people as members in good standing of their heinous crimes, or given unmerited were killed during that siege, and the terrorist league. These same organiza­ seats in the Congress, we are contrib­ Palace itself-containing the national tions have launched a renewed terror- uting to the dissolution of Colombia."

52 International EIR November 24, 1989 PanamaRep ort by CarlosWe sley

OAS gives lukewarm support to U.S. amanian governmentfu nds in Ameri­ The United States continues to behave as an international outlaw can banks, the takeover of Panama's embassy in Washington, the non-pay­ by authorizing the CIA to get Noriega-dead or alive. ment of taxes and the annuity due Pan­ ama from the canal, and the threats against Panamanian-flagged vessels, made elections impossible at this T he Organization of American having proposed the legalization of time. States gave lukewarm support to the drugs. Kam told the OAS that if they are U. S. push against the commander of For those reasons the OAS resolu­ "genuinely concerned with bringing Panama's Defense Forces, Gen. Man­ tion fell far short of the demands made democracy to Panama, you could uel Noriega. In a vote taken early in by U.S. Secretary of State James make a valuable contribution to that the morningof Nov . 17, the OAS gen­ Baker III, that the OAS set aside the process by demanding that the United eral commission aproved 25-2, with principle of non-intervention in the States cease its aggression against 1 abstention, a resolution calling on case of Panama. The OAS also re­ Panama." Kam cited an article pub­ Panama to stage "free elections" as fused to go along with the proposals lished by the Los Angeles Times on soon as possible. The resolution was made on behalf of the United States Nov. 16, reporting that "the Bush ad­ expected to be adopted by the hemi­ by the socialist governments of Vene­ ministration, with the secret approval sphere's foreign ministers before they zuela and Costa Rica, to condemn of Congress, has launched a new co­ concluded their annual General As­ General Noriega by name, to repudi­ vert operation to overthrow the com­ sembly in Washington on Nov. 18. ate Panama's current provisional gov­ mander of Panama's Defense Forces, Although afraid of openly bucking ernmentfor "lacking constitutional le­ Gen. Manuel Antonio Noriega, using the U.S., the Ibero-Americans were gitimacy," and to demand that the methods that could lead to his death." not willing to give the Bush adminis­ countries of the hemisphere break dip­ The cited article reported, 'The tration carte blanche to trample on a lomatic relations with Panama. CIA has been authorized $3 million member country's sovereignty. Ac­ Panama will not abide even by the initially to recruit Panamanian mili­ cording to Panamanian sources, most watered-down resolution, said For­ tary officers or other dissidents to of the governments ofthe hemisphere eign Minister Leonardo Kam, "even mount a coup" against Noriega. In a agree with Panama's charges, that the if that means its expUlsion from the monument to doublespeak, the latest U.S. attacks against Noriega are OAS ." The Panamanian foreign min­ CIA operation-dubbed Panama-5, a aimed at breaking the Panama Canal ister reminded his colleagues that Pan­ reference to the four previous U . S. ef­ treaties and retaining control of U.S. ama had indeed triedto hold "free and forts that have failed against the Pana­ military bases in Panama. They also honest elections" last May, but U.S. manian nationalist leader-does not agree that the charges that "Noriega is interference forced the annulment of liftthe ban on assassination of foreign a drug trafficker," are lies invented to those elections. Kam cited the use of leaders. But, reports the Times, it justify the U.S. offensive against the U.S. Armed Forces Network, of "opens the way for U.S. support­ Panama. the U.S. Southern Commandin Pana­ directly or indirectly-in coup at­ The Panamanian press gave wide­ ma, to promote the opposition's elec­ tempts in which assassination is not spread coverage to statements made toral campaign, the deployment of the intent but may be the accidental by U.S. drug czar William Bennett, CIA agents to establish clandestine byproduct." A source quoted by the to the effect that the U. S. is not yet transmitters to incite riots, and the $10 Times noted that the Senate "intelli­ seriously waging a war on drugs. Ac­ million that the Bush administration gence committee gave the White cording to a UPI wire published by authorized the CIA to give to thePana­ House new flexibility on the assassi­ Panama's Matutino on Nov. 9, Ben­ manian opposition, among the acts nation issue, which it needs to act in nett told the San Jose Mercury that carried out by the U. S., which forced the future ." U.S. leaders "lack the will" to wage a Panama to annul the elections. The more "flexible"interpretation war on drugs. In the interview, Ben­ He also charged that the sending on assassinations was requested by nett also blasted former Secretary of of U.S. combat troops into Panama, CIA head William Webster in the State George Shultz-who launched and the U.S. economic sanctions, in­ wake of the U.S. failed coup attempt the campaign against Noriega-for cluding theillegal confiscationof Pan- against Noriega last Oct. 3.

EIR November 24, 1989 International 53 International Intelligence

Brazilian political commentators sus­ mentarians Iwho would support her, would KGB and British pect that Santos may use his Sunday show do so only on a "probationary" basis, giving to get the 25% of voters who were reportedly pool intelligence her 12 months while they see what happens intending to vote for him, to vote instead for to the British economy. AfifDomingos, the only candidate commit­ "Thatcher is no longer invincible," U.S. Great Britain's secret intelligence service, ted to full payment of Brazil's foreign debt. Eastern Establishment figure Robert Bowie MI-6, has developed "an unprecedented lin­ Two years ago, EIR caused a great stir by told EIR on Nov. 14. We stern Europe, he k-up with the Soviet KGB" in the Afghan reporting on Afif Domingo's having been said, led bYi a Franco-German combination, war zone , according to the Nov. 12 Mail on funded and trained by the National Endow­ would go it �lone on such issues as European Sunday. The operation reportedly involves ment for Democracy to promote changing economic urion, the development of a poli­ MI -6 passing information to the Russians on Brazilian political structures. cy toward Eastern Europe, and German re­ Soviet prisoners still alive in the hands of AfifDomingo 's support comes mostly unification., "Thatcher," he said, "is on the the Afghan resistance fighters. i from economic liberals. If Santos can get 5- downslide. Either Labour will win the next A key player in this game is the U.K.'s 10% of the poor to vote for AfifDomingos election unUer Kinnock, or else the To ries LOrd Bethell, who has recently been on a Nov. 15, Afif Domingos could make it into will cut hdr loose, promoting Heseltine, prisoners of war "mercy mission," shuttling the Dec. 17 run-off between the top two Lawson, or,possibly Howe." between Moscow, Kabul, and the headquar­ candidates. Fernando Collor de Melo, who i ters of the Afghan government-in-exile in has won support of frustrated Brazilians by Peshawar,Paki stan. At a private meeting in . harpingon corruptionand waste in Samey's Islamabad, Pakistan, Bethell was told by regime, is expected to be one of the two Iran bolsters Soviet ambassador to Pakistan Vladimir Ya­ finalists. kunin: "We are very grateful to our friends Syrian I terrorists in British intelligence for the most precise information we have received on the subject U.S. officill!ls report that increasing numbers of aircraft rue being flown from Iran into of our missing prisoners of war." 'Dump Thatcher' Syria, brin�ing in weapons, food, and other supplies, which are then trucked across the momentum builds ' border and distributed to Shi'ite terrorist Santos can 't run Le The British are now "undergoing a sea groups in banon. fo r Brazil's President change" in their attitude toward Mrs. The fli�hts are seen by U.S. officials as Thatcher remaining in office, and many graphic evitlence that Iran's support for ter­ The Supreme Electoral Tribunal unani­ Conservatives believe she will be a liability rorism has : not lessened, and that Te heran mously ruled on Nov. 9 that Brazilian televi­ to furtherelectoral successes the longer she has greatly expanded its ties to Palestinian sion network owner Silvio Santos was run­ stays in office, writes Conservative Party radicals su�h as the Popular Front for the ning for President of Brazil on an improper­ Member of ParliamentRicha rd Shepherd in Liberation of Palestine-General Command, ly registered party, and was therefore in vio­ the London Guardian Nov. 14. "Polls would the Syrian-�ased group that intelligence of­ lation of rules requiring television and radio seem to indicate that the Prime Minister's ficials beli�ve carried out the bombing of directors seeking public office to quit their standing with the electorate is significantly PanAm lOS over Scotland in December jobs six months before the elections. worse than that of the governmentor party." 1988. Santos, who was listed by Gallup polls Shepherd argues that a new, post-Thatcher "They baven't changed their spots," an as the front-runner to win the Nov. 15 elec­ government "could more easily respond to administration official said. "The true na­ tions, had made himself popular among Bra­ the call for attention to national infrastruc­ ture of the regime, its use of violence over­ i zil's desperate poor as the labile host of all­ ture, education, and training and manufac­ seas, rema ns the same. The networks are day Sunday programming on his network. turing investment-areas that are also es­ all still thefC, and they are still supporting His candidacy was seen here as an attempt sential for national regeneration." them," according to a New York Times to discredit and destroy the country's demo­ The Independent reported Nov. 13 that report. cratic process. His candidacy was launched Thatcher might get the supportof fe wer than by the "palace guard" of current President 60% of the Conservativemembers of parlia­ Jose Samey, specificallyby Augusto Marza­ ment in a leadership contest next month, Aounfoils gao, international vice president of Mexi­ should somebody rise to challenge her lead­ co's Satanic Te levisa network, who mysteri­ ership. This could so severely damage her assassi'(lation attempt ously became Samey's private secretary a credibility, the paper writes, "She might be few month ago. Marzagao is part of Brazil's forced out of Number 10 Downing Street." An assassination plot against Lebanese Gnostic circles. The Independent stressed that even parlia- Prime Minister Gen. Michel Aoun was

54 International EIR November 24, 1989 Briefly

• GEN. MANUEL NORIEGA was named coordinator of Panama's new Legislative Assembly on Nov. 9. The assembly will have key pow­ foiled on Nov. 5, according to the Nov. 9 ers on national security and interna­ edition of the New Lebanese American Jour­ Mexico's credit tional treaties, and be empowered to nal. The paper reported that Aoun charged "recommend steps to be taken in the that the United States had previous knowl­ is drying up face of aggression by the U.S. or its edge of the plot. "The Americans an­ Japan's Export-Import bank, which had allies," according to a government nounced it before it took place," Aoun said, been expected to provide $2.5 billion that statement. "and it seemed something went wrong, and was supposed to guarantee Mexico's zero­ thank God it failed." No more details on the coupon bonds backing up its debt reduction EL ESPECTADOR, Colom­ incident are provided. • scheme, along with a year or two of interest bia's outspoken anti-drug-mafia dai­ Meanwhile, Rene Moawad, the pro­ on those bonds, has announced that it will ly paper, will receive $2.5 million Syrian puppet President who is challenging only provide $1.9 billion, and that only $1 from a group of U. S. and Canadian General Aoun's constitutional rule, appoint­ billion of that will really be available. The newspaper publishers, in order to re­ ed his own "prime minister," Sunni Muslim rest is being held back waiting for "co-fi­ build its printing plant, which was Selim Hoss. Foreign diplomats, including nancing" counterpart funds from the World partially destroyed two months ago an Iraqi envoy, have effectively given rec­ Bank. by a bomb planted by the drug mafia. ognition of his election as head of state, A top banker told the New York Times according to Reuters . There are also reports that either Mexico will have to come up with ALFREDO CRISTIANI, the that U.S. Ambassador John McCarthy will • the extra guarantee money from its own fast­ President of El Salvador, was not at soon return to Lebanon to present his cre­ dwindling reserves, or else the banks will home when the Soviet-backed terror­ dentials to Moawad. have to settle for less guarantee money. The ist group Farabundo Marti National former option is out of the question, since Liberation Front staged an armed at­ Mexico is already dipping heavily into its tack on his residence. Fighting be­ U.K. assures China, reserves just to pay interest due on its foreign tween government troops and leftist debt. Moreover, so-called "new money" rebels continued in the days fol­ no Hong Kong reforms from the banks is estimated to be no more lowing. than $4.5 billion over the next five years, Great Britain has given the People's Repub­ rather than the $10- 15 billion counted on by • MARGARET THATCHER, lic of China secret assurances that there will Mexico when it made the debt deal with the the British Prime Minsister, will fly be no substantial reform of the Hong Kong banks last summer. to the U. S. to meet with President political system before 1997, the Guardian Bush at Camp David on Thanksgiv­ reported Nov. 14. ing Day Nov. 23. The visit was The British Foreign Office denied the Colombian Conservative scheduled prior to the announcement charge the next day. of the Malta summit, but not prior to The Guardian report was from a "reli­ backs drug legalization the private planning for the meeting, able source," who said that Britain gave officialsreport ed. Beijing its unpublished commitment not to L10reda Caicedo, the candidate of the Social increase self-governmentin Hong Kong be­ Conservative party of Colombia for next • ESTONIA, the northernmost of fore it is handed over to China, and promised spring's presidential election, has called for the Baltic republics under Soviet oc­ Hong Kong would be limited to a precise "decriminalizing" drug consumption and cupation, will soon set up its own number of elected Legislative Councilors. trafficking. He told the daily La Prensa that currency, reports Reuters. Britain has been stalling on the demands "the term legalization is out of fashion. The from the Hong Kong Chinese to accelerate term decriminalization . . . is used now, be­ • PANAMA broke up a drug ring the establishment of full democracy, and of­ cause legalization appears to authorize by providing information to the U . S. , ficials are declaring it would not be wise something that is not good. On the other via Interpol, leading to the seizure to introduce reforms which Beijing would hand, decriminalization means taking away of 1,450 pounds of cocaine and the rescind. the character of a violation against the penal arrest of 17 Panamanians in Miami. In 1991, for the first time, 10 of the 56 code from production, distribution, or con­ "We continue to be members ofInter­ Hong Kong Council members will be direct­ sumption of something that isn't good, but pol and . . . continue functioning ly elected. The Basic Law, which will be that it is preferable to treat it within a system worldwide in the repression of Hong Kong's mini-constitution after 1997, of controls and not of prohibition." crimes, in this case drugs," said At­ is being finalized by Beijing, and will only Caicedo also equivocated on extraditing torney General Carlos Augusto ViI­ provide for "universal suffrage" some time drug traffickers, calling extradition "a nec­ lalaz. next century. essary evil."

EIR November 24, 1989 International 55 Lech Wal esa calls for Marshall Plan for Poland

by William Jones

Lech Walesa, the leader of the Polish Solidarnosc, a man perished whilst we live-Schiller Institute." Walesa nodded who has come to symbolize the fightfor freedom now going approvingly when he passed by' one sign, which read, "Po­ on in Eastern Europe, arrived in the United States on Nov. land needs a debt moratorium," �d waved. 13 to mobilize economic aid for the development of Poland. Walesa came from Canada, where he had been warmly re­ Poland 'chained hand and foot' ceived, but had come away empty-handed, himself describ­ Walesa had obviously been briefed that there was little ing the Canadian response to his request for aid as equivalent to be expected from the Bush administration in the way of to "offering a beautifulnecktie to a corpse." economic assistance to Poland, and that he should concen­ But it was not a simple Polish worker, arriving cap in trate instead on trying to interest businesses in investing in hand, who made his appearance in Wa�hington, but a singu­ his embattled homeland. He did inot repeatthe urgency of the lar representative of a great nation , proud of his nation's $10 billion plan which he had presented to Bush during the recent achievements, seeking a similar effort from this side President's trip to Poland last s�mmer, explaining that there of the Atlantic to help them in "reaching the shores of liber­ was a differencebetween "theoreticians" and "pragmatists." ty."With his Old World grace, his self-effacing manner, and Instead, he said he was now seeking "new Columbuses" who a seemingly endless supply of peasant witticisms to make his were prepared to "go East" and invest in Poland. point, Walesa won the hearts of all who met him. The nation Walesa left no illusions as to how critical the situation of Poland could not have found a more noble ambassador was becoming. "Nobody kno\\ls how much time we have for presenting its case. And yet it still remains unanswered left to reform our economy," be told the assembled trade whether the United States will do more than offer "a beautiful unionists on Nov. 14, "but we all realize it is not much. If necktie to a corpse. " we fail to convince people that although things are changing From the moment he arrived in Montreal, Walesa and slow ly they areneverth eless changing for the better, then this the other members of the Polish delegation were greeted by breeze of freedom I spoke of will soon disappear, leaving representatives of the Schiller Institute, who furnished them behind only a sense of bitterness accompanying unaccom­ copies of Helga Zepp-LaRouche's statement "A Five-Point plished dreams ....Sometimes we feel as if we are swim­ Program to Save Poland" (see EIR , Nov. 17, p. 6). In Wash­ ming chained hand and foot," continued the Solidarnosc ington, the delegation again receivedMrs. LaRouche's pro­ leader, "tryingto summon all our energy just to make it safely gram and a Polish translation of Lyndon LaRouche's state­ to the shore. And on the shore there is a cheering crowd ment on Poland. Throughout the course of the AFL-CIO of people who offer us their admiration instead of simply convention-the AFL-CIO officially hosted Walesa-and throwing a life-belt." elsewhere in Washington, members of the Schiller Institute In the cheering crowd was President George Bush, who, were strategically placed with signs reading "Food for Po­ with Walesa present, addressed the AFL-CIO on Nov. 15. land, Freedom for Lyndon LaRouche," and the opening Bush was full of praise for Walesa and the winds of freedom words of the Polish national anthem: "Poland has still not in the East, saying that the administration was "shoulder to

56 National EIR November 24, 1989 shoulder with the Polish people." He made no new offers of social relations . . . the atrocities were followed by persecu­ aid, however, cutting a sorry figurein comparison to theWest tions of all those who dared think independently . All the German government of Helmut Kohl, which had recently pledges about free elections in Poland that were made in extended state-backed guarantees for a 3 billion deutsche­ Yalta were broken ," he reminded Congress. "Stalin forbade mark credit line to Warsaw . Poland to use aid provided by the Marshall Plan, the aid Walesa made clear that Poland's economic problems are that was used by everyone in Western Europe, including not of its own making. Referring to Solidarnosc, he said, "Of countries which lost the war. . . . And now it is the moment course, we have taken upon ourselves full responsibility for when Eastern Europe awaits an investment of this kind-an the country. There was no other choice. True enough, no­ investment in freedom, democracy and peace-an invest­ body withan ounce of common sense in him would be willing . ment adequate to the greatness of the American nation. . . . to take over a bankrupt enterprise in a hopeless condition, We are not asking for charity , or expecting philanthropy." . but what can one do if that enterprise happens to be one's "But we would like to see our country treated as a partner own country? We could have said that we didn't ruin it and and friend," said the Polish leader, perhaps meaning to re­ so we don't have to worry about its rebuilding. But it is we mind the legislators of America's betrayal of his nation 45 who have had to undertake this task, risking a lot in the years ago at Yalta. process-an awful lot. We took over a country which was in a catastrophic state. The 4O-year experiment with the Com­ Walesa rebuts anti-Semitism slander munist political system caused a devastation which is almost During a Nov. 16 pressconference at the National Press impossible to clear up." Referring to Poland's Western cul­ Club, Walesa categorically rejected the slander that Poland tural roots, Walesa noted that "For those 40 years, Poland is "anti-Semitic," an accusation that has been brought into was separated from the road to which she had once vogue by the circles around Edgar Bronfman in connection belonged. " with the Carmelite convent at Auschwitz. Walesa explained Later at a press conference in the convention hall and how there had been attempts to raise the specter of anti­ several times during the next few days, Walesa was ques­ Semitism in 1968 in orderto divide the struggle of the Polish tioned about German reunification, and asked if he did not people. "Of course," said Walesa, "there are idiots saying feel uneasy in the face of a "greater Germany." W alesa re­ stupid things everywhere-also in Poland." But traditional­ sponded that his country had paid a heavy price under both ly, he stressed, Poland was one country where Polish Jews Hitler and Stalin. "I don't need to say how many people died and Christians "lived together a long time as one country" to because of these two. We must, however, do away with their mutual benefit. "We must stop all those today who try present anomalies." He characterized the separation of the to play the political card of anti-Semitism," warned Walesa. two Germanies as "artificial," calling reunification"both pos­ With regardto Gorbachov, he said that the developments sible and necessary. " "We must see the reunificationof Ger­ in Eastern Europe were not due to Gorbachov. "Revolution many in the context of the changes going on in the whole of was historically necessary because of the development of Europe," he said. "If economic integration is achieved, it civilization. The system is broken. The changes are irrevers­ will lead to political integration-not vice versa." ible. No one can stop the flow of events," Walesa said. In response to a question as to whether the Polish workers 'Marshall Plan' were prepared to accept unemployment, Walesa said that Lech Walesa was the first foreign citizen not holding a "Western and Eastern economies are incomparable. Here government office to speak to a joint session of Congress in the West you have redundancy. In Poland, even if we since the Marquis de Lafayette in 1824. Minutes before his employed all our workers, we still wouldn't be able to catch addresson Nov. 15, the Senate tried tomake a better showing up with the West," indicating that Poland intended to produce than President Bush by approving $738 million in economic its way out of the crisis, not starve its way, as Harvard ec0- aid to Poland and Hungary over the next three years , adding nomics professor Jeffrey Sachs has proposed. a paltry $283 million to thepaltry $455 million in aid request­ Walesa continues his U.S. trip to New York, Philadel­ ed by the White House. The House, looking like a giant in a phia, and Chicago, the last with a Polish population second world of midgets , had called for $840 million. only to Warsaw . The powerful organizing of the Schiller Walesa called for a new Marshall Plan for Poland. In a Institute and the LaRouche candidates in these areas has very passionate speech, Walesa referred to the Yalta agree­ created a ferment among Polish-Americans and other layers ments of 1945 , an agreement formulated by the United States who are responding to the tremendous events in Poland and and Stalinist Russia for the immediate postwar condomini­ East Germany with a surge of cultural optimism not seen · um. Because of Yalta, Walesa explained, ''there was im­ for years in this country. A citizenry excited by this "great posed onPoland an alien system of governmentwithout prec­ moment" will see to it that their congressmen and the admin­ edent in Polish tradition, unaccepted by the nation, together istration feel the heat in order to get them off the fence while with an alien economy, an alien law , an alien philosophy of there's still time to bring Poland to the "shoreof freedom."

EIR November 24, 1989 National 57 • Conference Report

Druglobby plans counterattack on behalfof pot, cocaine cartels

In early September the Bush administration announced a Quantico, Virginia, stated flatly, "George Shultz just does not major offensive against the domestic plague of drug addic­ understand the drugpro blem. He made exactly one speech on tion, with great fanfare and much media attention . In the the subject during his entire tenure at State, and that was dur­ succeeding weeks, the government of Colombia launched a ing a time when we were trying to convince other governments heroic effort to break the back of the drug cartels in a military that this was a priority issue." The White House contributed offensive which gives real meaning to the term "war on a snide remark directed at Shultz as well, but this was the only drugs." While the U.S. government has assisted this effort counter comment which received any press coverage at all. in many ways, overt and covert, the Colombian campaign has virtually no echo in U.S. domestic policy. On the con­ Propaganda offensive under way trary, the media has devoted itself to discussing the terms of Nadelmann told the Drug Policy Foundation conference surrenderin a war which has not yet begun. that the Shultz statement was a signal to a myriad of former The theme is drug legalization, and its exponents include governmentofficials who will now venture to attack the Ben­ the editor in chief of the Economist magazine in London, nett program in public. From his position as associate profes­ prominent professors from Harvard and Yale, economics sor at the Woodrow Wilson School, Princeton University, guru Milton Friedman, and former Secretary of State George Nadelmann has reached out to a broad array of establishment Shultz. figures, and using the calling card provided by his fellow The unifying factor behind this campaign, and the people Princetonian Shultz, has found a receptive response to his waging it, is an American organization called the Drug Policy message of surrender. Foundation, and its European counterpart, the International "I can't give you names, yet," he said "but I am receiving Anti-Prohibitionist League, which held a joint conference in telephone calls everyday from people who supportthis posi­ Washington, D.C. over the weekend of Nov. 2-4. tion, but are not ready to do so in public. I have spoken to a federal judge in New York who is willing to solicit signatures Shultz speech rocks Washington from his colleagues in support of a public statement urging In the week leading up to the conference, George Shultz legalization. We will run this in newspapers across the delivered an address to an alumni gathering at the Stanford country." School of Business, where he is now a professor, in which As further evidence of the prospects for an establishment he stated that after reviewing his involvement in the anti­ revolt against the Bennett policy; Nadelmann pointed to the drug efforts of the Nixon and Reagan administrations, he is participation in the conference by such figuresas Rufus King, convinced that legalization of drugs is now the only viable former counsel to the Kefauver Commission, and retired approach. "If I am catching your attention," he told his audi­ D.C. Superior Court Judge Orm Ketchum. King, who has ence, "then read a bold and informative article in this Septem­ been battling drug control efforts since the days of Harry ber's issue of Science by Ethan Nadelmann on this subject." Anslinger, said that he "had never been more confident" of The speech, reprinted in the Wall Street Journalon Oct. 27, the prospects for legalization. was an advertisement for the conference, which Nadelmann Ira Glasser, Executive Director of the American Civil was organizing, and Shultz followed up with a telegram of LibertiesUnion , explained that the dynamic among the closet greetings which contained an offer to "refer people to you supporters of the cause is on-a-one by one basis, for now. who are interested in supporting reform of currentpolicy . " "When they see something like Shultz's statement, it encour­ The reaction from leading administration spokesmen was ages them to put a toe in the water ...and they'll talk to bitter and swift-behind the scenes. DrugPolicy Coordinator someone [with credentials] like N adelmann. " William Bennett said Shultz's statement "stinks," and added "You have to look at this like the environmental move­ that "it might explain the reluctance of the State Department ment, or the Green partiesin Europe," Nadelmann said. "Ten to support " Bush administration anti-drug initiatives. Drug years ago, who would have thought that these obscure issues Enforcement Administration chief John Lawn, speaking at would be dominating things the way they are today? This

58 National EIR November 24, 1989 movement will grow in the same fashion." His answer to the critics who say that the legalization movement has no step­ by-step proposal for the elimination of drug laws (and the participants of this conference freely admit that they don't), is similar: "Look at the movement for abortion. No one ever argued over how abortions would be provided-clinics, hos­ pitals, or whatever-the focus was on getting rid of the laws first, and the rest worked itself out." The perception of momentum is everything in such a campaign, according to Nadelmann, and the major media will be joining in building support for legalization in the months ahead. Nadelmann says that magazines like Atlantic Monthly, and other establishment journals, are preparing fea­ ture articles on the legalization question for publication in the next months.

Former Secretary of State George Shultz, who now advocates The Vietnam syndrome. the legalization of cocaine, marijuana, and heroin . Arnold Trebach, foundation president and justice profes­ sor at American University in Washington , D.C., repeatedly described the situation in depressed agricultural areas , where referred to the Vietnam war as a reference for the current marijuana has become the only cash crop, and stated that drug policy, both with respect to the demoralization within local police will not arrest, and judges will not bring to trial, the establishment, and the eventual waning of public support the growers and smugglers in these areas . These academic for an effort which is being fought half-heartedly. networks, in conjunction with the defense attorneys who Retired New York City Chief of Detectives, Ralph Saler­ comprise the membership of the National Organization for no, and Wesley C. Pomeroy, former police chief of Berke­ the Reform of Marijuana Laws, or NORML, are the real ley, California, who was security chief at the 1969 Wood­ backbone of the drug legalization campaign. stock rock festival, both emphasized the same point in con­ ference presentations. 'The foot soldier in this war, the patrol And the Rand Corp. officer and the drug field agent, are in the same position as As if in answer to the invocation of the spirit of the Viet­ the soldier in Vietnam." Salerno said. "Don't judge their nam War by the conference organizers, the Rand Corp . mate­ morale by the pronouncements of their political leaders." rialized, in the person of analyst Peter Reutter, to participate Both men stressed that once the barrier has been breached in in several panel presentations. Reutter is typical of the systems public, the law enforcement community, now drowning in analysts who have shaped governmentpol icy in recent years. the drug tide, will look to legalization as a viable life pre­ Like his predecessors in the McNamara Pentagon, he profess­ server. es to support victory, yet produces studies which prove defeat Pomeroy pointed to the attendance at the conference by inevitable. He is the author of the study "Sealing the Borders" the police chief of Columbia, Missouri, as evidence of the which convinced the Pentagon, and later, Bennett's office, to nascent support for his policy among active duty officers. abandon drug interdiction as "not cost effective." Considering that there is an entire generation of "police man­ The method of the study is dubious in the extreme, since agers" trained by the likes of Pomeroy and his fellow drug it begins with the premise that the effect of interdic.tion can be lobbyist, Patrick V. Murphy, these assessments are not idle modeled using the price of cocaine as an indicator. He then boasting. The proteges of Murphy have distinguished them­ states that there is no reliable data on the actual price of co­ selves with public attacks on the National Rifle Association caine, and nevertheless creates a "theoretical" analysis which and the right to own firearms, and have been in the forefront predicts diminishing returns in terms of price increase, for of those who have organized and condoned the brutalization each incremental increase in military interdiction efforts. of anti-abortion protesters in cities around the country. The Privately, the conference organizers were ecstatic over drug legalization hobby-horse will be easily ridden by these the participation of Reutter, and feel that the administration's liberal tyrants. reliance on the approach he reperesnts is the guarantee oftheir The more insidious threat to the morale of police is repre­ ultimate victory. Reutter, of course, "opposes" drug legaliza­ sented by the bevy of "criminologists" participating in the tion, he just wants the debate on the issue to be "scientific." conference. This closely knit network extends from the aca­ demics like Trebach and Nadelmann out to people like con­ International participation ference panelist Dr. GaryPotter, of the Department of Police The conference promised representatives from several Studies, Eastern Kentucky University, in Richmond. Potter Ibero-American nations-Brazil and Colombia, in particu-

EIR November 24 , 1989 National 59 lar-but none showed up, for understandable reasons. Peter has become a supporter of the Dutch model. Heiken of the Inter-American Dialogue did make an unan­ The League otherwise looks to 1992 as the point when nounced workshop appearance, by way of giving the seal of legalization will be a de facto reality, since the open approval to the conference from the foreign policy establish­ borders policy under the Europe 1992 act will make anti­ ment he speaks for. Heiken downplayed the danger repre­ smuggling efforts useless within Europe. The league is sented by international drug money, arguing that this repre­ planning a variety of conferences over the next year to sents only a small proportion of the flight capital in the world develop that theme. black markets, and concluded that legalization will not have a major effect on the debt situation of the drugproducers , nor The U.S. campaign: break Jesse Jackson will it shift the internal political balance of those countries. The campaign to flank, and eventually destroy, the anti­ "The drug barons do not intend to be the Al Capones, drug sentiment in the U.S. government is seen by the Drug dying of syphilis in a federal jail," he said, "they intend to be Policy Foundation as an approlCimately four-year process, the Kennedys, who elect their sons to office." He referenced a with the next two years as the mostcrucial . The media blitz, statement attributedto Enrique Santos Calderone, in El Tiem­ and open defections by establishment figures described by po of Peru, who said "give us a Marshall Plan or give us Nadelmann are seen as the precondition for taking on the big legalization," as typical of the sentiment in Ibero-America. problem, the popular hatredof drugs. If politicians like New Heiken's (and the banking community's) flatresponse: "For­ York State Senator Joe Galiber and Baltimore Mayor Kurt get a Marshall Plan." Schmoke can get reelected in spite of their endorsement of The European participants in the conference were the legalization, reasons Trebach, the way will be clear for snow­ founders of the International Anti-Prohibitionist League, the balling political support. counterpart to the Drug Policy Foundation. Nadelmann, Trebach, and others in the leadership of the The main delegations were comprised of: foundation recognize that 70% of the American public con­ • a group of parliamentarians and others affiliated with siders drugs to be the number-oneproblem facing the coun­ the Italian Radical Party, led by Marco Pannella, Marco try , more important than the next four issues of concern to Taradosh, and Luigi Del Gatto . them. Nonetheless, according to Trebach, "those numbers • a French judge, George Apap, who is AttorneyGener­ are soft ...if you get those same people into a 'focus group' al of Valence. [a gimmick used to test advertising campaigns---ed.] and • Dr. Cindy Fazey and other leaders of a showcase hero­ present these arguments for a weekend, they will consider in-maintenance clinic in Liverpool, England, which operates legalization," on the condition that they are convinced that under the direction of the Warrington Health Authority. H.B. the addict population will not infest their neighborhoods. Spear, retired Chief Inspector of the Drugs Branch of the According to Trebach, the Nancy Reagan-era "moms' orga­ British Home Office, accompanied the delegation. nizations" which were led into the impotent "Just Say No" • a delegation from the Netherlands, comprised of Peter campaign, are moribund and ineffective, and are not the Cohen, sociologist director of the Research Program on Drug fundamental political problem facing the movement. Addiction in Amsterdam; Henk Jan Van Vliet, lawyer and The fact that both Schmoke and Galiber are black politi­ director of the Metropolink Study and Research Center, also cians is fundamental to the legaiization strategy. "The num­ involved with Amsterdam's drug programs; and Ed Leuw ber-one problem we have is thatJesse Jackson keeps running and M. Grapendaal, both of The Netherlands Ministry of for office," stated Ira Glasser. He went on to explain that as Justice in 's Gravenhage. long as Jackson voices the rock-solid hatred of drugs among This delegation's function was to facilitate a sleight of the overwhelming majority of black Americans, the Demo­ hand. They first insist that the British and Dutch "experi­ cratic Party can not touch the drug legalization issue with ments" have not failed, despite widespread agreement that a ten-foot pole, and it will go nowhere in state or federal that have in internationalanti-drug circles. They then careful­ legislatures. ly avoid mentioning that in neither countryhas actually legal­ The desperate hope of Glasser and other activists in the ized drugs: Britain conducts a medically supervised heroin radical wing of the Democratic Party is that Schmoke can distribution system in select locations, and the Dutch have eclipse Jackson with the help of the media, and thereby de­ decriminalized marijuana and allow it to be sold in regulated moralize the most solidly anti-drug voting bloc in the outlets. In neither case has there been a drop in drug abuse, country. just the creation of a more controlled addict popUlation. Co­ With an administration which has no public response of hen admits that it will be at least 20 years beforelegalization substance to the treachery of the likes of Shultz, and has occurs, but the hopeis that gullible Americans will go whole­ allowed the Rand Corp. to fashion a "limited war" approach hog for legalization on the basis of the "success" in Europe. to the drug insurgency, the prospects of the Drug Policy Cohen is privately of the opinion that the new U.S. am­ Foundation look viable, even if their policies are a disaster bassador to the Hague has been sold this bill of goods, and waiting to happen.

60 National EIR November 24 , 1989 Did the U. S. have advance warning of the Lockerbie bomb plot? by Jeffrey Steinberg

On Monday, Nov. 6, 1989, Congo James Traficant(D-Ohio) this was one motive behind the coverup. held a Capitol Hill press conference at which he released five Since Rep. Traficant's Nov. 6 press conference, the ma­ pages of an investigative report prepared for Pan American jor U.S. media have imposed a total press blackout on the airlines concerning the tragic bombing of Flight 103 over story. Lockerbie, Scotland last Dec. 21. Whether or not the PanAm allegations are fully corrobo­ The document contained explosive allegations that offi­ rated, the fact stands that evidence has been publicly released cials of the U.S. Central Intelligence Agency (CIA), the accusing U.S. government agencies of covering up a major West German Bundeskriminalamt (BKA), and the Israeli international terrorist incident in which over 270 people Mossad had advance warning that a bomb would be planted perished, including at least three officials of the CIA. aboard Flight 103 and did nothing to prevent the tragedy. The Lockerbie story is far from over. Just as Watergate The allegations hit most sharplyat the CIA, whose Frank­ festered for nearly a year following the break-in at Democrat­ furt unit code-named "CIA- I" is accused by PanAro of pro­ ic National Committee headquarters, so, too the PanAm 103 tecting a major international drug smuggling ring as part of tragedy may still blow up in the faces of former and current an effort to freeAmerican hostages in Lebanon. Members of senior government officials who tried to bury the scandal. that drug ring who were baggage handlers at the PanAm In the public interest, EIR publishes in full the five-page cargo area at Frankfurt airport allegedly planted the suitcase excerpt from the PanAm investigative report. This publica­ aboard the aircraftthat contained the bomb. tion is investigating the allegations published here. As of this According to the investigative reportreleased in part by writing, EIR is convinced that the PFLP-GC did play a central Congressman Traficant, as well as court documents filed role in the PanAm 103 bombing and that both the Syrian by attorneys for PanAm with the federal district court in and Iranian governments were key sponsors of that anti­ Brooklyn, New York, the mastermind of the drug smuggling American assault. Beyond that, the chronology of events operation was a Syrian national, Mansur AI-Kassar. AI-Kas­ presented in the PanAm report speaks for itself, but remains sar is a relative by marriage of Syria's military intelligence still unconfirmed by this news service. chief, General Ali Duba, and is extremely close with both Rifaat and Hafez AI-Assad. According to European published accounts, AI-Kassar has been arrested on a number of occasions by British, Documentation French, Spanish, and other European police agencies for a wide range of criminal activities including heroin trafficking. In one book-length account, AI-Kassar is linked to top offi­ cials of both the Medellin and Cali cocaine cartels in Colom­ Excerpts from the bia, as well as to leading Sicilianorganized crime figures . Early this year, the U.S. Drug Enforcement Administra­ PanAmdocuments tion's Berne, Switzerland office was blocked from carrying out a major investigation that would have linked Middle On Monday, Nov. 6, 1989, at a press conference on Capitol Easterndrug traf fickingnetworks centered in Lebanon's Be­ Hill, Congo James Traficant (D-Ohio) released segments of kaa Valley, to the Medellin Cartel, through common money­ an investigative report prepared fo r Pan American Airlines laundering facilities including Shakarchi Trading Company attorneys which purported to detail the events leading up and the New York-based Republic National Bank. to the Dec. 21, 1988 bombing of PanAm Flight 103 over While AI-Kassar's name never came up in the publicly Lockerbie, Scotland. Below are excerptsfrom five p lges of released documents from that DEA file, some Washington the 27 page memo released by the congressman. It should be intelligence specialists suspect that such a link exists and that noted that neither the congressman nor EIR has yet substanti-

EJR November 24, 1989 National 61 ated the chronologyof events presented in the PanAmre port. secure the other American carri�rs and thus deter an attack Bracketed interpolations, except where otherwise indicated, there. are as in the original. Nidal and AI-Kassar meanwhile did not know Jibril's exact plans. From their own spi�s they now realized that he Ali Racep, a Syrian living in Sofia,Bulgaria, (tel. 9223294), was planning a bomb attack at Oltvia Frankfurt airport. They reportedly arranged the bomb components and their shipment did not have the political pull to dissuade him. Duba was into West Germany in November 1988, via route provided caught between two conflicting' forces: 1) his money from by Al-Kassar. One reason this shipment may have been necessary was that in late October 1988, a terrorist safehouse in Neuss, West Germany, was raided by BKAlBND. They were tipped by AI-Kassar intermediaries who wanted to avoid terrorist �n undercover Mossad agent tipped operations near to and which could spoil his CIA-l protected BKAwithin 24 hours befo re takeqffas Frankfurt drug routes. They arrested 14 persons, including Dalkamoni, Ghandanafar, and Marwan Khreesat, and found to the plan to place d bomb on that numerous bombs in audio equipment. veryPanAm jlight. BRApass ed that BKA bungled the job though. First they quickly released to CIA-l and askedjor instructions. Khreesat. He has since been publicly identified as a double agent, i.e., a terrorist informing to BKA. However, he is CIA-l so reportedto �tscon trol. CIA-l now suspected of having been a triple, working all along for did not reply to BKA. The bomb was the terrorists. Second, they did a sloppy job finding and ready .. . ' then investigating the various devices-one BKA technician, instructed to "check" a radio, thought he was to fix it and opened it. It exploded, killing him. This Semtex bomb was similar to that used in the disaster. In any event, AI-Kassar actually brought the bomb in AI-Kassar's drugs and 2) his intelligence orders and pressure personally. His brother Ghassan's wife, Nabila Wehbe, trav­ to help Jibril hit America. He chose the latter. AI-Kassarand eling on a South Yemen diplomatic passport, flewfrom Da­ Nidal assumed first that Jibril aimed at Lufthansa but then mascus to Sofia on Nov. 13, 1988, picked up the bomb thought it could be American or PanAm. Their spies told components from Racep, and then flew to Paris. AI-Kassar them that it would happen in the next few days. picked up the bomb from her, and on Nov. 25, 1988, rented This was on or a few days prior to Dec. 18, 1988. a car from Chafic Rent-a-car, 46 Rue Pierre Charronin Paris, Second. Nidal and AI-Kassar then figured out the most and drove to Frankfurt (carrying other contraband as well). likely flightsfor Jibril's bomb. They wanted to protect their He had previously been arrested twice by West German bor­ route's CIA- l cover. On or about Dec. 18, 1988, via interme­ der guards but each time was suddenly released after a tele­ diaries, they tipped BKA that a bomb would be placed on phone call was made. Sources speculate that he apparently this regular PanAm Frankfurt-london-New York flight in felt secure because he had "protection." the next three days. They figurc:d that BKA would increase As to the target, Jibril preferred not to interfere with AI­ visible security, thus dissuading Jibril in case that was in Kassar's successful PanAm route to avoid a clash with Duba, fact his target. So, two-three days before the disaster, and and neither did Duba since he made money fromthe drugs. unwittingly, these terroriststipped off the authorities to what Jibril chose American Airlines as his target. proved to be the very act. It was at this time, approximately the beginning of De­ BKA told CIA-I. cember 1988, that tips and warnings filtered in. Our sources Third. CIA- l reported to its,control who reportedto CIA have identified the warnings as follows. HQ, which sent warningsto vanious embassies, etc., but not First. About three weeks prior to the disaster, a Mossad apparently to PanAm. CIA-l thought that BKA surveillance agent in a position to personally observe tipped his HQ that would pick up the action and that BKA would stop the act in a major terror attack would take place at Frankfurt airport case the tip was correct. I against aU. S. airline. Mossad HQ warned CIA HQ and BKA Meanwhile, CIA-l learned fromAI-Kassa r furtherinfor­ HQ. mation about the special McKet-led CIA team in Beirut. Al­ Thereafter the law enforcement presence, but not airline Kassar had earlier, [possibly wilthin montha or so], reported security, visibly increased around the other American carri­ to CIA-l what to him was very �isturbing news, which CIA- ers , but not PanAm. Sources report that CIA-l wanted to 1 then had confirmedfrom its control. steer the warned-ofact to a place whereit could observe same The earlier news was as follows. After some time the best [sic-EIR], PanAm. CIA-l suggested thatBK A visibly special team learned of AI-Kassar and started investigating

62 National ElK November 24, 1989 him and learnedhis CIA-protecteddrug/arms smuggling and baggage handler connection via PanAm. For the Turk and terrorism support activities. They also realized that some Jafar this was another normal drug run. Jafar does not profile CIA unit was protecting his drugsmuggling into the U. S. via as a suicidal martyr type. Frankfurt airport. Fifth. An undercover Mossad agent tipped BKA within They also learned of a CIA drug smuggling protection 24 hours beforetakeoff as to the plan to place a bomb on that for hostage help deal and that it was known and agreed by very PanAm flight. Syrian intelligence which had a master plan to blame Iran BKA passed that to CIA-l and asked for instructions. if the deal was exposed. They had communicated back to CIA-l so reported to its control. Langley the facts and names, and reported their film of the CIA- l did not replyto BKA. hostage locations. CIA did nothing. No reply. The team was The bomb was ready. Within 24-48 hours before the outraged, believing that its rescue and their lives would be flight a black Mercedes had parked in the airport lot and the endangered by the double dealing. Turkish baggage handler picked up a suitcase from that auto By mid-December the team became frustratedand angry and took it into the airport and placed it in the employee and made plans to return to the U. S. with their photos and locker area. This was his usual practice with drugs. evidence to inform the government, and to publicize their Sixth . On Dec. 21, 1988, a BKA surveillance agent findings if the government covered up . They did not seek watching that PanAm flight's loading noticed that the "drug" permission to return, which is against the rules. The return suitcase substituted was different in make, shape, material, was unannounced. The team was surveilled by AI-Kassar and color from that used for all previous drug shipments. (probably Syrian) agents when making its travel plans, which This one was a brown Samsonite case. He, like the other included connecting with Flight 103 in London on Dec. 21, BKA agents on the scene, had been extra alert due to all the 1988. Sourcesreport eight CIA team members on that flight, bomb tips. Within an hour or so before takeoffhe phoned in but we only have identifiedthe fivenames reported herein. a report as to what he had seen, saying something was very AI-Kassar contacted his CIA- l handlers sometime in the wrong. thirdweek of December 1988, communicated the latest news BKA passed that information to CIA-I. It reported to its and travel information, and asked for help. There were nu­ control. Control replied: don't worry about it, don't stop it, merous communications betweenCIA- l and its control . let it go. Fourth. Two-three days before the disaster a BKA under­ CIA-l issued no instructionsto BKA. cover agent reportedto his superiors a plan to bomb a PanAm BKA did nothing. flight in the next few days. BKA passed the intelligence to The BKA was then covertly videotaping that areaon that CIA-I. day. A videotape was made. It shows the perpetrator in the Again, CIA-l wanted to warn "its people" but did not act. It was held by BKA. A copy was made and given to want to blow its surveillanceoperation and undercover pene­ CIA- I. The BKA tape has been "lost." However, the copy tration or to risk the AI-Kassar hostage released operation. exists at CIA- l controlin the U.S. Warningwere sent via the State Dept. to its embassies [these Jafar boarded the flight after checking one piece of lug­ may be the same warnings as described above] . gage. The suitcase firstemerged from hiding and was placed CIA- l and/or its control apparently "planned" [control on the luggage cart in substitution for Jafar'sonly after all was distracted by the McKee team's planned return and the checked suitcases had already passed through security. events were moving quickly as were decisions] that BKA's The suitcase was so switched by the Turkish PanAm baggage surveillance would pick up the action at the airport and then loader. come up with an anonymous "tip" to plausibly explain why The method bypassed all airline security measures in it was suddenly examining the checked luggage. place. The only measure for airlines to defeat this method We do not know what if any tips were given to the other would be for security guards to personally conduct all lug­ American carriers, but law enforcement (not airline) security gage under their personal view from start to actual loading suddenly tightened even more around them, but not PanAm. and then closing of the baggage cargo holds on the plane. Jibril or his on-scene lieutenants then decided to scratch Only El Al does this. American Airlines and finally select PanAm. We do not The special, designated communications codename know exactly when this decision was made, but the dates which BKAlCIA- 1 had set up for their operations as de­ pointto two-threedays beforethe flight. scribed above is known at CIA HQ as "COREA." All com­ Sources speculate that, although Jibril knew this jeopard­ munications concerning the surveillance operation and as ized Nidal/AI-Kassar's drug route , he felt that he was too described above as between or among BKAlCIA- 1 and CIA- committed to stop and had to go through with his plans, and, 1 control were made via COREA. Thus all documents con­ in a bit of double-dealing, rationalized that any exposure of cerning all communications described above ought be the act and blame would fall on his rival Nidal. marked at the top COREA. Jibril throughan intermediary activated the JafarlTurkish This completes the recitationof intelligence as to the act.

EIR November 24, 1989 National 63 Defendants in NewYo rk 'LaRouche' case file motion for new trial

On Nov. 13, attorneysre presenting Marielle Kronberg, Rob­ has been discovered since the trial which could not have been ert Primack, and Lynne Sp eedfiled a motion fo r a new trial produced by the defendant at trial even with due diligence before New York Supreme Court Justice Stephen G. Crane. on his part, and which is of such character as to create the The three defendants are associates of Lyndon LaRoucheand probability that had such evidence been received at the trial, were convicted Aug. 31, aft er afour-month trial before Judge the verdict would have been more favorable to thedef endant. " Crane, of one count of scheme to defra ud. Primack was also 3) The primary defense offered at trial was that the United convicted on one count of conspiracy; Kronberg and Speed States Government engaged in a pattern of conduct geared were acquitted on that count. A fo urth LaRouche associate to destroying the financial welfare of the LaRouche-related on trial with them, George Canning, was acquitted on both entities and interfering with their ability to defend against counts. criminal charges. This defense was directly relevant on the 1n part, the motion cited as new evidence requiring a new issue of intent to repay the loans. trial, the Oct. 25 decision by Federal Bankruptcy Judge 4) Subsequent to the trial, the United States Bankruptcy Martin V.B. Bostetter, Jr. , in which Bostetter fo und that the Court for the Eastern District of Virginia rendered a decision fe deral governmenthad acted in badfaith infilinga petition, dated October 25, 1989, dismissing the involuntary bank­ back in April 1987, to fo rce three companiesassociated with ruptcy proceedings against Caucus Distributors, Inc., Cam­ Lyndon LaRouche into bankruptcy, Bostettertermed the gov­ paigner Publications, Inc., and Fusion Energy Foundation, ernment's actions against the three companies a "construc­ Inc. The decision is annexed hereto as exhibit "A." Chief tivefraud on the Court." Judge Martin Bostetter expressly found that the United States The relevance to the New York case of Bostetter' s deci­ Government had filed the involuntary bankruptcy petition sion is, in part, as follows. The case, brought by New York against these entities in objective bad fa ith (Decision at p. Attorney General Robert Abrams, and prosecuted by Assis­ 91). The Court found that the Government filed the petition tant Attorneys GeneralDawn Cardi and Rebecca Mullane, with knowledge that the entitie$ had more than twelve credi­ revolved around the prosecution'sfa lse claim that the defen­ tors, and concluded that such action "despite that knowledge dants hadschemed to defraudby raising loansfrom political constituted an improper use of the involuntary bankruptcy supporters fo r three LaRouche-associated publishing and statute and consequently an improper invocation of this distribution companies-Campaigner Publications, Caucus court's jurisdiction. . . ." (Decision at p. 47). Distributors, and New Benjamin Franklin House-loans 5) Annexed hereto as Exhibit "B" is a sworn affidavit which the prosecution claimed they never intended to repay . of former Assistant United States Attorney John Markham, The defense asserted that, in fact, the inability to repay executed on August 30, 1989, one day prior to the verdict in loans was a result of government actions, including govern­ this case. The defendants soughtto call Markhamas a witness ment seizures and destruction of defendants' financial re­ at trial in order to demonstrate to the jury that an agent of the cords, and the April 1987 ex partepetition filedby thefe deral United States Government, Richard Egan, acted in bad faith government to fo rce Campaigner, CD1, and Fusion Energy and in violation of a judicial directive in destroying critical Foundation into involuntary bankruptcy. On April 21 , 1987, documents of Caucus Distributors , Inc. and Campaigner the companies were closed down. Publications, Inc. (TR. 7829-783 1; 7874-7876). The motion fo r a new trial, filed by Primack's lawyer 6) Agent Richard Egan testified in substance at trial that Jeffrey C. Hoffman on behalfof all three defendants, reads he had in fact destroyed boxes of documents, but that he did in part: so unaware of any request, order, or direction to preservethem (TR. 7447-7635). In his August 30th affidavit, Markham 2) I make this affirmation on behalf of all of the defen­ states that he communicated to Agent Egan that "he could not dants, in supportof their motion pursuantto CPLR 330.30(3) throw away any documents belongingto Caucus, Campaign­ to set aside the verdict on the grounds that, "new evidence er, or Fusion because Slade Dabney had told me that theywere

64 National EIR November 24, 1989 wanted back for the bankruptcy." (Markham affidavit, p. 6, impacts upon the issue of the defendants' intent. The inferen­ paragraph 14). Markham further states that he believed that tial manner in which improper government activity was pre­ Egan was present in the Boston Courtroomwhen preservation sented at trial allowed the People to argue that the defense of of the documents was ordered, because he had just spoken to governmentharassment, including the involuntary bankrupt­ Egan in the Courtroom about "how he wanted to handle Mr. cy, was "yet another catchy alibi" and "excuse" characteristic Anderson's expressedconcerns about ' Agent Egan . . . play­ of the defendants' cavalierattitude towardlenders (TR. 8609- ing games with authorization' . . . of those who might come 8613). Indeed, the prosecutionaffirmatively argued that "this to pick up the documents" (Markham affidavit, p. 6, para­ [harassment] did not happen out of the blue, but as another graph 15). direct consequence of the defendant's illegal conduct" (TR. 8610). As such, the prosecutorused the theoryof the defense in order to draw a furtherinference of guilt, which would not '. . . the involuntarybankru ptcy . have been possible if the powerful evidence of government misconduct, described herein, had been available at trial. allowed prosecutorsto recruit 10) Not only is the bankruptcydecision new evidence cru­ witnesses withthe psychological cial to the theory of the defense, but it is important for another incentive thatlenders had no other reason. Wayne Hintz testified to a number of measures that were undertaken throughthe springof 1986 in orderto manage recoursebut toput the cUife ndants the loan debt, including ceilings, repaymentbudgets , and re­ behind bars.' negotiations (see, e.g., TR. 3721-3725). There was no evi­ dence at trial of any loans taken afterSeptember 1986. The involuntary bankruptcy occurred on April 20, 1987, and the Bankruptcy Court found that "the government has failed to 7) At trial, the defendants requested a brief adjournment establish that the debtors generally were not paying their debts to produce Markham as a witness, which application was as they becamedue as of April20 , 1987, thedate the petitions denied. Mayer Morganroth, attorney for Marielle Kronberg, were filed" (Decision, p. 82). All the governmenthad shown represented to the court that he had spoken to Markham and was that "the debtors hadmajor financialdifficulties from ear­ Markham told him that his testimony would be "materially" ly 1984 through September19 86"(Decision,p. 81). Thus, the different from Egan's, although he would not divulge spe­ involuntary bankruptcy summarily preventedthe defendants cifics(TR. 7829-7830, 7874-7875). Not until the defendants fromestablishing , in fact and at subsequent criminal trials, a received the attached affidavitdid it become clear that Mark­ continuing commitment to honor their obligations and it ham would have unequivocally testified that he witnessed a allowed prosecutors to recruitwitnesses with the psychologi­ demonstration of bad faith, obstructive conduct on the part cal incentive that lenders had no other recoursebut to put the of a government agent vis-a.-visthe LaRouche organization. defendants behindbars . 8) It is submitted that the bankruptcy decision and the 11) Virtually everylender witness at trial was asked if he sworn statement of John Markham constitute new evidence or she was ever repaid. . . . Since the prosecutor used non­ which create a probability that the verdict would have been repayment-to-date as proofof guilt, it was essential, in order more favorable to the defendants had the evidence been re­ to engender reasonabledoubt, that the defendantsoffer proof ceived at trial. The primary defense offered at trial, from of reasons other than intent not to repay ab initio, obviously opening statements forward, was that the defendants were an amorphousand therefore difficult conceptto rebut. Given subjected to a patternof governmentactivity which interfered that an ordinary juror does not presumebad faith on the part with their ability to repay loans and raise revenues in order of its government, proof of an involuntary bankruptcy alone to do so. This defense included evidence of the government was not enough. Withoutthe new evidence of an improperly seizure of documents without which the organization could initiated bankruptcy, the jurorscould too easily conclude that not administer loan repayments; evidence of adverse publici­ the bankruptcy occurred because the entities were in fact ty which affected the ability to raise contributionswith which bankrupt and had achieved that state in reckless disregard of to repay loans; and, finally, evidence that the United States their creditors' interests. Government shut Caucus and Campaigner down by filing 12) The testimony of John Markham is also direct evi­ an unprecedented petition for involuntary bankruptcy. The dence of government misconduct. It would not simply be Bankruptcy Court's findingthat the government acted in ob­ offered to impeach or contradict Agent Egan's testimony. jective bad faith and the testimony of John Markham that he Egan was called primarily to establish that he had in fact witnessed intentional, obstructive conduct by a government destroyed documents, including, as demonstrated by other agent are persuasive, concrete examples of the pattern of evidence, loan repayment materials. As a matter of course, government activity urged by the defendants at trial. his testimony included the self-servingclaim that he did not 9) This pattern, now provable by direct evidence, clearly do so knowingly and intentionally and the defense attempted

EIR November 24, 1989 National 65 to establish otherwise. Markham, on the other hand, could testify as a witness to precisely the kind of governmentcon­ duct which interfered with repayment of loans and which Overpopulation Isn't interfered with the ability to defend against criminal charges. Killing the Finally, Markham's testimony would also "prove the lie," as World's Forests- it were, on the part of a government agent under oath, and the Malthusians Are constitute further proof of improper government conduct with respect to members of the LaRouche organization. 13) It is therefore submitted that the bankruptcy decision and the Markham testimony constitute new evidence, not There Are available at trial, which create the probability of a more favorable result for the defendants. The jury in this case No obviously struggled with the question of individual criminal responsibility, as demonstrated by their disparate verdicts. Limits to Clearly they did not believe there was an organization-wide Growth criminal intent. Thus, the proof certainly was not over­ whelming and the evidence brought to light herein probably by would have created a more favorable result. . . . Lyndon H. LaRouche, Jr.

Order from: Ben Franklin Booksellers, Inc. 27 S. King St. Leesburg, Va. 22075 (703) 777-3661

5 million leafletsto $4.95 plus $1 .50 shipping ($.50 for each additional book) MC, Visa, Diners, Carte Blanche, and American Express accepted. tell of Bostetter ruling Bulk rates available The Commission to Investigate Human Rights Viola­ tions announced Nov. 14 that it has ordered the printing of 5 million flyersfor immediate distribution in North America, to announce the decision of Judge Martin V. B. Bostetter and its importance for American juris­ prudence. The flyeris titled "Judge Finds U.S. Govern­ ment Acted 'In Bad Faith ,' Committed Fraud in La­ Rouche Case." 'This is a victory, not only for the LaRouche move­ ment, but for the rule of law in the United States," announces the flyer. "It opens up a significant oppor­ tunity to crack apart the American police-state law enforcement apparatus which is being used increasing­ ly to crushall independent resistance to the dictates of the U. S. Establishment-from trade unionists to the right to life movement, from defense contractors to clergymen. " The Commission is also seeking to purchase adver­ tisements in prominent newspapers around the nation and in Europe. The Paris-based Commission has actively pro­ moted countermeasures to governmentharas sment and The Power of fraud against the political movement associated with Lyndon LaRouche, since conducting a wide-ranging Reason: 1988 inquiry into the matter in 1987, prompted, in part, by An Autobiography by Lyndon H. LaRouche, Jr.

the brutality of this bankruptcy decision itself, now Published by Executive Intelligence Review Order from Ben Franklin Booksellers, 27 South King St.. Leesburg, VA overturned. 22075. $10 plus shipping ($1.50 for first copy . . 50 for each additional). Bulk rates available.

66 National EIR November 24 , 1989 Eyeon Washington by NicholasF. Benton

Democratic hawks sharpen talons menia, and, especially, Ukraine. He The CSIS crowd is ready to swoop down ifGeorge Bush goes said that Ukraine, with its industry and agriculture, is key to Soviet status overboard appeasing Gorbachov. as a superpower. "Without it," he quipped, "They are just like a big Can­ ada." In this light, Besan�on said, Gorbachov is corning to Malta talking As President Bush prepares for his stole the show, remarks made by ex­ of "a new Yalta," in hopes he can save Dec. 2-3 meeting with Mikhail Gor­ perts on the Abshire panel under­ the Soviet regime and maintain the in­ bachov near Malta, there are signs scored the concern felt both in Wash­ tegrity of the empire, even if it has to here that some Democrats, embold­ ington and Europe about the dangers be scaled back temporarily . ened by their victories in this Novem­ of the Malta meeting. "It is moral wisdom not to comply ber's elections, areplotting to take ad­ Prof. Alain Besan�on, of the Par­ with him," Besan�on said emphatical­ vantage of Bush's obsessive desire to is-based Ecole des Hautes Etudes en ly. Another effort to bail out the Sovi­ help Gorbachov hold power in the So­ Sciences Sociales, called Gorba­ ets "will be very dangerous for us," he viet Union. chov's situation "completely desper­ warned. "Do not give them legitima­ They are preparing for a dramatic ate ," and cautioned Bush "not to take cy. They are collapsing. Leave them role switch if Bush appears to move any steps to bail him out." All the re­ to rot in their own mess." too far towarddeep conventional forc­ form programs that Gorbachov came A similar tack was taken by Jeane es cuts in Europe. The response of key into power prepared to implement Kirkpatrick, former U.S. ambassador Democrats-especially those who have failed, Besan�on said, and for to the United Nations, sometimes fancy themselves cut of presidential the last two years Gorbachov has been mentioned as a presidential hopeful. cloth-wouldbe to suddenly steal the reacting to events "with no coherent She predicted that Gorbachov will hard-line position on defense, at least plans other than to profit from the in­ come to Malta with "dramatic new de­ relativelyspeak ing, fromthat "wimp" competence of the West." partures in conventional force reduc­ Bush. Such a role reversal , these He said that Gorbachov may be tions," aimed, she said, at a hoped-for Democrats may think, could be just prepared now to repeat what Lenin did demilitarization of West Germany and what their party needs to reverse al­ at the Treaty of Brest-Litovsk, which the ultimate dismantling of NATO most two decades of miasma on the was to accept a much smaller territory and the Warsaw Pact. national leadership level. in exchange for stability and security. Kirkpatrick cautioned Bush that Such a development would cer­ Such a move, as with Lenin, Besan­ "policy based on personal relation­ tainly match the designs of the crowd �on said, would only be to draw back ships doesn't work," as the Roosevelt­ at the Center for StrategicInternation­ temporarily to prepare for a much Stalin summits showed, and that al Studies (CSIS)-Henry Kissinger, greater outward thrust. "skillful settlements will not end poli­ Zbigniew Brzezinski, and friends­ This time, he said, the Soviets tics-namely, the restless striving whose pet politician remains Senate may be willing to let huge chunks of afterpower by nations." She remind­ Armed Services Committee chairman territory go, since it is almost impossi­ ed the audience that "while we've Sam Nunn (D-Ga.). CSIS president ble to bring entire nations under con­ seen the Iron Curtain being raised, this David Abshire, the former U.S. arms trol. He noted that Gorbachov is not is not to be confused with the end of controlambassador, was among those dealing with a few thousand students Soviet power." on a panel convened by the Radio Free demonstrating in Beijing, but with What has changed, she said, is not Europe/Radio Liberty Nov. 15 to dis­ whole nations. To bring even Azer­ only the failure of, but the acknowl­ cuss "The Future of Communism and baijan under control would require edged failure of the "totalitarian proj­ the Western Response." hundreds of thousands of soldiers in a ect." Its failure "has been recognized, Abshire's remarks were cut short Red Army which is already 37% and it is being abandoned," she said. by the arrival of Polish Solidarnosc Muslim. "The utopian and grandiose dream of leader Lech Walesa to the meeting, Therefore, he said, the Soviets power seized and exercised over a fresh from his historic address to a could survive as a superpower if they whole society and its culture through joint session of Congress. But while retained, besides Mother Russia, no monopolistic control over all aspects Walesa's hour of answering questions more than Belorussia, Georgia, Ar- of life has failed," Kirkpatrick said.

EIR November 24, 1989 National 67 ----���------__-- ______�l Congressional Closeup by William Jones

r... .. �enate passes committee the senators had intervened hold the funds unless the President China sanctions improperly in an ongoing investi­ certifies that the practices have The Senate on Nov. 17 passed and gation. stopped� The White House had indi­ sent to the President a bill imposing In the byzantine world of contem­ cated to Smith that acceptance of his economic sanctions on Communist porary Washington politics, it is gen­ amendment by the House would re­ China for its June military crackdown erally understood, however, that the move thethreat on that issue. against the pro-democracy move­ "ethics" probe, directed primarily ment. The sanctions, included as a against leading Democratic senators, part of the State Department authori­ could very well be a vendetta by sec­ zation bill, include suspension of risk tions of the administration or by the insurance for companies doing busi­ Department of Justice against what it C ontrols continued on ness in China, suspension of trade as­ considers political opponents. One of Medi�aid-financed abortions sistance, a freeze on exports of U.S. the accused, Sen. Dennis DeConcini The Congress agreed on Nov. 17 to satellites, a halt to sales of controlled (D-Ariz.), has been a key opponent of President Bush's demand for retaining munitions, and an end to the sale of the Racketeering Influencedand Cor­ strict controls on Medicaid-financed certain nuclear materials. rupt Organizations (RICO) statutes. abortions, as the Senate joined with President Bush has somewhat re­ Another, Sen. Alan Cranston (D-Ca­ the House in shelving provisions to luctantly agreed to the sanctions, but lif.), had been the most vociferous op­ permit use of federal funds for abor­ is being encouraged to veto the bill ponent of the nomination of Donald tions in cases of rape or incest. The because of a provision which would Gregg as ambassador to South Korea, decision continues current law permit­ bar the President from using U. S. aid because of Gregg's role in the Iran­ ting Medicaid funding of abortions money to entice foreign governments Contra operation and coverup. The only in order to save a woman's life. to carry out policies contrary to Amer­ other senators are John McCain (R­ The action delays a showdown over ican law. The provision, arising out Ariz.), John Glenn (D-Ohio), and liberali;r.ingabortion laws. of the Iran-Contra affair, would "chill Don Riegle (D-Mich.) . . . a wide range of routine and unob­ jectionable diplomatic activity ," ac­ cording to top administration offi­ cials. Co�gress criticizes House throws Population World Bank lending Fund issue to Bush The House foreign aid bill, now pend­ The House voted 219-203 on Nov. 14 ing in the U. S. House of Representa­ to allow President Bush to decide tives, would withhold $2.241 billion Ethics Committee to probe whether population control funds will of U.S, underwriting for World Bank Lincoln Savings affair go to aU. N. agency that financespro­ loans at least until next spring. Rep. The Senate Ethics Committee met on grams in Communist China. The vote David Obey (D-Wis.), chairman of Nov. 17 to consider retaining an out­ eliminated Senate language in the bill the foreign operations subcommittee, side counsel to investigate whether which would have provided $15 mil­ has used the issue to highlight his con­ five senators violated Senate rules lion in aid money to the U.N. Popula­ cern over the bank's "structural ad­ when they intervened with federal tion Fund. justment lending" to debt-ridden na­ regulators on behalf of Lincoln Sav­ Foes of the measure pointed out tions such as Mexico. ings and Loan of Irvine, California. that the U.N. agency has participated In a Sense of the Senate amend­ If the committee decides to retain an in Chinese programs that use forced ment raised on Nov. 13 by Sen. Wil­ outside counsel, it would be the first abortions and involuntary steriliza­ liam Roth (R-Del.), it was also pro­ step toward a full-scale investigation tion. President Bush indicated that he posed that the United States not com­ of the senators-one Republican and would veto the bill, if the measure mit itself at this time to another quota four Democrats. Edwin Gray, the were included. increase for the International Mone­ chief federal thrift regulator at the The amendment, submitted by tary Fund. One ofthe reasons given by time of the alleged violations, said in Rep. Christopher Smith (R-N.J.) and Roth was the dramatic changes taking testimony before a congressional accepted by the House, would with- place today in Eastern Europe. "I do

68 National EIR November 24, 1989 not believe that this is the time to make that President Bush must expect and Congress concerned over commitments of our limited resources be prepared to counter a possible So­ Bush shift on Iran that may restrict possible future V.S. viet proposal to withdraw all V. S. and The administration is faced with sub­ involvement in assisting these revolu­ Soviet armed forces from Europe stantial congressional opposition to its tionary economic and political devel­ when he meets with Soviet President about-face on the issue of Iran. A deal opments," he said. Mikhail Gorbachov next month. struck this month between V. S. and "How would the Vnited States and our Iranian lawyers which would permit allies respond if Gorbachov offers to the return of $567 million in frozen remove all foreign troops from all Eu­ Iranian assets caused a bit of a stir ropean countries within a period of a among legislators . President Bush de­ Dole attacks Mitchell fe w years? We had better start think­ scribed the shift asa "beyond contain­ for 'carping' at Bush ing about it," said the Georgia ment" policy. Both Republicans and White House concern about Demo­ senator. Democrats attacked what they called cratic sniping at the Bush administra­ Nunn said later in an interview a "totally misguided policy," ques­ tion was transferred to the Senate that he believes strongly that Gorba­ tioning the wisdom of improving rela­ floor, as Senate Minority leader Rob­ chov, spurred by the political upheav­ tions with a nation still involved in ert Dole (R-Kan.) defended the Presi­ als in EasternEurope , will use the sea­ state-sponsored terrorism, and which dent in a sharp rebuke to Majority going summit to frame a new peace is supporting groups still holding Leader George Mitchell (D-Me.), initiative that will catch Washington American hostages in Lebanon. who had called on Bush to visit West off-guard. Nunn said he would urge At a press conference on Nov. 7, Berlin and to "give voice to the exhila­ the administration to deal very care­ Bush said that he wanted "this under­ ration felt by all Americans" at the fully with any Soviet proposal for brush," as he called the seven-year­ effective collapse of the Berlin Wall. massive withdrawals, making sure old U.S.-Iranian claims dispute, Dole's response came after a se­ that Gorbachov defines "how far out "cleared out now." In testimony be­ ries of speeches by the Democratic of Europe" Soviet troops would be fore the House Foreign Affairs sub­ leader reprimanding the President for withdrawn. committee on the Middle East, State his excessive caution and timidity in Nunn also indicated that current Department legal adviser Abraham responding to change in the Soviet East-West negotiations to reduce Sofaer told the panel that he thought bloc. Republicans have been growing NATO and Warsaw Pact conventional it "would obviously be desirable" for restive under Mitchell's assaults, and forces in Europe might soon come un­ the United States and Iran to begin some have expressed concern that der intense pressure to expand their direct negotiations to speed up the res­ Bush is suffering from an inadequate horizons. olution of government-to-government defense against what they see as a claims, including Iran's for undeliv­ mounting Democratic campaign to ered V. S. arms and services. portray him as an ineffectual leader. Assistant Secretary of State John Mitchell accused Bush of not going Senate demands free Kelly tried to assuage the panel by far enough in normalizing trade rela­ East German elections saying that he detected "no significant tions with the Soviets as they move In a resolution passed on Nov. 13, the change" in Iran's support for interna­ toward reform of their economy under Senate, commending the people of tional terrorism or its support for Shi'­ Gorbachov's leadership. East Berlin for their heroic struggle ite extremist factions in Lebanon in obtaining the opening of the Berlin holding the hostages. While it was Wall, called upon Soviet and East "retrenching" in its arms purchases German authorities to "remove and because of a foreign exchange short­ destroy the Berlin Wall," and urged age, it was still providing financesand N UDD fo rewarns Bush the government of East Germany to support for the Shi'ite extremist Hez­ of Soviet proposal "make permanent the freedom to trav­ bollah in Lebanon. Kelly added, how­ Sen. Sam Nunn (D-Ga.), chairman of el, to permit the formation of political ever, that the administration remains the Senate Armed Services Commit­ parties, and to hold free elections." ready to "work to findwhenev er possi­ tee , warnedin an address to the Demo­ The resolution was approved unani­ ble areasin which we can reach under­ cratic Leadership Council on Nov. 13, mously. standings" with Iran.

EIR November 24, 1989 National 69 National News

ists," according to U.S. News and World ows and Qrphans," and plans to have them Report. demonstr,te against the RICO refonn advo­ U.S. and Soviet experts will simulate cates. "We'll lie down in front" of anti­ Soviet military using two hijacking crises, the first of which will RICO Seb . Dennis DeConcini's (D-Ariz.) lasers against U.S. involve a flight from Moscow to New York, office "if we have to," Lerach told the jointly operated by Pan Am and Aeroflot, to Journal. The Soviet military is using lasers against be commandeered by a group demanding The Journal also reported that Wall the U.S. military, the U.S. Anny paper independence for the Soviet Republic of Az­ Street can expect more RICO prosecutions. Stars and Stripes reported Nov. 10. erbaijan. In the second scenario, a Mexican Alan Cohen, the head of the securities and The Department of Defense revealed airliner with Soviet and U.S. passengers commodi�ies fraud unit in the Manhattan that the eyesight of a U.S. Air Force crew­ will be taken over by drug lords demanding U.S. Attorney's office, said, "If it is appro­ man may have been damaged when his HC- freedom for fe llow gang members held in priate to use the RICO statute because of the 130 electronic surveillance aircraft was illu­ U.S. jails. The idea for these joint opera­ widespread institutionalized nature of the minated by a laser firedfrom the Soviet re­ tions apparently stems from the meeting of criminal conduct, it will continue to be search vessel Spassk. in the firstof four inci­ retired KGB and CIA officials, including used." dents since Oct. 17. Ray Cline and Bill Colby, which took place On Oct. 28, a U.S. Navy P-3 Orion was in Californiain October. also illuminated by the Spassk. On Nov. 1, another USAF HC- 130 was illuminated by a laser from the Marshal Nedelin. and a few minutes later, a USAF WC- 130 reported be­ ing illuminated from the Spassk. All four Dixy Lee Ray: Sue, RICO reform gutted, says incidents took place in international waters boycott the ecologists 1,000 to 2,000 miles west and southwest of Wall Street Journal Fonner Washington state Gov. Dixy Lee Hawaii. In January, when Congress convened, "gut­ Ray told delegates to the National Pest Con­ The actions occurred despite an agree­ ting the [RICO-Racketeering Influenced trol AssOCiation's 56th annual convention in ment last summer by U.S. and Soviet mili­ and Corrupt Organization] law looked like Seattle in late October, that the principal tary officials designed to avoid dangerous a sure thing ....No w,just II months later, pest facing them, the environmentalist, military encounters. Privately, Pentagon of­ the RICO refonn juggernaut is running out could be controlled by lobbying, boycotts, ficials are saying that it is dispiriting that of steam," the Wall Street Journal lamented pressure ,on the media, and lawsuits. "Sue such incidents are continuing. One senior Nov. 9. and sue Ij.nd sue and sue, just like the envi­ official stated, "This really shows that these Three factors helped RICO survive, the ronmentalists do," Ray told an appreciative guys are up to something." Journal said. "First, seemingly unconnec­ audience;. The afflicted U.S. crewman suffered ted scandals, mainly in the S&L industry, Ray �aid that because of technology, we disruption of his color vision, headaches, have made Congress uneasy about appear­ live in "the best of times and the worst of and other visual problems and is under med­ ing to go easy on white-collar crime. Sec­ times": best because of technology-driven ical evaluation, Pentagon sources say. The ond, the RICO issue brought out advocates advances, and worst because of attacks on crewman had been wearing "laser eye pro­ with unusually direct financial interests in technology by environmentalists. Ray, a tection" gear, and U.S. officials are invest­ the bill, making lawmakers even more wary marine biologist and fonner chairwoman of igating why the damage occurred despite the of being accused of bailing out special inter­ the Atomic Energy Commission, advised equipment. ests. Finally, RICO revision advocates in­ her audience to organize boycotts of compa­ Two of the four reported incidents oc­ sisted that the narrowing of the civil RICO nies that sponsor anti-technology program­ curred on Nov. after the announcement I, law be made retroactive, a point their oppo­ ming on television. She cited the recent ca­ of the Bush-Gorbachov non-summit. nents seized upon as being too greedy. " pitulation by the Stroh Brewing Co. and The Journal revealed that Ralph Nader nine other sponsors when loggers threatened and his Public Citizen group are two of the a boycott over their sponsorship of an Audu­ most ardent defenders of the police-state bon Society documentary on the old-growth CIA and KGB plan joint law. The Naderites have allied with San timber controversy. Diego attorneyWill iam Lerach, who is rep­ Ray told convention delegates to bring anti-terror exercise resenting bondholder and shareholder plain­ pressureiagainst newspapers and other me­ The CIA and the Soviet KGB are planning tiffs in two civil RICO suits against the scan­ dia when they engage in· one-sided cover­ a joint anti-terrorist practice operation in the dalized Lincoln Savings and Loan, and who age . The modem use of treated wood has spring of 1990 premised on the two agencies thus stands to make a lot of money from saved a forest "two times the size of New collaborating against Azerbaijan "terror- RICO. Lerach refers to his clients as "wid" England," she said, urging them to empha-

70 National EIR November 24, 1989 Briefly

size that herbicides and pesticides "have cover," is the biggest attack yet, according done a great deal of good for society." Ray to Michael J. Costello, special agent in urged her audience to do everything they charge of the Defense Criminal Investiga­ could to combat certainmyt hs, namely, that tive Service's Washington fieldoffice . Cos­ • GEN. RICHARD SECORD "man- made" is bad; that nature is invariat>ly tello was quoted by the Washington Post pleaded guilty to lying to Congress in benign and safe; and that hazardous sub­ Nov . 14 in an article reporting on the guilty a plea bargain arrangementwith Iran­ stances are toxic in any concentration. plea entered by the Boeing Corp., appar­ Contra prosecutor Lawrence Walsh, Ray said a phrase she often hears from ently the first victim of the new operation. whereby other charges will be environmentalists is "elegant frugality," a Boeing pleaded guilty to criminal dropped in exchange for his coopera­ quality they say should characterize our life­ charges of illegally obtaining secret Defense tion against Adm. John Poindexter style. But, she said, "That means elegance Department documents outlining future and others charged with Iran-Contra for a very small group of people and frugali­ budget and spending plans. Assistant U.S. abuses . ty for the rest of us." AttorneyRandy I. Bellows said that the plea bargain involved only two documents be­ • CHARLES KEATING, the key cause of "a very serious proof problem." figure in the Lincoln S&L scandal The proclivity of EasternDistrict of Vir­ and a member of President Nixon's ginia U.S. Attorney Henry Hudson, who pornography commission who actu­ brought the October 1985 "III Wind" indict­ ally opposed pornography, has pub­ Bishops promise renewed ments against the defense community, to licly stated that his troubles with the anti-abortion effort prevaricate, is going to become a major is­ governmentdate to that period. sue in the III Wind investigation, according u.s. Catholic bishops, meeting in Balti­ to Defense Week Nov. 13. Attorneysfor the • CRAIG SPENCE, the homosex­ more in early November took several steps defendants are planning to make an issue ual insider and Iran-Contra figure to invigorate their anti-abortion fight across out of the fact that the Justice Department who had been subpoenaed to testify the United States . failed in a 1987 affidavit to disclose to the before Congress on the Washington The bishops passed a resolution oppos­ federal judge who authorized the wiretaps prostitution scandal, was found dead ing abortion which read in part , "For us in the investigation that its informant had under unexplained circumstances abortion is of overriding concern because it been convicted of sexually assaulting two Nov. 10 in a Boston hotel . negates t,\'o of our most fundamental moral girls, ages 9 and 10. imperatives: respect for innocent life and • 1.3 MILLION ILLEGAL aliens preferential concern of the weak and the de­ have applied to become legal immi­ fe nseless." The document called upon Cath­ grants under the one-time amnesty. olics to commit themselves vigorously to The program was expected to accom­ public education, care for pregnant women, modate only 250,000 when Congress children, and public policy changes includ­ enacted it as part of a sweeping pack­ ing a human life amendment to the Constitu­ Crowe warns: Communist age of changes in immigration law. tion and state laws restricting support for reforms dividing NATO abortion. Admiral William J. Crowe Jr. , the retired • AN ADVISORY PANEL for the The conference voted for John Cardinal chairman of the Joint Chiefs of Staff, U.S. war on drugs named by Presi­ O'Connor, one of the country's most out­ warned a congressional hearing on future dent Bush included among its 27 spoken cardinals on life issues, to head the national security needs on Nov. 9 that Com­ members William McCarthy, presi­ bishops' Pro-Life Committee, which will munist reforms are dividing NATO. dent of the Teamsters Union, former lead the bishops' fight against abortion. He "The picture today is muddier than I've Attorney General William French replaces Joseph Cardinal Bernardin of seen in my 25 years of experience with Smith, retired Adm. William Crowe, Chicago. NATO," Crowe said. He explained that the Dr. Jonas Salk, and Robert Wright, Western alliance is sharply split between president of NBC. cautious response and the desire of some to undertake "headlong reductions" in military • DARPA, the Defense Advanced might. "The countries of Western Europe Research Projects Agency, usually Assault on Pentagon are going to spend less on defense no matter the first Defense agency to sponsor what we do," Admiral Crowe added. "Ulti­ new technology projects, is faced said to be biggest yet mately, NATO will probably remold itself with threats to cut its funding from A new police-state assault on the Depart­ into a looser arrangement, probably with the Bush administration. ment of Defense , entitled "Operation Un- reduced U.S. participation."

EIR November 24, 1989 National 71 Editorial

No more balance ofpower politics

The recent events in Germany have created a unique 18th-century cabinet diplomacy, revived in the 19th historical opportunity to reverse the drifttoward a glob­ century by Metternich and Castlereagh. This is politics al economic collapse, and the kind of political chaos without morality . concomitant with such a collapse. Aside from the dangerous role of Henry Kissinger Already we see the drawing of political lines , as the in shaping U. S. policy, the Bush administration is hin­ British have tended to align with Mikhail Gorbachov dered from playing a positive role in Europe , because in threatening that a reunited Germany will mean the of the cultish Friedmanite free-market ideology domi­ emergence of a mythical Fourth Reich. On the other nating economic policy thinking. side, there appears to be strong institutional support­ The moral alternative upon which a policy for Eu­ across party lines-in France and the Federal Republic rope must be based, a policy for mankind as a whole, of Germany, for the policy of offering massive eco­ is the tradition of Alexander' Hamilton, Henry Carey , nomic aid to the German Democratic Republic and to and Friedrich List, upon which the economy of the Poland in order to effect a transformation of Europe . United States as a republic was based. This is the tradi­ Why , one asks, have the British chosen to separate tion of the founder of modem political economy , Gott­ themselves from the French and Germans? What are fried Leibniz, which is represented today by Lyndon the underlying characteristics of the British mind that H. LaRouche, Jr. would cause them to thus respond to events on the The French and West Germans have proposed a continent of Europe , particularly those involving El}st package for East Germany and Poland so grand that Germany? What could cause that state of mind? Chancellor Kohl calls it a new Marshall Plan . Bolshevism has a long history, and British conser­ LaRouche has called for the immediate realization of an vatives have always professed their abomination ofbol­ integrated infrastructure which would connect Poland, shevism. Yet something else is dominating their hyster­ the two Germanys, and the rest of Europe . ical response to the potential of a reunified Germany. Such a program offers a hope not only for the Ger­ Their response today reminds us of the British penchant man and Polish people, but for all mankind, because for playing balance of power politics, playing one na­ it implies a massive increase in productivity . This is tion, or a section of a nation , against another, to maxim­ particularly so, because of the real potential of the East ize their position regardless of the moral issues which German economy, which is mainly held back by the are involved. necessity to give tribute to the Soviets and by the failure No matter how good mankind might esteem a cer­ to have developed nuclear power. tain development, if that development lessens signifi­ Balance of power politics has brought us two world cantly Britain's ability to maneuver, then that develop­ wars . Were British policy to become dominant today , ment is to be abhorred and frustrated. If it is necessary , balance of power politics would again bring the world in order to enable that balance of power game to be to war. Without doubt by the middle of January or early played, to put man back into the condition of savagery, February, there will be a massive Soviet reaction, but so be it-says this British mentality. the way to avert a serious crisis, is the very road of There are two political poles in Europe today, the economic development being posed today by French-German axis which is committed to an econom­ LaRouche. A Europe which is seeing the beginnings ic development program and support to the sovereign of an economic boom can be made so attractive to rights of the people of the Soviet-occupied East German the Soviets that they will be held back from taking Zone , and the British position. The British line (sup­ adventurous military moves. ported by Henry Kissinger) is a purely oligarchical line: The only truly practical politics is indeed, the poli­ the balance of power in Europe as an expansion of the tics of morality !

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