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__ Signalure ______Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Associate Editor: Susan Welsh Managing Editors: John Sigerson, From theEditor Ronald Kokinda Editorial Board: Melvin Klenetsky, Antony Papert, Gerald Rose, Edward Spannaus, Nancy his week's cover story centerson the French presidential election, Spannaus, Webster Tarpley, Carol White, T Christopher White Vying to succeed the 14-year President Franc;ois Mitterrand are nine Science and Technology: Carol White candidates, among them Prime Minister Edouard Balladur, Mayor of Special Projects: Mark Burdman Book Editor: Katherine Notley Paris Jacques Chirac, and Lionel Jospin, from Mitterrand's Socialist Advertising Director: Marsha Freeman Party. But the media uproar in France and around the world is over Circulation Manager: Stanley Ezrol a "dark horse" who surprised most pundits by clearing the constitu­ INTELLIGENCE DIRECTORS: tional hurdles to attain ballot status-EIR's longtime friend Jacques Agriculture: Marcia Merry Asia and Africa: Linda de Hoyos Cheminade. Counterintelligence: Jeffrey Steinberg, Paul Goldstein The first round of the French Presidential polling will be over on Economics: Christopher White April 23. But Cheminade's campaign is already making history. The European Economics: William Engdahl lbero-America: Robyn Quijano, Dennis Small sheer bulk and brazenness of slanders against him, require EIR to Law: Edward Spannaus present the truth about his candidacy as a matter of public service. Russia and Eastern Europe: Rachel Douglas. Konstantin George Given the pace at which current history is corroborating the United States: Kathleen Klenetsky relevance of EIR's feature packages, you can't afford to miss a single INTERNATIONAL BUREAUS: issue. For instance: Bangkok: Pakdee Tanapura. Sophie Tanapura • Bogota: Jose Restrepo The March 17 cover story, "Prospects for Russian Economic Bonn: George Gregory. Rainer Apel Revival, " a memorandum written by Lyndon LaRouche for presenta­ Buenos Aires: Gerardo Teran Copenhagen: Poul Rasmussen tion to the Russian Parliament, has now been run in substantial Houston: Harley Schlanger excerpts in the Russian press, as this authoritative alternative to the Lima: Sara Madueiio Mexico City: Hugo L6pez Ochoa current policy continues to gain attention. Milan: Leonardo Servadio • The March 31 special report, "Terrorist International at New Delhi: Susan Maitra Paris: Christine Bierre Work-the Chiapas Case, " showed how the one-worldist insurgenc­ Rio de Janeiro: Silvia Palacios ies that seek to destroy national sovereignty must be fought. This Stockholm: Michael Ericson Washington, D.C.: William Jones week's International articles from Peru and Mexico show how the Wiesbaden: G6ran Haglund method EIR spelled out, is working to deal serious setbacks to the

EIR (ISSN 0273-6314) is published weekly (50 issues) oligarchy. except for the second week of July, and the last week of • On April 7, we ran Muriel Mirak-Weissbach's eyewitness December by EIR News Service Inc., 333112 Pennsylvania Ave., S.E., 2nd Floor. Washington, DC reportage, "Is the World Bank Plotting Civil War in Palestine?" As 20003. (202) 544-7010. For subscriptions: (703) 777- 9451. of mid-April those warningsare being fully borne out by the vicious EuropelJll Headqu_rs: Executive intelligence Review Nachrichtenagentur GmbH, Postfach 2308. cycle of terrorist atrocities in Gaza and the Israeli reprisals, further 0.65013 Wiesbaden. Otto von Guericke Ring 3, 0-65205 Wiesbaden, Federal Republic of Germany tightening the economic noose around the territory . Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, Michael Liebig The special report on the "Triple Entente" revival being plotted In Denmark: EIR. Post Box 2613. 2100 Copenhagen 0E, by Britain (March 24 issue) provides indispensable historical back­ Tel. 35-43 60 40 In Mexico: EIR, Francisco DCaz Covarrubias 54 A-3 ground for mastering what is at stake in the French vote; while Colonia San Rafael, Mexico OF. Tel: 705-1295. last week's "The British Are Coming-with a Global Racist Plan" JOfHlII subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, clarified the current strategic objectives of the British oligarchy. Tokyo 160. Tel: (03) 3208-7821. Copyright © 1995 EIR News Service. All rights reserved. Not only can you not afford to miss an EIR-but you probably Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., know others who ought to begin reading it-now. and at an additional mailing offices. Domestic subscriptions: 3 months----$125, 6 months----$225, I year-$396, Single issue-$1O Postmaster: Send all address changes to E1R, P.O. Box 17390, Washington, D.C. 2004\-0390. •

TIillContents

Reviews Departments Economics

56 Venice, not so glorious 18 Report from Rio 4 Ukraine Parliament rejects upon closer inspection Shadow of Mexico looms over IMF privatization program A review of an exhibit at Brazil. Shortly before the vote,Schiller Washington's National Gallery of Institlilte representatives visited Art, and its catalogue, The Glory of 19 Report from Bonn Kiev,and exposed the fraud of the Venice: Art in the Eighteenth Re-entering the nuclear power era. Intemational Monetary Fund's Century, edited by Jane Martineau "neo-liberal" economic policies. and Andrew Robison. 64 Editorial The hand behind terrorism. 6 Earth Day quacks push environmental 'global Photo and graphic credits: Cover, ethie' pages 23,31,38, Christopher Report on a conference celebrating Lewis/EIRNS. Pages 9,26, Correction: In last week's profile the 25th anniversary of Earth Day. EIRNS. Page 11,Unicef/Claudio of Argentine leftist geopolitician Edinger. Pages 14-15 (Schmidt, Norberto Ceresole (p. 33), an 9 Do cow farts really cause Gonzalez,Juppe, Greenspan, editorial error ascribed to Ceresole global warming? Fujimori,Bergsten), page 30 the use of the term "National An inConvenient guest at the Berlin (Chirac, Jospin) EIRNS/Stuart Army." In fact, it is Col. Mohamed U.N. climate conference. Lewis. Page 24,French Embassy, Ali Seineldin and the nationalists Washington, D.C. Page 30 who use the phrase. (Balladur),Bundesbildstelle Bonn! 10 Traetors roar against 'real' Schambeck. Page 44, Archives plan Unesco. Pages 57-59, Courtesy of Monetarist stupidity turns Brazil's National Gallery of Art, biggest bumper crop in history into Washington, D.C. a nightmare for farmers.

12 Currency Rates

13 Bra,d X proposals for financial reform: What is to be done? A record of recent warnings, proposals, and cover-up attempts, presebted by Marcia Merry Baker to a conference of the Schiller Instit\lte in Washington.

20 Business Briefs iI

Volume 22, Number17, April21, 1995

Feature International National

38 Peruvian voters choose 50 Clinton draws new battle Fujimori over U.N. stooge lines again,t Gingrich gang Incumbent Alberto Fujimori's A series of explicit veto threats smashing defeat of ex-U.N. chief from the President confronts the Perez de Cuellar is one the best Gramm-Gingrich wrecking lessons in democracy that the operations. Peruvians have dealt to the arrogant one-worldist oligarchy. 52 Brits lash out at Clinton for ending 'special Jacques Cheminade (right) campaigns in a farm dis­ 41 A spanner in the spokes of relationship' trict of France. He is the only presidential candidate with a program for saving agriculture. the EZLN's urban machine The Zedillo government,in a good 53 The drumbeat for Lyndon move, breaks up a semi-public bus 22 Jacques Cheminade LaRouche's exoneration company and union in Mexico City, campaigns for French thunders worldwide well known as a hotbed of Zapatista nationhood cohorts. , The "surprise candidate" has 55 Christian Coalition, ADL thrown the Paris nomenklatura off 43 Obituary: The Taoist hell kiss and m�ke up guard. Christine Bierre analyzes the of Joseph Needham, 1900- strategic and historical importance 60 Congressi�nal Closeup of the French presidential elections. 1995 By Michael Billington. 62 National News 25 Louis Xl's founding of the French nation 46 British scandal could signal end of Thatcher politics 26 Helga Zepp-LaRouche forever endorses Cheminade The case of Jonathan Aitken, Major's chief secretary of the 27 Probe of slanders of Treasury. Cheminade leads to 48 International Intelligence international 'Murder, Inc.'

30 Profiles: the other eight candidates Edouard Balladur, Jacques Chirac, Lionel Jospin, Philippe de Villiers, Arlette Laguiller, Jean-Marie Le Pen, Robert Hue,and Dominique Voynet.

32 'We must change the rules of the game' Excerpts of Cheminade's program.

34 'Let's put space back on the horizon'

36 The press reports on Cheminade's policies •

�ITmEconoIDics ...

UkraineParliament rejects IMFprivatization program by Anthony K. Wikrent

On April 12, the Parliament of Ukraine rejected the privatiza­ in fact not a single case in recorded history of successful tion program mandated by the International MonetaryFund , economic development premi�ed on IMP and neo-liberal a central element of the "refonn" package demanded by the economic policies." Moreover,! he said, "every known case IMF, after weighing the arguments of minions of the interna­ in modem history of actually successful economic develop­ tional financial oligarchy on the one hand, and representa­ ment has occurred as a result of the more or less conscious tives of the Schiller Institute on the other. application of neither Adam S1mith liberalism nor of Karl Over the weekend of April 8-9, Schiller Institute repre­ Marxism, but of a third school �f economic thought-that of sentatives Dennis Small and Karl-Michael Yitt spoke at a cameralism or mercantilism. Oameralism springs from the three-day conference sponsored by the U.S. State Depart­ philosophy and economic science of GottfriedWilhelm Leib­ ment's Agency for International Development and the Uni­ niz, and is responsible for the successful 18th- and 19th­ versity of Indiana, attended by 50 to 60 Ukrainian parliamen­ century U. S. industrial capitalism, of the Meiji Restoration tarians. Though it had been arranged beforehand that Small of Japan, and the postwar Gertnan economic miracle. The (the director of lbero-American intelligence for EIR) and Yitt modem exponent of this schooE is the founder of EIR maga­ would speak, the conference coordinator, a fonnerlegislative zine, U.S. economist and fonrier political prisoner Lyndon liaison of the U.S. Department of Justice during the Bush LaRouche," whom the Bush a�nistration railroaded into administration, resorted to a series of tactics in an attempt to prison. preventthe presentation. On Saturday afternoon,when Small Small then provided a sane definition of economic suc­ made it to the rostrum, the Americans walked out. cess: "a society's increasing ability to producemarket baskets of necessary consumer and producer goods, for a growing The secret to success population, and to do so with �ogressively smaller propor­ A great pity, for stubbornlystupid Americans are in dire tions of society'S total labor. This can only be achieved by need of learning the simple facts of economics, and Small continuous scientificand technological advance, by substan­ provided an ample supply of them. Small began by referring tial investments in great infrastructure projects, and by or­ to the presentations of the speakers preceding him. "There ganizing national credit and monetary policies to facilitate are those who maintain that the neo-liberal economic policies such real, tangible physical economic growth." of the International Monetary Fund are just what the doctor ordered for the economy of Ukraine and other nations emerg­ Mexico committed suicide ing from under the yoke of communism. There are those Small showed how Mexico badcommitted economic sui­ who will argue that the so-called 'success stories' of Ibero­ cide by slavishly implementing InternationalMonetary Fund America prove that the policies of the IMF in fact work. policies, beginning in 1981. While imports were drastically There are even some who are trying to sell the smelly corpse curtailed-cutting off supplies of vitally needed capital of the 'Mexican economic miracle' to the credulous." goods, such as machine tools, from advanced countries­ But, Small told the assembled parliamentarians, "there is anything that did not move arit was not nailed down was i

4 Economics EIR April 21, 1995 I exported. This approach was mandated by the IMF in order Parliament building, attended by some 40 people, including to service the foreign debt, and reverse the trade deficit. But many parliamentarians. Following the presentation, 20 par­ what actually happened, Small explained, was that Mexico's liamentarians signed the open letter to President William officialfo reign debt soared from a few billion dollars in 1980, Clinton demanding the exoneration of LaRouche (see article, to an expected $265 billion by the end of this year. At the p. 53). Just hours later, the Ukrainian Parliament voted to same time, real economic activity was destroyed. Bean pro­ reject the IMF's privatization program. Some parliamentari­ duction in Mexico has dropped 37% per capita; milk, 22%; ans credited the presentations by the Schiller Institute as the steel, 27%. Overall consumer goods dropped 20%, while critical element in mobilizing sufficient forces to reject the production of producer goods fell 27%. program. The Mexican disaster has been repeated everywhere in The privatization program was a central demand of the Ibero-America that the IMF's policies have been applied, International Monetary Fund for approving a $1.8 billion Small warned. "Ibero-America's total foreign debt in 1980 loan for Ukraineextended the week before. The very morn­ was $257 billion. Over the course of the next 14 years, they ing before the anti-privatization vote, Ukraine Economics paid $4 17 billion in interest payments alone .. ..And yet at Minister Roman Shpek, in London fo� a meeting ofthe Euro­ the end of that period, they owed more than at the beginning: pean Bank for Reconstruction and Development, assured $547 billion. In other words, as you can see as clear as day, Reuters, an international news service that functions as a

$257 minus $417 = $547. That's what is called 'bankers' mouthpiece for British intelligence, that "privatization is piv­ arithmetic. ' otal to Ukraine's program of economic reform, and intrinsic "The irony," Small noted, "is that the IMF and its apolo­ to the government's economic program." Shpek pointed to gists frequently argue their case on the grounds that if you the $1.8 billion IMF loan as proofthat the issues of privatiza­ liberalize, money will come pouring in to your country. Open tion and economic reform "had been discussed and re­ your economy, they say, so we can ship in capital. But the solved." door that is opened is the door through which capital leaves Thus, the legislative defeat of the privatization program the country, not arrives. There is in every case net capital stunned major Anglo-American financial media into silence. exports.. .. Reuters, the London Financial Times, and the New York "In conclusion," Small said, "let me shock you with the Times had not reported the fact as of April 13. Only three fact that Ibero-American foreign debt is actually the slowest sentences appeared in the April 12 Wall Street Journal. growing of any region of the world: It has been increasing at about 5.5% per year compared to a world average of 8%. The IMF's handiwork The countries of Europeand Central Asia have a foreign debt Ukraine's rejection of IMF privatization is no surprise to which is among the fastest growing in the world, at 10.7% EIR's readers, however. Last week's issue contained the per year. This part of the world is also seeing bankers' arith­ remarks of Natalia Vitrenko, doctor ofeconomic science and metic in action. The total debt of Europe and Central Asia chairman of a subcommittee of the Ukrainian Parliament's was $97 billion in 1980; over the next 14 years, $192 billion Commission on Economic Policy, at a conference of the in interest was paid, and at the end of this period $403 billion Schiller Institutein Washington, D.C. on March 29. Vitren­ was owed. At this rate, and with InternationalMonetary Fund ko discussed how, at first, she and many other Ukrainian policies, this region is rapidly being transformed into Third scientists had supported the IMF policies they were advised World nations by theIMF . to adopt. "But now, after four years of these reforms ," Vi­ "The solution to this crisis lies in the opposite direction trenko said, "we can see what a tragedy they have brought from neo-liberal reforms. Sovereign nations must take mea­ for Ukraine. sures to protect their physical economies, and ally among "We have a four- and fivefold decline in production in themselves to have the political muscle to do this. And such the fundamental categories of goods. . . . The standard of nations must also act immediately to bring about a new world living has declined 15 or 20 times over. Ninety-two percent monetary system to replace the IMF, a system premised on of the population of Ukraine lives below the poverty line, the principles of mercantilist physical economy." while the parasitical part of society has in its hands 60% of Reportedly, during the entire three-day conference, there the national income .. ..Out of 23 million in the workforce, were only two times that the audience applauded: when Small 7 million are unemployed .. ..In fouryears , the average life spoke, and when Karl-Michael Vitt, the other representative expectancy has fallen by six years .... of the Schiller Institute, spoke. "This all can be attributed," Vitrenko concluded, "to the recommendations of the International Monetary Fund; since The critical role of the Schiller Institute it is they who proposed to us, as the means of reform, to Three days later, on April 11, Small and Vitt gave an hour decontrol prices, to liberalize currenqy exchange, to deregu­ presentation on the IMF, the world financial and monetary late foreign economic activity, and to have forced-march crises, and LaRouche's proposed solutions, in a room in the privatization. "

EIR April 21, 1995 Economics 5 Conference Report

Earth Day quacks push environmental 'global ethic' by Marsha Freeman

"We are all pursuing self-destructivepolici es," and to change other large industrial pollutors iq.to meeting new environmen­ these will require changing people's "ethics," declared for­ tal standards in the first phase. he explained. But now, he mer U.S. senator and Earth Day founder Gaylord Nelson, said, we are going to have to t$e on the average American in a speech on April 5. Nelson, who bragged that he had who drives a car, likes to barbeque, and uses air conditioning introduced the legislation in the early 1970s that led to the in his automobile and home. banning of the pesticide DDT, was the keynote speaker at Babbitt scored the RepubliCIaD advocates of the Contract a conference on "Understanding Earth: Retrospectives and with America, whom he said Ilfe running a "sneak attack Vision," held in celebration of the 25th anniversary of the rather than frontal assault" agaiQst environmental legislation, pagan Earth Day "holiday." The conference, sponsored by by proposing regulatory reform that would "effectively re­ the Environmental Research Institute .of Michigan and held peal these laws." The sponsof$ of this new environmental at the National Press Club in Washington, D.C., was domi­ assault "don't want to confront tlte American peopledirectly" nated by top-level international greenghoul s, many claiming with their agenda. This is a "sm'll crowd of ideologues" who how yet another aspect of man's activities was creating an recast their anti-environmental i\ssues withan anti-regulatory impending catastrope. The message was that the firstprinci­ face, Babbitt said. This, after laving stated that the "small ple of society must be protecting the Earth-not social prog­ crowd" of environmental ideologues was not going to beable ress, economic development, or even "sustainable devel­ to get support for their agenda! from the American people, opment." either. As EIR has documented (see issues of Oct. 28, 1994 and Jan. 13, 1995), the top-down controllers of the international Target: China environmentalist movement are the British oligarchy, and China, the largest nation in the world, in a region that most notably Prince Philip, the founder of the World Wide the British are committed to de�tabilize politically and eco­ Fund for Nature. nomically, was used by conference speakers as the leading At the Washington conference, Nelson called for a mas­ example of how continued gr.,wth would overwhelm the sive education program to indoctrinate young children with world's resources, and threaten life as we know it, even in his environmental "ethic," so they would police themselves the United States. The preside�t of the WorldWatch Insti­ and their parents, since "we can't have a policeman at every tute, Lester Brown, said that his State of the World report door." Without this ethic of protecting the Earth from man, for 1995 shows that we are "mnning into more and more no furtherprogress will be made through more environmental of Earth's natural limits." The$e include the decline in the laws, Nelson warned. catch from fisheries, drops in water tables and underground U . S. Interior Secretary Bruce Babbitt gave his support to aquifers worldwide, and a decli�e in the application of fertil­ such demands for self-policing. We have "passed through izers because the productivit)l gains from their use has the exhortative phase and are now in the implementation reached a limit. I phase [of enforcing environmental policies] that effects the Brown, who established WorldWatch in 1974 with daily lives of people ....We 've scored the easy victories support from the Rockefeller Brothers Fund, is the recipient that didn't require large-scale engagement" on the part of the of the 1990 World Wide Fund for Nature Gold Medal, the population, but now, environmental policy "will affect every 1989 United Nations Environm�nt Prize, and other memen­ citizen. The problem is in all of our lifestyles." It was rela­ tos of appreciation for his idea" including the one that the tively easy to bully companies, power plant owners, and Earth has a natural "carrying ¢apacity" which supposedly

6 Economics EIR April 21,1995 theory. Furthermore, the ice core record, if anything, shows that temperature increased fir t followed later by Hoaxes refuted: There in CO2, most likely as result of increased no �:g:t�::�� 1 is globalw arming Dr. Baliunas pointed out that the climate models can­ not even account for the basic effect of water.vaporand 0:t ¥,. ". The Washington, D.C. -based George C . Marshalilnsti­ clouds. She noted the factthat over90% ofthe greenho'Use tute on April 3 released a study, "The Global Warming effecti s determined by atmospheric vapor, not cal:" J., ater ' Experiment," demonstrating that world temperature mea,,! bon dioxide or other "greenhouse gasesl produced by, surementss how that computer modelpredictions o f globaf' man. She said that if the actual role qf water vapor is not wanning are just full ofhot air. even understoOd yet, how could anybody m�e a model "�:f\ "The overwhelming evidence is that the computer of the atmosphereto predict futurecl F.ate? modelsar e not able to predict changes in global tempera­ Dr. Baliunas agreed with the evioence that tempera­ tures based on carbon diOXIde levels," said Dr. Sallie tures h.ad increased half a degree in the past century: but Baliunas, the Harvard astrophysicist who authored the said that most ofthe increaSehappened before WorW War, report. II, and. was well within the range of natural temperature Dr. Baliunaspresented a chartof temperature records, variability. . fromthe Arctic, wherecom puter models predict the mostl She concluded that there was insyfficientevidence to'.J warming to occur. The satellite data show that tempera­ warrantan yaction totry to l imit greenhousegas emissions tures have gone down more than O.5°C, and ground mea;'? by the U.N. Climate Conference .int Berlin, adding that':!:; surements show that they have gone down rpoIe than theconsequences of such policies to the world economy, 2°C-exactly the opposite of what the models predicted. particularlydeveloping countries, w3uld be devastating. p.. chart once core records presented by Baliunas . . The Marshall Institute was founded in 1984 by several showed that between 135,000 and 115,000 years ago, scientists who wanted to fight enviropmentalirrationality ; temperatures declined sharply , but the carbon dioxide" with scientific evidence. The foundlTS include Dr.tFred concentration remained constant. Her conclusion is that Seitz, formerheaQof tbe National Academy of Sciences, there is no correlation between CO2 and temperature, and Dr; Robert Jastrow from the Goddard Institute for which is the fundamental tenet of the global warming Space Studies.-RogelioM aduro l

places limits on the growth of the human population (ac­ Brown said that feeding a country that counts its people tually, this idea was concocted, not by Lester Brown, but in billions rather than millions is virtually inconceivable. by the Venetian hoaxster Giammaria Ortes, in the 18th For example: the Chinese government has promulgated the century). goal of annual per capita egg consumption rising from an Speaking as if there were no financial and political poli­ average of 100 in 1990 to 200 at the tum of the century­ cies that have created these "natural" limits, Brown stated an enormous task. He recited a litany of statistics on how that there has been a "loss of momentum in the growth of many hens that would mean (1.3 billion), how much grain food production," because since 1984, grain production has those chickens would consume (24 million tons), and con­ been growing worldwide at 1 % per annum, but population is cluded that we may "find ourselves competing with the growing at 2% per annum. As an example, Brown zeroed in Chinese for our own grain." And, yes, they "can afford to on China. import all of our grain." This year's trade surplus with the China "may become a massive food importer" by the tum United States would allow China to import all of our grain of the century, Brown warned. This, because its 1.2 billion for export, two times over. people are "moving up the food chain" (perhaps he thinks In response to a question by a Chinese-American atten­ they are animals on a World Wide Fund for Nature preserve). dee, as to whether this means that China will have only two The problem, claims Brown, is not that China cannot produce choices in the future--deliberate mass starvation of its own enough grain to feed its growing population and prevent people, which has happened in the past, or going to war­ famine; the problem is that economic growth in China is Brown said China could mitigate the situation through in­ increasing the rate of consumption and demand for meat and creases in efficiency in water use, smaller families, and using other animal products, and this could "overwhelm world bicycles and trains rather than reducing agricultural land to supplies." build roads.

EIR April 21, 1995 Economics 7 In an article for the September/October 1994 issue of dence has grown in the last few years in modelling climate. " WorldWatch magazine, titled "Who Will Feed China?" (See box.) Brown dismissed the use of alternatives such as fishprotein Watson said that we must stq,p the use of energy sources to improve the diet of the Chinese, pointing to the "biological and other industrial technologies that release so-called green­ limits" of the world's major fisheries, as if the number of house gases, for the sake of the Third World, because "most free-roamingbuffalo in America limited the number of peo­ changes will be in the tropical regions" and these countries ple able to live here for all time. For Lester Brown, there are "are least able to cope with them." no scientific breakthroughs that will prevent a malthusian Watson tried to assure the. audience that this did not war of each against all. (For a fuller analysis of Brown's mean that there should not be economic "development" in article, see EIR, Nov. 25, 1994, "Malthusians Threaten Chi­ the Third World-energy efficiency and renew abies such na with the Food Weapon.") as solar and bio-fuels, and maybe hydrogen, "go hand-in­ hand with economic growth," h� said. These post-industrial More hoaxes and scare stories schemes are the best option, for:the advanced sector as well Under the rubricof "retrospectives of key global environ­ as the developing countries, hedaimed. mental issues," looking back to the firstEarth Day, 25 years ago, "scientists" promoting the best-known environmental Even 'sustainable development' is rejected scare stories made their appearance. Thomas Lovejoy, counselor to the Secretaryfor Biodiv­ Dr. Susan Solomon, senior scientist at the Aeronomy ersity and Environmental Affair$ of the Smithsonian Institu­ Laboratory of the National Oceanic and Atmospheric Ad­ tion, who coined the term "biodiversity," warnedthat people ministration, presented charts and graphs to make her case call all sorts of projects "sustainable development," but that it is necessary to "heal the ozone layer." Banking on many of these projects would wipe out entire species. He the ignorance of the audience, Solomon made absolute state­ said that a new organizing principle must be applied, that ments that she would not have been able to defend, had sustainable ecosystem manageriIent equals sustainable de­ there been time for questions. For example, she stated that velopment. Otherwise, sustain*ble development will lead "the ozone hole opened in 1975," even though the seasonal to a loss of biodiversity. The e¢osystem comes first. thinning of the ozone layer had been observed by atmospher­ Lovejoy was echoed by Eliz�beth Dowdeswell, secretary ic scientists in the 1950s. "Volcanoes do not inject chlorine general and executive director of U.N. Environment Pro­ into the stratosphere to any significant degree," Solomon grams. Speaking by teleconference from Berlin, where the said with absolute assurance, while this has been disputed Framework Convention on Climate Change was taking by volcanologists around the world. place, Dowdeswell said that sustainable development "needs While the banning of aerosol cans in the United States a reality check" to make sure it r¢ally does makethe environ­ has supposedly helped, and, according to Solomon, we are ment better. It is "not going to be technology that fixes" "now seeing a slowing down, and this year the stop in the things, she said. You have to "look at the values people growth rate of chlorine in the atmosphere," she warned that hold dear" and encourage "ethical and caring behavior for the substitutes for the outlawed chlorofluorocarbons are "too human needs." similar to CFCs," so the problem has not been solved. After the 1992 U.N. Conference on Environment and Dr. Robert Watson, Associate Director for Environment Development (UNCED) in Rio de Janeiro, we "lulled our­ of the White House Office of Science and Technology Poli­ selves into a false sense of security," Dowdeswell said. We cy, and formerly top climate-hoax spokesman at NASA, must "find ways of extending the constituencies" for these spoke on climate change, by which he means global warm­ programs, including in the developing countries. ing. Watson complained that the climate conventions that The fact that there is resistance to the world dictatorship nations have agreed to have "no teeth" and are non-binding. of a green "ethic" was reflected in remarks by Maurice "Interpreting the mandates is as much political as scientific," Strong, who was the secretary general of the 1992 UNCED he said. meeting. He described the process since Rio as a "mix of We should learn the lessons of the ozone hole, Watson disappointments and progress." This, because in many cas­ said. We waited to discover the cause and effect relation es, "governments are preoccupied with other pressures and between chlorine and ozone depletion before taking correc­ haven't moved ahead." For example, at the meeting in Ber­ tive action, and now it will take 40 years to regain the ozone lin, he said, we see a "recession lof political will and budget­ layer. "If you do that for climate, it will take centuries" to ary austerity." fix it, because "these pollutants have such long lifetimes" Most developing nations seem little concerned about in the atmosphere. It is "crucial to have action now." conserving energy, a number of speakers observed. That is Although he admitted that the half-degree increase mea­ not exactly surprising, since they are facing a world financial sured in average global temperature over the past century blowout, with the real-life consequences of a collapsed is within the range of natural variation, he lied that "confi- world economy.

8 Economics EIR April 21, 1995 lengths the "free" press goes to, to cover up reality. The German Press Agency ran a retouched photo of the "environ­ mental steer," in which he had been delicately turnedinto an "environmental cow." But it didn't end with a sex change: The caption accompanying the photo neatly turnedthe intent of the demonstration into its opposite. Do cow farts really The daily Westdeutsche Allgemeine Zeitung misreported: "Environmentalists demonstrated in front of the Berlin Con­ arm gress Center where the Climate Conference is taking place. cause globalw ing? They want the "environmental cow finallyto be pulled from by Our Berlin Correspondent the ice" (die Kuh vom Eis bringen is a German expression meaning to finally get something started). In order to main­ The United Nations Climate Convention opened on March tain the deception, the text of the steer's signboards was air­ 28 in Berlin, in a snowstorm of near-blizzard proportions, to brushed in the accompanying photo, to make it illegible. discuss the alleged threat of "global warming." As partici­ The Schiller Institute responded by distributing a press pants arrived from around the world, they were greeted by release entitled "German Media Lie Like a Rug, and Touch demonstrators from the Schiller Institute , and the inflatable Up Photos, Too !" "Environmental campaigns are intended yellow steer whose picture you see below. The steer was to terrorize people into accepting financial deprivation and equipped with a sign that read, "Do you really think my economic retrogression," the release declared. "Through farts are causing global warming? That's bullsh-t!" The such measures, the speculation-riddled financial system demonstrators distributed an open letter from U.S. environ­ hopes to repair the holes through which the 'hot air' of deriva­ mental scientist Dr. Hugh Elsaesser, in which he outlined the tives and other fictitious values is escaping." scientific untenability of the global warming theory. For a report on the agenda ofthe Berlin meeting, see EIR . News media reports of the demonstration showed what March 10, p. 9.

Schiller Institute activists andfriend demonstrate at the U.N. Climate Conference in Berlin.

EIR April 21, 1995 Economics 9 If this situation does not change, the losses of farmers Brazil will be huge. For example, it is estimated that maize produc­ ers will lose more than $1 billion in the sale of their produc­ tion. Rice growers will be hit by losses of $200 million. The situation will tend to worsen because of the latest Tractors roar rises in interest rates which the �overnment imposed to tryto stop the massive capital flight out of Brazil. The raising of against 'real'plan the real interest rate from 3.22% to 4.25% will have direct effects on the Reference Rate (RR) which is the indexer of all farm credits. For example, a� average RR of 4% a month by Lorenzo Carrasco represents an annual cost of 60%, which, added to an annual interest rate of 11%, represents an annual financial burden The biggest grain crop in Brazilian history-more than 80 on agriculture of more than 80%. million tons-which should be a reason for enthusiasm and In the face of this situation, the president of the National celebrations among Brazilian farmers, incredible as it may Agricultural Confederation, Antonio ErnestoDe Salvo, stat­ seem, is turning intoa nightmare threatening to bankrupt hun­ ed ironically, "The entities of ithe sector are not going to dreds of thousands of farming units throughout the country induce the producers to not pay itheir bank debts or to create and put 500,000 people out of work, because the prices at problems of food supply for the country. With a 50% financ­ which the grain is sold on the national markets are lower than ing cost paid by the producer, insolvency in rural credit will the minimum cost needed to uphold minimum farm profits. not be induced-it will occur as' a matter of course." The origin of this absurdity is the stupid, incompetent Researcher FernandoHomem de Melo, fromthe Founda­ policy of monetary stabilization imposed in the country since tion Institute for Economic Investigations of the University July 1, 1994, when the present currency, the "real," was set of Sao Paulo, and one of the tnklst important authorities on up. In their zeal for artificially holding down inflation, the agricultural questions in the country, calculates that the loss government based its Real Plan on two anchors which are of profit in the farm sector as a whole will be at least $4 sinking national production: first, artificially valuing the real billion, which will in tum have alhuge effecton the consump­ against the dollar; and second, keeping the price of basic tion of manufactured goods, wbiich will redound into an im­ grains for human consumption equally artificiallydepressed, mediate industrial recession. through reducing the tariffs on imports of these same grains, The problem will get more $nd more drastic as the crop as well as by limiting money for purchasing the crop, by begins to be harvested. According to farm leaders, barely 17% means of credit-tightening measures and an increase in the of production, equivalent to 13.� million tons, is covered by banks' reserve requirements. For example, the government minimum price supports, which have already been frozen freed up 7.5% less money for the 1994-95 harvest than last since last July. But most farmens, those who have the other year, when the crop was 7 million tons smaller. 83% of the remaining crop, will �ave to submit to the tortures If this governmentstupidity were not already enough, the of marketing their grain in a cliqtate of abundant production farming picture worsened as a result of the very high interest but scarcity of consumers, whic� is an aberration in a country rates for farm credits, indexed to the Reference Rate-which which has 40 million of its inhabttants on the brink of famine. from July 1994 to January 1995 increased by 22.45%-plus 11 % interest, which caused, from July 1994-February 1995, an increase in farmer debt of more than 40%, while the TABLE 1 I variation in the market price was falling for some products Farm prices fall below m imum for survival as much as 20% (see Table 1). Percent rcent Market Losses set to rise Increase In rop ln price, agricultural arket March Minimum For example, maize producers, who are the most affect­ Product debt* �rlce. 1995" price" ed, saw their debts go up by 44.9%, while their prices col­ Irrigated rice 41.89 :-2.89 8·50t 8.85t lapsed by 21.43%. Thus, the price they were being paid at Beans 48.89 -+12.24 43.00 22.50 the end of March for a 60-kilo sack was an average of 4.70 I Maize 44.19 -+21.43 4.70 6.32 reals, and the minimum price was 6.32 reals. The situation Soybeans 44.19 -+19.69 8.80 7.73 for the soy producers is similar, and rice growers are hardly Wheat (ton) 135.00 144.61 better off. The results of this situation will be felt with its full weight in the next growing season, which will suffer a rise in * From July 1994 to February 1995 ** Reals per 60 kg costs of approximately 35% owing, above all, to the increase t Reals per 50 kg . in nitrogen fertilizers from $210 to $280 per ton. Source: National Confederation of AgricultJre

10 Economics EIR April 21, 1995 A marketplace in Sao Paulo, Brazil. Thanks to the government'sfoolish policies, fa rmers are being driven into bankruptcy because their products are sold on the domestic markets at below the cost of production.

These are the fanners who went into debt outside the system example, imports were at 5.3 million tons, when just 10 years of product-equivalence and have their debt corrected by the back only 2 million tons were imported. In 1984-85, Brazil RR plus interest, up to a rate of 11% a month. cultivated 2.6 million hectares and brought in a crop of 4.324 "Maybe we will have to defend ourselves in the courts," million tons. In 1993-94, the cultivated area had been re­ threatened the president of the Brazilian Rural Society , Ro­ duced to 1.4 million hectares, and production to 2.126 mil­ berto Rodrigues, in an editorial in the society's newsletter on lion tons. Worse yet, Brazil is importinghea vily subsidized April 2. "In the end, there exists a vast apparatus which wheat from the European Union, below the costs of produc­ protects us from those who do not obey the law. Article 187 tion, saturating Brazil's capacity for grain storage. of the Brazilian Constitution, for example, says expressly As the farm leaders put it in a document delivered to that agricultural policy shall be planned and executed taking President Fernanqo Henrique Cardoso on Feb. 13, 1995 in especially into account, 'prices compatible with the costs of Campo Mourao, Parana: "With respect to the exchange rates, production and guaranteed markets .' " the authorities insist on affirmingthat exportshave fat to bum and can tolerate the discrepancy; this is not the case for Opening to famine the commodities which are suffering the influence of the The nightmare of Brazil's fanners does not end here, subsidies war waged by the United States and the European because the government, besides sinking them with the "an­ Union. What is true, is that Brazil has turned into a net chors" of its monetarist policy, is promoting a flood of im­ importer of cotton, barley, maize, rice, and wheat, precisely ported grain which is either subsidized or comes from more because of the exchange rate discrepancy and the favorable productive economies. This was facilitated by the coming on conditions of financingand interest offered by the grain and line of the so-called Mercosur, which freed up imports from cereals exporters, who are applauding the attitude of Brazil Argentina, promoting a criminal competition against the do­ and even get to the point of fighting forspa ce, as is happening mestic producers of wheat, soybean, maize, dairy products, with Canada and the United States, quarreling over the Bra­ temperate-climate fruits, and cotton. For example, the cost zilian wheat market. Only one year ago, Brazil spent $1.6 of Argentine wheat is $50- 100 per ton, whereas the Brazilian billion buying grains and cereals, on account of which the fannerproduces it at $120-200 a ton. As for maize, Argentina Treasury spends money for storage and freight of the domes­ produces it at $50-90 per ton, while in Brazil it costs $75- tic products. And 400,000 Brazilian jobs are lost." 115 a ton to produce. This distortion is derived in part from the exchange policy which artificially devalued the dollar Protests start with respect to the real . This public calamity, caused by the so-called monetary The case of wheat is even more drastic. In 1994, for stability plan, has already given rise to a wave of protests

EIR April 21, 1995 Economics 11 throughout Brazil. In mid-March, marches and tractorcades began in the states of Rio Grande do SuI, Parana, Santa CurrencyRates Catarina, and Mato Grosso do SuI. I

In Parana, the demonstrations involved the entire state. I In the city of Pato Branco, 8,000farmers occupied the streets, The dollar in deutschem�ks burningeffigies of President Cardoso and his agriculture min­ New York late afternoon&xing ! ister, Jose Eduardo Andrade Vieira, the boss of the Bamerin­ i dus bank, which is one of the country's biggest. In Guarapua­ 1.70 i va, in the same state, the protests engaged 5,000 farmers, UO i 200 tractors, and 200 trucks. i In Santa Catarina, the biggest march took place in the 1.50 city of Xanxere, bringing together 6,000 farmers from 70 : i cities of the region. The local mayoralty allowed all its civil 1.40 .- � servants to participate in the demonstration, which was also "-'\I -- - supported by Gov. Paulo Alfonso and all of their federal 1.30 ! representatives, including threesenators and 16 deputies. 311 3115 3IZ1 415 4112 The anti-governmentrage was explained by the president The dollar in yen of the Brazilian Rural Society, Roberto Rodrigues: "The gov­ New York late afternoonIIxiDg 1 ernment does not allocate resources to guarantee the policy i of minimum prices and is also not indicating the warehouses 126 to receive the crops. With this, the product-equivalence [a I mechanism by which the farmers have their loans converted 110 into values equivalent to a certain amount of the planted crop I and pay their debts in money reckoned by this same amount] 1100 promised by the government remains in a vacuum, because i QO . the farmers have no place to take their products and hence to "'" - '-- receive the authorized appraisal and to exchange it for the l1li debts assumed with the Banco do Brasil." 311 3115 3IZ1 3/1.9 415 4112 Beyond this, Rodrigues said, "What makes. this picture worse is the policy of reducing import quotas, which leaves The British pound in doUars the farmers in the lurch, having to-compete with other coun­ New York late afternoonaxing tries' subsidized farmers. It is ironic that the warehouses which the government did not authorize to receive domestic 1.80 farm production are brimming with the violent importation 1.70 of foodstuffs. If there is no change in the government's farm policy, the serious consequences will make themselves felt , 1.60 .�loot. -- in the next harvest. " - V � The president of the National Agricultural Confedera­ I.SO tion, Antonio De Salvo, also repudiates the government's policies. "The government is not complying with all of its 1.40 promises to agriculture. They are not allocating the necessary 311 3115 i 3IZ1 3/1.9 415 4112 resources to acquire the crops to guarantee minimum prices. The dollar in Swiss francs The loss of confidence is disastrous, because it is holding New York late afternoonfixing back producers from investing .. ..What is happening with this, together with the indexation of credit, is that the debts I.SO are rising crazily and prices are collapsing, making it impos­ sible to replace the costs of the harvest. This is a policy which 1.40 , is going to destabilize agriculture, provoking an increased rural exodus, joblessness, and bloating the major cities." 1.30 Even though the Brazilian press has ignored the explosive , pOtential in the Brazilian countryside,the continuation of the 1.20 r-...� present monetary policy could in a very short period of time � -- ...... 1.10 "- If\. touch off a reaction which will rock the political and institu­ tional stability of Brazil. 2122 311 3111 3/15 .3122 3129 41S 4112

12 Economics EIR April 21, 1995 BrandX proposals for financial reform: What is to be done? by Marcia MerryBaker

The fo llowing is an adaptation of a review by Marcia Merry U.S. media-Orange County, BaringsBank, Mexico, Credit Baker of recent proposals fo r dealing with the disintegration Lyonnais, and others. of the international financial system, presented at a March But even before these recent blowouts, there werea few 29 Washington, D.C. conference, "Economic Development warnings. On June 22, 1994, Roland Leuschel, of Bank in a Period of the Collapse of the Financial System," spon­ Bruxelles-Lambert, said in the Paris daily Le Monde, "The sored bythe Schiller Institute. countdown to the crash has begun.. ..We are todaypaying the price for the creation, during the last two years, notably Who says they know what to do about the financial and in the United States, of the most significant financial bubble economic crisis? If you go by what you hear and read in in human history." Washington, D.C., you would think, almost no one. With some rare exceptions, no one is saying anything. But that LaRouche was right isn't true. This warning, and a few others, were cited by Lyndon Look at Europe, look at Japan. Just in the past month, LaRouche in a June 1994 policy statement [see EIR, June many voices have been raised. For example, the finance 24, 1994] entitled "The Coming Disintegration of Financial minister of Japan, Masayoshi Takemura, addressed the Diet Markets," known otherwise as his "Ninth Forecast." Since (parliament) on April 10, and said that the post-1971 floating its release, 900,000 copies of this document have circulated exchange rate monetary system should be rethought. Besides in the original English-language version, and thousands of making some of his own recommendations, he reported that copies in many translations. "economists in several nations" are now studying ways to In this document, LaRouche reviewed the nature of the reform the monetary system. financialbubble, in contrast to how an economy should func­ There are many proposals coming forward from France, tion properly. Since then, he has stressed that a "Chapter in particular, in the context of the Presidential election cam­ 11" -style bankruptcy reorganization of the world monetary paign. French President Fran<;oisMitterrand, speaking at the system, by the United States in concert with other nations, U.N. Social Summit in Denmark in March, said, "Are we is necessary for reversing the procells of disintegration and really going to let the world become a global market without reviving the economy. any laws except those of the jungle? ... Should we leave You now hear frequently from others, echoes of various the world's destiny in the hands of those speculators who in formulations published by LaRouche to deal with the crisis. a few hours can bring to nothing the work of millions of men The single most dramatic example, is the proposal to tax and women?" derivatives speculation. On March 10, 1993, LaRouche pro­ French Prime Minister Edouard Balladur also said in posed that the U.S. government place � 0.1% tax on all March that action is needed. "Every time there's trouble, derivatives transactions, for the PQrposes of beginning to people say, 'It's very serious, we have to do something about control and dry up this cancerous speculation, and to make it.' And then life goes on. They say it wasn't so serious, 'We way for other financial and economic emergency measures survived,' and they wait for the next shock. For me, my fear to revive the physical economy. and my obsession is that one day the shock will be so severe In early 1993, most congressionlll officescould not even that the prosperity of the world would suffer badly. So I tell you what derivatives were, let alone what you should do would prefer that we prepare for the worst." about them. But subsequently, Rep. Henry Gonzalez (0- There are similar voices elsewhere in Europe, and from Tex.), then-chairman of the House Banking Committee, held our own hemisphere, from Asia and Africa. hearings and made speeches drawing attention to the danger Most of the alarms have come about the time that the of derivatives and other speculation� internationalspeculative bubble started popping over the past Representative Gonzalez himself introduced legislation year, and the losses and destruction are obvious, even to the in 1994 calling for a 0.1% tax on derivatives transactions.

EIR April 21, 1995 Economics 13 Helmut Schmidt James Tobin

Now, more such bills have been introduced in the United notional value of outstanding ves being traded global- States, and similar proposals have been made in France and ly has now reached $45 tri other countries. Those who defend this in the name of "liquidi­ Thus, if you go back 25 years, there is a very short the City of London and relat­ list, with Lyndon LaRouche most prominent, of those who ed circles-are, in fact, ""0'1" 1',, for more hot air for their forewarned of the dangers of the "bubble economy," from disintegrating bubble. about 1970 through 1993. In the last two years, you hear Otherwise, apart from the split between those for and many more cries of alarm each week-at least if you are against speculation, you will proposals from both camps outside Washington. for putting the International Fund in charge of "reform" of the disintegrating system, despite the What they say should be done IMF's role in bringing it We will give here a summary picture of what people are The glaring drawback of well-taken proposals for saying should be done. This is relatively easy, because what countering the International Fund, and imposing those who are speaking out are saying, unfortunately, is very currency stabilization is the lack to-date of com- limited and easy to summarize. That is, most proposals are panion proposals to restore th functioning of the physical simple-minded. economy. The crisis conditions in Mexico, or the case We present a selection of these proposals on aspects of of the shutdown of vital municipal services in Orange the financialbreakdown crisis, grouped under three headings: County, California (infrastru I ture maintenance, schools, currency chaos, derivatives blowouts, and national and insti­ health care) following financial breakdown, illustrate how tutional debt crisis. essential are emergency econbmic measures, not just fi­ The fourth category of proposals, which are development nancial "reform." initiatives to deal with breakdown conditions of the physical As of March, 15 out of the 50 U . S. states were reporting economy of various regions, we will not include here, be­ significant losses in derivative� by some agency or locality cause they were summarized in the Jan. 1, 1995 special color within their borders. Worldwide, reported municipal losses issue of the EIR , and EIR news reports have followed since. in derivatives add up to about $10 billion. Such initiatives include the Middle East Development Bank The constituency exists i I every nation for economic and multi-nation proposed infrastructure projects, as outlined development-based financial reorganization proposals. at the Casablanca conference in November 1994. Moreover, the opportunity no,. exists to put this on the offi­ What should be done? cial government agenda of nations. For example, at the end There are broadly two camps: those who want to curb of April or in early May, there will be public hearings in the speculation and end what they often call "turbulence" in German parliament on the ne to counter derivatives and currencies; and those who oppose any such moves, in the other speculation. e1d name of protecting global "liquidity." There is an estimated The following compendium of "Brand X" proposals is $1 trillion a day in worldwide currency speculation at pres­ presented as a reference for thoJe mobilizing to force through ent, with about one-third of that centered in London. The the necessary changes before it is too late.

14 Economics EIR April 21, 1995 Alan Greenspan Pope John Paul II Alberto Fujimori c. Fred Bergsten

published on March 19, 1995 : Documentation "Any proposal to restrict purely speculative transactions should be studied seriously. There are, however, serious technical problems. It is often hard to distinguish between The fo llowing are selected recent comments addressed to purely speculative trans.actions and those deals which are aspects of the financialdisintegration process. rather based on arbitrage or hedging purposes." Andre Ouellet, fo reign minister, Canada. Reuters re­ portfrom Ottawa, March 14, 1995 : I. Currency chaos "The information I have received is that there is genuine interest on the part of many to discuss this" tax on currency James Tobin, professor emeritus, Yale University, eco­ transactions at the June 15-17 Group of Seven summit in nomics. Professor Tobin firstput fo rward the view thatfor­ Halifax. "The very fact that it would be on the agenda and eign exchange speculation should be taxed in 1978 . As of that it would be discussed in Halifax [would be] an immense this year, there are many references to what is now called step forward ." the "Tobin tax." From the Wall Street Journal, Dec. 22, Lionel Jospin, Socialist Party candidate fo r President 1992 : of France. Winter 1995 : "An international tax should be levied on spot transac­ In his "Manifesto for France," he calls for a 0.1 % tax tions in foreign exchange (including deliveries on futures on the movement of speculative capital, "which would not contracts and options) . ... A 0.5% tax on currency transac­ penalize investments for JO years, only placements for JO tions is equivalent to a four-percentage point difference in days," to dampen currency turbulence, and incidents such as· annual interest rates on three-month bills, a considerable the Barings bankruptcy. deterrentto those contemplating a quick round trip to another Edouard Balladur, prime minister of France. As report­ currency." ed by Reuters, March 14, 1995 : Alain Juppe, fo reign minister of France. The March Proposed: 18, 1995 issue of the German daily Frankfurter Allgemeine • a new common, world currency standard (can be a Zeitung reported: basket of currencies, ECU-style); Minister Juppe told the March 18-19 meeting of Europe­ • a system requiring dealers to make deposit payments an Union ministers in Carcassone that a reform of the interna­ when making currency trade , to slow short-term international tional currency system is now indispensable. Otherwise, ev­ money flows; ery country in the world will be exposed to foreign exchange • "In a world which moves around hundreds of billions turbulence with all its dangerous consequences for the econo­ of dollars every day by computer, could we not invent rules my and society. of market organization that would make speculative gains Edgar Meister, board of directors, Bundesbank (central less easy?" I bank of Germany). The fo llowing are excerptsfrom an inter­ Masayoshi Takemura, financemini ster, Japan. From view with the German economic weekly Wirtschaftswoche a speech to the Diet (parliament), as reported by Reuters,

EIR April 21, 1995 Economics 15 •

April 10, 1995: The "turmoil in the financi� markets," e.g., the collapse "In order to counter the current rapid appreciation of the of Barings Bank, shows that �bankruptcy reorganization" yen, Japan would like to emphasize policy coordination and is necessary. We are working on a proposal for "taxing joint intervention taken together with other nations, especial­ financial transactions-derivati�es, foreign currency, forex ly the u.s. . ..But we also need to think whether we can bonds, securities.. ..The fallout would be to dry up specu­ leave the currentexchange rate system as it is now. " It should lation, but the purpose wouldi be to fund things that are be noted that "economists in several nations" are studying needed but for which there is no money. . . . Nobody has ways to reform the monetary system. the relevant statistics . . . at � time when there are more FinancialTimes of London, "EconomicsNotebook, " by than 1.5 million derivatives co�cts being concluded every Peter Norman, March 27, 1995 : day." . "An Old Idea Comes Up for Airing," is the headline Henry Gonz8Iez (D-Tex.), U.S. representative, then­ of this article, which ridicules attempts to control foreign chairman of the House Banki�g Committee, press confer­ exchange speculation. It ends with a quote from a German ence on March 28, 1994 : economist, "A tax on exchange transactions keeps reap­ The derivatives inarket is '�an electronic Ponzi scheme pearing like the Loch Ness monster. Forget it." that eventually is going to cau$e us some dangers because it's like an inverted pyramid ....What I'm thinking of is trying to see if we can get our prime responsible forces like ll. Derivatives blowout the Fed and the Treasury . . . to bring about a worldwide consortium. . . . You could stop it overnight if you just Wendy Lee Gramm, chairman (1988-93), Commodi­ imposed a one-tenth of 1 % tax on those transactions." ties Futures Trading Commission, wife of Sen. Phil Gramm Henry Gonzalez, U.S. representative, Jan. 4, 1995, (R-Tex.). From a commentary in the Sept. 8, 1993 Wall urging passage of the "Derivatives Safe ty and Soundness Street Journal: Supervision Act of 1995": "[Derivatives are aJ vibrant and valuable sector of the This is a law designed to meet a need that "has been U. S. financialmarket. . . . Most important, if another major heightened due to such recent calamities as the Orange Coun­ default or market shock occurs, we must all resist the urge ty bankruptcy." It calls for: to find scapegoats, or to over-regulate what we just do not Federal agencies to collabotate to set standards for enti- . understand." ties trading in derivatives. Social Democratic Party, German Parliament, March Additional disclosures by traders. 19, 1995 : Trading proscribed unless under a written "prudential" A "Grand Motion" was put to Parliament for a debate on management plan. derivatives and their risks. Rudolf Scharping, SPD national Ed Markey (D-Mass.), U.S. representative, ranking chaiiman, signed it. member of the Telecommunications and Finance Subcom­ The debate is expected to take place in late April or mittee of the House Commerce Committee, from a press early May. briefing, Feb. 27, 1995 : Helmut Schmidt, fo rmer chancellor, West Germany. Representative Markey introduced legislation to regulate From an article by Schmidt in the German weekly Die �it, derivatives dealers, saying that the collapse of Barings Bank March 10, 1995 , entitled "Wild Bet at Any Price" : "underscores the risks inherent in failing to assure that regu­ Three "necessary steps" with regard to derivatives must lators have adequate tools on hand to minimize the potential be taken: First, parljaments, including the Bundestag, must for OTC [over the counter] d¢rivatives to contribute to a hold special open public hearings on derivatives, "in order major disruption in the financial markets, either through to expand, if necessary, the existing credit system-laws." excessive speclilation and over�leveraging, or due to inade­ Second, '�banking control authorities must intervene in quate internal controls and risk management on the part of every individual case, in which it seems to them that the major derivatives dealers or end-users." internalcontrol system of a bank (with respect to derivatives) Markey said that his legisl�tion is "aimed at providing is inadequate." a framework for improved supervision and regulation of Third, "to all non-banks, the participation in abstract previously unregulated dealers and assuring appropriate pro­ financial derivatives deals is to be legally forbidden." In tections for their customers." conclusion, "this is not an alarm call, but an admonition to Alan Greenspan, chairmu.n, Federal Reserve Bank, timely, precautionary action." Senate Committee on Banking hearing, Jan. 5, 1995 : Inter-Action Council, Germany. This think-tank is as­ "Although the convenience; and the low cost of using sociated with fo rmer Chancellor Helmut Schmidt. Discus­ derivative instruments to meet portfolio objectives may have sion with a Council operative, March 14, 1995: facilitated some investors reaching for more unconventional

16 Economics EIR April 21, 1995 and possibly riskier strategies, it would be a serious mistake He urged creation of an International Monetary Fund to respond to these developments by singling out derivative "council" of ministerial-level Group of Seven officials to instruments for special regulatory treatment." work with central banks and the IMP board to enforce new John Laware, member, Federal Reserve Board of Go v­ target zones. ernors, to a meeting of Connecticut bankers, as reported U.N. Development Program Report, June 1994: by Reuters, Jan . 25, 1995 : "A world central bank is essentiall for the 21st century­ It is "extraordinarily important" that Congress not try to for sound macroeonomic managemqnt, for global financial control the sale of derivatives in the United States. "We stability and for assisting the econpmic expansion of the must keep Congress out of this .... Derivatives are the poorer nations. It would perform five functions: crown jewel of U.S. capital markets and it would be a grave 1) stabilize global economic activity; mistake to try to outlaw them." 2) act as a lender of last resort to financial institutions; Laware said that congressional prohibition could force 3) calm financial markets when they become jittery or the export of the derivatives market "to London, Tokyo, or disorderly; elsewhere. " 4) regulate financial institutions, particularly the deposit Eddie George, chairman, Bank of England, remarks to banks; the "Forex 94" conference, London, June 1994 : 5) create and regulate new interpational liquidity." "Worries over derivatives are vastly exaggerated. What are to be feared more than derivatives are stable foreign exchange rates of any kind. The establishment of a single m. National debt European currency would increase unemployment in Europe and could lead to waves of migration of unemployed people Anthony Ani,finance minister of Nigeria, remarks dur­ across the borders of EU [European Union] member states. ing the U.N. Summit on Social Development in Copenhagen, Do not attempt to reestablish an international system of fixed Denmark, March 12, 1995 : exchange rates like Bretton Woods." Reschedule, interest-free, Nigeria's $29 billion national Federal Reserve Bank of New York, "Code of Con­ debt over a 75-year period. Grant a 5- lO-year moratoriumon duct" fo r Derivatives Dealers, Feb. 22, 1995: repayments. A "Wholesale Transactions Code of Conduct" was circu­ Alberto Fujimori, President of Peru, remarks during lated to the 10th annual conference of the International the U.N. Summit on Social Development in Copenhagen, Swaps and Derivatives Association, prepared by the New Denmark, March 12, 1995: York Fed and others. It advised that counterparties should Lighten the burden on social development by pardoning assume an "arm's length" relationship in the derivatives a portion of foreign debt. deals, and "communications between them and the brokers Jim Leach (R-Iowa), U.S. representative, chairman, cannot be construed as investment advice." House Banking and Financial Services Committee. Article Mary L. Schapiro, chairman, U.S. CommodityFutures by Leach in the Wall Street Journal,April 10, 1995 : Trading Corp., comments at the National Futures Industry "What is needed today is a Chapter 11 process for the Conference, Boca Raton, Florida, March 16, 1995 : global financialsystem, a technique to keep nation-states and Integrating national bankruptcy laws is needed to prevent their people from the impoverishing ,"plications of insolven­ "the freezing [of] margins and positions of solvent customers cy, while at the same time avoiding problems of moral hazard within insolvent firms," such as Barings. In that case, with­ for both borrowing countries and their creditors .... The out such laws, "virtually 18 hours a day, we talked, cajoled InternationalMonetary Fund is the II/lostlogical institution to and pressured foreign exchanges and regulators to transfer be given the responsibility for administering such a code positions from various Barings accounts .... The delays [Chapter 11] internationally." encountered in transferring positions and funds had poten­ Pope John Paul II, from "A$ the Third Millennium tially significant systemic risk implications." Draws Near," Nov. 14, 1994 ; printed in Inside the Vatican, C. Fred Bergsten, fo rmer U.S. treasury secretary; di­ January 1995 : rector, Institute fo r International Economics. From remarks "In the sabbatical [every 7th] year, in addition to the at the Bretton Woods 50th year conference, Madrid, Sept. freeing of the slaves the Law also provided for the cancella­ 9, 1994 : tion of all debts in accordance withiprecise regulation. And "The International Monetary Fund of the 21 st century all this was to be done in honor of God. What was true for should become the steward of a system of currency target the sabbatical year was also true for the jubilee year, which zones that could evolve, over time, into an effective regime fell every 50 years. In the jubilee ye¥, however, the customs of macroeconomic policy coordination among at least the of the sabbatical year were broadened and celebrated with European Union, Japan, and the United States." even greater solemnity" (emphasis ip original).

EIR April 21, 1995 Economics 17 Reportfro m Rio by Lorenzo Carrasco Bazua

Shadow of Mexico looms over Brazil ment and $3 billion from residents Brazilian reserves dropp ed by 25% since January, turning the outside Brlttil-which would leave the net loss !around $17 billion. With government' s boasting into desperation . the new trade measures, the govern­ ment is tryipg to create a surplus of more than $iSbillion, by trying to re­ T he insistence of President Fernan­ under the illusion that foreign invest­ duce the lo�s in currency to $10-12 do Henrique Cardoso and his econom­ ment will flood Brazil, resolving the billion, placmg the reserves at around ic team in marking Brazil's differ­ balance of payments problem. With $20 billion ..But this scenario will be ences from the Mexican crisis, is these assumptions, it will be incapable hard to pla� out, mainly because a directly proportionalto the speed with of defending the economy from the positive balance of foreign investment which the Brazilian situation is every speculative pounding, which in tum cannot be cdunted on. Indeed, the vol­ day looking more like the Mexican reflects the world financial crisis. ume of flightin the speculative capital one. The administration's vaunting of Raising tariffs could reverse the in the stock markets could grow. $40 billion in foreign reserves at the trade deficit-projected at $2 billion But the similarity to the Mexican outset of the year, which led them to just in the first quarter-but will do situation before the collapse on Dec. believe they were immune to any in­ nothing to stanch the financial blood­ 20, 1994 d�s not end there. The gov­ ternational crisis, turned into despair, letting. For example, in March, the emment, in I the illusion of stemming as they noted, only one quarter later, amount of capital leaving the country capital fligllt, is raising the interest a loss of 25% in the reserves, now was $4.371 billion, whereas only rates at whidhit negotiates its paper on down to below $30 billion, with clear $329.8 million came in, leaving a net the local matkets at the same time it is signs of greater losses in the short loss of $4.041 billion. For the quarter offering exdhange guarantees on this term. as a whole, the exit of capital reached paper. For eiample, it is trying to place The growing trade and balance of $14.540 billion against $6.822 billion $12 billion in National Treasury Let­ payments deficits due to capital flight entering, leaving a $7 . 710 billion gap. ters indexed to Dollars (LTN-D), the out of financial markets, which had Most of this left after the March 6 de­ same idiocy! which was implemented already forced the government to de­ valuation. by the Carlos Salinas de Gortari gov­ value its currency, the real, by 10% in To keep the loss from showing up ernment last year in Mexico, when it early March, has now forced it to on the books as even larger, the gov­ launched the Tesobonos scheme make a desperate U-tum in the policy ernment used the ruse of stalling on which ende4 up bankrupting Mexico. of trade liberalization, raising from 20 payment of the $1.3 billion in interest To avoi� bankruptcy, the govern­ to 70% the tariffs on auto imports and due in March on its foreign debt which ment must not try to generate trade sur­ dozens of durable consumer goods would shown up as a net flight of re­ pluses base4 on reducing internalcon­ which were flooding the country, en­ sources in the order of $9 billion in the sumption. Rather, it should focus on dangering the very existence of na­ first quarter. That, according to the containing I the gigantic financial tional industry and millions of jobs. government,could have led to a worse bloodletting due to the service on inter­ Although the government insists that panic in the capital markets. With this nal and external debt. the measure is temporary-it will move, the government claims to "di­ The Pre$ident must recognize the only last one year, they say-the fact lute the impact of the flight of re­ error he made when, as a senator, he of having taken it is a hard blow to the sources in the coming months," a mobilized a3ainst the debt moratorium trade opening launched fiveyears ago source in the central bank told the decreed by IFinance Minister Dilson under President Fernando Collor de newspaper Gazeta Mercantil. Funaro in F�bruary 1987, alleging that Mello. Reality is that Brazil has to pay this would i�olate Brazil from interna­ But this measure, positive in it­ abroad this year $24 billion in interest tional capit� flows. In other words, he self, does not change the govern­ on foreign debt, royalties, dividends, will have to recognize that his govern­ ment's program for dissolving the ba­ freight, Eurobond maturities, and ment program based on those assump­ sic structure of the state and its payments to international organiza­ tions is nothtng but a dream which died productive enterprises, such as Vale tions. To counterbalance this outflow, before his fitst100 days in office were de Rio Doce, a producer of iron ore, the government hopes to take in $7 out. The specter of the foreign debt is which it is still planning to privatize, billion-$4 billion in foreign invest- back.

18 Economics EIR April 21, 1995 Report from Bonn by Rainer Apel

Re-entering the nuclear power era the association 9f German industry There is a renewed positive interest among Germans in (BDI) in an interview with Stern, a weekly notorious for its radical eco­ exporting and using nuclear technology . logism. The interViewerwas surprised when Henkel voiced his pride over the fact that GermaQ industry is leading About a year ago, a few months however, as was made clear two the world in nuclear technology, espe­ before the general elections for parlia­ weeks later by Hermann Rappe, a se­ cially in the field of reactor safety. In ment, the opposition Social Democrat nior member of the SPD parliamenta­ the first open endorsement of atomic Party (SPD) executive abruptly called ry group and a longtime, now outgo­ energy by a leading representative of an end to all intra-party debates about ing, national chairman of the chemical German industry in almost 15 years, its anti-nuclear policy platform. This workers union. Henkel said that he profoundly dis­ killed a number of initiatives from At a union event in Hanover on liked all the talk "about the threat of a prominent Social Democrats who, March 28, Rappe charged those who climate catastroi¥te, without anybody after a IS-year "construction pause" run the SPD "energy policy" with even asking what nuclear technology in Germany's nuclear sector, wanted gross "ignorance and arrogance," be­ can contribute to, solve the problem." to discuss at least a limited program of cause they "not only want to deter­ "At present, there is construction building new nuclear power plants in mine, once and for all, what future going on at 60 nuclear power plant order to guarantee the nation's energy generations should know, but even projects in 18 different countries," supply into the next century .. want to make sure that future genera­ Henkel said, "and I consider it irre­ Looking to get the ecologist vote tions will no longer have access to vi­ sponsible if the . one country that is that SPD chancellor candidate Rudolf tal modem technologies." proven to have t�e best mastery of nu­ Scharping needed to replace incum­ The SPD platform would impose clear technology from a safety stand­ bent Chancellor Helmut Kohl (Chris­ a 25-year limit on operation of nuclear point, is told to t1xit from that." tian Democratic Union, CDU), the power plants, which means that by the If ecologists', plans to limit reactor SPD anxiously avoided anything that year 2010, all plants will have to be operation to a mllximum of 25 years, might signal changes in its IS-year closed down-and no new ones have instead of the 40 years that is techni­ anti-nuclear policy profile. It even been built in Germany since 1978, un­ cally feasible, succeeded, Henkel de­ broke offcross-party "national energy der the impact of environmentalism. clared, "a burden on German electrici­ consensus talks" with the governing Calling for a "future-oriented, ty consumers and taxpayers of about CDU. fundamental outlook," Rappe urged a 240 billion deutschemarks" would be The fact that Scharping failed to "responsible-minded preparation for the price to pay. defeat Kohl in the October 1994 elec­ the future" that will concentrate on re­ Instead, Henkel said, Germans tions, meant that sooner or later, part search and development of "new con­ should "take p� in the all-European of the SPD would returnto the debate cepts for nuclear reactors and nuclear development of a future reactor type," on nuclear technology. And indeed, waste storage." which they should ensure could be the lobbying for atomic power and a Rappe's name has come up repeat­ built in Germany from the year2005 return to the energy consensus talks edly in connection with emerging on. The interviewer reminded Henkel with the CDU increased inside the strong labor union support (especially of the anti-nucl�ar orientation of the party organization. But, once again, among chemical and mining workers) SPD which would block any such de­ the anti-nuclear current won and voted for new "inherently safe" reactor types velopment. Rat�er than blaming the down motions for altering the party's such as the gas-cooled High-Tempera­ Social Democrats, Henkel said, energy platform, at a session of the ture Reactor, or the Enhanced Pressur­ "There are two �urrents in the SPD. SPD parliamentary group in Bonn on ized Water Reactor, a lightwater reac­ . . . The suppoqers of the one current March 14. The party reaffirmed its tor which the joint Franco-German are slowly, I believe, realizing that the call for a total exit from nuclear tech­ venture of the firms Framatome and discussion about carbon dioxide is nology in favor of increased state Siemens is developing. putting the que�tion of nuclear tech­ funding for "alternate energy sources Rappe's pro-nuclear statement nology back on, the agenda, and this such as solar technology." found an echo in remarks by Hans­ throughout the World. This is the cur­ The struggle is by no means over, Olaf Henkel, the national president of rent I am hoping for."

EIR April 21, 1995 Economics 19 BusinessBrief s

China new politicalenvironment" of the region. En­ Carlsso*, who currently rules with a sin­ vironmentalistgroups, such as theU.S. -based gle-party minority government, is beingpres­ North-South canal draws International Rivers Network, are already in sured by thd Riksbank(central bank), banks, environmental opposition an uproarthat hydroelectricdams will threaten andindustryitoadopt the "Finnish model," cre­ riparian peoples, forests, and wildlife. ating a government of national austerity to make draconian spending cuts in order to con­ The World Wide Fund for Nature (WWF), trola public debt thatwill reach 100% of Gross headed by Britain's PrincePhilip, is opposing Domestic Productin a few months at present the planned North-South water diversion proj­ Taiwan rates. Unlil¢ Italy, Sweden is highly depen­ ect in China, theHongkongStandmd reported denton short-termforeign borrowingin capital on March 21. North-south rail project markets, leading some Scandinavian analysts The project was approved in March by to predict �t, if there is no drastic policy governmentauthoritie s. Itwillbe aI ,242-kilo­ gets government okay change, "Svyeden will become the Mexico of meter waterway from Hubei province to the EuropeapUnion ." Beijing, 30 meters wide and 7 meters deep. The Taiwanese governmentin earlyApril ap­ On April 5, Carlssonwas offered a coali­ Fourteen billion cubic meters of water a year proved in principle a north-south high-speed tion partneri;hip by the pro-austerity Center will bemade available foragriculture and for rail project. The plan involves building a 330- Party. The 'Pinnish Model" refers to the cre­ urban water needs in Beijing and Tianjin, at a kilometer trackfrom Taipei, the capital, to the ation of a gdvernmentof national unity to im­ cost of $6.5 billion. The worstdrought of the port ofKaosiung, a project thatwill cost $16.5 posetax hil¢s of 30% (amid 20% unemploy­ century which is now hitting the north finally billion and is to becompleted by no later than ment in the country) to stop a free-fall of the convinced Beijing to proceed with the long­ the year 2003 . currency-acase of curing the diseaseby kill­ planned project. The Taiwanese parliament is expected to ing the patitmt. DaiQing, anenvironmentalist, joumalist, pass the budget for the first two years of the and dissident now in the United States, who project during April . leads the efforts against China's ThreeGorges The governmenthas, however, not yet de­ Industry ! Dam, has called the North-South canal "a termined which traintechnology will beused. joke." TheHongkong Standmdreported that I It is reportedthat Taiwan is considering either Bronfman moves out "academics and environmentalists" have al­ the TGV, produced by French companies, or leged that the canal will be a disaster for the the ICE, which is manufactured by German of DuPont, into MCA 400 million people along the Yangtze River, firms. Ostensibly, the use of maglevtechnolo­ who will suffer from water shortages, in­ gy is not being considered. Seagram Co. Ltd, a firmrun by the Canadian silting of the river, and similar creased Bronfman f�y interests, plans to sell back problems. to DuPont Cb. a 24. 1 % or morestake that Sea­ gram holds in DuPont, which will raise $8.8 Sweden billion befote taxes, and to buy 80% of the movie and eCJ,tertainmentcompanyMCA, Inc. Southeast Asia Government being pushed from Matsu$hitaElectric IndustrialCompany for $7 billiQll, according to news reports on Mekong River into draconi� austerity April 7. Matsushita acquired MCA, which is known for �uch Steven Spielberg films as Commission formed Following a dramatic collapse of the Swedish "E.T.," "JUrassic Park," and "Schindler's , kroner in late Marchand earlyApril, triggered List." Senior officialsfrom Thailand, Laos, Cambo­ by selling by Swedish multinational compa­ Matsusliitapaid $6.6 billion for MCA, and dia, and Vietnam signed an agreement on nies and banks, Finance Minister Persson is­ its withdrawal might also signal that Sony, April 5 to set up the Mekong River Commis­ sued a statement on behalfofthe Socialistgov­ which has IGst billions on Columbia Pictures sion, an autonomous, intergovernmental orga­ ernment of IngvarCarlsson on March 30, to Industries, will be withdrawing fromthere as nization, to promote "sustainable develop­ the effectthat "everything is fine;the govern­ well . ment and conservation," according to a ment is on schedule with its deficit reduction The repurchase of 156 million DuPont statement released by the U.N. Development plan. We won't do more unless the financial shares was fpr $53 a share, far below the cur­ Program (UNDP)in earlyApr il. Priorityareas markets forceus to."The statement triggered rent market !Value of $64.75 . The leavesdeal for cooperation include hydroelectric power a panic selloffin the kroner on March 31 and Seagram with 8.2 million shares (1.5%) of generation, irrigation, fisheries, tourism, and into the following week, forcing the govern­ DuPont. navigation. ment to reverse itself, stating thatit would in­ DuPont Vice ChairmanJohn Krolsaid the The UNDP director for Asia and the Pa­ troduce supplemental budget cuts in the April impetusfor the deal was mutual. ''Therewere cific, Nay Htun, congratulated the four coun­ 24 semi-annual budget revision of "between no issues that createdthis. They [Seagram] had tries on the agreement, saying it "captures the 10 and 50 billion kroner." another plail in mind for what they wanted to

20 Economics EIR April 21, 1995 • MEXICO�S Laguna Verde nu­ clear plant will soon operate at full do with their investment. ...We were look­ Trade capacity (1 ,2OO MW), according to ing at buying back our stock anyway." Energy Secretary Ignacio Pichardo. The Bronfmans' role in DuPont has been German companies sign It is the first time that a government underattack byLewisduPont Smith,an heir to official has discussed nuclear energy the DuPont fortuneand an associateof Lyndon deals with Indonesia since President L6pez Portillo's plan LaRouche. The Bronfmanshelped orchestrate to build 20 nuqlear plants was shelved the ban on chlorofluorocarbons, which arees­ Germancompanies announced on April 3 that in the early 1980s. pecially critical for refrigeration and fire­ they have signed billions of deutschemarks' fighting. Edgar M. Bronfman, Sr. is head of worth of contractswith Indonesia. Indonesian • BRITIS" BANKER Sir Brian the World Jewish Congress , honorary vice PresidentSuharto recently attended this year's Pitman, chairman of Lloyds Bank, chairman of the Anti-Defamation League Hanover Industrial Trade Fair. In the course estimates that another 75 ,000 jobs in (ADL), and head of the ADL Greater New of his trip to Germany, Suharto said he would the U . K. banking sector will be elim­ York Appeal. discuss his latest proposalfor a Yugoslav con­ inated, on top of 90,000 jobs lost in Meanwhile, Canadian securities regula­ federation to end the warin the Balkans with the banking sector since 1989. tors and TorontoStock Exchange officialssaid the Kohl government. on April 7 that they plan to investigate Sea­ The contracts signed so far include a $1.6 • INDIA will export 2 million tons gram's lack of disclosurein the deals, Reuters billion coal-fired power plant in East Java to of wheat to China this year, the first reported. Stock Exchange officialsare investi­ Siemens AG, with British and Indonesian par­ time it has done so. China has been gating insider trading. Seagram twice refused ticipation; a $1.09billion powerplant contract hit by drough� in the north, floods in the Exchange's requests for infonnationafter to the Swiss-Swedish engineering firm ABB, the central region, and ever-decreas­ rumors fueled stock price changes. with two U.S. partners; a $506million agree­ ing arable land along the coast. India ment with Deutsche Telekom and its mobile has had a surplus food-grain produc­ phone unit DeTeMobil; and a $300million ce­ tion of over 10 million tons for sever­ Infrastructure ment plant dealwith Krupp Polysius. Smaller al years. contracts were also signed with Meyer-Werft Railway on southern Silk to build two passenger ferries ($79.9 million • A MENINGITIS epidemic in the each), and a $21.79 million engineering con­ Sahel region in Africa has caused the Road proposed in China tract with Renk Ag. deaths of more than 2,500 people, almost 2,000of them in the impover­ The construction of a railroad on the southern ished state of Niger. The economic route of the Silk Road was proposed at the re­ crisis in Niger is an indication that cent Chinese National People's Congress. health care and immunization there Cheng Zhengning, a deputy from Yunnan South Africa are at an unusually low level. province, proposedtheChina-Myanmar-India rail developmentfrom Tengchong, to be con­ Government puts priority • A CANJ\DIAN bank could go nected with the Myitkyina railwayin Myanm­ on rural water supply the way of Barlngs Bank, John Palm­ ar, and then into India. This rail connection er, superintepdent of Canada's fi­ betweenBaoshan in Yunnan province to Cal­ nancial institiItions, said on April 7, cutta would be 2,100 kilometers, 6,000 km The South Africangovemment "is standing by Associated Press reported. "The only shorterthan thewater routethrough the Straits its priority to supply water to rural communi­ way [regulatprs] can make sure it of Malacca. ties," Johannesburg TV reported in late won't happen here is to post teams of The named route is the China-India High­ March. "Theminister of water affairsand for­ derivatives experts, on a 24-hour-a­ way, called the Stilwell Highway, which is be­ estry, Prof. Kader Asmal, on March 22 an­ day basis, in every trading room of ingconstructedas ajoint effort betweenChina, nounced that a dam [costing] 180 million rand every Canadian financial institution Myanmar, and India. Cheng credits Sun Yat­ will be built in KwaZula-Natai. The dam on across Canadaand around the world. sen as the firstproponent of the rail line, which the Mvoti Rivernorthof Glenville inthe Stang­ And even then, something might slip is now sometimes referredto as the China-Af­ er areawill be completed at the end of 1998." past us." rica line. One-third of South Africans do not have Meanwhile, the Chinese People 's Political access to clean water, and half of the popula­ • POLANJi)'S biggest savings and Consultative Conference has called for mov­ tion does not live under hygienic conditions. loan bank, PiKO BP, will no longer ing up the planned rail connection between Professor Asmal also announced a water buy dollars from customers, Gazeta Nanjing, near the coast, and Xian, the ancient conservation campaign. Until water projects Wyborcza rtlported in early April. capital, passing through Jiangsu, Hubei, Hen­ can be built, "the aim is to reduce the water The Polish �ily said that today ev­ an, Anhui, and Shaanxi provinces. The route consumption of the privileged and to make it eryone in Po�d is eager to get rid of is desperatelyneeded to link the coast with the available to the needy," according to the their dollars. interior more efficiently. broadcast.

EIR April 21, 1995 Economics 21 TIillFeature

Jacques Che�inade campaignsfo t French nationhood by Christine Bierre

After months of brutal factional warfare leading up to the firstround of the French presidential elections on April 23, the Paris nomenkllj,tura has apparently decided that Edouard Balladur, the currentprime minister, will pe defeated, and thatJacques Chirac, the head of France's nominally Gaullist party, the RPR, will be the next President. This, at least, is the line that the Paris medla are trying to ram through. In times of crisis, however, whatever the nomenI4atura might decide is not of much importance; those very institutions can be swept away in a matter of days, just as we saw when the Berlin Wall came down� and, with it, 50 years of communism in eastern Europe. Indeed, even thoughImost of the polls are giving Chirac a lead in the race, with Socialist Lionel Jospin �oming in second, the same polls arereporting that more than 40% of the French PQPulation has not yet decided for whom to vote. There may still be surprises in stor4. What are the issues at stake for France in the coming period? Most immediate­ ly, there is the problem of solving the severe unetnployment problem. Fully unemployed persons are now in the range of 3.3 milliion, that is, more than 12% of the workforce. To this already disastrous figure on� should add 2 million more who have make-work jobs and about 5 million whq have part-time work with "flexible schedules." Counting both total and partial I unemployment, nearly one out of every four French workers is unemployed. Another major challenge for the incoming PresidCfnt will be to solve the crisis into which years of financial speculation have plunged the country. The case of the Credit Lyonnais, the largestof the public sector b�nks, whose losses are in the range of 80 billion francs (approximately $16 billion), iis indicative of this process. The 200-300billion francs ($50 billion) debt accumulated by the real estate sector is another example of this same problem. The third problem area which will define the ne" Presidency is the question of the future of Europe, and, especially, of who will �e France's most important ally in the future. Will the Franco-German alliance, which has been the basis for

22 Feature ElK April 21, 1995 Jacques Cheminade on the campaign trail, April 1995 . "Surprise candidate" Cheminade has stunned the media and the political nomenklatura by securing more than the 500 signatures of elected offi cials required to qualifyfo r the Presidential race. A friendof Lyndon LaRouche and the only candidate who represents "the Partyof France," his campaign has created a total uproar. the prosperity and stability of Europe in the postwar period, from such policies, as well as from the commitment to high­ be maintained? Or, will France orient toward a new Entente quality public instruction for everybody in the country, that Cordiale with Great Britain, aimed mainly at weakening the France derives its strength and its ability to be an independent position of Germany? nation. Behind these issues, however, the deeper question is this: Increasingly, since the death of Charles de Gaulle in Will the "Party of France," as Gen. Charles de Gaulle and 1970, France has been losing those essential values and turn­ others in French history have referred to it many times, will ing more and more to the oligarchical financial practices reemerge to ensure the sovereignty of the French nation, or which have been rampant in the Anglo-American partof the will France continue its present decline and become a second­ world for the past century. Under those influences, France rate nation? The expression "parti de La France" refers to a has not only deregulated its financial system, breaking with tradition going as far back as Charlemagne, a conception the previous longstanding policy of a credit system that pe­ redefinedand improved by France's Renaissance King Louis nalized speCUlation and favored productive investment, but XI (see box), which later tends to reappear in French history it was the state-sector banks and companies that have often with figures such as Henri IV and his great minister Sully, led the way into the craziest of the financialpractices of the with Jean-Baptiste Colbert, or with the group of scientists last 15 years. It is these orientations which have led to mas­ grouped around Lazare Carnot duringthe French Revolution sive unemployment, to accumulation of a state debt nearing and leading up to de Gaulle during this century. the 60% mark, as well as a public deficitin the order of 5% of Gross National Product. The 'commonwealth' idea Relative to these issues, where do the different candidates Central to this tradition is the idea that the state has the stand? Which way will France go during the next seven-year responsibility for ensuring the "commonweal" of the entire Presidency? population: It must protect the citizenry from looting by rapa­ cious and unscrupulous financiers, protect the most humble The candidates of its citizens, and ensure equal opportunities to all. In this While the factional fight whichpreceded the election was tradition, the state is responsible for creating an appropriate particularly brutal, as indicated by the series of scandals climate for productive investment and scientific research which broke out in the recent months, it is difficultto say to which benefits the nation as a whole, through its control of what extent this struggle involved the issues that are key to credit and by investing in large infrastructure projects. It is the survival of the nation.

EIR April 21, 1995 Feature 23 Of all the candidates, there is no question that Edouard tries into despair. Balladur is the purest incarnationof the financial oligarchical Is there any serious opposition to these policies from the view. Balladur's entourage is almost exclusively dominated two other main candidates, Jac��es Chirac , the president of by high-level monetarists and bankers, ranging from the the RPR, and Lionel Jospin, the candidate for the Socialist heads of the Treasury and of the Bank of France (the central Party? Is there any sign of a retu to power of the policies of bank), to the leaders of top insurance and investment houses the Party of France? such as the UAP and Lazard Freres, as well as of heads of The potential for this is always present in France. But exclusive financial empires such as the Rothschild family and today, it can only be catalyzed y the ideas of the "surprise the Groupe Rivaud. candidate," Jacques Cheminade, even though he is the candi­ Among all the candidates, Balladur is the only one to date of a small party. have given his support to the idea that the cause of France's In their written and oral statements, both Chirac and Jos­ economic crisis is the "high wages" of the lower-income pin have attacked the flight forlvard into speculation, with workers ! Balladur appointed arch-monetarist Alain Minc to Jospin going as far as proposing a 0. 1 % tax on speculative head a commission which produced a report along these products. These attacks are also bccurring in the context of a lines, entitled "Challenges of the Year 2000." more general outcry against s�culation, picked up by the In foreign policy, it is Balladur who broke with several majority of the left-wing candidates and many media com- time-honored Gaullist principles. He is to be blamed for the mentators. rapprochement between France and Great Britain, a renewed Concerning social issues, CHI irac has rejected Balladur's i Entente Cordiale forged to the detriment of the Franco-Ger­ attempt to attack the poorest la)fers of the population, and, man alliance (for a historical analysis of this policy, see under the influence of the head l of the National Assembly, EIR . March 24, "London Sets the Stage for a New Triple Philip Seguin, has attempted to revive the social doctrineof l Entente"). Concerning France's allies in the Third World, Gaullism. It was he who firstcal ed for an increase in the real the two years of Balladur in power will be recalled as those wages of workers by transferring some of the burden of social during which France dumped its longtime allies in Africa by costs paid by employees, to the state. Almost every candidate devaluing the African franc (the CFA) and turning over the then jumped on the bandwagon c}eated by Chirac , competing French-speaking African countries to the International with opportunistic fervor to see tho could propose the high­ Monetary Fund, measures which have plunged those coun- est wage increases, and leading to a situation in which all the candidates, including the racist Jean Marie Le Pen, are call­ ing for an increase of the minimum wage. Oblivious to the financial crisis which has intenSIfied so dramatically world­ wide since the devaluation of the Mexican peso in December 1994, all the candidates, excep!t Cheminade, are insisting that such marvelous wage increases will be made possible by the current "upswing" of the eco omy! Most of these promises in th� social domain-including promises to create millions of fuake-work jobs, to launch Marshall Plans to reconstruct the poor suburbs, and to build new homes for the poor-are to IDedisc ounted as pure dema­ gogy, typical of election campaigns. All the candidates know that the French people are fed up with the austerity that has been imposed over the last 14 years, fed up with unemploy­ ment, fed up with the overpricin� of housing caused by real estate speculation, fed up with seeing the state bailing out the banks and the real estate companies, while not one sou is going into real production. Strikes have broken out through­ out the country over the last wee�s, in public transport, insur­ ance, and industry, indicating the danger of a social explo­ sion. Most candidates are therefote pandering to this ferment. Could there be a rejection in oreign policy of the tenden­ cy toward an Entente Cordiale and a return to the Franco­ Gen. Charles de Gaulle (left) with German Chancellor Konrad German alliance? The three mai stream candidates all trav­ Adenauer. in Bonn in 1961 fo r the signing of the treaty reconciling the French and German peoples. Franco-German fr iendship must elled to Germany to meet and ne&otiate with Chancellor Hel­ be a cornerstone of a new fo reign policy fo r France. says mut Kohl the basis of a renewed Franco-German alliance for Cheminade . the next seven years. Chirac and Jospin's platforms are the

24.. Feature EIR April 21, 1995 been consciously implemented for the establishment of the nation-state." Louis Xl's founding "As a general policy �" Beaudry �rites, "Louis capital­ ized on the initiative of entrepre�eurs and inventors, of theFrench nation whom he protected, in agriculture a/> well as industryand commerce. He adopted protectionist and anti-dumping In an article published in EIR on Feb. 17, Lyndon measures to protect grain growers or linen producers; ex­ LaRouche underlined the historical role of France's King empted traders from provincial tariffs, while imposing Louis XI, who ruled from 1461 to 1483. "The principle," tariffs on foreign merchandise; encouraged skilled labor LaRouche wrote, "that every person is made in the image from other countries to come into Dauphine and settle of God, was not introduced efficiently into the practice of there with their families, guaranteeing them tax exemp­ statecraft until the mid-fifteenth-century Council of flor­ tions proportional to their producti�ity . ence and the subsequent establishment of the first modem "The most significant political' change that the king nation-state, the commonwealth of France's King Louis forced through was to bankrupt the feudal landed aristoc­ XI. The notion of commonwealth introduced by Louis XI racy with the creation and defense of industries throughout to France, is the beginning of the existence of the modem the 94 cities of France, and by opening trade with Eng­ form of nation-state. " land, and treaty agreements with Genoa, Florence, Na­ France in the fifteenth century had 14 feudal duchies ples, Sicily, and Calabria. He guaranteed the expansion and 94 major cities, which Louis XI unified on the basis of industries by subsidizing the cities, including the medi­ of the common good. This "commonwealth" idea was eval cities; such subsidies came froma tax (La taille) which conveyed in the slogan, "One law, one weight, one cur­ was inversely proportional to the productivityof the earn­ rency." The king also established one army. er. Accordingly, the feudal princes were taxed at a higher In an article sQOn to be published in New Federalist rate than the burghers, and the burghers higher than the newspaper, Pierre Beaudry documents Louis's craftingof city-dwellers ..... ThrOJJgh the j\Jdicious use of taxes, the nation-state� One vital aspect was a tax policy for both levying and exempting as the case may be, Louis population growth, which Beaudry describes as "the first was able to direct economic growth and development time in history that a policy of demographic growth had throughout the kingdom."

strongest in favor of maintaining the Franco-German alli­ Even as the election campaign began, the influence of Che­ ance. Chirac surprised many by not mentioning once in his minade's policies was visible in the, Chirac and Jospin camps. platform the need for reinforced cooperation with Great Brit­ It is Cheminade and his friends wOo have been campaigning ain. Quite the contrary, he called for a renewal of the Franco­ in recent years for a 0.1% tax on financial derivatives, well American alliance, which, in the context of the current break­ before any of the official spokesmen of the Socialist Party down of the British-American "special relationship," would even knew what derivatives were. In the last two months of seem to align Chirac against the British. Jospin, whose sup­ the campaign, Chirac called for thJ creationof a Middle East port committee is headed by Jacques Delors and by Delors's Common Market to cement the nelv Mideast peace accords, daughter Martine Aubry, can hardly be suspected of harbor­ and called for increasing aid to Africaand therest of the Third ing anti-German sentiment. World; he even called for a Marshall Plan for the Paiis sub­ These are only tendencies, however, and very fragile urbs. Such policies have long been advocated by Cheminade. ones. The artisan of the "new social policies" of Chirac is None of the other candidates. however, know how to known to be Philip Seguin, whose sympathies for Britain were 'realize those policies. None of tilem are aware of the fact expressed most clearly in the biography he authored recently that the international monetary system has to be put through about Britain's favorite French catamite, Napoleon III. The bankruptcy proceedings, before it: can move in the direction Seguin group within the Chirac camp is also cohabitating with of policies of growth. None are w.lling to announce a crack­ that of Alain Madelin, the French president of the Mont Peler­ down on financial speculation, and moving towarda two-tier in Society, whose policies echo the anti-state ravings of the credit policy that would favor productive credit and penalize Conservative Revolution crowd in the United States. speculative capital. An element which is centralto evaluate thecredibility of Cheminade's impact these presidential programs, is how they will deal with the In this context, only the candidacy of Jacques Cheminade Maastricht Treaty on European union. The threemain parties can possibly catalyze a reemergence of the Party of France. are favorable to the treaty and to ail its consequences: 1) the

EIR April 21, 1995 Feature 25 maintenance of the autonomy statute for a central bank which President with the courage to defy the institutions of the is explicitly forbidden to extend credit for large-scale public financial markets, and to call, along with Germany, for the projects; and 2) the returnto a public deficitlower than 3.5% application of bankruptcy proce dings to the world financial and of indebtedness of less than 60% , which would necessi­ system. It requires a rejection of the autonomy of the Bank tate massive austerity budgets. All these criteria exclude the of France, and abolishing the which forbid that possibility of a Marshall Plan-type solution of great infra­ bank and other central banks in from extending credit structure projects in the east and in the south, to relaunch the for large infrastructural projects such as high-speed trains, productive economy. nuclear power grids, and in eastern Europe and to­ A reemergence of the Party of France demands today a ward the countries of the South.

I HelgaZepp-LaRouche endorses Cheminade

Helga Zf!pp-LaRouche, the chairman of the Civil Rights Movement Solidarity in Germany, issued this statement on Ap ril 12:

In view of the strategic sj gnifi�ance for Germany of the upcoming' French presidential elections, which are oc­ curring arilld the continued disintegration of the world . financialsyst em, with wars raging around the globe, there is only one appropriate term to characterize the silence of the German media over "surprise candidate" Jacques , Cheminade, and that term is: stupid arrogance. Because whether the media people like it or not, over the coming weeks, Jacques Cheminade's participation in these elec­ tions-a status which he earned with the signatures of over 500 sitting mayors-has shifted the stage of the his­ toric battle over a way out of the worldwide crisis, into France . .(f we in Germany have learned anything from the Helga Zepp-LaRouche with Jacques heminade. history of the last two centuries, then it should be this: that without Franco-German friendship, based on positive principles ,.it is impossible to secure peace in Europe. That minade represents the alliance among France, Germany, was the conclusion which de Gaulle and Adenauer, to and America for the economic dbvelopment of the Eur­ name only two, drew when they signed the Franco-Ger­ asian continent-a political visio which, thanks to Presi­ man Treaty in 1963. dent Clinton's renunciation of thF "special relationship" Among the French presidential candidates, Jacques between Great Britain and the ynited States, especially Cheminade is the only one who has made friendship be­ with his speech in Berlin [in 19�4] , has become a great tween our two nations into a central feature of his pro- opportunity for a political turnarornd.

_ gram, wnereas all the other candidates have acquiesced to It is precisely because that op,portunity must become various degrees in the model of the unsavory policies reality-because, for us in GermJnyand in all of Eurasia, of an "Entente Cordiale" or a "Triple Entente"-as was peace and economic survival hin�es upon it-that I give recently �emonstrated clearly enough in their attitudes my wholehearted support to Jacqpes Cheminade's presi­ toward the Serbian war of aggression against Croatia and dential campaign. I do this also, because his policy of Bosnia. Thanks to such attitudes, now once again we have Franco-German cooperation in the economic develop­ come very close to the same dynamic which characterized ment of the so-called Third work in the spirit of Gott­ the situation leading up to World War I. fried Leibniz, is the only policy th�t is morally acceptable. Opposing this danger of a new Triple Entente, Che- Long live Franco-German fridndshipl

26 Feature EIR April 21, 1995 Probe of slanders of Cheminade leads to international 'Murder, Inc.' by Jeffrey Steinberg

Some of the same foul operators who were implicated in the had been coerced into makingconttibution s. John F. Kennedy assassination, the destabilization of the France Bypassing civil judicial avenues� the family made a crim­ of President Charles de Gaulle, the kidnapping and murder of inal complaint, and an investigative;magistrate was assigned Moroccan opposition leader Mehdi Ben Barka, and the assassi­ to probe the complaint. After nearlytwo years, themagistrate nation of the Belgian Congo's Patrice Lumumba, are attempting recommended against prosecution: on the grounds that he to subvert the current French presidential elections. had turned up no evidence of any kirid of criminalmisconduct The vehicle for this attempted intervention is a wild slander on the part of the accused Schiller Institute officials. But the campaign against one of the nine certified presidential candi­ French prosecutor's office appealeq against the magistrate's dates, Jacques Cheminade, a longtime associate of American recommendations, and the case went to trial. political economist Lyndon LaRouche . Cheminade sent shock Because of the sub judice nature of the proceedings, few waves through the French and British political establishments further details can be provided at this time; however, when when he presented more than the 500endorsements from may­ the full details are released, it will be clearthat theplaintiffs , ors across France. that were required to gain ballot status in the along with key figures within the French media establish­ first round of the presidential vote, scheduled for April 23. ment, grossly violated French legal standards by spreading Even before the French National Election Board formally false information about the internal features of the case. It certified Cheminade's petitions and placed him on the ballot will also be clear that the original investigating magistrate 's on April 7 , there were clear signs that at least one high-ranking assessment-that there was no basis for criminal prosecu­ government official, Prime Minister Edouard Balladur's ra­ tion-was correct. bidly anti-American Interior Minister Charles Pasqua, were It can be said, in addition, that when the case went to trial upset at the prospect of Cheminade being in the race. At a in 1992, the deceased woman's relmives admittedunder oath Cheminade press conference in the Bordeaux region on April that she had continued to drive her own car in and out of 5, two Interior Ministry police showed up to "observe" the Paris , and had managed her own financial affairs right up proceedings. In the past, Pasqua's ministry has served as a until the time of her final illness . Despite this testimony , on conduit for Bush-era U.S. Justice Department slanders June 24 , 1992, the 12th Chamber of the Paris CriminalCourt against LaRouche, slanders that often originated with the found Cheminade and three other friendsof LaRouche gUilty Anti-Defamation League of B 'nai B'rith (ADL) or the Cult of "theft." The court imposed stiff fines on Cheminade, Awareness Network, both U.S.-based groups heavily con­ Christine Bierre, François Bierre , and ■■■■■■■■, and imposed taminated by organized crime . Pasqua is himself on the board suspended sentences of 13-15 months in jail . According to of advisers of the ADL's French affiliate , LICRA. news accounts , the next stage in the case, which is before an Following the Cheminade certification , slanders began appeals court, will be a hearing on May 9. appearing in French news outlets, accusing both Cheminade and LaRouche of being "thieves" and "criminals." Lemarchand behind the scenes A review of the background to those slanders churned up The attorney who represented the family, the plaintiffs in over 30 years of British-directed high treason against the the criminal case, Pascal Dewynter, is a longtime protege French and American republics, and places Pasqua in bed and onetime law firm associate of one of the most pernicious with a crew of thieves, criminals, and spies. figures in postwar French history , Paris lawyer Pierre Lem­ The "theft" allegations trace back to an early- 1990s effort archand. It is the Dewynter-Lemarchand connection that to frame up Cheminade and prevent him from running in the casts a clear light on the forces both inside and outside of 1995 presidential elections . In October 1986, a longtime France that are out to poison the Cheminade campaign. supporter of the French branch of the Schiller Institute passed Lemarchand was nominally one of the leading "insiders" away. After her death, members of her family charged that in the camp of President Charles de Gaulle. His wife, Mi­ she had been suffering from Alzheimer's disease during the chelle LePercq, was the daughter ofEmile LePercq, the inte­ period of her collaboration with the institute, and that she rior minister in de Gaulle's 1944 provisional government.

EIR April 21, 1995 Feature 27 with an open insurrection by elements within the French military and security services, who created the Secret Army Organization (OAS), with backing from the British and from British-contaminated right-wing networks inside the U.S. intelligence services that were Involved in the Kennedy as­ sassination. Lemarchand was brought in by de Gaulle's InteriorMin­ ister Roger Frey to create a "Gaullist" counterforce to the OAS, which came to be known a� the "barbouze" ("the beard­ ed ones"). During a short perioii of time in the early 1960s, Lemarchand recruited 300 hood urns andmercenarie s, many of them his legal clients, to the barbouze. Among the Lemar­ chand recruits were Joe Attia, obe of France's top gangsters; Georges Figon; mercenary Julien Le Ny; and Christian Da­ vid, later to become a heroin loid in the French Connection. It was this gangster apparatu� that delivered a devastating blow to President de Gaulle's dfforts to forge closer ties to West German Chancellor KonrJd Adenauer by carrying out the Feb. 25 , 1963 kidnapping� of Colonel Argoud on the streets of Munich. It was one o everal such actions carried out behind the back of Genera de Gaulle. Argoud was an Jacques Cheminade is interviewed by reporters aft er the offi cial OAS figure implicated in one of the failed assassination tries certification of his candidacy . The media are running a wild against the French President. T e kidnapping, orchestrated slander campaign against him, on orders from the top ranks of the international oligarchy . by Attia on behalf of Lemarcha d and the barbouze, blew up in the face of de Gaulle, and cn�ated deep strains in Franco­ German ties-all to the benefitd f London, which was at that When Emile LePercq died in a car crash, Mme. de Gaulle moment desperate to bust up an �merging American-French­ adopted Michelle as if she were her own daughter. German-Vatican collaboration. But Lemarchand exploited that "insider" position to fill the Gaullist ranks with an army of criminals and mercenaries The Ben Barka affair who worked to destroy de Gaulle's presidency through a But by far the heaviest blo I to President de Gaulle was series of high-profile scandals at crucial moments during delivered on Oct. 29, 1965, w�'en a team of Lemarchand's the 1960s. In this respect, Lemarchand played a far more barbouze kidnapped Moroccan pposition leader Mehdi Ben pernicious role in destroying General de Gaulle than did Barka in Paris. Ben Barka was n9ver seen alive again, and the all of the Secret Army Organization hit squads that tried scandal that ensued--<>ne week before President de Gaulle's repeatedly throughout the early 1960s to assassinate the announcement that he would ru� for reelection-marked the French President. Moreover, a profilingof the gangster appa­ beginning of the end of Gaullis�. ratus built up by Lemarchand betrays numerous links to the At the time of the Ben Barka kidnapping, the Moroccan very OAS anti-Gaullist apparatus he was ostensibly fighting. opposition leader, who had perJonally received the Legion Lemarchand was part of the rabidly anti-communist para­ of Merit from General de Gau1l1 for his wartime activity in military group Volontaires de I' Union Fran<;aisein the 1950s, North Africa, was in secret negotiations with Morocco's during which time he consolidated long-standing contact King Hassan to forge a nation�l unity coalition. This was with key figures in the French and French colonial under­ consistent with President de Gatille's decolonization initia­ world, a gangster apparatus centered out of Marseille and tives in Francophone Africa. H wever, Moroccan Interior­ Tangiers with close ties to the international crime syndicate Defense Minister Oufkir, alo�g with Lemarchand, top of Meyer Lansky et al. The Lansky organization in turn SDECE (France's equivalent of the CIA) officials, Frey, and played an important, albeit subsumed role in British intelli­ several other French cabinet officials, had other plans. gence's Permindex international derivative assassinations Three of Lemarchand's top bkbouze recruitswere indict­ bureau-the apparatus implicated by New Orleans District ed and eventually convicted of th� Ben Barka kidnapping and Attorney Jim Garrison's probe in the 1963 assassination of presumed murder. They were all partof the Attia crime syndi­ President Kennedy. cate. One of Lemarchand's clients and longtime personal 1 friends, Georges Figon, who per onally set up the abduction The 'barbouze' of Ben Barka, was murdered s� ortly after the kidnapping In 1961, when President de Gaulle launched his decoloni­ when he threatened to crack and spill the beans on the other zation policy, beginning with Algeria, he was confronted conspirators . Figon's assassination was apparently carried

28 Feature EIR April 21, 1995 out by Christian David, another Lemarchand recruit to the work. Kissinger wrote a letter demanding Legros's release barbouze. as a "private citizen," although at the time he was serving Due to political protection, Lemarchand was not himself as both national security adviser and secretary of state to indicted in the Ben Barka case. However, papers found in President Nixon. The case against Legros was eventually Figon's briefcase after his death showed that Lemarchand was dropped in 1977, after two crucial witnesses were murdered deeply involved in the plot, and was probably the hands-on and others disappeared. coordinator, according to several published accounts of the In addition to Lemarchand's links to Legros, evidence murder conspiracy. He was disbarred for three years for his also surfaced during the 1975 Church Committee hearingsin involvement in the obstruction of the prosecution. the U.S. Senate on the CIA that two of Lemarchand's key De Gaulle personally condemned Lemarchand, Frey, and barbouze hit men, Joe Attia and Christian David, had also top SDECE officialsfor the Ben Barka murder, and he charged been on the payroll of the CIA. Bot!h men were contracted that members of his own cabinet had "taken him for a fool." to assassinate Congolese leader Patrice Lumumba (although But the damage was done. In the 1965 presidential elec­ other CIA-dispatched hit teams accomplished the murder) . tions, the Gaullists lost their majority in the National Assem­ bly, and de Gaulle himself saw his popUlarity shrink. The The Permindex factor 1965 elections helped launch the political career of Fran<;ois There are many unanswered questions about the Lemar­ Mitterrand. The scandal surrounding the Ben Barka case lin­ chand circles' links to the Kennedy $sassination. Before his gered into early 1967 , accelerating the death of Gaullism. death several years ago, the Americjm lawyer and Kennedy assassination researcher Bernard Fensterwald was pursuing A prescient earlier warning leads on several French mercenaries. who were in Dallas the It is now known that in April 1961, President de Gaulle day of the Kennedy killing. Lemarchand recruit and French sent a confidential personal letter to President Kennedy , Connection heroin trafficker Christian David was alleged to warning him that the same people who were behind the OAS have intimate knowledge of the role of these French hit men; had also betrayed the American President in the Bay of Pigs and documents still classified in the FBI and CIA archives fiasco. It was a prescient warning, and the immediate conse­ could possibly shed further light on this aspect of the case. quence of the communique was a warming of relations be­ Certain facts, however, are clear. New Orleans District tween the two Presidents . Attorney Garrison established a hard chain of evidence link­ Just how prescient a warning it was may never be fully ing the Montreal, Canada-based Permindex (Permanent In­ known. However, numerous details have come to light in the dustrial Expositions) British intelligence front to the Kenne­ intervening decades that point to links between the OAS and dy assassination. Although Permin!1ex board member and both the Lemarchand barbouze networks and the Permindex New Orleans World Trade Mart d�rector Clay Shaw was apparatus that assassinated Kennedy. acquitted of charges that he conspired to kill the President, One of the most bizarre leads suggesting much closer crucial suppressed evidence showed that Shaw peIjuredhim­ ties between Lemarchand's dirty networks and the killers of self to avoid conviction. Kennedy centers around one of Lemarchand' s most contro­ A Shaw conviction would have placed the Permindex versial clients, a Swiss-based arms and art dealer named organization under an international spotlight, not only for the Fernand Legros. According to published accounts , Legros Kennedy murder. In 1967, President de Gaulle had expelled was the homosexual lover of the late United Nations Secre­ Permindex from France, and Frencb and Canadian newspa­ tary General Dag Hammarskjold. Legros was scheduled to pers had extensively documented Permindex' s links to the be a passenger aboard the plane that crashed and killed Ham­ OAS hit squads . Permindex fun

EIR April 21, 1995 Feature 29 streets . Alain Madelain, a me,ml"lp.r of the Mont PelerinSoci- ety , is the minister for in the current government . and functions as Chirac's adviser. He is the main supporter of Chirac outside RPR. Profiles: the other Edouard Balladur (RPR): This former adviser eight candidates to President Georges Pom­ pidou (President 1969-74) by Emmanuel Grenier was also economics and finance minister from 1986 Most unusual for a French presidential election, there are two to 1988 in the government candidates from the same party, the Rally for the Republic led by Chirac . His father (RPR)-the party which purports to be in the tradition of was the president of the Ot­ Gen . Charles de Gaulle. Jacques Chirac has been the head of toman Bank. A thorough­ the party since 1976. It is he who pushed Edouard Balladur going anglophile, Balladur to become prime minister in 1993, after the RPR victory in was responsible for bring­ the parliamentary elections. Chirac has the support of the ing England into the European , duringhis years political machine of the RPR, but Balladur has the support in the Pompidou adlTIlIlIstratl . Today, as the acting prime of the other right-wing party, the French Democratic Union minister, his monetarist policy a "strong franc" has led to (UDF), which favors the British free-trade system, the Gen­ disastrous results for the industrial sector. Because eral Agreement on Tariffs and Trade (GAIT), and the Maas­ he calls that recession a "recovery ," he vows today not to tricht Treaty of European Union. Balladur also has the sup­ change that policy, but on the to continue it. Bal­ port of Interior Minister Charles Pasqua, who belongs to the ladur tries to give himself an organized crime-linked networks of alcohol producer Paul plaining that there is no "V'.UlIV\I Ricard. Pasqua, supposedly Chirac's best supporter, shifted as opposed to Chirac , whom helac1cw;es his support to BaI1adur last year, giving as an explanation Lionel Jospin (Social­ that Chirac was a loser. ist Party): Although he is Jacques Chirac (RPR): generally considered an Twice prime minister (in honest man, among the 1974; with Valery Giscard successive scandal-ridden d'Estaing, and in 1986 with Mitterrand administra­ Fran<;oisMitterra nd) , Chir­ tions, Jospin has had a very ac has never maintained a weak point: He refuses to clear policy line. After be­ address the fact that Social­ ing called a "social Gaull­ ist policies have made ist" in the 1970s, and France a paradise for spec­ Thatcherite in the 1980s, he ulators, while destroying now vows to push again for the physical economy. The jJV" ""_" "social policies." He claims Mitterrand's last Socialist that he is out to defend the "real economy" from the "virtual suicide in May 1993-were economy" and to "put man back at the center of economic and trade. Nevertheless, Jospin has """ M'"'' , social choices." But he will not commit himself to break with the financial derivatives the internationalfina ncial institutions, such as the Internation­ a proposal for taxing them. H al Monetary Fund, that are destroying the economy of France 0. 1 % tax on these markets. But I and other nations. In 1986, his agriculture minister, Fran<;ois speculative instruments. Guillaume, proposed an interesting "Marshall Plan for Afri­ idea, circulated at the U.N. 's ca," but Chirac wanted to keep that project in the framework earlier this year, of using the nrr.rp,,,,I1< of the World Bank and of the International Monetary Fund. the U.N. 's world government",i.,G r.,tin,,,o His record as a mayor of Paris reveals his real nature . His Philippe de Villiers for Values): De ViIIiers is policy of giving a free hand to real estate speculators, to make the operative of Anglo-French \-,".l1v" au Sir Jimmy Gold­ Paris a second City of London , has resulted in the destruction smith , with whom he took in the last elections to the of beautiful buildings dating back to the 19th century, and in European Parliament. Along Lord William Rees-Mogg, a situation where Paris has now 3 million square meters of the foreign editor of the London , he proposes to create empty offices and more than 50,000 persons living in the a European free-trade zone, the Third World die.

30 Feature EIR April 21, 1995 He has adopted an anti-GAIT and anti-Maastricht stance written by his arch-enemy General de Gaulle in 1958, and to to capitalize on populist rage against the austerity policies go "toward a Sixth Republic." He is also the proponent of enforced by these institutions. He vows "to bring the Brussels radical free-trade measures, like "tax-free zones," and mas­ [European Union] technocrats to heel," just as the populists sive deregulation of public services. He never attacks the in the United States are "fighting Washington." Like his international financial institutions, and supported most of the mentor and money-bag Goldsmith , Villiers is a rabid oppo­ policies of George Bush. Promoted by Mitterrand during the nent of nuclear energy and of state intervention in the econo­ 1980s to steal some votes from the right-wing parties, Le my . He supports the privatization of EDF, the French state­ Pen's star is now on the wane. run electricity utility. He claims that the solution lies in a Robert Hue (Communist Party): Despite the collapse of decentralized program of "regional economies." communism in the Soviet Union and eastern Europe, the Arlette Laguiller (Lutte Ouvriere-Workers' Strug­ Communist Party machine is still very strong in France. They gle-Fourth International): A life-long employee of the bank managed-barely-to maintain a parliamentary group in the Credit Lyonnais, this Trotskyite is campaigning for the fourth National Assembly and the Senate. But they are losing, little time, with a program which has not changed much. This is by little, their strongholds in the cities and regions. After the the first time, however, that she has been promoted by the death of the Soviet Union, the Communists changed their news media. Nobody has attacked the functioning of her Stalinist program. Their vote is essentially a protest vote, as party , which is a clandestine operation without an address. they propose nothing to solve the injustice they so vociferous­ Given the decline of the Socialist Party and the relative stabil­ ly denounce. ity of the Communist Party , Laguiller is expected to gamer a Dominique Voynet (Greens): The Green movement, higher vote than usual: She is given 5% in the polls, while which reached a high vote of 14% during the last regional she received only 1-2% of the vote in the last three elections. elections in 1992, was then tom apart by warfare which Jean-Marie Le Pen (National Front): An avowed admir­ erupted among its leaders. Divided into three groups, they er of the fascist economic policies of Friedrich von Hayek, are disappearing from the French political scene. Among the Le Pen is in the race to try to focus the anger of the French three, only Voynet managed to get enough signatures to run population against immigrants. Unemployment, drug smug­ for the Presidency. Brice Lalonde, former environment min­ gling, crime-ridden cities, lack of decent homes-everything ister in the Mitterrand administration, and Antoine Waechter, is attributed to the immigrant population. France has 5 mil­ former presidential candidate for the Greens, had to drop out lion immigrants, mainly of African origin, out of a popula­ of the race. V oynet is presenting a program mixing radical tion of 65 million, and 5 million French citizens are offoreign Green environmentalist measures with extreme-left pro­ origin. Le Pen promises to "send 3 million people back home grams. She is promoting the standard litany of one-worldist in seven years." He also wants to change the Constitution themes and is very favorable to the United Nations. �;oordinafiDII .28 RURALE

-' _NOlWi . l: PICa

Farmers demonstrate against the fr ee-trade policies of the General Agreement on Tariffs and Trade (GATT) in Stra.sbourg, France, in December 1992 . Some of the candidates in this election are tryingto capitalize onferment against GATT, while Edouard Balladur is a staunch supporter of the British system .

EIR April 21, 1995 Feature 31 out confronting this dictatorship is a fraud. Cheminade's Program This dictatorship is also an intellectual one. It claims a monopoly over thought, and everywhere creates the obses­ sion with gambling and speculation, and the lure of immedi­ ate gain, which are degrading and destroying human labor. The insane speculation in derivatives, the drug traffic, and the real estate casino are at the heart of this system. 'We change I know that several years ago, you did not believe me . must Now, with what is happening around the world today-the of the crash of Mexico, of Barings, of American cities-and here therules game' at home-the fall of Credit Lyonnais, the morality revealed We reproduce here in translation excerpts of the program by the Tapie Affair or by the Grenoble administration-you issued by Jacques Cheminade. The program, like those of know we cannot continue this way. Whoever does not start the other presidential candidates, has been mailed at gov­ by attacking the enemy, condemns his country to impotence ernment expense to the 40 million households of France's and to the loss of its soul, and delivers it over to ideologies eligible voters. of Blood and Soil and Race. That is why we must change the rules of the game. This presidential election is taking place at a tragic moment in our history, in which we confront world financial cata­ clysm. This ought to provide the occasion for redefining the II. A new program fo r peace, role of France, creating a basis for great projects to rebuild the world. growtb, and jobs I am the candidate, the only candidate, committed to this purpose. France in the year 2000 is not a vision of misery, but an The other candidates are lying, or lying to themselves. outlook of growth, of the launching of discoveries for the I, on the contrary , begin from this fu ndamental reality: A common good. We can and must think on a grand scale. . . . speculative cancer is proliferating in the world and destroy­ For that, it is necessary to take up a great fight against ing the body of the economy. We are in the midst of a injustice. France and Europe must enter the lists in two caus­ depression. es: the battle against poverty and unemployment, and the The question to ask-the question the other candidates struggle for international peace. These two causes are indis­ do not ask-is the following: Can we put in place a viable solubly linked, because the driving force for peace can only economic system which will prevent the unraveling of the be mutual economic development-and that is the only social fabric, the disintegration of our representative system source of employment. of government, and the devolution into war of a world whose To establish the new rules of the game, I propose the economy is contracting? following commitments: My answer is "yes." Yes, on condition that we do three • Eliminate the financialcancer and set in motion a new things: Identify the enemy; fight for a new program , and East-West and North-South Marshall Plan, redirecting mon­ organize a resistance against the enemy . ey flows into infrastructure and production. • To do this, we must put !into orderly bankruptcy the agents of the international mo�etary and financial system I. Identifying the enemy who are already bankrupt in faCt. In any case, the present system is in the process of foundering: We must act before People would have us believe that there exists a supreme the chaos of its collapse irrevoc�bly ruins the economy. entity called "markets," to which we must submit, because • This approach presupposbs that the state has retaken that is the natural state of society. Nothing could be further control of credit and the coining of money. France must from the truth: The markets have a face. It is the face of the spearhead a European effort to teestablish the initiative, the oligarchy , of the City of London and Wall Street, of the power, and the dignity of the state, which today are a laugh­ American Federal Reserve and the International Monetary ingstock. Fund. The outposts of their policy domestically are the Trea­ • A Franco-German allianqe (on condition that such an sury, the Banque de France, and the incestuous little world alliance breaks with the monetarist control of the Bundesbank of finance, of cabinet ministers and the pen-pushing Court and the Banque de France) must constitute the pointof depar­ journalists. This financial dictatorship is the cause of the ture for fighting this battle-it Qlust do so by adopting com­ unemployment. To pretend to combat unemployment with- mon scientific, infrastructure, aridindustrial policies, and the

32 Feature EIR April 21, 1995 new Marshall Plan as the outlook and direction for Eurasia Peace Plan, mobilizing French technologies to relieve the and Eurafrica. . . . shortage of usable water and to m*e the desert bloom. • A common defense based on the application of new physical principles, a space policy, and a massive effort in Domestic policy public health-man himself is the frontier of life-must • With the European framewor� and the anti-monetarist lead to productive spinoffs in the civilian economy, with foundations we have defined, and only with them, an increase all their multiplier effects. We trace three paths into the in wages in France becomes not onl}'!possi ble, but necessary. future: long-distance action by way of, e.g., lasers, particle­ It is absurd to say that it was inflated salaries which caused beam weapons; the fightfor life , in particular strengthening the unemployment! A Europe in w�ich rates of unemploy­ the immune system, and mastering the science of the life ment and indebtedness grow simulJtaneously, in which the of the cell; and the production of energy at lower cost and interest rates grow more rapidly tij.an productivity, and in without waste (controlled thermonuclear fusion and super­ which the revenues of capital are decontrolled-untaxed­ conductivity) . while those of labor are ground down, is a Europe which is For the debate on "management," we must substitute in being backed against the wall. our country once more a debate on ideas, a real debate on the It is absurd to pretend that it is necessaryto reduce social goals of policy and politics. To do that, it is necessary that entitlements and retirement benefitS, when the real cause of we be honest with ourselves and stop tolerating the intolera­ the "hole" in social security is the fact that, for 20 years, the ble, both in our foreign policy and our domestic policy. total salaries of society, upon which the financing of social security depends, have been reduced. We have indeed been Foreign policy too generous-but too generous tO ifinanciers' income! It is • Break our new Entente Cordiale with the City of necessary, with a bold policy of renewed economic growth, London. We cannot pretend to be a republic at the same to return to a social policy which prpvides housing, doesnot time that we strike a pact with an oligarchy which is ruining exclude people from its benefits, �d provides aid to the its own country. We cannot defend world peace and at the family. same time ally with the party of financial warfare. • National education must respect and heighten the cre­ • Stop our sinister complicity with the policy of geno­ ative powers of children, in enabling them to relivethe great cide in Bosnia, masked by a "humanitarian" hypocrisy. Here moments of our history and the great discoveries of our schol­ I undertake a four-point commitment: lift the siege on the ars and scientists. The effort of s4hool and business must cities and towns of Bosnia-not only Sarajev�including be coordinated so that this creative capacity nourishes the by force, if necessary; maintain the territorial integrity of economy. Bosnia-Hercegovina; prevent the dismemberment of Croa­ • We must put in place a real :policy of land-use plan­ tia; and try those responsible for genocide. It is false to say ning, and not a caricature of a policy. That means taking a that we have no military means for imposing a just peace, cartographer's approach to France+-evaluating it by square and unacceptable to permit ourselves to be blackmailed. kilometer, by household, and by inl1abitant-an approach in . . . Finally, the essential thing: All the states of former which everything proceeds in the Same spirit, if not in the Yugoslavia-including Serbia-would benefitfrom a Euro­ same way. peanreconstru ction. That is the dimension missing from the • We must organize a renais$ance in the countryside great projects of the Delors Plan. and, in the context of the new Matshall Plan, a new world • Put in place a commission of inquiry on Rwanda, to food policy. It is insane for Euroge to impose a policy of bring to light those people at home and abroad who are ploughing land under, when hundreds of millions of people ' responsible for the genocide, notably English and French need food. nationals. • Yes, fiscal reform is necess�-but to favor produc­ • Redefine France's policy in Algeria and Lebanon­ tive investment and to tax the reve$ues of financierincome , in Algeria, by supporting the peace plan defined by the not to stop taxing most securities and to deregulate their democratic forces and "Islamist" patriots; in Lebanon, in operations. A single European copntry can't do it? That's demanding an end to the double occupation, Syrian and true; if it tried, money and investment would simply go else­ Israeli. where. That's why a policy involv�ng all the member coun­ • Redefine our African policy, from the perspective of tries of the European Union . . . mustcarry out this reform, a cooperative accord with the Mandela governmentto devel­ in a concerted effort. ! op the entire continent, inasmuch as Mandela leads a country In brief, the choice is simple: Do we want to continue to whose resources are sufficient to undertake this effort with allow the financialbubble to inflate,i and in so doing to destroy us. our social fabric, or do we want tq do the opposite-invest • Support with real financial assistance the Mideast in production and labor?

EIR April 21, 1995 Feature 33 m. Recreating debate on ideas, arousing a Resistance

We must stop the drift toward a dictatorship of opinion, the bludgeonings of television, under the control of the "mar­ kets," and the generalized poll-taking, pollsters' mania. In a 'Let's put space word, we must create free citizens for the common enterprise on horizon' which alone can open the future to us. back the' My objective is to bring about a rebirth of representative Jacques Cheminade is the only Hench presidential candidate democracy capable of reestablishing the principle of the par­ promoting an ambitious space program. Europe should be ticipation of each in the elaboration of policies for all, giving part of a vast Moon-Mars proje¢t, he says, in a campaign each his part to play in the overall growth and experience of pamphlet devoted to organizing $Upport for such a program. our time. Exploring and colonizing space is one of the grand adven­ To do that, we need men of resolve, of daring, of fore­ tures for humanity that Jacques Cheminade proposes in his sight, who reject impotence and who reestablish, through platform, both as a means of stimplating new discoveriesand their struggles, respect for policy. of overcoming the economic cri�is here on Earth. The other I propose some exemplary ways for freeing ourselves candidates, when they are not iideologically anti-science, from the misery of our civic life: seek only immediate advantage$ in having access to space • Fighting against the ideology of immediate success, of (telecommunications, industrialization in micro-gravity, the selection and survival of the fittest and the exclusion of etc.). They lack any long-term $trategy for conquering and the weakest, by enhancing the creative powers of all and developing outer space, althougij only such an approach can rediscovering the harmony between the conscience of the awaken the enthusiasm of the MPulation and get crowds of individual and the common good; people pouring into the space 4;enters today, just as they • Defending our republican principle of secularism . . . turned out en masse in the 193Ps to meet Mermoz, Saint by enrichment at school through contact with religious and Exupery, and other heroes of the! firstpostal flights. humanist experience and tradition. The difference should As Cheminade notes in the IVery beginning of his plat­ inspire more curiosity than fear, if fundamental values are form, only an economic policy fr¢eof monetarism and unbri­ shared; dled liberalism, could generate the resources necessary for • Reestablishing the deliberative powers of the National an ambitious space program, an lindispensable key to future Assembly and the Senate ...; growth. In times of austerity an� crisis management such as • Reinforcing the power of the judiciary in its legitimate we have now, it has no chance. I functions, but not permitting it to go beyond them. We need First of all, writes Cheminade, France would need to citizens' justice, inasmuch as our system no longer respects reestablish the momentum of the space program of the 1960s, the principle of equality before the law: Our system is too when clearly defined medium- and long-term objectives slow , too remote , too expensive, and too dependent on the served as a general orientation !for all space activities and state and the media. It is necessary to ensure the application of were maintained, in spite of temtmrary setbacks or the argu­ existing law and procedures ...then reinforce the methods. ments of those for whom Europe was doomed to remain a minor actor in space. The Arian¢ rocket was the product of this voluntarist approach, which ihas since been lost. IV. Mobilization In 1986, Europe adopted a Ifour-point program in The Hague, which would have put , the continent on an equal I know that a tiny minority of Frenchmen, entrenched footing with the United States anellthe U.S.S.R. The program placeholders, accuse me of being an irresponsible utopian. I included the heavy launcher Ari�e 5, the space plane Herm­ answer that, on the contrary, it is their figures and calcula­ es, which would have insured Eutopean autonomy in manned tions which are worth nothing, absolutely nothing: A breath flight and interventions into orbi�, the APM Columbus mod­ of crisis-an increase in interest rates or rates of exchange­ ule, which was to be hooked up to the future American space is enough to wipe out all their value. To be utopian-that's station, and the autonomous mOdule MTFF as a first step to speechify on the bridge of the Titanic. toward a totally independent spafe station. My commitment is to draw our country toward the most Since then, writes Cheminade, the programs were audacious choices, because today those are the most reason­ slashed one afterthe other, for fi�ancial reasons and because able choices. It is thus that we may find once more , I hope, of a lack of coherence. Hermes �d Columbus should have that enthusiasm which is love of beauty . been presented, he argues, as the first indispensable steps

34 Feature EIR April 21, 1995 within a broader framework of an ambitious plan for conquer­ ing and industrializing the Moon and Mars. The absence of such a plan led the political leaders to adapt to what they conceived to be "financial realities." The only remaining element from The Hague program is the Ariane 5, which survived because of its usefulness in launching commercial satellites. The consequences have been dramatic: the loss of I ,500 jobs for highly trained space engineers, the splitting up of teams that will never be rebuilt, an enormous lack of knowledge in key sectors , such as mod­ elling hypersonic aerodynamics at Mach 25 , heat-resistant ceramics at extremely high temperatures (up to I ,600°C), and experience with manned flight. The next decisive point will be the European Space Agency conference which is to take place in October in Tou­ louse. France should insist that the decisions taken there not only keep open the European perspectives for manned flight, but also and especially redefine a long-term perspective to break with the present financialnarr owness.

Immediate requirements In the short term, Cheminade proposes that Europe should roll up her shirt sleeves and start to build: • A heavy launcher more advanced than the Ariane 5, which is not able to carry the necessary amounts of tonnage for a serious effort at space exploration. • Prototype engines based on new physical principles (methane, nuclear, ions, thermogenics). France should ur­ gently go into the space nuclear sector, favoring nuclear thermal propulsion and nuclear electric. • Orbiting space stations, of at least three types. First of all, automatic mini-stations which can serve as platforms for The Ariane 4 rocket. The Ariane program was the product of the communications and as testing and training centers. Next, a vigorous space program of the 1960s, whose momentum has now been 10SI. Cheminade is the only candidate callingfo r an true poly technical center for research, education, and indus­ ambitious space effo rt into the next century. trial production in micro-gravity should be set up. Tremen­ dous leaps in productivity are to be expected in the science of materials (crystallography, metallurgy, electronics) and would require 350 billion francs over 20 years. This invest­ extraordinary progress will be accomplished in the life sci­ ment will not be lost; it will mean skilled jobs, new centers ences, both pharmacology and chemistry . A third type of of production, and especially new technologies, which will station, a bridgehead, should be associated with the multi­ transform the very structures of the economy (it has been purpose station just described, to go from the Earth's immedi­ calculated that for the American Apollo program, every dol­ ate environs to interplanetary space. lar invested gave back $10 to the economy). • A third-generation space plane, fully recoverable, Cheminade stresses the profound cultural changes that an would give quick and regular access to low Earth orbit and ambitious science program would instigate, as opposed to could transport some tens of men and women to the space the no future outlook of youth today: . stations, as well as equipment. "Knowing that we are preparing to conquer, to subdue, Without the combination of these four factors , states Che­ and to populate the unknown, challenges moral pessimism minade, Europe will not be in a position to industrialize the and instills in man a sense of creative optimism. In this Moon and Mars. sense, knowing that we can act to expand the limits of human Starting today, the European Space Agency member science and actions while at the same time ensuring a decent countries should commit themselves to investing in manned standard of living for all of humanity, comes back to the flight control at the very minimum 250 billion francs over 15 same principle: Man is truly man when he strives to put his years ($50 billion), which means for France 5 to 7 billion own action in harmony with the scientific and moral laws of francs. As for the Moon and Mars program, the first step the universe."

EIR April 21, 1995 Feature 35 ciple: the idea that a voluntarist policy is possible to de­ velop the human being, instead of sustaining the financial bubble ....

Le Figaro, "Jacques Cheminade Does Not Mince Words," The press reportson April 12: Publishing a picture of CheI1llinade holding a copy of his Cheminade's policies book on Jean Jaures, the daily quotes him saying that it is the Here is a sampling of excerptsfr om some of the more interest­ "financier-rentierwho causes un!!mploymentand no growth. ing international press coverage of the Cheminade cam­ We need to revive the system that prevailed under Louis XI paign. For an analysis of the source of a barrage of slander­ and Colbert." ous coverage, see the article on p. 27. "More than 600 or 700billion francs circulate on the financialmark ets, but only 0. 1 % correspondsto real produc­ France tion of goods. Money is chasing money," Cheminade ex­ Le Monde, interview, April 12: plained, calling for "the internat.onal system of financeto be Jacques Cheminade ...denounces the "financialcancer put through bankruptcy. " which is destroying the world economy," supports "a new Advocating a strong role for the state in monetaryaffai rs, Marshall Plan vis-a.-vis the countries of the East and of the and the returnof the Banque de Hance to the role of a national South," calls for the constitution of a "republican front" and bank that is not artificiallyindependent fromthe government, intends to "introduce a certain conception of transcendence Cheminade told the intervieweI1, adding that he would not in politics." ... rule out calling on his supporters to vote for Socialist Party Q: How did you get the 500signatures for your candida­ candidate Lionel Jospin in the $econd round of voting, but cy, when Antoine Waechter [of the Green party] did not? only on the condition that Jospiq put "a tiger in his tank." JC: Beginning in September, we contacted rural mayors ,

sending them a preliminary platform, in which I denounced Bosnia i the financial cancer which is destroying the world economy Faris Nanie, secretary general, !party of Democratic Action and tried to demonstrate its effects in France on local and (SDA) of Croatia; general manager, TWRA Press, Bosnian regional life. The mayors read it and thought there was per­ press agency based in Zagreb: i haps a relationship between desertification and what is hap­ "The presidential elections � France are followed with pening in the world [politically] . I explained that it was neces­ great interest in Bosnia, due to tbe fact that the French policy sary to fight against this logic, for a policy in which the state toward Bosnia so far has been i estimated negatively. It is takes control of currency and credit, to launch a new Marshall widely considered that the French attitude has been verypro­ Plan vis-a.-vis the countries of the East and the South. Many Serb and that it has been mainly following the British line in �ere interested in this approach. Little by little , I saw the the spirit of the so-called Entente Cordiale. In relation to signatures coming in. I increased my work at the grass roots, that, people mention the year 1914 and the assassination of and I finally ended up with 556 commitments . I have always Archduke Ferdinand of Austria in Sarajevo, which sparked thought that, in a period of crisis, it would not be Paris the first world war. Some coincidences with old alliances in notoriety which could change things. Europe , on the basis of the so-called geopolitical interests Q: Are you on the leftor the right? and balance of power, are alsoi noticed. One of the major JC: The leftand the right have both pursued a monetarist remarks is that French policy al� helped transformthe Bos­ policy which I reject. Personally, I think the terms left and nian problem, first, from aggr¢ssion to civil war, despite right don't have any meaning, because of the [behavior of all relevant Security Council r¢solutions and international the] left or the right. We need a different policy. We need a recognition of the state; second" from an eminently political "republican front" outside the extremisms which endlessly problem to a humanitarian issuf; and third, from the legal repeat their obsessions and monstrosities; but one cannot and political problem of the genocide committed against the have this front if one harbors sympathies toward England and Bosnian population into legally lundefined ethnic cleansing. Louis-Napoleon Bonaparte . The Entente Cordiale with the All this ends with maintaining th� status quo which is: perma­ British financial milieux is diametrically opposed to the re­ nent occupation of more than 60% of Bosnian territory, con­ publican front. This Entente Cordiale has dictated the policy tinuing genocide, and preventil/lg the victim of aggression that the Balladur government has fo llowed, especially in from defending itself because the illegal arms embargo is Bosnia, where we have had an indefensible policy. maintained, which is supported by France, too. On the political chessboard, we need a front which brings "Therefore, the presidentia� candidacy of Mr. Jacques together the tradition of humanist socialism represented by Cheminade has been received With sympathy, for he is the Jaures, the tradition of ...de Gaulle, and the tradition of only candidate who included the problem of Bosnia in his social Christianity. These traditions have a common prin- presidential program, by propo�ing the only possible-the

36 Feature EIR April 21, 1995 principal-solution. This solution should have strategic im­ "I was born in a country where, to a certain extent, there portance for the whole region of the Balkans. First of all, it is a complete mixture, a melting pot. One is the child of advocates cessation of aggression on Bosnia and complicity one's works and not, as Rabelais said, of the four legs that in genocide by supporting the peace process which rewards conceived one. One is the offspring of culture," says Che­ the aggressors and perpetrators of genocide. This should be minade. "When I walked in Buenos Aires, besides me there followed by organizing a fair trial of the responsible individu­ were Turks, Lebanese, and Jewish friends from Central Eu­ als, political and military figures. Secondly, it firmly sup­ rope , who had sought refuge in Argentina." ports preservation of the territorial integrity and sovereignty As to his relations with Lyndon LaRouche: "I have know of Bosnia and demands that all states in the region of former him since 1975. I feel close to what he stands for, not what Yugoslavia, including Serbia, be recognized and included the reporters claim. He is the enemy of the Anglo-American into the future European reconstruction program, which is order. The man who said no to the policy of a British oligar­ very important, for this is the only way to achieve the durable chy that contaminated the United States-a policy which and just peace in the Balkans, i.e., in Europe." says that the poor should stay poor and that the only things that matter are the interests of the whites. That's the policy Argentina of [Argentine Finance Minister] Domingo Cavallo and of his La Nacion, interview, "I Fight the Oligarchies Such as That predecessor Martinez de Hoz. LaRouche and I oppose the of Minister Cavallo," April 1 2: same thing, that is to say ... the oligarchy. The hatred This interview, like other coverage in the Argentine against LaRouche is because of the creative capacity he dem­ press, stresses the fact that Cheminade was born in Ar­ onstrates. That is what the new Conservative Revolution in gentina. the United States-the new fascism, Gingrich, Cavallo's "Maybe it was in [the neighborhood of] Belgrano R dur­ Republican friends-wants to hide, so as to impose a two­ ing the '40s and '50s, where this unique candidate for the track world .. .." Elysee was raised, that he also learned to insert in his daily discourse this panoply of quotes from authors (de Gaulle, Great Britain Jean Jaures, Sarmiento, Colbert, Rabelais, and a long etcet­ Financial Times, April 7: era) , with an art reminiscent of the Bible .. .. "Jacques Cheminade, a former secretary general of the "He also retains clear traces of the tango in his laments now defunct European Workers Party , is the complete un­ as a persecuted politician. 'The press (his aides said this also known of the race, and there is still a possibility that France's included La Nacion) treats me like a dog,' he often says. constitutional council may question some of the endorse­ "His themes are the battle against the 'savage liberalism' ments he needs to qualify . of the United States and his phobia against Great Britain, "This 53-year-old ex-Finance Ministry official says he which he blames for the continuation of the war in the Bal­ is 'an enlightened Colbertist,' a reference to Louis XIV's kans to keep Europe divided." Cheminade is also "allergic to minister who practiced massive state protection and subsidy the immigration policy of Charles Pasqua," the article says. for industry."

EIR April 21, 1995 Feature 37 �ITillInternational

Peruvianvo ters choose Fujimori over U.N. stooge by Sara Madueno

Peru's incumbent President Alberto Fuj imori secured an cal movement gained an absolute majority in the Congress, overwhelming victory in presidential elections on April 9, winning 65 out of a total of 120 seats in an election that sweeping almost 65% of the vote against 21 % for his closest foreign observers acknowledged was totally devoid of irreg­ contender, former United Nations Secretary General Javier ularities. Perez de Cuellar. The voting result is one of the harshest blows that the Peruvian people have ever dealt to the arrogant A vote against British-backed terrorism one-worldist oligarchy which has sought this nation's annihi­ Fuj imori's response to a reporter during a press confer­ lation; it is also one of the best lessons in sovereignty, self­ ence right after he learned of his victory April 9, points to determination, and democracy. why he has so enraged the intemational oligarchy, but also Perez de Cuellar, the oligarchy's best hope against Fuji­ why so many Peruvians wanted him to stay on for a second mori, is the epitome of the type of dictator whom they are term. Asked whether he will consider a "restructuring" of hoping to impose on all nations. Better able to speak French the country's Armed Forces, he said, "In my government, than Spanish (because he had never even resided in Peru) , the Armed Forces have played a fundamental role in de­ Perez currently sits on the international board of Prince feating the terrorism of Shining Path and the MRTA [Tupac Philip's World Wide Fund for Nature, and is honorary presi­ Amaru Revolutionary Movement] . The entire nation must dent of the Inter-American Dialogue, a Wall Street think­ and should be grateful to our Armed Forces; they were the tank which promotes drug legalization for Ibero-America. ones who freed us from this plague." Perez's agenda was to guarantee continuation of the Above all, Fujimori emphasized, "we must thank the International Monetary Fund's policies, drug legalization, Joint Command led by Gen. Nicolas de Bari Hermosa and support for terrorists. He had pledged, for example, to Rios"-the individual most detinonized by the international entirely revamp the Peruvian justice system, and to review human rights lobby for launching the war against Shining every trial of Shining Path terrorists, supposedly to see Path . "What did the defenders of the terrorists' human rights whether or not the terrorists' human rights had been violated. want?" Fuj imori asked. "Did : they think that the Armed The hysteria which Fujimori's victory has provoked Forces shouldn't kill terrorists while combatting them? You among oligarchic circles was best reflected in a New York ask me about the future role of the Armed Forces; aside Times editorial on April 11. While acknowledging that the from fighting what's left of terrorism, our Armed Forces victory was "convincing," the Times whined that "it is not will be strengthened to continue with the task of developing a great triumph for Peruvian democracy," because Fuj imori the country, just as the Military Engineers Battalions have "has continued to offend democracy" by protecting his mili­ been doing in building roads and infrastructure throughout tary allies, "notorious for abuse of human rights." Nor were the country, as well as carrying out their traditional mission the Times's backers elated by the fact that Fuj imori's politi- of defending our territorial sovereignty." The latteris a clear

38 International EIR April 21, 1995 allusion to the recent border conflict with Ecuador. is universal and obligatory suffrage, and in which more than In a political statement issued in March entitled "Why the 80% of Peruvians of voting age mane use of that right in Butcher of Baghdad Perez de Cuellar wants to be President of the recent election. Peru," the Ibero-American Solidarity Movement (MSIA), Nor was it just Perez de Cuellan and his mentors who a coalition which shares the policy orientation of Lyndon were taught a lesson. The erstwhile PQwerful politicalparties LaRouche, warned that "the Peruvian people saw in [Perez were demolished at the polls. APRA, the party of former de Cuellar's] background, in his electoral message, and in President Alan Garcia, failed to win even 5%, the minimum the makeup of his congressional slate, the true intent of his required to maintain its registration as a party. campaign: to transform Peru into an outright pawn of the one-worldist financial oligarchy, in which ethnic separatism, Don't confuse democracy with party-ocracy multiculturalism, malthusianism, and unabashed liberalism At the same April 9 press conference, President Fujimori would have been a central feature of his government's questioned the traditional British ooncept of democracy agenda." based on "balance of power." To a reporter's question The one-worldists launched Perez's candidacy, the whether he considered himself a d¢mocrat or a dictator, MSIA wrote, for the sole purpose of "destroying the civic­ Fuj imori firmly replied, "I don't bel�eve in that democracy military alliance which acted on April 5, 1992 [in shutting which doesn't function, where there �s no efficiency and the down the corrupt Congress] , and saved the country from the state doesn't function ....What we ,had in Peru was party­ clutches of Shining Path's and the MRTA's trans-national ocracy," not democracy, he said. "Was that narco-terrorism. This patriotic and sovereign decision was democracy? . . . Is there democracy when in a country of what temporarily disrupted the plans of these globalist fi­ vast resources, poor families have no, water, sewer systems, nancial forces, who were prepared to blow up the continent or electricity?" with a wave of ethnic, separatist, and Jacobin wars ." The only democracy which existed, Fujimori continued, was one which protected terrorist sqbversion and not only Attack on national sovereignty got used to living with it, but in some cases even colluded As the MSIA statement revealed in detail, "Don Javier's" with it. These are the same democrllts, he said, who talk political movement is one in which dyed-in-the-wool Marx­ so much now about free education, !)Iut in schools made of ists, apologists for Shining Path, disguised liberation theo­ mud and straw. What the world does� 't know, the President logists, and other experts in subversion, coexist cheerfully reported, is that with the Military Engineers Battalions, the with ultra-liberal free-market monetarists. Fund for Construction and Development (Foncodes), and Perez de Cuellar's candidacy was born in the heat of the aid of the private sector, the goveIJllment has been inaugu­ what the MSIA has identified as the "Plot to destroy the rating daily since 1994 three modern and fully equipped Armed Forces and nations of Ibero-America," launched by state-run educational centers; and soon there will be five this same one-worldist oligarchy. It was the Woodrow Wil­ daily. son Institute in Washington, D.C. which sponsored the This has been possible, he said� in large part due to founding of Peru's Democratic Forum on April 5, 1993, private Japanese donations, although a small percentage of exactly one year to the day after Fuj imori shut down the the public budget has also been allo¢ated for this purpose. Congress. This was the entity which took charge of promot­ Discipline and a determination to get things done are funda­ ing Don Javier's candidacy locally. Immediately afterward, mental for our country, the Presidt:lnt emphasized. Some the National Endowment for Democracy (NED), the Inter­ will confuse this with authoritarianisr- or dictatorship. But, American Dialgoue (lAD), and the North-South Institute of he continued, the principle of authority is something very Miami all arrived on the scene to trumpet their doctrine different, and must exist in order to have a functioning of "limited sovereignty," which Perez de Cuellar so ably democracy. defended while serving at the U.N., and to campaign on Any Peruvian or foreign citizen IWho has lived in Peru behalf of the "human rights" of terrorists. All this was done for the past 12-15 years can confirmwhat this author asserts. in the name of "democracy." More than 20 years of an InternationalMonetary Fund (IMF) Certainly, these forces will never forgive Fujimori for dictatorship, combined with 12 years of brutal and merciless exercising the right to defend Peru's sovereignty. The one­ warfare by the terrorists, climaxing! with the corrupt and worldists wanted Peruvians to give up what they had won, inefficient administration of Alan Garcia (1985-90) , had by launching one of their most faithful servants as a candi­ almost succeeded in achieving what Citibank president John date, and trying to sell the lie that Fujimori was a dictator Reed called for when he told the Bqtzilian magazine Veja and candidate of the rich, while Don Javier was the alleged in July 1990 that Peru, along with Boljivia, "would disappear guardian of democracy. Paradoxically, Fuj imori received his as a nation." most overwhelming voter support from among the poorest From 1989 until early 1992, the city of Lima and the sectors of the population. Peru is a country in which there entire country were a replica of BeiI1Ut, with daily terrorist

EIR April ,21, 1995 International 39 attacks, indiscriminate murders , car-bombings, and kidnap­ Andean tunnel, delayed for more than 30 years, has now pings. People either left the country, if they could, or sur­ also been relaunched. This project, under the direction of vived, paralyzed by terror, and in the case of the large the Military Engineers, will pettmitthe irrigation of the large majority, living in misery as well. The economy was com­ Olmos desert on the country'sinorthern coast. pletely paralyzed; no one in his right mind would risk in­ There are many large projects on the agenda as well, vesting in anything, knowing that it could be blown up by such as transoceanic canals, large energy projects, nuclear a Shining Path bomb at any time. Peasant populations living plants, the national integrated railroad network, and others in the designated emergency zones migrated in huge num­ which the MSIA had proposed in its 1990 "Program for an bers to the cities and, as a result, agriculture collapsed. Industrial Peru ." The building of the southern transoceanic Slums grew up in the cities which were unprepared for the axis is already under way. T6gether with the building of influx. the northern transoceanic axis, this implies not only the This was the situation Fujimori faced when he took office joining of the Atlantic and Pacificbasins , but also the physi­ in July 1990. With the country bankrupt, the burden of the cal integration of the subcontinent which is crucial for its debt left by Alan Garcia's APRA government fell on the industrial development. population, and, in a single month, inflation zoomed to over 7,000%. The results were predictable: It was in Peru that The ugly olympian the cholera pandemic firstbroke out, spreading far and wide Upon learning of his defeat, Perez didn't even have the from there . diplomatic composure, supp�edly his specialty, to gra­ It was at this time that the then-U.N. Secretary General ciously admit defeat. Javier Perez de Cuellar offered his services to help the All opinion polls, including those done by the non-gov­ Fuj imori government "reinsert" Peru into the disintegrating ernmental organization TransPllrencia, created and financed international financial system represented by the IMF. The by the NED to oversee Don JaVier's campaign, conclusively "reinsertion" took place, but despite the IMF and its draconi­ predicted his defeat. But the gods of Olympus firstdrive mad an measures, the defeat of terrorism, combined with the those whom they would destroy, and the arrogant Perez de mobilization of the MilitaryEngineers Battalions throughout Cuellar, egged on by the media which supported him, led six Peru changed the face of the nation, Once -again, there other minor candidates in an 'attempt to halt the electoral was peace, tranquility, and hope for the country's future, process by claiming, just one day before the elections, that a especially among young people. gigantic fraud was planned, and insisting that the election be aborted. The role of the Armed Forces The high point of this charade occurred at midnight on With minimal resources, the Military Engineers have April 8, when "the seven dwarVes" led by Don Javier threat­ completely rebuilt the entire national highway system. Not ened to resign their candidacies, and in a joint statement only had this not been maintained for the previous 20 years, asked the secretary general of the Organization of American but it had also suffered from terrorist attacks. At the same States (OAS), Cesar Gaviria, who was in Peru as an election time, the country's electricity grid was upgraded. observer, to leave the country ao as not to lend credibility to Largely unbeknownst to the rest of the world, especially the alleged fraud. But Fuj imori's overwhelming victory was since November 1993, the Military Engineers also built so obvious that not even Gaviria could help out his friend. roads to reach the most isolated communities of Peru's coast­ The former U.N. secretary general's desperation was al mountain, and jungle areas. Together with Foncodes, such, that at an improvised press conference that same night, ' an agency depending directly on the Presidency, they are he virtually called for a coup d 1 etat, demanding that patriotic committed to building several other small infrastructure proj ­ military officers "not permit fraud to be consummated." ects such as hydroelectric dams and irrigation facilities. As Despite Fujimori' s win, however, the one-worldists have incredible as it may seem, with these small projects, many by no means stopped their efforts to destroy Peru. The day communities have been integrated into national life for the after the elections, Carlos Tapia, one of the "repentant left­ first time in Peru's republican history. ists" who had run on Perez de Cuellar's congressional slate, Now, medium-sized projects are also under way, some mused in the daily La RepUblica that the "peasant self­ with private funds, both national and foreign, and others defense militias" created to fight terrorism, could become an with public monies. This is the case with the San Gaban irregular army in a situation similar to Chiapas in Mexico. hydroelectric project in the southern province of Puno The same day, a television sta�ion run by the mayor of Lima which, when completed, will guarantee the energy supply and former presidential candidate against Fujimori, P. Ricar­ needed for this zone's industrial development. The modern­ do Belmont, provided a forum for the rabidly anti-military ization of the port of Callao has also begun, with the purpose and anti-Fujimori journalistCtsar Hildebrandt, who put out of making it one of the most modern ports on this side of the same line as Tapia about the possibility of a "new Chia­ the South Pacific. The building of the Olmos-Maranon trans- pas" in Peru.

40 International EIR April 21, 1995 A spanner in the ps okes of the EZLN'S urban machine by Hugo L6pez Ochoa and Gerardo Castillejas

The Mexican governmenthas hurled a wrench into the works dent ErnestoZedillo , which Camacho and his fellow conspir­ of the narco-terrorist Zapatista National Liberation Army ators hope to accomplish by ll1id-1995, forcing the (EZLN) by declaring bankrupt the semi-public bus company establishment of a "transition goventplent" as the EZLN has of Mexico City known as Route 100, and by ordering the repeatedlydemanded. dismantling of the Route 100 union (Sutaur) , which was Last Feb. 17, just days after President Zedillo ordered identifiedby EIR more thana year ago as the backbone of the the arrest of Rafael Sebastian Guillem Vicente (a.k.a. "Sub­ EZLN's urban terrorist machine. commander Marcos") and deployed the Mexican Army into On April 8, the government declared the bus company zones occupied by the EZLN in Chiapas, Camacho had pub­ in bankruptcy, seized its books, and arrested six leaders of licly threatened "an escalation of the conflict . . . starting Sutaur, which ran a joint financial trust with the company. with Mexico City." And in a secret meeting with Henry The union leaders are charged with embezzlement, with fig­ Kissinger, according to El Dia correspondent Pablo Hiriart ures ranging from$1.5 to $4 million. The top union official on, March 3. Camacho declared, "Without a doubt, I am arrested was its lawyer and controller, Ricardo Barco, who going to be President of Mexico. " is also the EZLN's lawyer. Barco is described by the April 11 One month later, on March 7, 1995, Camacho met with Los Angeles Times as a leader of the Independent Proletarian a sinister group at Apostol SantiagO! Street, No. 15, in the Movement (MPI) "which organizes near daily anti-govern­ San Jer6nimo Lidice neighborhood, of Mexico City. The ment marches in Mexico City." Says the Times, Barco f'has place: the home of writer Carlos Fuentes. also organized numerous marches in support of the Zapatis­ The other guests included: tas." Back in 1992, Barco's MPI signed an ad in the daily La • PorfirioMunoz Ledo, president of the EZLN's elector­ Jornada supporting the narco-terrorist Shining Path of Peru . al arm, the Party of the Democratic �evolution (PRO). Two days afterthe governmentdeclared Route 100 bank­ • Enrique GonzlilezPedrero , fOl1I1er governorof the PRI rupt, the transportation secretary for Mexico City, Luis Mi­ ruling party for Tabasco state. He haSi been repeatedly identi­ guel Moreno G6mez, was found dead with two bullet wounds fied as the money-bags behind an oIXIration to overthrow the in his chest. Although the officialfinding of the local attorney current PRI governorof Tabasco, Rol>ertoMadrazo Pintado, general was "suicide," Moreno G6mez's family adamantly using the PRD as the instrument. denies it. Moreno G6mez had been identified by the press as • Raul Padilla, former rector of �e University of Guada­ the key individual in charge of the Route 100 embezzlement lajara. In that post, he slowly opened the university up to case. EZLN "Commander" Bishop Samuel Ruiz. • Victor Flores Olea, former Me�ican ambassador to the The Camacho connection Soviet Union. Various Mexican journalists have identified the Route • Hector Aguilar Camin, leader pf the group Nexos, the 100 union as one important source of financingfor the EZLN, left-wing of the faction of the PRI ruling party led by the and Barco as the "liaison" between the EZLN and former family of ex-President Carlos Salinas de Gortari. Mexico City mayor and one-time presidential contender • Federico Reyes Heroles, joum.uist and son of the most Manuel Camacho Solis. According to the daily Unomasuno, infamous British agent infiltrated intp the PRI, Jesus Reyes Route 100 could have been placedin bankruptcy at any time Heroles. since 1989, but Camacho had kept the company alive to use • Adolfo Aguilar Zinser, a former adviser to ex-Presi­ as his "political arm. " dent Luis Echeverria and former ad\liser to the presidential EIR has repeatedly documented Camacho's role as an campaign of PRD leader Cuauhtemoc Cardenas. agent of the British Crown's plot to carve up the Mexican • Jorge G. Castaneda, intimate! friend of Sally Shelly nation, most recently in a special March 31 report entitled Colby, wife of former CIA directot William Colby. Cas­ "TerroristInternational at Work: the Chiapas Model." A cru­ taiiedais also Cardenas's leading propagandist abroad. cial step toward realizing their goal is the overthrow of Presi- In the days following their meeti ..g, the members of this ,

EIR April 21, 1995 International 41 group and Commander Samuel Ruiz launched an offensive lend its Mexico City offices fotthe talks with the Zapatistas, to overturnthe conditions for dialogue imposed on the EZLN "as long as this is formally reqpested by the Mexican state." by the government's mediating commission, known by its During a later visit to the Mexi¢an-Guatemalan border, U. N. acronym Cocopa. Among those conditions were the govern­ Secretary General Boutros B�utros-GhiUi makes the same ment's insistence that the site of the talks be one of several offer, through his personal representative in Guatemala. proposed localities in Chiapas, and that the agenda be limited • April 3-4. A European Ifcumenical Mission arrives in to state demands. The law imposed a deadline of April 10 to Chiapas, headed by the pastot of the Lutheran Evangelical sit down to the negotiations, afterwhich the suspended arrest Church and representative of the World Council of Churches warrants against the Zapatista leaders would be reactivated. Philip An�erson . Their firstact is to meet wi� Bishop Ruiz. The Zapatista strategy was to demand that Mexico City • Apnl 5. SIX. hundred Honduran Indians march and itself serve as the site for the peace talks, as a means of putting demonstrate in support of the l;ZLN in front of the Mexican the EZLN back on the national and international agenda. All embassy in Tegucigalpa, Honduras. of the international allies of the Zapatistas were brought into • April 5 . "Marcos" asks for the Basilica of Guadalupe, play, to up the pressure on the government. Had Zedillo a Mexican holy shrine, as t1i.e site for dialogue with the yielded, Camacho's faction within the PRl, together with Zedillo government. He is refdsed. Cardenas's PRD and "independent" narco-terrorist groups • April 9. The pro-ZapatiJta magazine Proceso publish­ like Barco's MPI, would have mobilized their Jacobin hordes es a special reporton supposed tIumanrights and constitution­ to descend on the capital city to receive "Marcos"and "Com­ al violations on the part of thel Mexican Armed Forces. The mander" Ruiz. report includes so-called 40cumentary evidence from Greenpeace on the alleged lo{v-intensity operations carried The international support networks out in Chiapas by the Army. The following are just a sample of the · pressure tactics employed by the Zapatistas and their support apparatus out­ The counterattack I. side Mexico. In order to comer the EZLN into acceding to the govern­ • Feb. 20. The EZLN sends messages via Internetabout ment's terms for dialogue, cleiarly the political protectors of a supposed massacre in Chiapas carried out by the Mexican the narco-terrorists have to he exposed: Manuel Camacho Army. "The hospital in neighboring Comitan is full of casual­ and the Salinas de Gortari f�ly. On April 6, the PRl con­ ities," lies the electronicmail message. gressional bloc from Chiapas, !headed by Congressman.Wal­ • March 8. The Mexican press reports on the presence ter Le6n, called for an invest�gation into the role of former in Chiapas of a delegation from the pro-terroristGreenpeace President Carlos Salinas and �is brother Raul�urrently in environmentalist movement. Greenpeace's Latin American jail accused of intellectual a�thorship of the assassination director Beatriz Heredia demands the Army's withdrawal of PRI Secretary General Jo� Francisco Ruiz Massieu­ from the state to "avoid the destructive effects on the commu­ in financing the EZLN. Le6�·chatged, "Former President nities and the environment." One is forced to ask how soldiers Salinas and his brother Raui, along with current Senator are more polluting than rampaging narco-terrorists? Hugo Andres Araujo, were t�e ones who launched and fi­ • March 24. Samuel Ruiz is re-Iaunched as a candidate nanced the armed movement tin Chiapas, with funds chan­ for the 1995 Nobel Peace Prize at the tenth annual "Oscar neled through Ptonasol," thd Salinas government poverty Arnulfo Romero" InternationalMeeting of Theology of Lib­ apparatus. I eration advocates, in EI Salvador. On April 7, some 50 kilos of cocaine, weapons, and • March 27. A pilgrimage to Bishop Ruiz' s cathedral at ammunition were seized in the Chiapas township of Ocosin­ San Crist6bal de las Casas, Chiapas, on the occasion of the go, which is at the entrance to Ute Lacand6n jungle wherethe 450th anniversary of the arrival of Fray Bartolome de las EZLN's terrorist cadre are en�conced. That same day, with Casas to Mexico, provides an opportunity for red bishops foreknowledge of the Route 1100 arrests, the EZLN issued a from throughout the world and for leaders of human rights communique agreeing to inurtediate dialogue with the gov- "non-governmentalorganizations" to meet in praise of Ruiz. ernment-in Ocosingo. I Brazilian Bishop Pedro Casaldaliga refers to Chiapas as an The ball is now in the ZedUIo government's court. As an "ecological reserve. " editorial in the April 12 issu� of Siempre magazine notes, • March 29. A radio message from the Zapatistas is now that the EZLN has been Iforced toaccept the talks, the intercepted, urgently calling for more food and supplies. "It question to the government is, "Who are you going to sit is necessary to ask for more support from the International down with?" Siempre's answ�r is that the true leaders of the Red Cross and from the human rights groups so that our Zapatista terrorists are Manu�l Camacho and Raul Salinas, movement doesn't die out." and warns that they are mere�y stalling for time while they • March 31. Gilberto Schlittler, United Nations repre­ "silently prepare a coup agai�t the governmentof President sentative in Mexico, announces that the U.N. is prepared to Zedillo." !

42 International EIR April 21, 1995 Obituary: The Taoist hell of Joseph Needham, 1900- 1995 by Michael Billington

On March 24, the 94-year-old British China scholar Joseph for his own scientific discoveries. I Needham passed on to his just rewards, acclaimed by an I began covering Chinese and ASlan affairs as a journalist obituary in the British newspaper the Independent as "the for EIR , while working through the classic works of Chinese Erasmus of the 20th century"-in fact, they gush, "a sober antiquity. I shared with Leibniz the �mendous joy of discov­ assessment suggests that with the passage of time, he will be ery in reading the rich and cultured writings of Confucius recognized as a greater figure than the scholar from Rotter­ and Mencius, and in confronting th� enemies of Confucius dam." He is hailed as "one of the greatest scholars in this or among the Taoists and Legalists. I soon recognized that there any country , of this or any century." The same newspaper were very close similarities betwee� the fundamental divi­ calls his multi-volume Science and Civilization in China sions within Chinese philosophy andl the parallel divisions in "perhapsthe greatest work of scholarship by one person since the West-i.e., on the one hand, the humanism of Plato and Aristotle. " the Christian worldview of man as a creative being in the The comparison to Erasmus is a sacrilege, and calling image of God, and, on the other hand, the Aristotelian view Needham a great scholar is equivalent to praising Hitler and of man as a sensual beast, to be ruled over and controlled by Stalin as great statesmen. However, it is indeed reasonable an oligarchical order. As I began to study the works of Chu to say that Needham succeeded in compiling in his major Hsi, I saw that his ideas reflected the discoveries of his con­ works as much nonsense and as much evil as did Aristotle. temporary St. Thomas Aquinas, and even pointed toward Since Needham continues to be viewed both in the West and the great discoveries of Nicolaus of Cusa in 15th-century in China-in the People's Republic as well as in Taiwan­ Europe , whose work launched the Golden Renaissance. as one of the foremost experts on the comparative studies of Again, I found that Chu Hsi's ene11l1ies amongst the Taoist Eastern and Western science and culture, it is imperative and Buddhist sects-and especially the "pseudo-Confucian" to mark his passing by reviewing his actual record-which Wang Yangming of the 16th century-were of the same should convince the credulous that Mr. Needham is now "type" epistemologically as the Aris�otelian sects associated most likely sharing the eternal flames with his old friends with Venice, including the anti-Renaissance romanticism of Bertrand Russell, Mao Zedong, Julian Huxley, and other the Enlightenment. like-minded genocidalists of the 20th century . His lifelong I wondered why this powerful �th about the universal devotion to communism in various forms will be seen as nature of the great ideas of history bad been lost or ignored merely a coloration of his services for British intelligence (with only minor exceptions) since the time of Leibniz. The in pursuit of the historic British policy of preventing the broad answer to this question lies iI) the history of Venice, development of China as a strong, modem nation. but the 20th-century aspect can be largely accredited to the An autobiographical note is in order. As I began serving evil work of Needham, who, together with BertrandRussell , my firstprison term in January 1989, I decided to devote my served as the British Empire' s prim� agents of ideological time and energies as a political prisoner to the history-past, containment and destruction against China in the modem era. present, and future-of Asia, an area of the world that has, since my school days, held a special interest for me . I soon 'The Needham Question' discovered the crucial work of G. W. Leibniz, in collabora­ Why did China, despite the fact that its economy and tion with the Jesuit missionaries in China, in building a grand culture in many ways matched or excelled that of Europe alliance between Europe and Asia, drawing on the extraordi­ before the 13th-century Mongul invasion, fail to develop nary agreement between the ideas of the Christian Renais­ modem science as it developed in Europe? This has come to sance in the West and the Confucian traditions in China, be known as "The Needham Question" among China schol­ especially those of the Neo-Confucian master Chu Hsi of the ars , as it was the question Needham posed to himself in 12th century . I pledged to continue that work of Leibniz, compiling the 16 volumes of his encyclopedic Science and in league with Lyndon LaRouche, for whom Leibniz had Civilization in China. Needham did not really attempt to provided the primary inspiration for his own life's work and answer the questi�n. Rather, he profiled Chinese history and

ElK April 21, 1995 International 43 secret. All that man can do is to study and describe phenome­ na; it [Taoism] is indeed a profession of faith in natural science." Needh�m was thus falsely portraying western science, at the same tIme that he was Pfofiling the Chinese , with the intention of preventing any reI newal of the l7th- and 18th­ century efforts to unite the actual western scientifictradition of Plato, Cusanus, Johannes IKepler, and Leibniz with the scientific method discovered 1i>ythe 12th-century Confucian sage Chu Hsi. It should be nbted in this regard that Need­ ham's work is referenced regu�arly by the BritishRoyal Fam­ ily's environmental mafia,as well as the terrorist apologists of the Liberation Theology J ariety, not only in regard to China per se, but as an "aut rity" on science and religion . Needham's overt embrace of aoism against either Christian­ ity or Confucianism serves asJ; heoretical support for the anti­ science and anti-human cult bblief structures propounded by these New Age soldiers of the new feudalism. The evidence is overw�9l lming that Needham did not simply wander into this worl

44 International EIR April 21, 1995 years of colonialism and civil war) . Mao called on his friend were profoundly Christian and Confucian(respectiv ely), and Needham to head a team of western "experts" to investigate resolutely anti-empiricist? Needham simply declared both of the Chinese claim that the United States had used biological them to be the opposite of what thh were. Leibniz, in his warfare agents against the North Koreans. Needham did the later life, Needham said, "went over to Lucretian-Cartesian job and reported that the evidence was genuine, which earned mechanical materialism, a system df thought which had al­ him public ridicule in the West for his supposed "gullibility" ways tended, however disguised, toi atheism." Then Leibniz before the Chinese Communists. His report succeeded, how­ the "atheist" proposed his theory oO nonads, said Needham, ever, in further dividing Washington and Beijing, while which, he falsely asserts, portrays the world as a "vast living firmlyestablishing Needham as a trustworthyfriend of Mao. organism," without the need of a Goo. Needham was barred from entry to the United States for a Chu Hsi is treated in a similar w'y. Chu Hsi, the preemi­ period following that incident. nent leader of the Sung Dynasty Confucian Renaissance, Besides being a Communist, Needham was also an An­ propounded the concept of a univetsal principle (Li), such glo-Catholic who served as a novice lay brother for two years, that all created things reflect the principle of the Creator, and considered entering the priesthood. But that should not while man's nature is defined by th� universal principle, as be misinterpreted to mean that he was a Christian. Proudly made manifest in the creative pow�r of the mind. Leibniz calling himself a Taoist, Needham ended Volume 2 of his recognized in this a view similar to Ute Christian concept of Science and Civilization in China with the following state­ man created in the image of God, and as closely parallel to ment: "Modem science, since thetime of LaPlace, has found his own monadology. Needham, hqwever, praises Chu Hsi it possible and even desirable to dispense completely with as a Taoist! He ignores both Chu !lsi's repeated denuncia­ the hypothesis of a God as the basis for the laws of Nature, tions of Taoism and his extensive ddelopment of the concept and has returned, in a sense, to the Taoist outlook. . . . This of ''jen'' as the essence of the univertial principle connecting is what accounts for the strangely modemring in so much of man with Heaven. In fact, Needh� argues that Chu Hsi did the writing of that greatschool . " It was on this atheistic basis not really mean "principle" by the !Chinese term "Li," but that Needham condemned Confucianismin favor of Taoism. merely meant the "organization" of !Jte material world. Chu His favorite passage from the Tao Te Ching by Lao Tzu Hsi, too, becomes an atheist! Needham told ScientificAmeri- reads:

Heaven and Earth are withoutbenevolen ce, They treat the 10,000 things as straw dogs. Nor is the Sage benevolent, � , To him also are the hundredclans but straw dogs. For f er read�g Michael Billington, The Chinese word for "benevolence"here is ''jen,'' a term who is serving a hid­ which in Confucianism carries a similar connotation to the eous 77-year sentence term "agape" in the New Testament (often translated as in Virginia state prison "charity," referring to the love of God and love of mankind). as a result of the politi­ Needham's rejection of God and his rejection of the Confu­ cal railroad against cian ''jen'' were, in his mind, not incompatible with his be­ Lyndon LaRouche and longing to a Christian church, since, like Alice in Wonder­ his associates, has, land, words to Needham mean whatever he wants them to during his incarcera­ mean-or, as he liked to put it, words have different mean­ tion, published several ings in different contexts. Thus, Needham held as his "phi­ groundbreaking arti­ losophy of life" that there are five distinct forms of human cles in the quarterly experience-religion, science, history, philosophy, and aes­ journal Fidelio. In the Fall 1994 Issue, he wrote "The thetics-and, he said, "I don't think there is any necessity to Taoist Perversion of Twentieth-Century Science," reconcilethem ." which includes a lengthy discussion of "Joseph Need­ ham: Ideological Triple Agent." Of related interest is Leibniz and Chu Hsi "Toward the Ecumenical Unity df East and West," in Needham's most difficult challenge, and the subject of the Summer 1993 Fidelio. his most serious intellectual crime, was the necessity to ex­ Fidelio, Journal of Poetry, :Science, and State­ plain the following question: If Taoism , alchemy, and empir­ craft, is published by the Schillet Institute, P.O. Box icism were the sources of scientific discovery, how is it that 20244, Washington, D.C. 2004Ho244. Subscriptions the greatest leaps in scientific progress came as a result of the are $20 for four issues. I work of Leibniz in the West and Chu Hsi in the East, who

EIR April 21, 1995 International 45 can magazine in 1992, "One of the most liberating aspects of the whole of my life was when I went to China and found that a quarter of the human race doesn't find the need of believing in a benevolent and creative god." This must not be seen as merely an observation by Mr. Needham, but as a statement of his intended policy and program for the Chinese. British scaridal could One humorous note: Needham is renowned for the thor­ ough nature of his scholarship, with extensive cross referenc­ signal end dfThatcher es and documentation of his facts , including prolific and erudite footnotes. However, he often hides within this meth­ politics forever od his intentional use of overt lies. Two classic examples I emerged from his falsehoods regarding the beliefs of Chu by Dean Andromidas Hsi and Leibniz. To portray Chu Hsi as a synthesizer of I! Taoism and Confucianism, he had to explain Chu Hsi's re­ peated and virulent attacks on every aspect of Taoism. Need­ A scandal hitting a British Con*rvative Party minister could ham's footnote: "In Chu Hsi's writings there are polemics signal the sinking of the governinent of British Prime Minis­ against the Taoist conceptions of the word [Tao], which rest­ ter John Major, along with th� political apparatus that has ed on complete misunderstandings of Lao-tzu [the founder supported Tory politics for th� last 20 years. The scandal of Taoism] ." Needham's "synthesizer" knew nothing of the is targeting Jonathan William 4itken, the chief secretary of essence of his subject! In the case of Leibniz, Needham the treasury who could becoJ1le the 20th minister in the contended that what Leibniz really meant by his monads Major cabinet forced to resign !because of scandals. Aitken was physical "organisms" (just as Chu Hsi'sLi really meant is the grandnephew of Lord Be'verbrook, the famous Cana­ "organization"). This hardly fitwith the definitionof monads dian-born British press baron �d mouthpiece of the British in the very first sentence of Leibniz's Monadology, which Empire. The accusations range I from illegal arms deals with states that a monad is a simple substance "which has no Iran and Iraq, to questionable telations with Saudi princes, parts ." Needham's footnote: "It is at first sight disturbing to Middle Eastern arms dealers, �d shady businessmen. find that monads are defined as without parts, but Leibniz While scandals of this natute, particularly when they hit , used the word • parts in a rather special way." This "special those who deserve it, can be $reatly appreciated, this and way" was certainly beyond Needham's ken. others hitting the Major govetnment must be seen in the Needham has continued to be honored not only by the context of the strategic and Pflitical fight raging between People's Republic of China (which only last year made him the Clinton administration andl the British elites. The latter one of the firstfore igners to become a Fellow of the Chinese are starting to realize that the J'r.1ajor government and much Academy of Science), but also by Taiwan and other Chinese of the Tory apparatus cultivatqd over the last 20 years, no communities. While serving as Master of Gonville and Caius longer serve their interests. T�is scandal goes to the heart College at Cambridge, Needham created and ran the Need­ of that apparatus. �m Research Center, with funds provided by a revealing assortment of sponsors: the Singapore banker Tan Chin Dining with Kissinger i Tuan, Hongkong tycoon K.P. Tin, the Kresge Foundation in The scandal broke on Mar4t 29, when the Independent, the United States, and the Beijing government. Beijing a London liberal daily, ran an atticle linking Aitken to illegal should note carefully the praise bestowed by one of Need­ arms deals between Britain andllran and Iraq while he served ham's Cambridge associates in the October 1986 journalThe on the board of directors of � British Manufacturing and World and I, who wrote: "Some become legends in their Research Company (BMARC)j News of the scandal reached lifetimes, their toils honored by foreign peoples before their Aitken via his personal fax , ipterrupting a private dinner. own recognize them: Clive of India, Lawrence of Arabia, His guest was Henry Kissing�r, who was in London for and Mountbatten of Burma spring easily to mind. Needham a conference at the Royal Instjitute of International Affairs of China now must be added, and only time can hail his (Chatham House). Also at that!dinner was Defense Minister achievement as the greatest of all." Those Chinese who are Malcom Rifkind, Foreign Sectjetary Douglas Hurd, and Al­ monitoring the continuing British efforts to divide and de­ len Clark, a hard-core Thatche�te who, as a formerindustry stroy China will certainly be aware of the evil done by Clive, minister, played a key role in s¢lling British arms to Iran and Lawrence, and, especially, Mountbatten, in the service of Iraq. This was followed by articles in the Guardian, a daily the British Empire. Overturning the distorted profile of both which traditionally speaks for �e Labor Party , detailing Ait­ the East and the West which Needham fashioned in the ser­ ken's ties to the Saudi royal f$ily, particularly Prince Mo- vice of that same Empire will be a worthy and necessary - hammed Bin Fahd, son of Kijng Fahd. These connections contribution to China's future, and to the rest of us as well. included Saudi deal-maker warc Said, the man who broker-

46 International EIR April 21, 1995 ed the $30 billion Anglo-Saudi anus deal which also made many others. This is a track that l�ads directly to George Margaret Thatcher's son, Mark, a millionaire. These press Bush, Henry Kissinger, and Margaret Thatcher. articles were followed by a film aired on Britain's Granada The second track is Aitken's relationship with the Saudi TV . royal family, which has spanned the better part of two de­ Aitken's response was to sue for libel. He took the unusu­ cades. The press has concentrated on his relationship with al step of holding a press conference, with the full support of Prince Mohammed Bin Fahd. This relationship is mediated Prime Minister Major, at the headquarters of the Conserva­ through Syrian-bornSa udi deal-maker Wafic Said. The latter tive Party. He issued a press statement pledging to defend was said to be the man who clinched the $30 billion Yama­ himself with the "simple sword of truth" and the "trusty mah anus deal between Saudi Arabia and Great Britain, de­ shield of British fair play." Only the Hollinger Corp.'s Daily spite the fact that Saudi Arabia traditionally buys its most Telegraph. better known as the "Torygraph," came to his important weapons systems from the !United States. That deal defense, while other media pointed out the obvious links could have only been clinched with �e blessing of the U. S. between Aitken's misfortunes and those of Prime Minister President, George Bush. Said was not only a guest of Thatch­ Major. er at 10 Downing Street, but brought the prime minister's son, Mark, into the deal. The multimillion-dollar commis­ Who is Jonathan Aitken? sion turned the young Thatcher from a less than competent If the threads of this scandal are followed up, they will bookkeeper into a multi-millionaire \lusinessman. Marksoon lead directly to the international apparatus that has imple­ moved to Dallas, Texas. His business practices in Bush coun­ mented British strategic policy over the last 20 years. It is an try not only earnedhim millions more, but a criminalindict­ apparatus that leads to Kissinger, George Bush, the Iran­ ment involving former business partners. Contra crowd, and the Entente Cordiale faction in France. It After Aitkin's dinner in honor of Kissinger, another is the network that destroyed Africa, engineered the Iran-Iraq dinner took place, including not only Kissinger, but Wafic war, and launched the Persian Gulf war. It is instrumental in Said as well. According to London sources, it was a "work­ maintaining the genocidal embargo againt Iraq, and seeks to ing dinner" aimed at planning how to ensure that the Yama­ destroy the Middle East peace process. It is also a network mah anus deal, which is not even' half-completed, is not that had been tailored for Cold War politics and American cancelled. This is a very real possibility, given the changes right-wing Republican administrations. in Washington and the financial instability of the Saudi As the grandnephew of Lord Beaverbrook, Aitken is in regime. the sterling tradition of the Round Table of the British Em­ pire's Cecil Rhodes. This grouping is also known as the Circle Pinay Suez faction. As head of Express Newspapers Ltd., Aitken's Aitken is part of the "Suez" faction. This is best seen in infamous ancestor was the mouthpiece of the imperial fac­ his membership in the Circle Pinay" also know as the Circle tion. As a Canadian and Winston Churchill's wartime minis­ Violet. It was founded in 1951 by Antoine Pinay, a former ter of supply, Lord Beaverbrook worked closely with Argus French prime minister who died recentlyat the age of 104. A Corp., the British intelligence and Canadian-based company politician in the tradition of the Entente Cordiale, Pinay very that channelled American military equipment to wartime much opposed the Franco-German orientation of Charles de Britain. After the war, the latter would leave the weapons Gaulle. Aitken's close friend, Thatcher loyalist, and former I business to become the Hollinger Corp. and create a press minister Allen Clark recounts in his memoirs how the group empire that would soon eclipse that of Beaverbrook. Under convened a meeting in Oman in 1990 just prior to the Gulf Conrad Black, the Hollinger Corp. acquired the Daily Tele­ war. In addition to Aitken, those in attendance included Ju­ graph and became the mouthpiece of the empire under Mar­ lian Amery, another close associate, of Aitken who is a key garet Thatcher. Aitken made a similar transformation, going Tory and British intelligence insider with decades of experi­ from journalismto the selling of weapons. ence in the Middle East and the Balkans, and Nicholas Elliott, The current scandal has two interrelated tracks. One is a former officer of British intelligence's MI-6 who later his directorship of BMARC in 1988-90. An artillery and worked for Tiny Rowland's Lonrho iCorp. In the 1980s, El­ munitions producer, BMARC was part of the so-called "ex­ liott circulated slanders against Lyndon H. LaRouche. plosives cartel" that was selling massive amounts of muni­ The Circle also included such �ople as Archduke Otto tions to both Iran and Iraq. It included such firmsas Dynamit Von Hapsburg, former claimant to the throne of the Austro­ Nobel of Sweden and Great Britain, PRB of Belgium, and Hungarian Empire and founding chairman of the West Euro­ Wasegchemie of Germany. Working in conjunction with pean Union; Robert Moss, a British spook who turned the Bush's Iran-Contra apparatus and the East German Secret Washington-based Heritage foundadon into a Britishintelli­ Service, the Stasi, this network sold billions of dollars of gence school for the brainwashing, of U.S. officials; CIA munitions to both Iran and Iraq. Many of these deals were spook Brian Crozier; and former Italian Prime Minister Giu­ financedby Midland Bank, Banca Nazionale del Lavoro, and lio Andreotti.

EIR April 21, 1995 International 47 InternationalIntelligence

American" emotion in an entire Iraqi gener­ munity, th¢ democratic governments, all Boutros-Ghali humbled ation. those who have insisted on imposing this on Central American tour Asharq Alawsat reported that Hoar also embargo, are accomplices in genocide." commented that "Israel will make great eco­ Silajdzif, said that maintenance of the U . N . Secretary General Boutros-Ghali nomic and political gains from having peace "status quo ' only "ratifies conquests real­ seemed to run into trouble everyhere he with Iraq," including "an oil pipeline" ex­ ized by force. . . . The international com­ went during his would-be triumphal spring tending from Iraq to the port of Haifa in munity has helped Serbia kill us ....The tour of the U.N.'s colonies in Central Israel. internatiomU community has shown itself to America, EIRNS concluded from Reuter Opening the ring of isolation around Iraq be naked." !The prevailing attitude in Euro­ will also help to contain Iran, Hoar claimed. pean news wires and New York Times reportage. chanoelleries is to "contain the con­ Asharq Alawsat referred to a report that ap­ In Honduras, Boutros-Ghali's first stop flict, at least until the next election," he pearedin the Israeli paper Haaretz. on March 31, a baggage cart ran into his warned, b" "the virus of fascism and vio­ On April 13, 1993 Hoar was interviewed private plane, severing part of the wing. His lence cann�t be contained ....East-West by Qatar's al-Sharq newspaper, and was itinerary in El Salvador April 1 had to be relations have been replaced by the law of quoted then as saying that Washington changed to eliminate any road travel inside the stronge$t." would restore ties with Iraq if it met Gulf the country, after the government advised war-related U.N. resolutions. him they had detected a plot to blow him up, along with his entourage . Flying into Arafa t.i Stop terrorism Guatemala, due to an unexplained "naviga­ tion error," his plane landed at a remote British want betray er by economic development military airport, far from the country 's inter­ i national airport in Guatemala City where of Bosnia as NA TO chief In an interview in the April 10 issue of Cor­ the Foreign Ministry officialsand red carpet riere della i Sera, the nationally circulated were waiting. A German newspaper confirmed rumors Italian dail� , Yasser Arafat said that eco­ Then, as he ate with the President at the that the British government wants Lord Da­ nomic dev�lopment is the only way to stop presidential palace on April 2, a bomb went vid Owen, the architect of the betrayal of terrorism-+mirroring the judgment ex­ off two blocks away, and "foreign diplo­ Bosnia, to become the new political chief of pressed in ElR's feature on Gaza (April 7, mats" insisted to the press that the bombing NATO, on the same day that Bosnian Prime 1995 issue). had something to do with the celebrated Minister Haris Silajdzic made his strongest The PLO chairman gave the interview visitor. charges to date that western governments to correspopdent Lorenzo Cremonesi during are accomplices in genocide against his a meeting with former Italian Premier Giulio people. Andreotti, �ho was traveling to Israel, Syr­ Say end to Iraq embargo According to the April 6 edition of the ia, and Jordan. German Frankfurter Allgemeine Zeitung, To the iquestion "How do you stop Is­ will benefitIsr ael British Prime Minister JohnMa jor proposed lamic terrorists?" Arafat replied: "We must to U.S. President Clinton that David Owen improve thl:Palestinian economic situation: Liftingthe U .N . embargo on Iraq will great- replace NATO Secretary-General Willy poverty fet';dsextrem ists." Arafat also "had 1y benefit Israel, said retired U.S. Marine Claes, who is under pressure in Belgium an annoyed gesture in commenting on the Corps Gen. Joseph Hoar, who replaced to resign over his role in the 1988 Agusta requests from donor countries, which insist Gen. Norman Schwartzkopf as commander­ corruption affair. that only ftransparency' of PLO budgets in-chief of the Central Command (which in­ Meanwhile, Silajdzic, in an interview could gUaJ1antee the delivery of promised cludes Southwest Asia and the "area in with Le Monde on April 6, seemed to take aid. 'Well; they forget that we Palestinians which Desert Storm occurred," according to direct aim at Owen, the former European have built �he economies of a large part of a Pentagon spokesman), it was reported on Community "peace mediator" for the Bal­ the Arab v{orld, and now [they] come here April 7 by the Arabic daily Asharq Alawsat, kans, when he charged that the persistence with all these preconditions and stupid slo­ which said that Hoar's comments were of western governments in not admitting gans against our people. As far as I am con­ made on April 6 in an interview with Israeli they made a mistake in imposing the arms cerned, funds could be directly managed by Army radio. embargo against Bosnia three years ago the United Nations.' " Hoar said that the sanctions imposed on means that they have a "deliberate policy. In the same interview, Arafat hinted, "In Iraq and the policy of isolating the country Bosnia was supposed to die. " This is not an the HamaS safehouse which exploded last have failed to achieve their announced ob­ attitude of "neutrality," as is often claimed: week in the middle of Gaza, we found a lot jective of overthrowing Saddam Hussein's "The arms embargo has contributed to kill­ of weapons from the Israeli army . It is like regime. Instead, there is a growing "anti- ing 200,000people . The international com- crazy OAS elements in the French Army

48 International EIR April 21, 1995 • JOHN MAJOR'S recentvisit to Washington was a flop, wrote Lon­ don Times columnist James Adams on April 9 in his "Inside Washington" commander of the 15,000 Russian Border during the Algerian war. It is obvious that a column. The columnist, tied to elite Guards based near the Tajik-Afghan border, close collaboration exists between radical circles which would like to be rid of saying that the attacks were "well-planned, groupings in the two camps. " the inept Tory prime minister, con­ well-conducted, large-scale" actions by the fided that "the British embassy had armed Tajik opposition. He gave his view been trying to ' find some symbolic that the aim of the attacks was to reestablish British useprostitutes way whereby ,the two men could a strong guerrilla presence in the mountain show publicly that they really liked to profile Chinese region of southeast Tajikistan, and from each other-a political necessity, there begin to move into the central part of even if a lie." The London SundayTimes, the mouthpiece the republic. of the oligarchy's secretive and ultra-power­ Chechulin implied that these attacks • TERRORISTS from Hamas fulClub of the Isles, revealed on April 9 that were timed to sabotage the peace talks be­ Militants and Islamic Jihad carried over the years, the British Special Branch tween the Tajik governmentand opposition out two suicide bombings April 9 in Hongkong has used prostitutes to profile spokesmen, slated for the following week­ against an Isr�li civilian bus and anti-British Chinese officials who visit the end in Moscow. colony. "It is claimed the purpose was to army patrol je�p near settlements in intimidate the officials [into] staying away the PLO-ruled Gaza strip. PLO chair­ from Hongkong if they were deemed trou­ man Yasser J\rafat, quoted in Al­ blesome or 'anti-British.' " Algeriapresents 'reform' Arab, called �e bombers "enemies A former Special Branch officer was of peace attempting with their Israeli quoted saying that they would blackmail the plan to get IMF loan counterparts to stop the wheel of Chinese officials with their dossiers, and peace" and ch;h-ged they are funded keep them away from Hongkong. The Spe­ Algerian Foreign Minister Muhammed in part from the U.S., Iran, and cial Branch, which is officially being dis­ Salih Dembri said on April 7 that his govern­ Kuwait. mantled, "became one of the largest under­ ment will present to the International mone­ MISERE R, cover police operations in the world," tary Fund a $33 billion, three-year plan of • � the German Cath­ according to the Times. The paper reports economic reforms which will enable Alge­ olic aid agenc)1, did not fundthe Za­ that SOO Chinese officials were "listed" for ria to enter the "market economy," the Ara­ patista terrorist "liberation army" in surveillance. Among those were Zhou Nan bic daily Asharq Alawsat reported April S. Chiapas, said the GermanEmbassy 's and Xu Jiatun, directors of the New China Dembri asserted, in a press conference in press attache itiMexico City on April London following a seminar at Chatham 6 at a press collference withtwo vis­ News Agency, China's de facto embassy in ' Hongkong. House, that presidential elections will be iting German parliamentarians, it held by the end of 1995 as planned by the was reported utI El Nacional. But he government, and that security issues in Al­ did not deny Utat nearly 3 million geria are under control of the government. marks went to " Red Bishop" Samuel War escalates "Therefore, the Algerian crisis is com­ Ruiz's Human iRightsCenter, a pivot in Tajikistan ing to a close," he added. Dembri character­ of ideological itraining of the insur­ ized the security policy of the Algerian gov­ gency (see E� Special Report on At least one component of the "Thirty Years ernment by saying that security policies in Chiapas, March 31, 1995). War" scenario in Asia, described in the last Algeriaare fully committed to international

issue of EIR , has escalated significantly human rights conventions and are being • BRITISH I MI.5 intelligence since the articlewas written: the violence on closely observed by organizations such as agents foiled aiplot by Irish Republi­ the Tajikistan-Afghanistan border. Amnesty International and the International can Army har1f-liners to assassinate According to statements of the Russian Organization for Human Rights. He denied Sinn Fein PreSiident Gerry Adams in Border Guards' Command, based in the having any discussions with British Foreign Ireland in Janlilary, the London Ob­ Tajik capital of Dushanbe, as carried by Itar­ Secretary Douglas Hurd about Algerian do­ servernewspa Per claimed on April S. Tass news wire, the escalation began on mestic affairs, saying they only discussed I April 7 when over 200Tajik rebels crossed promotion of economic and political rela­ • THE TURJGSH governmentan­ from Afghanistan into the mountainous tions. nounced on ARril S, in a news confer­ Gornyi-Badakhshan region of southeast While Dembri was meeting with Hurd, ence in Diyarbakir, that it had com­ Tajikistan. They killed at least 23 Russian on April 7 in London, Algeria's creditor pleted the witndrawal of 3,000 of the troopsand wounded dozens in three days of banks reached an agreement on reschedul­ 35,000 troops! it sent into northern battles and skirmishes. ing the country's $4 .5 billion commercial Iraq. Itar-Tass quoted General Chechulin, debt with Algeria's commercial banks.

EIR April 21, 1995 International 49 �TIillNational

Clinton draws new battle lines against Gingrich gang

by Edward Spannaus

Amidst the fanfare of Newt Gingrich and his band of glassy­ certainly did not achieve their objectives. "They've made a eyed followers celebrating the conclusion of their first 100 little wreckage, they've caus¥ distractions.... But what days of the new Congress, President Clinton was delivering they've done in net, is they'\le sounded the alarm; and the a markedly different message in an address to the American Minutemen around the country are beginning to stand up in Society of Newspaper Editors in Dallas. In this speech, deliv­ various constituencies, and they're going to mobilize to wipe ered on April 7, the President said that in the first 100 days, this thing out, come the next election. And the effectsof that the initiative may have been with the House of Representa­ will be seen as a process, not just at election time in 1996; tives; but now, "in the second 100 days and beyond, our but we're going to see it over the coming months, into the mission together must be to decide which of these House fall. We're going to see there�s a big movement, coming up proposals should be adopted, which should be modified,and in these United States, which is going to get rid of everything which should be stopped." that looks like, talks like, dr smells like 'Contract with Although the "100 days" didn't technically end until America.' And I think that's the plus side of the story." April 13, House Republicans, led by Speaker of the House The effect ofthis can alreapy be seen, as the battleground "Robespierre" Gingrich, were celebrating a week early with a on the "Contract" legislation ·now shifts to the Senate. Phil rally on April 7 , followed by Gingrich's nationwide televised Gramm is demanding that the Senate pass the House bills vir­ address on April 8. But the celebrations were certainly pre­ tually unchanged, but this simply is not going to happen. Sen. mature, in more ways than one. As House Chief of Staff Robert Dole (R-Kan. )--likeGramm, an announced presiden­ Leon Panetta aptly put it, there was "a lot of press action, a tial candidate-is expected to take a much morecautious ap­ lot of PR, a lot of hype. " proach, as will many Republieans on the Senate side. In fact, the only measures of the Republicans' "Contract with America" agenda which were actually adopted into law, Drawing the Line were those few relatively noncontroversial matters which And now, to add another ,impediment to passage of the were supported by Democrats and by the Clinton administra­ Gramm-Gingrich package, the Senate is working under a se­ tion. The two big-ticket items-the proposed constitutional ries of explicit veto threats from.President Clinton . In his April amendments for officeterm limits, and the Balanced Budget 7 Dallas speech, Clinton, perhaps emboldened by risingpub­ Amendment-were voted down in the House and Senate lic skepticism and opposition tPthe GOP agenda, for the first respectively. And it is widely expected that the hard-core time laid out exactly which items are acceptable and which "Contract" items, such as welfare , tax cuts, and legal and are unacceptable, which measures he can live with, and which regulatory reform, will be substantially modified in the ones he will veto if they remain in their present form. Senate. The President described �is own responsibility in this Asked for his assessment of the "100days" during an situation as being "to lead the (quiet, reasoned forces of both interview on April 5, EIR 's founding editor Lyndon parties in both houses to sift tbrough the rhetoric, and decide LaRouche said that Gingrich and Sen. Phil Gramm (R-Tex.) what is really best for America."

50 National EIR April 21, 1995 Alluding to the populist demagogy of the Gingrich­ reach of ordinary people, and which h� compared to the poll Gramm gang, Clinton remarked that the country has often tax which used to be used to keep blacks and poor people been spurred on "by purist, reformist, populist agendas from voting. He said that a $250,000 ceiling for punitive which articulated grievances and proposed radical depar­ damages will not have a significant d�errent effect on giant tures," but that these initiatives have then been shaped by multinational corporations. . Presidents "who incorporated what was good, smoothed out • Crime: Clinton emphasized hi. support for much of what was rough, and discarded what would hurt." the crime bill as passed by the Hous�, but said that if the "I was not elected President to pile up a stack of vetoes," Republicans try to repeal the commitnjlentto 100,000police Clinton declared. "I was elected President to change the di­ in last year's crime bill, or repeal the, assault weapons ban, rection of America." He then appealed to Republicans and to he will veto the current crime bill. Democrats alike to keep the momentum for change going, • Environment: While stressingIi his own commitment and "not to allow the energy and longing for change now to to environmental protection, Clinton declared: "I cannot and be dissipated amid a partisan clutter of accusations. " I will not compromise any clean wa*r, any clean air, and Clinton then drew a series of lines in the sand as to where protection against toxic waste. The environment cannot pro­ he stands on the current proposed legislation, which can be tect itself. And if it requires a preside�tial veto to protect it, fairly summarized as follows: then that's what I'll provide." He als<1l promised to veto the • Taxes: Clinton said the GOP's proposed $200 billion House-passed requirement for specific levels of compensa­ tax cut is a "fantasy," which we can't afford and can't pass. tion to property owners, saying that if such a law were on the A realistic cut would be somewhere around a third of that, he books in the states, "then local governmentswould complete­ said. He charged that the Republican plan is weighted heavily ly have to give up zoning or be bankruptevery time they tried towardbenefitting the wealthy, who, he said, have done very to change a zoning law." well in "the new global economy," whereas the middle class • Peacekeeping: Clinton will vet� the National Security has suffered stagnant incomes and needs the benefits the Revitalization Act as passed by the HQuse. most. Half of theAmerican people "are working f-orthe same Following his enumeration of poSSible vetoes, the Presi­ or lower incomes than they were making 15 years ago,"· the dent discussed areas of his own ageqda which he wants to President pointed out. promote, including health care reform, the minimum wage, • Welfare: While saying:·he supports welfare reform, and education. I Clinton said the current House bill focuses too much on cutting costs, and that it punishes young cbildren for the sins The FDRLegacy of their parents. "I think that's wrong," he said. "Rich or The President followed up his April 7 Dallas speech with poor, black, white or brown, in or out of wedlock, a baby is an address at ceremonies commemon¢ing the death of Presi­ a baby, a child is' a child. It's part of our future , and we dent Franklin Delano Roosevelt, whi�h were held in Warm have an obligation to those children not to punish them for Springs, Georgia on April 12. He�e, President Clinton something over which they had absolutely no control." evoked FDR's memory to illustrate t�e positive role of the • Cutting the deficit: "There are cuts I can't live with," federal government, and the widesp�ad benefits to the citi­ said the President, and he identified some of these as cuts in zenry which accrued fromRoosevelt' � bold initiatives during education, immunization, school lunches, nutrition pro­ the New Deal, including such matters �s rural electrification, grams, and the like. The Republicans "want the poor in this jobs programs, and social security. I country to bear the burden of two-thirds of their supposed FDR's firstjo b, said Clinton, was � put America back to cuts-their proposed cuts-and only get 5% of the benefitof work. Today, he said, Americans are back to work, but are the tax cuts." Clinton said that the rescission package (cuts insecure, and for many their living standards have actually fromthe current budget) passed by the House was "complete­ fallen over the past 15 years. ly unacceptable," but that he would sign the $16 billion re­ In the decades following Wodd War II, Clinton noted, scission bill passed by the Senate, if the House agrees to the the whole country grew together. "N�thing like it had ever Senate version and it is submitted to him. been seen before. Every income gro4P, every racial group, • Regulatory reform: The President said his adminis­ all were improving their standing, and growing together, not tration is committed to changing "the culture of regulation growing apart." But this began to change around 20 years that has dominated our country for a long time." But, he ago , Clinton continued, and the inequality among working declared: "Ifthe Republicans send me a bill that would let people got worse. Today many peo�le ask: "If there's an unsafe planes fiy, or contaminated meat be sold, or contami­ economic recovery, why haven't I fel� itT' nated water continue to findits way into city water systems, On that score, the President has identified the crucial I will veto it." problem facing his administration. B,t, other than the abso­ • Legal reform: Clinton will veto any bill with a "loser lutely necessary efforts to hold the li�e against the Gramm­ pays" rule for civil suits, which would put justice out of the Gingrich gang, he has not yet identifitd a solution. I

EIR April 21, 1995 National 51 reasons: one, it's nasty; and second, it's wrong." "Friends in London," tlte Wall Street Journal, March 31, "Review & Outlook" editorial: Wednesday's conference at the Royal Institute of Inter­ national Affairs on Britain' a global role was a strangely Brits lash out at instructive event for anyone trying to figure out how Lon­ don's view of itself and the world is developing these days. Clinton for ending . . . The Clinton team . . J believes that "for better or worse," in the words of one senior U.S. diplomat, Germany 'special relationship' is and will increasingly be the Jceydecision -maker in Europe. Some in Washington have gone so far as to promote the idea of dumping close ties with Britain to opt instead for by Scott Thompson close ties with Germany. . . . Henry Kissinger, who attended the Chatham House Instead of their usual sleazy attacks upon President Bill Clin­ bash, was correct to point out Ute sometimes negative impact ton, the British press and some of their Bush-league pals in of the Clinton administration's foreign policy. He highlight­ the United States have recently launched a broader verbal ed in particular that the idea ' of anointing Germany as Eu­ assault against the United States as a whole, denouncing the rope's leader is a bad one-boo for Germany and bad for "ingrateful colony" for abandoning its loyalty to "all things Europe. What's more, Germany doesn't want this role.. .. British." Mr. Kissinger also wisely ur�ed Britain to remain a player The tone of nastiness and hysteria emanating from these in the EU [European Union] ....In other words, the EU City of London and Anglophile quarters suggests that there needs Britain' s Euro-skeptic�m. is growing recognition among the "friends of Windsor" that The Clinton administmti�n should consider the points the break in the Anglo-American special relationship goes raised by Mr. Kissinger. . . . InsteOO of passing over Britain beyond President Clinton's personal animus toward British to consult with the EU (anotber name for Germany to the Prime Minister John Major, and reflects a more far-reaching Clintonites) or lumbering intQ the middle of delicate matters re-thinking of U . S. foreign and economic policy. like the NorthernIreland peace process, the Clinton adminis­ We excerpt below some of the press smears of recent tration should show how mu�h it values having a stmtegic weeks: ally like Britain in Europe. . "The United States Is No Friend or Britain," London Robert Zoellick, "Mother CountryNo More, Britain is Still Sunday Telegraph, March 19j by John Charmley, who says, Sp ecial, " the Wall Street Journal, April 8. Zoellick was an "America helped end the Empire and is now scuppering the undersecretaryof state and White House deputychie f of staff United Kingdom." i in the Bush administration: The good thing about Mr. Clinton shaking the blood­ . . . Commentators are again burying the special rela­ stained paw of Gerry Adams histweek is that it might finally tionship. Rumors about strained personal ties between lead­ destroy one of the most pernicious and damaging myths of ers, frictions over the Irish question and frustrations over recent British history-the ,otion that there is a special Bosnia have roused writers on both sides of the Atlantic. relationship between Britain and the United States. . . . It is fair to ask: Does the special relationship still Every concession made tq America since 1940 has been matter? ... justified by the claim that what was happening was not The special relationship . . . has upended Viscount surrender but skillful hamess�ng of American power to our Palmerston's caution: Nations can have perpetual friends own uses: America's part in the Second World Warand the and allies as well as interests. . .. [But] if the special Cold War seemed to prove tHe point. But the reality is that relationship seems to be fraying, the U. S. should be examin­ America has used her power ruthlessly to help dismantle ing whether it is signaling clear and constant purpose. the British Empire, both by �irect action as at the time of "Britain and U.S. Hope Major Visit Will Heal Rifts," Suez and by indirect action tbrough the United Nations and the London Independent, April 3 , byDonald MacIntyre and the encouragement of every ,ationalist rabble-rouser (such Rupert Cornwell: as Gerry Adams) who shoutC!d loudly enough .... Anthony Lake, President Clinton's national security ad­ As if this were not enough, the Americans have also viser, acknowledged at the weekend that anti-Americanism taken the opportunity to ero

52 National EIR April 21, 1995 The drumbeat for Lyndon LaRouche's exoneration thunders world-wide by Marianna Wertz

The exoneration of American statesman and economist Lyn­ 10, the Schiller Institute announced �hat an additional 29 don LaRouche was the subject of an international mobiliza­ elected officials fromthe Republic of China on Taiwan have tion of hundreds of letters, faxes, phone calls, and telegrams endorsed the call for LaRouche's exoneration, including 28 to the U.S. Congress, President Clinton, and Secretary of current members of the Legislative Yuan (Congress). The State Warren Christopher on April 5, which was declared signers representall three major partie!>on the island-Kuo­ International Exoneration Day by branches of the Schiller mingtang, Chin Tang, and Ming Jing Tang. Institute around the world. Particularly targeted for this mes­ On April 12, the Schiller Institute announced that 20 sage were the chairmen and ranking minority members of Ukrainian Members of Parliament signed the statement, after the Senate and House Judiciary committees, on whom the an address by Dennis Small, one of LaRouche's co-defen­ Schiller Institute has called to hold hearings on the issue: dants and EIR's director of Ibero-American intelligence. Sen. Orrin Hatch (R-Utah), Sen. Joseph Biden (D-Del.), Small was invited to Ukraine by members of the Ukrainian Rep. Henry Hyde (R-Ill.), and Rep. John Conyers (D­ Parliament who had visited Washington in March at the invi­ Mich.). tation of the Schiller Institute (see EIR April 14 , for the report In addition, rallies and demonstrations calling for on the speech by Ukrainian Member of Parliament Natalia LaRouche's exoneration were sponsoredby Schiller Institute Vitrenko). chapters in cities around the world, including Richmond, Pittsburgh, San Francisco, Los Angeles, Cleveland, Colum­ Congressional bearings bus, Philadelphia, Seattle, Houston, Montreal, Berlin, Leading into April 5, the Schiller Institute mobilized a Bonn, and Mexico City. delegation of elected officialsfrom 10 states which descend­ The drumbeat of support for exonerating LaRouche has ed on Capitol Hill during the week of March 27-3 1, to de­ been growing increasingly since his release on parole in J anu­ mand that the political prosecution of LaRoucheand his asso­ ary 1994, after serving fiveyears as a political prisoner of the ciates be included in upcoming hearilllgs on misconduct by Bush administration. the Department of Justice (DOJ). The Senate Judiciary Committee bas already begun the Hundreds of officialsjo in tbe call process of taking testimony in overslght hearings on DOJ On March 15, the Schiller Institute published a full-page misconduct in the cases of the Waco massacre and the massa­ advertisement in the Washington Post. the text of which was cre of Randy Weaver's family. The House of Representa­ an Open Letter to President William Clinton calling on him, tives, with the support of Speaker Newt Gingrich (R-Ga.), AttorneyGeneral Janet Reno, and the U.S. Congress to "take plans to take up the same issue after it$ spring recess, proba­ any and all measures necessary to ensure the full and immedi­ bly in mid-May or slightly later. ate exoneration of Lyndon LaRouche" (see EIR . March 24). The legislators who visited Washington took the position The statement carriedthe endorsement of nearly 500govern­ that to limit the hearings to the Weaver and Waco cases, ment and elected officials from around the world, including which came to their grisly conclusiqns under the Clinton 19 former U . S. congressmen and morethan 250 state legisla­ administration, would mean that the hearings would become tors from40 states. Dozens of current and former parliamen­ a partisan effort against the AttorneyGeneral . Since the mis­ tarians and congressmen fromEurope , Ibero-America, Asia, conduct in those cases reflectsa patterq going back years, it is Africa,the Middle East, and Australia also signed the Open that entire pattern-well established upder the Bush-Reagan Letter, and were among the hundreds of constituency leaders administrations-that must be investigated, and the investi­ who mobilized letters on April 5 as well. gation must include the LaRouche case as well. The subsequent international circulation of that state­ "Our position is that these hearin�s should include the ment, and the effect of the worldwide mobilization on Inter­ LaRouche case, or they should not t�e place," emphasized national Exoneration Day, have begun to open the floodgates Dr. Debra Hanania-Freeman, the leader of the lobbying ef­ on the issue of support for LaRouche's exoneration. On April fort. "Hearings that exclude DOJ m.sconduct in targeting

EIR April 21, 1995 National 53 LaRouche and others, like black elected officials, would be LaRouche himself delivered a televised address to the fraudulent. The role of the Judiciary Committee is not to people of the Dominican Republic on April 5, through an destabilize the administration by proceeding in a blatantly eight-minute videotape which �as aired every two hours on partisan way, but to look into the systemic problems in the two national television channels. department. " In Argentina, officials of the United States embassy in Buenos Aires gave a cordial I reception to a delegation of Delivering the message prominent Argentinians who Were pressing for the exonera­ The elected officials who went to deliver the message on tion. The meeting took place on April 6, according to a exoneration in Washington came from 10 states: Kentucky, statement issued by Congo Antonio Achem, one of the mem­ Michigan, Mississippi, Nebraska, North Dakota, South Car­ bers of the delegation. Significantly, it occurred while former olina, South Dakota, Tennessee, Utah, and West Virginia. U.S. Secretary of State Henry Kissinger, an avowed enemy The message they delivered was clear and well-documented. of LaRouche who played an ihstrumental role in his unjust The evidence that the federal prosecution always knew that incarceration, was in Argentma, and shortly after former LaRouche and his co-defendants were innocent is on file in President George Bush, whdse administration railroaded the federal district court in Richmond, Virginia. And there LaRouche into jail, had left tHe country following a visit to has been testimony from legal experts internationally, docu­ Argentine President Carlos Mtinem. menting the notorious prosecutorial misconduct in the In his official statement on the meeting, Congressman LaRouche case. Achem gave the following account, beginning with his de­ The lobbyists cited the latest legal ruling which pointed mand for "the full exoneration Of Lyndon LaRouche," whom up the prosecutorial misconduct-the Feb. 16 decision vacat­ he characterized "as a political prisoner of the government" ing the New York State convictions of three LaRouche asso­ of the United States. Achem, the release said, "was partof a ciates. In that opinion, New York State Supreme Court Judge delegation led by the private secretary to former President Stephen G. Crane found that the conduct of New York and Arturo Frondizi, Carlos GOQzalez, which also included, federal government agents "raises an inference of a conspira­ among others, Congo Orlandp Gallo. The delegation was cy to lay low these defendants at any cost both here and in received by the Embassy's mihister-counsellor, Ronald Go­ Virginia. " dard. During the meeting, it was stressed that there is concern The officials also cited other statements testifying to the because of the accusations against LaRouche, a Democratic massive judicial misconduct, which had also appeared as a Party figure who was a Presi

54 National EIR April 21, 1995 Jerusalem's Temple Mount-on top of what is today one of the holiest places in Islam, the site of the Dome of the Rock and AI-Aqsa mosque. Jewish Defense League member� linked to the Anti­ Defamation League have already bee� caught transporting explosives up the Temple Mount to blow up these shrines. ChristianCoalition , Should the United States move its embassy from Tel Aviv to Jerusalem, it would give "the Temp,e Mount crazies" far ADL greater leverage to demand control over the Temple Mount. kiss and makeup Prof. Charlie Dyer of the Dallas Theological Society, by Jeff Steinberg and Scott Thompson which is central to this "Armageddonist plot," confirmed on April 11 to a Washington, D.C. journalistthat the Christian On April 3 and 4, the Anti-Defamation League of B'nai Coalition call "would help resolve sovereignty over Temple B'rith held its annual National Commission meeting in Mount favorably." Washington, D.C. at the MayflowerHotel , and the apparent It was Israeli butcher Gen. Ariel Sharon who first con­ highlight of the affair was a speech by Christian Coalition ceived in the early-1980s of forming · an alliance with the executive director Ralph Reed. Both the New York Times Christian right of the "Christian Coalition" variety, as part and the Washington Post covered the Reed appearance, of his plan to annex the Occupied Territories. Sharon and describing it as an "olive branch" to the ADL, following a his associates began reaching out to the Christian right. This year of heated rhetoric between the ADL and the Christian layer became key allies of the plot to blow up the Dome of right. ADL National Director Abe Foxman described Reed's the Rock and AI-Aqsa mosque to rebuild Solomon's Temple speech, in which he admitted that some in the Christian on the Mount. right are anti-Semitic and insensitive to the suffering of the Jews over the centuries, as "a miracle." Bringing on Armageddon There is obviously something rotten afoot. One clue to According to the twisted theolo$y of the nominally the sudden repair of ties between the Anti-Defamation Christian proponents of the Temple Mount scheme, the re­ League and the Pat Robertson apparatus appeared on the building of the temple would bring abopt the battle of Arma­ back page of the March 31, 1995 issue of Forward, a Zionist geddon, followed by the Second Comipg of Christ. Equally neo-conservative weekly newspaper in New York City. The important in their fanatic vision, is tile takeover by Israel Christian Coalition bought a full-page advertisement to pub­ of the Occupied Territories, Eretz Yisrael, which the Temple lish a letter from Reed to Senate Majority Leader Robert Mount crazies believe must be accomplished before the Dole (R-Kan.), which gave the Christian Coalition's full Biblical prophecy of all Jews returning�o Israel would occur, support to efforts to relocate the U. S. Embassy in Israel as a step toward the Second Coming, Thus, the Christian from Tel Aviv to Jerusalem. right "Armageddonists" became a mitior new force in the This "hot button" issue is one surefire way to bust up West Bank settlement schemes, pouri.g in money and vol­ the Israeli-Palestinian negotiations for peace in the Middle unteers. In return, the Likud party in IIsrael sanctioned the East. Reed's letter referenced a recent statement issued by building of a "Christian embassy" in Jerusalem. some Christian leaders urging the Clinton administration to In November 1982, the Anti-De&mation League and take up the issue of a Palestinian right to a presence in other agencies organized a tour in tlte United States for Jerusalem. Prime Minister Menachem Begin, d4ring which he spent Reed countered: "The call for a 'shared city' encourages most of his time consolidating the qhristian right to this some among the Palestinians to persist in unrealistic expecta­ cause. Begin's trip was largely successful, and now, through tions regarding Jerusalem and it undermines the confidence the recent ADL-Christian Coalition "peace treaty," this of the people of Israel that they can take risks for peace coalition has been reestablished as ap explicit anti-peace because no Israeli government could ever repartition or bloc. abridge Israeli sovereignty in Jerusalem." A spokesman for Christian Coaliti�n Executive Director Reed told a Washington-based joumaljist that the "coalition Rebuilding Solomon's Temple has not yet taken a position on the rebUilding of Solomon's The Christian Coalition letter fromReed to Senator Dole Temple. In fact, Ralph Reed may not J:>eup to speed on the endorsing the move of the U.S. Embassy from Tel Aviv to issue." Jerusalem constitutes de facto support for "the Temple However, the spokesman confirm�d that Reed had pro­ Mount crazies," an unholy combination of Christians and posed moving the U. S. Embassy from leI Aviv to Jerusalem Jews who are prepared to resort to terrorism to fulfill the in order "to help preserve the peace; of the settlers there Biblical prophecy to rebuild the Temple of Solomon on against Palestinian terrorism."

ElK April 21, 1995 National 55 The principles embodied in the preamble to the U. S. Consti­ tution, to "form a more perfect Union" and "to promote the general welfare," were iO polemical opposition to the imperial looting programs of theBritish East India Company Venice, not so glorious masquerading as "free trade," whose ideologues such as Adam Smith were straight plagiarists of the Venetian 18th­ upon closer inspection century proto-"game theorist," Giammaria Ortes, who pion­ by Nora Hamerman eered such anti-human ideas �s the earth's "limited carrying capacity" and "overpopulation."

What was Venice? A number of articlesin Ell? . New Federalist, and Fidelio The Gloryof Venice: Art in the Eighteenth magazine over recent years bave developed the image of Century Venice-which is often pres¢nted as a second center of the Edited by Jane Martineau and Andrew Robison Renaissance afterFlorence-as a capital of the world oligar­ Yale UniversityPre ss. New Haven and London. 1994 chy which took on all the characteristics of oriental despotism 527 pages. illus .. with bibliography; $55 from the Babylonian and Byzantine empires and never really hardbound. $39.95 softbound. became part of western civiliiation. From Webster Tarpley's Nov. 18, 1994 article in EIR , entitled "Venice's War against Western Civilization," we Temporal coincidence may be about the weakest form of take the following succinct description of the Venetian oli­ causality, although it is frequently resorted to, by ambitious garchist mentality: "Oligarch�identify wealth purely in mon­ politicians and sloppy journalists. Thus, "it stopped raining," ey terms, and practice usury, Imonetarism, and looting at the or, the Berlin Wall fell "during my administration," therefore expense of technological adv�ncement and physical produc­ "I take credit for this positive change"-ifl am George Bush, tion. Oligarchs have always ,been associated with the arbi­ for example. It was not much more convincing when Andrew trary rejection of true scientificdiscovery and scientificmeth­ Robison, the otherwise punctilious curator of the exhibition od in favor of open anti-science or more subtle obscurantist "The Glory of Venice" -seen late last year at the Royal pseudo-science ....The oligarchy has constantly stressed Academy of Arts in London and on view Jan. 29-Apri1 23 at race and racial characteristics, often as a means for justifying the Washington, D.C. National Gallery of Art-told the slavery." press that the exhibition of Venetian paintings, prints, and Tarpley explained: "A piUarof the oligarchical system is drawings of the 18th century is related to the American found­ the family fortune, or fo ndoj as it is called in Italian. The ing fathers, who, like Venice, he alleged, exemplified the continuity of the family fortune which earnsmoney through thinking of the Enlightenment. It·s just not so. usury and looting is often mote important than the biological But the exhibition is worth seeing, for two somewhat continuity across generations of the family that owns the contrary reasons. One is that viewing such a broad range of fortune. In Venice, the large$tfondo was the endowment of the art of Venice at the time when the treacherous "republic" the Basilica of St. Mark, which was closely associated with was at its nadir of overt political power but at its zenith of the Venetian state treasury, and which absorbed the family cultural hegemony (and hence of covert political power) is fortunes of nobles who died without heirs." bound to offer valuable lessons regarding the manner and By sometime in the early 16th century, the oligarchswho means of cultural warfare and subversion practiced by Ven­ ruled Venice had determined! they could not directly destroy ice's latter-day oligarchist pupils today centered in the City the greatest fruits of the Golden Renaissance which had of London. spread from Florence in the second half ofthe 15th century­ The second reason, which will be developed in the last modern science, and the mOdern nation-state-and there­ part of this review, is that there were indeed real artists in fore, they determined to undtrmine these from within. Venice, particularly among those individuals who had a gift As Tarpley put it in "Palmerston's London During the for penetrating into the bizarre mix of comedy and tragedy 1850s, a Tour of the Human, Multicultural Zoo" (EIR . April which surrounded Venice, and often among those who were 15, 1994), from the early 16th century onward, "Venice was the less famous in their own day. a cancer consciously plannin¥ its own metastasis. From their Just to set the record straight: The "Serenissima Repub­ lagoon, the Venetians chose! a swamp and an island facing blica" of Venice in its waning days, before it fell to the the North Atlantic-Holland and the British Isles. Here the invading Napoleonic army in 1797, was coincident in time, hegemonic Giovani party wOuld relocate their family for­ but opposite in intention, to the noble experiment of founding tunes, their fo ndi, and their characteristic epistemology. the American Republic. One crucial example can be cited: France was also colonized, !but the main bets were placed

56 National EIR April 21, 1995 'The Opera Rehearsal, " painted in London by Marco Ricci, c. 1609. (Private collection, U.S.A. further north." sia, who made Algarotti his court Cha berlain at the palace Tarpley further explained this in "How the Dead Souls of of Sanssouci in Potsdam. ri Venice Corrupted Science," (EIR , · Sept. 23 , 1994). There were three consecutive important groups of "Venetian dead Compare Venice with the real Renaissance souls" who attempted to suffocate scientific discovery by Keeping all of the above in mind as background, it was "using formalism and the fetishism of authoritative profes­ most instructive that there was an ovdrlap of six weeks be­ sional opinion." The firstwere active in the firstpart of the tween another major show at the Nat'bnal Gallery, the one 1500s, the second group opposed Johannes Kepler in the dedicated to Italian Renaissance Architecture, and the Venice early 1600s, and the third group, around Antonio Conti and show . The visitor who studied the rrlagnificent models of Giammaria Ortes in the early 1700s, coincides with the paint­ St. Peter's, the Cathedral of Florence and the Cathedral of ings exhibited in the London-Washington show . Pavia, dating from the mid- 1 400s to he end of the 1500s, The apotheosis of the occultist magician Sir Isaac Newton and then walked to the other wing of the West Building to as a "great scientist" which is almost universally accepted see the Venice show, would have been struck by how much today--despite the fact that his only "achievement" was a of the stylistic forms of the Renais ance were metamor­ distorted cribbing from Kepler-was arranged, as Tarpley phosed, yet still recognizable, two cerlturies later in the Ve- shows, by Antonio Conti of Venice, who succeeded in shap­ netian art. ing a network of French Anglophiles and posed himself as The famous Venetian "view" painItings seem to capture I a "mediator" in the polemic over the calculus then raging many of the architectural forms which Brunelleschi, Braman- between Newton and the great German economist, physicist, te, Michelangelo, and others had rediscovered and recast and philosopher Leibniz, when in fact he was a total partisan from Greco-Roman antiquity, and to tiathe them in the bril­ of Newton's reductionist views. liant light for which Venetian art has �bng been famous. By Then there was Algarotti, another Venetian in Conti's comparison with French imitations of the same era (let alone circles who wrote , in Italian, Newtonian Philosophy fo r La­ the Impressionist School of a centurx later) these pictures dies. Algarotti was a close friend of the most celebrated have, undeniably, much to charm the eye and even to appeal French libertine, Voltaire, whose short novel Candide, was to the intellect. But it is when one studibs the treatment of the a "distillation of Venetian cultural pessimism expressed as a human figure, and human relations with�n "history paint­ raving attack on Leibniz, through the vicious caricature Dr. ings," which from the l300s onward were always the pivot of I Pangloss." Algarotti was also involved in forming the homo­ Italian art , that a startling insight is gained into the Venetian sexual harem around British ally Frederick the Great of Prus- version of the Renaissance . Saints, o� ancient heros, when .

EIR April 21, 1995 National 57 imitation of the Creator, strives through his own actions to become e:er m�re in the like�e�s of God as well. Not acci­ dentally, In a city where pr tltutes outnumbered married women and nuns by about ten t one, holy women and mytho­ logical figures alike are nearl� always portrayed with a good deal of exposed breast and/or dimpled derriere to add titilla­ tion to whatever alleged motal lesson is contained in the picture. I Although Venice itself remained nominally Catholic, Christianity played a distant s cond or third part to the Rea­ sons of the State in the City of the Lagoon , as it did largely in the Protestant satrapies of �enice in the north, Amsterdam and London. In Piazzetta's w9rk, his famous genre paintings of fortune tellers and low-life oh aracters blend almost without distinction into the altarpieces! because both share a preoccu­ pation with the momentary sehsation. The most celebrated 18th1century Venetian artist on an internationalsca le was Giova ni Battista Tiepolo, renowned as a "great decorator." Tiepol 's pictures share the sensation­ alism of Piazzetta, but instea3tl of semi-bestialized low-life characters, Tiepolo preferred to tum almost all of his figures into simpering oligarchs. A �articUlarly telling example is his "St. James the Great Con�uering the Moors" (1749), in which the conquered "Moor'l is shown as a black African slave, a rather explicit acknowledgment of Venice's role I in establishing the black African slave trade two centuries I "The Rhinoceros," 1751, by Pietro Longhi. (Ca'Rezzonico, earlier. But for all his tremen10us celebrity, then and now, it Venice) is only slightly exaggerated t observe that all of Tiepolo's vast output-like airline food looks and tastes alike. , The exhibit offers a multitfde of examples of how Venice "metastatized" into northern Europe, particularly into Great they appeared in paintings of the original Renaissance, are I shown undertaking significant deeds within appropriately Britain, then building its world empire on the Venetian model beautiful settings. Typically for the cycles of Bible stories of looting and exploitation: Abong these, is a picture which and saints' lives in the 15th-century Renaissance, it is only is the combined effort of three �amous Venetian artists, Cana­ in the final painting of the mural cycle that we encounter the letto, Piazzetta, and Cimaroli k 1726), the " AllegoricalTomb of John, Lord Somers," or th hilariously titled "Allegorical hero in ecstasy, contemplating his or her own death and I transport to the purely spiritual realm. The mystical state Tomb of Admiral Sir Clowdisley Shovell" by Marco and which the saint attains is always affirmed as an important Sebastiano Ricci (1725). Likbwise, one of Piazzetta's most I reality, but it is "earned" and truly continuous with his self­ elegantly illustrated books is fil Newtonianismo per Ie Dame, transformation and constant growth of character seen in his ovvero dialoghi sopra la lucel e i colori, the aforementioned earthly actions. Newtonian Philosophy fo r Ladies, published by one of the In Venetian art, all these intermediate steps are ruled out most famous Venetian publ�shers, Giambattista Pasquali. or turned into mere incidentals in the spectacle of martyrdom The catalog entry recounts, "The author simplifiedNewton 's or ecstasy, as the paintings by Piazzetta, one of the featured scientific theories of light and discussed the existence of artists in the exhibit, especially show ("Virgin and Child mechanical laws governing tHe celestial bodies; the fact that Appearing to St. Philip Neri," 1725; "Guardian Angel with it was first published anonytnously and with the place of St. Anthony of Padua and St. Gaetano Thiene," 1727; and publication falsely given as NaPles, whereas it was probably "Ecstasy of St. Francis," 1729). This is not merely because in published in Venice or Padua,l may have been a precautionary the wake of the Council of Trent, Catholic Church authorities measure to avoid Venetian c nsorship in a city that still de­ clamped down on the range of legend and fantasy artists were fended the belief in the divins nature of the celestial world." allowed to use in weaving narratives of the lives of the saints. Publisher Pasquali, describedj as a shrewd businessman, was Rather, it is a genuine subversion and ultimate reversal of the a close friend of Consul Smith, the English consul who fos­ Christian-humanist message of the Renaissance, in which tered the close relations between Venetian art and British man, born in the image of God with the potential to create in aristocratic collectors.

58 National EIR April 21, 1995 "Ruins of the Kreuzkirche, " 1765 , by Bernardo BJUotto. (Dresden, Staatliche Kunstsammlungen)

But irony also intrudes Venetian aristocrats viewing a rhinoceros. This is not to say that everything in this show is merely A number of other genre paintings are witty documents of I sensationalist propaganda for the Venetian world-outlook. Venetian practices and ideology. The view painter Francesco Two artists who conformed less and stood in the shadow of Guardi gives a peek into the sinister environment of the gam­ their more successful relatives, stand out for a more thought­ bling casinos where Giammaria Ortes 4eveloped his theories ful contribution to the history of art and thought. One is of statistical chance and probability , "The Ridotto," 1754-58, the nephew of the famous view-painter Antonio Canaletto, which corresponds in date precisely to brtes's firstwriting s. Bernardo Bellotto, who also went by the name "Canaletto." Much earlier, Marco Ricci, a Venetian artistwho traveled It seems to be the view of the exhibit's curators that Bellotto with his more famous relative Sebastikno Ricci to England surpassed his uncle in depth of feeling and originality , and in 1712-16, left a memorable image 0 an opera rehearsal in this is a view with which this reviewer concurs. Bellotto London from the days when opera was dominated by male left Venice to travel widely throughout northern Italy and castrati sopranos, one of Venice's ldading exports of the northern Europe, adopting a somber palette which is distinc­ day. The influence of Venice on m sical life in Europe, tively his own. His picture of "The Ruins of the Kreuzkirche particularly in Vienna and throughout the German-speaking in Dresden" (1765) is shocking for its almost photographic countries as well as in England, can har:dly be overestimated. realism, and at firstgla nce one might think it depicts Dresden Mozart's Italian librettist, Lorenzo da �onte, was also Vene­ after the World War II firebombing. tian, which affords something of an explanation of the im­ Giandomenico Tiepolo, the son of the famous decorator, moral features of Don Giovanni whicH later perplexed Bee­ 1 added a touch of melancholy irony to his drawings, paintings, thoven. Curator Robison pointed out t at Sebastiano Ricci's and etchings which oftensurpass the productions of the slap­ picture, "The Punishment of Cupid" ( 706-07), is typical of dash father. His 24 etchings of the "Flight into Egypt" were the Venetian/Enlightenment mentalityl in that Cupid, shown certainly influenced by Rembrandt, not only in the technique being whipped and plucked by winged avengers after he of using black and white to achieve an incredible coloristic abandons Psyche, is allowed to enjoy His illicit pleasures but range of shades, but also in his imaginative creation of sub­ that ultimately justice is done, as in tlie denouement of the episodes and sidelights of the bare Biblical narrative, remi­ Mozart opera Don Giovanni, where the!libertinehero is taken niscent of Rembrandt's treatment of the story of Tobias. to hell after seeming to get away with everything until the Then there is Pietro Longhi, who specialized in the small end of the opera. One can't help suspebting that for Venice, narrative genre scenes which were often painted by other which managed to maintain signific+t cultural influence Venetian artists as a sideline. Longhi's insights into Venetian long after the demise of the Republic in 1797, the pleasures hypocrisy are delicate and ironical, as in the most famous of still seem more important than the pJin-especially if the ·his pictures, featured in the Washington show, of masked pain can be passed along to others.

EIR April 21, 1995 National 59 Congressional Closeup by William Jones

D,Amato calls for hailed by the U. S. supporters of the As a result of Torricelli's disclo­ trade boycott of Iran Israeli Likud party, such as Frank sures, 12 senators, including Republi­ Alleging that Iran has placed chemical Gaffney's Center for Security Policy, can Jarpes Jeffords (Vt.), sent a letter weapons in the Strait of Hormuz, who are intent on derailing the Middle to President Clinton asking him to Anti-Defamation League-henchman East peace process. move to secure and review for selec­ Sen. Alfonse D'Amato (R-N.Y.), to­ tive declassification "all U.S. govern­ gether with Rep. Peter King (R­ ment �ecords pertaining to human N. Y.), introduced legislation on rights qases in Guatemala." March 27 that would place sanctions on foreign companies that trade with T orricelli committee Iran. The measure was immediately assignment threatened endorsed by the American-Israeli House Intelligence Committee Chair­ Public Affairs Committee (AlPAC) as man Larry Combest (R-Tex.) has Sen.te approves largest part of its own "Plan of Action" threatened to throw Robert Torricelli spending cuts in years against Iran. (D-N.J.) offthe committee for Torri­ The SJnate on April 6 unanimously According to the Washington celli's alleged public disclosures of passed the largest spending cuts in re­ Post, the legislation would "prohibit CIA covert operations, saying that cent years. Although the legislation the U.S. government from doingbusi­ they violate a House secrecy oath and, is indi�ative of the "slash and bum" ness with any corporation anywhere possibly, the oath taken by members mentality now prevalent on Capitol that does business with Iran, ban any of the committee not to reveal infor­ Hill, the bill is less destructive than its U. S. exports by or to such a company, mation they learnfrom the committee. House counterpart. and prohibit the importation into the The House "secrecy oath" was in­ A final compromise worked out United States of any goods produced troduced in the l04th Congress under between Majority Leader Bob Dole by a company doing oil business with House Speaker Newt Gingrich (R­ (R-Kart.) and Minority Leader Tom Iran or selling Iran goods with a poten­ Ga.). It bars legislators from revealing Daschle (D-S.D.) restored $834.7 tial military use." The United States is classifiedinforma tion. million for education reform, thena­ Iran's largest trading partner. Torricelli disclosed information tional service, drug-free schools, Earlier this year, D' Amato had in­ about a paid CIA informant's involve­ housing modernization, Head Start, troduced legislation calling for a total ment in two murders in Guatemala. Indian housing, and child nutrition trade embargo between the United He wrote a letter to President Clinton programs. The Senate version also States and Iran. The new legislation is about the incident, and Clinton or­ leaves intact a $1.3 billion annual fed­ also intended to muscle foreign com­ dered a government-wide investiga­ eral subsidy that helps poor people panies to impose an embargo on Iran tion into the matter. Torricelli also pay thbir utility bills that had been or else suffer the risk of being blocked went public with the information at a eliminated in the House version. from trading with the United States. press conference in the House Radio The amounts restored in the bill "Simply put," said D' Amato in a and Television Gallery on April 7. are small, but were praised by Demo­ statement put out by his office, "a for­ Torricelli said that he did not receive crats for their symbolic value. The bill eign corporation or person will have to any of the information from intelli­ also retains a commitment to give Jor­ choose between trade with the United gence panel briefings and therefore dan $275 million in promised debt re­ States or trade with Iran." did not violate the oath he took as a lief, the elimination of which in the The measure is also meant to pres­ committee member. House bill put an additional strain on sure the Clinton administration to take With regard to the newly instituted the Mideast peaceproc ess. harsher measures against Iran. In mid­ "secrecy oath," Torricelli said that The Clinton administration lob­ March, the administration put a stop there was a clear conflict between a bied hard to get the debt relief restored to a major oil deal with Iran planned House oath to protect classified data, by the Senate after it had been elimi­ by Conoco. Later, it attempted to and his oath of office to uphold the nated by the House. The Senate com­ thwart a Russian deal with Iran around Constitution. Secrecy oaths were "not promise will again face a fightwhen it the development of nuclear energy. designed to shield unlawful behav­ goes to conference. "The House is not The moves against Iran are being ior," he said. going :to simply roll over and take

60 National EIR April 21, 1995 whatever they have done," House Ap­ Sen. Alfonse D'Amato (R-N.Y.) Simpson has refusedto meet with propriations Committee Chairman has also introduced legislation that AARP leaders to discuss his alleged Bob Livingston (R-La.) told the would limit the use of the Treasury concerns. Simpson also complained Washington Post. Department's currency stabilization that AARP's demand for long-term fund to $5 billion to any one country health care for all Americans would in a single year. "truly bring the country to its knees."

Republicans try to derail Mexico rescue package 'T ax cut for the rich' A provision sponsored by Rep. Chris­ Simpson targets AARP pushed in the Senate topher Cox (R-Calif.) aimed at unrav­ in finance investigation Senate Republicans on April 6 prom­ eling the Clinton administration's fi­ Sen. Alan Simpson (R-Wyo.), chair­ ised to press for a package of tax cuts nancial aid package to Mexico, was man of the Senate Finance Subcom­ similar to that passed by the House. appended to the defense spending bill mittee on Social Security, announced Led by Presidential "hopeless" Phil on April 4 and passed by a House­ on April 7 that he and his staff were Gramm (R-Tex.), .conservative Re­ Senate conference committee on a investigating the American Associa­ publicans want to follow in the wake voice vote. The measure declares that tion of Retired Persons (AARP) and of their House counterparts and grease no loan, credit, guarantee, or currency examining that organization's ac­ the palms of their wealthy constit­ swap could be made to Mexico until counting records, hiring practices, uents. the President certifies that he has pro­ and financial interests. "I think this tax cut will strengthen vided documents required by a March Simpson's targeting of the AARP the economy," Gramm whined. A I House resolution. is widely viewed as a prelude to Re­ Senate measure would also include a The March I request for documen­ publican attempts to "put Social Secu­ $500 per child tax credit as a sop to tation came in reaction to President rity on the table" for cuts in an attempt the "middle class," illS well as a consid­ Clinton's tapping, in the face of con­ to balance the budget. erable reduction in: the capital gains gressional opposition to any Mexican The AARP is a powerful voice for tax. aid package, the little-known Trea­ retired people, most of them recipi­ Passage of such a measure in the sury Department currency stabiliza­ ents of Social Security. If Simpson Senate will, however, not be as easy tion fund to finance the package. Al­ were successful in seriously damaging as it was in the House, where frenzy though the administration had said AARP's ability to function, it would over the Contract with America has that it would comply and send the be much easier for him and his Con­ well-nigh destroyed any ability by Re­ House the requested documents, servative Revolution cronies to gut publicans to weigh the consequences Spencer Bachus (R-Ala.), chairman Social Security as a part of their of their actions. Tax cuts are opposed of the House Banking Subcommittee "deficit reduction" insanity. Up until by the two chairmen of the Senate Fi­ on Oversight, complained that the ad­ now, Social Security has been consid­ nance and Budget Committees, Bob ministrationwas responding too slow­ ered sacrosanct by the budget-cutters, Packwood (R-Ore.) and Pete Domeni­ ly. Therefore, the House upped the but the spokesmen of the Conserva­ ci (R-N.M.), respectively. More in­ ante with this added legislation. tive Revolution have made it clear that terested in instituting an "austerity re­ "Now is the wrong time for Con­ they intend it for massive cuts. gime" that can "balance the budget," gress to be taking actions that could "They're a huge cash-flow opera­ Packwood and Domenici aren't keen have the effectof disturbing financial tion," the New York Times quoted on putting any money into a new tax markets when confidence should be Simpson as saying. Some "33 million cut. strengthening," warnedTreasury Sec­ people paying $8 dues, bound togeth­ Majority Lead¢r Bob Dole (R­ retary Robert Rubin in response to the er by a common love of airline dis­ Kan.), who has anllounced his cam­ measure. Rubin said his department counts and automobile discounts and paign for Presiden�, and Whip Trent was providing the required records pharmacy discounts, and they haven't Lott (R-Miss.), ar¢, however, com­ and would be "able to certify" that the slightest idea what the organiza­ mitted to passing a �ubstantial tax cut documents were provided. tion is asking for." this year.

EIR April 21, 1995 National 61 NationalNews

Asked if the Contract with America's warburg Lord Armstrong, and Clayton ' proposed tax break will free up private mon­ Y eutter, ecretary of agriculture in George ey for research and development, Brown Bush's al ministration. Tomer attacks responded, "It never has before ." He de­ scribed the various tax cut proposals as "po­ Clinton in Brazil litical gimmicks ," and said he would not British-run fascist Alvin Toffler, who per­ vote for any of them. sonally recruited U.S. House Speaker Newt Brown began his meeting with the press u.s. anti-nuclear plotter Gingrich (R-Ga.) as one of his "Future by stating that he was surprised that report­ Shock" troops, denounced President Wil­ ers even showed up, because he has "little used $ritish psywar plan liam Clinton during a recent junket to Bra­ ability to create news anymore"-express­ The leadihg figure in developing the 1970s zil. In an interview on April 7 with the daily ing the frustration of many mainstream campaigrlto destroy the U . S. nuclearindus­ o Gloho, Toffler raved,"I believe that Clin­ Democrats at the bipartisan insanity grip­ try credi� Britain's chief of psychological ton is immature , is surrounded by too-young ping the current Congress. Brown stressed warfare df:ing World War II for his inspira­ people, doesn't know how to govern, and is the necessity of a vision for the future of tion, acc

62 National ElK April 21, 1995 Brtldly

• THE IRS !:)as now joined the "Get Clinton" task force, according to New York Post columnist John Crudele. Crudele claimed on April 3 letter from Deputy Attorney General Jamie u.s. News and World Report who also that the IRS is investigating whether Gorelick. worked for Cable News Network (CNN) , is Arkansas businessmen were given Gorelick also issued letters of censure connected with the Israeli Mossad, and is loans from the . Arkansas Develop­ to the FBI, to the U.S. Marshal's Service, also believed to have ties to the U.S. mil­ ment Finance AUthority, in returnfor and to the U.S. Attorney in Idaho, all of itary. kickbacks to then-Gov . Bill Clin­ whom were criticized for their handling of Emerson startedoff by claiming that he ton's election campaigns. the I I-day siege and for the shootings. Gor­ and his colleagues have collected "more elick issued her censure letter to Potts on the than 150,000 documents, records, videos, • WALL STREET austerity-mon­ basis of a 542-page Department of Justice tapes, manuscripts, and publications, and ger Peter Petersqn declared, in a New report on the incident. reports" which solely deal with the issue of York Times cominentary on Aprll 9, Potts was censured for issuing "rules of "radical Islamic fundamentalism. " "Fiscal control tequires cost-cutting engagement" to agents on the scene, saying Emerson attacked nearly all Islamic in­ reforms across all major entitlement that FBI sharpshooters "could and should" stitutions operating in the United States for programs," and "it simply can't be use deadly force against anyone at the scene "sponsoring terrorist activities abroad," and done" without c�tting Social Securi­ carrying a weapon. did not even spare the charity organizations ty , which he cl$s is "frighteningly Potts denied that he ever issued the or­ which send money to the orphans and the unsustainable." . der, which Gorelick described as possibly needy in Palestine. unconstitutional. Two senior FBI agents at • ROBERT MCNAMARA now the scene, however, including the head of claims he regrets the Vietnam War. the Bureau's hostage rescue team, said they In his memoir In Retrospect: The spoke with Potts an hour before the Vicky Tragedy and Lessons of Vietnam, Weaver murder and received the explicit McNamara writes that he and his col­ new rules of engagement. One-third of U.S. schools leagues "were: wrong, terribly FBI agents areonly allowed to use dead­ wrong," about the war. McNamara ly force when there is an immediate threat need extensive repair claims he wrote the book because "I to their lives. In the first national survey of the physical have grown sick at heart witnessing Gerry Spence, Randy Weaver's attor­ condition of schools in the United States the cynicism and even contempt with ney, sharply criticized the Gorelick letter conducted since 1965 , the General Ac­ which so many peopleview our polit­ in an interview on April 5 with Associated counting Office has found that one-third of ical institutions and leaders ." Press: "She finds everybody did everything them require "extensive repair or replace­ wrong under the supervision of Potts, who ment of one or more buildings." The total • GEORGE 8USH will address is going to be the number two man in the cost of upgrading the facilities to a satisfac­ Citibank-sponsored conferences in FBI, but the result is nobody is prosecuted tory condition is estimated at $112 billion. Hanoi and Ho Chi Minh City, Viet­ and nobody goes to jail. It is very frighten­ Almost 60% of U.S. schools have one nam in Septemtkr 1995 . He would ing if the FBI can get away with killing by major building in disrepair, which needs "to be the first U. S. President to visit decree , and that's what's being glossed over be extensively repaired, overhauled, or re­ Vietnam since Lyndon Johnson in here ." placed." About half of U.S. schools report 1966. His pres$ agent claimed that having at least one unsatisfactory environ­ Bush "doesn't really have a political mental condition, such as poor ventilation, agenda in going there ." heating, or lighting, or inadequate physical security. • AT&T has been granted permis­ Anti-Islamic propagandist Many school officials told General Ac­ sion to offer long-distance service be­ counting Office surveyorsthat their districts tween the United States and North putTs terrorist threat have been forced to defer "vital maintenance Korea. The Federal Communications Steve Emerson, producer of the recent Pub­ or repairexpenditures from year to year due Commission recently approved the lic Broadcasting System propaganda docu­ to lack of funds." proposal, following the Clinton ad­ mentary "Jihad in America," recently used On top of $10 I. 2 billion to repair and ministration's January decision to the U.S. Congress as yet another forum to upgrade school facilities, an additional ease sanctions on Pyongyang. demonize Muslims and Arabs in the United $10.7 billion is projected to meet federal States and abroad . Emerson appeared as the mandates, such as providing or improving • JACK KEl\JP has been named lead witness at a hearing on April 5 of the access for handicapped individuals. This in­ by House Speaker Newt Gingrich (R­ House International Relations Committee cludes $2.4 billion for removal of asbestos Ga.) and Senate Majority Leader Bob on ''The Threat of Islamic Extremism In insulation, a supposed health threat wildly Dole (R-Kan.) t4l> head a study of the Africa." exaggerated in the U. S. news media gen­ "flattax" and "e¢onomic growth." Emerson, a former correspondent for erally.

EIR April 21, 1995 National 63 Editorial

The hand behind terrorism

While attention has been focussed on the March 20 from a French reprocessing plant to its country of ori­ poison gas attack in Japan, it is instructive to recognize gin, Japan. how the activities of Greenpeace are operating in tan­ When we reflect upon the kind of mentality evi­ dem with the international media coverage centering denced by the puppet-masters who deploy groups such on the Aum Supreme Truth sect as the leading suspects as Greenpeace, we visualize the face of the man who in the subway terror. Both operations aim to create the said of himself: "In the event that I am reincarnated, I maximum chaos and destabilization within Japan and would like to returnas a deadly virus, in order to contrib­ in Asia generally. ute something to solve overpopulation." These are Who is the puppet-master? In last week's EIR Prince Philip's sentiments, �s stated in his 1986 Fore­ (p. 36), we pointed to growing evidence that the British word to Fleur Cowles's book People as Animals, . oligarchy bears ultimate responsibility for the acts of Every time we read of innocent people being massa­ "blind terrorism" perpetrated in Tokyo. cred, we must reflect on the deeper issues involved and In the case of Greenpeace, we have extensively the true face of evil. We are involved in a life-and­ documented the role of Prince Philip and the oligarchic death struggle, indeed, a wlU'. The use of the weapon planning committee known as the Club of the Isles. It of seemingly aimless terro�, such as that used in the is the Windsor family, on behalf of an international poison-gas incident, or the more targeted violence oligarchy, which is at the center of operations intended against ships carrying plutonium, is not an instance to destroy the nation-state (see EIR , Oct. 28, 1994, of isolated violence, and certainly not a sociological "The Coming Fall of the House of Windsor") . phenomenon. Rather, it is irregular warfare being Japan is now a target of the environmentalist move­ waged against the nation-state. ment worldwide, according to the propaganda issued Japan, along with Chinaiand other nations, is being by the environmentalist groups themselves. Not only is targeted for fear that it will line up in the American the Japanese nuclear industry under attack, but also camp , at a time when the internationalfinancial system logging and mining operations, and chemical and fish­ is disintegrating and decisions must be made about a ing industries. In the eyes of the puppet-masters , the new world financial system.: Japanese have committed a serious sin: They have so The real target of the oligarchs who are running this far been unwilling to destroy their physical economy at war is civilization itself. They hope that by orchestrat­ the same rate as has occurred in Prince Philip's base of ing a chaotic environment ih which "random," unpro­ operations in the British Isles. voked violence becomes the norm, they can impose Mitsubishi has been singled out for attack by the their will and replace the republican nation-state. Greens as far afield as the Amazon, the United States, They cannot be allowed to reverse the great Canada, Siberia, Australia, New Guinea, and Indone­ achievement of the Renaissance, which created a Chris­ sia. Its plants have been sabotaged, and terrorism has tian civilization based upol1 the nation-state. A first included bombings of its plant and equipment. step in defeating terrorism is to recognize that, while While many environmentalist groups are involved terrorists must be identifie� and stopped, terrorism it­ in such terrorist acts , the unique thing about self will only be wiped out {vhen we have defeated the Greenpeace is the paramilitary nature ofits operations. evil force exemplifiedby th� British monarchy resident For example, in January and February, it deployed in London. A small group of oligarchs cannot defeat an ships and helicopters against the Japanese shipping organized force of men and women who know that fleet. The group's major focus, however, has been they are defending not only their homes, but the very against Japanese reprocessing of plutonium fuel. civilization which allows us to realize our purpose here Greenpeace's ship MV Solo is currently tracking a ship­ on earth , as men and women created in the living image ment of plutonium waste on its still-undisclosed route of God.

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