EIR Special Reports

Kissinger's Plot to Take Over banks, and place top-down control over U.S. credit under a the Reagan Administration handful of financial conglomerates which are modeled on the The surprise naming of Henry A. Kissinger to head the Presi­ turn-of-the-century Morgan syndicate and created by "dereg­ dent's Bipartisan Commission on Central America was part of ulation." This cartel will impose economic austerity on the United a larger long-term operation by the man who has been char­ States, slashing the defense budget, and giving the Federal acterized as acting as Moscow's unpaid ambassador. The Reserve Board the power to dictate reduced levels of industrial report includes dossiers on the top Kissinger-linked people in production, wages, prices, and employment. government, including Bud McFarlane, Brent Scowcroft, Law­ Order 83-014 $250.00 rence Eagleburger, and Helmut Sonnenfeldt. Essential for un­ derstanding current battles over National Security Council, Will Moscow Become the Third Rome? Defense, and State Department policy. How the KGB Controls the Peace Movement Order 83-015 $250.00 The Soviet government, in collaboration with the hierarchy of the Russian Orthodox Church and the World Council of The Economic Impact of Churches, is running the international peace and nuclear freeze the Relativistic Beam Technology movements to subvert the defense of the West. The report The most comprehensive study available in non-classified lit­ describes the transformation of Moscow into a Byzantine­ erature on the vast spinoff benefits to the civilian economy of modeled imperial power, and features a comprehensive eye­ a crash beam-weapons program to implement President Rea­ witness account of the proceedings of the May 25 "U.S.-Soviet gan's March 23 strategic antiballistic-missile defense doctrine Dialogue" held in Minneapolis, where 25 top KGB-connected of "Mutually Assured Survival." The study, incorporating pro­ Soviet spokesmen and leaders of the U.S. peace movement, jections by the uniquely successful LaRouche-Riemann eco­ including leading advisers of the Democratic Party, laid out nomic model, examines the impact on industrial productivity their plans for building the U.S. nuclear freeze movement. and real rates of growth through introduction of such beam­ Includes a list of participants and documentation of how the defense-related technologies as laser machine tooling, plas­ KGB is giving orders to prevent President Reagan's re-elec­ ma steel-making, and fusion energy technologies. Productivity tion and U.S. beam weapons development. increases of 300-500 percent in the vital machine-tool sector Order 83-001 $250.00 are within reach for the U.S. economy within two years. Order 83-005 $250.00 Anglo-Soviet Designs on the Arabian Peninsula Politics in the Gulf region from the standpoint of a "new Yalta" The Real Story of Libya's Muammar Qaddafi deal between Britain's Peter Lord Carrington and Moscow to Why the Libyan puppet was placed, in power, and by whom. force the United States out of the Middle East. The report Examines British intelligence input dating to Qaddafi's training details the background of the "Muslim fundamentalist card" at Sandhurst, his Senussi (Muslim) Brotherhood links, and the deployed by Moscow and Lord Carrington's friends, and its influence of the outlawed Italian Propaganda-2 Freemasons relation to global oil maneuvers. who control much of international drug- and gun-running. Also Order 83-004 $�50.00 explored is the Libyan role of Moscow intimate Armand Ham­ mer of Occidental Petroleum and the real significance of the Jerusalem's Temple Mount: Trigger for prematurely suppressed "Billygate" dossier. Fundamentalist Holy Wars Order 81-004 $250.00 A detailed investigation whose findings have made the front pages of both Arab and Israeli newspapers in recent months. The Coming Reorganization of (J.S. Banking: The report documents the financing and objectives of a little­ Who Benefits from Deregulation? understood operation to "rebuild Solomon's Temple" at the Under conditions of an imminent international debt default site of one of Islam'S holiest shrines, the Dome of the Rock in crisis, the Swiss-based Bank for International Settlements, the Jerusalem. Backers of this project are associates of H.enry Volcker Federal Reserve, and the New York money center Kissinger, Swiss financiers acting on behalf of the Nazi Inter­ banks led by Citibank, Chase Manhattan, and Morgan, have national, and Protestant fundamentalists who are being drawn prepared emergency legislation to cartelize the U.S. banking into a plan to destroy the Mideast through religious warfare. system. Their aim is to shut down thousands of U.S. regional Order 83-009 $250.00

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L ______� Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editor: Susan Johnson Features Editor: Susan Welsh Assistant Managing Editor: Mary McCourt Art Director: Martha Zoller From the Managing Editor Contributing Editors: Uwe Parpart-Henke, NancySpannaus, Webster Tarpley, Christopher White Special Services: William Engdahl Advertising Director: Geoffrey Cohen Director of Press Services: Christina Huth

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot T his week's Special Report shows that the policies assigned to Asia: Linda de Hoyos Gary Hart and his fellow "Atari Democrats"-slashing U.S. strateg­ Counterintelligence: JeffreySteinberg Economics: David Goldman ic military capabilities, turning the economy into a post-industrial European Economics: Laurent Murawiec desert, and promoting mind-killing Aquarian cultism-add up to Energy: William Engdahl Henry Kissinger's recommendation for reducing the United States Europe: Vivian FreyreZoakos Ibero-America: Robyn Quijano, Dennis Small to a quarter of its post-World War II power. Law: Edward Spannaus As the Eastern Establishment faction conveniently known for Thierry Lalevee Middle East: short as Kissinger moves in for the finalcapture of a President elected Science and Technology: Marsha Freeman Soviet Union and Eastern Europe: to keep them out of Washington, the United States is confronted with Rachel Douglas the prospect of a Kissinger candidate on each side of the party line. United States: Graham Lowry That brings us to the Democratic presidential effort of EIR foun­

INTERNATIONAL BUREAUS: der Lyndon LaRouche, which, as our Special Report indicates, is Bangkok: Pakdee and Sophie Tanapura countering the proposed Hart -Mondale Democratic ticket and the Bogota: Carlos Cota Meza delinquencies of the White House in tolerating the Kissinger invasion Bonn: George Gregory, Rainer Apel Caracas: Carlos Mendez by building a mass movement, a "pitchfork brigade," as campaign Chicago: Paul Greenberg workers put it, to end the political career of the man who has become Copenhagen: Leni Thomsen the epitome of the sell-out of the nation. Houston: Harley Schlanger Lima: Julio Echeverria LaRouche's media advertisements ask voters to vote for' La­ Los Angeles: Theodore Andromidas Rouche as the presidential candidate Henry Kissinger hates the most. Mexico City: Josefina Menendez Milan: Marco F anini Polls show that Kissinger is the most hated public figureof the United Monterrey: M. Luisa de Castro States. Among professional strata, 50% would vote against a candi­ New Delhi: Susan Maitra date who supported Kissinger, with the rest divided about equally Paris: Katherine Kanter Rome: Leonardo Servadio, Stefania Sacchi between those who profess to be Kissinger supporters or are indif­ Stockholm: Clifford Gaddy ferent. Ninety percent of blue-collar workers polled consider getting United Nations: Douglas DeGroot Kissinger out of government a major issue. One hundred percent of Washington, D.C.: Richard Cohen, Laura Chasen, Susan Kokinda black voters polled consider getting Kissinger out of government a Wiesbaden: Philip Golub, Mary Lalevee, major issue. Barbara Spahn So far, LaRouche is the only presidential candidate of the 1984 campaign to take on the Kissinger issue directly. Executive Intelligence Review (ISSN 0273-6314) is published weekly (50 issues) except for the second week In our International and National leads, you will find intelligence ofJuly andfirst week of January by New Solidarity InternationalPress Service 304 W. 58th Street. New York. on Kissinger's latest initiatives to destroy the best U.S. allies in N.Y. 10019 (212) 247-8820. Thero-America, a continent he once said was "incapable of making In Europe:Executive Intelligence Review history ." Nachrichtenagentur GmbH, Postfach 2308, Dotzheimerstrasse 164,62 Wiesbaden, LaRouche has issued a document on the question of whether Tel: (06121) 44·90·31. Executive Directors: Anno Hellenbroich, Michael Liebig Kissinger is an agent of Soviet influence, whose conclusion is "Yes, In Mexico: EIR, Francisco Dfas Covarrubias 54 A·3 and more." Next week, we plan a Special Report on the Kissinger Colonia San Rafael. Mexico DF. Tel: 592·0424. threat to the military competence and political existence of the NATO Japansubscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34·12 Takatanobaba, Shinjuku-Ku, Tokyo alliance. 160. Tel: (03) 208-7821.

Copyright © 1984 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second·class postage paid at New York, New York and at additional mailing offices. 3 months--­ $125.6 months---$225, I year-$396, Single issue-$10 Academic library rate: $245 per year -

TIillContents

Interviews Economics

24 Melvin Klenetsky, director 4 u.s. economy to go down of Lyndon LaRouche's with the dollar presidential campaign He describes the candidate's 7 Sudan: a key U.S. ally strategy beginning with the targeted by the IMF and Pennsylvania Democratic primary Federal Reserve election. The Paris Club of creditors intends to cut it off from new loans at a time 32 Rolf Engel, astrophysicist when civil strife, fueled by The author of the most authoritative economic disaster, is threatening to book on the military exploitation of break out. That would be a disaster space describes how the United for Egypt, in tum. States lost its military superiority. 9 International Credit Blocked accounts model: Nazi finance. Departments 10 Banking 43 Report from Bonn EIR bums Volcker Some promising news. on loan scam.

44 Attic Chronicle 11 Foreign Exchange Power complex in a leaderless land. Ditchley cartel's new war on Argentina. 45 Dateline Mexico Business Briefs Changes in the PR!. 12

59 Elephants and Donkeys Of sinking ships and deserting rats.

64 Editorial The corrupt NBC and terrorism. •

Volume 11, Number 11 March 20, 1984

Special Report International National

26 Kissinger plans new 48 LaRouche: 'Kissinger Vietnams in Ibero-America intends to invade Mexico' Reagan is to be sold the policy The first signals of the "Vietnarnize under the banner of Latin America" policy. "anti-coITtlllunism. " 50 Disarray grows in 28 Green Party: terror Establishment ranks as and witchcraft technology breakout looms The significance of Leslie Gelb's 30 Secret maneuvers held March 4 New York Times analysis.

Gary Hart (I) runs into Walter Mondale at the March in East Germany 2 Jefferson-Jackson Day in Atlanta. The vote for By the Warsaw Pact. 53 Danny Graham's each of the Harriman-approved Democratic presi­ dential candidates amounts to a vote against another friends in L-5 of them. 31 Chancellor slams U.S. military circles are surrounded the decoupling effort by cultists and other ill-disposed 14 Will Hart be the On his visit to the United States. types. frontrunner by April? 32 West German missile 54 Alec von Bennigsen and 16 Gary Hart: an all too close expert: 'The Soviets have the 'Islamic Card' encounter at breakfast gained clear superiority' And the State Department's Warren J. Hamennan's account of a advisers include wild KGB-linked morning session with the Colorado 34 The outrageous State kooks. senator. Department and the Gulf war 56 NBC 'assassination plot' 18 How a frontrunner a total lie Look at the record. is manufactured 57 A challenge to the 36 The Reagan Plan 20 A 'new idea' for military Pennsylvania Democrats and thePLO reform: taking America The state's congressional delegation back to the crossbow 39 Strategic implications of and how they have voted. the Sino-Soviet talks 21 Hart's economics: 'fascism 60 Congressional Closeup Part v of "New Era with a human face' in U. S. -China Relations." 62 National News 23 Not a dime's worth of 46 International Intelligence difference Harriman's other Democratic candidates.

24 Can anti-Kissinger Democrat LaRouche win the Pennsylvania primary? • �TIrnEconomics

U. S. economy to go down with the dollar

by David Goldman

America's supposed economic recovery during 1983 was Dollar continues to fall based on a $134-billion subsidy extracted mainly from de­ The dollar, in fact, has already dropped by 10% against veloping nations in the form of hard goods imports fed into the West German mark since January, from OM 2.85 to 2.55 the U.S. economy. The United States purchased raw mate­ at the end of the first week in March, and by slightly less rials, semi-manufactured goods, and capital goods from the against other currencies. The dollar crisis has already hit Wall rest of the world at bargain-basement prices, and paid for Street hard and produced a sharp rise in long-term interest them with flightcapital extracted from the developing world rates. As it continues, it will create economic conditions and WesternEurope . Overvaluation of the dollar with respect worse than those of 1982, supposedly the depth of the to Third World and European currencies has allowed the "recession. " situation to persist-but it won't last much longer. With an op-ed entitled "When the Dollar Loses its Shine," This conclusion is exhaustively documented in EIR's the London Financial Times of March 5 pointed out what newly prepared Quarterly Economic Report on the United insiders in the City of London told EIR a month ago: The States economy, previewed here. dollar is being "talked down" for political reasons by the City The implications of this analysis for America's economic and others who want to pull the rug from Ronald Reagan's and strategic situation are grim. As the value of the dollar reelection campaign. A huge crack in the U.S. economy collapses, the elimination of this subsidy will collapse do­ would make even worse mincemeat of Reagan's promotional mestic production levels and force prices up across the board. strategy. There will no longer be any room for doubt-the U. S. econ­ Such a financial-economic crisis could "hand the presi­ omy will be in full-scale depression. dency to a Democratic candidate," the Financial Times pro­ In fact, the U. S. economy has been in continuous depres­ claims. One of Europe's leading financial "insiders," reached sion since Federal Reserve chairmanPaul Volcker sent inter­ in Hamburg, West Germany , commented tersely "I see Gary est rates into the double digits in 1979. The rate of decline Hartcoming up because Wall Street and the dollar are going merely slowed during 1983 due to a colonial looting opera­ to collapse, inevitably. Reagan will findhims elf in the posi­ tion reminiscent of the British Empire. Britain managed to tion of Herbert Hoover. Then Hart will go for an 'FOR sustain a trade deficit forhalf a century on the proceeds of the effect.' " Far East opium traffic, but at least Great Britain produced its "The dollar has been ambushed," the Financial Times own capital goods . For the first time in this century, the states bluntly. "The real fear is that, instead of a gradual 'soft United States imported more machinery than it exported dur­ landing,' thepollar could all too easily suffer a rout, with ing 1983. possibly disastrous consequences for interest rates, inflation

4 Economics EIR March 20, 1984 • and growth in the U.S. , which could spill over the rest of the world as happened after the dollar's 21% fall against the D­ Mark in 1978-79." The Neue Zurcher Zeitung, speaking for the Swiss finan­ cial elite, is also projecting a furtherdollar decline. "In Zurich 'POSSible chain reaction' foreign-exchange-market circles, a retreat of the dollar to From the Neue Zurcher Zeitung of March under two Swiss francs is far from excluded," compared with the 8, the title "Continuing Exchange-Rate Correction of the current dollar level of 2. 14 francs. they wrote March 8. Dollar" : "A fundamentally new evaluation of the entire circum­ stances of the American currency ...now appears to per­ suade investors to conduct a portfolio shift into yen, deut­ The dollar lost additional ground on the foreign ex­ r schemarks, Swiss francs, and partly gold as well," the Swiss change markets Tuesday. In monetary circles the e is correction a continue. Under the subhead "Possibility of a Chain Reac­ talk of a ofthe previous over-shooting and tion," they note that unless the Federal Reserve tightens credit turnabout which had beeI;l expected .... furiously, "a trend tum of the dollar could lead to a chain In the judgment of private and official monetary this reaction and a rapid collapse." circles, correction is far from over.While Ameri­ observers, The London Financial Times also points out what EIR can market for example, speak of a dollar readers knew weeks ago--that at this point, rising U. S.rates rate against the yen of 200 (against 223.15 on March will simply signal investors that the United States is desperate 6) as entirely possible, Zurich foreign exchange market for foreign capital and will frighten them out of the dollar. circles will not even exclude a retreat of the dollar to 2 "Perhaps the single most unsettling development of the past Swiss francs. few weeks has been that the dollar has fallen as U. S.interest The opinion underlying this judgment is that the present correction of the dollar is not a trader's bear rates have risen and fears about the deficit have grown . . .. The Fed and the markets will reach a moment of truth.lf the market, but a fundamentally new evaluation of the Fed fails to tighten the monetary screws sufficiently, it will entire circumstances of the American currency. . . . lose its credibility as the sole bulwark of the U. S.economy The dollar rose against the Swiss franc from the begin­ against inflation and the fall in the dollar could tum into a ning of January 1983 from 1.85 to 2.85 despite the collapse." halving of American interest rates .. . in the context of the return of the U.S.to economic stability and a 6% of economy subsidized return to the United States to a decisive world political Already, the modest pull-out of funds from the dollar has role. hit the stock market.If a dollar rout occurs, the very basis of Against these positive factors, the negative influ­ the current U.S. economic structure will be pulled out: a ences . . . are the marked increase of the American massive foreign trade subsidy. trade and current account deficits.These fundamental The trade subsidy to the United States rose from about factors, paired with the grave American budget situa­ 3% to about 5.5% of total industrial output of the U.S.econ­ tion, now appear to have won the upper hand. . . . omy between 1982 and 1983, or a margin of increase of There was always a certain worry that a trend tum 2.5%. The total amount of the subsidy was $65 billion in of the dollar could lead to a chain reaction and a rapid 1982 and $1 14 billion in 1983. Net imports were adjusted for collapse .. .. the improvement in U.S. terms of trade since 1981, that is, Above all, it is not excluded that the dollar could converted into the equivalent price of goods produced in the continue to fall despite the rising interest rates .... A United States. notable loss in the dollar exchange rate in the context The January 1984 trade deficit was $9.2 billion, much of an outflow of foreign capital urgently needed forthe larger than 1983's average monthly deficit.Considering only financing of the current account deficit could exercise non-agricultural goods, that represents an annual deficit of pressure on American interest rates . . . .Martin Feld­ $157 billion-that is, the excess of goods imported into the stein, PresidentReagan's chief economist and a voice United States over goods exported.Adjusted for the bargain­ crying alone in Washington's budgetary desert, has basement price of imports, this 1984 deficit will come to the recently signaled that a tightening of the monetaryreins equivalent of $235 billion of U.S. goods, or about 11% of all as a defense against an otherwise unavoidable dollar industrial goods consumed in the American economy! correction is unwlnted. The pressure on the Federal Reserve to counter a rise in interest rates with a loos­ Third World pays most ening of monetary policy should be considerable in an Of the $114 billion net subsidy for 1983, the following election year. geographic areas contributed the most:

EIR March 20, 1984 Economics 5 Region Amount Latin America $29.6 billion Currency Rates Asia other than Japan $23.7 billion Japan $22.3 billion Canada $14.9 billion WesternEurope $10.2 billion Africa $9 .2 billion The dollar in deutschemarks New York late afternoon fixing The United States subsidized the East Bloc by $1.1 bil­ lion, and the Mideastby $5 .3 billion. 2.80 ,.....,../� The subsidies listed above are calculated by taking the 2.75 f\ � reported imports of the United States from the relevant areas, V adjusting them to the price that they would bring if produced 2.70 """"' I� in the United States, and deducting U.S. exports to each 2.65 �w , region. 2.60 The two largest areas of subsidy are Latin America, with \ 1/18 1/25 2/1 2/8 2115 2122 2129 � a nearly $30 billion subsidy to the United States economy last year, and the developing nations of Asia, with about $24 billion. Considering that the currencies of Latin America The dollar in yen collapsed to less than half of their worth (as measured by the New York late afternoon fixing price of equivalent baskets of agricultural and manufactured 260 goods), this is not surprising, merely disgusting-the cost is measured in starvation and death. 250 ..

240

...... - � ""'" - Biggest swing in capital goods 230 The breakdown of the subsidy by industrial sector is as 220 - """" follows: 1118 1/25 2/1 2/8 2/15 2122 2129 3n

Semi-manufactures $27.6 billion The dollar in Swiss francs tires $1.3 billion New York lateafternoon fixing paper $2.5 billion textiles $1.5 billion 2.25 cement etc. $0 .2 billion 2.20 Iv' '/ � \. A IA steel $6.6 billion - -- non-ferrous $7 .6 billion 2.15 "'\:� fabricated $2.0 billion 2.10 I\.

2.05 Machinery $2.5 biUion i 1/18 1/25 2/1 218 2/15 2/22 2/29 3n

Transportation $18.9 billion autos $19.7 billion The British pound in dollars parts $4.4 billion New York late afternoon fixing

I.SO Miscellaneous manufactures $23.6 billion 1.45 If��� .... r The increase in the subsidy between 1982 and 1983 is 1.40 � � � � most striking in the machinery sector. In 1982, the United J.35 States still showed an export surplus (including the terms-of­ trade adj�stment) of $14.8 billion. As noted above, this turned 1.30 into a deficit of $2.5 billion by 1983, or a net swing into 1/18 1125 2/1 2/8 2/15 2/22 2/29 3n deficitof $17.3 billion. That is roughly 9% of the total activ­ ity of the machinery sector!

6 Economics EIR March 20, 1984 Sudan: a key U.S. ally targeted by the IMF aridFedera l Reserve by CynthiaParsons

"Hundreds of million of dollars will be required during the At that point,Sudan will becut offby its commercialbankers . next few years to establish the physical basis for renewed Without credit lines, Sudan will rapidly fall behind in its economic growth. However, such resources are very scarce interest payments-to the minimum of seven months neces­ in the Sudan," the International Monetary Fund (IMF) re­ sary to classify the country as a "protracted risk" under the ported recently . The IMF and the U. S. State Department have Wallich program. Under Wallich's section 905(a) of the In­ agreed to pull the plug on Sudan, an important U.S. ally in ternational Lending Supervision Act of 1983 (IMF bill), as Africa. EIR reported Jan. 17, U.S. banks will be penalized for lend­ On March 14, Sudan is expected to be declared uncredit­ ing to countries classified as having "protracted difficulty" worthy by the IMF and the Paris Club of governmentcredi­ paying debts. The Fed and Treasury now force U.S. banks tors, IMF sources told EIR . After a review of Sudan's credit to set aside penalty reserves on loans to such countries, forc­ on that date, they said, the creditors will demand an extension ing the banks to take direct losses in the amount of reserves of Sudan's already severe IMF austerity programs. When the set aside. devastated country cannot comply, the Paris creditors will The fact is that the entire Hom of Africa,beginning with refuse to extend further credit. countries such as Sudan and Chad, and ending with pivotally The IMF declares Sudan is too "politically unstable," strategic Egypt, is being undermined by the international citing the Sudanese government's inability to suppress Mus­ associates of Henry Kissinger and NATO Secretary-elect lim fundamentalist uprisings. Chevron Oil had already sus­ Lord Peter Carrington, who have made a deal with Moscow pended its $800 million oil-drilling investment in the Upper to tum the entire region over to Soviet domination. Nile region after three workers were killed by Muslim guer­ As Dr. Colin Williams, senior fellow of the Aspen Insti­ rillas in February. tute, put it in October 1981, shortly after the terrorist assas­ sination of Egyptian President Anwar Sadat, it is "inevitable" The hit list that Egypt and the entire Hom will be engulfed by internal In fact the pending bankruptcy of Sudan has no explana­ strife caused by "overpopulation." The areacan no longer be tion in banking practice; it is part of a program for world supported by Westernaid , he stated, relinquishing it to the population reduction by the IMF and the Club of Rome. Soviets. Sudan's name appeared on a hit list published in the IMF Under Kissinger's influence, the State Department has �urveyJan . 23, along with other "Fourth World" African and now decided that Egypt is ripe for Muslim fundamentalist Central American nations, to be banned from world credit "revolution," angry Egyptian officials told EIR March 7. and trade markets (see EIR , Feb. 28). The countries listed Pulling the plug on Sudan will create even greater pressure will be cut off from U.S. banking credit under the Wallich on Egypt, a highly populated nation now surviving only with Plan, written into U.S. bank law by Club of Rome supporter U.S. aid. Henry Wallich, the senior U.S. Federal Reserve Board gov­ ernor, last December. Typical IMF victim It is apparent that countries on the Wallich "hit list" are Sudan has no breathing room for import cuts or reductions to be thrown out of the international creditlifeboat as useless in living standards. Its foreign exchange is earned from the eaters . sale of cotton and ground nuts. Lack of input and mainte­ The cutoff of Sudan is arbitrary, since for the past two nance has caused production to decline, and the collapse of years the country has undergone a quarterly "check-up" in prices on the international commodity markets has cut into Paris on its creditworthiness in order to receive IMF endorse­ export earnings. ment and maintain bank credit lines. Once the Paris Club Sudan's case illustrates what happens to those debtor refuses to extend Sudan's government credits, "it is highly nations who cooperate with IMF "stabilization" programs. unlikely that there will be sufficient foreign exchange avail­ Since 1978 it has carried out the IMP's demands, but this has able," as one IMF official put it, for Sudan to pay any debt. so devastated the country that it is now totally incapable of

EIR March 20, 1984 Economics 7 paying its debts. groundnuts were consumed domestically, forcing Sudan to Everything in Sudan has been used up. Soils have gone borrow funds in a race against time to complete the devel­ without fertilizers and pesticides. The rain-fed areas of the opment schemes. westernpart of the country are vulnerable to the desertifica­ The race ended in defeat. Sudan was impelled to go to tion overtaking most of Africa's Sahel. Roads and railways the IMF in 1978 for funds, and the IMF forced Sudan to curb have collapsed. People in the south no longer trade in Su­ its "extravagant binge" in development. Only two projects danese currency; they use sesame seeds. were even started. One was a modified version of the Jonglei So far Sudan's creditors are "very pleased" with President Canal; the other an internationalairport in the southerncapital Numayri's performancein carrying out IMF demands. 'The ofJuba. Sudanese are pretty realistic," commented Tom Cornell, the In February 1983, Egypt and Sudan made a formal agree­ chief Sudan officer of the U.S. State Department's Agency ment to integrate their economies and undertake joint devel­ for InternationalDevelopment. opment projects. But Sudan's economic problems worsened Since 1978, Sudan has devalued its currency by over when commodity prices declined at that time. By March 70%, increased consumer prices, established a parallel ex­ 1983, the Paris Club decided to squeeze whatever was left of change rate for non-essential imports, cut imports , and re­ the assets of the country in return for restructuring the debt moved virtually all budget subsidies for food and other vital which, of course, would put an end to any joint collaboration consumer goods, despite riots in 1980 and 1981 when such with Egypt. cuts forced up the price of bread. In September 1979 a three­ To court Saudi funds, in June 1983 Numayri again split year "public investment" program was begun. Development the country, turning the "black" south into three tribal re­ projects were halted; funds were to go only to export-oriented gions. Commented one recent visitor to Sudan, "The Arabs production, to earnrevenue for debt payment. are not very willing to develop the 'black-skinned people.'" Numayri, still courting Saudi funds, next turned the country How the debt was created over to "Islamic law," creating the potential for a return of . Sudan has only 23 million people in a country a third the the civil war that had consumed Sudan for 17 years until the size of the United States. It is self-sufficientin food supplies, 1972 Addis Ababa agreement which set up one autonomous and has the potential to increase grain production by 70% regional government in the south. In October, the Qaddafi­ immediately, yet its foreign debt now stands at $8 billion and funded guerrilla group Anyanya II murdered the Chevron the ratio of debt service to exports has jumped from 14% in workers and torched a riverboat, killing 300 people. 1970 to lC>q% in 1984. How is this possible? The threat of civil war has caused the French companies From 1972, when Sudan's civil war ended, up to 1978 in Sudan to withdraw their personnel after guerrillas killed when the International Monetary Fund and the World Bank some of their workers in mid-February. Chevron is talking took control over all investment, the country was pursuing of an at least six-month delay in starting construction on a an infrastructural development program. The first segment 900-mile pipeline to PortSu dan, until a "political settlement" of the Jonglei Canal was to drain some of the Sudd swamps can be worked out. Originally, an oil refinery and other in the south of the country and thereby increase the Nile industrial installations were to have been built in the south; waters for irrigation and urban use in both Sudan and Egypt. investors decided that a pipeline would be faster and cheaper. Road and railways were planned to crisscross the country, "The Sudanese are a bit overoptimistic because of their oil," reaching areas that were unexplored. The entire "black" south claimed AID's Cornell. was to be transformed from a collection of tribes into a mod­ em region integrated into a modem economy. In the north, The magnitude of the debt new Gezira projects--Gezira is a British-built cotton farm, From 1979 to 1982, debt service equaled 20% of exports . the largest mechanized farm in the world-were designed. In 1984-85, around 60% of the total $871 million debt service Funds were promised from the Arab oil states, and Sudan payment due is on old commitments, 10% is on new com­ borrowedheavily in anticipation of massive Arab investment mitments and charges to the IMF, and the remainder is due along with U.S. and European loans. on the rescheduling arrangements. Around 60% of debt ser­ Only a small portion of the Arab funds ever material­ vice on old commitments is due to bilateral donors; of that, ized-'saudi Arabia, for example, provided $15 million of a some 52% is owed to various Arab countries. promised $6 billion. The long-term "most optimistic" goal is to reduce the With the 1973 oil hoax, the import bill quadrupled. Sudan deficit on the balance of trade from 20% of the GDP to 7% had a trade surplus in 1972; by 1974, import expenditures by 1990. But, says the IMF, it will require "determinedaction were nearly twice as high as export earnings. Sudan's exports from the government and massive external support. Without increased by only 10% in nominal terms during this period. this, it is highly unlikely that there will be sufficient foreign Cotton production was halted in favor of grains. By 1978, exchange available to finance the foreign exchange compo­ Arab oil money was no longer forthcoming, and foreign nent of the public investment program, which would have exchange dried up. Rather than see the population starve, the serious adverse effectsfor the nation."

8 Economics EIR March 20, 1984 International Credit by Renee Sigerson

Ditchley cartel's new war on Argentina prospect that the debtors might do the Advised by Henry Kissinger, some stupid U.S. banks believe that same thing. they can "absorb" an Argentine default. In May 1982, the Ditchley Group creditors' cartel was formed by Mor­ gan, Citibank, and their British and Swiss seniors in Ditchley Park, Lon­ don. It proceeded to reduce lending to Ibero-America from an $8 billion rate Maj or money-center bank lenders and Chase Manhattan, told the press in the second quarter of the year to a to Argentina met in New York at Ci­ that if Argentina won't pay up, his $2.7 billion rate . tibank headquarters March 7-8 to plan bank and other majors will declare the Money center bankers inter­ a new ratchet of credit cuts to lbero­ country's loans non-performing at the viewed by EIR were quite cocky about America. The end result could be an end of the first quarteron March 31. pushing Argentina to the wall. If Ar­ open default by Argentina on its $45 If they do this, Argentina's credi­ gentina doesn't pay, "the losses can billion foreign debt. "The fallout this tors will have to forego all first-quarter be absorbed." could have on Mexico, Brazil, and interest income from Argentina, and "Argentine hard line? That's no Venezuela" might rock the system, as many will have to write off some in­ problem as far as we're concerned," one banker phrased it to EIR . come they declared last year . one banker laughed. 'They have two Under the advice of leading Brit­ Taylor told the press that the banks faces: one for the press, and one for ish banks and Henry Kissinger, unof­ could handle the resultant losses on the banks. For the press, domestical­ ficial chairman of the Council of the Argentine debt as "not a crisis, but an ly, Alfonsfn is talking about fighting America's Commission on Latin irritation. " the IMF, but, in fact, he is moving to American Debt, the New York banks The banks calculate that they can please the IMF." are apparently prepared to take the risk sustain a loss of $1.1 billion in Argen­ Alfonsfn, he bragged, will carry that no other country will side with tine interest payments, spread among out the IMF's most important de­ Argentina. 110 banks at $10 million each. Man­ mand, "the democratization of the The banks incited a crisis at a press ufacturers Hanover, Argentina's big­ trade unions. " This means purging the briefingbefore the meeting by reveal­ gest lender with $1.5 billion in loans, Peronist nationalists in the unions, the ing how bad Argentina's debt is. would have to take a reduction in earn­ only real base of popular opposition to Manufacturers Hanover President ings of some $25 million maximum; thelMF. Harry Taylor put the story in the spot­ likewise Citibank, with $1.3 billion to But one U.S . regional banker light March 6 when he told the Wash­ Argentina. warnedthat the game is dangerous in­ ington Post that Argentina must im­ The Argentine government of Raul deed. "Are they bluffing? I think the mediately pay up its $3 billion in in­ Alfonsfn is also playing tough. On same thing I've thought for the last terest arrearages. Under a front-page March 6, it formally cancelled its loan two years-Argentinacould easily be headline, "Argentine Loans in Arrears agreement with the International planning to do the same thing they did by $3 Billion," the Post quotes Taylor Monetary Fund because it won't meet in the Falklands," that is, go all the and others stating that Argentina "has IMF conditions. EIR previously re­ way. enough dollars to make the required ported that Argentina is accumulating A companion piece to the Taylor payments" of at least $1.1 billion, dollars for use in a possible debt threat in the Washington Post made it which would bring the arrearages back moratorium. clear that the faction of the U.S. mili­ under the 90-day limit under U. S. law. The major banks, however, are tary under Kissinger's influence is Taylor was backed up by Lloyds confident they can handle an Argen­ willing to back up the banks. Follow­ and Britain's other major lenders to tine moratorium, so long as it does not ing a London Economist report this Argentina, who have no such legal spread to other debtor countries. Their month that "the Falklands campaign deadline to meet but refuse to lend goal is a "controlled" banking crisis, could nothave beenmounted , let alone Argentina money to pay the interest. centered again on Argentina. They won, without Americanhelp ," thePost Taylor, joined by Argentina's oth­ have organized themselves into a confirmedthe story with Pentagon of­ er large creditors-Morgan, Citibank, creditor cartel, but are hystericalat the ficialsin Washington on March8.

EIR March 20, 1984 Economics 9 Foreign Exchange by David Goldman

Blocked accounts model: Nazi finance

, suspended Gennany's massive Wodd Fed governor Henry Wallich reveals the prototype of the Fed's War I reparations debt-but trade soft-currency debt-repayment scheme. credits and all other foreign loans were cut off by foreign banks. The Gennan economy was bled dry. When appointed Hitler's econom­ ics minister, Hjalmar Schacht set up a In an exclusive interview provided political problem." scam for buying key imports to build to EIR by a West Gennanjo urnalist, The Fed, he said, expects the IMF the Nazi war machine. Schacht agreed Federal Reserve Governor Henry to enforce its policies at all costs. "I that Gennan finns and banks would Wallich stated on March 7 that the would rather say that the fact that most pay Gennany's creditors and trading Fed's plan to use Ibero-American soft of these countries have gone to the partners in Reichsmarks, which currenciesto repay dollar debt is mod­ IMP is the most important, and it is Schacht's Reichsbank (the central eled on the "blocked accounts" policy not surprising that there is criticism bank) would simply print and deposit of Hitler's economics minister, the and resistance there. . . . The pro­ into blocked accounts in the creditors' man who did so much to bring Hitler grams are not devised to create politi- . name. in power, Hjalmar Schacht. cal problems for these countries, or to Schacht's U.S. bankers, such as Wallich stated that "it bespeaks the make poor people suffer, but to pull Chase National , stepmother of Chase Gennan situation during the 1930s, out the maximum economic activity. Manhattan, were able to claim that when you had the Konversions­ If subsidies must be cut and prices their bad Gennan debts were good­ kasse.. . for the Reichsmark." The raised--these things would never have and financethe shipment of chemicals Konversionkasse was the monetary been introduced in rational and other illegal goods to Nazi Ger­ stabilization program of Hjalmar economies. " many. Schacht also createda trade bloc Schacht, through which he earned his Given that the debtors have no with Eastern European exporters of title of Nazi "financialwizard." dollars to repay debt, Wallich was goods to fuel the Nazi war machine, Under U.S. banking law, loans asked about the use of debtor curren­ which were paid for with the blocked whose interest is not paid for more cies. He responded by stating that the accounts. than 90 days are "non-perfonning." soft-currency scheme secures no real This "financed" the famous Nazi lbero-American nations are well over payment of interest (or principal). export of a lifetime supply of Bayer 90 days in arrears on $10 billion in "That really has very little signifi­ aspirin to Yugoslavia, in return for such interest payments. To deal with cance [for the debt problem] , since it huge shipments of Yugoslav this, as EIR has been the only source is not really a transfer" of funds from machinery. to report, Wallich and Federal Re­ debtors to creditors , he said, admit­ Wallich concluded that no matter serve chairman Paul Vo1cker have told ting that any bank loan paid in this how much Ibero-American currencies the largest banks that they may take fashion is a bad loan. may collapse, the debts must be reck­ interestpayments in Brazilian cruzei­ "Rather," Wallich continued, "it oned at current exchange rates: ros, Argentine pesos, and other debt­ bespeaks the Gennansituation during "I don't see much advantage in ors' currencies. the19 30s, when you had the so-called getting local currency if an additional First, Wallich observed that the conversion account (Konversions­ guarantee does not stand behind it that huge debt burden of Thero-America is kasse). Then you paid in deutsche­ it will be converted one day. For this having the same economic and politi­ marks when you couldn't get foreign reason the exchange rate must be fixed; cal effect as the World War I repara­ exchange; if you were a solvent finn, there's no sense in sitting on Argen­ tions levied against Gennany. you paid in deustchemarks, or rather, tine pesos which devalue by 50 per­ "The underlying problem, which Reichsmarks back then, and the con­ cent or whatever. You just fix the ex­ produces resistance, is that the debt version account made over paper to change rate by agreement, and then mountain becomes a political symbol thecreditors , I believe, so that the in­ you have 100pesos which are worth which worsens relations," Wallich terest would be capitalized." one dollar on day one, and three years stated. "It has a certain similarity, in­ When Gennany went bankrupt in later when you get them back, the peso deed, �ith the German reparations and 1931, it was in much the position of has indeed fallen, but these pesos are the Allied war debt. That was also a Brazil today. The Hoover moratorium still 100to one."

10 Economics EIR March 20, 1984 Banking by Kathy Burdman

EIR burns Volcker on loan scam March 31. One possibility is a "double Our expose o/ Volcker' s "softcurr ency" method o/ papering standard," in which only the largest over the [bero-American debt has had an effect. banks (which would be hit with unsus­ tainable losses if loans are declared non-performing) will be allowed to use the soft-currency accounting scam. Smaller regional banks would not be allowed to do so. Given the regula­ A fight has begun in Washington performing. tors' "full discretion" and secrecy, it over Federal Reserve Chairman Paul To deal with this, as EIR has re­ will be hard to prove such Volcker's plans to let the money-cen­ ported for the past few weeks, Volck­ discrimination. ter banks take interest payments on er, Wallich, and Connover had agreed For years the regulators have re­ their dollar debt, not in dollars, but in to let the largest banks take interest quired regional banks, although they Brazilian cruzeiros, Mexican pesos, payments in debtors' domestic curren­ are better run than the money-center and other softcurr encies. cies, and yet account these as "per­ giants, to hold a higher ratio of capital Readers tell me that they have forming" assets. to loans than the latter. confronted senior Washington offi­ Comptroller Connover, in a pri­ A second possibility: The large cials, including Volcker's number-two vate letter to lawyers for Citibank, told banks and International Monetary man, Fed governor Henry Wallich, them that "private and public sector Fund will quickly give cash to the ac­ and Comptroller of the Currency C. Brazil debt" could be paid by "obli­ counts of Brazil and Argentina in or­ Todd Connover with EIR's expose. gees on the loans meeting their finan­ der to bring dollar arrearages more up The response was "inadequate at best," cial obligations on those credits by to date. Major creditors had planned as one put it. paying cruzeiros" to the creditors. to cut off such dollar extensions and "I asked the comptroller of the GovernorWallich told New York bank amass debtor currencies, to buy out currency point blank at a Washington executives at a private meeting at Ci­ debtors' industrial and mineral assets. meeting at the end of February wheth­ tibank on Feb. 15 that interest pay­ But in the glare of publicity, such er he was allowing the big banks to ments "in soft currencies" would be debtor-currency accounts may be­ take interest payments in soft curren­ counted as dollar payments. come a liability. cies and still account the loans as if Citibank official William Rhodes Argentine sources now believe that they were performing well," one re­ and Manufacturers Hanover official the banks will have to lend them at gional banker told me March 7. "He Douglas McCouch have also briefed least $ 1.1 billion by the end of March didn't have a good answer; he just some of my regional bank readers on to reduce the country's $3 billion in turnedbright red and was very quiet." the plan. interest arrears , or a substantial part of As we note in this week's Inter­ But EIR has also learned that the Argentina's $45 billion debt will have national Credit column, under U.S. controversy fueled by our expose may to be declared non-performing-i.e., bank law, loans whose interest is not have caused some in Washington to they believe the regulators may back paid in dollars for more than 90 days have second thoughts . off from the Volcker plan to accept must be declared "non-performing," Confronted with EIR's report by Argentine pesos. and the bank must write off that inter­ regional bankers at another Washing­ After threatening to cancel its est income. Brazil is already 120 days ton meeting the first week in March, agreement with Brazil, the IMF is also in arrears , or $4 billion, on its interest Federal Reserve officials denied that suddenly now reported by Swiss bill. Argentina has over $3 billion in they were accepting Brazilian and oth­ sourcesto be about to grant Brazilover arrears, and total arrears on the conti­ er soft currenciesas valid interest pay­ $ 1 billion in emergency funds. nent will approach $ 10 billion March ments. "Localcurrencies are being ac­ A third, most remote possibility is 31. cepted for some Brazilian principal a confrontationin which no new dollar Some sort of decision will have to payments," one official from the Fed's funds are lent, and the regulators also be made by the regulators by then, the Supervisory and Regulation section disallow payment in soft currencies. date for their quarterly bank exami­ said, "but interest must be paid in full Then we have an international bank­ nation. The regulators will have to de­ in U.S. dollars." ing crisis which will pull the plug on clare these loans performing or non- Policy will have to be clarified by Ronald Reagan.

EIR March 20, 1984 Economics 11 Business Briefs

Energy building and culling their herds. Farmers are lations was made at a recent meeting be­ now selling cattle on the basis of immediate tween Italian Foreign Minister Giulio An­ China-Japan accord profits or losses, not long-term planning of dreotti and Soviet Foreign Minister Andrei production, according to agricultural econ­ Gromyko in Moscow. according to Unita on nuclear facilities omist Ed Uvacek. reports . This means, Uvacek says, that produc­ Bank of Italy governor Carlo d' Azeglio ers "will no longer be subsidizing con­ Ciampi went to Budapest in late February to Japan and China are expected to sign a pact sumers with cheap beef'-i.e. , farmers can discuss improved financial and trade rela­ on the sale of Japanese nuclear power equip­ no longer sustain long-term investment to tions with Hungarian central bank head ment to China, after talks in which the Jap­ guarantee high productivity and the nation's Timar. anese agreed to limit themselves to "visita­ future food supply . tion" rather than "inspection" rights of nu­ The report shows what Uvacek calls a clear power facilities built with Japanese as­ "slight" liquidation of the U.S. cattle he,rd . sistance in China. USDA figures claim that the beef breeding Econometrics The pact is scheduled to be signed dur­ herd has decreased by 1 % since a year ago , ing Prime Minister Yasuhiro Nakasone's and beef replacement heifers decreased by Commerce Department visit to China in late March. China is contin­ 2% . uing talks with the United States on nuclear admits fraud "These relatively minor adjustments Im­ cooperation, and aU. S.-China agreement ply that cattlemen are no longer following may take precedence over a pact with Japan, A Commerce Department specialist who the typical cattle cycle," in which a producer according to 1111 press . provides the White House and the general builds up his herd over an extended period The agreement with Japan is meant to public with statistics on the U.S. economic before sending any large number of cows to ensure that nuclear power equipment will be "recovery ," told a reporter March 3 that the slaughter. Now, producers are selling off used for peaceful purposes only. "Visita­ figures the Commerce Department pub­ cattle on the basis of immediate financial tion" would permit visual inspections by lished for 1982 and 1983 industry and prod­ needs, no matter what the size of their herds Japanese experts to verify the proper dispos­ uct shipments, in dollar terms, are not real; or their future reproductive capacity . al of spent nuclear material . they are only "estimates." The two nations had called for coopera­ Commerce's reports to the White House tion in the peaceful use of atomic energy in on any area of the economy are based on regular bilateral ministerial meetings last two-year-old figures. In 1981, the Bureau September. China entered the International Trade of the Census did its last Census of Manu­ Atomic Energy Agency (IAEA) in Novem­ facturing. On the basis of 1981, estimates ber, but called the IAEA's demands for on­ Italy expands relations were made for 1982 and 1983. In the 1981 site inspection of facilities a violation of na­ U.S. Industrial Outlook published by Com­ tional sovereignty. with East bloc, Libya merce, they only had firm figures for 1978. Tokyo has apparently decided that it is And so forth . not in its best interest to maintain the inspec­ Italian national oil company ENI signed a Explained the specialist, "I consult those tion policy. The Japanese government was $2 billion deal with Libya March 7 to drill at Commerce on farm equipment produc­ particularly concerned that competitors such for oil in the Mediterranean. tion, and also on machine tools, since as the United States and West Germany ENI president Reviglio and Libyan Oil whether thefood industry buys machine tools would take over the Chinese market. France Minister El Maghur arrangedfor Italy to buy is a sign of whether they are expanding pro­ has already exchanged notes with Peking on 750 million barrels of Libyan gas per year duction levels." nuclear power development. at the same time that the Italians assist the "Then," he continued, "I consult Data Libyans in drilling for oil in the Bouri oil­ Resources, Inc.," the giant econometric field in the Mediterraneannear Tripoli. forecasting service. "Finally, I throw a cou­ The drilling at Bouri, the most accessi­ ple of dice in the air, and use that to pick out Agriculture ble oilfield in the Mediterranean , will be a number." operative in 1987. ENI will build two huge The reporter asked: "Did you ever com­ Cattle production floating platforms and develop 50 drilling pare actual figures with earlier estimates, to sites. check your method of estimating?" "No," cycle collapsing The day before , the large-circulation he replied, "I don't look back." leftist daily Unita reported that Italy has de­ EIR did look back. On the basis of 1978 The u.s. Department of Agriculture's cided to expand its economic relations with figures,Commerce estimated 1979 and 1980 (USDA) 1984 cattle inventory report indi­ the Soviet Union, and the first step will be shipments by the Food Processing and Pack­ cates that U. S. cattle producers are aban­ to purchase natural gas supplied by the Si­ ing Machineryindustry at slightly over $2.5 doning the seven-to-nine-year cycle of berian pipeline. The decision to expand re- billion and $2.9 billion, respectively. But in

12 Economics EIR March 20, 1984 Briefly

fact, the 1979 and 1980 figures, now in, ing tight control over Japanese markets and • IN MOZAMBIQUE, more than show that shipments were only $2.2 and restricting foreign-exchange transactions. one third of the population is facing $2.3 billion, respectively. The Commerce Under the current pressure, however, the · farnine, or more than 4.7 million peo­ Department's figures are wrong by between finance ministry considers the internation­ ple. More than 100,000 have already 11% and 20% . alization of the Japanese financial markets died from starvation following Moreover, they always appear to be "inevitable. " drought, floods, and rebel activity wrong on the side showing a "recovery. " In The United States is demanding "sweep­ supported by the South Africans. Re­ 1982, it was estimated that 1981 shipments ing reform" and not "cosmetic changes," ports say that 350,000 people are figures for the same industry were $2.374 including the creation of a "Euro-yen" in­ looking for food in camps set up by billion. The current U.S. IndustrialOutlook vestment market in Japan, greater access of the government. The rebels have de­ puts the confirmed, real 1981 shipments fig­ U. S. financial institutions to Japanese mon­ stroyed more than 500 agricultural ures at $2.084 billion. The margin of error: ey markets, and liberalization of control of centers. Mozambiqueis officially pro­ 12.2%. Japanese interest rates. The Bank of Japan Soviet, but received no help whatev­ has held interest rates for business invest­ er from them, and has been forced to ment several percentage points lower than make a peace treaty with South Afri­ U. S. rates. ca in exchange for some limited food International Credit aid.

Regan to visit Japan Steel • YASUHIRO NAKASONE will meet with Chinese leader Deng to demand 'Euro-yen' Cuts will mean Xiaoping, Premier Zhao Aiyand and General Secretary Hu Yabona of the Japan is under intense U. S. pressure to lib­ massive French layoffs Chinese Communist Party during his eralize its money and capital markets, as state visit to China March 23-26 . The well as its market for manufactured prod­ Between 25,000 and 35,000 French steel­ Japanese prime minister's discus­ ucts, to resolve bilateral trade friction with workers will lose their jobs as the result of sions are expected to focus on recent the United States. U. S. Treasury Secretary supplementary reductions in steel produc­ developments in Russo-Sino rela­ Donald Regan will visit Japan in late March tion demanded by the European Community tions. Nakasone stated March 5 that for talks with Finance Minister Noboru Tak­ (EC). French steelworkers unions met Feb. he will cooperate to promote inter­ eshita to demand concrete action on inter­ 28 in Lorraine to plan action on imminent change between China andSouth Ko­ nationalizing the yen. layoffs. rea. He described stable bilateral re­ The U. S. request for the decontrol of France was scheduled to report its plan lations between Japan and China as Japanese financial markets was renewed at to enforce supplementary reduction in steel underpinning world stability. the first meeting of the bilateral Joint Ad production of 630,000 tons to the EC head­ Hoc Group of Financial Authorities on Yen- quarters in Brusselsthe first week of March. • THE JAPANESE govermnent . Dollar Exchange Issues held at the Japanese The French machine-tool and shipbuild­ has developed a plan for develop­ Ministry of Finance Feb. 23-24. ing industries are also being cut drastically. ment of the large Sanjian plain in The panel is one result of President Rea­ The loss of 20,000 jobs in the shipyards is northeast China, to be submitted to gan's visit to Japan last November. Beryl projected. the Chinese govermnent in mid­ Sprinkel, treasury secretary for monetary The steel cuts are based on the collapse March, through Japan's International affairs, represented the United States at the of markets over the past decade. Approxi­ CooperationAgency. It calls for con­ talks with Japan's Deputy Finance Minister mately a decade ago, France was producing struction of a dam and other facilities Tomomitsu Oba. more than 25 million tons of steel per year. to irrigate 46,000 hectares of land. The United States and the govermnents In February, the govermnentpro jected max­ Tokyo is prepared to give China a of WesternEuropean nations are demanding imum production of 17 million tons and $1.65 billion loan for the project. that Japan internationalize the yen to the minimum production of 13.5 million tons. same degree as the dollar, making it the Previous projections of 24 million tons by • ISRAELI scientific experiments second key currency for payment reserves 1986 were called "illusory" by French in­ have raised winter rainfall by up to and settlement of trade accounts. dustryminister Laurent Fabius. 20% in parts of the Middle East. The The role of the yen has risen with the Current govermnent policy is to focus scientists are now transferring their growth of the Japanese economy, now the economic activity away from heavy indus­ knowledge to governments in other second largest in the advanced sector. try to avoid "surplus" production. arid and drought-hit regions, includ­ Until recently, the finance ministry and The two state-owned French steel com­ ing Egypt, Peru, and South Africa. the Bank of Japan have protected the yen panies, Usinor and Sacilor, are fighting for from the fate of the U. S. dollar by maintain- the remains of the market.

EIR March 20, 1984 Economics 13 ITillSpecialReport

Will Hart be the frontrunner by April?

by Wa rren J. Hamerman

By the time of the April 10 Pennsylvania primary, there will only be four major Democratic presidential candidates left:There will be two liberal "slots" available (most probably Hart and Mondale, but if one completely falters, any among the other certified liberals will fill the slot), Qaddafi's Jesse Jackson, and Henry Kissinger's opponent, Lyndon H. LaRouche, Jr. In the early New England primaries, voters massively rejected the "package" shoved at them by Lane Kirkland's AFL-CIO apparat and by Charlie "the Banker" Manatt's Democratic National Committee (DNC) and party officialdom. Kirkland and Manatt's "package" Walter Mondale was unable to generate any enthusiasm; all of his votes were bought. One seasoned Democratic Party organizer commented that usually a frontrunner comes through a state inviting people to jump on his bandwagon, whereas Mondale tried to barrel through New Hampshire like an express train at full throttle. The express moved too fast for anyone to get on board. As a result, Gary Hart, by cleverly hiding his policies heretofore and introduc­ ing himself as "Mr. Not Mondale," is now the "frontrunnerunderdog" and may in fact become the "certifiedfrontrunner" by April. Ronald Reagan is being advised to madly rush into the outstretched arms of Henry Kissinger in the opposite direction of his own anti-Trilateral Commission political base with visions of an election landslide in his head. Even the clever old Moscow asset George McGovern is fond of pointing out on the campaign trail that he, and not Richard Nixon, fared better after the 1972 election. At the same time, with everything to lose, Lane Kirkland and Chuck Manatt are never to be ruled out for brutally enforcing a Mondale "rebound." Lane Kirkland forced the unwilling AFL-CIO to cast an unprecedented early endorse­ ment of Mondale; the AFL-CIO contains 96 trade unions with 13.5 million mem­ bers. The union membership is totally restless with Kirkland's "linking" the cred­ ibility of the union institution to a "sure loser" candidate. Therefore, many tradi­ tional union leaders made a few token gestures while secretly hoping that Glenn would do well.

14 Special Report EIR March 20, 1984 GaryHart is a would-be heir to the syntheticJimmy Carter's sudden burst onto the 1976 political scene, and to Carter's detestable policies.

The early collapse of the John Glenn campaign, which uproariously as Mondaleand Hart compete fo r their fa vor! functioned as a political "way station" for anti-Mondale The Swiss and other European "old money" oligarchs are Democrats , now means that the vast traditional constituen­ chuckling out loud all the way to the U.S. central bank. and cies of the FDR coalition-labor, farmers, minorities, and Henry Kissinger is increasingly running the show in Wash­ patriotic urban political machines-have been politically di­ ingtonfor the duration of the campaign. senfranchised by Lane Kirkland and Chuck Manatt. These There is only one candidate in the Democratic presiden­ Democrats will findit as impossible to rally around Gary Hart tial primary whom Moscow and the Easternliberal establish­ as it was for them to back Jerry Brown four years ago. ment abhor-Lyndon H. LaRouche, Jr. LaRouche, who as of early April will be facing the voters in primary elections Why Moscow loves U.S. elections coast to coast, and has been vilified in Izvestia. other Soviet From the standpoint of Moscow, as long as their "friend" journals, and the Libyan news service. He is currentlyunder Henry Kissinger is controlling V.S. foreign policy they can attackby HenryKissi nger's associates at NBC-TV. Moscow adapt to any V. S. President except Lyndon H. LaRouche, Jr. fears that a Democratic candidate who espouses patriotism Moscow talks of Hart and Mondale in the same sweet terms. and a revival of American System economics will upset their After Hart's victory in the Maine Democratic Party cau­ election-yearstrategic games. cuses, Radio Moscow reported about Hart: "The Senator is known to be a resolute opponent to American military inter­ An extremist in the White House? ference in Lebanon. He is an ardent advocate of the nuclear The Soviet praise of Hartis based upon their recognition freeze." TASS added some free promotion the same day that his policy commitment is to facilitate the "take-down" about Hart's policy to "reverse the insane nuclear armsra ce. " of American military and economic strength. Hart is the Less than one month before, the Soviet daily Izvestia lauded quintessence of the post-industrial society candidate. He rep­ Mondale on Feb. 12 in the same terms: "Observers attribute resents the "maximum program" for a slightly modernized the former Vice-President' s growth in popUlarity to his recent version of Bertrand Russell's one-world-government scheme. political pronouncements condemning the militarist course Hartwas the first to oppose V. S. military actions in Lebanon; of the present American administration. " The articlewent on he opposes all V. S. troopdeployments to Latin America and to praise Mondale's strong position in favor of the nuclear elsewhere. Basically, he opposes the use of V.S. military freeze. defense for any national security objectives from the stand­ Immediately after Hart beat Mondale in a couple of con­ pointof an "extremist" post-industrial foreign, domestic and tests, Mondale responded by charging that he and not Hart economic policy. was more "pro-freeze." Moscow's generals are laughing In a 1983 article in The Futurist. the magazine of the

EIR March 20, 1984 Special Report 15 World Futures Society, Senator Hart wrote: "We are shifting from a heavy industrial economy to one based increasingly on infonnation, high technology, com­ munications and services. The face of America's job market is changing accordingly. Already more workers are engaged in generating, processing, analyzing, and distributing infor­ mation than are engaged in agriculture, mining and manufac­ turing combined. We must finda way to shift from the econ­ omy of the past to the economy of the future with as little Gary Hart: an all pain and as much excitement as possible." Gary Hart, the fonner campaign manager for George by Wa rren J. Hamerman McGovern, is the end result of the destruction of the Demo­ cratic Party led by George McGovern in 1968. The activist elements who were McGovern's shocktroops then are now Is Gary Hart something more than merely "not Mondale"? 15 years older. As the U.S. economy and institutions have Why did Averell Harriman over a year ago on national tele­ been shattering in the face of crisis during these intervening vision pronounce Gary Hart "the most attractive of the Dem­ years, these activists have nurtured themselves in the envi­ ocratic Party presidential candidates"? Why did the London ronmentalist and post-industrial campaigns. Through these Economist, the establishment journal for people with "old movements a new cadre force has been synthesized for the money" connections, promote the prospects of the Hart cam­ Hart campaign, and he now enjoys a multitude of young paign well before the first Hart "upset" caucus and primary campaign volunteers who relish the image of being an insur­ victories against Mondale? gency force "assaulting" industrial capitalism. Nearly 15 months ago, in early January of 1983, I attend­ Therefore, Hart promotes himself as a leader of the "post­ ed a special breakfast with Gary Hart at the National Press industrial movement" who is neither liberal nor conservative Club in Washington, D.C., where the clues to why this oth­ in traditionalte nns. Hart recently confessed to Hedrick Smith erwise uncourageous and policy non-entity senator from Col­ of the New York Times: "To understand this election you orado was one of the "specially selected." The Washington have to get out of the linear, left-right spectrum. This is not breakfast was a careful "presentation" of Gary Hart by the a left-right race. This is a future-past race." Hart represents Establishment in the political equivalent of a debutante's the type of political "futurism" that the American people first coming-out party . The occasion was Hart's return from a experienced in the far-out 1980 presidential campaign of Jan. 6-9, 1983 retreat entitled "198312003, Transitions in Jerry Brown and in the fonnal election of Tom Hayden to the IndustrialDemocracies: Leadership in the Next Twenty Years" California State Assembly. These developments occurred in Sea Pines Plantation, Hilton Head Island, South Carolina. through an overall political chemistry that began in the That retreat was attended by Hart and "the select" group McGovern takeover of the Democratic Party in 1968, and of 35 young political leaders from the United States, Canada, continued through the demoralizing disaster known as the West Gennany, Italy, Japan, Spain, Sweden, and the United Carter administration, all the while facilitated through the Kingdom who were anointed to become the heads of their connections of the New Money liberal Aspen ski crowd and governments in the next 20 years: a modernized version of the resources of the Harriman EasternLiberal Establishment. Bertrand Russell's world federalist schemes. They were While the Henry Kissingers and the apparatus of the brought together by the international oligarchy at Sea Pines families known as "The Establishment" play their games to to establish their primary loyalties, not to their respective restructure American political institutions, outside their sa­ nation states, but to each other as a network of up-and-coming lons a real political process is occurring. young politicians "selected" to create "new age institutions" American voters will massively reject any political com­ under conditions of world crisis. The themes of the Sea Pines modity that smells of McGovernism, Kissingerism, or Cart­ retreat were closely coordinated with Henry A. Kissinger's erism. This is historical political fact. Therefore, as the stra­ keynote address entitled "Threats to the Industrial Democra­ tegic crisis deepens with increasingly more bold Soviet chal­ cies" at the Quadrangular Conference of the Center for Stra­ lenges to the United States, and the cruel realities of the tegic and International Studies (CSIS) in September 1982. economic depression intensify, neither Hart, Mondale, nor Hart is also an advisory board member of CSIS, as well as any of the liberal Democrats are sellable in an honest election. the National Wildlife Foundation Senator of the Year. The only other major presidential candidate still in the ring is Lyndon H. LaRouche, Jr. equally Henry Kissinger's and Supranational government Paul Volcker's biggest enemy. The purpose of the "Transitions in Industrial Democra­ The early election primaries and caucuses proved the cies" retreat at Sea Pines was unveiled at the Washington Democratic presidential nomination is, as they say, "up for breakfast by Gary Hart himself, one of the five co-chainnen grabs." of the event, along with the Canadian Mark MacGuigan

16 Special Report EIR March 20, 1984 too close encounter at breakfast

(Liberal Party, minister of justice and attorney general), the right. "We all found that all of our industrial democracies West German Ulrich Steger (Social Democrtatic parliamen­ faced the s�e set of principal problems. The post-World tarian), the Italian Gianni de Michelis (left-wing Socialist War II solutions are working with less and less efficiency." minister for State Holdings), and the Briton Christopher Hart reported that the participantsagreed on two principal Patten (Tory member of Parliament for Bath). categories of problems: "Widening and deepening economic The Jan. 9, 1983 statement of the five co-chairman was recession worldwide and divisiveness, fear, and anxiety pro­ distributed by Hart at breakfast: duced by an unlimited arms race." The group, he said, assem­ bled to "emphasize generational bonds and de-emphasize We have come to Sea Pines not as representatives ideology." The policy outlook of the group was that econom­ of our governments, but by individual choice, as elect­ ic problems would have to be solved over and above partic­ ed representatives of the citizens of our respective ular nations. They also called for supranational pressures on countries. We represent the normal range of political the superpowers, particularly the United States, for arms backgrounds, but these are not normal times. control. The group as a whole committeditself to reorganiz­ Our societies are in transition, but they are also ing the collapsed institutions of the post-war period if nec­ in crisis. We face a period of economic stagnation and essary-the International Monetary Fund, GATT, and so social frustration. We have come of age at a time forth. when the balance of power means the balance of nu­ Hart called for "a more experimental approach to inter­ clear terror. national problems," while decrying the meaningless gener­ If we are to successfully overcome the problems alities of current institution leaders. Asked to describe the we face, our solutions must transcend a narrow ide­ specific new monetary institutions he would like to see, he ological base. We cannot look merely to the right or called for an economic summit to "build a new exchange­ to the left, but forward: rate system" and for "modernizing GATT." He called for "labor, management, and capital" to develop specific post­ • We must reject protectionist tendencies which industrial strategies as he endorsed the corporatistapproach are not only unworkable but contrary to our national of Lazard Freres' Felix Rohatyn by name. as well as international interests. • We must stimulate new economic growth on an The New Age international scale as the best means of restoring do­ These "post-industrial society" policies are Hart's con­ mestic and economic tranquility in our countries. sistent creed. His book, A New Democracy, states: "During • We must do everything in our power to change the last several decades, our economy has been undergoing the international atmosphere of suspicion and distrust dramatic structural change, a transformation as significant as between the superpowers, in order to achieve real the Industrial Revolution of the 19th century. It is shifting progress in arms control. from primary reliance on heavy industry and basic manufac­ • We must develop new mechanisms of cooper­ turing to a new concentration on advanced technology, com­ ation and communication-and perhaps new inter­ munications and services. " national institutions-in order to deal with the new At the Press Club breakfast, Hart was also asked about problems we face. We leave Sea Pines with a spirit the Atlantic Alliance; he reported that there was discussion of hope and determination that the dialogue we have at Sea Pines on the need to transform the "relative roles that begun is but a first step. each of the nations should play" in NATO defense. Asked by At the National Press Club breakfast Hart described the NBC about a State Department program of Henry Kissinger's Sea Pines Retreat as a "coming together" of young politicians for special parliamentary diplomatic training, Hart answered in their 30s and 40s who spanned the spectrum from left to that he would absolutely want to revive it.

EIR March 20, 1984 Special Report 17 The "advising" institutions to the Sea Pines retreat in­ Therefore, it is most useful to scrutinize Hart during the cluded the notorious Aspen Institute for Humanistic Stud­ period when he was first passionately extolling the post­ ies, the Kettering Foundation and ENI. The fonnalpr es­ industrial society belief structure at the summer, 1982 World entations were given by Peter Jenkins (policy editor of The Futures Society event: Guardian of London); Robert Hormats (fonner U. S. assis­ "It's not very often I have the opportunity to speak to a tant secretary of state for Economic and Business Affairs); ):,roup of revolutionaries. And that is what you are , in the Naohiro Amaya (Japanese Ministry of International Trade truest sense of the word. This conference is dedicated to a and Industry) and Dr. Walter Stutzle (fonner director for goal all of us should share: the knowledge and mastery of Policy and Planning, West Gennan Ministry of Defense .) change. Who were the participants at the "Transitions" retreat? "Y ou in this room understand better than most the tre­ Canada: Mark MacGuigan; Yvon Pinard (Liberal Party , mendous changes that are sweeping this country . You know President Privy Council); Robert Rae (New Democratic Par­ that its products and technologies magnify the power of the ty , member, Ontario Parliament); Michael Wilson (Progres­ human brain as surely as the Industrial Revolution magnified sive Conservative Party , member, House of Commons). our physical capacities. Federal Republic of Germany: Dr. Peter Corterier (So­ "There is no question we are entering a new era, one with cial Democratic Party , member, Bundestag); Dr. Ulrich Ste­ ger; Karsten Voigt (Social Democratic Party , member, Bun­ destag); Werner Zweitz (Free Democratic Party , member, Bundestag) . Italy: Adolfo Battaglia (Republican Party, member, Chamber of Deputies); Andrea Borri (Christian Democratic Party, member, Chamber of Deputies); Gianni de Michelis. Japan: Motoo Shiina (Liberal Democratic Party, mem­ ber, Diet). Spain: Marcelino Aguirre Oreja (Union of the Demo­ cratic Center, fonner foreign minister) . Sweden: Par Granstedt (Center Party , member, Riks­ dag); Ake Gustavsson (Social Democratic Party , member, Riksdag); pr. Lars Tobisson (Conservative Moderate Coa­ lition Party , member, Riksdag). United Kingdom: Kenneth Harry Clarke (Conservative Party , minister for health); Denzil Davies (Labor Party left wing, member of Parliament); Christopher Patten (Conser­ vative Party, member of Parliament); David Martin Steel (Liberal Party leader) . How a frontrunner is United States: Sen. Gary W. Hart(D-C olo.); Sen. Chris­ topher Dodd (D-Conn.), Rep. Geraldine Ferraro (D-N.Y.); manufactured Richard Hatcher (Democrat, Mayor of Gary , Indiana.); The Rasputins and media specialists who are adept at over­ Rep. James A. Leach (R-Iowa); Rep. Thomas Petri (R­ night propulsion of political nonentities into public promi­ Wisc.); Toby Roth (R-Wisc.). nence are working day and night on the case of Gary Hart. World Futurist Pollster Patrick Caddell and psychiatristPeter Bourne, who Gary Hart has a manner of letting his hair down in public created the commodity known as Jimmy Carter in their lab­ when he is convinced that he is among the "select." For oratory , are now perfonning plastic surgeryon the Hartcam­ gn. the script? instance, on July 20, 1982 he addressed the World Futures pai What is is a presidential election year. A Republican in Society General Assembly in Washington, D.C. The World It sits the Futures Society is the umbrella organization for the self­ White House. On the Democratic Party side, entries in the described Aquarian Conspiracy, various radical and cult race for the nomination are mainly party warhorses well movements committed to destroying industrial society and known to a bored electorate. Suddenly, a new face is cata­ i the institutions of Western Civilization as embodied in the pulted nto national political prominence by an unexpected filioque principle that each individual participates in God's victory in one of the primaries. The media seizes upon the continualcreation in the universe. Hordes ofHart volunteers newcomer and thrusts him into the public eye. His youthful today were deployed out of radical youth umbrella institu­ vitality, new ideas, and anti-Establishment pose are enthu- tions like the WorId Futures Society to "create the New Age."

18 Special Report EIR March 20, 1984 unlimited potential. But our fu ture depends on embracing not In the final analysis, how dangerous is Gary Hart? Can only the new technologies and the opportunities they provide, he win an election? Shortly after Hart's New Hampshire but the responsibilities they bring as well ...." victory, columnist Joseph Kraft wrote that in the final anal­ In the speech Hart went on to call for a "radical restruc­ ysis 1984 will be 1972 all over again for the Democrats­ turing of work, as current work skills are devalued and new when George McGovern, campaign-managed by Gary Hart, ones created at an ever-increasing rate ." Hart dedicated him­ was demolished in the general election-except under special self to leading this "restructuring" with the minimum pain circumstances. Kraft wrote: "It will take a severe national and maximum excitement. His projections? An inevitable setback-a disaster abroad or a sudden plunge in the econo­ job loss of between 5 and 7 million manufacturing jobs-a my-to breathe new life into the Democratic campaign." job loss 20 times higher than the auto industry was then It was precisely those circumstances for which the Sea experiencing. Therefore , he called for radical adjustments Pines "Transitions in Industrial Democracies" network were and "transformations" of the work force into futuristic indus­ prepared. Perhaps the early playing of the "Hart Card" by the tries and away from the basics of industrial and agricultural Eastern Liberal Establishment and European oligarchy is the production-the fundamentals of the American System of best reading available on their commitment to go beyond the economics. brink in risking the institutions of the West.

siastically extolled to the voters by the Washington Post and dale campaign) had been advising the Soviet and Libyan­ New York Times . He is now poised to win the nomination, backed group that mounted the Oct. 12 Grenada coup. and from there, to run a campaign against his Republican Bourne, his wife Mary King, and his friend Sam Brown opponent, in which he will contrast his freshnessto the fuddy­ (both of whom served in the Carter administration) are key duddy incumbent. fundraisers forthe Hartc ampaign. If this sounds familiar, it should. Hart is employing the • Policies: Like Carter, Hart maintains that his strong same strategy which Jimmy Carter used in his bid for the suit is "new ideas." But Hart's ideas are just a repackaged WhiteHouse . But the similarities "between Carter and Hart "information society" version of the neo-Malthusian policies donot endthere: that Carter pushed: limited resources, economic sacrifice, • Shapers: Masterminding Hart's campaign on a day­ population control, "renewable" energy sources. In fact,one to-day basis is PatrickCaddell, the man who did the same for of Hart's chief economics advisers, U.S. Club of Rome Carter . The Cambridge, Massachusetts-based political con­ member Robert Hamrin. served as a "panel professional" to sultant signedon with Harte arly this year andrevitalized his Carter's Commission for a NationalAgenda for theEighti es. flaggingcampaign by advising the candidate to use the same That commission urged, as Hartdoes now , that the "sunset" "anti-Establishment" "outsider" rhetoric which he had orig­ industries-basic industries like steel, which are essential to inally created forCarter. national security, be scrapped so that more resources could Another Carter insider now playing a prominent role in be put into the "sunrise" industries, i.e., computers, infor­ the Colorado senator's effort is Peter Bourne. A close ally of mation processing , and so forth . Caddell anda practicing psychiatrist, Bourneh ad maintained • Controllers: Hart's campaign is being shaped by the intimate relations with the Carterfamily since the late 1960s. same insiders who ran Carter's. Averell Harrimanperson ally He early encouraged Carter's presidential bid and, according tapped Jimmy Carter for the Democratic Presidency In the to his father, Dr. Geoffrey Bourne, saw the entire Carter early 1970s, and together with Henry Kissinger's piggybank, gambitas "a marvelous scientific experiment in how you elect banker David Rockefeller, put Carteron the Trilateral Com­

a President." Bourne, who was dismissed in 1978 for illegally mission to "get an education . " Averell Harriman told a na­ dispensing drugs to a White House subordinate, maintains tional TV audience last year that Hart was his favorite can­ multiple links to such KGB fronts as the Institute for Policy didate; many of Hart's advisers are drawnfrom the Kissinger Studies and the Vietnam Veterans Against the War. Before stable . joining the Carteradministration as Drug Policy Adviser, he • Personality profile: Hartb elonged to a fundamentali�t had been a national leader of the National Organization for sect, the Nazarenes, and attended Bethany College and Yale the Reform of Marijuana Laws, the "pot lobby" which has Divinity School, where he came under the influence of net­ pushed for legalization of all mind-altering "recreational " works committed to destroying the Judeo-Christian ethic in drugs. Bourne again turned up in the public eye last fall, favor of a return to pagan religion. Jimmy Carter's much­ when EIR di scovered that he and another Carter holdover, touted "born -again" religion had much more in common with RobertPastor (presently a foreign policy adviser to the Mon- paganism than with Christianity . ,

EIR March 20 , 1984 Special Report 19 A 'new idea' fo r military reform: taking America back to the crossbow by Susan Kokinda and Kathleen Klenetsky

Gary Hart has based his campaign on the contention that he ruption" issue, which all the establishment-approved Dem­ is the candidate of "the future ," the man armed with "new ocratic presidential candidates have avidly seized upon, is ideas." But one of Hart's most widely touted "new ideas"­ being used to watergate both the Pentagon and military con­ his proposals for military reform-would actually tum the tractors and bankrupt defense contractors essential to U. S. clock back on efforts to improve U. S. military capabilities. national security. For all intents and purposes, Hart is proposing that the United • "Downsizing" U.S. strategic deployments to "fit" States rely on the equivalent of semiconductor-driven cross­ dwindling U.S. resources. bows-in the face of a massive Soviet military buildup. • Substituting small, simple ships for the U.S. large­ An active member of the Armed Services Committee, carrier-basednaval fleet, on the spurious grounds that a larger Hart has emphasized defense matters since entering the Sen­ fleet of smaller and less technologically advanced ships would ate in 1974. But his main work in this area has been done give the United States "naval superiority." througha little-known group called the Military Reform Cau­ • Eliminating a variety of weapons systems ranging from cus, which he co-founded with Sen. Sam Nunn (D.-Ga.) the B-1 bomber to the MX missile. Hart, in fact, appeared at Established in 1981 as a joint project bf the Jesuit-run a press conference last May with former CIA directors Wil­ Georgetown Center for Strategic and International Studies liam Colby and StansfieldTurner -to announce a "national (CSIS)-Henry Kissinger's base of operations-and the mobilization" to stop the MX missile. KGB-tainted "conservative" Heritage Foundation, the Mili­ tary Reform Caucus has consistently advocated measures Together with his colleagues, Hart has lined up against which, while clothed in pro-defense garb, would sabotage U.S. efforts to develop a beam-weapon defense system, in U. S. militarycapabilit ies. Hart has emerged as a key spokes­ spite of massive evidence that the Soviets are on their way to man for the caucus, and many of its recommendations and deploying one. In the February 1984 issue of Arms Control proposalshave found their way into his presidential platform. Today, Hart blasted the Reagan administration's anti-missile proposals as "Star Wars ...tec hnically unworkable ... Simple is beautiful strategically unsound" and "a cruel hoax" and has hit on this The Military Reform Caucus's basic premise is straight­ issue consistently during his campaign. forward: Since the United States has no hope of contesting Soviet superiority in manpower and materiel, caucus mem­ Reducing U.S. power bers maintain, it should abandon any further attempts to Hart's defense reforms are simply the military component develop sophisticated technology and instead opt for greater of his overall foreign policy, one which proposes to slash the .. quantities of less complex weapons systems. Hart himself United States's global power and influence. Hartwas the first has written that "only simple weapons" are likely to work in senator to introduce a resolution calling for a U.S. troop combat situations, and therefore the United States should withdrawal from Grenada when President Reagan sent in "buy simpler, more effective weapons in larger quantities." troops after a Soviet-backed coup; he rabidly opposed the Based on this absurd argument, the caucus has spun out U. S. troop presence in Lebanon-even though the U.S. with­ a series of recommendations which include: drawal has increased the sway of Soviet surrogate Syria. • Stressing U.S. and NATO reliance on conventional Hart has also called for the United States to remove its weaponry at the expense of strategic modernization-an ap­ troops from Western Europe. In his 1983 tome, A New De­ proach favored by Henry Kissinger and incoming NATO mocracy: A Democratic Vision /o r the 1980s and Beyond, Secretary-General Lord Peter Carrington as part of their the candidate argues that there should be a "division of labor broader"New Yalta" deal with the Soviet Union. within NATO" in which the United States would take over • Reforming the military procurement process through the defense of the "West's lifelines in the Atlantic and Pacif­ open competitive bidding and other means . This "anti-cot- ic" while European NATO members "would have to assume

20 Special Report EIR March 20, 1984 a proportionately greater share of the land defense of the Continent itself' since the United States would have to with­ draw a significant number of its troops in Europe. Hart's proposal markedly resembles Henry Kissinger's controversial March 5 Time magazine essay, in which he called for a "decoupling" of Europe from the United States under the guise of "reshaping" NATO. Kissinger's proposals Hart's economics: are now being put into legislative form by Sen. Ted Stevens (R-Alaska), one of Hart's close colleagues on the Military 'fascism with a Reform Caucus. This is hardly the only area where Hart and Kissinger find human face' themselves in close agreement. Hart is a big booster of the so-called "build-down" proposal (under which old missile by GrahamLowry systems would be replaced by smaller-scale, one-warhead missiles) which Henry Kissinger and his epigones on the ScowcroftCommi ssion managed to foist on Reagan last fall. In the area of economic policy, Gary Hart's self-styled "new That Hart and Kissinger share the same approach on ideas for the 1980s" are Aquarian versions of Mussolini's crucial national security questions is understandable, given program. The proposal Hart outlines in his A New Democracy CSIS's role in setting up the Colorado Senator's military firstemerged in the mid- 1970s under the label "fascism with reform group. In 1981, CSIS formed a Congressional Out­ a human face." reach program which, under the leadership of Sam Nunn and Hart writes of the need to reverse "porkbarrel" politics, Rep. Richard Cheney (R-Wyo.), and with the participation to "weigh competing claims on the federal treasury . . . and of Gary Hart, began a wide-ranging exploration of national to allocate scarce resources." Hart demands "worker retrain­ defense and strategic matters. Henry Kissinger keynoted the ing" for the post-industrial "Age of Information" and propos­ group's first meeting, immediately after which Nunn, Hart, es the creation of "a small council capable of providing long­ and Cheney set up the Military Reform Caucus. Other Re­ range vision into the industrial future ." This is the language, form Caucus members were involved in the CSIS program, and these are the plans, of the Harrimanites who propose to including Sen. ClaibornePell (DcR.I.), a top Harriman Dem­ eliminate 2 billion people from the earth by the tum of the ocrat, nuclear-freeze supporter, member of the genocidal century. Club of Rome, and one of the last Americans to be granted In the fall of 1982, Hart cosponsored a bill that would an audience with Yuri Andropov. remove all policy-initiating authority for "public improve­ Hart sits on CSIS's advisory board together with KGB ments" from the hands of Congress and assign it to an inde­ asset Armand Hammer and William Rogers of Kissinger pendent commission to be chaired by a non-elected "budget . Associates . expert" from the private sector. The bill, dubbed the Rebuild­ CSIS spokesmen Dr. Michael Feeney reported that the ing of America Act, was filed by Sen. Daniel Moynihan (D­ Washington, D.C.-based think tank"has worked very closely N. Y.), a pet of the Averell Harriman who was a public with the reform caucus." In fact, Bill Lind, Hart's key mili­ supporterof Hitler and Mussolini into the 1930s. tary aide and a co-author with him of a Feb. 14, 1982 New Hart hailed the bill as a testament that "we cannot contin­ York Times Magazine piece called "What's Wrong With The ue the failed 'porkbarrel' politics of the past. Rather, we must Military?" has, according to Feeney, "spent a lot of time over spend our limited resources on those projects that will provide here." Feeney also disclosed that the caucus's key point man the greatest benefitto the public." As Hart's public support on the CSIS staff is Barry Blechman, who was most recently for the proposals of the Carter administration's Global 2000 found strenuously advocating the proposal for a "nuclear­ Report confirms, this is a plan for enforced scarcity. Among free zone" in Europe, shortly before it was revealed that the the planners Hart pays tribute to in A New Democracy is Jay proposal was written by KGB super-spy Arne Treholt (see Forrester, co-author of the Club of Rome fraud Limits to EIR , Feb. 14, 1984). Growth. A shared determination to sabotage President Reagan's Dictated by the New York investment bankers and Fed­ new strategic doctrine of March 23, 1983 has put Hart and eral Reserve Board officials who have worked for years to the Military Reform Caucus in bed with the "ultraconserva­ crushthe U.S. economy, the solution proposed for America's tive" Heritage Foundation, backers of Gen. Daniel Graham's rotting infrastructure amounts to a strategic bombing runon "High Frontier." In March 1983, Hart spoke to the Senate on its remains. Funding for facilities to be "saved" would be the need for "A Military Reform Defense Budget for Fiscal placed under state or regional authorities similar to the finan­ Year 1984," and praised the Heritage Foundation's Agenda cial dictatorship established over New York City by Lazard 1983, which complained about the Pentagon's "overemphas­ Frt!res banker Felix Rohatyn's "Big MAC" Municipal Assis­ is on long-shot technology. " tance Corporation.

EIR March 20, 1984 Special Report 21 Creating austerity dictatorships NEP), including Club of Rome member Glenn Watts, presi­ The infrastructure legislation Hart supports exemplifies dent of the Communications Workers of America. the approach. The independent commission it would estab­ At its founding press conference, ICNEP spokesmen dis­ lish would determine the priorities and financingmecha nisms tributed literature on "The Coming Corporatism" which for public works "over the next 10 and 20 years ." Ending the frankly stated , "Let us not mince words. Corporatism is fas­ powers of Congress to foster internal improvements for the cism with a human face." ICNEP's proposed regional aus­ development of the nation, the commission would issue rec­ terity dictatorships would be run by the business-labor-gov­ ommendations that "shall be deemed to be approved by Con­ ernment planning and financial control boards now pushed gress and shall be the policy of the federal government" by Rohatyn and Hart. unless the House and Senate pass a "resolution of disap­ The same week that Moynihan and Hart introduced their proval" within 120 days. "Rebuilding America" legislation, Moynihan called for a No new infrastructure is envisioned in the Moynihan­ Reconstruction Finance Corporation (RFC) to manage what Hart legislation. The bill specifiesthat priorities be assigned he referred to as the "creative destruction" of the nation's to "needed maintenance, repair, rehabilitation or replace­ "less efficient companies," extending funds to enable them ment of public improvements in each region . . . taking into "to shut down gradually without the economic disruption of account the least-cost life-cycle costs." In true Keynesian a sudden closure." In A New Democracy, Hart talks of the fashion, rather than infrastructural development boosting the need for financing mechnanisms to make basic industries entire economy, public works projects are to be scheduled productive once again, and to secure labor "acceptance" of during downturns in the economy, "in order to reduce the new technologies. The actual thrust of these policies is better cost of such work." The commission is also instructed to summarized by their leading architect, Felix Rohatvn . consider excise taxes and user fees. Writing in the New York Times magazine of Dec . 5, 1982, Rohatyn stated, "In the industrial field, the RFC's invest­ 'Retraining and relocating' ments would be limited to those basic industries such as Hart's package for enforcing the final transformation of automobiles and steel that could be made competitive. The America into a "small is beautiful" society stresses a corpo­ RFC would provide funds only if there were concessions on ratist business-labor-government "partnership." For A New the part of labor, management, suppliers , and bankers suffi­ Democracy, Hart borrowed heavily from a 1981 publication cient to make the company competitive with the best foreign of the Council of State Planning Agencies, "America in Ruins; producers ." In his book, Hart proposes that any industrial Beyond the Public Works Pork Barrel ," by Pat Choate and , assistance be "tied to modernization and growth agreements Susan Walter. Choate was also the author of a late- 1982 ...on making the industry more competitive." report by the Northeast-Midwest Congressional Coalition, "Similarly , in the public infrastructure field the RFC 's proposing that up to 15 million remaining industrial workers capital would be available only if local support-such as tax be forced to finance their own "retraining and relocation." changes, union productivity and wage concessions, fare and Hart endorses Choate's swindle by name in his book, user fees-assured the viability of the projects." praising the so-called Individual Training Account-man­ datory wage deductions to be held in escrow until the work­ , Any of them would do it' er's job or industry disappears-and notes that "it would Hart's home state of Colorado is the center for integrating reducepressure on unemployment insurance funds," for which studies in more than 20 states of how to triage infrastructure . workers with an ITA would be ineligible. Commissioned by the Joint Economic Committee of Con­ Projecting the new jobs his Aquarian policies would sup­ gress, the studies were conducted last year under the National posedly generate by 1990, Hart cites as the second largest Advisory Board on Infrastructure (NABI) , chaired by the category 700,000 "geriatric social workers ." Hart also pro­ austerity-mongering former chairman of the JEC, Henry poses looting employee pension funds, both public and pri­ Reuss. Colorado's Gov. Richard Lamm, a strong supporter vate, which he notes eagerly in his book is "our largest pool of Gary Hart, was a board member. Funding came from the of capital. " Rockefeller Brothers Fund, the Ford Foundation, and the The planning group for the policies on display from the Cummins Engine Foundation, which previously funded IC­ Harrimanite candidates is the Industrial Policy Task Force of NEP's "fascism with a human face ." the Center for National Policy, a stable of former Carter Interviewed last year, the study director, Prof. Marshall administration officials and advisers co-chaired by Felix Ro­ Kaplan of the University of Colorado at Denver, declared, hatyn; Lane Kirkland, president of the AFL-CIO and cham­ "You need a national overview to set priorities. What it boils pion of the Federal Reserve; and former Du Pont chairman down to is learningto manage scarcity in the '80s and '90s." Irving Shapiro , specialist in liquidating corporate productive As Ted Van Dyke, executive director of the Center for Na­ capacities. Also on the task force are holdovers from the 1975 tional Policy, predicted a year ago concerning this agenda, Initiative Committee for National Economic Planning (IC- "any of the Democratic candidates would implement them."

22 Special Report EIR March 20, 1984 defense capability-a nuclear weapons freeze, a comprehen­ sive test ban treaty, ratification of SALT II, and negotiation of "an anti-satellite space-war treaty"eliminating new defen­ sive beam weapons that could knock out attacking nuclear missiles in flight. Not a dime '5 worth The blurry John Glenn of difference While John Glenn has limpedthrough the early primaries on a rather blurred profile designed to attract and dead-end the moderate-to-conservative Democratic voter, the Kissin­ byGraham Lowry ger-Harriman combination has so far not found it worth ex­ pending manyresources on him. Glenn established an early The combination of Henry Kissinger and Averell Harriman reputation for putting audiences to sleep; he recently has tried playing kingmaker is at the center of this year's presidential opening speeches with, "My son is an anesthesiologist. Like campaign, just as it was in 1968 when Kissinger worked with father, like son. " both Republican candidate Richard Nixon and Democratic By the second week of March, key Glenn supporters in contender Hubert Humphrey-while manipulating foreign­ the Midwest and South were switching to Gary Hart, gener­ policydevelopments with Averell Harriman on the Vietnam ally on the stated basis of not wanting to help Mondale by peace negotiations. dividing votes between Glenn and Hart. Glenn's campaign To date , Mondale has proven why he was never elected team regarded his continuance in the race as problematic . to public office-nobody wants to vote for him. But the "We've .reached our goal-line stand," said a Glenn coordi­ general media line that he has "great organization" for getting nator for the South. everything but votes has an element of truth in it. Of all the Glenn's campaign advisory apparatus was quite modest. Moscow-endorsed candidates, Mondale has the greatest ar­ As one of his senior campaign staffers in Washington put it ray of Kissinger and Harriman assets on the Trilateral Com­ when asked for a list of Glenn's prominent advisers, "If we're mission. A Mondale White House would look like a Kissin­ looking for luminaries, I'll tell you the truth-Glenn was ger-Trilateral Commission clubhouse. never one to pick a guru. He won't just pick one man and ,, say, 'he's my expert. , Instead, Glenn supposedly consults The Mondale team a sIIiall group of informal advisers, the "most senior" of Mondale's official campaign adviser list includes WU­ whom is retired Adm. James Woolsey, one of the prime liam Hyland, Kissinger's favorite "Soviet expert," a Trila­ backers of the nuclear "build-down" proposal foisted on Pres­ teral member, and the editor of Foreign Affairs; Winston ident Reagan by the Kissinger-Harriman group last fall. Lord, Kissinger's former White House aide, a Trilateraloid, On economic policy, Glenn consults with a group of and president of the New York Council on Foreign Relations; economists ranging from not-so-colorful to invisible, but all and Viron P. Vaky, Latin American expert from the National distinguished as raving austerity-mongers: Henry Kautl'­ Security Council under Kissinger. Additional Trilateral man, the self-styled oracle of the marketplace, generally Commission members advising the Mondale campaign are known as Fed chairman Paul Volcker's alter ego; Charles Cyrus Vance, James R. Schlesinger, Harold Brown, Sol Schultz, chairman of the Council of Economic Advisers Linowitz, Richard Holbrooke, Warren Christopher, (CEA) during the economic carnage of the Carter-Mondale Graham Allison, and John Culver. Eleven more advisers administration; Walter Heller, the relic from Mondale's were also members of the wretched Carter-Mondale Minnesota who chaired the CEA under Presidents Kennedy administration. and Johnson; and Alice Rivlin, recently retired director of With a gang like this, no wonder Mondale adviser Robert the Congressional Budget Office, Capitol Hill's indefatigable Pastor was writing strategy papers for the Soviet-backed propagandists against economic growth, energy develop­ butchers President Reagan had to send in Marines to clean ment, and progress in general. out of Grenada. From Moscow's standpoint, the editorial Finally, one candidate who intends to stay on to the end praise heaped on Mondale Feb. 12 in Izvestia was well de­ as a sewer-pipe for all kinds of dirty operations is Jesse served. During the last two months of campaigning, Mondale Jackson, whose antics have included "negotiating" the re­ has called for the withdrawal of U. S. forces from Lebanon, lease oian American flierdowned by Syrian fire in Lebanon, the cancellation of the B-1 bomber and the MX missile, and on a triparranged by Louis Farrakhan, head of the Libyan­ the rapid implementation of Henry KissiQger's proposals for controlled wing of the Nation of Islam (Black Muslims) in eliminating large, multiple warhead missiles and replacing the United States. Farrakhanpublicly praised Libyan dictator them with small, single-warhead "Midgetmen." He has called and terrorist promoter Muammar Qaddafi , at a conference in for the whole array of Pugwash disarmament measures that Gary, Indiana which opened with a telegram of greetings Moscow is confident would eliminate any significant U.S. from Qaddafi .

EIR March 20, 1984 Special Report 23 Interview: Melvin Klenetsky

Can anti-Kissinger Democrat LaRouche win the Pennsylvania primary?

EIR interviewed Mel Klenetsky, the campaign director fo r Mr. LaRouche has been encouraging the candidate-move­ Democratic presidential candidate Lyndon H. LaRouche, ment process and is happy to report that more than 2,000 Jr. , on March 8. candidates call themselves "LaRouche Democrats" and are running on his program nationally.

EIR: Some people give your candidate, Lyndon H. La­ EIR: Democratic National Committee chair Charles Manatt Rouche, Jr. , credit for Mondale's upset in New Hampshire , claims that LaRouche is "not a real Democrat" and has called though LaRouche didn't run in that primary . LaRouche's organization "bizarre" and "extremist." Is Klenetsky: It was Mr. LaRouche's hardhitting campaign LaRouche a Democrat? against the Trilateral Commission in the 1980 New Hamp­ Klenetsky: Not only is LaRouche a Democrat, but thou­ shire primary that enabled Ronald Reagan to beat Trilateral sands of his supporters are now running for office in the Commission member George Bush . And the LaRouche pres­ Democratic Party , and the LaRouche takeover of the party is idential campaign had an important impact in the 1984 New occurring despite Manatt and Harriman's desperate tactics of Hampshire contest, even though LaRouche did not run in it. slandering Mr. LaRouche and his supporters and trying to The hatred for the Trilaterals manifested itself in the resound­ keep the policies LaRouche is promoting out of the party. ing anti-Mondale vote Feb. 28. Mr. LaRouche's Jan. 21 Manatt and Harriman are appeasers. They are following the ' national TV broadcast in which Mondale was identified as Moscow line on the nuclear freeze and disarmament ques­ partof a "fifth column" for the Soviet KGB was not irrelevant tions, and have done as much as any group in the country to to the outcome. perpetrate the post-industrial society which has led to the We have always known that there's been a vacuum of industrial and agricultural collapse which threatens to make leadership in the Democratic Party. The Harriman-Manatt­ us a "former" superpower. Kirkland wing of the party , which had placed all its eggs in If LaRouche wins, Manatt and his minions will be ousted the basket known as Walter Mondale, was now running from power, and the Democratic Party will fall to LaRouche. roughshod and using thug tactics to get a Mondale steamroller That's the name of the game. Because of this sitaution, going. LaRouche wanted all the appeasers, "Snow Job and the Seven Dwarfs ," to knock each other out in the early primaries, EIR: Your candidate did not enter the early primaries, which which is precisely what happened. First of all Manatt, Kirk­ are usually considered to be crucial for winning the nomina­ land, and Harriman do not have control over the constituen­ tion. What is your strategy? cies which have been increasingly disenfranchised since the Klenetsky: The first two primaries we will enter are close McGovern race of 1972. More and more , the blue-collar together, Louisiana on April 7 and Pennsylvania on April I O. worker, the American farmer, and your average citizen have Louisiana just decided to have a primary, and we decided to watched with horror as the Democratic party was taken over go with it, but our major preparations have been for the by lesbian and radical caucuses. Pennsylvania primary. Mr. LaRouche's goals have been two­ What happened in New Hampshire was lawful-a grass­ fold: to initiate a candidates' movement able to implement roots revolt against the symbol of this leaderhip grouping, policies that need to be implemented this year, before the Mondale. The vote for Hart was more of an anti-Mondale, election-policies concerningboth the strategic issue and the anti-Manatt, anti-Kirkland vote. Very few people know Gary economy. Mr. LaRouche's early exposure to the national Hart. When they learn that he dropped his "pence"-short­ electorate occurredwi th his two paid nationwide prime-time ened his name from Hartpence to Hart, and dyed his hair TV addresses Jan. 21 and Feb. 4, where he outlined his blond when he was McGovern's camapaign manager, and National Defense Emergency Mobilization Act as the nec­ advocates the same futurist policies as Benito Mussolini, essaryfeature of a defensive beam-weapons program for the most people will balk at getting on the Hart bandwagon, no United States in a 1939-43 Roosevelt-style economic revival . matter how Pat Caddell packages this Colorado critter.

24 Special Report EIR March 20, 1984 EIR: Certain media, not only in the U.S.A. but in Europe , That became the NDPC, which now has over 30,000 mem­ have proposed that a deep economic recession brought about bers and is fielding more than 2,000 candidates for public by Volcker's high interest-rate policy will topple Reagan's office; we expect the total to be 10,000 by the time of the re-election chances no matter how repulsive the Democratic November election. candidate is. Can you comment? The Manatt faction of the Democratic party is hysterical. Klenetsky: Absolutely . There are two things that will lose The Democratic county leadership in Will County, Illinois, Reagan the election. First is the re-emergence of Henry Kis­ for example, is taking out ads for write-in candidates against singer as a factor in foreign policy, as witness his recent the LaRouche slate, for fear that they now control already appointment to the Foreign Intelligence Advisory Board and one-fourth of the Democratic Party in suburban Cook Coun­ the use of his recommendations from the Kissinger ty . LaRouche supporters have already contributed more mon­ Commission . ey to the LaRouche campaign than was raised in 1980 and he Kissinger is a liability to the entire human race and cer­ has already appeared on two half-hour TV shows and will tainly to any presidential aspirant, a simple fact of life which appear on March 17 on a nationwide NBC telecast and five Gerald Ford learnedthe hard way. His March 5 Time maga­ half-hour TV spots in Pennsylvania on the same night on zine piece calling for pulling U. S. troops out of Europe and different channels on March 17. Mr. LaRouche intends to eliminating the nuclear umbrella was clearly seen by Euro­ capture the imagination of the Pennsylvania electorate by peans as a policy which had to be designed or advocated in presenting the importance of Pennsylvania steel and water­ Moscow , coming out of the mouth of the biggest butcher that ways and ports and agriculture for the entire nation. the Third World has known in the 20th century. To the extent During this program the candidate will detail plans to that Reagan embraces Kissinger on the one hand , and allows open up unutilized capacity, even if it means doing so under Paul Volcker's economic policies to prevail on the other, he the confiscation guidelines of the National Defense Produc­ is risking the wrath of the electorate , if the economic blowout tion Act. Mr. LaRouche will address the problem of the occurs in the next few months and the strategic situation Mellon banks and their foreclosure procedures against un­ worsens due to Kissinger's manipulations. employed steel workers , and will propose to outlaw foreclo­ sures until unemployment drops below 2%, all in the context LaRouche , in opening the major part of his effort in Pennsylvania, will be using that important industrial and of a National Defense Emergency Mobilization. There is no agricultural state , the center of our steel and farm industries, policy in the Democratic or Republican Party except Mr. to rally citizens around the policies needed to get us through LaRouche's that can save the nation. By media campaigns this crisis. As indicated by New Hampshire, people are in a and a 1arge volunteer effort and candidates movement, this state of rebellion against the existing party leadership. La­ message will get across, and we fully expect the population Rouche will use the Pennsylvania primary as a rallying point of Pennsylvania will rally to the LaRouche campaign. for his National Emergency Defense Act to send shock waves through the Democratic Party and policy circles across the EIR: Our investigations show that Mondale, Glenn, Hart, globe . McGovern, and Jackson all have ties to �enry Kissinger in That process of rallying the population will escalate in all policy and overlapping sets of advisers and funders . Who are the candidate races of LaRouche supporters that begin to Mr. LaRouche's advisers and funders? come on line and the primaries and caucuses that LaRouche Klenetsky: Mr. LaRouche's rallying cry for the Democratic is running in from then on: Nebraska, California, Ohio, Or­ Party is a call to arms for patriots within theparty to reforge egon, Maryland, South Dakota, and West Virginia, where the farm-labor-ethnic-industrial alliance that existed during LaRouche is currently on the ballot; and New Jersey, North the last period of the FDR administration. Mr. LaRouche has Dakota, New Mexico, North Carolina, Idaho, Texas, Colo­ been in regular contact with regional and local leaders rep­ rado , and other states where LaRouche plans to petition or resenting these constituents. fight in court to be placed on the ballot by the secretaries of His campaign coordinator for Western Pennsylvania is state . former UAW Local 544president John McCarrell, who sees the LaRouche effort as the only thing leftfor the party. Hulan EIR: In 1980, LaRouche ran in the Democratic presidential Jack, the former borough president of Manhattan, a promi­ primaries in about 15 states. His official vote totals were nent spokesman in the black community , and a civil-rights relatively low. Given the lack of media attention to the leader of the 1940s before civil rights became fashionable, is LaRouche campaign, how do you anticipate a substantial among LaRouche's advisers . More' than any other candidate showing for him in Pennsylvania, which is key to your Mr. LaRouche draws on a broad base of contributions from strategy? these constituencies that have no other institutional form of Klenetsky: In the 1980 campaign LaRouche bought four expressing their views than The LaRouche Campaign and the half-hour prime-time TV spots to get across his message . We National Democratic Policy Committee, the political action faced a hostile press then as now . The effect of those spots committee of which Mr. LaRouche is chairman emeritus of was a grassroots movement around LaRouche's policies. the advisory board.

EIR March 20, 1984 Special Report 25 Kissinger plans new Vietnams in !bero-America

byNancy Spannaus

Henry Kissinger, appointed by the President to his Foreign continent with the food supply to service an emerging Latin Intelligence Advisory Board the second week in March, has American Common Market, is a key target. The new govern­ launched a campaign to tum all of Ibero-America into a new ment, which has shown ample willingness to cooperate with Vietnam. Kissinger has sold his depopulation programthrough Great Britain and the United States on military issues, con­ civil wars under the cover of "cleansing all communist influ­ tinues to be unable to pay even interest on its $43 billion .- ence out of the area." dollar debt. The triggerfor the wave ofbloody civil wars , on the State Department drawing boards under the name of the Second Dismantling Argentina's defense War of the Pacific, is expected to be an attack by Chile on Kissinger's henchman "Dirty Harry" Schlauderman al­ the nation of Argentina. Kissinger is up to his eyeballs, along ready began carrying out the plan when he gave U. S. backing with the British governmentand incoming NATO chief Peter to Argentina's Alfonsin government's program for disman­ Lord Carrington, in promising military backup to the shaky tling the nationalist sections of the armed forces. Alfonsin is Pinochet regime for a "second Malvinas war" against Argen­ in the process of purging the air force, the only service that tine territory , and possibly an invasion against Argentina's aggressively fought against Britain in the Malvinas, in order military ally, Peru. to "atomize" the armed forces. Kissinger-the man who just offered WesternEurope to The reorganization plan calls for the creation of inter­ the Soviet Union in his Time magazine article of March 5- force combat units and "highly professionalized" rapid de­ has also won approval from the Reagan administration for an ployment forces enjoying a "capability for mobilization." It "anti-communistcrusade" which will target the governments proposes the creation of a joint command, to operate out of of Peru, Mexico, and Colombia, among others. The govern­ the defense ministry under the supervision of Defense Min­ ments which Kissinger labels "communist" are in fact the ister Raul Borras , which would make decisions , among other nationalist governments which have resisted the full-scale things, on geographic distribution of military units. There implementation of IMF genocide programs in Thero-Ameri­ are also reports of a 30% reduction in the defense budget for ca. It is U.S. backing for IMF austerity which threatens to 1985, although this has not been confirmed publicly. turn the entirety of lbero-America into a fertile recruiting Alfonsin's moves against the military, including widely ground forthe Soviet KGB . publicized show trials and demagogic cries for "democrati­ "Henry Kissinger is trying to create new Vietnams zation," not only threaten to dismantle Argentina's defenses throughout South America," charged Democratic presiden­ but are also affecting its relationship with its neighbors. Highly tial candidate Lyndon H. LaRouche, Jr. "He is a worse butch­ reliable Argentine sources point to a crisis in Argentine­ ' er than Adolf Hitler. I am angry and want to destroy Kissinger Brazil relations, caused in part by Alfonsin's stance of deal­ now. I hope I can achieve my goal before he destroys Mexico, ing with "the people," not the government of their country . Argentina, and Peru , and the rest of lbero-America." Argentine-Brazil relations have also been strained by the Kissinger's Vietnam blueprint begins with unleashing intervention of U. S. Secretary of State George Shultz on Chile against Argentina. Argentina, the only nation on the behalf of the "special relationship" between Brazil and the

26 International EIR March 20, 1984 United States. Should Brazil be impelled by threats and re­ been there jection of interference by all outside powers, es­ wards from the U.S. to put its relationship with the U.S. pecially the superpowers. It is precisely this point of view to above its relations with other Ibero-American nations, the which Kissinger violently objects. major deterrent to massive destabilization of the continent Kissinger underlined this point in a recent speech in will be eliminated. Houston, Texas. We have to learn our lesson from the fact that Syria turned out to be the winner in the Lebanon situa­ The Chilean trigger tion, Kissinger said. That shows that civil wars cannot find The Pinochet government, which collaborated with Brit­ negotiated settlements, but always have winners and losers. ain in the Malvinas conflictto a point just short of declaration You have to go in and back one side hard, he said, indicating of war on Argentina, is also being primed to fight. Chile has that this advice must be followed immediately in the Central received a favorable mediation agreement by the Vatican on American situation. theBeagle Islands. Although Argentine sources indicate that A related reason for the uproar against Betancur is the the agreement has no chance of going anywhere, the agree­ fact that he is waging full-scale war against the highly placed ment adds weight to Chile's demands against its neighbor. drug-pushers in Colombia and their backers in the military. In addition, well-informed lbero-American military forces As national elections approach the weekend of March 10, report that Britain is pouring military aid into Chile, and violence is escalating from both leftist-backedguerrillas and promising logistical backup for the Chilean navy in case of the military to threaten Betancur's rule. The democracy hangs hostilities. Sources connected to the pAS indicate that Brit­ by a thread. ish military support will include backup for Chilean claims According to a report in the March 4 edition of the Co­ on Antartica and the surrounding natural resources, and per­ lombian daily El Espectador, in a speech to senior officers of haps even the sale of the aircraftcarrier H.M.S. Hermes. the armed forces, former defense minister Landzabal stated In this context, the revelations of U.S. military backup that "if for reasons of national security his presence is again for Great Britain in the war of the Malvinas, published in the required in the ranks, 'we will be prepared to return to London Economist of March 3, take on immediate strategic them. '" Taking aim at President Betancur's strategy of am­ importance. In excruciating detail, the Economist reveals nesty for the guerrillas, he declared: "Dialogue is thus ex­ how Secretary of Defense Weinberger authorized the deliv­ tended, with no limitations in either time or space, such that ery of massive amounts of weapons, logistical support, and the force of arguments and circumstances brings into the intelligence in order to prevent a British defeat in the seas sentiments of the armed forces the false need of ceding in the around Argentina. The most remarkable offer of Mr. Wein­ face of the intentions of the enemies of order and peace. . . . berger, the Economist says, was his proposal to give the The heroism of the soldiers who fall with the cry of the British the amphibious assault ship U.S.S. Guam, in case fatherland in their mouths is denied, [and thus] the war is either the Hermes or the Invincible were incapacitated. being lost in the halls of dialogue." In conclusion, the Economist notes "how easily Ameri­ Within days after this direct challenge to the President­ ca's allies can involve it in conflicts not of its own choosing." who had forced him to resign a few weeks before-the sup­ Since hostilities over the Malvinas have still not ended, and portersof the drugtrade tookanother initiative by filinglegal Britain is heavily arming the Chileans, there is a very clear charges against Minister of Justice Lara Bonilla, the kingpin indication that Britain might involve the United States in a of Betancur's anti-drug campaign. So far this effort has been conflictagainst Argentina-however privately-onceaga in. unsuccessful. The beleaguered Pinochet government,recently deserted Those who are tempted to believe Kissinger's "anti-com­ by the powerful Catholic Church and officially ostracized by munist" ruse should be reminded not only of his record of the U.S. government,would appear not to be in any position negotiations with the Soviet Union-which stripped the to starttrouble with its neighbors. However, there are indi­ United States of its military superiority-but also of his re­ cations of a set-up for hostilities. cent treatment of U. S. allies in Europe, whom he has offered Kissinger's "anti-communist" crusade IS also providing to the Soviet sphere of influence. backing to open military insurgency against the anti-drug The Feb. 18 issue of the Lima daily La Republica carried governmentof Colombia. The entire drug lobby, including a report that the United States was in the process of selling ejected former defense minister Landazabal, are calling for Chile nuclear-tipped "Pershing II" missiles. The article the overthrow of President Betancur on the grounds that he claimed to be based on a photocopy of confidentialU. S. State is a "communist." Department airgram No. A-1490, signed by Kissinger's bud­ The Colombia governmentis a particular thornin Kissin­ dy George Shultz, and sent to all U.S. embassies in Ibero­ ger's side becauseit has played a crucial role, as has Mexico, America. The La Republica author asserts that he verifiedthe ' in the Contadora group, the four nations who committed story with "Latin American intelligence sources." themselves to finding a solution to the Central American The story caused an immediate diplomatic incident with conflict based on preserving national sovereignty. First and the Peruvian government, against whom the Chileans have foremost among the demands of the Contadora group has long-standing terroritorial claims. Forty-eight hours later the

EIR March 20, 1984 International 27 Chilean and U.S. embassies emphatically denied the report, claiming that the airgram had been a KGB fabrication. The most prominent KGB asset working on the program for war between Chile and Peru , however, is Henry Kissin­ ger. Kissinger has long been on record in support of the RAND corporation scenario called the Second War of the Green Party: terror Pacific, in which a "pro-American" Chile would go to war with the "pro-Soviet" Peruvians and Argentina. by Joerg Kremer In addition, high-ranking military sources in lbero­ Americaargue that the Pershing report was principally psy­ chological warfare , but based on an element of truth: that the When the Green Party convened on March 3-4 in the city of United States and Britain are committed to anningChile , and Karlsruhe to prepare for the European Parliament elections that there has been discussion in the U.S. Senate over what this June, it resembled a madhouse. Rejecting modem Eu­ to do with various nuclear weapons systems. The source was rope, modem industry, and modem society, the Greensturned emphatic in rejecting the State Department line that the "leak" to the worship witchcraft cults: was KGB-inspired , indicating it was clearly a British opera­ "Mother Earth Does Not Know Any Fatherlands!" The tion. The British have been trying to play Chile against Ar­ term "Fatherland" was considered a synonym for "nation­ gentina and Perufor years, he argued, and this move would state"; the Greens called for a "Europe of the Regions-a not only exacerbate such conflicts, but also hurt the Reagan Europe of the Motherlands." Heedless of the millions of administration in Ibero-America. jobless industrial workers , the Greens called for "a special legal status for millions of animals" which they claimed "have The anti-communist fraud no representation in the parliaments and are being suppressed There is no question but that the real content of the Kis­ by modem society." The variouscats and dogs runningaround singer Commission report on Central America was the out­ or sitting at the panel seemed unappreciative, as did the lining of an "anti-communist" crusade against all the viable "independent youth movement" punksters in attendance. nation-states of the region. Since the report was issued, Kis­ The Greens' engagement on the side of "nature" in their singer allies in Mexico, Colombia, and Costa Rica have come "fight for survival against industrial society" extends into the forward to attack the defenders of national sovereignty as sphere of agriculture . The Greens believe what one speaker "communists. " at the Karlsruhe convention expressed in the following way: The most blatant case of this set-up for bloody civil wars "Modem forms of meat production enslave the animals, and is Mexico, which Kissinger aficionado General Robert Gor­ today's agricultural policy of the European Community is man recently attacked as the center for subversion in the basically hostile to animals' real needs and self-development region. Almost immediately afterwards, ABC television in­ rights. " terviewer and Kissinger intimate Barbara Walters asked a Another point attacked in Karlsruhe was the European Kissingeresque question at the New Hampshire Democratic Community's commitment-as stated in its founding prin­ Party debate, inquiring how the candidates would react, as ciples of 1957-to the "promotion of economic growth." ' U.S. President, to a communistic insurgency in the Republic This notion, the Greens say, reflects"the exaggeration of the of Mexico. masculine principle in history , which leads to exploitation of While the other Democratic presidential candidates Mother Earth and thus to extinction of natural resources." hemmed and hawed, and in a couple of cases indicated ,that they would order an invasion, presidential contender La­ Witchcraft and separatism Rouche went to the heart of the matter by attacking the Kis­ The Greens' outlook was expressed in the keynote ad­ singer invasion plan behind the question (see article, page dress by one of the party's deputies in the Bonn parliament, 48). Antje Vollmer, to the 1,000 delegates and guests: "Looking The "communist" threat in Mexico is, in fact, an alliance back on what these countries which are ranked in one way or of the Nazi PAN Party with the communist party for a "free­ another under the notion of 'Europe' have in common, I must enterprise" drug takeover of the country . This Nazi-Soviet say it is a history of common evils and plagues ....Witch­ alliance would not be such a problem, if the Kissinger-con­ hunts victimized millions of women, and that is why they trolled State Department and the KGB-run FBI were not [the men] took centuries in every country to recover from this working overtime to give it U.S. backing. In particular, the destruction of female knowledge, self-consciousness, and State Department has insisted that Mexico implement IMF female emancipation." conditionalities that foster opposition to the government, and Mrs. Vollmer went on to pose the Green model , "the art that it implement the secret IMF conditionality which calls of surviving"-a mixture of "pictures and colors of a specific for promoting the PAN as the champion against "one-party landscape, the rhythm of songs and dances" and of "regional rule." dialects of language."

28 International EIR March 20, 1984 The origins of 'Europe of the Regions' The "Conservative Revolution" character of the Green movement was underlined by the fact that among the first 10 candidates on the European election slate the convention chose, four belong to the European nobility. The Green no­ andwitc hcraft tion of a "Europe of the Regions" has always been the battle cry of the oligarchy against the modem nation-state. So­ called independence movements in various European re­ gions, and especially the existence of violence-prone "re­ gional autonomy" movements such as the Basque and Cor­ This worship of pre-industrial backwardness and region­ sican separatists or the Tyrolean movement, are cited as proof alism led into propaganda for separatism when a delegation that the structures of medieval feudalism are more viable than of Kurds appeared on the scene and read a manifesto against the "superficial structures of modem Europe. " the central government ofTurkey . A former member of the What made the public appearance of the former left-wing B8ader-Meinhof terrorist gang, Brigitte Heinrich, introduced terrorist Brigitte Heinrich (who is number two on the Green the Kurdish insurgents as anti-imperialist fighters and de­ Party slate) at the Karlsruhe convention most interesting was nounced the European Parliament as a "parliament with no the fact that she has been an expert on the Basque and Cor­ more powers than any so-called parliament under a military sican separatist movements since the 1960s, when she was junta," referring to NATO. There was only one value in working in the foreign relations section of the West German running for this parliament, she said: "We must use this SDS. pseudo-parliament which has no legislative or executive The blend of oligarchism, separatism, Nazi sympathies, functions as a tribune for our public relations work!" and left-wing terrorism at the Karlsruhe convention was underlined by the fact that three more terrorists were voted Left and right 'anti-imperialists' onto the slate. Positions three and six are held by Benedict As the ensuing "programmatic debate" made clear, this Haerlin and Michael Kloeckner, who were sentenced to two effort would be aimed against "U. S. imperialism," on behalf and a half years of prison two days before the convention of splitting WesternEurope fromthe U.S. nuclear umbrella, started, for public endorsement of violence in the West BeI­ and creating "nuclear-free zones" as Moscow has proposed. lin-based magazine radikal.Haerlin and Kloeckner are writ­ Mrs. Heinrich opened the stage not only to left-wing out­ ers for the underground magazine, which also serves as one bursts against the American-dominated West; but to their of the mouthpieces for the terrorist Revolutionary Cells in right-wing equivalents. West Germany. Position four on the European electoral slate One delegate darkly declared that "while discussing Eu­ of the Greens is held by Frank Schwalba-Hoth, the Green rope, we mustn't forget about Germany, about . . . our par­ Party member who became infamous when he poured his titioned Germany which has been enslaved by foreign pow­ own blood on the commander of the 5th U.S. Army Corpsin ers, by Stalin, Roosevelt, and Churchill." He called for "the Frankfurt, Gen. Paul Williams, in August 1983, to protest . common fight for the protection of nature as something the the presence of U . S. troops . two Germanies have in common"-a reference to the old The overtly pro-terrorist character of the movement as a Nazi "blood and soil" ideology. Another Mitteleuropa type whole was also underlined when a brochure was circulated went up to the microphone to shout that Strasbourg, the seat at the convention which contained highly detailed informa­ of the European Parliament, was "much too far to the West tion on U.S. military installations, troops, routes for nuclear to be the center of Europe. " and conventional military transports, and airfield and radar Indeed, one of the discussion papers circulated endorsed facilities in the northwest of Germany. Maps in the brochure tactical alliances between left-wing anti-imperialists and detailed all sites spied out by the "movement" with utmost "those who were members of the NSDAP [Nazi Party] in precision. 1945 but changed their mind." While not overtly pro-Soviet, the Greens' platform for That brought to mind the scandal one year ago when one the European elections calls for the abandomhent of Western of "those who were members of the NSDAP in 1945" was Europe's ties to the WesternAllia nce to overcome "a decisive forced to resign from his newly gained seat in the national obstacle against the building of a peaceful pan-European parliament in Bonn: Werner Vogel, a member of the Green order." Party who in 1938 had been working in the same section of As ifto emphasize who would profitmost fromthis fight the Nazi Interior Ministrywhich set up the pogroms and later for "a free Europe," one of the leaders of the Green Party, mass extinction of the Jews in Europe ! When Vogel's past Otto Schily, traveled toMoscow two days afterthe Karlsruhe was discovered, the internationalpress carried headlines such convention. Schily was one of the most prominent defenders as: "Nazi Stormtrooper Wins Seat in West German Parlia­ of Baader-Meinhof terrorists in West German courts in the ment" (see EIR . March 29, 1982). early 1970s.

EIR March 20, 1984 International 29 night and in very bad weather, where, according to WONA, WARSIW PA CT the planes would normally be grounded. The news agency states that one by-product of this big step-up in maneuvers under combat and bad-weather or nighttime "surpriseattack" conditions, has been sharp increases in combat-plane crash­ es. At least six Warsaw Pact aircraft crashed in East Germany Secret maneuvers in December and another five in January. The maneuvers involved more than tactical aircraft units; one of the con­ held in East Germany firmed December crashes involved a Soviet Medium Bomb­ er, flyinginto East Germanyfrom a base in the Soviet Union, by Konstantin George which crashed near Schwedt on the border between East Germany and Poland. The mid-February exercises in East Germany followed Secret military maneuvers were conducted in East Germany announced maneuvers held by Soviet, Czech and Hungarian in mid-February by over 60,000 Soviet and East German troops in northern Czechoslovakia on Feb. 7-12. Ongoing troops. Four divisions, including the Soviet 21st Guards­ the second week of March are maneuvers of Soviet, East Motorized Division, were deployed, according to West-East German, and Polish troops in Pommern, northern Poland, News (WONA), a West Berlin-based press agency. The ma­ called "Friendship 84." In March begin the "Soyuz 84" staff neuvers, not acknowledged for "diplomatic" reasons by the maneuvers in the Balkans, involving the Soviet Union, Bul­ Bonn government, constitute the crassest violation of the garia, Hungary, and Romania. 1975 Helsinki Accords on Cooperation and Security in Eu­ rope (CSCE) by the Soviets since its signing. Under the Soviets warn Denmark Helsinki accords, it is mandatory to announce 30 days in The Soviets are now establishing the pretext to attack and advance the timing, location, purpose, and size of maneuvers occupy the large Danish island of Bomholm in the Baltic off of such scale. These maneuvers also show what the Soviets the coast of Poland. Out of the blue, on Feb. 22 the Soviet really think of the current talks on "Confidence-Building military daily Red Star attacked Denmark for permitting Measures" in Stockholm. NATO to "use the strategically placed island of Bornholm The main purpose of these talks from Bonn's standpoint, for reconnaissance plane stopovers." Red Star "reminded" silly but psychologically revealing, is to "prevent" a Soviet the Danes that Bornholm "was liberated" by Soviet troops surprise attack on the Federal Republic by means of treaties "in May 1945 from the fascist German occupiers." The So­ and notifications governing military maneuvers, operations, viet troops were withdrawn in March 1946, under the con­ and troop movements. Bonn has nightmares over this likeli­ dition that "Denmark would not let 'any foreign troops or hood, and is attempting utterly illusory "solutions" in trying administrators'" take control of the island. Concluding the to legislate the danger out of existence. Bonn's concern was case for invasion, Red Star warnsthat NATO using the island made public in January statements issued to the Bonn Wehr­ for reconnaissance planes would be a "gross violation" of the Report by Defense Ministry State Secretary Lothar Ruehl on 1946 Soviet-Danish understanding. The "Friendship 84" ma­ the danger of Soviet surprise attack. neuvers are occurring along the Ba. ltic Coast, opposite What alarmed Western analysts was that, one month after Bornholm. Ruehl's warning, the character of the secret maneuvers held Behind the intimidating military maneuvers and the wave in East Germany was a dress rehearsal for a lightning surgical of threats to invade, the Soviet military hardware strategic strike into the Federal Republic. According to WONA, "Two buildup goes on relentlessly. According to the London Daily of the divisions, practicing an advance to the West, conduct­ Express, American spy satellites have discovered the con­ ed a paralleland simultaneous crossing of the Elbe," a wide struction of a new Soviet SS-20 missile base of nine launch­ and deep river, at the stretch of the Elbe northof Magdeburg ers, "close to western Europe." West German military sources and the Mittellandkanal (which runs West-East from Han­ confirmed the report and reported the location of the base to nover region to Berlin), and south of Lauenburg, the begin­ be on the Baltic island of Oesel, off the coast of Estonia. ning of the stretch wherethe Elbe forms the West German­ Oesel, like the neighboring large island of Dagoe, is heavily East German border. In the triangle of land bounded by the militarized to begin with, and both islands have long been Elbe, the Mittellandkanal, and the West German-East Ger­ closed to travelers and foreigners. This brings the total of SS- man land border between Oebisfelde and Lauenburg, lies the 20 launchers facing WesternEurope to a confirmed252 , plus Letzlinger Heath, close to the border, and one of the largest another 144 in the Soviet Far East. In one of the understate­ military exercise maneuver areas in East Germany. ments of the week, the Daily Express commented: "The These maneuvers occurred after a big increase in the discovery has dealt a serious blow to Westernhopes of a new number of secret Soviet and East German Air Force maneu­ dialogue with the Soviet Union." vers and increased training flights, including many held at It's better to wake up late than too late.

30 International EIR March 20, 1984 "What does our deterrence really consist in? We have WEST GERMANY always said, 'We have the weapons systems. If you Russians fire missiles against us, then we will have enough left over to fire back at you.' Wouldn't it be better morally to be able to say to the Russians, 'Fire your ·missiles, we'll just destroy· them before they arrive.'" Rogers also said that he believes Chancellor slams the such systems would be effective for defense in WesternEu­ rope, a fact Soviet propaganda organs have been hysterically decoupling effort denying.

British back Kissinger by JohnSigerson In Britain, the Daily Telegraph complained that "the best response to Dr. Kissinger is some hard thinking, not a wall Henry A. Kissinger's plan to withdraw the U.S. nuclear of protest." The Financial Times pleaded that "he means umbrella from Western Europe was on the top of the agenda well; his recipes might not be the right ones, but ...the at the March 5 talks between President Reagan and West Kissinger ideas deserve serious consideration." German Chancellor Helmut Kohl. According to a senior Peregrine Worsthorne, "conservative" columnist in the administration official, Kohl made it clear to the President Sunday Telegraph, mooted a withdrawal of Europe from all that Kissinger's proposals to withdraw up to half the Ameri­ military alliances with the United States. "It makes some can troops stationed in Europe are "counterproductive." sense for the United States to want to conscript us into the "I find it bizarre that anyone would suggest we need a global battle against theU.S.S .R. But would not our interests major overhaul of NATO," the Reagan official said. In view be better served by refusing to comply? . . A separate rela­ of the furor over Kissinger's proposal to "reshape" the NATO tionship with the Soviet Union and a less close one with the military alliance, published in the March 5 issue of Time U.S. are no longer options that only leftistscan be expected magazine, it was necessary to reaffirm the relationship be­ to espouse." Worsthorne concluded that "the common inter­ tween the United States and Europe. "There should never be est might best be served by early divorce while relations are any doubt in Europe about American commitment to Europe, still amicable." nor should there ever be any doubt in the United States about Retorted Karl Feldmeyer, military correspondent for the the importance of an American presence in Europe," Reagan prestigious West Germany's daily Frankfurter Allgemeine and Kohl agreed. Zeitung, on March 6: "In the final analysis, it is the U.S. nuclear umbrella that counts. Only the risk this umbrella Beam fight in Europe creates is credible and unassailable for the Soviet Union. Sweeping changes under way in Western Europe could Only it can prevent Moscow from imposing its will upon undo Kissinger's plan to leave Europe prey to Moscow. West Western Europe-be it by political or military force." German defense expertsof flag-officerrank have reported to Ifthe U. S. nuclear umbrella did not exist, Moscow would EIR that Bonn governmentcircles have made a complete re­ gain "hegemony over Europe which would considerably ex­ evaluation of the importance of the U. S. strategy to develop ceed its domination up to the shores of the Elbe River," beam-weapon defenses, announced last March 23 by Presi­ Feldmeyer continued. Moscow might thereby effect "a change · dent Reagan. in �e geostrategic situation-everything would militate to­ Bonn sources say that the recent visit of Presiaent Rea­ ward a new quality in Moscow's power." gan's science adviser, George Keyworth, was helpful in The Soviets would win a position vis-a-vis the United making the commitment of the Reagan administration to States "which would be completely different from the current beam-weapon defense unmistakably clear (see Report from parity, as counted according to missiles and megatons. " Mos­ Bonn, page 43). "But this was not the only thingthat caused cow's new advantage, he writes, would in fact be a decisive the shift. There has simply been a general change of attitude one: "Only then, the Soviet Union would have won the rivalry in favor of beam weapons," said one retired General Staff it has been facing with America since the collapse of the officer. The only group in Europe publicly advocatingbeam­ wartime alliance. " weapons defense has been the European LaborParty, chaired A commentator in the Swiss daily Neue Zurcher Zeitung by Helga Zepp-LaRouche. declared that Kissinger "ought to know what the European This shift was announced officially, if in somewhat soft­ answer would be to a radical reduction of America's com­ ened form, by the U.S. Supreme Allied Commander-Europe, mitment to the old continent, in view of past experience: Gen. Bernard Rogers, who told a local West German news­ There would be no revival in the desire for joint defense, but paper, theSaarbrucken Zeitung, that his experienceas Army rather a flight into 'relaxation of tension,' which is just a nice Chief of Staff "gave me the conviction that we certainly can way of saying accommodation to the will of the 'other' be successfulin developing systems against ballistic missiles. power."

EIR March 20, 1984 International 31 Interview: Astrophysicist Rolf Engel

We st German missile exp ert: 'Soviets have gained c�ear superiority'

Rolf Engel is the author of the most authoritative work on U.S.A. has past its historic zenith, like so many cultures and missile technology and military exploitation of space avail­ peoples before it. The United States is on the way down, and able, Moskau militarisiert den Weltraum, Verlag Politisches can no longer be shaken awake by historic challenges. It is Archiv, 1979. EIR will soon publish an extensive review of his [Kissinger's] task to move the Russians to concede to the Mr. Engel's book, an extremely rare work. Americans the best possible conditions that they could get at Mr. Engel, now 72 years old, is an astrophysicist who SALT. It simply cannot be denied [Kissinger says] that the has spent his life working on rocket and missile technologies. forces of history are working for the Soviets. . . . The Amer­ Following World War II, he worked at the Office of Aero­ ican people have no one but themselves to blame for this nautics Research in Paris. He was an adviser to the Italian situation, because it no longer has the strength to keep up government for five years , and also became director of the with theRussia ns, who are the 'Sparta' to our 'Athens. ' " Aeronautics Department of Messerschmidt -Boelkow-Blohm in Munich, West Germany. Mr. Engel's views are his own, but also represent the thinking of a large number of West EIR: Mr. Engel, in your judgment of the present balance of Europeans who most deeply realize why the United States forces between the United States and U.S.S.R., what basic and Western Europe can afford no delay in developing a parameters do you think determine the strategic situation? program for beam-weapon defenses in the interest of the Engel: A sober examination of the Euro-strategic and glob­ Atlantic Alliance. al-strategic potential of the two superpowers shows that the Perhaps the interview below and our review of Mr. En­ Soviets have a clear superiority in medium range and inter­ gel's book will contribute to "lifting the lid" on West Euro­ continental ballistic missiles; there is equivalence with re­ pean views of the often tragically short-sighted strategic U.S. spect to global naval forces, and the U.S.A. has superiority decisions of the post-World War II years. "It took a long time of strategic airforces. But U, S. superiority in intercontinental for the U.S.A. to realize that the U.S.S.R. was determined bombers does not unconditionally represent a margin of ad­ to drive for a confrontation," Engel says in the interview, and vantage, in view of Soviet air-defense forces. he is not convinced that the lesson has really been learned. "Europe is the ideal hostage with which one can hope to EIR: How did we get into this situation historically? force the U.S.A. to make concessions. The following de­ Engel: Historically, the basic facts are these: The U.S.A. scription of the Russian space revolution should make clear did in fact win the War [World War II] , but the U.S.A. did and express what the majority of Europeans expect from the not "keep a firmgrip on the helm." The Eisenhower Admin­ U.S.A., which actually wants to protect Europe , before it is istration gullibly believed that more wars were just not in too late," Engel writes in the introduction to his book. One sight for one or two generations. Stalin, on the other hand, note from his book on Adm. Elmo Zumwalt's recollection of gave the order just after the end of the war to develop the a discussion with Henry Kissinger in November 1970 pro­ technology for large missiles, since-as he said-"the enemy vides backgroundto some of Engel's remarksin the interv iew. closest to us is 10,000 kilometers away." It took a long time "Kissinger, Zumwalt remembered, believes that the for the U.S.A. to realize that the U.S.S.R. was determined

32 International EIR March 20, 1984 to drive for a confrontation. This historic failure of the U.S. missiles, the beam-weapons effort. Back in 1958, the Ger­ is still influential in U.S. policy, and I am afraid it can only man professor Eugen Saenger pointed out that such systems becorrected with great difficulty. would mean that we can technologially overcome war. Would you agree to that? EIR: The 1970s were characterized by the SALT and ABM Engel: I welcome and encourage U.S. efforts to limit the treaties, and yielded clear advantages to the Soviet Union. threat represented by ICBMs by developing beam weapons. Did the Soviets ever take these negotiations seriously? Or, if These beam weapons are the only means to build an effective they didn't, can that be proven? ABM system. But they will not overcome war, the way Engel: The U.S.S.R. only signed the SALT and ABM trea­ Eugen Saenger thought 30 years ago, because the Soviet ties to put the brakes on technological progress in the United Union is working on the same systems. The decisive question States in these areas. Only a few weeks after concluding the here is who will be the firstto build such systems. SALT I treaty , the Soviet Union began to get their fourth generation of ICBM missiles ready for deployment with a EIR: What is your evaluation of Soviet efforts to develop comprehensive series of tests. Their argument was that the new systems of defense? SS-16, SS-17, SS-18 and SS-19 merely represented the "al­ Engel: It is true that the Soviets give first priority to offen­ lowed" modernizationof the previous generation of missiles. sive weapons, but defensive weapons are promoted on the scale of a close second priority. This fact is not always ap­ EIR: How could the U. S . A. ever allow itself to be pulled preciated in the West. into such a treaty? What role did people like Henry Kisinger play? EIR: What concrete military threat do you see for Europe? Engel: At the beginning of the SALT and ABM negotia­ Engel: The entirety of the Soviet arms build up since 1966 tions, the U . S. administration was forced by domestic policy is directed primarily against Western Europe . The Soviets considerations to present some "success" in the area of arms believe that their ICBMs are all they need against the U.S. limitation. Domestic policy . considerations-that was the Soviet conventional forces, including their medium-range Vietnam War. Dr. Kissinger was merely the enforcer of this nuclear missiles, are aimed and designed for a blitzkrieg policy, but domestic political pressure was what counted. against WesternEurope .

EIR: The CIA recently presented a report on large-scale EIR: How should Europe, especially the Federal Republic Soviet ABM activities. How do you evaluate this report? of Gennany, respond to this threat? Do you think the current Engel: The CIA reports on Soviet ABM effortsmerely sum­ "appeasement" policy is the appropriate reaction? marize facts and details that have been known to alert observ­ Engel: The detente policy of European, particularly West ers for a number of years. There are , for example, testing Gennan governments, was a clear failure. There is no ex­ grounds built in Sary-Shagan on the Balkash Lake, which ample in the 60 years of existence of the Soviet government cover an area of about 100 by 150 kilometers. Experts esti­ that indicates that a policy of "meet them halfway" has ever mate that the rate of rocket testing here is about three times resulted in the Soviet Union reducing the development and that observed in Plesetsk or Tyuratam. The lion's share of expansion of its power. Only hard detennination and the these tests are ABM and air-defense rockets. appropriate military measures have-temporarily-con­ tained the expansionof Soviet power. Threatsmean nothing. EIR: Comparing civilian and military space efforts of the TheSo viets must know thatan attack against WesternEurope U.S.A. and U.S.S.R., where do you see their respective entails large risks for their own rule. If they know that, then emphases? What is the purpose of the extensive manned they will become more cautious and be willing to negotiate. space missions of the Soviets and their new super-rocket, the G- l? EIR: Without the U.S.A., Europe can hardly defend itself. Engel: The planners in the Soviet Union have been aiming What can and should be expected from the United States? for more than 20 years at building one or more large battle Engel: Without the United States, West Europe can not be stations in orbit. This aim is clearly indicated by the series of defended at all. But that does not mean that the U.S. admin­ Salyut-Soyuz couplings as well as the fact that they are still istration alone detennines policy with respect to the other working on the G- l workhorse rocket, despite all the failures great power. It has been known for years that the European they have had with it. The U.S.A. is only now beginning to situation is often evaluated superficially and wrongly by the realize that battle stations in orbit will be decisive for power succeeding State Departments and U.S. Senate. The Reagan positions in near-earth orbit. administration would be well advised to analyze the compli­ cated political, economic, and social situation of its Western EIR: The United States has considerably increased its ef­ allies more closely, and to take account of this in making forts to develop new systems for defense against ballistic foreign-policy decisions.

EIR March 20, 1984 International 33 The outrageous State Department and the Gulf war

by Criton Zoakos

On the fine morning of March 4 in Washington, a State scripts against Iraqi machine-gun nests and artillery positions Department official who "preferred to remain anonymous" until the Iraqis run out of ammunition. The State Department issued a scathing attack against Iraq for using "internationally viewed this as "consistent with accepted norms of behavior." outlawed lethal chemical weapons" against Iranian troops in Khomeini announced the following: "We need the war the three-and-a-half-year war against Khomeini's Islamic because it purifiesour society. Even when our war with Iraq Republic . is over, we will launch another war somewhere else .... "The United States strongly condemns the prohibited use The generation of men and women more than 30 years of age of chemical weapons wherever it occurs . There can be no is almost a corrupt generation. The country should be cleaned justification for their use by any country ," the official who of such generation. They should be sent to the front .... "preferred to remain anonymous" said. Still preferring to The second generation, which includes youth between 19 remain anonymous, he pontificated that this is "inconsistent and 30 who had been provided under the Shah with a Western with the accepted norms of behavior among nations." style of living and Western corruption, should be purified by Just hold on there a minute , Mister! Khomeini's Islamic being sent to the front. . . ." Republic is documented to have reduced its population by The State Department said nothing. over 2 million since it took power. The nameless and faceless The prisons in Khomeini' s Islamic Republic widely prac­ stuffed striped pants at the State Department preferred to tice the removal of vital organs from prisoners which the remain speechless on that subject. Over 50,000 Iranians were jailers then sell for medical transplants . Prisoners are system­ executed without trial by Khomeini's Islamic Republic. The atically bled to death via forced blood "donations." Some of State Department said nothing. Hundreds of thousands were the blood is sold in Europe. Many prisoners are skinned and thrown in the private jails of various mullah warlords to be their skin sold. tortured with sophisticated technologies. The State Depart­ The God-damned State J)epartment said nothing. ment said nothing . Scores of thousands of childeren between 12 and 18 years of age were taken from their homes and The murderous touch of Henry A. Kissinger unarmed and untrained were sent to the war front to clear The State Departmen� and its hordes of striped pants have minefields with their bare bodies. The State Department said had their reasons to remain anonymous over Khomeini 's nothing . Hundreds of Khomeini's political opponents were Hitlerian atrocities and to cynically condemn Iraq 's alleged tracked down like animals and killed by Khomeini' s death use of "chemical weapons." These reasons go back to Henry squads in Europe and the United States itself. The State A. Kissinger's tenure as Secretary of State and Kissinger's Department said nothing. Khomeini's mullahs flooded the Policy Planning Council under Winston Lord , the team which cities of the Western world with drugs and brought back originally authored the atrocity which is Khomeini's Iran . billions . The State Department said nothing. It did not con­ When Cyrus Vance replaced Kissinger as the chiefof the sider those deeds "inconsistent with the acc�pted norms of State Department's anonymous striped pants , the Policy behavior among nations." Planning Council's scheme was put into effect: th� Shah of Khomeini has made it clear that he will continue to em­ Iran was replaced by the infernal Khomeini regime. The ploy "human wave" tactics in his war against Iraq by sending appropriate arrangements between Moscow and Foggy Bot­ incessant swarms of unarmed, untrained, and drugged con- tom were made to ensure that the emerging carnage would

34 International EIR March 20, 1984 not interfere unduly with superpower relations. Those ar­ nist political networks in the Middle East are the on-the­ rangements were based on a common agreement between the ground enforcer. The documentation is voluminous and has State Department and Moscow to launch an era of medieval �n published by EIR . This review has even taken the case horror throughout the Middle East and beyond, covering the to federal courts, which have refused to litigate, invoking Muslim world. Khomeini's Islamic Republic was to be the "national security" grounds. We need not cover the evidence principal instrument. British intelligence, through the H. A. again in this space. R. "Kim" Philby connection, facilitated the understanding between Moscow and the State Department. Israeli intelli­ State Department's target is the U.S. gence assisted , with Henry Kissinger personally, in the The broader objective of the State Department's policy "blinding" of the Shah . toward the Gulf and the Middle East in general is to system­ General Alexander Haig, then Supreme Commander of atically brutalize the region's populations into a well-de­ NATO , sent his aide Gen . Robert Huyser to Teheran in the signed and hardened state �f savagery for many years to last days of the Shah's drama to decapitate the country's come. Khomeini's form of insanity was the first instrument military command and "break" the Shah. Within two weeks selected for such brutalization. The subsequent GulfWar was of Huyser's arrival in Teheran , Khomeini was in power. On the second. Both are preplanned to merge with the effects of the day of Khomeini' s elevation to pbwer, the London Econ­ the carving up of Lebanon, the spreading of civil war in Syria omist jubilantly greeted Khomeini's emergence as the "Re­ at some pOInt, and the scheduled internal disintegration of turn of Evil" in the world political arena. The Economist of that day predicted that human life is about to become cheap, cheaper than usual, in today's world of diplomacy. That Moscow 's agreement with prediction was based on intimate knowledge of what the State Department's Policy Planning Council has cooked up togeth­ Kissinger's sponsors to handle Iran er with Moscow. and the war in the Gulfthe way

How Haig continued the Carter policy they -have been handled derives Then Alexander Haig replaced Cyrus Vance (and the Jro m Moscow 's commitment to brief-tenured Edmund Muskie) as the chief of the State De­ destroy the science-and­ partment's anonymous striped pants. Fresh from his success in installing Khomeini to power via Hyuser, Haig next en­ technology outlook oj the Western gaged in a series of maneuvers to ignite a war between Iran world. Has not the U.S. State and Iraq . EIR reported at the time the details of this sordid Department scrupulously pursued affair. However, Haig succeeded. When the Gulf War began , the State Department stood back with smug satisfaction and that goal? announced that the United States would preserve a "strict . neutrality" between Iran and Iraq . Moscow, on cue, also made it clear that they will preserve "strict neutrality ." Jordan, Saudi Arabia, and Egypt. The overall scheme was The "strict neutrality" over the last three and a half years once known as the "Bernard Lewis Plan" (see EIR , March has taken the form of shipping weapons to both belligerents 13). in precisely measured quantities, designed to perpetuate the Citizens and political analysts who are trying to under­ human carnage indefinitely. American weapons and spare stand the State Department' s Middle East policies by seeking parts have been pouring into Iran during both the Carter and to discern presumed and imputed "geopolitical" objectives Reagan administrations-Soviet weapons too. When Iraq such as preservation of U.S. influence in various countries, appeared weakened, then American and Soviet weapons or protection of U . S. military and economic interests in the started pouring into Iraq-in limited quantities and under area, will abandon such efforts more bewildered and ignorant strict preconditions for use. As the months went by, more than they were to begin with: The State Department is pur­ armsexporters becameinvolved . Britain, the Federal Repub­ suing a policyoJ protracted cultural devastation. lic of Germany, France, Portugal, even Papandreou's Greece It is doing so for what it considers strategic reasons of the with its nascent munitions industry, and so forth. . highest order: in the name of ultimately scrapping the domi­ And always, the weapons are measured out in quantities nance of technological culture in world affairs . designed to continue the carnage. There is a Moscow-Wash­ A retrospective telescoping of our foreign policy's salient ington consensus do this. The British Establishment is the features from the beginning of the Kissinger era to date (1969- guardian and manager of the consensus. Swiss financial in­ 83) illuminates what to many would appear an incomprehen­ stitutions are the financial overseer. The old Nazi-Commu- sible State Departmentpolicy in the Middle East: Kissinger's

EIR March 20, 1984 International 35 and his sponsors' military-strategic orientation toward nucle­ ar weapons was originally spelled out by Lord Bertrand Rus­ sell's Pugwash Conferences in the 1950s. The Russell-Kis­ singer-Pugwash outlook is based on the assumption that sCi­ ence and technology must be suppressed as dominant fe atures of modem culture. Such suppression of science-and-technol­ ogy-based culture will become the only reliable fo undation upon which a meaningful and lasting arms control regime can be constructed in world affairs. The Kissinger-dominat­ The Reagan Plan ed era of SALT and detente was launched simultaneously with the lavishly financed environmentalist-irrationalist youth by AllenDouglas movement in Western Europe and the United States . Moscow's agreement with the State Department to han­ dle Iran and the Gulf Warin the way they have been handled After a lapse of almost a year, the chairman of the Palestine so far has derived from the fact that Moscow's fundamental Liberation Organization, Yasser Arafat, and Jordan's King policy orientation since the 1968-69 beginning of the Kissin­ Hussein resumed on Feb . 26 discussions aimed at establish­ ger era has been to encourage and cultivate, as a priority ing a Palestinian state on the West Bank of the Jordan River. commitment of Russia's raison d' etat, everything which shall Though the talks are very important, the crucial protagonist undermine and destroy the primacy of the science-and-tech­ in this situation is neither Hussein nor Arafat , but Washing­ nology outlook in the cultural orientation of the Western world. ton, D.C. Without vigorous U.S. efforts , including, as Thus, the Iran-Iraq war is, primarily, the crucible in which stressed by Egyptian President Hosni Mubarak, direct U.S. the 20th century's most decisive cultural war is being fought. dealings with the PLO, the talks will almost surely fail. The fight is only secondarily one between secular-republican The Mubarak-Hussein-Reagan meetings in Washington Iraq and irrationalist and sacerdotal Iran. The more this war came just as the United States announced that it was packing continues, the more the local populations are brutalized into its bags and leaving Lebanon, amid cheering headlines in the hysteria and irrationality. Unless Khomeini' s Islamic Repub­ British press, "The Soviets and Syria Have Won!" The pro­ lic is crushed, the Russell-Kissinger-Pugwash program of cess of rewriting the map of the Middle East has begun. barbarization wins-even if Khomeini does not win. Wheth­ Maintenance of even a shaky status quo is now impossible in er or not the Soviet armies will eventually roll all over Iran, the wake of the Soviet-Syrian victory in Lebanon and with a take over the Gulf, and establish dominion over the rest of Soviet-abetted intensification of Islamic fundamentalism the region's Arab populations is in fact a secondary threatening all regimes in the area. The only question, there­ consideration. fore , is whether the United States rewrites the map around the core of a just solution for the Palestinians, or whether the How Moscow sees it Soviets destroy the fragile nation-states of the area, ultimate­ Routine monitoring of developments leaves no doubt that ly including Israel, as part of their plan to drive the United the Soviets have continuously built capabilities which would States out entirely. enable them to militarily dominate the area "tomorrow morn­ ing" if they so decide. However, there is no evidence that the Sabotaging the Reagan Phm Soviets will proceed along this simple military path. Their With this in mind, Mubarak conveyed to Reagan the policy is primarily designed to assist the Russell-Kissinger urgency to move ahead on the latter's September 1982 peace Pugwash program in causing a fundamental cultural shift in plan, and in so doing to push aside Henry Kissinger's 1975 the Western world toward a permanent abandonment of our pledge that the United States would never recognize the PLO cultural "bias" in favor of science and technology. They are unless the PLO first recognized Israel. The Mubarak-Hus­ thus decidedly more interested in promoting the spread of sein-Reagan meetings were barely over when Kissinger's New Dark Ages irrationalism in the Middle East and by henchmen in the State Department leaked to the New York extension in Europe and the United States, than they are in Times the existence of intensive Reagan administration-PLO consolidating their military advantage. contacts going back to Alexander Haig's tenure as secretary After the State Department's program of cultural decor­ of state. Exploding in a nationwide barrage of publicity led tication has succeeded completely, there will be nothing to by the Times's front page article of Sunday, Feb . 19, the prevent the Russians from taking a leisurely stroll down the leaks had the intended effect oHorcing the hand of the Rea­ sandy shores of the Persian Gulf. This is what the State gan administration in precisely the opposite direction Mu­ Department's "strict neutrality" in the Iran-Iraq war would barakhad specified. The next day Kissinger co-thinker, Sec­ produce. retary of State George Shultz, reiterated the originalKissin­ No wonder they "prefer to remain anonymous." ger pledge, backed up by similarremarks from thePresident

36 International EIR March 20, 1984 and the PLO

himself. Meanwhile two bombs were detonated in Jerusalem on February 28 by "Palestinian splinter groups" to cut the ground from under any Israeli circles advocating ending the decades-old hatred between Arab and Jew. Almost as suspect as the leaks of the administration-PLO talks was the channel used to conduct them in the firstpla ce, under another old Kissinger crony, then-Secretary of State Al Haig. The talks, apparently initiated by Arafat based on a proposed seven-point agreement on the right of all the states in the area to exist and some form of explicit mention of Israel , were handed over to one John Edward Mroz of the flagship club of the liberal Eastern Establishment, the New York Council on Foreign Relations. Mroz , at the time with · the U.N.-affiliated International Peace Academy, is now the Yasser Araja t . president of a new one-world-governmentthink tank on New York's East side , the East-West Institute for Security Stud­ ies, an outfiton whose board Romanian and Hungarian dip­ lomats rub shoulders with appointed think-tankers from the and experience in greening the desert, which is the basis for stable of academics maintained by the CFR. Under State any successful Arab-Israeli peace settlement. Department guidance, afterdragging on interminably in over 400 hours of Arafat-Mroz meetings, the talks were finally The current administration approach broken off when Haig gave then Israeli Defense Minister Under the direction of this State Department crowd, the Ariel Sharon the immediate go-ahead to invade Lebanon in current administration attitude is, in effect, "Let Arafat bite June of 1982. the bullet"-i .e., recogni�e Israel-before the United States makes any supportive move . This is a prescription for failure. Mroz's deal with the Soviets Because the Soviet and Nazi International assets among Perhaps a better indicator of Mroz & company's real Arafat's enemies in the PLO have been vastly strengthened intentions is indicated by the fact that his East-West Security since the Soviet-Nazi-sponsored "rebellion" against Arafat Studies group, during the time he was negotiating with Arafat in the Bekaa Valley last summer, Arafat is in a much tougher and the PLO, had a little side deal going. In February 1983, position to personally give King Hussein the green light to his East-West Institute sponsored a conference at Oxford represent the PLO in negotiations. Much more likely is that University on opening official Soviet-Israeli relations in re­ Arafat would have to go back to the Palestine National Con­ turn for the Soviets letting several hundred thousand Russian gress (the PLO's parliament) to get authorization to proceed. Jews emigrate to Israel . As Mroz 's State Department allies King Hussein may need similar backup from the indefinitely under Shultz propose a crushing austerity program for Israel , postponed Arab League meeting, and the process will be forcing skilled Israeli labor to emigrate , Mroz is busy lining dragged out over a long period, certainly until after the heat up replacements and opening official relations between the of the U. S. elections. Through all of this delicate maneuver­ Soviets and the alleged chief U.S. strategic ally in the area, ing, the Soviet assets of Syria, Libya, and the PLO radicals Israel . In fact, as EIR founder Lyndon LaRouche has repeat­ would not be merely debating the issues but launching terror edly emphasized since 1975, it is large-scale economic de­ attacks in Israel and assassinations against both PLO and velopment in the area, around the cornerstone of Israeli skills Arab League moderates.

EIR March 20, 1984 International 37 The forces committed to destroying the Reagan Plan are years its willingness to lay down the gun if that would con­ precisely the forces deploying and cheering the assassination tribute to achieving their overall objective. of crucial PLO-Israel mediator and Arafat friend Issam Sar­ The story of the radical opposition is a different tale tawi last April 11 in Portugal: Kissinger, Sharon, and the altogether. None of the leaders of the radicals-most prom­ Soviet-Syrian run puppets in the PLO such as George Ha­ inently represented by Ahmed Jebril of the Popular Front for bash, Ahmed Jebril, and Nayef Hawatmeh. This assassina­ the Liberation of Palestine-General Command (PFLP-GC), tion, claimed by Abu Nidal, marked a turning point in the Nayef Hawatmeh of the Popular Democratic Front for the breakup of the spring 1983 talks around the Reagan Plan. Liberation of Palestine (PDFLP), or George Habash of the Importantly, Sartawi had earlier charged publicly that Abu Popular Front for the Liberation of Palestine (PFLP)-began Nidal was an asset of the Mossad, given the continual benefits their career with a commitment to a Palestinian homeland, the Sharon faction in Israel derived from radical terror acts but ended up in the movement after being laundered through on the one hand and assassination of PLO moderates on the a series of radical entities launched out of the Arab National other. A case in point was the early-June assassination in movement at the American University of Beirut in the early London of Israel's ambassador to London, Shlomo Argov, 1950s. Furthermore, the careers of these three have been by Abu Nidal's nephew, providing a needed excuse for the characterized throughout by their extremely close ties to Syr­ Sharon-led invasion of Lebanon. Kissinger himself had ear­ ia, itself organized to a large extent in the post-war period by lier threatened Sartawi. In one instance, he told Sartawi to a core of Nazis deployed into the Syrian security, army, and leave New York City within hours or a certain Arab nation intelligence apparatus after World War II. The case of Jebril would have all its food cut off. is only the most obvious-he left the Nazi-trained Syrian Israeli Prime Minister Yitzhak Shamir endorsed Arafat's army one day to found a new Palestinian radical group from rivals in the PLO shortly after the June 1982 invasion of scratch. In the 1960s Habash was kicked out of Jordan on Lebanon: "I must say that it is good for Israel that there are charges of working for Syrian intelligence and despite later domestic quarrels, breakups , and divisions within the orga­ squabbles with various circles in Syria, still managed to "es­ nization of the PLO . I am not afraid of the entire organization cape" the Gestapo-designed Syrian prison system in 1968. becoming radicalized. The differences within the PLO , to Hawatmeh's organization has been funded by Syria from its the extent that they are connected with political problems, inception, his claim to fame being a "more radical than thou" are merely tactical . The differences are not fundamental . relationship to his Marxist mentor Habash. Arafat and his rivals have a common goal. Tactically it may Though obviously Soviet puppets now and Syrian-affili­ be that Arafat's tactics are sometimes more dangerous for ated through out their entire histories, there is a deeper Syri­ us." an-PLO radical connection: the Greek OrthodoxChur ch. Not Minister without Portfolio Ariel Sharon was a bit more only are Habash, Hawatmeh, and Jebril all Greek Orthodox, blunt as Arafat was fighting for his life against the Soviet­ but the Greater Syria project on behalf of which they are backed rebels in the fall of 1983 in Tripoli, Lebanon: "Arafat currently deployed was itself first propagated by Greek Or­ will never leave Tripoli alive." The circle was closed when, thodox agent Antun Saadeh in his founding of the Nazi­ immediately after the U.S. announcement of a withdrawal oriented Syrian Social Nationalist Party (SSNP). Repeatedly from Lebanon, Shamir stood up in the Israeli Knesset to throughout the years since Emperor Constantine moved the announce that "Israel is prepared to examine the possibility Roman Empire 's capital to Constantinople in the fourth cen­ of a dialogue with the Soviet Union about relations between tury, the cultural brain trust of Orthodox priests have de­ the two countries and about the Middle East." In the absence signed and deployed new social movements as the exigencies of vigorous motion by the Reagan administration, it is pre­ of the Empire and its oligarchic families demanded. The cisely this devil's alliance which determines events in the Greater Syria cult and the Palestinian radical movements are area. two cases in point. If the Arafat nation-building tendency of the PLO is destroyed and the area set for a further wave of Arafat's 'Palestinian' enemies radicalization, there is little to stop Jordan disappearing into It is crucial to understand what Yasser Arafat and, on the Greater Syria, followed by Iraq. The Greater Syria cult then other hand, what the Shamir-endorsed forces in the PLO becomes the ruling satrap in the region for the Russian im­ represent. The core of the PLO is the Fatah organization, led perium, itself guided from within by the cultural impulses of by Arafat and a small core of associates who, since their the Russian Orthodox Church, the same Church which in the beginnings in Cairo and the Gaza strip in the mid- 1950s, modem era has been the "big brother" for the Greek and other have committed their entire adult lives to a single goal: the Orthodox churches of the area. It is not therefore surprising establishment of a Palestinian state for the three-and-a-quart­ that the Soviets' Nazi allies such as Ahmed Huber and Fran­ er million Palestinians scattered over the Middle East and <;ois Genoud rail against the Arafat wing of the PLO as "too beyond. Originally committed to obtaining this by force of Western, too Judeo-Christian," and funnel weapons and funds arms, Arafat's group has repeatedly demonstrated in recent to the Orthodox radicals.

38 International EIR March 20, 1984 Part V: New Era in U. S.-China Relations

The strategic implications of the Sino-Soviet talks

byRichard Cohen

In October 1982 the Soviet Union and the People's Republic program of military encirclement of China, represented of China (P.R.C.) initiated a series of bilateral discussions something other than what many in Westerncapitals fear-a which are unique in the post-war history of the two countries. new Sino-Soviet alliance. In no way do current Sino-Soviet These talks are of primary strategic importance. They are negotiations resemble the kind of military and political alli­ being undertaken by both Moscow and Peking because each ance between Moscow and Peking that peaked in the early side sees them as holding potential advantages for the highest phases of the Korean War, or even the shallow political priorities of its national agenda. common front of Soviet imperial ambitions and Maoist Chinese imperial objectives that characterized the period from Soviet encirclement of China 1954 to 1957. On one level , the talks are a symptom of the collapse of The talks certainlY,confirm that the days of Sino-Ameri­ the "China card" policy which had dominated Sino-U.S. can diplomatic and political collaboration , keynoted by for­ relations during the 1970s, when it was an important factor mer National Security Adviser Zbigniew Brzezinski's visit in Moscow's geopolitical considerations. Given the clear to Peking in May 1978 and �limaxing with two staggering failure of the Chinese invasion of Vietnam in 1979 and the events-the Vietnamese invasion of Kampuchea and the resulting severe economic dislocation in the P.R.C., along Chinese invasion of Vietnam-had ended. with the proven obsolescence of their 1950s-vintage conven­ The current talks also cancel any reversion to the earlier tional military capability, the China card policy was doomed. 1969-77 period of the Kissinger-directed China card, then During the critical period of early 1978 and late 1979 the principally aimed at pressuring Moscow into the detente Chinese leadership would witness another clear demonstra­ process. tion of the impotence of American force, shown continuously Finally, the current talks bear no resemblance to the pe­ in the wake of the 1977-80 Soviet military break-out in the riod from 1958-69 , dominated by Mao's manic drive for a . Indian Ocean and PacificBa sin theatre . The break-out, which total break with Moscow and his own Communist Party , climaxed with the Soviet invasion of Afghanistan at the end which led to the Cultural Revolution. of 1979, had consolidated direct Soviet and Soviet -sponsored conventional and tactical nuclear superiority on every Chinese Moscow's objectives border. By early 1980, with the Soviet build-up at Cam Ranh For Moscow, the principal objectives of the talks were Bay, the encirclement had stretched to the militarily impor­ inspired by two early- 1980 events. First was Ronald Rea­ tant South China Sea. gan 's assumption of the presidency of the United States . That That encirclement of the P.R.C. had ranked high among entailed a threat to the very foundation of Moscow's strategic Soviet military priorities ever since the Maoist rejection of a policy. pro fo rma Soviet truce offer fo llowing the late- 1 964 palace Reagan's stated objective of reversing the decline in U. S. coup against the badly overextended Nikita Khrushchev which strategic offensive capability-a decline first legislated in installed in power a combination of conservative Communist Kissinger's 1972 SALT I arms coptrol agreement-and the Party ideologues led by Central Committee Secretary Mik­ President's later commitment to the most advanced strategic hail Suslov, the Red Army , and more pragmatic elements of defense, reversing Kissinger's "giveaway" 1972 antiballis­ Khrushchev's entourage led by Leonid Brezhnev. tic-missile treaty, caused Moscow to escalate and concentrate its strategic pressure on the western front, Europe and the Not a new Sino-Soviet alliance United States, and on the southern front, particularly the The October 1982 talks , occurring in the wake of the Persian Gulf, because of its leverage against Western Europe ! collapse of the China card and a successful 15-year Soviet and Japan.

EIR March 20, 1984 International 39 Moscow has also sought to weaken and push back U.S. Moscow warns of Chinese modernization influence in the Far East. First on Moscow's agenda in the In addition to this short-term objective , Moscow also has region has been an attempt to subvert Reagan's intention to a long-term policy toward China. Since no later than the re-emphasize the strategic priority of the U.S.-Japan earliest public signals emanating from the Soviet journal relationship. Kommunist in 1975 , all leading Soviet factions have paid Secondly, Moscow supported the North Korean October homage to a consensus of Soviet Sinologists who emphati­ 1983 Rangoon terror bombing which eliminated a sizable cally warned that then-dominant Maoism would be quickly section of President Chun Doo Hwan's South Korean cabi­ overridden by revived Chinese Communist Party and govern­ net. The Chun trip through Asia, which was to have begun ment institutions. in Rangoon, and Reagan's later November trip to Southeast These forecasts identifiedthe new Chinese ruling elite as . Asia, both cancelled by Soviet and Soviet-supported efforts, a "self-stabilizing institutional oligarchy," and cautioned that were aimed at facilitating the re-emergence of the United anticipated reforms by post-Mao leaders would lead to a States as a force in the Asian theater. resurgence of the Chinese economy. A tightly controlled And in November 1982, fo llowing the death of Leonid modem industrial sector, optimized around the creation of Brezhnev, former KGB chief Yuri Andropov rose to the advanced military capabilities, would sit atop a low-yield, position of chairman of the Soviet Communist Party. Andro­ labor-intensive agricultural sector. The Soviet attack on those pov then introduced into the center of China policy the new in China seeking economic modernization paralleled at that Politburo member and longtime KGB operative Gaidar time the charges of the Maoist Gang of Four butchers, both Aliyev.

Moscow plays mediator The Andropov-Aliyev China program escalated imme­ From a position oj stre ngth, diately following the death of Mikhail Suslov in January Moscow hemmed in China 1982. While continuing to increase Soviet military pressure on China, the Andropov-Aliyev group sought to step up the militarily in the 1970s, but the pace of Sino-Soviet bilateral talks. The new China approach Peking advocates oj an apparently gained the support of the Soviet military high industrially-based armedjo rces command. Through the talks, Moscow would seek to pro­ mote itself as a "mediator" in disputes between Peking and buildup gained greater leverage. Moscow allies Vietnam, Mongolia, and the Babrak Kamal The Sino-Soviet talks do not regime of Afghanistan. jo rebode any new strategic The Soviet mediator role undoubtedly played a part in creating the favorable climate for Sino-Indian border talks alliance. which took off in late 1983. There are strong suggestions from U.S. intelligence officials that when confrontation threatenedon the Korean penninsula after the October terror bombing-an anathema to Peking, which fears any instabil­ warning of the rise of a new Confucianism embedded in an ity there-Moscow offered to help rein in North Korea. In emerging Chinese "military bureaucratic dictatorship." By addition to offering the U.S.S.R. as an impartial mediator early 1976 the Soviet press would publicly compare this new (the typical posture of a hegemonic power) , the Andropov­ leadership with the Nazis and Adolf Hitler. Aliyev plan sought to significantly increase Soviet trade with Thus by 1975, Moscow had already adopted a basic long­ China as a means to increase its intelligence opportunities in term China policy which was now predicated on the necessity the P.R.C. while developing levers of influenceon the inter­ of subverting the internal modernization process within the nal Chinese situation; People's Republic. Soviet Sinologists had projected that by These two facts-the Reagan election and the Andropov­ perhaps the end of the century , China might reach what had Aliyev succession-sped up Moscow's short-term program been accomplished in the Soviet Union since 1964 , with the for creating marginal flexibility for Soviet and Soviet-allied proviso that dangerously, the P.R.C. unlike Moscow, would conventional and nuclear force deployments. With the risks have above-board access to at least some advanced technol­ lowered in the Sino-Soviet theater, Moscow could enjoy ogy from the United States . hidden theatre nuclear and conventional reserves for appli­ By 1979, the P.R.C. leadership had agreed that talks with cation in either the western or southern fronts, while at the Moscow, which Deng Xiao-ping would later promise to be­ same time Chinese neutralization appears to lower the risks come a "marathon," were crucial in order to "buy time ." for Vietnamese-spearheaded operations against Thailand and Following the retributive Chinese invasion of Vietnam­ Soviet-spearheaded operations against Pakistan. pushed through the elite Chinese councils in November and

40 International EIR March 20, 1984 December of 1978 in response to what was assessed at the Factional battles in Peking time to be the inevitability of a Soviet-backed Vietnamese One month after the abrogation, the Deng forces were invasion of Kampuchea (see Part IV, EIR , March 6)-Peking mounting a major counterattack on Hua's Maoist police fac­ learned two hard lessons. tion. By June 1979, at the National People's Congress, Hua­ operating under pressure to make an historic ideological After Vietnam invasion failure concession to the Deng-Ied anti-Maoist factions in the par­ The invasion was backed by an alliance of leading figures ty-announced that there were no longer any antagonistic in the state party bureaucracy associated with Li Hsien-nien, classes in China. The opposite contention had been standard all of whom, like Li, had survived the Cultural Revolution Maoist doctrine , the principle upon which the Maoists could under the protection of Premier Chou En-lai, along with a justify attacking their less radical political opponents as "class number of military leaders located in the Central Command, enemies ." This insanity reached• its height in the Cultural typifiedby Yeh Chien-ying. The Li-Yeh group joined forces Revolution . with followers of Premier Hua Kuo-feng and his faction, Then in September the Maoist police apparatus was pub­ associated with the Maoist police networks . licly attacked as adherents of a "whatever" faction-what­ The consideration of the urgent invasion plan was largely ever Mao says must be true . a response to the unparalleled series of Soviet-sponsored Therefore , the initial surge of the Deng forces' attacks on military moves in the Indian Ocean-Pacific Basin region ini­ their enemies had revealed their true target: the legacy of tiated in late 1977 with the capture of the Hom of Africa as Mao Tse-tung. By the end of September, Yeh, speaking for the booty of an Ethiopian victory in the Ogaden War. Efforts the Central Military Command as well as Li Hsien-nien's led by Deng to assemble an intemational common front aimed forces, was forced to publicly admit that the Chinese Com­ at deterring Moscow failed miserably in 1978. munist Party had made serious errors . For Peking, the most profound result of the Soviet break­ With Hua and the Yeh-Li forces under attack, the Soviet­ out was the virtually complete military encirclement of the China border talks began, in October 1979. P.R.C. and a drastic negative shift in Peking's military po­ Based on the lessons learned in the crippling Chinese sition vis-a-vis Moscow, when compared to the early 1965 invasion of Vietnam, Deng and his allies were on the verge Moscow efforts to militarize the Sino-Soviet conflict. of reviving a long-dormant foreign-policy package circulated Deng and his forces, however, rejected the invasion plan, in 1962 by Mao's staunchest opposition-then-President Liu arguing that the danger of direct invasion of the P. R. C. would Shao-chi, his close political ally Peking mayor Peng Chen, come f�om "the north ." Beyond this tactical argument with and Deng himself, then Communist Party General Secretary . the plan, Deng raised two other points which later surfaced Nineteen sixty-two also marked the period of Mao's greatest afterthe lackluster border invasion. weakness in the aftermath of the abysmal failure of the 1958- First, the invasion caused a grave diversion of resources 60 economic Great Leap Forward. away from the fledgling civilian modernization efforts; sec­ ond, Chinese conventional equipment was shown to be whol­ Reviving the 1962 foreign policy bid ly incapable of sustaining even a limited border war. By late The foreign-policy package was adapted to the highest 1979 the Soviets climaxed their break-out and encirclement priority on the agenda of Mao's opposition-the moderni­ efforts with the invasion of Afghanistan. zation of China's economy. Indeed, it was in 1962 that the The intense tremors felt in Peking after the 1968 Soviet economic blueprint of the post-Mao leadershiJr-the so-called invasion of Czechoslovakia and the subsequent "Brezhnev Four Modernizations-was firstvoiced by Premier Chao En­ Doctrine" of "limited sovereignty" for socialist states were lai. now intensified by the Soviet invasion of an ostensibly non­ The program secretly urged what amounted to a total aligned bordering nation . break with Maoism-an opening to the West in order to gain In October 1979, before the Afghanistan invasion, Mos­ access to Western high technology. In addition, the plan cow had opened long-dormant bilateral talks with an encir­ urged "easing of tensions" with Moscow, leading to a nor­ cled Peking . The talks focused on Sino-Soviet frontier prob­ malization of relationships. This, it was believed, would give lems . Peking chose this format for a change in Sino-Soviet China breathing space to modernizein a non-hostile environ­ relations , while in early April 1979 deciding to abrogate the ment. And thirdly, while maintaining a strong diplomatic Sino-Soviet friendship treaty . position within the Third World, the plan urged a severe The abrogation and the preliminary jockeying leading to cutback in China's Third World aid, particularly aidto guer­ the October border talks occurred just after uncontested large­ rilla movements. scale Soviet naval maneuvers in the South China Sea during The 1979 invasion of Vietnam bitterly proved the neces­ the Sino-Vietnam war, and unprecedented Soviet military sity of maintaining peaceful borders if China is to develop maneuvers on China's northern border immediately follow­ and also proved the necessity for conventional military mod­ ing that war. ernization. Both the Deng group and the Li-Yeh group

EIR March 20 1984 , International 41 emerged quickly after the 1976 ouster of the Gang of Four as proponents of conventional military modernization, while EIR Sp ecialReport the Hua forces still lingeringly upheld the late chairman's commitment to the concept of "people 's war. " In 1978, Peng Te-huai, the P.R. C. defense minister who in 1959 had openly challenged Mao on the basis of the gross How Moscow Plays the failure of the Great Leap and Mao's neglect of conventional Muslim Card in the military modernization (for which he was surreptitiously ' ousted) was posthumously rehabilitated. Middle East With the drastic weakening of Hua forces in 1980, the central debate in the Chinese leadership has centered on the In thepast ear, have ou ... question of conventional military modernization, and the y y arguments on both sides have decisive import for China's Suspected that the news media are not presenting foreign policy. an accurate picture of Soviet gains and capabilities in the Middle East? Quick fix or industrial build-up? Wondered how far the Khomeini brand of funda­ Cheered by the more radical Hua supporters and leftists, mentalism will spread? elements of the central military command typified by Yeh Asked yourself why the United States seems to be have argued for a race-against-time policy in conventional making one blunder after another in the Middle East? modernization. If so, you need BIR 's new Special Report, "How They have argued for increased selective weapons pur­ Moscow Plays the Muslim Card in the Middle East." chases from the West for the purpose of quickly adding to the The report documents how Zbigniew Brzezinski's deterrent credibility on China's borders . The cheering radi­ vision of Islamic fundamentalism spreading to break cals would also like to direct this new hardware as a threat up the Soviet empire is upside down. Instead, using against Taiwan and Hong Kong. those Islamic radicals, the Soviets are poised for The elements of the Central Command supporting this advances on all fr onts in the Middle East, from quick-fix approach have received support from economic diplomatic ties to conservative Gulf States, to new planning ministries close to Li. Li's forces-who have based outbreaks of terrorism, to creating client states such as "Baluchistan" (now part of Pakistan) on the Ara­ the economic planning profile on a 1950s Soviet-style com­ bian Sea. The "arc of crisis" has turned into a Soviet plete emphasis on heavy industry-found a natural ally in "arc of opportunity." supporting an increased conventional military build-up; Li's heavy industry base overlaps military hardware production. This ground-breaking report covers: But the Deng forces have successfully argued that a quick­ • History and Mideast policy of the Pugwash fix race against time to deter Moscow will fail, and instead, Conferences, whose organization by Bertrand Russell in 1957 involved high-level Soviet par­ China must now buy time. They argue vehemently that Chin­ ticipation fr om the beginning. Pugwash Confer­ a's badly needed foreign exchange cannot be squandered on ences predicted petroleum crises and fo resaw short-term weapons systems, but must instead be used to tactical nuclear warfare in the Middle East. build China's industrial base. They insist that only upon such • The Soviet Islam establishment, including a base can China modernize its armed forces to the point of Shiite-born Politburo member Geidar Aliyev, the representing a credible deterrent to Moscow. Soviet Orientology and Ethnography think tanks, The Deng forces thus see the "marathon" talks with Mos­ and the four Muslim Boards of the U.S.S.R. cow as a means of stalling or stopping Moscow-instigated • Moscow's cooptation of British intelligence border challenges. Clearly this will be a very tricky game for networks (including those of the "Muslim Peking to play, since it cannot allow its talks with Moscow Brotherhood"-most prominent member, Aya­ to be perceived in the Soviet Union as lowering the risk from tollah Khomeini) and parts of Hitler's Middle East networks, expanded after the war. redeployment of Soviet hardware . They argue that the quick­ • The U.S.S.R.'s diplomatic and political gains fix approach of the Li-Yeh group would, like the invasion of in the region since 1979. Soviet penetration Vietnam which Li and Yeh supported, torpedo essential of Iran as a case study of Moscow's Muslim card. modernization. The August 1983 founding of the Teheran-based Nonetheless, by the end of 1979, the U.S.S.R. , riding on terrorist "Islamintern," which showed its hand a wave of strategic momentum, made a firm decision that it in the Oct. 23 Beirut bombings. could afford to cashier both the June 1979 SALT II agreement and the October 1979 Sino-Soviet border talks in favor of the $250.00. For further information, call William Eng­ invasion of Afghanistan. Indeed, fo llowing the invasion, dahl, Special Services, at (212) 247-8820 both the agreement and the talks were cancelled.

42 International EIR March 20, 1984 Report from Bonn by George Gregory

Some promising news ing diplomats without diplomatic Despite effo rts to undercut the Kohl regime and to sp lit off passports like Sadeg Tabatabai, caught Germany from the U.S.A., Bonn is showing signs offight. smuggling drugs into West Germany. During Kohl's trip to Washington, D. c., he insisted that West German sales of defensive weapons to Saudi Arabia neither meant nor required a change in policy toward Israel, a T he West German governmentcan­ States is committed to developing "moderate Arab country. " He pointed not claim to have weathered all the beam weapons , and the Soviets do it out Israeli hypocrisy in attacking West storms churnedup to destabilize it, but too, then we have to take a look at Germany, "since Israel sells arms to a refreshing air of initiative has taken what has to be done in the short- and Iran." The Chancellor's statement hold. This goes for Chancellor Kohl, medium-range missile area." would be a "no-no" unless someone and' especially for his defense minis­ The recent visit to Western Euro­ had clipped his foreign minister's ter, Manfred Womer. pean capitals by aU. S. team led by claws. And, when Kohl pointed out Senior military officials say that the President's scientific adviser, Dr. that he too thinks Western Europe the Bonn defense ministry is regaining Keyworth, "certainly helped to over­ should do more for its defense, and he its former influential status once again, come the strategic and technical infor­ therefore puts great emphasis on Ger­ and the attempt to shatter the West mation deficit," an official close to the man-French cooperation-not to ex­ Germancomponent of the NATO mil­ chancellery pointed out, "although our aggerate the point, but there was a fla­ itary command with the affair around thinking has been developing in this vor of Konrad Adenauer-Charles de Gen. Gunther Kiessling, is being direction in any case." He added that Gaulle. "handled." For one thing, Womer has "we are , however, somewhat disap­ The only people in Bonn nowa­ begun to do what former Chancellor pointed" in the mildness of the Reagan days who love Henry Kissinger are Helmut Schmidt did when he became administration's rebuff to Dr. Kissin­ Social Democrats, and maybe Hans­ defense minister back in 1969-make ger's Time magazine advocacy of a Dietrich Genscher (so conspicuously sure that officers and officials in key U.S. decoupling from Europe . absent during Kohl's trip to Washing­ positions are really "his people ." It has often been difficultto tell the ton) . Social Democrat Egon Bahr, an The most dramatic shift, which difference between the Kohl govern­ old-style neutralist, says Kissinger's goes hand in hand with the shuffle at ment and its Social Democratic pred­ analysis of the miseries of NATO is the defense ministry, is a new interest ecessor, primarily because it was dif­ right, and that there is no difference in pursuing the Western European di­ ficult to figure out whether Foreign between Kissinger and Helmut mensions of the U.S. beam-weapons Minister Hans-Dietrich Genscher, who Schmidt. And people like former So­ commitment, known as the Strategic served under the Social Democrats too , cial Democratic Research Minister von Defense Initiative. One senior official really knew there had been a change Btilow have been complaining pri­ put it this way: "The old reticence to in Bonn. When Foreign Ministry State vately that it is extraordinarily diffi­ even deal with beam-weapons defense Secretary Dr. Alois Mertes (a Chris­ cult to talk to the French (if you are here has been replaced by the recog­ tian Democrat) shot back against Kis­ working to break Europe from the U.S. nition that this is where science is singer for his "irrational pessimism," alliance), "because Mitterand just has going, and you just cannot stop sci­ it was a refreshing sign that someone 'Star Wars' on his mind. That is some­ entificprogr ess. " Other sources report in Bonn did not have to mull over his thing for the French soul, but not for that the defense ministry has now set legal textbooks before voicing sound us." up the apparatus to work on the full judgment. Mr. Genscher's own reac­ Sources in Bonn say there are in­ strategic dimensions of beam defense tion was deafening silence. deed far-ranging discussions under against ballistic missiles in West Ger­ Well, Genscher has invested a way between Bonn and Paris on beam many and WesternEuro pe. "It is fair!y good deal in his back-channel rela­ defense as well as space research ef­ obvious that we cannot be caught sit­ tions to Moscow. Then, too, he has forts. And military cooperation be­ ting in between all the chairs on the cultivated peculiar relations to Kho­ tween Bonn and Paris is generally deck," said one official. "If the United meini's Iran, which includes protect- closer, as the Soviet press complains.

EIR March 20, 1984 International 43 Attic Chronicle by Phocion

Power complex in a leaderless land further radical socialist measures from Venal incompetence is ruling over a crumbling nation, and the government. Papandreou the prime ruling by default. minister, i. e., the man who enjoys the trimmings of power, knows that the conservative backlash is caused by the wave of disaffection against those very measures which his party demands more of. When he tried to oppose the T his Andreas Papandreou , one of ty and to ultimately win power in 1981. IMF-dictated policies of his IMF-con­ my betes noires at the moment, merits Virtually at the instant he achieved trolled economics czar "Gerry" Ar­ a certain psychological scanning for power he started distancing himself senis, the Minister of IMF Austerity the instruction of Greek nationals, yes, from his movement's cadre organiza­ created a factional alliance with the but, more to the point, of leaders in tion, and the former Jacobin rebel dis­ radical extreme left ofPAS OK against other lands which share Greece's played the public image of an imperial the prime minister. When on Feb . 29 plight, namely, national impotence in proconsul. In his private life he fully Papandreou addressed the PASOK's the face of cataclysmic world devel­ agrees with Kissinger's notorious dic­ parliamentary fraction to appeal for opments, lands compressed between tum that "political power is an aphro­ party solidarity in parliament, the ma­ the relentless expansion of Byzantine disiac ," of which he avails himself jority of parliamentarians, after accus­ Imperial Russia and an American pol­ liberally. ing him of "bossism,"."rule by iner­ icy ranging from at best the banality Thus endowed with the inner ma­ tia," and "arrogance ofpowe r," dem­ of thoughtless anti-communism to the sochistic world of a Caliban, grovel­ onstrated their sentiments by boycot­ State Department's outright irnmo­ ing to those with power over him and ting that day's session. rality .. tyrannizing his inferiors , Andreas Pa­ On that day, Papandreou made the Andreas Papandreou is patholog­ pandreou is now, at age 65 , about to following assessment of his situation: ically attached to power as the sole face his life's "moment of truth ." The "My conservative opposition is going means of ego gratification. When out nation he leads is confronted simulta­ through the most profound transfor­ of power, as he was until 1981 , he has neously with the three fundamental mation of its life. Its rank and file is always behaved like a murderously crises typical of the Eastern Mediter­ creating , for the first time, massive enraged Oedipal rebel against his im­ ranean region: base organizations. But its leadership age of parental authority. As a child • A national-security crisis of is truly decomposing." His assess­ of five years he was abandoned by a major proportions stemming from ment was in fact correct. The Political philandering father to the care of a mounting Russian pressure through­ Council of the conservative New De­ divorced mother, beginning that ca­ out the Balkans as U.S. power has mocracy party , made up of political reer of Oedipal rage. When, 14 years been confined to support for Turk. ey, figures of the tame, royalist 1950s, is later, he left for the United States, he Greece 's traditional rival. by habit looking to the United States had hardly lived with his father. • An economic crisis compound­ for what to do next. Washington is When in the 1960s he joined his ed by a late-February demand fromthe maintaining a perplexed silence, trying father's parliamentary government, he International Monetary Fund for fur­ to cope with its own inner crisis. The adopted the principal role of agent ther massive austerity measures on swelling grass-roots nationalist move­ provocateur, under management of penalty of complete cutoff from inter­ ment is, for the time being, in the hands then Secretary of the Army Cyrus national loans. of about 70 or 80 bitterly competing Vance, in bringing down his father's • A large-scale radicalization caucuses of retired officers , priests, government and destroying the old which has swollen the rank-and-file policemen, and ideologues of the man's party . In the years of political organizations of the conservative op­ 1945-49 civil war years. exile and later of parliamentary op­ position and triggered an anti-Papan­ Power-hungry incompetence is position; he organized with Libyan dreou revolt in the ranks of his ruling ruling over a crumbling nation, and money and State Department guid­ PASOK. ruling by default, given that nation's ance an extremist movement, the PA­ Papandreou's own party bosses are apparent inability to produce leaders SOK, which managed to outflank from charging him for having failed to stem free of the "power complex," Andre­ the left the traditional Communist Par- the conservative tide; they demand as's curse.

44 International EIR March 20, 1984 Dateline Mexico by Josefina Menendez

Changes in the PRI curred ....The failures are not to be The ruling party is finally preparing to take on the fa scist imputed to the revolution or its par­ opposition: the National Action Party. ty . . . . They are the failures of people who have made mistakes or betrayed our principles. . . . We will no longer tolerate that because of a few corrupt or irresponsible people, the profound work of transformation of the Mexi­ can revolution shall be enjoined." He T his month, Mexican politics are choosing candidates for local, state, also said that the PRI will be over­ dominated by the end of the era of and national elections. As a result, the hauled and there will be a "big mobi­ appeasement within the ruling PRI PRI suffered heavy losses last year to lization" throughout the country to re­ (Revolutionary Institutional Party), the National Action Party (PAN}-a vi ve the power of the party . which has permeated the policies of Nazi-inspired party, as EIR has The changes inside the PRI came this party . shown-inthe states of Chihuahua and as an answer to the demands of the The changes were announced in a Durango, and almost lost the states of labor and peasant sectors of the party, gargantuan demonstration of the PRI Baja California North , Sinaloa, and but especially of the powerful CTM, (more than 150,000) outside the Mon­ Tamaulipas. the national labor confederation, which ument to the Mexican Revolution. and During last year's elections , the was openly fighting the undemocratic before Miguel de la Madrid and his PRI faced a growing PAN opposition methods of Vargas Saldana and his entire cabinet, governors , deputies, that was the beneficiary of hundreds crowd. The CTM is the best orga­ senators , PRI state party chairmen , of millions of pesos from the former nized, most experienced, and most peasants, labor, and popular leaders , private bankers who were enraged at disciplined social group in Mexico be­ which represent the constituency of the "nationalization" of the private sides the army. Several times the CTM the PRI. banking system decreed by former demanded that the party confront the For foreigners , mostly the so­ President Jose Lopez Portillo. Since growing Nazi opposition in the coun­ called observers of Mexican affairs at then, the former bankers have exerted try . This demand was put forward dur­ the U.S. embassy as well as execu­ tremendous pressure on the govern­ ing the PRI convention on March 6, tives of U. S. firms , this ceremony and ment in order to get political power. where CTM speaker Juan Millan de­ the announcements made here of And some of them are still trying to nounced the participation of certain "drastic changes" inside the PRI, are promote a national revolt. PRI members in support of the PAN , part of the Mexican ritual of "doing The second aspect of the PRI loss­ as well as the collaboration of the PAN the same thing with different words," es was the result of the massive pop­ with the PSUM (formerly the Com­ as a U.S. executive told me . ular rejection of the governmental munist Party of Mexico) against the But the announcements made by economic austerity policies that sent PRI. He also said that some governors PRI head Adolfo Lugo Verduzco, a unemployment up to nearly 2 million. and officials of the PRI were creating well known "man of the President," Reyes Heroles's group stated that the obstacles to veteran militants of the mark the end of the hegemony of the PRI has to be "decoupled" from the party and provoking apathy and deser­ political faction identifiedwith former mass, farm , and labor sectors of the tion by party members . PRI head Jesus Reyes Heroles, now party and oriented into the hands of Lugo Verduzco announced the education minister, whose anti-con­ the caciques (local bosses), economic resignation of Vargas Saldana and his stituency policies during the past year bigwigs, so-called "intellectuals," and replacement with Francisco Luna Kan, had sent the PRI to its lowest level of corrupt officials. This provoked an in­ whose long party career is linked to popularity in decades. The Reyes Her­ surrection within the party. the peasant sector. But CTM leaders, oles policy was carried on by Mario Lugo Verduzco described this including its head Fidel Velazquez, Vargas Saldana, secretary general of phenomenon during his speech on the are not fully satisfied with the selec­ the PRI , and second in command in 55th anniversary of the founding of tion of other party officials, especially the hierarchy of the government's the party, when he said, "We do not the position of secretary of the orga­ electoral machine . As secretary gen­ hide the mistakes and deviations that nization, a key spot for mass eral , Vargas Saldana was in charge of [the PRI] has sometimes in- organizing.

EIR March 20, 1984 International 45 International Intelligence

power for the first time in his I5-year rule . a tripolar world dominated by the United Club of Life to hold A powerful military clique led by Chief States, China, and the Soviet Union, ex­ Cairo conference of Staff Gen. Hikmat Shihabi is challenging cluding Europe from power, was "insane." Rifaat Assad, who is reported to have begun Beam weapons must become a primary is­ preparing to take power shortly after his sue in Europe, he concluded. In cooperation with several Egyptian min­ brother fell ill. In recent months EIR has sponsored such istries, the Club of Life will hold its first The Shihabi faction, which also in­ conferences in Copenhagen, Vienna, Mun­ intemational conference in Africa in Cairo cludes chief of military intelligence Ali Duba ich, Oslo, Brussels, Rome , and Bonn; a on April 25 and 26. The conference will and Shefiq Fayez, the head of the Third conference will be held in Paris, March 23 focus on the fightfor a New World Econom­ Army, is preferred for succession by the and 24. ic Order and the key role of African econom­ Soviet Union, Syria's chief controller. ic development to reverse the worldwide Arab sources report that Hafez will try economic depression, and will be paralleled to install a new government balanced be­ State Department by smaller conferences in Europe, theUnited tween the faction led by Rifaat and the Shi­ States, and Ibero-America. habi grouping, as witness the decision to threatens Egypt At the conference in Cairo, the Club of keep Khassem, considered an opponent of Life will present a development program for Rifaat. But Hafez, head of an extended clan , High-level Eygptian officials are enraged at the entire continent, radically rejecting the cannot easily drop his pledge that his brother the U.S. State Department for publishing a Malthusian proposals which totally oppose will succeed him. secret report claiming that Eygpt should no the industrialization of the developing sec­ longer be considered a "reliable ally," tor. Topics to be discussed include the Great sources in Egypt told EIR . They confirmed Projects approach to world economic recov­ European conferences on the existence of the report, which calls the ery , a 30-year development plan for Africa, "Iranization" of Eygpt "inevitable ." This doubling grain production worldwide, the Western beam defense statement is perceived by the Egyptians as concept of building nuclear-reactor-cen­ open support for Islamic fundamentalists More than a hundred persons , including tered agroindustrial centers (nuplexes) , the agitating against President Hosni Mubarak. leaders of the northern Italian defense in­ debt crisis and international monetary re­ They reported that Mubarak's Februarytrip dustry , a representative of Italy's northwest form , using the the Qattara Depression to to the United States was "a disaster, a military district, high-ranking military offi­ provide irrigation , and other means of over­ failure ." ciers, diplomats, and candidates for public coming the food deficit in Egypt. At the same time , the World Bank is officeattended a March 1 conference in Mil­ The Club of Life is encouraged by the threatening to withhold urgently needed an on the need for aU. S. -WesternEuropean reception the Egyptian authorities have giv­ wheat supplies from Eygpt should the gov­ alliance to initiate a crash program for the en to its proposal for the conference, and ernment offend them in any way. Eygpt de­ development of ABM directed-energy calls on all individuals, institutions, govern­ pends on imports to feed its population, and weapons systems . ments and internationalagencies committed cuts could lead to the same kind of riots that Speakers, including the secretary-gen­ to a pro-development outlook to help ensure broke out inTunisia and Moroccoin January. eral of the European Labor Party in Italy, the success of this event. Fiorella Operto , Gen. (ret.) Guilio Macri, and U.S. congressional candidate from the Arab daily cites LaRouche Assad regime in heavily Italian districtof South Philadelphia Bernard Salera, describedthe Soviet Union's attacks on Kissinger serious trouble? drive for military superiority , and the grow­ ing support among Western European gov­ Al Arab, a London-based Arabic-language The cabinet of Syrian President Hafez Assad ernments for the beam-weapons defense daily, denounced the United States' and the resigned March 6 after a skirmish erupted systems proposed by President Reagan's U.S. media's accusations that Iraq has used between a group of military officers and the administration. chemical weapons in the prolonged war with forces of Rifaat Assad, Hafez's younger Conference attendee Dr . Claudio Pol­ Iran in an editorial March 7. Al Arab has a brother. A struggle for the succession erupt­ lastri, head of the foreign policy department circulation of30 ,000 in Europe and the Mid­ ed during the President's November hospi­ of the Italian Social Democratic Party in die East. talization for heart disease. Milan, called for strengthening Europe's al­ The editorial condemned Henry Kissin­ Assad is reported to have kept on as prime liance with the United States. American­ ger for his broad association with interna­ minister Abdel-Raoud Khassem, and is said European relations, he stated, had been se­ tional terrorism, and praised "U.S. Senator to be preparing to name one or more vice­ verely damaged by the Carter presidency, [sic] Lyndon LaRouche [for] his part in ex­ presidents as a gesture of willingness to share arid Henry Kissinger's doctrine of creating posing Kissinger's role against Arab, Third

46 International EIR March 20, 1984 Briefly

• JACQUES VERNANT, strate­ gist for the Revue de la Defense Na­ tionale in Paris told EIR March 8 that "France has bet on the wrong horse in the Iran-Iraq war. Iran is on top ." Vernant defined this evaluation as World and American peoples. " of reports in London and New York that the "admittedly opportunist" but "ra­ Al Arab described LaRouche's charges military government will not be able to tional." that Kissinger was involved in the "liquida­ maintain its unity in the face of economic tion" of Third World leaders , and called EIR crisis. It was just such a breakdown of mil­ • THE CATHOLIC Church in "a magazine founded by an honest man itary cohesion in the mid- 1 960s which led West Germany is funding the radio whose conscience compels him to expose to the catastrophic civil war. station of the anti-Marcos opposition all what is hidden in the corridors of power movement in the Philippines. in the United States ." European press denounces • SOCIETY OF JESUS Director­ General Hans Kolvenbach, in an ex­ Kissinger's pullout plan Soviet defense minister clusive interview with France's Le Figaro March 6, said that relations makes tour of India Karl Feldmeyer, the military correspondent with the Holy See have gone from of the FrankfurterAllgemeine Zeitung, one "tense" to "cordial." Soviet Defense Minister Dmitri Ustinov ar­ of West Germany 's most important dailies, Time rived in India March 5, heading a delegation attacked Henry Kissinger's magazine • NATO completed two days of of 60 aides and officers , including Com­ proposal for U.S. pullback from NATO in maneuvers illBritain March 7, to test mander of the Soviet Navy Adm . Sergei the lead editorial March 6. how to "counter a Warsaw Pact sur­ Gorshkov . The Ustinov trip, postponed be­ Kissinger's theses address the question prise attack," according to West Ger­ cause of Yuri Andropov's funeral in Febru­ "What constitutes the basis for the security man media. ary, is intended to make a diplomatic inter­ of Western Europe?" The answer to that vention into India and increase Soviet arms question, Feldmeyer asserts , has "remained • PEKING announced on March 4 sales there . unchanged since the foundation of the alli­ that it was expelling the correspond­ Ustinov will tour Indian defense indus­ ance: The political and military engagement ent for Der Spiegel magazine for dis­ try plants and an Indian navy port, and meet of the United States ....In the last analysis turbing the peace; he was accused of with Prime Minister Indira Gandhi and other it is the U.S. nuclear umbrella that counts . biting the hand of a city policeman. high-level officials. Only the risk this umbrella creates is credi­ "The situation has becom e grave with ble and unacceptable for the Soviet Union. • THREE HEADS of the Roman the United States militarizing and control­ It alone can prevent Moscow from imposing nobility-from the Massimo, Mon­ ling countries of Southeast Asia, including its will upon Western Europe-be it by po­ treale, and Pallavicini farnilies-have those that are next to peaceful India," Usti­ litical or military force." converted to Islam, according to ru­ nov declaimed at a dinner March 5. During If that deterrence factor did not exist, mors in Rome. February , a Soviet naval squad including the Feldmeyer continued, Moscow's position ·aircraft carrier Novosibirsk called at the "would be completely different from the • ERICH HONECKER will make southern India port of Madras--the first visit present parity counted according to missiles a state visit to Bonn this autumn, ac­ ever made to India by a Soviet aircraft car­ and megatons. . . . Only then would the cording to a high-level West German rier. Sources report that the Soviets are Soviet Union have won its fight with Amer­ source. "testing the waters for a major strategic move ica which has been building since the col­ in the region-probably Iran, but maybe lapse of the wartime alliance. • DENIS HEALEY was an active Pakistan," he said. "[Kissinger's thrust] can only reinforce member in the British Communist Moscow's hopes that it can avoid a revision Party in 1932-39, a London insider of its own policy because the West will not says. The British Labour Party leader Cult threatens stick to its own policy. " "hasn't changed in reality at all since The leading Swiss daily Neue Zurcher then." Nigerian government Zeitung also condemned Kissinger's plan. "This politician ought to know ," the March • ANDREI GROMYKO would be The northeastern Nigeria city of Yola was 4 editorial stated, "what the European an­ happy if "the whole Middle East went rocked by violence and rioting for a week swer would be to a radical reduction of to hell," an Israeli source told EIR . beginning Feb . 27 , sparked by members of America's coinmitmentto the old continent, "He thinks the region is made up of a a ·pseudo-Muslim sect. The govemrnent­ in view of past experience. There would be bunch of lunatics, and he's the most owned daily New Nigerian reported March no revival in the desire for joint defense, but notorious racist in the Soviet 6 that 1,000 or more persons may have been rather a flight into 'relaxation of tension,' leadership . " killed. which is just a nice way of saying accom­ The latest violence comes on the heels modation to the will of the 'other' power."

EIR March 20, 1984 International 47 �ITillNational

LaRouche : 'Kissinger intends to invade Mexico'

"Henry A. Kissinger intends to send U.S. military forces into the land, and the choice industries of the indebted nation. Mexico," said U.S. Democratic Party presidential candidate That's exactly what Britain and Napoleon III did in attempt­ Lyndon H. LaRouche, Jf. , speaking to a reporter in Wash­ ing to overthrow President Juarez , and putting that Hapsburg ington , D.C. on March 6. "Kissinger fully intends to become butcher Maximilian in to supervise the murder and looting of acting U. S. President if President Reagan is re-elected; if he the people of Mexico. Read the Kissinger Commission re­ succeeds , U.S. military action against Mexico during the port; that's exactly what the report is proposing to do." immediate years ahead is not absolutely guaranteed, of course, What about the charge that Mexico is going communist? but is very , very probable ." "Any American who believes the silly lies charging that These remarks came in response to the reporter's sugges­ Presidents like Luis Echeverria, Jose Lopez Portillo, or Mig­ tion that LaRouche supply his own answer to a question uel de la Madrid are 'communists : is babbling like the 'ig­ which ABC television interviewer Barbara Walters had asked norant gringo' Mexican opinion suspects all 'Yanquis' to other Democratic presidential candidates during a broadcast be." debate recently, in New Hampshire . During that television broadcast, on Feb . 23, Walters had challenged the candidates The real Soviet threat to Mexico to state how they would react, as U.S. President, to the "There is a real Soviet-directed threat inside Mexico, but success of a communist insurgency inthe Republic of Mexico. it's directed against the government chiefly through the Nazi­ LaRouche said: "Walters was using that question to slip Soviet alliance between the PAN and the PSUM [formerly in the same Kissinger campaign against Mexico that came the Mexican Communist Party�d .]. The interesting ques­ out of the mouth of Gen. Paul Gorman at the U.S. Senate tion is: Why have elements of the U. S. State Department and hearings. Barbara Walters is a very special kind of journalist, Federal Bureau of Investigation been detected openly sup­ if you understand what I mean; she would never put such a porting a Soviet tool like theold Nazis in the PAN 's leadership? question in that way unless it were calculated to produce a "The way to defend Mexico against Soviet intervention very specific kind of political effect nationwide." is to stop the West European and U.S. bankers from looting Asked to identify Kissinger's plans for invading Mexico, one Ibero-American nation after the other to the point of the Democratic candidate said: "Read the report of the so­ destruction, with the policies of the private firm, Kissinger called Kissinger Commission. Translated in plain English, Associates, Inc., that is running U.S. foreign policy toward what that report demands is that the United States implement all of Ibero-America at this time." the same policy toward all of Ibero-America that the British If this is true , does LaRouche intend to attack President Empire conducted against Egypt during the last century: Use Reagan for supporting such policies? the foreign-debt as an excuse to seize the mines, the oilfields, "Unless the President soon dumps Henry Kissinger out

48 National EIR March 20, 1984 of his government, I will be forced to attack the President for just that reason . When Ronald Reagan was campaigning to become President, he made a repeated, solemn promise never to allow Kissinger to set foot inside his administration. The President has broken his most solemn promise to all those who supported his election over all these years . If he permits himself to continue to keep Kissinger in government, the President will almost certainly not be re-elected in 1984. "Essentially, Ronald Reagan is the most likable human being we've had as President in about 20 years . I like him personally, even though he has made some bad mistakes in allowing the Kissinger crowd to run his foreign policy from the beginning, in his monetary policy, and in granting in­ creased power to those Gestapo mentalities who run the FBI. I prefer to cause the President to recognize and change bad policies. However, if the President does not come back to his senses, and find the courage to throw the Kissinger gang out of government, President Reagan's entire administration will have to go." Ifthe President is a likable person, what possible motives Henry Kissinger with Ortiz Mena of the World Bank, which has done so much to prepare the underdeveloped nations for internal could he have for supporting such evil policies against and external destruction. Mexico? "I don't believe that the President really knows much about what is going on in the world, or even inside high levels the United States during 1983, as compared with 1981-82? of his own administration . That is my own personal experi­ Part of the answer is the effect of high U. S. interest rates in ence with the White House during the most recent months. draining Western Europe of flight capital. The rest of it is That's what old friends of the President's are saying, in a chiefly a savage looting of the economies of Ibero-America, growing number of cases. That's what some leading mem­ started when Kissinger came back into the government in bers of Congress are saying. That was proven during Presi­ October 1982. The economies of Ibero-America are canni­ dent Mubarak's recent visit to meet with the President. The balizing their own capital , wages, and natural resources, to White House staff is acting as a 'praetorian guard,' pretty subsidize the depressed U.S. economy by as much as $100 much controlling the information that reaches the President's billion annually in direct economic subsidies to the U. S. eyes and ears; and that staff is helping Kissinger to control economy. Without this colonial-style looting, the U.S. econ­ the President's beliefs . It reminds us of what Kissinger and omy would have collapsed at 1982-rates throughout 1983. Haig did to Nixon; it's exactly the same pattern." That's what the Kissinger report insists must be increased; But President Reagan did consciously push through u.s. that's the economic side of the motives of the Kissinger support for the IMF "conditionalities" policy of looting Ibe­ faction in the Reagan administration." ro-America. Why is his administration supporting a policy Can this partof U.S. policy be changed? you yourself describe as a copy of 19th-century British "Only if Kissinger is pushed out of the government. I'm imperialism? afraid that the only way that's going to happen is that I gain "The best answer to that is to look toward the faction in a large enough vote in the Democratic primaries, or that I the Reagan administration lined up behind George Shultz, win: the Democratic presidential nomination. If I were the Donald Regan, and Federal Reserve Chairman Volcker. Democratic candidate, and Kissinger were still inside the That's the same thing as the Kissinger faction, including Reagan administration, it is almost automatic that I would AFL-CIO President Lane Kirkland . What we do know is that win the November election. If any of the other Democratic the President felt himself pressured into accepting this fac­ candidates were to win the election, U. S. policies toward tion's arguments . It is very clear that the President believes Ibero-America would be the same policies Kissinger is push­ the lying statistics which these people are presenting him on ing today. the U.S. economy; he doesn't really know what is going on. "I am very unhappy that the fate of so many nations To speak of the motives for the policy, you have to look at depends upon the degree of success I have in the 1984 Dem­ the motives of Volcker and Donald Regan's Wall Street ad­ ocratic primaries. That is a very realistic estimate. Unless I visers , as well as Kissinger's motives." . make at least a strong showing in the primaries during April Well, then, what are their motives? "Ask yourself why through June of this year, many nations of the world are the rate of economic collapse slowed down significantly in doomed to be destroyed during the two or three years ahead."

EIR March 20, 1984 National 49 Disarray grows in Establishment ranks as technology breakout looms

"On March 4, 1984, former undersecretary of state Leslie H. return to the cultural orientation of scientific and technolog­ Gelb published in the New York Times Sunday Magazine one ical excellence. They then mess up on what they consider of those articles which reveal secrets much bigger than their such excellence to be. The senior fellows in London [Lord authors' intentions," remarked EIR editor-in-chief Criton Carrington] are torn between going for an outright surrender Zoakos in New York. Zoakos is an associate of Mr. Lyndon to the Russians and opting for some incompetent ' High Fron­ H. LaRouche, Jr. , the candidate for the Democratic presi­ tier' version. Senior alliance leaders on the continent, espe­ dential nomination this year, and also intelligence director cially Germany and France, have made their 'institutional for LaRouche's philosophical association, the International decisions' to go with President Reagan's March 23, 1983 Caucus of Labor Committees. He was referring to Leslie policy of getting on with thedevelopment and deployment of Gelb's article titled "Is The Nuclear Threat Manageable?" space-based anti-missile laser beam weapons and related "To appreciate what Gelb is unintentionally betraying, technologies, which is closer to what LaRouche has been you ought to read an analysis published in EIR by Lyndon proposing as a competent war-avoidance option. But no con­ LaRouche on Feb . 28, 1984 titled 'Confusion Among Euro­ sensus is in sight for what was once the proudly unified and pean-American Elites ,'" Zoakos said. He added, "The Gelb well-orchestrated policy elite of the Atlantic community. piece reflects desperation now gripping the U.S. Eastern And there will not be either consensus or clarity of policy Establishment and their British cousins over the fact that the unless they purge out of their bloodstream all the ideas and Soviet military junta is now in a military-technological break­ habits and methods of policy which are associated with the out mode, contrary to earlier Russian promises which our 'Kissinger era' of the alliance from approximately 1967-69 establishment policy elite had imagined had been extracted to date. in the beginning of the Kissinger era back in 1968-69. Gelb' s "Back in the summer of 1968," z<>akos went on, "a few piece also betrays the fact that the top layers of this elite are months before Henry A. Kissinger joined the U.S. govern­ in the middle of a veritable slugfest over what science man­ ment, the entire policy-making elite of America's Eastern agement and technology management policy to pursue. At Establishment, together with their British 'cousins' around this time, the underlying cultural implications of a future Lord Solly Zuckerman and Alexander King, took a very long science and technology policy are much more 'up front' in bet with history, in a highly secret meeting in the suburbs of this confined elite shigfest than the otherwise urgent issues Paris. Then-young Zbigniew Brzezinski, present at the meet­ of strategic security of the West." ing, put on paper some of the decisions made and published them under the book title The Technetronic Society. The grip of Bertrand Russell "Now, 16 years later, the March 4, 1984 New York Times "Unfortunately, this group of policy makers still does not publishes a long and tedious call to armsby Leslie Gelb which possess the qualifications to resolve this debate, nor will it informs us that those still surviving among the bettors of 1968 develop such until it succeeds, if ever, to get itself out of the are recognizing, with growing hysteria, that history has hypnotic grip of what Lord Bertrand Russell and the Pugwash cheated them and they are about to lose the bet. The bet was movement misled them to consider sciehce, science policy, that they would successfully terminate all undesirable prog­ and scientific outlook," Mr. Zoakos continued. "LaRouche ress in technology and also in science, and preserve their has been trying to educate these fellows on this subject years ability to control and manage social affairs." before I met him back in 1968. They have been too stubborn for their own good. Now that they face the shambles of their Who placed the bet? policy, as the Gelb piece indicates, what do you have? The "The bettors included the best names of the European­ European Security Study (ESECS) group out in Boston is American policy elite: McGeorge and William Bundy, Cyrus arguing that the United States and the alliance must quickly Vance, Averell Harriman (then in Paris negotiating the Viet-

50 National EIR March 20, 1984 at some future point into a dimly defined East-West imperial condominium, all based on a strategy of stifling and ulti­ mately killing the West's motors of technological and scien­ tific forward motion. A series of long-term scenarios and strategies was pulled off the drawing boards whose imple­ mentation would presumably cause a gigantic cultural trans­ formation, a 'paradigm shift,' as they then called it, which Leslie Gelb concedes that the Soviet would expunge the West's hereditary cultural preference for leadership hasn't technological and scientific progress." Zoakos then added wrecked the U.S.S.R. with pointed emphasis: "The ultimate premise of the entire the way the U.S. elite enterprise was Lord Russell's axiomatic assertion that the 0 agreed to wreck 'armsrace' causes war andthat technological progress causes America. the 'arms race.' "Lord Russell, of course , had never bothered proving his assertion, as usual based on shoddy thinking. However, the spirit of Lord Russell and of his Pugwash Movement had already thoroughly seeped into the bone and marrow of the leading participants of that fateful 1968 Paris Conference. Most of them scions of oligarchical families with long pedi­ grees, some faithful corporate executive servants of the same oligarchical families, and others merely aspiring academic Gelb fa ils to point out sycophants, they were all predisposed to the mental habits of that Bertrand Russell and his heirs were the Lord Bertrand Russell upon whom they had already bestowed arbiters of the West's the appellation of the 'greatest philosopher of the 20th cen­ renunciation of tury.' At any rate, amid this tide of banality, the great deci­ technological progress. sion was taken," which, Zoakos explained , was implemented as follows. "McGeorge Bundy went off to make his arrangements nam affair) , the chief science administrators from Tavistock, with senior KGB officers including Kosygin's son-in-law Harvard , MIT, Stanford Institute, and so forth , the chief Dzhermen Gvishiani, with whom he founded the Internation­ executive officers of the major weapons manufacturing cor­ al Institute of Applied Systems Analysis in Vienna. The Ford porations and the 'high-tech' corporate elite of Boston's sub­ Foundation, the Aspen Institute , the Carnegie Endowment urbs. Canada's chief Malthusian Maurice Strong was there, and others started a massive funding of a then nonexistent and so was the Club of Rome's Aurelio Peccei. Robert Strange environmentalist movement." McNamara was spending his last days as secretary of "e- o fense , in which capacity he had already completed the noto­ The arms-control gambit rious STRAT-X Study which had established the limits with­ "The skids were greased for Henry A. Kissinger to enter in which American technology and weapons application would the government. Dobrynin in Washington and the Marshals be allowed to move in the decades to come. Kissinger was in Moscow were told to expect major United States proposals commuting between the Paris conference and Washington for arms control. From Paris, Harriman was sending emis­ trying to manipulate both the Nixon and Humphrey saries to Moscow promising that if the Soviet government campaigns. agreed to enter arms-control negotiations then he, Harriman, "The problem was, and is," LaRouche's aide stated, "that would guarantee that the United States would get out of the bettors were educated in the best Lord Bertrand Russell Vietnam (and maybe out of Asia, was the implication). One and the previous decade's Pugwash movement had to offer. of the emissaries was Vance. One of the recipients in Moscow They were also armed with the latest conclusions of Tavis­ was Army General (later Marshal) Nikolai V. Ogarkov . tock's Rapoport Report, strongly urging, for 'psychological, "Moscow's senior gamemasters could hardly conceal their sociological and political ' reasons, the early termination of enthusiasm. They were being offered a proposal according America's then technological upsurge associated with the to which the West would undertake to junk its one character­ Space Program . '" istic cultural distinction, its organic drive for scientific and technological progress, and thus become a society culturally The premise akin to their own. The price asked of the Soviets was that "Then they made their fateful decision: A perpetual nu­ they enter an arms control relationship, what later became clearstrategic balance was envisaged on the horizon, to merge known as the SALT era.

EIR March 20, 1984 National 51 "What came of the project?" Zoakos asked. "Now, 16 Times are two of the most sullen and determined opponents years later, after SALT I, SALT II, START, when 'Green of Lyndon H. LaRouche, Jr. , the Democratic presidential parties' have won seats in parliaments, and environmental hopeful, for reasons intimately associated with the lost wager regulations have gutted whole advanced industries, and en­ of 1968. I cannot resist recalling that I, as a young man, vironmentalist cults have saturated our public life, Leslie H. began my association with Mr. LaRouche some time in 1968, Gelb, the national security editor of the New York Times, a perhaps a few weeks after the notorious NATO-sponsored 'scholar' in the Carnegie Endowment and Cyrus Vance's secret conference in Paris where the fateful policy against trusted undersecretary of state for politico-military affairs , science and technology had been adapted. Through all these writes in the March 4, 1984 New York Times: 'In the past, years of apprenticeship and association, I have watched Mr. revolutions in nuclear technology came singly; now they are LaRouche do nothing else better and more effectively than coming in one overwhelming package. The first revolution refute and debunk the premises and assumptions which went was from atomic weapons to far more devastating nuclear into that Paris 1968 secret conference, the assumptions of weapons. The second was from single-warhead to multiple­ Lord Bertrand Russell I referred to earlier. warhead missiles. But neither changed the basic idea that "Each time LaRouche offered a new refutation of those nuclear war could not be won. The revolutions on the horizon assumptions, we had to endure yet another rampage of East­ now threaten that idea ....All technological pieces of a em Establishment rage. Each time LaRouche offered them "winning" puzzle could be put in place by [the end of the an alternate set of policies for securing the peace , he was century]: anti-satellite weapons, missile warheads with im­ greeted with another wave of hysterical slanders and physical proved accuracies, anti-submarine warfare capabilities, and threats . Each time he warned them against the growing dan­ defense against ballistic missiles.'" gers of nuclear nightmare resulting from their Russellite anti­ science policies, new insulting catcalls were thrown in his Gelb's confession way and new attempts were hatched against his life." Quoting from the Sunday magazine text before him, Zoakos continued: "Bewildered by what appears to him a Does he have any answers? runaway growth oftechnology, Gelb writes: 'Now, however, "Now, our good Leslie H. Gelb comes along to fi�ally the question really is whether technology and procedures for admit that 'the nuclear peace could be transformed into a controlling technology are taking us beyond [these] limited nuclear nightmare .' How true ! But can he give us the reasons and practical choices and instead of providing solutions, are why? Or the means of how to avert it? To propose, as he becoming the larger part of the problem. In the last few years does, that we should attempt further controls against tech­ and in the years immediately ahead, seed money has been nology is by now a moot point since the military junta in and will be spent for revolutionary weapons ....None of Moscow is not about to heed the advice. To claim that this these weapons systems are now operational and the key de­ state of affairs came about for reasons other than the policies cisions whether to develop and deploy them will be made in adopted at the Russelite conclave of 1968 would be absurd: the next few defense budgets ....[T]hose who favor a big No other policies were carried out in the strategic field since ABM system-with. space-based lasers to hit Soviet missiles then but the policies to which he subscribes. Those policies, as they are rising, other weapons to attack them in space, and therefore , are the cause of the emerging 'nuclear nightmare . ' ground-based missiles-have a powerful following inside the "From what we are daily observing in backstage Wash­ Administration.' Gelb finally concludes with the following , ington around the subject of LaRouche leaves no doubt that which indicates that the old 1968 bet with history may have the levels of growing hysteria against LaRouche are associ­ already been lost: ated with the growing realization that the basic long-term " '. . . What has to be understood now is that the nuclear policies of LaRouche's political and philosophical adversar­ peace of the last 40 years could be transformed into a nuclear ies are patently bankrupt by now. LaRouche's critiques of nightmare . What is in the offing is not simply another weap­ the Russellite anti-science policy orientation have been well ons system or two, not just another phase of the old arms studied and discussed in these Establishment circles over a race, but a package of technological breakthroughs that could period of years. On numerous occasions, I happened to have revolutionize strategic capabilities and thinking. To be sure , delivered crucial strategic writings of LaRouche's on the there is time before all of these technologies mature into subject to such places as the Aspen Institute, the Council on reliable weapons systems. But not much time ....Most Foreign Relations , and elsewhere . It is known that the debate lamentable, there seems to be a habit of mind developing over LaRouche's critique has raged for a while in the secret among Soviet and American officials that the problems can­ enclaves of national security policy making, in a climate far not be solved, that technology cannot be checked, a kind of different than that of the public alterations between frozen , ,, resignation and complacency. Putting aside the magazine, silences and outrageous slanders. Yet the Establishment's LaRouche's aide went on: consensus has remained: Silence LaRouche at all costs," he "Leslie Gelb and his patron Cyrus Vance of the New York concluded.

52 National EIR March 20, 1984 does Graham: that Dr. Edward Teller's proposal for the use of nuclear-pumped x-ray lasers as well as other beam sources for ABM defense should not be deployed. "L-5 is part of the High Frontier Movement," Henson­ Bosma told an interviewer recently. High Frontier is the Danny Graham's space defense plan of General Graham and the Heritage Foundation which purports to be an anti-missile defense sys­ fr iends in L-5 Society tem but shuns the use ofthe most advanced laser and directed­ energy weapons, proposing to use instead rocket-powered by Ira Liebowitz vehicles with conventional explosives and projectiles to in­ tercept enemy ICBMs. Dr. Edward Teller, one of the archi­ tects of President Reagan's March 1983 beam-weapons pro­ In a Jan. 29 Time magazine article titled "An ESP Gap," Lt. posal, told Graham in a letter last December that there was Gen. Danny Graham (ret.) is quoted on the subject of psychic only one thing wrong with his High Frontier program-it research: "I wouldn't be surprised if the intelligence com­ won't work. munity were following this. They would be remiss if they An L-5-controlled qebate on space policy is designed to didn't." Why is Graham endorsing "paranormality"? The eliminate the proposals associated with Dr. Teller. Those answer may have to do with Graham's friends in the L-5 involved include Henson-Bosma; her current husband John Society. Bosma, a consultant for High Frontier and the Heritage Foun­ L-5 came out of the 1975 session of a conference series dation; Maj. Robert Bowman of the U.S. Army's kooky at Princeton University hosted by Dr. Gerard O'Neill. Fund­ Delta Force-First Earth Battalion and the Washington Insti­ ing for O'Neill's 1974 conference came from Stewart Brand's tute for Space and Security Studies; and a self-avowed "dis­ California-based Point Foundation, a slush fund of the Co­ armament groupie" who has been tagged as Bowman's "con­ evolution Quarterly. CQ promoted Gregory Bateson, mind­ troller," Carol Rosin of the Institute for Security and Coop­ altering drugs, and environmentalism during the 1960s, and eration in Space . publishes the Whole Earth Catalog. While Robert Bowman acts as Graham's left-wingcritic , In 1975, the scientists attending L-5's founding dinner at Rosin counts as her "close personal friends" John Bosma and Princeton were presented with two hippies who would later Carolyn Henson-Bosma. Through her status as a delegate of run the new society from Tuscon, Arizona: Carolyn Henson the International Association for Educators for World Peace and her husband at the time, Keith . Carolyn reported to the to the United Nations, "I have also opened a negotiating astonished scientists on her "experiments" with organic farm­ channel to the Soviets," Rosin told one interviewer, to ex­ ing and the production of "rabbitburgers" in her back yard. plore the Soviet proposal for a ban on weapons in space. Coopting the term "High Frontier" used in a book by Gerard O'Neill, L-5 was set up to draw in legitimate scientists Cultists, and others seeking to use L-5 to reach the U.S. population on behalf of Others involved in L-5 include Barbara Marx Hubbard of tackling the space frontier and win their support for schemes the World Futures Society, current candidate of the Aquarian compatible with the Club of Rome's zero-growth thesis (so­ Conspiracy for vice-president of the United States, and Ira lar-powered space colonies for excess population). One board Einhorn, the 1960s radical who murdered and shellacked his member was Freeman Dyson, a Princeton scientist in the girlfriend in Philadelphia. Einhornwas a member of the Neo­ Bertrand Russell tradition, and Carolyn Henson also brought American Church, a witchcraft cult founded by Timothy in LSD guru Timothy Leary. Henson usedLeary in an L-5 Leary; two other members were identified as employees at publicity campaign that included lectures to the "boring en­ the Three Mile Island nuclear reactor before the incident in gineers" at the 1978 conference of the American Astronauti­ March 1979 in which sabotage was strongly suspected. Ein­ cal Society in San Francisco. hornwas also a leading organizer for the national "Sun Day" celebration organized in 1978 by then-Energy Secretary James L-5 and the High Frontier Schlesinger. L-5 officials say there are different factions in the U.S. Before 1980, when she was pulled out ofL-5, apparently society-anti-nuclear, environmentalist, nuclear-freeze ac­ to run her operation with Graham, Henson-Bosma had brought tivists; proponents of space exploration without using nuclear into the society, among'Others, Norrie Huddle, believed by a science; opponents of "militarization of space"; and support­ source to have been a member of Einhorn's and Leary's Neo­ ers of non-nuclear space defense systems such as Graham's American Church. Henson-Bosma herself has said she was a High Frontier. That translates into an L-5 division of labor member of the Druids. with a great deal of influence over U.S. space-related defense Despite this track record, former L-5 president Randy policy. It appears that most L-5ers agree on one thing, as Clemens recently identified Henson as currentlyjo en ying

EIR March 20, 1984 National 53 "national security clearance" at the EDI Corporation in Ar­ lington, Virginia. She is also advising Graham at High Fron­ State Department tier's office, and sharing its assessments of administration decisions on space-related defense systems. L-5 circles overlap networks based at Michael Murphy's Anglo-Russian Esalen Institute in California, Willis Har­ Alec von Bennigsen man's Stanford Research Institute, the Institute for Noetic Research of Palo Alto, and the Paranormality Institute at and the 'Islamic Card' Duke University. These centers, and spinoffs such as the Lifespring and est, are corning underscrutiny for their "psychic by Allen Douglas research" programs , many of which involve collaboration with Soviet "ESP" researchers . The concern is Soviet espio­ nage and brainwashing capabilities. In mid-February, shortly after the U.S. Marine withdrawal Philip Chapman , current president of L-5 and a research­ from Beirut and the collapse of U.S. policy and influence in er at the Arthur D. Little Company in Boston, professed Lebanon, ABC-TV evening news ran a "human interest" shock at Graham's statement in Time, and quipped "I certain­ story on the 1 million-strong Shi'ite Muslim population of ly think there are more effective defense" policies than ESP. Lebanon. The message? Well yes, the U.S. strategy for Le­ Asked whether Graham's High Frontier organization grew banon has collapsed, but since these Shi'ites are fiercelyanti­ out of the L-5 Society, Chapman said: "What it grew out of communist, at least the Russians won't make headway. Two is the Citizen's Advisory Committee on National Space Pol­ weeks before , in a quiet series of meetings at the State De­ icy , of which I'm a member. And to some extent it [CACNSP] partment and in Congress, the same line of "Islamic funda­ is sponsored by L-5 . It was established in early 1981; in large mentalism as a bulwark against communism" was being ham­ part it was organized by Jerry Pournelle , because the Reagan mered home throughout the administration by the one man administration had no adequate transitional policy to formu­ who over the past decades had done more than anyone else late space policy. Danny Graham was in parallel with that to promote it: Count Alexandre von Bennigsen, Russian no­ sort of thing . " blemanand lifelong memberof the Russian OrthodoxChurch. CACNSP's meetings on space-related defense include It was, of course, the Bennigsen line, as mouthed by the congressmen and people from the major aerospace and de­ Jesuit-trained Zbigniew Brzezinski, which servedas perhaps fense companies . Jerry Pournelle is an L-5 leader who says the most important rationalization in convincing many mili­ he writes CACNSP "consensus reports" for the administra­ taryprof essionals and U.S. intelligence officiersto acquiesce tion . He is the co-author of a current bestseller, Lucifer's in an insane plan-the overthrow of the Shah of Iran and his Hammer. Pournelle says his role in these discussions is to replacement by the Shi'ite "divine," Ruhollah Khomeini. work out "compromises" on space-related defense systems, Now, at five minutes to midnight for the U.S. position in the overcoming so-called personality conflictsbetween "Teller's Middle East, it is time the mask is ripped off the "respected people, Graham's people , Hunter's people, people from though somewhat crankish elder statsman of Central Asian Wallop's office, and others ," i. e., undercutting advocates of Studies," the man whose grandfather was keeper of the hounds a full-scale beam-weapons program . under the last Russian Czar, Nicholas II. The obvious must In contrast to Graham's proposal for government fund­ be stated at long last. Count Bennigsen is now , and has been ing, Pournelle favors private funding of research on the par­ for a number of years at least, deployed on behalf of the anormal. Citing the Stanford Research Institute, the Institute strategic policy objectives of the Soviet KGB . of Noetic Science , and Duke University, he says, "I would not die of shock if ESP were proven to work." He believes The question of motive "everyone has had at least one experience of psychic phe­ As the howls go up from academic and State Department nomena." His occurred when a book by Robert Morris (a circles who regard "dear Alec" as a venerable, albeit slightly doomsday writer) fell off his bookshelf. fanatical spokesman for lm important field of study, it is Current and former advisers and directors of L-5 include worthwhile to ask whether dear Alec , in helping to destroy John Glenn (who has been endorsed for president by L-5 and the secular nation-states of the Middle East on behalf of given $5 ,000 by its PAC); Rep. Newt Gingrich (D-Ga.); Islamic fundamentalism, knows that he is working for the Mark Hopkins, L-5 executive director, economist at the KGB? As the U.S. presence is driven out of nation after RAND Corporation; Isaac Asimov and Robert Heinlein; Ka­ nation by Moscow-associated Islamic fundamentalists, the thy Keaton, chairman of Omni magazine; Marvin Minsky, question in that form misses the point. Just as the Shi'ite MIT artificial intelligence specialist; former Sen. Frank Moss fanatic who rams a hexogen-Iaden truck into a U.S. Marine (R-Ida.); Frank Haig, S.J. (AI Haig's brother); former Gov. compound may think he is doing the work of Allah, while on Jerry Brown of California; and Robert Anton Wilson of the this side of Paradise, he is aiding and abetting a Soviet take­ Illuminati cult. over of the region.

54 National EIR March 20, 1984 If we presume that Bennigsen is not reporting in Paris to KGB emissaries of Shi 'ite Politburo member Geidar Aliyev, one of two possibilities presents itself. Either he is working directly for the Soviets and doesn't know it, or he is working for very old oligarchic interests in the West who are currently in alliance with the Soviets to destroy the United States, though with often considerable secondary disagreements. In the first case, over the past 15 years Soviet emigres and defectors have flooded into the West and ensconced them­ selves in often sensitive positions in U.S. foreign broadcast­ ing and intelligence evaluations networks . In some cases these are witting KGB agents. But some of the more inter­ esting and effective cases could pass lie detector tests as to their hatred for the Soviet state and Marxism-Leninism-yet are nonetheless controlled through "cut-outs," often by cir­ cles associated with the Russian Orthodox Church. Through such cut-outs, their information finds its way back as useful espionage to the very Soviet state they hate so much. It is notorious among insiders that Bennigsen travels in a Russian Orthodox circle in Paris, observing Orthodox rites, as his family has done for over a hundred years after the A Sufider vish: contaminating the West and Mideast, not subverting former Baltic merchant family assumed a leading position in the Soviets . the court of the Czar.

Oligarchic patrons throw the Soviets. It is therefore not surprising to see Ben­ The most likely option is that Count von Bennigsen is nigsen in de facto alliance with Khomeini-sponsoring circles deployed by oligarchical circles in the West, who are com­ in the West such as Cyrus Vance and the other controllers of mitted to someday destroying the Russian Empire from with­ the Episcopalian Cathedral of St. John the Divine in New in by aid of religious and integrist insurgencies, but are first York City. On Sunday evenings the cathedral 's cavernous aiding that empire to destroy these oligarchs' chief enemy: vaults are often host to ceremonies where aging liberals and the Augustinian republican culture of the West, represented spaced-out Columbia University students spin around in cir­ most powerfully, though less and less consciously, by the cles, hyperventilating and "seeking truth" in the rites of the United States. These British, Venetian, and Swiss families Sufizikr . ofteninclu de important White Russians, such as the de Men­ ils of Paris and Houston. 'What are his sources?' For instance, the recently deceased Jean de Menil sat on One last question remains regarding Count von Bennig­ the board of the corporate front, Permindex, investigated by sen. His colleagues oftensay , "I wonder just where Bennig­ New Orleans D.A. James Garrrison as the organization be­ sen gets his information?" Judging by the statements of his hind the assassination of John F. Kennedy, and his wife (nee daughter and co-author, Marie Broxup, some of it he just Schlumberger) is a very powerful figure in her own right. plain makes up . Take the claim of the bank clerk-turned­ These families' hatred of Augustinian and Renaissance cul­ Central Asian scholar Broxup that the Soviet Muslims have ture is expressed in institutions such as the "Eastern reli­ not been used for diplomacy since the collapse of the Tash­ gions"-oriented Rothko Chapel in Houston, and the de Men­ kent conference in 1980. This statement-the core of an ils' prior sponsorship of the Russian Orthodox "modernist" argument that the Soviet Muslims are a great internal threat painter Mark Rothko, a man so moved by his own output that to the Soviet state-EIR has demonstrated as utterly false, he killed himself. citing numerous instances to the contrary readily available in Judging by his life story, the emigre Bennigsen, fleeing the Soviets' own press (see EIR , Nov. 8, 1983). from the Bolshevik hordes, was picked up by oligarchic Further light may be shed on Bennigsen's sources by the circles in Istanbul and Paris, then trained by the Sufi mystic head of Foreign Relations for the Tashkent Muslim Spiritual Louis Massignon, "dean of French orientology." Bennig­ Board , Yusuphkan Shakirov, at the Vancouver World Coun­ sen's own books and seminars at the Sorbonne and the Uni­ cil of Churches conference in 1983. After some preliminary versity of Chicago have propagandized for the very core of chit-chat, the smiling, urbane mullah was asked by EIR Islamic irrationalism, Sufism, with the line that the revolu­ whether it were true that he briefed Alexandre Bennigsen. tionaryNaqshbandi SufiBrotherhoods of the Northern Cau­ The suave Shakirov turned white, looked to see who might casus and Central Asia, could, if aided by the West, over- be listening, and fledwi thout answering.

ElK March 20, 1984 National 55 agency at that time, approached one George Franklin. George The Media Franklin is a member of the Trilateral Commission and lead­ ing figure of the New York Council of Foreign Relations, and is self-described as Henry A. Kissinger's original super­ visor at the New York Council on Foreign Relations. George Franklin and Gordon Novel mailUfactured between them the fabrication that I had plotted assaults against Henry A. Kis­ singer during the period Captain Cooper was in West Ger­ NBC 'assassination many, and cited Captain Cooper as the source of this information. "According to Colonel WerBell, he had received tele­ plot' a total lie phone calls from various quarters , in Britain and elsewhere , attempting to influence him against accepting the position as After observing the NBC-TV "First Camera" segment libel­ my security consultant, within hours of his contracting the ing him on March 4, Democratic presidential candidate Lyn­ assignment. During the same period Henry A. Kissinger had don H. LaRouche , Jr. issued a statement saying that, since telephoned him, to discuss weapons-sales matters ." Kissin­ he is already suing NBC and the ADL for their campaign of ger, LaRouche notes, had used his position in government to libel, there is only one feature of the broadcast which requires coordinate covert operations against LaRouche as early as his comment now: the allegation that he plotted, during 1977 , 1975. "It was our working hypothesis that Mr. Kissinger's tokill President Jimmy Carterand officials of his government. telephone call to Colonel WerBell at that particular time was Calling the story "a total fabrication," LaRouche de­ a most curious coincidence. What was discussed in the pres­ scribed the circumstances NBC reported to have been the ence of Captain Cooperwas the possibility that Mr. Kissinger . occasion for the alleged plot . During early August 1977, might be or become complicit in influencing State Depart­ while visiting in West Germany, LaRouche was advised by ment channels to deny me cooperation, and that if this were high level intelligence community sources that he was "No. confirmed, Kissinger must be publicly exposed for such im­ 2" on a list of assassination targets of the Baader-Meinhof moral activities. terroristorganization which had just murdered banker Jiirgen "It was confirmed by eyewitnesses that at a subsequent Ponto; LaRouche was also advised that because of extreme time, Gordon Novel visited Colonel WerBell's farm in Geor­ hostility f�om top levels of the White House, he could expect gia, and did have an extended discussion with Captain Coop­ no cooperation from that source. er on Colonel WerBell's porch. It was, apparently, out of LaRouche says that he employed the services of a private what Gordon Novel said to Cooper on that occasion that the security consultant, Col. Mitchell WerBell, who assigned a false complaint to government agencies by George Franklin veteran of the Vietnam war, Capt. Larry Cooper, to function was manufactured. Official agencies investigating George t as liaison-officer, to contact relevant U. S. and other security Franklin's cock-and-bull story soon understood the character · agencies in Western Europe to seek technical advice and of the hoax being perpetratedby Franklin and Gordon Novel, services. and the matter was discreetly relegated to the files. "After making initial c�:>Dtacts with official agencies, "Despite exhaustive investigations, no evidence of any Captain Cooper informed me that the State Department was wrongdoing was ever uncovered. I and my associates have blocking any cooperation with me ," and "indicated his strong cooperated fully with authorities on threats to the President desire to take the next return flight to the U.S.A. Deciding and other presidential candidates." that in his indicated state of mind, he was useless to me and LaRouche noted: "Novel is notorious in intelligence and himself, I released him immediately from the assignment. I law enforcement circles as a 'confidence' hoaxster. The tale immediately changed the plans for my security, dropping of the elaborate plot, as concocted by Novel and Franklin, those recommended by Captain Cooper, but reported my resembled a typical Novel fabrication." Gordon Novel has actions to Colonel WerBell, and retained his counsel on mat­ been indicted seven times on federal charges since the late ters of security up to the time of the premature death of that 1950s. According to law enforcement sources and Novel's great soldier and national hero this past December. " own testimony, these charges include arson, illegal electron­ LaRouche stated that he was contacted weeks later by an ic eavesdropping, illegal possession of firearms, and bail official of the security forces in Wiesbaden, West Germany, jumping. "who asked me questions bearing on the allegations that I LaRouche said that his staff and legal counsel repeatedly might have at some time threatened the person of former offered NBC that he "would answer in writing any list of Secretary of State Henry A. Kissinger." questions submitted to me in connection with the proposed It turnedout, LaRouche reports, that "one Gordon Novel, 'First Camera' broadcast. NBC never presented any list of an FBI 'Division Five' informant from New Orleans, Loui­ questions, and never investigated this wild charge of the siana, reportedly under federal warrant by another federal 'assassination plot' prior to the broadcast."

56 National EIR March 20, 1984 In the 1980s the FBI attacks on constituency politics Congressional Profile became overt; with operations such as Abscam, Reps. Ray­ mond Lederer and Ozzie Meyers were jailed. The 1980 re­ districting and the loss of two seats , both held by more con­ servative Democratic congressmen, Don Bailey and Joseph Smith, combined with the liberal Democratic defeat of Re­ publicans James Coyne and James Nelligan in 1982, A challenge to strengthened the radical side of the state delegation. Military voting tally the Pennsylvania At first glance, almost the entirety of the Pennsylvania deI'egation might be considered political write-offs . With the Democratic Party exception of three conservative Republicans, Don Ritter, Robert Walker, and George Gekas, they voted for the nuclear by Ronald Kokinda in Washington, D.C. freeze resolution which would aid a growing Soviet strategic superiority and potential first strike threat against the United States. But their voting records on the individual weapons The first Democratic presidential primary effort by The systems that make up the administration's strategic modern­ LaRouche Campaign, now being mounted in Pennsylvania, ization effort, including the MX missile, the B-1 bomber, poses an interesting question: Can the constituency base in anti-satellite (ASAT) weapons, and the Pershing II missile, the Pennsylvania Democratic Party be mobilized to help pull show a split among the Democrats. the nation through the current economic and strategic crisis? Leading the rabid environmentalist, post-industrial and The LaRouche vote in Pennsylvania's April 10 primary anti-defense side is Robert Edgar, a vocal proponent of the will signal how the healthier elements in the party are re­ InternationalMonetary Fund (IMF) and the genocidal Global sponding to the crisis. Most Pennsylvania Democratic activ­ 2000Report who votes consistently against defense programs. ists strongly opposed the renomination of Jimmy Carter in In this orientation are Thomas Foglietta, a member of the 1980. The current potential was evidenced by the 1982 vote Armed Services Committee, William Gray , Peter Kostmay­ for LaRouche-backed Democratic candidate Steve Douglas er, William Coyne, Doug Walgren, Robert Borski, and Jo­ who polled 20%, finishing a strong second in a four-man seph Kolter. Kolter and Borski were the only ones of this gubernatorial race, and winning up to 35% in Philadelphia group to vote to allow the deployment of Pershing II missiles districts. The 1984 LaRouche slate of 150 candidates for state into Europe to proceed on schedule. Also, apart from Kolter and local office includes candidates for the U. S. House of and Walgren, every member of this group voted last year to Representatives in 13 congressional districts. back the quota increase for the IMF, which is destroying Meanwhile, a survey of the current congressional dele­ U.S. allies and would-be allies in the developing sector. gation yields a pale hint that the stat�'s constituency organi­ Clearly on the pro-defense side are John Murtha, a mem­ zations have not shrunken as badly, nor become quite as ber of the Appropriations Defense Subcommittee, and Gus Aquarian or post-industrial in outlook, as they have else­ Yatron, both of whom supported the strategic modernization · where. Democrats abound in family farms, conservatively­ across the board . Joseph Gaydos, chairman of the delegation, oriented labor unions, and industrial firms. and Austin Murphy, a formerMarine , are closer to this camp; their single major defection has been their opposition to the A target of Abscam-style operations development of the MX missile. Frank Harrison is probably Over recent years , constituency-based Democrats in closer to the anti-defense group, voting against the MX and Pennsylvania have suffered their share of frameups, attacks, B-1, and for the ASATs and Pershing lIs. and political losses as the Aquarians, the dope lobby, and the EasternEstab lishment families who have sought to eliminate Volcker and the IMF the production-oriented base from any say in Democratic Despite the depression in Pennsylvania caused by Paul Party policy. In the 1970s, Rep. Dan Flood, from northern Volcker's high interest rates, only a couple of members of Pennsylvania "coal country," an eccentric but important pro­ the delegation have addressed the crisis. Rep. Austin Murphy ponent of infrastructural and military development-keys to was the most vocal critic of Federal Reserve chairman Paul the American system of economic growth-was labeled a Volcker and supported numerous resolutions seeking to "porkbarreller" and driven from office. Reps. Fred Rooney, change Volcker's high interest rates. Yatron also cospon­ John Dent, Robert Nix, and others, while not politically sored such resolutions, and he and Murphy were also oppo­ homogeneous, reflected constituency politics; they were nents of the IMF. Of the three other Democrats to oppose scandalmongered out of office or decided not to seek re­ Volcker during 1980-82, two were forced out of office by election. redistricting and one left to run for statewide office.

EIR March 20, 1984 National 57 Joseph Gaydos, epitomizes the defeatist response to Volcker's depression-the slide into the fight for protection­ ism, domestic content legislation, and other battles with the Japanese and Europeans over who will take in more of the other's laundry, instead of industrially and agriculturally de­ veloping the rest of the potential world markets for American output. In 1982, when a labor-union delegation visited Gay­ dos's office demanding that he act to remove Volcker, they were told that Volcker should be ignored, and were solicited to involve themselves in protectionist lobbying instead. Gay­ dos also backed the IMF, whose policies have been shutting down the demand for U.S. exports. Other members of the delegation such as Bill Coyne, who has a seat on the Banking Committee, defended Volcker then, and still do. Bill Gray , the Black Caucus point man for Africa policy, also supported the IMF, even though it is estimated that millions of Africans will die of starvation this year-a This soon-to-be-released report, the situation largely attributable to IMF policies. follow-up to the recent EIR Special Re­ Among the largely pro-defense RepUblicans, there are port, 'Will Moscow Become the Third some obvious Henry Kissinger backers . Chief among these Rome? How the KGB Controls the is William Goodling, who backs the IMF to the hilt, promotes Peace Movement," documents the Kissinger's style of negotiations with the Soviets, and voted channels through which Soviet intelli­ against the strategic modernization program with the excep­ gence and its assets are attempting tion of the B-1. Lawrence Coughlin only voted for the Persh­ to carryout a plan to destroy the United ing lIs and the MX. Several others had at least one major States as an economic and military anti-defense vote, such as William Clinger, who opposed the threat to Soviet world dominance. B-1, and Thomas Ridge, who opposed the MX. Joseph McDade of of the 10th District (northern Penn­ The report will include: sylvania), as the man next in line to become ranking member • The role of Moscow and German­ ofthe House Appropriations Committee, will be key in future speaking central bankers in at­ defense fights; the committee has emerged as a stumbling tempting to preCipitate an inter­ block to the modernization programs. McDade has been de­ national financial crisis. scribed by Capitol Hill intimates as someone who will do the right thing if he understands the importance of the program. • The background of Soviet orches­ If he is re-elected, any lack of understanding on military tration of the "Briefingate" scandal, questions would become a dangerous shortcoming. including the June 5 clo�ed-door session in Moscow, where Ave rell Attacks on infrastructure and Pamela Churchill Harriman The biggest problem among the Republicans, as in other conspired with Yuri Andropov days states, is economic ideology and growing hostility to govern­ before Briefingate broke. ment spending in such areas as the Clinch River Breeder, the space program, and infrastructure projects, all crucial to fu­ • Soviet influence in the FBI and other ture economic growth. government institutions ensuring This outlook is most conspicuous in William Clinger, disinformation on Soviet subversion who, as a fiscal conservative with proposals for capital budg­ of the United States. eting and similar schemes to close down these investments, fought side by side the rabid environmentalist Robert Edgar The report will be available for $250.00. to stop the Clinch River Breeder Reactor. In the finalvote on Clinch River and on the Tennessee-Tombigbee waterway, For further information, contact the last major water project authorized by Congress, "nays" William Engdahl, EIR Special Services 304 W. 58th Street, 5th floor were cast by Clinger, Goodling, Ritter, and Coughlin. Robert New York, New York 10019 Walker and Richard Schulze voted against Tenn-Tom, and (212) 247-8820 McDade voted against Clinch River. Only Bud Shuster voted for both projects.

58 National EIR . March 20, 1984 Elephants and Donkeys by Kathleen Klenetsky and Stephen Parsons

LaRouche advisers a number of times for votes," spurred on by a swarm of "because they have in my view one of hissing flies. And, surprisingly, it can the best private intelligence services also speak. in the world. " When we queried various ele-don­ The outraged Manatt issued a keys this week on their odd comport­ statement urging Reagan to end "this ment, they responded that it was the shocking, White House involvement best way to deal with the clever flies, with the bizarre , extremist cult of which upon analysis turned out to be Lyndon H. LaRouche." Manatt also a virulent strain of practicalus condemned the implication that politicitis. "membersof this group have had some When we suggested that perhaps degree of influence on the administra­ they should arrest their feverish whirl tion." LaRouche is accurately credit­ and think a moment about eliminating ed by U.S. insiders in private, and the the source of their plight, that is, the Soviet government newspaper Izves­ infamous Dr. Kissinger, the ele-don­ tiya in public, with helping to impel keys moaned that, although that Dr. The mania of Manatt President Reagan to commit the na­ Kissinger was doing terrible things, Fritz isn't the only one with troubles. tion in March 1983 to the beam-weap­ "it is not our responsibility to take on His padrone ChuclCie Manatt, the ons defense so feared by the Soviets. such a prodigious individual . Besides, Democratic national chairman and the flies would not allow it," they re­ Hollywood mafia liaison, nearly got Of mice and. ported. Nor did they want to swat the bounced out of his post at the begin­ flies. "We need them so that we can ele-donkeys? ning of March afterhis incompetence continue in our whirl of important became too much even for Mondale' s Over the years, this news service has activity." advisers. The word was out on Capitol repeatedly warned that any consoli­ "The nation is in trouble," agreed Hill that Manatt had already gotten the dation of power by forces associated the large-looming ele-donkeys in states boot when Mondale intervened to save with the mad Dr. Henry Kissinger ranging from Idaho to Minnesota, and his skin. would cause such social and economic from Nevada to Arkansas. "We're With this new lease on life, Bank­ havoc that the biosphere itself would quite concerned, you know. But we're er Manatt sped to Pennsylvania March begin to break down. Judging by some very busy." 6. There he attempted to prove his strange sights and sounds emanating An ele-donkey who chairs the GOP worth by endorsing a candidate for from GOP circles in the nation's in one Midwestern state stopped his congressman, James Young, who is heartland, it appears that a mutant spe­ rotation for a moment to comment facing stiff opposition from a candi­ cies has already emerged-and has craftily: "I think the President knows date backed by Lyndon H. LaRouche, taken over the entire Republican what he is doing. He is taking the en­ Jr. leadership. emy into his own camp." Earlier that week, Manatt had The strain is a creature with the When an RNC ele-donkey from called on the Reagan administration to bulk of the famous GOP elephant, but South Dakota nodded in hearty agree­ sever all connections with LaRouche ...it acts like a jackass! And unlike ment with this diabolical strategy, we and his organization. Manatt's de­ either beast, it neither hees nor haws asked him about Larry Pressler, the mand came on March 5, the day after nor cackles nor trumpets; rather, it has blow-dried senator from his own state NBC-TV aired its "First Camera" a mournful whine that occasionally who had just endorsed Dr. Kissinger's smearof LaRouche-one aim of which rises to what appears to be a loud boast, formula for destroying NATO. was to pressure the administration to only to collapse back into its pitiful "Well," he brayed, "at least we got a cut off contact with LaRouche. The plaint. Republican in there to replace that no­ show included an interview with the This enormous beast-provision­ good McGovern!" National Security Council's former ally labeled an ele-donkey-is neither "That's right," chimed in the herd, senior director of International Eco­ swiftof wit nor nimble of foot, though as they whirled off to yet anotherround nomic Policy, Norman Bailey, in it does whirl around quite rapidly in a of hoofingand whirling. "At least Kis­ which Bailey said he had met with perpetual circle that it calls "stumping singer is a Republican."

EIR March 20, 1984 National 59 Congressional Closeup by Ronald Kokinda and Susan Kokinda

Ikle and DeLauer lie expectations for such a system could military aspect of the U.S. effort in about beam weapons be at this time." space, and invited other House mem­ At the conclusion of hearings before In an exchange with Sen. Dan bers to participate. the Senate Armed Services Commit­ Quayle (R-Ind.), who practically Mavroules, a member of the House tee on President Reagan's Strategic begged the administration spokesmen Armed Services Committee, launched Defense Initiatve March 7, Sen. Pete for arguments in favor of strategic de­ the attack afterthe Committee for Na­ Wilson (R-Calif.) lambasted Defense fense, Ikle offered no prospect for re­ tional Security (CNS), a collaborator Department spokesmen Fred Ikle and ducing reliance on offensive weapons ofthe terrorist-linked Institute for Pol­ Richard DeLauer for undercutting the. under a ballistic missile defense sys­ icy Studies, released two proposed al­ administration's position. tem and stated that he could envisage ternatives to the administration budget "Frankly, I have to tell you that I a situation where both defensive and at a press conference with Averell am mad," Wilson stated. "Your writ­ offensive systems would have to in­ Harriman associate Paul Warnke on ten statement, which was very strong crease. This, despite the fact that Ikle's March 5. The "high-threat" budget and very optimistic, is at variance with written testimony-which had to be proposed by CNS would abandon the your responses to the questions put signed by the secretary of defense and 6oo-ship Navy and eliminate the cur­ forward by Senator Nunn ....I think the White House-had laid O\�t a de­ rent strategic modernizationeff ort, in­ that you have cast the entirely wrong tailed prescription for reducing offen­ cluding stopping the MX missile, the tone by those responses." sive weapons systems through nego­ B-1 bomber, and anti-satellite weap­ Wilson went on to establish that tiations with the Soviets under a de­ ons. Research would be minimized and Undersecretary of Defense for Policy fensive-systems-oriented regime. no funds at all provided for strategic Ikle (a Henry Kissinger liaison), and After the hearings, a Senate source defense systems. DeLauer, the Undersecretary of De­ charged that "this hearing could do "I am not arguing against re­ fense for Research and Engineering, more to set back the SOl [Strategic search" for strategic defense, Brown had made light of the ability of ballis­ Defense Initiative] than anything that said. "However, the accelerated re­ tic missile defenses to protect popu­ has happened so far. I can see those search program the President is call­ lation centers and had implied, in their statements thatDeLauer and Ikle made ing for is beyond what is needed to exchange with Sen. Sam Nunn (D­ being thrown back at us by opponents protect U. S. national security require­ Ga.), that such defense systems would on the Senate floor. We can't charge ments. Furthermore, we will spend have relevance only for protecting of­ that the quotes are inaccurate or out of billions of dollars for the unique priv­ fensive weapons systems, not popu­ context, because they satthere and said ilege of abrogating the best and only lation centers. it! I think if a vote was taken right now arms-control treaty we have . . . the Wilson pointed out that such state­ in the Senate Armed Services Com­ 1972 antiballistic missile trt:aty. ments appeared to be in disagreement mittee, strategic defense would lose." Without the ABM treaty, we may as with the report of the Fletcher Com­ well throw arms control out the mission on ballistic missile defensive window ." systems. Brown and John Seiberling (D­ "Do you disagree with Dr. Fletch­ Democrats attack military Ohio) used the statements of Dr. Rich­ er's recent statements that a 'robust, budget, strategic defense ard DeLauer, undersecretary of de­ multi-tiered system' is a feasible con­ Sixteen anti-defense Democrats, led fense for Research and Engineering ception?" Wilson asked. When De­ by Rep. Nicholas Mavroules (D­ and an administration spokesman, to Lauer replied "Yes," Wilson contin­ Mass.) and Republican Bill Green back their claims that the cost of the ued, "Doesn't that [the Fletcher Re­ (N . Y . ), took to the floorof the House program would be "staggering." port] imply a boost-phase system that March 7 to attack the Reagan admin­ Brown said the cost of deploying a can be deployed and that will not be istration's defense budget request and space-based ABM defense system leaky [that enemy ICBMs will not be the strategic defense program. George would be about $500 billion. Seiber­ able to penetrate to population cen­ Brown (D-Calif.) announced that he ling .::laimed he had seen cost esti­ ters]?"DeLauer waffled: "I don't want would take the floorlater in March to mates of $2 trillion. any misunderstandings about what our attack strategic defense and the entire Les AuCoin (D-Ore . ) attacked

60 National EIR March 20, 1984 "what is known as time-urgent hard­ the Philippines , caused in part by the of the Senate Foreign Relations Com­ target kill capability, the MX ICBM, InternationalMonetary Fund, and be­ mittee's Arms Control Subcommittee the Trident II SLBM, and the Pershing cause of the Pacific nation's strategic and is one of the Senate's leading op­ II IRBM ....We do not need them. significance, the United States must ponents of ABM defense systems. We are better off without them." act. "Doubts about the stability of or Pressler argued that if the United AuCoin failed to point out that a criticism of the Marcos government States engages in military activities in Soviet pre-emptive strike against the cannot be allowed to freeze U.S. ac­ the Middle East, Europe and Japan United States would leave the Soviets tions on Philippines matters. The should bewilling to lead the operation. with a majority of their strategic sys­ administration has not even cleared a Two days later, Senate Majority tems intact against a disarmed United $10 million emergency food aid pro­ Leader Howard Baker (R-Tenn.) de­ States unless precisely these systems gram proposed collectively last De­ clared: "Dr. Kissinger has written one are built. cember by Cardinal Sin, the Marcos of the most logical yet provocative government, CARE, and the Manila treatises on the Atlantic alliance to ap­ Rotary Club. pear in a very long time. It is a mas­ "No move to clear the first year's terful treatment by a master of

rental on the military bases has been diplomacy. . . ." elcher: 'Reagan M made , although the Philippines are ignores Philippines' desperate for cash. In conclusion, I In a speech on the Senate floor on say to the White House: Cease the de­ March 6, Sen. John Melcher (D­ lay in actions concerning the Philip­ Mont.) accused the Reagan adminis­ pines. Food aid must not be put off. Bipartisan Senate vote to tration of carrying out a policy of "be­ Mutual agreement on defense; eco­ freeze grain target prices nign neglect" toward the Philippines, nomic assistance, and trade conces­ Spearheaded by former farm spokes­ at the peril of both the Philippines' sions are the essence of long-term man Robert Dole (R-Kans.), the Sen­ stability and of U. S. national security. agreement between long-time allies ate Agriculture Committee voted Melcher placed two letters he had and trading partners ." March 8 to freeze 1985 grain target received from Philippines President Melcher has thus far succeeded in prices. The combination of pressure Ferdinand Marcos and from the Phil­ blocking a Ted Kennedy-sponsored from OMB director David Stockman ippines National Assembly Speaker resolution to set up aU. S. commission and Agriculture Secretary John Block, Querube Makalintal in the Congres­ of inquiry on the assassination of op­ and a "bargaining" spirit among farm­ sional Record, along with a plea that position leader Aquino. Kennedy and state Democrats like James Exon . President Reagan adopt a Philippines his allies are working with the same (Neb.), John Melcher (D-Mont.), and policy. forces who succeeded in toppling the David Boren (D-Okla.) produced the The Makalintal communication Shah of Iran and bringing in the approval for the bill, which will now was an invitation to the U. S. Congress Khomeini regime. go to the Senate floorwithout the threat to send observers to the Philippines for of a filibuster, unlike last year's. the May 14 elections, and the Marcos Among the penny-ante sweeteners letter contained answers to questions for farmers was a ridiculous plan to put forward by Melcher in an effort to provide 1985's payments for setting ressler ' kisses' clarify the internal situation in the P aside land in 1984; what the farmers Philippines for the U. S. Congress and Europe goodbye are supposed to do in 1985 was the public. Senator Larry Pressler (R-S.D.) em­ unspecified. Melcher, who traveled to the Phil­ braced Henry Kissinger's proposals to The session was dominated by ippines in December and returned with abandon the defense of Western Eu­ "oversupply" hysteria. Despite the an urgent request for food aid for that rope and introduced the complete text Payment-In-Kind program, which nation, has not received a response of Kissinger's Time magazine propos­ pays farmers not to grow, and a seri­ from Reagan. He has wamed that be­ al to that effect into the Congressional ous drought, wheat output has de­ cause of economic destabilizations in Record March 4. Pressler is chairman clined only 15%.

EIR March 20, 1984 National 61 National News

" lack of positive action by the White House Mikhail Milshtein. would encourage any would-be assassin to "The FBI has failed to demonstrate a take a more optimistic view of his chances comprehension of the premises upon which NDPC: 'Something of attacking Mr. and Mrs . LaRouche." intelligence work is carried out by the law enforcement agencies of a republic," said wrong at White House' Scanlon, "the first of which is that there is Warren J. Hamerman , who chairs the Na­ no contradiction between the rights of U. S. tional Democratic Policy Committee , the citizens and the security interests of the political action committee founded by Dem­ nation. ocratic presidential candidate Lyndo� H. Why Meese should not "The failure to address this on the part LaRouche , Jr. , issued this statement March of previous attorney generals has contribut­ 8: be appointed ed materially to the growth of terrorism. '" have been informed that President A spokesman for the National Democratic "We need an attorney general sensitive Reagan's general counsel Fred Fielding has Policy Committee told the Senate Judiciary to the rights of U . S. citizens and the security ordered material on life and death matters Committee on March 6 that the Senate should interests of the nation." By allowing the FBI with national security implications to be kept rej ect President Reagan's appointment of Ed to run amok during his tenure as White House from the eyes of the President. Meese as U.S. Attorney General . Counsel, Scanlon concluded, Ed Meese has '" am informed that Fred Fielding has "While we admire Ed Meese both per­ proven himself not presently fitfor this task. personally intervened to prevent a meeting sonally and in his capacity of public servant, Senator Joe Biden (D-Del.), no defend­ with President Reagan on the urgent ques­ and find the belabored examination of his er of Meese, rose to the defense of the FBI: tion of granting Secret Service protection to personal finances in the category of 'scrap­ "I findyour whole .testimony absurd. If I Lyndon H. LaRouche , Jr. on the grounds ing the bottom of the barrel of weren't the mild-mannered, well-reasoned that the President could not be informed of irrelevancies , '" Leo Scanlon told the com­ senator that I am, I would ask you out behind these matters because of so-called legal im­ mittee, "We regret to inform the committee the bam to settle this matter." plications to him. It has been reported to me that during his tenure as White House coun­ that Mr. Fielding went so far as to instruct sel , there was an enormous growth in the the Office of Presidential Scheduling to 'not powers delegated to the FBI, powers which touch' the matter, and that he must handle have been misused to the detriment of the the affair because of the 'legal implications nation's intelligence capability. New Fed appointee to the President. ' "We must advise the committee that "There is a little history to this matter. Meese has not yet demonstrated the emo­ to oppose Volcker? On Feb . 23, I had an extensive discussion tional and intellectual ability to serve as at­ President Reagan appointed "conservative" with Mr. Fielding and presented four areas torney general at this time." Martha Seeger to the Federal Reserve Board of urgent concern requiring immediate re­ Scanlon identifiedas the foremost chal­ of Governors-apparently without consult­ sponse in the 'interests of national security lenge to law enforcement, the growth of ing Paul A. Volcker. Seeger passed muster and the life and safety of a major Democratic "narco-terrorism" -interconnected drug-and with vice-chairman Preston Martin, the only presidential candidate .' At the end of the arms-ttaffickingwhich financesinternation­ other Reagan appointee on the Board, under approximate 25-minute phone call, Mr. al terrorismand which is backed by the com­ the supervision of the President's chief of Fielding promised to get back to me the next bined forces of the Swiss-based Nazi Inter­ staff, James Baker III, according to an Ev­ day with responses to each of the four sub­ national and the Soviet Union. ans and Novak column the first week of stantive questions raised . The FBI, made the "lead agency" against March. "Since Feb . 24, I have been telephoning terrorism by a 1982 classified presidential Baker is reportedly concerned that Mr. Fielding daily and have gotten nothing order, has covered up this situation. Volcker's strangulation of the credit supply but the proverbial run-around from his of­ On national television Dec . 18, 1983, will destroy the "recovery" before the No­ fice. Now I am informed that he has usurped FBI Director William Webster repeatedly vember elections. personal control of the President's personal insisted to reporter David Brinkley that the Seeger was appointed to fillthe seat va­ schedule . United States does not have an active terror­ cated by Nancy Teeters Jan. 21. Teeters , "Lyndon H. LaRouche, Jr. is under threat ism problem. like Volcker a Jimmy Carter appointee, sid­ by forces which have also threatened the life Webster's downplaying of the terrorist ed with Volcker in an II-to- I vote to tighten of the President and often in the same con­ threat is consistent with his insistence that money last December. Martin was the dis­ text. It is our conclusion that something is the Soviet Union has no influence in the senting vote . very wrong . We have no way to verify U. S. peace movement, despite the May 1983 Seeger's career-she is co-chair of Roy whether the President even knows what is tour of U.S. cities by a 26-person Soviet Cohn associate Lew Lehrman's Citizens of going on in this matter. We do know that the delegation, headed by KGB official Gen. America in Michigan---doesnot indicate any

62 National EIR March 20, 1984 Briefly

• DAVID STOCKMAN, director of the Office of Management and Budget, has been collaborating with members of Congress to attempt to impose drastic reductions on U. S. support for the kind of policies essential for Priority ." -defense spending . Stockman contrib­ a real recovery of U. S. industry . But the Their candidate to oppose Helms is Jim uted to the plan put forward at the end appointment represented the first collabo­ Hunt, the two-term North Carolina gover­ of February by Senate Budget Com­ ration between the White House and Preston nor who was unable to carry the state for mittee chairman Pete Domenici (R­ Martin against Volcker. Just before it oc­ Carter-Mondale in 1980 but has been N.M.) to slash the administration's curred , the New York Times printed its sur­ plumping for Mondale again. proposed 13% increase in the FY85 mise that Volcker had turned down another Hunt chaired the Hunt Commission , defense budget to 5%, barely enough Reagan conservative to promote Susan Bies, which was designed to totally control the to keep pace with the vastly under­ a monetarist of his own stripe . Bies was delegate selection process for the Demo­ estimated "official" inflation figures. rej ected out of hand by the White House. cratic national convention . In consultation with Democratic nation­ • CASPAR WEINBERGER re­ al chairman Charles Manatt and Fritz Mon­ iterated his commitment to develop­ dale , the commission changed theparty rules ing a beam-weapons anti-ballistic to try to eliminate any prospect of a non­ missile system in an interview in the Brzezinski repudiates Manatt-approved candidate gaining the March issue of the Journal of the presidential nomination. The Hunt rules re­ American Legion. 'obsolete' Europe quire that one-third of the delegates be pub­ During a stopover in the Philippines after lic officeholders and prevent any candidate • NORMAN PODHORETZ, his late-February trip to China, Zbigniew who gains less than 20% of the vote in any Commentary magazine editor, Brzezinski, Jimmy Carter's National Secu­ state's primary from gaining delegates from threatened Europeans in a full-page rity Adviser, declared that the United States that state . article in the Swiss weekly Welt­ will be "dramatically shifting" toward the woche with U.S. isolationism and Pacific Basin and away from Europe . Brze­ troop withdrawal if Europe does not zinski said that "increasingly the American support Henry Kissinger's proposals view is that Europe is beginning to stagnate for U.S. military adventures in the and is becoming obsolescent, and this is 'Dear friend' Kissinger Middle East and in Central America. having a negative political. international ef­ fe ct, and the Europeans are becoming less now a 'valued confidante' • A SENIOR U.S. administration confident, less dynamic ." A State Department spokesman, when ques­ official stated at a March 5 back­ Brzezinski, the promoter of the Islamic tioned at a March 7 briefing about French ground briefing on meetings between fundamentalist "Arc of Crisis" in the Middle reports of back-channel U.S. discussions President Reagan and Chancellor East which was supposed to have gnawed with the Soviets on "trading" the Mideast Helmut Kohl of West Germany that away at the Soviet Union, is apparently not for Central America, and on Henry Kissin­ he had no idea why Henry Kissinger satisfied with the loss of Iran; Western Eu­ ger's proposals for backing out of NATO , was appointed to the Foreign Intelli­ rope may be the next casualty . attempted to deny the reports . gence Advisory Board, and stood by Brzezinski is on a tour sponsored by the "But what exactly is Kissinger's role in his earlier description of Kissinger's Georgetown Center for Strategic Interna­ these discussions and in formulating U. S. Europe policy as "bizarre ." The offi­ tional Studies . policy?"an EIR correspondent asked. "There cial was responding to questions from is some confusion over administration ori­ EIR and the New York Times. entation to the proposals Kissinger made in the March 5 Time magazine. Richard Burt • THE LEAGUE of Women Vot­ is quoted as saying Kissinger's proposals are ers may soon be forced to register as Eastern Establishment bizarre , but the week the magazine was is­ a political action committee. sued, Kissinger was appointed to the Presi­ goes after Helms dent's Foreign Intelligence Advisory Board. • JOHNVESSEY, chairman of the The Eastem Establishment and its New York Is Kissinger involved in, or playing a con­ Joint Chiefs of Staff, gave a press Democratic Party have held a series of fun­ sultative role in our discussions with the conference March 6 at the Pentagon draisers to oust Sen. Jesse Helms of North Soviets?" to refute charges by the Washington Carolina. The war chest to defeat Helms, a "Kissinger," the State Department Post that U.S. military forces are "less symbol of anti-Kissinger sentiment, is re­ spokesman replied, "remains a valued con­ ready" after three years of military lying on $1 ,OOO-a-plate chicken dinners such fidante of the Secretary of State . His advice buildup and expenditure than they as the one at Manhattan's Trump Towers is considered very carefully not only by the were when Jimmy Carter left office. Feb . 28. Promos for the evening declared secretary , but is highly considered by others "Removing Jesse Helms Is a National in the administration as well. "

EIR March 20, 1984 National 63 Editorial

The corrupt NB C and terrorism

The 20-minute slander against Democratic presidential center for the terrorist international , whose agents have candidate and EIR founder Lyndon H. LaRouche, Jr. penetrated every Westerncapital . on NBC-TV's "First Camera" on March 4, and the • On May 23, 1983, Literaturnaya Gazeta, a So� simultaneous publication of a four-page libel against viet magazine used by the Soviet KGB , attacked La­ LaRouche and his organization in West Germany's Der Rouche and a former associate for a book, Hostage to Sp iegel newsweekly, both long in preparation, had two Khomeini, which "discredited" the Khomeini revolu­ results: one inevitable, the second intentional. tion. On July 6 and Oct. 23, 1983; the same magazine First, these slanders-wild lies which are the sub­ continued its attacks on LaRouche by name, accusing ject of a $60 million dollar libel action against NBC by him of being subversive, provocative, and intensely LaRouche and his campaign-will convince the public anti-Soviet. that LaRouche is not the insignificant "fringe" phenom­ • On Jan. 9, the official Libyan press agency, enon that the Establishments of the United States and JANA, charged that Mr. LaRouche's activities in Rome WesternEurope previously insisted, but the leader of a during December were part of a Reagan administration movement they view as a powerful threat to the oligar­ conspiracy against the Qaddafi dictatorship. "Libya is chy's plans for a one-world post-industrial empire. This endeavoring to bravely confront and thwart all U.S. was inevitable, and indeed for that reason, one faction conspiracies," the JANA release threatened. This came of the oligarchy had long preferred to publicly ignore in the midst of a Libyan-Iranian terror wave that led LaRouche than to give him even libelous coverage. within weeks to the assassination in Rome of U. S. Secondly, however, the NBC "First Camera" and diplomat Leamon Hunt. the string of other libels of LaRouche which came in its • LaRouche has simultaneously emerged as a ma­ wake have served to activate a potential terrorist assas­ jor target of the Jewish Defense League of Rabbi Meir sination of LaRouche . This is intentional. Kahane and its even more radical terrorist underground The threats against LaRouche fall within a broader arm, Jewish Direct Action. Both these violent groups pattern of terrorist threats against three principal tar­ have publicly put LaRouche at the top of their "hate gets: first, the President of the United States, second, list." They are indistinguishable from the Israeli-based U.S. interests and nationals in the U.S.A. and abroad, Terror Against Terror, which is killing Arabs on the and third, candid,ate LaRouche. West Bank. Right now, the United States is the bull's-eye of the The growing portion of the public which has be­ new terrorist international , known since August 1983 come familiar with Lyndon LaRouche's real policies as the Assembly of United Islamic Movements, which through his two half-hour national television broadcasts is linked through several channels to Soviet bloc intel­ in January and February will not buy fabrications such ligence services. On Feb . 27, the Italian daily La Re­ as NBC's lie that he "plotted" to kill ex-President Jim­ pubblica reported an international terrorist planning my Carter (see page 56). But the inflammatory news­ session in Teheran in early February . There , represen­ paper headlines programmed by such lies across the tatives from over 40 countries plotted an international country are intended to cover for the terrorist killers. terrorist assault, directed mainly against the U.S.A. We add our voice to the hundreds of signers of a (the "Great Satan"). On the same day the leading West full-page ad March 6 in the Washington Times: Candi­ German paper Die Welt reported that Iranian and Lib­ date LaRouche must be granted Secret Service protec­ yan-backed terrorists had moved back into the Bekaa tion now. The libels of the corrupt media make that Valley of Lebanon, making it once again an operational more, not less, urgent.

64 National EIR March 20, 1984 Executive Intelligence Review

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